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The Wall Street Journal November 29 2017

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
* * * * *
DJIA 23836.71 À 255.93 1.1%
NASDAQ 6912.36 À 0.5%
WEDNESDAY, NOVEMBER 29, 2017 ~ VOL. CCLXX NO. 127
STOXX 600 387.02 À 0.6%
10-YR. TREAS. g 3/32 , yield 2.338%
OIL $57.99 g $0.12
EURO $1.1842
YEN 111.48
Trump helps sway some holdouts but a battle
with Democrats may stymie budget progress
BY RICHARD RUBIN
AND KRISTINA PETERSON
Business & Finance
ber had a team dedicated to stealing trade
secrets and helped employees dodge regulators’ scrutiny, according to allegations
from a former employee. A1
U
Powell signaled that he
would stick to the same
monetary-policy course
Yellen charted if he is confirmed as Fed chairman. A2
Bitcoin crossed the
$10,000 mark for the first
time, the latest milestone in
the virtual currency’s rally. B1
Siemens’s board is expected to firm up plans for
listing a chunk of the company’s health-care business. B1
The administration is employing a little-used authority
to combat imports of inexpensive Chinese aluminum. A10
AT&T and Time Warner
made a case for their deal in
a court filing in response to
the government’s lawsuit. B1
The Bank of England
said big U.K. banks could
withstand an abrupt EU exit
but raised concerns about
derivative contracts. B14
JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES
Financial shares helped
the Dow and S&P 500 notch
their biggest gains since
September. The blue chips
rose 255.93 to 23836.71. B16
Senate Minority Leader Chuck Schumer (D., N.Y.) and House Minority Leader Nancy Pelosi (D., Calif.)
skipped a meeting with President Donald Trump after he suggested in a tweet he didn’t expect a deal.
Unilever’s board is leaning toward unifying the Anglo-Dutch company’s dual
governance structure. B8
Arby’s is buying Buffalo
Wild Wings, taking the
restaurant chain private
for $2.44 billion in cash. B2
World-Wide
The GOP tax plan gained
momentum when two key
Senate Republicans expressed optimism about the
bill and a congressional panel
advanced the measure. A1
Democratic leaders
pulled out of a planned
White House meeting with
Trump in response to jabs by
the president on Twitter. A4
North Korea said it fired
a brand-new intercontinental
ballistic missile into the waters off Japan, ending a more
than two-month hiatus. A1
A judge backed the White
House in the battle over
control of the CFPB, clearing the way for Mulvaney
to remain acting director. A5
President Trump and anti-Nafta Democrats unite to challenge decades of U.S. orthodoxy
BY BOB DAVIS
AND SIOBHAN HUGHES
WASHINGTON—A lone senator
jumped to the Trump administration’s
defense last month when the U.S. Chamber of Commerce attacked its proposal
to rewrite the North American Free
Trade Agreement.
He is a Democrat.
“Any trade proposal that makes multinational corporations nervous,” says
Ohio Sen. Sherrod Brown, “is a good sign
that it’s moving in the right direction for
workers.”
The politics of trade are shifting in
Washington. In the 1990s, a Democrat in
the White House, Bill Clinton, worked
with free-market Republicans in Congress to open the world trading system
to Mexico and China. Now a White
Bitcoin Crosses
$10,000 Mark
Bitcoin,
year-to-date
Saudi Arabia freed several people held in an anticorruption campaign, a sign
the suspects are agreeing
to cash settlements. A7
Kenya’s president was
sworn in for a second term,
but battles between the opposition and police overshadowed the inauguration. A9
The pope urged Myanmar’s leaders to embrace all
ethnic and religious groups,
but avoided referring to the
Rohingya Muslims. A18
The OECD said the global
economy is on track for its
best year since 2010. A7
Opinion.............. A15-17
Property Report... B6
Sports....................... A14
Technology............... B4
U.S. News............. A2-6
Weather................... A14
World News. A7-9,18
>
BY STEPHANIE YANG
AND ALISON SIDER
Tuesday
$10,026
Oil prices are approaching
$60 and major energy companies are signaling fresh optimism that they can hold the
recent gains, a reversal from a
few months ago when prices
were languishing.
West Texas Intermediate
prices have surged more than
36% from a June low to a twoyear high. The $60-a-barrel
milestone would mark a shift
in sentiment from earlier this
year, when prices were in a
bear market despite efforts by
4,000
Dec. 31
$968
2,000
0
Jan.
House Republican, Donald Trump, hopes to work
with trade skeptics
among the Democrats to
reverse that trade liberalization. It is too soon to
say whether Mr. Trump
will succeed. But if he
does, it will be in alliance
with people like Mr.
Brown, a leading voice
among Democrats in the
Senate against free trade
agreements written in
the past three decades.
Already Mr. Trump has
halted the steady liberalization of trade that began with President Franklin Roosevelt and
continued in Democratic
Nov.
Source: CoinDesk
Domino’s Tells Its Customers Who’s
Making Their Pizza—or Does It?
i
i
i
Tracking app sends updates from dough
to door, but some details don’t ring true
BY KATHERINE BINDLEY
and Republican administrations. In his first working day in office, he
The U.S. trade deficit as a
pulled the U.S. out of a
percentage of gross domestic
12-nation Pacific trade
product has generally declined
pact, even though the
since 2009.
other nations continue
2%
working to complete a
deal. If anything, Demo0
crats criticize Mr. Trump
–2
for not clamping the
brakes even harder on
–4
globalization.
Mr. Brown opposes Mr.
–6
Trump on almost every–8
thing other than trade
and is under pressure
–10
from his party’s liberal
1990 ’95 2000 ’05 ’10
’15 wing not to cooperate
Source: Federal Reserve Bank of St. Louis
Please see
THE WALL STREET JOURNAL.
TRADE page A10
Ebb and Flow
Climb in Oil Prices Buoys
Hopes of Energy Producers
Bitcoin’s rally continued, as it
traded above $10,000 for the first
time Tuesday, up from $968.23 at
the start of the year. B1
Flynn worked with private-sector backers of a controversial Mideast nuclearpower plan to promote it
inside the White House. A6
A Libyan man accused
of a role in the deadly Benghazi assault was found
guilty of four charges but
acquitted of murder. A6
WASHINGTON—Republican efforts to overhaul the
U.S. tax code gained momentum Tuesday when two key
Senate Republicans expressed
optimism about supporting
the bill and a congressional
committee advanced the measure for a vote on the Senate
floor later this week.
Republican progress toward
overhauling the nation’s tax
code came while President
Donald Trump squabbled with
Democrats over spending legislation needed to prevent a government shutdown next month.
The Senate Budget Committee
approved the tax measure,
12-11, along party lines.
Mr. Trump in a twitter post
on Tuesday morning dismissed
striking a deal with congressional Democratic leaders Rep.
Nancy Pelosi of California and
Sen. Chuck Schumer of New
York. Both lawmakers then
skipped a meeting in the afternoon with Republican congressional leaders and the GOP
president to discuss the impasse.
Investors cared more about
the tax developments than the
spending impasse. Stocks ral-
lied on signs Republicans will
complete their tax overhaul,
pushing the Dow Jones Industrial Average up 255.93 points,
or 1.09%, to a record high of
23836.71. The Dow is up five
of the past six days and
20.62% so far this year.
“I think it’s going to pass,”
Mr. Trump said, referring to
the tax bill. He added there
would be “lots of adjustments
before it ends.”
Senate Republicans don’t yet
have 50 votes locked down for
the tax plan and are in the
midst of completing agreements that accommodate an array of lawmaker concerns. But
they emerged from a lunch
meeting with the president expressing confidence about getting the votes they need.
“Everybody said the same
thing,” said Sen. Mike Rounds
(R., S.D.) after a lunch with
Mr. Trump on Tuesday. “They
Please see TAXES page A4
Trump Wins
CFPB Ruling
Judge rejects effort to block
administration’s control of
consumer agency.................... A5
Trade Spat Makes Strange Bedfellows North
Emerson abandoned its
pursuit of Rockwell Automation after making multiple offers for the firm. B3
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
GOLD $1,294.70 À $0.90
HHHH $4.00
Senate Tax Revamp Gains Traction
What’s
News
CONTENTS
Banking & Finance.... B14
Business News.. B3,5,7-8
Crossword.............. A14
Heard on Street. B16
Life & Arts....... A11-13
Markets............. B15-16
WSJ.com
ers a real-time play-by-play of
their pizza’s production, comFor a while, Brent Gardiner plete with the name of each
felt he had a personal connec- employee handling the pie.
If the app told him that an
tion with the Domino’s employees making his pizzas— employee named “John” was
until a man named Melinda making his pizza, Mr. Gardiner
used its feedback feature to
delivered him one.
send encourageMr. Gardiner,
ment. “I’d be like,
24, of Moosup,
‘you go, John!’
Conn., was once a
‘Hope the pizza’s
devoted fan of a
popular tracking
good, John!’ ”
feature on DomThe relationino’s Pizza Inc.’s
ship cooled last
Please see
smartphone app.
PIZZA page A8
It gives customA pepperoni pizza
global producers to limit output. The rebound prompted
analysts to boost their price
forecasts last month for the
first time in six months.
U.S. crude prices are still
down nearly 46% from their
2014 high, and fell for a second consecutive day Tuesday,
slipping by 0.2% to $57.99 a
barrel.
In another sign prices are
expected to stabilize, major oil
companies are looking to reward shareholders after years
of belt tightening.
Royal Dutch Shell PLC said
Tuesday it would begin paying
its dividend only in cash,
scrapping a program that gave
shareholders the option of receiving dividends in discounted stock, known as a
scrip. Shell also said it is committed to launching a $25 billion share-buyback program
soon. Shell shares rose 3.7% in
London Tuesday.
Last month, Norway’s Statoil ASA said it also intended
to do away with its scrip dividend program. BP PLC said
last month it is restarting a
share-buyback program, and
its board has discussed rePlease see OIL page A4
Korea
Fires Off
Powerful
Missile
BY JONATHAN CHENG
SEOUL—North Korea said
Wednesday that it fired a
brand-new intercontinental ballistic missile into the waters off
Japan, ending a more than twomonth hiatus by Pyongyang
and threatening to ramp up
tensions with the U.S. and in
the region.
In a nationally televised
broadcast, North Korea’s state
television said that it had successfully fired a more advanced
ICBM, which it dubbed the
Hwasong-15 and which it said
was capable of reaching any
point on the U.S. mainland, in a
launch personally ordered by
leader Kim Jong Un.
Mr. Kim was quoted by state
media as saying that, with the
success of the new missile, “We
have finally realized the great
historic cause of completing the
state nuclear force.”
Independent experts said
that the launch sent a North
Korean missile higher than ever
before, demonstrating a trajectory that could put Washington,
D.C., in range. It triggered an
unusually robust reaction from
South Korea, which quickly responded with a battery of missile launches of its own.
The missile firing came
weeks after President Donald
Trump visited the region and
Please see KOREA page A8
Uber Formed Covert Unit to Steal
Trade Secrets, Ex-Employee Says
BY GREG BENSINGER
SAN
FRANCISCO—Uber
Technologies Inc. had a team
dedicated to stealing trade secrets and helped employees
dodge regulators’ scrutiny, according to allegations from a
former employee that are generating the latest in a string of
controversies to beset the
ride-hailing firm.
The claims came in a 37page letter sent to Uber management earlier this year by
an attorney for a former member of Uber’s security team,
Ric Jacobs. The letter, portions of which were read aloud
at a hearing Tuesday in Uber’s
civil dispute with Alphabet
Inc., describes a deeply secre-
‘Any company
that would set up
a surreptitious
system is as
suspicious
as can be.’
U.S. District Judge William
Alsup of San Francisco
tive culture that allegedly entailed disappearing messages,
mobile devices that stored information outside of Uber’s
servers and training for employees on how to communicate in ways to evade legal
discovery. Mr. Jacobs left Uber
in April, and the company
later reached a settlement
with him over his claims.
The letter’s existence surfaced days before the scheduled start of Uber’s blockbuster trial with Googleparent Alphabet, which claims
Uber stole driverless-car trade
secrets from its Waymo unit.
U.S. District Judge William Alsup of San Francisco, who is
presiding over that case, said
he was delaying the start of
the trial indefinitely because
of the seriousness of the allegations in the letter.
Please see UBER page A2
Uber is dealt setbacks in
Southeast Asia......................... B2
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.
©T&CO. 2017
U.S. NEWS
Wednesday, November 29, 2017 | A3
I-95’s Bumpy, Congested Ride
One of the busiest highways, its backups cost business and drivers in time and money
A TIFFANY HOLIDAY
Traffic Jams
BY SHANE SHIFFLETT
AND YOUJIN SHIN
Level of service
Interstate 95 is among the
nation’s busiest and longest
highways. It runs through
some of the country’s biggest
cities and costs billions of
dollars a year to maintain.
And it is filled with trouble
spots.
Federal funds for road repairs are drying up. For the
past six years, the Highway
Trust Fund—the federal government’s primary funding
source to pay for repairing
roads and transit—has spent
more than it has taken in
through fuel and other taxes.
The Congressional Budget
Office projects the fund will
become insolvent by 2021.
The tax has brought in less
revenue in recent years as
vehicles have become more
fuel efficient and inflation dilutes the effective tax rate.
But the needs are greater
than ever. Highway congestion cost commuters and
businesses $160 billion nationally in 2014 in lost fuel
and time, according to the
Texas A&M Transportation
Institute, a 280% increase
since 1982.
“We bill our customers
and pay our drivers on a
mileage rate, so if congestion
inhibits our ability to run
more miles, it limits our ability to earn and our ability to
pay our drivers,” said James
Reed, chief executive of USA
Truck Inc., a national carrier
based in Van Buren, Ark.
The nation invested more
than $20 billion in construction projects on interstates in
2012, with more than 60% of
that directed toward rehabilitating highways and bridges,
the most recent figure available, according to the Federal
Highway
Administration.
That spending totaled about
$15 billion in 2002.
Along I-95 alone, governments from Maine to Florida
have allocated more than $7
billion this year in ongoing
work, from repaving surfaces to replacing obsolete
bridges.
In Connecticut, the projects total nearly $2.5 billion,
the most per mile of any
state traversed by I-95. Replacing the Pearl Harbor
Bridge in New Haven to reduce congestion and improve
safety has a $550 million
price tag.
A Wall Street Journal analysis of federal highway data
identified Fairfield County,
Conn., as having the worst
congestion, Essex County,
N.J., as having the roughest
roads, and the area just south
of Washington, D.C., as having the worst bottlenecks
along I-95.
Clear
Congested
The most co
congested stretch of I-95 is in
Connecticut between Stamford and Bridgeport.
Traffic move
moves at about 16 miles an hour on an
average Friday
Frid at 5 p.m., according to a Wall
Street Journal
Journ analysis of 2015 data from the
University of Maryland. At noon, traffic speeds along
at 57 mph.
Fixing the pr
problem isn’t easy. Business groups
oppose bring
bringing in tolls and without another form
of new revenue,
reven it will be difficult for the state to
make improvements.
improv
Rough Going
Pavement quality
Good
Acceptable
Poor
New Jersey has the highest concentration of poor
pavement qu
quality of any of the 15 states along the
interstate, ac
according to a WSJ analysis. Rough and
uneven pavement
pave
leads to higher fuel consumption and increased
incr
accidents, industry experts say.
The biggest problem to smoothing out a section in
Essex Count
County, N.J.—where more than 50% of I-95
is in poor condition—is
con
finding time when traffic is
light. ‘Everyt
‘Everything has to be done at night and it’s
just difficult,’
difficult, said Rob Fischer, chief engineer for
the New Jersey
Jers Turnpike Authority.
Bottlenecks
Newington
Ne
ewington
ew
on
Average minutes of daily congestion
<=15
30
45
60
61+
Bottleneck
Bottle
t eeneck
132
1 mile
1 km
k
I-95’s worst bottleneck is south of Washington,
D.C., in Prince
Princ William County, Va., where traffic
during an av
average Tuesday afternoon rush hour
moves 40 mph
m slower than the speed limit,
according to data from the University of
Maryland. At
A that point, the number of lanes
drops from four
f
to three.
Congestion aaround Washington, D.C., added
nearly $1.3 billion
b
in operational costs for trucking
companies in 2015, according to a recent industry
trade group report.
PHOTOS: TIM MARTIN/THE DAY (TRAFFIC);
TAYLOR UMLAUF/THE WALL STREET JOURNAL (ROAD QUALITY)
Shane Shifflett
Sh
Shiffl tt and Youjin Shin/THE WALL STREET JOURNAL.
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A4 | Wednesday, November 29, 2017
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THE WALL STREET JOURNAL.
****
U.S. NEWS
Trump and Democrats Clash Over Budget
Schumer, Pelosi skip
meeting after tweet,
suggesting headwinds
for a long-term deal
sponse to jabs by President
Donald Trump on Twitter.
Current funding for the government expires at 12:01 a.m.
on Dec. 9, giving lawmakers little more than a week to pass
short-term legislation keeping
it fully operational. Although
Congress could still pass a
short-term measure, which
usually isn’t controversial,
Tuesday’s public dispute indicated that subsequent negotiations for an expected longerterm package at year’s end
face partisan headwinds.
The skirmish began Tuesday
morning when Mr. Trump
BY KRISTINA PETERSON
AND PETER NICHOLAS
WASHINGTON—Efforts to
reach a deal that would keep
the government running and
address sticky immigration and
spending issues derailed on
Tuesday, after Democratic
leaders pulled out of a planned
White House meeting in re-
tweeted that he planned to
take a tough line on any discussions over immigration that
come up in negotiations on
keeping
the
government
funded beyond next week.
“Meeting with ‘Chuck and
Nancy’ today about keeping
government open and working,” Mr. Trump tweeted, referring to Senate Minority Leader
Chuck Schumer (D., N.Y.) and
House Minority Leader Nancy
Pelosi (D., Calif.). Mr. Trump
continued by saying they want
“illegal immigrants flooding
into our Country unchecked.”
He added, “I don’t see a deal!”
Mr. Trump’s tweet angered
the Democratic leaders, who
said they saw no point in visiting the White House for what
they deemed fruitless talks.
“It would be a waste of everyone’s time to continue
working with someone who
clearly has no interest in coming to an agreement,” Mr.
Schumer told reporters.
Should the impasse continue over spending and force
a government shutdown, Mr.
Trump said he “would absolutely blame the Democrats.”
On Tuesday evening the
president said on Twitter: “I
ran on stopping illegal immigration and won big. They
can’t now threaten a shutdown
to get their demands.”
Democrats said voters
would hold Republicans responsible, given that they control the White House and both
chambers of Congress.
The blowup between Mr.
Trump and the Democrats
marks a sharp contrast with a
meeting in September. In that
gathering, Mr. Trump shocked
GOP leaders by overriding
their objections and striking a
deal with Mrs. Pelosi and Mr.
Schumer to keep the govern-
ment funded until December.
There are other, more volatile issues in play this time.
Democrats and some Republicans have indicated they hope
to include protections in the
year-end spending bill for undocumented
immigrants
brought to the U.S. at a young
age by parents. Mr. Trump in
September ended a program
protecting many of these immigrants, known as Dreamers.
Some Democrats have said
they wouldn’t vote for a
spending bill that doesn’t include protections for Dreamers.
WASHINGTON
WIRE
TAXES
STATE DEPARTMENT
Tillerson Addresses
Criticism of Agency
BILL CLARK/NEWSCOM/ZUMA PRESS
Sen. Susan Collins (R., Maine) said she was optimistic about ways to address her concerns about the GOP tax plan.
they were still negotiating the
particulars. Still, the idea of
potentially triggering tax increases down the road was
running into opposition from
some conservatives, including
Americans for Prosperity,
Americans for Tax Reform and
Rep. Tom Cole (R., Okla.).
“I’m not going to vote to
impose automatic tax increases on the American people,” said Sen. John Kennedy
(R., La.) “I’d rather drink weed
killer than do that.”
Ms. Collins said Tuesday
that she was optimistic that
there would be a way to address many of her concerns,
including a deduction of up to
$10,000 for property taxes.
Ms. Collins said lawmakers
were still determining how
they would pay for adding the
property-tax deduction. She
had proposed keeping the top
individual tax rate at 39.6%,
instead of the 38.5% currently
in the Senate bill for couples
making at least $1 million, but
she said there was no consensus over that idea.
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Under current law, taxpayers who itemize their deductions can subtract state and
local income or sales taxes as
well as property taxes, but Republicans want to curb that
break to pay for rate cuts. The
Senate bill would repeal the
deduction. The House bill preserves the $10,000 property
tax break, a concession to Re-
‘Not going to vote to
impose automatic tax
increases…I’d rather
drink weed killer.’
publicans from high-tax states.
If the Senate includes that
property-tax deduction, House
Republicans would have an
easier time passing a final bill.
Ms. Collins has been objecting to a provision of the tax
bill that would repeal the
mandate that individuals have
health insurance. Ending the
OIL
Continued from Page One
moving its own scrip program.
Unlike previous years, when
oil often dragged down other
financial markets, resurgent
global economic growth is
pushing U.S. stock markets to
record highs and lifting oil
prices.
“The broader global economic picture has been one
that continues to strengthen,”
said Michael Cohen, head of
energy commodities research
at Barclays. “There are only a
very small number of countries that are not showing
positive global growth.”
Nearly half of the 35 major
equity indexes representing
the world’s biggest stock markets by value have reached
multiyear highs this year.
Also, strong factory activity in
China has boosted copper—a
widely watched barometer of
global economic health—to
near a three-year high.
Profits at many of the
world’s largest energy companies soared during the third
quarter, and the higher prices
have given many U.S. companies confidence that they can
continue to increase earnings.
The energy sector of the S&P
500 hit a 2017 low in August,
and has since climbed 9.8%.
Traders say a break above
$60 isn’t guaranteed. Uncertainty about whether the Organization of the Petroleum
Exporting Countries will agree
to continue holding crude off
the market when the group
mandate would save the government money because fewer
people would get insurance
and the government would
spend less on Medicaid and insurance subsidies.
On Tuesday, Ms. Collins said
she secured an agreement to
vote on bipartisan legislation to
stabilize the individual insurance market, helping ease her
concerns. Mr. Trump had opposed that bill earlier this year,
but told GOP senators on Tuesday he would support it, lawmakers said; the White House
didn’t respond to a request for
comment on that issue.
Republicans have 52 votes
in the Senate and they can
lose only two votes, assuming
all Democrats vote no. There
are several groups of wavering
Republicans, but the statements by Mr. Corker and Ms.
Collins move Republicans
closer to locking those down.
At the Budget Committee
vote, Sen. Ron Johnson (R.,
Wis.), who has said he opposes the bill because it
doesn’t cut taxes deeply
enough for pass-through businesses such as partnerships
and S corporations, voted to
move it forward.
Democrats said Republicans’
haste in moving a $1.4 trillion
tax cut through Congress contradicts their own years of
warnings about the economic
harm of budget deficits.
“Where are all those deficit
hawks now? Where are those
charts and graphs?” said Sen.
Patty Murray (D., Wash.).
“Where is the moral outrage?
Where is the concern for our
children and grandchildren
now?”
Republicans counter that
tax cuts will spur enough economic growth to pay for themselves, even though independent estimates of their plans
haven’t shown that.
The nonpartisan Joint Committee on Taxation may release its projections about the
bill’s economic effects as early
as Wednesday.
—Siobhan Hughes
and Peter Nicholas
contributed to this article.
Bouncing Back
U.S. oil prices are approaching $60 a barrel for the first time
since the 2015 collapse, driven in part by rising demand.
Crude-oil prices
Net global production
and demand, quarterly
2.0 million barrels a day
$70 a barrel
1.5
60
1.0
50
0.5
40
0
30
–0.5
–1.0
20
2015
’16
2013 ’14
’17
Sources: WSJ Market Data Group (crude prices); IEA
meets Thursday has weighed
on prices recently.
But the International Energy Agency expects oil demand to have increased by 1.5
million barrels a day this year
and to rise by 1.3 million barrels a day in 2018.
Some analysts are even
more optimistic. Goldman
Sachs Group Inc. said in a research note earlier this month
that rising consumption, especially in India and China,
prompted the bank to boost
its forecast for global oil demand—Goldman analysts now
expect it will increase by 1.7
million barrels a day this year
from 2016.
“We are more optimistic on
oil demand growth given the
ongoing solid global growth
momentum and the still relatively low oil prices,” they
wrote in a note Monday, reit-
’15
’16
’17
NET DEMAND NET PRODUCTION
Continued from Page One
all said, ‘We want to get to
yes. We want to get to yes.’”
Senate Republican leaders
have been trying to address
the concerns of several groups
of wary lawmakers in their
own party, including Bob
Corker of Tennessee and Susan Collins of Maine. On Tuesday they appeared to have
made substantial progress.
If the Senate passes the bill
this week, a House-Senate
agreement on reconciling the
two chambers’ competing versions of the measure would be
the only remaining obstacle to
completion.
The Senate tax bill would
lower the corporate tax rate to
20% from 35%, repeal the alternative minimum tax, shrink
the estate tax and lower individual rates. The individual tax
cuts would expire after 2025,
while the corporate tax cuts
would remain in place, leaving
about half of households
worse off by 2027 than if Congress did nothing.
The plan would increase
budget deficits by $1.4 trillion
over a decade, plus additional
interest costs. That price tag—
created under an agreement
Mr. Corker made earlier this
year—is causing new concerns
for Mr. Corker, who said he is
concerned about deficits. Sens.
Jeff Flake (R., Ariz.) and James
Lankford (R., Okla.) said they
shared the same concern.
Mr. Corker is worried the tax
cuts won’t trigger the additional economic and revenue
growth that many Republicans
are expecting from their overhaul. He said he and other senators had an outline in place for
an agreement to create an automatic mechanism that would
alter the tax cuts if the plan
doesn’t produce the expected
growth and revenue results.
“I think we’ve come to a
pretty good place,” Mr. Corker
said. “We’ve got an outline of
an agreement at every level
that matters in the Senate to
make it happen.”
Mr. Corker didn’t provide
details of how that would
work, and other senators said
THE WALL STREET JOURNAL.
erating their forecast.
Demand was a question
mark heading into this year.
Low prices in 2015 and 2016
fueled “scorching” increases
in consumption and some
weren’t sure whether that
would continue, said Doug
Terreson, head of energy research at Evercore ISI.
“But with oil prices low and
the global economy strengthening, we had another great
demand year,” he said.
Increased demand has
pulled stockpiles of crude oil
out of storage this year, even
as U.S. shale producers have
ramped up output and pushed
weekly production to record
highs. Last month, crude
stockpiles fell to the lowest
level since the beginning of
2016, according to the U.S.
Energy Information Administration.
Secretary of State Rex Tillerson pushed back Tuesday at criticism from lawmakers and diplomats suggesting that he is
gutting the State Department,
stressing that it is functioning
“very well.”
Mr. Tillerson, speaking before a
think tank in Washington, defended what he described as hard
work by career officials, many in
acting roles, on issues involving
North Korea, Syria, Ukraine, Iran,
the Islamic State extremist group,
Afghanistan and others.
“All of that’s been done with
the people that are working there
today, and I’m very proud of what
they’ve done,” Mr. Tillerson said.
The American Foreign Service
Association, a union, released employment data earlier this month
that it said demonstrated a “dizzying” depletion of the department’s leadership ranks, including
60% of its career ambassadors.
Mr. Tillerson said the 60% figure
amounts to a drop from 6 career
ambassadors to 2, which is in line
with historical trends.
—Felicia Schwartz
PUERTO RICO
FEMA Terminates
Storm Contracts
After Hurricane Maria damaged tens of thousands of homes
in Puerto Rico, a newly created
Florida company won more than
$30 million in contracts from the
Federal Emergency Management
Agency to provide emergency
tarps and plastic sheeting for repairs.
Bronze Star LLC never delivered those supplies. FEMA terminated the contracts, without paying any money, and restarted the
process to supply more tarps.
“We were trying to help; it
wasn’t about making money or
anything like that,” said Kayon
Jones, one of the company’s
founders.
—Associated Press
“So far it has been surprising to many players in the
marketplace how quickly inventories in the United States
have adjusted,” said Bart Melek, head of commodity strategy at TD Securities.
Global stockpiles have also
steadily declined this year, according to data tracked by the
IEA. In recent months, increased geopolitical tensions
in countries such as Saudi
Arabia and Iraq sent oil prices
higher, which analysts noted
as a sign of a tighter market
supply.
Still, the specter of higher
U.S. production continues to
worry some investors. Jack
Ablin, chief investment officer
at BMO Private Bank, said restraint by OPEC—especially
Saudi Arabia—underpinned
oil’s turnaround this year. But
$60 a barrel is likely the upper bound for U.S. crude
prices, he said.
“At $60 we would start to
see the rig count really ramp
up,” Mr. Ablin said. “I have a
feeling that what Saudi Arabia
wants more than high prices
would be stable prices.”
Oil’s recent rally may also
be threatened by a meeting
this week between OPEC and
other global producers including Russia. On Thursday, the
group is expected to decide
whether or not to extend a
deal struck last year to curb
production, as part of their efforts to reduce an overhang in
crude supply and bring stockpiles back to the average level
of the past five years.
—Michael Amon
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.
NY
* * * *
Wednesday, November 29, 2017 | A5
U.S. NEWS
BY JON KAMP
AND CAMERON MCWHIRTER
Louisiana lawmakers are
scrambling to find a long-term
fix for a looming fiscal crisis
and avoid deep spending cuts,
before $1 billion in temporary
tax measures expire next year.
Democratic Gov. John Bel
Edwards’s coming budget proposal will have to include
“devastating cuts,” said Jay
Dardenne, the governor’s chief
budget officer. That would add
to deep reductions the state
has made in recent years to
higher education and to childwelfare and other state agencies, unless lawmakers strike a
deal to replace the lost revenue to help fill a budget hole
that is estimated to reach $1.5
billion when the new fiscal
year begins.
At issue is the end of a series of temporary taxes put in
place two years ago to stave
off a fiscal emergency.
Louisiana law prevents legislators from adding new revenue in next year’s regular legislative session, starting in
March, so Mr. Edwards would
like a special session to finalize a deal before then.
“We are dangling over the
cliff,” said Mr. Dardenne, a Republican and former lieutenant governor. “We can’t just
dawdle around and wait for
the very last minute.”
Mr. Edwards, who blamed
state House Republicans for
not acting on budget measures
earlier this year, is urging a
permanent fix and not an extension of temporary taxes.
Republican House Speaker
Taylor Barras suggests a solution could include making permanent, or extending, some of
the taxes now set to expire.
Those measures include an additional penny of sales tax and
reductions in tax credits.
Louisiana is a low-tax state
with a long history of fiscal instability, tied in part to its reliance on energy-industry revenue. The state instituted a
measure in 2002 that eliminated sales taxes on certain
goods and services while raising income taxes on both middle- and higher-income filers.
After Hurricanes Katrina
and Rita hit in 2005, billions
of dollars in federal aid helped
stimulate the state’s economy,
said Greg Albrecht, chief economist in the state Legislative
Fiscal Office. Lawmakers responded with tax cuts, first
under Gov. Kathleen Blanco, a
Democrat, and the next year
under GOP Gov. Bobby Jindal.
Ms. Blanco in an interview
said she reluctantly approved
partial revenue cuts because
of pressure from legislators,
but said they made “a big mistake.” Mr. Jindal didn’t respond to calls for comment.
No Relief After Relief Funds
After fading hurricane relief and tax cuts in the past decade, Louisiana
is grappling with a looming hole in its budget that is currently filled by
$1 billion in temporary tax measures.
Post-hurricane tax peak
inflated by federal funds
$14 .billion
Temporary tax measures
Increase ends June 30
12
10
8
6
4
2
0
FY2000
’02
’04
’06
’08
’10
’12
’14
’16
THE WALL STREET JOURNAL.
Source: Louisiana's Legislative Fiscal Office
SUSAN WALSH/ASSOCIATED PRESS
Louisiana Stares Down
A Big Budget Shortfall
An appeal is expected of a ruling that the president could name budget chief Mick Mulvaney as the acting director of the CFPB.
Judge Backs Trump in CFPB Fight
BY LALITA CLOZEL
WASHINGTON—A federal
judge sided with the White
House in the battle over control
of the Consumer Financial Protection Bureau, saying Tuesday
that he wouldn’t stop the
Trump administration from
running the agency.
An Obama-era official, Leandra English, had argued she was
the CFPB’s rightful leader until
a permanent successor is confirmed and had sought an order
to unseat the Trump administration’s temporary leader.
The ruling by Judge Timothy
J. Kelly, of the U.S. District
Court for the District of Columbia, clears the way for White
House budget chief Mick Mulvaney to continue serving as acting director of the CFPB while
President Donald Trump finds a
permanent successor. A court
order denying the request for a
restraining order came shortly
after Judge Kelly’s decision.
The fight isn’t over. Ms. English’s attorney, Deepak Gupta,
said she would appeal the decision.
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Ms. English was elevated to
deputy director from chief-ofstaff on Friday following the departure of former Director Richard Cordray last week.
White House spokesman Raj
Shaw said the administration
applauded the court’s decision.
“It’s time for the Democrats to
stop enabling this brazen political stunt by a rogue employee,”
he said.
Mr. Mulvaney on Tuesday
further asserted his presence as
the acting chief of the CFPB by
opening a new twitter account
with a handle @CFPBDirector.
A single tweet showed him
working at a desk with the U.S.
flag behind it, with a caption
“Busy day at the @CFPB. Digging into the details.”
On the agency’s website, Mr.
Mulvaney’s name, title and
photo were added to the section about top officials. Ms.
English is listed below as “Deputy Director” without a photo.
Ms. English, in a statement
released by Mr. Gupta, said she
would work at the CFPB on
Tuesday. “I plan on spending
the day at CFPB headquarters
taking calls and meetings with
external stakeholders and bureau staff,” she said.
Judge Kelly said the statute
invoked by the Trump administration to justify Mr. Mulvaney’s
position—the 1998 Vacancies
Reform Act—overrode succession guidelines in the 2010
Dodd-Frank financial law, which
created the CFPB.
While the president’s authority to name an acting head of a
government agency in the event
of a vacancy “is not exclusive
by virtue of the text, it is available,” he said, referring to the
vacancies law.
He also weighed in on the
question of the CFPB’s independence under Mr. Mulvaney, who
reports directly to the White
House as head of its Office of
Management and Budget. “Undoubtedly, the CFPB was intended to be independent,” said
the judge. “However it is still a
branch of the executive office.”
Judge Kelly was confirmed
to the bench in September after
being nominated by Mr. Trump
over the summer.
At Tuesday’s hearing, the
Trump administration continued to argue against Ms. English’s claims. “We don’t think
there is any need for any type of
emergency relief here,” said
Brett Shumate, a Justice Department lawyer. “Mr. Mulvaney is
in office as the acting director.”
Deliberations in the courtroom Tuesday offered a window into behind-the-scenes
feuding between Mr. Mulvaney
and Ms. English. Mr. Gupta accused the Trump administration of undermining Ms. English’s role as deputy director of
the agency by sending messages to CFPB’s employees and
Ms. English, saying she has received “emails from Mr. Mulvaney reprimanding her for the
way that she has held herself.”
While he added there was
no sign so far that the administration was getting ready to
fire Ms. English, Mr. Gupta said
he thought the administration
could set up a “claim that she
was somehow not performing
her duties.”
—Peter Nicholas
and Yuka Hayashi
contributed to this article.
A6 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
U.S. NEWS
Flynn Pushed Plan Deep Into White House Libyan
Private-sector backers of a
controversial Middle East nuclear-power plan worked with
former national security adviser Mike Flynn to promote it
inside the White House, to the
point of sending him a draft
memo for the president to
sign authorizing the project.
At issue was a proposal to
build dozens of nuclear reactors, billed by its backers as a
“Marshall Plan for the Middle
East.” Before joining the White
House, Mr. Flynn, a retired
lieutenant general, had advised some of the U.S. companies involved in the plan in his
capacity as a consultant.
Mr. Flynn’s efforts to promote the plan included telling a
National Security Council
staffer to create an official directive detailing the plan for
President Donald Trump to
sign, people familiar with the
matter say. He also brought the
project to the attention of a key
administration ally, these people say. The plan was projected
to generate $250 billion in revenue for U.S. companies, according to documents reviewed
by The Wall Street Journal.
Details of Mr. Flynn’s promotion of the project inside
the White House first became
public in September. Evidence
now is surfacing about how
far it progressed inside the administration, and how Mr.
Flynn’s former staffer continued to promote it after Mr.
Flynn left office in February.
The House Committee on
Oversight and Government Reform is investigating Mr.
Flynn’s relationship with the
companies involved and to
what extent his consulting career overlapped with his role as
a top adviser to Mr. Trump.
Special Counsel Robert
Mueller separately is investigating Mr. Flynn’s work before
he joined the White House as
part of a probe into whether he
improperly concealed financial
ties to Turkey and to Russia,
amid signs that Mr. Flynn may
be working on a deal with Mr.
Mueller, people familiar with
DREW ANGERER/GETTY IMAGES
BY CHRISTOPHER S. STEWART
AND ROB BARRY
Mike Flynn promoted a nuclear-power project while working as national security adviser.
the matter say. Mr. Flynn was
forced to resign in February for
misleading White House officials about earlier conversations with the Russian ambassador about U.S. sanctions.
This account of his efforts
to push the nuclear plan is
based on interviews with current and former government
officials, private-sector individuals who worked on it and
documents describing the plan.
Mr. Flynn declined through his
lawyer to comment.
A White House spokesman
said “the White House and National Security Council have rigorous processes in place to ensure that all outside proposals
are thoroughly evaluated for
their potential legal and policy
implications.”
In White House disclosure
forms, Mr. Flynn noted his relationship with two companies involved in the project, but didn’t
reveal any payments. He later
amended the forms, saying a
third company paid him more
than $5,000. He said his relationship with the companies
ended in December 2016.
Two ranking Democrats said
in September that Mr. Flynn appeared to violate federal law by
failing to disclose details of his
work for the firms on his secu-
rity-clearance interview and renewal application in 2016.
Since his resignation, his former private-sector colleagues
have continued to lobby federal
agencies about the plan and recently met with Jared Kushner,
the president’s son-in-law and a
senior White House adviser.
In early January, Mr. Flynn
talked favorably about the
proposed deal with Mr.
Trump’s friend, real-estate
A House committee is
investigating Mr.
Flynn’s relationship
with the companies.
magnate Thomas Barrack Jr.,
who was heading the inauguration, according to a person
familiar with the conversation.
Mr. Flynn suggested to Mr.
Barrack that he talk with one
of the project’s backers.
The suggestion kicked off a
series of conversations between Mr. Barrack, who was
interested in broader change
in the Middle East and has extensive business contacts in
the region, and Mr. Flynn’s for-
mer colleagues, as well as Mr.
Kushner. A White House official said nothing came of the
meetings with Mr. Kushner.
Mr. Flynn arrived at his National Security Council job
with a group of people who
felt the Obama administration
had been too soft on Iran.
They believed the nuclearpower plan, which envisioned
building and operating dozens
of nuclear plants in Saudi Arabia and across the Middle East,
would strengthen Iran’s rivals.
One of the people Mr. Flynn
brought with him, former Army
Col. Derek Harvey, said at a
meeting during the first week
of the new administration that
Mr. Flynn had told him to develop a regional economic and
energy plan for the Middle
East. When staffers pointed out
there was an NSC office that
handled economic and energy
issues, Mr. Harvey said Mr.
Flynn had directed him to take
the lead on the issue.
A spokesman for Mr. Harvey declined to make him
available to comment.
Mr. Harvey met with a private-sector backer of the nuclear plan the first week of the
Trump administration. Days
later, another of the project’s
backers, Robert “Bud” McFar-
lane, a national security adviser to President Ronald Reagan, emailed documents to
Mr. Flynn.
One was an appeal to Mr.
Trump saying the nuclear plan
would boost American industry, generate American jobs
and leverage the private sector
to reshape the Middle East.
The appeal said the retired
military officers involved were
known and respected by Mr.
Trump. They included Gen.
Jack Keane, former Army vice
chief of staff, Rear Adm. Michael Hewitt and Gen. Keith Alexander, former head of the
National Security Agency.
Mr. McFarlane included a
draft of a memo about the
project Mr. Trump could send
to cabinet heads.
In emailed responses to
questions from the Journal, the
plan’s backers said the meetings were held and documents
were provided at the administration’s request. They said Mr.
Flynn had been invited to join
their group in the summer of
2016, but that in December he
said he wouldn’t participate.
Mr. Flynn forwarded Mr.
McFarlane’s email to his staff
with an instruction: Prepare a
package for the president. Mr.
Harvey told his staff to put the
contents of the draft memo
into an official “cabinet memo”
from the president. There is no
indication such a memo ever
went to Mr. Trump.
NSC lawyers soon directed
the council members to stop
working on the project because
of Mr. Flynn’s prior work as an
adviser. They told Mr. Flynn not
to attend a planned follow-up
meeting with Mr. McFarlane,
which Mr. Harvey attended instead. After Mr. Flynn was
ousted, Mr. Harvey pushed NSC
colleagues to continue working
on the nuclear plan.
Mr. Harvey, the administration’s senior Middle East adviser, was dismissed in July
after clashes with NSC staffers. He is now senior adviser
to the chairman of the House’s
Permanent Select Committee
on Intelligence. Among other
things, the committee is investigating Mr. Flynn.
Guilty in
Benghazi
Assault
BY JESSICA DONATI
AND DEL QUENTIN WILBER
A Libyan man accused of
taking part in the deadly assault on the U.S. mission in
Benghazi in 2012 that killed
four Americans, including the
U.S. ambassador, was found
guilty of four charges Tuesday
but acquitted of murder.
Ahmed Abu Khatallah, 46
years old, was found guilty of
conspiring to provide material
support and providing material support to terrorists, as
well as destructive acts
against the mission and possession of a semiautomatic
firearm.
But Mr. Khatallah was
found not guilty of more serious charges, including the
murder of an internationally
protected person and four
counts of killing someone during an attack on a U.S. facility
involving dangerous weapons.
The trial took place in federal court in Washington.
Court officials said Mr. Khatallah could face a maximum of
60 years in prison.
Mr. Khatallah was captured
in 2014 in Benghazi and
brought to the U.S. to face 18
federal charges related to the
attack that claimed the lives of
Ambassador Christopher Stevens and three other Americans.
Federal prosecutors accused
him of being the ringleader of
the Sept. 11, 2012, attack and
cast him as a terrorist driven
by his hatred of Americans.
Defense lawyers countered
that prosecutors had failed to
prove that Mr. Khatallah had
helped plan or participate in
the attacks, and accused the
U.S. government of presenting evidence in a way that
would lead jurors to be highly
suspicious of Mr. Khatallah
due to his religious and political beliefs.
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THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | A7
NY
WORLD NEWS
BY PAUL HANNON
The global economy is on
course for its best year since
2010 as both the U.S. and the
eurozone grow more rapidly
than had been expected, the
Organization for Economic Cooperation and Development
said.
The Paris-based body said
further acceleration is likely in
2018, but warned that growth
would slow from 2019 without
new measures to encourage
business investment, which remains short of precrisis levels.
“It’s a hump-shaped projection, where the peak of the
hump is now,” said Catherine L.
Mann, the OECD’s chief economist. “We don’t see a breaking
out of the growth pattern.”
For Ms. Mann, much of the
recent pickup in growth is due
to the continuation of supportive central-bank policies
around the world, with the recent addition of more stimulative fiscal policies, including
proposed tax cuts in the U.S.
But what is missing is an
intensification of competition
that would drive increased investment and gains in productivity that could in turn raise
real wages.
The OECD raised its growth
forecasts for the U.S. and the
eurozone this year and next. It
now sees the former growing
2.2% this year and the latter
2.4%. If the OECD is right, it
would be the second straight
year in which the eurozone
has outpaced the U.S.
But 2018 is expected to see
the return of a more traditional relationship, with the
U.S. growing 2.5% and the eurozone 2.1%. The research
body’s economists expect U.S.
growth to slow in 2019, while
remaining faster than that of
the eurozone.
Saudis Free Some Graft Suspects
Releases of prominent
detainees suggest
corruption crackdown
is reaching resolution
The Saudi government released several high-profile
suspects held in a wide-ranging anticorruption campaign, a
sign that those accused of
amassing wealth illegally are
agreeing to cash settlements
in exchange for their freedom.
FAISAL AL NASSER/REUTERS; PHILIPPE WOJAZER/REUTERS (BELOW)
Growth
In Global
Economy
Is Robust
By Margherita
Stancati in Beirut and
Summer Said in Vienna
Among those released on
Tuesday was Prince Miteb bin
Abdullah, the most politically
influential royal detained in a
campaign launched this month
that targeted the country’s elite,
people familiar with the matter
said. Prince Miteb couldn’t be
reached to comment.
The crackdown—which included government officials,
prominent businessmen and
members of the ruling family—
began early this month and has
swept up more than 200 people, many of whom have been
confined to the opulent RitzCarlton hotel in western Riyadh.
The release of some of the
detainees offers the clearest
indication yet that the Saudi
government’s
far-reaching
crackdown is beginning to
reach a resolution. “The settlement process is working,”
said a person close to the government. “They want it to be
over…that’s why they are offering a plea bargain,” he said
of government officials.
Representatives for the
Saudi government didn’t immediately respond to requests
to comment.
The investigation is led by a
newly established anticorruption agency headed by the
kingdom’s powerful crown
prince, Mohammed bin Salman, who is pushing to overhaul Saudi Arabia’s oil-dependent economy as well as its
Prince Miteb bin Abdullah, below, was held in a probe led by Crown Prince Mohammed bin Salman, above.
conservative society.
The detainees, who face accusations that include procurement fraud, money laundering
and bribery, were given the option by Saudi authorities of relinquishing part of their wealth
in exchange for freedom rather
than going to court.
“People are being offered
settlements and those who are
agreeing are settling and going home,” said Ali Shihabi,
who is close to the Saudi government and executive director of the Arabia Foundation, a
Washington-based think tank.
“People who don’t agree will
enter a formal legal process.”
In this way, the government
hopes to reclaim hundreds of
billions of dollars in assets it
believes were amassed illegally. The government hasn’t
officially named any of the accused.
Many of the accused are
complying with the request by
agreeing to transfer cash and
alexa
other assets and are being set
free as a result, people familiar with the matter said.
They include Prince Miteb,
the son of the late King Abdullah and the powerful former
head of Saudi Arabia’s National
Guard, one of three main
branches of the kingdom’s secu-
rity establishment. He left the
Ritz and is now at his palace in
Riyadh, people familiar with the
matter said. The details of his
settlement are unclear.
“Praise be to God, Lord of
the Worlds. May God keep you
safe always, Abu Abdullah,” a
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also tweeted.
Once seen as a contender
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but who are close to those
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aimed to send a message that
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open up and diversify its economy.
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A8 | Wednesday, November 29, 2017
* ****
THE WALL STREET JOURNAL.
WORLD NEWS
WORLD WATCH
China’s Disgraced Web Czar Still Wins
SHANGHAI—At home and
abroad, the swaggering Lu
Wei, China’s now-disgraced
chief censor, won all of his
battles.
Humiliation was his trademark, whether publicly cowing the country’s “Big V”
bloggers—wits and satirists
who once
commanded
tens of millions of followers with
mild critiques
of the regime—or extracting homage from Western media and technology
executives. On a visit to Silicon Valley three years ago,
he famously took a spin in
the office chair of Facebook
founder Mark Zuckerberg.
That moment, his face lit
up in delight, seemed to cap
his triumph. An old-style
Communist apparatchik with
digital-era savvy, he had
practically written the autocrat’s guide to internet management, demonstrating how
the web could be turned into
an effective tool of authoritarian control while still acting as an engine of economic
growth and innovation—a
goal many in the West
JOHANNES EISELE/AGENCE FRANCE-PRESSE/GETTY IMAGES
CHINA’S WORLD
By Andrew Browne
thought impossible.
Now, a U.S. media mogul
who had made his fortune on
free expression in an open
society was playing along.
Mr. Zuckerberg craved
profit from the world’s largest
online population. For China
access, it would be incumbent
on foreign social-media companies to police their platforms as zealously as any Chinese operator and store their
Chinese data inside the country under the close watch of
state security. Facebook, which
remains blocked in China, has
begun developing technology
that could cull content the
Communist Party deems unacceptable. Mr. Zuckerberg has
said he sees China as crucial
in Facebook’s mission.
T
he head of the Cyberspace Administration of
China from 2013 to
2016 had a long history of
tangling with foreign media.
In his earlier career as a senior Xinhua executive, he was
involved in an effort by the
state news agency to grab
control of the China business
operations of foreign financial
news and data vendors, including Reuters and Dow
Jones, the publisher of The
Wall Street Journal. China
eventually backed down in the
face of coordinated resistance.
On a stage in Tianjin at the
World Economic Forum in
2014, he looked the president
of Qualcomm, Paul Jacobs, in
the eye and reminded him that
the U.S. chip maker earned
half of its revenue in China.
“We should make money together,” he said with a wide
Lu Wei headed the Cyberspace Administration from 2013 to 2016.
grin that belied the menace in
his words. Qualcomm was
then under investigation for
anticompetitive practices and
was subsequently fined almost
$1 billion and forced to lower
royalty fees on its patents.
“You keep stabbing me in
the back, stabbing me, stabbing me, stabbing me,” he
sputtered to one visitor, a
senior editor at a U.S. newspaper, theatrically miming
the act as his underlings
fetched offending articles to
show him. “You are in my
home,” he roared, which
meant, “You obey my rules.”
Those who wouldn’t sub-
mit, including The Wall
Street Journal and the New
York Times, have been
blocked online.
M
r. Lu’s ambitions
went well beyond
corralling foreign media in China. A tireless evangelist for “cybersovereignty,”
he helped to turn the global
internet into what some call a
“splinternet” defined by national borders.
Some speculate that Mr.
Lu’s reinforcements of
China’s “Great Firewall”
didn’t go far enough to satisfy his boss, President Xi
ISRAEL
U.S. Embassy Move
Under Active Review
Jinping, and that a lack of
rigor helps explain his demise. An official announcement last week accused him
of “grave violations of discipline,” which usually indicates corruption.
His successor, Xu Lin, significantly tightened controls.
In September, Baidu, Weibo
and WeChat parent Tencent
were handed maximum fines
under a new cybersecurity law
for hosting banned content
ahead of a key Communist
Party congress. Authorities
now insist that internet users
register their real names before posting comments, and
organizers of online forums
are held accountable for the
contributions of members.
Having rid Chinese cyberspace of unwanted foreign
news, today’s censors have
turned their attention to academic writing. Cambridge
University Press said in August it had agreed to remove
hundreds of papers on its
China site covering sensitive
topics. A few days later, after
a backlash by academics, it
said it would restore them.
Yet Mr. Lu’s legacy lives
on. In the week he went
down, Tencent overtook
Facebook in market value.
Countries around the world
are copying the censorship
blueprint that Mr. Lu laid out.
Even at the moment of his
personal ruin, the Communist Chinese state paid a perverse compliment to Mr. Lu’s
professional accomplishments: Censors scrubbed all
mention of the former internet czar and his works from
social-media platforms.
Vice President Mike Pence
said the White House is actively
considering when and how to
move the U.S. Embassy in Israel
from Tel Aviv to Jerusalem, a
campaign promise the Trump
administration has so far put on
hold.
Mr. Pence, speaking Tuesday
at a commemoration of the
70th anniversary of the United
Nations vote to recognize Israel,
didn’t specify when the embassy
relocation might occur, but said
President Donald Trump favors
the move.
Mr. Trump vowed to relocate
the embassy while campaigning
for president, but in June became the latest U.S. leader to
waive the provisions of a 1995
law requiring the U.S. Embassy
be moved to Jerusalem.
—Farnaz Fassihi
MEXICO
Díaz de León Named
Central Bank Chief
President Enrique Peña Nieto
on Tuesday appointed Alejandro
Díaz de León, an orthodox, U.S.educated technocrat with more
than 25 years in public service,
as the next Bank of Mexico
chief.
Mr. Díaz de León, currently a
central bank deputy governor,
will succeed Agustín Carstens,
who is leaving this week to become the head of the Bank for
International Settlements in
Switzerland.
Mr. Díaz de León will step
into his new role on Dec. 1 and
serve through December 2021,
when Mr. Carstens’ term was
scheduled to end.
—Anthony Harrup
KOREA
day to discuss the launch.
“The international community must fully enforce economic sanctions on North Korea,” Mr. Abe said. It is unclear,
however, how the Security
Council would respond to the
latest test after nearly exhausting sanctions options. The last
remaining target for sanctions
would be North Korea’s ability
to import oil, a step opposed
by China and Russia because of
the potential for humanitarian
crisis and instability.
In recent months, North Korea has begun to vary the time
and location of its test
launches. The unusually early
hour of Wednesday’s missile
Doug Terfehr, says the company
included fewer steps in its pizza
tracker to ensure it would be
more accurate. “We really know
precisely where that driver is
on their path to the house.”
“Papa Track is highly popular among our customers,” says
Papa John’s spokesman Peter
Collins. “The tracker enables us
an opportunity to engage, entertain and improve the customer experience.”
Chris Hull of Pierre, S.D., can
see his Domino’s store from his
home. His 9-year-old daughter
is obsessed with the app, and
asks: “‘Where’s the pizza, Dad?
John said he’s supposed to be
here. Did he get lost?’ ” he says,
while “we’re looking out the
window.”
“The way my wife put it,” he
says: “It’s like when the server
comes by and offers you another
glass of milk and she says ‘your
dinner will be out in a minute’
when actually she has no idea.”
Stephen Owen, a Whitehall,
Ohio, service technician, recently ordered a pizza and was
notified that he had picked it up
when he hadn’t. “I was sitting
at home,” said Mr. Owen, 39.
Ms. Fouracre of Domino’s
said that such a situation could
be explained by human error,
with someone closing out the
order prematurely.
Luke Dier, who runs a Washington, D.C., career-consulting
business, says when the Domino’s app said his pizza had arrived when it hadn’t, he called
an employee about the tracker.
“He was like, ‘Oh it’s a suggestion,’ and that really pissed me
off.” Mr. Dier, 37, said food-delivery apps like UberEats have
raised the tracking bar by letting customers see and contact
drivers. “The apps create the expectation of what can be done.”
“I was fine with the way
pizza used to work,” he says,
“where they’d say it’d show up
in 45 minutes and it would take
an hour.”
KCNA/REUTERS
Continued from Page One
roughly a week after he redesignated North Korea a state
sponsor of terror. Mr. Trump,
speaking to reporters Tuesday,
mentioned the missile launch
and vowed, “We will take care
of it,” without specifying what
actions he might take.
The missile was fired just
before 3 a.m. Wednesday local
time from a site about 20 miles
north of the capital, Pyongyang,
according to U.S., Japanese and
South Korean authorities. It
flew for almost an hour, covering about 620 miles, before
splashing down in the waters
between Japan and the Korean
Peninsula inside Japan’s exclusive economic zone, which extends 200 nautical miles from
its coast.
South Korea’s Joint Chiefs of
Staff said while it landed relatively close to its launch site,
the “long-range” missile was
fired on a very steep trajectory,
reaching an altitude of about
2,800 miles—roughly 11 times
as high as the international
space station.
Under Mr. Kim, North Korea
has increasingly turned to such
so-called
lofted-trajectory
launches in recent months to
test its missiles at extended
ranges without having them fly
a long horizontal distance.
The missile “went higher,
frankly, than any previous
shots,” U.S. Defense Secretary
Jim Mattis said. “The bottom
line is it’s a continued effort to
build a…ballistic missile threat
that endangers world peace,
regional peace and certainly
the United States.”
Wednesday’s test demon-
test, its occurrence in the generally less active period of late
November, and the use of a
launch site not often employed
by the North appeared designed to show off Pyongyang’s
ability to fire missiles under
less predictable circumstances.
If Wednesday’s missile is
confirmed to have been an
ICBM, it would be Pyongyang’s
third launch of such a device,
the first two having occurred
in July. North Korea conducted
its sixth and most powerful nuclear test in early September.
Its most recent launch was of
an intermediate-range ballistic
missile fired over the Japanese
mainland on Sept. 15.
U.S. Secretary of State Rex
Tillerson said after the launch
that “diplomatic options remain viable and open, for now,”
adding the U.S. wants “a peaceful path to denuclearization.”
In Washington, U.S. officials
said they had seen movement
in North Korea earlier this
week suggesting an imminent
launch of a land-based missile.
Rodger Baker, lead Asia analyst for geopolitical consulting
firm Stratfor, said the North in
its recent nighttime tests appeared to have tried fueling a
missile horizontally before rolling it out of the hangar and
then raising it to a vertical
launch position—all moves
aimed at reducing the preparation time for a launch.
“They’re looking for ways
to shorten the waiting time
from the time the missile is
visible to the time that it’s
launched, to take down the
U.S. confidence that it can take
out a missile before it takes
off,” he said.
—Nancy A. Youssef and Peter
Nicholas in Washington
contributed to this article.
North Korean leader Kim Jong Un inspecting the intercontinental ballistic missile Hwasong-14, in a photo released in July. North
Korean state television said the missile launched Wednesday, dubbed the Hwasong-15, was a more advanced type of ICBM.
strated a trajectory that could
put Washington, D.C., within
range of North Korean missiles, said Melissa Hanham, a
senior research associate at
the Middlebury Institute of International Studies in Monterey, Calif.
“If the numbers hold, this
test will demonstrate a much
further range than ever tested
before,” Ms. Hanham said.
Japanese Defense Minister
Itsunori Onodera said the missile appeared to break up before landing, suggesting the
launch may not have been a
successful test of an atmospheric re-entry vehicle for a
missile warhead, a key techni-
cal step North Korea needs to
overcome to prove it can
threaten the U.S. with a nuclear-tipped weapon.
Within six minutes of the
North’s launch, South Korea responded with a simultaneous
test-firing of missiles from its
army, navy and air force, calibrated to the distance to the
North Korean launch site but
aimed toward the waters between Korea and Japan, the
South’s Joint Chiefs said.
While the South has also reacted to previous North Korean
missile launches by firing its
own missiles, Wednesday’s response was stronger and faster
than in the past. The authori-
ties said the South’s military
was on high alert and working
closely with the U.S. to guard
against further provocations.
South Korean President
Moon Jae-in told Mr. Trump in
a phone conversation after the
launch that it appeared to
show new advances in Pyongyang’s capabilities, according
to the presidential Blue House
in Seoul.
Japanese Prime Minister
Shinzo Abe also spoke to Mr.
Trump by phone after the
launch. In comments to reporters, Mr. Abe called for a meeting
of the United Nations Security
Council, which has scheduled an
emergency session on Wednes-
FROM PAGE ONE
PIZZA
Continued from Page One
year when a man he happened
to know showed up to deliver
his pizza. The app had told Mr.
Gardiner that someone named
Melinda was doing the honors.
“I said, ‘Hey Melinda,’ and he
was like ‘what the f— are you
talking about?’ ”
“Ever since then, I knew everything they said, I felt, was
made up,” he says. “I was like,
‘I wonder if, when they say
they’re putting it in the oven, if
they’re actually putting it in
the oven?’ ”
After falling in love with all
manner of logistics in the internet age, Americans use their
phones to keep tabs on the
whereabouts of friends and family and to follow their Amazon
packages from warehouse to
warehouse. It’s only logical that
they feel compelled to monitor
the movements of their pizza.
Domino’s launched the
tracker online in 2008 and built
it into its app for Apple Inc.’s
operating system in 2011. The
app sports 4.8 stars out of five
in Apple’s app store, with about
480,000 ratings.
When the app gets the details wrong, however, some customers say the inaccuracies eat
at them. “The first traumatic
experience I had with the app
was over the summer,” says
Alecia Smith, 23, a graduate
student in North Carolina. The
Domino’s app gave accurate delivery times until June, she
says. Then she and her brothers
placed an order. After mapping
the store on Google, they calculated that the pizza should arrive within 20 minutes of when
the app said the driver left.
“We were watching the
tracker really vigilantly,” she
says. “We were very scientific.”
When it arrived still warm after
52 minutes, she concluded the
delivery couldn’t have left
when the app said it had.
“If you’ve taken the time to
create this technology to try
and be engaged with your customer,” she says, “can you do it
correctly at least?”
Domino’s
spokeswoman
Jenny Fouracre declines to discuss specific examples “because
without order numbers and
store numbers we can’t go back
and figure out exactly what
happened.” Drivers’ names can
get mixed up because they
sometimes swap deliveries, she
says. “We know that sometimes
people make mistakes.”
The reason the examples
“are notable is because they are
unusual,” she says. “Tracker
has worked as intended for
nearly a decade for millions
and millions of orders.”
But there are also app truthers—people convinced the
pizza tracker is fibbing. On
Twitter, users have criticized
the tracker for saying a pizza
has been delivered when it
hasn’t, is ready for pickup when
it isn’t, or shows a pizza out for
delivery for an inordinate
amount of time.
Lizzy West, a 21-year-old
University of Alabama senior,
says the tracker has told her a
The tracker gives
customers a real-time
play-by-play of their
pizza’s production.
pizza spent a long time in
“quality check” only to show up
missing extras like garlic sauce.
Rival pizza chain Papa
John’s added a pizza tracker in
March, and Pizza Hut did so in
May. Customer tweets suggest
those chains face questions
about tracker accuracy, too.
A spokesman for Pizza Hut,
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | A9
NY
WORLD NEWS
German Economy Seeks a Tech Upgrade
In collapse of coalition
talks, political friction
extends to how to
modernize nation
BY ZEKE TURNER
BERLIN—When Christian
Lindner stormed out of negotiations to form a new German government in Berlin this
month, he pointed to what he
said were 237 policy issues on
which the four parties at the
table had failed to agree after
more than a month.
The reason the exasperated
leader of the small pro-business Free Democratic Party
said he broke off coalition
talks wasn’t in the details; it
was “a lack of agreement on
how to modernize” Germany.
Mr. Lindner’s exit—which
triggered a political crisis
without precedent since the
war—highlighted a concern
about the German economy:
Many economists think it is
suffering from a modernization deficit.
The economy grew faster
last year than that of any
other country in the Group of
Seven developed economies,
and boasted €1.207 trillion
($1.4 trillion) in exports, according to the federal statistics office, behind only the
U.S. and China.
But next to those two
countries, both tech leaders,
Germany has waded slowly
and cautiously into the digital
age. Germany’s internet is relatively slow, its government
bureaucracy hasn’t fully
moved online, and the economy is dominated by manufacturing. Investment in the
country’s technology sector
and digital industries has
lagged behind.
Germans “are not the first
movers….They are not as willing to jump on any next newest thing,” said Margareta
Drzeniek, chief economist at
the World Economic Forum.
A McKinsey Global Institute study last year concluded
Germany has captured 10% of
its digital potential—the U.S.
has captured 18%—based on
an index compiled from dozens of indicators.
Executives at midsize companies
complain
about
Slow Connection
Germany's overall competitiveness outpaces its digital ranking.
Talks on Brexit
Finances Advance
IMD 2017 rankings of selected countries
More competitive overall
Singapore
1 ranking
Sweden
U.S.
Finland
Denmark
Netherlands
Hong Kong
Switzerland
U.K.
5
10
15
Austria
20
25
Germany
Overall rank: 13
Digital rank: 17
Luxembourg
Ireland
More
digitally
competitive
France
35
30
25
20
15
10
Source: IMD World Digital Competitiveness Rankings
dropped cellphone calls made
while traveling on roads
around rural headquarters. In
Berlin, startup founders often
find that privacy-protection
rules and bureaucracy can
slow the speed of doing business.
For some political leaders,
these aren’t top concerns.
Ahead of a September elec-
5
1 ranking
THE WALL STREET JOURNAL.
tion that backed Chancellor
Angela Merkel’s conservative
alliance, the most important
topics
influencing
voter
choices were education policy,
terrorism and safeguards for
the elderly, according to an
Infratest Dimap survey. Of the
1,503 people surveyed, 24%
said expanding the country’s
digital infrastructure was very
BRUSSELS—Britain and
the European Union are closing in on a financial settlement over Brexit but negotiations to reach an agreement
that EU member states can
back go on, according to people involved in the talks.
EU officials have said publicly that Monday is a firm
deadline for the British to offer concessions that can unlock progress in the talks at
the EU leaders summit in
mid-December.
—Laurence Norman
important.
When it comes to launching a startup, “the bureaucracy is really an issue. Many
things are not up-to-date,”
said Jörg von Minckwitz, the
CEO of a blockchain-based
payment startup in Berlin’s
Kreuzberg
neighborhood
called Bitwala. “Germany is
really, really slow.”
The smaller parties have
made a priority of developing
the tech sector but disagree
over whether the priority is
setting high standards to regulate companies in the digital
age or stripping away regulation so they can flourish.
In the coalition talks, Mr.
Lindner’s FDP and the Greens
agreed on the need to modernize the digital infrastructure, but while the Greens
wanted to include more consumer protection and support
for data privacy in the process, the FDP wanted to cut
bureaucracy, according to Jan
Philipp Albrecht, a lawmaker
with the Greens in the European Parliament who helped
prepare the party’s digitalpolicy positions for the talks.
“When there are these disagreements it’s a very bad
signal,” said Arturo Bris, director of the World Competitiveness Center at Switzerland’s IMD business school,
which this year ranked Germany 17th in terms of its digital competitiveness, down
from 15th in 2016. “Technological investments require
political consensus.”
BY MATINA STEVIS-GRIDNEFF
NAIROBI, Kenya—Uhuru Kenyatta was inaugurated for a
second
five-year
term
as president of East Africa’s
most important economy in a
grand ceremony, but street
battles between opposition
supporters and police overshadowed the proceedings.
About 60,000 supporters of
the Kenyan president and several heads of state attended
Tuesday’s inauguration ceremony, which followed a fourmonth period of political instability and heightened tensions
in this country of 42 million
that hosts major international
and regional businesses.
The Supreme Court annulled the result of the first
vote in August, in an unprecedented move for the continent,
on grounds of gross procedural failures. Mr. Kenyatta
won a rerun in October with a
98% of the votes, defeating his
longtime opponent, veteran
politician Raila Odinga, although an opposition boycott
meant turnout was just 38%.
Postelection violence has
left some 100 people dead
since August.
Mr. Kenyatta attempted to
strike a unifying tone in his
speech on Tuesday. “I undertake today to be the custodian
of the dreams of all and to be
the keeper of the aspirations
of those who voted for me and
those who did not. I will be
president of all,” Mr. Kenyatta
told a jubilant crowd at Nai-
robi Kasarani stadium.
His message fell on deaf
ears in opposition strongholds. In eastern Nairobi, Mr.
Odinga addressed crowds of
mostly young men before the
gathering was broken up by
police firing tear gas.
“I will be sworn in because
I am the legitimate president.
We are going to be sworn in
on Dec. 12,” Mr. Odinga said
from the rooftop of his car before being whisked away as
tear gas rained on the crowd.
Mr. Kenyatta said he would
focus on bolstering manufacturing and developing industries that add value to traditional, popular Kenyan products
like flowers, tea and coffee,
which are often exported raw
instead of being processed here.
BEN CURTIS/ASSOCIATED PRESS
Kenya Leader Starts New Term
Kenyans cheered President Uhuru Kenyatta, center on screen, at his inauguration in Nairobi on Tuesday.
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THE WALL STREET JOURNAL.
A10 | Wednesday, November 29, 2017
IN DEPTH
U.S. Will Investigate Chinese Aluminum
Trump administration
is employing a littleused authority to
combat cheap imports
WASHINGTON—The Trump
administration took new action in its emerging strategy
to ramp up trade pressure on
Beijing, dusting off a littleused authority to combat imports of inexpensive Chinese
aluminum.
Commerce Secretary Wilbur
Ross told American industry
executives on Tuesday that his
department would “self-initiate” an investigation into
whether their Chinese competitors were illegally selling certain products below cost. It is
the first time in a quarter-century that the U.S. government
has launched such a probe
that wasn't first originated by
the private sector.
The move is aimed at accelerating the process of imposing protective duties on
“dumped” foreign goods, and
VCG VIA GETTY IMAGES
BY JACOB M. SCHLESINGER
Rolls of aluminum lining the floor of a factory in Suixi, China.
saving industry costly legal
fees. It also helps to overcome
the hesitance of some firms to
take the lead in challenging
China, for fear of retribution.
A final decision on whether
to impose fresh duties on Chinese aluminum is still months
away, and would require signoff from an independent
trade panel. But administration officials emphasized the
symbolic significance of their
message.
President Donald Trump
“made a promise…that he
would vigorously enforce our
trade laws and be more enforcement-minded than our
predecessors,” Mr. Ross told
aluminum industry executives
in a phone call. “Today’s action shows that we intend to
make good on that promise.”
After Mr. Ross spoke, Heidi
Brock, president of the Aluminum Association trade group,
thanked him for being “a
strong advocate and partner
to the aluminum industry.”
A spokesman for the Chinese Embassy in Washington
didn’t respond to a request to
comment. The Chinese government has in the past rebuffed
American complaints of unfair
aluminum exports. “China’s
aluminum market is a highly
competitive and marketized
industry,” China’s Commerce
Ministry said in a statement
this year. “The so-called subsidy problem claimed by the
United States does not exist.”
The move comes with costs
and risks, including possibly
higher prices for aluminum
consumers. China might retaliate by blocking U.S. imports
into its market. It could also
file a complaint against the
U.S. at the World Trade Organization that accuses Washington of improper penalties.
“Countries have avoided
self-initiating cases due in part
to the diplomatic and geopolitical repercussions,” said Scott
Lincicome, a trade remedy lawyer at White & Case LLP. “Selfinitiation arguably takes the
importing government from
Continued from Page One
with the White House on any
issue. But behind the scenes,
the senator has formed a
strong bond with Mr. Trump’s
top trade negotiator, Robert
Lighthizer, the author of the
Nafta proposal that the Chamber of Commerce attacked earlier this month.
Mr. Brown and Mr. Lighthizer have much in common.
Both are natives of Ohio steel
towns that suffered from a
flood of foreign import competition in the past half-century.
Both are policy wonks steeped
in the detail of U.S. trade law
who believe the era of liberalization hurt U.S. workers. Both
want Mr. Trump’s trade agenda
to advance. And both are battling forces in their own parties.
Mr. Brown, 65, and Mr. Lighthizer, 70, also both like to recite a lyric from a Bob Dylan
song, “I’ll look for you in old
Honolul-a, San Francisco,
Ashtabula”—the latter being
the hometown of Mr. Lighthizer
and Sen. Brown’s wife.
Mr. Lighthizer saw the port
of Ashtabula decline through
steel imports, and U.S. Steel
shelve plans to expand in the
area. As a trade official in the
Reagan administration he
helped block steel imports from
Japan. Later he became a powerful steel industry lawyer who
made enough money to buy a
red Porsche Targa, which he
raced for years in West Virginia.
When Mr. Brown was a
young legislator from Mansfield, Ohio, he liked to hang out
at the United Steelworkers
union hall and talk to workers.
Later, he testified in trade cases
brought by Mr. Lighthizer’s
firm to shut off steel imports
that harmed Ohio mills. He
wrote a book, “Myths of Free
Trade.”
‘Ohio perspective’
“Common background, common interests, common understanding,” says Mr. Lighthizer,
who speaks in a craggy voice
similar to Sen. Brown’s, but
about an octave higher. Sen.
Brown “has an Ohio perspective
which I think I have too,” says
Mr. Lighthizer. “That’s what
president Trump has too—an
Ohio, Wisconsin, Pennsylvania,
Indiana-kind of perspective”—
he says, ticking off the Rust
Belt states Mr. Trump carried
to win the presidency.
Now President Trump is in
the middle of tense negotiations with Canada and Mexico
to rewrite Nafta, a move that
could require support from
Congress, which free-trade Republicans control.
There are few riper subjects
for Mr. Trump to win Democratic support than trade. Sen.
Brown has led anti-free trade
Democrats since Nafta in 1993,
when he rallied freshman House
Democrats to oppose the deal.
Says White House spokeswoman Natalie Strom: “President Trump is putting American workers first when it
comes to trade policy. He welcomes the support of members
of Congress that want to do the
same.”
Sen. Brown says it is his job
to make sure Mr. Trump follows through on his trade
promises and to help him get
ELAINE CROMIE FOR THE WALL STREET JOURNAL (ABOVE); SEAN KILPATRICK//THE CANADIAN PRESS/ASSOCIATED PRESS
TRADE
Sen. Sherrod Brown, top right, and the president’s trade negotiator Robert Lighthizer, bottom right.
rewritten pacts through Congress. Some doubt Mr. Trump
can count on his support, but
he disagrees.
“Of course I’ll work with
him,” says the Ohio lawmaker
who has made trade his defining issue. “No matter how discredited he is, no matter how
much his own party turns on
him, if I think I can advance
good trade policy, I will.”
A week after Mr. Trump’s
electoral victory in November,
Mr. Brown sent a letter urging
the president-elect “to overhaul
trade policy,” renegotiate Nafta
and “reset” economic relations
with China.
“GREAT LETTER,” Mr.
Trump replied on Jan 3, using
capital letters. “I WILL NEVER
LET OUR WORKERS DOWN”—
underlining the word “never.”
Mr. Brown says he spoke
with the president by phone in
February to discuss a Buy
America program, which reserves government contracting
jobs to U.S. firms. Mr. Trump
spent the bulk of the 10-minute
call recounting his election win,
Mr. Brown says. He chalks up
the conversation to what he
calls the president’s “insecurity” or “narcissism.”
Despite the personal friction,
Mr. Brown continues working
with Mr. Trump on trade. In
May he helped work out a deal
that unfroze Mr. Lighthizer’s
nomination to become U.S.
Trade Representative after
months of delay. Mr. Brown’s
Off Balance
The U.S. merchandise trade deficit is much higher with China
than with other major trading partners.
China
Mexico
Japan
Germany
South Korea
$50 billion
0
–50
–100
–150
–200
–250
–300
–350
–400
1990
’95
2000
’05
2010
’15 ’17
Note: Not including services trade deficit, not seasonally adjusted. 2017 figures through Sept.
Source: United States Census Bureau
staff said that, when the senator
tried to phone Mr. Lighthizer
with news of the confirmation,
Mr. Lighthizer was already calling him. Mr. Brown later sent to
Mr. Lighthizer the handwritten
tally of his nomination vote.
The two men speak regularly
by mobile phone. “I just call
him intermittently to say,
‘What’s going on?’ ” Mr. Brown
says. That included a call on Labor Day at around 4 p.m., when
Mr. Brown was watching a
Cleveland Indians baseball
game and Mr. Lighthizer was
working in Mexico City on
Nafta negotiations. “Keep fighting for workers,” Sen. Brown
THE WALL STREET JOURNAL.
says he urged.
Says the trade rep of his
cellphone buddy: “I talk to him
on a regular basis,” and seeks
his input on trade policy. “It’s
close.”
Mr. Lighthizer talks about
creating a “new trade coalition”
in Congress to pass deals that
include provisions which appeal
to Democrats. In the House,
Democrats like Rosa DeLauro of
Connecticut and Marcy Kaptur
of Ohio have also defended the
administration in fights with
big business over remaking
Nafta, and have prodded the
administration to carry out
pledges to battle China on
what is supposed to be an independent arbiter to being a
plaintiff, a litigant.”
Tuesday’s action comes
three weeks after Mr. Trump
met in Beijing with his counterpart, Xi Jinping. Trade tensions didn’t dominate that
summit, but Mr. Trump did
raise his displeasure with the
large U.S. trade deficit with
China. Aides signaled the administration would intensify a
long-planned strategy of
threatening Beijing with unilateral trade sanctions.
The aluminum probe is the
first such move taken since
Mr. Trump’s trip—but it has
been added to an alreadybroad portfolio of long-dormant measures officials are
considering reviving. These
cover industries ranging from
high-tech to steel and solar
panels.
The Commerce measure announced Tuesday is aimed
specifically at a product called
“common alloy aluminum
sheet,” which is used to make
gutters, downspouts, and
street signs, among other
things. The U.S. imported
$687.2 million in such metals
from China in the first nine
months of 2017, according to
the agency—up 52% from the
year-earlier period.
The Commerce Department
said it was launching the investigation due to information
it had received showing that
Chinese common alloy sheet
was being sold at “less than
normal value,” was benefiting
from improper government
subsidies, and represents a
threat to U.S. industry. It said
it currently estimated China
was “dumping” the products
at more than 50% below cost,
and expected to complete the
investigation by August.
U.S. government cases and
actions against alleged Chinese dumping and subsidies
have become increasingly
common in recent years. What
is unusual now is that the
Commerce Department—which
usually would receive industry
petitions and judge their validity—is taking on the dual
roles of launching, and assessing, the complaint.
—Bob Tita in Chicago
contributed to this article.
trade.
Although free-trade Republicans and their business allies
may not like some measures,
such as eliminating international arbitration panels that
give business a chance to appeal government actions, Mr.
Lighthizer figures they will
vote to keep international trade
flowing.
Trade deals “should be done
in a way that creates a new majority,” he says.
President Trump already can
count on support from Republican voters. According to Wall
Street Journal-NBC polls, just
31% of GOP respondents in December 1999 said free trade
deals hurt the U.S. By February
2017, when the question was
posed slightly differently, a majority of GOP voters polled said
free trade hurt the country. In
the same 2017 poll, just 16% of
Democrats looked at free trade
negatively.
For Mr. Brown, working with
the president initially seemed
like a winner politically because
his blue-collar supporters like
the way the president talked on
trade. At an April meeting in
Toledo at a union hall, Bruce
Baumhower, president of
United Auto Workers Local 12,
egged him on to support the
president. “I was teasing him at
one point [that] Trump finally
got you to understand trade a
little bit better,” he told the
crowd.
By the summer, some local
liberal activists urged him to
fight the president no matter
what. “Sen. Brown should draw
a very hard line and absolutely
refuse to support this man,”
said Suzy Scullin, co-chair of
Indivisible CLE, the Cleveland
wing of the national activist
group formed with the mission
of resisting Mr. Trump on all issues.
Mr. Brown says he isn’t worried; he figures the left will
rally to his side. “They’re going
to think I have sold them out?”
he asks. “Hardly. I have a reputation with the progressive
base that goes deeper than
that.”
Since he came to Congress
as a House member in 1993, Mr.
Brown has led fights against
nearly every major trade bill,
including pacts with Mexico,
Central America, Colombia,
China and South Korea. He has
lost almost all the legislative
battles, but has helped make
free trade toxic for congressional Democrats by portraying it
as unfair to U.S. workers who
must compete with developing
nations and their low wages.
In the 1993 vote, 102 House
Democrats backed Nafta.
Twenty-two years later, just 28
voted to give a Democratic
president, Barack Obama, more
power to negotiate the TransPacific Partnership.
Nafta became so unpopular
in Congress that a Republican
U.S. trade representative insisted that the acronym for a
trade deal with Korea in 2007
shouldn’t rhyme with Nafta,
says a former senior negotiator.
Negotiators settled on Korus—
Korea-U.S. Free Trade Agreement.
Biggest obstacle
Trade analysts attribute the
change in attitudes among
Democrats and Republicans to
their support for or opposition
to Mr. Trump.
Institutions in Washington
that have spent decades advancing open markets are wary
of an alliance between Mr.
Trump and Democrats who oppose free trade. “If we move in
that direction, that would undermine confidence in America’s economic leadership in the
world and undermine the president’s efforts to create jobs and
promote exports,” says Myron
Brilliant, the U.S. Chamber of
Commerce’s executive vice
president.
Politically, the biggest obstacle to a realignment on trade is
the Republican congressional
leadership. Senate Majority
Leader Mitch McConnell and
House Speaker Paul Ryan are
both staunch free traders. The
White House itself has free
trade factions, such as at the
National Economic Council.
Any new trade deal needs
congressional approval, including a rewritten Nafta—although
a 2015 law gives the president
leverage, allowing him to submit trade pacts for a straight
up-or-down vote, without
amendments.
“There’s almost no margin of
error” when it comes to passing trade legislation, Mr. Lighthizer said in June Senate testimony. He has made other
overtures to Democrats, including retaining the Obama USTR’s
general counsel, Timothy Reif,
as a senior adviser.
Sen. Brown has made himself the party’s Senate expert
on trade and other Democrats
turn to for advice on such issues. His staff has the ability to
maneuver through the thicket
of policy and process questions
involved in trade law.
But some Republican trade
veterans warn that Sen. Brown
and his allies can’t be counted
on to back any deal that Mr.
Trump supports, especially as
next year’s congressional elections draw closer. Mr. Brown is
up for re-election.
“Democrats have to win back
blue-collar voters in Northern
and Midwestern industrial
states,” says Warren Maruyama, USTR general counsel under George W. Bush. “One way
to do that is to show that whatever Trump comes up with isn’t
good enough.”
More moderate
In some ways, Mr. Brown is
more moderate in his position
on Nafta than President Trump,
who regularly threatens to
scrap the agreement altogether.
Mr. Brown argues that a hasty
withdrawal could disrupt trade
flows in North America and
hurt Ohio auto makers and
farmers dependent on exports
to Mexico.
In the Nafta negotiations,
Mr. Lighthizer is pushing several proposals to Mr. Brown’s
liking. One would let the U.S.
withdraw from international arbitration panels. Another, on
“rules of origin,” would require
that autos eligible for Nafta
zero-tariff treatment be made
with a certain percentage of
U.S.-made components.
Businesses are resisting the
arbitration panel and U.S.-content proposals. Rufus Yerxa,
head of the big business National Foreign Trade Coalition,
says it won’t be easy for Mr.
Lighthizer to cut a deal that
will pass muster with Mexico
and Canada and please Mr.
Trump.
“He has almost a Houdini act
to accomplish,” he says.
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THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | A10A
NY
* *
GREATER NEW YORK
Building Boom Hits Staten Island
A wave of North Shore
developments are in the
works as prices rise
throughout the city
BY JIM CALLAGHAN
BY THOMAS MACMILLAN
CAITLIN OCHS FOR THE WALL STREET JOURNAL (2)
A landmark waterfront
mansion in Staten Island, built
by an influential New York developer in 1835 and abandoned
for 17 years, is being refurbished for use as a restaurant
and banquet hall to be opened
this year.
The new owners, lawyer Kecia Weaver and her husband
Devone Henry, a financial analyst, see their investment as
part of the revitalization of
the borough’s North Shore.
“When we looked at it, the
one word that came to mind
was eyesore,” Ms. Weaver
said, noting how years of neglect had damaged the roof,
Corinthian-style columns and
front porch.
But the property, called Pavilion on the Terrace in the
New Brighton neighborhood,
has a big selling point: It is
within walking distance of the
Staten Island Ferry Terminal,
where commuters can catch a
25-minute ride across New
York Harbor to downtown
Manhattan.
With spectacular views of
New York Harbor, the Statue
of Liberty and the Manhattan
skyline, the area includes the
St. George, Tompkinsville, Stapleton, and New Brighton
neighborhoods. Civil War-era
Victorian homes, fringe treelined streets, but waterfront
development has sputtered
over the years, leaving patches
of undeveloped land or aging
apartment buildings.
As real-estate prices ratchet
higher across the city, developers are paying more attention to transit-friendly fixerupper neighborhoods such as
those along the North Shore,
which is undergoing a major
transformation.
Sprouting up next to the St.
George ferry terminal are
three projects, being built by
BFC Partners, Triangle Equities and the New York Wheel,
which is erecting a 630-foot
tall Ferris wheel, stalled by le-
Suspect
Arraigned
In Terror
Attack
A view of Manhattan from St. Marks Place on the North Shore of Staten Island. Below, the Pavilion on the Terrace on the Island’s
New Brighton neighborhood is being refurbished for use as a restaurant and banquet hall after sitting vacant for 17 years.
gal disputes.
Bolstering the developers’
optimism is a burst of other
residential and commercial
real-estate activity in the area.
In New Brighton, less than a
mile from the Pavilion, builders recently sold out 20 twofamily homes with prices
starting at $635,000.
“People have finally discovered Staten Island,” said
Henry Salmon, chief appraiser
for Equity Valuation Associates, whose family has been in
the real-estate business on the
Island for 60 years.
Since 2012, residential and
commercial prices have risen
an average of 30% on the
North Shore, said James Prendamano, managing director of
Casandra Properties, a Staten
Island real-estate firm.
“There are investors with
cash willing to take a chance
on the North Shore,” Mr. Prendamano said. The average
price of a buildable lot is $80
Bouncing Back
Median home values
in Staten Island*
$500,000
400,000
300,000
200,000
100,000
0
2010
’12
’14
’16
*Includes co-ops and condos
Source: Zillow
THE WALL STREET JOURNAL.
a square foot, compared with
more than $400 in other parts
of New York City, he said.
Changes to the tax code under consideration in Washington, however, could put a chill
on home sales in pricey
coastal markets such as New
York City, warned real-estate
agents and economists.
The House tax bill, which
recently passed, would cap the
amount of mortgage interest
that can be deducted at
$500,000, down from $1 million, affecting demand and
prices for properties in the
high six figures.
In September, the owner of
a former diner with three
Please see ISLAND page A10B
The man accused of killing
eight people in a Halloween
terrorist attack in lower Manhattan pleaded not guilty
Tuesday in federal court.
During a brief hearing, defense attorney David Patton
entered the plea on behalf of
his 29-year-old client, Sayfullo
Saipov.
Mr. Saipov appeared in Manhattan federal court with a long
dark beard, wearing a navy Tshirt, gray pants and leg
chains. A native of Uzbekistan,
he spoke only one word, saying
“yes” when Judge Vernon
Broderick asked if he could understand an Uzbek interpreter.
Eight people died and 12
were injured on Oct. 31 when
Mr. Saipov allegedly drove a
rented flatbed Home Depot
truck into pedestrians and cyclists on a esplanade along the
Hudson River. It was the deadliest attack in New York City
since the Sept. 11, 2001, terrorist attack on the World Trade
Center, a few blocks south.
Mr. Saipov faces 22 counts,
including murder, attempted
murder, and providing material
support to a foreign terrorist organization. Nine of the charges
carry the possibility of a death
sentence, but the government
hasn’t indicated whether it will
seek the death penalty.
Prosecutors say Mr. Saipov
drove the truck into Manhattan
from New Jersey in a preplanned attack. He plowed the
vehicle into a pedestrian path
and bike lane along the West
Side Highway and headed south
for several blocks, striking numerous people until he collided
with an occupied school bus,
according to an indictment.
Mr. Saipov then exited the
truck brandishing a paintball
gun and a pellet gun, shouting
“God is great” in Arabic before
he was shot by a police officer
and arrested, prosecutors said.
Hospital Settles Over Iran Video of U.S. Student Raises Concerns
Bills for Rape Exams
BY ZOLAN KANNO-YOUNGS
The Brooklyn Hospital Center illegally charged dozens of
patients for sexual-assault evidence kits, New York Attorney
General Eric Schneiderman
said Tuesday.
The hospital billed patients
or their health insurers for 85
out of 86 forensic-rape examinations—better known as rape
kits—it conducted from January 2015 to February 2017
without disclosing the exam is
available without charge, Mr.
Schneiderman said.
“This is a systems breakdown,” Mr. Schneiderman said.
“This is not a matter of one or
two rogue employees.”
A spokesman for the hospital didn’t return requests for
comment. The Brooklyn hospital neither admits nor denies
wrongdoing in a settlement
with the attorney general.
State law requires that hospital employees inform patients they don’t have to pay
for the exams. The hospitals
are directed to bill the state’s
Office of Victim Services or, if
the patient wishes, their pri-
vate health-insurance provider.
The investigation began in
January 2017, when the attorney general received a complaint about a woman who had
been billed seven times for a
rape kit conducted at the
Brooklyn Hospital Center in
2015, according to the settlement. After billing her multiple
times, the hospital referred her
case to a debt-collection
agency, Mr. Schneiderman said.
A total of 37 patients were
personally charged more than
$15,500 for the exams, according to the settlement.
“It’s retraumatizing to have
bills arriving in the mail asking
you to pay for what is basically
collection of evidence of a
crime scene,” said Sonia Ossorio, president of the New York
chapter of the National Organization for Women.
As part of the settlement,
the hospital reimbursed the
patients who paid for the exams, and also must pay a
$15,000 fine.
Mr. Schneiderman said his
office has requested billing
data from other hospitals to see
if the problem is widespread.
Iranian state television has
released a video about an
American doctoral student imprisoned for more than a year
on spying charges, raising concerns that his case is being
used to pressure U.S. officials
amid escalating tensions between the two countries.
Xiyue Wang, a naturalized
American and graduate student at Princeton University,
was arrested in Tehran in August 2016 and recently lost his
appeal of a 10-year prison sentence. On Saturday, a state
television station published a
video accusing Mr. Wang of
working with the U.S. government to spy on Iran.
In the video, an Iranian
television reporter said Mr.
Wang used his doctoral research as a cover for spying
on Iran and alleged that he
was operating at the behest of
the U.S. government as well as
Princeton University and Harvard University, where he
completed his master’s degree.
Mr. Wang appeared in the
video being interviewed about
his studies. “The more knowledge that the United States pos-
HUA QU
BY KATE KING
Princeton University student Xiyue Wang, pictured with his family, is being held prisoner in Iran.
sess about Iran the better for
its policy towards Iran,” he said.
Mr. Wang’s wife, Hua Qu,
said her husband wasn’t involved in spying or political
activities and that the video
misconstrued academic research as espionage. She said
she believes the video is intended to pressure U.S. officials ahead of a December
deadline for Congress to reimpose sanctions on Iran.
“My husband is just an innocent student,” Ms. Qu said.
In October, President Don-
ald Trump called Iran a “rogue
regime” and declined to certify that the country was complying with the 2015 international nuclear agreement. The
decision triggered a process
for Congress to decide
whether to reimpose sanctions
on Iran within 60 days.
A spokeswoman for the U.S.
State Department said Mr.
Wang has no association with
the U.S. government and
hasn’t given them any information about Iran. She called
on Iran to immediately release
Mr. Wang and all “unjustly detained prisoners.”
“We strongly condemn
Iran’s subjecting Mr. Wang and
other prisoners to these
forced video appearances,” the
spokeswoman said in an email.
A spokesman for Princeton
University said Mr. Wang “has
no connection to any government or intelligence agencies,
and the charge that he was engaged in espionage is completely false.”
—Aresu Eqbali
contributed to this article.
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A10B | Wednesday, November 29, 2017
NY
* ***
THE WALL STREET JOURNAL.
GREATER NEW YORK
Tower Overhaul Plan Hits a Snag
A planned $300 million overhaul of a Midtown Manhattan
office tower designed by star architects Philip Johnson and
John Burgee suffered a possible
setback Tuesday when the New
York City Landmarks Preservation Commission voted to consider the building for landmark
status.
The commission now will begin the formal designation process for 550 Madison Ave., a 41story office building completed
in 1984 to serve as the headquarters of AT&T Inc. It later
housed the offices of Sony Corp.
After a review and public
hearing, the commission will decide whether the building,
which is now vacant, merits a
landmark designation.
The move comes about a
month after the tower’s owner,
Olayan America, and its development partner unveiled renovation plans that included the
replacement of the lower part
of the building’s granite facade
with glass. The redesign
sparked criticism from preservationists and historians of architecture and art who say the
proposal runs contrary to the
original intent of the building’s
designers and would deface an
important postmodern tower.
In an interview, Mr. Burgee,
now retired in Santa Barbara,
Calif., called the redesign a
“disfigurement.” Mr. Johnson
died in 2005.
An online petition against the
makeover has drawn more than
2,000 signatures, said filmmaker
Nathan Eddy, who started the
petition and is working on a film
about Mr. Johnson. Mr. Eddy or-
ASSOCIATED PRESS
BY KEIKO MORRIS
Architect Philip Johnson is shown in 1978 with a model of the
office tower whose planned makeover has sparked criticism.
ganized a protest outside the
tower on Nov. 3 that drew the
support of noted architect, author and former dean of the Yale
School of Architecture Robert
A.M. Stern, who described the
building as a “masterpiece of
the period.”
Despite preservationists’
hopes that a landmark designation would prevent the
tower’s owner from making
the facade changes, David Laurie, managing director at
Chelsfield America, Olayan’s
development partner, said the
team supports the commission’s decision to consider the
possible landmark designation.
Mr. Laurie also noted that
the project’s goals are part of
the city’s broader push to revitalize East Midtown. This year,
the city approved a rezoning of
the area, hoping to spur 13.4
million square feet of new and
redeveloped office space. The
upgrades to 550 Madison Ave.
would enable the team to attract upscale office tenants to
the vacant building and bring
more than 3,000 jobs to the
area, Mr. Laurie has said.
Olayan America, the U.S. investment arm of private Saudi
Arabian conglomerate Olayan
Group, acquired the 850,000square-foot building for $1.4
billion from the Chetrit Group
in 2016.
Members of the team overseeing the redesign view the
base of the building as heavy
and problematic in the way it
meets the sidewalk. In October,
Craig Dykers, a founding partner at Snøhetta, described the
building at ground level as “inward-looking,” emphasizing the
team’s goal of creating “lightness and interaction with New
York City streets.”
But Thomas Collins, a preservation advocate and art historian who sent letters requesting
the commission consider landmarking both the building’s
lobby interior and its exterior
structure, noted that the tower
has features that interact with
the city’s streetscape, such as a
columned arcade that had been
open to the public for about a
decade but later was filled in
with retail space.
Replacing the granite facade
at the base with glass would destroy the building’s identity, Mr.
Burgee said. “Once you strip all
that off and put in this glass
they are proposing, it’s lost, it’s
gone,” he said. “I would rather
see the building torn down than
see this disfigurement.”
GREATER NEW YORK WATCH
POLITICS
The New York state Senate’s
long-warring Democratic factions
on Tuesday agreed to reunite,
bringing the party a step closer
to wresting back full control of
the state legislature.
Republicans have had control
of the Senate despite a numerical
minority, thanks to an alliance
with nine rogue Democrats. The
other 22 Democrats have been
the minority conference.
On Tuesday, the dissident
Democrats said they would agree
to terms laid out by the New
York state Democratic Party to
return to the fold after facing the
threat of challenges from the
party in primaries.
“I look forward to implementing
the terms that have been outlined,” said Bronx Sen. Jeff Klein,
the leader of the rogue Democrats.
A Democratic majority still
hinges on the party winning coming special elections for two Senate vacancies.
—Mike Vilensky
BYRON SMITH FOR THE WALL STREET JOURNAL
Dissident Democrats
In Senate to Return
Queens fourth-graders brushed up on their oral health at a Colgate Bright Smiles, Bright Futures
event for more than 400 schoolchildren at the Greater New York Dental Meeting in Manhattan.
WESTERN NEW YORK
Grand Jury to Weigh
Fatal Shooting Case
Authorities say a grand jury
will decide whether to bring
criminal charges against a western New York hunter who shot
and killed a neighbor he mistook
for a deer.
Mourners, meantime, are
saying their final goodbyes to a
woman described by her husband as an angel.
The Chautauqua County sheriff’s office said Rosemary
Billquist was killed Thanksgiving
eve while walking her dogs behind her home after sunset,
when hunting is illegal.
District Attorney Patrick
Swanson said Tuesday his office
will ask a grand jury to consider
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Continued from page A10A
storefronts sold his property
in St. George to a Chinese
company for $6.1 million. Two
years ago, he said, he was asking $4.8 million but couldn’t
get it.
There is a continuing debate among builders and realtors about whether the high
prices are here to stay or represent a bubble that will burst.
Triangle has signed Westin,
which is proposing a 13 story,
175 room hotel adjacent to the
ferry terminal. The site will
have 115 residential units, as
well as office and retail space.
The first of the residential
tenants are expected in April
2018.
BFC Partners is building
Empire Outlets NYC on cityowned land facing the ferry
terminal, which will consist of
100 outlet stores, 70% of
which have signed leases, according to Joseph Ferrara, a
principal of BFC. The proposed
opening is next fall. BFC also
is constructing a hotel and a
1,250 parking garage.
James Patchett, president
and CEO of the New York City
Economic Development Corp.,
which is spearheading the
project, said Staten Island is
becoming an attractive destination. He compared the borough of about 500,000 residents with Brooklyn 15 years
ago.
“There was no Brooklyn
Bridge Park then,” he noted.
“Now, it’s a mammoth draw.”
Ettore Mazzei, owner of
charges of criminally negligent
homicide or reckless conduct
that resulted in Ms. Billquist’s
death. Either could result in
prison for the 34-year-old
hunter, Thomas Jadlowski.
Mr. Jadlowski couldn’t be
reached for comment Tuesday.
Ms. Billquist’s funeral is
scheduled for Wednesday, following a wake Tuesday.
—Associated Press
EPS Contracting, who renovated the 1876 circa Edgewater Hall in Staten Island’s Stapleton neighborhood in 1998
for use as a banquet hall and
restaurant and is the contractor for the Pavilion, said he is
seeing a lot of young people
who were priced out of neighborhoods such as Williamsburg in Brooklyn moving to
the Island.
“They want to be in the
ground floor of a happening
place,” Mr. Mazzei said.
Joseph Carroll, district
manager of Community Planning Board 1, said changes are
everywhere on the North
$80
Average price per square foot of
a buildable lot on the North Shore.
Shore. “We’ve had 10 new art
spaces open in the past two
years,” he noted.
George Christo, owner of
Door to Door Realty, is proposing a third St. George hotel, with a 75-seat theater, as
well as rooftop space and gardens open to the public on the
site of a former convent.
His vision is that years
from now, visitors will say to
their friends,
“Hey, we spent three days
in this cool place called Staten
Island and had no time to do
everything.”
—Laura Kusisto
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.
ERIC PALMA
LIFE&ARTS
Wednesday, November 29, 2017 | A11
WORK & FAMILY | By Sue Shellenbarger
The Invisible Walls at Work
Collaboration by employees across different departments is essential but seldom easy
MORE COMPANIES are asking
employees from different departments to collaborate on projects.
But dragging people out of their
silos isn’t easy.
How do you get aggressive, fasttalking salespeople to cooperate
with reserved, detail-oriented engineers? Or intuitive creative
types to sync with budget-minded
planners?
Playing well with others is essential to advancing one’s career,
but often requires new skills. Collaborators must adapt to others’
ways of working, cede the spotlight to the team rather than hogging it, and speak up when they
disagree with colleagues—even
when they’re afraid of angering
others or looking stupid.
For companies, having employees
labor in isolation can be costly. Silos
have been blamed for past setbacks
at Microsoft, Sony Corp. and Swiss
financial giant UBS AG. Research by
anthropologist Elizabeth Briody,
founder of Cultural Keys, a Troy,
Mich., consulting firm, has found silos can prevent companies from
providing good service or making
products customers say they want.
Employers in most industries
are trying to foster employee collaboration across departments to
help them react more rapidly to
changes in their markets, says
Kevin Martin, chief research officer at the Institute for Corporate
Productivity, a Seattle human-capital research firm. Teaming employ-
ees with diverse backgrounds also
tends to produce better ideas and
decisions, he says. But a 2017
study of 1,100 employers found
only about one in four uses incentives to motivate workers to collaborate well, Mr. Martin says.
Employees at the Starr Conspiracy, a Fort Worth, Texas, ad
agency, have been collaborating
closely on projects for four years.
Walk by a glass-walled conference
room there, says chief executive
Bret Starr, and “you’ll see people
you’d never see sitting together at
Starbucks”— artists, marketers,
data analysts and engineers.
Starr brought in a consultant
who trained managers to create
self-directed employee teams responsible for coordinating their
own work on client projects.
Teams meet face-to-face with
managers daily to give status reports and ask for help or support.
In the past, individual employees
were interrupted many times a day
by different managers with questions about various projects, including some they weren’t prepared to discuss at the time,
giving rise to stress and delays.
The consultant also trained
Starr’s 65 employees to understand
each other’s communication and
learning styles. But it isn’t easy.
The agency’s top sales executive,
Mark Mitchell, “is the fastest talker.
He will get out everything you need
to know in 60 seconds—but nobody
can process everything you need to
know in 60 seconds,” says Jonathan
Goodman, head of Starr’s strategy
and consulting group.
When Mr. Mitchell, an agency
partner and co-owner, was asked to
listen and answer colleagues’ questions rather than leading off meetings with presentations, “I literally
had to sit on my hands and take
sips of water to keep myself from
talking,” he says. “I’d just as soon
have my fingernails peeled back.”
A hard truth of
collaboration: No team
can move faster than the
slowest member.
Engineer Michael Mercer is
slower to speak. When listening in
meetings, “I like to dwell on” what
is being said and digest it, says
Mr. Mercer, the agency’s director
of web technology. He then doodles or draws to frame what he
has learned. Mr. Goodman says Mr.
Mercer appears inscrutable. “I
couldn’t pretend to know the
things Michael is thinking about”
as he listens silently in meetings,
he says. Mr. Mercer says it’s all
good: He prefers working on a diverse team to “being locked in a
room doing one task.”
There’s no hiding one’s foibles.
Jonathan Irwin, an art director,
“has a brilliant mind but he can’t
spell,” Mr. Goodman says. Colleagues ask him to copy and paste
others’ edited text into his designs.
Mr. Irwin admits spelling isn’t his
forte. “I think phonetically and people laugh,” he says, but he doesn’t
let it bother him. When “I get to a
word I can’t spell” when writing on
a whiteboard in a meeting, he says,
“I just scribble so it’s illegible.”
A hard truth about collaboration is that no team can move
faster than the slowest member.
Nancy Crabb, also an art director,
says she works best with a deadline, “but for other people, deadlines really stress them out.”
Stretching work over several days
to accommodate others takes patience, she says.
Still, Starr employees say their
projects and designs have grown
more innovative and broader in
scope thanks in part to better cooperation. Ms. Crabb says, “Working across so many disciplines at
once, we’re able to tackle problems that I never would have
tried” in the past.
The learning curve on successful collaboration often is steep.
Employees have to set aside the
desire to be the person who is
right in every discussion, and focus on helping the team find the
right answer, says Mike Steib, author of “The Career Manifesto,” a
coming book sparked by a blog he
wrote as an executive at Alphabet
Inc.’s Google. They also must stop
worrying about angering others
and “engage in the productive conflict, the listening and debating,
that help you get to the right answer,” says Mr. Steib, CEO of New
York technology and media concern XO Group Inc.
Two senior XO Group executives, Dhanusha Sivajee and Brent
Tworetzky, disagree openly in
front of members of their teams—
and encourage employees to do
the same. One high-profile battle
took place this year before about
20 employees from both of their
teams.
At issue were plans by XO’s The
Knot wedding-planning site to relaunch the site and a new version
of its wedding-planning app.
Ms. Sivajee, executive vice president, marketing and editorial,
wanted to launch the app with a
splash and promote four or five
new features.
Mr. Tworetzky, an engineer and
executive vice president, product,
hedged at committing to more
than two new features, saying, “I’d
rather build fewer things of higher
quality,” he says. “It was a great
debate.”
They compromised by launching
the app with two new features—a
personalized planning timeline and
a style quiz—and agreed on priorities for adding more features. The
app rolled out on schedule, earlier
this month, and XO Group says
downloads are running about 30%
higher than the previous year.
2018 GRAMMY AWARDS
NOMINATIONS NOD TO HIP-HOP AND R&B’S CLOUT
GETTY IMAGES (2)
BY NEIL SHAH
Rapper Cardi B is among the nominees.
AFTER YEARS OF CRITICISM of its treatment of hip-hop and R&B stars and younger
artists, the Grammy Awards have gotten the
message.
Four of the five nominees for Album of
the Year at the 60th annual Grammy
Awards—Compton rapper Kendrick Lamar,
hip-hop elder statesman Jay-Z, rapper and
singer Childish Gambino and Hawaiian-born
pop singer Bruno Mars, whose music incorporates R&B—are hip-hop or R&B-related
acts. The fifth nominee is New Zealand alternative-pop singer Lorde.
Perhaps the biggest surprise is that one
of Mr. Lamar’s likely opponents for Album
of the Year—British pop singer Ed
Sheeran—wasn’t nominated for the category, despite Mr. Sheeran’s album being a
blockbuster. A nomination for Mr. Sheeran
would have repeated a pattern seen in recent years where a leading hip-hop/R&B artist goes head-to-head with a pop or rock
performer. Last year, for example, Beyoncé’s
“Lemonade” lost Album of the Year to
Adele’s “25.”
The artists carrying the most nominations
this year are all hip-hop/R&B acts or up-andcoming performers: Jay-Z leads the pack
with eight nominations, followed by Mr. Lamar (7), Bruno Mars (6), veteran rap producer No I.D. (5) and younger R&B acts
Childish Gambino (5), SZA (5) and Khalid (5).
Within the hip-hop/R&B award categories,
it isn’t all just the same few names—Drake,
Kanye West, Beyoncé. This year, there’s
more of a mix, including female rapper
Cardi B, Atlanta rap trio Migos, rapper Tyler, The Creator and R&B singers Kehlani
and Daniel Caesar, garnering nominations.
“Frankly, it’s a good reflection of what’s
happening in music, not only in America,
but around the world,” says Neil Portnow,
president of the Recording Academy, the
music organization that oversees the
Grammy Awards. “The influence of hip-hop
and urban [music] is growing.”
Hip-hop and R&B dominated the music
business and broader culture this year: In
July, R&B/hip-hop passed rock for the first
time to officially become America’s biggest
music genre, according to Nielsen Music,
which tracks online streams and digital and
physical album sales.
The most-streamed songs on Spotify, ApPlease see GRAMMYS page A13
Artist Childish Gambino at a 2015 event.
THE WALL STREET JOURNAL.
A12 | Wednesday, November 29, 2017
LIFE & ARTS
MY RIDE | By A.J. Baime
A Silver Streak of a Ferrari
it is lighter and faster than the street car.
It is not street legal, however, so I tow it
behind a Ford Excursion to track days. Most
are held through the Ferrari Club of America.
(I am the director of the New England
chapter.) But people show up in all
kinds of machinery—Porsches,
BMWs. We gather at tracks like
Lime Rock in Connecticut, Watkins Glen in upstate New York,
or sometimes in the southeast.
For longer hauls, I have the
Ferrari shipped and I buy a
plane ticket.
The car is a cream puff. It
makes you look like you are a genius because it is so easy to drive
fast. Ferraris are famous for their engine
song, and this car’s 3.6-liter V-8 has none of
the noise-dampening that you find in streetlegal cars, so it is especially distinctive.
Part of the fun comes after the driving.
At track events, you find people like me who
can talk cars all day long. Mostly we talk
about lap times. We are all friends, but of
course, we all want to be the fastest.
Suzy Hiniker, inset, and her 2000 Ferrari 360
Challenge, at a Ferrari dealership in Norwood,
Mass. The car’s 3.6-liter V-8 engine, top right.
Its interior, right, and huge spoiler, below.
BOB O’CONNOR FOR THE WALL STREET JOURNAL
Suzy Hiniker, 53, a partner in an IT company outside Boston, on her 2000 Ferrari
360 Challenge, as told to A.J. Baime.
Thirteen years ago, I had a eureka moment. Some friends invited me to a
track day at New Hampshire Motor
Speedway. I showed up in my
Maserati street car and got bit
by the bug. As much fun as it
is to drive a street car on a
track, it is way more fun to
drive a race car. Some of my
friends had Ferrari Challenge
cars. Eleven years ago, I bought
the one you see pictured here.
A Ferrari Challenge car is a race
car created for a racing series called
Ferrari Challenge, featured in North America,
Europe and Asia. The race car is based on a
Ferrari street car. In 2000, the Challenge car
was based on the Ferrari 360, and it was
built at the Ferrari factory in Maranello, Italy.
Unlike the street car, this vehicle has no
AC, no heat, no electric windows or locks,
and no real dashboard. It has an instrument
cluster on an LCD display so you can see all
the engine data in one place. It also has a
roll cage for safety, a fire-suppression system, two race seats and five-point harnesses
in place of the regular seat belts. In essence,
Contact A.J. Baime at
Facebook.com/ajbaime.
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THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | A13
LIFE & ARTS
SIGHTINGS | By Terry Teachout
Memoirs of a Movie Man
ANYONE CAN WRITE an autobiography, and it sometimes seems
that most people do. But the ability
to write an autobiography with
bona fide literary merit—one that
can be read for aesthetic pleasure
alone—is usually limited to professional writers.
Miracles do happen, though, and
anyone who’s had the pleasure of
reading (to cite two of my favorite
examples) Ulysses S. Grant’s “Personal Memoirs” and Alec Guinness’s “Blessings in Disguise”
knows that you needn’t be a pro to
write stylishly. “A Life in Movies”
(1986) and “Million-Dollar Movie”
(1992), Michael Powell’s reminiscences of his young years and later
life as a British film director, prove
the same point. Almost entirely unknown in this country, these two
books were recently drawn to my
attention by a film critic. (While
both are out of print, used copies
are easy to obtain.) Taken together,
they constitute what just might be
the best autobiography ever published by a working artist of significance who wasn’t a wordsmith by
trade. What makes them so impressive—and enjoyable—is that they
are written with colossal gusto, a
zest for living that Powell managed
to get onto the printed page with
the vividness and precision that
you’d expect from a veteran novelist, not an aging director.
Don’t be embarrassed if Powell’s
name is unfamiliar to you. “The
Life and Death of Colonel Blimp”
(1943), “I Know Where I’m Going!”
(1945), “Black Narcissus” (1947)
and “The Red Shoes” (1948), the
films for which he is best known,
didn’t attract wide attention when
they were originally released in the
U.S., and for many years they were
unavailable for screening. It was
only when the Criterion Collection
brought them out on home video
that Powell and his professional
partner, the screenwriter Emeric
Pressburger, came to be widely regarded as filmmakers of the first
rank, a judgment shared in high
CLOCKWISE FROM TOP LEFT: ALAMY; EVERETT COLLECTION (2)
Director Michael Powell’s well-told, too-little-known life
Clockwise from left: Michael Powell
at work, and scenes from ‘The Red
Shoes’ and ‘Black Narcissus.’
places. (“Colonel Blimp,”
for instance, is David
Mamet’s favorite movie.)
Even now, Powell and
Pressburger are not nearly
so well known as their Hollywood-based contemporaries, in particular Alfred
Hitchcock, who did not become a household name
until he immigrated to the
U.S. in 1940. Powell, by
contrast, never wanted to
work in Hollywood, for he
saw himself as a wholly
English artist and coveted
his creative independence.
“My art was a proud art, and I still
believe in the art of the impossible,” he wrote in “Million-Dollar
Movie.” So he steered clear of Hollywood, ran out of money, and
made no feature films between
1969 and his death in 1990.
It is, to be sure, a sad story, but
there is nothing remotely sad about
“A Life in Movies” and “Million-
Dollar Movie,” in which Powell recounts his tales of triumph and disaster in the manner of a man who
embraced the whole of life, good
and bad alike, with unquenchable
enthusiasm. In that respect these
volumes bring to mind Hector Berlioz’s “Memoirs,” which is playing a
very high card, there being no finer
autobiography by an artist in any
FROM TOP: ASSOCIATED PRESS; GETTY IMAGES
Kendrick Lamar is a nominee
for Album of the Year, an
award that has eluded him.
GRAMMYS
Continued from page A11
ple Music and other on-demand audio services, which
have become the most popular way fans listen to music,
are hip-hop and R&B.
The latest crop of nominees also reflects the diversifying of the Recording
Academy’s pool of 13,000
voting members, Mr. Portnow says. “We’ve been, for a
long time, doing a lot of
outreach to a variety of
communities so that they
would be more involved,
more engaged—and not just
in terms of genre, but age,”
he says. “I think that’s a
large part of what you’re
seeing this year, coming to
fruition.”
This year, for example, a
new rap nominations review
committee was assembled to
examine the voting pool’s
rap-related nominations and
add an extra layer of judgment, one of 13 such committees.
The big question this year
is whether Mr. Lamar, one of
pop music’s most widely-admired artists, will win Album of the Year—the top
prize—for his album
“DAMN.” He has lost two
times before. (Despite previously winning seven awards,
Mr. Lamar has never won
one of the four major
awards—Album of the Year,
Record of the Year, Song of
the Year and Best New Artist.)
Mr. Lamar will compete
with Lorde’s critically-acclaimed “Melodrama” and
Jay-Z’s “4:44,” whose mature themes are seen as
blazing a trail for older rappers.
On Metacritic, a website
that aggregates reviews,
“DAMN.” is 2017’s top-rated
album, with Lorde’s “Melo-
drama” at No. 3; Jay-Z’s
“4:44” comes in at No. 99.
Nominees for Record of
the Year—which recognizes
the best performance of a
song—include Childish
Gambino’s funk-influenced
hit “Redbone,” Luis Fonsi
and Daddy Yankee’s global
smash “Despacito,” featuring
Justin Bieber, Jay-Z’s “The
Story of O.J.,” Mr. Lamar’s
“HUMBLE.” and Bruno
Mars’s “24K Magic.”
This year’s “Best New
Artist” nominees are Alessia
Cara, a young pop-R&B
singer known for her hit singles “Here” and “Scars to
Your Beautiful”; R&B singer
Khalid, a mainstay for
months on the upper ranks
of the Billboard 200 album
chart thanks to his powerful
streaming numbers; young
Philadelphia rapper Lil Uzi
Vert; songwriter Julia Michaels; and female R&B
singer SZA, part of the
genre’s ongoing renaissance.
Nominees for the 84
Grammy Award categories
are drawn from roughly
22,000 submissions. The
Grammys telecast will take
place on Jan. 28, 2018, at
New York’s Madison Square
Garden, with James Corden
returning as host. This is
the first time the Grammys
have been in New York since
2003. In 2019, the event returns to Los Angeles.
Luis Fonsi performs in Mexico City.
genre than the reminiscences of the composer of
the “Symphonie Fantastique.” Moreover, Berlioz
had the advantage of having worked as a professional writer—he made his
living as a music critic—
whereas Powell was an amateur of the pen. Yet he
wrote like a professional,
with the indispensable
knack of being able to compress the meaning of experience into a memorable
sentence or two: “A great
actor is a conscious humorist. A show-off. He must have a
taste for the bizarre, the unusual.
He must savor the abnormal, else
how can he portray the normal?”
Above all, he was a superb literary portraitist, capable of portraying his real-life “characters” so
evocatively that they explode into
life on the printed page, as he does
in this thumbnail sketch of Robert
De Niro: “He had fine features, but
he wasn’t beautiful. He had fine
eyes, but they didn’t seem to be
looking at anything in particular. He
could change color and shape, just
like a chameleon, and it interested
him to do it. He looked at other
people, he spoke to them, he even
answered sometimes, but he was really looking all the time at himself.”
It is, of course, a tragedy that
Powell should have been forced to
turn to autobiography solely because he was unable to direct any
more of the extravagantly fantastic
cinematic sagas that are now a permanent part of the history of film.
But in writing “A Life in Movies”
and “Million-Dollar Movie,” he
made the most of his enforced leisure, and we are immeasurably the
richer for his having done so. Even
if his movies should someday be
forgotten again—and they won’t
be—these books will live.
Mr. Teachout, the Journal’s drama
critic, writes “Sightings,” a column
about the arts, every other week.
Write to him at tteachout@wsj.com.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A14 | Wednesday, November 29, 2017
PATRICK SEMANSKY/ASSOCIATED PRESS
SPORTS
NFL
THE GIANTS BENCH
ELI MANNING
THE QUARTERBACK who won two Super
Bowls for the Giants is getting benched for the
one who got his jaw broken by a teammate
while on the Jets.
Eli Manning, who has started 210 consecutive regular-season games dating back to
2004, will be benched Sunday in Oakland,
coach Ben McAdoo said. That Manning’s
iron-man streak would end this way would
have been unfathomable weeks ago, but
shows how the Giants’ season has unraveled
and how abruptly a franchise quarterback’s
career can reach a potential end.
Manning’s streak is the second longest in
NFL history for a quarterback—behind Brett
Favre’s 297—and two games longer than the
208 by Peyton Manning, Eli’s brother.
The new face under center isn’t exactly the
most popular person in New York. Geno Smith,
the former Jets quarterback whose bumpy
tenure included a 12-18 record as a starter and
an infamous teammate-inflicted injury, will
take his place this week. Davis Webb, a thirdround pick in this year’s NFL draft, is also on
the roster but hasn’t been active yet this year.
The 2-9 Giants have been one of the NFL’s
biggest disappointments this season. The
blame has been placed everywhere for this
year’s woes. Star receiver Odell Beckham Jr.
is on injured reserve and McAdoo has been
questioned about his leadership. The only
area where this team hasn’t really faced
problems has been at quarterback, where
Manning has completed 62.5% of his passes
with 14 touchdowns and seven interceptions, all while throwing to the league’s
most depleted receiving corps.
Manning said McAdoo offered to let him
start just to keep the streak going, with the
other quarterbacks coming in after him.
Manning said no.
Tiger Woods plays a shot
during Monday’s practice
round for the Hero World
Challenge in the Bahamas.
GOLF
Woods Tries to Shake His Own Ghost
BY BRIAN COSTA
NASSAU, Bahamas—Tiger Woods is back,
yet again, and the golf world is awash in
nostalgia, yet again. In honor of his latest
return to competitive golf this week, Golf
Channel is airing highlights from all 14 of
his major championships. But that version
of Woods—red shirt, black pants, pumped
fist—is a ghost.
Most of his competitors have seen it only
on television. Woods’s 10-year-old daughter
and 8-year-old son can only recall seeing it
on the Internet. “The YouTube golfer,” they
call him.
What remains of him as an athlete, if
anything to speak of, is a mystery, not least
of all to Woods himself. He will tee off on
Thursday in the Hero World Challenge, an
18-player event that benefits his charitable
foundation, for what will be only his eighth
competitive round since August 2015. After
four back surgeries, he said Tuesday that he
is finally free of pain.
But Woods spoke of his body as if it were
a transplant recently attached to his head.
He is still figuring out how it works, to what
extent it works and whether it will allow
him to play golf without humiliation or
physical agony for any length of time.
“I just really don’t know yet,” he said.
If the last year proved anything, it was
how little one event means as a predictor of
Woods’s future. He returned at this tournament without incident a year ago, only to
end up back on the operating table after
just three competitive rounds in 2017.
More telling will be how long Woods, 41,
is able to play without pain—and how he is
able to manage it if it reoccurs.
Woods pleaded guilty to reckless driving
last month after a police officer found him
Gridiron Men
Most consecutive regular-season starts at QB:
PLAYER
GAMES
Brett Favre GB, NYJ, MIN
Eli Manning NYG*
Peyton Manning IND
Philip Rivers LAC*
Matt Ryan ATL*
297
210
208
187
126
*Active
Source: Stats LLC; WSJ
Weather
40s
ttl
Seattle
P
d
Portland
40s
10s
d
t
Edmonton
0s
Calgar
gary
Calgary
30s
g
Eugene
10s
20s
30s
Billings
20s
Boise
30s
20s
40s
Helena
50s
<0
Winnipeg
Bismarckk
oux FFalls
ll
Sioux
Pierre
Salt Lake
Lake City
Cit
C y
10s
30s
20s A
Anchorage
h g
2
U.S. Forecasts
18
21
40s
23
24
50s
60s
tford
Hartford
80s
Miami
Showers
Flurries
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.
Hi
52
80
61
78
53
52
50
62
56
46
61
54
50
50
64
Today
Lo W
32 s
62 pc
37 s
60 pc
32 pc
22 pc
36 pc
38 s
47 c
27 pc
48 s
32 pc
42 c
33 s
41 pc
Tomorrow
Hi Lo W
53 29 s
79 59 pc
53 42 pc
81 58 pc
52 32 sh
40 35 pc
47 38 r
62 39 s
58 32 pc
46 35 s
62 49 s
53 32 pc
48 41 r
48 28 s
56 44 pc
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
44
59
70
92
35
40
41
79
83
41
38
Today
Lo W
33 sh
51 s
46 s
80 pc
20 pc
31 c
32 sh
63 pc
68 s
33 pc
28 sh
Tomorrow
Hi Lo W
41 32 sh
67 60 pc
71 50 s
90 76 sh
38 20 s
37 30 c
39 29 sh
81 61 s
82 68 s
41 32 pc
38 28 pc
5
17
27
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Hi
40
41
82
80
56
87
62
79
44
54
90
93
72
44
25
92
43
79
77
60
87
37
59
84
78
84
64
42
49
36
39
Today
Lo W
29 c
29 c
69 pc
70 pc
52 pc
75 t
47 s
58 pc
30 pc
27 sh
79 s
70 s
42 s
35 c
22 c
74 pc
36 c
69 pc
57 s
45 r
77 pc
25 pc
45 r
78 pc
70 pc
71 s
50 s
27 s
41 r
30 sh
27 sh
Tomorrow
Hi Lo W
37 29 c
39 29 sh
81 65 pc
78 63 pc
63 56 pc
86 76 c
61 45 s
81 59 t
40 35 pc
50 27 pc
89 79 c
93 71 c
70 40 pc
50 30 pc
29 27 c
92 74 pc
40 32 c
79 70 pc
82 57 s
58 41 r
87 74 pc
36 23 s
53 45 c
85 77 pc
80 71 pc
81 65 r
54 43 r
44 33 r
47 42 r
35 31 sn
36 28 c
6
7
8
9
25
29
36
49
30
47
50
51
55
58
61
64
41
42
48
53
56
57
59
65
60
63
66
GIVING DIRECTIONS | By Jim Peredo
Across
24 Add by
appropriating
1 Suggesting snow,
perhaps
26 Self-deprecating
exclamation
5 Flint product
10 Orinoco flow?
27 “Believe you me!”
14 Fury
29 Portal with a
Bing search field
15 Song from the
1990s, to some
16 Pen pals?
17 Congregant’s
agreement
18 •Escalade
command: “Take
me to my cabin!”
20 One who got the
third degree?
21 Stairway sight
31 Psychiatry
concern
32 Ma lugs one
around
34 Screws up
66 Bugs
36 Stadium
souvenir
•1500 command:
3 Got on with
grace
47 Bond between
Dalton and
Craig
49 Illegally
supplant
51 Fancy send-off
37 Anastasia’s
eldest sister
38 The Duke of
Albany has its
last line
41 Former NPR
show, or a
description of the
starred answers
4 Nikkei currency
52
62
33 Diner choice
65 Lots and lots
“Back to my
place!”
38
46
30 Taste with
trepidation
64 Preps hides
2
34
37
63 Master Chief’s
video game
Down
1 Vividly violent
31
40
54
13
26
39
45
12
22
33
44
11
19
28
35
43
10
16
32
5 Response to a
boaster
42 Site of the
Minotaur’s
labyrinth
6 Sorrowful cry
7 Mix up
43 Sweet
winemaking
grape
8 Clear
9 Super set
44 Bronchodilator
user’s ailment
10 Felt heartsick
11 Penguin in a
mask, e.g.
45 Entrap
47 Like one who
should be
recused
12 Get the flow
to go
13 Requests
someone’s
presence at
48 Alludes
19 Pivot
50 Some DJ’ed
dances
54 Layers of rock
21 Got by with just
fumes
55 Takes steps
56 “Cast Away”
vessel
25 Wolverine’s
group
28 “Put ___ on it!”
53 Scotts
Miracle-___
33 Neutral shade
57 USN officers
35 •Navigator
command: “Find
a safe place to
stop!”
58 •Camaro
command:
“Follow that
auto!”
39 In hands, say
60 Brits like them
mushy
22 Comes to a
crescendo
40 Lego piece
43 Bad, in Bordeaux
61 Gallic girlfriend
23 Rude question
for a magician
46 Auto efficiency
abbr.
62 It goes down for
the count
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
32 23 sf 27 16 s
Atlanta
70 51 s
67 54 pc
Austin
74 44 pc 75 46 s
Baltimore
62 34 s
53 41 pc
Boise
44 28 s
45 32 pc
Boston
55 30 pc 43 40 pc
Burlington
45 21 pc 41 37 pc
Charlotte
71 41 s
63 48 pc
Chicago
47 37 s
50 30 pc
Cleveland
47 34 s
51 33 sh
Dallas
69 45 c
70 45 s
Denver
58 25 pc 53 31 s
Detroit
46 33 s
48 30 sh
Honolulu
84 75 pc 83 73 c
Houston
79 52 pc 77 50 s
Indianapolis
55 41 pc 53 31 sh
Kansas City
49 39 pc 53 30 s
Las Vegas
68 48 pc 68 47 s
Little Rock
67 50 c
66 42 pc
Los Angeles
76 55 pc 76 54 s
Miami
81 72 pc 82 71 pc
Milwaukee
44 36 s
48 31 pc
Minneapolis
45 35 s
44 29 s
Nashville
66 47 pc 67 44 sh
New Orleans
76 63 pc 75 55 sh
New York City
59 36 s
48 42 pc
Oklahoma City
57 37 pc 59 35 pc
4
20
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Milwaukee
t
Detroit
80s
70s
3
15
Cheyenne
Honolulu
l l
40s
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30s
l
Buffalo
70s
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Cleve
Cleveland
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i
Des
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Chicago
50s
80s
Phil d lph
Philade
hi
Philadelphia
Pittsburgh
g
h
Omaha
di p li
Sacramento
p i fi d Indianapolis
Springfield
Denver
90s
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DC
Washington
an Francisco
San
Kansas
Ch l t
Charles
Charleston
50s Topeka
Colorado
C y
City
100+
h
d
Richmond
L
Las
Springs
60s
L
Lou
St.. Louis
L
Lou
ill
Louisville
h
Wichita
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Vegas
60s Raleigh
l igh
h
h ill
Nashville
Angel
Los A
Angeles
Ch l tt
Charlotte
Santaa F
Fe
ph
Memphis
C
b
Columbia
Ab q q
Albuquerque
Ph i
70s Phoenix
k hom
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C y
Oklahoma
Warm
Rain
San Diego
Atl t
Atlanta
LLittlee Rockk
T c
Tucson
i
h
Birmingham
D
Dallas
Jack
Jackson
Cold
Ft. Worth
T-storms
80s
P
El Paso
70s Mobile
Jacksonville
bil
60s
A
Austin
Stationary
-0s
Snow
l d
Orlando
Houston New
ew Orleans
l
0s
Tampa
an Antonio
A t i
San
80s
Reno
gether, which left him at once more comfortable and stiffer. Whatever his ability, it
is safe to say that he will be aesthetically
different as a golfer. But the changes Woods
has undergone since 2013, the last full season he played, run deeper.
Once an isolated figure on the PGA Tour,
he has embraced his younger peers as never
before. Woods reveled in being an assistant
captain on the U.S. Ryder Cup team in 2016.
Watching from home during major championships this year, he sent a flurry of text messages to prominent players, including Jordan
Spieth during his win at the British Open.
His friend and Golf Channel analyst Notah
Begay III has noticed a renewed enthusiasm
for the sport. He cited a Q-and-A they did
together with college golfers in October, in
which Woods beamed as he told stories
40s
T
Toronto
A
y Boston
Albany
Mpls./St. Paul
Mpls./St.
20s
Golf’s most dominant player
for more than a decade is
attempting another comeback.
t
Montreal
A
t
Augusta
ttawa
Ottawa
from his college days at Stanford.
“You could just tell he was excited about
the game again,” Begay said. “It may sound
odd, but it’s not from playing it. It’s from
being around it and understanding he has so
much more to offer golf than what he does
on the golf course.”
The notion that Woods may yet reemerge
as something more than a ceremonial golfer
has proven impossible to kill. His best years
were so enthralling —and his downfall so
stunning—that virtually the entire sport still
clings to the hope of a happier ending,
whatever that may look like.
During the Ryder Cup, U.S. players wore
tee shirts one night that read, “Make Tiger
Great Again.” Recent reports of Woods blasting his tee shots by other pros during casual
rounds in Florida have only fueled the hype.
But for Woods, playing regularly without relying on painkillers could still be a challenge.
Paul McCormick, director of the Spine
Center at Columbia University Medical Center, said fusion surgery typically eliminates
pain in the area operated on. But the kind of
torque on which a golfer relies can put more
stress on the area directly above it.
“What we find is that while the average
person does very well with that surgery, the
superior athlete may not do as well,” McCormick said. “The stakes are higher because their level of function is higher.”
For now, Woods said he is thrilled simply
to get out of bed in the morning, reach for a
club and not have to use it as a walking
crutch. His goals are modest. He wants to
make his younger peers feel, if just for a
day, what it was like to have to compete
against him in his prime. He wants his children, Sam and Charlie, to know what it is
like to see the YouTube golfer in the flesh.
“I want them to feel it. I want them to
understand it a little bit more,” he said.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
V
Vancouver
asleep at the wheel of his Mercedes in May.
He was found to have five drugs in his system, including two painkillers, the sleep drug
Ambien and the anti-anxiety drug Xanax.
He said he has not watched the police
dashboard camera video, widely circulated
online, that showed him struggling to walk
on the night of his arrest. In June, he
checked himself into rehab for issues related
to his use of prescription medications.
“I’ve come out the other side, and I feel
fantastic,” he said. “I don’t have these issues
anymore.”
The fusion surgery Woods underwent in
April was akin to gluing two vertebrae to-
52 Netflix category
59 Juice box brand
60 Letter after
upsilon
Previous Puzzle’s Solution
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KYLE TERADA/REUTERS
BY ANDREW BEATON
THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | A15
OPINION
Seven Days in November
It would be
hard to exaggerate
the
absurdity of
events now
o v e r ta k i n g
the
ConBUSINESS
sumer FinanWORLD
cial ProtecBy Holman W.
tion Bureau—
Jenkins, Jr.
and, if they
weren’t so
laughable, their dangerousness.
Let’s revisit the history of
this peculiar new agency. It
was created largely at the behest of Harvard Law professor
and future senator Elizabeth
Warren as part of the sprawling Dodd-Frank legislation.
The agency was set up to be
funded directly by a levy on the
Federal Reserve, operator of
the nation’s monetary printing
press, independent of the federal budget process or congressional appropriations.
In a Putinesque move, Ms.
Warren removed herself from
consideration as the agency’s
head and encouraged President
Obama to appoint one of her
protégés, Richard Cordray.
Flash forward to a new and
hostile administration of the
opposite party. Mr. Cordray,
with one year left on his statutory term, announces his resignation. He also, citing a passage in the agency’s founding
statute, asserts his right to
name his own successor, which
he does in the person of Leandra English, another Warren
loyalist.
Ms. English immediately
launches a lawsuit to nullify
President Trump’s presumed
power, under a separate law,
the Vacancies Act, to name an
acting director to replace Mr.
Cordray. Now if Ms. English
can prevail in court and Senate
Democrats can block a new appointee after Mr. Cordray’s
term expires next year, presumably Ms. English can remain acting director as long as
she wants, with power to name
her own successor.
Voilà, an agency of the federal government becomes the
dynastic possession of Ms.
Warren and her designated
cronies. Vladimir would be impressed.
All this might seem harmless given the agency’s limited
powers, restricted mostly to
policing the disclosures of financial institutions in their
dealings with consumers. But
is this ludicrous dispute as
harmless as it seems?
Recall that one of the new
agency’s first priorities under
Mr. Cordray was to go after
auto dealers, though DoddFrank explicitly excluded them
from the agency’s oversight.
Recall that he sought not to
regulate their disclosures but
to ban a practice that he and
other activists decided they
didn’t like, namely dealer-negotiated interest rates on car
loans, though the agency had
no authority to do so.
It is not possible to overstate
the cynicism and opportunism
of what followed. Because he
can’t regulate auto dealers, he
targeted banks that finance
auto dealers. Because auto
dealers are forbidden from collecting racial data on borrowers, the upstream lenders can’t
know the race of borrowers.
Yet Mr. Cordray charged
them with disparate impact
based on so-called Bayesian
Improved Surname Geocoding, which assigns borrowers
to a racial category based on
their names and zip codes,
though the method is not designed for such purposes and
known greatly to overestimate the number of AfricanAmericans in the U.S. carbuying population.
After 241 years,
the United States
experiences its
first coup attempt.
Even this does not do justice
to the disingenuousness of the
agency’s method. Any person
identified as having a blacksounding name who paid a
higher rate than the average of
people with white-sounding
names was deemed to have
been a victim of discrimination,
never mind that many people
with white-sounding names
also paid a higher rate.
The agency also got its desired results by deliberately
overlooking the fact that dealers have different business
models, with those who specialize in low-end cars tending
to make most or all their profit
from the dealer interest-rate
markup.
By such means the agency
fabricated—there is no other
word—evidence of racial disparity in auto lending to shake
money out of lenders, without
effective court appeal, because
the agency was able to hold
necessary approvals the banks
sought from other federal
agencies hostage until the
banks settled. That’s not all:
Part of the proceeds were then
distributed to activist groups
that supported the CFPB’s creation and mission.
It’s no accident that in a
previous column about all this,
we called on the government
to apply the RICO Act against
itself. So before you completely
dismiss an opportunity for fanciful paranoia, consider that a
slow-motion coup attempt is
under way in Washington.
Think about the nature of the
people who gave rise to the
CFPB in the first place. Think
about a leadership that,
months after the agency was
founded, concocted the autolender shakedown.
Remember how even small
agencies under long-lived leadership can grow to be immune
from political accountability,
becoming arbitrary powers
unto themselves. Think of the
FBI under J. Edgar Hoover.
Happily, the courts are
overwhelmingly likely to protect us from the power grab of
the Warren junta, as the U.S.
District Court in D.C. started to
do Tuesday. Even the CFPB’s
own top lawyer rejected Mr.
Cordray’s claim of authority to
determine his successor. The
courts are certain to find that,
no matter what the CFPB statute says, a president retains
his authority under the Vacancies Act to name an acting director. Democracy will be
saved.
Chicago Isn’t Always the Second City
Years of congressional
dysfunction
have shifted
power
into
the executive
POLITICS branch, independent agen& IDEAS
cies and the
By William
courts. This
A. Galston
horizontal
shift has been
accompanied by a vertical one,
as states and localities take on
greater responsibilities.
Local jurisdictions are
struggling to meet current
needs while also planning for
the future. Investments with
long-term returns, such as job
training, higher education and
infrastructure, often get
crowded out by short-term
political demands.
In their recent book, “The
New Localism,” Bruce Katz
and Jeremy Nowak argue that
cities and counties will be
tested as never before in the
coming years. They will need
to innovate and reform—to
pursue new strategies for
growth and finance—in a fiscal environment dominated by
rising health-care and pension
costs. In these circumstances,
the quality of metropolitan
governance will matter more
than ever.
Early evidence suggests
many local institutions are not
up to the task. A lengthy exposé in the New York Times
documented the consequences
of shortsighted financial practices for the New York subways. Over the past two de-
cades, maintenance investment
stagnated as ridership nearly
doubled. Efforts to add new
lines have been stymied by
construction costs five times
the international average. Corrected for inflation, the city’s
contribution to the Metropolitan Transportation Authority
fell 75% since 1990.
Meanwhile, governors and
mayors diverted $1.5 billion
from the MTA for other purposes, pressured the authority
to spend money on projects
unrelated to service and reliability, and saddled it with
debt, so that interest payments now consume 17% of its
annual budget, three times the
share two decades ago.
We can argue about the extent to which generous contracts with private contractors
and union workers are responsible for this state of affairs.
(Managers receive an average
of $280,000 annually in pay
and benefits.) But it is hard to
argue about the results: New
York’s subway now has the
worst on-time performance of
any major rapid-transit system in the world—just 65%,
down more than a quarter
since 1992.
Maybe it’s not surprising
that Berlin, Seoul, Singapore
and Hong Kong report on-time
rates of 99% or better. These
jurisdictions believe in a robust
public sector and substantial
autonomy for experts.
But that argument cannot
explain the results in Chicago,
which reports on-time performance of 96% and customer
satisfaction in excess of 90%.
Future-oriented investments
have made all the difference.
Since 2011, a third of existing
rail lines and stations have
been refurbished, three new
stations have been built, and
Chicago became the first city
in the country to offer 4G service throughout its subway
system.
Trains run on time,
and the subway has
4G. Behold the power
of public investment.
Despite a cut in state funding, the Chicago Transit Authority’s 2018 operating budget will be in balance for the
seventh consecutive year. On
the heels of an $8 billion investment drive since 2011,
the CTA is proposing a fiveyear capital budget of $2.7
billion.
The Windy City hasn’t
achieved this level of performance without sacrifice. To
fill the hole created by state
budget cuts, the CTA raised
fares for the first time in eight
years. To finance an added
$180 million in capital spending, Mayor Rahm Emanuel
crafted a first-in-the-nation
fee on ride-hailing services
such as Uber and Lyft. The
proceeds will be used to upgrade security at all CTA stations and reduce average trip
times by up to 6 minutes.
In an interview, Mr. Emanuel contrasted Chicago’s performance with New York’s.
“It’s a tale of two cities,” he
said. Allowing for predictable
pride in his city and in his
own performance, the mayor
has a point: Governance matters. Even hard-pressed cities
like Chicago can persuade
middle- and working-class citizens to pay more for public
services—if they get their
money’s worth.
In a statement, the Chicago
Transit Authority declared
that “every dollar generated
by the fare increase is equal
to a dollar in savings and reforms CTA is making in the
budget.” Chicago’s transit riders will hold will hold the authority to its word. And Mr.
Emanuel will be held accountable for showing that the fees
extracted from Uber and Lyft
customers have produced the
promised results.
The results of sound infrastructure policies ripple
through urban economies. In
Chicago, major corporations
such
as
Google
and
McDonald’s have relocated
around new subway stations.
Residential construction and
small businesses have followed suit.
Done right, public investment complements and catalyzes the private sector. But
private investment will not always step in when the public
sector pulls back. Governors
and mayors understand this.
Unfortunately, Congress has
yet to get the message.
E
conomic development
professionals take note:
I’m excited to announce
plans to open a second headquarters for my business. I expect stiff competition for the
tsunami of consumer dollars
I’m likely to unleash on any
lucky community that meets
my exacting requirements. So
you’ll want to pay close attention to maximize the impact
of your incentives in my decision matrix.
As everyone knows by
now, my current headquarters, which sprawls over
nearly 675 square feet, not
counting the cat box, is the
platform for an engine of extraordinary literary productivity. So why a second one?
There are some serious
growth constraints inherent
in my current facilities.
The neighbors’ Wi-Fi network, all of a sudden, requires
a password. Several of the
vendors my business depends
on, inexplicably tightening
their credit policies, have
discovered the location of
my current headquarters,
posing a distraction to management.
To win my new headquarters, naturally, a city will
have to meet stringent requirements, including a specific package of incentives
The lucky winning
city will bring home
a coveted job—mine.
worth at least $500 million.
Additional
considerations
will include the number of
cheap liquor stores within a
1-mile radius of the proposed
site, quiet streets conducive
to sleeping until noon, bars
and coffee shops where you
can sit for hours nursing a
single beverage, and supermarkets that give a senior
discount to a guy who looks
only 40 (extra points for a
well-stocked ramen aisle).
Locales with ocean views and
a warm climate are especially
urged to apply. A public-private
partnership
can
strengthen any city’s bid, and
development officials are encouraged to work with local
brewers and distillers toward
this end.
Full disclosure: I’m not the
only one seeking another
headquarters location. By a
remarkable coincidence, a Seattle company called Amazon
has also announced a search.
The company recently said it
has 238 proposals, suggesting
that a business as venerable
and robust as mine will be
deluged by even more. A
well-organized
enterprise
plans for such things, and so
I’ve borrowed a bigger hat
(from a friend with an even
larger head than mine) for
use in the scientific selection
process.
The winner will reap not
just an economic windfall but
a transformative infusion of
glamour. The city I choose will
instantly become known as a
The Long Route
To Free Trade
Clashing Over Commerce
By Douglas A. Irwin
(Chicago, 860 pages, $35)
I
n 1789, James Madison addressed the first congress of
the new American republic with these words: “I own
myself the friend to a very free system of commerce
and hold it as a truth that commercial shackles are
generally unjust, oppressive and impolitic.”
His free-trade views fitted the times. The American
colonists had just waged a war to escape the trade burdens
imposed by a mercantilist English ruling class. The
Navigation Acts, enacted in the mid-17th century, required
that colonists trade through Britain. The Tea Act of 1773
attempted to give the East India Co. a monopoly in the
American colonies, a move that provoked the Boston Tea
Party, ancestor of today’s libertarian tea party.
Fast forward and after over two centuries of ups and
downs in trade politics, Americans have opted for the
Madisonian view. The average duty on imports, after a
relatively steady decline over the past 80 years, is now
negligible. A 2017 Gallup Poll showed that 72% of
Americans see trade as an
opportunity and only 23% as
a threat. The U.S. benefits
from a modern global “free
system of commerce” brought
about by the North American
Free Trade Agreement of 1993
and the comprehensive 1994
“Uruguay Round” multilateral
compact, which broadly
reduced barriers and
liberalized international trade.
In “Clashing Over Commerce,”
Douglas Irwin, a professor of
economics at Dartmouth,
outlines this long evolution of
trade politics from the mercantilist 1640s to
the present, when Donald Trump has made trade
controversial again by arguing for a renewal of protectionist
policies. Mr. Irwin’s chronicle—lengthy, detailed and
readable—traces the winding trail that has brought us to
the liberal world trading order we enjoy today.
Modern protectionist rhetoric didn’t begin with Mr.
Trump, of course. Barack Obama used it to win labor votes
during the 2008 campaign. Mr. Irwin quotes Mr. Obama
declaring: “We can’t keep passing unfair trade deals like
NAFTA that put special interests over workers’ interests.”
In office, he took a more liberal stance.
The early U.S. congresses favored free trade and levied
tariffs only as the most efficient way to gain revenues,
since they could be collected by merely a few customs
officers in Boston, New York and Philadelphia. But
industrialization brought demands from Northern factory
owners and their congressmen for high tariffs to protect
“infant industries,” like iron smelting. Protective tariffs on
dutiable items soared in the mid-1820s to as high as 60%.
Mr. Irwin doesn’t find strong evidence that tariffs
actually promoted development, but they certainly sowed
conflict between North and South. Southern congressmen
complained that tariffs were hurting the lucrative cotton
export business by making it more difficult for Europeans
to earn dollars with exports to the United States. South
Carolina’s first threat to secede, in 1832, was made in
objection to Northern tariffs. The Civil War crushed the
South’s trade arguments and brought in a long period of
Republican rule and protectionist policies.
Tracing the evolution of trade politics from
mercantilism to the present, when Donald
Trump has made trade controversial again.
hotbed of literary ferment,
with eddies of gossip, envy
and despair rippling outward
in all directions. Most of all, of
course, this is about employment, and the lucky winning
city will bring home a coveted
job. Although that job is likely
to remain filled by me, my
massive earnings writing and
reviewing midlist books will
nourish a host of related industries. An economic impact
report I commissioned estimates—conservatively—a firstyear multiplier effect worth
$736 million. Some of these
funds are sure to leak past the
nearest halal food truck, assuming the proprietor isn’t too
serious about saving.
One caveat. If you land that
other company out looking
for a second headquarters,
don’t count on getting me.
There isn’t a metropolis in
North America that could
handle both of us.
The Republicans finally went too far with the 1930
protectionist Smoot-Hawley Tariff Act, which brought a
precipitous drop in U.S. foreign trade and played a role in
the Great Depression. When it comes to assigning blame for
deepening the Depression, Mr. Irwin faults Smoot-Hawley
less than the Federal Reserve’s policies. He endorses the
view, advanced by Milton Friedman and Anna Schwartz in
the 1960s, that the Fed mishandled the deflation of the
early 1930s by failing to increase the money supply. He
notes, however, that the late monetary specialist Allan
Meltzer gave Smoot-Hawley more of the blame. Of course,
both the Fed and Congress earned low marks.
In 1932, voters cast the offending Republicans into the
outer darkness, where they would live for 20 years, and the
New Deal’s Reciprocal Trade Agreements Act of 1934 ushered
in a series of bilateral agreements that gradually improved
America’s trade posture. The act also, Mr. Irwin notes, gave
the president a greater role in negotiating deals.
After World War II, both political parties saw it as
imperative to rebuild Europe in order to ward off Russian
imperialism. The General Agreement on Tariffs and Trade,
in the late 1940s, set up a new trade framework, and
American investment flowed into Western Europe,
launching a new wave of internationalism. In the
mid-1960s, negotiations began on what came to be known
as the Kennedy Round, introducing an era of broad tradeliberalization agreements.
By the 1990s, in another twist, the Republicans had
become the dominant free-trade party, and it served them
well. Democrat Bill Clinton was well disposed toward free
trade, but his party, more heavily wedded to protectionist
unions, was less so. In 1993, the Nafta agreement passed
Congress but only with the help of 132 Republican votes in
the House and 34 in the Senate.
So where are we today? Mr. Obama supported the
Trans-Pacific Partnership negotiations that began in 2011
and, a couple of years later, the Transatlantic Trade and
Investment Partnership. In 2017, Mr. Trump dropped out of
both and began his attack on Nafta. That stance has earned
him strong opposition from the farm and auto lobbies,
both of which profit from an integrated North American
trading system.
Today’s question is whether Mr. Trump represents a
turning away from free trade by Americans. The polls that
Mr. Irwin cites suggest not. He finished his book at the
outset of the Trump presidency and wasn’t sure how much
Trump talk was serious and how much bluster. Although he
doesn’t say so outright, he implies that he is still hopeful
about preserving a liberal trade order, despite Mr. Trump.
Certainly James Madison’s argument for it is still sound.
Mr. Akst is author of “We
Have Met the Enemy: SelfControl in an Age of Excess.”
Mr. Melloan, a former deputy editor of the Journal editorial
page, is the author of “Free People, Free Markets: How the
Wall Street Journal Opinion Pages Shaped America.”
Where Are My Incentives to Relocate?
By Daniel Akst
BOOKSHELF | By George Melloan
THE WALL STREET JOURNAL.
A16 | Wednesday, November 29, 2017
OPINION
S
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
A Trigger Warning on Taxes
A More Concentrated Market Would Help IPOs
enate Republicans made considerable 2018. It’s called an election, and Americans hold
tax-reform progress Tuesday by passing one every two years. There is zero chance the
a bill through the Budget Committee, tax code runs on autopilot without political inthough not without another
tervention for six years.
An automatic tax
nick. The reform would still
The pony in this pile is that
help the economy and lift inthe
budget forecasts rely on a
increase in year six if
comes, but the trillion-dollar
lame 1.9% growth on average
revenues don’t arrive. for the next decade. The GOP’s
question is whether Republicans can put the American
bill could restore growth to a
people and prosperity ahead
3% historical norm and gin up
of this or that pet demand—or if they’ll con- more than enough money to avoid the trigger.
tinue to dent the product.
Perhaps the GOP should add a reverse trigger?
The bill passed 12-11 after drama over If revenue exceeds projections, plow the cash
whether Senators Ron Johnson (Wisconsin) and into lowering the top marginal rate on individuBob Corker (Tennessee) would vote no amid as- als to 35%.
sorted objections. Both voted yes.
That won’t happen, but we’ve supported the
Mr. Corker is worried about the federal defi- GOP tax bill despite its imperfections because
cit, and we hear he has struck a deal “in princi- it represents an improvement over the status
ple” with Senate leadership for a “trigger” that quo that could also attract a majority. The hope
snaps back some of the cuts if revenues six is that the GOP accepts this reality, but then
years from now are below what the budget there are other holdouts: Senator Johnson and
gnomes predict today. We’re told this would set Steve Daines (Montana) want something more
off $350 billion in tax increases over the next for “pass through” businesses that pay taxes on
10 years, details on which taxes would rise to personal returns. The Senate allows a 17.4% decome later this week. This appears to be the duction for such business income.
price of Mr. Corker’s vote, and it may also asMr. Daines calls these entities “Main Street”
suage James Lankford (Oklahoma) and Jeff businesses, though this is a tilt: Most small
Flake (Arizona).
businesses don’t pay the top rate, which is why
The trigger is a bad idea on the policy merits. the small-business lobby is on board with the
No one knows when there might be another re- Senate plan to give everyone relief. This is a
cession, during which tax receipts invariably fight over tax breaks for a small pool of relafall. A trigger could then be a tax hike on Ameri- tively large companies that compete with corcans at a tough economic time. In that event, porations, which are taxed a second time on
Congress would certainly override the trigger- dividends.
tax increase as a political matter.
A key feature of a pass-through reform needs
The extent of the potential trigger damage to be crafting rules that prevent lawyers and acwill depend on the fine print, and the priority countants from gaming the system to pay a
ought to be preserving the business cuts that lower rate than other individuals. But pass
produce the most economic growth. Corpora- throughs are going to get a major tax break, and
tions won’t relocate to America at a 20% tax no sane Republican should kill a tax bill over
rate with a threat of a much higher rate in a these details. An expanded 20% deduction
couple years. In particular Republicans (from 17.4%) would cost about $60 billion,
shouldn’t reverse course after making tough po- which the GOP should be able to accommodate
litical choices to make the 20% rate and other within its budget parameters. Messrs. Johnson
business tax cuts permanent. They don’t want and Daines should accept this concession and
fear of a trigger to crimp the investment and call it victory.
growth that produces more revenue—and lower
Any Member who isn’t thrilled with the final
deficits—for Treasury.
product can also follow the standard procedure
By the way, the Senate bill already includes of the Senate: Offer an amendment on the floor
other trigger dates: One is the end of 2025 when and see if it commands a majority. For all the
the cuts for individuals expire, and many of drama, the real news is that the GOP is moving
those provisions are budget blowouts, including toward the most pro-growth tax reform in 30
the expanded child tax credit. Another trigger years, developed in an open process under reguis the 10-year budget window. Oh, and Nov. 6, lar order. This is no time to go wobbly.
M
A Drama Queen Loses Her Head
ore hilarity ensued in the Consumer appoint Mr. Mulvaney. And even CFPB general
Financial Protection Bureau’s game of counsel Mary McLeod affirmed this legal interthrones Tuesday when the acting act- pretation in a memo to staff on Saturday.
ing director Leandra English
The opinion “confirms my
The woman who put
got her head handed to her by
oral advice to the Senior Leada federal judge.
ership Team,” she wrote,
the acting in acting
After doing photo-ops
which suggests that both Mr.
director is deposed.
with Sen. Elizabeth Warren,
Cordray and Ms. English were
Ms. English continued preaware that their political
tending to be the CFPB acting
stunt was illegal but went
director. But by the day’s close, the drama ahead anyway. So the supposedly noble Mr.
queen was formally deposed. Federal judge Cordray was setting up his young protégé to be
Timothy Kelly denied Ms. English’s petition embarrassed.
for a temporary restraining order to block OfMs. English called up former CFPB senior atfice of Management and Budget director Mick torney Deepak Gupta, who filed the lawsuit for
Mulvaney from serving as the real acting di- her as an individual. To obtain a temporary rerector. President Trump appointed Mr. Mulva- straining order, she’d have to show she would
ney on Friday under the Federal Vacancies Re- suffer immediate irreparable harm from being
form Act after Richard Cordray resigned and usurped—beyond the humiliation she’s inflicted
anointed Ms. English.
on herself. She couldn’t and now must decide
The Justice Department’s Office of Legal whether to continue as deputy under the real
Counsel affirmed the President’s authority to acting director or quit in embarrassment.
H
Fourth Amendment Showdown
ow difficult should it be for law en- argued that police were free to follow a suspect
forcement to get cellphone records around town, but that “longer term GPS monishowing a suspect’s past location? toring in investigations of most offenses imThat’s the question before the
pinges on expectations of priThe Supreme Court
Supreme Court on Wednesday
vacy.” Four other Justices
in Carpenter v. U.S., which takes up phone searches agreed.
challenges decades of Fourth
Yet civil libertarians want
in the digital age.
Amendment law.
more. Several groups have
Timothy Carpenter is servfiled briefs making the maxiing 116 years in prison for a
malist claim that law enforcestring of armed robberies. During the investiga- ment should need a warrant before getting any
tion, the government obtained 127 days of loca- cellphone location data. In that same 2012 case,
tion data from Carpenter’s wireless carrier, Justice Sonia Sotomayor floated the idea of
showing that his phone connected to cell towers ditching the third-party doctrine. “It may be
near the crime scenes.
necessary to reconsider the premise that an inThe first question is whether this constitutes dividual has no reasonable expectation of prian “unreasonable search,” which would trigger vacy in information voluntarily disclosed to
Fourth Amendment protections requiring a third parties,” she wrote. “This approach is ill
warrant. The government says no, arguing the suited to the digital age.”
location data didn’t belong to Carpenter, but
That would be a mistake. The routing data
were business records created by the phone from cellphone calls does not reveal the content
company. This distinction is important, since of any communication, but it can be invaluable
it invokes the “third-party doctrine” that police at the start of a police investigation, before
investigations have relied on for decades.
probable cause exists to justify a warrant. In
This doctrine mirrors the basic idea that law 2011 a federal judge in Jacksonville, Fla., was
enforcement may gather evidence from wit- sitting in his living room when a rifle bullet
nesses. Just as police can canvass neighborhood came through his window, missing his head by
shopkeepers, they ought to be able to ask a phone inches. There were no witnesses and dozens of
carrier whether its network “saw” the suspect. potential suspects. With phone location reTen minutes before the robbery, did he make a cords, police were able to exclude many, and
call that was handled by a cell tower down the within 48 hours they found their man.
street? Or was he texting in Toledo?
It’s also important to know that Congress
Carpenter says long-term data from cell- created the legal framework for getting this
phones represents something new: an “unprec- data. Police must present “specific and articulaedented surveillance time machine.” He does ble facts” showing that the records are “relenot dispute that police can get location records vant and material to an ongoing criminal invescovering a short term—say, 24 hours—without tigation.” A judge must sign off. If more
a warrant. But he argues that tracking a sus- protections are needed, Congress can add them.
pect’s routine movements for 127 days is quali- But where is the process misused today? If the
tatively different.
threat of abuse is as large as privacy activists
There may be an appetite on the Court for claim, they ought to be able to find a better
this idea. In a 2012 case, Justice Samuel Alito champion than Timothy Carpenter.
“Small IPOs Are Dying; That’s
Good” (Business & Finance, Nov. 14)
overlooks the value that a healthy initial public offering pipeline has on the
nation’s economic vitality. Even the
“hand-wringing” economists know
that keeping more of the economy private means excluding more Americans
from participating in the markets and
generating wealth. It is in America’s
best interest that its brightest, most
innovative entrepreneurs seek public
offerings rather than private exits.
Furthermore, U.S. market structure
hasn’t evolved to benefit all market
segments equally. The current fragmented structure penalizes small
companies for their low daily trading
volumes; investors are deterred from
making big bets on those companies
because of the lack of liquidity to fill
bigger trades. Concentrating disaggregated liquidity on one or two exchanges would allow investors to better source liquidity and make those
stocks more attractive. Allowing issuers the choice to aggregate their liquidity on a single exchange—with
limited exceptions—would result in
better trading for the investors who
believe in these companies.
A slowing IPO pipeline isn’t necessarily a sign of a more efficient market. Rather, it is evidence of a framework that discourages founders from
taking their companies public for fear
of succumbing to short-term pressures. Instead of celebrating the decline of the public market, we should
be encouraging tax and regulatory reform, the elimination of unnecessary
disclosure obligations and a broader
review of current market structure
which would allow CEOs to tap public
markets without compromising on
their companies’ futures.
NELSON GRIGGS
President
Nasdaq Stock Exchange
New York
Gas Providers Are Prepared for Peak Demand
In his “How Local Utilities Gamed
the Natural-Gas Market” (op-ed, Nov.
17), Environmental Defense Fund President Fred Krupp provides a misleading view of interactions between gas
and electricity markets. Natural-gas
pipelines provide services to many
customers, including electric generators and natural-gas utilities represented by the American Gas Association. Gas utilities are obligated under
state regulations to meet their customers’ needs—delivering gas directly
to homes and businesses for heating,
hot water and cooking. Gas utilities
plan diligently to help ensure gas is always there when customers need it.
Mr. Krupp observes there is a “persistent gap between the amount of gas
scheduled in advance, and the volume
that flowed.” This reflects a misunderstanding of how the natural-gas system works. Weather can’t be perfectly
predicted. Pipelines and utilities must
maintain safe operating margins, and
gas utilities contract for firm interstate pipeline capacity to ensure reliability and flexibility, especially for the
coldest days. Mr. Krupp misleadingly
presents this margin in terms of
power-generation demand, inflating its
apparent significance. The economic
paper he cites itself states that over
the 37 cold days analyzed for the statistic, the unutilized capacity was only
7% of the pipeline’s overall capacity.
By necessity, pipeline systems are designed to meet demand that peaks on
a handful of days each winter. This
means the margin on capacity constrained pipelines, such as those in
New England, on those few peak days
is likely much lower still. Perhaps
worst of all, Mr. Krupp entirely ignores
interstate pipeline scheduling changes
adopted by the Federal Energy Regulatory Commission in 2015 to further
improve coordination between the
natural gas and electric industries.
The AGA’s focus remains on preserving and enhancing reliability for
all interstate pipeline customers.
DAVE MCCURDY
President and CEO
American Gas Association
Washington
Prepaid Health Care Is Not True Insurance
Regarding Chelsea Prim’s Nov. 17
letter about coverage for pre-existing
medical conditions: When, and only
when, my homeowner’s insurance is
involved when my air conditioning
goes out or a toilet is clogged, or my
insurance carrier dictates which
roofer I can or cannot use and my
auto-body shop asks me for my insurance before it can tell me how much a
repair is going to cost, can I compare
any other type of true insurance policy to the current health plans, which
really are prepaid health-care plans,
not insurance. Once the incorrect term
“insurance” is dropped and we consistently use the term health “plan,” we
may be able to have an honest debate.
Insurance is for protection against
an unforeseen financial loss, not to
Our Job Is Helping People;
We Do That Nonpolitically
James Piereson and Naomi
Schaefer Riley suggest that United
Way (among others) has inappropriately engaged in partisan politics at
the expense of the people we serve
(“Philanthropy Booms in the Trump
Era—but It Also Gets Political,” oped, Nov. 18). They create this misperception by taking my year-old comment about advocacy out of context.
When United Way advocates for
policies, we do so in a bipartisan
fashion and on behalf of the health,
education and financial stability of
every person in every community.
That means we advocate for support
for nutritious school lunches, early
education programs and increased
job-training initiatives.
Our focus is the people we serve.
One of our most successful efforts is
the support we offer to 380 no-cost
tax-assistance sites where low-income
workers can easily access the earnedincome tax credit, perhaps the most
effective modern antipoverty program. Our advocacy for this credit
(and its congressional support) cuts
across political boundaries.
Current tax-reform legislation in
Congress would reduce charitable
giving by $13 billion a year. Would
the authors argue that it’s in the interest of the 61 million people United
Way serves for Congress to raise
taxes on private charitable giving? If
not us, then who should speak on
their behalf?
BRIAN A. GALLAGHER
President and CEO
United Way Worldwide
Alexandria, Va.
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
get you a discount on your prescriptions, provide no-cost vaccinations,
set copays or, worst of all, bless you
with only having to pay the ridiculous
“negotiated rate.” Look at what you
pay in premiums on your home, auto
and life insurance against the potential losses they protect you against.
Then look at the insanely high premiums people pay health-care plans to
“insure” against similar-size payouts.
The system is broken and no amount
of manipulation of the current method
is going to make it better.
JEFF REDDING
Fort Worth, Texas
Robots vs. Minimum Wage:
What Would Aristotle Say?
Regarding Michael Saltsman’s “San
Francisco’s Problem Isn’t Robots; It’s
the $15 Wage Floor” (Cross Country,
Nov. 25): Does California intend to
tax power tools such as nail guns or
large industrial machinery such as
combines and mining equipment, all
of which greatly reduce the need for
human labor? There seems to be a
disconnect between productivity enhancement where humans are involved whether using a power tool or
operating machinery and robots,
which are somehow viewed as sinister. Both are cases of productivity
growth through capital investment.
As Mr. Saltsman points out, capital
becomes more attractive when labor
costs are inflated.
BILL DOUGLAS
Medford, Mass.
When Aristotle was asked what it
would take to get rid of slavery, he
answered: when people invent machines to do the slaves’ work. Looks
like San Francisco wants to reverse
the trend. Plus ça change.
GEORGE NANICHE
Moraga, Calif.
Pepper ...
And Salt
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THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | A17
OPINION
By Robert B. Zoellick
O
ne of America’s senior
statesmen predicted earlier
this year that Donald
Trump’s hunger for success
would push the president
toward a more traditional foreign policy. I countered that it depends on
how Mr. Trump defines success. We
now have an answer: Mr. Trump’s foreign policy reflects his instinct for political realignment at home, based on
celebrity populism.
Populist movements feed off grievances and impatience with traditional
politics. Frustrations—whether generated by economic distress, social displacement, or cultural challenges—
His style of deal-making
prizes uncertainty and
brinkmanship, without a
plan for what comes next.
fuel skepticism about institutions and
elites. Challengers (who want to become the new elite) attack traditional
leaders as out of touch, incompetent
and corrupt.
Mr. Trump rallies his supporters
by proclaiming the three presumptions of populism. First, it professes
to reflect the will of a scorned people. Hillary Clinton called them “deplorables.” The will of the people is
intolerant of the give-and-take of pluralism and disdains the identity politics of the Democratic Party.
Second, populism finds and
blames enemies, domestic or foreign,
who thwart the people’s will. Mr.
Trump has mastered insulting such
scapegoats.
Third, populism needs “the leader,”
who can identify with and embody the
will of the people. Like other populist
leaders, Mr. Trump attacks the allegedly illegitimate institutions that come
between him and the people. His solutions, like those of other populists, are
simple. He contends that the establishment uses complexity to obfuscate and
cover up misdeeds and mistakes. He
claims he will use his deal-making
know-how to get results without asking the public to bear costs.
Mr. Trump’s foreign policies serve
his political purposes, not the nation’s interests. He says the U.S.
needs to build a wall to keep Mexicans at bay—and Mexico will pay for
it. He asserted he would block Muslims from coming to America to harm
us. His protectionist trade policies
are supposed to stop foreigners from
creating deficits, stealing jobs, and
enriching the corporate elite. Mr.
Trump also asserts that U.S. allies
have been sponging off America. The
U.S. military is supposed to hammer
enemies and not bother with the
cleanup—even if the result, for example in Syria, is an empowered axis of
Iran, Shiite militias, Hezbollah and
Bashar Assad’s regime.
The president’s emphasis on discontinuity—breaking things—demonstrates action while disparaging his
predecessors. He pulled out of the
Trans-Pacific Partnership, but the
other 11 countries are proceeding
without the U.S. He wants to destroy
the North American Free Trade
Agreement and strangle the U.S.-Korea Free Trade Agreement; he also is
threatening the World Trade Organization’s rules and system for settling
disputes. His style of deal-making
prizes uncertainty and brinkmanship,
which risks escalation, without a plan
for what comes next.
Mr. Trump’s foreign policy represents a break from postwar presidents of both parties, reaching back
to Harry S. Truman. Other presidents
CHAD CROWE
The Peril of Trump’s Populist Foreign Policy
led an alliance system that recognizes U.S. security is connected to
mutual interests in Europe, the AsiaPacific region and the Middle East.
Past presidents believed that the U.S.
economy would prosper in a world of
expanding capitalism, governed by
adaptive rules and practices that
matched America’s competitive and
dynamic markets. Over time, U.S. foreign policy strove to expand human
rights, liberty and democracy. Mr.
Trump dismisses this U.S.-led international system as outdated, too
costly and too restrictive of his caseby-case deal-making.
The 70-year-old U.S. foreign policy
architecture has been grounded in institutions. But Mr. Trump disdains
America’s intelligence agencies and is
dismantling the State Department.
His foils at home are the courts, the
press, a clumsy Congress beholden to
antiquated procedures, and even his
own Justice Department.
Mr. Trump’s recent trip to Asia reveals that foreigners have taken his
measure. They play to his narcissism.
He in turn basks in their attention,
diminishes his own country by
blaming past presidents, and preens
with promises of great but unspecified things to come. Other countries
are preparing for a world in which
they can expect U.S. demands but
can no longer rely on American
leadership.
The president’s need to project an
image of personal power—for his domestic audience and his ego—makes
him more comfortable with authoritarian leaders. Presidents Xi Jinping,
Vladimir Putin and Rodrigo Duterte
have noticed, as has part of the Saudi
royal family. Democratic leaders, accountable to public opinion, face a
more complex choice: They can keep
their distance and risk Mr. Trump’s
ire or try to manipulate him through
frequent attention, royal treatment,
golf and courtship of the family.
Yet Mr. Trump’s ride on the populist
wave—and the foreign policy that
matches his politics—faces a big obstacle: Most Americans do not agree with
his approach. Significant majorities
prefer the fundamentals of the foreign policies Mr. Trump is deconstructing, according to a 2017 survey
of American adults from the Chicago
Council on Global Affairs. Sixty percent say alliances with Europe and
East Asia either are mutually beneficial or mostly benefit the U.S. Record
numbers say international trade is
good for consumers (78%), the economy (72%) and job creation (57%).
Some 65% support providing illegal
immigrants a path to citizenship, and
only 37% characterize immigration as
a critical threat. All these numbers
have shifted against Mr. Trump’s positions since the election.
Elected Republicans face a moment
of decision. Voters with a very favorable view of Mr. Trump are moving
toward protectionism and against alliances and immigration. Mr. Trump’s
Republican Party pits nationalism
against America’s internationalism,
whereas for 70 years GOP leaders saw
them as two sides of a coin.
Democratic leaders face a challenge as well. Their voters, especially
younger ones, increasingly support
trade, according to Chicago Council
data. Democrats will need to decide
whether to compete with Mr.
Trump’s isolationist economic nationalism or offer a new vision of
American leadership.
Mr. Trump’s foreign policy represents a change of type, not simply degree. Previous populist impulses in
the U.S. ran their course, creating opportunities for adaptation, not simply
disruption. Patriotic Republican and
Democratic leaders must challenge
Mr. Trump’s foreign-policy destruction. Political defeat is not the same
as ideological defeat. The debate over
ideas is just beginning.
Mr. Zoellick is a former World
Bank president, U.S. trade representative and deputy secretary of state.
Is It Unreasonable to Expect Cellphone Privacy?
By Jim Harper
A
case that comes before the Supreme Court Wednesday may
erode or solidify Justice Antonin Scalia’s legacy. How the justices
decide in Carpenter v. U.S. won’t
matter as much as how they reason.
If they use the “reasonable expectation of privacy” test to decide
whether the government can access
cellphone users’ location data without a warrant, Scalia’s contributions
to Fourth Amendment jurisprudence
will be negated. But if the high court
recognizes that data as owned in part
by cellphone users, Scalia’s legacy
will be secured, along with the Constitution’s safeguards against unreasonable search and seizure.
The plaintiff, Timothy Ivory Carpenter, was convicted in 2014 of participating in a string of armed robberies in the Detroit area and sentenced
to 116 years in federal prison. Investigators obtained court orders netting
127 days of Mr. Carpenter’s cellphone
records, showing that his phone was
in communication with cell towers
near the sites of four robberies. The
court will decide whether investigators should have gained access to that
data under a relatively low statutory
standard requiring that the information be “relevant” to an ongoing investigation, or whether they should
have asked a court for a warrant
based on probable cause.
Since 1963, the dominant approach
to the Fourth Amendment has been
derived from a solo concurrence in
Katz v. U.S. setting out the reasonable-expectation-of-privacy test. That
test defines a search as having occurred anytime a government agent
violates a defendant’s reasonable privacy expectations. It has often operated as a one-way ratchet against
Fourth Amendment protection, using
curious logic.
Because possession of drugs and
other contraband is illegal, concealing
them is unreasonable. Thus, courts
have held that whatever government
action turns up such contraband is
not a search. Actions that most would
consider searches, such as directing
drug-sniffing dogs at people and flying planes low over suspects’ houses,
are treated as nonsearches that don’t
require warrants.
Smith v. Maryland (1979) is the
premier precedent supporting government access to telecommunications
data. In Smith, government agents
acting without a warrant persuaded a
Baltimore telephone company to place
a pen register on the phone line of a
burglary-and-stalking suspect. The device captured the numbers of his outgoing calls, showing that he had dialed
the victim’s home number. The Supreme Court found there was no reasonable expectation of privacy and
thus no seizure or search.
A case before the Supreme
Court could undo Justice
Antonin Scalia’s Fourth
Amendment legacy.
Today the government interprets
Smith as providing warrantless access to troves of data about the locations and movements of every cellphone user, subject to that statutory
relevance standard. That data can
reveal sensitive information, such as
when people seek medical or psychological treatment, where they go
to church, their relationships and
business dealings, attendance at political events, and more. The appeals
court in Carpenter adopted Smith’s
reasoning.
For years, Scalia pointedly
avoided the reasonable-expectationof-privacy test. His 2001 decision in
Kyllo v. U.S., for example, addressed
the use of a thermal imaging device
to detect heat patterns emanating
from a home thought to contain a
marijuana-growing operation. Scalia didn’t refer to privacy expectations in his argument. Rather, he
claimed that when government
agents use an exotic device “to explore the details of the home that
would previously have been unknowable without physical intrusion, the surveillance is a ‘search’
and is presumptively unreasonable
without a warrant.”
In 2012, another major Scalia decision again steered around the potholed logic of “reasonable expectations.” In U.S. v. Jones, Scalia’s
majority opinion found that attaching a Global Positioning System device to a car without a warrant, and
using that device to monitor the vehicle’s movements, constitutes a
search. In 2015, the Second U.S. Circuit Court of Appeals in New York
polished Scalia’s logic. Attachment
of the GPS device was “a technical
trespass on the defendant’s vehicle”—a small but important seizure
that put the car to the government’s
purposes.
Gauzy appeals to privacy expectations only complicate what ought to
be straightforward: Searching is
searching; seizing is seizing.
Cellphone privacy policies give
consumers many rights to control
their telecommunications data. Essentially these are property rights,
which on their own should require
that the government obtain a warrant
before searching and seizing digital
records. In Carpenter the court may
find that such contracts help create
an “expectation of privacy.” Or it may
find that there isn’t a reasonable privacy expectation. Seizing data and
examining its contents would become
neither seizure nor search, giving
government agents a free hand.
That kind of illogic would be a loss
for Justice Scalia’s legacy. The court
should find that telecommunications
data are owned in part by cellphone
users. A warrant is required for the
government to take such property
and examine it.
Mr. Harper is vice president of the
Competitive Enterprise Institute,
which has filed an amicus brief in
Carpenter v. U.S.
Hunting Can Be Good for Lions and Elephants
By Terry L. Anderson
And Hannah Downey
T
he debate about hunting lions
and elephants has just come
roaring back. Earlier this
month the U.S. Fish and Wildlife
Service lifted a ban on importing
lion and elephant trophies from
Zimbabwe and Zambia. Just days
later, after an outcry, President
Trump reinstated it. “Put big game
trophy decision on hold,” Mr. Trump
tweeted, “until such time as I review
all conservation facts.”
Although African lions and elephants are listed under the Endangered Species Act, Americans can
import trophies from certain countries as long as the Fish and Wildlife
Service determines that hunting will
enhance the survival of the species
in the wild. After several years of
study, the agency determined that
hunting these species in Zimbabwe
and Zambia would benefit wildlife
conservation.
Environmental activists aren’t reassured, and some pledged to sue.
“The Trump administration must
clearly and permanently halt imports of lion and elephant trophies
to protect these amazing animals
from extinction,” said Tanya Sanerib, a senior attorney with the Center for Biological Diversity. Mr.
Trump expressed similar concerns.
“Will be very hard pressed to
change my mind that this horror
show in any way helps conservation
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of Elephants or any other animal,”
he tweeted.
The fear is that allowing trophy
imports will lead to more killing of
animals. To some extent, that’s true.
But encouraging more legal hunting
could actually be a good thing for
endangered wildlife.
Many opponents conflate trophy
hunting with poaching. Pictures featuring dozens of elephants with their
tusks, ears and feet dismembered
may seem to represent the effects of
all elephant hunting. In reality, such
gruesome scenes are created by
poachers who illegally kill elephants,
usually to trade their parts in Asia,
where demand for ivory is high.
Where poaching occurs, it is often in
conjunction with corruption in the
wildlife-regulation system.
Poachers are often local Africans
who lose crops, livestock and family
members to marauding elephant
herds. To them, wildlife is a liability
to be avoided or killed rather than an
asset to be protected. Poaching, not
legal hunting, is what caused Africa’s
elephant populations to drop by 30%
between 2007 and 2014.
Some argue that allowing hunters
to import trophies will make it easier for poachers to market illegally
killed animals. But bringing a trophy
into the U.S. requires federal permits, and getting those from the
Fish and Wildlife Service takes
mounds of paperwork and months of
careful processing.
In Zimbabwe, officials track and
register all authorized hunts, identify the nationalities of the participants, and monitor the value and
number of elephants harvested relative to the sustainable quota.
With proper monitoring, poachers
can be caught and wanton killing
stopped.
When hunting is prohibited, wildlife bears the cost. Before Kenya
banned hunting in 1977, it was home
to 167,000 elephants. By 2013 the
number had fallen to 27,000, all in
protected areas such as national
parks. That’s because poaching the
animals for bushmeat was rampant.
A government report
makes the case for easing
the ban on importation
of big-game trophies.
A 2012 study found that eliminating
hunting revenues can be bad for
lion conservation because it can
“reduce tolerance for the species
among communities where local
people benefit from trophy hunting,
and may reduce funds available for
anti-poaching.”
When conducted responsibly, trophy hunting is both sustainable and
profitable. Hunters pay not only for
licenses but professional guides and
their staffs. Money flows even to local councils that distribute proceeds
to villagers. That turns wildlife from
a liability into an asset.
Two decades ago, the village of
Sankuyo, Botswana, signed on to a
community-based natural-resource
program that emphasized hunting. In
2010 the community earned nearly
$600,000 from the animals, including
22 elephants, hunted that year. The
funds went to local projects, including
to improve water and toilet access.
Wildlife populations also increased.
“When hunting was introduced,” a
wildlife-management expert named
Brian Child told the New York Times
in 2015, “we actually ended up killing
less animals.”
Sankuyo demonstrates that if
hunting is to benefit wildlife, it must
first benefit people. If political
structures or corruption prevents local communities from benefiting
from the presence of wildlife, there
will be no motivation to fight poachers or find alternative resolutions to
human-animal conflicts.
In 2014, however, Botswana
banned trophy hunting. “Before,
when there was hunting, we wanted
to protect those animals because we
knew we earned something out of
them,” one villager told the Times.
“Now, we don’t benefit at all from
the animals. The elephants and buffaloes leave after destroying our
plowing fields during the day. Then,
at night, the lions come into our
kraals.” Without legal hunting to
give wildlife value, poaching and human-animal conflicts have increased,
and dozens of people have been left
jobless.
Though it is perhaps an uncomfortable reality, responsible hunting
can promote wildlife conservation. It
makes wildlife an asset to local communities, which secures the survival
of at-risk species. If the Fish and
Wildlife Service has determined that’s
the case in Zimbabwe and Zambia, a
distaste for hunting shouldn’t be
enough to stand in the way.
Mr. Anderson is a senior fellow at
the Hoover Institution and the Property and Environment Research Center in Bozeman, Mont. Ms. Downey
is a research fellow at PERC.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A18 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
Pope Skirts ‘Rohingya’ in Myanmar Visit
Francis urges leaders
to embrace all groups,
but doesn’t directly
name Muslim minority
NAYPYITAW, Myanmar—
Pope Francis told Myanmar’s
political leaders that their country’s democratization depends
on inclusion of all ethnic and
religious groups, but he avoided
directly referring to the Muslim
Rohingya minority whose treatment he has denounced as religious persecution.
In a speech to civilian leader
Aung San Suu Kyi and other
dignitaries in Myanmar’s capital on Tuesday, the pope called
on the country to establish a
“democratic order that enables
each individual and every
group—none excluded—to offer its legitimate contribution.”
The pope also praised a
peace process Ms. Suu Kyi initiated last year to end decadeslong conflicts with various ethnic insurgent groups.
But he didn’t directly mention
the military campaign in
L’OSSERVATORE ROMANO/REUTERS
BY FRANCIS X. ROCCA
AND BEN OTTO
Pope Francis, left, and Myanmar’s civilian leader, Aung San Suu Kyi, met with other dignitaries in the capital Naypyitaw on Tuesday.
Myanmar’s western Rakhine
state, which has driven more
than 600,000 Muslim Rohingya across the border into
Bangladesh since late August.
The United Nations and the
U.S. have characterized the
campaign as ethnic cleansing.
Pope Francis has been an
outspoken advocate for the Ro-
hingya. “They are being tortured and killed, simply because they uphold their Muslim
faith,” the pope said in February. In late August, following
the start of the military’s retaliation for attacks by Muslim
militants there, the pope called
for “our brothers the Rohingya”
to receive their “full rights.”
The matter has dominated
the pope’s visit, the first to
Myanmar by any pope.
Cardinal Charles Bo of Yangon, the country’s senior Catholic cleric, has urged Pope Francis not to focus on the Rohingya
issue during his visit, and to
avoid using the word “Rohingya,” lest he imply support
for the group’s claim to the status of an indigenous minority.
The country’s authorities
don’t recognize that status
and regard the Rohingya as illegal immigrants from Bangladesh, although many have
lived in Myanmar for generations. By championing the
group inside Myanmar, local
Catholic leaders have warned,
the pope could provoke a
backlash against the country’s
small community of Christians.
On the other hand, humanrights activists have said they
would be disappointed if the
pope fails to reiterate his support for the Rohingya. On
Tuesday, one activist was unsparing in his criticism.
“The pope missed an important opportunity to speak
truth to power,” said Phil Robertson, deputy director for
Asia of Human Rights Watch.
BY JAMES HOOKWAY
AND JOSH CHIN
When U.S. Secretary of
State Rex Tillerson deployed
the term “ethnic cleansing” to
condemn Myanmar’s campaign
against Rohingya Muslims last
week, the country’s army chief
was visiting old friends somewhere else: China.
Senior Gen. Min Aung Hlaing enjoyed a guard-of-honor
welcome at the headquarters
of the People’s Liberation
Army in Beijing on Nov. 21. He
dined with one of China’s topsix commanders, where they
discussed China’s support of
Myanmar. A couple of days
later, the Myanmar general
met with President Xi Jinping.
Myanmar’s civilian leader,
Aung San Suu Kyi, will visit
Beijing soon, Myanmar state
media said.
“China identifies this as a
strategic opportunity,” said
Yun Sun, a senior associate at
the Stimson Center think tank
in Washington. “This is a
chance to regain the confidence of the Burmese government and...people.”
For years China helped
prop up Myanmar’s economy
under a military junta. But ties
between the two countries
soured when Myanmar’s generals began introducing democratic overhauls in 2011, ultimately leading to the election
of Ms. Suu Kyi, a former political prisoner,
A Chinese hydropower project was put on hold, and Japanese and Western investment
began trickling into the country to displace Beijing from its
role as Myanmar’s benefactor.
Now China is regaining
some of its lost influence. It is
trying to revive stalled projects, including the hydroplant,
and get access to Myanmar’s
Indian Ocean coast through a
$7.3 billion port and pipeline
project. China’s Citic Group is
in the final stages of talks over
beginning work on the site at
Kyaukphyu. Officials from Citic
and Myanmar didn’t respond
to requests to comment.
China’s diplomatic and
commercial moves are a part
of President Xi’s trillion-dollar
“Belt and Road” plan to build
infrastructure and deepen
trade ties across Eurasia.
“China’s overall objective at
the moment is to demonstrate
to Myanmar’s government and
military that it remains on
their side whatever comes,”
said Romain Caillaud, director
of risk consultancy Asia Group
Advisors. “That support will
likely come in handy when the
time comes to negotiate or
push through business agreements.” China is already the
biggest cumulative foreign investor in the country, spending $18.53 billion since 1988,
according to Myanmar’s government.
—Xiao Xiao
contributed to this article.
ED JONES/AGENCE FRANCE-PRESSE/GETTY IMAGES
China Reasserts Influence on Its Neighbor
Rohingya migrants waited to receive food aid at a relief center in
the Kutupalong refugee camp in Bangladesh on Tuesday.
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Siemens Health IPO Takes Shape
As company slims
down, its board is
expected to firm up
plans for major division
BERLIN—Siemens AG, the
German engineering conglomerate, is readying the most
significant step yet in its
yearslong restructuring: the
listing of a big chunk of its
health-care business, estimated to be worth up to $47
billion.
The company’s board is expected Wednesday to hammer
out more details for its plan—
first disclosed last year—to
float a minority stake in the
unit, which makes medical
equipment and provides services for hospitals and diagnostics laboratories. It competes with similar, large units
at General Electric Co. and
Koninklijke Philips NV of the
Netherlands.
A decision on where to list
the health division could come
as soon as Wednesday. The
company is leaning toward
Frankfurt after initially favoring New York, according to
people familiar with the matter.
Siemens isn’t likely to set
the exact size of the initial
public offering yet but is targeting listing a slice of between 15% and 25%, according
to one of these people. The
A Siemens imaging system displays blood vessels on a screen. The company is planning to list a minority stake in its health-care unit.
company has said it wants to
launch the offering by the
middle of next year.
Such a partial listing could
be worth anywhere between
$6 billion and $12 billion, according to analysts’ estimates,
and would rank as one of Europe’s biggest IPOs in years. It
also would set up a healthcare giant that Siemens hopes
HEARD ON THE STREET | By Dan Gallagher
Amazon Has the Gift
That Keeps on Giving
It’s a big
week for Amazon.com.
One that
speaks to the
company’s increasing influence across
many different industries, as
well as the high premium investors are willing to pay for
it.
First, this year’s holiday
shopping season formally
got under way. Amazon
doesn’t disclose specific financial sales figures for the
season, beyond boasting of
record sales for its line of
devices. But Adobe Systems,
which tracks retail data, said
total online sales during Cyber Monday hit $6.6 billion,
an increase of nearly 17%
year over year. The company
also reported strong growth
in online sales during
Thanksgiving and Black Friday.
That will certainly lift
Amazon, which is expected
to account for nearly onequarter of all online sales activity in the U.S. during the
holiday season, according to
Bitcoin
Price
Passes
$10,000
BY PAUL VIGNA
AND STEVEN RUSSOLILLO
KRISZTIAN BOCSI/BLOOMBERG NEWS
BY WILLIAM BOSTON
See more at WSJMarkets.com
Elevation
Amazon's segment revenue
per year
$300 billion
250
200
Web services
International
North America
150
will be able to more nimbly
navigate a major shift taking
shape in medicine.
Hospitals and health-care
providers are moving from
their current heavy reliance on
diagnostic tools like X-rays, CT
scans and MRIs to a healthcare system that leans more on
digital imaging, genetics, apps
and artificial intelligence for
both diagnosis and treatment.
Few believe computers will
replace doctors anytime soon,
but they already can scan millions of images in seconds to
help identify specific illnesses
and rule out others. Meanwhile, robots are increasingly
playing a supporting role in
surgery.
The IPO of the health-care
business, now called Healthineers, is Chief Executive Joe
Kaeser’s first step to expand
the business over the next few
years—in part by strengthening its foothold in imaging
equipment and investing in
new areas that promise
growth such as molecular diagnostics.
Please see IPO page B2
AT&T Makes Case for Deal
BY BRENT KENDALL
WASHINGTON—AT&T Inc.
and Time Warner Inc. said an
explosion of online programming has spawned a “golden
age for television—and for
consumers,” in their first
court filing countering government claims that their planned
merger would stymie competition and hurt customers.
Antitrust officials at the
Justice Department filed suit
last week to challenge the
deal, alleging AT&T’s acquisition of Time Warner would
100
give one company too much
control in a rapidly evolving
media landscape.
AT&T, in a formal written
answer to the lawsuit on Tuesday, said the video marketplace is changing quickly and
is “intensely competitive,” and
that nothing about the Time
Warner deal would harm that.
AT&T said online rivals like
Netflix Inc. and Amazon.com
Inc. were spending billions of
dollars on developing and
streaming video content, and
that leading tech companies
like Apple Inc., Google and
Facebook Inc. were doing the
same.
The companies said there
was nothing anticompetitive
about combining Time Warner’s content—like HBO and
the Turner networks—with
AT&T’s distribution of video
through its satellite, broadband
and wireless networks. They
said merging the two would
bring benefits to the public.
The Justice Department has
argued that a postmerger
AT&T would be able to use its
expanded leverage to demand
Please see AT&T page B8
INSIDE
50
0
2014 ’15 ’16 ’17 ’18* ’19* ’20*
*Estimates
Sources: the company; FactSet
THE WALL STREET JOURNAL.
SunTrust analyst Youssef
Squali. Analysts expect Amazon’s North American and
international segments to
generate about $53.5 billion
in retail net sales for the
fourth quarter. That would
be a gain of 33% year over
year, which exceeds the 21%
gain those two segments dePlease see HEARD page B2
VALEANT EDGES
TOWARD
NORMALCY
CHINESE CARS
CLOSE IN ON
RIVALS
COPPER PRICES
FALL ON CHINA
DEMAND FEARS
PHARMACEUTICALS, B3
AUTOS, B5
COMMODITIES, B15
Bitcoin crossed the $10,000
mark for the first time in its
nine-year history, the latest
burst in a rally that has transformed the virtual currency
from a curiosity to a hot topic
for mainstream investors.
The digital currency on
Tuesday at about 8:30 p.m.
Eastern Time passed the
threshold to
trade at
$10,025.96 and at that level is
up 21% just since Friday, according to research site CoinDesk. For the year, it is up
933%, having started 2017 at
$968.23. It continued to surge
Tuesday evening, and by 10:40
p.m. had traded as high as
$10,358.31.
It is one of most notable
surges in a generally positive
year for asset prices. Through
trading Tuesday, the S&P 500 is
up 17% in 2017 and the Dow
Jones Industrial Average has
jumped 21%. The Nikkei 225 is
up 18%. Gold has added about
13%, and copper 23%.
In recent months, investors
have set aside doubts about bitcoin’s use by criminal elements
and focused instead on the potentially transformative technology behind it and the prospect that bitcoin could replace
gold as an investment to hold
when faith ebbs in fiat currencies.
“We now have millions of active users,” said Peter Smith,
chief executive of bitcoin services firm Blockchain.info. “We
didn’t have a million last year.”
Big institutions such as CME
Group Inc. and Goldman Sachs
Group Inc. have stoked enthusiasm about bitcoin’s place in the
world by exploring products
based on the virtual currency.
CME, the world’s biggest exchange group, is expected to
launch a futures contract based
on bitcoin as soon as the second week of December.
For all its appreciation
among investors, bitcoin is still
controversial. South Korea’s
prime minister on Tuesday
warned that the lure of fast
money could prove detrimental
and encourage crime.
The manic rally “has led to
cases where young people and
students get involved with
cryptocurrencies
to
earn
money,” Prime Minister Lee
Nak-yon said in remarks at a
Tuesday cabinet meeting released by his office. “If we let
things continue, I feel that it
will lead to some serious distorted or pathological phenomenon.”
Most individual investors
aren’t making much money
from the rally. About 75% of
bitcoin addresses, also known
Please see BITCOIN page B15
SPY
LIQUIDITY
RESILIENCY
PERFORMANCE
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, November 29, 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.
B
Berkshire Hathaway.B16
Blockchain.info............B1
BP................................A1
Buffalo Wild Wings....B2
BYD............................B16
C
CBRE Group.................B6
Clariant........................B8
Contemporary Amperex
Technology..............B16
CVS Health................B16
CWCapital ................... B6
D
Deutsche Post.............B4
Digital Realty Trust..B14
Domino's Pizza...........A1
Dresser-Rand .............. B2
E
Emerson Electric.........B3
F
Facebook
............. A8,B1,B5,B7,B16
FireEye ........................ B4
Ford Motor..................B5
Fubon Commercial Bank
.....................................B6
G
General Electric .......... B1
General Motors...........B5
Google ......................... B1
Grab.............................B2
Greystone....................B6
Guangdong Bo Yu
Information
Technology................B4
H
Home Partners of
America.....................B6
Huntsman....................B8
J
J.B. Hunt Transport
Services.....................B4
K
Kohn Pedersen Fox
Associates ................ B6
Koninklijke Philips......B1
L
LaSalle Investment
Management.............B6
LG Chem....................B16
M
Meetup........................B7
Microsoft.....................B2
Mizuho Bank...............B6
Morgan Stanley........B16
N
Namdar Realty Group.B6
Nestlé..........................B8
Netflix..................B1,B16
New World
Development.............B6
Nokia Siemens
Networks .................. B2
R
Recorded Future ......... B4
Reliance
Communications.....B14
Roark Capital..............B2
Rockwell Automation.B3
Rolls-Royce Holdings..B2
Royal Dutch Shell.......A1
S
SAIC Motor.................B5
Samsung SDI............B16
Siemens.................B1,B4
SoftBank Group..........B2
Southern Copper.......B15
Statoil.........................A1
Sumitomo Metal Mining
...................................B16
T
Tencent Holdings........A8
Ten-X Commercial ...... B6
Tesla.....................B4,B16
Time Warner...............B1
Toyota Motor............B16
Trimble........................B4
U
Uber Technologies ...... B2
Umicore.....................B16
Unilever.......................B8
UnitedHealth Group..B16
V
Valeant Pharmaceuticals
International.............B3
Valeo............................B2
W
P
Wal-Mart Stores.........B4
WeWork Cos...............B7
White Tale Holdings...B8
Panasonic..................B16
Pfizer...........................B2
Procter & Gamble.......B8
Zhejiang Geely Holding
Group.........................B5
Z
A
Farr, David...................B3
Fishman, Brian............B5
Northey, William......B16
G
Oliver, Michael..........B15
O
B
Goodenough, John....B16
P
Bagley, Forth...............B6
Bittles, Bruce............B16
Bredemus, John........B15
K
Pearson, Michael........B3
Phillips, Craig............B15
C
Kaeser, Joe..................B1
Ka-shing, Li.................B6
Khosrowshahi, Dara ... B2
Chan, Marcos..............B6
Cheng, Adrian ............. B6
Leon, Richard..............B8
L
An Uber employee in Jakarta, Indonesia, with drivers for local rival Grab behind him. Grab has experienced faster growth in the region.
Uber Hits Bumps in Southeast Asia
BY NEWLEY PURNELL
INDEX TO PEOPLE
Ambani, Anil D.........B14
Aznar, Amy Klein........B6
DIMAS ARDIAN/BLOOMBERG NEWS
A
Adobe Systems...........B1
Aetna.........................B16
Alstom.........................B2
Amazon.com........B1,B16
Apple...........................B1
Arby's Restaurant Group
.....................................B2
AT&T.......................B1,B2
Avaya...........................B7
S
Sen, Michael...............B2
Shanahan, Steve.........B6
Shanmugam, Kannon
...................................B14
Shevlin, James............B6
Smith, Peter ............... B1
Squali, Youssef...........B1
D
M
Dobrowski, Thomas....B6
Dong, Hao ................... B4
Drury, Robert..............B6
E-F
Maa, Ming...................B2
Maddocks, Vance........B6
Moores, Simon..........B16
Moret, Blake...............B3
Eisenzimmer, Chris.....B6
Entwistle, Brooks.......B2
N
Y
Niesel, Christoph........B2
Yingzhuo, Wu..............B4
X
Xia, Lei........................B4
SINGAPORE—When Uber
Technologies Inc. retreated
from China last year after conceding a costly battle with a
local rival, the ride-hailing giant vowed to devote new resources to winning other lucrative markets in Asia.
Since then, Uber has suffered setbacks in Southeast
Asia, a region of 600 million
people, where it has been outflanked by another local competitor, Grab Inc., which is
gobbling up market share.
Grab has expanded more rapidly, been more nimble in
meeting local preferences, analysts say, and has forged better
relations with regulators.
Grab has more monthly active users than Uber across six
Southeast Asian countries, according to app analytics firm
App Annie, while a May report
from consultancy Bain found
users across the region prefer
Grab to Uber.
Now Uber investors and analysts say the region might be
the next to be ceded by Uber,
which withdrew from Russia in
July.
One factor is Japanese techinvestment giant SoftBank
Group Inc., which is set to in-
LUCAS JACKSON/REUTERS
HEARD
A Buffalo Wild Wings restaurant in New York
Arby’s Set to Buy
Buffalo Wild Wings
BY IMANI MOISE
Buffalo Wild Wings Inc.
said Tuesday it has agreed to
be purchased by Arby’s Restaurant Group Inc., taking the
restaurant chain private for
$2.44 billion in cash.
Arby’s, which is controlled
by Roark Capital Group Inc.,
will buy the Minneapolisbased restaurant chain for
$157 a share. Including debt,
the deal is valued at roughly
$2.9 billion.
$2.44B
Price Arby’s has agreed to pay to
acquire Buffalo Wild Wings
Shares in Buffalo Wild
Wings rose 6.3% to $155.60,
33% above its closing price on
Nov. 13 when The Wall Street
Journal initially reported
Roark Capital had made an offer to buy the chain.
After the transaction, which
is expected to close in the first
quarter of next year, Buffalo
Wild Wings will be a privately
held subsidiary of Arby’s.
Buffalo Wild Wings, which
is known for its sports-bar atmosphere and chicken meals,
was founded in 1982 and went
public in 2003.
The company had 220 restaurants in the U.S. when it
made its debut as a public
company. It now operates
more than 1,200 locations
world-wide.
The chain has recently been
hurt by rising chicken prices
and slumping traffic in its restaurants. The company’s management also faced pressure
from Marcato Capital Management LP as the activist investor pushed the company to
franchise more stores, boost
profit margins, increase sales
and replace its chief executive.
Despite the surge in price
after news of a deal, shares at
Tuesday’s close were down
8.8% from a year earlier.
Roark Capital bought control of Arby’s from Wendy’s
Co., then called Wendy’s/
Arby’s Group Inc., in 2011 for
$130 million in cash. The private-equity firm focuses on
franchise-based companies
and also has investments in
Carvel, Auntie Anne’s Pretzels
and Carl’s Jr.
Arby’s is known for its
roast-beef sandwiches and operates over 3,300 locations
world-wide. Before being
taken private, Arby’s struggled
to keep customers coming
through the doors during the
economic slump in 2008 because its premium meat sandwiches were more expensive
than other fast-food options.
The deal is the latest ripple
in a wave of consolidation in
the restaurant industry. In
April, European investment
fund JAB Holding Co. agreed
to buy Panera Bread for
roughly $7 billion. Earlier this
month, JAB’s Panera agreed to
buy Au Bon Pain.
Continued from the prior page
livered for the period last
year.
The kickoff of the holiday
shopping period also comes
on the same week as AWS
re:invent, the annual conference for Amazon’s cloud services business. This year’s
event is expected to draw
IPO
Continued from the prior page
Siemens’s health-care business has built a lead in the
sort of high-end hardware that
fill hospitals’ imaging wings.
More recently, it has pushed
into smaller imaging systems
that can be used during surgery or noninvasive treatment
to provide doctors with information that wasn’t previously
available.
When the company outlined
its health-care strategy in August, Michael Sen, a board
member
overseeing
the
Healthineers IPO, said Siemens
was taking the division public
“because it will give us the resources that we need for
growth and acquisitions.”
The health-care business is
one of Siemens’s most profitable divisions. In the year
ended Sept. 30, Healthineers
reported €2.5 billion ($2.97
billion) pretax profit on revenue of €13.8 billion, a profit
margin of 18.1%, up from 17.2%
the previous year. Overall,
Healthineers accounted for
17% of Siemens’s revenue and
30% of earnings.
Mr. Kaeser has been trying
to rein in the sprawling conglomerate since he took
charge of the company four
years ago, shedding underperforming units such as telecommunications and household
appliances and focusing on a
narrower field of more-profitable businesses.
Those steps accelerated
vest upward of $10 billion in
Uber through a direct investment and stake purchases
from employees and other investors.
Late Tuesday, SoftBank provided existing shareholders in
the ride-hailing company with
details of its offer to buy
shares from them at a roughly
32% discount to Uber’s most
recent valuation. SoftBank said
it is seeking to buy shares for
$32.96 each, compared with
$48.77 in Uber’s last funding
round in June 2016, according
to a person familiar with the
matter.
The offer documents also
included unaudited financials
showing that Uber’s net loss in
the third quarter widened to
$1.46 billion from the $1.06 billion loss it recorded in the second quarter. Revenue grew to
$2.01 billion from $1.65 billion
in the prior period, while gross
bookings, which include rides
and food and freight deliveries,
rose to $9.71 billion from $8.74
billion.
Uber’s adjusted loss, not
including taxes and interest,
was $734 million in the third
quarter,
the
documents
showed. It previously disclosed
a loss on that basis of $645
million in the second quarter.
about 40,000 attendees to
Las Vegas to hear about the
company’s latest service offerings and possibly some
price reductions. AWS is expected to generate $17.3 billion in revenue this year, up
42% from the year before
and still well ahead of competing public cloud services
from Microsoft and Google.
The success of AWS has
made Amazon an unusual
hybrid even compared with
SoftBank is also an investor
in Grab, making consolidation
more likely, some Uber investors say, especially as new
Uber Chief Executive Dara
Khosrowshahi tries to curb
losses from fierce cash-burning battles ahead of an eventual initial public offering.
Brooks Entwistle, appointed
Uber’s chief business officer
for Asia in August, said South-
east Asia is a “critical” and
“growing” market for Uber
where it can apply its global
expertise.
He declined to comment on
a potential Southeast Asia retreat, saying he is “focused
right now on running and
building the business.”
Uber doesn’t disclose its
employee count for Southeast
Asia. Grab’s staff has nearly
doubled from 1,600 last year to
more than 3,000 today. Grab in
July announced a $2.5 billion
injection from a SoftBank-led
group, fueling its growth. Grab,
which only operates in Southeast Asia, has expanded from
operating in 30 cities in 2016
to more than 150 today. Uber
has grown from 15 to 60 cities
in the region during that time.
Grab President Ming Maa, a
high-profile deal maker previously at SoftBank and Goldman
Sachs Group Inc., declined to
comment on the possibility of
a merger. Grab is now focused
on becoming a wider-ranging
platform, providing not just
transportation but also mobile
payments, he said.
How Uber has failed to win
in the region offers lessons for
Mr. Khosrowshahi. While both
Grab and Uber offer a variety
of transportation options, such
as private-car, motorcycle and
carpool bookings, Grab has
added locally popular vehicles
such as motorcycles with covered sidecars or three-wheeled
“trikes” that are used widely
in the Philippines. And Grab
appears to have a larger supply of vehicles across far more
cities, which has been key to
attracting users outside major
metropolitan areas.
—Greg Bensinger
and Jake Maxwell Watts
contributed to this article.
its other big tech peers because it has managed to
build sizable and expanding
businesses that serve both
consumers and businesses.
And AWS has helped Amazon generate much larger
profit margins than its retail
side ever did.
Investors have long been
willing to pay a formidable
price for Amazon’s growth
prospects. The stock has averaged about 122 times for-
ward earnings over the past
10 years, according to FactSet. But Amazon is now up
60% this year, having added
about $214 billion in new
market value, which is
roughly the size of companies like AT&T and Pfizer.
That has put the stock above
190 times forward earnings
going into year-end, a considerably large bet that the
Everything Store can keep
doing it all.
Investors and
analysts say the ridehailing firm might
cede the region.
Slimming Down
After years of restructuring, Siemens is focused on eight core businesses.
Siemens segment revenue (4Q 2017*)
Healthineers
(diagnostic
imaging)
Power and Gas
Energy
Management
Digital Factory Process
Siemens
Mobility
Industries Gamesa
and Drives Renewable
Energy
Building
Technologies
€3.71B
€3.65
€3.44
€3.15
€2.39
€2.33
€2.23
€1.76
Profit/Loss €702M €303
€311
€501
€69
–€92
€189
€213
Profit margin 19% 8.3%
9.0%
15.9%
2.9%
8.5%
12.1%
€1 = $1.19
*Fiscal year ended Sept. 30
Source: the company
broader efforts begun in the
1990s to modernize and
streamline Siemens’s portfolio.
For years, the company was
effectively Europe’s answer to
GE, making power plants, electricity grids, washing machines, lightbulbs, telecommunications networks, mobile
phones, personal computers
and trains. The two companies
have competed fiercely for decades in a number of fields including power generation
equipment and health care.
While Siemens had long
been seen as lacking the efficiency of GE, Mr. Kaeser’s restructuring has helped level
the playing field in some investors’ eyes.
“Siemens has no need to
hide,” said Christoph Niesel, a
portfolio manager at Union Investment, one of Germany’s
largest investment funds and a
Siemens shareholder.
Since Mr. Kaeser took control in July 2013, Siemens
shares have underperformed
the DAX index of German blue
chips. However, Siemens
shares have delivered total return in dollar terms of 53%,
compared with minus 10% for
GE, says Mr. Niesel.
GE wasn’t available for
comment.
Mr. Kaeser has made several acquisitions including the
gas-turbine and compressor
business of Rolls-Royce Holdings PLC and Dresser-Rand,
the U.S. turbine maker. The
$7.6 billion purchase of
Dresser-Rand now looks
poorly timed. Earlier this
month, Siemens said it would
cut 6,900 jobs in its powerand-gas division amid falling
demand.
But Mr. Kaeser has sold off
far more assets, including a
major stake in the company’s
railway business to Alstom
SA, its stake in telecommunications-equipment
maker
Nokia Siemens Networks, and
its share of a joint venture
with auto supplier Valeo SA.
THE WALL STREET JOURNAL.
Siemens also listed its Osram
lighting group in 2013.
—Olaf Ridder in Frankfurt
contributed to this article.
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Wednesday, November 29, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
Emerson
Abandons
Takeover
Proposal
Valeant Edges Toward Normalcy
BY ALLISON PRANG
BY JONATHAN D. ROCKOFF
After making multiple offers to buy Rockwell Automation Inc., Emerson Electric
Co. said Tuesday it was rescinding its offer because of
the target company’s board’s
“unwillingness to engage in
discussions.”
Emerson had tried three
times to buy the Milwaukeebased Rockwell. An offer rebuffed earlier this month
called for Emerson acquiring
Rockwell at $225 a share—60%
in cash and 40% in stock—for a
total value of about $29 billion
at the time. That compared
with a $215-a-share offer put
forward in October and one in
August valued at $200 a share.
Both offers were equal parts
cash and stock.
St. Louis-based Emerson
thought the deal would help
accelerate its growth.
“Instead of engaging in constructive dialogue, the Rockwell Board decided to let this
unique and value-generative
opportunity go unexplored,”
said Emerson Chief Executive
David Farr in prepared remarks.
Shares of Rockwell rose
3.2% on Tuesday, while Emerson shares gained 3.7%.
In a letter sent earlier this
month to Mr. Farr, Rockwell
CEO Blake Moret said his company decided the proposal
wasn’t in the best interests of
the company or its shareholders. Rockwell said Tuesday its
board and management team
“are committed to the execution of our strategy.”
“While Emerson may see
this proposed acquisition as
necessary to enhance its
growth and earnings potential
and expand its capabilities in
the industrial automation and
information market, Rockwell
Automation does not,” Mr.
Moret said in the letter.
BRIDGEWATER, N.J.—Inside
the standard-issue conference
room at a garden-variety suburban office park here, executives
at Valeant Pharmaceuticals
International Inc. prepared to
discuss routine business.
“We always start with quality,” Valeant CEO Joseph Papa
said to kick off the recent meeting. Among the topics that followed were familiar drug-company items, like the progress of
marketing to key doctors, plans
to enhance the company’s
401(k), the supply chain.
Normalcy hasn’t been the
norm at Valeant for a while.
The company has been Exhibit
A of corporate turbulence
since 2015, a span when its
drug-price increases and accounting were attacked, top
executives were ousted. Also
its market capitalization nosedived 94%, erasing about $84
billion in worth, more than the
equivalent of Caterpillar Inc.
Mr. Papa, the low-key drugindustry veteran hired 18 months
ago to turn around Valeant, said
it has returned to pharmaceutical-business-as-usual and is now
on a path to recovery. The company noted recent growth in its
Bausch & Lomb eye-care and
Salix gastrointestinal-drug businesses, which combined represent about three-quarters of its
revenue.
Yet Valeant faces a steep
climb to good health. The company is saddled with a hefty
$26.2 billion in debt, even after
Mr. Papa sold assets to pay off
$6 billion in loans. And some
analysts say the company will
face a tough time reducing obligations further because it
can’t afford to buy new products or count on a strong pipeline for new moneymakers.
Valeant’s stock price, which
closed Tuesday at $16.40, has
fallen nearly 50% since Mr.
DOMINICK REUTER FOR THE WALL STREET JOURNAL
CEO leads turnaround
push after turbulence,
noting, ‘This isn’t like
flipping a light switch’
Chief Executive Joseph Papa has been taking steps to reduce the drugmaker’s $26.2 billion in debt.
Papa took over.
Mr. Papa, sitting in a conference room overlooking
high-school ballfields, acknowledged the challenges but
says the company isn’t getting
enough credit for its progress.
“We have something that
will grow,” he said in an interview. “This isn’t like flipping a
light switch. You can’t walk in
and say, ‘All good now.’ It’s going to take some time.”
Under Mr. Papa’s predecessor, Michael Pearson, Valeant
was one of the hottest stocks
on Wall Street. Shares soared
1,883% as Mr. Pearson signed
dozens of deals—rather than
investing in research—to add
new products and sales.
To pay for the deal making,
Valeant racked up more than
$32 billion in debt. After
Valeant failed to buy Botox
maker Allergan Inc. and insurers
clamped down on the company’s
pricey drugs and sales practices,
Wall
Street
questioned
whether the company would
be able to generate enough
sales to repay the obligations
and to justify its share price.
Valeant announced it was
hiring Mr. Papa from drug company Perrigo Co. in April 2016,
the same week a Senate com-
Debt Burden
Valeant Pharmaceuticals is still one of the most highly leveraged
publicly held health-care companies.
COMPANY
DEBT-TO-EARNINGS RATIO
REVENUE
(IN BILLIONS)
12.33
Quorum Health
8.57
Kindred Healthcare
$2.1
6.5
Community Health Systems
7.99
16.8
Valeant Pharmaceuticals
7.77
9.0
Tenet Healthcare
7.75
19.1
6.86
Becton Dickinson
12.2
Teva Pharmaceutical
5.56
23.4
Acadia Healthcare
5.45
2.8
Endo International
4.97
4.57
Catalent
3.9
2.2
Note: Data are as of the third quarter except for Becton Dickinson and Teva (second quarter)
Source: Fitch Ratings
THE WALL STREET JOURNAL.
mittee was holding a hearing
on the company’s drug-price increases. Within weeks, Mr. Papa
was forced to cut Valeant’s financial forecast due to the poor
performance of skin drugs.
“Just name all the different
things we had to rebuild,” Mr.
Papa said.
Mr. Papa said he and his team
have taken steps to eliminate big
price increases. They have integrated Valeant’s acquisitions,
while improving accounting
practices and selling “noncore
assets” in order to focus on gastrointestinal, skin and eye products and pay down debt, he said.
Now the company, which is
based in Quebec but has corporate offices in New Jersey,
doesn’t owe debt until $4.4
billion comes due in 2020. Mr.
Papa said the business’s return
to growth will come in part from
new products like eye-surgery
device Stellaris Elite, glaucoma
drug Vyzulta and a psoriasis lotion in development. Sales from
such new products, he said,
could help the company reduce
its debt to a manageable level.
“Our goal is not to get it to
zero. We’d be comfortable in
that $15 billion to $20 billion
range,” Mr. Papa said.
This month, Moody’s Investors Service raised its outlook
to stable from negative, citing
improved liquidity and sales
growth
expected
from
Valeant’s gastrointestinal-drug
and eye-health businesses.
Yet several equity analysts
advise against buying the
stock, given the still-high debt.
Valeant needs to generate
cash to pay down debt further,
analysts say, but it sold off its
most desirable assets. Some
drugs that once fueled sales
are losing patent protection,
while management is overly
optimistic about remaining
products like irritable-bowel
drug Xifaxan and psoriasis
therapy Siliq, the analysts say.
Mr. Papa’s dual challenge of
trying to run a typical drug
company and dealing with high
debt was on display at the recent executive committee meeting attended by a reporter.
Valeant leaders said the
numbers of doctors prescribing
Siliq and insurers covering it
were increasing “as planned.”
They outlined efforts to find
new suppliers of drug ingredients, and crowed about how
Preservision eye vitamins will
be featured in Costco Wholesale Corp. stores next year.
When it came to Valeant’s
debt-repayment
schedule,
Chief Financial Officer Paul
Herendeen said the company
has “runway” to “focus on the
business” because it doesn’t
need to make a payment before 2020. Then he accidentally referred to millions of
dollars owed, not billions.
Mr. Papa raised an eyebrow
and cracked: “I wish it was
$4.4 million.”
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B4 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
* ****
TECHNOLOGY
WSJ.com/Tech
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Deutsche Post AG’s DHL division said it preordered 10 of
Tesla Inc.’s Semi trucks, joining
a growing list of large transportation companies looking to
test the all-electric vehicle.
DHL Supply Chain, which
handles logistics operations
for retailers and manufacturers, intends to use the heavyduty Tesla trucks for shuttle
runs and same-day customer
deliveries in major U.S. cities,
the company said Tuesday.
DHL also plans to test the electric trucks on longer runs, and
to evaluate its impact on
driver safety and comfort.
Tesla Chief Executive Elon
Musk unveiled the Semi this
month, promising the first
models would hit the road in
2019, and run up to 500 miles
on a single charge. Wal-Mart
Stores Inc. and J.B. Hunt
Transport Services Inc. said
shortly after the announcement they had reserved vehicles, and other logistics and
transportation companies have
followed suit.
In most cases, the orders
have been small, with buyers
planning to test out the Semi
on short routes.
LI MANGMANG/XINHUA/ZUMA PRESS
BY JENNIFER SMITH
PLAYLAND: A man tried out a virtual reality game at an annual conference and exhibition for
computer graphics and interactive techniques in Bangkok on Tuesday.
U.S. Takes Aim at Chinese Hacking
BEIJING—A Chinese internet-security firm that researchers say is behind sophisticated
attacks on Western energy and
defense companies disbanded
this month amid U.S. accusations that some of its shareholders were involved in hacking and theft of trade secrets.
A U.S. Department of Justice
indictment unsealed Monday alleged that three Chinese nationals hacked into the emails of a
Moody’s Analytics economist
and also stole confidential business information from German
engineering giant Siemens AG.
The indictment identified the
three as employees of Guangdong Bo Yu Information Technology Co., also known as Boyusec. Filings with a Chinese
government-run credit database
show that Boyusec was deregistered Nov. 17. The filings also
list two of those named in the
indictment, Dong Hao and Wu
Yingzhuo, as among Boyusec’s
primary shareholders.
Messrs. Dong and Wu
couldn’t be reached to comment
Tuesday. Boyusec’s listed phone
number rang unanswered, and
an email to a company address
didn’t elicit a response.
U.S. cybersecurity firms
FireEye and Recorded Future
link Boyusec to a Chinese hacking group—known as APT3 or
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Gothic Panda—that has targeted Western firms, governments and defense companies
by using previously undiscovered security holes in software
called zero-day exploits.
“APT3 is a capable operator,
carrying out cyberespionage activity against a wide range of
targets, though their activity
has decreased in recent years,”
said Bryce Boland, Asia Pacific
chief technology officer at FireEye.
He added FireEye found that
email addresses of individuals
affiliated with Boyusec were
used to register domain names
used by APT3.
Monday’s indictment is the
first filed by the U.S. since Chinese President Xi Jinping and
then-U.S. President Barack
Obama agreed in 2015 that
their governments wouldn’t direct or support hacking for
commercial purposes.
U.S. officials sought China’s
assistance in halting Boyusec’s
activities in October but received “no meaningful response” and so decided to make
the charges public, a Justice
Department spokesman said
Monday.
A spokesman for China’s For-
eign Ministry said at a regular
news briefing Tuesday that he
wasn’t aware of the situation
surrounding Boyusec, but said
China is “resolutely opposed” to
cyberhacking in any form.
According to the U.S. indictment, Messrs. Dong and Wu,
along with another Chinese national, Xia Lei, targeted a
Moody’s economist’s emails in
2011. The indictment provided
numerous details about the
economist in question, and they
closely match the background
of Moody’s chief economist
Mark Zandi. Mr. Zandi declined
to comment and referred questions Monday to a Moody’s
spokesman, who declined to
comment on its economist. Mr.
Xia couldn’t be reached for
comment.
In 2015 and 2016, the alleged
hackers also stole information
from Siemens’s energy, technology and transportation businesses and from the networks
of GPS developer Trimble Inc.,
the indictment said.
A Siemens representative
said the company doesn’t comment on “internal security matters” but that it “rigorously”
monitors its networks.
A representative for Trimble
said the company had responded to the attempted hacks
and determined they had “no
meaningful impact” on its
business.
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THE WALL STREET JOURNAL.
* *
Wednesday, November 29, 2017 | B5
TECHNOLOGY
WSJ.com/Tech
BY SAM SCHECHNER
AND DEEPA SEETHARAMAN
Assailed for not doing
enough to combat online misinformation and extremism,
Facebook Inc. says it is making big strides in one area: removing propaganda posts and
accounts from Islamic State
and al Qaeda.
The social-media company
said Tuesday that it has in recent months focused on training artificial-intelligence software to identify extremist
content specifically from those
two terrorist groups to hone
its automated technology.
Facebook says that has
boosted the speed with which
it removes posts and accounts
from the groups compared
with when it announced the
initiative in June—with 99% of
the content it removes from
the groups detected before being flagged by Facebook users.
Now, Facebook executives
acknowledge, comes the hard
part: translating some of that
narrow success to a broader
deluge of extremist content,
from
white
supremacist
groups’ pages to hate speech
posts—or even Islamic State
videos that sport a different
look to avoid the automated
dragnet.
“One of the dangers there is
that we’re dealing with a nimble set of organizations that
frequently change the way that
they behave,” said Brian Fishman, lead policy manager for
counterterrorism at Facebook.
“We need to keep training our
machines so that they stay
current.”
Facebook is stepping up its
counterterrorism activity at a
time when it and other tech
firms are being buffeted on
topics ranging from their
treatment of smaller rivals to
their role in spreading political
misinformation.
In September, Facebook. admitted that Russian actors ma-
nipulated its platform to sway
American political discourse,
later acknowledging that
roughly 126 million Americans
saw at least one of more than
80,000 posts from pages
spawned by the pro-Kremlin
group Internet Research
Agency between June 2015 and
August 2017.
Twitter Inc. and YouTube, a
unit of Alphabet Inc.’s Google,
have also been under fire over
the past year for allowing misinformation, hateful speech
and terrorist content to spread
across their platforms.
The deeper challenge for
Facebook’s push to use A.I. to
counter online extremism is
that A.I. tools are only as good
as the data that are used to
train them. Tech platforms like
Facebook rely heavily on software to sift through the reams
of content posted to their sites
every day. But they need huge
numbers of categorized terrorist videos and pictures they
can use to train their algorithms what to look for—
something that might not always be available.
Islamic State and al Qaeda
“are prolific in creating content, and it makes it easier to
train” a machine to identify it,
said Monika Bickert, Facebook’s head of global policy
management. About 83% of
known terror content, including images, videos or text
posts, are taken down within
an hour of being posted on
Facebook, Ms. Bickert said.
Another roadblock is that
many postings and pages, particularly text postings, require
judgments from content reviewers—leading the firm to
increase their ranks. Facebook
will employ 7,000 content reviewers by the end of 2017, up
from 4,500 in May, Ms. Bickert
said. Ms. Bickert said a subset
of each content reviewer’s decisions is audited by Facebook
every week to ensure quality
and accuracy.
TREFOR MOSS/THE WALL STREET JOURNAL
Facebook Targets
Terror Groups’
Propaganda Online
The Lynk 01 at a launch event on Tuesday. It is positioned between Volvo’s premium vehicles and Geely’s mass-market cars.
Chinese Cars Close In on Rivals
BY TREFOR MOSS
NINGBO, China—A new auto
brand, Lynk & Co., hit the market in China on Tuesday, part of
an effort by domestic car makers to broaden their appeal by
offering upscale vehicles capable of matching foreign rivals.
Targeting young buyers by
offering a next-generation vehicle with free wireless connectivity and car-sharing services,
Lynk’s rollout reflects the growing ambitions of Chinese auto
makers aiming to move beyond
the production of cheap cars for
a domestic audience.
After China, Lynk plans to
expand to Europe and then the
U.S., as its parent company,
Zhejiang Geely Holding Group
Co., strives to become a global
player.
“China is reshaping the
global automobile industry at
the highest level,” Geely’s president, An Conghui, said at a
sales kickoff event.
Geely executives contend
Lynk is a tech brand as much as
a car brand, as the internet and
automotive worlds continue to
overlap. The brand—positioned
between the premium vehicles
made by subsidiary Volvo Cars
and the mass-market cars of
Geely Auto—will worry overseas competitors, such as Ford
Motor Co. and General Motors
Co.’s Chevrolet, struggling in
the world’s biggest auto market, where passenger-car sales
have grown by only 2% this
year, said Yale Zhang, managing
director of consulting firm Au-
The brand targets
younger buyers with
free wireless and carshare services.
tomotive Foresight.
“Local [Chinese] cars are
now the ones that really offer
the best value for the money,”
Mr. Zhang said. “They will include more features, like connectivity, at a lower price.”
Hangzhou-based Geely has
outperformed the sluggish
China market this year, its sales
rising 80% in the first nine
months. Even so, “it’s a good
strategy to have a new brand”
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above its mass-market cars,
said Leo Hu, a credit analyst
with S&P Global Ratings, as
China’s premium autos are delivering stronger growth than
the overall market. Premium
sales have increased this year
by roughly one-fifth, according
to S&P.
The Lynk 01, a gasoline-powered sport-utility vehicle, went
on sale in China on Tuesday following a launch at the Ningbo
Speedway, two hours south of
Shanghai. With a sporty design
and smart features including
voice-operated music streaming, the Lynk car shares up to
90% of its underlying technology with its Volvo cousins, said
Geely Auto Vice President Mats
Fagerhag.
Electric versions of the Lynk
01 will follow, with other models set to join the range soon,
he said.
Lynk put 6,000 cars on sale
online earlier in November to
test demand, and they all sold
within two minutes. The price
of a Lynk 01 starts at around
$24,000. That is more than
Geely’s popular Boyue SUV,
which starts at around $14,800,
and slightly lower than the
Chevrolet Equinox SUV, which
is also selling strongly in China.
The Lynk launch comes
weeks after the debut of Polestar, Volvo’s new premium electric-car brand.
Geely isn’t the first Chinese
auto maker to try to expand its
portfolio to reach new customers. Last year, Great Wall Motors Co., China’s top seller of
SUVs, rolled out a brand called
Wey, positioned above its mainstream line. SAIC Motor Corp.,
the country’s largest auto
maker, has recently found success with its Roewe marque.
The Roewe RX5 uses an operating system developed by technology titan Alibaba Group
Holding Ltd. to offer connectivity similar to that being promised by Lynk.
In November, Zotye Auto—
which plans to build electric
cars in a joint venture with
Ford—unveiled a new brand,
Traum, that is positioned above
its core offering.
Chinese brands selling for
around $25,000 are something
that local auto makers “would
never have imagined 10 years
ago,” said Automotive Foresight’s Mr. Zhang.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B6 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
THE PROPERTY REPORT
Tax Plan Threatens Affordable Housing
Rehabilitation of older
projects could be
hampered if lucrative
breaks are eliminated
Work crews are about to begin a $160 million effort to upgrade 842 subsidized housing
units in Newark, N.J., where
the poverty rate is high and
residents pay as little as $80 a
month for rent because their
incomes are so low.
Financing for the effort,
which includes a sale and refinancing of the properties, is
coming mostly from the sale of
low-income housing tax credits
and a combination of tax-exempt and taxable debt provided through Freddie Mac
and Greystone & Co., a leading
real-estate finance and investment company.
But the financing machine
for such rehabilitation projects
is now in jeopardy, a potential
casualty of the push to overhaul the U.S. tax code.
Backers of the Newark program, which wouldn’t be affected by the tax overhaul, argue that preserving existing
affordable housing is as important as creating new units.
That is often missed in the
current debate over affordable
housing, which has been heating up nationwide as supply
drops to historic lows, industry executives say. Over the
decades, tens of thousands of
affordable units have been lost
to neglect, disrepair and, most
recently, changing markets.
“A lot of affordable housing
is in areas that are beginning
to gentrify,” said Richard
Rohrman, chief executive of
NEW COMMUNITY CORPORATION
BY PETER GRANT
The Roseville Senior building in Newark, N.J., is one of the subsidized housing projects managed by New Community Corp.
New Community Corp. The
nonprofit organization manages the Newark units, located
in four properties and more
than 30 buildings, some of
which are restricted to senior
citizens. “The importance of
what we’re doing is to give
these units another 25 years of
life as affordable housing.”
The House version of the
bill to overhaul the tax system,
passed this month, would kill
the tax exemption on “private
activity” bonds, which are
used by affordable-housing developers, as well as hospitals,
nursing homes and charter
schools, to finance facility
projects. If the tax bill becomes law, affordable-housing
production would be reduced
by about 700,000 units during
the next decade, according to
an analysis by Novogradac &
Co., an accounting firm specializing in real estate.
Apart from construction,
the changes also could cripple
the business of rehabilitating
existing affordable-housing
units. No one tracks the
amount spent on upgrades
each year, but 57% of privateactivity bond proceeds were
used for acquisition and rehab
of affordable rental housing in
2015, according to Novogradac.
“Our anecdotal experience
suggests this trend is continuing, if not increasing the use of
[private-activity bonds] for rehabilitation of rental housing,”
said Michael Novogradac,
managing partner at the firm.
Republican proponents of
the House tax bill say numerous tax exemptions need to be
eliminated to finance cuts in
personal and corporate rates
that would be included. Eliminating the exemption on private-activity bonds would generate
$38.9
billion
of
additional tax revenue over a
decade, according to the nonpartisan Joint Committee on
Taxation, which prepares official estimates for Congress.
Private-activity
bonds
would be retained by the version of the bill passed by the
Senate Finance Committee.
Congressional Republicans and
the Trump administration hope
to have a final bill by year-end.
Maintenance and upgrades
are crucial to preserve affordable housing, especially decades-old projects.
The Newark properties were
mostly developed in the 1970s
PLOTS &
PLOYS
Hong Kong Offices
Get Style Makeover
BILLY H.C. KWOK/BLOOMBERG NEWS
A Hong Kong real-estate tycoon opened the first phase of
a billion-dollar redevelopment
project with a new skyscraper
that will test whether his formula for artsy office space can
transform an old waterfront
into a thriving business hub.
Adrian Cheng, executive
vice chairman of property giant New World Development,
envisions a blend of polished
style for the 918-foot-tall office-and-hotel tower at the
edge of the Tsim Sha Tsui district, with a limestone-clad exterior, sleek white walls and
art pieces handpicked by Mr.
Cheng.
“I don’t want to use the
word ‘office’ even, it’s an atelier space,” said Mr. Cheng, referring to the French name for
an artist’s workshop. He is the
grandson of New World’s late
founder, Cheng Yu-tung.
The skyscraper, called K11
Atelier, anchors the Cheng
family’s $2.6 billion Victoria
Dockside project. The waterfront area is a popular shopping and tourist destination,
and the project is expected to
revitalize the area.
While other gigantic waterfront projects such as Canary
Wharf in London took years to
take off, Mr. Cheng said his
blending of office space with
upscale art and design will be
a hit with big-name companies
trying to lure younger workers.
“The new generation of talent and workers, they want to
have a space where they can
be an artist,” Mr. Cheng said.
“Companies want to stimulate
and motivate workers to express themselves.”
New World also is set to
gain from a cultural shift under way in Hong Kong. As
more mainland Chinese firms
pile into Hong Kong’s traditional centers of banking and
finance, pushing up prime office rents, more multinational
companies based in those hubs
are moving out.
Mainland Chinese firms
now make up about 17% of
Grade A office stock in Hong
Kong’s Central District, compared with 13% four years ago,
said Marcos Chan, head of research at CBRE Hong Kong. In
the latest example, this month
billionaire Li Ka-shing closed
on a $5 billion deal to sell his
stake in a Central District skyscraper to a Chinese stateowned firm.
At least two large foreign
banks—Japan’s Mizuho Bank
and Taiwan’s Fubon Commercial Bank—last month moved
into the K11 Atelier tower.
In all, a little more than a
quarter of the commercial
real-estate space in the 66story building is offices, and
the rest will be used for a
planned Rosewood hotel and
residences, a luxury chain the
Chengs also own. Roughly 70%
of the office space is now
leased.
One of the early concerns
about London’s Canary Wharf
was that it came alive during
the 9-to-5 workday but fell
dead at night, said Forth
Bagley, a principal at New
York-based Kohn Pedersen
Fox Associates, which designed K11 Atelier.
New World hopes its space
will be more active, by making
it easy for people to walk from
the street curb to the waterfront Avenue of the Stars
promenade, a walkway famous
for showing the handprints of
Chinese and Hong Kong movie
stars and for panoramic views
of the Hong Kong skyline.
Adrian Cheng prefers to refer to the offices as ‘atelier’ space.
REITS
Firms Raise Funds
In Tough Climate
NKF
BY DOMINIQUE FONG
and 1980s, according to Chris
Eisenzimmer, director of Greystone Affordable Development,
the Greystone unit orchestrating the recent deal. Back then,
low-income housing often was
financed by limited partners
who purchased them primarily
for the tax losses, he said.
New Community,created after the 1968 riots in Newark,
has owned a small piece of the
equity and managed them. Rent
has been subsidized through
the Section 8 program of the
U.S. Department of Housing
and Urban Development.
The Low Income Housing
Tax Credit program became
the primary source of equity
financing for affordable housing in 1986, when President
Ronald Reagan pushed through
the last major tax-code overhaul. Part of the tax-credit
program would be preserved
under the House bill but the
part tied to private-activity
bonds would effectively end.
As part of the Newark deal,
the original limited partners
are selling the projects for
$75.9 million to tax-credit investors. But the sellers, who
achieved their investment
goals through tax losses, aren’t
pocketing much of the proceeds, Mr. Eisenzimmer said.
Rather, a portion of the proceeds are going to pay off existing debt on the properties.
Also, the original limited partners are reinvesting much of it
back in the properties in the
form of a subordinate loan, Mr.
Eisenzimmer said. “A lot of
these transactions may not
pencil out unless you scale back
construction or if you have sellers like these who are willing
to work with you,” he said.
—Richard Rubin
contributed to this article.
River Valley Mall in Lancaster, Ohio, was marketed last year through an online auction.
Sales of Malls Go Online
BY ESTHER FUNG
With more retailers shuttering stores across the U.S.,
some property owners and
managers are trying to unload
weak malls at a faster pace.
The quickest and easiest
way to do that, it turns out, is
online.
In July, Midway Mall in
Elyria, Ohio, was sold for $4.5
million via an online auction
hosted by Ten-X Commercial,
an online real-estate transaction marketplace. Privately
held commercial real-estate investment and management
firm Namdar Realty Group
purchased the single-story,
585,606-square-foot mall for
$8 a square foot, according to
data from Real Capital Analytics.
The mall, built in 1965, was
foreclosed on last year and its
mortgage was transferred to
LNR Partners LLC, a special
servicer that oversees workouts of troubled loans.
As online shopping takes a
bigger bite out of bricks-andmortar retail, landlords are using some of the same tools
that helped make their properties obsolete in the first place.
Sellers and their brokers increasingly are looking to sell
online, said Robert Drury, senior vice president of Ten-X’s
commercial division. The web’s
reach “means that sellers are
able to more easily find the
right buyer for their property
and ensure they receive maximum value,” Mr. Drury said.
So far this year, Ten-X Commercial has done 10 mall
transactions, he said. The com-
pany started offering online
mall auctions in 2012 and has
done 50 transactions thus far.
Potential buyers are encouraged to do their due diligence
before the auction to confirm
the property fits their investment strategy before competing with others in the bidding
process, which could last as
long as two days or as little as
two hours.
Typically, the property is
marketed for a period of 45 to
60 days before the auction,
and the winner has to pay a
nonrefundable deposit within
a day of the auction and close
the transaction within 30 days.
“Online auctions for properties have evolved over the past
five years. They have become
more
mainstream,”
said
Thomas Dobrowski, executive
managing director of capital
markets at real-estate services
firm Newmark Knight Frank.
Online auctions include
standardized contracts and deposits, which lead to more certainty of execution, said James
Shevlin, managing director at
CWCapital LLC, a commercial
real estate services firm that
owns Real Insight Marketplace, an online auction platform. Real Insight Marketplace
on Tuesday closed on a sale of
a mall in Moreno Valley, Calif.,
for $60.25 million that received bids from six interested
buyers.
Another firm, Real Capital
Markets, which also runs an
online auction program, said it
carried out 68 mall transactions in 2016 and 57 year to
date, up from 38 malls in 2015.
“Sellers want a transparent
online marketplace for their
properties,” said Steve Shanahan, executive managing director at Real Capital Markets,
adding that he expects more
mall transactions to be carried
out online and they won’t be
limited to distressed or weak
malls.
Mr. Dobrowski had marketed two malls this year that
were transacted via online
auctions: Vista Ridge Mall in
Lewisville, Texas, and River
Valley Mall in Lancaster, Ohio.
Some online buyers with
cash on hand simply prefer not
to compete with buyers who
require more time for evaluation or to secure loans.
“We don’t feel that we’d get
the value if it wasn’t done that
way,” said John Bushman,
chairman and chief executive
officer of ICA Properties Inc.,
an Odessa, Texas, commercialproperty firm that recently
bought Vista Ridge Mall for
$18.1 million through an online
auction. The mall was ICA’s
first online property purchase.
The two-level, 1.05 millionsquare-foot mall had been valued at $144 million in 2001,
before declining foot traffic
and increased store closures
began to take a toll. The mall
was appraised at $46 million
in June 2016 and then at $34.5
million in February 2017, according to real-estate research
firm Trepp Inc.
Most mall transactions are
still done the old-fashioned
way, using brokers. But brokers said some assets are better suited for online auctions,
including lower-tier malls that
fetch less than $20 million.
Two big real-estate investment managers have finished
raising capital for private-equity
funds despite concerns about rising interest rates and the aging
of a long-running bull market.
CBRE Global Investors, the
asset-management arm of CBRE
Group Inc., closed a $1.34 billion
fund that will focus on investing
in the Americas, primarily the
U.S., according to Vance Maddocks, the firm’s chief investment officer of the Americas.
Meanwhile, LaSalle Investment Management has closed
on a debt fund that focuses on
Western Europe, primarily the
U.K., with £804 million ($1.07 billion) in commitments. This is the
third European debt fund raised
by LaSalle, which has become
one of the largest nonbank realestate lenders on the continent,
according to Amy Klein Aznar,
LaSalle’s head of debt investments.
The closings come at a time
when the fundraising environment has become tougher for
private-equity firms and other
real-estate investment managers. So far this year, private-equity real-estate firms have raised
$95.9 billion, according to research firm Preqin. Last year
firms raised $126 billion, down
from $135.1 billion in 2015,
Preqin said.
—Peter Grant
MORTGAGES
Loans Feature Tiny
Down Payments
The down payment has been
a big obstacle in recent years for
renters looking to buy their first
homes. A new mortgage aims to
ease the burden.
Home Partners of America, a
rent-to-own company, is offering
a mortgage product to tenants
that applies some of the appreciation in their home’s value during
the time they have lived there
toward reducing the down payment. In areas with even modest
home-price appreciation, that
could reduce the down payment
requirement to almost nothing.
To qualify, tenants must have
paid their rent on time for two
consecutive years and be considered first-time buyers, meaning
they haven’t owned a home in
the past three years. Home Partners was started about five
years ago and has purchased
nearly 8,000 homes in more
than 50 metropolitan areas.
—Laura Kusisto
THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | B7
BUSINESS NEWS
BY LILLIAN RIZZO
Troubled telecommunications company Avaya Inc. received court approval of its reorganization plan Tuesday,
clearing the way for it to exit
bankruptcy after cutting its
debt load by about $3 billion.
The capstone event for the
company comes less than a year
after it sought bankruptcy protection because of a hefty debt
load, much of which stemmed
from a leveraged buyout, and a
string of losses over the years.
$3B
Telecom company’s debt load
was cut by this amount.
Judge Stuart Bernstein of
the U.S. Bankruptcy Court in
New York signed off on the
plan Tuesday.
“This is a momentous day,”
said Avaya attorney Jonathan
Henes. “This case was filed on
Jan. 19 and got done in less
than a year. ”
Although the company’s
path to reorganization was a
bumpy road, Avaya’s chapter 11
plan “received overwhelming
support,” Mr. Henes added.
Earlier in the court proceedings the company and its creditors, at the suggestion of Judge
Bernstein, decided to bring their
differences to mediation.
The changes in the revised
reorganization plan were
aimed at winning the support
of second-lien creditors, which
came down to allocating the
group a 4% interest in the restructuring company, an increase from the 1% offered under the original plan. In
addition, the second-lien creditors will receive warrants for
an additional 5% equity stake.
The revised plan also included an increased payment to
the Pension Benefit Guaranty
Corp., Avaya’s largest unsecured
creditor. The payment was increased to $340 million from
$300 million, while the equity
stake was lowered from 7.5% to
5.5%, according to court papers.
Avaya struggled to keep up
with its pension plans, which
were depleted after years of ultralow interest rates. The company’s qualified pensions, which
have always been backed by the
PBGC, cover about 1,700 active
workers and 13,000 retirees,
court papers show. These plans
had paid out $55 million to
beneficiaries per quarter.
A small portion of these retirees also received supplemental pension checks, which
were stopped early in Avaya’s
bankruptcy process. These
supplemental pensions will be
treated as unsecured claims,
according to court papers.
General unsecured creditors,
owed an estimated $305 million, will see a recovery of $57.5
million in cash. Meanwhile,
first-lien creditors will take a
90.5% equity stake, or an estimated 92.6 cents on the dollar.
While the plan seeks to cut
billions of dollars in debt by
giving creditors control of the
company, Avaya will exit bankruptcy protection with fresh
debt on its balance sheet.
Avaya secured nearly $3 billion in exit financing. The company received commitments
from a syndicate of banks led
by Goldman Sachs & Co. and
Citibank N.A. for $2.4 billion in
an exit loan and a $300 million
asset-based facility, court papers show. This, combined with
$500 million in new second-lien
debt, will allow Avaya to
emerge from chapter 11 protection with more than $3 billion
in debt, nearly half of its prebankruptcy debt load.
ANDREW SPEAR FOR THE WALL STREET JOURNAL
Avaya to Emerge
From Bankruptcy
Meetup co-founder Scott Heiferman at the company’s New York office in 2015. Its events are mostly at night and on weekends.
WeWork to Acquire Meetup
Deal is part of effort
by $20 billion startup
to boost usage rate
during nonworking hours
BY AUSTEN HUFFORD
WeWork Cos. said it is buying Meetup Inc., as the richly
funded office-sharing company
seeks to bring more visitors
into its growing array of real
estate.
With the deal, WeWork
hopes to increase its usage
rate during nonworking hours.
Most traditional clients use
spaces on weekdays, while
Meetup-organized
events
mostly happen on nights and
weekends.
Meetup helps organizations
and clubs host events and
boost membership. More than
100,000 people have attended
meetups at WeWork locations
so far this year, the companies
said Tuesday.
Financial terms of the deal
weren’t disclosed.
WeWork’s purchase of
Meetup comes as more companies are considering in-person
networks to drive growth. Earlier this month, Facebook Inc.
relaunched a new app called
“Facebook Local” focused on
events and local restaurants.
The move came after Chief Executive Mark Zuckerberg
changed Facebook’s mission
statement and said it would
work to help fix a “striking decline in the important social infrastructure of local communities.”
Earlier this year, Snap Inc.
launched a new maps feature
for its flagship app, allowing
opted-in users to see the location of their friends, helping
them connect in real life.
WeWork has pitched itself
to investors as a “physical social network” for millennials.
The company takes on long-
term leases for raw office
space and builds out the interior with flexible spaces and
modern design that it then
subleases for terms as short as
a month.
Meetup, which was founded
in 2002 and, like WeWork, is
based in New York, charges
event organizers a monthly fee
depending on a group’s size.
Organizers of Meetups can
then choose to charge event
attendees.
Meetup said more than
15,000 events are held each
day through its platform.
In recent months, WeWork,
which had been valued at $20
billion, has unveiled many
deals and new ventures to help
expand its business. WeWork
recently said it would buy Lord
& Taylor’s flagship New York
City store for $850 million to
turn it into its headquarters.
The company also purchased
a
large
stake
in
Wavegarden, which makes
Group Efforts
Meetup and WeWork figures:
15,000+ Meetups
daily, mostly weeknights, weekends
10 million square feet
Of WeWork space, mostly
occupied on weekdays
100+ countries
are home to Meetups
58 cities, 17 countries
are home to 170+ WeWork spots
Source: the companies
THE WALL STREET JOURNAL.
wave pools; launched fitness
club Rise by We; bought a coding academy called the Flatiron
School that offers crash courses
in technology; and announced
plans for an elementary school
called WeGrow that aspires to
teach children about the virtues
of entrepreneurship.
ADVERTISEMENT
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B8 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
BUSINESS NEWS
Unilever Tilts Toward Unification Activist
Takes Jab
Anglo-Dutch firm says
moving to single share
class would be good
for investors and itself
At Clariant
BY BRIAN BLACKSTONE
Ice cream lovers in Denver come out for Free Cone Day at Ben & Jerry’s. The brand is owned by Unilever.
tive Paul Polman fended off an
unsolicited $143 billion bid by
Kraft Heinz Co. earlier in 2017,
he promised a number of measures to appease shareholders,
including buybacks, a higher
profit-margin target and a strategic review of its underperforming margarine business.
Mr. Polman also said the
company
would
review
whether to end its unusual dual
structure, a setup particular to
big firms with British and
Dutch heritage. Royal Dutch
Shell PLC, for instance, oper-
ADVERTISEMENT
Business Real Estate
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FLORIDA
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All Rights Reserved.
AT&T
Continued from page B1
that rival cable and online
video distributors pay more
for the right to carry Time
Warner’s networks.
AT&T and Time Warner
criticized that assertion, citing
Google’s new “YouTube TV”
service, which launched with
the four main broadcast networks, ESPN and other channels, but no Time Warner
channels.
That example “confirms not
only that the television ecosystem is awash in content,
but that Time Warner’s networks are not, in any antitrust
sense of the word, essential to
attracting and retaining subscribers,” the companies said
in the filing.
The companies also said
that, contingent on the closing
of the merger, Time Warner’s
Zooey Deschanel makes a guest appearance on Turner Broadcasting’s late-night television show ‘Conan.’
Turner division has offered
video distributors licensing
terms for seven years that entitle those distributors to arbitration if they can’t reach satisfactory agreements to carry
the Turner networks, which include TBS, TNT and CNN.
Turner also would be forbidden from “going dark” on
those video distributors during
any impasse that results in arbitration, the companies said.
A Justice Department
spokesman said the government was reviewing the companies’ filing.
The department’s lawsuit,
filed Nov. 20 in a Washington,
D.C., federal court, heralds one
of the biggest antitrust cases
in many years.
U.S. District Judge Richard
Leon hasn’t yet scheduled any
initial proceedings in court.
In a separate filing late
Tuesday, AT&T and Time Warner proposed that Judge Leon
start a trial on Feb. 20, 2018
and schedule 10 days of proceedings. The companies said
they were at an impasse with
the government on reaching a
scheduling timeline. They said
the Justice Department was
proposing that a trial start on
May 7, 2018, a date that would
come after the merger agreement is set to expire on April
22, 2018.
ADVERTISEMENT
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BANKRUPTCIES
OHIO
NOTABLECOMMERCIAL
PROPERTIES
(800) 366-3975
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Moving to a single share
class would also eliminate certain administrative burdens.
Board members must attend
back-to-back shareholder meetings in London and Rotterdam
once a year.
Unilever also said Tuesday
that it stood by its 2017 guidance. The company said it continued to expect underlying
sales growth of 3% to 5%, an
improvement in underlying operating margin of at least 1 percentage point and strong cash
flow delivery.
EVERY WEDNESDAY
ier options or more local provenance.
Critics have complained Unilever’s structure is unwieldy
and can interfere with deal
making, including by hindering
the company’s ability to use
stock to make big acquisitions.
The shares of the two operating companies, Unilever PLC
and Unilever NV, aren’t convertible and the value of a single share in each company
must remain equal. That makes
it tough to issue new stock to
fund a deal.
%
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ated for decades as two distinct companies, loosely joined
under a common management
team and board, until 2004.
Unilever is facing an industrywide downturn buffeting
consumer-goods firms. It and
its competitors, including
Procter & Gamble Co. and
Nestlé SA, are struggling with
rapidly changing consumer
tastes. Sales have slowed as
shoppers shy away from the
global brands these companies
make and toward smaller
brands that often offer health-
ZURICH—Activist investor
White Tale Holdings accused
Clariant AG of misrepresenting
their discussions about the
company’s future, escalating
the war of words between the
Swiss chemicals firm and
shareholders who derailed a
merger with U.S.-based Huntsman Corp. last month.
“We have never advocated
the breakup of the company despite the false claims by Clariant,” said White Tale, which
with a 20%-plus stake is the
company’s largest shareholder.
It wants an investment bank to
conduct an independent review
of all strategic alternatives.
The comments come after
Clariant on Friday dismissed
most of the investor’s demands,
including the hiring of an investment bank to explore strategic options, which the company characterized as an effort
to solicit bids for its assets.
Clariant did offer White Tale
one seat on its board, although
this was short of the three positions the activist had sought.
The company reiterated its
views Tuesday and said it
would give White Tale more insights into its strategy if the investor agrees to sign a nondisclosure agreement.
“Clariant’s board of directors maintains that the strategic review desired by White
Tale would be only limited to
portfolio management without
strategic insights and thus intended to solicit bids for parts
or the whole of Clariant,” the
company said.
White Tale said it met last
week with Clariant’s board but
dismissed the meeting as “perfunctory,” saying it lasted less
than two hours.
TBS/EVERETT COLLECTION
LONDON—Unilever PLC’s
board is leaning toward unifying the Anglo-Dutch consumergoods company’s dual governance structure, a move that
investors have said over the
years could help streamline decisions and ease deal making.
The current structure—essentially a combination of a
British and a Dutch operating
firm, each with its own
shares—has been in place since
Lever Bros., an English soap
maker, and Margarine Unie, a
Dutch margarine producer,
agreed to join forces in 1929.
The structure has evolved since
then, but the company continues to operate like separate legal entities fused under a
groupwide set of senior managers and directors. Unilever’s
current head offices are split
between London and Rotterdam in the Netherlands.
In a statement Tuesday,
Unilever said the board had
determined that “unification
with a single share class would
be in the best interests of Unilever and its shareholders,”
providing “greater ongoing
strategic flexibility for valuecreating portfolio change.” No
decision has been reached yet,
however, and a structural review continues.
The company, which makes
Hellmann’s mayonnaise and
Ben & Jerry’s ice cream, said
whatever the final decision, it
would maintain listings in the
Netherlands, the U.K. and the
U.S. and would remain subject
to British and Dutch corporate
governance codes.
After Unilever Chief Execu-
HELEN H. RICHARDSON/GETTY IMAGES
BY SAABIRA CHAUDHURI
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! 221= THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | B9
NY
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© 2017 Dow Jones & Company, Inc.
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© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
B10 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
NY
NEW HIGHS AND LOWS
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The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and
Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session.
% CHG-Daily percentage change from the previous trading session.
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Tuesday, November 28, 2017
Stock
CAREERS
52-Wk %
Sym Hi/Lo Chg Stock
NYSE highs - 215
Aflac
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CW
Dana
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Center in Rolla , MO is looking for a
General Cardiologist.
Send CV to Beth Hedrick
ehedrick@pcrmc.com
86.40
25.65
48.40
17.90
9.42
148.49
70.93
119.46
64.80
80.24
15.85
56.73
72.03
91.25
222.58
13.52
15.41
59.05
39.00
36.54
25.64
26.83
39.41
66.18
86.85
56.63
493.56
14.88
268.01
39.15
54.35
31.50
50.82
54.86
46.80
109.24
99.18
30.95
242.55
85.05
26.25
78.30
81.01
51.35
28.40
125.31
32.64
215.69
124.10
32.83
94.66
53.98
149.81
32.35
140.88
83.95
26.38
107.91
53.58
11.96
50.05
85.91
25.72
45.34
156.64
31.95
25.18
14.84
15.76
66.90
21.95
86.06
31.07
32.35
25.40
25.60
104.90
21.71
59.12
18.66
45.33
76.53
26.11
45.33
176.77
153.13
46.40
50.14
71.70
53.70
132.77
164.54
78.21
139.26
77.40
58.59
154.72
25.79
13.76
117.55
54.57
30.02
59.36
70.60
29.49
195.03
68.44
179.61
50.94
61.58
201.47
34.60
32.90
46.45
50.12
14.83
5.51
1.0
...
1.5
7.5
0.5
0.4
1.8
2.2
1.7
1.5
2.3
1.4
2.0
0.7
1.0
14.1
1.0
3.1
2.6
2.1
-0.1
0.7
1.9
2.0
1.8
3.2
2.3
2.1
0.9
3.9
2.3
0.9
1.0
1.2
8.5
1.9
-0.3
1.5
0.7
2.0
2.8
1.6
2.8
4.1
3.8
2.9
1.2
0.4
2.1
2.2
0.3
4.8
0.4
2.0
0.9
1.2
0.5
1.7
1.4
...
3.0
2.3
-1.2
2.4
0.5
1.8
3.0
3.3
1.0
0.8
2.4
-0.4
3.3
1.4
0.5
0.8
-0.3
0.2
3.6
6.2
-0.6
0.2
0.3
1.1
1.4
1.5
2.0
1.3
0.1
2.2
1.4
2.3
2.2
1.5
4.0
0.3
2.0
0.4
1.5
2.3
3.9
4.1
1.9
2.5
...
1.0
0.9
1.9
0.4
1.3
2.5
1.6
1.6
2.2
1.0
-0.3
2.8
52-Wk %
Sym Hi/Lo Chg Stock
MGIC Investment MTG
MI Homes
MHO
MSCI
MSCI
ManchesterUnited MANU
Manpower
MAN
Mastercard
MA
McDonalds
MCD
MeritageHomes MTH
MetropolitanBk MCB
MichaelKors
KORS
ModineMfg
MOD
MohawkInds
MHK
MonmouthRealEst MNR
NL Industries
NL
NatlStorage
NSA
NewGermanyFund GF
NewIrelandFundRt IRLr
NewRelic
NEWR
NextEraEnergyUn NEEpR
NomadFoods
NOMD
NortelInversora NTL
NorthropGrum
NOC
NuSkinEnts
NUS
ONE Gas
OGS
OnAssignment ASGN
OneLiberty
OLP
OwensCorning
OC
PGT Innovations PGTI
PNM Resources PNM
PVH
PVH
PennyMacFinS PFSI
PerkinElmer
PKI
PolarisIndustries PII
Praxair
PX
Primerica
PRI
PrincipalFin
PFG
Progressive
PGR
ProPetro
PUMP
ProtoLabs
PRLB
PublicStoragePfdF PSApF
PulteGroup
PHM
PureStorage
PSTG
RELX
RENX
RELX
RELX
RedHat
RHT
ReinsGrp
RGA
RingCentral
RNG
RobertHalf
RHI
RoperTech
ROP
SPX FLOW
FLOW
SabineRoyalty
SBR
SchwabC
SCHW
SendGrid
SEND
SimpsonMfg
SSD
SmithAO
AOS
Spire
SR
StanleyBlackDck SWK
SteelPtrsPfdA
SPLPpT
StifelFinNts47
SFB
Stoneridge
SRI
Synnex
SNX
SynovusFin
SNV
TCF Fin
TCF
TRI Pointe
TPH
Teleflex
TFX
Thermon
THR
ThorIndustries
THO
Toll Bros
TOL
TopBuild
BLD
Torchmark
TMK
TrancntlRlty
TCI
TransUnion
TRU
Trex
TREX
Tri-Continental TY
Trinseo
TSE
TysonFoods
TSN
USG
USG
UnitedRentals
URI
UnitedHealth
UNH
UnumGroup
UNM
UsanaHealth
USNA
Visa
V
Valhi
VHI
ValidusPfdB
VRpB
ValmontInds
VMI
Vantiv
VNTV
VishayPrecision VPG
Visteon
VC
VMware
VMW
Vonage
VG
VoyaFinancial
VOYA
WattsWater
WTS
WellsFargoPfdV WFCpV
Wiley B
JW.B
Wiley A
JW.A
Winnebago
WGO
Xylem
XYL
ZionsBancorpPfdH ZBpH
14.83
36.27
129.97
22.15
130.58
154.65
171.38
53.10
43.29
57.92
23.80
280.46
17.93
15.16
26.84
19.67
0.36
59.90
58.03
16.90
46.35
309.24
67.72
78.40
64.54
27.14
89.62
16.30
45.40
138.66
20.20
73.96
127.80
156.40
103.15
70.26
52.82
18.84
95.50
25.46
33.37
19.27
23.29
24.01
129.61
162.02
49.80
55.98
265.33
43.45
44.68
47.27
22.21
59.75
62.51
80.40
169.19
21.38
26.20
23.18
137.44
48.17
20.21
18.30
271.23
22.75
155.46
49.51
68.00
87.66
30.53
56.21
116.21
26.41
73.90
81.50
36.85
156.80
216.31
55.40
72.25
113.62
6.64
25.93
170.20
76.22
27.90
132.82
127.57
10.07
43.02
74.55
26.82
59.66
59.85
54.90
68.54
26.14
3.1
1.3
0.5
-0.9
1.8
0.8
1.4
3.2
-0.1
2.2
3.1
1.7
-0.6
6.8
-0.7
0.4
11.4
0.9
0.1
4.6
0.3
1.4
1.8
1.0
2.4
1.5
2.0
2.2
0.6
1.7
1.0
0.3
3.4
2.8
3.6
2.0
1.4
3.8
2.5
0.1
1.4
2.8
0.6
0.8
0.8
1.3
2.9
1.8
1.7
1.9
1.3
3.0
1.5
2.1
1.5
1.7
1.9
0.8
-1.0
1.6
3.8
3.4
9.3
2.4
0.8
3.2
13.3
2.7
3.5
2.1
...
...
2.8
0.2
0.8
-0.1
3.3
2.1
1.8
2.4
3.6
0.9
-3.8
-0.2
1.9
1.6
4.5
1.8
0.9
0.2
2.6
2.6
0.3
2.1
1.8
7.8
1.3
0.1
NYSE lows - 66
4.65 -2.1
AdvantageOil
AAV
28.51 -1.2
Alexander&Baldwin ALEX
AllerganPfdA
AGNpA 602.70 -0.2
168.43 -0.3
Allergan
AGN
18.07 -2.3
AlticeUSA
ATUS
31.19 -0.8
AnadarkoPeteUn AEUA
42.81 -0.6
AndeavorLog
ANDX
13.00 -9.3
AzurePowerGlbl AZRE
1.80 -0.6
BellatrixExplor
BXE
15.15 0.3
BlkRkMuni20
BKK
44.81 -1.8
BuckeyePtrs
BPL
21.45 -2.0
CONSOLEnergyWi CEIXw
10.00 -0.4
CapitolInvtIV
CIC.U
8.82 -1.5
CenterCoastMLP CEN
13.16 0.5
CenturyLink
CTL
7.07 -1.0
ClearBridgeAmEn CBA
12.21 -1.7
ClearBridgeEnMLPFd CEM
9.97 -1.5
ClearbridgeEngyMLP EMO
10.46 -1.6
ClearbridgeEnMLPTR CTR
Only $29!
You would be hard pressed
to find a timepiece of this
outstanding quality
and precision at
this price.
52-Wk %
Sym Hi/Lo Chg
ColonyNorthStar CLNS
DeutscheMuniIncmTr KTF
EQT Midstream EQM
EXCO Res
XCO
EastmanKodakWt KODK.WS
EastmanKodak KODK
EtnVncFR2022 EFL
EnbridgeEnergy EEQ
EnbridgeEnPtrs EEP
EnergyTransfer ETP
FidcryClymrOppFd FMO
FourSeasonsEduc FEDU
GenesisHealthcare GEN
GS MLPEnergyRen GER
GS MLP IncmOpp GMZ
GrupoTelevisa
TV
HamiltonBeach HBB
InvescoMuniOpp VMO
InvestmentTech ITG
JustEnergy
JE
KingswayFin
KFS
NuSTAR EnPfdA NSpA
NuSTAR PfdB
NSpB
NuSTAREnergy NS
NuSTAR GP
NSH
NuvEMDebt2022 JEMD
NuvEnerMLPTR JMF
NuvMN QualMuni NMS
NuvNY MuniVal2 NYV
PlainsAllAmPipe PAA
RiverNDoubleLine OPP
SEACOR Marine SMHI
ScorpioTankers STNG
Sea
SE
SocialCapHed
IPOA
SpectraEnerPtrs SEP
SummitMidstream SMLP
TC PipeLines
TCP
TPGPaceEnergyA TPGE
TallgrassEnerGP TEGP
TallgrassEnPtrs TEP
TortoiseEnerInf TYG
TortoiseMLPFund NTG
Transmontaigne TLP
WeatherfordIntl WFT
WstAstCpLoanFd TLI
WesternGasEquity WGP
12.05
11.76
65.93
0.61
0.01
3.20
9.36
12.03
12.25
15.69
10.56
8.79
0.73
5.32
7.91
17.24
24.56
12.24
17.74
4.08
4.85
24.12
21.84
26.86
14.05
9.71
9.89
14.65
14.16
18.59
17.96
11.66
3.18
10.82
9.90
39.20
18.49
49.57
9.69
21.79
41.38
24.30
15.00
38.15
3.08
10.30
34.76
-0.8
-0.1
-1.0
-15.5
-48.0
...
-0.2
0.4
2.6
-1.4
-1.1
2.2
-12.2
-2.9
-1.1
-3.0
-0.6
-0.2
-2.0
0.7
-3.9
-2.4
-2.8
-1.0
-1.0
0.3
-2.8
-0.1
0.1
0.3
0.3
-1.1
-1.5
-9.6
-0.2
-0.5
0.5
-0.5
-0.3
-2.8
-1.0
-2.1
-3.1
-1.8
-2.5
0.4
-0.8
NYSE Arca highs - 318
ALPS EqSecWgh EQL
ARKIndlInnovation ARKQ
ARKInnovationETF ARKK
ARKWebx.0ETF ARKW
AdvShWilshireBuybk TTFS
AGFiQ US NeutrMom MOM
AlphaCloneAltAlpha ALFA
BarcETN+FIEnhGlHY FIGY
S&PVEQTOR
VQT
Barrons400ETF BFOR
CambriaShareholder SYLD
ClearSharesOCIO OCIO
ColumbiaIndiaCnsmr INCO
ColumbiaIndiaSC SCIN
ColumbiaSustGlb ESGW
ColumbiaSustUSEqu ESGS
CnsmrDiscSelSector XLY
CS FI LC Grwth FLGE
DeepValueETF
DVP
DiamondHillVal DHVW
DirexAllCapIns
KNOW
DirexFinlBull3
FAS
DirexHmbldrBull3 NAIL
DirexMcBull3
MIDU
DirexS&P500Bl3 SPXL
DirexS&P500Bull2X SPUU
DirexSCBull3
TNA
DirexTechBull3
TECL
Direx iBillionaire IBLN
DirexNasd100EW QQQE
ETF Exposure
TETF
DJ 2xSelect Div DVYL
ETRACSMnly2xLevISE HOML
EcoLogicalStrat HECO
ETFS PlldmShr PALL
FidelityDivRising FDRR
FidelityHiDiv
FDVV
FidelityLowVol
FDLO
FidelityMSCICnDisc FDIS
FidelityMSCIFinls FNCL
FidelityMSCIIT
FTEC
FidelityMomFactor FDMO
FidelityQualFactor FQAL
FidelityValFactor FVAL
FT ConsDscAlpDx FXD
FT Dow30EW
EDOW
EqCompassRiskMgr ERM
EqCompassTactical TERM
FT DJ SelMicro FDM
FT FinlsAlpDx
FXO
FTHorizonMgdVolDev HDMV
FT IndlsAlpDx
FXR
FT Long/Short FTLS
FT MngstrDiv
FDL
FT USEquityOpp FPX
FT ValDivFd
FVD
FT ValueLine100 FVL
FT Water
FIW
FlexShMDevMktxUS TLTD
FlexMrnUSMktFtrTlt TILT
FlexShQualDivDef QDEF
FlexShQualDivDyn QDYN
FlexShQualityDiv QDF
FrankFTSEBrazil FLBR
FrankFTSE UK FLGB
FranklinLibEM
FLQE
FranklinGlbEquity FLQG
GlbX FTSE SE Asia ASEA
GlbX GuruIndex GURU
GlbX JPM US SecRot SCTO
68.48 0.6
35.02 0.7
37.75 1.1
46.71 0.8
69.41 1.3
25.31 -0.1
42.57 0.5
167.44 1.1
155.08 0.9
41.32 1.5
36.84 1.6
26.47 0.4
47.86 0.7
22.32 -0.2
30.93 0.7
31.05 0.9
95.75 1.1
223.02 0.8
30.43 1.9
31.35 0.8
43.00 1.4
63.32 5.2
87.50 4.6
46.25 4.3
43.50 3.0
48.16 1.8
70.67 4.7
116.55 0.8
32.13 0.3
43.03 0.7
18.36 1.8
70.36 2.3
58.40 6.7
43.08 0.1
98.23 2.2
30.14 1.2
28.16 1.1
30.01 0.9
37.91 1.2
39.51 2.4
51.07 0.2
31.34 0.6
31.19 0.9
31.77 1.2
40.71 1.9
21.44 1.3
21.58 0.9
21.49 0.6
48.09 1.5
31.00 1.4
34.01 0.7
38.87 1.5
38.52 1.3
29.49 1.2
67.57 0.7
30.71 1.2
23.63 0.7
48.67 1.5
69.80 0.4
110.09 1.3
43.29 0.9
42.79 1.0
43.89 1.0
25.45 2.2
25.20 0.4
33.92 0.8
30.34 0.5
16.69 0.8
29.04 0.5
25.98 1.5
Energy
Propane,tet,Mont Belvieu-g
1.0068
Butane,normal,Mont Belvieu-g
1.0291
2.880
NaturalGas,TranscoZone6NY-i
2.970
NaturalGas,PanhandleEast-i
2.410

NaturalGas,Opal-i
2.620
NaturalGas,MarcellusNE PA-i
2.350
“Are you kidding?
What a great watch
at a ridiculous price.
Thank you Stauer!”
NaturalGas,HaynesvilleN.LA-i
2.760
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
59.850
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
12.100
Metals
— Gitto, Hicksville NY
Y
we’re busy revolutionizing the watch industry
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† Special price only for customers using the offer code versus
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Stauer
0.8
1.2
1.0
0.3
0.9
0.8
1.1
1.2
2.2
0.5
0.7
1.6
1.1
1.7
1.8
0.3
1.0
0.7
3.1
0.8
0.7
0.3
1.4
0.7
0.8
1.0
0.4
1.3
1.2
0.5
1.0
1.4
1.7
1.0
1.2
2.6
1.8
0.2
1.1
0.6
1.0
0.8
0.6
1.0
0.7
0.6
2.3
0.7
1.0
0.8
1.0
0.4
1.2
1.1
0.4
1.3
0.8
0.6
1.0
1.4
1.4
1.6
1.8
1.0
1.1
1.0
0.4
0.6
1.6
1.0
1.2
0.6
1.5
0.8
1.5
1.8
1.0
0.2
0.2
0.9
1.0
1.9
0.6
0.9
1.2
1.1
0.5
0.9
1.4
0.5
1.4
1.0
0.2
0.4
0.4
1.1
0.9
0.3
1.2
1.5
0.3
0.5
1.0
1.9
1.6
0.7
0.7
1.3
0.4
1.2
1.0
0.9
0.8
...
1.4
0.9
0.9
1.0
1.2
0.3
0.8
1.4
...
0.8
1.4
2.1
3.6
ProShrUltraInd UXI
ProShrUMdCp400 MVV
ProShrUltraQQQ QLD
ProShrUltraRus UWM
ProShrUltraS&P SSO
ProShrUlTech
ROM
ProShUltDow30 UDOW
ProShUltMC400 UMDD
ProShUltRus2000 URTY
ProShUltS&P500 UPRO
RenaissanceIntlIPO IPOS
RivFrDynUSDiv RFDA
RivFrDynUSFlex RFFC
SPDRMFSSysValueEqu SYV
SPDRMSCIACWIIMI ACIM
SPDRACWILowCarbon LOWC
SPDRMSCIEAFEStrat QEFA
SPDR NYSE Tech XNTK
SPDRPtfMC
SPMD
SPDRS&P500Value SPYV
SPDRS&P500Growth SPYG
SPDRS&P500HiDiv SPYD
SPDRPtfSC
SPSM
SPDR Ptf TSM SPTM
SPDRRuss1000Mom ONEO
SPDR S&P500MidGr MDYG
SPDR S&P400MidVl MDYV
SPDRS&P600SmallCap SLY
SPDR S&P600SCpGr SLYG
SPDR S&P600SCapVal SLYV
SPDRS&PCapitalMkts KCE
SPDRS&P500Buyback SPYB
SPDRS&P500Fossil SPYX
SPDRS&PGlbDividend WDIV
SPDRS&PHlthCareEqp XHE
SPDRS&PSft&Svs XSW
SPDRS&PTechHardwr XTH
SPDRGenderDivers SHE
SPDR US SC LowVol SMLV
SPDRSSgAIncmAllctn INKM
SchwabFundUSBrd FNDB
SchwabFundUSLrgCo FNDX
SchwabFundUSSmCo FNDA
Schwab1000Index SCHK
SchwabUS BrdMkt SCHB
SchwabUS Div SCHD
SchwabUS LC
SCHX
SchwabUS LC Grw SCHG
SchwabUS LC Val SCHV
SchwabUS MC SCHM
SchwabUS SC
SCHA
SPDR DJIA Tr
DIA
SPDREmMktSmlCp EWX
SPDR S&PMdCpTr MDY
SPDR S&P 500 SPY
SPDR S&P Div SDY
SPDR S&P Home XHB
SPDR IntlSC
GWX
SPDR STOXX Eu50 FEU
SprottPhysPlatinum SPPP
TechSelectSector XLK
UBS FIEnhGlbHY FIHD
UBS FIEnhLCGrw FBGX
USAA USA SC Val USVM
USAA USA ValMom ULVM
VanEckAfrica
AFK
VanEckEgypt
EGPT
VanEckIndiaSC SCIF
VanEckMornWideMoat MOAT
VanEckRetail
RTH
VangdExtMkt
VXF
VangdInfoTech VGT
VangdCnsmrDiscr VCR
VangdSC Val
VBR
VangdSC Grwth VBK
VangdDivApp
VIG
VangdFinls
VFH
VangdGrowth
VUG
VangdHiDiv
VYM
VangdLC
VV
VangdMegaCap MGC
VangdMegaGrwth MGK
VangdMegaVal MGV
VangdMC
VO
VangdMCGrowth VOT
VangdMC Val
VOE
VangdS&P500 VOO
VangdS&P500 Grw VOOG
VangdS&P500Val VOOV
VangdS&PMC400 IVOO
VangdS&P400Grwth IVOG
VangdS&P400Val IVOV
VangdS&P600 VIOO
VangdS&P600Grwth VIOG
VangdSC
VB
VangdTotalStk
VTI
VangdTotlWrld VT
VangdValue
VTV
VelocityShVIXShrt XIVH
WBIPwrFactorHiDiv WBIY
WBITacticalLCGD WBIE
WBITacticalLCQ WBIL
WBITacticalLCV WBIF
WBITacticalLCY WBIG
WBITacticalSMQ WBID
WisdTrCBOES&P500 PUTW
WisdTrIntlEquity DWM
WisdTrIntlLC Div DOL
WisdTrUSEarn500 EPS
WisdTrUSHiDiv DHS
WisdTrUSLCDivFd DLN
WisdTrUSLCValueFd EZY
WisdTrUSMCDivFd DON
WisdTrUSMCEarn EZM
WisdTrUSSCDiv DES
WisdTrUSSCEarn EES
WisdTrUSTotalDivFd DTD
WisdTrUSTotalEarn EXT
WorkplaceEquality EQLT
XtrkrsFTSEDevXus DEEF
XtrkrsRussell1000 DEUS
68.61 2.3 BarclaysETN+Select
120.50 2.7 CTrksETNsMillerHwd
74.14 0.5 CSX2xAlerianMLPETN
70.85 3.2 Cushing30ETN
105.46 1.9 DirexDevMktBear3
92.00 -0.2 DirexFinlBear3
84.43 3.4 DirexMcBear3
111.55 3.5 DirexRgBanksBear3X
82.88 4.8 DirexS&P500Br3
132.48 3.0 DirexS&P500Br1
23.65 2.0 DirexScBear3
31.20 1.2 DirexTechBear3
32.24 0.6 DirexZacksMLPHiIn
64.97 1.3 ETRACS Alerian MLP
78.37 0.3 ETRACS2xMLvAlerian
89.40 0.5 GlbX MLP&Energy
65.14 0.7 GlbX MLP
86.99 0.3 InfraCapMLPETF
33.41 1.4 iPathBloomGrainsTR
30.05 1.4 iPathS&PMLPETN
32.84 0.6 iPathSeasNatGas
37.33 0.9 iShCurHdgMSCIMex
30.08 1.5 JPM AlerianMLP
32.73 1.1 ProShDecRetail
76.06 1.2 ProShShtDow30
156.71 1.2 ProShShtFinls
102.40 1.4 ProShShtMC400
135.29 1.8 ProShShortQQQ
237.94 1.7 ProShShtRus2000
130.84 1.8 ProShShrtS&P500
55.55 1.5 ProShShrtSC600
59.89 1.0 ProShUltVIXST
63.80 0.8 ProShUltShtDow30
69.80 0.6 ProShShtMC400
66.82 0.8 ProShShtRus2000
70.63 0.8 ProShUltProShS&P
82.74 0.5 ProShrUSCnsmrGd
71.89 0.6 ProShUltShDow30
98.50 1.5 ProShrUSFnl
33.70 0.4 ProShUltShtQQQ
36.27 1.1 ProShrUlShtRus
36.41 1.2 ProShUltShtS&P500
37.64 1.4 ProShrUlShtSmC600
25.84 1.0 ProShrUSTech
63.63 1.0 ProShsVIXSTFut
49.88 1.1 TeucriumWheatFund
62.83 0.9 E-TRACS AlrInfr
69.94 0.5 USAgricIndexFd
53.68 1.3 VanEckHiIncmInfra
52.63 1.0
69.55 1.4
238.44 1.1
51.28 0.5 Chase
342.42 1.4 IndxPlus 03-1
262.90 1.0 SoCA Ed pfC
94.93 1.2 TrioTech
43.00 1.9 WirelessTel
37.00 0.1
36.03 1.0
9.20 0.7
AmShrHosp
64.77 0.3
AsankoGold
168.00 1.3 BlkRkMD Muni
221.77 1.0 ContangoO&G
51.27 1.3 iBio
51.62 1.0 KelsoTechs
24.71 1.3 LevelBrands
32.74 2.4 NTN Buzztime
65.23 1.0 NeubrgBermMLPIncm
41.62 1.4 OwensRealtyMtg
87.51 1.7 PlatinumGrpMtls
111.21 1.2 TelInstrElec
168.23 0.3
151.45 1.2
131.60 1.5
160.55 0.8 AdobeSystems
99.60 1.3 AlignTech
67.99 2.5 AllotComms
140.08 0.4 Alphabet C
84.10 1.2 Alphabet A
120.76 1.0 AlphaMarkActiveMgd
90.36 1.0 AmerSoftware
110.70 0.4 AndinaAcqnIIRt
74.62 1.5 AndinaAcqnIIWt
152.81 1.0 ArchCapGroupPfdF
127.81 0.8 ArrowInvDWATact
108.93 1.3 Autodesk
241.48 1.0 BeaconRoof
136.27 0.5 Bio-Techne
107.06 1.4 BldrsDev100
126.88 1.3 BldrsEur100
133.40 1.2 BlueBuffaloPet
121.36 1.5 Bruker
140.79 1.7 BuildersFirstSrc
146.91 1.7 CDK Global
146.91 1.2 CEVA
135.36 1.0 CH Robinson
73.56 0.8 CME Group
103.68 1.5 Cal-MaineFoods
71.76 1.5 CallidusSoftware
25.61 1.5 CamdenNational
25.47 0.3 CareDx
26.59 0.9 CareerEducation
27.82 0.9 CatalystPharma
24.73 1.2 CathayGenBncp
24.28 1.3 CboeGlobalMkts
30.00 0.2 Charles&Colvard
55.47 0.5 ChartIndustries
50.48 0.7 ChemicalFin
30.48 1.3 Children'sPlace
71.67 0.9 ChinaInternet
90.10 1.1 ChurchillDowns
79.89 0.9 CiscoSystems
34.59 1.1 CitiTrends
39.16 1.8 CitrixSystems
29.06 1.7 ClearBr AC Grw
36.37 1.7 CollectorsUniv
90.94 1.0 ColliersIntl
31.12 0.6 CommVehicle
35.69 1.4 CraftBrewAlliance
29.56 0.4 DentsplySirona
31.68 1.0 DollarTree
AdvShRangerEqBear HDGE
AlerianMLPETF AMLP
iPathS&P500VIXST VXX
19.11
14.40
17.02
18.58
12.63
12.73
14.03
33.28
31.78
31.26
12.33
6.74
15.35
15.95
32.10
12.39
9.02
7.73
24.66
16.56
17.30
19.78
25.33
36.58
15.51
11.91
11.37
35.42
42.32
30.78
34.30
12.68
21.91
10.82
32.53
12.07
14.51
9.39
22.16
13.30
17.51
42.71
15.74
16.02
25.74
5.99
22.02
15.87
12.50
ATMP
MLPC
AMJL
PPLN
DPK
FAZ
MIDZ
WDRW
SPXS
SPDN
TZA
TECS
ZMLP
AMU
MLPQ
MLPX
MLPA
AMZA
JJG
IMLP
DCNG
HEWW
AMJ
EMTY
DOG
SEF
MYY
PSQ
RWM
SH
SBB
UVXY
SDOW
SMDD
SRTY
SPXU
SZK
DXD
SKF
QID
TWM
SDS
SDD
REW
VIXY
WEAT
MLPI
USAG
YMLI
-0.2
-1.2
-2.7
-2.5
-0.9
-5.1
-3.5
-8.1
-3.0
-1.0
-4.7
-0.7
-0.3
-0.4
-1.1
...
-0.5
-0.3
-0.3
-0.5
-2.3
-1.1
-0.5
-3.7
-1.1
-1.7
-1.1
-0.2
-1.6
-1.0
-1.6
-2.8
-3.2
-2.5
-4.9
-3.1
-1.0
-2.3
-3.5
-0.4
-3.2
-2.0
-3.5
-1.0
-1.3
-0.3
-0.4
-8.4
-0.4
NYSE American highs - 5
128.50 4.0
28.61 0.2
25.14
...
8.47 -0.5
2.31 4.1
CCF
IPB
SCEpC
TRT
WTT
NYSE American lows - 12
2.50
0.66
13.46
2.69
0.25
0.28
4.50
5.00
7.97
15.26
0.32
2.25
AMS
AKG
BZM
MCF
IBIO
KIQ
LEVB
NTN
NML
ORM
PLG
TIK
-2.6
-4.3
-0.1
-0.4
-0.1
-1.4
-3.4
-7.0
-1.7
-0.9
1.9
-2.4
Nasdaq highs - 236
ADBE
ALGN
ALLT
GOOG
GOOGL
SMCP
AMSWA
ANDAR
ANDAW
ACGLO
DWAT
ADSK
BECN
TECH
ADRD
ADRU
BUFF
BRKR
BLDR
CDK
CEVA
CHRW
CME
CALM
CALD
CAC
CDNA
CECO
CPRX
CATY
CBOE
CTHR
GTLS
CHFC
PLCE
CIFS
CHDN
CSCO
CTRN
CTXS
CACG
CLCT
CIGI
CVGI
BREW
XRAY
DLTR
E*TRADE
ETFC
Ebix
EBIX
EldoradoResorts ERI
8.14 -1.0 EnphaseEnergy ENPH
9.95 -0.3
Continued On
31.05 -1.3
NYSE Arca lows - 52
186.27
266.41
5.95
1062.38
1080.00
25.25
13.00
1.29
1.19
25.60
11.85
131.10
62.17
134.42
23.51
22.76
30.67
36.40
20.36
69.68
51.80
81.63
145.21
48.85
30.30
45.92
7.98
13.36
4.07
43.72
122.80
1.36
47.35
55.80
136.25
66.10
220.35
37.80
26.38
88.08
27.30
29.40
62.25
11.74
20.10
68.98
101.09
46.42
77.50
30.55
3.27
0.2
0.7
5.0
-0.6
-0.8
1.3
3.7
5.3
10.5
0.1
0.7
-0.2
2.0
0.5
1.0
0.6
1.1
1.7
4.2
0.9
-1.4
2.5
2.1
1.9
2.9
4.5
-0.3
1.3
10.2
3.8
1.8
-2.9
1.5
3.4
6.2
4.3
1.2
2.3
-0.3
1.8
0.6
2.7
1.3
2.1
...
0.9
2.8
2.6
1.1
1.0
4.7
Page B11
Tuesday, November 28, 2017
Tuesday
2.910
ou need a new watch…the one you are
wearing was made when Nixon was in
office, but extravagantly-priced watches that
add zeros just because of a high falootin’ name
are an insult to your logic. Why shell out big
money so some foreign company can sponsor
another yacht race? It’s time to put an end to
such madness. It’s absolutely possible to have
the highest quality, precision classic timepiece
without the high and mighty price
tag. Case in point: The Stauer Urban Blue.
Packed with high-end watch
performance and style, minus the highend price tag. It’s everything a high-end
watch should be: Sturdy stainless steel and
genuine leather construction. Precision
timing that’s accurate to four seconds a
day––that’s more precise than a 27-jewel
automatic watch priced at over $6,000. And,
good looking–– with simple, clean lines
and a striking metallic blue face.
“Blue watches are one of the growing style
trends seen in the watch world in the past
few years”––WATCHTIME®
Your great escape from the over-priced
watch craze. At Stauer, we go directly to the
source (cutting out the middleman), and
engineer our own watch designs. This means
we can offer a top quality timepiece that
happens to only cost the same as two wellmade cocktails at your favorite bar. So, while
26.58
30.81
52.55
43.15
46.56
33.15
95.15
99.02
42.78
146.47
106.06
64.19
153.65
67.54
113.92
62.35
65.85
21.95
26.57
186.93
11.17
35.92
63.31
31.39
30.31
28.59
55.22
34.11
87.62
38.54
264.70
187.88
77.07
60.28
172.63
125.66
116.64
166.37
31.73
39.68
82.73
92.73
116.62
96.92
64.92
26.56
64.90
109.53
54.50
87.30
157.01
155.56
102.49
182.43
200.84
171.71
185.72
133.71
146.40
121.40
186.47
152.97
126.89
155.99
205.46
87.46
72.69
60.32
51.03
116.45
215.11
151.96
111.12
106.99
157.94
153.56
49.12
172.32
62.93
131.71
119.76
60.35
30.73
34.32
33.92
25.66
62.38
70.33
29.76
33.32
51.93
33.02
25.70
25.70
46.38
26.95
31.22
29.83
49.70
59.44
26.39
26.87
53.20
34.18
38.69
42.94
47.61
110.73
41.36
46.98
43.00
30.56
51.85
45.78
31.94
42.09
47.76
33.42
29.94
33.90
46.09
47.78
106.03
54.95
116.28
122.70
121.64
52-Wk %
Sym Hi/Lo Chg
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.
NaturalGas,TranscoZone3-i
Time to take a stand against overpriced watches with the
Stauer Urban Blue, now only $29.
GlbXSciBetaAsiaXJ SCIX
GlbXSciBetaUS SCIU
GSActiveBetaUSLC GSLC
GS Active US SC GSSC
GuggDefEqty
DEF
GuggDJIA Div
DJD
GuggS&P500EWCD RCD
GuggS&P500EW RSP
GuggS&P500EWFin RYF
GuggS&P500EWTech RYT
GuggS&P500PureGr RPG
GuggS&P500PrVal RPV
GuggS&P400PrGrwth RFG
GuggS&P400PureVal RFV
GuggS&P600PrGrwth RZG
GuggInsider
NFO
GuggMC Core
CZA
GuggMltiAstIncm CVY
GuggMultiC
GMFL
GuggS&P500Top50 XLG
GuggS&PGlbl
LVL
GuggS&PGlblWtr CGW
GuggS&PMC400EW EWMC
HartfordMultiGlbSC ROGS
HartfordMultiUSEqu ROUS
HullTacticalUS
HTUS
iShAggrAllocation AOA
iShCoreDivGrowth DGRO
iShCoreHiDividend HDV
iShModAllocation AOM
iShCoreS&P500 IVV
iShCoreS&P MC IJH
iShCoreS&P SC IJR
iShS&PTotlUSStkMkt ITOT
iShUSConsumerSvcs IYC
iShUSFinlServices IYG
iShUS Finls
IYF
iShU.S.Technology IYW
iShEdgeMSCIMultUSA LRGF
iShEdgeMSCIUSASC SMLF
iShEdgeMSCIUSASize SIZE
iShGlobal100
IOO
iShACWILowCarbon CRBN
iShMSCIKLD400Soc DSI
iShMSCIKokusaiETF TOK
iShMSCISingapore EWS
iShMSCISouthAfrica EZA
iShMSCIUSAESGSelct SUSA
iShMSCIUSAEqWeight EUSA
iShMSCIWorldETF URTH
iShMorningstarLC JKD
iShMornLCGrowth JKE
iShMornLCValue JKF
iShMorningstarMC JKG
iShMornMCGrowth JKH
iShMorningstarSC JKJ
iShMornSCGrowth JKK
iShRussell1000Gwth IWF
iShRussell1000 IWB
iShRussell1000Val IWD
iShRussell2000Gwth IWO
iShRussell2000 IWM
iShRussell2000Val IWN
iShRussell3000 IWV
iShRussellMid-Cap IWR
iShRussellMCValue IWS
iShRussellTop200Gr IWY
iShRussellTop200 IWL
iShRussellTop200Vl IWX
iShS&P100
OEF
iShS&PMC400Growth IJK
iShS&P500Growth IVW
iShS&P500Value IVE
iShGlobalConsDiscr RXI
iShS&PMC400Value IJJ
iShS&PSC600Value IJS
iShNATech-Mult IGN
iShNorthAmerTech IGM
iSh10+YCreditBond CLY
iShDowJonesUS IYY
iShRussellMCGrowth IWP
iShUSBrokerDealers IAI
JanusVelTailLC TRSK
HancockLC
JHML
HancockMC
JHMM
HancockMultiSC JHSC
JPM DivRetGlEq JPGE
JPM DivRetUS Eq JPUS
JPM Div US SC JPSE
KnowldgLdrDevWrld KLDW
MadronaDomestic FWDD
MeidellTactical
MATH
NationwideMaxDivUS MXDU
NationRiskBasedUS RBUS
NatixisSeeyondIntl MVIN
OShRussSC Qu OUSM
OShFTSEUSQuality OUSA
OppESGRevenue ESGL
OppenheimerLgCpRev RWL
OppenheimerMdCpRev RWK
PIMCO DynMultIn MFDX
PIMCO DynMultUS MFUS
PwrShAerospace PPA
PwrShDynBldg&Con PKB
PwrShDynLCValue PWV
PwrShDynLeisure PEJ
PwrShDynNetwork PXQ
PwrShFTSE US1000 PRF
PwrShDynLC Grwth PWB
PwrShRussMC EW EQWM
PwrShRussMCGrw PXMG
PwrShRuss1000EqWt EQAL
PwrShRussTop200 EQWL
PwrShRussTop200G PXLG
PwrShRuss2000Grw PXSG
PwrShS&P500HiDiv SPHD
PwrShS&P500LoVol SPLV
PwrShS&P500xRate XRLV
PwrShS&P500Qual SPHQ
PwrShS&PIntDev IDLV
PwrShS&P400LowVol XMLV
PwrShS&P600LowVol XSLV
PwrShTreaColl
CLTL
ProShS&P500xEner SPXE
ProShShtVIXST SVXY
ProShrUltraDow30 DDM
ProShrUltraFnl UYG
52-Wk %
Sym Hi/Lo Chg Stock
Cash Prices | WSJ.com/commodities
NaturalGas,HenryHub-i
It’s Enough to MakeYou
Blue in the Face
52-Wk %
Sym Hi/Lo Chg Stock
Stock
Gold, per troy oz
Tuesday
Mexican peso-e
1569.98
Austria crown-e
1272.85
Hides,hvy native steers piece fob-u
n.a.
Austria phil-e
1360.28
Wool,64s,staple,Terr del-u,w
n.a.
Silver, troy oz.
17.1100
Engelhard fabricated
20.5320
Barley,top-quality Mnpls-u
Handy & Harman base
16.8650
Bran,wheat middlings, KC-u
Handy & Harman fabricated
21.0810
Corn,No. 2 yellow,Cent IL-bp,u
LBMA spot price
£12.8400
Corn gluten feed,Midwest-u,w
17.0700
95.6
(U.S.$ equivalent)
Corn gluten meal,Midwest-u,w
477.3
12649
Coins,wholesale $1,000 face-a
Other metals
*948.0
LBMA Platinum Price PM
Oats,No.2 milling,Mnpls-u
2.7725
Rice, 5% Broken White, Thailand-l,w
390.00
Palladium,Engelhard industrial
1017.0
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
7.4775
SoybeanMeal,Cent IL,rail,ton48%-u
320.30
Soybeans,No.1 yllw IL-bp,u
9.5500
Aluminum, LME, $ per metric ton
*2109.5
LBMA Gold Price PM
*1294.90
92
215
959.0
1399.50
*1294.70
235
1059.0
Engelhard fabricated
LBMA Gold Price AM
98
3.1050
Platinum,Engelhard fabricated
1117.0
1433.95
Meat-bonemeal,50% pro Mnpls-u,w
n.a.
Platinum,Engelhard industrial
Palladium,Engelhard fabricated
Handy & Harman fabricated
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
1301.86
1291.85
Grains and Feeds
Engelhard industrial
Engelhard industrial
Handy & Harman base
Tuesday
*82.35
Cotlook 'A' Index-t
Copper,Comex spot
3.0705
25.00
Iron Ore, 62% Fe CFR China-s
67.0
Wheat,Spring14%-pro Mnpls-u
7.5200
Shredded Scrap, US Midwest-s,w
276
Wheat,No.2 soft red,St.Louis-bp,u
4.2350
Steel, HRC USA, FOB Midwest Mill-s
622
Wheat - Hard - KC (USDA) $ per bu-u
3.7425
Wheat,No.1soft white,Portld,OR-u
5.3225
Krugerrand,wholesale-e
1347.32
Maple Leaf-e
1360.28
Burlap,10-oz,40-inch NY yd-n,w
1360.28
0.6200
American Eagle-e
Cotton,1 1/16 std lw-mdMphs-u
0.7139
Fibers and Textiles
To the Policyholders of
THE GUARDIAN LIFE INSURANCE
COMPANY OF AMERICA
Notice of Annual Election of Directors
The Annual Election of Directors of The Guardian Life
Insurance Company of America will be held at its Home
Office, located at 7 Hanover Square, New York, NY 10004
on December 13, 2017. The polls will open at 10:00 AM
and remain open until 4:00 PM on that day. Policyholders
whose policies or contracts are in force on the date of the
election and have been in force at least one year prior to
the election date are entitled to vote in person or by proxy.
Proxies may be obtained from the Office of the Corporate
Secretary, The Guardian Life Insurance Company of
America, 7 Hanover Square, H-27-A, New York, NY 10004
or through Guardian’s website at www.guardianlife.com/
about-guardian/corporate-governance.
Harris Oliner
Senior Vice President
and Corporate Secretary
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
188.22
select 1-3,600-900 lbs.-u
167.69
Broilers, National comp wghtd-u,w
0.8613
Butter,AA Chicago
2.1850
Cheddar cheese,bbl,Chicago
154.00
Cheddar cheese,blk,Chicago
161.00
Milk,Nonfat dry,Chicago lb.
73.00
Cocoa,Ivory Coast-w
2345
Coffee,Brazilian,Comp
1.2380
Coffee,Colombian, NY
1.4381
Eggs,large white,Chicago-u
1.7550
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
15.30
0.69
Hogs,Iowa-So. Minnesota-u
62.95
Pork bellies,12-14 lb MidUS-u
1.6691
Pork loins,13-19 lb MidUS-u
0.8582
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
n.a.
165.88
Fats and Oils
Corn oil,crude wet/dry mill-u,w
33.7500
Grease,choice white,Chicago-h
0.2500
Lard,Chicago-u
0.3750
Soybean oil,crude;Centl IL-u
0.3300
Tallow,bleach;Chicago-h
0.2650
Tallow,edible,Chicago-u
n.a.
®
Rating of A+
14101 Southcross Drive W., Dept. UBW244-02
Burnsville, Minnesota 55337 www.stauer.com
Precision movement • Stainless steel caseback and crown • Cotswold™ mineral crystal
• Date window • Water resistant to 3 ATM • Genuine leather band fits wrists 6 ¾"–8 ¾"
Smar t Luxuries—Surprising Prices™
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 11/27
Source: 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.
Wednesday, November 29, 2017 | B11
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE, NYSE
Arca, NYSE MKT and Nasdaq Stock Market listed
securities. Prices are composite quotations that
include primary market trades as well as trades
reported by Nasdaq OMX BXSM (formerly
Boston), Chicago Stock Exchange, CBOE, National
Stock Exchange, ISE and BATS.
The list comprises the 1,000 largest companies
based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent four
quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or being
reorganized under the Bankruptcy Code,
or securities assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Tuesday, November 28, 2017
Stock
Net
Sym Close Chg
NYSE
s
s
s
t
t
s
s
t
s
s
ABB
ABB 25.83
AECOM
ACM 36.88
AES
AES 10.57
Aflac
AFL 86.27
AT&T
T
35.42
AbbottLabs ABT 56.02
AbbVie
ABBV 95.42
Accenture
ACN 148.04
AcuityBrands AYI 168.04
Adient
ADNT 79.66
AdvanceAuto AAP 92.84
AdvSemiEngg ASX 6.61
Aegon
AEG
6.16
AerCap
AER 51.71
Aetna
AET 178.84
AffiliatedMgrs AMG 196.63
AgilentTechs A
70.59
AgnicoEagle AEM 45.19
Agrium
AGU 108.54
AirProducts APD 163.24
AlaskaAir
ALK 67.29
Albemarle
ALB 136.89
Alcoa
AA
43.30
AlexandriaRlEst ARE 125.87
Alibaba
BABA 186.69
Alleghany
Y
572.48
Allegion
ALLE 83.33
Allergan
AGN 171.92
AllianceData ADS 225.61
AlliantEnergy LNT 44.78
Allstate
ALL 100.89
AllyFinancial ALLY 26.51
AlticeUSA
ATUS 18.36
Altria
MO 66.40
AlumofChina ACH 17.12
Ambev
ABEV 6.43
Ameren
AEE 63.85
AmericaMovil AMX 17.57
AmericaMovil A AMOV 17.51
AmCampus ACC 42.12
AEP
AEP 77.02
AmerExpress AXP 95.28
AmericanFin AFG 104.19
AmerHomes4Rent AMH 21.59
AIG
AIG 59.82
AmerTowerREIT AMT 148.64
AmerWaterWorks AWK 89.57
Ameriprise AMP 161.75
AmerisourceBrgn ABC 83.15
Ametek
AME 72.00
Amphenol
APH 91.04
AnadarkoPetrol APC 47.77
Andeavor
ANDV 105.46
AndeavorLog ANDX 42.97
AB InBev
BUD 117.44
AnnalyCap
NLY 11.80
AnteroResources AR
18.54
Anthem
ANTM 222.28
Aon
AON 139.94
Apache
APA 40.27
ApartmtInv AIV 44.13
ApolloGlbMgmt APO 30.56
AquaAmerica WTR 36.79
Aramark
ARMK 42.27
ArcelorMittal MT
29.94
ArcherDaniels ADM 39.09
Arconic
ARNC 24.23
AristaNetworks ANET 243.55
ArrowElec
ARW 80.77
AstraZeneca AZN 33.52
Athene
ATH 48.60
AtmosEnergy ATO 90.27
Autohome ATHM 58.00
Autoliv
ALV 127.06
AutoZone
AZO 664.22
Avalonbay
AVB 181.27
Avangrid
AGR 52.88
AveryDennison AVY 112.00
AxaltaCoating AXTA 36.34
BB&T
BBT 47.53
BCE
BCE 48.39
BHPBilliton BHP 42.00
BHPBilliton BBL 36.98
BP
BP
39.90
BRF
BRFS 12.46
BT Group
BT
16.79
BWX Tech
BWXT 61.33
BakerHughes BHGE 30.08
Ball
BLL 39.58
BancoBilbaoViz BBVA 8.54
BancodeChile BCH 83.87
BancoMacro BMA 102.55
BcoSantChile BSAC 28.71
BancoSantander SAN
6.65
BanColombia CIB
38.94
0.20
0.65
-0.17
0.83
0.74
-0.13
...
0.54
8.19
2.01
2.97
-0.44
0.11
0.58
2.75
3.95
1.28
-0.19
1.36
2.30
1.93
0.66
1.26
-1.36
-1.34
9.29
0.23
-0.46
4.16
0.17
1.48
0.28
-0.43
1.33
0.28
0.07
0.46
0.11
0.05
-0.01
0.28
1.81
1.49
-0.18
1.06
0.41
0.37
2.50
2.03
1.40
0.66
0.08
1.91
-0.24
-0.07
0.04
-0.07
2.25
1.82
0.41
-0.27
0.21
0.15
0.90
0.31
0.02
0.62
4.91
1.88
-0.16
...
0.77
-3.06
2.12
26.27
-1.57
0.51
0.08
0.76
1.04
-0.43
0.11
-0.10
0.39
0.13
0.15
1.05
-0.23
-0.46
0.09
0.39
-2.64
-0.02
0.04
0.28
Net
Sym Close Chg
Stock
s
s
s
s
s
t
s
s
t
t
s
BankofAmerica BAC 27.64 1.05
BankofMontreal BMO 77.70 -0.08
BankNY Mellon BK
53.13 0.95
BkNovaScotia BNS 63.81 -1.63
Barclays
BCS 10.04 0.08
Bard CR
BCR 336.43 0.50
BarrickGold ABX 14.17 -0.08
BaxterIntl
BAX 66.05 1.31
BectonDicknsn BDX 227.15 1.75
Berkley
WRB 67.20 0.82
BerkHathwy A BRK.A 2804404210.00
BerkHathwy B BRK.B 187.54 4.05
BerryGlobal BERY 59.44 0.07
BestBuy
BBY 58.05 1.03
Bio-RadLab A BIO 263.30 1.83
BlackKnight BKI
45.70 -0.40
BlackBerry
BB
10.93 0.05
BlackRock
BLK 493.06 11.10
Blackstone
BX
31.49 0.18
Boeing
BA 267.99 2.41
BorgWarner BWA 54.29 1.24
BostonProps BXP 124.69 -0.54
BostonSci
BSX 26.39 -2.12
Braskem
BAK 28.79 -0.02
Bristol-Myers BMY 62.52 0.91
BritishAmTob BTI
66.16 -0.04
BroadridgeFinl BR
90.21 1.17
BrookfieldMgt BAM 41.71 -0.05
BrookfieldInfr BIP
43.94 0.04
Brown&Brown BRO 50.78 0.48
Brown-Forman A BF.A 60.00 0.22
Brown-Forman B BF.B 59.48 0.04
BuckeyePtrs BPL 45.02 -0.83
Bunge
BG
65.45 0.29
BurlingtonStrs BURL 104.82 2.43
CBD Pao
CBD 22.85 -0.03
CBRE Group CBG 42.75 0.28
CBS A
CBS.A 55.60 -1.41
CBS B
CBS 54.76 -1.20
CF Industries CF
36.45 0.53
CGI Group
GIB
53.64 -0.34
CIT Group
CIT
48.78 1.17
CMS Energy CMS 49.70 -0.05
CNA Fin
CNA 54.00 0.51
CNOOC
CEO 135.34 0.05
CPFLEnergia CPL 16.67 0.12
CRH
CRH 35.13 0.33
CVS Health CVS 72.70 2.30
CabotOil
COG 29.10 -0.04
CalAtlantic
CAA 54.83 0.67
CamdenProperty CPT 92.01 -1.00
CampbellSoup CPB 46.94 0.16
CIBC
CM
89.78 -0.26
CanNtlRlwy CNI
78.04 -0.87
CanNaturalRes CNQ 33.36 -0.17
CanPacRlwy CP 173.61 -0.91
Canon
CAJ 38.86 0.13
CapitalOne COF 89.75 2.88
CardinalHealth CAH 57.56 1.67
Carlisle
CSL 113.94 1.78
CarMax
KMX 67.46 -0.41
Carnival
CCL 66.51 0.35
Carnival
CUK 67.01 0.37
Caterpillar
CAT 138.99 1.80
Celanese A CE 107.70 0.87
Cemex
CX
7.84 0.10
CenovusEnergy CVE
9.27 -0.01
Centene
CNC 97.81 -0.28
CenterPointEner CNP 29.58 0.04
CentraisElBras EBR
6.22 -0.14
CenturyLink CTL 13.69 0.07
Chemours
CC
53.14 0.43
Chevron
CVX 116.45 0.86
ChinaEastrnAir CEA 30.05 0.05
ChinaLifeIns LFC 17.02 -0.01
ChinaMobile CHL 51.58 0.47
ChinaPetrol SNP 72.29 0.02
ChinaSoAirlines ZNH 45.87 1.39
ChinaTelecom CHA 48.85 0.01
ChinaUnicom CHU 14.94 0.26
Chipotle
CMG 285.86 11.34
Chubb
CB 151.57 2.31
ChunghwaTel CHT 34.60 0.19
Church&Dwight CHD 45.65 0.55
Cigna
CI
200.55 0.62
CimarexEnergy XEC 114.24 1.59
Citigroup
C
73.70 2.31
CitizensFin CFG 38.78 1.15
Clorox
CLX 136.96 1.29
Coca-Cola
KO
45.83 -0.07
Coca-Cola Euro CCE 38.74 -0.14
Coca-Cola Femsa KOF 68.79 -0.58
ColgatePalm CL
72.76 0.76
ColonyNorthStar CLNS 12.12 -0.10
Comerica
CMA 80.83 2.19
SABESP
SBS 10.44 0.07
ConagraBrands CAG 36.44 0.50
ConchoRscs CXO 137.78 -0.64
Net
Sym Close Chg
Stock
s
s
s
s
s
s
s
t
t
s
ConocoPhillips COP 50.13
ConEd
ED
87.98
ConstBrands A STZ 220.02
ContinentalRscs CLR 45.57
Cooper
COO 243.25
Corning
GLW 32.44
Coty
COTY 17.20
Credicorp
BAP 214.13
CreditSuisse CS
16.64
CrownCastle CCI 113.52
CrownHoldings CCK 59.17
Cullen/Frost CFR 98.50
Cummins
CMI 164.52
DCT Industrial DCT 60.59
DTE Energy DTE 114.34
DXC Tech
DXC 98.00
Danaher
DHR 94.32
Darden
DRI 83.06
DaVita
DVA 58.48
Deere
DE 149.38
DellTechs
DVMT 82.56
DelphiAuto DLPH 101.72
DeltaAir
DAL 50.58
DeutscheBank DB
18.88
DevonEnergy DVN 37.17
Diageo
DEO 140.84
DigitalRealty DLR 118.53
DiscoverFinSvcs DFS 67.63
Disney
DIS 103.41
DolbyLab
DLB 62.92
DollarGeneral DG
87.73
DominionEner D
83.94
Domino's
DPZ 172.29
Donaldson
DCI
48.65
DouglasEmmett DEI
40.43
Dover
DOV 96.52
DowDuPont DWDP 71.09
DrPepperSnap DPS 87.62
DrReddy'sLab RDY 35.53
DukeEnergy DUK 88.98
DukeRealty DRE 29.00
ENI
E
32.86
EOG Rscs
EOG 99.84
EQT
EQT 56.87
EastmanChem EMN 91.69
Eaton
ETN 76.85
EatonVance EV
53.58
Ecolab
ECL 134.25
Ecopetrol
EC
11.55
EdisonInt
EIX
81.14
EdwardsLife EW 113.21
EmersonElec EMR 64.15
EnbridgeEnPtrs EEP 12.91
Enbridge
ENB 36.26
Encana
ECA 11.43
EnelAmericas ENIA 9.77
EnelGenChile EOCC 25.31
EnergyTransferEq ETE 16.06
EnergyTransfer ETP 15.82
Entergy
ETR 86.34
EnterpriseProd EPD 24.26
Equifax
EFX 112.09
EquityLife
ELS 89.82
EquityResdntl EQR 66.90
EssexProp
ESS 246.77
EsteeLauder EL 125.31
EverestRe
RE 225.01
EversourceEner ES
64.56
Exelon
EXC 41.96
ExtraSpaceSt EXR 85.21
ExxonMobil XOM 81.67
FMC
FMC 94.50
FactSet
FDS 199.04
FederalRealty FRT 131.12
FedEx
FDX 218.51
Ferrari
RACE 111.70
FiatChrysler FCAU 17.31
FibriaCelulose FBR 15.23
FidNatlFin
FNF 40.38
FidNatlInfo FIS
92.72
58.com
WUBA 75.79
FirstAmerFin FAF 55.29
FirstData
FDC 16.62
FirstRepBank FRC 94.73
FirstEnergy FE
33.54
FleetCorTech FLT 180.13
Fluor
FLR 47.64
FomentoEconMex FMX 90.84
FordMotor
F
12.21
ForestCIty A FCE.A 24.82
Fortis
FTS 37.60
Fortive
FTV 73.29
FortBrandsHome FBHS 65.72
Franco-Nevada FNV 85.00
FranklinRscs BEN 42.17
FreeportMcM FCX 14.21
FreseniusMed FMS 49.14
GGP
GGP 23.35
0.97
0.48
-0.10
0.43
-0.04
0.39
0.20
0.89
0.17
0.23
-0.41
3.25
3.36
-0.23
0.70
0.46
0.27
2.78
0.49
0.61
0.65
0.95
0.99
0.14
0.38
1.26
0.47
2.29
0.62
0.26
1.38
0.98
-2.23
0.68
-0.44
2.12
0.96
0.71
0.53
0.10
-0.08
0.32
0.02
-0.01
0.80
1.32
0.75
1.44
-0.33
0.32
3.35
2.27
0.33
-0.01
0.03
-0.01
-0.14
-0.04
-0.22
0.26
0.33
1.59
-0.14
-0.73
-0.84
0.16
3.24
0.14
0.31
-2.19
0.56
0.69
2.42
0.43
0.64
-0.10
-0.07
-0.22
0.04
0.75
0.43
0.28
-0.13
2.46
-0.40
1.56
0.71
-0.47
0.10
-0.04
-0.10
0.53
1.20
-0.37
0.99
0.12
0.09
0.11
Data provided by
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. rRedemption 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.
Tuesday, November 28, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
46.02
Ultra
American Funds Cl A
32.36
AmcpA p
41.76
AMutlA p
BalA p
27.73
BondA p
12.93
CapIBA p
63.46
CapWGrA
53.14
EupacA p
58.07
64.45
FdInvA p
52.38
GwthA p
10.41
HI TrA p
41.74
ICAA p
23.58
IncoA p
45.83
N PerA p
48.95
NEcoA p
67.88
NwWrldA
57.76
SmCpA p
12.93
TxExA p
46.07
WshA p
Baird Funds
10.89
AggBdInst
11.24
CorBdInst
BlackRock Funds A
20.51
GlblAlloc p
BlackRock Funds Inst
EqtyDivd
23.33
GlblAlloc
20.65
HiYldBd
7.81
StratIncOpptyIns 9.93
Bridge Builder Trust
10.20
CoreBond
Dimensional Fds
11.03
5GlbFxdInc
30.73
EmgMktVa
EmMktCorEq 22.88
14.32
IntlCoreEq
20.04
IntlVal
21.62
IntSmCo
23.35
IntSmVa
+0.25 31.9
+0.22
+0.41
+0.15
-0.01
+0.30
+0.32
+0.17
+0.47
+0.23
...
+0.36
+0.16
+0.16
+0.31
+0.21
+0.42
-0.03
+0.54
20.6
15.0
13.5
3.3
12.8
23.1
31.4
20.6
24.6
6.5
16.5
11.2
29.7
36.2
31.9
25.6
4.4
16.8
...
-0.01
4.1
4.5
+0.09 12.8
+0.34 14.3
+0.10 13.1
... 7.6
+0.01 4.2
...
4.1
...
+0.14
+0.12
+0.05
+0.09
+0.06
+0.03
2.3
30.1
33.7
25.0
22.3
26.4
23.5
US CoreEq1
US CoreEq2
US Small
US SmCpVal
US TgdVal
USLgVa
22.55
21.39
37.31
39.61
25.71
39.66
+0.27
+0.28
+0.67
+0.75
+0.47
+0.60
18.4
16.2
11.0
6.4
7.9
14.7
Dodge & Cox
Balanced
GblStock
Income
Intl Stk
Stock
109.87 +1.00
13.99 +0.11
13.85
...
46.57 +0.17
204.17 +2.88
DoubleLine Funds
TotRetBdI
NA
...
Edgewood Growth Instituti
EdgewoodGrInst 30.27 +0.13
Federated Instl
6.49 +0.04
StraValDivIS
Fidelity
500IdxInst
92.13 +0.90
500IdxInstPrem 92.13 +0.90
500IdxPrem 92.13 +0.91
ExtMktIdxPrem r 64.20 +0.73
IntlIdxPrem r 43.68 +0.18
SAIUSLgCpIndxFd 14.12 +0.14
TMktIdxF r
76.48 +0.77
TMktIdxPrem 76.47 +0.78
...
USBdIdxInstPrem 11.61
Fidelity Advisor I
34.10 +0.24
NwInsghtI
Fidelity Freedom
FF2020
16.91 +0.08
14.65 +0.08
FF2025
18.38 +0.11
FF2030
Freedom2020 K 16.91 +0.08
Freedom2025 K 14.65 +0.08
Freedom2030 K 18.39 +0.11
Freedom2035 K 15.45 +0.10
Freedom2040 K 10.86 +0.07
Fidelity Invest
24.00 +0.15
Balanc
9.8
17.5
4.2
22.2
13.9
NA
36.3
13.0
19.5
19.5
19.5
17.0
23.8
19.4
19.0
19.0
3.4
27.7
14.6
15.7
18.4
NS
NS
NS
NS
NS
15.7
Net YTD
NAV Chg % Ret
89.93
BluCh
129.58
Contra
129.59
ContraK
10.31
CpInc r
41.93
DivIntl
GroCo
187.03
187.00
GrowCoK
7.94
InvGB
InvGrBd
11.30
53.75
LowP r
LowPriStkK r 53.71
107.96
MagIn
111.79
OTC
Puritn
23.46
SrsEmrgMkt 21.87
SrsGroCoRetail 18.36
SrsIntlGrw
16.60
10.92
SrsIntlVal
TotalBond
10.68
+0.22
+0.75
+0.75
...
+0.15
+0.34
+0.35
...
+0.01
+0.54
+0.53
+0.86
+0.13
+0.13
+0.12
+0.04
+0.06
+0.03
...
First Eagle Funds
60.92 +0.31
GlbA
FPA Funds
35.14 +0.25
FPACres
FrankTemp/Frank Adv
IncomeAdv
2.34 +0.01
FrankTemp/Franklin A
CA TF A p
7.42 -0.01
2.36 +0.01
IncomeA p
61.79 +0.69
RisDv A p
FrankTemp/Franklin C
2.39 +0.01
Income C t
FrankTemp/Temp A
12.17 +0.07
GlBond A p
Growth A p 27.03 +0.22
FrankTemp/Temp Adv
GlBondAdv p 12.12 +0.06
Harbor Funds
CapApInst
77.71 +0.22
70.82 +0.24
IntlInst r
Harding Loevner
NA
...
IntlEq
36.3
32.5
32.6
11.1
25.9
36.7
36.9
3.8
4.3
17.3
17.4
25.1
40.3
17.6
39.3
37.4
29.7
19.2
4.1
12.3
9.0
7.2
4.8
7.0
18.4
6.9
4.0
14.7
4.1
37.2
21.2
NA
New Highs and Lows | WSJ.com/newhighs
Continued From Page B10
Stock
52-Wk % Stock
Sym Hi/Lo Chg FT USEquityDiv
52-Wk %
Sym Hi/Lo Chg Stock
FiveBelow
60.24 1.5 FlexSTOXXGlbESGImp
EsperionTherap ESPR
17.73 0.6 FlexShUSQualLC
EsquireFinancial ESQ
184.25 -0.3 Fortinet
Facebook
FB
FidelityNasdComp ONEQ 272.24 0.4 FranklinElectric
33.30 0.3 Freshpet
FirstBancshares FBMS
FirstCitizBcshA FCNCA 419.32 2.7 Funko
50.32 0.8 FusionTelecom
FT CapStrength FTCS
46.15 0.8 Garmin
FT CloudComp SKYY
51.92 0.4 GlacierBancorp
FT DevIntlEquity RNDM
25.77 1.3 GlbXConsciousCos
FT DorseyDyn5 FVC
27.68 1.2 GlbX Health&Well
FT DorseyFoc5 FV
28.17 0.9 GlbXS&P500Catholic
DorseyWrightPeople DWPP
35.35 0.7 GoldenEnt
FT NasdTechDiv TDIV
FT GerAlpha
50.37 -0.1 GreatElmCap
FGM
57.68 1.1 Groupon
FT LC CoreAlpha FEX
61.35 0.7 HamiltonLane
FT LC GrwthAlpha FTC
21.21 0.5 HeritageCommerce
FT LC US Equity RNLC
52.89 1.4 HinghamSvg
FT LC Value
FTA
33.16 1.2 HuntingtonBcPfC
FT MegaCap
FMK
65.20 1.5 IQ Chaikin US SC
FT MC CoreAlpha FNX
39.35 1.4 Illumina
FT MC GrwthAlpha FNY
21.37 0.5 InflaRx
FT MC US Equity RNMC
35.21 0.7 InfoSvcsGrp
FT MC ValAlpha FNK
65.51 0.7 Inogen
FT MCGrAlpDX FAD
55.33 1.2 InteractiveBrkrs
FT MuCValAlpha FAB
22.81 0.6 iShCoreS&PUSGrowth
FT NasdCybersec CIBR
42.83 1.4 iShCoreS&PUSValue
FT NasdGlblAuto CARZ
57.73 0.6 iShSelectDividend
FT Nasd100 EW QQEW
25.34 1.4 iShExponentialTech
FT RBAQualIncm QINC
29.07 1.8 iShMSCI ACWI
FTRisingDivAch RDVY
20.39 1.1 iShMSCIUSAESGOpt
FT SMID CapRising SDVY
60.80 2.0 iShMornMCValue
FT SC CoreAlpha FYX
42.54 1.6 iShS&PSC600Growth
FT SC GrwthAlpha FYC
21.30 0.5 J&JSnackFoods
FT SC US Equity RNSC
36.51 1.8 JackHenry
FT SC Value
FYT
32.42 0.7 Kingstone
FT TotalUSMkt TUSA
RNDV
FIVE
ESGG
QLC
FTNT
FELE
FRPT
FNKO
FSNN
GRMN
GBCI
KRMA
BFIT
CATH
GDEN
GEC
GRPN
HLNE
HTBK
HIFS
HBANN
CSML
ILMN
IFRX
III
INGN
IBKR
IUSG
IUSV
DVY
XT
ACWI
ESGU
JKI
IJT
JJSF
JKHY
KINS
Gallagher
AJG 66.63
s Gap
GPS 30.98
GardnerDenver GDI 31.23
Gartner
IT
119.49
Gazit-Globe GZT 10.09
GeneralDynamics GD 204.19
GeneralElec GE
18.41
GeneralMills GIS
54.84
GeneralMotors GM
44.92
s Genpact
G
32.34
GenuineParts GPC 89.34
Gerdau
GGB
3.36
Gildan
GIL
31.88
GSK
GSK 35.92
s GlobalPayments GPN 103.55
GoDaddy
GDDY 50.45
Goldcorp
GG
13.03
GoldmanSachs GS 239.41
Graco
GGG 131.84
Grainger
GWW 211.57
GreatPlainsEner GXP 34.19
GrubHub
GRUB 68.23
GpoAvalAcc AVAL 8.37
GpFinSantMex BSMX 8.22
t GrupoTelevisa TV
17.52
Guidewire
GWRE 81.51
HCA Healthcare HCA 78.07
HCP
HCP 26.55
HDFC Bank HDB 98.05
HP
HPQ 21.66
HSBC
HSBC 49.83
Halliburton HAL 41.02
Hanesbrands HBI 19.75
HarleyDavidson HOG 49.25
Harris
HRS 144.20
HartfordFinl HIG 56.69
HealthcareAmer HTA 30.59
Heico
HEI
92.48
Heico A
HEI.A 77.50
Helm&Payne HP
56.47
Herbalife
HLF 70.34
Hershey
HSY 109.84
Hess
HES 43.38
HewlettPackard HPE 13.88
s Hilton
HLT 76.13
s HollyFrontier HFC 45.26
s HomeDepot HD 176.57
HondaMotor HMC 33.40
s Honeywell
HON 152.76
HormelFoods HRL 34.59
s DR Horton
DHI 50.11
HostHotels HST 19.46
HuanengPower HNP 26.03
Hubbell
HUBB 126.09
Humana
HUM 244.22
HuntingIngalls HII 241.11
Huntsman
HUN 32.29
s HyattHotels H
71.27
ICICI Bank
IBN
9.64
ING Groep
ING 18.26
Invesco
IVZ
36.00
IQVIA
IQV 101.73
s IDEX
IEX 132.60
s IllinoisToolWks ITW 164.48
Infosys
INFY 15.56
Ingersoll-Rand IR
86.65
s Ingredion
INGR 139.07
ICE
ICE
69.35
s InterContinentl IHG 58.49
IBM
IBM 152.47
s IntlFlavors
IFF 154.45
IntlGameTech IGT
27.63
IntlPaper
IP
55.58
Interpublic
IPG
19.39
InvitatHomes INVH 23.08
IronMountain IRM 40.68
IsraelChemicals ICL
4.00
ItauUnibanco ITUB 13.30
JPMorganChase JPM 101.36
JacobsEngg JEC 64.56
JamesHardie JHX 16.55
JanusHenderson JHG 36.40
J&J
JNJ 140.02
JohnsonControls JCI
38.42
JonesLang
JLL 151.97
JuniperNetworks JNPR 28.19
KAR Auction KAR 48.75
s KB Fin
KB
54.57
KKR
KKR 19.63
KT
KT
15.02
KSCitySouthern KSU 106.87
Kellogg
K
65.94
KeyCorp
KEY 18.48
KeysightTechs KEYS 44.71
KilroyRealty KRC 75.03
KimberlyClark KMB 117.38
KimcoRealty KIM 18.30
KinderMorgan KMI 17.03
Knight-Swift KNX 40.74
Kohl's
KSS 46.01
KoninklijkePhil PHG 38.92
KoreaElcPwr KEP 17.79
Kroger
KR
23.56
Kyocera
KYO 71.36
LATAMAirlines LTM 13.53
L Brands
LB
52.32
LG Display
LPL 14.20
LINE
LN
43.94
s L3 Tech
LLL 194.77
LabCpAm
LH 151.22
LambWeston LW
54.03
s LasVegasSands LVS 68.36
Lazard
LAZ 47.93
s Lear
LEA 179.28
Leggett&Platt LEG 47.35
Leidos
LDOS 62.79
s Lennar A
LEN 61.54
s Lennar B
LEN.B 50.84
s LennoxIntl
LII
201.14
LeucadiaNatl LUK 26.51
LibertyProperty LPT 44.75
Fund
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each. NAV is net asset value. Percentage performance figures are total returns,
assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t
reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous
trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return
annualized.
Fund
Net
Sym Close Chg
0.92
0.98
-0.23
1.17
-0.30
3.12
0.29
0.79
0.75
0.46
1.72
0.03
0.46
0.37
-0.34
-0.44
-0.19
4.30
1.78
8.47
0.23
-0.36
-0.04
0.05
-0.55
-0.09
0.72
-0.14
0.27
0.41
0.79
-0.05
0.08
1.73
0.70
0.89
-0.10
0.83
0.85
0.91
1.29
1.47
0.28
0.41
0.13
0.50
2.41
0.42
2.33
0.41
0.64
-0.14
-0.26
4.80
0.66
6.06
1.51
0.05
-0.04
0.11
0.80
-0.28
1.77
3.66
0.03
1.92
2.06
1.25
0.19
0.49
2.98
-0.27
0.54
0.81
-0.31
0.18
-0.02
0.16
3.43
1.24
0.23
0.27
1.92
1.33
3.08
0.81
0.39
2.04
0.14
0.16
0.72
0.87
0.47
-0.17
0.12
0.62
0.11
0.07
0.76
0.80
0.14
0.15
0.38
0.31
0.13
1.98
0.25
-0.33
1.97
-0.33
...
0.60
0.28
3.36
0.90
1.23
0.79
0.22
4.84
0.84
-0.29
Stock
Net
Sym Close Chg
EliLilly
LLY
85.05
LincolnNational LNC 74.83
s LionsGate A LGF.A 34.46
s LionsGate B LGF.B 32.74
s LiveNationEnt LYV 46.41
LloydsBanking LYG
3.52
LockheedMartin LMT 319.01
s Loews
L
50.11
Lowe's
LOW 81.68
LyondellBasell LYB 104.94
M&T Bank
MTB 164.34
MGM Resorts MGM 33.25
MPLX
MPLX 34.65
s MSCI
MSCI 129.35
Macerich
MAC 63.87
Macy's
M
22.17
MagellanMid MMP 65.54
MagnaIntl
MGA 54.98
s Manpower
MAN 130.38
ManulifeFin MFC 21.10
MarathonOil MRO 14.56
MarathonPetrol MPC 62.22
Markel
MKL 1091.48
Marsh&McLen MMC 83.62
MartinMarietta MLM 204.35
Masco
MAS 40.93
s Mastercard MA 154.19
McCormick MKC 100.81
McCormickVtg MKC.V 100.67
s McDonalds MCD 171.34
McKesson
MCK 147.75
Medtronic
MDT 82.46
Merck
MRK 54.93
MetLife
MET 52.65
MettlerToledo MTD 634.14
s MichaelKors KORS 57.87
MicroFocus MFGP 34.34
MidAmApt MAA 102.87
MitsubishiUFJ MTU 6.98
MizuhoFin
MFG 3.62
MobileTeleSys MBT 10.72
s MohawkInds MHK 280.09
MolsonCoors B TAP 78.58
Monsanto
MON 118.68
Moody's
MCO 150.88
MorganStanley MS
50.40
Mosaic
MOS 24.09
MotorolaSol MSI 94.53
NRG Energy NRG 28.86
NTTDoCoMo DCM 25.79
NVR
NVR 3397.01
NationalGrid NGG 59.13
NatlOilwell
NOV 32.13
NatlRetailProp NNN 41.83
NewOrientalEduc EDU 88.29
NY CmntyBcp NYCB 13.03
NewellBrands NWL 30.78
NewfieldExpln NFX 29.92
NewmontMin NEM 37.14
NextEraEnergy NEE 157.79
NielsenHoldings NLSN 37.45
Nike
NKE 59.58
NiSource
NI
27.20
NobleEnergy NBL 25.85
Nokia
NOK
5.05
NomuraHoldings NMR 5.82
Nordstrom
JWN 42.67
NorfolkSouthern NSC 130.15
s NorthropGrum NOC 307.90
Novartis
NVS 85.37
NovoNordisk NVO 51.92
Nucor
NUE 56.28
OGE Energy OGE 35.40
ONEOK
OKE 50.06
OccidentalPetrol OXY 68.96
Olin
OLN 35.96
Omnicom
OMC 70.65
Oracle
ORCL 49.01
Orange
ORAN 17.08
OrbitalATK OA 132.25
Orix
IX
84.14
Oshkosh
OSK 87.49
s OwensCorning OC
89.59
PG&E
PCG 55.05
PLDT
PHI
29.95
PNC Fin
PNC 135.68
POSCO
PKX 74.47
PPG Ind
PPG 117.34
PPL
PPL 36.53
s PVH
PVH 137.56
PackagingCpAm PKG 112.95
PaloAltoNtwks PANW 149.10
ParkHotels
PK
28.12
ParkerHannifin PH 185.73
ParsleyEnergy PE
26.31
Pearson
PSO
9.34
PembinaPipeline PBA 34.53
Pentair
PNR 69.32
PepsiCo
PEP 116.77
s PerkinElmer PKI
73.80
Perrigo
PRGO 87.03
PetroChina PTR 68.19
PetroleoBrasil PBR 10.16
PetroleoBrasilA PBR.A 9.84
Pfizer
PFE 35.85
PhilipMorris PM 102.88
Phillips66
PSX 94.05
PinnacleFoods PF
56.84
PinnacleWest PNW 90.78
PioneerNatRscs PXD 151.09
t PlainsAllAmPipe PAA 18.73
PlainsGP
PAGP 19.77
s PolarisIndustries PII 127.66
Potash
POT 19.47
s Praxair
PX 156.36
s PrincipalFin PFG 70.05
Procter&Gamble PG
89.40
s Progressive PGR 52.78
Prologis
PLD 66.69
PrudentialFin PRU 112.83
Prudential
PUK 50.76
PublicServiceEnt PEG 52.04
0.24
1.57
0.55
0.50
1.02
-0.01
2.31
0.51
1.85
0.56
4.84
-0.42
-0.64
0.60
0.06
0.96
-0.16
0.90
2.26
0.03
0.08
0.34
9.25
1.12
2.53
0.87
1.22
0.69
0.63
2.38
2.90
1.05
0.38
1.28
0.38
1.26
0.23
-0.42
0.12
...
0.08
4.56
-0.80
0.31
1.01
1.40
0.61
1.65
0.09
0.02
-7.01
...
0.50
-0.59
2.02
0.31
0.99
0.23
0.04
0.79
0.87
-0.05
0.10
0.31
0.04
0.07
1.33
2.67
4.27
0.85
0.42
0.43
0.27
0.04
0.88
-0.73
1.81
0.13
0.03
-0.05
0.44
1.73
1.73
0.86
-1.08
3.12
1.56
1.49
-0.05
2.32
1.53
-1.57
-0.58
1.92
-0.09
0.13
-0.09
0.21
0.92
0.24
0.97
...
0.04
...
0.36
0.16
1.24
0.73
0.77
0.51
0.06
0.05
4.24
0.28
4.28
1.37
0.44
0.71
-0.18
3.32
0.51
0.46
Stock
Net
Sym Close Chg
PublicStorage PSA 209.43
s PulteGroup PHM 33.24
QuestDiag
DGX 93.35
s RELX
RENX 23.27
s RELX
RELX 24.01
RPM
RPM 52.72
RSP Permian RSPP 35.76
RalphLauren RL
94.52
RaymondJames RJF 87.04
Raytheon
RTN 188.75
RealtyIncome O
55.88
s RedHat
RHT 129.24
RegencyCtrs REG 67.99
RegionsFin RF
16.00
s ReinsGrp
RGA 161.71
RepublicSvcs RSG 63.50
ResMed
RMD 85.19
RestaurantBrands QSR 65.99
RioTinto
RIO 48.71
s RobertHalf RHI 55.91
Rockwell
ROK 197.13
RockwellCollins COL 132.33
RogersComm B RCI
53.23
Rollins
ROL 45.35
s RoperTech
ROP 265.04
RoyalBkCanada RY
78.39
RoyalBkScotland RBS
7.37
RoyalCaribbean RCL 125.80
RoyalDutchA RDS.A 63.93
RoyalDutchB RDS.B 65.82
SAP
SAP 115.52
S&P Global SPGI 165.83
SINOPEC
SHI
59.12
SK Telecom SKM 26.69
SLGreenRealty SLG 100.88
Salesforce.com CRM 106.46
Sanofi
SNY 45.84
SantanderCons SC
17.00
Sasol
SSL 30.93
Scana
SCG 43.52
Schlumberger SLB 62.29
s SchwabC
SCHW 47.14
ScottsMiracleGro SMG 98.44
SealedAir
SEE 47.16
SemicondctrMfg SMI
7.06
SempraEnergy SRE 119.58
SensataTech ST
50.03
ServiceCorp SCI
35.91
ServiceMaster SERV 47.76
ServiceNow NOW 126.63
ShawComm B SJR 22.17
SherwinWilliams SHW 397.54
ShinhanFin SHG 45.15
Shopify
SHOP 112.09
SimonProperty SPG 156.12
s SmithAO
AOS 62.26
Smith&Nephew SNN 35.87
Smucker
SJM 114.93
Snap
SNAP 13.61
SnapOn
SNA 164.07
SOQUIMICH SQM 54.50
Sony
SNE 48.30
Southern
SO
51.49
SoCopper
SCCO 43.06
SouthwestAir LUV 56.17
t SpectraEnerPtrs SEP 39.35
SpectrumBrands SPB 114.31
SpiritAeroSys SPR 83.17
Sprint
S
6.07
Square
SQ
42.55
s StanleyBlackDck SWK 169.10
StarwoodProp STWD 21.70
StateStreet STT 93.14
Statoil
STO 20.23
Steris
STE 88.93
STMicroelec STM 24.03
Stryker
SYK 155.78
SumitomoMits SMFG 8.10
SunComms SUI
92.68
SunLifeFinancial SLF 39.26
SuncorEnergy SU
34.70
SunTrustBanks STI
59.44
SynchronyFin SYF 34.49
Syngenta
SYT 92.47
Sysco
SYY 56.33
TAL Education TAL 28.32
TE Connectivity TEL 95.70
Telus
TU
37.87
TIM Part
TSU 19.31
TJX
TJX 72.65
TaiwanSemi TSM 40.93
Tapestry
TPR 40.65
TargaResources TRGP 41.59
Target
TGT 56.62
TataMotors TTM 32.19
TechnipFMC FTI
27.50
TeckRscsB
TECK 22.88
TelecomArgentina TEO 34.72
TelecomItalia TI
8.34
TelecomItalia A TI.A
6.92
TeledyneTech TDY 185.30
s Teleflex
TFX 270.19
TelefonicaBras VIV 15.22
Telefonica
TEF 10.20
TelekmIndonesia TLK 31.21
Tenaris
TS
28.74
Teradyne
TER 42.99
TevaPharm TEVA 14.69
Textron
TXT 54.32
ThermoFisherSci TMO 196.30
ThomsonReuters TRI
44.61
s ThorIndustries THO 154.37
3M
MMM 235.63
Tiffany
TIF 94.04
TimeWarner TWX 89.62
s Toll Bros
TOL 49.47
s Torchmark
TMK 87.53
Toro
TTC 63.73
TorontoDomBk TD
58.02
Total
TOT 56.61
TotalSystem TSS 74.16
ToyotaMotor TM 126.96
-5.50
0.45
0.85
0.13
0.18
0.66
-0.49
2.15
1.75
1.90
-0.34
1.04
0.57
0.48
2.10
0.85
0.51
0.09
-0.17
1.00
6.09
-0.08
-0.68
0.11
4.41
-0.73
0.11
0.55
2.08
2.03
-0.22
1.43
-0.23
-0.06
-0.33
-0.12
0.23
0.27
0.22
0.90
0.93
1.37
1.21
0.60
-0.15
0.15
0.82
0.40
0.77
-0.36
-0.06
7.33
1.23
-1.27
-0.27
0.89
...
1.68
0.55
2.78
0.24
0.28
-0.07
-0.10
1.57
-0.19
1.94
0.85
-0.08
1.53
3.21
0.01
1.78
0.06
0.48
-0.02
0.66
0.05
-0.65
...
-0.10
2.10
1.28
0.10
1.17
0.78
0.90
-0.35
0.25
1.69
-0.16
0.06
-0.53
0.78
...
0.81
-0.08
...
-0.03
-0.11
1.50
2.25
0.05
0.10
-0.02
-0.19
0.08
0.04
0.84
2.38
0.31
18.12
1.63
0.75
0.55
1.29
1.79
0.80
-0.05
0.24
0.11
0.98
Net
Sym Close Chg
Stock
TransCanada TRP 49.64
TransDigm
TDG 277.06
s TransUnion TRU 55.61
Travelers
TRV 133.01
TurkcellIletism TKC
9.04
TurquoiseHill TRQ
3.02
Twitter
TWTR 21.83
TylerTech
TYL 180.09
s TysonFoods TSN 81.15
UBS Group UBS 17.31
UDR
UDR 39.43
UGI
UGI 47.93
US Foods
USFD 27.63
UltraparPart UGP 22.34
Unilever
UN
58.61
Unilever
UL
57.54
UnionPacific UNP 118.80
UnitedContinental UAL 60.19
UnitedMicro UMC 2.65
UPS B
UPS 115.19
s UnitedRentals URI 156.60
US Bancorp USB 53.02
UnitedTech UTX 117.71
s UnitedHealth UNH 216.14
UniversalHealthB UHS 102.33
s UnumGroup UNM 55.23
VEREIT
VER
7.91
VF
VFC 74.02
s Visa
V
113.36
VailResorts MTN 226.04
Vale
VALE 11.33
ValeantPharm VRX 16.40
ValeroEnergy VLO 83.24
s Vantiv
VNTV 74.31
VarianMed
VAR 109.53
Vectren
VVC 68.50
Vedanta
VEDL 18.82
VeevaSystems VEEV 62.00
Ventas
VTR 63.61
Verizon
VZ
48.82
VistraEnergy VST 19.23
s VMware
VMW 127.34
VornadoRealty VNO 76.72
s VoyaFinancial VOYA 42.94
VulcanMatls VMC 121.66
WABCO
WBC 149.02
WEC Energy WEC 68.93
W.P.Carey
WPC 71.56
WPP
WPP 86.21
Wabtec
WAB 74.86
Wal-Mart
WMT 96.77
WasteConnections WCN 69.30
WasteMgt
WM 81.61
Waters
WAT 197.80
Watsco
WSO 165.67
Wayfair
W
70.07
WellCareHealth WCG 204.11
WellsFargo WFC 55.57
Welltower
HCN 67.12
WestPharmSvcs WST 96.35
WestarEnergy WR 56.51
WestAllianceBcp WAL 56.86
t WesternGasEquity WGP 34.89
WesternGasPtrs WES 43.81
WesternUnion WU 19.69
WestlakeChem WLK 95.34
WestpacBanking WBK 24.00
WestRock
WRK 59.28
Weyerhaeuser WY 35.68
WheatonPrecMet WPM 21.04
Whirlpool
WHR 167.48
Williams
WMB 28.36
WilliamsPartners WPZ 35.53
Wipro
WIT
5.31
WooriBank WF
45.01
Wyndham
WYN 110.35
XPO Logistics XPO 76.57
XcelEnergy XEL 51.25
Xerox
XRX 29.00
s Xylem
XYL 68.52
YPF
YPF 22.58
YumBrands YUM 81.03
YumChina
YUMC 41.23
ZTO Express ZTO 16.00
ZayoGroup ZAYO 35.70
ZimmerBiomet ZBH 115.21
Zoetis
ZTS 71.39
-0.10
3.07
0.02
2.53
-0.09
...
0.01
3.83
-0.09
0.17
-0.07
0.04
0.34
-0.04
0.85
0.89
1.64
1.10
0.03
0.65
3.24
1.30
0.59
3.74
1.59
1.29
-0.13
0.58
0.98
-1.26
0.42
-0.08
1.12
1.17
0.07
0.64
-0.02
-0.97
-0.25
1.16
0.21
1.13
0.43
1.08
2.03
1.86
0.16
0.43
0.37
2.15
0.15
0.55
0.76
1.09
1.19
1.31
1.11
1.62
-0.35
-0.86
0.44
2.14
-0.28
-0.46
0.21
1.15
0.03
0.59
0.15
-0.14
2.48
0.38
0.18
0.01
0.91
1.48
-0.22
0.39
0.77
0.88
-0.18
1.45
0.47
-0.20
0.06
1.82
-0.15
s
s
s
s
s
s
s
s
s
s
s
s
s
NASDAQ
s
s
s
s
s
AGNC Invt
AGNC 20.28
ANGI Homesvcs ANGI 11.93
Ansys
ANSS 150.27
ASML
ASML 184.29
Abiomed
ABMD 197.33
ActivisionBliz ATVI 65.97
AdobeSystems ADBE 185.40
AdvMicroDevices AMD 11.17
AkamaiTech AKAM 55.36
AlexionPharm ALXN 108.10
AlignTech
ALGN 264.23
Alkermes
ALKS 51.15
AlnylamPharm ALNY 129.74
Alphabet C GOOG 1047.41
Alphabet A GOOGL 1063.29
Altaba
AABA 71.98
Amazon.com AMZN 1193.60
Amdocs
DOX 65.24
Amerco
UHAL 357.41
AmerAirlines AAL 49.22
Amgen
AMGN 170.26
AnalogDevices ADI 87.07
Apple
AAPL 173.07
ApplMaterials AMAT 57.33
ArchCapital ACGL 96.68
Atlassian
TEAM 51.19
Autodesk
ADSK 129.95
Net
Sym Close Chg
Stock
0.04
0.12
-0.61
-0.43
-1.12
0.23
0.40
-0.38
0.01
0.35
1.81
0.79
-1.70
-6.80
-8.72
-0.09
-2.23
0.38
2.96
0.80
0.55
-0.38
-1.02
0.39
0.40
-0.36
-0.29
s
t
s
s
s
ADP
ADP 111.22
Baidu
BIDU 244.03
BankofOzarks OZRK 46.13
Biogen
BIIB 317.14
BioMarinPharm BMRN 82.56
BlueBuffaloPet BUFF 30.58
bluebirdbio BLUE 166.45
BrighthouseFin BHF 58.01
Broadcom
AVGO 277.40
CA
CA
32.69
CDK Global CDK 69.47
CDW
CDW 69.42
CH Robinson CHRW 81.53
CME Group CME 145.12
CSX
CSX 52.13
CadenceDesign CDNS 45.19
CaesarsEnt CZR 13.25
Carlyle
CG
20.30
Cavium
CAVM 87.56
CboeGlobalMkts CBOE 122.72
Celgene
CELG 103.99
CentennialRsc CDEV 19.83
Cerner
CERN 69.75
CharterComms CHTR 325.89
CheckPoint CHKP 104.22
ChinaLodging HTHT 114.48
CincinnatiFin CINF 74.25
Cintas
CTAS 152.03
CiscoSystems CSCO 37.73
CitrixSystems CTXS 87.69
Cognex
CGNX 143.83
CognizantTech CTSH 72.87
Coherent
COHR 313.01
Comcast A CMCSA 36.25
CommerceBcshrs CBSH 58.33
CommScope COMM 36.76
Copart
CPRT 41.79
CoStar
CSGP 307.42
Costco
COST 173.65
Ctrip.com
CTRP 46.67
CypressSemi CY
16.87
DISH Network DISH 50.41
DentsplySirona XRAY 68.58
DiamondbkEner FANG 108.23
DiscovComm C DISCK 16.87
DiscovComm B DISCB 20.00
DiscovComm A DISCA 17.97
DollarTree
DLTR 100.94
E*TRADE
ETFC 46.31
EXACT Sci
EXAS 58.79
EastWestBncp EWBC 59.22
eBay
EBAY 35.50
EchoStar
SATS 60.65
ElbitSystems ESLT 144.11
ElectronicArts EA 109.47
Equinix
EQIX 477.95
Ericsson
ERIC 6.44
ErieIndemnity A ERIE 123.00
Exelixis
EXEL 27.01
Expedia
EXPE 125.68
ExpeditorsIntl EXPD 61.27
ExpressScripts ESRX 61.44
F5Networks FFIV 126.67
Facebook
FB 182.42
Fastenal
FAST 50.40
FifthThirdBncp FITB 29.24
FirstSolar
FSLR 62.13
Fiserv
FISV 128.41
Flex
FLEX 18.65
FlirSystems FLIR 47.55
Fortinet
FTNT 42.16
Gaming&Leisure GLPI 36.06
Garmin
GRMN 62.92
GileadSciences GILD 72.59
Goodyear
GT
31.81
Grifols
GRFS 22.61
GpoFinGalicia GGAL 56.01
HD Supply
HDS 35.93
Hasbro
HAS 93.78
HenrySchein HSIC 70.50
Hologic
HOLX 40.45
JBHunt
JBHT 106.03
HuntingtonBcshs HBAN 13.97
IAC/InterActive IAC 133.94
IdexxLab
IDXX 155.02
IHSMarkit
INFO 44.62
IPG Photonics IPGP 241.43
IRSA Prop
IRCP 57.00
IcahnEnterprises IEP
53.28
Icon
ICLR 116.18
Illumina
ILMN 226.28
Incyte
INCY 95.83
Intel
INTC 44.73
InteractiveBrkrs IBKR 56.21
Intuit
INTU 155.79
IntuitiveSurgical ISRG 402.23
IonisPharma IONS 52.93
JD.com
JD
38.57
JackHenry
JKHY 115.33
JazzPharma JAZZ 139.61
JetBlue
JBLU 20.12
JunoTherap JUNO 56.99
KLA Tencor KLAC 107.16
KraftHeinz
KHC 78.98
LKQ
LKQ 38.92
LamResearch LRCX 213.14
LamarAdv
LAMR 74.30
LibertyBroadbandA LBRDA 85.81
LibertyBroadbandC LBRDK 87.07
LibertyGlobal A LBTYA 30.12
LibertyGlobal C LBTYK 29.18
LibertyLiLAC A LILA 21.41
LibertyLiLAC C LILAK 21.30
LibertyQVC A QVCA 24.34
LibertyVenturesA LVNTA 55.81
LibertyFormOne A FWONA 35.21
1.08
-2.99
1.85
5.41
-0.40
0.34
-1.30
0.40
-7.22
0.06
0.60
2.97
1.99
3.05
1.47
0.05
0.10
-0.50
-0.04
2.22
0.66
-0.20
0.23
4.05
-0.50
-0.88
0.84
4.07
0.86
1.54
0.60
0.47
1.81
0.70
1.53
0.56
0.02
-2.07
1.04
-0.14
-0.08
0.76
0.58
0.97
0.48
-1.50
0.50
2.74
1.18
0.37
1.39
-0.49
1.36
-0.94
2.48
-0.97
0.04
...
0.63
-1.00
1.02
-0.03
2.97
-0.61
1.45
0.84
0.48
0.25
...
0.47
0.33
0.32
1.22
0.89
0.92
0.08
1.13
0.85
0.08
0.61
-0.32
2.39
0.47
0.31
-0.41
0.75
0.78
...
0.28
-0.32
2.44
-2.03
0.24
0.64
1.02
-1.47
0.45
-0.09
0.37
1.43
0.44
-4.19
2.77
-0.63
0.54
2.21
-0.63
1.12
1.11
0.20
0.17
0.33
0.09
0.03
0.31
-0.29
Invesco Funds A
11.36 +0.14
EqIncA
John Hancock Class 1
16.15 +0.08
LSBalncd
17.39 +0.11
LSGwth
John Hancock Instl
24.41 +0.27
DispValMCI
JPMorgan Funds
40.53 +0.46
MdCpVal L
JPMorgan R Class
11.64 -0.02
CoreBond
Lazard Instl
19.95 +0.13
EmgMktEq
Loomis Sayles Fds
14.16 -0.03
LSBondI
Lord Abbett A
...
ShtDurIncmA p 4.26
Lord Abbett F
4.26
...
ShtDurIncm
Metropolitan West
10.67 -0.01
TotRetBd
10.67 -0.01
TotRetBdI
10.04 -0.01
TRBdPlan
MFS Funds Class I
41.13 +0.61
ValueI
MFS Funds Instl
25.76 +0.11
IntlEq
Mutual Series
GlbDiscA
NA
...
Oakmark Funds Invest
34.42 +0.33
EqtyInc r
85.53 +1.06
Oakmark
28.74 -0.01
OakmrkInt
Old Westbury Fds
15.12 +0.10
LrgCpStr
Oppenheimer Y
DevMktY
43.03 +0.18
IntGrowY
43.86 +0.17
Parnassus Fds
42.47 +0.39
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
10.28 -0.01
TotRt
PIMCO Funds A
IncomeFd
NA
...
PIMCO Funds D
IncomeFd
NA
...
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
BlChip
99.67 +0.48
CapApp
30.04 +0.19
EqInc
35.41 +0.49
70.73 +0.69
EqIndex
71.66 +0.31
Growth
74.57 +0.25
HelSci
40.48 +0.13
InstlCapG
19.43 +0.06
IntlStk
IntlValEq
15.30 +0.08
MCapGro
94.02 +0.68
Stock
52-Wk %
Sym Hi/Lo Chg
21.09 0.9 LGI Homes
60.47 2.5 LKQ
93.63 0.5 LakelandFin
32.73 0.9 LeggMasonDev
42.31 0.8 LeggMasonLVHD
47.10 4.3 LeggMasonUSDivCore
18.85 2.2 LivaNova
8.77 -0.6 LunaInnov
3.73 8.1 MellanoxTech
62.99 2.0 MidPennBancorp
38.84 4.0 MonotypeImaging
19.07 0.9 NICE
16.69 0.3 Nasdaq
32.58 0.9 NationalVision
34.47 4.4 NeptuneTech
4.35 2.4 NetApp
5.99 2.3 NewsCorp B
34.59 3.4
NewsCorp A
15.78 2.1
NuvNasd100Dyn
222.00 4.8
OakValleyBncp
26.60 0.3
28.34 1.5 OldDomFreight
226.42 1.1 OtterTail
20.00 13.8 PDLCommBncp
4.50 7.5 PRGXGlobal
126.76 0.9 PatrickIndustries
56.26 1.2 Perceptron
53.49 0.6 PilgrimPride
53.95 1.5 PinnacleEnt
97.01 1.2 Plexus
35.63 0.5 PwrShDWA Mom
71.66 0.8 PwrShDWASCMom
57.48 0.8 PwrShDWATact
155.27 1.4 PwrShDivAch
171.36 1.7 PwrShDynConDis
148.85 1.7 PwrShDynConsStp
115.94 0.3 PwrShDynFinl
19.40 0.5 PwrShDynHlthcr
LGIH
LKQ
LKFN
DDBI
LVHD
UDBI
LIVN
LUNA
MLNX
MPB
TYPE
NICE
NDAQ
EYE
NEPT
NTAP
NWS
NWSA
QQQX
OVLY
ODFL
OTTR
PDLB
PRGX
PATK
PRCP
PPC
PNK
PLXS
PDP
DWAS
DWTR
PFM
PEZ
PSL
PFI
PTH
70.56 3.6
39.03 1.4
50.40 3.0
29.67 0.3
31.36 0.9
31.53 1.1
88.30 1.8
2.40 3.5
59.85 1.3
35.75 8.6
25.78 0.4
88.52 1.1
78.42 1.4
32.89 -0.9
1.81 1.3
56.91 1.0
16.35 2.5
16.16 2.6
24.51 0.2
18.19 -0.8
124.99 1.2
47.85 1.7
16.95 1.0
7.90 4.1
98.15 4.1
10.71 2.5
35.83 0.4
29.92
...
64.12 0.8
51.87 0.6
48.99 1.8
28.89 1.0
25.78 0.9
49.81 0.8
63.40 1.0
34.95 1.3
70.44 0.9
Net YTD
NAV Chg % Ret Fund
8.7
14.4
18.3
13.7
11.3
3.8
25.6
7.1
2.2
2.5
3.0
3.3
3.4
14.8
27.1
NA
13.1
18.0
26.6
17.8
34.6
26.5
15.5
NA
5.0
NA
NA
NA
NA
37.3
14.7
14.1
19.2
34.6
26.2
38.4
27.1
19.4
24.7
MCapVal
N Horiz
N Inc
OverS SF r
R2020
R2025
R2030
R2035
R2040
Value
31.82 +0.31
56.39 +0.48
9.50
...
11.44 +0.03
23.47 +0.10
18.13 +0.09
26.74 +0.15
19.57 +0.11
28.15 +0.18
39.58 +0.45
PRIMECAP Odyssey Fds
37.67 +0.29
Growth r
Principal Investors
14.07 +0.04
DivIntlInst
Prudential Cl Z & I
14.56
...
TRBdZ
Schwab Funds
41.12 +0.40
S&P Sel
TIAA/CREF Funds
19.74 +0.20
EqIdxInst
IntlEqIdxInst 20.52 +0.11
Tweedy Browne Fds
28.60 +0.17
GblValue
VANGUARD ADMIRAL
243.27 +2.39
500Adml
34.52 +0.21
BalAdml
CAITAdml
11.71 -0.02
CapOpAdml r 159.35 +1.13
37.76 +0.20
EMAdmr
EqIncAdml
77.59 +0.92
97.71 +1.08
ExplrAdml
84.33 +0.96
ExtndAdml
GNMAAdml 10.49 -0.01
72.08 +0.33
GrwthAdml
HlthCareAdml r 89.57 +0.42
HYCorAdml r 5.92 -0.01
InfProAd
25.86
...
96.95 +0.10
IntlGrAdml
...
ITBondAdml 11.42
ITIGradeAdml 9.80
...
LTGradeAdml 10.71 +0.02
MidCpAdml 189.22 +1.91
11.34 -0.02
MuHYAdml
14.04 -0.03
MuIntAdml
MuLTAdml
11.58 -0.03
10.88 -0.02
MuLtdAdml
MuShtAdml 15.72 -0.01
PrmcpAdml r 139.18 +1.09
REITAdml r 119.31 -0.52
SmCapAdml 70.36 +0.84
...
STBondAdml 10.41
STIGradeAdml 10.66
...
10.77
...
TotBdAdml
TotIntBdIdxAdm 22.02 +0.01
TotIntlAdmIdx r 30.34 +0.13
65.86 +0.66
TotStAdml
TxMIn r
14.34 +0.07
40.43 +0.59
ValAdml
69.91 +0.97
WdsrllAdml
65.82 +0.31
WellsIAdml
74.60 +0.60
WelltnAdml
52-Wk %
Sym Hi/Lo Chg Stock
PwrShDynIndls PRN
PwrShUS1500 PRFZ
PwrShGlbWater PIO
PwrShHY EqDiv PEY
PwrShQQQ 1
QQQ
PwrShRuss1000Low USLB
PwrShS&P SC CD PSCD
PwrShS&P SC Fin PSCF
PwrShS&P SmInds PSCI
PwrShS&PSCMatls PSCM
PwrShS&PSC Util PSCU
PwrShWaterRscs PHO
PreformedLine
PLPC
PrincplMillennials GENY
PrincipalPriceSet PSET
ProShEquRising EQRR
ProShUltPrQQQ TQQQ
QuinStreet
QNST
RealPage
RP
RedRockResorts RRR
Roku
ROKU
SBA Comm
SBAC
SEI Investments SEIC
SageTherap
SAGE
SchmittIndustries SMIT
scPharm
SCPH
SeacoastBkgFL SBCF
SelectiveIns
SIGI
SierraOncology SRRA
SodaStream
SODA
SouthernFirstBcsh SFST
SoMO Bancorp SMBC
StateBankFin
STBZ
StemlineTherap STML
StitchFix
SFIX
Surmodics
SRDX
TRowePrice
TROW
TechTarget
TTGT
TexasInstruments TXN
tronc
TRNC
TrustcoBank
TRST
61.39
130.40
25.83
17.55
156.69
30.65
58.11
55.41
63.80
52.01
56.73
30.17
84.95
33.96
31.64
43.97
141.35
10.95
46.00
30.86
51.80
173.97
69.52
100.50
2.69
15.44
26.07
60.55
2.84
69.19
42.00
40.12
30.54
15.45
24.89
33.45
99.80
13.88
99.73
17.77
9.40
1.4
1.3
0.8
1.2
0.3
0.3
1.1
1.9
1.6
1.9
0.4
1.5
3.4
0.3
1.1
-0.8
0.7
10.7
3.5
4.4
-0.2
-0.2
1.6
-0.3
12.2
4.5
3.0
2.2
9.0
3.1
1.0
2.6
2.9
2.7
-0.1
2.6
1.8
0.8
0.9
1.0
2.7
Net YTD
NAV Chg % Ret Fund
9.5
30.2
3.9
26.1
15.0
17.0
18.7
20.1
21.3
17.6
31.5
27.9
6.2
19.5
19.0
24.0
14.2
19.5
12.6
4.0
28.2
29.3
15.7
21.5
16.9
2.0
26.9
18.2
6.6
2.4
44.0
4.0
4.3
10.5
17.3
6.6
3.7
5.1
1.9
1.0
27.9
4.9
14.9
1.3
2.2
3.5
2.5
25.6
19.0
24.6
13.7
13.3
9.0
12.7
WndsrAdml
80.61 +1.05
VANGUARD FDS
26.81 +0.27
DivdGro
212.31 +0.99
HlthCare r
INSTTRF2020 22.77 +0.10
INSTTRF2025 23.07 +0.12
INSTTRF2030 23.29 +0.13
INSTTRF2035 23.51 +0.14
INSTTRF2040 23.73 +0.16
INSTTRF2045 23.89 +0.17
40.01 +0.19
IntlVal
20.04 +0.06
LifeCon
33.62 +0.21
LifeGro
27.24 +0.13
LifeMod
27.55 +0.26
PrmcpCor
33.83 +0.45
SelValu r
27.57 +0.14
STAR
10.66
...
STIGrade
16.06 +0.05
TgtRe2015
31.94 +0.14
TgtRe2020
18.75 +0.09
TgtRe2025
33.91 +0.19
TgtRe2030
20.85 +0.13
TgtRe2035
35.95 +0.24
TgtRe2040
22.59 +0.16
TgtRe2045
36.34 +0.25
TgtRe2050
TgtRetInc
13.67 +0.03
...
TotIntBdIxInv 11.01
27.17 +0.13
WellsI
43.19 +0.34
Welltn
39.39 +0.55
WndsrII
VANGUARD INDEX FDS
243.22 +2.38
500
ExtndIstPl
208.12 +2.38
56.51 +0.86
SmValAdml
10.74
...
TotBd2
TotIntl
18.14 +0.08
65.83 +0.66
TotSt
VANGUARD INSTL FDS
34.53 +0.22
BalInst
DevMktsIndInst 14.36 +0.07
DevMktsInxInst 22.44 +0.10
84.33 +0.96
ExtndInst
GrwthInst
72.09 +0.33
10.53
...
InPrSeIn
240.01 +2.35
InstIdx
InstPlus
240.03 +2.35
59.08 +0.60
InstTStPlus
41.80 +0.42
MidCpInst
MidCpIstPl 206.16 +2.09
SmCapInst
70.36 +0.84
...
STIGradeInst 10.66
10.77
...
TotBdInst
TotBdInst2
10.74
...
10.77
...
TotBdInstPl
TotIntBdIdxInst 33.04 +0.01
TotIntlInstIdx r 121.35 +0.54
TotItlInstPlId r 121.37 +0.54
65.87 +0.66
TotStInst
40.43 +0.59
ValueInst
Western Asset
CorePlusBdI
NA
...
52-Wk %
Sym Hi/Lo Chg Stock
USA Truck
USAK
Umpqua
UMPQ
UnityBancorp
UNTY
UniversalForest UFPI
VangdIntlDivApp VIGI
VangdRuss1000 VONE
VangdRuss1000Grw VONG
VangdRuss1000Val VONV
VangdRuss3000 VTHR
VangdRuss2000 VTWO
VangdRuss2000Grw VTWG
VangdRuss2000Val VTWV
VangdTotalCpBd VTC
VarexImaging
VREX
VSInverseVIXSTerm XIV
VeriSign
VRSN
VeriskAnalytics VRSK
VicShIntlVolWtd CIL
VicShUSDiscEnhVol CSF
VicShUSEQIncmEnh CDC
VicShUS500EnhVol CFO
VicShUS500Vol CFA
VicShUSLCHiDivVol CDL
VicShUSSCHiDiv CSB
VicShUSSCVolWtd CSA
VidentCoreUSEquity VUSE
WestBancorp
WTBA
WintrustFin
WTFC
WisdTrUSQltyDiv DGRW
WisdTrUSSCQltyDiv DGRS
XenithBkshrs
XBKS
ZionsBancorpWt ZIONW
Zynga
ZNGA
17.4
16.2
18.1
13.1
14.7
16.2
17.5
19.0
19.6
26.0
10.2
17.6
13.9
24.2
17.5
17.2
2.1
10.7
13.0
14.7
16.1
17.5
19.0
19.6
19.6
8.0
2.4
8.9
12.6
13.2
19.4
17.0
10.1
3.5
25.5
18.9
12.6
24.6
24.6
17.0
26.9
2.4
19.5
19.5
19.0
17.3
17.3
14.9
2.2
3.5
3.5
3.5
2.5
25.6
25.6
19.0
13.7
NA
52-Wk %
Sym Hi/Lo Chg
18.13 4.8 ArcadiaBiosci
RKDA
21.45 3.8 ArchrockPtrs
APLP
20.70 1.2 AurisMedical
EARS
38.73 2.4 AvenueTherap
ATXI
66.50 0.7 AvistaHealthcare AHPA
120.72 0.9 BIO-key
BKYI
137.08 0.6 BigRockPtrsAcqnUn BRPAU
106.10 1.3 BlackRockCapInvt BKCC
120.82 0.9 BurconNutraScience BUR
122.76 1.6 CTI BioPharma CTIC
135.18 1.4 Check-Cap
CHEK
110.10 1.9 ClearSignWt
CLIRW
85.14
... Curis
CRIS
37.51 1.5 EssaPharma
EPIX
121.38 1.4 ForwardPharma FWP
118.28 -0.1 HarvestCapCredit HCAP
95.25 1.1 HaymakerAcqnUn HYACU
40.23 0.3 HaymakerAcqWt HYACW
45.28 2.0 Ikonics
IKNX
45.93 1.2 Incyte
INCY
47.92 1.2 iPath2yearBull
DTUL
47.94 1.2
Medigus
MDGS
44.68 1.2
PICO
PICO
43.83 1.0
PapaJohn's
PZZA
45.88 1.1
ProShUltProShQQQ
SQQQ
32.85 1.7
Prothena
PRTA
26.85 3.7
82.48 4.3 ReShapeLifesci RSLS
40.39 1.1 ReWalkRobotics RWLK
RMNI
35.72 1.9 RiminiStreet
SKLN
33.99 3.3 SkylineMedical
SLNO
16.12 11.6 SolenoTherap
SOFO
4.30 2.6 SonicFoundry
TESARO
TSRO
The9
NCTY
TremontMortgage TRMT
VS2xVIXShortTerm
TVIX
3.05 -19.9
13.95 4.3 VSVIXShortTerm VIIX
1.89 -2.0 VistaGenTherap VTGN
2.89 -9.4 WestmorelandCoal WLB
12.95 -2.0 ZealandPharma ZEAL
Nasdaq lows - 45
ADOMANI
ADOM
A-MarkPrecMetals AMRK
Altimmune
ALT
AmeriHoldings AMRH
ApellisPharm
APLS
Net YTD
NAV Chg % Ret
0.20
10.66
0.38
3.50
9.28
1.32
10.00
6.49
0.40
2.66
1.01
0.50
0.83
0.24
4.02
10.76
9.93
0.82
7.34
94.78
61.24
1.60
12.75
55.05
21.35
44.04
1.40
1.05
6.48
1.17
1.32
2.91
79.03
0.68
15.02
6.94
13.11
0.69
0.95
13.45
-3.1
-0.5
-48.2
-7.1
-0.4
-0.8
...
-0.2
-6.5
-6.6
-1.0
-7.7
-1.8
-10.9
-5.2
-5.7
...
-9.4
-1.7
-2.1
-5.4
-1.7
1.9
-0.7
-0.7
-1.6
-2.7
-4.5
7.6
2.4
-5.4
-5.9
-1.0
-2.1
-0.5
-2.5
-1.3
-10.0
-3.3
-4.0
Net
Sym Close Chg
Stock
s
s
s
s
s
s
s
s
s
s
s
s
LibertyFormOne C FWONK 36.83 -0.41
LibertyBraves A BATRA 22.39 0.13
LibertyBraves C BATRK 22.51 0.16
LibertySirius C LSXMK 40.53 -0.32
LibertySirius A LSXMA 40.50 -0.36
LincolnElectric LECO 89.79 1.60
LogitechIntl LOGI 35.52 0.06
LogMeIn
LOGM 120.85 1.40
lululemon
LULU 67.37 1.24
MarketAxess MKTX 193.43 4.87
Marriott
MAR 126.90 -0.03
MarvellTech MRVL 23.27 -0.11
MatchGroup MTCH 30.50 -0.11
Mattel
MAT 18.24 0.01
MaximIntProducts MXIM 53.86 0.57
MelcoResorts MLCO 26.26 0.07
MercadoLibre MELI 269.84 -2.78
MicrochipTech MCHP 90.58 1.65
MicronTech MU
47.93 -0.12
Microsemi
MSCC 54.45 -0.09
Microsoft
MSFT 84.88 1.01
Middleby
MIDD 124.70 4.48
Momo
MOMO 25.08 -5.82
Mondelez
MDLZ 42.61 0.14
MonsterBev MNST 62.09 0.32
Mylan
MYL 36.88 0.42
NXP Semi
NXPI 113.79 -0.74
Nasdaq
NDAQ 78.34 1.11
NatlInstruments NATI 44.33 0.09
NektarTherap NKTR 52.12 0.15
NetApp
NTAP 56.80 0.57
Netease
NTES 331.99 -1.54
Netflix
NFLX 199.18 4.13
Neurocrine
NBIX 68.19 -3.11
NewsCorp B NWS 16.35 0.40
NewsCorp A NWSA 16.15 0.41
Nordson
NDSN 129.00 0.94
NorthernTrust NTRS 96.29 2.18
NorwegCruise NCLH 55.31 -0.30
NVIDIA
NVDA 210.71 -3.43
OReillyAuto ORLY 228.47 12.13
OldDomFreight ODFL 124.87 1.53
ON Semi
ON
21.12 0.01
OpenText
OTEX 33.06 -0.04
PTC
PTC 65.69 0.23
Paccar
PCAR 68.53 1.63
PacWestBancorp PACW 46.24 1.52
Paychex
PAYX 65.80 1.12
PayPal
PYPL 77.79 -0.05
People'sUtdFin PBCT 18.71 0.54
PilgrimPride PPC 35.77 0.14
Priceline
PCLN 1752.02 -11.38
Qiagen
QGEN 32.17 0.35
Qorvo
QRVO 79.03 -0.71
Qualcomm
QCOM 68.38 0.81
RandgoldRscs GOLD 97.06 -0.17
RegenPharm REGN 366.00 -8.53
RossStores ROST 72.81 1.48
RoyalGold
RGLD 85.12 -1.26
Ryanair
RYAAY 122.20 1.80
SBA Comm SBAC 172.09 -0.26
SEI Investments SEIC 69.52 1.10
Sina
SINA 105.28 -0.04
SS&C Tech SSNC 41.54 0.64
SVB Fin
SIVB 221.33 7.92
ScrippsNetworks SNI
80.50 0.77
Seagate
STX 39.98 0.90
SeattleGenetics SGEN 58.69 0.06
Shire
SHPG 149.51 3.30
SignatureBank SBNY 134.36 5.00
SiriusXM
SIRI
5.43 -0.01
Skyworks
SWKS 107.55 0.33
Splunk
SPLK 81.42 -0.67
Starbucks
SBUX 56.66 0.75
SteelDynamics STLD 37.16 -0.20
Symantec
SYMC 28.97 0.13
Synopsys
SNPS 89.80 0.57
TD Ameritrade AMTD 50.00 0.75
T-MobileUS TMUS 61.38 -1.40
TRowePrice TROW 99.75 1.78
TakeTwoSoftware TTWO 116.19 -1.60
Tesla
TSLA 317.55 0.74
TexasInstruments TXN 99.48 0.85
TractorSupply TSCO 67.75 3.03
Trimble
TRMB 42.40 -0.02
21stCenturyFoxA FOXA 30.86 0.47
21stCenturyFoxB FOX 30.17 0.47
UltaBeauty ULTA 217.07 10.38
UltSoftware ULTI 202.95 7.02
UnivDisplay OLED 186.00 0.15
VEON
VEON 4.12 -0.01
VeriSign
VRSN 117.01 -0.08
VeriskAnalytics VRSK 95.23 1.01
VertxPharm VRTX 147.32 -1.23
Viacom B
VIAB 27.03 0.49
Viacom A
VIA 32.90 0.30
Vodafone
VOD 30.56 0.11
WalgreensBoots WBA 72.24 2.85
Weibo
WB 116.01 1.64
WesternDigital WDC 86.89 0.34
WillisTowers WLTW 159.40 0.90
Workday
WDAY 114.76 -0.18
WynnResorts WYNN 157.50 -0.99
Xilinx
XLNX 72.17 -0.32
YY
YY 111.34 -2.05
Yandex
YNDX 34.49 0.06
ZebraTech
ZBRA 109.34 0.61
Zillow C
Z
42.36 -0.23
Zillow A
ZG
42.31 -0.42
ZionsBancorp ZION 48.09 1.67
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil
IMO
47.60 0.41
27.80 -0.04
25.93 0.07
30.97 0.16
BANKRATE.COM® MMA, Savings and CDs
Average Yields of Major Banks
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Stock
Type
Tuesday, November 28, 2017
MMA
1-MO
2-MO
3-MO
6-MO
1-YR
2-YR
2.5YR
5YR
0.13
0.26
0.07
0.07
0.07
0.08
0.13
0.14
0.20
0.22
0.36
0.38
0.50
0.54
0.47
0.50
0.94
0.99
0.01
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.02
0.01
0.01
0.01
0.01
0.00
National average
Savings
Jumbos
Weekly change
Savings
Jumbos
Consumer Savings Rates
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
not an indication of financial strength or weakness. Information is believed to be reliable, but not
guaranteed.
High yield savings
Bank/rank
Phone number
Minimum
Yield
(%)
Money market and savings account
DollarSavingsDirect /4
(866) 395-8693
CIT Bank /5
(855) 462-2652
Barclays /5
(888) 720-8756
$1
1.50
$100
1.35
$0
1.30
EH National Bank /5
$0
(888) 392-5265
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
VirtualBank /4
$10,000
(877) 998-2265
0.81
One-month CD
Minimum
Yield
(%)
Six-month CD
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
CD Bank /4
$10,000
(888) 201-8185
1.42
1.41
1.40
One-year CD
0.30
0.15
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Bank/rank
Phone number
Banesco USA /4
$1,500
(786) 552-0524
CD Bank /4
$10,000
(888) 201-8185
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
1.75
1.75
1.71
Two-year CD
$10,000
0.15
$1,000
0.05
Three-month CD
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
CD Bank /4
$10,000
(888) 201-8185
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
Banesco USA /4
$1,500
(786) 552-0524
Goldwater Bank /NR
$5,000
(480) 281-8200
1.88
1.85
1.85
Five-year CD
1.16
1.15
1.06
Capital One 360 /5
$0
(800) 289-1992
Goldman Sachs Bank USA /5
$500
(855) 730-7283
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
2.45
2.40
2.38
High yield jumbos - Minimum is $100,000
Money market and savings account
ableBanking,adivisionofNortheastBank/5
(877) 505-1933
M.Y. Safra Bank, FSB /NR
(212) 652-7200
BBVA Compass /3
(800) COMPASS
1.30
1.26
1.25
One-month CD
EH National Bank /5
(888) 392-5265
M.Y. Safra Bank, FSB /NR
(212) 652-7200
USAA /NR
(800) 583-8295
0.30
0.22
1.41
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
First Internet Bank of Indiana /4
(888) 873-3424
M.Y. Safra Bank, FSB /NR
(212) 652-7200
1.77
1.71
1.70
Two-year CD
0.15
0.05
0.01
Three-month CD
TriState Capital Bank /4
(866) 680-8722
M.Y. Safra Bank, FSB /NR
(212) 652-7200
Luana Savings Bank /5
(800) 666-2012
1.45
1.42
One-year CD
0.81
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Citizens Trust Bank /4
(404) 659-5959
Six-month CD
TriState Capital Bank /4
(866) 680-8722
M.Y. Safra Bank, FSB /NR
(212) 652-7200
First Internet Bank of Indiana /4
(888) 873-3424
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
First Internet Bank of Indiana /4
(888) 873-3424
VirtualBank /4
(877) 998-2265
2.00
1.88
1.84
Five-year CD
1.30
1.16
1.15
First Internet Bank of Indiana /4
(888) 873-3424
Synchrony Bank /5
(800) 903-8154
EverBank /4
(855) 228-6755
2.38
2.35
2.35
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
month, three (3) of which may be checks. Rates are subject to change.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.com
THE WALL STREET JOURNAL.
B12 | Wednesday, November 29, 2017
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
23836.71 s 255.93, or 1.09%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 20.99 20.86
P/E estimate *
19.35 17.86
Dividend yield
2.19
2.44
All-time high 23836.71, 11/28/17
Nasdaq Composite Index
Last
2627.04 s 25.62, or 0.98%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.49 24.35
P/E estimate *
19.50 18.45
Dividend yield
1.92
2.12
All-time high: 2627.04, 11/28/17
Last Year ago
6912.36 s 33.84, or 0.49%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.45
24.02
P/E estimate *
21.39
19.50
Dividend yield
1.04
1.24
All-time high: 6912.36, 11/28/17
Current divisor 0.14523396877348
24000
2640
6900
23500
2600
6750
23000
2560
6600
22500
2520
6450
22000
2480
Session high
UP
Close
t
DOWN
Session open
Open
t
Close
Session low
65-day moving average
65-day moving average
6300
65-day moving average
6150
2440
21500
Bars measure the point change from session's open
Sept.
Oct.
Aug.
Nov.
6000
2400
21000
Aug.
Sept.
Oct.
Aug.
Nov.
Sept.
Oct.
Nov.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
1.09 23836.71 19121.60
23849.61 23617.11 23836.71 255.93
Industrial Average
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
9757.65
9591.59
767.38
763.69
27241.54 26999.79 27236.39 273.24
704.94
695.71
704.75 10.39
Nasdaq Stock Market
Nasdaq Composite
6914.19
Nasdaq 100
6426.04
Standard & Poor's
500 Index
2627.69
6866.21
6385.32
6912.36
6422.56
2605.44
25.62
9.1
7.9
2.0
774.47
626.66
17.0
16.1
8.5
1.01 27236.39 22773.93
583.16
1.50 704.75
18.8
19.5
17.0
17.1
8.3
9.3
0.49
33.84
16.59
2627.04
20.6
8783.74
0.46
3.52
766.06
24.7
10038.13
1.65
9754.03 158.80
0.26
0.98
6912.36
6422.56
5251.11
4734.10
2627.04
28.5
31.8
2191.08
10.2
28.4
32.1
19.2
17.3
13.0
14.0
8.3
MidCap 400
SmallCap 600
1880.52
938.13
1858.88
923.16
1880.26
937.77
24.15
15.59
1.30 1880.26
937.77
1.69
1623.28
808.59
15.3
15.1
13.2
11.9
9.2
11.5
Other Indexes
Russell 2000
1536.63
1514.15
1536.43
23.12
1.53 1536.43
1313.80
15.7
13.2
9.4
1.04 12520.23 10817.70
12523.64 12409.62 12520.23 129.45
NYSE Composite
554.77
547.62
NYSE Arca Biotech
4180.96
4125.24
NYSE Arca Pharma
543.18
539.11
542.10
4.14
KBW Bank
101.79
98.77
101.65
2.94
81.71
81.00
81.14
-0.33
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
CBOE Volatility
1.30
7.10
554.72
-0.28
4159.36 -11.86
130.75
128.99
130.52
0.76
1326.46
10.31
1316.14
9.53
1323.08
10.03
-1.07
0.16
0.77
2.98
-0.41
0.58
-0.08
15.7
13.2
4.6
554.72
496.60
11.0
9.6
3.6
4304.77
3075.02
26.5
35.3
6.6
Volume, Advancers, Decliners
Company
Volume
(000)
Symbol
Region/Country Index
Close
Net chg
13.89
1.76
–0.20
DJ Americas
631.11
Sao Paulo Bovespa 74139.72
S&P/TSX Comp
16029.64
S&P/BMV IPC
47229.16
Santiago IPSA
3836.49
5.37
80.80
–12.48
–46.16
21.73
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
387.02
390.09
3985.66
5390.48
13059.53
1446.67
22291.77
543.59
1159.41
10144.40
578.58
9320.44
7460.65
2.15
2.02
14.42
30.39
59.33
10.81
115.07
5.50
–1.15
81.30
3.97
56.05
76.75
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5984.30
Shanghai Composite 3333.66
Hang Seng
29680.85
S&P BSE Sensex
33618.59
Nikkei Stock Avg
22486.24
Straits Times
3442.35
Kospi
2514.19
Weighted
10707.07
–4.50
11.43
–5.34
–105.85
–9.75
5.99
6.38
–43.86
44.81
-0.11
-0.24
44.99
44.43
27.69
0.05
0.18
27.73
26.68
3,987.5
36.88
…
unch.
36.89
36.83
iShares MSCI Emg Markets EEM
3,781.2
47.48
0.12
0.25
47.48
47.30
iShares Russell 2000 ETF IWM
3,361.9 152.71
-0.15
Kinder Morgan
KMI
3,220.7
17.03
…
unch.
17.06
17.03
AT&T
T
3,087.8
35.36
-0.06
-0.17
35.45
34.71
499.1
16.90
1.04
6.56
17.00
15.45
35.1
7.70
0.45
6.21
7.70
7.25
477.1
20.65
1.02
5.20
21.25
19.65
General Motors
GM
5,756.4
Bank of America
BAC
5,082.5
Mylan
MYL
Cytokinetics
CYTK
Regal Entertainment Grp RGC
American Equity
AEL
13.4
32.59
1.55
4.99
32.59
31.04
Seabridge Gold
SA
15.6
11.50
0.50
4.55
11.50
11.00
64.4
6.50
-1.20
-15.58
7.80
6.10
14.8
12.6
-0.5
...And losers
85.55
18.8
10.7
11.8
Wesco Aircraft Holdings WAIR
96.72
73.03
0.3
2.9
5.9
117.79
-19.0
1,278.3 116.20 -13.75
-10.58 130.02 109.00
115.7 157.00 -15.29
-8.87 172.50 157.00
Autodesk
ADSK
-29.0 -15.4
Dominos Pizza
DPZ
46.0
-28.6
Gridsum Holding ADR
GSUM
20.0
9.25
-0.75
-7.50
10.50
8.40
Scorpio Tankers
STNG
33.9
3.05
-0.21
-6.44
3.26
2.81
24.5
-9.0
Latest
% chg
YTD
% chg
0.47
0.45
18.5
19.7
22.3
0.86
0.11
16.8
23.1
4.9
3.5
19.0
–0.08
–0.08
–0.10
0.57
0.56
0.52
0.36
0.57
0.46
0.75
0.52
1.02
–0.10
0.81
0.69
0.61
1.04
–0.08
–0.02
–0.31
–0.04
0.34
0.17
0.25
–0.41
7.1
11.4
10.5
10.9
13.7
–1.6
15.9
12.5
0.6
8.5
8.2
13.4
4.4
5.6
7.4
34.9
26.3
17.6
19.5
24.1
15.7
Company
Symbol
Apollo Endosurgery
Veritone
RYB Education ADR
Ominto
China Recycling Energy
APEN
Newater Technology
Aquantia
InflaRx
Thor Industries
Forterra
NEWA
Schmitt Industries
Surgery Partners
AzurRx BioPharma
Ascent Capital Grp A
Direxion Rg Banks Bull 3X
SMIT
-57.1
...
...
49.7
88.6
Marathon Patent Group
Digital Power
Diana Containerships
ADOMANI
Aratana Therapeutics
MARA
9.96 1.28
13.46 1.66
19.00 2.30
154.37 18.12
9.80 1.12
14.75
14.07
13.77
13.30
12.90
16.25 7.32
13.52 9.01
20.00 14.47
155.46 87.96
22.76 3.02
...
...
...
51.6
-48.8
Momo ADR
OptimumBank Holdings
Stone Energy
Allied Healthcare Prods
Pyxis Tankers
MOMO
12.19
11.63
11.50
11.19
11.03
2.69 1.48
24.05 7.10
5.25 2.40
18.96 8.87
81.77 43.51
38.5
-35.8
-20.2
-28.6
24.0
FlexShares Core Sel Bd Fd
Xunlei ADR
Pulse Biosciences
China Lending
Alphatec Holdings
BNDC
CREG
THO
FRTA
2.48
SGRY
9.60
AZRX
3.20
ASCMA 12.62
DPST
69.48
0.27
1.00
0.33
1.27
6.90
Most Active Stocks
Company
Symbol
Bank of America
Finl Select Sector SPDR
SPDR S&P 500
Advanced Micro Devices
Square Cl A
BAC
General Electric
Rite Aid
iShares MSCI Emg Markets
Vale ADR
VelocityShares 3x Lg Nat
GE
XLF
SPY
AMD
SQ
RAD
EEM
VALE
UGAZ
Volume % chg from Latest Session
(000) 65-day avg Close % chg
94,245
85,822
83,617
64,226
55,900
48.2
68.9
36.2
15.0
391.2
27.64 3.95
26.88 2.60
262.87 1.01
11.17 -3.29
42.55 3.73
53,706
50,993
50,576
46,843
45,466
-24.7 18.41 1.60
92.4 1.89 15.95
4.0 47.36 0.74
68.0 11.33 3.85
133.6 9.43 9.78
52-Week
High
Low
27.98 20.25
26.93 22.00
262.90 219.15
15.65
8.26
49.56 12.38
32.38
8.77
47.93
11.72
52.49
17.46
1.38
33.94
7.47
7.60
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
t
1.00
0.00
2.88%
800-530-2680
Schools First FCU
Santa Ana, CA
2.88%
800-462-8328
Citizens Equity First Credit Union
3.00%
Peoria, IL
309-633-3603
StateDepartmentFederalCreditUnion
3.00%
Alexandria, VA
800-296-8882
Tuesday
1
3 6
month(s)
0
1.50
–5
One year ago 0.75
–10
0.00
–15
1 2 3 5 710
years
maturity
Euro
5
2.25
t
2.00
Epic Funding
Fort Myers, FL
t
3.00
3.00
Third Federal Savings and Loan
2.69%
Cleveland, OH
866-627-1785
10%
30
s
4.00%
Yen
s
WSJ Dollar index
2017
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.45
1.48
Money market, annual yield
0.32
0.33
Five-year CD, annual yield
1.48
1.48
30-year mortgage, fixed†
3.91
3.88
15-year mortgage, fixed†
3.32
3.28
Jumbo mortgages, $424,100-plus† 4.27
4.29
Five-year adj mortgage (ARM)† 3.62
3.60
New-car loan, 48-month
3.01
3.02
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.93 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.25
4.25
1.48
0.36
1.49
4.33
3.50
4.88
4.03
3.36
1.00
1.00
1.25
-0.10
-0.09
-0.09
0.10
0.02
0.14
-0.16
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
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1464.133
2.171
2.191
2.237
1.818
2.217 1.668
10-yr Treasury, Ryan ALM 1736.866
DJ Corporate
380.347
Aggregate, Barclays Capital 1944.020
High Yield 100, Merrill Lynch 2851.274
Fixed-Rate MBS, Barclays 1988.400
Muni Master, Merrill
517.714
2.338
3.118
2.650
5.535
2.870
2.214
2.361
3.158
2.680
5.551
2.900
2.087
2.609
3.390
2.790
6.144
3.120
2.516
2.058
2.879
2.380
4.948
2.660
1.736
1.975
5.597
3.437
8.237
2.339
4.567
805.278
5.521
5.591
6.290
5.279
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
1.370
3.707
2.235
4.078
1.917
2.361
10.445 5.689
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
WSJ
.COM
-2.66
-0.75
-1.87
-0.76
-1.37
10.03
-40.86
3.50
-35.21
-20.00 188430.48
18.31
-19.90
8.63
-18.95
25.08
6.75
24.04
2.05
2.05
-5.82
-1.55
-5.23
-0.28
-0.28
25.11
18.58
20.84
2.88
2.59
-3.40
-2.43
-2.69
-0.35
-0.31
ADOM
PETX
SGY
AHPI
PXS
XNET
PLSE
CLDC
ATEC
Company
iSh MSCI EM ESG Optimized ESGE
BYLD
iSh Yield Optimized Bd
PS Russell MC Pure Growth PXMG
iSh MSCI USA ESG Select SUSA
IVLU
iSh Edge MSCI Intl Value
iSh Russell Top 200 Grwth
MGC Diagnostics
Ardmore Shipping
iShares ACWI Low Carbon
GTY Technology Hldgs Cl A
52-Week
Low
% chg
0.50
0.40
1.56
3.05
4.97
-47.4
112.3
-99.9
...
-18.7
-18.83
-18.67
-17.87
-12.02
-12.02
46.69 16.73
13.96 1.85
70.88 16.50
3.75 1.53
5.25 0.90
14.8
50.0
9.8
-17.4
-15.6
-11.93
-11.57
-11.43
-10.92
-10.69
28.51 24.53
27.00 3.11
39.50 5.20
8.30 2.00
5.80 1.58
0.4
320.4
230.8
-59.4
-51.5
Ranked by change from 65-day average*
Symbol
Country/currency
IWY
MGCD
ASC
CRBN
GTYH
Volume % chg from Latest Session
(000) 65-day avg Close % chg
389
320
244
335
265
3516 74.00
2855 25.06
2784 42.45
2366 109.44
2056 26.18
0.87
0.02
1.02
0.74
0.28
1,240
334
3,099
118
434
1926 72.60
1845 10.94
8.05
1758
1583 116.62
9.92
1392
0.36
0.18
-8.52
0.62
-0.10
US$vs,
YTDchg
Tues
in US$ per US$ (%)
52-Week
High
Low
74.80
26.01
43.00
109.53
26.25
53.52
24.45
30.85
90.46
21.68
72.69 55.04
10.98 6.24
9.05 6.36
116.62 95.45
13.00 9.75
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0576 17.3705 9.5
Brazil real
.3113 3.2126 –1.3
Canada dollar
.7804 1.2815 –4.7
Chile peso
.001559 641.30 –4.3
Ecuador US dollar
1
1 unch
Mexico peso
.0539 18.5403 –10.6
Uruguay peso
.03436 29.1000 –0.9
Venezuela b. fuerte .099645 10.0357 0.4
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
Australian dollar
.7594 1.3168 –5.2
China yuan
.1515 6.5999 –5.0
Hong Kong dollar
.1282 7.8032 0.6
India rupee
.01551 64.474 –5.1
Indonesia rupiah .0000740 13512 –0.1
Japan yen
.008970 111.48 –4.7
Kazakhstan tenge .003012 331.96 –0.5
Macau pataca
.1244 8.0375 1.5
Malaysia ringgit
.2438 4.1015 –8.6
New Zealand dollar
.6898 1.4497 0.4
Pakistan rupee
.00950 105.250 0.8
Philippines peso
.0199 50.293 1.4
Singapore dollar
.7429 1.3461 –7.0
South Korea won .0009226 1083.95 –10.3
Sri Lanka rupee
.0065020 153.80 3.6
Taiwan dollar
.03334 29.996 –7.6
Thailand baht
.03068 32.590 –9.0
Vietnam dong
.00004402 22715 –0.2
Commodities
.04646 21.526 –16.2
.1591 6.2858 –11.1
1.1842 .8445 –11.2
.003809 262.56 –10.8
.009618 103.97 –8.0
.1213 8.2433 –4.6
.2818 3.5487 –15.2
.01712 58.417 –4.7
.1198 8.3507 –8.3
1.0162 .9841 –3.4
.2522 3.9645 12.5
.0372 26.9065 –0.7
1.3339 .7497 –7.5
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6489 .3775 0.1
.0563 17.7570 –2.1
.2848 3.5115 –8.7
3.3142 .3017 –1.3
2.5976 .3850
...
.2737 3.653 0.4
.2667 3.7501 –0.02
.0732 13.6632 –0.2
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.66
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
0.22 0.26 –6.76
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
3.85
1.38
7.48
3.06
5.86
DCIX
OPHC
High
U.S.-dollar foreign-exchange rates in late New York trading
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
3.62%
* 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.
Currencies
Forex Race
notes and bonds
Bankrate.com avg†:
NYSE Arca
* 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
* Volumes of 100,000 shares or more are rounded to the nearest thousand
s
U.S. consumer rates
Nasdaq
Total volume*1,950,071,857 236,360,648
Adv. volume*1,169,257,075 173,129,253
Decl. volume* 757,615,836 60,675,292
Issues traded
3,081
1,326
Advances
1,929
933
Declines
1,022
365
Unchanged
130
28
New highs
236
318
New lows
45
52
Closing tick
382
120
Closing Arms†
1.22
0.92
Block trades*
7,111
1,566
Latest Session
Close Net chg % chg
DPW
Volume Movers
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Symbol
21.88 3.55
74.92 7.76
31.80 15.56
23.05 2.57
9.39 0.95
OMNT
IFRX
Company
32.68
23.53
23.33
18.58
15.38
RYB
AQ
High
52-Week
Low
% chg
1.33
5.24
4.20
0.68
0.44
5.40
27.51
22.20
4.34
3.30
VERI
Total volume* 831,971,319 13,385,015
Adv. volume* 641,888,620 5,018,479
Decl. volume* 179,101,244 8,208,860
Issues traded
3,089
333
Advances
2,024
165
Declines
946
147
Unchanged
119
21
New highs
215
5
New lows
66
12
Closing tick
240
39
Closing Arms†
0.64
1.60
Block trades*
7,204
136
Percentage Losers
Latest Session
Close Net chg % chg
CREDIT MARKETS & CURRENCIES
Interest rate
-0.10 152.92 152.67
Percentage gainers…
Sources: SIX Financial Information; WSJ Market Data Group
D J FMAM J J A S ON
2017
Low
-0.07 262.87 260.25
Percentage Gainers...
3000.06
390.21
261.74
The Global Dow
DJ Global Index
DJ Global ex U.S.
5-year Treasury
note yield
After Hours
% chg
High
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
5-year adjustablerate mortgage
t (ARM)
Net chg
-0.19
SPY
463.78
836.79 49.5
9.14 -22.2
Last
15,155.8 262.68
SPDR S&P 500
560.52
192.66
NYSE NYSE Amer.
Most-active issues in late trading
102.31
1341.69
16.04
1.62
Philadelphia Stock Exchange
Americas
Brazil
Canada
Mexico
Chile
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.
Nuance Communications NUAN
Value Line
World
Late Trading
613.35
-1.47
-0.24
616.58
532.01
191.21
57.99
3.074
1294.70
-0.42
-0.12
0.146
0.90
-0.22 195.14
58.95
-0.21
3.93
4.99
0.07 1346.00
166.50
42.53
2.56
1127.80
% Chg
12.29
YTD
% chg
8.13
3.93 -0.67
7.95
28.21
-7.27 -17.45
8.99 12.58
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | B13
COMMODITIES
WSJ.com/commodities
Futures Contracts
Contract
High hilo
Low
Open
Open
interest
Chg
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Nov
3.1050
3.1050
3.0685
3.0705 –0.0620
March'18 3.1540 3.1580
3.0920
3.0985 –0.0590
Gold (CMX)-100 troy oz.; $ per troy oz.
Nov
...
...
... 1294.70
0.90
Dec
1293.90 1297.00
1290.10 1294.90
0.50
Feb'18
1298.80 1301.30
1294.50 1299.20
0.30
April
1302.50 1305.30
1298.80 1303.50
0.30
June
1306.90 1308.90
1303.70 1307.90
0.30
Dec
1319.70 1322.10
1317.20 1321.30
0.30
Palladium (NYM) - 50 troy oz.; $ per troy oz.
1002.00 1023.50 s
996.60 1020.65 19.60
Dec
March'18 1001.30 1023.95 s
994.80 1020.65 20.15
June
992.85 1017.25 s
992.85 1014.10 20.15
Platinum (NYM)-50 troy oz.; $ per troy oz.
Nov
...
...
...
950.10
2.20
Jan'18
950.60
959.20
948.20
952.80
2.00
Silver (CMX)-5,000 troy oz.; $ per troy oz.
17.020
17.025
17.020
16.811 –0.198
Nov
March'18 17.110 17.180
16.825
16.918 –0.201
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
57.86
58.11
57.42
57.99 –0.12
Jan
Feb
57.99
58.15
57.50
58.05 –0.11
March
57.89
58.10
57.48
58.00 –0.08
April
57.86
57.96
57.45
57.88 –0.04
June
57.45
57.51
57.04
57.40 –0.01
Dec
55.75
55.77
55.21
55.57 –0.03
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.9480
1.9513
1.9329
1.9507 .0029
Dec
Jan'18
1.9507
1.9550
1.9357
1.9529 .0024
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7905
1.7908
1.7616
1.7720 –.0173
Dec
Jan'18
1.7862
1.7862
1.7591
1.7686 –.0165
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Dec
2.947
3.102
2.945
3.074
.146
Jan'18
3.040
3.154
3.028
3.128
.111
Feb
3.042
3.155
3.034
3.131
.108
March
3.008
3.114
3.001
3.092
.102
April
2.876
2.933
2.871
2.926
.059
May
2.865
2.919
2.862
2.913
.053
Open
interest
Dec
Jan'18
33.60
33.73
34.01
34.13
33.53
33.68
34.00
34.13
Jan
March
1226.00
1255.00
1234.00
1260.00
1221.50
1252.50
1230.50
1259.50
Dec
March'18
410.25
429.00
412.25
431.25
t
t
405.25
424.25
410.75
429.25
1.25 47,288
1.00 282,348
Dec
March'18
408.00
426.25
410.75
428.50
t
t
404.00
422.00
409.25
427.75
2.00 23,809
2.50 194,053
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
216
161,940
Wheat (CBT)-5,000 bu.; cents per bu.
1
93,032
348,899
26,257
34,612
13,099
Wheat (KC)-5,000 bu.; cents per bu.
Wheat (MPLS)-5,000 bu.; cents per bu.
.40 26,583
.39 155,655
1.00
…
610.25
627.75
595.75
615.00
603.50
622.00
–6.50
–5.00
8,439
40,380
Nov
Jan'18
157.775
154.750
157.925
154.925
157.575
153.325
157.775
154.500
…
.050
2,642
25,623
Dec
Feb'18
119.625
125.850
119.950
126.150
118.750
124.650
119.650
125.675
Dec
Feb'18
64.500
70.100
65.950
72.000
64.175
69.775
65.750
71.525
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
4
67,915
Cattle-Live (CME)-40,000 lbs.; cents per lb.
2
124,933
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
556,293
200,939
290,766
137,510
241,155
265,667
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Jan
420.70
426.20
419.00
426.20
March
408.80
416.50
408.00
416.50
Milk (CME)-200,000 lbs., cents per lb.
Nov
16.79
16.81
16.79
16.81
Dec
15.10
15.31
t
15.10
15.25
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
2,056
2,056
2,042
2,047
March'18
2,061
2,071
2,040
2,049
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
125.50
127.10
124.85
127.45
March'18 127.90 130.20
126.75
129.85
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
15.35
15.38
15.01
15.04
March
May
15.28
15.32
14.99
15.02
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
27.13
27.50
27.12
27.44
March
May
27.35
27.70
27.35
27.58
Cotton (ICE-US)-50,000 lbs.; cents per lb.
72.20
73.94
72.00
74.05
Dec
March'18
71.25
72.29
71.02
72.14
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
164.90
165.85
163.10
165.30
Jan
March
162.00
163.30
161.80
163.40
26,780
138,811
28,300
178,563
6,323
399,872
130,127
197,418
136,238
106,957
Agriculture Futures
–2.50 183,242
–2.00 803,706
–5.75
–6.75
7,917
2,252
610.00
627.00
Dec
March'18
2,685
30,770
523
Corn (CBT)-5,000 bu.; cents per bu.
339.00
339.50
t 335.75
336.25
Dec
March'18 352.00 352.50
349.25
349.75
Oats (CBT)-5,000 bu.; cents per bu.
251.00
251.25
244.25
244.75
Dec
March'18 267.75 268.50
260.00
261.00
Soybeans (CBT)-5,000 bu.; cents per bu.
996.00
996.00
987.50
993.00
Jan
March
1007.50 1007.75
999.25 1004.75
Soybean Meal (CBT)-100 tons; $ per ton.
327.20
327.20
322.30
323.50
Dec
Jan'18
329.50
329.70
324.60
325.80
Settle
751
5,614
1.225
1.425
31,806
93,414
10.00
10.00
5,018
1,014
.01
.04
4,253
4,448
–18
134
–18 135,827
1.90
2,217
1.65 118,095
–.35 389,522
–.31 130,583
.04
.30
2,815
2,141
1.90
443
.72 162,516
–1.50
–1.55
8,358
1,730
154-100 154-270
154-020 154-090
Dec
March'18 153-100 153-240
152-310 153-060
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
125-025 125-075
124-300 124-310
Dec
March'18 124-275 125-000
124-220 124-235
–3.60 21,774
–3.50 140,578
–2.0 375,281
–2.0 473,685
–5.0 1,596,298
–5.0 2,119,951
Dec
March'18
.9012
.9060
.9023
.9068
.7836
.7845
.7842
.7850
Dec
March'18
1.3329
1.3368
1.3396
1.3438
Tuesday, November 28, 2017
Closing Chg YTD
Symbol Price (%) (%)
ETF
AlerianMLPETF
AMLP
9.98
–0.30 –20.8
CnsmrDiscSelSector
XLY
95.75
1.11
17.6
CnsStapleSelSector
XLP
55.25
0.82
6.8
EnSelectSectorSPDR
XLE
67.71
0.77 –10.1
Closing Chg YTD
Symbol Price (%) (%)
ETF
Dec
March'18
1.0204
1.0274
1.0213
1.0285
Dec
Jan'18
.7602
.7605
.7619
.7616
YTD total
return (%)
3.4
5.9
U.S. Corporate
3.9 Intermediate
10.4 Long term
4.3 Double-A-rated
6.5
719.62
Triple-B-rated
262.87
1.01
17.6
SDY
94.92
1.23
10.9
416.06
7.1
0.37
26.4
TechSelectSector
XLK
64.71
0.33
33.8
59.97
0.30
22.7
UtilitiesSelSector
XLU
56.38
0.46
16.1
iShNasdaqBiotech
IBB
311.31
0.28
17.3
VanEckGoldMiner
GDX
22.93
–0.52
9.6
iShNatlMuniBd
MUB 109.95
–0.15
1.6
VangdInfoTech
VGT 168.01
0.25
38.3
iShRussell1000Gwth
IWF
133.66
0.61
27.4
VangdSC Val
VBR 131.49
1.51
8.7
VangdSC Grwth
VBK 160.47
0.84
20.5
VangdDivApp
VIG
99.60
1.27
16.9
VEA
44.66
0.50
22.2
U.S Agency Bloomberg Barclays
1.57
13.4
VangdFTSE EM
VWO
45.40
0.60
IWN 126.86
1.83
6.7
VangdFTSE Europe
VGK
58.65
0.62
iSh1-3YCreditBond
CSJ
104.90
0.05
–0.0
iShRussell3000
IWV 155.95
1.02
17.3
VangdFTSEAWxUS
VEU
54.46
0.55
23.3
iSh3-7YTreasuryBd
IEI
122.90
–0.02
0.3
iShRussellMid-Cap
IWR 205.46
1.11
14.9
VangdGrowth
VUG 140.02
0.44
25.6
3389.50
iShCoreMSCIEAFE
IEFA
65.96
0.05
23.0
iShRussellMCValue
IWS
87.43
1.04
8.7
VangdHlthCr
VHT 153.60
0.74
21.2
iShCoreMSCIEmgMk
IEMG
57.13
0.67
34.6
iShS&PMC400Growth IJK
215.08
1.19
18.0
VangdHiDiv
VYM
84.07
1.24
11.0
2462.62
iShCoreMSCITotInt
IXUS
62.99
0.51
24.8
iShS&P500Growth
IVW 151.93
0.63
24.7
VangdIntermBd
BIV
84.50
0.07
1.7
VCIT
87.82
0.06
2.5
6.3
288.09
564.54
-0.3
20-plus years
2.890 2.730 3.460
923.72
2.880 2.610 3.090
805.28
VV
120.75
0.98
18.0
VO
152.78
1.03
16.1
60.26
0.97
17.5
iSh1-3YTreasuryBd
SHY
84.11
0.01
–0.4
VangdMC Val
VOE 108.91
1.26
12.1
iShCoreUSAggBd
AGG 109.53
...
1.4
iSh7-10YTreasuryBd
IEF
106.37
0.02
1.5
VangdREIT
VNQ
84.23
–0.38
2.1
iShSelectDividend
DVY
97.00
1.23
9.5
iSh20+YTreasuryBd
TLT
126.79
0.13
6.4
VangdS&P500
VOO 241.42
0.99
17.6
iShEdgeMSCIMinEAFE EFAV
72.71
0.53
18.8
iShRussellMCGrowth IWP 119.75
1.03
23.0
VangdST Bond
BSV
79.46
–0.01
0.0
iShEdgeMSCIMinUSA USMV
52.46
0.75
16.0
PIMCOEnhShMaturity MINT 101.79
...
0.5
VangdSTCpBd
VCSH
79.74
0.06
0.5
iShGoldTr
IAU
12.43
–0.08
12.2
PwrShQQQ 1
QQQ 156.59
0.26
32.2
VangdSC
VB
146.85
1.23
13.9
iShiBoxx$InvGrCpBd
LQD 121.29
0.14
3.5
PwrShS&P500LoVol
SPLV
47.75
0.87
14.8
VangdTotalBd
BND
81.83
...
1.3
BNDX
55.00
–0.24
1.3
56.61
8.4
5.0 Yankee
Country/
Coupon (%) Maturity, in years
1.750
2.250
1.596
2.412
1.103
2.314
1.751 t
2.505 t
l
1.778
1.887
1.749
l
2.533
2.785
2.709
France 2 -0.581 s
10 0.677 t
l
-0.581
-0.602
l
0.678
0.663
Germany 2 -0.690 s
10 0.342 t
l
-0.694
-0.763
l
0.344
0.386
Italy 2 -0.284 t
10 1.781 t
l
-0.278
-0.192
0.099
l
1.791
1.944
2.066
Japan 2 -0.171 s
10 0.040 s
l
-0.174
-0.153
-0.154
l
0.036
0.069
Spain 2 -0.359 t
10 1.461 t
l
-0.339
-0.338
-0.102
-211.3
l
1.480
1.583
1.580
-87.7
-85.0
-73.4
0.467 s
1.255 t
l
0.465
0.462
0.090
-127.2
-101.3
l
1.255
1.352
1.245
-107.5
-106.9
PwrShSrLoanPtf
BKLN
23.05
0.09
–1.3
5.3
SPDR BlmBarcHYBd
JNK
37.00
0.27
1.5
VangdTotIntlStk
VXUS
0.60
23.4
2.750
Australia 2
iShMBSETF
MBB 106.83
0.04
0.5
SPDR Gold
GLD 122.81
–0.02
12.0
VangdTotalStk
VTI
135.30
0.99
17.3
2.750
10
0.000
ACWI
71.65
0.79
21.1
SchwabIntEquity
SCHF
34.45
0.50
24.5
VangdTotlWrld
VT
73.52
0.77
20.5
41.00
1.01
23.0
SchwabUS BrdMkt
SCHB
63.60
0.98
17.4
VangdValue
VTV 103.65
1.47
11.4
iShMSCI EAFE
EFA
70.32
0.57
21.8
SchwabUS LC
SCHX
62.80
0.93
17.9
WisdTrEuropeHdg
HEDJ
65.10
0.93
13.4
iShMSCI EAFE SC
SCZ
63.66
0.28
27.7
SPDR DJIA Tr
DIA
238.34
1.11
20.7
WisdTrJapanHdg
DXJ
58.06
0.71
17.2
0.000
iShMSCIEmgMarkets EEM
47.36
0.74
35.3
SPDR S&PMdCpTr
MDY 342.37
1.38
13.5
XtrkrsMSCIEAFE
DBEF
31.97
0.85
13.9
0.500
0.750
0.050
2.050
0.00
0.50
0.25
1.50
Overnight repurchase
1.14
1.05
U.S.
1.38
0.24
1.75
1.75
1.00
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
Federal funds
1.1700
1.3125
1.0500
1.1600
1.1700
90 days
-0.402
-0.382
-0.317
-0.249
-0.400
-0.380
-0.312
-0.243
-0.376
-0.325
-0.219
-0.080
-0.405
-0.382
-0.322
-0.251
Euro interbank offered rate (Euribor)
One month
Three month
Six month
One year
52-Week
high
low
-0.371
-0.329
-0.274
-0.186
Latest
3.00
3.00
-0.372
-0.329
-0.273
-0.186
Value
Traded
-0.366
-0.313
-0.216
-0.076
-0.375
-0.332
-0.276
-0.192
52-Week
High
Low
1.113 25.880 1.366 0.264
1.145 105.080 1.506 0.280
Treasury
MBS
2.25
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
One month
Three month
Discount
Effective rate
High
Low
Bid
Offer
One month
Three month
Six month
One year
1.35
1.36
1.36
0.67
DTCC GCF Repo Index Futures
Libor
U.S. government rates
1.75
Euro Libor
DTCC GCF Repo Index
3.00
Treasury Nov
Treasury Dec
Treasury Jan
1.34978 1.31287 1.34978 0.61672
1.47882 1.45400 1.47882 0.93067
98.805 0.010 6760 1.195
98.655 unch. 2225 1.345
98.555 unch. 459 1.445
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; Tullett Prebon
Information, Ltd.
Dividend Changes
Dividend announcements from November 28.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
First Financial Indiana
RGC Resources
THFF
RGCO
2.1 .51 /.50 SA
2.3 .155 /.145 Q
Jan15 /Jan08
Feb01 /Jan16
Funds and investment companies
AdvisorSh Pac Asst Enh FR
AdvisorShares Newfleet
AdvisorShares Sage Core
AdvisorShs Peritus Hi Yd
Alliance CA Municipal
AllianceBernstein Glbl
AllianceBrnstn NtlMun
CWA Income ETF
Fidelity Corporate Bd
FLRT
MINC
HOLD
HYLD
AKP
AWF
AFB
CWAI
FCOR
3.4
2.6
1.5
7.6
4.2
6.7
4.6
2.9
3.0
.13872
.10658
.12663
.22858
.04724
.0699
.05205
.06144
.127
M
M
M
M
M
M
M
M
M
Nov30 /Nov29
Nov30 /Nov29
Nov30 /Nov29
Nov30 /Nov29
Dec15 /Dec08
Dec15 /Dec08
Dec15 /Dec08
Nov30 /Nov29
Dec01 /Nov29
Company
Symbol
Fidelity Limited Term Bd
Fidelity Total Bond ETF
First Tr Engy Infr Fd
First Tr Mortgage Incm Fd
FT Interm Duration Pfd
FT Sr Floating Rate 2022
Madrona Global Bond
FLTB
FBND
FIF
FMY
FPF
FIV
FWDB
Amount
Yld % New/Old Frq
1.7
2.9
7.6
5.5
7.4
5.4
3.2
.073
.12
.11
.065
.1525
.0417
.06965
M
M
M
M
M
M
M
Payable /
Record
Dec01 /Nov29
Dec01 /Nov29
Dec15 /Dec04
Dec15 /Dec04
Dec15 /Dec04
Dec15 /Dec04
Nov30 /Nov29
Special
Gaming Partners Intl
United Bancorp
GPIC
UBCP
0.100
2.750
1.450
1.750
U.K. 2
4.250
10
4.1
64.7
20.2
39.4
-0.682 -233.5
0.758
-166.1
-231.7
-178.4
-165.2
-155.7
-0.750 -244.4
0.208 -199.6
-243.1
-185.3
-198.6
-210.6
-203.8
-201.5
-100.4
-55.7
-53.9
-24.8
-192.5
0.014 -229.7
-191.1
-125.6
-229.4
-230.0
-207.5
-120.5
-0.3
16.7
-128.7
-108.2
1.65738 1.64489 1.65832 1.28878
1.93798 1.92733 1.94294 1.63900
Six month
One year
Call money
0.100
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.736
2.330
1.5
EWZ
Year ago
l
0.14
iShMSCIBrazilCap
Month ago
l
0.31
iShMSCI ACWI
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.754 s
10 2.337 s
87.87
0.00
0.50
0.50
1.50
† In local currency § Euro-zone bonds
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
EMB 116.03
0.00
0.50
0.50
1.50
Emerging Markets ** 5.521 5.279 6.290
Global Government Bonds: Mapping Yields
HYG
—52-WEEK—
High Low
2.989 2.770 3.622
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
iShJPMUSDEmgBd
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.
9.0
** EMBI Global Index
iShiBoxx$HYCpBd
November 28, 2017
1.1
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
VangdTotIntlBd
0.00
0.50
0.50
1.50
-0.7
1.940 1.470 1.970
VangdMC
Euro zone
Switzerland
Britain
Australia
510.92
10-20 years
VangdLC
2.588 2.213 3.047
22-plus year
Global Government J.P. Morgan†
1.2
0.8
Week
ago
6.1
1464.77
–0.01
Latest
3.520 3.340 3.870
5.5 12-22 year
22.3
114.11
Policy Rates
2.204 1.744 2.618
407.00
26.9
TIP
Other short-term rates
4.1 7-12 year
-0.02
iShTIPSBondETF
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
361.56
2.080 1.660 2.100
12.0
U.S.
Canada
Japan
2.214 1.736 2.516
2.720 2.470 2.870
U.S Agency
1.70
Prime rates
3.8 Muni Master
2.2
77.03
3.448 3.488 3.865 3.253
3.468 3.512 3.899 3.281
517.71
1.560 1.340 1.790
IWM 152.86
iShRussell2000Val
30 days
60 days
Freddie Mac (FHLMC) 2.890 2.680 3.130
4.100 4.090 4.710
0.530 0.360 0.760
iShRussell2000
1.4
Latest
Fannie mae (FNMA) 2.880 2.670 3.120
2.7
U.K.
16.7
30-year mortgage yields
2.6
1795.94
0.410 0.270 0.460
1.52
–0.01
Fannie Mae
1166.47
2.810 2.530 3.010
Netherlands
72.62
52-Week
High
Low
3.220 3.030 3.520
3.8
.12
.05
Dec22 /Dec08
Dec29 /Dec08
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
2.870 2.660 3.120
0.410 0.210 0.620
109.66
Week
ago
Mortgage-Backed
Ginnie Mae (GNMA) 2.820 2.630 3.090
Japan
CIU
Secondary market
2.4
1.8
1640.40
IJR
Yield (%)
Latest Low High
Index
0.750 0.710 1.210
XLI
International rates
YTD total
return (%)
Germany
iShIntermCredBd
2.0
1.8
Total
return
close
6.9
IndSelSectorSPDR
–0.06
0.28
Source: SIX Financial Information
306.82
VangdFTSEDevMk
iShCoreS&P SC
39,064
3,780
1.014 0.933 1.363
21.1
9.6
.39
.38
France
1.44
3.8
323
1.5
iShRussell2000Gwth IWO 186.39
1.48
14.10
716.91
19.6
–0.10
68,675
189
Europe High Yield Constrained 2.233 1.897 3.814
0.73
38.61
23.00
23.20
378.15
82.44
111.10
7.0 289,778
7.0
2,951
1.950 1.570 2.190
XLV
PFF
93,286
11
EMU§
HealthCareSelSect
IVE
25.10
26.80
1.3
8.3
iShUSPfdStk
24.25 3,200,150
24.25 128,613
373.68
17.6
iShS&P500Value
70,177
5,220
Global High Yield Constrained 5.206 4.934 6.220
1.40
13.6
24.20
24.40
7.4
0.96
246.663
253.638
S&P 500 Index (CME)-$250 x index
Dec
2601.00 2626.50 s
2597.90 2626.00
March'18 2606.50 2627.20 s 2606.30 2627.60
Mini S&P 500 (CME)-$50 x index
Dec
2602.25 2627.00 s
2597.50 2626.00
March'18 2603.25 2628.75 s 2599.00 2627.50
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1856.20 1880.90 s
1853.00 1880.00
March'18
... 1881.20 s
... 1881.30
Mini Nasdaq 100 (CME)-$20 x index
Dec
6413.3
6429.5 s
6388.8
6420.3
March'18 6428.0 6446.5 s
6406.0
6437.0
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1511.90 1538.10 s
1511.30 1536.20
March'18 1520.00 1539.90 s 1520.00 1537.70
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1445.00 1456.60 s
1444.30 1456.50
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
92.80
93.27
92.76
93.21
March'18
92.51
92.92
92.47
92.91
249 146,960
251
2,886
Global Government 1.410 1.300 1.560
IWD 121.35
17.6
23811
23811
Canada
IWB 146.35
1.37
23522
23522
1.6
iShRussell1000Val
1.01
23827 s
23822 s
23563
23554
0.9
iShRussell1000
All items
Core
Dec
March'18
545.32
14.3
1.170 1.130 1.300 0.340
1.285 1.285 1.285 0.490
1.435 1.415 1.435 0.590
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
760.47
15.6
187.85
1.1850 –.0064 478,385
1.1920 –.0064
9,082
5.535 4.948 6.144
1.15
264.65
1.1840
1.1911
10.771 9.584 12.718
2.60
IJH
.05361 –.00005 171,334
.05278 –.00006
896
High Yield 100
99.02
IVV
.05337
.05255
Triple-C-rated
8.3
416.68
2851.27
26.88
4 weeks
13 weeks
26 weeks
Dec
.05365
.05379
March'18 .05288 .05296
Euro (CME)-€125,000; $ per €
Dec
1.1913
1.1933
March'18 1.1981 1.2002
1954.72
High Yield Constrained 5.756 5.373 6.579
43.74
iShCoreS&P MC
444
1,939
256
Mexican Peso (CME)-MXN 500,000; $ per MXN
393.83
EWJ
iShCoreS&P500
.7592 –.0012
.7592 –.0011
.7590 –.0011
Mortgage-Backed Bloomberg Barclays
U.S. Corporate Indexes Bloomberg Barclays
SPY
VangdIntrCorpBd
.7591
.7584
.7610
Open
interest
1988.40
2.650 2.380 2.790
U.S. Aggregate
EZU
Treasury bill auction
.7595 –.0011 129,870
.7594 –.0011
914
Broad Market Bloomberg Barclays
1944.02
RSP
U.S. consumer price index
78,530
411
Yield (%)
Latest Low High
iShMSCIJapan
Inflation
1.0170 –.0036
1.0243 –.0036
Index
SPDR S&P Div
Week
Latest ago
.0054 172,633
.0054
4,008
.7614
.7615
.7610
Chg
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
SPDR S&P 500
—52-WEEK—
High Low
1.3380
1.3423
.7603
.7598
.7610
Feb
March
June
Settle
Tracking Bond Benchmarks
XLF
Chg From (%)
Sept. '17 Oct. '16
.7586
.7589
iShMSCIEurozone
Week
Latest ago
.7804 –.0035 136,406
.7813 –.0034
3,915
Contract
High hilo
Low
Open
Bonds | WSJ.com/bonds
GuggS&P500EW
Oct. index
level
1.0162
1.0242
High Yield Bonds Merrill Lynch
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
.8969 –.0046 242,576
.9016 –.0047
5,451
Australian Dollar (CME)-AUD 100,000; $ per AUD
FinSelSectorSPDR
iShS&PTotlUSStkMkt ITOT
1.3228
1.3271
Swiss Franc (CME)-CHF 125,000; $ per CHF
568.10
ETF
.7799
.7810
British Pound (CME)-£62,500; $ per £
3882.03
Largest 100 exchange-traded funds, latest session
.8965
.9015
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Dec
March'18
2620.13
Closing Chg YTD
Symbol Price (%) (%)
Open
interest
Japanese Yen (CME)-¥12,500,000; $ per 100¥
2786.62
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Chg
Currency Futures
Total
return
close
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Settle
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-315 117-020
116-287 116-292
–2.5 1,543,350
March'18 116-255 116-282
116-227 116-230
–2.7 1,942,974
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-150 107-160
107-140 107-145
–.7 706,307
March'18 107-092 107-102
107-085 107-087
–.5 1,193,910
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Nov
98.845
98.845
98.843
98.843
… 205,408
Jan'18
98.605
98.610
t 98.605
98.610
… 338,768
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.141 101.422
101.141 101.156 –.094 27,873
1 Month Libor (CME)-$3,000,000; pts of 100%
Dec
98.5200 98.5200
98.5200 98.5225 .0075
2,764
Eurodollar (CME)-$1,000,000; pts of 100%
Dec
98.4475 98.4550
98.4450 98.4525 .0050 1,654,547
March'18 98.2800 98.2900
98.2700 98.2850 .0050 1,511,429
June
98.1300 98.1500
98.1250 98.1350
… 1,302,114
Dec
97.9850 98.0050
97.9700 97.9750 –.0100 1,649,501
–.175 39,273
–.375 155,978
Interest Rate Futures
–3.00 310,026
–3.00 163,548
Contract
High hilo
Low
Open
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
General Electric
United Parcel Service
Keybank NA
Macy's Retail Holdings
GE
Pitney Bowes
Mead Johnson Nutrition
Anheuser–Busch Inbev Worldwide
Gatx
PBI
UPS
KEY
M
RB
ABIBB
GMT
2.700
2.400
2.500
2.875
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Oct. 9, ’22
Nov. 15, ’26
Nov. 22, ’21
Feb. 15, ’23
41
51
35
253
–17
–14
–10
–10
64
65
47
n.a.
18.41
115.19
…
…
1.60
0.57
…
…
4.700
April 1, ’23
3.000 Nov. 15, ’20
5.375 Jan. 15, ’20
3.500 March 15, ’28
411
44
29
118
–10
–10
–8
–8
489
n.a.
34
128
10.16
...
...
...
1.09
...
...
...
…And spreads that widened the most
AXA
Teva Pharmaceutical Finance
Wells Fargo
Westpac Banking
AXASA
General Motors Financial
Murphy Oil
Qualcomm
Royal Bank of Scotland
GM
TEVA
WFC
WSTP
MUR
QCOM
RBS
6.463
3.650
3.000
2.600
Dec. 14, ’49
Nov. 10, ’21
Oct. 23, ’26
Nov. 23, ’20
269
297
90
48
19
14
13
196
n.a.
97
43
...
…
55.57
...
...
…
3.00
...
3.200
6.875
2.250
7.500
July 6, ’21
Aug. 15, ’24
May 20, ’20
Aug. 10, ’49
82
273
71
218
10
10
10
9
85
267
79
247
…
28.13
68.38
7.37
…
1.22
1.20
1.52
87
High-yield issues with the biggest price increases…
Issuer
Symbol
Revlon Consumer Products
Louisiana–Pacific
AMC Entertainment Holdings
Time
REV
Sprint
Murray Energy
Talen Energy Supply
Graftech International
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
Stock Performance
Close ($)
% chg
TIME
6.250
Aug. 1, ’24
4.875 Sept. 15, ’24
5.875 Nov. 15, ’26
7.500 Oct. 15, ’25
60.250
105.100
97.875
116.500
1.35
1.27
1.25
55.750
103.500
94.750
107.750
…
27.90
16.15
18.45
…
2.57
8.39
–0.27
S
7.125
104.000
56.125
84.750
100.030
1.24
1.13
1.13
0.78
103.355
51.750
82.750
99.250
6.07
...
...
...
–1.30
...
...
...
86.500 –2.75
–1.63
94.250
–1.60
96.250
–1.56
72.188
89.500
98.000
97.000
72.730
…
...
317.55
15.05
…
…
0.23
1.14
75.938
70.875
85.750
101.375
...
7.93
4.92
44.26
...
4.20
0.82
0.43
LPX
AMC
MURREN 11.250
TLN
6.500
GTI
6.375
June 15, ’24
April 15, ’21
June 1, ’25
Nov. 15, ’20
2.75
Last week
…And with the biggest price decreases
Chs/Community Health Systems
Altice Luxembourg S.A.
Tesla
California Resources
CYH
EP Energy
Frontier Communications
Sanchez Energy
TreeHouse Foods
EPENEG
ATCNA
TSLA
CRC
FTR
SN
THS
8.000
7.625
5.300
8.000
Nov. 15, ’19
Feb. 15, ’25
Aug. 15, ’25
Dec. 15, ’22
9.375
May 1, ’20
7.625 April 15, ’24
6.125 Jan. 15, ’23
4.875 March 15, ’22
74.250
70.000
84.500
101.625
–1.50
–1.50
–1.50
–1.20
*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.
B14 | Wednesday, November 29, 2017
BANKING & FINANCE
Large U.K. Banks Pass Brexit Stress Test
Bank of England does
raise concerns about
the treatment of
derivatives contracts
BY MAX COLCHESTER
AND JASON DOUGLAS
LONDON—The U.K.’s largest
banks could withstand Britain
crashing out of the European
Union, the Bank of England
said, but the central bank
raised wider concerns over
how trillions of dollars’ worth
of derivatives contracts will be
treated after Brexit.
Presenting the results of its
annual balance sheet health
check on Tuesday, the Bank of
England said the country’s
banking system would continue to lend even if a “disorderly” Brexit caused a severe
economic downturn. Nevertheless, the central bank said it
would force banks to keep extra capital as a buffer to ride
out any financial turmoil in
the coming years.
The tests concluded that no
major British bank needs to
raise funds to strengthen its
capital reserves. Barclays PLC
and Royal Bank of Scotland
Group PLC both failed the
stress test on their 2016 balance sheets but have since improved their capital levels and
don’t need to take additional
actions to bolster their capital.
The balance sheet health
check comes ahead of a crunch
meeting between EU and U.K.
leaders in December amid concerns that the U.K. isn’t making enough progress to wrap
up negotiations to allow a
smooth exit from the trade
bloc in 2019.
BOE Gov. Mark Carney said
it was unlikely that the U.K.
would exit the EU without
striking a deal, but he again
warned lawmakers in the U.K.
and EU that legislation will be
needed to ensure that $35 trillion of derivatives contracts
remain valid after Brexit. The
central bank also reiterated
the need for a two-year transition period to give banks time
to adapt their business models
after the U.K. leaves the EU.
The BOE factored potential
financial ripples from Brexit
into this year’s stress test,
billed as the toughest balance
sheet check to be undertaken
by the central bank. The test
scenario didn’t explicitly cover
the impact of Britain leaving
the EU, since the BOE doesn’t
know what the effect would
be.
However, the central bank
modeled a severe recession,
collapse in house prices and a
credit-card-lending meltdown
to test the possible repercussion of an abrupt Brexit.
“Let’s be clear—this is a big
call,” Mr. Carney said at a
news conference. “We are putting our money where our
mouth is.”
To help the banks withstand future shocks the BOE is
forcing banks to squirrel away
around £6 billion ($8 billion)
of existing capital into a special buffer. The BOE will give
guidance by the end of the
year on what changes it expects European banks with
U.K. operations to make after
Brexit.
The stress test is keenly
watched by investors as it
helps determine whether
banks will get regulatory signoff to pay bigger dividends.
Barclays in particular has
seen disappointing share performance in recent months
over fears it won’t be able to
increase payouts to investors.
The BOE said the bank would
now be above minimum capital levels in a stressed scenario because of the sale of a
majority stake in its Africa
business.
Bank Shot
Tuesday share-price performance
2%
HSBC
1
0
–1
Barclays
–2
3 a.m.
5
7
9
11
Note: All times Eastern
Source: FactSet
THE WALL STREET JOURNAL.
BY CHUIN-WEI YAP
HONG KONG—China’s online-finance regulator plans to
set up a personal credit-rating
system, reinvigorating a threeyear-long mission to find a
homegrown answer to U.S.
FICO scores as Beijing moves
to clean up the country’s internet-lending sector.
China’s search for a national
benchmark to gauge individual
creditworthiness has struggled
to keep pace with the smartphone-fueled boom in consumer loans being offered to
the country’s growing middle
class. In the absence of such a
standard, online lenders offer a
smorgasbord of methods to
evaluate borrowers, mostly
based on customized online
questionnaires and analysis of
so-called big data, such as individuals’ e-commerce purchases.
The state-backed National
Internet Finance Association of
China, a two-year-old agency
closely aligned with China’s
central bank, provided scant
details in a brief report late
Monday on its plans, beyond
saying that “this would complete an important rung in procedural order.”
The paucity of detail led
some industry observers to
question whether the latest
plan would overcome the same
issues that had bedeviled previous attempts—including a reluctance among lenders to offer
up their proprietary customer
information for a centralized
credit-scoring database.
“It will face big challenges
because a credit-information
service has a public component
but needs commercial information that’s shared,” an analyst
with the People’s Bank of China
said. “The problem is how to
make this happen.”
Traditional lenders in China,
such as the country’s major
banks, have tended to avoid
small borrowers because such
loans were viewed as marginal.
In an effort to pivot China’s
economy toward consumer
spending, regulators in recent
years began to encourage more
avenues for consumer loans,
saying that China’s household
debt—about 44% of gross domestic product, which is
roughly half of the U.S. rate—
was low by global standards.
But the financial-technology
boom that followed has led to
questionable practices among
online lenders, some of whom
have targeted college-age and
rural clients with exorbitant
rates on short-term loans. The
central bank last week ordered
a moratorium on new smalllender licenses.
Lenders say a nationwide
credit-scoring system could potentially help to better allocate
available funds to eligible borrowers, by providing graded
levels of creditworthiness.
Still, it would demand an
unprecedented degree of systemwide information-sharing.
Craving Credit
Regulators are trying to figure out a credit-scoring system to let
small borrowers take out more loans.
Household debt as a percentage
of GDP, 2016
Households’ loans outstanding,
as of October of each year
40 trillion yuan
Australia
105%
U.K.
91
South Korea
87
U.S.
20
80
Japan
63
Germany
China
30
53
44
10
0
Oct. 2013 ’14
’15
’16
’17
Note: 1 trillion yuan = $151 billion Sources: Federal Reserve Economic Data (debt);
People’s Bank of China (loans)
THE WALL STREET JOURNAL.
SHAILESH ANDRADE/REUTERS
China Renews Chase
For Credit-Ratings
System on Consumers
China Development Bank has invested some $2 billion in Reliance Communications’ debt since 2010. RCom shares slid 3.4% Tuesday.
India Wireless Carrier Is Pressured
BY MANJU DALAL
AND KENAN MACHADO
The debt woes of one of India’s leading wireless carriers,
Reliance Communications
Ltd., have deepened this week
because of an unlikely new
source of pressure: a leading
state-owned Chinese bank.
It emerged late Monday
that China Development
Bank, which often helps fund
Chinese companies’ investments overseas, had late last
week filed a petition for Reliance, also known as RCom, to
be declared insolvent.
The move is highly unusual.
Only once before in recent
times has a foreign lender requested an Indian company to
be declared insolvent.
But China Development
Bank is one of RCom’s biggest
lenders, having invested some
$2 billion in the company’s
debt since 2010.
The Indian company said in
a filing to local exchanges late
Monday that it was “surprised” by the bank’s “untimely and premature action.”
The shares of RCom
slumped 3.4% in trading in
Mumbai on Tuesday. The stock
has fallen 63% this year, wiping about $820 million off its
market value, according to
FactSet data.
In a statement late Tuesday,
China Development Bank confirmed it had filed an insolvency case against RCom with
India’s National Company Law
Tribunal on Nov. 24, and said a
large amount of loan principal
and interest owed to it were
overdue, according to a report
from Reuters.
Controlled by 58-year-old
billionaire Anil Ambani, RCom
has in recent years struggled
in India’s crowded wireless
market, where phone charges
are among the world’s lowest.
The company has built up a
457.5 billion Indian rupee ($7.1
billion) debt pile over the
years to fund its growth.
Its troubles have worsened
over the past year after rival
Reliance Jio Infocomm Ltd.—
run by Mr. Ambani’s elder
brother and India’s richest
man, Mukesh Ambani—entered
the wireless industry and began offering customers free
call and data plans, causing
RCom to lose further market
share. Earlier this month,
RCom disclosed it had missed a
$9.75 million interest payment
on $300 million of U.S. dollar
bonds it sold in mid-2015.
CDB’s investment in RCom
began in 2010, when it led a
syndicate of Chinese lenders
that lent the company $1.93 billion for 10 years, in a deal that
coincided with a visit by thenChinese Premier Wen Jiabao to
India. Around a third of those
funds were used by RCom to
fund its purchases of goods and
services from Chinese telecom
giants Huawei Technologies Co.
and ZTE Corp.
CDB, along with Export-Import Bank of China and Industrial & Commercial Bank of
China bank files
insolvency petition
against Reliance
Communications.
China, later led a $1.18 billion
seven-year loan for RCom in
January 2012, according to Dealogic data. Since 2010, CDB has
participated in loans totaling
around $2 billion to three other
Indian issuers: Jhajjar Power and
two companies that are part of
the Adani Group—Adani Power
and Adani Power Maharashtra.
Last month, RCom proposed
a debt-restructuring plan with
“zero write-offs” to its lenders
including CDB, saying it would
convert about $1.08 billion of
its debt into equity and sell
some assets including cell towers and real estate.
The Chinese bank’s resort to
the courts could encourage
other lenders to join it in pressing for RCom to be declared insolvent, said a foreign-based
lawyer specializing in dispute
resolutions for an international
law firm. It is rare for Indian
lenders to push companies into
bankruptcy, and some may
have looked to a foreign lender
to lead the way, he said.
India’s government introduced a new bankruptcy law
last year designed to simplify
and put a time limit on the
previously labyrinthine process, part of its broader effort
to deal with India’s longstanding problem with bad corporate debt.
“It gives a lot more teeth to
people in terms of time,” said
the lawyer, who previously
worked with one of the parties
involved. “You wouldn’t begrudge a foreign debtor for
taking to this process.”
If the bankruptcy court in
Mumbai admits CDB’s petition,
RCom could be forced to undergo a court-supervised restructuring within up to 270
days, or face insolvency.
—Grace Zhu
contributed to this article.
BY DAVE MICHAELS
WASHINGTON—Supreme
Court justices expressed skepticism that whistleblowers
who report corporate wrongdoing internally instead of to
the Securities and Exchange
Commission are protected
from retaliation under the
2010 Dodd-Frank regulatoryoverhaul law.
The question stems from a
lawsuit filed by a whistleblower, Paul Somers, who says
he was fired from Digital Realty Trust Inc. in 2014 after
complaining internally about
accounting
irregularities,
among other matters. Mr.
Somers argues he was protected by a Dodd-Frank provision that encourages people to
inform the SEC about corporate misconduct and shields
them from retaliation.
Digital Realty, the operator
of a real-estate investment
trust, argues Mr. Somers
didn’t qualify for protection
because he didn’t meet the
Dodd-Frank definition of a
whistleblower: someone who
reports a violation to the SEC.
At Tuesday’s oral arguments, justices questioned
why the SEC and lower courts
had expanded the definition
beyond language in DoddFrank that said a whistleblower is someone who reports to the SEC. “I’m just
stuck on the plain language
here,” said Justice Neil Gorsuch, a member of the court’s
conservative wing. “How much
clearer could Congress have
been than to say in this section the following definitions
shall apply, and whistleblower
is defined as including a report to the commission.”
Kannon Shanmugam, a lawyer representing Digital Realty, told the justices that certain
whistleblowers
are
protected from retaliation if
they report wrongdoing under
a different process spelled out
by the 2002 Sarbanes-Oxley
STEVEN SENNE/ASSOCIATED PRESS
Justices Appear Dubious About Whistleblower Provision
Justice Stephen Breyer had questions about Congress’s intent.
Act. But Mr. Somers’s claim
cited protections afforded by
Dodd-Frank, which doesn’t apply to his case, Mr. Shanmugam argued.
Justice Stephen Breyer, a
member of the court’s liberal
bloc, also questioned whether
Congress intended to protect
internal whistleblowers within
the antiretaliation provisions
of Dodd-Frank, if they were already protected by SarbanesOxley. “If we read it your way,
we’ve basically eliminated Sarbanes-Oxley because everybody would bring it this way,”
he said to Mr. Somers’s attorneys.
Mr. Somers’s argument
partly rests on how the SEC
interpreted Dodd-Frank’s language when it issued rules for
its own whistleblower-awards
program. The SEC decided
that one clause of the law,
added late in the legislative
process, was meant to arm all
whistleblowers with protection from retaliation, not just
people who report violations
to the commission in order to
claim an award.
Because there was no record of congressional debate
to clarify the clause, the SEC
inferred that Congress meant
to strengthen whistleblower
protections included in earlier
laws, such as Sarbanes-Oxley.
The SEC reasoned its view
would buttress internal reporting, allowing companies to
resolve some problems by
themselves without intrusive
government investigations.
Judges in the Second U.S.
Circuit Court of Appeals in
New York who ruled for a
whistleblower in an earlier
case, Berman v. Neo@Ogilvy
LLC, deferred to the SEC’s interpretation of Dodd-Frank.
The judges applied a Supreme
Court tenet known as the
Chevron doctrine, which holds
that courts should defer to
government agencies’ reasonable interpretations of ambiguous laws.
Justice Gorsuch said Tuesday that he couldn’t fathom
why the SEC had been granted
that deference, because it
failed to let the public know
that it might expand the whistleblower definition to include
people who never reported to
the SEC. The agency’s proposed rules, issued in 2011,
asked whether the protections
should “be applied broadly to
any person who provides information to the commission
concerning a potential violation of the securities laws.”
“ ‘To the commission,’
right?” Justice Gorsuch asked
of Daniel Geyser, the attorney
for Mr. Somers.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Wednesday, November 29, 2017 | B15
* * * * *
MARKETS
Treasury
Prices Slip
Following
A Weak
Auction
China Demand Fears Hits Copper
Copper prices fell for the
second straight day Tuesday,
with some investors concerned about future demand
from China.
Copper
COMMODITIES for March
delivery
fell 1.9% to
$3.0985 a pound on the
Comex division of the New
York Mercantile Exchange.
The industrial metal in recent
weeks has retreated from last
month’s three-year highs
amid doubts that consumption from China, the world’s
largest consumer of base
metals, will continue supporting prices.
Last week, Beijing had
warned of a possible bubble
in stock markets and initiated measures to reduce financial-market risks.
“This also resulted in interest rates in China rising
further, which also appears
to be seen as a warning signal of tighter liquidity,” analysts at Commerzbank said in
a note to clients.
Still, this week’s move
doesn’t seem like the start of
a big move lower, said Edward Meir, a strategist at
INTL FCStone. Mr. Meir said
demand from China has generally been strong this year
and that copper’s supply-demand fundamentals look
pretty good going into 2018.
Even with this week’s pullback, copper prices are up
more than 20% this year,
with a favorable global economic backdrop and the
prospect of electric vehicles
BY DANIEL KRUGER
U.S. government bond
prices slipped Tuesday amid
fresh economic data, a poorly
received bond auction and
concerns about progress on
the budget.
CREDIT
The yield on
MARKETS the benchmark
10-year
U.S.
Treasury note
rose for the second time in
three days, climbing to 2.338%
from 2.328% Monday. Bond
yields rise as prices fall.
A combination of factors
played into the day’s swings.
Yields slipped early in the session after Democratic congressional leaders pulled out of
planned budget talks with
Donald Trump after the president said in a tweet that he
didn’t see a path to a government spending deal, raising
concerns about a possible legislative stalemate. They rose
later after the Treasury’s $28
billion offering of seven-year
notes met weaker-than-expected demand from investors.
Fresh data on housing
prices and consumer confidence also contributed to
Tuesday’s moves. Those included an acceleration in
home prices, as the S&P CoreLogic Case-Shiller National
Home Price Index, which covers the entire nation, rose at
the fastest annual rate since
June 2014 in September.
Consumer confidence also
rose, hitting a 17-year high,
according to the Conference
Board, while the U.S. trade
deficit in goods expanded in
October as exports fell, according to the Commerce Department.
Later in the week, the Commerce Department will release
its latest report on the price
index for personal-consumption expenditures, the Fed’s
preferred inflation gauge,
while the Senate nears a vote
on major tax-cut legislation.
Jerome Powell, Mr. Trump’s
nominee to succeed Janet Yellen as chairman of the Federal
Reserve, also signaled in Senate testimony Tuesday the
central bank is likely to raise
interest rates in December.
“There are some issues that
the government needs to resolve,” said John Bredemus,
head of capital markets for Allianz Investment Management.
The unsettled nature of tax
and budget talks in Congress,
as well as hearings for a new
Fed chairman, “adds some volatility,” he said.
ELISEO FERNANDEZ/REUTERS
BY AMRITH RAMKUMAR
AND GEORGI KANTCHEV
Even with this week’s pullback, copper prices are up more than 20% this year with a favorable global economic backdrop.
stoking demand in future
years supporting the red
metal.
Continuing strikes at
Southern Copper Corp.
mines in Peru, which began
last week and are threatening
production, have had little
impact on the copper market
so far. Similar supply disruptions have supported prices
at various points this year.
“It’s just too early for it to
have much of an impact,” Mr.
Meir said.
A stronger dollar was
weighing on commodities
prices Tuesday by making
copper and other dollar-denominated materials more
expensive for foreign buyers.
The WSJ Dollar Index, which
tracks the U.S. currency
against a basket of 16 others,
rose 0.3%.
Among precious metals,
gold for February delivery
swung between small gains
and losses and closed up less
than 0.1% at $1,299.20 a troy
ounce. The dollar’s drop in
recent sessions has propelled
gold back near $1,300, with
many investors waiting to
BITCOIN
AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
FOUR-WEEK BILLS
$140,422,077,500
Applications
$45,000,217,500
Accepted bids
$569,281,500
" noncompetitively
$790,000,000
" foreign noncompetitively
99.909000
Auction price (rate)
(1.170%)
1.187%
Coupon equivalent
15.60%
Bids at clearing yield accepted
912796MJ5
Cusip number
The bills, dated Nov. 30, 2017, mature on Dec. 28, 2017.
SEVEN-YEAR NOTES
$67,707,777,000
Applications
$29,519,458,000
Accepted bids
$8,057,500
" noncompetitively
$0
" foreign noncompetitively
99.322976
Auction price (rate)
(2.230%)
2.125%
Interest rate
34.83%
Bids at clearing yield accepted
9128283J7
Cusip number
The notes, dated Nov. 30, 2017, mature on Nov. 30,
2024.
yield-bearing assets such as
Treasurys as borrowing costs
rise.
Gold prices sit near their
highest level in six weeks and
are roughly 4% off their yearto-date highs reached in
early September.
They inched higher toward
the end of Tuesday’s session
after reports that North Korea fired a missile toward the
east, ending a more than
two-month
hiatus
from
Pyongyang and threatening
to increase tensions with the
U.S. and in the region.
U.S. Weighs Lifting
Veil on Bond Market
BY GABRIEL T. RUBIN
YONHAP/EPA/SHUTTERSTOCK
Continued from page B1
as wallets, have less than 0.1
bitcoin in them, according to
research site BitInfoCharts.
Pete Ferro, a 66-year-old
small-business owner who resides in Brick, N.J., said he
started researching cryptocurrencies in the spring before ultimately diving in. “When I first
learned about it, I thought it
was too sketchy, too uncertain,
too risky,” he said. “Then I saw
it creeping up higher and
higher. I didn’t invest a lot, but
I’m learning as I go along.”
With the advice and guidance from his daughter’s 34year-old boyfriend, he plunked
$3,000 in June into ripple and
litecoin, two smaller virtual
currencies. He avoided bitcoin
because he thought it was expensive. “I kick myself for not
going in then because now it
skyrocketed.”
Investors and traders have
been attracted by bitcoin’s volatility in a low-interest-rate market where stocks and bonds
have plodded to slower gains.
While technology stocks have
rallied sharply, few have
jumped 10-fold like bitcoin has
this year, or even more than
that in the case of the smaller
virtual currencies, ethereum,
ripple and litecoin.
Bitcoin was introduced in
2008 by a pseudonymous actor
calling himself Satoshi Nakamoto. His vision was for an online currency that could be exchanged
between
peers,
without government or banks
standing in the middle.
The concept has gained fans
among those who believe that
“unbanked” residents of poorer
countries can use bitcoin and
other mobile money options to
participate more fully in the financial system.
see if the precious metal can
sustain a rally above the key
technical and psychological
level.
Traders are closely monitoring readings on the U.S.
economy and central-bank
signals for clues about the
Federal Reserve’s plans for
interest-rate increases in
2018. Although a December
rate increase is widely expected, low inflation could
alter the Fed’s future plans
and swing gold prices, some
analysts have said. Gold
struggles to compete with
An electronic board in South Korea shows trading information of
six different cryptocurrencies in September.
But the currency’s growth
has also attracted critics like
J.P. Morgan Chase & Co. CEO
James Dimon and Berkshire
Hathaway Chairman Warren
Buffett, who have argued that
governments likely will ultimately crack down, crushing
bitcoin’s price.
“Bitcoin is a speculative bubble that will pop at some
point,” wrote Michael Oliver, a
market analyst at Momentum
Structural Analysis, in North
Carolina. Much like the dot-com
bubble, however, the sector he
argued will become more mature after its reckoning.
Much of this year’s growth
has come from Japan. On April
1, Japan’s Financial Services
Agency put in new rules around
bitcoin, which recognized it as
a legitimate payment method.
Japan quickly became one of
the largest markets for bitcoin,
currently representing about
60% of all trading.
While bitcoin’s $166 billion
market value now rivals that of
General Electric Co. or the
monetary base of Venezuela,
the use of bitcoin’s network
isn’t keeping pace. The number
of bitcoin transactions on a
daily basis has been consistent
in 2017. In January, daily transactions averaged between
250,000 and 300,000. It fell
during the summer, then regained near-peak levels in the
fall.
Bitcoin’s price rise has come
during an intense feud within
the industry over the currency’s future. Because of its
growth, the bitcoin network
can’t efficiently process all the
transactions its gets, forcing
users to offer fees in exchange
for faster trade confirmations.
Those fees average around $5,
but rose to nearly $20 earlier
this month.
Partially in response to such
fees, some bitcoin market participants wanted to expand the
network’s capacity, but their efforts have fallen short for now.
That makes bitcoin less useful
as a means of exchange, leaving
it as more of a store of value.
In other words, coffee-shop
customers may no longer be interested in paying for their
morning order in bitcoin instead of with a credit card. But
if they invested in bitcoin, they
could probably afford to buy a
cup for all their friends.
—Eun-Young Jeong
contributed to this article.
U.S. regulators said they are
considering releasing to the
public some of the data on the
$14 trillion U.S. Treasury market that they have been collecting since this summer, but no
decision was imminent.
“The policy for public dissemination of the data is being
actively considered,” said Craig
Phillips, counselor to Treasury
Secretary Steven Mnuchin,
speaking Tuesday at the Treasury Market Structure conference at the Federal Reserve
Bank of New York.
Former Treasury Secretary
Jacob Lew, an Obama appointee, had favored making the
data public, and observers were
watching remarks from the New
York Fed conference to see
where regulators installed by
the Trump administration stand
on the issue.
Mr. Phillips said he had received a mixed response from
market participants on the benefits of releasing the data,
though he said he understood
“the importance of transparency and the potential value” of
making some data public.
“There is the need to balance
the interests of all stakeholders
that participate in the Treasury
market in a way that is least
disruptive to the liquidity and
functioning of the Treasury
market,” Mr. Mnuchin added in
a speech later Tuesday.
The debate over making the
data public divides the financial-services industry. In general, big banks favor keeping
the data for regulators’ use only,
while high-speed traders and
hedge funds support making it
public.
Traders have been required
to report secondary Treasury
trades—those in which existing
bonds change hands—to regulators since July.
Top banking and markets
regulators at the New York Fed
conference said daily visibility
into the Treasury market was
helping them keep track of market structure and liquidity issues.
“The more we collectively
learn about trading liquidity,”
said Commodity Futures Trad-
The debate over
making the data
public divides the
financial industry.
ing Commission Chairman J.
Christopher Giancarlo, “the better job we as regulators and
policy makers can do of keeping
up with evolving market structures and making sure that they
serve the economic needs of society.”
Securities and Exchange
Commission Chairman Jay Clayton said that since the July reporting requirements came into
effect, “regulator access to
Treasury security data is much
improved, both in scope and
timing.”
Still, while regulators have
begun to actively study and incorporate the data into their
market-surveillance operations,
they appeared to be divided on
what data should be made available to the public.
Bets Stock Volatility Will Stay Low Continue to Pay Off
BY CHRIS DIETERICH
Betting the Center Will Hold
Exchange-traded products that benefit from declines in volatility, a measure of expected stock-price swings,
have soared in price—yet they haven't lured large inflows. The developments are being watched by analysts
who warn that volatility won't stay low forever and that renewed jitters could mean large losses.
Performance of exchange-traded product
Investor flows into these products
175%
$800 million
VelocityShares
Daily Inverse
VIX ShortTerm ETN
150
125
600
VelocityShares Daily
Inverse VIX Short-Term ETN
400
ProShares Short VIX
Short-Term Futures ETF
100
200
75
0
50
–200
0
25
–400
S&P 500
0
–600
J
F
M
A
M
J
J
A
S
O
*Through Nov. 27
Sources: WSJ Market Data Group (performance); FactSet (flows)
N
J
F
M
A
M
J
J
A
S
O
N*
THE WALL STREET JOURNAL.
Bets on a subdued market
“fear gauge” notched another
milestone.
Exchange-traded products
designed to “short” the Cboe
Volatility Index, or VIX, ended
Tuesday with year-to-date returns north of 150%.
While stupefying price
gains in bitcoin have stolen
the spotlight in recent months,
short-VIX ETPs are, arguably,
the most apt mascots for
2017’s “buy-the-dip” market.
That is because rising
stocks and unusual calm are
rocket fuel for short-volatility
instruments. Neither trend
shows signs of stopping.
Last week ushered in the
lowest intraday VIX reading
on record, 8.56.
The VIX tends to fall when
stocks rise, and vice versa, because it measures how much
traders will pay for protective
options on the S&P 500.
The stock market has been
so calm that traders don’t feel
like paying up. Strong earnings and synchronized economic growth have drawn investors to risky assets at the
same time that accommodative monetary policies have
discouraged investors from
owning safer, low-yielding
ones.
Central bankers have telegraphed their next moves and
few forecast economic recession soon.
Pessimists warn that an
eventual reversal in short-vol-
atility ETP prices will be swift
and severe. But, as with the
stock market, bears have been
wrong for a long time.
Despite huge gains, flow
data show investors aren’t piling in to the two main shortVIX products, the VelocityShares Daily Inverse VIX
Short-Term exchange-traded
note and the ProShares Short
VIX Short-Term Futures exchange-traded fund.
All told, some $32 million
has exited from these ETPs so
far in 2017, according to FactSet, a sign that traders are
taking profits as prices rise.
For now, it appears that
traders are riding the shortVIX wave but are keeping
these products on a short
leash.
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B16 | Wednesday, November 29, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Indexes BankRecords onFinancials’Surge
Dow Jones
Industrial
Average
+1.1%
Lift comes from Fed
nominee Powell’s
comments on rates,
tax bill’s advance
S&P 500
+1.0%
BY MICHAEL WURSTHORN
AND RIVA GOLD
Surging shares of financial
companies helped the Dow
Jones Industrial Average and
the S&P 500 notch their biggest gains since September.
Banks
TUESDAY’S
and insurMARKETS
ance companies drove
the financial
sector of the S&P 500 up 2.6%,
its best day since March.
Shares of financial companies got a boost after Jerome
Powell indicated the Federal
Reserve was likely to raise
short-term interest rates next
month. The Senate Budget
Committee also advanced the
Republicans’ tax bill Tuesday
afternoon, sending all three
major indexes toward intraday
peaks and a new round of closing records. A full Senate vote
could happen later this week.
Mr. Powell, who was speaking at a Senate panel hearing
on his nomination to be the
next Fed chairman, also said
he believes some financial-crisis-era regulations should be
re-evaluated to ensure they are
efficient and tailored to the
risks of individual firms.
“These financial firms have
been under the thumb so long
of previous administrations
that the prospect for relief” is
significant, said Bruce Bittles,
chief investment strategist for
Robert W. Baird. “Throw on
the potential for tax legislation, and you got a double-barreled positive for financials.”
Stocks briefly pared gains
after South Korean officials
said North Korea fired another
missile, its first since September, but then resumed their
climb following the tax news.
The Dow Jones Industrial
Nasdaq
Composite
+0.5%
0
9:30 a.m.
10
11
noon
1 p.m.
3
4
Investors anticipated
higher interest rates,
deregulation and tax cuts.
Small companies and retailers were among the day's
biggest gainers. Some analysts view such firms as
likely to benefit from a corporate tax cut, since they
tend to pay a relatively high tax rate.
The bevy of developments
also triggered fluctuations
in Treasury yields, which
ended slightly higher.
S&P 500 financials sector
Index and share-price performance
Yield on the 10-year Treasury note
445
4%
440
2
435
0
430
2.36%
Macy’s
Best Buy
Kohl's
Russell 2000
2.34
2.32
–2
9:30 10
11 noon 1
2
3
4
2.30
9:30
10
11
noon
1
2
3
4
Sources: WSJ Market Data Group (Dow, Nasdaq, S&P 500, Russell 2000, stocks); FactSet (financials); Thomson Reuters (yield)
Average gained 255.93 points,
or 1.1%, to 23836.71, while the
S&P 500 added 25.62 points,
or 1%, to 2627.04. The Nasdaq
Composite was up 33.84
points, or 0.5%, to 6912.36.
Shares of J.P. Morgan Chase
rose $3.43, or 3.5%, to $101.36,
while Goldman Sachs Group
rose 4.30, or 1.8%, to 239.41.
Together, the two banks accounted for about 53 points of
the Dow industrials’ gain Tuesday. American Express rose
1.81, or 1.9%, to 95.28.
The tax plan’s advancement
helped lift shares of U.S. retailers and small businesses late
in the session, two areas that,
like financial firms, tend to pay
a relatively high tax rate and
would benefit from the proposed cut in corporate taxes,
analysts said.
9
10
11 noon 1
2
3
THE WALL STREET JOURNAL.
Macy’s rose 96 cents, or
4.5%, to 22.17, while Kohl’s
gained 80 cents, or 1.8%, to
46.01. Best Buy added 1.03, or
1.8%, to 58.05. All three of
those retailers pay an effective
tax rate of more than 30%, according to data from S&P
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Battery Makers Power Up Hunt for Winners
“The storage battery is, in
my opinion, a catchpenny, a
sensation, a mechanism for
swindling the public by stock
companies,” wrote Thomas
Edison in 1883.
Today, the battery industry is mustering for exponential growth as car makers
electrify their fleets, most
visibly at Tesla’s $5 billion
factory in Nevada. For investors looking to gain from the
battery’s rise, though, the
doubts of the 19th-century
entrepreneur linger. The
path to profitability is far
from clear.
Your mobile phone contains a lithium-ion battery
and so does every batteryelectric or hybrid car. The
difference is that cars require vastly more powerful
batteries. The industry will
need to increase production
from 68 gigawatt-hours of
lithium-ion cells last year to
1,165 GWh over the next decade, estimates brokerage
Berenberg.
A handful of big East
Charging Ahead
Lithium-ion battery demand
1,200 GWh
Stationary
storage
1,000
Projected
800
Automotive
600
400
200
0
Electronics
2015
’16
’21
Source: Berenberg
’26
THE WALL STREET JOURNAL.
Asian companies have
rushed into this supply gap.
For all the “gigafactory”
hype, Tesla doesn’t make
batteries: Cell production is
the responsibility of its Japanese partner, Panasonic.
The other leaders in the field
are LG Chem and Samsung
SDI, both listed subsidiaries
of the namesake Korean conglomerates.
Hot on the Koreans’ heels
are two Chinese companies
determined to supply the
ballooning Chinese electricvehicle market: BYD, 8.25%owned by Berkshire Hathaway and an electric-car
maker, and Contemporary
Amperex Technology. These
five companies and a few
newcomers intend to build
24 factories with a total ca-
pacity of 332 GWh by 2021,
calculates Simon Moores,
managing director of consulting firm Benchmark Mineral Intelligence.
Investors looking to benefit from this gold rush need
to take a long-term view.
The capital requirements are
vast, and the contracts being
signed are at wafer-thin
margins.
Negotiating with car makers will also be tough. Outside China, the automotive
industry is highly consolidated, and manufacturers
are under intense pressure
from environmental regulators to sell electric cars even
though their cost is uncompetitive. The only solution
for car makers will be to pile
pressure on battery prices.
Investors may be better
off looking further up the
supply chain. The most valuable component of a battery
is its cathode. The chemistry
is sophisticated and fastevolving, which should offer
cathode makers some pro-
tection from cost pressures.
Japan’s Sumitomo Metal
Mining supplies Panasonic
for Tesla, while Belgium’s
Umicore and a few others
cover the rest of the market.
The risk for these companies is that a radically new
technology makes existing
investments obsolete. John
Goodenough, a 95-year-old
professor at the University
of Texas considered a founding father of the lithium-ion
battery, this year claimed a
breakthrough with “solidstate” cells. Toyota Motor
expects to sell cars with
solid-state batteries by the
early 2020s.
The battery industry is
poised to expand very fast,
but the growth will be capital intensive and may be
technologically volatile. Batteries may no longer be a
trick for swindling amateur
stock pickers, but that
doesn’t mean they will provide an easy way to make
money.
—Stephen Wilmot
Global Market Intelligence.
The Russell 2000 index of
small-capitalization
stocks
added 1.5% and closed at a record.
While stocks have sputtered
in some recent sessions, indexes around the world are
still at multiyear highs or records. Investors say the underlying picture has remained
positive for relatively risky assets like stocks.
The S&P 500 is on track for
its eighth straight month of
gains and is up 17% in 2017,
while the Nasdaq Composite
has risen 28% this year.
The global economy is on
course for its best year since
2010, the Organization for
Economic Cooperation and Development said Tuesday.
Meanwhile,
new
data
showed consumers are more
confident than they have been
in 17 years, according to the
Conference Board.
“We have had good economic momentum around the
globe, and that’s being reflected in global capital markets,” said William Northey, a
senior vice president with U.S.
Bank Wealth Management.
Investors also are watching
to see if the Organization of
the Petroleum Exporting Countries and Russia agree to extend their deal to curb production and for how long.
Elsewhere, the Stoxx Europe
600 rose 0.6% to snap a twosession losing streak. The
U.K.’s FTSE 100 added 1%, its
biggest percentage gain since
July, after the Bank of England
presented the results of its annual balance-sheet health
check. The U.K.’s largest banks
would be able to withstand
Britain crashing out of the European Union, it said.
In Asia, domestic Chinese
stocks showed signs of stabilizing Tuesday. At midday
Wednesday, Japan’s Nikkei was
up 0.4%, but the Shanghai
Composite was down 0.6% and
Hong Kong’s Hang Seng Index
was down 0.3%.
WSJ.com/Heard
OVERHEARD
Once bitten, twice shy?
Not at Morgan Stanley,
whose European equity strategists have been chewing
over the FANG concept.
Europe doesn’t quite have
the technological cutting-edge
punch packed by Facebook, Amazon.com, Netflix and Google, a big reason
European stocks have lagged
behind those in the U.S.
Europe’s FANGs are a geographical grouping: France,
Austria, the Netherlands and
Germany. But don’t rush to
buy them. The four are the
most expensive stock markets in Europe relative to the
past 10 years. That suggests
investors might want to look
elsewhere in Europe, perhaps
to Spain.
Morgan Stanley isn’t pushing the European FANG
theme as one of its five key
recommendations. Rather, the
bank says it is an idea “of interest.” Perhaps, it’s more testament to the allure of acronyms than anything else.
UnitedHealth Reaches Unhealthy Heights U.S. Ignores an Opportunity in China
Even the best blue-chip
stocks can become overheated.
One example might be
UnitedHealth Group, which
unveiled strong guidance at
Tuesday’s investor day.
Thanks to growth in nearly
all of its business lines, the
health insurer expects adjusted earnings of $10.55 to
$10.85 a share in 2018,
roughly 6% growth from this
year’s profit forecast.
Shares advanced Tuesday
and have more than quadrupled over the past five years.
But its valuation of nearly 20
times forward earnings
means UnitedHealth has a
lot to live up to.
True, UnitedHealth has
developed a reputation for
issuing conservative guidance and raising it.
Pricey
UnitedHealth’s forward
price/earnings ratio
20 times
15
10
5
0
2007 ’09
’11
’13
’15
’17
Source: FactSet
Still, investors are taking
higher risks to get diminishing rewards. A year ago,
when the stock fetched 17
times forward earnings,
UnitedHealth issued adjusted
earnings guidance of $9.30
to $9.60 a share, compared
with a consensus of $9.14.
There are ways for inves-
tors to lose, even if UnitedHealth continues to live up
to its strong reputation. For
instance, tax reform isn’t
baked into the company’s
guidance: UnitedHealth predicts a 2018 tax rate of 37%
so it stands to benefit more
than most from tax reform.
Investors disappointed by a
failure in Washington would
likely take their frustration
out on the insurer.
Potentially strengthening
competition is another risk.
CVS Health has offered to
acquire health insurer
Aetna. That deal would replicate key aspects of UnitedHealth’s business model.
UnitedHealth continues to
be a terrific business. That
doesn’t mean the stock continues to be a terrific investment.
—Charley Grant
It’s winter again in China
and many people—particularly in the dusty, polluted
north—are hacking their
lungs out.
The next time President
Donald Trump arrives in Beijing he should take note of
that funky feeling in the
chest: China is full of elderly,
sick and increasingly wealthy
people. Its health-care sector, however, is still largely
impenetrable to Western
capital. That should change.
Listed health-care companies in China enjoyed an average 9% return on assets in
2016, according to Chinese
date provider Wind Info, versus 5.4% for all listed companies. Finance and energy
clocked in at just 2.2% and
0.6%, respectively. Healthcare cost inflation in China,
meanwhile, is running rampant. The consumer-price index for medical services in
China was up 8.7% on the
year in October, far outpacing every other major consumer category. Overall inflation was up just 1.9%.
Beijing’s attitude toward
foreign investment has been
vexing. It announced a pilot
program for wholly owned
foreign hospitals in seven
Chinese regions in 2014. But
in 2015, the Ministry of Commerce added health-care institutions back to the list of
sectors restricted to joint
ventures only.
As a result, foreign involvement has been limited.
Foreign direct investment in
Chinese health care is less
than 0.3% of the total year to
date. Health-care and social-
welfare spending in China,
meanwhile, was up nearly
20% on the year in 2015
alone. Anecdotal evidence
suggests wealthy Chinese are
flocking to hospitals in the
U.S. and Australia.
The Trump administration’s wins on energy and finance in China this month
were important. But a narrow focus on such high-profile, politically sensitive sectors risks missing out on
even bigger opportunities.
A guarantee from President Xi Jinping on a consistent, streamlined and fair
policy toward foreign investors in health care might do
more to lift American animal
spirits—and improve the
lives of Chinese citizens—
than all the gas in Texas.
—Nathaniel Taplin
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