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The Wall Street Journal - May 15, 2018

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TUESDAY, MAY 15, 2018 ~ VOL. CCLXXI NO. 113
* * * * *
DJIA 24899.41 À 68.24 0.3%
NASDAQ 7411.32 À 0.1%
STOXX 600 392.19 g 0.1%
10-YR. TREAS. g 7/32 , yield 2.995%
WSJ.com
OIL $70.96 À $0.26
GOLD $1,316.50 g $2.50
Calpers’s investment chief
said he would leave by yearend, the latest executive
departure at the fund. B1
Goldman is shaking up
the leadership of its trading
arm, a business that has
struggled in recent years. B1
Some at Tesla voiced concern long before a March crash
that there weren’t enough Autopilot safeguards to ensure
drivers remained attentive. B1
Tesla will restructure and
flatten its management,
CEO Musk told employees. B4
Shale drillers are ramping up production in the U.S.
as oil prices increase, moving beyond West Texas. B1
Nissan should stay independent, its CEO said, voicing opposition to a potential merger with Renault. B3
Apple supplier Foxconn
reported a worse-than-expected 15% decline in firstquarter net profit. B4
The Dow gained 68.24
points to 24899.41 amid signs
of easing trade tensions between the U.S. and China. B11
Facebook suspended
some 200 apps for suspected
misuse of users’ data shared
on or through Facebook. B5
Venture firm NEA plans
to sell about $1 billion of
its startup investments
amid a dearth of IPOs. B4
A Modigliani painting sold
for $157.2 million at Sotheby’s,
a record for the artist. A2
World-Wide
The U.S. opened a new
embassy in Jerusalem, as
clashes between Palestinian
protesters and Israel’s military left dozens dead. A1
Russia’s military alliance
with Tehran in Syria is showing cracks after Israeli strikes
against Iranian forces. A16
The Supreme Court invalidated federal prohibitions
on sports wagers, opening
the door to legal sports betting across the nation. A1, A12
The U.S. and China are
closing in on a deal that would
end a ban on ZTE in exchange
for Beijing removing tariffs
on U.S. farm products. A1
Iraqi populist cleric Sadr,
a critic of both the U.S. and
Iran, staged a strong showing in elections, scrambling
the political landscape. A16
Workplace inspections
are rising as part of an effort to find illegal workers
and deter firms from hiring
them, ICE data show. A3
Islamic State-inspired
militants appear to be waging a new terror campaign
in Indonesia with attacks
on churches and police. A7
Malaysia’s new premier
prepared to relaunch probes
into financial scandals. A7
Catalonia’s assembly
elected a new leader, likely
clearing the way for Madrid to end direct rule
over the restive region. A16
Melania Trump underwent a medical procedure for
a benign kidney condition. A2
New fissures opened on
Hawaii’s Big Island as Kilauea
continued to spew lava. A3
CONTENTS
Business News.. B3,6
Capital Journal...... A4
Crossword............... A11
Heard on Street. B12
Life & Arts......... A9-11
Markets............. B11-12
Opinion.............. A13-15
Sports........................ A12
Streetwise................. B1
Technology.......... B4-5
U.S. News............. A2-5
Weather................... A11
World News. A6-7,16
>
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
FROM TOP: IBRAHEEM ABU MUSTAFA/REUTERS; RONEN ZVULUN/REUTERS
Business & Finance
BS moved to break free
from the Redstone family’s grip and thwart what
it fears would be a forced
merger with Viacom, escalating a yearslong struggle. A1
EURO $1.1929
YEN 109.65
CBS Ups
Stakes in
Feud With
Redstones
What’s
News
C
HHHH $4.00
BY JOE FLINT
AND KEACH HAGEY
In the Gaza Strip, 59 protesters were killed in clashes with Israeli soldiers Monday as President Donald Trump’s elder daughter, Ivanka
Trump, and Treasury Secretary Steven Mnuchin, both below, participated in the opening of the new U.S. Embassy in Jerusalem.
Chaos as U.S. Embassy Opens
Move to Jerusalem
fuels protest at Gaza
border, leaving scores
of Palestinians dead
BY FELICIA SCHWARTZ
AND RORY JONES
JERUSALEM—The U.S. cemented its ties to Israel by
opening a new embassy in Jerusalem on Monday, as clashes between Palestinian protesters
and Israel’s military left dozens
dead and added to the Trump
administration’s challenges in
the Middle East.
The ceremony, held in a large
tent beside the new embassy,
was attended by top Israeli and
U.S. officials. “This is a great
day for Israel, it’s a great day
for America,” Prime Minister
Benjamin Netanyahu of Israel
told the attendees. “I also believe it’s a great day for peace.”
Some 50 miles away, Israeli
military used warplanes to hit
targets belonging to Hamas, the
Palestinian faction that rules
Gaza, and fired live ammunition, tear gas and rubber bullets
at Palestinian protesters as
many of them attempted to
breach the fence dividing the
Gaza Strip and Israel.
Protesters used explosive devices, firebombs and flaming
kites, according to the Israeli
military. Numerous shots were
fired, and Gazans burned tires
and threw Molotov cocktails at
Israeli soldiers.
Gaza officials said 59 protesters were killed—among them a
12- and a 14-year-old—and more
than 2,400 were injured. That
marked the largest single-day
By Brent Kendall,
Chris Kirkham
and Andrew Beaton
breaking shift for sports
leagues, fans and casinos.
The court, in a 6-3 opinion
written by Justice Samuel Alito, struck down the 1992 Professional and Amateur Sports
Protection Act, or Paspa, a
federal law that said states
couldn’t “sponsor, operate, advertise, promote, license, or
Don’t Like
Dating Sites?
Try Spotify
i
i
i
Music, blogging
platforms double
as matchmakers
BY EMMA COURT
Musician Jacoby Jennings
doesn’t like online dating sites.
Yet he found love over the internet anyway—through the music-streaming service Spotify.
A playlist he created, inspired by music from the movie
“Drive,” attracted followers, including one he found especially
intriguing.
“The thing that caught me is
she was into the Cure, one of
my top three bands, she has
blue hair, she was posing in a
DeLorean in her Facebook picture,” recalls Mr. Jennings.
He messaged her. She was a
Please see LOVE page A8
authorize” sports gambling.
The ruling, which sided
with a challenge brought by
New Jersey, clears the way for
states, if they choose, to allow
gambling on athletic events
watched by millions of Americans. It also set off an immediate scramble, as state and federal
lawmakers,
sports
executives and gambling operators began envisioning a
world in which legal, statesanctioned wagers become a
central part of the American
sports landscape.
Please see BETS page A2
Professional leagues gear up
for a betting future................... A12
Jason Gay: Here comes the
apocalypse................................. A12
BY WILLIAM WILKES
ANSBACH, Germany—A few years ago, Roland Rösch’s job involved grabbing scalding-hot
auto parts from an oven and inspecting them
for signs they had failed a safety test.
These days he still inspects, but the grabbing is being done by Fritz, a robot that autoparts manufacturer Robert Bosch GmbH installed three years ago at this German factory
as part of an automation effort.
Fritz is more efficient at handling the dangerous and repetitive task of lifting the 8-inch
metal-and-circuitry pieces out of the furnace.
This leaves Mr. Rösch less exposed to potential
accidents and gives him time to test 20% more
The difference between yields on 10-year U.S. Treasury notes and
German government bonds is at its widest point in almost three
decades, a sign of investor confidence in U.S. growth. B12
Yields on 10-year government bonds, weekly
4%
3
Brexit vote U.S. election
U.S.
Treasury
2.995%
2
1
German
bund
0.610%
0
2011
’12
’13
Source: Thomson Reuters
’14
’15
Heard on the Street: CBS
gambles in Redstone spat... B12
Machines take on repetitive tasks, freeing humans to be creative
Gap in Bonds Sets Treasurys Apart
Taper tantrum,
when yields surged
after Fed officials
signaled they
would soon
end stimulus
Iraq cleric gains sway after
upset vote................................. A16
Israeli strikes in Syria test
Russia-Iran ties....................... A16
Big Companies Fine-Tune
The Robot Revolution
High Court Voids Ban
On Sports Gambling
WASHINGTON — The Supreme Court opened the door
to legal sports betting across
the country by invalidating
federal prohibitions on such
wagers, in a ruling Monday
that could mark a ground-
death toll since the IsraeliHamas conflict of 2014.
The unrest followed months
Please see ISRAEL page A6
CBS Corp. moved to break
free from the Redstone family’s
grip and thwart what it fears
would be a forced merger with
Viacom Inc., escalating a yearslong power struggle over the
fate of the two media giants.
CBS filed a lawsuit Monday
against the Redstones and their
family holding company and invoked a little-known provision
in the CBS corporate charter
that it claims would allow it to
issue voting shares to all stockholders, significantly diluting
the voting power that the Redstones have held over CBS for
nearly two decades.
The maneuver amounts to
the triggering of what has
been described as a “nuclear
option” in the long-running
power struggle between Shari
Redstone and CBS Chief Executive Leslie Moonves, who has
resisted her efforts to merge
CBS and Viacom for two years.
In the lawsuit filed in a Delaware court, CBS and a special
committee of independent directors sued Ms. Redstone, her
father, Sumner Redstone, and
their National Amusements Inc.
holding company. CBS and the
committee say they are seeking
to prevent the Redstones and
their company from breaching
their fiduciary duties and causing irreparable harm by forcing
a merger of CBS and Viacom,
among other issues.
National Amusements controls almost 80% of the voting
stock in both companies, giving
it power to decide shareholder
votes and elect directors.
Over the weekend, the CBS
special committee, tasked with
evaluating the possible recombination with Viacom, decided
Please see CBS page A4
’16
’17
’18
THE WALL STREET JOURNAL.
parts than he did before the robots.
The big question surrounding automation
has long been whether robots would compete
with workers or help them. Initially, workers
feared robots would destroy jobs across the
economy. Scholarly research and real-life experience have eased that concern, although some
types of workers and industries are ending up
on the losing side.
Today, the question is more precise: In
which industries does automation help both
employer and employee?
The companies that may have cracked the
code are those that can assign repetitive, precise tasks to robots, freeing human workers to
Please see ROBOT page A8
U.S. Rethinks ZTE Order
As China Accord Nears
The U.S. and China are closing in on a deal that would give
China’s ZTE Corp. a reprieve
from potentially crippling U.S.
sanctions in exchange for Beijing removing tariffs on billions
of dollars of U.S. agricultural
products, said people in both
countries briefed on the deal.
By Lingling Wei in
Beijing and Bob Davis
in Washington
The negotiations also would
ease roadblocks in China faced
by U.S. semiconductor company
Qualcomm Inc., whose proposed
acquisition of NXP Semiconductors NV of the Netherlands has
been held up by Beijing. China’s
Commerce Ministry has pledged
to immediately restart its review of the acquisition, a person close to the agency said.
The ministry has held up a
number of multibillion-dollar,
cross-border deals being pursued by U.S. companies over the
past few months.
ZTE is a Shenzen-based telecommunication-equipment producer that has been hamstrung
by a U.S. ban on component
sales to the company.
An agreement isn’t completed
and could fall apart as discussions continue, particularly since
the U.S. side is sharply divided
over how to deal with China. On
Sunday, President Donald Trump
said in a tweet that he was
working with Chinese President
Xi Jinping to get ZTE “a way to
get back into business, fast. Too
many jobs in China lost.” He said
the Commerce Department has
been instructed to “get it done!”
Mr. Trump’s tweet took many
in his inner circle by surprise,
said people involved in the discussions, and wasn’t preceded
by interagency discussions on
the policy. Treasury Secretary
Please see CHINA page A5
Heard on the Street: China
innovation needs U.S. tech... B12
.
A2 | Tuesday, May 15, 2018
THE WALL STREET JOURNAL.
* ****
U.S. NEWS
Both back bank’s goals
of price stability, low
unemployment; one
faults Dodd-Frank law
BY NICK TIMIRAOS
Richard Clarida, the Columbia University economist
picked to serve as the Federal
Reserve’s No. 2 official by
President Donald Trump, said
he would “fully support” the
central bank’s mission and
promote accountability that
preserves its independent status.
In prepared testimony released Monday by the Senate
Banking Committee ahead of a
hearing on his nomination
Tuesday, Mr. Clarida said he
would support interest-rate
policy that takes a “balanced
approach” to achieving the
central bank’s goals of stabilizing prices and maximizing
sustainable employment.
He also said he supported
financial regulatory policies
that are “effective, efficient
and appropriately tailored” to
provide a safe and sound financial system. His testimony
appeared to broadly endorse
the regulatory architecture enacted following the 2008 financial crisis, including the
2010 Dodd-Frank legislation.
Policies should “preserve
the far greater resiliency and
stability of the financial system that has been achieved as
a result of the significant re-
forms that have been put in
place since the financial crisis,” Mr. Clarida said.
Mr. Clarida is managing director and global strategic adviser at Pacific Investment
Management Co.
He will testify alongside Michelle Bowman, the Kansas
banking commissioner who
has been picked for a seat on
the Fed’s seven-member board
reserved for a community
banker or community bank
regulator.
Ms. Bowman, who has
worked at her family’s community bank, said her role as a
compliance officer after the
Dodd-Frank overhaul was enacted gave her firsthand experience in the law’s shortcomings.
“The
regulatory
CHRISTOPHER GOODNEY/BLOOMBERG NEWS
Two Fed Nominees to Face Senate Panel
Richard Clarida
environment created in the aftermath of the crisis has disadvantaged
community
banks,” she said in her prepared testimony.
She said she would work
with the Fed’s board of governors, if confirmed, to “ensure
that rules preserve the resiliency of the financial system
but are appropriately tailored
to the size, complexity and
risk of an institution.”
Ms. Bowman also said she
supported the Fed’s mandate
to target price stability and
maximum employment.
Mr. Clarida has written frequently in academic journals
and for Pimco investors on a
range of monetary-policy topics, leaving a thorough body of
work for lawmakers to consider during his confirmation
hearing Tuesday.
Ms. Bowman, by contrast,
has comparatively little in the
public record about how she
would approach monetary pol-
icy, the Fed’s relationship with
the executive branch and financial regulation.
Mr. Clarida is well-regarded
by economists on both sides of
the aisle.
Former Fed Chairman Ben
Bernanke and three other former leading policy makers endorsed Mr. Clarida’s nomination in a letter to the top
Republican and Democrat on
the Senate Banking Committee
on Monday.
Mr. Clarida would serve as
a top lieutenant to Fed Chairman Jerome Powell, who is
the first Fed leader in more
than 30 years who isn’t an
economist.
James Mackintosh: Lies,
damn lies and inflation......... B1
U.S. WATCH
Powerful Storm Lashes Denver
WHITE HOUSE
ART
First Lady Undergoes Modigliani Painting
Sold for $157.2 Million
Medical Procedure
Several states are in various phases of enacting sports-betting legislation, drawn by the prospect of
securing some of the revenue that now flows to Nevada.
SENATE
DAVID ZALUBOWSKI/ASSOCIATED PRESS
Lines Drawn
First lady Melania Trump underwent a medical procedure to
treat a benign kidney condition,
the White House said.
Monday’s embolization procedure was successful and there
were no complications, the
White House said. Mrs. Trump is
at Walter Reed National Military
Medical Center and is likely to
remain there the rest of the
week, the White House added.
Further details about Mrs.
Trump’s condition and treatment
weren’t disclosed. President Donald
Trump said Monday afternoon he
was headed to the Bethesda, Md.,
medical center to see Mrs. Trump.
“Successful procedure, she is in
good spirits,” he tweeted. “Thank
you to all of the well-wishers!”
An embolization of a kidney
isn’t uncommon, said Brian Funaki, chief of vascular and interventional radiology at the University of Chicago Medical
Center. He said the idea is to
block off blood flow to a kidney
growth that can either be benign or cancerous, although the
procedure is more often used
with benign growths.
—WSJ Staff
ROUGH PASSAGE: A motorist attempted to navigate an intersection in Denver on Monday after hail and heavy rain descended on the area.
BETS
Continued from Page One
“It’s going to add an entirely different dimension to
fan engagement. What remains
to be seen is whether it’s a
good dimension,” said Nellie
Drew, a sports-law professor
at the University of Buffalo.
In the 31-page decision, the
high court agreed with New
Jersey’s argument that the
federal law was an intrusion
into states’ rights to regulate
activity within their borders.
Paspa “unequivocally dictates what a state legislature
may and may not do,” Justice
Alito wrote, adding that “a
more direct affront to state
sovereignty is not easy to
imagine.”
Congress has the authority
to regulate sports gambling directly, “but if it elects not to do
so, each state is free to act on
its own,” Justice Alito wrote.
Sen. Orrin Hatch (R., Utah)
suggested Monday he would
push for national legislation.
Joining Justice Alito were
Chief Justice John Roberts
and Justices Anthony Kennedy, Clarence Thomas, Elena
Kagan and Neil Gorsuch.
New Jersey Gov. Phil Murphy, a Democrat, praised the
court’s ruling, as well as efforts
by his predecessor, Republican
Chris Christie, to open the
state to sports wagers. The
Justice Department, which defended the federal prohibitions, declined to comment.
Sports enthusiasts could
now see legalized sports gambling in a number of additional
states in coming months, including Pennsylvania and West
Virginia, which have already
passed legislation to allow for
wagers. A group of 18 state attorneys general and three governors filed a brief supporting
New Jersey’s position.
Share prices for regional
U.S. casino operators such as
Caesars Entertainment Corp.,
Penn National Gaming Inc. and
Boyd Gaming Corp. rose Monday. Caesars was up more than
5% at the close, while Penn was
up 4.6% and Boyd rose 3%.
Caesars said it planned to
expand its U.S. sports betting
business “wherever secure and
responsible wagering on sporting events is legalized.”
On Monday, Daily fantasy
sports operators FanDuel Inc.
States with active sports betting legislation, 2018
Authorizing bill already passed
State has previously authorized
State has live authorizing
legislation
State had bill in 2018 but session
has ended
State has study bill
Total Nevada sports betting
revenue
$500 million
Estimates
400
300
200
100
0
2009 ’10
’15
’20
Notes: Oregon is exploring whether its previous authorization could be re-enabled or if new legislation is required. Connecticut passed a sports
betting bill but still requires enabling legislation.
THE WALL STREET JOURNAL.
Source: Eilers & Krejcik Gaming
and DraftKings Inc. said that
they are planning to enter the
sports-betting market.
Obstacles remain. States
will need to craft licensing and
taxing regimes, and legalization efforts could face opposition from antigambling forces.
Congress could choose to get
involved, though it is unclear
whether lawmakers in a gridlocked Capitol have the appetite to tackle the issue.
The court agreed with
the argument that the
law was an intrusion
into states’ rights.
Mr. Hatch, an original author of Paspa, said he would
offer legislation in the coming
weeks to set federal standards
as states decide whether to allow sports betting. “We cannot
allow this practice to proliferate amid uneven enforcement
and a patchwork race to the
regulatory bottom,” Mr. Hatch
said.
Congress passed the 1992
law in response to concerns
that a growing number of
states wanted to allow sports
wagers. Bets on individual
sporting events now take place
only in Nevada, since a long
history allowed the state to be
grandfathered into the federal
law. Laws in Oregon and Delaware allow for more limited
wagering, but legal bets on
single sporting contests have
been off-limits to most Americans, leaving only unregulated
black markets—and informal
pools on marquee events.
One big unknown is what
form wagering might take
throughout the country. If
states restrict it to in-person
bets at casinos, that would
make for a much smaller market than allowing wagers to be
placed online.
A study last fall from industry consultant Eilers & Krejcik
Gaming LLC found that total
annual revenue from sports
betting at casinos and racetracks in all 50 states would
amount to $7.1 billion, whereas
adding online wagers would
more than double the annual
revenue to about $16 billion.
Sports leagues and the National Collegiate Athletic Association had sued New Jersey to
stop its betting plans, but the
four major professional sports
leagues—the National Football
League, National Basketball
Association, Major League
Baseball and National Hockey
League—have been quietly
working to mobilize for the
day this ruling would arrive.
The NBA and MLB have positioned themselves to try for
a cut of the action from gambling activity in their sports.
The NFL intends to push for
legislation that would require
any new sports gambling operations to use its officially
sanctioned league data.
This is a reversal from the
longtime antigambling stances
the leagues took in part because they had, for a century,
been rocked periodically by
gambling-related scandals.
Ted Leonsis, owner of the
NHL’s Washington Capitals
and the NBA’s Washington
Wizards, said in an interview
Monday that there are enormous opportunities for fans,
players and media companies
to benefit from regulated wagering. “Everyone has come to
the realization that there’s so
many good things that happen
by bringing this shadow economy into the sunshine,” Mr.
Leonsis said.
No sports body may be in a
tighter spot than the NCAA,
which has consistently positioned itself against the expansion of sports betting. Now
it is preparing to change a
longstanding policy against
holding NCAA championship
events where sports betting is
legal, which could soon mean
much of the country.
In a statement, the NCAA’s
chief legal officer, Donald
Remy, said, “While we are still
reviewing the decision to understand the overall implications to college sports, we will
adjust sports wagering and
championship policies to align
with the direction from the
court.”
Ex-Lawmaker Reid
Has Cancer Surgery
Former Sen. Harry Reid (D.,
Nev.) underwent surgery to remove a tumor on his pancreas,
his family said, and will now
start chemotherapy.
His family said Monday that
doctors at the Johns Hopkins
cancer center in Baltimore spotted the tumor early and that the
“prognosis for his recovery is
good.”
Mr. Reid, 78, was the Democratic leader in the Senate for
more than a decade. He was first
elected to the House of Representatives in 1982 before winning a Senate seat in 1986. He
successfully ran to become Senate Democratic leader in 2004.
Mr. Reid stepped down as the
party’s leader in 2015 after sustaining an eye injury in an exercise accident and later that year
said he would retire from the
Senate and not seek re-election
in 2016. He was succeeded as
Democratic leader by Sen. Chuck
Schumer of New York.
—WSJ Staff
An Amedeo Modigliani painting of a nude brunette lounging
on tousled bedsheets and peering
over her shoulder sold for $157.2
million at Sotheby’s on Monday, a
record for the artist and one of a
few paintings to ever surpass
$150 million at auction.
On the heels of rival Christie’s
$833 million sale of David Rockefeller’s estate last week, Sotheby’s set out to steal some of
the spotlight with Modigliani’s
1917 “Reclining Nude” by asking
$150 million for the painting—the
highest price tag ever placed on
an artwork headed to auction.
The pressure may have backfired, in a way, because the
work’s only bidder was a prearranged investor Sotheby’s had
lined up to bid on—and win the
work—should no other takers
surface in the moment. After introducing bids at $125 million,
auctioneer Helena Newman spent
several increasingly awkward
minutes trying to stir up any interest in the Modigliani before
the anonymous, third-party guarantor called in and placed a winning bid of $139 million, or $157.2
million after Sotheby’s fees.
—Kelly Crow
MISSOURI
Prosecutor Drops Case
Against Governor
The St. Louis prosecutor who
charged Missouri Gov. Eric Greitens with invasion of privacy for
allegedly taking nude photos of a
woman after tying her up
dropped the charges Monday after a judge allowed the defense to
call the prosecutor as a witness.
The Republican governor’s lawyers accused Democratic St. Louis
Circuit Attorney Kimberly Gardner
of misconduct, alleging she allowed a lead investigator in the
case to perjure himself. The judge
granted the defense’s request to
call Ms. Gardner as a witness,
“placing her in an impossible position,” she said in a statement.
Ms. Gardner added that she is
considering calling a special prosecutor or appointing one of her assistants to proceed with the case.
A lawyer for Mr. Greitens
didn’t respond to a request for
comment. He has admitted to
having an affair with the woman
but has said it was consensual.
—Shayndi Raice
CORRECTIONS AMPLIFICATIONS
IAC/InterActiveCorp owns
81% of Match.com. A Heard on
the Street column Monday
about online dating services
incorrectly said it owns 22%.
A photo with a World News
article Saturday about U.S.-Israeli relations showed a demonstrator in Gaza and a teargas canister fired by Israeli
troops. The caption incorrectly said the demonstrator
was returning the canister.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A3
* *
U.S. NEWS
BY THOMAS M. BURTON
Thousands of stroke victims
are disabled every year because the right treatment
comes too slowly. Some
emerging technologies may
change that.
The technologies use computer algorithms to cross-reference a stroke patient’s brain
scan with a vast database of
scans from other victims, allowing a precise diagnosis in
minutes.
It can be done by less-experienced doctors in outlying
hospitals or by paramedics
with portable scanning devices
in an ambulance. The scans
and results can be quickly sent
to a specialist at a regional
stroke treatment center who
can confirm the diagnosis.
The result: Victims of
strokes—an interruption of the
brain’s blood supply that deprives brain tissue of oxygen—
can be rushed to a stroke center with the most-skilled
doctors who can remove blood
clots. That contrasts with a
too-common scenario: languishing for hours at a lessequipped hospital waiting for a
diagnosis that often comes too
late to help.
“There is no more time-sensitive treatment in all of medicine than treating the stroke
victim,” said Thomas G. Devlin,
chairman of neurology at the
University of Tennessee’s Erlanger Medical Center in Chattanooga, a top stroke-treatment center. “The new
technology has the potential
for shaving off critical minutes,
sometimes even hours, in the
diagnosis, triage and treatment
of stroke.”
Companies developing different forms of this new technology include Viz.ai Inc. of
San Francisco and Neural Analytics Inc. of Los Angeles. Both
have been testing their new
imaging at Erlanger and elsewhere. Another important new
technology, called RAPID from
IschemaView Inc. of Redwood
City, Cal., produces automated
images showing how much
brain tissue is salvageable after
a severe stroke.
At issue with the technologies are the most severe blockages in major arteries caused
by clots.
Under current protocols, patients with severe strokes are
typically rushed to the nearest
hospital, regardless of the facility’s ability to treat the mostseverely ill patients. Once
there, such patients undergo
tests and scans for a diagnosis
that often takes hours.
With the clock ticking, many
patients find their best chance
for survival and recovery is an
innovative procedure called a
thrombectomy, which allows
doctors to remove a clot to restore blood flow, according to
doctors, medical records and
journal articles.
The thrombectomy has
proven highly effective and is
transforming stroke treatment.
But many stroke patients lack
timely access to the complex
procedure.
Many hospitals don’t have
the expertise or the facilities,
leaving them with two choices:
Lose precious time transferring
a patient to a better-equipped
stroke center, or treat the patient with a clot-dissolving
drug. This drug works well for
some moderately ill stroke pa-
MELISSA GOLDEN FOR THE WALL STREET JOURNAL
New Methods
Aim to Speed
Stroke Care
The University of Tennessee’s Erlanger Medical Center is testing new technologies that could help diagnose stroke patients more quickly.
Doctors Put Faith in
Artificial Intelligence
Chris Mansi, a British neurosurgeon, helped develop the
idea for Viz.ai Inc.’s technology
after participating in a 2014 operation on a brain-injured
woman who died because it
took four hours to get her to
the right hospital.
Dr. Mansi later enrolled in
Stanford Business School where
he developed technology to
speed such patients to the right
specialist for better outcomes.
He also took a course on
venture capital for entrepreneurs, taught by former Google
chief Eric Schmidt. At the
course’s end, Dr. Mansi made a
presentation that impressed Mr.
Schmidt. His venture-capital
fund and others invested $7.5
million in what became Viz.ai,
where Dr. Mansi is CEO.
“I like the medical imaging
area, as I think AI will lead to
much better outcomes,” Mr.
Schmidt said.
The technology from Viz.ai
(the ai is for artificial intelligence) recently gained Food and
Drug Administration approval.
The company is talking to hospitals about installing its diag-
nostic software, which would let
neurologists see brain scans almost simultaneously.
A Viz.ai study of 300 patients, which prompted the FDA
approval, showed that the company’s software was able to notify a stroke neurologist on average 7.3 minutes after the
brain imaging took place. That
compared with the hours that it
can take otherwise.
The other company developing similar stroke technology,
Neural Analytics, uses ultrasound devices that would attach
to the patient’s head in the ambulance to produce images that
measure blood flow in the brain,
comparing it with a database of
thousands of such images to
quickly pinpoint the problem.
Paramedics could quickly send
the image to a stroke hospital.
Robert Hamilton, the company’s chief scientific officer,
was a Ph.D. student in bioengineering at UCLA when he and
colleagues thought of this
technology for other types of
brain injuries. They realized
that it could be used to rapidly
detect strokes caused by blood
clots. Neural Analytics’ most
recent study showed its technology detects 97% of large-artery strokes.
It is seeking FDA approval.
tients. But the therapy often
fails for thousands with large
clots blocking major arteries.
A study in the journal Circulation last year of 984 such patients showed that treatment
delays for them led to worse
outcomes if they were transferred between hospitals in-
stead of going straight to a
hospital that could pull clots
out with a thrombectomy.
Erlanger treated 1,721 patients last year with clot-based
strokes, 180 of whom got
thrombectomies. The hospital
employs a far-flung network of
helicopters and ambulances
that can rush stroke patients
from up to 150 miles away. But
like most top stroke centers,
Erlanger depends on fast referrals from other hospitals for
optimal treatment. Minutes
make all the difference.
In one case during January,
a 64-year-old stroke patient ar-
rived at another Chattanooga
hospital at 1:07 p.m. After two
brain scans, she was transferred to Erlanger at 8:05 p.m.,
too late for a thrombectomy,
Dr. Devlin said. She now resides in a nursing home, unable
to speak or use her right leg
and arm, her husband said.
Workplace Inspections Rise in Pursuit of Illegal Hirings
BY LAURA MECKLER
WASHINGTON—U.S. Immigration and Customs Enforcement has ramped up workplace inspections, increasing
audits and arrests as part of
an effort to find illegal workers and deter businesses from
hiring them, data released
Monday showed.
For most of President Donald Trump’s administration,
immigration enforcement has
focused on preventing people
from crossing into the U.S. and
then arresting and deporting
those who do. The administration said Monday it is more
aggressively going after employers.
Crackdown
Immigration and Customs Enforcement has ramped up workplace
scrutiny to verify that workers are in the U.S. legally.
0
1,000
2,000
3,000
4,000
Investigations
Audits
Arrests
FY2017 (full year)
FY2018 (through May 4)
Note: Fiscal year ends Sept. 30. Investigations begin when there is suspicion of wrongdoing
and the possibility of criminal or civil charges; audits are reviews of business records.
Source: Immigration and Customs Enforcement
THE WALL STREET JOURNAL.
During the first seven
months of the fiscal year,
which began Oct. 1, the agency
opened far more workplace investigations, initiated more
audits and made more arrests,
compared with the entire previous fiscal year, according to
ICE data.
The agency said its Home-
land Security Investigations
division, known as HSI,
opened 3,510 workplace investigations between Oct. 1 and
May 4, up from 1,716 during all
of fiscal year 2017.
Officials expect that number to reach about 5,500 by
the end of the current fiscal
year, more than triple the previous year, said Derek Benner,
the acting executive associate
director for HSI.
ICE also said it initiated
2,282 employer audits between
Oct. 1 and May 4, up from 1,360
in all of fiscal 2017. Audits involve asking employers to produce the I-9 forms that employees fill out, testifying that they
are legal to work in the U.S.
More Volcanic Fissures Open in Hawaii
BY NOUR MALAS
send boulder-size debris in all
directions near the volcano’s
crater and cover lower-lying
neighborhoods in blankets of
ash, a report from the U.S.
Geological Survey released
last week said.
In an extreme-risk zone
right around the crater, projectile-like rocks would travel
“on cannonball-like paths outwards from the vent in all directions,” the report said.
While the summit itself is
far from residential areas, the
explosions would rain ash on
communities miles downwind
and could come abruptly, the
MARIO TAMA/GETTY IMAGES
New fissures opened in the
eastern corner of Hawaii’s Big
Island over the weekend and
Monday morning as the eruption of the Kilauea volcano
more than 10 days ago continued to spew lava and threaten
neighborhoods.
A 19th fissure opened Monday in Lanipuna Gardens, the
area neighboring Leilani Estates, which was hardest hit
by quakes and lava flows, the
largest in decades from the
volcano. Residents in both
neighborhoods were ordered
to evacuate in early May
when fissures first began to
appear, emitting lava and
toxic gases.
With the ground continuing to crack in an expanding
area of the broader Puna district, and at least one giant
fissure still shooting lava, officials said unpredictable volcanic activity in the area
could go on for weeks.
Scientists
also
have
warned of another danger:
the possibility of a series of
explosions as lava withdraws
from a lake at the summit of
Kilauea. The explosions could
The latest activity from the Kilauea volcano on Hawaii’s Big Island threatened new dangers for residents.
report
said.
That
has
prompted officials to warn all
residents in the lower Puna
area, about 2,000 people, to
be ready to evacuate.
“There may be little to no
advance notice to evacuate, so
take this time to prepare,”
Hawaii’s Civil Defense Agency
said in a weekend notice.
Also over the weekend, officials closed two sections of
highways in the area and ordered all vacation rentals to
stop leasing so the emergency response can focus on
residents. It wasn’t clear
whether any tourists were
still in the area.
Brian Freeman, a resident
of Leilani Estates who lost his
home last week, said one of
the newest fissures was so
large and active that he could
see the glow from spurting
lava from about 10 miles
away, where he was staying at
the home of an acquaintance.
“It’s a pretty big one,” said
Mr. Freeman, 33 years old,
who also lost much of the
wireless-internet business he
ran out of this home. “It
seemed like everything was
calming down.”
Mr. Freeman, who is already working to rebuild his
internet business by restoring
a tower, said he is prepared
to get on the move again but
not before it is necessary.
“Until it does blow, I’m going
to stay the eternal optimist
and keep doing what I’m doing,” he said.
The Democratic administration of former President Barack Obama also expanded the
use of audits to look for employer violations, with the
number of audits peaking in
2013, at 3,127. Mr. Benner said
that ICE would ultimately like
to open as many as 15,000 audits a year, depending on
funding and other factors.
“Let’s create a culture of
compliance through the administrative audit process,” he
said. “In order to do that you
have to have a higher number
of audits conducted in a centralized way.”
Mr. Benner said he hopes to
create a centralized office to
oversee employer audits,
rather than the existing scattershot approach via regional
offices.
The agency also said it has
made 1,204 arrests during the
first part of fiscal 2018, up
from 311 during all of fiscal
2017.
ICE typically faces less criticism when it targets employers, though some have said the
raids are another way of going
after illegal workers. The state
of California has barred employers from allowing federal
immigration agents into private workspaces without a judicial warrant and requires
employers to notify employees
before they turn over records
to federal agents.
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A4 | Tuesday, May 15, 2018
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THE WALL STREET JOURNAL.
U.S. NEWS
Kim’s Human-Rights Abuses Challenge Talks
T
Nobody said national security policy was simple or
easy. For proof, look at the
current state of U.S. views on
North Korea and Iran.
At the moment, President
Donald Trump has nice
things to say about North Korea, which has
built a nuclear
weapon, has
threatened to
use it against
the U.S., and
has a long record of breaking international
agreements.
Meanwhile, Mr. Trump has
brought the full fury of
American diplomatic and economic pressure down upon
Iran, which has no nuclear
weapon, has never threatened to use one against the
U.S., and has, by all accounts,
been abiding by the international agreement it
reached to curb its nuclear
program.
Mr. Trump is seeking a nuclear deal with North Korea.
He has just abandoned one
with Iran.
Why the difference? It
seems illogical.
Obviously, Mr. Trump sees
the Iran nuclear deal as fatally flawed and presumes he
can get a better one with
North Korea.
But beyond that, he is trying to encourage what he
sees as a potentially significant change in attitude from
North Korea, something he
JIM BOURG/REUTERS
CAPITAL JOURNAL
By Gerald F. Seib
Three Americans released by North Korea joined President Donald Trump and Secretary of State Mike Pompeo in Maryland last week.
apparently doesn’t see
emerging from Iran.
For now, both Washington
and Pyongyang are trying to
set the stage for a productive
summit meeting between Mr.
Trump and North Korean
leader Kim Jong Un next
month, which in itself is a
hopeful sign.
Yet there are also dangers.
One is that the Iranians—and
others—may conclude that
you get nicer treatment after
you succeed in developing a
nuclear weapon than you do
along the way.
Another is that the Trump
team could lose sight of the
kind of regime it is dealing
with in Pyongyang. Like Iran,
it has caused ample problems
beyond its borders: abducting
Japanese citizens, attacking a
South Korean ship, shipping
its weapons technology
abroad.
A
lso like Iran, North Korea has a nasty habit
of abducting Americans. It released three of
them last week, two of whom
had been seized since Mr.
Trump became president. Mr.
Trump thanked North Korea’s
Mr. Kim, saying he “was really excellent to these three
incredible people.” But the
president also paused to remember a fourth American,
college student Otto Warmbier, who spent 18 months in a
North Korean prison and returned to the U.S. on the
verge of death.
North Korea’s treatment of
its own citizens is far worse
than Iran’s. The State Department’s 2017 report on human
rights in North Korea contains this remarkable summary: “The people of North
Korea faced egregious human
rights violations by the government in nearly all reporting categories including: extrajudicial killings;
disappearances; arbitrary arrests and detentions; torture;
political prison camps in
which conditions were often
harsh, life threatening, and
included forced and compulsory labor; unfair trials; rigid
controls over many aspects
of citizen’s lives, including arbitrary interference with privacy, family, home, and corre-
spondence, and denial of the
freedoms of speech, press,
assembly, association, religion, and movement; denial
of the ability to choose their
government; coerced abortion; trafficking in persons;
severe restrictions on worker
rights, including denial of the
right to organize independent
unions and domestic forced
labor through mass mobilizations and as a part of the reeducation system.”
The report also cites cases
in which the government “reportedly executed individuals
for sleeping during patriotic
events,” and said mothers
held in detention “were in
some cases reportedly forced
to watch the infanticide of
their newborn infants.”
he North Korean government maintains six
different types of detention facilities, including
camps for political prisoners. Christians reportedly receive harsher punishment if
they reveal their faith.
Reports of torture persist,
including cases of electric
shock and confinement in
“punishment cells” too small
to allow standing upright or
sitting down.
This is relevant to nuclear
talks because dangers posed
by governments arise not
just from their weapons but
also from the character of
the regime that holds the
weapons. At least twice before, in 1994 and 2005,
North Korea has promised to
freeze or abandon its nuclear-weapons program.
“They have a perfect track
record over 25 years of violating every undertaking
they have taken,” says Michael Green, a former Asia
expert at both the National
Security Council and the
Pentagon.
The Obama administration
thought engagement with
Iran was a reasonable course
to follow in trying to change
its behavior. The Trump administration has concluded
the same about North Korea.
In each case, that’s a reasonable and rational
course—though in each case
history suggests skepticism
is required, as is solid verification of compliance with
any deals.
Secretary of State Mike
Pompeo says the administration embarks on the journey
into diplomacy with North
Korea with “eyes wide
open.” That’s good. Also
good would be a few words
from the president on how
North Korea treats its own
people.
BY REID J. EPSTEIN
AND JANET HOOK
Pennsylvania, with the largest all-male congressional delegation, could nominate as
many as six Democratic
women in districts likely to be
competitive in November.
All 18 of Pennsylvania’s
members of Congress and both
its senators are men. So are all
five statewide elected government officials.
The state, one of four to
hold primary contests on
Tuesday, will serve as a test of
whether the wave of Democratic women running can dilute one of the country’s mostdurable male bastions.
“It’s a breaking of the old
style of politics where it was
just perceived that it was a
man’s world,” said state Rep.
Madeleine Dean, the front-runner in a Democratic primary
for an open congressional seat
in Philadelphia’s Montgomery
County suburbs.
All told, Pennsylvania Democrats have 23 women running
for House seats. Republicans
have just one—Pearl Kim, a
former state prosecutor.
Emily’s List, the influential
political group that backs
Democratic women candidates
who support abortion rights,
has endorsed five women in
Pennsylvania House races.
Most face stiff competition
from male candidates, both in
the primaries and later in November showdowns with the
Republicans.
Pennsylvania has elected
only seven women to Congress
in its history, and three followed deceased husbands into
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office, according to the Pennsylvania Center for Women &
Politics at Chatham University.
“It’s shocking to me,” said
Chrissy Houlahan, an Air Force
veteran running unopposed for
the Democratic nomination in
a district based in Chester
County, in the suburbs southwest of Philadelphia. “I think
it’s shocking to most Pennsylvanians as well.”
Terry Madonna, a Franklin
& Marshall College professor
who is an expert on Pennsylvania politics, said its male-dominated history is rooted in the
state’s political patronage and
high-paying state legislative
posts. “We have a problem
with men dominating the political structure of our state,
and that’s been a tough tradition to break,” he said.
Pennsylvania’s races are be-
CBS
Continued from Page One
the merger wouldn’t be in the
best interests of all CBS investors, according to the suit.
CBS said it is seeking a
temporary restraining order to
prevent Ms. Redstone, president of National Amusements
and vice chairman of both CBS
and Viacom, from replacing
CBS board members and forcing through a merger.
In recent weeks, merger
talks have come to a standstill
as Mr. Moonves and Ms. Redstone clashed over Ms. Redstone’s insistence that Viacom
CEO Bob Bakish be given a
significant role in the merged
company. “It was getting to a
place where it was either do
the deal or start to replace the
board,” said one person close
to Ms. Redstone.
The lawsuit took Ms. Redstone by surprise, according to
a person familiar with her
thinking. National Amusements
called both the suit and the attempt to wrest voting control
from the holding company
“outrageous.” It contested CBS’s
characterization of events.
National Amusements said
it “had absolutely no intention
of replacing the CBS board or
forcing a deal that was not
supported by both companies.”
The restraining order would
buy time for CBS’s board to consider a proposed dividend that
would issue new Class A voting
shares to all stockholders, reducing National Amusements’
voting power to 17% from al-
CHRIS KNIGHT/ASSOCIATED PRESS
Women Target Pennsylvania’s All-Male House Seats
Democratic State Rep. Madeleine Dean is running for Congress.
ing contested under new maps
instituted by the state’s Supreme Court. Due to retirements, resignations and congressmen running against each
other for the same seat, seven
of the state’s 18 districts have
no incumbents.
Democrats, who need to flip
23 Republican seats to win
control of the House, could net
as many as six from Pennsylvania alone. The Cook Political
Report rates five GOP-held
most 80%. The dividend
wouldn’t reduce any shareholder’s economic interest, including that of National Amusements, which holds about a 10%
equity stake through voting and
nonvoting shares. CBS’s board is
set to meet Thursday, ahead of
the company’s Friday annual
meeting. A hearing on the order
is expected Wednesday.
The special dividend provision was inserted in the two
companies’ charters in 2005,
when then-Chairman Sumner
Redstone decided to split CBS
from Viacom. Mr. Redstone
was concerned about any appearance that voting shareholders at the companies were
favored over nonvoting shareholders, because of the potential drag that could create on
the stock prices, according to
people familiar with the matter. He wasn’t concerned about
the threat the provision posed
to his voting control because
he knew that, at any time, he
could overhaul either board
before it voted for such a dividend, the people said.
Mr. Redstone is still CEO of
National Amusements but no
longer sits on the boards of CBS
and Viacom. The 94-year-old is
in ill health and no longer able
to speak. His lawyer didn’t respond to requests for comment.
CBS was aware of the charter provision for some time
but only in recent weeks decided to use it to attempt to
thwart Ms. Redstone’s plans to
re-merge the company with
Viacom, a person familiar with
the company’s thinking said.
A National Amusements
spokeswoman said the com-
pany “strongly disagrees with
CBS’s interpretation of this
provision.”
Even with the provision,
CBS could face a high legal
hurdle as courts have typically
been reluctant to allow a
board to “torpedo controlling
ownership” except in “really
compelling circumstances,”
said Lawrence Hamermesh, a
professor of corporate and
business law at Widener University Delaware Law School.
If CBS fails in its legal pursuit and reduction of National
Amusements’ control, Ms. Redstone will still have the power
to overhaul the company’s
The network’s
maneuver significantly
dilutes the Redstones’
voting power.
board and replace management, including Mr. Moonves.
“CBS has committed itself
to a path that is a lot more binary. If management’s chosen
path is successful, CBS’s strategic options would open up considerably,” Barclays analysts
wrote in a note Monday. “However, if CBS loses the case, the
deal would more likely happen
on Viacom’s terms, and Viacom
management would likely gain
control of CBS.”
The five independent directors on the special committee,
who are listed as plaintiffs on
the lawsuit along with CBS
Corp., are Bruce S. Gordon,
Pennsylvania House districts
as toss-ups, leaning or likely to
be won by Democrats. Two additional GOP-held seats are
considered likely to be held by
Republicans but competitive
for Democrats.
Ms. Dean’s three opponents
include Joe Hoeffel, who
served three terms in Congress
before leaving office to mount
a failed Senate campaign in
2004. Mr. Hoeffel also ran for
governor in 2010, but placed
fourth in that year’s Democratic primary.
The winner will face Republican Dan David in a newly
drawn district Hillary Clinton
would have carried by 20 percentage points in 2016.
“Constituents here are excited about finally having
some women in the delegation,” Ms. Dean said.
Gary L. Countryman, Charles K.
Gifford, Linda M. Griego and
Martha L. Minow.
If the stock dividend is approved, these directors said in
court documents, they are prepared to step down from the
board and not stand for reelection, allowing public
shareholders of CBS to elect
the board of their choice. The
dividend wouldn’t be effective
until the court has ruled.
CBS shares rose 2.2% Monday, while Viacom shares fell
4.9%.
The CBS suit accuses Ms.
Redstone of interfering with
governance at CBS and putting
a lawyer who represents the
Redstones on its board.
The court filing also says
Ms. Redstone in the past year
told the CEO of a potential acquirer of CBS to not make an
offer to the board, which the
board should have been able to
evaluate and use as leverage in
other negotiations. Verizon
Communications Inc. was the
interested party, according to a
person familiar with the matter.
In response to the suit, National Amusements accused
CBS of retaliating against Ms.
Redstone for her complaints of
“bullying and intimidation” by a
CBS board member dating back
to 2016. Ms. Redstone has discussed her concerns with CBS
over many months, and there
was a provisional agreement
that the director would either
not be part of the merged company or, in the event of no deal,
be removed from CBS’s board,
according to a person familiar
with the matter. CBS declined
to comment on the accusation.
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A5
* *
U.S. NEWS
Cities Recycle Their Amazon Proposals
BY KEIKO MORRIS
AND LAURA STEVENS
Some U.S. cities are learning
something this year from Amazon: how to sell themselves.
Many of the 20 cities shortlisted as sites for the retail giant’s second headquarters are
using the multimedia presentations they created for Amazon.com Inc.’s application to
pitch to other companies.
“We already have seen businesses that have expressed interest in Philadelphia and have
told us they were driven specifically by what they saw in
our pitch to Amazon,” says
Sylvie Gallier Howard, Philadelphia’s first deputy commerce director.
Amazon’s request for proposals solicited a host of information, from the size of the
city’s tech talent pool to its
airport and connections to Seattle. While tailored in part to
Amazon’s needs, the proposals
highlighted aspects including
quality of life, housing availability and cost, transportation
options and other qualities
CHINA
Continued from Page One
Steven Mnuchin, who has been
leading discussions recently
with Chinese officials in Washington, has been the key player
in the ZTE deal discussions, said people involved in
U.S. talks with China.
Commerce Secretary Wilbur
Ross said Monday that he is
considering alternative punishments for ZTE, potentially
opening the door to a reprieve
for the telecom company. Mr.
Ross said the Commerce Department would consider the
question of easing ZTE penalties
“very, very promptly.”
Commerce Secretary
Wilbur Ross is
considering alternative
punishments for ZTE.
White House deputy press
secretary Raj Shah said: “The
president has asked Secretary
Ross to look into it consistent
with applicable laws and regulations.” He added, “It’s been
brought up at a number of levels as part of bilateral talks on a
number of issues.”
Futures for soybeans and
some other agricultural commodities bounced after The
Wall Street Journal first reported Monday that U.S. and
Chinese officials were working
on a deal. July-dated soybean
futures rose 1.5% to $10.1775 a
bushel at the Chicago Board of
Trade on Monday.
Under the deal being discussed, the U.S. would relax last
that could prove attractive to
a range of employers.
Last fall, the founder and
chief executive at Elm Partners
were drafting a headquarters
list of their own, as they
planned to move the small algorithmic investment firm from
London to the U.S. The
founder’s children would soon
all be in the U.S. with his youngest hoping to attend college in
Philadelphia, said Chief Executive James White. Philadelphia
was high on their list, but they
didn’t know the city well and
were considering more familiar
terrain in big cities such as New
York, Los Angeles and Boston.
Then, a friend sent a link to
the video Philadelphia put together as part of its Amazon
pitch.
“The video just resonated
with us really well,” Mr. White
said. The piece highlighted
Philadelphia’s entrepreneurial
community and its burgeoning
food scene. It helped push the
city to the top of their list, and
the company began its move to
Philadelphia in January.
Toronto Global, the regional
organization that coordinated
and released the area’s Amazon
bid online, has counted more
than 15,000 downloads of its
bid as of last month. The group
refers companies to the online
bid, said spokeswoman Julia
month’s order banning American companies from selling components to ZTE, which has long
been viewed as a Chinese national champion for its effort to
take a global lead in establishing
5G mobile internet networks.
That Commerce Department ruling, based on allegations that
ZTE didn’t comply with a settlement over illicit sales to Iran,
would cripple not only the company itself but also other statecontrolled Chinese firms including China’s three large telecom
carriers, Beijing officials have
said. Commerce said last month
that it had agreed to give ZTE a
chance to present more evidence
in the case.
In return for the potential relief on ZTE, the people say,
China would agree to hold back
tariffs on a variety of U.S. agricultural products it announced
in early April as retaliation for
U.S. tariffs on Chinese steel and
aluminum exports.
China would also ease some
nontariff restrictions on American farm products as part of the
potential pact, according to the
people. For instance, since late
last year, China has tightened
quality testing for U.S. soybeans, resulting in the crop getting held at Chinese ports.
The Trump administration
worries that a backlash among
U.S. farmers to tariffs could endanger Republican efforts to
keep control of the House and
Senate in midterm elections.
A deal would be a kind of
confidence-building exercise as
China’s chief economic envoy,
Liu He, is expected to arrive in
Washington on Tuesday for
talks through the end of the
week. The two sides hope to put
together a preliminary deal resolving their trade fights, which
have roiled markets.
After Mr. Trump’s tweet on
Sakas. When Toronto Global
has reached out to some prospective companies, it has
learned firms already have
seen the online book and
pulled information from it.
The Ontario Investment Office took copies of the proposal
to the Mobile World Congress
in Barcelona, a mobile industry
conference and exhibition. To-
ronto Global’s team takes data
from the book and customizes
it for other prospective companies, Ms. Sakas said.
There is a risk, of course,
that cities and states overspend in offering incentives to
woo companies. While companies promise jobs and investments, those don’t always materialize as expected.
Places including Philadelphia, Toronto, Indianapolis
and Newark, N.J., have received an uptick of inquiries
from companies, some citing
the digital brochures created
for the Amazon bid, officials
in the cities said.
Newark has received attention both for unexpectedly
making the shortlist and for its
eye-popping $7 billion package
of state and city incentives.
Almost 50 companies and
other groups in Newark volunteered staff and expertise to
help with the city’s proposal.
Calls from companies looking
for commercial space as well
as requests for information
about real-estate development
have increased significantly
since Newark made the shortlist in January, city officials
said.
Inquiries from companies,
real-estate developers and industry organizations looking
for a conference and tradeshow destination also spiked,
said Aisha Glover, chief executive officer of Newark Community Economic Development
Corporation.
“We’ve had to prove ourselves for quite some time,”
Ms. Glover said. “The reason
why this is our turning point is
because being shortlisted has
cosigned the city and everything we have been saying.”
In Philadelphia, city development officials said they are
working on a new version of
the website that will widen its
target from Amazon to a
broader array of businesses
and organizations—a process
they call “deAmazonification.”
—Shibani Mahtani
contributed to this article.
Sunday, U.S. investment firm
Rangeley Capital noticed a
change in Chinese regulators’ attitude about the proposed
merger between Qualcomm and
NXP Semiconductors. Chinese
regulators previously had held
up approval of the deal in response to growing trade tensions, including the U.S. action
against ZTE.
“All of a sudden it was a
tweet the president put out on
ZTE,” said Rangeley partner
Chris DeMuth Jr. “And then [the
Chinese regulator] started up
the review again.” Rangeley is
an investor in NXP.
Disputes between the world’s
two largest economies include
U.S. tariffs on Chinese steel and
aluminum exports; U.S. allega-
tions that China forces American companies in China to
transfer technology to Chinese
partners; and U.S. accusations
that ZTE conducted illicit sales
to North Korea and Iran.
More broadly, the U.S. wants
China to reduce the $375 billion U.S. trade deficit in goods
with China and increase imports of U.S. products.
The negotiations are complicated by mistrust on both
sides. The U.S. wants to make
sure that any concessions the
Chinese make can be verified
and aren’t followed by new
barriers that disadvantage U.S.
companies. The Chinese want
to be certain that a settlement
with the U.S. won’t be followed
in a year or two by another
broad-based attack on Chinese
economic practices.
One big change has been the
prospect of a deal between the
U.S. and North Korea to eliminate North Korea’s nuclear
weapons. China’s aid is crucial
for that deal to be successful.
Complicating matters, the
U.S. side is bitterly divided between Mr. Mnuchin and others
in the administration. U.S. Trade
Representative Robert Lighthizer and White House trade adviser Peter Navarro want a
tougher U.S. line against China
and deep changes in Chinese
practices, including the elimination of subsidies that help Chinese companies compete internationally.
Forcing
those
changes could require the U.S. to
go through with threats of tariffs on as much as $150 billion of
Chinese imports, moves that
would disrupt the relationship
and could sink markets.
The unfolding deal is already kicking up criticism
from trade allies of the administration. “We are giving up on
punishing ZTE for the Chinese
restoring the trade status
quo,” said American Enterprise
Institute China scholar Derek
Scissors, a China critic.
Mr. Scissors, who has consulted with the Trump administration on China policy said, the
prospective deal “shows we have
nothing like the resolve necessary to take on the Chinese.”
—John D. McKinnon
contributed to this article.
CITY OF PHILADELPHIA
Many on the shortlist
point to presentations
they already made to
draw other companies
In Philadelphia, a chalkboard was set up for residents to write what they love about the city.
ADVERTISEMENT
INDONESIA SIMPLIFIES INCENTIVES FOR FOREIGN INVESTMENT
Badan Koordinasi Penanaman Modal (BKPM, the Investment Coordinating Board of the Republic of Indonesia) is celebrating its
45th anniversary. Chairman Thomas Lembong is optimistic that 2018 will be another successful year for the investment board.
Mr. Lembong has good reason to be optimistic, as the BKPM is going ahead with two important benefits for overseas investors
this month.
MAXIMIZING TAX HOLIDAYS
The government has introduced revisions to its tax holiday incentives to simplify the process and allow new investors to fully utilize the
fiscal facility. Investors will know upfront the exact amount of tax holiday they can enjoy when they submit their investment plans.
“The level of tax holiday has also been clarified – previously ranging between
10 and 100 percent, all qualifying investments now receive a 100 percent tax
cut during the approved length of tax holiday, and a 50% percent cut in the
following two years”.
The length of tax holiday has been increased. New investors now receive tax
holidays from 5 to 20 years.
Mr. Lembong said that the introduction of the new incentives will create a
“wow effect” for foreign enterprises.
Millions of American users
of smartphones made by ZTE
Corp. are already feeling the
fallout from the U.S. Commerce
Department’s blacklisting of the
Chinese phone maker: They’re
unable to update Google’s Android operating system.
Last month’s wide-ranging
order by the U.S. Commerce
Department prevents American
companies from selling components and software to ZTE, the
fourth-largest vendor of mobile
phones in the U.S.
That has led Google to halt
updates to ZTE phones, leaving
users cut off from security
patches, technical support and
other functions provided by the
Android operating system used
on ZTE’s smartphones.
The lapse could leave some
consumers with inoperable devices, according to a person familiar with the matter.
The Shenzhen-based company has sold nearly 25 million
smartphones in the U.S. since
the start of last year, according
to Canalys, a research firm.
Some of those customers
have taken to social media to
vent frustration over the inability and lament that they may
have to dump their ZTE models and switch to other cellphone brands.
The sales ban has been
crippling to ZTE, which has
halted assembly lines and shut
down major business operations, unable to get crucial
parts for its mobile phones.
Further clouding matters,
ZTE and its suppliers have received little communication or
guidance from the Commerce
Department about how to
properly adhere to the order
since it was handed down in
mid-April, according to a person
familiar with the matter.
A Commerce Department
spokesman didn’t respond to a
request for comment.
Under its compliance with
the Commerce Department order, Google has ceased providing technical support to ZTE,
and has stopped providing ZTE
with updates and security
patches to its Android software, according to a person familiar with the matter.
Limited access to Android
security fixes means “the
safety of the users’ personal
data could be vulnerable, and
they can’t experience the latest features introduced to Android,” said Mo Jia, an analyst
at Canalys.
—Dan Strumpf
and Natasha Khan
Amount of Investment
Tax Holiday
IDR 500 billion – less than IDR 1 trillion
IDR 1 trillion – less than IDR 5 trillion
IDR 1 trillion – less than IDR 15 trillion
IDR 15 trillion – less than IDR 30 trillion
IDR 30 trillion or more
5 years
7 years
10 years
15 years
20 years
Table 1. Changes to Tax Holiday Regulations for New Investors
Conditions
Old Tax Holiday System
New Tax Holiday System
Percentage of reduction
10-100%
5-15 years, extended to 20 years at
discretion of Ministry of Finance
100% (single rate)
5-20 years, dependent on
investment value
Not regulated
8 Pioneer Industries
50% for 2 years
17 Pioneer Industries
Period
ZTE Blacklist Hits
U.S. Phone Users
Table 2. Investment Thresholds for Tax Holiday Scheme
Transition
Industries
In addition to the tax holiday extensions, the BKPM has clarified and broadened the number of ‘pioneer’ industries which qualify for the tax
incentives, up from 8 to 17.
INTRODUCING THE ONELINE SINGLE SUBMISSION
In line with the country’s desire to make life easier for foreign investors,
BKPM is introducing an Online Single Submission (OSS) to integrate
licensing between central and regional governments. Instead of having
to submit multiple plans and forms for each location, companies now
only need work with one system.
Through the Online Single Submission, all licensing data and business
requirements will be integrated into one process – saving substantial
time and effort.
REALIZING INDONESIA’S 2045 VISION
In 2045, Indonesia will mark its 100th year of independence, by which
time it expects to have moved from an emerging economy to developed
economy status. According to the World Bank, Indonesia is already
amongst the world’s top 10 reformers. Last year, the nation ranked 72nd
in the global ease of doing business index, jumping 19 positions from its
previous ranking.
In 2017, investment reached IDR 692.8 trillion, growing 13.1 percent
over 2016. Indonesia aims to achieve IDR 765 trillion investment in 2018,
another 10-14 percent increase.
Speaking at the American Chamber of Commerce in Indonesia last year,
Mr. Lembong emphasized the impact that reforms have on FDI.
“Removing restrictions from investment sectors make a huge difference,”
he said. “Maintaining the momentum and continuing to roll out
meaningful reforms that keep the Indonesia story fresh, engaging and
exciting is key.”
Table 3. Qualifying Pioneer Industries
1. Upstream iron-steel and non iron-steel.
2. Petroleum purification and/or refinement.
3. Petrochemicals based on petroleum, natural gas
or coal.
4. Non-organic basic chemicals.
5. Organic basic chemicals derived from agriculture,
plantation or forestry.
6. Raw material industry for pharmaceuticals.
7. Semi-conductor industry and other computer
main components.
8. Components for communication devices industry.
9. Components for irradiation, electromedical or
electrotherapy medical devices.
10. Industrial machinery components,such as electric
motors and internal combustion motors.
11. Machine components for pistons, cylinder head, or
cylinder block integrated with four-wheel vehicles.
12. Robotic components for manufacturing.
13. Shipbuilding components.
14. Aeroplane components, such as engines,
propellers, rotors or structural components.
15. Railway components, such as engines or transmissions.
16. Power plant machineery, incluiding engines for
waste power plant.
17. Infrastructure for the economy.
For more information on BKPM and investing in Indonesia, please visit our websites:
www.bkpm.go.id | www.investindonesia.go.id
The Wall Street Journal news organization was not involved in the creation of this content.
.
A6 | Tuesday, May 15, 2018
* ***
THE WALL STREET JOURNAL.
FROM PAGE ONE
Continued from Page One
of tension over President Donald Trump’s decision to move
the U.S. Embassy to Jerusalem
from Tel Aviv, where it has resided since soon after Israel’s
1948 founding. It coincided with
a host of anniversaries that
Hamas has used to rally support
for its cause. The U.S. Embassy
opening in Jerusalem—in a city
that Palestinians also claim for
a future capital—offered a focal
point for their anger.
An Israel military spokesman, Brig. Gen. Ronen Manelis,
called the protests in Gaza “unprecedented in size and violence.” He said at least 40,000
protesters gathered at 12 different points along the border and
at each point, attempts were
made to breach the border, all
to no avail.
Gen. Manelis said there were
at least three attempts by
groups of gunmen, one of which
attempted to plant a bomb at
the fence, to breach the border.
He said other violent tactics
used by protesters included
throwing firebombs and rocks,
rolling burning tires into the
fence and sending flaming kites
into Israeli territory.
In the run-up to the U.S. Embassy opening, Hamas has
helped organize weekly protests
and threatened to break
through the fence separating
the strip from Israel. Fearing a
mass infiltration of Israeli territory, Israel has responded with
live fire, killing about 100 people since March 30.
Palestinian and Arab leaders
had warned the U.S. against
moving the embassy and said it
would hurt peace efforts. “It
has raised the volume of antiAmerican rhetoric,” said Prince
Turki al-Faisal, a senior member of the Saudi royal family, in
remarks to CNBC. “It’s not a
step that will bring peace to
Palestine or to the Middle East.”
The Palestinian deaths have
ratcheted up the region’s already-high tensions, in part
triggered by the Trump administration’s decision last week to
pull the U.S. out of a multilateral nuclear accord with Iran.
Ali Larijani, the speaker of
Iran’s parliament, on Monday
MOHAMMED ABED/AGENCE FRANCE-PRESSE/GETTY IMAGES
ISRAEL
Palestinians ran for cover from tear gas amid protests near Israel’s border over the opening of the new U.S. Embassy in Jerusalem.
Deadly Move
Tel Aviv
As the U.S. opened its new
WEST BANK
embassy in Jerusalem
Monday, about 50 miles
away more than 50
Palestinian protesters
Green Line
were killed in clashes
Ashdod (pre-1967 border) Jerusalem
with the Israeli
military in the
New U.S.
Gaza Strip.
ISRAEL
Embassy
location
Hebron
Gaza
GAZA
STRIP
Clashes
la
between
w
al
n an
Palestinians
and
ae military
l y
Israeli
d
alongg the border
fence
Be’er Sheva
Source: Peace Now (Green Line, Jerusalem boundary)
called Mr. Trump “feebleminded” and incapable of longterm decision-making.
“The U.S. and the Zionist regime shouldn’t assume that
their actions regarding the Iran
nuclear issue and Palestine will
remain unanswered,” he said,
according to the official Islamic
Republic News Agency. He
didn’t elaborate on what that
response would be.
Israel accused Iran of firing
rockets at the Israeli-controlled
10 miles
10 km
THE WALL STREET JOURNAL.
Golan Heights and in response
mounted a wave of airstrikes
against Iranian targets in Syria,
putting the two sides on the
brink of direct conflict.
Israel is working to thwart
Iran’s military buildup inside
Syria on its southern border
and has targeted Iranian positions with a series of missile
strikes. Tensions are also rising
between Israel and Hezbollah,
an Iran-backed Lebanese militia
that has also become a political
Allies Criticize U.S.
For Embassy Shift,
Call for Restraint
WASHINGTON—Washington’s allies in Europe and the
Middle East criticized the U.S.
for opening a new embassy in
Jerusalem on Monday and called
on Israel to restrain its forces
after dozens of Palestinian protesters were killed in clashes.
The episode marked the latest point of discord to emerge
between the U.S. and many of
its major partners after Washington withdrew from the nuclear deal with Iran last week.
The Trump administration
defended and celebrated its
decision to move the embassy
force in neighboring Lebanon.
Among many Israelis, the
U.S. Embassy move was seen as
a welcome triumph amid the regional trouble. For years, Israeli
leaders have lobbied the international community to move
embassies to the contested city.
Israel’s parliament, the Knesset,
and much of its government are
in Jerusalem. Guatemala and
Paraguay said they would also
open embassies in Jerusalem.
The international community
and declined to criticize Israel’s
use of force, instead blaming
the Palestinian group Hamas
for the bloodshed.
Israeli officials said they
were defending their borders
from Hamas, which they say is
using the protests as a pretext
for an attack. Israel said some
of the protesters were trying to
breach the border fence and
throwing explosives.
The political and militant
group helped organize the protests, which began several
weeks ago to call for the right
to return to what is now Israel.
The strongest criticism
came from the U.K. and France.
Both condemned the violence
and expressed their opposition
to the embassy opening.
—Jessica Donati
doesn’t recognize Jerusalem as
Israel’s capital, but U.S. officials
have said doing so reflects the
reality on the ground. Mr.
Trump, whose team is working
on an Israeli-Palestinian peace
plan, had said the move would
take the divisive issue of Jerusalem “off the table.”
Congress in 1995 passed a
law stating that the U.S. Embassy should be based in Jerusalem. But a clause in the legislation allowed the president to
delay the move every six
months by signing a waiver.
The embassy relocation drew
a mixed response from members of Congress, although
many lawmakers from both political parties lauded the move.
Senate Minority Leader
Chuck Schumer (D., N.Y.)
called it “long overdue.” Sen.
Bob Menendez (D., N.J.) said
that while he supported the
move, the Trump administration also should press for a solution allowing Israelis and
Palestinians to live peacefully
in two states.
“The unequivocal recognition of Jerusalem as Israel’s
capital comes after presidents
in both parties stalled our embassy’s rightful relocation to
Jerusalem from Tel Aviv,” said
Sen. Marco Rubio (R., Fla.).
“So I truly appreciate the
Trump administration for... finally moving our embassy.”
The use of deadly force
against protesters drew criticism from lawmakers, with Sen.
Dianne Feinstein (D., Calif.) calling it “heartbreaking.”
The Hamas-orchestrated protests in Gaza ensured that Jerusalem’s sovereignty will remain
central to the issues that need
to be addressed in any Middle
East peace plan, said Aaron David Miller, a former U.S. peace
negotiator.
“Jerusalem is not off the table,” he said. “For any prospects
or hopes for a peace process,”
he added, “it is the table now.”
The protests presented a jarring backdrop for a day Washington hoped would laud tight
Israeli-U.S. ties.
A U.S. delegation—including Mr. Trump’s son-in-law,
Jared Kushner, his daughter
Ivanka Trump and Treasury
Secretary Steven Mnuchin—attended the embassy opening
ceremony Monday afternoon
at the new site.
“As we have seen from the
protests of the past month and
even today, those provoking violence are part of the problem
and not part of the solution,”
Mr. Kushner said.
—Abu Bakr Bashir in Gaza,
Dov Lieber in Jerusalem,
Nancy A. Youssef in
Washington, Asa Fitch in
Dubai and Margherita
Stancati in Beirut
contributed to this article.
WSJ TALK / E XPERIENCE / OFFER / GE TAWAY
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.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A7
NY
* *
WORLD NEWS
Jakarta sees Islamic
State’s hand in family
attacks on churches
and police premises
BY ANITA RACHMAN
AND BEN OTTO
SURABAYA, Indonesia—Militants inspired by Islamic
State appear to be waging a
new campaign of terror in Indonesia, as a family of suicide
bombers wounded 10 people in
an attack on a police headquarters in the country’s second-largest city a day after
another family killed seven in
an attack on churches.
The attacks, which included
the use of children as suicide
bombers, were spurred by recent arrests of leaders of proIslamic State cells and calls
from the Syria-based terrorist
group to wage attacks worldwide, Indonesia’s police chief
said Monday.
“A possible motive in the
attacks was instructions from
ISIS central,” the chief, Tito
Karnavian, told reporters. He
noted that the terror group,
having lost ground to U.S.-led
forces in the Middle East, had
ordered its followers to attack
wherever they could, citing a
fatal stabbing by a Muslim ex-
tremist in Paris over the weekend.
Indonesia, the world’s
most-populous Muslim-majority nation, has long faced a
terrorism threat but has had
considerable success in quelling Islamist violence since the
early 2000s. Sunday’s coordinated attacks, however, were
the deadliest in almost a decade, fueling concerns that extremists may be regrouping.
“The fact that they used
children, in three separate
bombings, shows an unbelievable degree of callousness, but
also ideological indoctrination,” said Zachary Abuza, a
professor at the National War
College in Washington who
studies Southeast Asian security.
“The degree of coordination
and sophistication we have
seen in these attacks is not
something we’ve seen in
years,” he said. Islamic State
“may be down, but they are
not out.”
The attacks follow an Indonesian crackdown on senior
radical leaders. The country’s
de facto leader of Islamic
State supporters, Aman Abdurrahman, is on trial for inciting followers to commit
acts of terror, while his heir
presumptive, Zainal Anshori,
was sentenced in February to
DIDIK SUHARTONO/ANTARA FOTO/REUTERS
New Wave of Bombings Rocks Indonesia
Police stood guard following attacks one expert said showed a degree of ideological indoctrination.
seven years in prison for
smuggling guns.
In recent days, police also
arrested other suspected militants who were allegedly planning to attack a detention center for terrorist inmates in
Jakarta, the capital. Inmates
there killed five police officers
in a revolt last week.
“They were angry and
wanted to retaliate,” Mr. Karnavian said of the perpetrators
of recent attacks. “There’s international and local dynamics” at play, he added.
Mr. Karnavian was speaking
after three families in this city
on the main island of Java detonated bombs that left most
of them dead.
On Sunday, a family of six,
including children aged 9 to
18, killed at least seven people
in suicide bombings at three
churches in the city. It was the
first use of children in a terrorist attack in Indonesia.
Islamic State claimed responsibility for that attack,
and police said the children’s
father had been the leader of a
pro-Islamic State cell in Sura-
baya. Mr. Karnavian corrected
an earlier statement that the
family had traveled to the
Middle East in support of Islamic State, saying instead
that the father had been inspired by Indonesian radicals
returning from the region.
On Monday, another family
of suicide bombers drove two
motorcycles to Surabaya’s police headquarters and detonated bombs that injured 10
people. A father, mother and
two boys died in the attack,
while an 8-year-old daughter
survived, police said.
Meanwhile, police shot
dead one man overnight at an
apartment in a town near Surabaya after a bomb in his
possession exploded and killed
his wife and daughter. A police
spokesman said officers shot
the man when they encountered him holding a switch
connected to a bomb. Mr. Karnavian said explosives found
on the premises were similar
to pipe bombs used in the
church attacks.
Sidney Jones, director of
the Jakarta-based Institute for
Policy Analysis of Conflict,
said the attacks in recent days
were the most coordinated in
Indonesia since Christmas Eve
2000, when militants struck
churches and pastors in numerous cities.
BY YANTOULTRA NGUI
TOM WRIGHT
AND
PUTRAJAYA, Malaysia—
Prime Minister Mahathir Mohamad increased pressure on
the attorney general to step
down, while Malaysia’s antigraft chief resigned, as the
new government prepared to
relaunch investigations into financial scandals surrounding
former leader Najib Razak.
On his first full day in office, Mr. Mahathir indicated he
would pursue Mr. Najib and
anyone else implicated in an
embezzlement scam that allegedly sucked billions of dollars
from state investment fund
1Malaysia Development Bhd.
The head of the Malaysian
Anti-Corruption Commission,
Dzulkifli Ahmad, resigned
Monday. But there is no sign
of a resignation by Attorney
General Mohamed Apandi Ali,
who cleared Mr. Najib in an
earlier probe into malfeasance
at 1MDB. Mr. Najib and 1MDB
have denied wrongdoing.
Mr. Mahathir said Mr.
Apandi would soon go on
leave and Solicitor General
Nor Faizah Atek, who is empowered to fill many of the attorney general’s roles, would
take over. Mr. Apandi declined
to comment. Mr. Dzulkifli
couldn’t be reached. Mr. Mahathir said he would appoint a
new antigraft chief Tuesday.
Treasurer-General Irwan
Serigar Abdullah, who is 1MDB
chairman, was relieved of his
duties on Monday and moved
to the Public Service Department, the government said.
Malaysia markets gain after
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Malaysia Premier Widens Shake-Up
Prime Minister Mahathir said he would investigate corruption allegations against former officials.
.
A8 | Tuesday, May 15, 2018
THE WALL STREET JOURNAL.
* ****
IN DEPTH
LOVE
Continued from Page One
scientist, Rachel Truscon, living more than a thousand
miles away. They now live together in Michigan.
“We laugh about how crazy
it is that we met,” he says, especially given that his own
experiment with online-dating
sites lasted just an hour, because “it felt so unnatural.”
The couple now jokes about
starting a Spotify-based dating site.
Disenchanted or just plain
turned off by online dating,
people are finding love and romance in other corners of the
internet. Platforms designed
for networking, gaming, blogging, answering questions and
even making lists are doing
unintended double duty as
matchmakers.
Now Facebook is officially
getting into the act. Chief Executive Mark Zuckerberg an-
Employees at auto-parts maker Robert Bosch use a tablet to control a production line; a Fiskars worker tests robot-assembled scissors.
to the company.
Analysts at investment research firm Bernstein said Tesla
automated welding, paint and
body work processes, as other
manufacturers have done, but
also automated final assembly
work, in which parts, seats and
the engine are installed in the
car’s painted shell. Errors in this
work caused production bottlenecks. “Automation in final assembly doesn’t work,” said analyst Max Warburton.
In which industries
does automation help
both employer and
employee?
“Yes, excessive automation at
Tesla was a mistake…Humans
are underrated,” wrote Tesla
CEO Elon Musk in a tweet last
month.
Robots have resulted in pay
cuts for low-skilled machine operators, who play a diminishing
role in production due to automation. And they have eliminated entire occupations, especially in simple manufacturing
processes where there aren’t
value-added jobs for displaced
workers to move to.
Mining, for example, hinges
on raw high-volume production—dig more rock, make more
money—which is better done by
machines that won’t tire or get
injured.
Rio Tinto PLC plans to lay off
drivers as it introduces selfdriving trucks to move iron ore
at its mines in Western Australia. The trucks, which follow
sensors and maps of the mining
site installed in onboard computers, can operate longer than
human drivers and are more reliable. Beneath the ground, robotic drilling rigs have taken
over the dangerous work of inserting explosives into holes
dug in mining shafts.
The automation would improve safety and unlock significant productivity gains, helping
generate annual savings of
around $500 million beginning
in 2021, said Chris Salisbury,
the Rio Tinto board member in
charge of the firm’s iron-ore
mining operations. The company said it would look to retrain or find new roles for the
workers affected.
nounced recently that an optional service will allow singles
to set up separate dating profiles, connecting through local
events and private chats.
Neither Soji Ojugbele nor
Muobo Ojugbele, who are now
married, had ever dated online.
They preferred meeting people
at work, parties or church.
Their modern love story began
one day when a photo popped
up on Soji’s feed on Facebookowned Instagram, of a highschool friend with a woman he
didn’t know.
He started liking her photos,
prompting her to ask Soji’s
high-school friend if he was
single. Next came texts and a
first date.
The way they met, they now
say, doesn’t seem as weird to
them as it does to other people.
A seamstress, lingerie designer and burlesque performer
who uses the stage name Lily
Faye had tried online dating
sites but hadn’t had good experiences on them. She preferred,
she says, “how people used to
Jobs in the garment industry
are also disappearing as firms
automate repetitive, high-volume tasks such as sewing and
knitting, where machines can
work faster and more accurately
than humans.
Technological breakthroughs
have enabled robots to take on
delicate tasks, such as manipulating pliable fabrics, stitching
pockets and attaching belt loops
to pants. In the early days of automation, it was thought that
humans would be needed for
such finishing work.
The International Labor Organization warned that nearly
90% of garment and footwear
workers in Cambodia and Vietnam are at risk from “sewbots.”
At an aggregate level, however, the jobs created by automation outnumber those that
are being destroyed, according
to analysis by the Massachusetts Institute of Technology’s
David Autor and Utrecht University’s Anna Salomons.
People losing jobs, however,
may not be the same ones filling newly created ones, since
different skills are often required.
The Asian Development Bank
said in April that automation
had created an extra 34 million
jobs in its region after price
falls and quality improvements
spurred demand for Asian factory-made goods.
Automation in the U.K. over
the past 15 years has destroyed
800,000 lower-skilled services
jobs—such as call centers—but
has created 3.5 million higherskilled ones, according to a 2017
workforce study by consultancy
firm Deloitte.
Industrial employment in
Germany is expected to rise
1.8% by 2021 because robots
and automation are making the
country’s factories more competitive, according to the Germany-based Centre for European Economic Research in
April.
Automation can help feed demand for a product—because
quality improves or it becomes
less expensive or more available—which can create jobs as a
result.
Finnish firm Fiskars AB,
manufacturer of iconic and once
pricey orange-handled scissors,
used automation to reach more
customers. Workers at its Helsinki plant formerly forged steel
blades by hand in 2,700-degree
furnaces, repetitive and dangerous work.
When robots took over the
tasks in 2011, technicians moved
to quality control, testing the
scissors to make sure the blades
made the right “snip” sound as
they sliced together, and if they
smoothly cut strips of fabric. If
necessary, workers could adjust
the blades bit by bit, in a process calling on multiple senses
that machines couldn’t replicate.
Once the process was partly
automated, the company was
able to increase production and
lower prices, stimulating new
demand without sacrificing
quality, according to Chief Supply Chain Officer Risto Gaggl.
Employment at Fiskars has
soared along with higher production, with the company now
employing 8,560 people in its
factories and offices compared
with 4,515 in 2007.
In Europe, “we couldn’t find
anyone who has been fired because of robots,” said Professor
Adding to the Team
German auto-parts maker Robert Bosch GmbH's profits are up as it has invested in more automation,
and it has hired more workers.
Operating profit*
5 billion euros
Capital expenditures**
5 billion euros
Employees
400 thousand
4
4
300
3
3
2
2
1
1
200
100
0
0
0
2011
’13
Source: the company
’15
’17
2011
’13
’15
2011
’17
meet”—in person.
Yet when Christian Ribiat,
who works in menswear and
lived on the opposite side of
the country, began liking and
commenting on her photos on
Instagram, they discovered a
shared love of fashion, vintage
clothing and music. They
moved the conversation to
Facebook, began dating, then
she moved to Los Angeles,
where he lives.
“What’s very funny is that
he and I are very old-fashioned
when it comes to dating and
relationships,” she says. “I do
feel better about saying I met
him through Instagram than
saying I met him through OkCupid.”
Social-media sites are getting better at connecting
strangers through mutual interests and friends, says Brooklyn
Sherman, who founded a blog
and Instagram account called
“The Way We Met.”
“It’s like modern-day blind
dating,” she says. “Now you can
just see who your friends are
interacting with online and
meet them that way.”
There’s no telling where on
the internet love might bloom.
Food editor Lily Rose describes
li.st, a now-defunct app for
writing and sharing lists, as
“like, the least sexual app
ever.” One day, however, she
noticed a funny, self-deprecating list a man named Stephen
had made of his high-school ID
photos through the years.
Jacoby Jennings and Rachel
Truscon met through Spotify.
’13
’15
’17
THE WALL STREET JOURNAL.
*EBIT **Includes investment in automation
JACOBY JENNINGS
Continued from Page One
undertake creative, problemsolving duties that machines
aren’t very good at. That’s particularly relevant for manufacturing, the food sector and service sectors such as billing,
where timetable spreadsheets
can be automated, freeing up
workers to do higher-value
tasks.
With demand for Bosch-built
steering controls high, the company has used automation to increase its output, leading it to
hire more people to perform the
type of checks Mr. Rösch conducts.
“We looked for 20,000 new
hires last year,” a mix of new
positions and replacement staff,
said Stefan Assmann, one of the
company’s chief engineers, to
join Bosch’s total 400,000 employees. Bosch factories worldwide now make use of 140 robotic arms, up from zero in
2011. “We can’t see robots having a negative impact on our
workforce,” Mr. Assmann said.
Computers
can
zoom
through activities humans find
difficult, such as playing chess,
doing calculus or repeating a
set of movements precisely over
time. Other, seemingly mundane
tasks—brushing your teeth or
running through the woods—
can overwhelm even complex
machines.
Those tasks call on multiple
senses, including touch and
depth perception, feeding information to a problem-solving
brain, which can then finely adjust movements, said Satyandra
Gupta, professor of mechanical
engineering at the University of
Southern California.
For companies, choosing the
appropriate tasks to automate is
important. Auto maker BMW
AG automated some of the
physical labor at the Spartanburg plant in South Carolina
while retaining tasks involving
judgment and quality control
for workers.
Robots fit black, soundproofing rubber tubes to the inner
rim of car doors, a task once
done entirely by hand, on the
more than 5,000 or so car doors
that pass through the production line each day. Human workers do final checks on the tube’s
placement. The division of labor
speeds up the process.
Since BMW introduced this
and other automated processes
over the past decade, it has
more than doubled its annual
car production at Spartanburg
to more than 400,000. The
workforce has risen from 4,200
workers to 10,000, and they
handle vastly more complex autos—cars that once had 3,000
parts now have 15,000.
Being spared strenuous activities gives workers the time
and energy to tackle more demanding and creative tasks,
BMW said in a statement.
James Bessen, an economist
who teaches at Boston University School of Law, said automation like that at the Spartanburg
plant has enabled a huge increase in the quality and variety
of products, which help spur
consumer demand. BMW’s
share of luxury-car sales in the
U.S. has risen sharply, with over
300,000 cars sold last year compared with just over 120,000 in
1997, company figures show.
Tesla Inc. has struggled with
production of the Model 3 car at
its Fremont, Calif., plant after
its use of robots got out of balance. Undetected errors in parts
built by robots caused bottlenecks in production, meaning it
could build only 2,020 cars a
week compared with the 5,000
it originally promised, according
FROM TOP: ALEX KRAUS/BLOOMBERG NEWS; HENRI VOGT FOR THE WALL STREET JOURNAL
ROBOT
Though they lived across the
country from each other, they
began talking. After meeting
for the first time in Chicago,
they both wrote lists about it.
When they later broke up, they
wrote lists about that, too.
Then the app went dark.
“Now we use Twitter to passive-aggressively communicate
with each other,” she says, “and
it’s not going as well.”
Internet love stories often
require some explaining to
family and friends.
Emily Brocato and Ian
Fletcher met on the blogging
site Tumblr when someone Ms.
Brocato followed on the site,
whom Mr. Fletcher knew from
high school, posted about Mr.
Fletcher’s new Tumblr account.
Commenting on each others’
posts led to conversations on
Facebook, phone calls and texting, then long-distance dating.
Now they are married.
The two say they are hesitant to explain to older people
how they met, for fear of confusing them.
Wolfgang Dauth, leader of a
yearslong study into the impact
on workers of robotization on
the continent by the Bonnbased Institute of Labor Economics. Part of the reason is
strong labor unions require retraining when robots take over
tasks. Another part is that Europe’s more-complex industries
need human thinkers to work in
complement with machines.
Electrolux AB, the world’s
second-largest appliance maker
by units sold after Whirlpool
Corp., has spent millions of euros on automating the production of washing machines and
other devices.
The company said robots
freed up technicians to spend
time on a creative task that is
impossible to automate: designing and implementing changes
to the factory floor and robot
layout to customize procedures
and make production more efficient. The constant, incremental
improvements make a broader
range of production in the same
factory space possible, which in
turn supports more workers.
The company said it tweaked
hiring and training so that its
workforce could successfully operate with robots, including a
month of robotics training when
hired and bimonthly half-day
sessions. The company also
built robot-testing areas at its
factories where technicians can
experiment with different robot
hardware and software.
Employment at Electrolux
has risen to more than 55,000 in
2017 from about 53,000 in 2011,
reversing a yearslong trend of
shrinking staff numbers after
China’s December 2001 entry to
the World Trade Organization
flooded the market with
cheaper washing machines.
The slow pace of robot rollouts can shield workers, providing time for retraining. Companies rarely automate all of a
worker’s tasks in one swoop,
and it takes time to work out
how best to use robots. The
high cost of adding new automation also slows the process.
Bosch developed training
courses for workers, teaching
once single-skilled welders, joiners and mechanics basic software coding skills to enable
them to use robots as tools
much like hammers or screwdrivers. “We employ designers,
engineers and scientists,” said
Mr. Assmann, one of the firm’s
chief engineers. “But you still
need people who are good with
their hands.”
U.K.-based food delivery
company Ocado Group has progressively automated work processes and has added workers
as demand for its once-exclusive
internet-grocery shopping service has surged, in part driven
by the efficiency savings that
have lowered prices.
The company’s chief innovation is a complex web of grocery-transporting
conveyor
belts that allow it to process
consumers’ online orders. Another set of robots under development will be assistants for its
human maintenance staff, allowing them to be more productive in managing the conveyor
belts and other machinery. The
company shuts down operations
for three hours each day for
maintenance, and missing that
window could mean being unable to process deliveries.
Instead of walking around
the factory to collect whatever
tools are needed, the robots will
anticipate what the workers
need, and bring them to hand,
acting as automated assistants.
“Our business model would
just fail if these machines didn’t
work,” said Graham Deacon,
head of automation at Ocado.
“We need humans to make sure
they don’t break down.”
At first, Ms. Brocato told her
father they met through a mutual friend. Once her dad met
Mr. Fletcher, though, she told
him the real story, she says, “so
they knew he wasn’t an internet freak.”
Tumblr now has a page—
“love stories of Tumblr”—
featuring couples and their
stories.
Some couples embrace
their online roots all the way
to the altar.
Ligia Carrion and her husband, Khalil Delmonte, first
started talking on Twitter,
where they connected over Ms.
Carrion’s tech blog.
Their 2013 wedding was
Twitter-themed, using its
bird logo on decorations and
the platform’s signature blue
color as part of their wedding
palette. They used a hashtag
for the wedding, #bodahabibis, so their friends from
Twitter could live-tweet
along. And as wedding favors,
they gave out little crocheted
birds.
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A8A
NY
* * * *
GREATER NEW YORK
N.J. Vows to Act Fast on Betting
State plans to tax and
regulate legalized
sports wagering after
Supreme Court ruling
BY CORINNE RAMEY
New Jersey has been trying to legalize sports betting since 2011 but faced opposition from major professional and college sports leagues.
acic, chairman of the Senate’s
Racing, Gaming and Wagering
Committee, introduced legislation in March that would legalize sports betting at four
upstate New York casinos.
“I am confident that…we can
have a bill ready for the governor’s signature by the end of
the session,” Mr. Bonacic said.
New York Gov. Andrew
Cuomo said he doubted
whether the Legislature would
be able to pass a bill this year.
In Connecticut, Gov. Dannel
Malloy, a Democrat, said Mon-
day his administration was reviewing the Supreme Court decision. Lawmakers introduced a
measure this year that would
authorize sports betting, but the
bill never came up for a vote.
“As of today, I am prepared
to call the General Assembly
into special session to consider
legalizing sports betting in
Connecticut,” Mr. Malloy said.
There is wide support for legalized sports gambling among
New Jersey lawmakers, with
both Democrats and Republicans celebrating the Supreme
Court’s decision. Gov. Phil
Murphy, a Democrat, praised
his predecessor, former Republican Gov. Chris Christie, for
continuing to pursue the case,
which has cost the state more
than $8.5 million since 2012,
according to state records.
State officials still need to
work out the details regarding
sports betting, including how
much to tax wagers. Earlier
this month, lawmakers introduced legislation providing for
an 8% gross-revenue tax on inperson wagering and a 12.5%
levy on online bets.
One of the bill’s primary
sponsors, Democratic Assemblyman John Burzichelli, said
the legislation was a “placeholder” introduced to make
sure lawmakers could move
quickly following the Supreme
Court’s ruling. The final taxing
structure “will be driven by
what we’re trying to do with
that revenue and how much
revenue we think we need to
raise,” he said.
—Joseph De Avila
contributed to this article.
A Crime Problem on the Upper West Side
Police say shoplifting at Duane Reades has forced them to divert officers from other issues
BY ZOLAN KANNO-YOUNGS
880
ERIN LEFEVRE FOR THE WALL STREET JOURNAL
A surge in shoplifting at
one of New York City’s most
recognizable drugstore
chains is driving crime in the
staid streets of Manhattan’s
Upper West Side—and rattling the police.
New York Police Department Capt. Timothy Malin
said he has had to take officers off emergency calls and
deploy them directly to the
neighborhood’s six Duane
Reade locations more than
880 times since the start of
the year.
Thefts from Duane Reade
account for 41% of larcenies
under $1,000 this year (197
incidents out of 477) and
32% of shoplifting grand larcenies in the 20th precinct,
which covers most of the
Upper West Side. Larcenies
at the stores alone are up
43% this year compared with
the same time last year,
Capt. Malin said. The precinct has recorded no murders this year.
Overall, the shoplifting at
Duane Reade has driven an
11.3% uptick in major crime
in the precinct, according to
Capt. Malin. As a partial explanation, he pointed out
that Duane Reades on the
Upper West Side are monitored by unarmed, plainclothes guards, offering
softer targets than the
chain’s locations in the Bronx
and Harlem, which often post
armed security.
“If you have an armed security guard in the Bronx, it’s obvious,” Capt. Malin said in an
Times police officers have been
deployed to six Duane Reades
on the Upper West Side this year
43%
Increase in larcenies at the stores
this year compared with a year ago
Razors are among the hottest targets for Duane Reade shoplifters.
Stores Turn to Tech
To Prevent Theft
Retail companies are trying
various strategies to deter
thefts, such as keeping products in the locked boxes. Duane
Reade uses “screamer systems,” in which a device attached to a product will make a
loud noise if it is brought to an
exit without being deactivated,
said Jeff Bruneteau, regional
vice president of Duane Reade.
“It’s a problem everyone in
the industry is still trying to figure out how to stop,” he said.
Mr. Bruneteau said companies balance security with the
experience of customers who
want to easily grab and pay for
their products. Procter & Gamble Co. has worked with retailers to make products more accessible in stores for customers.
Dollar Shave Club, which delivers razors by mail, also had an
initial marketing campaign that
capitalized on shoppers’ frustrations over having to wait for
their cartridges to be unlocked
by store staff.
Deploying emerging technology also could help retailers,
said Lisa LaBruno, vice president of retail operations at the
Retail Industry Leaders Association, a trade association. Some
companies are considering implementing facial recognition
into security cameras, which
would detect previously identified shoplifters when they enter
a store and alert the manager.
interview. “People will just ride
the subway down and…come
and steal here instead.”
The police focus on Upper
West Side larcenies also reflects how safe the neighbor-
hood—one of the city’s
wealthiest—has become.
“It really is a completely
different neighborhood,” said
Craig Pomranz, a 60-year-old
children’s book author who
has lived in the Upper West
Side since 1979. Standing
outside a Duane Reade on
West 79th Street, he said: “I
witnessed dead bodies and a
lot of crime when I first
moved here.”
Capt. Malin said the responses to the Duane Reades
are keeping the officers from
attending to other Upper West
Side issues, such as homelessness and traffic violations.
Ninety people have been
arrested in Upper West Side
Duane Reades this year,
Capt. Malin said. Those include at least five suspects
who had prior arrests for violent crimes, including rape,
gang assault and weapons
charges, according to a PowerPoint presentation Cap.
Malin provided to the West
Side Rag, a newspaper serving the area.
He said Duane Reade,
which is owned by Walgreens Boots Alliance Inc.,
needed to be concerned
about “what kind of bad
guys are coming into the Up-
per West Side” to take advantage of the lax security
and the additional crimes
they may commit in the
neighborhood.
A spokesman for Walgreens said the company uses
a combination of unarmed,
armed, uniformed and plainclothes security in stores
throughout New York. He
added the company recently
began providing weekly security updates to the NYPD and
is adding uniformed security
to Duane Reades in the city.
Some of the hottest targets at the Duane Reades are
razors, baby formula and
cold medicine. The items are
small, said Capt. Malin, but
can cost more than $20 each.
“They’re looking for
something that’s light, easy
to steal and is a durable
good,” said Robert Moraca,
vice president of loss prevention at the National Retail Federation. “This is 100%
profit for these characters.”
The police, Duane Reade executives and industry groups
said the larcenies are part of a
growing “gray market,” in
which gangs steal hundreds of
consumer products and send
them to illicit warehouses,
where the goods are inventoried, scrubbed of labels and
resold either to local stores or
through third-party websites.
The Walgreens spokesman
declined to say how much the
thefts have cost the store and
how much Walgreens has
spent on security for Duane
Reade.
—Sharon Terlep
contributed to this article.
The former New York City
nanny convicted of murder for
fatally stabbing two children in
her care was sentenced Monday
to life in prison without parole.
A Manhattan jury last
month convicted Yoselyn Ortega, 56 years old, of two
counts of first-degree murder
and two counts of second-degree murder for killing 6-yearold Lucia “Lulu” Krim and her
2-year-old brother Leo.
On Monday, Ms. Ortega’s
lawyer argued for parole, while
prosecutors and the children’s
parents asked for the harshest
possible sentence.
“The defendant is an evil and
utterly dangerous narcissist,”
father Kevin Krim told Justice
Gregory Carro. “It is right that
she should live and rot and die
in a concrete and metal cage.”
Ms. Ortega apologized to
God and the Krim family. “I’m
very sorry for everything that
happened,” she said through a
Spanish interpreter, her voice
cracking at times. “But I hope
that no one goes through what
I have gone through.”
When the judge announced
the sentence, she stared down
at the defense table.
On Oct. 25, 2012, the children’s mother, Marina Krim,
returned home to find their
bloodied bodies in their Upper
West Side apartment with Ms.
Ortega beside them, making
an apparent suicide attempt
by slashing her throat.
Monday’s sentencing was
part memorial to Lulu and Leo,
part debate on mental illness
and part advocacy for new
state laws to prevent such tragedies. Ms. Ortega had pleaded
not guilty by reason of insanity.
“I still represent to you that
she did not know what she was
doing any more than an infant,
a brute or a wild beast,” her
attorney, Valerie Van LeerGreenberg, told Justice Carro.
She asked that Ms. Ortega be
given the possibility of parole.
Assistant District Attorney
Stuart Silberg said Ms. Ortega
had never shown remorse for
her crimes. “The only thing
close to justice is that she
never be free,” he added.
Justice Carro said Ms. Ortega
had planned to attempt suicide
and wasn’t in a dissociative
state while killing the children.
Both parents addressed the
court. Mr. Krim called Lulu his
“little Buddha,” and the most
empathetic soul he had ever
known. Leo, he said, was “a
sweet, lovable little boy.”
The Krims have since pushed
for state laws that would make
it a crime to provide false references for child-care workers.
They said one of Ms. Ortega’s
relatives provided a false reference. Her family couldn’t be
reached for comment.
ALEC TABAK/PRESS POOL
New Jersey lawmakers
vowed Monday to move quickly
to pass legislation to regulate
and tax legalized sports betting
after the Supreme Court ruled
in the state’s favor by striking
down a federal law prohibiting
such gambling in many states.
State Sen. Vin Gopal, a
Democrat from Monmouth
County, said lawmakers could
pass a law as soon as next
month. “The reality is, people
are already betting on games
everywhere,” he said. “Now
we’re just going to do this in a
responsible, legal way.”
Monmouth County is home
to two horse racetracks, and Mr.
Gopal said sports-betting would
provide critical revenue for the
struggling industry. “So many
jobs that are at stake,” he said.
The Supreme Court’s decision, released Monday, was a
coup for New Jersey, which has
been trying to legalize sports
betting at racetracks and casinos since 2011 but encountered
opposition from major professional and college sports
leagues. With federal law no
longer standing in the way, lawmakers must now craft legislation that provides oversight of
sports betting, while imposing
a tax that collects enough revenue without pushing gamblers
back into the black market.
Lawmakers in New York
and Connecticut also said they
would act fast. Republican
New York state Sen. John Bon-
BILL KOSTROUN/ASSOCIATED PRESS
BY KATE KING
Ex-Nanny
Gets Life
In Prison;
No Parole
Yoselyn Ortega is ‘very sorry.’
OYSTER PERPETUAL
DATEJUST 31
rolex
oyster perpetual and datejust
are ® trademarks.
.
A8B | Tuesday, May 15, 2018
NY
* *
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THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A9
ILLUSTRATION BY ZOHAR LAZAR; RESERVEAGE
LIFE&ARTS
HEALTH & WELLNESS
BY ANNE MARIE CHAKER
THE STUFF IN beauty creams is
appearing in foods, as companies
launch pricey snacks and drinks
containing collagen—and many
consumers are eating it up despite
little hard evidence that it works.
Valerie Grogan, a 53-year-old
teacher’s aide in Torrance, Calif.,
three years ago began making a collagen-rich bone broth in her crockpot every week, hoping it would
help soothe aches and smooth her
skin. Recently, she discovered a vanilla-coconut collagen powder,
which she mixes into coffee and
smoothies. Then came collagen
snack bars that she buys online and
stashes in her purse—more convenient than the broth, she says. “I
haven’t had a knee issue in years
and I run and do CrossFit,” she
says. “I really believe it’s collagen.”
Foods infused with collagen and
touting beauty and health benefits
have been popular in Japan and Europe for years. Now they are making
a splash in the U.S., in products from
coffee creamer to protein bars. The
rise of collagen as a food ingredient
also comes as the line between food
and medicine is blurring, nutrition
experts say, and consumers seek
“functional foods” that promise
more than just nutrition.
Last year, 281 new food and supplement products featuring collagen were introduced in the U.S.,
according to Innova Market Insights. Sales of food, vitamins and
supplements containing collagen as
a key ingredient grew by about a
third to $60.9 million in the year
ended March 25, says retail data
firm Spins LLC. The rise was especially notable in grocery aisles,
where sales of energy bars and
other snacks featuring collagen increased fivefold, to $2.7 million.
Celebrities have been touting the
A Wrinkle-Cream Staple
Moves to Foods
Collagen—long an ingredient in beauty lotions and treatments—is catching
on in snacks and drinks, despite mixed views from the scientists
benefits of collagen; actress Jennifer Aniston said on the website
Well + Good that collagen-fueled
breakfast shakes have helped
contribute to her “glow.”
A longstanding beauty ingredient in wrinkle creams, shampoos
and lip injections, collagen makes
up about a third of the human
body’s proteins, and dwindles
with age. As an ingredient, it is
sourced from the bones, skin or
cartilage of animals including
pigs, cows, chicken and fish. These
tissues are typically treated with
enzymes, dried and processed into
smaller molecules—or peptides—
to help absorption by the body.
“I try not to think about it,”
says Nancy Coulter-Parker, a 50year-old freelance sports and wellness writer in Boulder, Colo., who
mixes a scoop of collagen powder
into her morning glass of water. On
its own, the unflavored powder has
a “musty, dry taste,” she says, which
she masks by mixing in an orangeflavored vitamin-C supplement. The
results, she says, are worth it. “I feel
more hydrated and I think my hair
seems fuller,” she says.
Reserveage Nutrition’s Collagen
BeauTèa ($30 for 48 tea bags) promises on package labels to “infuse
skin, body and spirit with renewal
and radiance.” Primal Kitchen says
Reserveage Nutrition Collagen BeauTèa
promises ‘renewal and radiance.’
its Dark Chocolate Almond Bar with
collagen “supports connective tissue.” Dirty Lemon Beverages says its
beauty elixir collagen drink will “increase elasticity, reduce wrinkles and
trigger new collagen production.”
Experts say much of the research
on collagen supplementation is
small-scale and often funded by the
ingredient makers. “The research is
not there,” says Mark Moyad, a director of complementary and alter-
native medicine at the University of
Michigan Medical Center.
Dr. Moyad estimates he has reviewed more than 50 studies on collagen supplementation and its impact on factors from physical
movement to cosmetic appearance.
Most are animal studies; human
studies typically have sample sizes
of fewer than 25 people. To recommend collagen supplements to patients, he says, he would want to see
at least half a dozen well-controlled, independent human
studies, with sample sizes in
the hundreds, running for at
least six months.
There are no known
safety issues related to
taking collagen, which
the body breaks down
similarly to other ingested proteins, says Adam Friedman, dermatology professor at George Washington University, who is studying
collagen’s effects on wounds.
Still, heavy metals including lead
can be retained in animals’ bone and
connective tissues, Dr. Moyad says.
He says consumers can ask if the
manufacturer does testing that
would check for such hazards.
The Food and Drug Administration doesn’t regulate supplements
as drugs and doesn’t approve food
or dietary supplement labels be-
fore they are put on the market,
according to FDA spokeswoman
Theresa Eisenman.
Buzzwords such as “enhances,”
“maintains,” or “promotes” on labels should be taken with a grain of
salt, says Bonnie Liebman, nutrition
director for the Center for Science
in the Public Interest, a nonprofit
consumer-advocacy group.
Food companies and ingredient
makers say that while the research
is in its nascent stages, many consumers swear by the products.
“The most important thing we
have are customers regularly telling us there are clear results,” says
Zak Normandin, co-founder of
Dirty Lemon Beverages LLC.
Mark Sisson, chief executive of
Primal Nutrition LLC, launched Primal Kitchen branded collagen powdered drink mixes and snack bars
two years ago as part of his food
business. While about 65% of his
customers for collagen products
are women largely interested in
improving skin, hair and nails, he
says men also take collagen for
reasons including knee and joint
health. As for the research, “dietary science is never black and
white,” Mr. Sisson says.
Dermatologists say there isn’t
any conclusive evidence that ingested collagen affects the hair, skin
and nails. “Dermal collagen is like a
complex woven sweater. You can’t
just throw a ball of yarn at it and
expect it to get incorporated,” says
Mary Sheu, a dermatology professor
at Johns Hopkins University.
Ashley Barrient, a dietitian with
the Northwestern Medicine health
system in Chicago, says as many
as five patients a month ask her
whether they should take collagen. “A lot of the studies look at
collagen alone, but we don’t know
what happens when it’s used in
combination with other ingredients,” she says.
MUSIC
SPOTIFY SPARKS A MUSIC-INDUSTRY DEBATE ON CENSORSHIP
SCOTT LEGATO/GETTY IMAGES
BY ANNE STEELE
Spotify
removed
R. Kelly,
right, from
its playlists.
R. KELLY’S OUSTER from Spotify playlists
last week touched off a broader debate
about where the music industry should draw
the line between penalizing bad behavior
and engaging in censorship.
Spotify Technology SA last week said it
removed R. Kelly’s music from playlists created by its staff and from software-driven
recommendations as allegations about the
singer’s treatment of women over several
years have gained momentum in recent
months.
The streaming service’s new “Hate Content and Hateful Conduct” policy stretches
its discretion beyond racy lyrics to include
behavior by the people who create music.
CDs and other physical formats have for
years carried “explicit content” warning labels on songs with explicit words—which
some retailers have in turn refused to carry.
Spotify’s move, announced Thursday, marks
a new approach that metes out a different
sort of punishment for a performer’s alleged
bad behavior.
Being on Spotify’s popular curated playlists can provide a significant boost to artists, who collect more in royalties the more
their music is streamed. Streaming royalties
are now responsible for the bulk of revenue
from recorded music as sales of physical
and digital albums have collapsed.
Other music-streaming platforms have
been reworking policies in the #MeToo era,
and are cautiously treading into a debate
about free speech.
The policy changes have given rise to
questions about which artists should be subject to such sanctions. What about Chris
Brown, who pleaded guilty to felony assault
of then-girlfriend Rihanna in 2009? Or Michael Jackson, who settled one accusation of
child sexual abuse in the early ’90s and was
acquitted on other allegations in 2005?
Many in the music industry have applauded Spotify taking a stand. But some
are wary of the danger of punishing people
Please see MUSIC page A10
.
THE WALL STREET JOURNAL.
A10 | Tuesday, May 15, 2018
LIFE & ARTS
MUSIC
THE CRAZE OVER online
talk shows has reached a
point where even Studs
Terkel is getting one. He’s
been dead for 10 years.
Mr. Terkel and another
departed voice from Chicago
talk-radio, Milt Rosenberg,
are finding new audiences
thanks to modern technology
and devoted fans.
Mr. Terkel, who died at
age 96, won a Pulitzer Prize
for his oral history of the U.S.
during World War II. Mr.
Rosenberg, who died in January, was a University of Chicago professor who received
a National Humanities Medal
from President George W.
Bush. Both ruled Windy City
airwaves for decades with
shows where they explored
ideas and current events with
politicians, authors, artists
and economists.
New websites offer their
old programs—Mr. Terkel’s
skewed left, Mr. Rosenberg’s
skewed right. Most of these
shows have not been heard
by the public since they were
first broadcast.
Allison Schein Holmes, archivist at the Studs Terkel
Radio Archive, says listening
to the shows—about 45 years’
worth—has made her long for
an earlier age of respectful
intellectual engagement.
“Studs always wanted it
to be a conversation,” she
says.
Matt Rosenberg, who
manages the new digital archive of his father’s shows,
says the programs show that
people can talk to one another with civility, even if
they don’t agree.
“In this day and age, where
you can hardly say something
without someone jumping
down your throat, that approach is perhaps more valuable than ever,” he says.
Kraig Kitchin, chairman
of the Chicago-based National Radio Hall of Fame,
says the two men produced
cerebral shows that often
sound like a modern podcast. “To me, it’s something
to champion,” he says.
The Terkel archive,
launched this month, plans
to collaborate with schools
and libraries to get the word
out about the programs after
a pair of parties in Chicago
and Washington, D.C. Matt
Rosenberg, operating with a
much smaller budget, has
started the website and is
promoting the shows on a
Facebook page.
The Terkel archive is a
collaboration of the WFMT
Radio Network, part of the
station where Mr. Terkel had
a one-hour morning show
from 1952 until 1997. The
Chicago History Museum,
the Library of Congress are
also involved. It will launch
with about 1,700 shows offered free. More of the approximately 5,600 shows
FROM TOP: BETTMANN ARCHIVE/GETTY IMAGES; MATT ROSENBERG
BY CAMERON
MCWHIRTER
RADIO
Two Radio Legends
Reborn Online
that researchers have found
are scheduled to follow. Mr.
Terkel drew a parade of famous people to his program,
including civil rights leader
Dr. Martin Luther King Jr.,
boxer Muhammad Ali and
poet Allen Ginsberg.
Tony Macaluso, director of
the Terkel project, guessed
that about 20% to a third of
Mr. Terkel’s shows were lost
because they were taped over
or thrown away over the
years. Researchers are combing Mr. Terkel’s house and
elsewhere to find more tapes.
Mr. Terkel, perpetually disheveled and often chewing
a cigar, “was fascinated by
everything” and “had no
trouble mixing in with people,” whether it was a famous actor like Marlon
Brando or Chicago gang
members, says Lois Baum, a
longtime associate program
director at WFMT and a
close friend of Mr. Terkel’s.
“The person recognizes
that you respect them, because you’re listening. Because you’re listening, they
feel good about talking to
you,” Mr. Terkel wrote in his
memoir, written with Sydney
Lewis, “Touch and Go.”
Ms. Baum, who helped the
Terkel archive launch, says
that during the last year of
his life, as his health de-
Radio shows hosted by Studs Terkel, top, and Milt Rosenberg,
seen above with Margaret Thatcher, are getting digitized.
clined, Mr. Terkel often
would ask her the same
question: “What’s going to
happen to my programs?”
Milt Rosenberg’s son,
working with his father’s
friends, is on a mission to
bring his father’s shows to
new listeners, too.
The website offers several
programs free, and charges
$5 a month or $45 a year for
unlimited access to about
386 shows. Matt Rosenberg
says he has another 1,600
shows digitized and ready to
be uploaded. Several thousand others on reel-to-reel
and cassette are sitting in
his father’s Chicago apartment waiting to be digitized.
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Milt Rosenberg was a
longtime social psychology
professor at the University
of Chicago. He was chosen in
1973 to be the full-time host
of “Extension 720”—a twohour nighttime program on
WGN radio, one of Chicago’s
most influential stations.
From 1973 to 2012, Milt
Rosenberg interviewed politicians, authors, playwrights,
journalists, musicians and
anyone else who made him
curious, his son says. He interviewed novelist Saul Bellow, actor Bill Murray, British Prime Minister Margaret
Thatcher, President Jimmy
Carter and, in 1995, a young
Chicago lawyer named Ba-
rack Obama.
Initially politically liberal,
Mr. Rosenberg grew more
conservative over time. But
“he never let his own views
take over on the show,” his
son says.
WGN forced Mr. Rosenberg off his show in 2012,
but Mr. Rosenberg didn’t
give up on talk. He launched
a podcast with new shows,
and later had a program on
another station briefly.
According to Matt Rosenberg, one of his father’s favorite guests was Joseph Epstein, the essayist and
longtime editor of the American Scholar magazine. Mr.
Epstein, who came on at
least five times, says that
whenever he visited to promote a book, Mr. Rosenberg
“always had read it and was
thoughtful,” a rarity among
commercial radio interviewers. Milt Rosenberg’s listeners were “very agreeable” to
intellectual discussion, not
just partisan banter, he says.
Mr. Epstein, who has written for The Wall Street Journal’s opinion pages, says these
intellectual, longform radio
programs required “sitzfleisch.” It’s a German term
that’s slang for staying power,
a willingness to work hard at
something, in this case exploring the world of ideas.
Continued from page A9
who haven’t been convicted
of any crime.
In addition to Mr. Kelly,
Spotify removed rapper
XXXTentacion from its playlists, including the influential Rap Caviar. XXXTentacion has a reputation for
public feuds, assault and
controversial social-media
posts and has been charged
with battery.
Both artists’ catalogs remain available on the service
and users can add their music to playlists they make
and share themselves.
“While we don’t believe in
censoring content because of
an artist’s or creator’s behavior, we want our editorial
decisions—what we choose
to program—to reflect our
values,” Spotify said.
The policy, which creates
a sizable gray area as far as
when it applies, comes amid
a social-media campaign,
#MuteRKelly, aiming to end
the 51-year-old R&B star’s
career after years of allegations of sexually abusing
underage women and in
some cases holding women
hostage in a “sex cult.” He
was indicted in 2002 for
child pornography but was
acquitted of those charges
in 2008.
“R. Kelly never has been
accused of hate, and the lyrics he writes express love
and desire,” Mr. Kelly’s management team said in a
statement. “He is innocent of
the false and hurtful accusations in the ongoing smear
campaign against him,
waged by enemies seeking a
payoff.”
Streaming services
acknowledge they
play an active role
and aren’t just hosts.
Mr. Kelly’s management
said Spotify is “bowing to
social-media fads and picking sides in a fame-seeking
dispute over matters that
have nothing to do with
serving customers” while
promoting “numerous other
artists who are convicted felons, others who have been
arrested on charges of domestic violence and artists
who sing lyrics that are violent and anti-women in nature.”
Apple Music, a Spotify
competitor, hasn’t been featuring or promoting Mr.
Kelly’s music for several
months, according to a person familiar with the matter.
Pandora Media Inc. said
its policy is “to not actively
promote artists with certain
demonstrable behavioral,
ethical or criminal issues”
and decisions are made on a
case-by-case basis “to ensure we address components true to Pandora’s
principles while not overreaching and avoiding censorship.”
Pandora won’t serve up R.
Kelly’s music on its “browse”
function, in ads or in new
curated playlists. His catalog
is available for users to
queue up on their own and
still comes up on the algorithm-driven personalized
radio stations Pandora is
best known for.
In August, Spotify joined a
growing roster of tech companies denouncing white supremacists and neo-Nazis after violence in
Charlottesville, Va., following
a white-nationalist rally
there.
It removed music by artists who supported those
causes, at the time saying
record companies and aggregators are “at first hand responsible for the content
they deliver.”
Streaming services’ decision to turn down the volume on Mr. Kelly is an acknowledgment that they play
an active role in presenting
music to customers, rather
than passively hosting whatever material comes their
way.
“It’s important to remember that cultural standards
and sensitivities vary
widely,” according to Spotify’s announcement of its
new policy. “There will always be content that is acceptable in some circumstances, but is offensive in
others, and we will always
look at the entire context.”
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A11
LIFE & ARTS
EXHIBITION REVIEW
Awkward Trek Through Time
BY EDWARD ROTHSTEIN
PENN MUSEUM (2)
Philadelphia
THE HANDSOME, thoughtful redesign of the Middle East Galleries of
the University of Pennsylvania Museum of Archaeology and Anthropology (aka the Penn Museum)
promises us a major reinterpretation of its subject. Ten curators
have selected more than 1,200 artifacts gathered over 130 years of archaeological digs from what is one
of the nation’s finest collections,
and presented them in 6,000 square
feet of bright gallery space using
the latest in museological displays
and technology. This is also the first
stage of a three-part $102 million
project to redesign the major exhibition spaces in the museum.
The promise is that these new
Middle Eastern galleries will offer a
fresh, coherent narrative. They are
given the title “Journey to the City”
and the development of great urban
centers is their theme. Artifacts
date back to the sixth millennium
B.C., when agricultural advances allowed nomadic hunter-gatherers to
stay in one place. Alongside major
rivers and trade routes, new forms
of social and economic life developed, made possible by surplus
food and specialized labor. Urban
citizenry came to be differentiated
by tasks and talents, buying and
selling wares and labor. Ritual and
law became consolidating instruments of temples and government.
The city was born.
Unfortunately, though, the promise is not really fulfilled. You can
follow aspects of this narrative
without a problem, but given the
sophistication of so much else here,
the account is surprisingly awkward, almost as if it were being imposed to demonstrate “relevance.”
Comparisons with the urban present are also painfully literal.
One display, for example, shows a
2,000-year-old terra-cotta drainpipe
closely resembling a contemporary
one made of polyvinyl chloride. Another display, not providing much
more insight, juxtaposes an image
of the nearly 4,000-year-old law
stele of Hammurabi with the U.S.
Constitution and alludes to “the old
adage” whose origins are in that ancient code: “an eye for an eye, a
tooth for a tooth.” But of course
that “old adage” is actually in three
early books of the Bible, a comparison that might have yielded many
more insights than the one made.
The “journey to the city” idea
also reaches a climax only halfway
through, in a magnificent gallery devoted to the ancient Sumerian city,
Ur—brought to light in excavations
in the 1920s and 1930s jointly sponsored by the British Museum and
the Penn Museum. The ancient history, even here, doesn’t readily flow,
and after this gallery, any sense of a
“journey” seems forgotten.
Better then, to simply take this
The Middle East Galleries at the Penn Museum, which feature more than 1,200
artifacts, above; a rectangular brick from Ur bearing a human footprint, left.
extraordinary material in without
fitting it into a prefab mold.
The Ur gallery, for example, contains a cuneiform declaration of
King Shulgi, who ruled the Sumerian city at the end of the third millennium B.C. and built the great ziggurat we see imagined in nearby
displays. “I am Shulgi, King of Ur!”
he declares. “My words must never
be forgotten!”:
“I excel at assigning work with
pickax and brick-mold.”
“I am an experienced scribe who
neglects nothing.”
“I can tell the good from the
wicked.”
Such kingly pride might recall
the hubristic declaration of Shelley’s Ozymandias (“Look on my
Weather
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FRIENDLY EMBRACES | By Natalia Shore
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Solve this puzzle online and discuss it at WSJ.com/Puzzles.
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from Ur bearing a human footprint.
Was it an accident—like the dog
prints on another brick shown
here—or the equivalent of a signature that would have been sealed in
the steps of a ziggurat? For the museum its presence seems a declaration of intent: It isn’t only the
mighty who are immortalized
through fragments and shards.
The one force not sufficiently illuminated is the University of Pennsylvania itself. Each set of displays
grows out of a dig the university
participated in; in fact, the museum
was established in 1887 to house
the findings of the first such expedition, which was also the first American dig in the region. No artifact
here was purchased or borrowed;
each was discovered by university
researchers and is owned according
to arrangements with other institutions and governments in the regions now known as Iran and Iraq.
The provenance of these objects is
beyond reproach. But in today’s climate of illicit traffic antiquities,
why not simply explain the acquisition procedures followed?
The weaknesses of these galleries
inspire a hope that more will be
done over time. Their strengths inspire the same hope, so rich and
suggestive is the material we are already privileged to see.
—Mr. Rothstein is the Journal’s
Critic at Large.
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.
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works, ye Mighty, and despair!”),
except the Ur material here shows
not monumental ruin, but well-preserved artisanship. The most exquisite (and well-known) evidence
comes from the tomb of Queen
Puabi, dating from c. 2350 B.C. (and
discovered in the late 1920s): Her
reign is a mystery, but her taste is
evident in a cloak of gold, lapis lazuli, agate, carnelian and silver, and
a diadem that has changed character with reinterpretation.
So much information now exists
about Ur that its society can be
seen from below as well as from
above; even individual dwelling
places and occupations have been
identified. The most dramatic
find—“The Great Death Pit”—may
also reveal something about the expected allegiances of servants. In a
pit near royal graves, the body of a
richly adorned woman was found
accompanied by the remains of 67
women and six men—all killed by
blows to the head, and arranged “as
if at a funerary banquet.” We see
the skulls of two of the dead with
the accouterments they wore on the
day they were felled, but earth and
time have crushed them into flattened masses, a mix of bone and
fractured ornament.
Objects of daily life also deliberately take on fresh importance here.
At the exhibition’s entrance, for example, is a flat rectangular brick
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THE WALL STREET JOURNAL.
A12 | Tuesday, May 15, 2018
SPORTS
GAMBLING
Leagues Gear Up for a Betting Future
Even before the High Court’s ruling, the NBA, NFL and MLB laid the groundwork for a change that could upend the industry
THE MAJOR American sports
leagues had an unmistakable response to Monday’s historic Supreme Court ruling that paves the
way for legalized sports across the
U.S.: We’re ready—and we want in.
Just a decade ago, that would
have been unimaginable. Then, the
NBA had just been rocked by a referee involved in sports gambling.
Memories of famous scandals,
from Pete Rose to the 1919 Black
Sox, still loomed over MLB. The
NFL, America’s gambling behemoth, opposed the practice perhaps more vigorously than any
other major sports body.
But in the months and years
leading up to Monday’s 6-3 decision, which invalidated a federal
law that banned sports betting in
most of the U.S., these leagues
have been preparing for a different
type of future. Both behind the
scenes and publicly, their attitudes
have shifted in anticipation of a
new reality that had come to feel
like an inevitability.
“The leagues want a piece of the
action, somehow, some way,” said
Frank Vuono, co-founder of 16W
Marketing, a New-Jersey based
sports marketing agency.
The leagues have already laid
the groundwork for how they
would like to proceed in a landscape where fans may be laying
bets before—and during—games,
whether that’s from seats on their
couches or in the stands.
These bets will go far beyond the
classic wager on who will a game
and by how many points. Legal
sports gambling gives more fans access to a huge array of “prop bets”
that would be available on every
play of every game. They are bets
on propositions such as, “How
many threes will LeBron James hit
in the third quarter?” or “Will the
Patriots score a touchdown on this
drive?” Such bets are common in
the U.K., where soccer fans can
make wagers on Premier League
matches while at the stadiums.
The stances of the leagues visibly
changed even before the Supreme
Court made it clear the leagues did
not have a choice. David Stern opposed legalized sports betting during
most of his 30 years as NBA commissioner, but Adam Silver, who took
over in 2014, supports it. The NHL
became the first major league to
place a franchise in Las Vegas. The
Golden Knights, in their first season,
are in the playoffs. The NFL’s Raiders
Guests line up to place bets at the Westgate Las Vegas Resort & Casino.
ETHAN MILLER/GETTY IMAGES
BY ANDREW BEATON
will move from Oakland to Las Vegas
in the next couple of years.
On Monday, the leagues said
they would work to protect the
“integrity” of the game in states
where sports betting becomes legal. The challenge that invalidated
the federal law on sports betting
came from New Jersey, but other
states have already either passed
legislation or voiced support of action to follow that.
“As each state considers whether
to allow sports betting, we will
continue to seek the proper protections for our sport, in partnership
with other professional sports,”
MLB said in a statement.
Not all leagues, though, have
taken the same approach in their
behind-the-scenes efforts to gear
up for this moment and capitalize.
And some of the proposals have already faced resistance from gaming
experts and industry executives.
In recent months, the NBA and
MLB have already been lobbying
states for what has been commonly
referred to as an “integrity fee”—1%
of bets typically—to extract a cut of
the action. The leagues believe the
fee is the necessary trade-off for the
increased administration that would
be required to protect the sports
and guard against anything nefarious, such as game-fixing.
This idea has gained traction
and generated discord. A bill introduced in the Kansas House of Representatives earlier this year, for
example, proposed a 0.25% fee on
wagers to go back to the respective
leagues.
Gambling experts and industry
executives say a 1% fee can amount
to upward of 20% of net revenue
for gambling operators and that
such an action could keep the practice unregulated and underground.
In a statement Monday, Silver
said the league “will remain active
in ongoing discussions with state
legislatures.”
The NFL isn’t insisting on a fee
and NFL commissioner Roger
Goodell has been less outspoken
than Silver on the subject. Instead,
said a person familiar with the
league’s plans, the league will push
for legislation that requires sports
betting operations to use official,
league-sanctioned data. The NFL
believes this will protect consumers and guarantee quality control.
Licensing this data would likely involve some sort of fee.
Down the road, there may be
even bigger payoffs: The potential
to license games or highlights so
that fans can bet on the NFL and
watch it too—all in one place. So,
for example, if a bettor wagers
that a football team will score on
its next drive, it could watch the
action on their phone.
“The money is in the video,”
said the person familiar with the
NFL’s plans.
The NFL and NBA both called
Monday for a federal framework
that would set a standard for regulations in each state where sports
gambling is ultimately realized.
“Congress has long-recognized the
potential harms posed by sports
betting to the integrity of sporting
contests and the public confidence
in these events,” NFL spokesman
Brian McCarthy said in a statement.
“Given that history, we intend to
call on Congress again, this time to
enact a core regulatory framework
for legalized sports betting.”
Sen. Orrin Hatch (R., Utah) said
in a statement Monday that he
plans to introduce legislation in the
coming weeks to “protect honesty
and principle in the athletic arena.”
While these sports bodies see
opportunity, the NCAA faces a dilemma. The NCAA has consistently
opposed sports betting, even refusing to hold championship events
where sports betting is legal. On
Monday the NCAA’s chief legal officer, Donald Remy, said in a statement: “While we are still reviewing
the decision to understand the
overall implications to college
sports, we will adjust sports wagering and championship policies
to align with the direction from
the court.”
—Rachel Bachman, Jared Diamond
and Ben Cohen contributed to this
article.
By Jason Gay
It’s time for us all to don our
vintage New York Jets jerseys
and set off down the Road to
Perdition: the Supreme Court
has blazed an apocalyptic path
for—horror!—the legalization of
sports betting in America.
A generation from now, we will remember
this moment, as we stare upon the charred
hellscape we created: a
country that abandoned
centuries of industry and
innovation (and a lot of
movies about talking pets)
in favor of placing sanctioned bets on the Jacksonville Jaguars. The annihilation of civilization will
be swift and severe. Imagine Cormac McCarthy’s
“The Road,” dictated by
Brent Musburger: broken
families, burned out cars,
wild poodles and sports
radio hosts, roaming the
streets. Crime will be everywhere. Zombies, too.
But hey—you’ll be able to
bet on the Clippers.
Or maybe it will be pretty normal.
Who wants to wager on the outcome?
Monday morning’s 6-3 SCOTUS ruling struck
down a federal law prohibiting state sports
gambling outside Nevada; it’s expected to
free the marketplace beyond those velvety
rooms in Las Vegas with the big TVs and a
lot of men who look like they’ve never seen
the sun. New Jersey brought the case, but
other states are lining up to be liberated.
Like a stunning purple crocus—or more apropos, a young marijuana seedling—a massive, underground economy will rise from
the soil into the daylight, making it legit,
ending the charade of enforcement, and
minting a new era of tycoons.
It’s really beautiful, isn’t it? It makes me
want to weep. Or at least bet on the Celtics
to take down the Cavs.
Look: you’re going to hear a lot of hype
over the next few days about how transformative this moment is for American sport,
how we will look back
upon it like the invention
of the forward pass, the
split-fingered fastball, or
Joakim Noah’s $72 million Knicks contract.
You’ll hear that the very
foundation of the American sports economy will
shiver and quake, that today’s sports media and
in-game experience will
be unrecognizable within
a generation.
Or…not. They’ve had
sports gambling in Europe for eons. It’s neither
Xanadu nor The Abyss.
We presume our sports
leagues are intrigued by
the possibilities here, in particular the NBA,
which instead of wink-wink disapproval has
been very public in its support for changing
the law. Basketball sees both dollars and engagement—a fan with something on the line
is far more likely to be engaged in the action, even if that action is a Brooklyn Nets
game in mid-March.
Technology, meanwhile, has made the prospect of placing bets very accessible—imagine
sitting in the crowd at a game, as fans around
you place bets on the third quarter’s leading
scorer, or the next touchdown pass.
L-R: PRODUCTIONMANAGER; MADDIE MEYER/GETTY IMAGES
HERE COMES THE
SPORTS GAMBLING
APOCALYPSE
NBA commissioner Adam Silver sees great potential for the NBA in a legal sports betting economy.
Yeah, so here’s the thing: I’m imagining
that, and I’m not that excited by it. I’m perfectly OK with the court’s ruling here—and
the legalization of sports betting, because
who is kidding whom?—but the idea of being
surrounded by a bunch of lunatics making ingame bets on their phones, freaking out when
they lose? Yuck. It makes me want to run for
the rafters. Rafters without Wi-Fi access.
Same for the transformation of sports
media. I do believe sports gambling will
have a major impact on sports media: there
will be tremendous demand for programming promising to give the sports gambler
an advantage. There’s already plenty of that
stuff with fantasy sports, but now the networks will cut to the chase and do it for
genuine gambling-gambling, to which I can
only say: Zzzzzzzz. Have you ever watched a
TV show about fantasy football? I’d rather
get hit in the head with a frozen turkey.
(For that matter, have you ever talked to
anyone about his or her fantasy football
team? I’d rather get hit in the head with two
frozen turkeys.)
But gambling shows will be popular, I’m
sure of it. It will endanger anyone in sports
media who isn’t offering an edge. Say goodbye to your idiotic Journal sports columnist,
writing about Euro bike racing and cats. In
two months, I’ll be giving you lines on Mets
games and kickboxing matches.
I know NBA commissioner Adam Silver
shares some of these concerns—we talked
about it onstage at the Journal’s Future of
Everything Festival in New York City, which
was awesome and you definitely should attend next year. Silver sees great potential
for the NBA in a legal sports betting economy—among other things, it’s a fabulous
hedge against volatility with future TV contracts—but he knows it must be handled
with care. (He declined to tell me who wins
this year’s NBA Finals.)
All I’m saying is: be wary of the hyperbole here, from both sides. The court has
made a significant ruling, and the potential
money is inarguable. But it’s probably not
the end of the world, nor the dawn of a brilliant new one. More likely it’s something in
between. At least that’s my bet. That, and
the Celtics in 6.
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A13
OPINION
Trump, Iran and American Power
America’s
withdrawal
from the Iran
deal and relocation of its
Israeli
embassy to JeruGLOBAL
salem send an
VIEW
unmistakable
By Walter
signal about
Russell Mead
the emerging
Trump foreign
policy: The administration
wants to enlarge American
power rather than adjust to
decline. For now at least, the
Middle East is the centerpiece
of this new assertiveness.
For President Obama,
Iran’s rise was an unavoidable fact. Confronting Iran
meant risking a war even
bigger and uglier than the
one in Iraq. Mr. Obama
wasn’t only personally opposed to such a war, he believed that neither Congress
nor public opinion would
sustain it. The era in which
the U.S. could dominate the
Middle East was over; the
wisest course was to negotiate an arrangement that
would protect core U.S. interests and cover for an American withdrawal.
The Iran deal, President
Obama and his supporters believe, accomplished all that
and more. By taking the nuclear issue off the table, at
least for the time being, the
agreement averted the danger of a U.S.-Iranian military
confrontation. Moreover, it
weakened hard-liners inside
Iran by undermining their
core argument that Iran faced
an external threat requiring
permanent social mobilization even as it strengthened
moderates by tying the country ever more closely to the
world economy. If supported
by the West, the Obama administration believed, moderates would gradually consign
the Islamists to the political
fringes.
From this perspective, the
deal was a masterstroke of diplomacy. Its supporters now
fear that Iranian and American hard-liners, energized by
the failure of their more accommodating rivals, will steer
the countries toward a policy
of confrontation ending in
war—and that the result of
this war will be to accelerate
rather than retard American
decline in the Middle East
and beyond.
President Trump’s approach is different. His instincts tell him that most
Americans are anything but
eager for a “post-American”
world. Mr. Trump’s supporters don’t want long wars, but
neither are they amenable to
a stoic acceptance of national
decline. As to the wisdom of
accommodating Iran, Team
Trump believes that empowering Iran is more likely to
strengthen the hard-liners
than the moderates. As
Franklin Roosevelt once put it
in a fireside chat, “No man
can tame a tiger into a kitten
by stroking it.”
The Trump administration
believes that far from forcing
a U.S. retreat, Iranian arrogance and overreach in the
Middle East have created a
golden opportunity for the
assertion of American power.
It hopes the emerging alliance of Arabs and Israelis
will give America local partners who are ready to bear
many of the risks and costs
of an anti-Iran policy in exchange for American backing.
The president sees
Tehran’s overreach
as an opportunity to
arrest U.S. decline.
Israeli air power and Arab
forces, combined with the intelligence networks and local
relationships the new allies
bring to the table, can put
Iran on the defensive in Syria
and elsewhere. This military
pressure, along with economic pressure from a new
round of sanctions, will
weaken Iran’s hold on its
proxies abroad and create political problems for the mullahs at home. If they respond
by restarting their nuclear
program, Israeli-American
airstrikes could both stop the
process and inflict a humiliating blow to the regime’s
prestige.
At that point, Team Trump
believes, Iran will be faced
with a different kind of negotiation, one in which the U.S.
and its allies are in a position
of strength. In addition to accepting limits on its nuclear
activities, optimists hope,
Iran would also scale back its
regional ambitions. Syria’s future would be determined by
the Arabs, Iran would accept
Iraq as a neutral buffer state
between it and the Sunni
Arab world, and an uneasy
peace would prevail.
This approach might be unpopular with America’s European partners, but it resonates
with the Middle Eastern allies
on whose support the strategy
depends. The Trump administration recognizes that, and
its strong backing of Arab and
Israeli priorities—President
Sisi’s government in Egypt,
Saudi Arabia’s military campaign in Yemen, the Jerusalem
embassy—reflects the demands of coalition diplomacy.
Expect more of this. Rewarding useful allies is a cornerstone of the Trumpian approach to foreign policy. The
more active America’s Middle
East allies, the smaller the risk
of heavy American engagement in a Middle East ground
war.
The administration has
now made its intentions
clear. It seeks a neo-American
era in world politics rather
than a post-American one,
and it has chosen the Middle
East as the testing ground for
its new approach. The biggest
questions the new national
security team must now ask
itself are: How deeply, and
for how long, is the president
committed to this approach—
and will he continue to support it if, as often happens in
the Middle East, something
goes wrong?
Meet Jimmy Kimmel’s Nun
It was once
understood
that a gentleman
never
holds up a
woman’s
looks for ridiMAIN
cule.
Even
STREET
now, when the
By William
idea of a genMcGurn
tleman has itself become
an anachronism, the #MeToo
moment might have been
thought to re-enforce the old
prohibition.
Turns out there’s an exception for nuns.
Last Tuesday, the host of
ABC’s “Jimmy Kimmel Live!”
took advantage of this exception during a segment poking
fun at the A-listers showing
up for this year’s Met Gala in
everything from mock papal
headgear to cross-bedazzled
evening gowns. The gala’s
theme was “Fashion and the
Catholic Imagination.” Mr.
Kimmel said his boyhood had
given him a much different
impression of the Catholic
sense of fashion. For the laugh
line, up popped a photo of a
middle-aged nun—he called
her “Sister Mary Frances
O’Brien”—“wearing the latest
from JCPenney.”
In reality, Sister Mary Frances O’Brien doesn’t exist. The
nun in the photo is Sr. Patricia
Pompa. I know because Sr. Pat
is principal of Villa Walsh
Academy, the Morristown,
N.J., high school my daughters
attended.
At a time when Christians
elsewhere are being beheaded
or having their churches torn
down, a nun joke doesn’t register high on the outrage
meter. But for those who know
the real-life woman behind the
joke, it stinks of injustice.
It’s true, as Mr. Kimmel’s
reference to JCPenney was
meant to convey, Sr. Pat’s
habit would win no awards
for fashion. Then again, it is
precisely in this sense she
wears it. In its way it is a declaration of higher loyalties
and imperatives.
Sr. Pat’s entire life has been
about self-sacrifice on behalf
of one of these imperatives:
the education of girls, which
she oversees in a school located a few feet from the convent where she and the sisters
live. So when they admit a girl
to their school, they see themselves as welcoming her into
their home. The Lord says, “I
am the good shepherd, I know
my sheep and my sheep know
me.” At Villa Walsh, Sr. Pat
knows every one of her 250
lambs by name.
The Religious Teachers Filippini were founded to educate the daughters of the
poor, but the school’s location
means a fair number of Villa
students come from families
of means (“I see the cars you
drive,” Sr. Pat sometimes reminds parents during fundraisers). Affluence is no immunity from the trials and
tragedies of life: the girl
whose parents are in the thick
of an ugly divorce, the senior
who becomes pregnant, the
student with a drug problem,
the 14-year-old who just lost
her mom to cancer.
In many cases, Sr. Pat is
powerless to alter outcomes.
But she can love. And love is
as much a part of the Villa
formula as the high bar it sets
for academic excellence. The
sisters can’t guarantee their
young charges a life free from
hurt and unfairness. But they
promise them this: No Villa
girl will ever hurt alone.
Behind the caricature
is someone who has
spent her life building
strong women.
In the popular culture, nuns
are synonymous with discipline. There’s something to
that, though it’s worth remembering the Latin root for
“to discipline” is not “to punish” but “to teach.” As part of
preparing their girls for the
world, the Filippini sisters endeavor to show them, by example, that when St. Paul
wrote that love bears all
things, believes all things,
hopes all things, and endures
all things, it was more than
pretty words.
Sometimes love means being the one to deliver bad
news; sometimes it’s telling a
student to knock off the nonsense and start living up to
her God-given potential;
sometimes it’s just offering a
shoulder to cry on for a girl
feeling terribly lost and abandoned. Across our world
there are thousands of
women who, just like Sr. Pat,
bring this love to bear daily
in ministries from health care
and education to helping victims of sexual trafficking.
They are living out their
promise to God to put the
needs of others before their
own.
Like many moms and dads,
my wife and I have our anxious moments when we contemplate the future our
daughters will inherit. Again
like others, we pray for guidance. Then we send our
daughters to Sr. Pat. They arrive as unsure and unformed
girls—but leave as capable,
confident and well-educated
women.
And her thanks? To be used
as a punchline on late-night
TV.
Sr. Pat is not the type to
give something like this a second thought. She also knows
enough to know Mr. Kimmel
intended no malice. Still, she
deserves better.
A pity Mr. Kimmel and his
audience will settle for a
cheap laugh line like “Sr. Mary
Frances O’Brien.” Because if
they could bring themselves
to look just beyond the caricatures to the real-life Sr. Pats
and the institutions they run,
they would be astonished by
the strength, selflessness and
accomplishment they would
find.
Write to mcgurn@wsj.com.
Who Needs Calculus? Not High-Schoolers
By James Markarian
T
housands of American
high-school students on
Tuesday will take the
Advanced Placement calculus
exam. Many are probably
dreading it, perhaps seeing the
test as an attempt to show off
skills they will never use. What
if they’re right?
I started thinking about this
recently when my 14-year-old
daughter was doing her pre-calculus homework. I couldn’t help
wondering: Is this the best direction for children her age?
Students need skills to thrive in
the 21st-century workplace, and
I’m not convinced calculus is
high on that list. Sure, calculus
is essential for some careers,
particularly in physics and engineering. But few eighth-graders
are set on those fields.
It’s clear, on the other hand,
that the American economy
has entered a new age of data.
Workers increasingly must analyze reams of numbers to improve products, increase sales
or cut costs. Maybe high
schools should spend more
time on subjects like statistics
and probability.
The Labor Department estimates that “statistician” will
be one of the fastest-growing
job categories over the next
decade, faster than “software
developer” and “information
security analyst.” The pay isn’t
bad either: The median statistician made $84,060 in 2017.
They’d be better off
taking AP statistics
or computer science.
Yet in 2016 nearly 450,000
high-school students took an
AP calculus exam. Fewer than
half that took the statistics
test, and fewer still took an AP
exam in computer science.
Calculus classes have expanded dramatically in high
schools since the 1980s. Intense competition for elite colleges is probably pushing students to take calculus because
they hope it will increases
their chances of admission.
But if high schools “teach to
the test,” gearing classes to
help students pass the AP
exam, it could be counterproductive for students who wind
up choosing physics or engineering. When college comes
around, they may struggle if
they are allowed to skip firstsemester math classes even if
they haven’t truly grasped the
basics.
I’m not saying high schools
should stop teaching calculus,
but perhaps colleges should
reconsider awarding credit for
it. Changing the incentives
could encourage students to
take subjects relevant to their
ambitions. Statistics and probability are much easier to apply to real-world problems,
such as traffic analysis or election polling, which helps keep
adolescents engaged. Failing at
math is sometimes cited as an
“academic trip wire” that
causes students to drop out of
school.
There’s evidence that parents already favor a change in
curriculum. In a 2015 Gallup
poll, 9 of 10 parents said
computer science should be
taught in schools, but many
districts don’t teach it well.
The education system is not
aligned with the reality of today’s workplace.
One positive shift is that
outside opportunities for learning have greatly expanded. Millions of people world-wide have
signed up for MOOCs, massively open online courses,
which facilitate self-directed
study. Popular courses include
machine learning, data science,
and the programming language
R, which is widely used in data
science and statistics.
So spare a thought on Tuesday for the half-million teenagers drudging through derivatives. I hope the test gets them
into the colleges of their
dreams, but how much it will
help them build careers is uncertain. As for the next generation of high-schoolers: Statistics is calling. You might like it,
and it can get you a good-paying job—in all probability.
Mr. Markarian is chief technology officer of SnapLogic.
BOOKSHELF | By Andrew Nagorski
Anatomy
Of a Disaster
Chernobyl
By Serhii Plokhy
(Basic, 404 pages, $32)
M
onths before the explosion of a reactor at the
Chernobyl Nuclear Power Station on April 26, 1986,
Viktor Briukhanov, the plant’s director, told a
reporter: “Whatever you say, we are no ordinary enterprise.
God forbid that we suffer any serious mishap—I’m afraid
that not only Ukraine but the [Soviet] Union as a whole
would not be able to deal with such a disaster.” Briukhanov
had no idea how prophetic his words would be.
“The immediate cause of the Chernobyl accident was a
turbine test that went wrong,” Serhii Plokhy writes in his
gripping, meticulously researched account of the tragedy. “But
its deeper roots lay in the interaction between major flaws in
the Soviet political system and major flaws in the nuclear
industry.” Lax safety rules, for example, meant the reactor had
been constructed without the
kind of concrete shelter
standard in the West.
The accident released 500
times as much radiation as the
bomb dropped on Hiroshima,
contaminating large swathes of
territory in Ukraine, Belarus
and Russia. Although the initial
death toll was relatively low—
two dead in the explosion, 28
dead from radiation sickness
during the first four months—
thousands more have died since
of radiation-related causes.
“Chernobyl: The History of a
Nuclear Catastrophe” shows how the
nuclear energy sector and the political system
were largely discredited. It is no coincidence that the Soviet
Union collapsed a mere five years later.
Mr. Plokhy, who teaches Ukrainian history at Harvard,
mercilessly chronicles the absurdities of the Soviet system and
the arrogance of its apparatchiks. But the fact that he grew up
fewer than 500 kilometers south of Chernobyl probably
accounts for his vividly empathetic descriptions of the people
on the ground—the plant managers and employees, the firefighters, soldiers and others—who risked their lives to contain
the damage. One university classmate was sent to Chernobyl
as a policeman a few days after the explosion; he still spends
at least a month every year in the hospital.
When the reactor exploded, shortly after 1 a.m. on a
Saturday, two locals who were fishing in the plant’s cooling
pond watched the flames shooting up—and kept on fishing.
“They saw everything but realized nothing,” Mr. Plokhy writes.
They were far from alone in their blindness, and officials at all
levels worked hard to keep others in the dark. The KGB cut
phone lines from Prypiat, the town near the plant, so that
word of the accident would not spread. On Sunday seven
weddings were held in Prypiat, even as 132 people were
admitted to the hospital with signs of radiation poisoning.
Informed of the accident, Mikhail Gorbachev, the new
Kremlin leader, was not sufficiently concerned to call an
emergency meeting of the Politburo. Anatolii Maiorets, the
minister of energy and electrification, flew to Chernobyl on
Saturday and promptly dismissed calls for the evacuation of
the local population. “The danger is clearly exaggerated,” he
declared. But the scale of the unfolding disaster forced a
quick reversal of that decision.
The accident released 500 times as much
radiation as the bombing of Hiroshima. The
abandoned town feels like a Ukrainian Pompeii.
Prypiat’s citizens were told they would be allowed to
return in three days. In 1996, when I visited Chernobyl to
report on the 10th anniversary of the accident, Prypiat was
still a ghost town, with everything abandoned as it was on
evacuation day. That remains true today. As Mr. Plokhy
writes, the town has the feel of a modern-day Pompeii.
Chernobyl offered an object lesson in obfuscation and
lying. When scientists in Sweden detected rising levels of
radiation right after the explosion, Moscow remained silent.
TASS, the Soviet news agency, only issued a laconic statement nearly three days later, admitting that there was an
accident but making it sound like it was nothing extraordinary. There was still no information about radiation levels, or
advice for people in the region. Mr. Gorbachev later tried to
defend himself against charges of a deliberate cover-up. “We
simply did not know the whole truth yet,” he wrote in his
memoirs. But, as Mr. Plokhy points out, Mr. Gorbachev and
his team knew far more than they were willing to admit—and
the Soviet leader performed miserably in this crisis.
By the time of the annual May Day parade in Kiev,
radiation levels had risen dramatically in the Ukrainian
capital. Yet the Kremlin insisted on no change in plans,
ostensibly in order to prevent panic. When Ukrainian
Communist Party leader Volodymyr Shcherbytsky objected,
Mr. Gorbachev threatened to expel him from the party—a
political death sentence. The parade went on, with many
lightly dressed children accompanying their parents on that
warm sunny day. Mr. Plokhy writes that the unintended
consequence of the “radioactive” parade was “the loss of
legitimacy of the regime it was supposed to enhance.”
Mr. Gorbachev did not speak publicly about the accident
until May 14, when he berated the West for exploiting the
news for anti-Soviet propaganda. The regime then attempted
to deflect criticism by sentencing Briukhanov and other
Chernobyl personnel to prison terms. This was mostly scapegoating, as Mr. Plokhy convincingly demonstrates, and it
failed to stem growing resentment of Moscow’s control. Mr.
Gorbachev belatedly launched his policy of glasnost (openness), hoping to show the Soviet system could reform by
tolerating more honest public discussion. Instead, the pentup anger in Ukraine over Chernobyl, and a broad range of
other issues elsewhere, led to the rise of nationalist movements that tore the Soviet Union apart. “Chernobyl roused
our souls,” wrote the Ukrainian dissident poet Ivan Drach.
The collapse of the old regime produced new problems.
Russia decided it had no further responsibility for the
expensive clean-up. The plant was finally closed officially in
2000, and it took nearly three decades to complete a massive
new shelter over the damaged reactor, largely funded by
Western aid. As for the territory around the plant, Mr. Plokhy
writes that it will not be safe for human habitation for at
least 20,000 years. In that sense, the Soviet legacy lives on.
Mr. Nagorski served as Newsweek’s bureau chief in
Moscow and Berlin, among other postings. He is the author,
most recently, of “Hitlerland” and “The Nazi Hunters.”
.
THE WALL STREET JOURNAL.
A14 | Tuesday, May 15, 2018
OPINION
D
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Trump Lets ZTE Off the Hook
Trump Made Right Call on Iran Nuclear Deal
onald Trump vows to challenge China’s
The Chinese government owns ZTE through
trade abuses, but then how to explain other state-owned companies, several of them
his extraordinary intervention Sunday defense-related. Huawei’s ownership is unto rescue the Chinese telecom
clear, but it too has ties to the
An arbitrary
firm ZTE? The answer lies in
Chinese military. That raises
the arbitrary and transacsuspicion that Beijing knew
intervention hurts
tional nature of Mr. Trump’s
about the sanctions-busting
U.S. sanctions policy. and failed to stop it.
trade policy, which has economic and political costs.
ZTE and Huawei are also
Last month the Trump Adunder scrutiny in the U.S. and
ministration barred U.S. companies from sell- elsewhere because of concerns that their equiping to ZTE for seven years. But on Sunday Mr. ment could be used to spy on or sabotage netTrump tweeted that “President Xi of China, works. In 2012 the House Intelligence Commitand I, are working together to give massive tee stated that they “cannot be trusted to be free
Chinese phone company, ZTE, a way to get back of foreign state influence and thus pose a secuinto business, fast. Too many jobs in China lost. rity threat to the United States and to our sysCommerce Department has been instructed to tems.” The U.S. has effectively banned the comget it done!”
panies from government contracts.
The decision stunned even Mr. Trump’s inHuawei and ZTE are competing with U.S.
ner circle—not least because it undermines his firms to develop the next generation of mobile
own policy. The Commerce Department found communications, known as 5G. Under its Made
overwhelming proof that ZTE sold telecom in China 2025 industrial policy, Beijing offers
equipment containing U.S. technology to five subsidies and other aid to make the country a
embargoed countries: Iran, Sudan, North Ko- leader in the telecom industry. It has also presrea, Syria and Cuba.
sured the American company Qualcomm to give
In 2016 the Obama Administration banned up its telecom patents. These interventions vioZTE from buying U.S. components, which late World Trade Organization rules.
would effectively put the company out of busiMr. Trump tends to think of global politics
ness. Two weeks later it gave ZTE a second as a perpetual negotiation, and perhaps he figchance, and the company agreed to pay a $1.2 ures his ZTE reprieve will cause Mr. Xi to help
billion fine and punish the employees responsi- more on North Korea. China has agreed to reble. ZTE didn’t carry out the punishments, lied start its regulatory review of Qualcomm’s bid
to the U.S. and got caught again. Giving ZTE to acquire NXP Semiconductors, which had been
a third chance sets a terrible precedent. The put on hold amid trade friction. And the Journal
company used an elaborate system of shell reports that China may forgo the tariffs on U.S.
companies to deceive the U.S., and the decep- farm goods it has threatened to impose in retion came to light only after internal docu- sponse to U.S. steel tariffs.
ments leaked.
So the U.S. is giving a reprieve to ZTE in reThe Journal reported last month that the turn for China lifting tariffs it imposed in reU.S. Justice Department is investigating Hua- sponse to misguided U.S. tariffs. In other
wei, another Chinese company and the world’s words, Mr. Trump is undermining U.S. credibillargest supplier of telecom equipment, for vio- ity on sanctions in order to dodge tariff retalialating Iran sanctions. In 2012 Reuters reported tion on the U.S. Farm Belt that Mr. Trump inthat a Hong Kong-based Huawei partner of- vited with his protectionism. Meanwhile,
fered to sell Iran a Huawei-developed system there’s no sign so far that Mr. Xi is bending on
for monitoring communications.
IP theft or other predatory Chinese behavior.
R
The Issue Is Liberty, Not Gambling
easonable people can disagree whether straining states. But this is a distinction withsports gambling should be legal. But ev- out a difference, as Justice Samuel Alito exeryone who favors individual liberty plained in the majority’s unequivocal opinion
should agree with the Surestating the anti-commanpreme Court’s 7-2 decision on The Supreme Court says deering rule. This doctrine enMonday in Murphy v. NCAA Congress can’t command sures the Constitution’s orthat the Constitution prevents
dered liberty and promotes
state legislatures.
Congress from giving orders
political accountability.
to state legislatures.
“If a State imposes regulaCultural mores regarding
tions only because it has been
gambling have changed over the past century, commanded to do so by Congress, responsibiland one of the last remaining taboos is against ity is blurred,” Justice Alito wrote for the magambling on sports contests due to the oppor- jority. Congress may ban or restrict individuals
tunity for corrupting the competition. As from engaging in sports gambling, but “if it
more states legalized gambling, Congress in elects not to do so, each State is free to act on
1992 passed the Professional and Amateur its own.”
Sports Protection Act (Paspa) that made it ilThe Court’s full-throated defense of federallegal for states to authorize, promote or oper- ism should be welcome on both the political
ate sports gambling.
right and left. The pundit-moralists who claim
Fast forward two decades. In 2014 New Jer- the Court has legalized sports gambling are igsey legalized sports gambling to help Atlantic norant of the law; that policy choice will be
City casinos and raise revenue. The state plau- made by elected legislators or voters in refersibly argued that Paspa violated the Constitu- enda. It’s amazing how many journalists want
tion’s well-established anti-commandeering judges to be their overlords.
principle by regulating the conduct of state
The Court also determined that Paspa’s prolegislatures rather than of private individuals. hibition on sports gambling advertising can’t
In New York v. U.S. and Printz v. U.S., the Court be severed from the law. But as Justice Clarence
has held that “the Constitution does not em- Thomas noted in his pithy concurrence, the
power Congress to subject state government” Court’s severability analysis requires courts to
to “administer or enforce a federal regulatory make “a nebulous inquiry into hypothetical conprogram.”
gressional intent.” Although “no party in this
The Justice Department and NCAA, which case has asked us to reconsider these precechallenged New Jersey’s law, claimed that there dents, at some point, it behooves us to do so,”
is a difference between conscripting and re- Justice Thomas wrote. Indeed.
V
From Washington to Jerusalem
iolence marred the transfer of the U.S. lations with U.S. allies, and in the Middle East
Embassy in Israel to Jerusalem from Tel that has meant Israel and the Sunni Arabs in
Aviv on Monday, but the ceremony was Egypt and on the Arabian peninsula.
more excuse than cause. The
This is already paying diviTrump fulfilled a
Palestinians from Hamas who
dends in confronting Iran’s
protested along the Gaza borattempt to build an anti-Israel
campaign promise
der with Israel were continufront in Syria with missiles
that others wouldn’t. and Hezbollah militia on the
ing their eternal war against
the existence of the Jewish
northern Israeli border. Israel
state more than they care
struck back hard last week at
about where America puts its diplomats.
Iranian positions in Syria after Iran launched
The transfer of the U.S. Embassy had been missiles toward the Golan Heights. The mispromised by multiple Presidents and Ameri- siles were intercepted, but Prime Minister Bencan politicians over decades, including Bill jamin Netanyahu used the provocation to do
Clinton and George W. Bush. The difference significant damage to Iranian bases.
is that Donald Trump fulfilled his campaign
The U.S. issued full-throated support for
promise. No less a Trump critic than New York the Israeli strikes. Iran now has to think twice
Democrat Chuck Schumer, the Senate Minority about the risks it is willing to take in Syria and
Leader, proved the point Monday.
the Middle East, knowing that Mr. Trump has
“In a long overdue move, we have moved Israel’s back. This U.S. support for its friends
our embassy to Jerusalem. Every nation has also helped to improve ties, albeit quietly
should have the right to choose its capital,” and behind the scenes, between the Sunni
Mr. Schumer said in a statement. “I sponsored Arab states and Israel against their common
legislation to do this two decades ago, and I enemy of an imperial Iran.
applaud President Trump for doing it.”
As for peace in Palestine, that won’t happen
What he didn’t say is that while Mr. until the Palestinians decide that Israel isn’t
Schumer talked up his legislation at fund-rais- going away. This year marks the 70th annivering time, he muted his support during the sary of Israel’s founding, and its flourishing
Obama years. The embassy would never have into a prosperous democracy is one of the mirmoved without Mr. Trump’s willingness to acles of the last century. Its success is due to
defy political convention.
the spirit and courage of Israelis and the stalThe embassy transfer is also a symbolic re- wart backing of the United States.
affirmation of U.S. support for Israel. Ties beOn Tuesday the Palestinians will celebrate
tween the two countries frayed during Presi- this anniversary with the holiday they call
dent Obama’s two terms, as Mr. Obama made Nakba Day, or the Catastrophe. As long as this
concluding a nuclear deal with Iran his top—re- bitterness animates Palestinian society, its
ally, his only—Middle East priority. One of Mr. suffering will continue no matter where the
Trump’s projects has been to restore better re- U.S. locates its embassy.
Regarding your editorial “After
Obama’s Iran Deal” (May 9): Lost in
the current Iran deal debate is the
manner in which the agreement was
entered into. Although clearly a
treaty, President Obama and his
Democratic accomplices flipped the
constitutional requirement for approval by two-thirds of the Senate
on its head, instead requiring 60
votes to block the agreement. This
was one of a number of actions revealing President Obama’s disdain
for the separation of powers and
constitutional government. Usurping
Congress’s authority over immigration with DACA was another glaring
example. Elections do have consequences, but they are not coronations. Regardless of the merits of
each case, these misbegotten actions
were a direct assault on the Constitution and must be undone. Who
would have guessed that it would
take someone as unorthodox as President Trump to lead the government
back to regular order?
LAWRENCE BODENSTEIN
Bronx, N.Y.
more substance to Mr. Kerry’s recent
interactions with the government of
Iran. Of the many meetings Mr. Kerry
had with Iranian and other world
leaders both before the deal was
passed, and afterward when President Trump was deciding whether to
scuttle it, it should be of immense
interest to determine which of these
were legitimate, and which bordered
on collusion, collaboration or conspiracy and whether any criminal activity was involved.
MAX WISOTSKY
Highland Park, N.J.
When is the Trump administration
going to appoint a special counsel to
investigate John Kerry’s interactions
with the Iranians? Compared with
the continuing witch hunt looking
for, but not finding, Trump-Russia
collusion, there seems to be much
Maybe President Trump should
suggest to Angela Merkel that he’ll
listen to her on Iran sanction exemption when she listens to him on military spending.
PAUL EVERINGHAM
Hamilton, Australia
President Obama’s deal, in hockey
terms, was the equivalent of the
world saying to Iran that it could
play four against five for eight to 10
years, but after that it could return
to even strength. When Iran fired
missiles at the Israelis recently from
Syria, Iran showed that it has no
problem jumping out of the penalty
box. Good for President Trump for
putting Iran back in the box.
BRUCE MORRISON
Valencia, Calif.
Consider China in the Context of Nafta Talks
Regarding your editorial “The
Nafta Ultimatum Strategy” (May 4):
U.S. Trade Representative Robert
Lighthizer could negotiate an updated
North American Free Trade Agreement (Nafta) that retains the investor-state dispute settlement (ISDS)
mechanism.
Nafta has been vital to America’s
rise as an energy exporter. North
America’s integrated energy markets
have created economic incentives for
the U.S. to invest in energy production and export more to Canada and
Mexico. Mexico’s 2013 opening of its
energy sector to foreign and domestic investment presented a major opportunity to cement the North American energy partnership. Meanwhile,
China has been eyeing the Mexican
energy sector as it aims to further
expand its footprint throughout Latin
America. The Chinese National Offshore Oil Corp. already won two
Mexican offshore auction blocks in
December 2016.
Mr. Lighthizer’s push to eliminate
ISDS from Nafta would inhibit U.S.
companies in competition with China
to take advantage of Mexico’s energy
opportunities. Ensuring that the rules
remain unchanged over time lowers
the risk for U.S. investors. This takes
on even greater importance given the
criticisms of Mexico’s energy reforms
by the leading Mexican presidential
candidate, Andrés Manuel López Obrador. A Nafta without ISDS reduces
the motivation for American firms to
invest in the Mexican energy sector.
The alternative for Mexico would be
Chinese, Russian and other non-U.S.
investors.
Mexico, in part due to Nafta, has
been resistant to China’s steady economic advance in Latin America. In
renegotiating Nafta, the Trump administration should remember its economic rivalry with China for enhancing energy security and for cementing
a close partnership with two neighbors which will help the U.S. compete
more effectively.
EARL ANTHONY WAYNE
DAVID R. SHEDD
Washington
Democratic Leaders Have Known Since 2001
Regarding your editorial “Gina
Haspel’s CIA Crucible” (May 5): You
state that the Democratic leadership
was fully briefed during the
post-9/11 days. Later, they all came
forward to disparage the Bush administration’s torture tactics. Now
they can revisit the political theater
that helped them in the subsequent
elections. Ms. Haspel and President
Trump have the ability to declassify
those 17-year-old briefings at the
hearings and demonstrate the extreme outrage of our moral superiors. Fighting back against hypocrisy
involves more than nonstop emotive
tweets to “the base.”
JOE BOCCUZZI
Stamford, Conn.
After the events of 9/11 there was
an almost unanimous call for us to
Liberty University Is Right
To Invite President Trump
In her review of Adam Laats’s
“Fundamentalist U” (Bookshelf, May
7), Naomi Schaefer Riley notes that
much has been made of the incongruity of Liberty University’s choice of a
thrice-married adulterer with a foul
mouth, President Donald Trump, as
its commencement speaker in 2017.
Liberty’s inviting President Trump to
speak was in keeping with the Bible’s
recognition that all have sinned and
fallen short in this life. Let’s not forget that Jesus was friends with tax
collectors and prostitutes; perfect
people didn’t need him.
Furthermore, she opines that nondenominational Christian colleges
“have often defined themselves less
by their religious doctrines than by
their position as outsiders.” Donald
Trump was an outsider who won the
presidency; as president, he deserves
to be heard, thus he is a worthy commencement speaker despite his shortcomings. Let he who is without sin
cast the first stone.
STEPHANIE HOOPMAN
West Chester, Pa.
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.
do whatever it took to find and bring
to justice those responsible. For the
record, I and thousands of our airmen who attended the SERE (Survival-Evasion-Resistance-Escape)
program were subjected to “enhanced interrogation,” which included waterboarding.
COL. CHARLES BAKER, USAF (RET.)
Georgetown, Texas
Regarding “What’s at Stake in the
Attack on Haspel” by David Rivkin
and Lee Casey (op-ed, May 8): The
brouhaha over Ms. Haspel’s nomination can only add to the extreme caution that any federal official must, for
self-protection, be forced to exercise
in connection with the interrogation
of any future terrorist suspect.
If, as in the case of Ms. Haspel,
such officials cannot safely rely on
procedures approved and directed by
their superiors, then even being involved in any way in such an interrogation is risky. Regardless of the outcome of the Haspel nomination, it is
clear that the political left has succeeded in reinforcing the severe limits on the use of justified, non-lifethreatening measures to extract
intelligence from terrorists. What will
be said in the aftermath of a terrorist
attack that might have been thwarted
had not federal officials been hamstrung by concerns about being vilified at a later date? I can hardly
imagine a more tragic scenario.
CHRISTOPHER L. LAWLOR
Mequon, Wis.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“I detect a subtle bouquet of money.”
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | A15
OPINION
America Can’t Afford to Cede the Seas
By Seth Cropsey
Does the U.S. want to
continue as a great power?
China’s navy is set to
surpass our fleet by 2030.
The rapid growth and improvement of China’s naval forces is the
major challenge to American sea
dominance today, and likely for the
foreseeable future. Retired Capt.
James Fanell, former director of intelligence for the U.S. Pacific Fleet,
stated in 2015 that China’s combat
fleet will reach 415 ships in 2030. Beijing is particularly focused on adding
submarines, amphibious vessels and
small surface combatants. The
buildup demonstrates China’s clear
YONHAP NEWS/NEWSCOM VIA ZUMA PRESS
T
he escalating territorial
disputes in the Pacific between China and America’s
allies create an ever-moreurgent need for U.S. sea
power. But even as China rapidly expands and modernizes its navy, the
Trump administration has not proposed enough funds to maintain
America’s maritime advantage. Beginning with the coming 2019 federal
budget, the president and Congress
must commit to funding a full, modern fleet—or risk ceding essential
U.S. and allied interests.
American sea power has secured
the Pacific since the end of World War
II, assuring safe and open trade, while
defusing conflict throughout the region. Maintaining a powerful navy for
these ends is hardly an American innovation: No great state or empire
has ever retained its status without
pre-eminent sea power. The histories
of Athens, Venice, Spain, Holland and
England show that losing control of
the oceans leads ineluctably to losing
great-power status.
The USS Ronald Reagan, USS Nimitz and USS Theodore Roosevelt in 2017.
intention to dominate in coastal regions and amphibious operations—
domains in which the U.S. has preeminence today.
As Adm. Phil Davidson, nominated
to lead the U.S. Pacific Command,
told the Senate in April: China “is no
longer a rising power but an arrived
great power and peer competitor.” He
added that “China has undergone a
rapid military modernization over
the last three decades and is approaching parity in a number of critical areas; there is no guarantee that
the United States would win a future
conflict with China.”
The White House has proposed
expanding the U.S. Navy to 355 ships,
but its plan is too slow and underfunded. The full fleet would not be
complete until 2050 at the earliest.
Although President Trump proposes
to dedicate $20 billion for new ship
construction in 2019, and about the
same in constant dollars in each of
the next five years, the Congressional Budget Office estimates the project requires an additional $6.6 billion a year over the next 30 years.
Without increased funding, the fleet
will be smaller in three decades than
it is today, and China’s navy could
surpass it by 2030.
Americans would quickly see the
consequences of ceding power in the
Pacific. Already, China’s growing navy
may soon aim to control movement
around the first island chain in the
East China Sea, which stretches from
Japan to the Philippines.
If Beijing gains control of the region, it could hamper America’s coordination with its allies and cast doubt
on the U.S. security umbrella. The
White House would find it more difficult to prevent distant crises from escalating into direct threats. American
business around the world, meanwhile, would be decimated. China
would suddenly become the more appealing partner for trade and security.
The global maritime order, which has
long maintained that the East and
South China Seas are international
waters, would be replaced by a regional system based on “Chinese characteristics”—the euphemism by which
the Chinese Communist Party refers
to its brand of state control.
This is not a fait accompli; American sea power can be restored. But it
will require the U.S. to decide that its
status as the world’s great power is
worth preserving. The Navy’s evolutionary approach to modernizing its
fleet must be replaced by a revolutionary approach, increasing the current
fleet’s technological advantage. And
by 2035, the fleet should be expanded
to no fewer than 375 ships.
The U.S. must also prepare to engage China’s navy. That means situating U.S. forces within striking distance
of the East and South China Seas, with
enough troops on hand to police the
region effectively. It also means responding in kind to China’s existing
provocations. The U.S. should bolster
its military and naval support for Taiwan. The Pentagon should lean forward by actively planning to defend
the entire first island chain, as well as
to blockade the Southeast Asia straits,
through which oil from the Middle
East now flows to China.
Conflict may come sooner than
most Americans imagine. This month
alone, Beijing is reported to have
placed anti-ship cruise missiles and
surface-to-air missiles on three artificial islands in the South China Sea.
The U.S. also recently said that American military pilots in Djibouti have
been hit with lasers fired from a new
Chinese base. The Pentagon has filed
a diplomatic démarche requesting
that China investigate, but mere diplomacy won’t suffice in the game
Beijing is playing.
Timidity deters nothing. It encourages the increasing Chinese aggression. But so far America’s plans to upgrade the U.S. combat fleet have been
diffident. To remain the world’s dominant maritime force, U.S. sea power
will have to be trained, equipped and
exercised. On this rests the future of
the U.S. as a great power.
Mr. Cropsey is director of the Hudson Institute’s Center for American
Seapower. He was a naval officer and
a deputy undersecretary of the Navy
in the Reagan and George H.W. Bush
administrations.
The Day la Terre Stood Still
By George Melloan
I
t isn’t often that an entire country closes up shop for a month.
But that’s what happened in
France 50 years ago this month. I
covered the story for The Wall Street
Journal, but I’m still trying to figure
out what happened, and why events
unfolded the way they did.
France’s shutdown was, of course,
involuntary. Things came to a halt because of a nationwide general strike,
which began on May 2 with a student
uprising in Nanterre. The unrest
spread quickly to Paris and was inflamed irreversibly on May 6 when
the police invaded the Sorbonne’s
hallowed university precincts. Factory workers joined the movement
later that week, and in a short time
some 11 million people, 22% of the
population, were on strike. Refineries
shut down, denying the country fuel
for cars and aircraft. Flights were
canceled. Trains stopped running.
Ports were closed.
My colleague Roger Ricklefs, who
was covering France, wrote an article about what it was like to stay at
one of Paris’s grand hotels, Le Meurice, when it was empty of guests
and most of its staff. I was assigned
to leave my home base in London to
help Roger cover this massive manifestation d’opinion.
But how to get there, with no
flights or ferries? I hopped a plane
to Brussels, rented a fuel-frugal
Volkswagen, drove down to the
French border, bought a five-gallon
jerry can at an outdoor market in
Mons, fueled up the Volkswagen and
the jerry can, drove across the border to Maubeuge, hired an English
teacher as an interpreter and went to
work. We visited a factory and asked
the workers behind a locked gate if
we could interview them. They asked
the permission of their boss before
admitting us, which I thought betrayed a certain lack of militancy. I
couldn’t find much evidence of grievance either. Instead the workers gave
off an air of nonchalance, as if this
were something they did every day—
which for the French in that era was
almost literally true.
My hired interpreter was more
helpful in explaining the unrest. He
said his fellow teachers were rebelling against the centralized management of the schools by the authorities in Paris. University students, he
said, were fed up with an archaic
As France ground to a halt,
the protests seemed to be
about everything—or just a
love of talking revolution.
system in which they were supposed
to regard their professors as gods
whose superior wisdom was never to
be challenged. I noticed that the interpreter had a photograph of Lenin
on his dining room wall. Lenin was
big in France in those days.
After I met Roger at the Meurice,
he and I went to the Odeon Theatre,
having heard that this was more or
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the National Assembly and called new
elections for June. In a stern television lecture, the tall, imposing war
hero told his people to get back to
work. They did. I didn’t need my
emergency supply of gasoline to get
back to Brussels. The filling stations
were open again.
Was France changed by this massive spasm of discontent? I guess it
was, but not in the way that some
of the provocateurs had hoped. It
did not go communist. The Gaullist
Union for the Defense of the Republic, led by Georges Pompidou, won a
massive electoral victory. Today,
President Emmanuel Macron is trying to lead the nation toward a
more liberal practice of free-market
capitalism.
So maybe the revolutionaries of
May 1968 did get it right—by not
having a revolution after all.
Mr. Melloan is a former deputy
editor of the Journal editorial page
and author of “Free People, Free
Markets: How the Wall Street Journal Opinion Pages Shaped America,”
(Encounter, 2017).
Rebuilding Schools, Bridges—and Lives
By Richard Trumka
And Marty Walsh
I
t only takes a moment talking to
Emily Galvin, an apprentice with
Ironworkers Local 7 in Boston, to
grasp how her first year learning the
skilled trades has transformed her
life. For one, she has a fresh understanding of the anatomy of a city—of
roads, bridges and buildings. She’s
taking classes in structural steel, tension, rebar and labor history. “I love
how we use mats of rebar,” Ms. Galvin says, “to make reinforced concrete for floors or knee-walls, like for
a parking garage.”
As unions, businesses, engineers
and policy makers celebrate Infrastructure Week from May 14-21, we’re
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Editor in Chief
less the center of whatever it was we
were witnessing. Sure enough, the
Odeon was the scene of nonstop oratory about the meaning of revolution. There were Trotskyites, Maoists, Marxists and purveyors of many
other isms. There were lectures from
anticapitalists, anticonsumerists and
even anticommunists. The show was
nonstop, 24/7. I theorized that the
reason the French love to discuss
revolution so much is because the
one in 1789 didn’t turn out so well.
Perhaps the thought buried in the
French psyche is “next time we’ll get
it right.”
We went backstage at the Odeon
and interviewed a well-dressed, wellbred young man who we had been
told was a leader of the student
movement. He insisted that there
were no leaders, that it was all spontaneous. We asked what they were
rebelling against. “Our fathers, I suppose.” That made as much sense as
anything.
It all ended when France’s father
figure, President Charles de Gaulle,
returned from his temporary refuge at
a military base in Germany, dissolved
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reflecting on the investments that
add value to America. For every dollar a country spends on public infrastructure, it gets back nearly $3, according to a 2014 study from the
International Monetary Fund.
Keep this in mind when you hear
that the American Society of Civil Engineers, or ASCE, has called for $2
trillion to repair, renovate or replace
water lines, public schools, bridges
and mass transit systems. On top of
that, another $2 trillion could make
America the global leader in the infrastructure technologies of the future, such as high-speed rail and
smart utilities.
That kind of serious infrastructure
spending would create countless jobs
in manufacturing. Enacting ironclad
Buy America provisions would kickstart production in steel and other
battered industries, putting millions of
people to work and lifting wages.
These broad economic benefits explain
why year after year, the AFL-CIO joins
with the U.S. Chamber of Commerce to
ask Congress to invest in America’s
national infrastructure.
Public investments can also help
communities move toward economic
justice, as Boston’s experience shows.
Since 2014 Boston has approved more
than $20 billion in private construction, and the city is on track to increase its housing stock 20%. Meanwhile, unemployment has fallen from
6.1% in 2013 to only 3.1%, even while
income inequality dropped.
The mayor’s office is committed to
investing this success in the next
generation. Last year the city
launched a $1 billion program of
school building and renovation,
which includes the creation of purpose-built high schools focused on
science and technology, the arts, special education and more. No matter
their starting point, young people
with the right support can thrive in
the 21st century.
Boston is working to increase the
hiring of local residents, people of
color, and women on these projects
and others. Meanwhile, the region’s
unions have used pre-apprenticeship
programs to bring people from underrepresented communities into the
building trades. This is broadening
the power of collective bargaining by
making it available to more women
and people of color.
Ms. Galvin is a great example. For
10 years, she was stuck in low-wage
jobs. Then she learned about Building
Pathways, a pre-apprenticeship program founded in 2011 by the Boston
Building and Construction Trades
Council. After a few months, she got
a job as an ironworker apprentice.
She’s already saving for a down payment on a house, a goal that seemed
unattainable a few years ago.
When you see that the ASCE’s infrastructure report card gives the nation overall a D+, don’t hang your
head. The U.S. can get that grade up.
But it won’t happen with a plan like
President Trump’s, which would cut
Washington’s contribution to infrastructure projects from 80% to 20%,
quadrupling the burden on cashstrapped cities and states. The true
way forward is to do the opposite:
Put the federal government back in
the business of building America’s
future.
Mr. Trumka is president of the AFLCIO. Mr. Walsh is mayor of Boston
and a member of the Laborers’ International Union of North America.
In a Trade
War, It’s
Hard to Get
A Head
By Pete Coors
A
cold can of beer on a hot
summer day is as American as
it gets. But now that experience will cost you more, one of
many unfortunate effects of the 10%
tariff President Trump imposed on
aluminum imports in March.
I say this as a fourth-generation
brewer.
My
great-grandfather
founded the Coors family business
almost 150 years ago in Golden,
Colo. In 1958 my uncle Bill Coors,
now 101, led a team that created the
first aluminum beer can. He couldn’t
have imagined that his innovation
would be caught in the crossfire of
a trade war decades later.
Since January, as the president’s
tariff talk intensified, aluminum
prices have risen in the U.S., even
for domestic aluminum forged from
scrap. The price index for transport
and storage of aluminum has doubled. While some U.S. allies received
MillerCoors buys half a
billion pounds of aluminum
every year, and 28% of the
cost is a mysterious fee.
temporary exemptions, the policy is
already hurting businesses across
the country. As a leader in the $100
billion-a-year U.S. beer business, I’m
deeply concerned about a possible
pullback in expansion, acquisition
and innovation in the industry.
This can’t be what President
Trump—a shrewd businessman—
had in mind. At Molson Coors Brewing and its U.S. business, MillerCoors, we respect the president and
assume the best. We wonder: Why
fuss with tariffs? Is he working an
angle?
In “The Art of the Deal,” Mr.
Trump offers an oft-quoted line that
may explain his role in the tariff
turmoil: “The worst of times often
create the best opportunities to
make good deals.” Perhaps he is creating a crisis to talk America’s rivals
into fairer trade deals. The tariff,
which is ultimately a tax on American businesses and consumers, has
exposed inefficiencies and antiquated practices in the aluminum
industry. We have an opportunity to
modernize the market and offset the
new costs.
The U.S. aluminum market works
in strange ways. Other metals are
traded on the Chicago Board Options Exchange and the Chicago
Mercantile Exchange. This lends itself to transparent pricing. Meantime, aluminum pricing is opaque.
Commodities firms hoard aluminum,
wait for prices to rise and sell it at
higher rates. Two million tons of
aluminum is currently being stockpiled across the U.S., three times
what is produced in a year, according to a recent CNBC report.
Further, aluminum makers must
pay a mysterious fee atop all U.S.
orders: the Midwest Premium,
which is said to cover the cost of
transporting, storing and delivering
the metal. This premium has more
than doubled since January, up
140% to 23 cents per pound—even
though the tariffs did nothing to increase the costs the fee purportedly
tracks.
That 23 cents per pound is 28%
of the cost of aluminum at MillerCoors—and we buy half a billion
pounds of it every year. This artificially inflated premium could cost
us tens of millions of dollars each
year, far more than the cost of the
new Trump tariff. Apply that across
all uses in the U.S.—cans, cars, aircraft and more—and it comes to $4
billion a year in extra costs for the
U.S. economy.
Oddly enough, the Midwest Premium is a decades-old relic dictated by a single unregulated publisher, Platts, owned by Standard &
Poor’s. It is based on surveys of
traders that Platts declines to describe in detail. When Platts says
the premium has spiked, producers
wrap that extra cost into every
contract. Nice spread, unless you’re
the one paying for it. AnheuserBusch InBev CEO Carlos Brito has
urged Congress to intervene in a
way that “sheds light on the Midwest Premium.”
It is time to fix this mess and end
the premium once and for all. A private solution would be best—one
crafted by producers, buyers, market makers and customers like Molson Coors. Let us forge a new deal
on aluminum, to the benefit of a
hundred million fans of the most
American of beverages. President
Trump, are you with us?
Mr. Coors is chairman of the Molson Coors Brewing Co.
.
THE WALL STREET JOURNAL.
A16 | Tuesday, May 15, 2018
WORLD NEWS
Iraq Cleric Gains Sway After Upset Vote
Strong showing puts
Sadr, a critic of both
U.S. and Iran, in place
for a kingmaker’s role
ERBIL, Iraq—Populist cleric
Moqtada al-Sadr’s apparent political breakthrough in national
elections is forcing the U.S. and
Iran to confront the prospect
that a frequent critic of both is
poised to take the lead in selecting Iraq’s next premier.
In a vote seen as a contest
between the U.S. and Iran for
influence in Iraq, Mr. Sadr’s
strong showing in early, incomplete results scrambled the
political landscape. Prime Minister Haider al-Abadi, who had
implicit American support, and
Iran-aligned candidates lagged
behind Mr. Sadr’s unlikely alliance with Iraq’s communists.
A firebrand whose Mahdi
Army militia once fought U.S.
forces and was implicated in
sectarian bloodshed, Mr. Sadr
has since entered the mainstream with a nationalist message that rejects influence
from Iraq’s two biggest allies,
the U.S. and Iran.
Mr. Sadr has never held office, but is now expected to
play a kingmaker role in
choosing the next prime minister, avoiding direct involvement in politics.
Mr. Sadr is openly hostile
to the U.S., calling for American troops to leave the country. However, he has become
more pragmatic in recent
HADI MIZBAN/ASSOCIATED PRESS
BY ISABEL COLES
AND ALI NABHAN
Followers of Moqtada al-Sadr held posters of the Shiite cleric while celebrating election results in Baghdad’s Tahrir Square on Monday.
years, and some of his interests now may correspond
more closely with Washington’s than those of Iran.
He has engaged with Sunni
allies of the U.S. like Saudi
Arabia and shown support for
Mr. Abadi, who led the country to victory over Islamic
State and has sought to reach
across Iraq’s sectarian divide.
Mr. Sadr has put himself at
odds with Iran by saying Syrian President Bashar al-Assad
should go, and is against sending Iraqis to fight in Syria as
part of Iran’s so-called Resistance Front. He has also criticized Iran-backed Shiite militias in Iraq as undisciplined.
Politicians close to Mr. Sadr
have indicated he is most
likely to partner with Mr.
Abadi, a U.S. ally. It isn’t clear
what kind of policies a government of his design would pursue, but it would achieve a key
U.S. goal of blunting Tehran’s
influence over political decisions in Baghdad.
“The Iraqi political camp
that is closer to Iran’s interests has lost the electoral battle and the other camp has
won,” said Alaa Mustafa, a political analyst and professor at
Baghdad University.
With preliminary results
counted in all but two of Iraq’s
18 provinces, Mr. Sadr’s Sairun
coalition was near the top in
most of them. Results have yet
to be announced for the Kurdish province of Duhok and the
ethnically mixed Kirkuk.
Final results, including the
number of seats allocated to
each party, are expected in the
Israeli Strikes in Syria Test Russia-Iran Ties
MOSCOW—The Kremlin’s
military alliance with Tehran
in Syria is showing cracks after fierce Israeli strikes
against Iranian forces, testing
the limits of the relationship.
The Israeli attack—its biggest ever in Syria—came hours
after Israeli Prime Minister
Benjamin Netanyahu attended
Russian President Vladimir
Putin’s annual military parade
last week in Moscow. Russia’s
response to the strikes has
been muted, and the two leaders likely agreed on acceptable
targets, said Fyodor Lukyanov,
the head of a Kremlin advisory
body.
The rising hostilities with
Israel lay bare tensions in the
alliance between Moscow and
Tehran that turned the tide of
the Syrian conflict in favor of
President Bashar al-Assad. The
strategy helped Russia again
assert itself as a global power
and Iran to expand its influence in the Middle East.
Now, as Mr. Assad regains
control of much of the country, Russia and Iran have
shown how much their interests diverge in Syria. In particular, Russian analysts said,
Moscow has grown concerned
about Iran’s attempt to use
Allies Contend
For Conflict’s Spoils
Their alliance hasn’t prevented Iran and Russia from
competing for material resources.
Months after an Iranian
company thought it had secured the rights to help Syria
develop a phosphate mine
near Palmyra, that concession
was awarded to Russia, according to the Syria Report, a
Beirut-based publication that
tracks Syrian economic news.
ALEXEI DRUZHININ/TASS/ZUMA PRESS
BY THOMAS GROVE
AND RAJA ABDULRAHIM
Mr. Putin met with Iran’s President Rouhani in Tehran last year.
Syria as a beachhead to
threaten Israel and lean on
Lebanon, Jordan and the Palestinian Territories.
“Russia would like to see
Iran’s influence reduced in
Syria, especially since they
have radically different views
on what post-conflict Syria
should look like,” said Nikolay
Kozhanov, a former Russian
diplomat in Iran and a professor at the European University
at St. Petersburg.
The current tensions don’t
endanger the broader transactional relationship between
Iran and Russia in places including Afghanistan, Central
Asia and the Caspian region,
where both countries have
strong influence. Russia is
keen to work more closely
with Iran’s oil sector and
wants to raise its profile in
Iraq, where Iranian influence
is also strong, analysts said.
In Syria, their partnership
was designed to prevent Mr.
Assad falling the way of other
leaders did during the Arab
Spring. Even before Russia’s
military intervention, Iranian
delegations traveled to Moscow to hash out a strategy
marrying Iran’s ground presence and Russian air power.
“Iran has been happy to
have a partner like Russia
which had their back during
the sanctions regime,” said
Dina Esfandiary, an adjunct
fellow at the Center for Strategic and International Studies’
Middle East Program.
“But Iran knows it’s a pragmatic relationship and not an
ally that will stick with them
through thick and thin.”
The Kremlin said the Russia-Iran relationship can’t be
measured through the lens of
the Israel strikes. “They have
an independent dimension,”
said Kremlin spokesman
Dmitry Peskov of relations
with Iran.
An official at Iran’s United
Nations mission didn’t respond to a request to comment. Iranian officials have in
the past stressed their increasing closeness to Moscow
as the countries work together
in Syria.
But Russia sees the increasing presence of Iran near Israel’s border as a problem and
has tried to use its limited
sway over Iran to satisfy Israeli demands. Russia’s military, in turn, warned Iran that
it won’t provide air cover for
government troops or Iran’s
proxies that appear in southwestern Syria.
Moscow has even tried to
open informal diplomatic
channels between the two
countries, Mr. Kozhanov said.
He added that Moscow recently sent Russian citizens
with strong ties to Israel to
Tehran, in effect carrying messages from Israel.
A spokesman for Mr. Netanyahu declined to comment.
Mr. Netanyahu has tried to
forge a personal relationship
with Mr. Putin, visiting Moscow several times and trying
to convey the threat Israel
sees in Iran’s presence in
Syria.
—Asa Fitch in Dubai and
Felicia Schwartz in Tel Aviv
contributed to this article.
Catalonia Picks a Leader, Likely Ending Direct Rule
MADRID—Catalonia’s regional assembly elected a new
leader, likely clearing the way
for the Rajoy administration in
Madrid to end direct rule over
the restive region.
Lawmakers on Monday
elected Quim Torra, a hardline separatist, to lead the regional government in Barcelona, with 66 votes in favor
and 65 votes opposed. Four
lawmakers abstained.
Although separatists have
regained control of the assembly, an independent Catalonia
is an increasingly distant prospect after Spanish authorities
gained the upper hand in their
bid to quell the secessionist
movement.
Spanish prosecutors and
judges have successfully boxed
in the insurrection with legal
challenges, while the threat of
a reimposition of direct rule
has made many in the independence movement wary of
further direct confrontation
with Madrid.
It took the separatists five
months to choose Mr. Torra,
reflecting the deep divisions
that have plagued the independence movement since last
autumn, when separatists de-
TONI ALBIR/EFE/ZUMA PRESS
BY JEANNETTE NEUMANN
Quim Torra, center, in Barcelona on Monday, won a 66-65 vote to head Catalonia’s regional government.
clared unilateral independence
from Spain.
Prime Minister Mariano Rajoy responded by seizing temporary control of the region.
Spanish prosecutors sought
charges of rebellion and misuse of public funds against
many separatist leaders. That
drove Carles Puigdemont, the
former head of the region and
the leader of last autumn’s independence push, to flee
Spain.
Spanish courts have jailed
many other secessionist leaders while they await a trial expected this year.
Mr. Rajoy called regional
elections for Catalonia in December to replace Mr. Puigdemont’s government, which was
controlled by different separatist groups. The prime minister declared that Madrid
would lift direct rule once the
Catalans had elected a lawabiding leader.
Mr. Rajoy is likely to end direct rule in coming days, but
has pledged to reinstate control if separatists renew their
all-out drive for an indepen-
dent Catalan republic.
Direct rule is “a precedent
and a procedure that can be
used in the future if necessary,” Mr. Rajoy said on Friday.
“I hope it’s not necessary.”
In a speech on Monday, Mr.
Torra vowed to remain loyal to
the results of an October referendum on whether Catalonia
should become independent.
Separatists staged the vote,
which was declared illegal by
Spanish authorities, boycotted
by those opposing secession
and riddled with irregularities.
Catalan government officials said a majority of voters
supported secession and, a
couple of weeks later, declared
Catalonia independent, triggering one of Spain’s deepest
political crises in decades.
“Defending the [Catalan]
republic is defending each and
every one of us,” Mr. Torra
said.
However, some Catalans are
skeptical of talk of a republic
of Catalonia.
“Some say it [already] exists and other don’t see it anywhere,” said Eduard Garcia
Arias, a 38-year-old information-technology consultant in
Barcelona. “Legally, it appears
to be in the same place as Narnia—an imaginary republic.”
coming days. The Fateh alliance, representing Shiite militias with ties to Iran, appeared
to have finished second overall.
It was a disappointing showing
for Mr. Abadi, whose Victory
coalition was predicted to win
a plurality but came in third.
The results chart a comeback for Mr. Sadr that began
two years ago when his followers breached the blast walls
surrounding Iraq’s “Green
Zone”—the heavily fortified
center of Iraq’s government—
and invaded Parliament demanding an end to corruption.
Those protests gave birth to
Mr. Sadr’s coalition with the
Iraqi Communist Party for Saturday’s election.
As one of the few Iraqi politicians with a real popular base,
Mr. Sadr benefited from a historically low turnout, reflecting
deep disillusionment with the
political elite that has governed
the country since it became a
democracy 15 years ago.
“Sadr had a prophecy that
came true: He said people will
win over corrupt politicians and
that is what happened,” said
Razaq Hussein, a 24-year-old
Baghdad student who took part
in the Green Zone protest and
voted for Mr. Sadr on Saturday.
Iraq’s leaders face a daunting list of challenges, including
rebuilding areas devastated by
the war and preventing the resurgence of Islamic State. Iraq
needs more than $80 billion to
fix the damage done by Islamic State, the World Bank
says, but is struggling to attract foreign investment.
—Ghassan Adnan
contributed to this article.
WORLD WATCH
ITALY
Party Talks to Form
Coalition Hit a Snag
Two large antiestablishment
political parties sought more
time to complete a pact to form
a governing coalition and settle
on the name of a prime minister,
stalling the formation of a new
government.
The 5 Star Movement and
the League are in talks to band
together to form a new government more than two months after parliamentary elections. Over
the weekend, the parties
reached a broad policy agreement for a new government, although some differences surfaced on Monday.
The two parties are also still
negotiating over who will be
prime minister to lead a coalition
government. The leaders of each
party—5 Star’s Luigi Di Maio and
the League’s Matteo Salvini—
have agreed to find a third figure acceptable to both groups.
—Giovanni Legorano
UNITED KINGDOM
Spy Chief Calls for
Ongoing Joint Effort
Britain must strengthen intelligence sharing with other European states even after it leaves
the European Union, the head of
the country’s domestic intelligence agency told a security
conference in Germany.
MI5 chief Andrew Parker said
coordination was needed to disrupt Islamic terror plots at home
and on the Continent.
Speaking in Berlin, Mr. Parker
warned against “the loss of mutual capability or weakening of
collective effort” and called out
the Russian government for
what he said was its blending of
media manipulation, military
force and “criminal thuggery” in
operations outside its borders.
—Jenny Gross
NORTH KOREA
Defector Warns U.S.
Before June Summit
North Korea’s highest-profile
defector in two decades said
Kim Jong Un doesn’t share the
same concept of denuclearization as the U.S., as President
Donald Trump and the North Korean leader prepare for a scheduled June 12 meeting.
Thae Yong Ho, Pyongyang’s
deputy ambassador in London
before his defection to South
Korea two years ago, told reporters in Seoul on Monday that
North Korea was unlikely to
agree to Washington’s demand
for “complete, verifiable and irreversible denuclearization.”
Such a concession would
“strike at the core of North Korea’s power structure,” Mr. Thae
said.
—Yun-hwan Chae
.
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Calpers Investment Chief Readies Exit
BY HEATHER GILLERS
AND DAWN LIM
The investment chief of the
nation’s largest public pension
expects to leave his post by
the end of the year, the latest
in a series of executive exits
from the California Public Employees’ Retirement System.
Ted Eliopoulos, 54 years
old, made the surprise announcement at a public Calpers meeting Monday. The chief
investment officer attributed
the decision to “significant
health considerations” for his
younger daughter, who has
been accepted to a school in
New York. He and his wife plan
to move to be close to that
daughter.
“I want to make sure that
we give her every bit of support as we can as she makes
the transition back east,” said
Mr. Eliopoulos, who attended
Dartmouth College and the
University of Virginia.
Over the past four years Mr.
Eliopoulos led a retreat from
more expensive investments as
the giant retirement system
reduced return expectations,
cut costs and tried to better
protect the pension fund from
the next economic downturn.
His approach offered a contrast to forerunners who embraced a Wall Street-centered
investment approach as a way
of boosting returns.
Assets have swelled to more
than $355 billion from roughly
$300 billion during his tenure.
Returns reported by Calpers
have trailed U.S. public pen-
sion medians in each fiscal
year between 2015 and 2017 as
measured by the Wilshire
Trust Universe Comparison
Service database. Calpers is up
7.9% through the first three
quarters of fiscal 2018.
Mr. Eliopoulos’s announcement Monday follows a string
of high-profile staff changes
for Calpers, which is responsible for benefits to more than
1.9 million active or retired police officers, firefighters and
other public employees.
Other top Calpers investment officials that have recently left or announced plans
Shale Drillers Spread Their Bets
BY REBECCA ELLIOTT
Shale drillers are ramping
up production in the U.S. as oil
prices increase, moving beyond the West Texas oil field
that became the country’s
drilling center.
From Oklahoma to North
Dakota, companies are raising
investment in oil fields that
fell out of favor several years
ago, as $70-a-barrel crude
prices make fracking and horizontal drilling economical in
more places again.
While the Permian Basin in
Texas and New Mexico remains the fastest-growing
shale spot, congested pipelines
and shortages of labor and
materials there are crimping
profits, making other fields attractive alternatives.
EOG Resources Inc., a
shale-sector leader, is active in
the Permian but also in Colorado, North Dakota and Oklahoma. In Wyoming, it has built
up larger lease holdings and
expanded production over the
past two years.
Chief Executive Bill Thomas
recently touted the “diversified assets” of EOG’s portfolio
when discussing the company’s blockbuster first quarter, in which production rose
15% and profit surged over
2,000% from a year earlier.
“Last year it was all about,
‘How much can you put in the
Permian?’ ” said Daniel Romero, an analyst with energy
consulting firm Wood Mackenzie. “But now, a few months
later, it’s what else are you doing outside of the Permian?”
After oil prices declined
sharply in 2014, shale drillers
flocked to the Permian because it was the least expensive place in the U.S. to produce oil by fracking, thanks to
existing infrastructure and oilbearing rock stacked like a
layer cake, which allowed for
better yield per acre.
The oil-rig count there
INSIDE
SO-SO IPOS
POSE TEST FOR
CHINA’S TECH
OFFERINGS, B5
HEDGE FUNDS
BANKROLL
THEIR CRITICS
PHILANTHROPY, B10
Renewed Energy
Rising crude-oil prices have stoked shale-drilling activity outside the Permian Basin, the industry's center.
CANADA
Number of oil rigs in each basin
May 13, 2016
May 11, 2018
Williston
N .D.
MON T.
24
57
12
24
3
13
S .D.
WYO.
DJ Niobrara
N EB.
Denver
Granite Wash
Cana Woodford
COLO.
27
O K LA.
70
N.M.
Permian
TEXAS
Austin
133
200 miles
200 km
MEXICO
27
66
Note: Basins shown are those with 10 or more oil rigs.
Source: Baker Hughes
THE WALL STREET JOURNAL.
U.S. Energy Information Administration.
But rig counts have been
rising elsewhere, too, as prices
have gradually recovered. The
number of oil rigs in several
basins outside the Permian
has more than doubled over
the same period, according
Baker Hughes. The areas include North Dakota’s Bakken
region, the Eagle Ford in
South Texas and the Cana
Woodford in Oklahoma, home
to fields known as the Scoop
and the Stack.
Drilling exclusively in Oklahoma is Alta Mesa Resources
Inc., a company chaired by
former Anadarko Petroleum
Corp. CEO Jim Hackett, who
Please see SHALE page B2
STREETWISE | By James Mackintosh
Lies, Damn Lies and Inflation
Two central
banks are
responsible
for two
regions that
over the past
five years have had similar
inflation, similar job creation
and similar inflation targets.
One, the U.S. Federal
Reserve, has raised interest
rates six times. The other,
the European Central Bank,
is expected to increase next
year for the first time since
its mistake in 2011.
Anyone familiar with the
standard market narrative
will push back: Inflation has
been far lower in Europe and
unemployment far higher,
justifying the ECB’s
extraordinary monetary
measures, including negative
rates.
But the standard narrative
isn’t quite right. Measured
on the same basis, prices
have actually risen roughly
by the same amount in both
places. Unemployment is
more complicated, but,
likewise, has done basically
the same thing.
So why are the central
banks taking such radically
different approaches? One
Pension Profits
Calpers’ returns have varied
under the leadership
of Ted Eliopoulos.
12%
10
8
6
4
2
0
2014-’15 ’15-’16
’16-’17 ’17-’18*
*As of March 31
Source: the company
THE WALL STREET JOURNAL.
Goldman Overhauls
Storied Trading Unit
BY LIZ HOFFMAN
Goldman Sachs Group Inc.
is shaking up the leadership of
its powerful trading arm,
which was once the envy of
Wall Street but has struggled
in recent years.
Pablo Salame and Isabelle
Ealet, two of three executives
who oversee the division, will
leave the firm next month, according to an internal memo
reviewed by The Wall Street
Journal.
Monday’s shake-up leaves
Ashok Varadhan as the sole
head of the division and could
tee up an effective split of the
firm’s fixed-income and equities arms, an idea that has
gotten some discussion among
executives, according to people familiar with the matter.
The two executives couldn’t
be reached for comment.
Goldman’s securities division employs thousands of
traders, who manage positions
in assets ranging from bluechip stocks to global currencies, and salespeople, who
pitch the firm’s products and
investment ideas to clients.
The business has struggled
to regain its footing since the
financial crisis, leading Gold-
man to branch out into other
areas such as consumer banking and asset management.
New regulations have
crimped trading profits and a
long period of market calm
has sapped demand for the
complex products that are
Goldman’s specialty.
The division made $12 billion last year, down 18% from
2016 and just one-third of its
revenue in 2009, when it
pounced on retreating rivals
to post its most profitable
year on record.
The fixed-income and equities businesses have been
jointly managed since the
early 2000s, though power has
tended to rest with executives
from fixed income, a onetime
profit machine that launched
the career of Goldman’s chief
executive, Lloyd Blankfein.
Messrs. Salame and Varadhan
and Ms. Ealet each got their
starts there, too.
The departures thin the
ranks of experienced trading
executives at a time when David Solomon, an investment
banker, is poised to succeed
Mr. Blankfein as CEO. Mr. Solomon’s rival for the top job,
Harvey Schwartz, had previPlease see TRADES page B2
463
Eagle Ford
more than tripled over the
past two years, according to
oil-field services company
Baker Hughes, which tracks
rigs as a barometer of drilling
activity. Output surged to
roughly three million barrels
of oil a day—similar to the
output of Kuwait—from just
shy of two million barrels in
early 2016, according to the
to depart include longtime
fixed-income chief Curtis Ishii,
private-equity managing investment director Real Desrochers and chief operating investment
officer
Wylie
Tollette. Mr. Eliopoulos will
stay until his successor is
named.
The former deputy treasurer for California joined
Calpers in 2007 when he was
hired to oversee Calpers’s realestate portfolio amid a U.S.
housing collapse. He produced
a turnaround by favoring less
complex assets with stable
Please see EXIT page B2
Different Perspectives
Headline inflation measures are
constructed in very different
ways, with the U.S. putting much
more weight on housing costs.
12-month inflation rate
6%
U.S. CPI*
U.S. PCE†
Eurozone HICP‡
4
2
0
–2
2008
’10
’12
’14
’16
’18
*Consumer-price index
†Personal-consumption expenditures
‡Harmonized index of consumer prices
Source: Federal Reserve Bank of St. Louis
THE WALL STREET JOURNAL.
answer is that with no
inflation scare in either the
U.S. or eurozone, headline
numbers matter. And the
headline numbers certainly
look more hawkish from
Washington: 3.9%
unemployment, as many jobs
available as job seekers and
2.5% consumer-price
inflation. Eurozone
unemployment is 8.5% and
inflation sits at 1.2%, fitting
the basic market narrative.
A more nuanced look,
however, is illuminating.
Over the past five years the
eurozone actually created
more jobs than the U.S. Both
regions have roughly the
same unemployment as at
the peak of the dot-com
bubble and the lowest since
the 2008 financial crisis. But
workforce contraction in the
U.S. and expansion in Europe
make unemployment
numbers less useful than in
the past as a measure of how
tight the labor market is.
The base rate of
unemployment is likely to be
higher in the eurozone,
thanks to less flexible job
markets and language
barriers, so that isn’t
necessarily a reason to keep
money easy.
It is less well understood
that the inflation figures
have quite different
meanings, thanks to different
treatment of housing and, to
a lesser extent, health care.
The most dramatic difference
is housing: In the U.S.,
shelter makes up one-third of
the consumer-price index,
because it includes an
Please see STREET page B10
Tesla Team Weighed
Autopilot Safeguards
BY TIM HIGGINS
Long before the fatal crash of
a Tesla car in March, some developers of the vehicle’s Autopilot system expressed concern
there weren’t enough safeguards to ensure drivers remained attentive, people familiar with the discussions said.
Tesla Inc.’s engineers repeatedly discussed adding sensors that would ensure drivers
look at the road or keep their
hands on the wheel both before and after the driver-assistance system was introduced
in 2015, these people said.
Tesla executives including
Chief Executive Elon Musk rejected the ideas because of
costs and concerns that the
technology was ineffective or
would annoy drivers with
overly sensitive sensors that
would beep too often, the people said.
“Everyone at Tesla is not
only encouraged, but expected,
to provide criticism and feedback to ensure that we’re creating the best, safest cars on
the road,” a Tesla spokesman
said in a statement. “This is
especially true on the Autopilot team, where we make decisions based on what will improve safety and provide the
best customer experience, not
for any other reason.”
After this article was published online Monday, Mr.
Musk wrote on Twitter that
the company rejected technology that would track drivers’
eyes because it was ineffective, not because of the cost.
Generations of auto makers
have balanced adding new
safety features, such as antilock brakes and backup cameras, with associated costs.
Automated-driving technology
is developing rapidly, and auto
makers are rolling it out at
varying paces.
Automotive specialists and
federal safety investigators
have previously questioned
whether Tesla has done
enough to ensure safety with
Autopilot, a hallmark of
Please see TESLA page B4
Tesla will undergo a
restructuring............................... B4
AARON P. BERNSTEIN/REUTERS
Eliopoulos heads east
after shifting portfolio
from hedge funds,
reducing expectations
CEO Elon Musk said the proposed technology was ineffective.
.
B2 | Tuesday, May 15, 2018
INDEX TO BUSINESSES
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.
A
F
P
Activision Blizzard......B6
Adidas ......................... B6
Alibaba Group Holding
...................................B10
Allergan ............... B6,B12
Alphabet ................ B4,B5
Alta Mesa Resources.B1
Amazon.com...............A5
American International
Group.......................B12
Anadarko Petroleum...B1
Ant Financial Services
Group.......................B10
Apple...........................B4
AurKa Pharma .......... B12
Facebook................A1,B5
Fair Square FinancialB10
Fiat Chrysler
Automobiles ............. B3
Forest Laboratories....B6
Foxconn Technology....B4
Fraser & Neave Holdings
...................................B11
Pacific Investment
Management ............ A2
Padini Holdings.........B11
Penn National Gaming
...................................B11
Ping An Healthcare &
Technology................B5
Ping An Insurance
(Group) of China ...... B5
B
Baidu ........................... B5
Berkshire Partners ..... B6
C
Caesars Entertainment
...................................B11
Calpers.........................B1
Caterpillar ................. B11
CBS.......................B6,B12
Charlesbank Capital
Partners....................B6
Comcast.......................B6
Continental Resources
.....................................B2
D-E
Didi Chuxing Technology
.....................................B5
Dignity Health ............ B2
Eli Lilly ......................B12
EOG Resources ........... B1
G-H
Goldman Sachs Group B1
Hon Hai Precision
Industry.....................B4
I-J
IAC/InterActiveCorp...A2
Intel......................B5,B12
JinkoSolar Holding ... B12
JPMorgan Chase.......B10
L-M
Lyft.........................B4,B5
Mitsubishi Motor........B3
N
National Amusements
...................................B12
Nestlé Malaysia........B11
Neuberger Berman
Group.......................B10
New Balance...............B6
New Enterprise
Associates ................ B4
NXP Semiconductors..A1
Q-R
Qualcomm...................A1
Rangeley Capital ........ A5
Robert Bosch..............A1
Rockport......................B6
S-T
Spotify Technology
............................... A1,A9
Tesla.......................B1,B4
Toyota Motor..............B3
TransDigm Group........B6
Tumblr.........................A8
Twitter........................A8
U-V
Uber Technologies ...... B5
Viacom.................A1,B12
Volkswagen.................B3
W-X
O
Waymo........................B4
Westinghouse Electric
...................................B12
Wynn Resorts.............B6
Xiaomi.........................B5
1Malaysia Development
............................. A7,B11
Orogen Group............B10
Yu'e Bao....................B10
Ztest Electronics........A1
Y-Z
INDEX TO PEOPLE
A
G-H
P-R
Agran, Greg.................B2
Aguinis, Herman.........B6
Aquila, Samuel ........... B2
Archibong, Ime............B5
Aronson, Emary........B10
Axt, Deborah.............B10
Giffen, Dave..............B10
Gmelich, Justin...........B2
Grundfest, Joe..........B12
Habgood, Rob............B10
Hackett, Jim ............... B1
Howley, Nicholas........B6
Pandit, Vikram..........B10
Redstone, Shari........B12
Roberts, Brian.............B6
Russo, Paul.................B2
B
I-K
Bakish, Bob.................A4
Blankfein, Lloyd..........B1
Ishii, Curtis ................. B1
Kink, Michael............B10
Kotick, Robert.............B6
C
Chappelle, Hal.............B2
Cox, Jamie.................B11
D
Daffey, Michael...........B2
Desrochers, Real.........B1
E
Ealet, Isabelle.............B1
Eisman, Steve...........B10
Eliopoulos, Ted............B1
Esposito, Jim..............B2
L
Lafferty, David..........B11
Loeb, Daniel..............B10
M
Mahathir Mohamad..B11
Ma, Jack....................B10
McIntyre, Jack .......... B12
McNeill, Jon................B4
Moonves, Leslie..........B6
Musk, Elon.............B1,B4
EXIT
S
Saikawa, Hiroto..........B3
Salame, Pablo.............B1
Saunders, Brent..........B6
Schwartz, Harvey.......B1
Solomon, David...........B1
Swell, Mike...............B12
T-V
Thomas, Bill................B1
Tollette, Wylie............B1
Tudor Jones, Paul.....B10
Varadhan, Ashok.........B1
Viswanathan, Ravi......B4
W-Z
Wong, Danny ............ B11
Wynn, Steve...............B6
Zuckerberg, Mark.......A8
Steady Growth
Calpers assets
under management
Continued from the prior page
revenue and by reducing the
number of partnerships.
Mr. Eliopoulos became acting investment chief in early
2014 as his predecessor, Joseph Dear, stepped away from
his role due to an illness. Mr.
Dear died in February of that
year. Mr. Eliopoulos became
the permanent investment
chief in September 2014.
He didn’t waste any time
shaking things up. He called
for a re-evaluation of a hedge
fund portfolio championed by
Mr. Dear and eventually recommended all hedge-fund
holdings be sold.
That move marked a significant shift for the retirement
system. For decades Calpers
had plowed into alternatives to
stocks and bonds other systems once avoided because of
their risk: hedge funds, private
equity, timber and other commodities. Many other pensions
around the country followed as
Calpers emerged as a bellwether for investment trends.
$400 billion
300
200
100
0
2014-’15 ’15-’16 ’16-’17 ’17-’18*
*As of March 31
Source: the company
THE WALL STREET JOURNAL.
Mr. Eliopoulos’s strategy
was to make Calpers less complex as a way of avoiding certain problems it faced during
the last financial crisis when
some alternative holdings
didn’t perform as expected.
That meant undoing the
work of several predecessors.
The retirement system decided
to sever ties with many private
equity, real estate and other
outside firms handling its
money and explore other ways
to invest in private equity without traditional pooled funds.
BUSINESS & FINANCE
Hospital Deal Awaits Vatican Review
BY MELANIE EVANS
It isn’t just the Federal
Trade Commission scrutinizing U.S. health-care mergers
these days. The Vatican is
watching, too.
Some of the biggest recent
deals involve nonprofit hospitals affiliated with the Catholic Church, which make up
about 8% of U.S. hospitals.
Many began as small institutions founded by nuns more
than a century ago. But as
they have combined and
grown into large corporations,
they are posing new moral
quandaries for church officials, who have a say in which
mergers go ahead.
A proposed union between
Catholic Health Initiatives
and Dignity Health would create one of the largest U.S. hospital owners, with $28 billion
in annual revenue—exceeding
that of McDonald’s Corp., Kraft
Heinz Co. or Qualcomm Inc.
The deal won clearance
from several congregations of
nuns and two archbishops. But
daunted by the merger’s complexity, the archbishops in December also agreed to seek a
review by a higher authority:
the Vatican, which has the ultimate authority to reject or
modify deals. “They need to
know what’s going on” in
Rome as U.S. health care consolidates, said Denver Archbishop Samuel Aquila, who requested the Vatican review. No
decision has been made yet.
Officials at CHI and Dignity
declined to comment. The Vatican body responsible for the
review didn’t respond to a request for comment.
One big issue is the Catholic
Church’s prohibition of medical
care it considers immoral, such
as abortion, sterilization and
physician-assisted
suicide.
Catholic hospitals cannot perform such procedures. When
merging with non-Catholic hospitals, they must be kept separate from those services.
“The Catholic Church’s
moral position on issues that
are considered to be the standard of care” in secular hospitals requires “some really hard
TRADES
Continued from the prior page
ously run the trading business
and was seen as a skilled risk
manager.
Top executives weighed a
shake-up of the trading division’s leadership late last year,
a person familiar with the
matter said at the time. They
sought to balance the need for
a steady hand atop the unit—
which is a minefield of risk,
even years after the financial
crisis—with the hope that
changes would boost morale
and show clients and shareholders that Goldman was taking its slump seriously.
They opted instead for a
smaller reorganization lower
down the ranks, promoting
Justin Gmelich and Jim Esposito to be co-chief operating officers of the fixed-income unit.
That replicated a chain of
Church Blessing
Catholic Hospitals
The Catholic Church reviews mergers involving Catholic hospitals and
can object when they run afoul of church teaching.
Religious orders founded
numerous U.S. hospitals, which
remain affiliated with the
Catholic church.
InvestorCatholic
owned 20.4%
8.2%
1 THE NUNS
Catholic ties to one of the
biggest U.S. hospital mergers
start with religious orders that
founded some of Dignity
Health’s and Catholic Health
Initiatives’ hospitals.
Dignity
Health
Catholic Health
Initiatives
U.S.
community*
hospitals
Six religious orders have veto
power over deals for Dignity’s
Catholic hospitals.
Thirteen religious orders must approve
substantial changes to CHI’s mission, but
lack veto power over the Dignity merger.
2 THE ARCHBISHOPS
Archbishops of San Francisco
and Denver must grant a “nihil
obstat,” a declaration the
church has no moral objection
to a transaction. Objections can
derail a deal.
Archbishop of
San Francisco
Archbishop
of Denver
Nonprofit,
non-Catholic
50.3%
Government,
nonfederal
21.1%
*Excludes federal, long-term care, prison and
psychiatric hospitals
Source: American Hospital Association
THE WALL STREET JOURNAL.
Consults with eight bishops where
Dignity’s hospitals are located.
Consults with 33
bishops where
CHI hospitals are
located.
3 THE VATICAN
The Holy See’s highest doctrinal body, the
Congregation for the Doctrine of the Faith, may
object to a transaction if it violates church teaching.
Sources: Dignity Health; Catholic Health Initiatives;
the archbishops; IRS filings; bond investor disclosure
THE WALL STREET JOURNAL.
thinking and creative ways to
forge” secular-sacred unions,
said John Haas, president of
the National Catholic Bioethics
Center in Philadelphia, who advises bishops on health care.
There is also a risk that the
institutions could lose their
community ties as they grow,
eroding the humanity of medical care at the heart of Catholic teaching, Archbishop Aquila
said.
Pushback from the church
can derail a deal or send people
back to boardrooms to renegotiate the terms. The 2012 sale of
a Catholic hospital by Mercy,
based in St. Louis, to a nonCatholic, for-profit company,
ended after parties involved
said they anticipated “continued
challenges” to approvals needed
from the Vatican and FTC.
The Vatican in 2014 released new guidance for
health-care deals “to ensure
that Catholic health-care institutions neither cooperate immorally” with non-Catholic
partners “nor cause scandal as
a result of their collaboration
with such other entities.”
That guidance prompted the
U.S. Conference of Catholic
Bishops to begin revising its
health-care directives, which
detail how Catholic hospitals
should do business with nonCatholic providers that perform prohibited procedures.
The new directives are ex-
command already in place in
Goldman’s stock-trading arm.
Those two men will remain in
their roles, as will equities coCOOs Michael Daffey and Paul
Russo, according to Monday’s
memo.
Mr. Salame, a 52-year-old
Ecuador native, is a powerful
presence inside Goldman, sitting on the committee that selects new partners. Brainy and
blunt, he is known more for
his intellectual horsepower
and guru-style beard than his
rapport with clients, though he
spearheaded a customer
charm offensive last year designed to showcase a friendlier
Goldman.
He joined the firm’s New
York office in 1996 in emerging-markets trading and made
partner in 2000. Mr. Salame
has held his current job since
2008. He was considered for
the role of chief financial officer in 2013 but declined, according to people familiar
with the matter.
Ms. Ealet, French-born and
based in London, joined Goldman in 1991 as a commodities
trader and later ran that business. A partner since 2000,
she is the only woman running
a major division at Goldman
SHALE
Power has tended to
rest with executives
from fixed income,
once a profit machine.
but has kept a low profile,
both inside and outside the
firm. Ms. Ealet was awarded
the French government’s highest civilian honor in 2015.
The firm’s commodities
arm, which is viewed as being
in Ms. Ealet’s domain, struggled acutely last year, losing
money on natural gas and
pected as early as this summer.
Catholic acquisitions of
non-Catholic hospitals have
also drawn criticism from
some patient advocacy groups,
who say the unions threaten
access to reproductive and
other medical services that
the church bans. State attorneys general intervened in
some instances to ensure that
entities resulting from deals
involving Catholic and nonCatholic facilities would offer
reproductive services.
Catholic Health Initiatives,
based in Englewood, Colo., is
affiliated with the Catholic
Church. Dignity Health, based
in San Francisco, broke its formal church ties five years ago,
but some of its hospitals kept
their Catholic affiliation.
The archbishops awarded
the merger a nihil obstat, a
Latin term meaning they have
no moral objections to the
transaction. But the archbishops also sought a review by
the Vatican’s Congregation for
the Doctrine of the Faith. They
did so to ensure their analysis
had “no blind spots that [the
Vatican] might find unacceptable,” said San Francisco Archbishop Salvatore Cordileone.
—Francis X. Rocca
contributed to this article.
power bets. Goldman’s head of
commodities, Greg Agran, left
last year.
Mr. Varadhan remains for
now atop the securities division, though Monday’s memo
listed five other executives
who will jointly oversee the
day-to-day operations of the
unit.
He rose as a superstar
swaps trader and became one
of the youngest partners in
Goldman history at age 29. He
was among the firm’s highestpaid employees in the 2000s
trading boom, in some years
outearning Mr. Blankfein, his
then-neighbor at 15 Central
Park West.
Mr. Varadhan eventually
oversaw trading of interest
rates, currencies and emerging-market debt and became a
division head in 2014. A year
later, he was transferred to
London, a move at Goldman
that is meant to round out future leaders of the firm.
ADVERTISEMENT
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NOTICE OF SALE
DANIEL ACKER/BLOOMBERG NEWS
Continued from the prior page
went hunting for opportunities in shale with backing from
New York investors.
Hal Chappelle, Alta Mesa’s
CEO, said the company, which
has a working interest in more
than 130,000 acres in the
Stack formation, was drawn to
Oklahoma in part because of
lower leasing costs.
While top-tier land in the
Permian’s Delaware Basin sold
for an average of more than
$33,000 an acre last year,
property in the Scoop and
Stack cost roughly half as
much, according to energydata firms RS Energy Group
and 1Derrick.
“The Permian was seeing an
incredible amount of competition, and that was reflected in
acreage prices,” Mr. Chappelle
said.
While the Permian has experienced explosive growth,
pipeline construction hasn’t
kept pace, leading to bottlenecks that are making it difficult for some producers there
to move their oil to market.
Oil in Midland, Texas—
where the local price of crude
is set—recently sold for $12
to $15 below the price of
crude elsewhere in the U.S.,
according to Citi Research,
THE WALL STREET JOURNAL.
* ***
A pumpjack in North Dakota’s Bakken region, where drilling in oil-bearing shale has accelerated.
part of Citigroup Inc. The discount reflects the added cost
some face getting oil to refineries and export facilities out
of the region using trucks and
trains.
Some of the oil fields that
are growing, notably the Bakken and Eagle Ford, had been
popular among shale drillers
and experienced their own
bottleneck problems before
prices started falling in 2014.
After topping out at more than
$100 a barrel in June 2014, oil
prices plunged, falling below
$30 in early 2016 before
slowly recovering. The current
prices above $70 are the highest in more than three years.
Continental
Resources
Inc., which is focused in North
Dakota and Oklahoma, is benefiting from improved pipeline
capacity in those areas. It sold
crude produced in North Dakota at a discount to the main
U.S. oil benchmark, West
Texas Intermediate, of just
$4.31 a barrel, executives told
investors this month. In parts
of Oklahoma, that figure was
less than $2. Price differentials in the Bakken had become as wide as $28 a barrel
six years ago, according to the
EIA, as production outstripped
pipeline capacity.
“We are having infrastructure catch up with development in North Dakota and in
Oklahoma,” said Blu Hulsey,
the company’s senior vice
president of government and
regulatory affairs.
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THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | B3
* * * *
BUSINESS NEWS
BY CHESTER DAWSON
AND MIKE SPECTOR
Fiat Chrysler Automobiles
NV employees believed the
auto maker used illegal software in diesel-powered vehicles to cheat on U.S. emissions
tests and concealed it from
regulators, according to allegations by plaintiffs’ lawyers
in federal court documents unsealed Monday.
The documents cite communications by Fiat Chrysler officials as part of a deposition
request and refer to several
employees allegedly having
misgivings about the company’s use of software affecting emissions. The plaintiffs’
lawyers cite internal chat
rooms and external emails in
which employees allegedly discuss the use of “defeat devices,” which are emissioncontrol components that
improperly manipulate pollution emanating from tailpipes.
The disclosures, filed as
part of shareholder litigation
in Manhattan federal court,
follow allegations last year
from U.S. authorities and consumers that the Italian-U.S.
auto maker used such improper software to allow diesel-powered pickup trucks and
sport-utility vehicles to appear
to meet emissions standards
and then pollute far beyond legal limits on the road.
Fiat Chrysler, which has
consistently denied improperly
manipulating emissions since
allegations emerged more than
a year ago, said the statements
plaintiffs’ lawyers referenced
were taken out of context. “It
is inappropriate to draw conclusions from isolated communications and internal deliberations, without the more
detailed context that is part of
the reviews FCA is conducting
as part of the investigation
process,” the auto maker said.
CEO Favors an Independent Nissan
BY SEAN MCLAIN
AND WILLIAM BOSTON
YOKOHAMA, Japan—Nissan Motor Co. Chief Executive
Hiroto Saikawa said his company should remain independent, throwing up another obstacle to long-discussed merger
talks with alliance partner Renault SA.
Mr. Saikawa is emerging as
the most public opponent of a
full-blown combination. He
said Monday there were no official talks between the two
sides currently, but people familiar with the matter said
both sides are informally exploring a combination.
Mr. Saikawa, disclosing Nissan full-year results here, said
he would rather nothing
change, and didn’t want to
sacrifice the independence of
Nissan. Currently, the alliance,
which also now includes Mitsubishi Motor Co., operates as
three independent companies,
but the group cuts costs
through shared development
and purchasing.
“Are we forsaking those
two things for the future? No,
we are not,” Mr. Saikawa said.
Some shareholders and analysts say a merger is necessary
to ensure the survival of the
partnership, which helped drive
a rebound at both auto makers
nearly two decades ago.
But Carlos Ghosn—Renault’s chief executive and the
personality that brought the
two together in 1999—is stepping down in coming years. He
convinced the French government, a major Renault shareholder and board member, in
February to extend his contract another five years to
give him time to come up with
a plan to permanently seal the
alliance’s future.
Mr. Ghosn is supposed to
present that plan to Re-
in the group in terms of production. But Renault owns 43.4% of
Nissan, part of a complex crossshareholding agreement drafted
at a time when Nissan faced
bankruptcy. The Japanese auto
maker owns only a nonvoting
15% stake in the French firm.
That imbalance has become a
sore point in Japan.
Nissan also owns 34% of
Mitsubishi, the third leg of the
alliance. It pumped out 10.6
million cars in 2017, just behind Volkswagen AG and
ahead of Toyota Motor Corp.
Mr. Ghosn has said publicly
that a merger is only one of
several possibilities for the future and isn’t the best option.
People familiar with the continuing informal merger talks,
though, say he is more open to
the idea than his public comments suggest.
Renault declined to make
Mr. Ghosn available to comment.
Tangled Web
Members of a three-way auto alliance are looking at ways to rebalance
its shareholding structure, which currently is dominated by Renault.
Shareholding structure
Annual vehicle sales
12 million vehicles
2017
10
Mitsubishi
Motors
1.0 million
8
6
Renault
3.8
4
Nissan
5.8
Renault
Nissan
43.4%
15%
15.01%
French
government
34%
2
0
Mitsubishi
Motors
2013 ’14 ’15 ’16 ’17
THE WALL STREET JOURNAL.
Source: the companies
nault’s core shareholders
ahead of their general meeting next month. Mr. Saikawa
and others oppose a merger
but say the alliance needs a
charismatic leader like Mr.
Ghosn, and firmer architecture, to keep it together in
the future.
Nissan is the bigger company
BUSINESS WATCH
FUJIFILM HOLDINGS
AUTOS
Company Promises
Fight for Xerox Deal
Car Makers Miss
Deadline on Air Bags
Fujifilm Holdings Corp. said
on Monday that it would continue to fight for a merger with
Xerox Corp. and present its offer
again to Xerox’s new management, but it won’t sweeten the
terms.
Xerox on Sunday said it would
back out of a deal reached in
January, under which Fujifilm was
to have taken a majority stake in
the U.S. company. Xerox said it
reached a new settlement with
two of its biggest shareholders
who oppose the January deal.
The settlement calls for Xerox to
replace its chief executive and
overhaul its board.
The shareholders, Carl Icahn
and Darwin Deason, have said
they would look favorably on a
deal to sell Xerox if the buyer
paid $40 a share in cash. Xerox
shares closed last week at $30.17.
—Mayumi Negishi
RYAN CHRISTOPHER JONES FOR THE WALL STREET JOURNAL
Suit Says
Fiat Staff
Knew of
Cheating
Target aims to cut its replenishment cycle to hours from days and lower its inventory.
TARGET
Retailer Seeks
To Speed Restocking
Target Corp. is testing a new
distribution strategy to speed restocking.
The aim is to pare what Target calls its replenishment cycle
from days to hours and reduce
inventory, especially at the retailer’s small-format stores and
locations in denser urban areas.
Under the strategy, the company sends shipments to stores
more frequently and in smaller
lots tailored more precisely to
demand, Preston Mosier, senior
vice president of global supply
chain and logistics field operations, said Thursday at an industry conference in New York.
—Jennifer Smith
A dozen auto makers failed
to meet a deadline to repair millions of air bags that risk exploding in crashes.
Under a government order,
auto makers were required to
address by the end of 2017 vehicles with Takata Corp. air
bags at the highest risk of rupturing and spraying metal
shards. The National Highway
Traffic Safety Administration
said Monday the agency had
contacted 12 auto makers to ensure “repairs are completed immediately.”
The dozen auto makers include Ford Motor Co., Nissan
Motor Co. and General Motors
Co., among others.
Ford and Nissan said they
were cooperating with regulators
and urged consumers to seek repairs. GM declined to comment.
—Mike Spector
YOUR LENS DETERMINES YOUR PERSPECTIVE
BROADEN YOUR EXPOSURE
Develop a truly global
investment portfolio.
U.S. investors tend to put their money where
they are most comfortable, commonly leading
to a home bias in portfolios. Our proprietary
database of thousands of client portfolios shows
average overseas allocations at only half the size
of the actual overseas markets.
Not only does international exposure offer
diversification across geographies, it adds the
benefit of exposure across a broad range of
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Janus Henderson has the expertise to help you
develop a truly global investment portfolio.
Global Equity Income Fund (HFQIX)
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To learn more about our insights, visit
blog.janushenderson.com
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and
other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info. Read it carefully before you invest or send money.
Investing involves risk, including the possible loss of principal and fluctuation of value.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards,
all of which are magnified in emerging markets.
Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
Janus Henderson is a trademark of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and
Janus International Holding LLC. Janus Henderson Distributors.
C-0917-12272 09-15-18
.
THE WALL STREET JOURNAL.
B4 | Tuesday, May 15, 2018
TECHNOLOGY
WSJ.com/Tech
Plans
Foxconn Feels Chill as Apple Slips NEA
$1 Billion
Assembler of iPhone
says profit sank 15%
amid slower growth
in device’s shipments
BEIJING—Foxconn Technology Group posted a worsethan-expected 15% drop in
first-quarter net profit after
Apple Inc., its biggest customer,
reported
modest
growth in iPhone shipments.
Taiwan-based Foxconn said
Monday that profit for its January-through-March period
was 24.1 billion New Taiwan
dollars (US$810 million), below the NT$25.4 billion average estimate of analysts polled
by S&P Capital IQ. The company’s net profit totaled
NT$28.2 billion a year earlier.
Revenue rose 5.5% to NT$1
trillion from NT$975 billion.
MAO SIQIAN/XINHUA/ZUMA PRESS
BY YOKO KUBOTA
A Foxconn factory in China. Apple generated 54% of the Taiwan-based company’s revenue last year.
Foxconn, known formally as
Hon Hai Precision Industry
Co., is the world’s largest contract electronics maker and
assembles Apple’s iPhone X,
among other products. Its results, at times, offer a glimpse
into Apple’s iPhone business.
Last year, Foxconn relied on
Apple for approximately 54%
of its revenue, according to
Arthur Liao, an analyst at Fubon Research.
Foxconn Chairman Terry
Gou has been working to ex-
pand the company’s business
beyond contract manufacturing and into consumer brands
of its own.
Apple doesn’t offer a breakdown of shipments by iPhone
models. But recently, the
growth rate for the number of
iPhones Apple ships has
slowed down.
For the quarter that ended
in March, Apple posted a modest 3% increase in the number
of iPhones shipped.
Yet Apple’s revenue from
the iPhone rose 14% to $38 billion during that period, as the
$1,000 iPhone X launched last
year helped to drive up average prices.
Foxconn said Friday that it
would reduce its capital by
20% and offer dividends.
Shares in Foxconn closed at
NT$78 in Taipei on Monday,
up less than 1%.
Foxconn doesn’t hold earnings calls or briefings.
Continued from page B1
Tesla’s electric vehicles. Autopilot uses cameras, sensors
and radar to control vehicle
speed and steering under certain conditions, but doesn’t
take over full control of driving. Tesla’s position is that
cars with the Autopilot system
are safer than cars without it.
The March 23 crash of a
Tesla Model X sport-utility vehicle occurred south of San
Francisco while Autopilot was
activated, killing the driver.
The crash is under investigation by U.S. transportationsafety agencies. Tesla said the
driver received several system
warnings to put his hands on
the wheel and had at least five
seconds to do so before the
car slammed into a highway
divider.
The company’s owners manuals emphasize that Autopilot
has limitations, such as an inability to spot standing objects.
Drivers must acknowledge on
the car’s touch screen that it is
their responsibility to stay alert
and maintain control. Visual
and audio warnings remind
them to stay engaged.
Some self-driving car experts say partly autonomous
driving systems like Autopilot
give drivers a false sense of
confidence that they can turn
their attention elsewhere.
Mr. Musk alluded to the
complacency issue in a May 2
call with analysts, while repeating Tesla’s view that Autopilot makes its cars safer
than conventional automobiles. “When there is a serious
accident, it is almost always,
in fact, maybe always the case,
that it is an experienced user,”
Mr. Musk said. “And the issue
is…more one of complacency,
like we get too used to it.”
Such concerns have persisted within Tesla, people familiar with the Autopilot effort said, and intensified in
2016, after 40-year-old Joshua
Brown died in Florida when
his Model S sedan, with Autopilot activated, struck a semitrailer truck that was crossing
a divided highway.
Tesla, worried that Autopilot gave drivers a false sense
of security, brought in suppli-
SIPA ASIA/ZUMA PRESS
TESLA
A Model X on display last year in China. Generations of auto makers have balanced the pros and cons of adding new safety features.
ers to discuss ways to ensure
drivers pay attention, some of
the people said.
One idea was sensors to
track drivers’ eyes to ensure
they watch the road. Tesla executives questioned the costs
of such a system, which typically includes a camera and infrared sensor, and whether it
would be ready for deployment, these people said. Another concern was whether
the sensors could reliably detect drivers of varying heights.
Another measure the Autopilot team considered was incorporating sensors into the
steering wheel to monitor
whether drivers’ hands were
touching it at all times, these
people said.
Autopilot already has a sensor to capture small movements of the steering wheel to
gauge whether drivers are
holding it. But drivers can
quickly touch the wheel to
stop the dashboard warnings
for a few minutes.
“It came down to cost, and
Elon was confident we wouldn’t
need it,” one of those people
said. Executives conveyed there
was pressure for each vehicle
to reach a certain profit margin, according to the people familiar with the matter.
Tesla in 2016 was gearing
up to launch the Model 3 with
a starting price of $35,000,
much lower than previous
Tesla to ‘Flatten’
Manager Structure
Tesla Inc. will restructure
and flatten its management,
Chief Executive Elon Musk told
employees Monday, as the Silicon Valley auto maker struggles to boost production of its
Model 3 sedan amid an exodus
of top leaders
Mr. Musk made the announcement following news
that his engineering chief, Doug
Field, was taking a leave of absence, and that senior executive Matthew Schwall was
leaving the company for Alphabet Inc.’s driverless-car division
Waymo.
“To ensure that Tesla is well
prepared for the future, we
have been undertaking a thorough reorganization of our
company,” Mr. Musk said in the
memo reviewed by The Wall
Street Journal. “As part of the
reorg, we are flattening the
management structure to improve communication, combining functions where sensible
and trimming activities that are
not vital to the success of our
mission.”
He added that the company
will continue to hire workers. In
early May, Mr. Musk alluded to
a reorganization when he discussed cutting down on the
number of contract workers.
Under a flat management
structure, employees work for
top leaders with few layers of
managers in between. But at
Tesla, Mr. Musk is already in
the trenches, sleeping on the
factory floor as he tries to increase production of the Model
3, which began assembly last
July and is months behind in
reaching milestones.
Mr. Musk already has taken
command of several significant
roles.
In February, the CEO announced the company’s sales
and service divisions would report directly to him following
the departure of Jon McNeill,
Tesla’s president of global sales,
marketing and delivery and service. He left to become chief
operating officer at ride-hailing
service Lyft Inc.
Tesla vehicles. Tesla has targeted a 25% gross margin for
when it began production, and
aims to improve it over time.
“We’ve explored many technologies and opted for the
combination of a hands-onwheel torsion sensor with visual and audio alerts, and we
will of course continue to evaluate new technologies as we
evolve the Tesla fleet over
time,” the Tesla spokesman
said Thursday.
Mr. Musk has argued Tesla
shouldn’t delay deployment of
Autopilot given its potential to
save lives. In July 2016, about
two months after Mr. Brown’s
crash, Mr. Musk wrote it would
be “morally reprehensible” to
move slowly because of media
scrutiny or legal liability.
In September 2016, Tesla
wirelessly updated the Autopilot software in its cars. Among
other improvements, it implemented a protocol that disables the system after warning
a driver three times over several minutes without result.
Federal safety investigators
in 2017 found that Mr. Brown
put his hands on the wheel for
a total of 25 seconds during the
37 minutes Autopilot was on,
and received 13 warnings to
keep his hands on the wheel.
Autopilot never deactivated.
The National Transportation Safety Board said Autopilot lacked “an effective
method of ensuring driver
engagement” by allowing
drivers to ignore warnings
and keep their hands off the
wheel for up to five minutes
at a time. It also said Tesla’s
steering-sensor
system
doesn’t ensure a driver is
watching the road.
Stake Sale
In Startups
BY ROLFE WINKLER
AND ELIOT BROWN
New Enterprise Associates, one of Silicon Valley’s
largest venture-capital firms,
plans to sell off a big chunk of
its startup investments in response to a dearth of initial
public offerings, according to
people familiar with the discussions.
The firm plans to sell
roughly $1 billion worth of its
stakes in about 20 startups to
a new firm it is seeking to create, one of the people said, in
an effort to return capital to
its limited-partner investors.
These companies will mostly
be those that initially raised
money from NEA about eight
to 10 years ago.
If completed, the so-called
secondary sale would be one
of the biggest ever from a venture firm, according to analysts, reflecting the industry’s
pressure to deliver returns to
its investors amid an era of
historically fewer IPOs.
The new vehicle would operate independently from the
firm, the people said. One of
the firm’s general partners,
Ravi Viswanathan, would leave
NEA to run it. Some of the
capital would be reserved to
make follow-on investments or
to buy shares from employees,
these people added.
The new firm is expected to
manage the investments in the
underlying companies, a departure from more common
secondary deals where venture
firms transfer the ownership
interest in the startups but
continue to manage them.
The people familiar with
the deal cautioned that it
hasn’t been finalized, including the size of the transaction.
Since the new firm would be
closely related to NEA, one
challenge could be managing
possible conflicts that could
arise as the two entities hash
out the price to be paid for the
assets, analysts say.
Potential investors in the
new fund couldn’t be learned.
NEA may hold an ownership
interest in the new vehicle,
but that remains to be worked
out, one of the people said.
NEA, founded in 1977, is a
giant in Silicon Valley. Last
year it raised the largest U.S.
venture fund on record at $3.3
billion, and it currently has
more than 300 active investments in companies across
tech and health care.
Venture firms typically
raise new funds every three
years or so, each one investing
in startups with the aim to return capital to their investors
and wind down after 10 to 12
years.
The venture funds make
their gains mostly when startups go public or get acquired.
But in recent years, companies
are choosing to stay private
and independent for longer
periods, limiting venture investors’ ability to cash in
gains for the limited partners
in their funds.
—Katie Roof
contributed to this article.
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | B5
TECHNOLOGY
Lackluster IPOs
Test Plansfor
ChinaTechOffers
HONG KONG—More than a
dozen technology companies
from China are rushing to go
public abroad, an enticing opportunity for investors but one
that has generated poor returns recently.
Shares of most Asian tech
companies that have listed in
New York and Hong Kong since
the start of 2017 have notched
lackluster performances, with
the bulk trading below their
initial public offering prices after strong early gains.
That could pose challenges
for the many private Chinese
tech companies hoping to take
advantage of buoyant markets
to go public. Together, these
companies could sell at least
$50 billion in new shares if
they list in the coming months.
The first will likely be smartphone maker Xiaomi Corp.,
which recently filed paperwork
for a Hong Kong listing.
Xiaomi is hoping to raise at
least $10 billion in what could
be the world’s largest IPO since
2014, and it is targeting a $70
billion to $80 billion valuation,
people familiar with the matter
previously told The Wall Street
Journal. That is down from a
previous goal of $100 billion.
Some bankers and deal advisers say Xiaomi’s coming
share sale will serve as a bellwether for other large tech
unicorns, or private companies
with valuations above $1 billion. If Xiaomi’s IPO and trading debut don’t go well, that
might lead other companies to
Newly listed Asian tech
companies in the U.S. and Hong
Kong have underperformed
broader IPO markets, measured
from IPO prices.
32%
22%
ANTHONY KWAN/BLOOMBERG NEWS
BY STEVEN RUSSOLILLO
AND JULIE STEINBERG
Falling Short
Ping An Healthcare & Technology CEO Wang Tao celebrated its Hong Kong IPO this month.
The six Asian tech IPOs in
Hong Kong are down 8.3% on
average from their IPO prices
through Friday’s closing, while
the 10 that listed in New York
are averaging a 9.6% decline.
Their performance contrasts
with newly listed companies
broadly, which have notched
up average gains of 32% in
Hong Kong and 22% in New
York over the period, Dealogic
reconsider their timing and
valuation targets.
Some 16 Asian tech or internet companies have raised
more than $100 million in IPOs
in New York or Hong Kong
since the start of 2017. Shares
of 12 of them—which are
mostly from China—are trading below their offering prices,
according to data from Dealogic and FactSet.
says.
Some Chinese tech IPOs
have drawn high subscription
rates, but that hasn’t always
translated into outperformance
after listing.
Ping An Healthcare &
Technology Co., a unit of Chinese financial giant Ping An
Insurance (Group) Co. of
China Ltd., had a weak trading
debut this month after raising
IPO
market
0
-8.3%
-9.6%
Hong Kong
U.S.
Asian
tech IPOs
Note: All IPO data represent deal sizes of at
least $100 million since the start of 2017
through Friday.
Sources: Dealogic; FactSet
THE WALL STREET JOURNAL.
$1.1 billion in a highly subscribed IPO in Hong Kong.
Shares of the company,
which operates an online
health platform called Good
Doctor, fell as much as 8.9%
below their IPO price in the
first few days of trading before
regaining ground. They traded
at HK$54.70, or US$6.97,
through Friday, a hair below
their IPO price of HK$54.80.
California Clears Didi’s Self-Drive Tests Facebook Probe Leads
China’s ride-sharing giant
Didi Chuxing Technology Co.
was approved to launch live
trials of autonomous vehicles
on roads in California, becoming the latest company to
explore advanced driving
technology in the U.S. as
safety concerns remain in the
spotlight.
Didi joins a list of established and young technology
and automotive companies
that are allowed to test drive
autonomous vehicles on California roads with a safety
driver present. The California
Department of Motor Vehicles said there are 53 companies with permits, including
ride-hailing company Lyft
Inc., Intel Corp., Alphabet
Inc.’s Waymo and Chinese internet-search company Baidu
Inc.
CARLOS JASSO/REUTERS
BY AUSTEN HUFFORD
Didi joins other companies testing autonomous vehicles in the U.S.
Didi opened its main U.S.
research facility in Mountain
View, Calif., last year to focus
on developing artificial intelligence, including for autonomous driving. The approval
from the California state regulator is the company’s first
license for testing on public
roads in the U.S.
“We have been testing our
vehicles in closed internal en-
vironment for a while,” Didi
senior communications director Liang Sun said in an
email.
The company is still finalizing its plans to begin U.S.
road trials but said it would
be done in a “prudent and
safety-first” manner.
Uber Technologies Inc. let
its own permit lapse in California at the end of March after one of its self-driving vehicles struck and killed a
pedestrian crossing a street
in Arizona.
In 2016, Didi acquired
Uber’s China operations after
a costly battle for dominance
in the Chinese market.
The Wall Street Journal
reported last month that Didi
is holding discussions about
potentially
having
a
multibillion-dollar
initial
public offering as early as
this year.
To 200 App Suspensions
BY MARIA ARMENTAL
Facebook Inc. has suspended some 200 applications
for suspected misuse of users’
information shared on or
through Facebook, the company said Monday.
The apps, which Facebook
didn’t name, are among thousands Facebook has examined
so far in an investigation of
outside developers.
The company began the
probe after reports that Cambridge Analytica, which worked
with the Trump campaign during the 2016 presidential election, had improperly obtained
Facebook user data and retained it for years after telling
Facebook that the records had
been expunged. University of
Cambridge psychology professor Aleksandr Kogan initially
collected the user data by creating a personality-quiz app in
2013 that plugged directly into
Facebook’s platform.
Facebook announced in 2014
it would change its policies,
significantly reducing the data
apps could access. The changes
went into full effect in 2015.
In the blog post Monday,
Ime Archibong, Facebook’s vice
president of product partnerships, didn’t specify how far
along the company was in the
review process.
“There is a lot more work to
be done to find all the apps
that may have misused people’s Facebook data—and it will
take time,” Mr. Archibong
wrote. “We are investing heavily to make sure this investigation is as thorough and timely
as possible. We will keep you
updated on our progress.”
A FORTUNE 50 CEO USES DOMO 15
TIMES A DAY TO RUN THE BUSINESS.
ON HIS PHONE.
WHEN WILL YOU?
Bring together all your data. From all your systems. Connected to all your people.
Visit domo.com
.
B6 | Tuesday, May 15, 2018
THE WALL STREET JOURNAL.
* *
BUSINESS NEWS
Firms posting the best
shareholder returns
score in middle of pack
in terms of CEO pay
greatly from the average. But a
study co-written by Mr. Aguinis and published last week in
the journal Management Research found that, much like
with professional athletes,
there were vast differences in
the performance of CEOs.
The disparity between chief
executive compensation and
performance appears to persist
over longer periods, too, Mr.
Aguinis said. In the study, researchers analyzed the earnings
of more than 4,000 CEOs over
the course of their tenures
against several performance
metrics. They found virtually no
overlap between the top 1% of
CEOs in terms of performance
and the top 1% of highest earners. Among the top 10% of performers, only one-fifth were in
the top 10% in terms of pay.
In 2017, only two out of the
20 highest-paid CEOs who
didn’t leave their jobs before the
end of the year landed in the
top 20 for shareholder return.
Robert Kotick of Activision
Blizzard Inc., known for “Call
of Duty,” “World of Warcraft”
and other videogames, made
$28.7 million and posted a 76%
return. Steve Wynn was paid
$34.5 million, while Wynn Resorts Ltd. posted a 98% total
return. Mr. Wynn stepped
down as CEO in February after
The Wall Street Journal reported sexual-misconduct allegations, which he has denied.
Many firms condition a big
share of pay on three-year
performance metrics that are
only partially affected by a
single bad year, compensation
consultants say.
CBS Corp. paid its chief,
Leslie Moonves, $69.3 million
last year; total shareholder return was negative 6.2%. His
pay was virtually unchanged
from $69.6 million in 2016
when the broadcaster achieved
a one-year return of 37%. Likewise, Comcast Corp. CEO
Brian Roberts’s annual pay has
hovered around $33 million
the past three years as annual
shareholder returns ranged
from 25% to negative 1.1%.
In its proxy, CBS said Mr.
Moonves received $12 million
BY VANESSA FUHRMANS
The best-paid CEOs don’t
necessarily run the best-performing companies.
Corporate boards have tried
for years to tie chief executive
compensation to the results
they deliver. The better the
company and its shareholders
do, the more the top boss
should be paid, or so the payfor-performance mantra goes.
In reality, CEO pay and performance often don’t match up,
and 2017 was no exception.
Among S&P 500 CEOs who
‘Stars are often
underpaid, while
average performers
are often overpaid.’
got raises last year, the 10%
who received the biggest pay
increases scored—as a group—
in the middle of the pack in
terms of total shareholder return, according to a Wall
Street Journal analysis of data
from MyLogIQ LLC and Institutional Shareholder Services.
Similarly, the 10% of companies posting the best total returns to shareholders scored in
the middle of the pack in terms
of CEO pay, the data show.
“Stars are often underpaid,
while average performers are
often overpaid,” said Herman
Aguinis, a professor of management at George Washington
University School of Business.
One reason for the mismatch is that boards often set
CEO pay by benchmarking the
average compensation for
leaders at a peer group of
companies and setting performance targets accordingly, Mr.
Aguinis said. That works if CEO
performance doesn’t vary too
DAVID PAUL MORRIS/BLOOMBERG NEWS
Pay, Performance Often at Odds
Activision Blizzard’s Robert Kotick ranked among the top 20
CEOs in terms of both pay and shareholder return in 2017.
Pay for Performance?
CEOs posting the best total shareholder returns in 2017 tended
to have middling pay packages.
Top CEOs by shareholder return
Top CEOs by largest raise
RETURN NAME/2017 PAY
RAISE
Howard W. Robin
387% Nektar Therapeutics
NAME/2017 PAY
Stephen Kaufer
3,787% TripAdvisor
$47.9 million
$18.1 million
134
Mauricio Gutierrez
NRG Energy
693
Brenton Saunders
Allegan
32.8
9.0
131
Joseph Hogan
Align Technology
126
Jensen Huang
Nvidia
117
Valentin P. Gapontsev
IPG Photonics
473
Ari Bousbib
Iqvia Holdings
318
Hock Tan
Broadcom
280
Howard W. Robin
Nektar Therapeutics
38.0
11.7
13.0
103.2
2.3
18.1
Sources: Institutional Shareholder Services (returns); MyLogIQ (raises)
THE WALL STREET JOURNAL.
more in 2017 stock awards
than the prior year, in part because of his contract renewal.
Comcast said in its filing that
it prefers to base executive
pay on longer-term businessmanagement metrics, not total
shareholder return.
Allergan PLC’s Brent Saunders received a 700% raise in
2017 to $32.8 million, despite
total shareholder return of
negative 21%. The compensation package came during a
year when Allergan ran into
patent setbacks for one of its
best sellers, dry-eye drug
Restasis, which contributed to
a 22% drop in the firm’s share
price for the year.
Part of the $8.8 million Mr.
Saunders got in incentive payments stems from longer-term
performance targets met since
Allergan’s 2014 acquisition of
Forest Laboratories Inc., the
company said in its proxy statement. Another portion of his
2017 compensation, $22.6 million in stock awards, won’t vest
until future years and is contingent on meeting specific research and shareholder-return
goals. The drugmaker said in its
proxy that because the award
covers two years, it will report
less compensation for Mr.
Saunders for 2018 and 2019.
One of the biggest gaps between CEO pay and shareholder return was at aerospace-parts
company
TransDigm Group Inc. For
much of the year, TransDigm’s
stock took a beating from short
sellers who have criticized the
its acquisition-driven business
model, but the volatility had
little effect on then-CEO Nicholas Howley’s pay package.
Shares, including reinvested
dividends, returned just shy of
5% for the fiscal year that
ended Sept. 30, 2017, underperforming the broader S&P
500 index for the first time in
a decade. During the same period, Mr. Howley earned $61
million, more than triple the
$18.9 million he made in 2016.
The bulk of his compensation—$51.2
million—came
from dividend-like payments
on vested options, stemming
from $46 in special cash dividends the company awarded
shareholders during the fiscal
year. TransDigm paid no dividends the previous fiscal year.
Mr. Howley also received $9.8
million in stock options. His
base salary was $7,000.
Mr. Howley stepped down in
April after a 17-year run as CEO
and remains TransDigm’s executive chairman. The company
declined to comment on his
pay package but pointed out
that its proxy statement shows
the company’s one-year return
for the calendar, versus fiscal,
year was 20% and that its longer-term returns dramatically
outpace the broader market.
Shoe Firm
Rockport
Files for
Chapter 11
BY BECKY YERAK
Comfort shoe maker Rockport Co., citing “today’s evolving retail landscape” and a
costly separation from former
owner Adidas AG, has filed for
chapter 11 bankruptcy with a
plan to hand ownership to private-equity firm Charlesbank
Capital Partners.
Rockport supplies its shoes
to department stores and specialty retailers, as well as online and at some of its own
stores, in more than 60 countries, according to court filings
in U.S. Bankruptcy Court in
Wilmington, Del.
The company, which filed
for protection from creditors
in the U.S. and Canada, said it
might seek to close some of its
own locations while under
court protection.
In court papers, interim
Chief Financial Officer Paul
Kosturos blamed Rockport’s
bankruptcy on a “costly and
time-consuming separation”
from former owner Adidas
Networks, along with supplychain interruptions and a contract dispute with expediters.
Also, he said a number of
stores acquired when the company was bought by Boston
firm Berkshire Partners and
footwear maker New Balance
“performed below expectations” in a tough retail market.
Charlesbank will serve as
the lead, or “stalking horse,”
bidder with a $150 million offer in a court-supervised sale
process. The agreement between it and Rockport is subject to better offers.
Rockport said it has lined
up $20 million in new financing from existing bondholders
to help get it through bankruptcy proceedings. The company said it has an existing
$60 million credit facility that
it can tap to continue operating through its sales process.
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THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24899.41 s 68.24, or 0.27%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 24.51 20.46
P/E estimate *
16.41 17.72
Dividend yield
2.16
2.34
All-time high 26616.71, 01/26/18
Current divisor 0.14523396877348
Session high
Trailing P/E ratio * 24.28 23.83
P/E estimate *
17.05 18.45
Dividend yield
1.91
1.97
All-time high 2872.87, 01/26/18
Session low
Last Year ago
7411.32 s 8.43, or 0.11%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 24.99
26.09
P/E estimate *
20.25
21.02
Dividend yield
1.01
1.10
All-time high: 7588.32, 03/12/18
2800
7500
2750
7300
25200
2700
7100
24400
2650
6900
23600
2600
22800
2550
22000
2500
65-day moving average
26000
Open
t
Close
2730.13 s 2.41, or 0.09%
High, low, open and close for each
trading day of the past three months.
Year ago
26800
UP
Close
t
DOWN
Session open
Nasdaq Composite Index
Last
65-day moving average
6700
65-day moving average
6500
Bars measure the point change from session's open
Feb.
Mar.
Apr.
Feb.
May
Mar.
Apr.
6300
Feb.
May
Mar.
Apr.
May
*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
Industrial Average
24994.19 24862.52 24899.41
691.17
686.59
-2.90
28456.23 28275.98 28319.93
735.87
730.98
731.54
7.14
-0.31
Utility Average
Total Stock Market
Barron's 400
683.57
Nasdaq Stock Market
Nasdaq Composite
7458.42
Nasdaq 100
7008.26
S&P
500 Index
7401.89
6954.64
2742.10
7411.32
6964.37
2725.47
2730.13
2.41
1947.06
991.00
1933.13
981.57
1935.23
982.13
-3.86
-4.74
Other Indexes
Russell 2000
1614.24
1599.73
1600.34
-6.45
NYSE Composite
12821.54 12755.46 12772.03
NYSE Arca Biotech
18.7
0.7
10.9
11373.38
8783.74
17.6
0.5
7.4
-0.42
774.47
647.90
-2.3
-5.1
5.8
29630.47 24391.29
757.37
624.99
13.8
14.1
2.3
2.9
8.5
8.4
0.03
-0.04
0.11
562.00
562.37
-0.28
4746.85
4666.59
4715.54
51.73
NYSE Arca Pharma
537.10
533.61
534.72
2.60
111.35
110.49
-0.12
PHLX§ Gold/Silver
110.71
84.18
83.05
-0.40
PHLX§ Oil Service
83.47
164.01
162.38
163.08
1.41
1382.69
13.28
1364.35
12.81
1367.50
12.93
17.04
0.28
7588.32
7131.12
0.17
0.09
13.6
2.1
-0.48
1.8
4.9
8.1
11.1
-0.40
1610.71
1355.89
14.8
4.2
8.7
0.08
13637.02 11423.53
10.0
-0.3
4.5
589.69
503.24
7.8
0.01
3.0
1.11 4939.86
3507.64
28.6
11.7
5.4
-0.05
Volume, Advancers, Decliners
Company
8.8
11.8
16.3
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 50,000 shares.
Symbol
…
Low
unch. 273.11 272.41
F
5,845.8
11.19
0.01
0.09
11.21
Endo International
ENDP
5,379.7
6.22
…
unch.
6.23
6.22
Intel
INTC
3,465.4
54.88
-0.02
-0.04
54.97
54.79
SPDR S&P Insurance
KIE
11.18
3,355.1
30.44
-0.01
-0.04
30.44
30.44
SPDR S&P 500 Growth SPYG
3,056.5
35.09
…
unch.
35.10
35.09
Ambev ADR
ABEV
2,791.1
5.95
…
unch.
5.95
5.94
Amicus Therapeutics
FOLD
2,652.3
14.24
…
unch.
14.24
14.17
Percentage gainers…
Symantec
SYMC
1,332.8
21.97
0.57
2.66
21.98
21.12
Tata Motors ADR
TTM
391.8
24.35
0.59
2.48
24.35
23.76
ProSharesUltVIXST
UVXY
378.8
11.69
0.25
2.19
11.70
11.44
VS 2x VIX Short Term
TVIX
526.2
5.14
0.10
1.98
5.16
5.03
Sociedad Quimica ADR SQM
81.1
56.97
0.97
1.72
56.97
56.00
2.2
-1.9
-3.1
...And losers
20.0
3.8
13.4
Vipshop Holdings ADR VIPS
93.26
76.42
-2.0
-2.1
3.5
165.78
117.79
8.5
9.0
1445.90
37.32
2.21
1020.51
9.14
28.9
24.1
9.1
17.1
2,000.4
12.82
-2.27
-15.04
15.58
12.06
Agilent Technologies
A
324.5
64.45
-4.76
-6.88
69.33
63.82
-9.4
Switch Cl A
SWCH
163.7
14.70
-0.77
-4.98
16.00
12.51
24.5
0.5
Jacobs Engineering
JEC
57.0
61.90
-1.09
-1.73
62.99
61.90
Denbury Resources
DNR
147.3
3.73
-0.06
-1.58
3.81
3.72
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
Close
Percentage Gainers...
Net chg
3117.75
402.59
268.09
8.85
0.37
0.38
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
654.23
Sao Paulo Bovespa 85232.18
S&P/TSX Comp
16085.61
S&P/BMV IPC
46519.29
Santiago IPSA
4239.34
0.25
11.95
102.29
–209.63
–12.75
EMEA
Eurozone
Belgium
Denmark
France
Germany
Israel
Italy
Netherlands
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
U.K.
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
OMX Copenhagen
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
FTSE/JSE All-Share
IBEX 35
OMX Stockholm
Swiss Market
BIST 100
FTSE 100
FTSE 250
392.19
395.44
3885.74
930.41
5540.68
12977.71
1487.04
24221.47
563.52
1202.56
58614.45
10257.80
584.30
9000.89
103370.42
7710.98
20800.95
–0.21
–0.12
1.34
10.82
–1.26
–23.53
1.83
62.13
1.25
8.58
191.59
–13.60
–1.54
7.38
1517.94
–13.57
15.39
The Global Dow
DJ Global Index
DJ Global ex U.S.
S&P/ASX 200
6135.30
Shanghai Composite 3174.03
Hang Seng
31541.08
S&P BSE Sensex
35556.71
Nikkei Stock Avg
22865.86
Straits Times
3562.46
Kospi
2476.11
TAIEX
10952.39
SET
1773.10
19.10
10.77
419.02
20.92
107.38
–7.71
–1.60
93.41
7.17
Latest
% chg
YTD
% chg
0.28
0.09
0.14
1.0
1.3
0.5
0.04
0.01
0.64
1.9
11.6
–0.8
–5.7
0.7
–0.45
–0.30
–0.05
–0.03
–0.02
–0.18
–0.13
–0.26
–0.18
0.8
2.6
0.03
–2.3
1.18
0.4
4.3
0.5
0.12
–1.5
0.26
10.8
0.22
3.5
0.72
4.2
0.33
–1.5
2.1
2.7
0.08
–4.1
1.49 –10.4
0.3
0.07
0.4
0.31
0.34
1.35
0.06
0.47
–0.22
–0.06
0.86
0.41
1.2
–4.0
5.4
4.4
0.4
4.7
0.3
2.9
1.1
Sources: SIX Financial Information; WSJ Market Data Group
Company
Symbol
Boxlight Cl A
Integrated Media Tech
ProPhase Labs
Tandem Diabetes Care
Myomo
BOXL
NTN Buzztime
Galectin Therapeutics
ENDRA Life Sciences
Arcadia Biosciences
Tyme Technologies
NTN
Empire Resorts
HUYA ADR
China Adv Constr Matrl
TransEnterix
Restoration Robotics
NYNY
IMTE
PRPH
TNDM
MYO
3.00
1.85
1.84
2.14
2.07
...
...
157.9
22.1
...
Ominto
aTyr Pharma
DHX Media Var Voting
Genprex
Loma Negra ADR
OMNT
5.74
4.00
2.90
9.16
2.95
0.92
0.64
0.45
1.38
0.43
19.09
19.05
18.36
17.74
17.06
8.40
6.74
5.88
66.56
9.50
3.01
1.28
2.15
3.60
2.01
-24.7
46.5
...
-38.9
-10.6
Remark Holdings
Amira Nature Foods
Sol-Gel Technologies
SuperCom
Kelly Services Cl A
MARK
22.50
18.38
2.80
2.42
4.30
3.05
2.32
0.35
0.30
0.53
15.68
14.45
14.29
14.15
14.06
30.98 15.88
18.95 12.00
9.75 1.55
5.00 0.45
11.95 3.54
-5.9
...
21.7
355.8
...
Pfenex
CynergisTek
StarTek
Destination Maternity
Synlogic
PFNX
Most Active Stocks
Neovasc
Symantec
SPDR S&P 500
Advanced Micro Devices
Helios Matheson Analy
NVCN
Bank of America
VS 2x VIX Short Term
Caesars Entertainment
Chesapeake Energy
General Electric
BAC
SYMC
SPY
AMD
HMNY
TVIX
CZR
CHK
GE
74,309
53,283
48,527
47,710
43,075
-8.1 0.04 -4.09
659.5 21.40 9.63
-54.2 272.98 0.05
-16.9 12.23 2.34
433.6 0.68 4.75
41,046
38,706
38,017
36,031
35,752
-42.7 31.12 0.65
-19.0 5.04 -6.84
226.0 12.55 5.46
3.5 3.60 7.14
-52.7 14.71 0.75
52-Week
High
Low
1.89
0.03
34.20 18.85
286.63 235.43
15.65
9.04
38.86
0.55
33.05
34.45
14.50
5.87
29.47
22.07
4.66
10.48
2.53
12.73
U.S. consumer rates
Selected rates
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
2.00
t
1.00
0.00
J J A S O N D J FMA M
2017
2018
Glen Rock Savings Bank
Glen Rock, NJ
4.38%
201-652-8776
Foxboro Federal Savings
Foxboro, MA
4.50%
877-369-3331
Home Savings Bank
Youngstown, OH
4.50%
888-822-4751
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.50-1.75 1.50-1.75
Prime rate*
4.75
4.75
Libor, 3-month
2.37
2.33
Money market, annual yield
0.45
0.45
Five-year CD, annual yield
1.68
1.69
30-year mortgage, fixed†
4.54
4.55
15-year mortgage, fixed†
4.00
4.03
Jumbo mortgages, $424,100-plus† 4.82
4.81
Five-year adj mortgage (ARM)† 4.52
4.56
New-car loan, 48-month
4.24
4.27
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.75 l
l
4.00
l
1.17
0.25 l
l
1.31
l
3.73
l
2.99
l
4.21
l
3.22
l
2.85
1.50
4.75
2.37
0.45
1.69
4.63
4.11
4.96
4.70
4.27
1.50
1.50
2.05
0.10
0.22
0.56
0.83
0.51
1.21
1.35
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
One year ago
1
3 6
month(s)
1 2 3 5 710
years
maturity
15%
10
2.25
5
1.50
0
0.75
–5
0.00
–10
30
Euro
Yen
WSJ Dollar index
2017
2018
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Corporate Borrowing Rates and Yields
Bond total return index
Close
Treasury, Ryan ALM
1422.993
10-yr Treasury, Ryan ALM 1657.915
DJ Corporate
369.471
Aggregate, Barclays Capital 1898.540
High Yield 100, Merrill Lynch 2861.739
Fixed-Rate MBS, Barclays 1952.570
Muni Master, Merrill
517.891
EMBI Global, J.P. Morgan
775.273
-87.9
-53.7
-43.0
...
...
5.32
2.54
SLGL
7.50
SPCB
2.02
KELYA 21.72
-0.86
-0.37
-1.07
-0.28
-2.78
-13.86
-12.71
-12.49
-12.17
-11.33
15.10 1.93
7.05 1.62
16.48 7.39
4.95 1.97
32.31 21.01
69.3
-49.9
...
-19.8
-7.8
6.10
4.40
6.27
2.66
10.59
-0.70
-0.50
-0.71
-0.30
-1.17
-10.29
-10.20
-10.17
-10.13
-9.95
6.80
5.45
14.78
4.98
23.00
26.0
-10.0
-40.8
-31.3
-25.5
DHXM
GNPX
LOMA
ANFI
CTEK
SRT
DEST
SYBX
2.07
2.70
6.11
1.02
8.76
Ranked by change from 65-day average*
Xtrkrs Jpn JPX-Nikkei 400
NuShares Enh Yield US Bd
Boxlight Cl A
FlexShares Core Sel Bd Fd
Fidelity Limited Term Bd
JPN
NUAG
BOXL
BNDC
FLTB
FlexShares Ready Access RAVI
USAA MSCI USA SC Val MomUSVM
STBZ
State Bank Financial
IMTE
Integrated Media Tech
Renewable Energy Group REGI
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
3,588
3,093
8,289
229
1,553
55418
16896
12378
2469
2456
30.11
23.51
11.80
24.16
49.32
0.59
0.03
76.93
0.29
0.06
31.67
24.87
17.40
28.51
50.75
284
152
1,950
1,277
9,696
2254
2106
1793
1703
1611
75.29
52.57
33.61
18.95
15.10
-0.13
0.11
1.60
63.64
9.82
75.97 67.87
53.15 47.00
34.13 24.90
44.00 1.85
15.48 9.50
US$vs,
YTDchg
Mon
in US$ per US$ (%)
25.80
23.47
3.00
24.09
49.24
Vietnam dong
Argentina peso
.0400 25.0077 34.4
Brazil real
.2761 3.6216 9.3
Canada dollar
.7804 1.2814 1.9
Chile peso
.001599 625.40 1.6
Ecuador US dollar
1
1 unch
Mexico peso
.0510 19.6237 –0.2
Uruguay peso
.03331 30.0200 4.2
Venezuela b. fuerte .00001469912.5251 675915.7
Europe
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.864
2.995
3.892
3.340
5.961
3.460
2.545
2.815
2.950
3.902
3.310
6.012
3.440
2.568
2.864
3.026
3.934
3.350
6.319
3.510
2.653
1.818
2.058
2.879
2.380
4.948
2.660
1.736
–1.370
–3.523
0.085
–0.433
2.401
–0.428
1.294
6.429
6.482
6.601
5.279 –0.989 4.173
0.640
–0.281
2.612
1.293
3.436
1.022
2.291
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7528 1.3284
China yuan
.1577 6.3392
Hong Kong dollar
.1274 7.8499
India rupee
.01477 67.690
Indonesia rupiah .0000716 13970
Japan yen
.009120 109.65
Kazakhstan tenge .003048 328.11
Macau pataca
.1237 8.0814
Malaysia ringgit
.2531 3.9505
New Zealand dollar
.6915 1.4461
Pakistan rupee
.00865 115.600
Philippines peso
.0190 52.510
Singapore dollar
.7486 1.3359
South Korea won .0009338 1070.91
Sri Lanka rupee
.0063283 158.02
Taiwan dollar
.03353 29.823
Thailand baht
.03135 31.900
Commodities
3.7
–2.5
0.5
6.0
3.6
–2.7
–1.4
0.4
–2.7
2.6
4.5
5.1
–0.1
0.4
3.0
0.5
–2.1
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
Americas
Asia-Pacific
s
10-year Treasury
note yield
t
First Whitney Bank Trust
4.38%
Atlantic, IA
712-243-3195
t
t
3.00
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
s
30-year fixed-rate
mortgage
Monday
15.77 1.18
6.50 1.55
6.05 2.60
19.45 3.84
26.89 14.12
U.S.-dollar foreign-exchange rates in late New York trading
s
4.00%
52-Week
Low
% chg
Currencies
Forex Race
3.00
High
-55.13
-32.61
-19.70
-19.04
-16.27
Symbol
Country/currency
3.75%
Latest Session
Close Net chg % chg
CURRENCIES & COMMODITIES
Compare the performance of selected
global stock indexes, bond ETFs,
currencies and commodities at
WSJ.com/TrackTheMarkets
notes and bonds
Carolina Equity Services, Inc.
4.38%
Apex, NC
919-467-6192
* 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.
-1.45
-0.75
-0.65
-2.07
-2.75
Company
Track the Markets
4.55%
Bankrate.com avg†:
NYSE Arca
* Common stocks priced at $2 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
Benchmark
Yields
Treasury
yield
curve
and
Yield toRates
maturity of current bills,
Consumer Rates and Returns to Investor
Nasdaq
Total volume*2,046,003,935 176,246,729
Adv. volume*1,200,099,992 97,843,657
Decl. volume* 817,016,094 78,108,441
Issues traded
2,992
1,355
Advances
1,307
740
Declines
1,564
593
Unchanged
121
22
New highs
141
46
New lows
31
19
Closing tick
122
13
Closing Arms†
0.57
1.03
Block trades*
9,067
986
1.18
1.55
2.65
8.80
14.15
LIFE
Volume Movers
Volume % chg from Latest Session
Symbol (000) 65-day avg Close % chg
Company
Symbol
17.40
44.00
5.34
12.20
23.20
TYME
HAIR
Company
76.93
63.64
26.76
25.22
23.25
RKDA
TRXC
High
5.13
7.37
1.10
2.25
0.73
NDRA
CADC
52-Week
Low
% chg
11.80
18.95
5.21
11.15
3.87
GALT
HUYA
Total volume* 730,551,049 10,102,467
Adv. volume* 369,986,941 4,172,655
Decl. volume* 349,129,465 5,232,408
Issues traded
3,077
327
Advances
1,411
134
Declines
1,551
169
Unchanged
115
24
New highs
123
10
New lows
31
8
Closing tick
278
15
Closing Arms†
0.81
0.70
Block trades*
5,850
122
Percentage Losers
Latest Session
Close Net chg % chg
CREDIT MARKETS
Interest rate
After Hours
% chg
High
Ford Motor
88.87
1.26
Net chg
6,235.4 272.98
514.66
0.87
Last
SPY
116.52
-0.47
Volume
(000)
SPDR S&P 500
593.12
0.49
-0.11
NYSE NYSE Amer.
Most-active issues in late trading
13.6
15.7
1691.67
817.25
International Stock Indexes
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
2357.03
7.4
8.9
20.5
22.1
1995.23
986.87
Nasdaq PHLX
World
6011.24
5580.55
2872.87
-0.20
10.21
565.28
KBW Bank
PHLX§ Semiconductor
Cboe Volatility
26616.71 20606.93
-0.47
8.43
11.81
MidCap 400
SmallCap 600
Value Line
0.27
68.24
Transportation Avg 10782.15 10641.50 10663.16 -50.41
Late Trading
.00004392
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
22768
0.3
.04677 21.380
.1601 6.2454
1.1929 .8383
.003780 264.52
.009728 102.80
.1245 8.0338
.2791 3.5831
.01616 61.870
.1157 8.6422
.9995 1.0005
.2291 4.3655
.0382 26.1570
1.3556 .7377
0.5
0.7
0.6
2.1
–0.7
–2.1
3.0
7.3
5.6
2.7
15.0
–7.1
–0.3
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6512 .3772 0.02
.0561 17.8320 0.3
.2783 3.5938 3.3
3.3135 .3018 0.1
2.5976 .3850 0.01
.2736 3.655 0.2
.2666 3.7503
...
.0811 12.3291 –0.3
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.38
Monday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
658.13
2.29
203.83
70.96
2.842
1316.50
0.27
0.26
0.036
-2.50
0.15 0.18
0.47
Sources: Tullett Prebon, WSJ Market Data Group
0.35
% Chg
YTD
% chg
659.25
532.01
17.68
5.24
0.13 204.52
71.36
0.37
3.63
1.28
-0.19 1362.40
166.50
42.53
2.55
1208.60
11.54
45.26
-15.14
7.15
5.14
17.44
-3.76
0.78
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
.
THE WALL STREET JOURNAL.
B8 | Tuesday, May 15, 2018
COMMODITIES
Futures Contracts
Contract
High hilo
Low
Open
Metal & Petroleum Futures
Settle
Open
interest
Chg
Open
interest
1,912
139,975
104
252,680
160,302
9,311
63,265
4,034
14,671
8,435
73,507
6,110
170
139,242
291,830
448,791
202,364
227,150
316,120
160,035
92,007
118,142
Corn (CBT)-5,000 bu.; cents per bu.
May
July
388.50
396.25
388.75
397.50
387.50
394.25
389.00
396.50
–.75
335
… 814,682
July
Dec
232.75
250.50
239.75
256.00
231.50
249.75
239.25
255.75
5.25
5.25
Oats (CBT)-5,000 bu.; cents per bu.
Soybeans (CBT)-5,000 bu.; cents per bu.
1007.25
1001.75
May
July
1013.50
1026.00
1007.25
1001.75
1013.00
1017.75
Soybean Meal (CBT)-100 tons; $ per ton.
4,396
922
18.25
81
14.50 416,013
May
July
387.50
378.20
389.80
389.60
387.50
378.10
389.80
387.60
7.10
74
9.00 234,171
May
July
31.14
31.33
31.14
31.48
31.09
31.15
31.12
31.25
–.05
48
–.06 259,726
May
July
...
1267.00
...
1291.50
...
1247.00
May
July
479.25
499.00
479.25
499.00
479.25
490.25
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1232.50 –16.00
1250.50 –15.00
Wheat (CBT)-5,000 bu.; cents per bu.
480.50
491.25
Wheat (KC)-5,000 bu.; cents per bu.
500.00
517.75
May
July
503.50
518.25
499.50
509.00
May
July
...
605.00
613.50
606.25
613.50
600.25
May
Aug
137.375
142.375
137.600
143.000
June
Aug
106.850
103.675
May
July
21
5,697
–5.00
44
–8.25 136,089
613.50
601.50
…
–3.50
1
30,157
135.225
140.100
135.400 –3.025
140.375 –3.525
3,888
24,907
106.850
103.825
104.625
101.700
104.625 –3.000 81,118
101.900 –2.525 145,083
65.450
77.375
65.450
78.775
65.200
77.200
65.250
78.725
–.050
1.750
1,697
65,371
May
July
610.50
607.10
659.00 s
612.70 s
610.40
606.00
651.00
612.70
44.00
10.00
198
5,330
May
June
15.25
15.92
15.26
16.12 s
15.20
15.90
15.24
16.09
.01
.23
3,935
3,832
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Cattle-Live (CME)-40,000 lbs.; cents per lb.
115,049
122,662
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
154,283
265,059
147,027
138,226
101,396
91,977
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Milk (CME)-200,000 lbs., cents per lb.
May
July
2,775
2,806
Settle
2,782
2,849
2,775
2,762
115.35
119.05
116.40
119.25
115.10
117.20
Cash Prices | WSJ.com/commodities
Monday, May 14, 2018
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.
Monday
0.8993
1.0298
2.830
2.760
2.410
2.120
1.760
0.680
2.640
60.400
12.450
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Metals
Monday
*16.7600
12178
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Other metals
LBMA Platinum Price PM
*926.0
Platinum,Engelhard industrial
924.0
Platinum,Engelhard fabricated
1024.0
Palladium,Engelhard industrial
1010.0
Palladium,Engelhard fabricated
1110.0
Aluminum, LME, $ per metric ton
*2273.5
Copper,Comex spot
3.0785
Iron Ore, 62% Fe CFR China-s
n.a.
Shredded Scrap, US Midwest-s,m
n.a.
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Fibers and Textiles
Gold, per troy oz
1322.89
1422.11
1319.85
1465.03
*1324.80
*1324.35
1370.93
1384.11
1384.11
1597.35
1295.10
1384.11
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.6500
19.9800
16.6650
20.8310
*£12.3500
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.5800
0.8270
*93.10
61.500
6.00
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
108
3.6850
135.9
518.4
258
108
305
2.8675
25.75
6.9950
Monday
398.10
9.8200
7.4400
4.8550
4.9475
5.8300
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
202.64
181.78
1.1642
2.3400
160.00
164.00
84.75
n.a.
1.1807
1.3868
0.9150
16.00
0.55
65.35
1.1053
1.0177
121.78
171.44
Fats and Oils
29.5000
0.2400
n.a.
0.2960
0.2400
n.a.
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
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;
M=monthly; 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 5/11
Source: WSJ Market Data Group
May 14, 2018
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
April index
Chg From (%)
level March '18 April '17
U.S. consumer price index
250.546
257.025
All items
Core
0.40
0.16
2.5
2.1
0.50
0.50
0.25
Treasury bill auction
Australia
1.50
1.50
1.50
1.50
4 weeks
13 weeks
26 weeks
Overnight repurchase
Latest
1.74
4.75 4.75 4.75 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
0.00
0.50
0.00
0.50
0.00
0.50
0.76
0.00
0.50
July
Oct
2.25
2.25
1.50
July
Sept
Low
1.6900 1.6500 1.7100 0.7500
Bid
1.6800 1.6800 1.7200 0.8200
1.7200 1.7200 1.7400 0.8300
July
Dec
11.22
11.60
11.28
11.65
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
Federal funds (effective)
1.70
1.70
0.90
1.79
1.90
2.02
1.85
1.92
2.04
1.86
1.92
2.04
0.83
0.88
0.95
1.79
1.97
2.15
1.78
1.98
2.17
1.85
2.05
2.28
0.95
0.99
1.04
Discount window primary credit
2.25
2.25
2.25
1.50
Conventional mortgages
n.a.
n.a.
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.69
1.89
2.05
2.27
2.52
2.67
2.82
2.93
2.97
3.04
1.67
1.85
2.03
2.24
2.50
2.63
2.79
2.91
2.96
3.02
52-Week
High
Low
Treasury yields (secondary market)
1.70
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Week Ended
May 11 May 4
1.71
1.89
2.05
2.27
2.52
2.67
2.82
2.95
2.99
3.07
0.71
0.90
1.02
1.10
1.28
1.40
1.65
1.90
2.07
2.43
1-month
3-month
6-month
1.65
1.85
2.00
1.64
1.81
1.98
1.68
1.85
2.00
0.69
0.88
1.00
0.70
0.80
0.81
0.89
0.91
0.70
0.78
0.79
0.88
0.90
0.73
0.82
0.82
0.94
0.96
0.02
0.23
0.28
0.60
0.65
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
TIPS
5-year
7-year
10-year
20-year
Long-term avg
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Corporate bonds, Moody's seasoned
Aaa
Baa
n.a.
n.a.
n.a.
n.a.
July
Sept
.04 489,422
.04 254,270
24.70
25.21
24.70
25.21
24.60
25.21
24.69
25.25
84.70
80.06
84.90
80.36
83.50
79.70
–.01
.05
83.70
79.86
2,827
1,764
–.92 134,671
–.38 117,052
169.05
169.50
171.50 s
171.35 s
168.25
168.90
171.35
171.25
2.00
1.80
11,437
1,642
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
June
Sept
143-030 143-110
142-090 142-150
142-180
141-240
142-240
141-290
–12.0 846,218
–12.0 16,272
119-080
118-290
–5.0 3,705,368
–5.5 58,498
113-077
112-302
–1.5 3,608,543
–1.5 181,497
105-297
105-230
–.2 2,044,469
–.2 47,530
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
June
Sept
119-120 119-155
119-010 119-040
119-045
118-255
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
June
Sept
113-090 113-107
113-000 113-000
113-057
112-282
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
June
Sept
105-300 105-307
105-235 105-240
105-292
105-230
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
May
July
98.298
98.055
98.300
98.060
t
98.298
98.050
98.300
98.055
… 214,190
–.005 316,680
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
June
92.969
92.984
97.8600
May
June
Dec
Dec'19
97.6625
97.6850
97.3600
97.0000
97.6650
97.7225
97.3900
97.0200
97.6625
97.6825
97.3550
96.9950
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
May
June
.9151
.9166
.9152
.9177
.9128
.9137
.9128 –.0022
119
.9138 –.0032 149,914
May
June
.7841
.7825
.7841
.7848
.7820
.7808
.7813 –.0007
130
.7818 –.0007 119,687
May
June
1.3576
1.3566
1.3599
1.3628
1.3576
1.3560
1.3604
1.3585
.0057
1,103
.0018 181,414
June
Sept
1.0025
1.0105
1.0069
1.0148
1.0018
1.0101
1.0026
1.0107
.0008 102,597
.0008
173
May
June
July
Aug
Sept
Dec
.7533
.7543
.7562
.7560
.7557
.7540
.7560
.7565
.7562
.7567
.7568
.7540
.7530
.7525
.7530
.7538
.7532
.7540
.7552
.7527
.7528
.7531
.7533
.7541
.0008
863
–.0017 167,173
–.0018
599
–.0017
165
–.0017
1,267
–.0017
421
June
Sept
.05127
.05056
.05152
.05079
.05065
.05000
.05080 –.00047 184,701
.05008 –.00047
1,559
May
June
1.1944
1.1978
1.1996
1.2025
1.1944
1.1954
1.1983 .0039
9,830
1.1972 –.0001 492,193
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Euro (CME)-€125,000; $ per €
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
June
Sept
24811
24860
24971
24972
24971
24972
24886
24899
63
62
98,738
2,484
June
Sept
2733.50
...
2741.00
2744.60
2724.50
2730.60
2730.90
2735.20
1.50
1.60
81,196
16,719
June
Sept
2727.25
2733.00
2741.25
2745.25
2724.25
2728.75
2731.00
2735.25
1.50 2,887,528
1.75 99,192
June
1939.40
1948.10
1932.80
1936.10
6958.3
6990.0
7013.5
7038.0
6955.5
6982.0
6974.0
6999.0
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
Mini S&P Midcap 400 (CME)-$100 x index
Mini Nasdaq 100 (CME)-$20 x index
–3.20
76,185
14.0 229,361
14.0 10,775
29,247
97.8725 –.0125
2,714
June
1608.10
1616.20 s
1598.50
1604.00
–5.10
328,217
1,636,782
2,059,730
1,979,197
June
1513.20
1513.20
1512.80
1514.60
.60
68
June
Sept
92.43
91.90
92.55
92.11
92.12
91.67
92.46
92.01
.05
.04
36,012
1,728
92.938
97.8600
Open
interest
–.156
92.813
97.8600
Chg
June
Sept
1 Month Libor (CME)-$3,000,000; pts of 100%
July
Settle
Mexican Peso (CME)-MXN 500,000; $ per MXN
Interest Rate Futures
97.6625
97.7100
97.3700
97.0050
…
.0250
.0100
…
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
U.S. Dollar Index (ICE-US)-$1,000 x index
10,381
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
1898.54
-2.3
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
3.340 2.380 3.350
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
1952.57
-1.8
Mortgage-Backed
1920.13
-1.7
Ginnie Mae (GNMA) 3.430 2.630 3.480
Fannie mae (FNMA) 3.470 2.670 3.520
3.460 2.660 3.510
2703.68
-3.4
U.S. Corporate
3.980 3.030 4.000
1144.68
-1.8
2566.82
-2.0
Intermediate
3.680 2.530 3.690
1762.88
-1.9
Freddie Mac (FHLMC) 3.490 2.680 3.530
Long term
4.610 3.990 4.660
517.89
-0.8
Muni Master
2.545 1.736 2.653
3690.10 -6.2
553.17
-2.6
Double-A-rated
3.440 2.470 3.450
360.61
-1.3
7-12 year
2.580 1.744 2.702
697.53
-3.3
Triple-B-rated
4.260 3.340 4.290
407.54
-1.1
12-22 year
2.882 2.213 3.004
395.35
-1.2
22-plus year
3.244 2.716 3.411
High Yield Bonds Merrill Lynch
0.03
417.74
High Yield Constrained 6.241 5.373 6.417
Global Government J.P. Morgan†
429.80
2.3
Triple-C-rated
9.724 9.607 11.091
539.99
-0.7
Global Government 1.620 1.300 1.650
2861.74
0.02
High Yield 100
5.961 4.948 6.319
747.27
-1.0
Canada
2.360 1.570 2.360
Global High Yield Constrained 5.752 4.934 5.815
372.71
EMU§
1.162 0.956 1.311
Europe High Yield Constrained 2.883 1.897 2.957
710.01
-0.1
France
0.940 0.690 1.040
504.49
-0.6
Germany
0.630 0.330 0.740
Japan
0.380 0.350 0.460
377.64
-0.3
0.1
306.75
U.S Agency Bloomberg Barclays
0.6
1617.69
-1.2
U.S Agency
2.820 1.690 2.820
289.95
1452.02
-0.7
10-20 years
2.710 1.510 2.710
557.48
-0.5
Netherlands
0.720 0.460 0.830
20-plus years
3.430 2.730 3.460
916.42
-1.6
U.K.
1.700 1.340 1.830
Yankee
3.660 2.610 3.690
775.27
3247.51
2404.93
-4.1
-2.3
0.4
-4.0
Emerging Markets ** 6.429 5.279 6.601
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Eurodollars
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
2.375
2.875
4.500
Australia 2
10
0.000
0.750
0.000
Week
Latest ago
0.100
0.100
1.400
52-Week
high
low
Latest(l)-2 -1
0
1
l
l
2.005 t
2.783 t
l
l
France 2 -0.473 s
10 0.840 s
l
Germany 2 -0.560 s
10 0.613 s
l
l
l
Italy 2 -0.264 s
10 1.910 s
l
Japan 2 -0.134 s
10 0.052 s
l
Spain 2 -0.307 s
10 1.316 s
l
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
U.S. 2 2.543 s
10 2.991 s
2.250
1.400
Other short-term rates
l
l
l
0.812 s
1.474 s
l
l
Month ago
Year ago
2.539
2.970
2.348
2.826
1.295
2.328
2.018
2.085
1.682
2.793
2.744
2.642
-0.496
-0.501
0.794
0.744
-0.581
-0.588
0.561
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
-52.2
-53.8
38.7
-20.9
-17.7
31.4
-0.451 -301.6
0.843
-215.2
-303.5
-174.6
-217.6
-148.5
-312.0
-196.7
0.514
-0.672 -310.3
0.394
-237.8
-240.8
-193.3
-0.277
-0.316
-0.181
-281.6
-147.6
1.881
1.802
2.251
-0.134
-0.157
-0.176
-280.7
-108.1
-267.7
-108.8
-7.6
-267.3
-147.1
0.046
0.034
0.044
-294.0
-292.4
-228.3
-0.329
-0.353
-0.262
-285.1
-286.8
-155.6
1.285
1.237
1.615
0.796
0.898
0.110
1.441
1.439
1.089
-167.5
-168.4
-71.2
-173.1
-174.3
-118.4
-152.9
-123.8
-151.8
Call money
Source: Tullett Prebon
3.50
1.85
90 days
3.50
3.50
2.75
Corporate Debt
2.20
2.31
1.04
Investment-grade spreads that tightened the most…
in that same company’s share price.
Libor
One month
Three month
Six month
One year
1.93375
2.33000
2.50063
2.75748
1.92770
2.36906
2.52019
2.77666
1.93375
2.36906
2.52375
2.78031
0.99911
1.17172
1.39906
1.69511
-0.397
-0.351
-0.314
-0.240
-0.401
-0.353
-0.314
-0.243
-0.397
-0.351
-0.274
-0.143
-0.420
-0.389
-0.339
-0.263
Euro Libor
One month
Three month
Six month
One year
Euro interbank offered rate (Euribor)
-0.371
-0.326
-0.271
-0.190
One month
Three month
Six month
One year
Latest
-0.372
-0.328
-0.269
-0.189
Value
Traded
-0.366
-0.325
-0.250
-0.127
-0.374
-0.332
-0.279
-0.194
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.794 37.160 2.068 0.791
1.808 117.410 1.971 0.794
Open Implied
Settle Change Interest Rate
State and local bonds
1 month
3 month
6 month
11.26
11.64
11.16
11.52
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
2.000
Commercial paper (AA financial)
52-Week
High
Low
–1.60
11
–1.80 129,036
Cotton (ICE-US)-50,000 lbs.; cents per lb.
0.050
4.209 4.191 4.275 3.253
4.236 4.221 4.304 3.281
30 days
60 days
1.9500 1.9500 1.9500 1.0625
Key Interest Rates
Week Ended
May 11 May 4
113.65
117.60
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
0.500
Secondary market
Effective rate 1.7300 1.7300 1.7300 0.8600
Offer
1.660 1.650 1.720 0.695
1.890 1.840 1.890 0.905
2.035 2.000 2.035 1.020
Fannie Mae
Federal funds
High
—52-WEEK—
High Low
30-year mortgage yields
2.25
Policy Rates
Euro zone
Switzerland
2.18
Discount
Prime rates
U.S.
Canada
Japan
1.77
U.S. government rates
52-Week
High
Low
Week
Latest ago
0.50
International rates
Week
ago
—52-WEEK—
High Low
Britain
U.S.
Contract
High hilo
Low
Open
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Inflation
–26
37
–26 131,624
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Eurodollar (CME)-$1,000,000; pts of 100%
Energy
Open
interest
Chg
2,775
2,779
Coffee (ICE-US)-37,500 lbs.; cents per lb.
May
July
–9.00
11
–7.50 238,952
496.75
509.75
Wheat (MPLS)-5,000 bu.; cents per bu.
Contract
High hilo
Low
Open
Cocoa (ICE-US)-10 metric tons; $ per ton.
Agriculture Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.0750
3.0860
3.0705
3.0785 –0.0165
May
July
3.1110
3.1310
3.0765
3.0930 –0.0185
Gold (CMX)-100 troy oz.; $ per troy oz.
May
1319.90 1319.90
1317.90 1316.50 –2.50
June
1318.30 1322.40
1312.80 1318.20 –2.50
Aug
1324.50 1328.70
1319.00 1324.30 –2.70
Oct
1330.70 1333.40
1325.10 1330.60 –2.60
Dec
1337.20 1341.10
1331.80 1337.10 –2.60
Feb'19
1344.30 1344.60
1343.20 1343.40 –2.70
Palladium (NYM) - 50 troy oz.; $ per troy oz.
985.20
997.40
983.40
995.70 10.50
June
Sept
982.40
994.20
982.40
992.40 10.40
Platinum (NYM)-50 troy oz.; $ per troy oz.
923.80
928.80
910.90
914.90 –11.00
July
Oct
930.50
932.70
916.00
919.90 –11.00
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.650
16.650 s t 16.550
16.570 –0.106
May
July
16.700
16.760
16.515
16.645 –0.107
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
70.56
71.26
70.26
70.96
0.26
June
July
70.53
71.24
70.24
70.99
0.31
Aug
70.31
71.03
70.03
70.81
0.34
Sept
69.99
70.65
69.68
70.45
0.36
Dec
68.73
69.37
68.40
69.21
0.40
Dec'19
62.27
62.80 s
61.98
62.72
0.35
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
2.2217
2.2547 s
2.2097
2.2496 .0276
June
July
2.2146
2.2473 s
2.2029
2.2412 .0258
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
2.1820
2.2053 s
2.1676
2.2002 .0114
June
July
2.1792
2.2038 s
2.1655
2.1995 .0139
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.825
2.847
2.798
2.842
.036
June
July
2.839
2.862
2.817
2.859
.034
Sept
2.834
2.853
2.812
2.851
.030
Oct
2.844
2.861
2.823
2.859
.028
Jan'19
3.065
3.081
3.052
3.077
.020
March
2.915
2.930
2.908
2.926
.020
WSJ.com/commodities
DTCC GCF Repo Index Futures
Treasury May
Treasury Jun
Treasury Jly
98.210 unch. 1163 1.790
98.040 0.005 732 1.960
97.930 -0.005 464 2.070
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 March 22, 2018. Other
prime rates aren’t directly comparable; lending
practices vary widely by location; Discount rate
is effective March 22, 2018. 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.
Issuer
Symbol Coupon (%)
Maturity
Current
Bed Bath & Beyond
BP Capital Markets
Qualcomm
Bank of New York Mellon
BBBY
BPLN
QCOM
BK
5.165
3.561
4.800
4.500
Aug. 1, ’44
Nov. 1, ’21
May 20, ’45
June 20, ’49
419
30
175
222
Citigroup
Deutsche Bank AG*
Kinder Morgan
Novartis Capital
C
DB
KMI
NOVNVX
5.950
4.500
5.625
4.400
Jan. 30, ’49
April 1, ’25
Nov. 15, ’23
May 6, ’44
237
216
131
84
Spread*, in basis points
One-day change
–17
–17
–14
–11
–8
–8
–8
–8
Last week
Stock Performance
Close ($)
% chg
n.a.
47
189
n.a.
17.07
...
56.74
57.30
1.55
...
2.73
0.21
230
225
n.a.
n.a.
72.62
13.65
16.64
...
–0.33
–1.52
0.79
...
n.a.
–60
n.a.
39
15.11
56.74
…
...
–0.13
2.73
…
...
44
n.a.
76
90
84.89
…
221.82
134.11
–0.09
…
0.72
–1.54
…And spreads that widened the most
Huntington National Bank
Qualcomm
Skandinaviska Enskilda Banken AB
Toyota Motor Credit
HBAN
QCOM
SEB
TOYOTA
3.250 May 14, ’21
2.100 May 20, ’20
2.625 March 15, ’21
3.300 Jan. 12, ’22
Occidental Petroleum
Caterpillar Financial Services
Constellation Brands
Autodesk
OXY
CAT
STZ
ADSK
3.125
2.950
2.250
3.600
Feb. 15, ’22
May 15, ’20
Nov. 6, ’20
Dec. 15, ’22
67
–39
62
42
32
31
16
14
12
11
9
8
42
44
71
96
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Issuer
Symbol
Sprint Capital
Hexion
Frontier Communications
Intelsat Luxembourg
S
HXN
FTR
INTEL
8.750 March 15, ’32
9.000 Nov. 15, ’20
9.000 Aug. 15, ’31
7.750
June 1, ’21
Bristow
Mallinckrodt International Finance S.A.
Symantec
Parker Drilling
BRS
MNK
SYMC
PKD
6.250
5.500
5.000
6.750
Oct. 15, ’22
April 15, ’25
April 15, ’25
July 15, ’22
Bond Price as % of face value
Current
One-day change
114.000
84.750
71.000
78.000
85.250
78.750
97.750
76.375
3.31
2.75
2.47
1.50
1.25
1.25
1.25
1.13
Last week
Stock Performance
Close ($)
% chg
112.906
80.500
66.750
71.000
…
...
9.24
...
…
...
2.33
...
84.000
75.750
100.875
72.970
17.92
…
21.40
0.61
1.70
…
9.63
–0.07
…And with the biggest price decreases
SPX FLOW
American Axle & Manufacturing
Intelsat Connect*
DISH DBS
FLOW
AXL
INTEL
DISH
Charter Communications Operating
Standard Industries
CHS/Community Health Systems
GameStop
CHTR
BMCAUS
CYH
GME
5.875 Aug. 15, ’26
6.250
April 1, ’25
12.500
April 1, ’22
5.000 March 15, ’23
100.500
99.012
94.625
84.250
–1.50
–1.36
–0.88
–0.81
n.a.
100.250
90.000
86.750
44.28
15.51
...
…
0.45
0.71
...
…
6.834 Oct. 23, ’55
5.375 Nov. 15, ’24
7.125 July 15, ’20
6.750 March 15, ’21
109.898
99.500
81.500
100.250
–0.81
–0.75
–0.75
–0.75
n.a.
100.750
83.000
102.125
…
...
…
13.26
…
...
…
4.33
*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
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE American and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq BX
(formerly Boston), Chicago Stock Exchange,
Cboe, NYSE National and Nasdaq ISE.
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.
Monday, May 14, 2018
Stock
Stock
Net
Sym Close Chg
ArrowElec ARW 75.66 -1.09
AspenTech AZPN 92.82 -1.42
AstraZeneca AZN 36.42 0.02
AthenaHealth ATHN 149.16 -1.80
Athene
ATH 47.10 0.59
Atlassian
TEAM 62.48 -2.39
AtmosEnergy ATO 87.46 -0.79
Autodesk ADSK 134.11 -2.10
s Autohome ATHM 104.50 0.45
Autoliv
ALV 143.38 1.05
ADP
ADP 126.68 -0.66
AutoZone AZO 666.02 5.16
Avalonbay AVB 164.54 -1.84
Avangrid
AGR 52.42 -0.18
AveryDennison AVY 108.19 0.52
s AveXis
AVXS 217.83 0.18
AxaltaCoating AXTA 31.29 -0.27
BB&T
BBT 55.00 -0.06
BCE
BCE 42.19 0.14
s BHPBilliton BHP 51.19 0.78
s BHPBilliton BBL 46.59 0.63
BOK Fin
BOKF 103.53 -0.06
BP
BP 46.40 0.57
t BT Group BT 14.37 -0.34
BWX Tech BWXT 67.53 -0.09
s Baidu
BIDU 272.26 2.35
BakerHughes BHGE 35.68 -0.08
Ball
BLL 38.36 -0.19
BancoBilbaoViz BBVA 8.14 -0.01
BancodeChile BCH 96.12 -0.80
BcoSantChile BSAC 33.25 -0.11
BcoSantMex BSMX 6.96 -0.06
BancoSantander SAN 6.57 -0.01
BanColombia CIB 48.11 0.54
BankofAmerica BAC 31.12 0.20
BankofMontreal BMO 78.95 0.19
BankNY Mellon BK 57.30 0.12
BkNovaScotia BNS 62.84 0.27
BankofOzarks OZRK 48.17 -0.05
Barclays
BCS 11.69 -0.08
BarrickGold ABX 13.48 -0.02
BaxterIntl BAX 71.20 0.68
BectonDicknsn BDX 227.18 1.94
s BeiGene
BGNE 187.03 12.89
Berkley
WRB 76.11 -0.80
BerkHathwy B BRK.B 199.18 -0.12
BerkHathwy A BRK.A 298200-570.00
BerryGlobal BERY 48.78 -0.29
s BestBuy
BBY 78.25 0.47
s Bio-RadLab A BIO 286.90 1.92
Biogen
BIIB 282.34 -0.05
BioMarinPharm BMRN 89.54 1.13
BlackKnight BKI 50.20 0.05
BlackBerry BB 11.62 0.02
BlackRock BLK 539.76 -0.67
Blackstone BX 31.18 -0.29
BlockHR
HRB 27.70 -0.15
bluebirdbio BLUE 180.90 -5.50
Boeing
BA 344.59 2.13
BookingHldgs BKNG 2072.02 0.03
BoozAllen BAH 40.64 -0.21
BorgWarner BWA 50.98 0.37
BostonProps BXP 122.44 -1.94
BostonSci BSX 29.86 -0.11
Braskem
BAK 25.21 -0.03
BrightHorizons BFAM 98.50 -0.70
Bristol-Myers BMY 52.02 0.16
BritishAmTob BTI 51.54 0.04
Broadcom AVGO 244.76 1.38
s BroadridgeFinl BR 116.03 -1.49
BrookfieldMgt BAM 40.85 0.28
BrookfieldInfr BIP 38.89 -0.19
Brown&Brown BRO 27.24 -0.21
Brown-Forman B BF.B 57.31 0.45
Brown-Forman A BF.A 54.05 -0.11
BuckeyePtrs BPL 40.20 0.47
Bunge
BG 71.04 -0.13
s BurlingtonStrs BURL 139.99 1.63
CA
CA 35.09 -0.23
CBD Pao
CBD 22.31 0.03
CBRE Group CBRE 46.96 -0.08
CBS B
CBS 53.65 1.13
CBS A
CBS.A 53.74 1.06
CDK Global CDK 64.19 -0.28
s CDW
CDW 78.35 -0.29
CF Industries CF 40.47 1.27
CGI Group GIB 60.15 -0.20
CH Robinson CHRW 85.68 -0.76
CIT Group CIT 53.71 0.05
CME Group CME 161.03 1.74
CMS Energy CMS 45.25 -0.13
CNA Fin
CNA 48.37 -0.25
s CNOOC
CEO 180.05 4.42
A B C
ABB
ABB 23.90
AES
AES 12.35
Aflac
AFL 45.24
AGNC Invt AGNC 18.97
ANGI Homesvcs ANGI 14.30
Ansys
ANSS 166.97
ASML
ASML 201.94
AT&T
T
32.19
AbbottLabs ABT 62.02
AbbVie
ABBV 105.89
s Abiomed
ABMD 375.67
Accenture ACN 155.57
ActivisionBliz ATVI 71.70
s AdobeSystems ADBE 238.37
AdvanceAuto AAP 121.61
AdvMicroDevices AMD 12.23
Aegon
AEG 6.89
AerCap
AER 55.47
Aetna
AET 177.82
AffiliatedMgrs AMG 165.86
AgilentTechs A
69.21
AgnicoEagle AEM 44.82
AirProducts APD 166.76
AkamaiTech AKAM 76.69
AlaskaAir ALK 60.05
Albemarle ALB 99.24
Alcoa
AA 52.33
AlexandriaRlEst ARE 126.98
AlexionPharm ALXN 122.85
Alibaba
BABA 198.64
s AlignTech ALGN 286.42
Alkermes ALKS 47.04
Alleghany Y
583.44
Allegion
ALLE 76.85
Allergan
AGN 154.36
AllianceData ADS 209.45
AlliantEnergy LNT 41.41
Allstate
ALL 95.46
AllyFinancial ALLY 26.75
AlnylamPharm ALNY 103.13
Alphabet C GOOG 1100.20
Alphabet A GOOGL 1106.60
Altaba
AABA 76.74
AlticeUSA ATUS 18.84
Altria
MO 55.02
AlumofChina ACH 13.92
Amazon.com AMZN 1601.54
Ambev
ABEV 5.95
Amdocs
DOX 65.76
Amerco
UHAL 343.86
Ameren
AEE 56.59
AmericaMovil AMX 16.99
AmericaMovil A AMOV 16.97
AmerAirlines AAL 42.46
AEP
AEP 67.11
AmerExpress AXP 101.29
AmericanFin AFG 110.51
AmHomes4Rent AMH 20.54
AIG
AIG 52.92
AmerTowerREIT AMT 138.29
AmerWaterWorks AWK 82.67
Ameriprise AMP 138.96
AmerisourceBrgn ABC 87.28
Ametek
AME 74.25
Amgen
AMGN 175.96
Amphenol APH 88.19
s AnadarkoPetrol APC 69.20
AnalogDevices ADI 93.87
Andeavor ANDV 142.11
AndeavorLog ANDX 44.60
AB InBev BUD 95.48
AnnalyCap NLY 10.44
AnteroResources AR 18.93
Anthem
ANTM 232.31
Aon
AON 143.23
Apache
APA 42.31
ApartmtInv AIV 40.62
ApolloGlbMgmt APO 30.03
Apple
AAPL 188.15
ApplMaterials AMAT 55.26
Aptargroup ATR 93.37
Aptiv
APTV 95.72
AquaAmerica WTR 34.25
Aramark
ARMK 38.00
ArcelorMittal MT 36.30
ArchCapital ACGL 79.17
ArcherDaniels ADM 44.42
Arconic
ARNC 18.32
AristaNetworks ANET 253.52
Net
Sym Close Chg
-0.09
0.06
0.01
-0.03
-0.20
-5.16
3.14
-0.10
0.76
1.71
2.99
-1.51
...
-3.51
1.67
0.28
...
0.16
3.15
1.10
-0.24
0.09
0.47
0.39
-0.48
0.70
-1.63
-1.06
3.19
4.28
-0.07
0.33
-2.35
-0.43
0.69
1.40
-0.25
-0.92
0.11
2.22
1.94
3.22
1.07
0.61
-0.17
-0.11
-1.37
-0.07
-0.53
1.09
-0.28
-0.39
-0.27
-0.14
-0.05
-0.13
0.06
-0.41
0.07
-0.57
-0.81
1.89
0.40
-0.56
2.07
0.21
0.89
1.27
1.95
0.59
0.42
0.03
0.46
0.26
-0.86
0.90
-0.25
-0.25
-0.44
0.42
-0.92
-0.50
-0.46
...
0.58
-0.48
0.44
0.10
-6.39
Stock
Net
Sym Close Chg
CPFLEnergia CPL 12.22
CRH
CRH 36.26
CSX
CSX 62.90
CVS Health CVS 66.82
CabotOil
COG 23.27
CadenceDesign CDNS 42.19
CaesarsEnt CZR 12.55
CamdenProperty CPT 86.19
CampbellSoup CPB 40.04
CIBC
CM 90.73
CanNtlRlwy CNI 79.64
CanNaturalRes CNQ 36.71
CanPacRlwy CP 186.73
Canon
CAJ 34.60
CapitalOne COF 93.19
CardinalHealth CAH 55.16
Carlisle
CSL 105.98
Carlyle
CG 21.55
CarMax
KMX 64.78
Carnival
CCL 64.82
Carnival
CUK 66.59
Caterpillar CAT 155.28
CboeGlobalMkts CBOE 108.11
Celanese A CE 108.20
Celgene
CELG 85.31
Cemex
CX
5.89
CenovusEnergy CVE 10.95
Centene
CNC 114.73
CenterPointEner CNP 26.49
CentraisElBras EBR 5.10
CenturyLink CTL 19.24
Cerner
CERN 59.05
CharterComms CHTR 272.84
CheckPoint CHKP 98.95
Chemours CC 50.99
CheniereEnergy LNG 62.71
CheniereEnerPtrs CQP 31.68
CheniereEnHldgs CQH 28.08
Chevron
CVX 130.39
ChinaEastrnAir CEA 41.11
ChinaLifeIns LFC 14.40
ChinaLodging HTHT 154.46
ChinaMobile CHL 47.23
s ChinaPetrol SNP 105.50
ChinaSoAirlines ZNH 54.95
ChinaTelecom CHA 48.20
ChinaUnicom CHU 14.00
Chipotle
CMG 425.06
Chubb
CB 135.05
ChunghwaTel CHT 36.51
Church&Dwight CHD 47.04
Cigna
CI 177.54
CimarexEnergy XEC 96.92
CincinnatiFin CINF 70.56
s Cintas
CTAS 183.27
CiscoSystems CSCO 45.70
Citigroup
C
72.62
CitizensFin CFG 42.34
CitrixSystems CTXS 106.74
Clorox
CLX 119.04
Coca-Cola KO 42.04
Coca-Cola Euro CCE 38.54
Coca-Cola Femsa KOF 60.19
Cognex
CGNX 49.21
CognizantTech CTSH 75.86
ColgatePalm CL 62.04
Comcast A CMCSA 32.14
Comerica
CMA 98.02
CommerceBcshrs CBSH 65.28
ConagraBrands CAG 37.75
ConchoRscs CXO 150.55
s ConocoPhillips COP 69.59
ConEd
ED 76.63
ConstBrands B STZ.B 224.02
ConstBrands A STZ 221.82
ContinentalRscs CLR 68.04
Cooper
COO 235.17
s Copart
CPRT 55.61
Corning
GLW 28.07
s CoStar
CSGP 391.23
Costco
COST 195.88
Coty
COTY 14.15
Credicorp
BAP 226.12
CreditAcceptance CACC 340.33
CreditSuisse CS 16.88
CrownCastle CCI 103.29
CrownHoldings CCK 44.92
Ctrip.com CTRP 43.18
Cullen/Frost CFR 118.59
Cummins
CMI 144.87
CurtissWright CW 131.82
CypressSemi CY 16.34
-0.33
-0.42
-0.19
2.41
0.60
-0.06
0.65
-1.21
-0.64
0.71
0.20
0.72
0.25
-0.11
0.56
-0.14
0.41
-0.10
0.98
0.80
0.61
0.42
1.29
0.15
0.77
-0.11
0.01
0.29
-0.19
-0.14
-0.36
-1.78
0.03
-1.28
0.23
0.32
0.27
-0.13
0.55
1.09
0.08
3.46
0.30
2.42
2.33
0.12
0.04
0.16
-1.12
0.05
-0.20
3.81
-1.46
-1.32
-0.64
-0.23
-0.24
-0.06
-0.73
-1.50
-0.10
-0.17
-0.92
0.84
-0.72
-0.67
0.24
0.12
-0.18
-0.10
-2.15
0.15
-0.20
-7.81
1.59
0.41
0.85
0.35
0.07
-0.90
0.12
-0.15
-0.89
-4.57
-0.11
-0.32
0.24
0.08
-0.27
-1.38
-2.83
0.15
Net
Sym Close Chg
Stock
FreseniusMed FMS 51.04 0.33
D E F
DCT Industrial DCT 65.72
DISH Network DISH 31.83
DTE Energy DTE 102.29
DXC Tech DXC 102.58
Danaher
DHR 102.67
Darden
DRI 86.97
DaVita
DVA 66.60
Deere
DE 146.75
DellTechs DVMT 73.66
DeltaAir
DAL 52.09
DentsplySirona XRAY 47.51
DeutscheBank DB 13.65
DevonEnergy DVN 41.32
s DexCom
DXCM 87.94
Diageo
DEO 144.49
DiamondbkEner FANG 124.24
DigitalRealty DLR 108.23
DiscoverFinSvcs DFS 75.45
DiscoveryA DISCA 23.83
DiscoveryC DISCK 22.51
Disney
DIS 102.44
DocuSign DOCU 44.19
DolbyLab
DLB 62.54
DollarGeneral DG 93.72
DollarTree DLTR 94.86
DominionEner D
64.23
Domino's
DPZ 246.14
Donaldson DCI 47.12
DouglasEmmett DEI 38.13
Dover
DOV 77.76
DowDuPont DWDP 67.53
DrPepperSnap DPS 119.70
Dropbox
DBX 29.96
DukeEnergy DUK 77.83
DukeRealty DRE 28.51
s ENI
E
40.09
EOG Rscs EOG 118.68
EPAM Systems EPAM 125.59
EQT
EQT 51.69
E*TRADE ETFC 63.87
EXACT Sci EXAS 52.03
s EastWestBncp EWBC 70.28
EastmanChem EMN 106.71
Eaton
ETN 76.58
EatonVance EV 56.79
eBay
EBAY 38.39
Ecolab
ECL 146.29
s Ecopetrol EC 23.16
EdisonInt
EIX 62.33
EdwardsLife EW 138.06
ElectronicArts EA 132.53
EmersonElec EMR 72.16
Enbridge
ENB 33.25
Encana
ECA 13.23
EncompassHealth EHC 62.75
EnelAmericas ENIA 10.46
EnelChile
ENIC 5.80
EnelGenChile EOCC 22.25
Energen
EGN 66.24
EnergyTransferEq ETE 16.62
EnergyTransfer ETP 18.83
Entergy
ETR 78.55
EnterpriseProd EPD 27.64
Equifax
EFX 113.49
Equinix
EQIX 397.95
EquityLife ELS 89.16
EquityResdntl EQR 62.29
EssexProp ESS 242.06
EsteeLauder EL 140.63
EverestRe RE 226.91
EversourceEner ES 57.53
Exelixis
EXEL 20.73
Exelon
EXC 40.34
Expedia
EXPE 114.64
s ExpeditorsIntl EXPD 72.22
ExpressScripts ESRX 73.67
ExtraSpaceSt EXR 94.34
ExxonMobil XOM 81.83
F5Networks FFIV 172.59
FMC
FMC 89.79
Facebook
FB 186.64
FactSet
FDS 196.48
Fastenal
FAST 51.78
FederalRealty FRT 117.41
FedEx
FDX 251.35
Ferrari
RACE 135.20
FiatChrysler FCAU 22.55
FibriaCelulose FBR 19.45
FidNatlFin FNF 38.21
FidNatlInfo FIS 104.70
FifthThirdBncp FITB 34.03
58.com
WUBA 88.35
51job
JOBS 98.89
FirstAmerFin FAF 54.05
FirstData
FDC 19.65
FirstHorizonNatl FHN 18.90
FirstRepBank FRC 97.33
FirstSolar FSLR 73.54
FirstEnergy FE 33.75
Fiserv
FISV 72.42
FleetCorTech FLT 202.30
Flex
FLEX 14.69
FlirSystems FLIR 55.25
Fluor
FLR 46.84
FomentoEconMex FMX 85.33
FordMotor F
11.18
s Fortinet
FTNT 59.55
Fortis
FTS 33.00
Fortive
FTV 76.30
FortBrandsHome FBHS 56.15
Franco-Nevada FNV 72.71
FranklinRscs BEN 33.70
FreeportMcM FCX 16.20
Net
Sym Close Chg
Stock
-0.12
0.45
-0.16
-2.02
0.86
-3.36
0.59
-0.57
-0.66
-0.81
0.58
-0.21
0.37
1.14
-0.20
0.42
-0.56
0.08
-0.20
-0.33
0.37
-0.18
-0.21
0.10
0.97
-0.47
-3.77
-0.25
-0.58
0.63
0.60
0.34
-1.32
-0.08
-0.21
0.72
1.27
-4.13
0.89
-0.52
-0.36
0.67
-0.02
0.11
-0.31
0.13
-0.86
1.18
0.04
-0.05
-0.28
0.16
0.02
0.01
-0.41
-0.21
-0.02
-0.15
-0.94
0.15
0.37
-0.30
0.37
-1.23
-3.94
-0.54
-0.26
-0.37
0.44
-1.38
-0.51
1.18
0.05
0.73
-0.13
0.87
-0.91
0.55
0.83
0.89
-0.35
-1.14
...
-1.17
0.45
-0.85
-0.15
-0.05
-0.06
-0.19
0.05
0.51
1.04
0.02
0.24
-0.14
-0.09
0.76
-0.31
-0.37
-0.28
-0.11
-0.01
0.29
-1.29
-0.01
-0.83
-0.03
0.68
0.03
-0.67
0.44
-0.07
G H I
GGP
GGP 20.50
Gallagher AJG 67.55
Gaming&Leisure GLPI 34.97
Gap
GPS 30.38
GardnerDenver GDI 33.46
Garmin
GRMN 59.39
Gartner
IT 134.80
Gazit-Globe GZT 9.40
GeneralDynamics GD 203.07
GeneralElec GE 14.71
GeneralMills GIS 42.53
GeneralMotors GM 36.63
Genpact
G
30.70
Gentex
GNTX 23.20
GenuineParts GPC 91.75
Gerdau
GGB 4.82
Gildan
GIL 28.73
GileadSciences GILD 67.05
GSK
GSK 40.04
GlobalPayments GPN 114.90
s GoDaddy
GDDY 68.68
Goldcorp
GG 13.76
GoldmanSachs GS 243.91
Goodyear GT 25.48
Graco
GGG 45.66
Grainger
GWW 295.71
GreatPlainsEner GXP 32.60
Grifols
GRFS 23.09
GrubHub
GRUB 101.70
GpoAvalAcc AVAL 8.51
GpoFinGalicia GGAL 44.62
GrupoTelevisa TV 18.23
Guidewire GWRE 90.50
HCA Healthcare HCA 101.78
HCP
HCP 23.79
HDFC Bank HDB 99.95
HD Supply HDS 39.92
HP
HPQ 22.57
HSBC
HSBC 50.22
Halliburton HAL 52.50
Hanesbrands HBI 16.74
HarleyDavidson HOG 40.88
Harris
HRS 155.17
HartfordFinl HIG 52.46
Hasbro
HAS 86.63
s Heico
HEI 92.04
Heico A
HEI.A 76.10
Helm&Payne HP 69.68
HenrySchein HSIC 73.32
Hershey
HSY 92.54
s Hess
HES 63.13
HewlettPackard HPE 17.59
s Hexcel
HXL 69.95
Hill-Rom
HRC 89.09
Hilton
HLT 82.97
s HollyFrontier HFC 69.04
Hologic
HOLX 38.30
HomeDepot HD 191.08
HondaMotor HMC 33.31
Honeywell HON 147.30
HormelFoods HRL 36.08
DR Horton DHI 43.51
HostHotels HST 20.88
HuanengPower HNP 26.75
Humana
HUM 289.63
JBHunt
JBHT 123.76
HuntingtonBcshs HBAN 15.11
HuntingIngalls HII 218.45
Huntsman HUN 32.14
HyattHotels H
81.26
IAC/InterActive IAC 143.71
ICICI Bank IBN 9.17
IdexxLab
IDXX 210.88
s IHSMarkit INFO 51.93
ING Groep ING 16.07
Invesco
IVZ 28.55
IPG Photonics IPGP 252.98
IQVIA
IQV 102.89
IcahnEnterprises IEP 66.82
s Icon
ICLR 125.70
IDEX
IEX 137.72
IllinoisToolWks ITW 145.50
s Illumina
ILMN 269.44
s ImperialOil IMO 32.99
Incyte
INCY 67.22
Infosys
INFY 17.65
Ingersoll-Rand IR
89.16
Ingredion
INGR 111.33
Intel
INTC 54.90
InteractiveBrkrs IBKR 78.50
ICE
ICE 71.72
InterContinentl IHG 64.64
IBM
IBM 144.30
t IntlFlavors IFF 126.30
IntlPaper
IP
54.21
Interpublic IPG 24.22
Intuit
INTU 192.59
IntuitiveSurgical ISRG 466.19
InvitatHomes INVH 23.27
iQIYI
IQ
21.83
IronMountain IRM 33.51
IsraelChemicals ICL
4.54
ItauUnibanco ITUB 13.11
-0.14
-1.19
0.11
1.19
0.02
0.10
-0.24
-0.30
-0.85
0.11
-0.13
-0.26
-0.47
0.06
0.37
-0.04
-0.01
0.89
0.01
-1.23
-0.75
-0.05
0.99
-0.06
-0.14
-0.34
0.10
0.16
-0.34
...
-3.37
-0.39
-1.13
...
-0.29
0.42
0.04
-0.14
0.04
0.22
0.16
0.11
-1.48
-0.10
-0.62
-0.93
-0.55
0.83
0.38
0.08
0.41
-0.08
0.31
0.64
-0.54
1.42
0.04
0.77
0.23
-0.06
-0.18
-0.36
0.15
-0.10
4.91
-0.90
-0.02
-1.72
0.53
-0.34
-4.55
0.03
-0.50
-0.31
0.08
0.35
1.51
-0.13
-2.82
-0.47
-0.64
-0.29
2.45
0.53
0.77
0.09
0.34
-0.43
0.23
-1.20
0.30
-0.35
0.16
-1.32
0.56
-0.04
-1.61
-2.16
-0.30
1.31
-0.02
-0.07
-0.31
JetBlue
JBLU 18.87
J&J
JNJ 126.06
JohnsonControls JCI 36.48
JonesLang JLL 169.37
JuniperNetworks JNPR 26.75
KAR Auction KAR 53.57
KB Fin
KB 54.41
KKR
KKR 21.75
KLA Tencor KLAC 112.73
KT
KT 13.18
KSCitySouthern KSU 108.81
Kellogg
K
61.65
KeyCorp
KEY 20.16
KeysightTechs KEYS 53.41
KilroyRealty KRC 74.17
KimberlyClark KMB 104.80
KimcoRealty KIM 14.28
KinderMorgan KMI 16.64
Knight-Swift KNX 40.66
Kohl's
KSS 61.18
KoninklijkePhil PHG 42.04
KoreaElcPwr KEP 17.10
KraftHeinz KHC 59.28
Kroger
KR 24.73
Kyocera
KYO 62.03
LATAMAirlines LTM 13.71
L Brands
LB 33.23
LG Display LPL 10.92
LINE
LN 36.36
LKQ
LKQ 30.60
LPL Financial LPLA 69.70
L3 Tech
LLL 191.87
LabCpAm LH 177.14
LamResearch LRCX 204.03
LamarAdv LAMR 67.06
LambWeston LW 67.62
LasVegasSands LVS 77.49
Lazard
LAZ 55.33
Lear
LEA 197.39
Leidos
LDOS 62.30
Lennar B
LEN.B 43.65
Lennar A
LEN 54.29
LennoxIntl LII 202.60
LeucadiaNatl LUK 24.57
LibertyBroadbandC LBRDK 72.28
LibertyBroadbandA LBRDA 71.71
LibertyGlobal C LBTYK 29.55
LibertyGlobal A LBTYA 30.22
LibertyFormOne A FWONA 29.01
LibertyFormOne C FWONK 30.29
LibertyBraves A BATRA 24.11
LibertyBraves C BATRK 24.50
LibertySirius B LSXMB 44.70
LibertySirius C LSXMK 44.30
LibertySirius A LSXMA 44.38
LibertyProperty LPT 43.36
EliLilly
LLY 83.07
LincolnNational LNC 68.08
LiveNationEnt LYV 42.72
LloydsBanking LYG 3.62
LockheedMartin LMT 319.08
Loews
L
51.26
LogitechIntl LOGI 40.57
LogMeIn
LOGM 111.65
Lowe's
LOW 86.58
lululemon LULU 98.72
LyondellBasell LYB 111.98
-0.11
-1.18
0.18
-1.40
0.23
-0.34
-0.31
-0.28
2.41
0.07
-1.19
0.26
-0.10
-0.23
-0.41
-0.10
-0.15
0.13
0.49
0.95
0.12
0.44
0.04
0.28
0.27
-0.27
0.90
0.01
-0.52
0.32
0.10
-4.23
1.20
2.48
0.18
-0.31
-0.65
-0.11
2.41
-0.97
0.03
...
-1.97
0.01
0.65
0.98
0.63
0.61
-0.33
-0.39
0.74
0.66
1.06
0.34
0.44
-0.10
0.62
0.07
0.20
-0.03
-4.96
-0.43
0.09
-3.00
-0.87
0.18
-0.59
M N
M&T Bank MTB 184.31 -1.33
MGM Resorts MGM 32.32 0.52
MKS Instrum MKSI 115.05 1.25
MPLX
MPLX 34.98 0.35
s MSCI
MSCI 160.54 -0.43
Macerich
MAC 55.88 -1.06
Macy's
M
29.63 -0.01
s MadisonSquGarden MSG260.90 6.70
MagellanMid MMP 69.00 0.75
s MagnaIntl MGA 65.44 2.22
Manpower MAN 95.21 -0.79
ManulifeFin MFC 19.37 0.11
MarathonOil MRO 21.42 0.42
MarathonPetrol MPC 78.34 1.01
Markel
MKL 1131.69-26.31
MarketAxess MKTX 199.63 -6.10
Marriott
MAR 139.35 -0.47
Marsh&McLen MMC 81.12 -0.45
MartinMarietta MLM 213.47 -1.98
MarvellTech MRVL 21.93 0.91
Masco
MAS 37.64 -0.43
s Mastercard MA 192.12 -1.23
MatchGroup MTCH 38.09 -2.41
MaximIntProducts MXIM 58.41 0.81
McCormick MKC 106.93 -0.09
McCormickVtg MKC.V 107.05 -0.13
McDonalds MCD 164.72 -0.67
McKesson MCK 151.02 1.81
Medtronic MDT 86.18 0.62
MelcoResorts MLCO 31.23 -0.19
MercadoLibre MELI 298.58-10.43
Merck
MRK 59.68 -0.01
s Methanex MEOH 69.95 0.50
0.22
0.04
-1.75
-0.56
-0.10
-0.20
1.58
Company
ADMA Biologics ADMA
AMAG Pharm AMAG
AXA Equitable EQH
Abiomed
ABMD
AdobeSystems ADBE
AlignTech
ALGN
AmerFirstMultifam ATAX
AmerSupercond AMSC
AnadarkoPetrol APC
ArcBest
ARCB
ArenaPharm
ARNA
ArrowheadPharm ARWR
AstroNova
ALOT
Autohome
ATHM
AveXis
AVXS
AxoGen
AXGN
AxonEnterprise AAXN
BHPBilliton
BHP
BHPBilliton
BBL
Baidu
BIDU
BeiGene
BGNE
BestBuy
BBY
Bilibili
BILI
BioLifeSols
BLFS
Bio-RadLab A BIO
BlinkChargingWt BLNKW
BootBarn
BOOT
BroadridgeFinl BR
BurlingtonStrs BURL
CAS MedSys CASM
CDW
CDW
CNOOC
CEO
CONSOL Energy CEIX
CVR Energy
CVI
CVR Refining CVRR
Cactus
WHD
CaliforniaRscs CRC
Cameco
CCJ
CantelMedical CMD
CarrizoOil
CRZO
CeridianHCM CDAY
Cerus
CERS
Chemed
CHE
ChinaPetrol
SNP
ChurchillDowns CHDN
Cintas
CTAS
ColliersIntl
CIGI
ColumbiaFin
CLBK
ConocoPhillips COP
Copart
CPRT
CoStar
CSGP
CoupaSoftware COUP
CrestwoodEquity CEQP
Cytosorbents CTSO
DSW
DSW
DawsonGeophys DWSN
DeckersOutdoor DECK
DenburyRscs DNR
5.60
24.55
21.69
383.33
243.34
296.47
6.50
7.15
69.93
49.20
46.93
10.10
19.70
107.54
217.94
46.00
58.18
51.52
46.79
278.76
194.70
78.76
12.20
8.84
287.56
1.67
22.17
118.36
141.50
1.48
79.26
180.35
44.59
41.79
19.50
33.53
35.78
11.68
125.17
26.15
37.13
6.79
331.36
105.61
296.75
184.22
75.25
16.19
70.21
55.63
396.59
55.10
30.00
8.55
24.70
7.80
99.46
3.90
5.4
-4.4
0.5
0.8
-1.5
...
0.4
-0.1
1.3
0.8
1.4
-4.7
0.8
0.4
0.1
-0.6
-0.5
1.5
1.4
0.9
7.4
0.6
5.3
8.3
0.7
2.1
3.3
-1.3
1.2
5.4
-0.4
2.5
2.3
2.1
4.3
3.1
3.7
0.3
0.7
3.2
6.1
...
-0.6
2.3
4.9
-0.3
5.0
1.3
0.2
0.6
-0.2
-0.9
1.0
4.3
2.4
0.9
1.3
-0.3
Mutual Funds
88.60
2.05
40.15
5.75
70.79
23.34
2.21
12.76
33.05
29.97
4.50
44.07
17.50
73.05
92.25
20.43
7.68
32.50
17.99
60.81
37.01
10.60
38.64
69.83
15.30
19.83
23.75
24.73
18.95
88.58
46.24
72.27
93.55
39.73
32.85
63.78
71.57
70.17
69.30
26.00
5.49
52.61
126.91
272.90
13.14
33.11
185.36
89.74
30.32
65.32
8.24
67.19
30.65
168.48
70.12
3.84
17.82
31.88
8.60
15.70
13.80
1.3
17.4
1.8
1.6
1.0
5.4
2.7
1.8
-0.2
-0.2
2.0
-3.8
1.7
-0.2
1.6
7.5
2.3
0.6
1.5
-1.4
1.5
1.0
-0.2
-1.1
4.2
0.8
-2.1
1.2
14.4
0.7
-1.3
-0.9
-1.0
-1.7
5.5
0.7
0.7
0.4
2.1
0.7
2.0
-0.6
-0.4
0.9
4.2
1.6
-1.5
-1.9
9.9
-2.8
1.7
-0.9
-0.3
1.0
-0.2
-2.4
...
0.6
4.1
3.7
3.7
LindbladExped LIND
LonestarRscs LONE
Luminex
LMNX
MSCI
MSCI
MadisonSquGarden MSG
MagnaIntl
MGA
Marcus&Millichap MMI
MastechDigital MHH
Mastercard
MA
Medifast
MED
Medpace
MEDP
MellanoxTech MLNX
MercerIntl
MERC
Methanex
MEOH
Microsoft
MSFT
MiXTelematics MIXT
MongoDB
MDB
MonolithicPower MPWR
Moody's
MCO
MudrickCapA MUDS
NICE
NICE
NVE
NVEC
Nanometrics
NANO
Nasdaq
NDAQ
NavigantConsult NCI
Neogen
NEOG
NetApp
NTAP
NineEnergy
NINE
NoahHoldings NOAH
NobleEnergy
NBL
Noodles
NDLS
NorthAmConstr NOA
NorthernTechsIntl NTIC
Novocure
NVCR
NuSkinEnts
NUS
Nutanix
NTNX
Nuvectra
NVTR
ONEOK
OKE
OccidentalPetrol OXY
Ollie'sBargain OLLI
OpticalCable
OCC
OptiNose
OPTN
OxfordLane
OXLC
PBF Energy
PBF
PTC
PTC
ParkHotels
PK
PennNational PENN
PennyMacTr
PMT
PetroleoBrasil PBR
Phillips66
PSX
PinnacleEnt
PNK
PioneerEnerSvcs PES
PivotalSoftware PVTL
Pool
POOL
PopularPfd
BPOPN
ProPhaseLabs PRPH
PureStorage
PSTG
QEP Resources QEP
REGENXBIO
RGNX
RLI
RLI
Radware
RDWR
12.20
6.00
26.25
162.29
263.96
66.11
38.26
16.93
194.72
128.35
43.00
85.20
15.40
70.70
98.69
21.00
46.56
128.87
174.80
9.71
101.69
104.00
38.36
91.21
23.48
74.99
72.85
34.47
61.00
35.49
9.55
7.02
33.00
30.25
77.87
60.00
17.31
66.77
86.14
67.00
3.15
25.40
11.25
42.25
88.71
30.84
34.10
18.47
16.88
119.16
33.70
5.35
19.62
151.47
25.52
5.34
23.85
12.94
50.25
67.55
23.87
1.3
4.4
-1.5
-0.3
2.6
3.5
1.1
5.2
-0.6
-1.9
2.6
0.8
1.3
0.7
0.3
6.3
0.3
-0.3
-1.2
-0.6
1.2
1.7
2.5
-0.2
0.7
...
-2.1
7.9
2.3
1.1
5.6
0.3
6.3
...
0.4
-3.0
1.0
1.2
-0.1
0.5
-3.1
10.2
0.3
2.5
-1.9
1.0
4.7
-0.1
2.8
0.5
1.9
1.0
-0.5
-0.5
0.3
26.8
-2.5
1.5
0.3
-2.0
0.4
Data provided by
Fund
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
Net YTD
Monday, May 14, 2018
Net YTD
NAV Chg %Ret Fund
American Century Inv
Ultra
47.39 +0.02
American Funds Cl A
33.83 +0.06
AmcpA p
AMutlA p 40.92 +0.11
27.20 +0.04
BalA p
12.49 -0.01
BondA p
61.51 +0.05
CapIBA p
CapWGrA 52.85 +0.11
58.03 +0.16
EupacA p
63.71 +0.12
FdInvA p
53.35 +0.09
GwthA p
HI TrA p
10.17 +0.01
41.13 +0.10
ICAA p
23.07 +0.01
IncoA p
45.61 +0.02
N PerA p
49.06 +0.09
NEcoA p
NwWrldA 68.34 +0.10
58.20 -0.04
SmCpA p
TxExA p
12.80
...
46.42 +0.09
WshA p
NAV Chg %Ret Fund
Baird Funds
...
9.1 AggBdInst 10.52
CorBdInst 10.87
...
7.4 BlackRock Funds A
...
0.8 GlblAlloc p 19.75
0.6 BlackRock Funds Inst
22.94 +0.06
-2.4 EqtyDivd
19.88
...
-1.3 GlblAlloc
3.8 StratIncOpptyIns 9.15 -0.69
3.2 Bridge Builder Trust
9.84 -0.01
2.7 CoreBond
7.7 Dimensional Fds
0.1 5GlbFxdInc 10.81 -0.01
2.2 EmgMktVa 32.30 +0.16
...
-0.6 EmMktCorEq 23.23
5.7 IntlCoreEq 14.89 +0.01
21.09 +0.02
9.9 IntlVal
21.77 +0.01
2.1 IntSmCo
23.25 +0.01
4.3 IntSmVa
...
-0.8 US CoreEq1 23.36
...
2.1 US CoreEq2 21.96
ScientificGames SGMS
SeacoastBkgFL SBCF
Seaspan
SSW
SeaspanPfdE SSWpE
SeaSpine
SPNE
ServiceMaster SERV
SiliconLab
SLAB
SimpsonMfg
SSD
Skyline
SKY
SolarEdgeTech SEDG
SophirisBio
SPHS
SoundFinBancorp SFBC
Stamps.com
STMP
StarBulkCarriers SBLK
StarsGroup
TSG
StateBankFin STBZ
Statoil
STO
SteinMart
SMRT
Steris
STE
StevenMadden SHOO
SuncorEnergy SU
SuperiorDrilling SDPI
Surmodics
SRDX
Syntel
SYNT
TPGPaceEnergyWt TPGE.WS
TPG PaceEnergy TPGE.U
TPGPaceEnergyA TPGE
TailoredBrands TLRD
TechTarget
TTGT
Teladoc
TDOC
TenetHealthcare THC
Total
TOT
TradeDesk
TTD
TrancntlRlty
TCI
TransUnion
TRU
Tredegar
TG
TriMas
TRS
TripAdvisor
TRIP
Triple-S Mgmt GTS
TurningPoint
TPB
Twilio
TWLO
2U
TWOU
TylerTech
TYL
US Ecology
ECOL
UltSoftware
ULTI
UnionPacific
UNP
uniQure
QURE
UnitedMicro
UMC
USBrentOilFd BNO
USComdtyIndxFd USCI
USDieselHeatingOil UHN
USGasolineFd UGA
US12moOilFd USL
UsanaHealth USNA
Visa
V
VailResorts
MTN
Vale
VALE
ValeroEnergy VLO
VeevaSystems VEEV
VeriSign
VRSN
Vicor
VICR
Net YTD
NAV Chg %Ret
36.80 -0.11 2.6
US Small
-2.4 US SmCpVal 38.93 -0.06 2.7
-2.2 US TgdVal 25.39 -0.02 2.2
39.09 +0.12 0.4
USLgVa
0.3 Dodge & Cox
Balanced 105.58 +0.21 0.3
1.2 GblStock
13.85 +0.03 -0.1
0.4 Income
13.44 -0.01 -1.4
-7.0 Intl Stk
46.57 +0.01 0.5
Stock
203.74 +0.67 1.6
-2.2 DoubleLine Funds
... NA
CoreFxdIncmI NA
-0.6 TotRetBdI
10.40 -0.01 -1.0
3.5 Edgewood Growth Instituti
... EdgewoodGrInst 33.02 -0.04 11.7
2.4 Fidelity
3.1 500IdxInst 95.56 +0.09 2.8
2.4 500IdxInstPrem 95.56 +0.09 2.8
1.2 500IdxPrem 95.56 +0.09 2.8
2.8 ExtMktIdxPrem r 64.41 -0.17 3.9
2.0 IntlIdxPrem r 44.11 +0.08 2.3
SAIUSLgCpIndxFd
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
61.50
29.29
9.30
25.68
13.76
57.25
104.45
62.08
29.10
70.74
3.14
39.00
251.50
13.51
38.23
34.13
27.34
3.35
104.31
49.40
41.26
2.33
47.05
30.76
2.45
11.54
10.60
35.94
24.12
49.45
33.16
64.37
77.43
52.00
69.69
21.10
28.95
50.69
33.48
23.79
56.00
98.58
232.48
59.90
264.60
143.26
33.33
2.75
21.84
44.95
21.24
35.22
25.22
113.65
132.50
239.54
15.00
116.20
79.15
128.35
39.95
11.2
-0.1
-1.7
0.5
-2.2
...
0.9
-2.4
-0.9
6.6
6.9
...
-0.7
-0.5
9.0
1.6
0.4
10.8
-1.1
0.5
3.3
3.7
0.4
0.7
5.8
4.1
1.2
9.1
0.1
1.4
0.8
0.7
-0.9
-3.2
-0.4
1.0
-2.5
-0.7
2.3
-0.2
-2.0
-5.4
-0.8
-2.0
-0.7
-1.2
0.5
1.9
1.8
0.2
1.0
1.1
0.8
1.1
-0.5
-0.1
2.5
1.1
-1.2
0.8
-0.6
Lows
ADT
ADT
AlimeraSciences ALIM
Alpha&OmegaSem AOSL
AltaMesaRscs AMR
AtlanticAmerican AAME
aTyrPharma
LIFE
BT Group
BT
BiglariA
BH.A
Biolase
BIOL
BlueknightEner BKEP
BostonPrivPfdD BPFHP
CampingWorld CWH
CedarRealtyPfC CDRpC
CescaTherap
KOOL
Coca-Cola Bottl COKE
CommandSec MOC
SABESP
SBS
CoreMoldingTech CMT
CorpAmAirports CAAP
Crawford B
CRD.B
DGSE
DGSE
DiffusionPharm DFFN
DominionEnerUn DCUD
EMC Insurance EMCI
Echelon
ELON
ExtremeNetworks EXTR
FarmerBros
FARM
GabelliDivPfdD GDVpD
IRSA Prop
IRCP
IntlFlavors
IFF
Lazydays
LAZY
LomaNegra
LOMA
MedleyCapital MCC
MedleyMgmt MDLY
NewYorkREIT NYRT
NorthernDynasty NAK
OceanBioChem OBCI
OhrPharm
OHRP
Ominto
OMNT
OrmatTech
ORA
PacGE pfE
PCGpE
PapaJohn's
PZZA
ProtagonistTherap PTGX
RiminiStreet
RMNI
SolGelTech
SLGL
SpiritofTexas STXB
Startek
SRT
StellarBiotech SBOT
SuperCom
SPCB
TMSRHolding TMSR
TataMotors
TTM
TelecomArgentina TEO
TelefonicaBras VIV
TelekmIndonesia TLK
USAutoPartsNtwk PRTS
UnionAcqnRt LTNr
US ShortOilFd DNO
UnityBiotech UBX
Xerox
XRX
YumaEnergy
YUMA
Net YTD
NAV Chg %Ret Fund
14.68 +0.01
78.38 +0.02
78.38 +0.03
11.20 -0.02
Fidelity Advisor I
NwInsghtI 33.67 -0.02
Fidelity Freedom
16.34 +0.01
FF2020
14.25
...
FF2025
17.89 +0.01
FF2030
Freedom2020 K 16.32 +0.01
Freedom2025 K 14.23
...
Freedom2030 K 17.87 +0.01
Freedom2035 K 15.15 +0.01
Freedom2040 K 10.65 +0.01
Fidelity Invest
24.24 +0.02
Balanc
95.94 +0.01
BluCh
131.35 -0.09
Contra
ContraK
131.31 -0.09
10.25 +0.02
CpInc r
40.45 +0.06
DivIntl
197.42 -0.10
GroCo
GrowCoK 197.45 -0.10
7.68 -0.01
InvGB
10.90 -0.02
InvGrBd
55.42 +0.21
LowP r
105.42 +0.05
MagIn
OTC
12.10 -0.01
23.93 +0.02
Puritn
SrsEmrgMkt 21.51 +0.03
...
SrsGroCoRetail 18.46
SrsIntlGrw 16.43 -0.01
10.86 +0.02
SrsIntlVal
2.8
3.0
3.0
-2.4
7.4
1.1
1.2
1.7
1.1
1.3
1.8
2.3
2.4
2.5
9.3
8.9
9.0
0.9
1.1
10.5
10.5
-2.2
-2.1
1.7
5.7
10.2
2.6
0.5
11.0
1.7
1.6
TotalBond
7.27 -1.4
0.79 ...
12.92 -2.3
6.60 2.9
2.70 -8.3
1.55 -32.6
14.36 -2.3
950.12 -5.1
1.43 -6.4
3.60 ...
25.02 ...
21.18 -2.2
19.07 0.4
0.98 4.7
126.75 -3.1
1.50 -5.6
7.66 -3.7
13.80 -1.4
9.94 -6.0
7.54 -6.6
0.70 -2.5
0.42 -2.0
43.55 -1.2
25.04 -1.8
4.07 0.5
8.10 -2.6
23.75 -2.2
25.36 -0.5
34.99 -7.8
124.68 -1.0
8.61 -1.8
14.12 -16.3
3.48 -2.0
5.25 -0.9
17.51 -1.1
0.78 -4.5
3.26 0.8
0.20 -4.9
1.18 -55.1
51.63 -6.1
20.41 -1.2
50.31 -3.2
5.50 -1.7
6.25 -5.6
7.39 -12.5
21.09 0.6
6.11 -10.2
2.13 -3.1
1.97 -12.2
8.01 -4.3
23.76 -2.2
21.62 -0.7
12.80 -2.3
24.97 -2.6
1.45 2.0
0.29 -6.5
46.66 -0.8
14.75 -4.5
27.11 -4.3
0.41 -57.9
-0.24
0.77
3.23
-0.08
-0.81
-0.18
-0.10
0.30
-0.20
...
-0.12
-0.14
-0.07
-0.77
-0.09
-0.62
2.48
2.54
-0.17
-1.70
1.13
-0.32
0.10
-0.02
0.24
-2.21
0.30
1.31
0.01
0.19
-5.37
-0.39
-0.16
0.24
0.16
-0.07
-0.28
0.57
-2.58
PetroChina PTR 78.33
s PetroleoBrasil PBR 16.65
PetroleoBrasilA PBR.A 14.46
Pfizer
PFE 35.86
PhilipMorris PM 80.86
s Phillips66 PSX 118.29
PinnacleFoods PF 63.24
PinnacleWest PNW 78.08
PioneerNatRscs PXD 201.62
PlainsAllAmPipe PAA 24.40
PlainsGP
PAGP 24.71
PolarisIndustries PII 106.91
s Pool
POOL 148.97
Praxair
PX 158.45
PrincipalFin PFG 59.11
Procter&Gamble PG 73.28
Progressive PGR 61.72
Prologis
PLD 65.21
Proofpoint PFPT 122.85
PrudentialFin PRU 99.87
Prudential PUK 51.74
PublicServiceEnt PEG 50.89
PublicStorage PSA 209.44
PulteGroup PHM 30.96
Qiagen
QGEN 35.48
Qorvo
QRVO 81.67
Qualcomm QCOM 56.74
QuestDiag DGX 102.93
QurateQVC A QRTEA 22.36
QurateQVC B QRTEB 22.29
R S
RELX
RENX 21.32
RELX
RELX 21.55
RPM
RPM 49.66
RSP Permian RSPP 47.78
RalphLauren RL 110.48
RandgoldRscs GOLD 79.91
RaymondJames RJF 93.79
Raytheon RTN 209.19
RealtyIncome O
52.78
s RedHat
RHT 164.75
RegencyCtrs REG 57.70
RegenPharm REGN 309.54
RegionsFin RF 19.20
ReinsGrp
RGA 150.16
RelianceSteel RS 91.84
RepublicSvcs RSG 67.78
ResMed
RMD 102.15
RestaurantBrands QSR 57.06
RingCentral RNG 74.80
RioTinto
RIO 57.85
RobertHalf RHI 62.85
Rockwell
ROK 178.86
RockwellCollins COL 135.19
RogersComm B RCI 48.22
Rollins
ROL 50.29
RoperTech ROP 278.64
RossStores ROST 82.66
RoyalBkCanada RY 78.83
RoyalBkScotland RBS 8.05
RoyalCaribbean RCL 107.13
RoyalDutchA RDS.A 72.14
s RoyalDutchB RDS.B 74.93
RoyalGold RGLD 89.02
Ryanair
RYAAY 111.35
SAP
SAP 115.19
S&P Global SPGI 199.07
SBA Comm SBAC 157.99
SEI Investments SEIC 63.98
Sina
SINA 92.91
s SINOPEC
SHI 68.07
SK Telecom SKM 23.03
SLGreenRealty SLG 98.96
SS&C Tech SSNC 48.42
SVB Fin
SIVB 319.20
Sabre
SABR 23.60
SageTherap SAGE 172.86
Salesforce.com CRM 127.69
Sanofi
SNY 38.53
SantanderCons SC 19.52
s SareptaTherap SRPT 93.10
Sasol
SSL 37.45
Schlumberger SLB 71.60
SchwabC
SCHW 58.93
Seagate
STX 57.07
SealedAir SEE 43.92
SeattleGenetics SGEN 57.58
SemicondctrMfg SMI 6.89
SempraEnergy SRE 106.51
ServiceCorp SCI 37.09
s ServiceMaster SERV 57.07
ServiceNow NOW 173.73
ShawComm B SJR 20.45
SherwinWilliams SHW 384.58
ShinhanFin SHG 45.20
Shire
SHPG 168.52
Shopify
SHOP 142.64
SignatureBank SBNY 130.95
SimonProperty SPG 158.02
SiriusXM
SIRI 6.85
Skyworks SWKS 99.02
SmithAO
AOS 63.66
Amount
Yld % New/Old Frq
BGSF
CBT
CpN
CTWS
FRME
HWBK
MKSI
NEWT
PAG
TSCO
UCBI
5.8 .30 /.25 Q
2.2 .33 /.315 Q
8.3 .5516 /.50856 Q
1.9 .3125 /.2975 Q
2.0 .22 /.18 Q
1.8 .10 /.06731 Q
0.7 .20 /.18 Q
8.9 .42 /.40 Q
2.9 .35 /.34 Q
1.7 .31 /.27 Q
1.8 .15 /.12 Q
NKSH
2.5
.58 /.61 SA
PIHPP
May29 /May21
Jun08 /May25
Jul30 /Jul27
Jun15 /Jun01
Jun15 /Jun01
Jul01 /Jun15
Jun08 /May28
Jun29 /Jun15
Jun01 /May21
Jun12 /May29
Jul05 /Jun15
Jun01 /May21
.5833
Jun15 /Jun01
4.00%
Jul01 /Jun15
Stocks
Hawthorn Bancshares
HWBK
1.8
1.38 Smith&Nephew SNN 35.80 0.04 UltraparPart UGP 15.22
0.46 Smucker
SJM 111.58 -1.44 UnderArmour A UAA 18.44
0.30 Snap
SNAP 10.98 -0.06 UnderArmour C UA 16.66
UN 56.77
0.36 SnapOn
SNA 149.60 0.62 Unilever
UL 56.03
-0.34 SOQUIMICH SQM 56.00 -1.05 Unilever
0.53 Sony
SNE 48.34 0.26 s UnionPacific UNP 140.71
-0.33 Southern
SO 44.55 -0.38 UnitedContinental UAL 66.64
-0.04 SoCopper
SCCO 51.78 0.01 s UnitedMicro UMC 2.75
UPS 116.34
-0.55 SouthwestAir LUV 52.20 -0.26 UPS B
0.72 SpectraEnerPtrs SEP 33.30 0.33 UnitedRentals URI 165.56
0.56 SpiritAeroSys SPR 84.09 -0.18 US Bancorp USB 51.18
X
36.30
-0.31 Splunk
SPLK 112.10 -3.95 US Steel
-0.73 Spotify
SPOT 159.97 3.20 UnitedTech UTX 124.98
0.82 Sprint
S
5.14 -0.02 UnitedHealth UNH 242.90
0.08 Square
SQ 54.28 -0.45 UniversalHealthB UHS 118.71
-0.09 StanleyBlackDck SWK 143.46 -0.24 UnumGroup UNM 37.88
VER 7.07
-0.71 Starbucks SBUX 57.13 -0.14 VEREIT
VFC 77.58
-0.12 StateStreet STT 102.31 0.30 VF
-3.37 s Statoil
STO 27.23 0.10 VICI Prop VICI 19.30
V
131.21
-0.01 SteelDynamics STLD 48.56 0.33 s Visa
-0.40 STMicroelec STM 24.37 0.31 s VailResorts MTN 237.87
VALE 14.97
-0.26 Stryker
SYK 169.15 -0.33 s Vale
-2.16 SumitomoMits SMFG 8.61 0.27 ValeantPharm VRX 20.81
-0.36 SunComms SUI 93.24 -0.87 s ValeroEnergy VLO 115.87
0.08 SunLifeFinancial SLF 43.05 0.45 VarianMed VAR 117.63
VVC 69.86
0.03 s SuncorEnergy SU 41.15 1.32 Vectren
VEDL 17.04
1.51 SunTrustBanks STI 68.93 -0.31 Vedanta
0.43 Symantec SYMC 21.40 1.88 s VeevaSystems VEEV 76.75
VTR 53.16
0.34 SynchronyFin SYF 33.94 -0.17 Ventas
VRSN 126.65
-0.16 Synopsys
SNPS 89.89 -1.13 s VeriSign
SynovusFin SNV 53.60 -0.40 VeriskAnalytics VRSK 105.25
VZ 48.49
Sysco
SYY 62.90 0.08 Verizon
VertxPharm VRTX 157.46
-0.08
Viacom B
VIAB 28.74
-0.23
Viacom A VIA 34.65
0.19 TAL Education TAL 40.62 -0.48 Vipshop
VIPS 15.09
-0.40 TD Ameritrade AMTD 61.00 -0.57 VistraEnergy VST 23.10
1.47 TE Connectivity TEL 95.05 0.47 VMware
VMW 141.25
0.20 Telus
TU 35.62 -0.11 Vodafone VOD 28.37
0.03 Ternium
TX 39.70 -0.24 VornadoRealty VNO 68.99
-4.64 TIM Part
TSU 18.88 -0.69 VoyaFinancial VOYA 52.62
-0.21 TJX
TJX 84.92 0.85 VulcanMatls VMC 126.84
-7.72 T-MobileUS TMUS 56.46 0.07
-0.85 TRowePrice TROW 118.01 -0.21
2.60 TableauSftwr DATA 92.08 -2.92
WBC 129.33
-0.12 TaiwanSemi TSM 39.95 0.04 WABCO
-1.49 TakeTwoSoftware TTWO 114.40 -1.69 WEC Energy WEC 61.82
s
WEX 176.83
-0.06 Tapestry
TPR 45.70 -0.34 WEX
-0.13 TargaResources TRGP 48.85 0.73 W.P.Carey WPC 65.39
WPP 87.84
0.16 Target
TGT 72.90 2.65 WPP
0.60 t
TataMotors TTM 23.76 -0.54 WPX Energy WPX 18.32
s Wabtec
WAB 93.18
-0.40
TechnipFMC FTI 31.74 -0.27
WalgreensBoots WBA 65.10
0.46
TeckRscsB TECK 28.34 0.51
Walmart
WMT 84.39
-0.30 t
TelecomArgentina TEO 22.05 -0.15
WasteConnections WCN 75.25
0.95
TelecomItalia A TI.A 8.45 -0.04
WasteMgt WM 82.63
1.22
TelecomItalia TI
9.55 -0.06
Waters
WAT 196.96
0.10
TeledyneTech TDY 196.72 -1.55 Watsco
WSO 178.02
-0.26
Teleflex
TFX
265.29 -0.05
Wayfair
W 83.73
-0.79
Ericsson
ERIC
7.72 -0.19 Weibo
WB 107.80
0.72
t TelefonicaBras VIV 12.82 -0.30
WellCareHealth WCG 218.57
0.34
Telefonica TEF 9.81 -0.13 WellsFargo WFC 54.48
-0.01
t
0.07 TelekmIndonesia TLK 25.04 -0.68 Welltower WELL 55.51
Tenaris
TS
38.51
-0.17
WestPharmSvcs WST 90.07
0.15
TER 36.64 0.31 WestarEnergy WR 54.19
0.86 Teradyne
TSLA 291.97 -9.09 WestAllianceBcp WAL 61.51
-1.40 Tesla
-0.15 TevaPharm TEVA 20.38 1.07 WesternDigital WDC 81.12
-0.99 TexasInstruments TXN 110.64 1.39 WesternGasEquity WGP 36.13
TXT 65.53 -0.26 WesternGasPtrs WES 52.22
-0.92 Textron
-2.11 ThermoFisherSci TMO 217.41 0.86 WesternUnion WU 19.75
-0.40 ThomsonReuters TRI 38.36 0.72 WestlakeChem WLK 117.69
MMM 205.76 0.60 WestpacBanking WBK 22.58
1.21 3M
TIF 102.99 -0.76 WestRock WRK 61.21
1.19 Tiffany
TimeWarner
TWX 94.38 0.57 Weyerhaeuser WY 36.39
-0.22
TOL 42.79 0.13 WheatonPrecMet WPM 21.82
-1.12 Toll Bros
Torchmark
TMK 84.75 -0.77 Whirlpool WHR 157.65
-0.77
TTC 58.10 -2.02 Williams
WMB 27.25
-1.82 Toro
TorontoDomBk
TD 58.62 0.24 WilliamsPartners WPZ 38.40
0.36
TOT 64.24 0.45 WillisTowers WLTW 154.42
2.24 s Total
WIT 4.68
-2.94 TotalSystem TSS 86.69 -1.62 Wipro
0.15 ToyotaMotor TM 138.14 0.07 WooriBank WF 44.18
WDAY 133.96
0.17 TractorSupply TSCO 71.21 1.59 Workday
WP 80.94
0.21 TransCanada TRP 43.80 0.02 Worldpay
0.38 TransDigm TDG 332.67 -1.17 Wyndham WYN 111.35
0.52 Transocean RIG 13.35 0.33 WynnResorts WYNN 191.63
-0.53 s TransUnion TRU 69.20 -0.30 s XPO Logistics XPO 108.07
TRV 130.00 -1.25 XcelEnergy XEL 45.01
0.36 Travelers
TRMB 34.93 0.40 t Xerox
XRX 28.87
-0.45 Trimble
0.66 s TripAdvisor TRIP 48.67 -0.32 Xilinx
XLNX 71.44
0.17 TurkcellIletism TKC 7.64 -0.03 Xylem
XYL 73.47
-0.57 TurquoiseHill TRQ 2.95 0.01 YPF
YPF 20.52
0.09 21stCenturyFoxA FOXA 37.76 -0.18 YY
YY 105.60
0.02 21stCenturyFoxB FOX 37.29 -0.19 Yandex
YNDX 34.86
TWTR 33.39 0.64 YumBrands YUM 83.60
-5.14 Twitter
TYL 229.07 -1.94 YumChina YUMC 37.38
0.06 s TylerTech
3.49 TysonFoods TSN 67.62 -0.63 ZTO Express ZTO 17.19
0.51 UBS Group UBS 16.27 -0.07 ZayoGroup ZAYO 33.69
UDR 36.08 -0.21 ZebraTech ZBRA 153.65
2.07 UDR
UGI 49.99 0.06 Zendesk
ZEN 55.00
-1.83 UGI
Z
0.33 US Foods USFD 34.07 -0.01 Zillow C
54.65
USG 41.55 -0.20 Zillow A
ZG 53.94
-1.87 USG
0.06 UbiquitiNetworks UBNT 80.36 -1.36 ZimmerBiomet ZBH 115.20
2.01 UltaBeauty ULTA 247.04 -2.96 ZionsBancorp ZION 57.61
ZTS 84.06
-0.33 s UltSoftware ULTI 261.25 -1.91 Zoetis
T U V
0.16
-0.32
-0.24
0.07
0.11
-1.65
-0.28
0.05
0.89
-1.33
-0.32
0.54
0.50
4.62
0.35
-0.07
0.01
-0.36
0.30
-0.61
-0.16
0.36
-0.04
1.24
-0.87
0.04
-0.22
-0.96
-0.35
1.00
-0.63
-0.13
1.49
-1.48
-0.60
-0.02
0.16
-2.79
-0.40
-0.99
-0.14
-0.53
W X Y Z
Symbol
Algonquin Power
Banco Santander ADR
Brookfield Asset Mgmt
Brookfield Property Ptrs
BT Group ADR
Canadian Pacific Railway
Colliers International
Fresenius Medical ADR
Gerdau ADR
Grupo Supervielle ADR
Magna Intl
Maiden Holdings
Navios Marit Acq
Orange ADR
Quarterhill
RenaissanceRe Hldgs 6.08%
RenaissanceRe Pfd. E
Ritchie Bros
Stantec
TELUS Corp.
Wheaton Precious Metals
XL Group
Initial
1347 Prop Ins 8% Pfd. A
Net
Sym Close Chg
Stock
Amount
Yld % New/Old Frq
-1.11
-0.07
0.42
-0.42
-0.47
-0.02
0.12
1.01
1.01
-0.45
-0.34
0.44
-0.60
-0.98
0.48
1.12
0.03
-0.74
-0.01
0.40
-0.10
2.32
0.68
1.10
-0.13
0.58
0.28
0.18
-0.23
-0.04
1.68
0.11
0.91
-0.95
...
-0.12
-1.78
0.35
-0.36
-4.02
-1.00
-0.25
-1.30
2.60
-0.06
-0.24
3.04
-0.23
-1.02
-0.05
0.24
-0.38
-1.92
-1.03
-0.26
-0.31
-1.24
-0.20
-0.39
Payable /
Record
Foreign
Payable /
Record
Reduced
National Bankshares
Net
Sym Close Chg
Stock
Company
Increased
AQN
BSMX
BAM
BPY
BT
CP
CIGI
FMS
GGB
SUPV
MGA
MHLD
NNA
ORAN
QTRH
RNRpC
RNRpE
RBA
STN
TU
WPM
XL
5.2
1.5
6.5
9.9
1.1
0.1
1.2
0.8
2.0
7.5
10.3
3.3
2.8
6.0
5.4
2.1
1.7
4.6
1.6
1.6
Q
.1282
.16242
Q
.15
Q
.315
.71096 SA
.50456 Q
.05 SA
.63234 A
.02251
.11497
Q
.33
Q
.15
Q
.02
.4742
.0097 Q
Q
.38
.33594 Q
Q
.17
.10673 Q
.40753 Q
Q
.09
Q
.22
Jul13 /Jun29
Jul06 /Jun28
Jun29 /May31
Jun29 /May31
Sep10 /Aug10
Jul30 /Jun29
Jul11 /Jun29
Jun04 /May22
Jun08 /May24
May30 /May21
Jun08 /May25
Jul12 /Jul02
Jun27 /Jun21
Jun22 /Jun04
Jul06 /Jun15
Jun01 /May31
Jun01 /May31
Jun20 /May30
Jul12 /Jun29
Jul03 /Jun08
Jun07 /May25
Jul02 /Jun15
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Monday, May 14, 2018
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
FT DJ Internet
HealthCareSelSect
IndSelSectorSPDR
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
iShMSCI EAFE
Net YTD
NAV Chg %Ret Fund
10.34 -0.01
First Eagle Funds
59.57
...
FPA Funds
35.06 +0.02
FPACres
FrankTemp/Frank Adv
IncomeAdv 2.30 +0.01
FrankTemp/Franklin A
7.29
...
CA TF A p
2.32 +0.01
IncomeA p
RisDv A p 61.32 +0.17
FrankTemp/Franklin C
Income C t 2.35 +0.01
FrankTemp/Temp A
GlBond A p 11.78 -0.05
Growth A p 27.43 +0.08
FrankTemp/Temp Adv
GlBondAdv p 11.74 -0.04
Harbor Funds
CapApInst 76.86 -0.03
69.04 +0.16
IntlInst r
Harding Loevner
IntlEq
NA
...
Invesco Funds A
EqIncA
11.00 +0.03
John Hancock Class 1
LSBalncd
15.31 -0.01
16.41
...
LSGwth
John Hancock Instl
DispValMCI 23.52 -0.05
JPMorgan Funds
MdCpVal L 39.77 -0.03
JPMorgan R Class
11.25 -0.01
CoreBond
GlbA
O P Q
OGE Energy OGE 33.99
s ONEOK
OKE 66.59
OReillyAuto ORLY 272.85
s OccidentalPetrol OXY 84.89
OldDomFreight ODFL 146.28
OldRepublic ORI 20.57
Omnicom OMC 74.98
ON Semi
ON 23.69
OpenText OTEX 34.64
Oracle
ORCL 46.82
Orange
ORAN 17.98
OrbitalATK OA 133.38
Orix
IX
90.11
OwensCorning OC 66.15
PG&E
PCG 43.23
PNC Fin
PNC 150.35
POSCO
PKX 86.10
PPG Ind
PPG 102.97
PPL
PPL 27.65
s PTC
PTC 86.35
PVH
PVH 154.32
Paccar
PCAR 63.19
PackagingCpAm PKG 116.72
PacWestBancorp PACW 53.36
PagSeguroDig PAGS 32.58
PaloAltoNtwks PANW 200.10
s ParkHotels PK 30.82
ParkerHannifin PH 176.43
ParsleyEnergy PE 31.62
Paychex
PAYX 63.53
PaycomSoftware PAYC 102.01
PayPal
PYPL 78.81
Pearson
PSO 12.30
PembinaPipeline PBA 34.89
Pentair
PNR 44.83
People'sUtdFin PBCT 18.57
PepsiCo
PEP 97.15
PerkinElmer PKI 76.22
Perrigo
PRGO 74.94
Symbol
New Highs and Lows |
DexCom
DXCM
DoverDowns
DDE
ENI
E
EagleBulkShip EGLE
EastWestBncp EWBC
Ecopetrol
EC
EnergyFuels
UUUU
Enerplus
ERF
EnovaIntl
ENVA
Espey
ESP
Ever-Glory
EVK
Everbridge
EVBG
Evolus
EOLS
ExpeditorsIntl EXPD
Exponent
EXPO
FederatedNatl FNHC
FirstBanCorp FBP
FstCmntyBcsh FCBC
FirstFinNW
FFNW
Fortinet
FTNT
GDS Holdings GDS
GeneralFin
GFN
GenomicHealth GHDX
GoDaddy
GDDY
GoodrichPetrol GDP
GrafTechIntl
EAF
GuarFedBcsh GFED
Guess
GES
HUYA
HUYA
Haemonetic
HAE
HamiltonLane HLNE
HealthEquity HQY
Heico
HEI
Heidrick&Strug HSII
HeronTherap HRTX
Hess
HES
Hess Pfd
HESpA
Hexcel
HXL
HollyFrontier
HFC
HorizonTechNts22 HTFA
IEC Elec
IEC
IHSMarkit
INFO
Icon
ICLR
Illumina
ILMN
Immersion
IMMR
ImperialOil
IMO
Inogen
INGN
Insperity
NSP
InspireMedical INSP
IntegraLifeSci IART
IntelligentSys INS
InterXion
INXN
Intricon
IIN
JazzPharma
JAZZ
Kaman
KAMN
LadenburgThalmann LTS
LakeShoreBancorp LSBK
LaSalleHotel
LHO
LegacyReserves LGCY
LegacyResPfdA LGCYP
LegacyResPfdB LGCYO
MetLife
MET 46.96 0.19
MettlerToledo MTD 568.92 5.20
MichaelKors KORS 63.19 0.11
MicroFocus MFGP 17.18 -0.37
MicrochipTech MCHP 93.46 0.51
MicronTech MU 53.00 1.18
Microsemi MSCC 67.71 0.87
s Microsoft MSFT 98.03 0.33
MidAmApt MAA 91.53 -0.45
Middleby
MIDD 105.96 -1.36
MitsubishiUFJ MUFG 6.67 0.06
MizuhoFin MFG 3.69 0.04
MobileTeleSys MBT 10.16 0.02
MohawkInds MHK 210.64 -2.94
MolsonCoors B TAP 60.42 -0.30
Momo
MOMO 37.75 0.02
Mondelez MDLZ 39.22 -0.01
Monsanto MON 124.95 -0.02
MonsterBev MNST 48.93 -0.34
s Moody's
MCO 172.00 -2.05
MorganStanley MS 55.22 0.02
Mosaic
MOS 27.17 0.61
MotorolaSol MSI 107.38 -0.99
Mylan
MYL 38.26 -0.15
s NICE
NICE 101.33 1.20
NRG Energy NRG 34.78 -0.13
NVR
NVR 3052.00 -1.61
NXP Semi NXPI 110.74 11.73
s Nasdaq
NDAQ 90.40 -0.14
NationalGrid NGG 57.77 0.28
NatlOilwell NOV 41.06 0.41
NatlRetailProp NNN 39.82 -0.51
NektarTherap NKTR 80.93 1.49
s NetApp
NTAP 70.74 -1.53
Netease
NTES 269.55 1.85
Netflix
NFLX 328.53 2.07
Neurocrine NBIX 91.01 0.61
NewOrientalEduc EDU 93.52 0.27
NewResidInvt NRZ 17.98
...
NewellBrands NWL 27.11 0.05
NewmontMin NEM 40.39
...
NewsCorp B NWS 16.25 0.75
NewsCorp A NWSA 15.82 0.64
NextEraEnergy NEE 160.20 -0.54
Nike
NKE 68.84 0.41
NiSource
NI
24.85 -0.08
s NobleEnergy NBL 35.24 0.38
Nokia
NOK 6.30 -0.08
NomuraHoldings NMR 5.61 0.03
Nordson
NDSN 133.29 1.04
Nordstrom JWN 49.32 0.52
NorfolkSouthern NSC 150.44 -1.96
NorthernTrust NTRS 108.64 -0.28
NorthropGrum NOC 318.72 -6.58
NorwegCruise NCLH 51.42 -0.04
Novartis
NVS 78.33 0.78
NovoNordisk NVO 49.98 0.89
Nucor
NUE 62.76 -0.36
s Nutanix
NTNX 57.33 -1.77
Nutrien
NTR 50.50 1.63
NVIDIA
NVDA 255.36 0.83
Net
Sym Close Chg
Stock
Dividend announcements from May 14.
BG Staffing
Cabot Corp
52-Wk %
52-Wk %
Citigroup Cap XIII TruPS
WSJ.com/newhighs
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Connecticut Water Service
36.35 0.6 First Merchants
RedHat
RHT 173.58 -4.5 VishayPrecision VPG
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
8.04 1.3
15.48 9.8 W&T Offshore WTI
RenewableEnergy REGI
Hawthorn Bancshares
WEX 178.46 0.2
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low RosettaStone RST
15.46 -0.8 WEX
95.54 0.1 MKS Instruments
WAB
RoyalDutchB RDS.B 75.25 1.2 Wabtec
in the latest session. % CHG-Daily percentage change from the previous trading session.
RudolphTech
RTEC 32.60 0.8 WeightWatchers WTW 79.84 5.4 Newtek Business Services
WWE 43.88 0.1
68.29 1.8 WW Ent
SINOPEC
SHI
Monday, May 14, 2018
2.66 2.5 XPO Logistics XPO 110.68 -0.9 Penske Automotive
SMTC
SMTX
52-Wk %
52-Wk %
52-Wk % SareptaTherap SRPT 95.50 0.2 Yext
YEXT 15.05 0.3 Tractor Supply
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg SchulmanA
SHLM 43.95 0.8
Utd Community Banks
Highs
Net
Sym Close Chg
Stock
Dividend Changes
J K L
JD.com
JD 37.17
JPMorganChase JPM 113.90
JackHenry JKHY 122.24
JacobsEngg JEC 62.99
JamesHardie JHX 17.74
JanusHenderson JHG 34.01
s JazzPharma JAZZ 166.00
Net
Sym Close Chg
Stock
AMLP
XLY
XLP
XLE
XLF
FDN
XLV
XLI
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
MTUM
FLOT
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
10.30
105.09
49.52
77.26
28.24
131.74
83.58
74.58
103.57
119.16
67.79
57.38
64.35
274.82
193.58
80.78
62.65
105.76
97.25
74.51
52.72
111.12
50.98
12.61
115.05
85.75
108.98
103.52
73.80
40.65
71.90
2.39 –4.5
6.5
0.19
–0.04 –13.0
6.9
0.69
1.2
–0.07
–0.64 19.9
1.1
0.66
–0.17 –1.4
–0.03 –0.9
–0.06 –2.5
2.6
0.12
0.8
0.10
2.0
0.22
2.2
0.13
2.0
–0.11
5.2
–0.43
2.5
0.03
–0.09 –3.3
0.12 –1.3
2.1
–0.01
–0.21 –0.1
7.7
0.02
0.3
0.04
0.8
–0.32
–0.18 –5.4
0.02 –1.7
–0.17 –6.1
–0.08 –2.9
2.4
0.15
0.5
–0.71
2.3
0.18
Net YTD
NAV Chg %Ret Fund
IncomeFd
-1.9 Lazard Instl
EmgMktEq 19.57 -0.07
0.9 Lord Abbett A
...
ShtDurIncmA p 4.19
1.1 Lord Abbett F
ShtDurIncm 4.19
...
-0.3 Metropolitan West
10.34 -0.01
TotRetBd
-1.2 TotRetBdI
10.34 -0.01
-0.4 TRBdPlan
9.73 -0.01
0.5 MFS Funds Class I
39.88 +0.01
ValueI
-0.6 MFS Funds Instl
25.96 +0.04
IntlEq
0.1 Oakmark Funds Invest
0.6 EqtyInc r
31.98 +0.08
NA
...
Oakmark
0.2 OakmrkInt
NA
...
Old Westbury Fds
10.7 LrgCpStr
14.82 +0.01
2.3 Oppenheimer Y
NA
...
DevMktY
NA IntGrowY
44.77 +0.04
Parnassus Fds
0.7 ParnEqFd
43.44 +0.06
PIMCO Fds Instl
1.0 AllAsset
NA
...
2.1 ShortT
NA
...
9.94 -0.02
TotRt
0.9 PIMCO Funds A
IncomeFd
NA
...
-1.3 PIMCO Funds I2
NA
...
Income
-2.0 PIMCO Funds Instl
-2.2 Price Funds
...
...
-2.2
-2.1
-2.1
-1.9
2.0
-0.7
NA
NA
2.5
NA
2.6
2.2
NA
NA
-2.4
NA
NA
ETF
Net YTD
NAV Chg %Ret Fund
NA
Closing Chg YTD
Symbol Price (%) (%)
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500EW
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
SHV
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
RSP
BKLN
JNK
GLD
SCHF
SCHB
Closing Chg YTD
Symbol Price (%) (%)
ETF
66.79
47.46
44.85
61.62
107.68
108.50
142.26
152.04
122.83
199.11
159.23
128.27
162.04
211.24
88.14
223.67
162.40
111.84
37.09
110.29
111.79
83.16
101.19
118.60
126.37
101.51
169.75
101.76
23.12
35.82
124.49
34.74
66.13
0.01
0.13
0.02
0.55
1.03
–0.03
0.02
0.12
0.11
–0.41
–0.38
–0.34
0.09
–0.11
–0.11
–0.23
0.07
0.15
0.08
–0.01
–0.25
...
–0.22
–0.53
–0.13
0.02
0.17
0.04
0.04
0.03
–0.41
0.17
0.08
3.6
0.7
3.4
2.8
0.9
–2.0
5.6
2.3
–1.2
6.6
4.4
2.0
2.4
1.5
–1.1
3.6
6.3
–2.1
–2.6
0.0
–2.0
–0.8
–4.1
–6.5
4.7
–0.0
9.0
0.7
0.3
–2.5
0.7
2.0
2.5
Net YTD
NAV Chg %Ret Fund
SchwabUS Div
SchwabUS LC
SchwabUS SC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdRealEst
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
Net YTD
NAV Chg %Ret Fund
... NA IntlEqIdxInst 20.65 +0.04 2.4 TotIntlAdmIdx r 30.98 +0.05
Tweedy Browne Fds
TotStAdml 68.45 +0.02
TxMIn r
14.65 +0.02
41.21 +0.08
ValAdml
WdsrllAdml 67.59 +0.16
WellsIAdml 63.49 +0.02
WelltnAdml 72.10 +0.09
WndsrAdml 80.05 +0.14
VANGUARD FDS
26.60 -0.01
DivdGro
...
INSTTRF2020 22.71
INSTTRF2025 23.12 +0.01
INSTTRF2030 23.44 +0.01
INSTTRF2035 23.77 +0.01
INSTTRF2040 24.09 +0.01
INSTTRF2045 24.31 +0.02
INSTTRF2050 24.33 +0.01
40.56 +0.03
IntlVal
19.93
...
LifeCon
LifeGro
34.26 +0.02
27.41
...
LifeMod
27.59 +0.05
PrmcpCor
30.07 +0.06
SelValu r
STAR
27.24 +0.01
TgtRe2015 15.39 -0.01
...
TgtRe2020 31.64
TgtRe2025 18.70 +0.01
TgtRe2030 34.09
...
TgtRe2035 21.03 +0.01
TgtRe2040 36.48 +0.02
TgtRe2045 22.97 +0.01
TgtRe2050 36.97 +0.02
TgtRetInc
13.51 -0.01
TotIntBdIxInv 10.88 -0.02
29.52 -0.02 3.6
107.45 -0.01 11.6 GblValue
BlChip
33.31 +0.07 0.3 VANGUARD ADMIRAL
EqInc
73.39 +0.07 2.7 500Adml 252.58 +0.23 2.8
EqIndex
34.86
... 0.9
68.08 +0.06 8.7 BalAdml
Growth
11.59
... -0.7
74.50 +0.59 5.9 CAITAdml
HelSci
40.92 -0.01 10.9 CapOpAdml r160.83 +0.19 4.7
InstlCapG
38.47 +0.10 1.0
18.93 +0.06 1.4 EMAdmr
IntlStk
15.24 -0.01 0.8 EqIncAdml 77.35 +0.15 -0.3
IntlValEq
31.19 -0.02 2.6 ExplrAdml 96.46 -0.33 9.1
MCapVal
91.70 -0.18 5.4 ExtndAdml 87.82 -0.22 3.9
MidCap
9.18 -0.01 -2.2 GNMAAdml 10.18 -0.01 -1.6
N Inc
57.92 -0.25 10.2 GrwthAdml 76.51 -0.03 6.0
NHoriz
... 3.0 HlthCareAdml r 84.72 +0.50 0.2
OverS SF r 11.65
... -1.0
22.80 -0.01 1.2 HYCorAdml r 5.75
R2020
25.18 -0.06 -1.3
InfProAd
17.86 -0.01 1.5
R2025
IntlGrAdml 101.90 +0.27 6.6
26.42 -0.01 1.9
R2030
ITBondAdml 10.89 -0.02 -3.2
19.40
... 2.3
R2035
... -2.7
ITIGradeAdml 9.38
27.92
... 2.5
R2040
LTGradeAdml 9.78 -0.02 -6.5
37.16 +0.06 -0.4
Value
MidCpAdml 194.99 -0.28 2.1
PRIMECAP Odyssey Fds
MorgAdml 98.35 -0.04 8.4
AggGrowth r 49.44 +0.04 11.5 MuHYAdml 11.22
... -0.6
40.97 +0.09 10.0 MuIntAdml 13.86 -0.01 -0.9
Growth r
32.60 -0.01 2.2 MuLTAdml 11.40 -0.01 -1.1
Stock r
Principal Investors
... -0.1
MuLtdAdml 10.81
... 1.9 MuShtAdml 15.69
DivIntlInst 14.17
... 0.4
Prudential Cl Z & I
PrmcpAdml r140.99 +0.21 5.5
14.05 -0.01 -2.5 RealEstatAdml109.97 -0.92 -5.5
TRBdZ
Schwab Funds
SmCapAdml 73.26 -0.18 3.8
42.35 +0.04 2.8 STBondAdml 10.22
S&P Sel
... -0.9
TIAA/CREF Funds
STIGradeAdml 10.45 -0.01 -0.8
10.45 -0.02 -2.5 TotBdAdml 10.39 -0.01 -2.4
BdIdxInst
20.23
... 3.0 TotIntBdIdxAdm 21.75 -0.04 0.6
EqIdxInst
SCHD
SCHX
SCHA
DIA
MDY
SPY
SDY
XLK
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
1.8
3.0
2.0
0.1
0.7
-2.1
-0.1
1.4
1.3
0.8
1.1
1.4
1.7
2.0
2.1
2.1
1.7
0.2
1.8
1.0
2.6
-3.8
1.6
0.4
0.8
1.1
1.4
1.6
2.0
2.1
2.1
...
0.6
WellsI
Welltn
WndsrII
49.40
65.29
72.26
249.27
352.26
272.98
92.01
69.87
22.78
182.84
133.97
171.82
101.84
45.59
46.25
60.22
71.18
55.49
148.62
84.42
80.45
83.38
125.43
157.48
110.82
77.61
250.75
77.99
78.00
152.94
78.83
54.47
57.66
140.64
75.75
105.64
0.41
0.06
–0.26
0.29
–0.17
0.05
–0.14
–0.01
–0.44
–0.13
–0.12
–0.32
–0.01
0.18
0.30
–0.05
–0.08
0.16
–0.07
0.17
–0.12
–0.13
0.10
–0.14
0.08
–0.86
0.11
–0.03
–0.05
–0.22
–0.13
–0.15
0.10
0.05
0.15
0.18
–3.5
2.4
3.6
0.8
2.0
2.3
–2.6
9.3
–2.0
11.0
0.9
6.8
–0.2
1.6
0.7
1.8
1.6
1.4
5.7
–1.4
–4.0
–4.6
2.3
1.7
–0.7
–6.5
2.2
–1.4
–1.6
3.5
–3.4
0.2
1.5
2.5
2.0
–0.6
Net YTD
NAV Chg %Ret
26.21 +0.01
41.75 +0.05
38.08 +0.08
VANGUARD INDEX FDS
252.56 +0.23
500
ExtndIstPl 216.72 -0.54
SmValAdml 57.52 -0.09
10.36 -0.01
TotBd2
TotIntl
18.52 +0.03
68.42 +0.02
TotSt
VANGUARD INSTL FDS
34.86 -0.01
BalInst
DevMktsIndInst 14.67 +0.02
DevMktsInxInst 22.94 +0.04
87.81 -0.22
ExtndInst
GrwthInst 76.51 -0.03
10.26 -0.02
InPrSeIn
249.29 +0.23
InstIdx
InstPlus
249.31 +0.23
InstTStPlus 60.85 +0.02
MidCpInst 43.08 -0.06
MidCpIstPl 212.44 -0.30
SmCapInst 73.26 -0.18
SmCapIstPl 211.47 -0.52
STIGradeInst 10.45 -0.01
10.39 -0.01
TotBdInst
TotBdInst2 10.36 -0.01
TotBdInstPl 10.39 -0.01
TotIntBdIdxInst 32.64 -0.05
TotIntlInstIdx r123.90 +0.21
TotItlInstPlId r123.92 +0.21
68.46 +0.02
TotStInst
41.21 +0.08
ValueInst
Western Asset
...
CorePlusBdI NA
-2.1
-0.1
0.7
2.8
3.9
1.3
-2.5
1.8
3.0
0.9
2.0
2.1
3.9
6.0
-1.3
2.8
2.8
3.0
2.1
2.1
3.8
3.8
-0.8
-2.4
-2.4
-2.4
0.6
1.8
1.8
3.0
0.1
NA
.
B10 | Tuesday, May 15, 2018
THE WALL STREET JOURNAL.
BANKING & FINANCE
Hedge Funds Back Their Biggest Critics
Foundation sends
millions donated by
managers to
anti-industry groups
Under the Hood
How the hedge-fund industry's charitable arm accidentally
funneled millions of dollars to its biggest critics
BY ROB COPELAND
...which has given at least
$11
$
11 m
million
illlion
since 2010 to groups
participating in
anti-hedge-fund activist
campaigns, like
the Hedge Clippers...
millions of dollars over the
same period, a spokesman said.
The money goes to support
what Robin Hood describes as
“organizations helping New
Yorkers in need,” such as community centers, health-care providers and mentorship programs.
A portion of those grants, totaling more than $11 million since
2010, has gone to an arm of Service Employees International
Union, Coalition for the Homeless and Make The Road NY.
They are among more than 20 labor and advocacy groups that
make up either Strong Economy
For All or the Hedge Clippers,
which share some members.
Robin Hood’s donations represent a minority of the total
money raised by the organizations as a whole. Of the approximately $15 million collected by
immigration advocate Make The
Road in the 2016 fiscal year,
$756,000 came from Robin Hood,
charity records show.
Robin Hood’s chief program
officer, Emary Aronson, said
the charity became aware of its
connection to some protest
groups several years ago, and
decided to continue funding.
“There’s no thermometer that
we use to say we are going one
way or the other because of
something that’s in the news or
how it affects the hedge-fund
community,” Ms. Aronson said.
She said the charity’s
money is earmarked for serving poor communities, not advocacy, though some organizations may do both.
Hedge Clippers co-founder
Michael Kink said he doesn’t
object to the donations from
Robin Hood. “If you’re doing
things substantively and fairly
and fighting based on the facts
then the public can make its
own decisions,” he said.
He does have problems with
Robin Hood itself. “If in your
day job you’re exploding inequality, and then you put on a
tuxedo and donate at a gala,
that’s something we want to
call out,” he said. “There is
some profound inconsistency
and profound hypocrisy.”
The Hedge Clippers became
active roughly three years ago, in
response to what the organization viewed as outsize influence
of hedge funds and other wealthy
financiers on public policy.
The group organized separate rallies at Messrs. Loeb
and Jones’s estates—two in a
series of protests at hedgefund homes—and have pressured public pensions and others to yank money from
specific fund managers.
Strong Economy For All
publicly lobbies for tax-policy
Continued from page B1
imputed rent for
homeowners. In Europe, only
actual rents are measured, at
a weight of just 6% of the
basket of goods and services
underlying the price index.
Measure both using the
European approach, and
overall prices have risen by
the same amount since 2011.
It is true that using this
measure—known as the
harmonized index of
consumer prices, or HICP—
U.S. prices have risen faster
since last summer. But that
appears to be in large part
due to energy, where the
weak dollar has pushed oil
prices up faster than in
Europe. There aren’t any
detailed breakdowns
available for U.S. HICP, which
is still an experimental
statistic, but the CPI
excluding shelter, food and
energy is the best equivalent
to core eurozone inflation,
and exactly the same at 1.2%.
Another indication of the
importance of housing comes
from the Cleveland Fed’s
median CPI, which takes the
middle price rise from a
ranking of the CPI
components. It drops from
2.6% to 1.7% when imputed
rents are excluded, although
in recent months it, too, has
BRENT LEWIN/BLOOMBERG NEWS
A unit of Jack Ma’s Ant
Financial operates Yu’E Bao.
risk-management optimization
process, which is designed to
better protect the interests of
individual investors.”
The spokesman said investors will still be able to transfer as much as 50,000 yuan
daily from Ant’s money-market
funds to their Alipay accounts,
or to pay down outstanding
credit-card debt. In effect, the
new limits would discourage
people from moving money
from the funds into their savings accounts at banks, stemming outflows from Alipay.
Alipay has more than 520
million users and handles trillions of dollars of online payments yearly. Carved out of
Alibaba Group Holding in
2011, the firm has morphed
into a financial technology and
services giant that lends
money to individuals and businesses, manages mutual funds,
and provides credit scores for
many Chinese citizens.
Ant is in the process of raising at least $10 billion from investors in a transaction that
would likely make it the
world’s most valuable private
technology company, with a
valuation of around $150 billion, people familiar with the
matter have told The Wall
Street Journal.
Ant earlier this month said
it would add money-market
funds managed by outside
Rent’s Up
Prices have risen by roughly the same amount in the eurozone and U.S.
on Europe’s Harmonized Index of Consumer Prices gauge. Unlike HICP,
the U.S. consumer price index includes imputed rent for homeowners.
20%
Change since July 2011
15
U.S. CPI: owner-equivalent rent
Eurozone HICP
U.S. HICP
10
5
0
2011 ’12
’13
’14
Source: Thomson Reuters Datastream
accelerated.
The Fed’s preferred
inflation gauge, the PCE
price index, takes one-sixth
of its weight from rent and
imputed rent. The gap from
CPI weights is made up
mostly by including
employers’ health-care costs
to get a health-care weight of
one-fifth. In Europe, the
equivalent health-care costs,
mostly borne by government,
are ignored in HICP, and
booze and smokes are almost
as important as health-care
in determining inflation.
Statisticians have argued
for years about how to
include housing costs, and
’15
’16
’17
’18
THE WALL STREET JOURNAL.
they keep changing their
minds. The Swedish central
bank switched its target last
year to a different measure
of inflation in order to
exclude mortgage rates,
while the British statistical
agency last year started
promoting a measure of
inflation including imputed
rents, with mixed success.
A second explanation for
the different approaches is
that investors and central
banks are right to ignore all
these statistical quirks.
Actual U.S. rents have been
rising twice as fast as in
Europe, a sign of strong
demand as well as less house
money managers to its popular
Yu’E Bao platform, giving investors more places to park
their cash and earn higher
yields than conventional bank
deposit rates. The money-market funds earn short-term annualized yields of around 4%
by investing in assets such as
bank commercial paper and
government securities.
Tianhong Asset Management Co., an Ant unit that
oversees the flagship Tianhong
Yu’E Bao fund with more than
400 million investors, has
sharply lowered the total
amount that individuals can
park in the fund and imposed
quotas on daily inflows. It took
those steps after Chinese regulators last year warned of systemic risks from the fund’s
swelling size.
Chinese authorities are separately drafting new rules that
will require companies engaged in multiple financial services, such as Ant, to comply
with stricter risk-management
and capital rules, the Journal
reported earlier.
building than before the
crisis. While there is no
comparable index including
imputed rents, if there were
it would probably show
European inflation lagging
behind the U.S. as a result.
So even though on HICP
inflation Europe and the U.S.
look very similar, actual
inflation might be quite a bit
higher in the U.S.
A third explanation is that
central banks got it right and
their policy worked. Had the
Fed held rates down inflation
would have been higher, and
had the ECB tightened policy
the eurozone might be toying
with deflation again.
Attributing causation is the
big challenge in economics,
and in much of the world
inflation hasn’t been doing
what economists expected,
but there is surely something
in this.
If this entire discussion
left you confused, you are in
good company. Central
bankers, like all economists,
form their views from
statistics that often turn out
to be wrong or misleading,
half-truths about how the
economy works and guesses
as to how markets will
respond. Understand that,
and you are a long way to
forming your own views—
and being appropriately
humble about either your or
the economists’ chances of
being right.
Sources: Robin Hood Foundation, Hedge Clippers (donations); Bloomberg News (photos)
THE WALL STREET JOURNAL.
changes, particularly the closing of the carried interest
loophole that benefits many
wealthy hedge-fund managers.
Hedge funds have spent millions in opposition to the push.
One of the Strong Economy
For All subsidiary groups, Coalition for the Homeless, said
all of the millions received
from Robin Hood went to its
own programs, not to any outside entity. Coalition for the
Homeless Executive Director
Dave Giffen said his organization has joined with the antihedge-fund groups sometimes
in “supporting common issues.”
“We never hold back on anything we believe and we understand that might result in losing funding,” Mr. Giffen said.
Make the Road NY Co-Executive Director Deborah Axt said
her organization sometimes
partners with the Hedge Clip-
pers “when our interests align,”
such as protests against hedge
funds looking to make money in
hard-hit Puerto Rico. “There’s no
such thing as pure, clean funding
in this country we live in, and
we are thrilled to accept support
as long as it does not come with
strings attached,” Ms. Axt said.
Robin Hood also gave more
than $700,000 to a consortium
of restaurant workers who
once stormed the stage of a
hedge-fund conference to demand higher wages from
hedge-fund managers who own
stakes in restaurants.
The consortium didn’t respond to a request to comment.
Ms. Aronson of Robin Hood
said the charity has since
yanked funding for the group
because it was “no longer
aligning with how we were approaching” its targeted program, a jobs-placement service.
FINANCE WATCH
CHRISTOPHER GOODNEY/BLOOMBERG NEWS
About 250 people in 2015 protested a fund-raiser for Andrew Cuomo at the house of Daniel Loeb.
BY STELLA YIFAN XIE
STREET
...and Clippers' picketers
target hedge-fund
managers’ homes, offices
and investors...
Hedge-fund
und m
managers
ate ttoo the
donate
d Foundation...
Fo
Robin Hood
Chinese Fund Limits Withdrawals
Ant Financial Services
Group will sharply reduce how
much cash investors in the
world’s largest money-market
fund can withdraw daily from
Ant’s popular payments network, a move that could help
limit the risk of a potential liquidity crunch.
An asset-management division of billionaire Jack Ma’s
Ant Financial operates Yu’E
Bao, an online platform that in
just four years created the
world’s largest money-market
fund by drawing idle cash from
hundreds of millions of users
of Alipay, a mobile-payments
network owned by Ant. The
fund had $266 billion in assets
at the end of the first quarter.
Ant said that starting June
6, the amount of cash that investors in Yu’E Bao can transfer to a bank debit card would
be capped at 10,000 yuan
($1,579), from 50,000 yuan
now for same-day withdrawal.
An Ant spokesman said the
move was part of an “ongoing
Daniel Loeb
Paul Tudor Jones
MORGAN MCGIVERN/THE EAST HAMPTON STAR
The 250-person protest
group that showed up outside
billionaire Daniel Loeb’s Hamptons estate arrived in chartered
buses, carried professionally
printed signs and marched under two airplanes with banners. Several signs read:
“Hedge funds = inequality.”
Mr. Loeb, in a roundabout
way, inadvertently backed certain organizations that supported that July 2015 demonstration, and continue to
savage hedge funds to this day.
For years, Mr. Loeb and
other hedge-fund managers
have sent millions of dollars to
groups participating in antihedge-fund activist campaigns
such as the Hedge Clippers and
Strong Economy For All.
They have done so via a series of transactions involving
the Robin Hood Foundation, a
nonprofit co-founded by famed
investor Paul Tudor Jones that
amounts to the hedge-fund industry’s unofficial charitable
arm.
Here’s how it works.
Robin Hood gathers money
from virtually every big name
hedge-fund manager. Its annual fundraising dinner Monday was expected to raise tens
of millions of dollars, thanks to
a hedge-fund-heavy crowd that
spends as much as six figures
per table for tickets. A featured
performer was Jennifer Lopez.
Mr. Loeb has donated
roughly $1.2 million to Robin
Hood since 2010, foundation
records show. Mr. Jones and
his family have donated tens of
Steve Eisman, a trader featured in ‘The Big Short,’ predicted the
meltdown of the U.S. housing market before the financial crisis.
JPMORGAN CHASE
Controlling Stake in
China Firm Planned
JPMorgan Chase & Co. said it
plans to assume majority ownership of its Chinese fund-management joint venture, its latest step
toward establishing a firmer foothold in China after Beijing recently relaxed its rules for foreign
ownership of financial firms.
The U.S. bank on Monday
said its asset-management arm
hopes to increase its ownership
of China International Fund
Management Co.—a mutual-fund
joint venture in which JPMorgan
has owned a minority stake
since 2004—to 51% from 49%.
The bank hasn’t yet formally
applied to do so.
On Thursday, JPMorgan’s
brokerage unit submitted an application to Chinese regulators
to acquire a 51% stake in a new
securities joint venture.
“Our investment in China is a
commitment to bring the full
force of JPMorgan Chase and
our resources to the country,”
said James Dimon, the bank’s
chairman and chief executive.
If successful, the move would
make JPMorgan the first Western financial institution to majority-own a fund-management arm
able to sell mutual funds to Chinese customers. Hong Kongbased Hang Seng Bank Ltd. was
allowed to set up a fund-management arm in China in 2016, in
which it owns a 70% stake.
—Stella Yifan Xie
BITCOIN
Eisman of ‘Big Short’
Slams Cryptocurrency
Steve Eisman famously predicted the meltdown of the U.S.
housing market ahead of the financial crisis in 2008, and his
call was immortalized in “The
Big Short,” a film based on the
novel on the subprime bubble by
Michael Lewis.
Now that he says the U.S.
banking industry, for the most
part, has cleaned up its act, the
Neuberger Berman Group
hedge-fund manager has set his
bearish sights elsewhere: cryptocurrency.
Speaking to about 1,500 attendees at the annual CFA Institute conference in Hong Kong,
Mr. Eisman said bitcoin and the
like have risen to prominence
purely on the back of speculation and money laundering.
“I don’t see the purpose of it,”
he said. “What value does cryptocurrency actually add? No
one’s been able to answer that
question for me.”
—Steven Russolillo
CREDIT CARDS
Pandit-Led Group
Backs Ollo Issuer
Orogen Group, an investment
firm headed by former Citigroup
Inc. Chief Executive Vikram Pandit, is committing $100 million
in equity to Fair Square Financial LLC. Fair Square, based in
Wilmington, Del., issues credit
cards under the brand name
Ollo and targets consumers
with less pristine credit scores.
Mr. Pandit said that he originally had been looking at acquiring or capitalizing a more established credit-card company
focused on less creditworthy borrowers, but “there wasn’t anything to buy.” Instead he worked
with another private-equity firm
to establish Fair Square, which
focuses on borrowers with credit
scores between 600 and 700.
It has extended $400 million
in credit lines since it issued its
first card in November 2016, said
Chief Executive Rob Habgood.
—Peter Rudegeair
.
THE WALL STREET JOURNAL.
Tuesday, May 15, 2018 | B11
* * * *
MARKETS
BY DANIEL KRUGER
Prices of U.S. government
bonds declined as investors focused on comments by centralbank officials that some perceived as hawkish.
The yield on the benchmark
10-year Treasury note rose for
the fifth time in
CREDIT
the past seven
MARKETS sessions
to
2.995%
from
2.971% Friday.
Yields rise as bond prices fall.
The two-year yield, which is
more sensitive to expectations
for Federal Reserve monetary
policy, rose for the seventh
consecutive session to 2.545%,
the highest since August 2008.
Federal Reserve Bank of
Cleveland President Loretta
Mester said at a conference in
France that stimulative fiscal
policy and strong economic
growth suggest officials may
need to raise interest rates
more than she had expected for
them to eventually reach the
neutral rate. Neutral interest
rates are the point where they
neither help nor hinder growth.
Odds that Fed officials will
raise rates three more times
this year rose to 52% late Monday, from 39% a month ago, according to CME Group data.
Yields also faced upward
pressure after Bank of France
Governor François Villeroy de
Galhau, at the same conference, hinted that the European
Central Bank may raise rates
next year.
AUCTION RESULTS
Here are the results of Monday'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.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$146,139,164,600 $125,319,467,100
Applications
$48,000,066,600 $42,000,271,600
Accepted bids
$840,989,600 $678,305,100
" noncomp
$538,000,000 $300,000,000
" foreign noncomp
99.522250
98.971194
Auction price (rate)
(1.890%)
(2.035%)
1.925%
2.085%
Coupon equivalent
54.91%
54.11%
Bids at clearing yield accepted
912796NQ8
912796QJ1
Cusip number
Both issues are dated May 17, 2018. The 13-week bills
mature on Aug. 16, 2018; the 26-week bills mature on
Nov. 15, 2018.
U.S. Stocks Rise as Tensions Ease
Dow notches eighth
consecutive gain as
trade rhetoric cools
between U.S., China
BY GEORGI KANTCHEV
AND ALLISON PRANG
U.S. stocks rose Monday
with the Dow Jones Industrial
Average notching its eighth
consecutive day of gains as
investors digested signs of
easing trade tensions between
the U.S. and China.
The countries closed in on
a deal that would give China’s
ZTE a reprieve
MONDAY’S
from
potenMARKETS
tially crippling
U.S. sanctions
in exchange for
Beijing removing tariffs on
billions of dollars of U.S. agricultural products, people
briefed on the deal said to
The Wall Street Journal.
The U.S. and China are
locked in high-stakes negotiations over trade, with the
countries threatening to slap
tariffs on tens of billions of
dollars of each other’s products.
Signs that the two countries could negotiate a deal
have helped the market rebound, investors and analysts
said.
Jamie Cox, managing partner at Harris Financial Group,
said people “can see the light
at the end of the tunnel on
tariffs.”
“Markets can now focus on
real economic activity and
stop worrying so much about
the overtones of tariffs,” he
said.
The
Dow
industrials
climbed 68.24 points, or 0.3%,
to 24899.41. The blue-chip index’s winning streak is its longest since September 2017,
when it rose for nine straight
sessions.
The S&P 500 rose 2.41
points, or 0.1%, to 2730.13,
with four of 11 sectors trading
higher, and the Nasdaq Composite rose 8.43 points, or
0.1%, to 7411.32.
Health-care stocks climbed
0.7%, the most in the S&P
500, after President Donald
ETHAN MILLER/GETTY IMAGES FOR BON APPETIT
Treasurys
Fall After
Fed Rate
Remarks
Shares of casino operator Caesars Entertainment rose 5.5% after a legal decision that would allow states to permit sports betting.
Trump on Friday unveiled a
raft of modest measures to
curb high drug prices that left
the pharmaceutical industry
relieved and buoyed its
stocks.
Energy stocks gained 0.6%
as U.S. crude settled up 0.4%
at $70.96 a barrel.
And shares of gambling
firms climbed following the
decision by the U.S. Supreme
Court to let states permit
sports betting.
Caesars Entertainment
rose 65 cents, or 5.5%, to
$12.55, and Penn National
Gaming climbed 1.51, or 4.7%,
to 33.75.
Stocks around the world
have rebounded in recent
sessions after a turbulent
start to 2018, amid solid corporate earnings and bets that
inflation isn’t rising at a pace
that would force the Federal
Reserve to accelerate its pace
of interest-rate rises. U.S.
stocks last week registered
their biggest one-week gains
since March.
“Trade rhetoric has been
dialed down a bit recently,
and that’s freeing up equities
to look to other factors like
the fantastic earnings season,” said David Lafferty,
chief strategist at Natixis Investment Managers, which
manages around $1 trillion.
Meanwhile, governmentbond prices fell Monday, with
the yield on the benchmark
10-year U.S. Treasury note
settling at 2.995% from
2.971% on Friday. Yields move
inversely to prices.
The WSJ Dollar Index,
which tracks the dollar
against a basked of 16 currencies, added nearly 0.2%.
In Europe, traders were
also watching developments
in Italy where the antiestablishment 5 Star Movement
and hard-right League party
have reached an agreement on
a governing program.
The formation of a new
government—which is ex-
Ahead of the Pack
Energy and health-care stocks were among
the best performers in the S&P 500 Monday.
Intraday performance
1.2%
1.0
0.8
0.6
S&P 500
Health Care
0.4
S&P 500
Energy
0.2
S&P 500
0
–0.2
9:30 10
11
Noon
1
2
pected in the coming days—
between the two groups
marks one of the biggest wins
yet for the political insurgencies shaking Europe’s establishments.
3
4
THE WALL STREET JOURNAL.
Source: FactSet
The Stoxx Europe 600 fell
less than 0.1%.
In early trading Tuesday,
Hong Kong’s Hang Seng Index
fell 0.44%, while Japan’s Nikkei
Stock Average was up 0.08%.
Malaysia Markets Gain After Election
Saudi Arabia posted higher crude production last month.
Oil Prices Increase
As Market Gets Tighter
BY DAVID HODARI
AND ALISON SIDER
Oil prices rose Monday on
more signs a tightening global
oil market, despite the release
of OPEC data that signaled robust production.
U.S. crude futures climbed
26 cents, or
ENERGY
0.37%, to $70.96
MARKETS a barrel on the
New York Mercantile
Exchange. Brent, the global
benchmark, rose $1.11, or
1.44%, to $78.23 a barrel on
ICE Futures Europe.
The Organization of the Petroleum Countries said in its
monthly report Monday that
petroleum stockpiles in the developed world stand just nine
million barrels above the fiveyear average—a sign that the
glut that weighed on the market for years is nearly gone.
OPEC also boosted its forecast
for demand this year while
trimming its outlook for global
oil production.
“The geopolitical tinderbox
around the Middle East seems
to be encouraging buyers,
while global supply demand
fundamental are staying
‘strong enough’ to keep the
sellers at bay for now,” analysts at TAC Energy said. “If
the complex can break above
the multiyear highs set last
week, the charts suggest we
could see another 5-10% of upside near term.”
Still, OPEC also said its total
crude output rose by 12,000
barrels a day in April, monthon-month, to average 31.9 million barrels a day.
The increase was mainly the
result of higher crude production in Saudi Arabia—the
world’s largest crude exporter
and the de facto head of
OPEC—and Algeria, the report
said.
Those data added to a
healthy picture of global oil
production as producers
pounce on higher prices. The
gap between global and U.S. oil
prices widened as new figures
showed that producers in the
U.S. are ramping up quickly.
The number of rigs drilling
for oil in the U.S. rose by 10
last week to 844 rigs, the highest in more than three years.
Only a brief selloff occurred
in Malaysian markets Monday,
not the slump many feared last
week, as domestic investors had
their first chance to react since
Wednesday’s stunning election
victory for Mahathir Mohamad’s
opposition coalition.
The country’s stock benchmark fell nearly 3% at the start
of trading, but within a halfhour was higher than last
Tuesday’s closing level. The
FTSE Bursa Malaysia KLCI
closed 0.2% higher.
Meanwhile, the Malaysian
ringgit fell less than 1% against
the dollar in Asian trading after derivatives last week had
pointed to a drop of more than
2%. By late Monday in New
York, the pair was unchanged
on the day, and the ringgit was
up 1% from last Tuesday.
Initial appointments of advisers by Mr. Mahathir and the
“announcement of pro-business, pro-stability policy” allowed foreign and domestic investors to “express confidence” in Malaysia’s economy
and the market’s longer-term
outlook, said Danny Wong,
chief executive of Kuala Lumpur fund manager Areca Capital. The perception of a “cleaner
and more transparent administration will attract international
investment,” he said.
Eng Peng Gan, director of
equities strategy and advisory
at Affin Hwang Asset Management, predicted last week that
the stock market’s initial drop
wouldn’t last a month; instead,
it was but minutes.
Volatility was expected
when markets reopened after
the ouster of the political coalition that had ruled Malaysia
since independence in 1957. In
the U.S., an exchange-traded
fund of Malaysian stocks slid
6% on Wednesday before rebounding 1.8% on Thursday
and falling 0.8% Friday.
Buying in Malaysian stocks
Monday morning was led by
government-backed local funds,
said investment bankers and
analysts. State-run funds are
key participants in Malaysia’s
financial markets, and they frequently support specific government-backed stocks, or at
times the entire market, when
there is major selling pressure.
Prices of Malaysian bonds
traded overseas plunged after
Wednesday’s election, with
debt maturing in 2023 and
sold by state investment fund
1Malaysia Development Bhd.
seeing yields surge to 9.3% by
Friday from 6.1% before the
election. That fell to 9.1% Monday for the fund, the subject of
multiple probes globally.
Many stock-market participants sold shares into Wednesday’s election as the opposition was gaining momentum.
The KLCI fell more than 1% in
each of the last two full weeks
of trading before the polling.
After the election, some investors said the result was as
shocking as the U.K.’s vote to
leave the European Union and
U.S. President Donald Trump’s
election victory.
Until the pre-election weakness, Malaysian stocks were
regional outperformers. The
index, with Monday’s gain, is
up 3% this year, keeping it
among the best performers in
the Asia-Pacific region.
Key to Monday’s advance
were consumer stocks on
hopes of stronger spending if
the new government scraps
the goods-and-services tax enacted in 2015, as it has suggested it might. Food-and-beverage firms Nestlé Malaysia
Bhd. and Fraser & Neave
Holdings Bhd. rose 3.1% and
3.5%, respectively, while apparel retailer Padini Holdings
Bhd. jumped 10%.
The Mahathir campaign
promised to take a close look
at some continuing major infrastructure projects. Stocks of
companies involved in some of
them experienced heavy declines in their prices.
Quick Recovery
FTSE Bursa Malaysia KLCI
1880
1860
1840
1820
ORE HUIYING/BLOOMBERG NEWS
SAUDI ARAMCO/REUTERS
BY YANTOULTRA NGUI
1800
1780
May 4 7
8
14
Note: The markets were closed May 9, 10
and 11.
Source: Thomson Reuters
Many expected a selloff after Mahathir Mohamad’s victory.
THE WALL STREET JOURNAL.
Don’t Count on Earnings Bonanza Lasting
BY BEN EISEN
Companies are wrapping up
a stellar earnings season, but
the rest of the year might not
be as hot.
With 91% of S&P 500 companies reporting results for
the first three months of 2018,
earnings are expected to have
grown 25% versus the prior
year, according to FactSet.
That would be the best quarter
since 2010 and well above the
17% growth analysts expected
going into earnings season.
But guidance for the rest of
the year is more tempered. So
far this earnings season, 50
companies have issued pershare earnings estimates for
the April-to-June period that
are below the consensus forecast of analysts. Just 36 companies issued second-quarter
guidance above analyst estimates, according to FactSet.
That is a sign of concern for
some investors in the stock
market, where any hint that
earnings may be peaking has
been enough to make people
nervous. The market tumbled
last month after Caterpillar
executives said their first
quarter could be a “high-water
mark” for the year.
Companies have turned
slightly more downbeat for the
full year as well. Among the
companies updating per-share
earnings guidance, 113 had
negative guidance on Friday,
up from 85 at the end of
March. Those issuing positive
guidance fell to 142 from 162.
That is still a lot of positive
guidance, of course. Analysts
are projecting strong earnings
growth throughout 2018, with
profits forecast to grow by 19%
in the second quarter, 21% in
the third quarter and 17% in
the fourth quarter, according
to FactSet. That is still quite
strong by any measure.
But after a nine-year bullmarket run that has been premised in part on the expectation that the best economic
growth and corporate profits
are still ahead, many are on
the lookout for signs that we
have hit the top.
.
B12 | Tuesday, May 15, 2018
THE WALL STREET JOURNAL.
MARKETS
Bond Gauge Signals Confidence in U.S.
Yield spread between
Treasurys, German
bunds is largest
in three decades
2.0
BY DANIEL KRUGER
1.5
Email: heard@wsj.com
CEO’s Pay
Too Often
Doesn’t Pay
If paying a chief executive
more doesn’t do anything for
the company’s stock price,
why pay the CEO more?
Last year was another one
when the relationship between CEO pay and stockmarket performance was tenuous at best. American
International Group’s Brian
Duperreault (whose 2017
compensation package included a sign-on bonus for
taking the job in May) and
Allergan’s Brenton Saunders
were among the best-paid
CEOs in America, according
to a Wall Street Journal analysis, yet their companies’
share prices suffered. And
the CEO pay packages of the
five companies with the bestperforming stocks were
pretty average.
This isn’t to say that the
relationship between pay and
stock performance was negative. Instead, on a scale
where 1 is perfect correlation
and minus 1 is perfectly inverse correlation, it was effectively zero. In English,
that means there is no connection between executive
pay and stock performance.
That is something of a statistical feat, given all the
things that go into stock performance from one year to
the next. And it fits with the
academic literature, with
some papers finding a positive relationship between pay
and future returns, and others finding a negative one.
But CEOs who are paid
more should be demonstrably better at delivering returns. And if top-paid CEOs
aren’t delivering that sort of
edge, investors should question why CEO pay has risen
about twice as much as median U.S. household income
over the past 25 years.
There are, after all, other
things that could be done
with money. —Justin Lahart
Yield premium, 10-year Treasury note relative to German bund
2.5
East Germany opens
the Berlin Wall
Use of euro notes
and coins begins
Lehman Brothers collapses
1.0
0.5
0
–0.5
ECB President Mario Draghi says the
central bank is ready to do ‘whatever
it takes’ to preserve the euro
–1.0
Monthly
–1.5
1988
’90
2000
’10
European stocks have trailed U.S.
equities for much of the year.
A weakened euro has contributed
to the gap in sovereign yields.
Growth in the U.S. and Europe has
been relatively in sync recently.
Index performance
How many U.S. dollars one euro buys
Gross domestic product, quarterly
$1.26
4%
8%
Change from a year earlier
S&P 500
Stoxx Europe 600
6
4
U.S.
1.24
3
1.22
2
1.20
1
Europe
2
0
–2
–4
–6
1.18
–8
Jan.
Feb.
March
April
May
0
Jan.
Feb.
March
April
May
2015
’16
The trend toward a wider
spread could continue, some
analysts said. Federal Reserve
officials are signaling two
more rate increases this year
and three more in 2019, while
the European Central Bank is
still looking for a way to climb
out of its negative interestrate policy. Several estimate
that Europe’s economy and the
ECB’s easy-money policies are
about three or four years behind the U.S. and the Fed in
their respective cycles.
Now, with the Trump administration’s $1.5 trillion tax cut
expected to stimulate growth
and push up borrowing needs,
increasing the supply of new
bonds, U.S. yields are rising. Investors will look to U.S. retailsales data Tuesday for signs of
whether the tax cuts are stimu-
’17
’18
THE WALL STREET JOURNAL.
Sources: Ryan ALM (Treasurys); Thomson Reuters (bund); FactSet (index, GDP); Tullett Prebon (forex)
lating consumer activity, or
whether any gains in purchasing power are being eroded by
the recent rise in oil prices.
Even as the U.S. goes
deeper into debt, Germany
regularly runs a budget surplus, limiting the amount of
debt it sells. That has helped
hold down yields for Europe’s
benchmark issuer, with Monday’s 0.610% yield on 10-year
German government debt, according to Tradeweb, up from
0.424% at the end of last year.
German yields have been
held down in part by concerns
about the vitality of some
long-struggling
European
economies, often referred to
by investors as “the peripherals,” including Italy, Portugal
and Greece. ECB officials’ ambition to raise interest rates is
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
CBS Gambles in Redstone Feud
The feud between CBS and
National Amusements has
descended into a playground
brawl. CBS is right to defend
shareholder value but in doing so it could hurt investors
in both companies.
National Amusements,
which controls CBS and Viacom, has been trying to
merge the two companies.
CBS has fiercely resisted the
deal, arguing that merging
with Viacom would drag
down the company’s value.
On Monday, CBS filed a lawsuit against National Amusements and its president,
Shari Redstone, to block it
from forcing the merger.
“This is corporate civil
war,” says Joe Grundfest, a
professor of law and business at Stanford University.
CBS directors see themselves as freedom fighters
battling against Ms. Redstone, who the company says
poses “a significant threat of
irreparable and irreversible
harm to the Company and its
MICHAEL NAGLE/BLOOMBERG NEWS
The gap between the yields
on 10-year U.S. Treasury notes
and German government
bonds reached its widest in almost three decades, a sign of
investor confidence that
growth remains steadier in the
U.S. than Europe.
The yield on the benchmark
10-year Treasury, which rises
as bond prices fall, closed
Monday at 2.995%, 2.385 percentage points above the
0.610% yield on the German
bund. The gap last week hit
2.445 percentage points, its
widest since April 1989.
This signal contrasts with
others in the bond market,
such as the narrowing gap between short- and long-term
Treasury yields, known as a
flattening yield curve, which
investors often see as a warning of economic slowdown.
Treasury yields and marketbased measures of U.S. inflation expectations have both
risen this year, while gains in
the bund yield have been limited by recent softness in economic data.
Investors often study the
two yields as barometers that
influence borrowing costs for
consumers and corporations in
the U.S. and Europe. The gap
between the two yields is also
a key sign of foreign demand
for U.S. debt, with ultralow
and even negative rates in Europe increasing the appeal of
Treasurys to foreign investors
in recent years.
“That spread is probably anticipating the U.S. economy is
going to grow stronger than the
rest of the world, and Germany
in particular,” said Jack McIntyre, who manages global bond
portfolios at Brandywine Global
Investment Management.
3.0 percentage points
National Amusements’ Shari Redstone, who faces a CBS lawsuit.
stockholders.” In the eyes of
Ms. Redstone and National
Amusements, the CBS directors are insurrectionist rebels abusing their power.
CBS shareholders appear
pleased. The stock was up
2.8% Monday afternoon. Viacom’s stock fell as much as
7%, reflecting diminished
prospects for a deal.
If the CBS board really
does believe a merger with
Viacom would erode shareholder value, they are right
to fight it. As the filing
notes, CBS’s stock price has
tumbled from nearly $70 a
share last summer to under
$50 a share over the course
of the talks—a loss of about
$7 billion in market capital-
ization for Class B stockholders.
National Amusements,
which controls 80% of voting
power though only 10% of
CBS shares, could vote out
the board and merge the
companies. To block that, the
CBS board is planning to
hold a meeting on Thursday
to issue a dividend of voting
Class A shares to all stockholders, which would reduce
National Amusements’ voting
power from 80% to 17%. Ms.
Redstone would then be unable to remove board members—and thus powerless to
push through the merger
with Viacom.
Investors have good reason to celebrate CBS’s rebellion. An independent CBS
would cast off the Redstone
discount. But it is a highstakes gamble: The suit will
cause the fight to drag on,
and if CBS loses, the companies will merge anyway,
likely on less-favorable
terms.
—Elizabeth Winkler
now being constrained by sluggish growth in Italy, which has
fueled the rise of antiestablishment parties that disdain the
unified currency.
“You have the tale of two
Europes—that continues to be
a challenge,” said Mike Swell,
co-manager of the Goldman
Sachs Strategic Income Fund.
He typically has trades that
benefit from a widening
spread between yields in the
U.S. and Germany but said he
had unwound them, because
they could lose money if the
U.S. dollar continues its recent
gains against the euro.
Limited inflation growth in
the U.S. and Europe could cap
this year’s climb in both Treasurys and the bund. U.S. consumer prices rose less than
economists expected in April
while the eurozone’s annual inflation rate fell unexpectedly—
a setback for the ECB as it considers when to end its bondbuying stimulus program.
Inflation poses a threat to
the value of government bonds
because it erodes the purchasing power of their fixed-interest payments and can spur
central banks to raise interest
rates.
The widening gap between
U.S. and German yields mirrors
a rebound in the value of the
dollar against the euro.
Through Monday, the dollar
has gained 4.8% versus the
euro since Feb. 1, surprising
many investors who had bet
that the currency was locked
in to a multiyear trend of
losses against the euro because Europe was seen as
nearer the start of a long expansion while the U.S. was
perceived to be closer to the
end of its recovery.
The rise in U.S. yields has
made it more expensive for
some investors to bet against
the dollar, after its earlier weakness raised the costs for investors in Europe to buy Treasurys
while also hedging the risks of
further declines in the currency,
some analysts said.
WSJ.com/Heard
OVERHEARD
Sell low, buy high.
That isn’t a great strategy
on Wall Street, but maybe it
can work in the pharmaceuticals business.
Eli Lilly announced
Monday morning that it plans
to acquire AurKa Pharma,
which is developing an
experimental drug to treat
cancer called AK-01.
Deals like this happen all
the time, but this one has an
unusual lineage.
The drugmaker itself sold
AK-01 to venture capitalists
in 2016 who in turn founded
AurKa to develop the
treatment.
Lilly didn’t disclose what
price it received for the
treatment, but it is safe to
assume that TVM earned a
good return.
Lilly is paying $110 million
in upfront fees to get AK-01
back, and could owe up to
$465 million more if certain
regulatory and sales
milestones are reached.
Chinese Innovation Won’t Come Easily Without U.S. Tech
Two hundred years ago,
Samuel Slater—known to the
British as “Slater the traitor”—helped launch the U.S.
industrial revolution with
pilfered British textile machinery designs.
Fast forward to 2018 and
the U.S. is trying to keep its
sensitive technology out of
the hands of its challenger,
China. The Trump administration correctly views Chinese acquisition of U.S. technology, through nefarious
means or otherwise, as a
threat to U.S. pre-eminence.
Even so, China’s ability to
dominate next-generation
technologies hinges as much
on the strengths and weaknesses of its own state-led
innovation system as U.S.
policy. China has proven excellent at mobilizing capital
and digesting foreign de-
Brain Wave
Net receipts for foreign
use of intellectual property
$100 billion
75
50
25
0
U.S.
China
–25
1997 2000
’10
Source: CEIC
signs. Its record on real innovation is much patchier.
Many of China’s notable
high-tech successes have resulted from technology
transfers. In the past two decades China has licensed
Japanese high-speed rail
technology and signed tech
transfer agreements with
Westinghouse for its nu-
clear technology—both in return for market access.
These days, it promotes its
own supposedly “indigenous” designs for export.
But homegrown Chinese
technology champions and
global brands are still rare—
one reason Beijing is lobbying so hard for the Trump
administration to reverse its
sanctions on telecom market
leader ZTE. China’s new $47
billion microprocessor fund,
headed up by the government-backed China Integrated Circuit Industry Investment Fund, sounds
impressive. But more-established competitors are already spending heavily: Intel
alone spent $13 billion on research and development in
2017.
China’s past attempts to
stoke indigenous innovation
have a checkered history. A
flood of cheap capital and
high, state-set solar-power
rates in the mid-2000s secured China’s place as the
world’s No. 1 solar cell manufacturer. But it also led to
enormous overcapacity,
which sank prices and
pushed debt burdens higher,
making investment in real
R&D more difficult.
For investors, China’s solar champions have been a
losing proposition. American
depositary receipts of top
firms such as JinkoSolar are
worth less than half of their
peak in 2010. Robotics, a key
element of Beijing’s “Made
in China 2025” plan to dominate high-tech manufacturing, is exhibiting similar tendencies.
The state-centric nature
of China’s financial system—
and its weak intellectualproperty protection—represents a double whammy for
prospective entrepreneurs.
Small private-sector firms
often have access to capital
only through expensive
shadow-banking channels,
and face the risk that some
better-connected, statebacked firm will make off
with their designs—with
very little recourse.
The sheer amount of cash
Beijing is throwing at robotics, chips and electric vehicles makes it likely some
Chinese companies will succeed in those sectors over
the long run. But the wait
could be longer, and the results less satisfactory for investors, than current rhetoric on both sides of the
Pacific suggests.
—Nathaniel Taplin
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