For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 20648.15 g 41.09 0.2%
Whats
News
Business & Finance
G E is weighing a sale of
its lighting unit, the lat-
est move in the conglomer-
ates pivot away from con-
sumer businesses. A1
 The Fed agreed at its
March meeting that it
would likely begin shrink-
ing a $4.5 trillion securities
portfolio later this year. A2
 Stocks fell after the re-
lease of the Fed minutes,
reversing an early surge.
The Dow closed down 41.09
points at 20648.15. B11
 Panera Bread plans to be
acquired for roughly $7.16
billion by European invest-
ment fund JAB Holding. B1
 Theranos founder Holmes
owes her blood-testing firm
about $25 million, accord-
ing to a deal document. B1
 GOP senators intro-
duced a bill to rein in a
government-backed loan
program for energy-saving
home improvements. B1
 Wells Fargo overhauled
its credit-card-processing
business after an internal
probe found abuses. B6
 Private-sector hiring re-
mained strong, with em-
ployers adding more jobs in
March than expected. A2
 Amazons Bezos said in
some years he has invested
up to $1 billion in his rocket
firm and hopes to start space-
tourism flights in 2018. B3
 BlackRock named Ciscos
chief as a director, making
him the first tech CEO on the
money managers board. B10
 Megyn Kelly agreed on
exit terms with Fox News
and signed a pact with NBC,
her spokeswoman said. B2
World-Wide
 Trump condemned a
suspected chemical attack
by the Assad regime and
signaled it could spur a
more aggressive U.S. pol-
icy toward Syria. A1
 Medical groups said the
victims symptoms were
consistent with exposure to
a nerve agent, as the death
toll rose to at least 85. A8
 Islamic State gunmen
and suicide bombers dis-
guised as police killed at
least 35 people in an attack
on the Iraqi city of Tikrit. A9
 Bannon was removed
from the NSC principals
committee and top intelli-
gence officials were restored
as permanent members. A6
 The White House is tak-
ing the lead in shaping tax
legislation, even as divi-
sions have emerged in the
GOP about a policy. A4
 Homeland Security
head Kelly said he doesnt
envision a wall stretching
the entire length of the U.S.
border with Mexico. A4
 Trumps FDA nominee
stressed his belief in drug
safety and efficacy and
said he hopes to expand
approval of generics. A4
 The ANC leadership
closed ranks around Zuma,
seeking to show a united
front amid calls for the South
African president to quit. A20
 The Muslim birthrate is
likely to exceed that of
Christians within 20 years,
which could make Islam the
worlds largest religion. A20
 The European Parliament
toughened its stance on talks
about the U.K.s exit. A9
CONTENTS
Banking & Fin..... B10
Business News...... B3
Capital Account.... A2
Crossword.............. A14
Heard on Street. B12
Life & Arts...... A13-15
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * *
NASDAQ 5864.48 g 0.6%
SHANNON STAPLETON/REUTERS
CALL TO ACTION: Nikki Haley, U.S. ambassador to the United Nations, shows photos of victims of Tuesdays
suspected chemical attack in Syria at Wednesdays emergency meeting of the U.N. Security Council.
Lightbulbs Lose Shine at GE,
As Firm Weighs Sale of Unit
BY DANA MATTIOLI
AND THOMAS GRYTA
The company that pio-
neered lightbulbs now wants
to turn off the switch.
General Electric Co. is
weighing a sale of its con-
sumer-lighting business, which
for decades defined the com-
pany following its co-founding
125 years ago by Thomas Edi-
son, the inventor of the first
viable incandescent lamp.
The Boston-based industrial
giant has been interviewing
investment banks to sell the
unit, which could fetch around
$500 million, according to
Apples Pay Problems
Apple Inc. has made headway
with Apple Pay, but growth has
missed expectations. Customers
worry about security and
retailers wont accept it. B4
Number of U.S. merchants
accepting Apple Pay
compared with major
credit cards, in millions
Apple Pay
2016
2014
AmEx
2016
2014
Discover
2016
Markets............. B11-12
Opinion.............. A17-19
2014
Sports........................ A16
Technology............... B4 Visa
U.S. News............. A2-6 2016
Weather................... A15
World News A7-9,20
2014
MasterCard
> 2016
2014
0 2 4 6
Source: the Nilson Report
THE WALL STREET JOURNAL.
THURSDAY, APRIL 6, 2017 ~ VOL. CCLXIX NO. 79
STOXX 600 380.09 0.02% 10-YR. TREAS. g 1/32 , yield 2.352%
people familiar with the mat-
ter. There is no guarantee of a
deal.
Exiting the business would
be the latest sign that this
isnt your fathers GE. Once as-
sociated with refrigerators,
microwaves and lightbulbs
that it sold to consumers, GE
is now focused on power tur-
bines, aircraft engines, health-
care equipment and locomo-
tives, along with lucrative
service contracts for those
machines.
I became CEO in 2001. We
did pet insurance, media, in-
dustrial, plastics. We were a
conglomerate, Chief Execu-
TARGETS PRICEY
SOCIAL LESSON
Retailers bathroom-policy post sparked backlash,
exposing problems it is spending billions to fix
BY KHADEEJA SAFDAR
In April last year, Target
Corp. published a blog post
welcoming transgender em-
ployees and shoppers to use
restrooms and fitting rooms
corresponding with their gen-
der identities. Everyone de-
serves to feel like they be-
long, read the post, which
turned half of Targets red
bullseye logo into a gay-pride
rainbow.
Other retailers have similar
policies. But for Target, the
posting of what was its long-
held practice quickly became
an expensive and distracting
lesson about the perils of
combining the webs mega-
8 10 phone with touchy social is-
sues.
Target Chief Executive
Brian Cornell hadnt approved
WSJ.com HHHH $3.00
OIL $51.15 $0.12 GOLD $1,245.40 g $9.60 EURO $1.0665 YEN 110.70
Trump Pivots
On Syria
After Attack
WASHINGTONPresident U.S. involvement or a military
Donald Trump called a sus- response could heighten tension
pected chemical attack by the with Russia, a regime ally, and
Assad regime a terrible affront complicate the fight against Is-
to humanity that changed his lamic State that Mr. Trump has
mind about the Syrian strong- prioritized.
Hours after Mr. Trump
By Carol E. Lee, spoke, Secretary of State Rex
Dion Nissenbaum Tillerson urged Russia to aban-
and Farnaz Fassihi don its support for Mr. Assad.
Last week, he and other ad-
man, signaling a more aggres- ministration officials indicated
sive U.S. policy toward Syria. the U.S. expected Mr. Assad
Mr. Trump didnt elaborate would remain in power.
on how his administration The attack left the Trump ad-
would respond to the latest at- ministration confronting the
tack, which killed at least 85 same dilemmas former Presi-
people, but said it made him re- dent Barack Obama contended
evaluate his approach to Syrian Please see ASSAD page A8
President Bashar al-Assad and
his regime.  Death toll in Syria gas attack
My attitude toward Syria hits at least 85 ....................... A8
and Assad has changed very  Images of victims prompt a
much, he told reporters. Deeper shift................................................. A8
Global Hot Spots
Test New Team
BY CAROL E. LEE Secretary of State Rex Tiller-
AND FELICIA SCHWARTZ sons planned visit next week to
Russia, a patron of the Syrian
WASHINGTONA confluence regime.
of crises in Syria and North Ko- The president has signaled in
rea is forcing President Donald recent days that he is willing to
Trump to re-eval- scramble the U.S. approach to
ANALYSIS uate his fledgling North Korea, including by using
foreign policy, de- military force, and he put his
ciding which ad- stance on Syria in play as well
visers he will listen to and in a news conference on
which campaign pledges to jetti- Wednesday.
son. Mr. Trump thus showed a
The apparent chemical-weap- readiness to shift from positions
ons attack in Syria and the lat- he held during his presidential
est ballistic missile test by campaign, when he entertained
North Korea raise the stakes for the prospect of talks with North
two upcoming events: Mr. Koreans and others. But the cri-
Trumps summit this week with ses also will help indicate
Chinese President Xi Jinping, a whether there has been a
key ally of North Korea, and Please see TRUMP page A9
INSIDE
tive Jeff Immelt said in a re-
cent interview, noting that
putting together disparate
business like media, plastics
and insuranceall former GE
businessesdoesnt really
work.
Weve managed to exit
things like media. Our job now
is to get deeper, not broader,
he said.
During Mr. Immelts tenure,
the company has wound down
its massive lending arm, which
CHEAPER PEPSI PULLS
once had more than $600 bil- WAYS TO FLY AD AFTER
lion in assets, and sold off sev-
eral business units, including
TO EUROPE BACKLASH
its ownership of NBCUniversal.
Please see GE page A6 THE MIDDLE SEAT, A13 BUSINESS & FINANCE, B3
Oracle #1
SaaS Enterprise
Applications Revenue
the April 19 post, which re- 1,000+ Employees Segment, 2015
sponded to a move by North
Carolina to legislate bathroom
use, said people familiar with
the episode and its aftermath
#1
at Target. He didnt see an
email notifying executives of
the post, and was surprised to
learn about it.
The next day, a conserva- #2
tive Christian nonprofit,
American Family Association,
called for a boycott of Target, Oracle Salesforce
saying the policy is exactly Cloud Cloud
how sexual predators get ac- 14.5% 12.4%
cess to their victims. Protest-
ers picketed stores from Clo-
vis, Calif., to Mount Dora, Fla.
At Targets Minneapolis
headquarters, executives
scrambled to control the dam- oracle.com/applications
age, according to the people Source: IDC Worldwide SaaS Enterprise Applications Market Shares, 2015: The Top 15 by Buyer Size,
familiar with the aftermath, doc #US41913816, Dec. 2016; Table 4. For the purposes of this report, SaaS enterprise applications include
the following application markets: CRM, engineering, ERP, operations and manufacturing, and SCM.
perplexed that they were pil- Copyright 2017, Oracle and/or its affiliates. All rights reserved.
Please see TARGET page A12
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Thursday, April 6, 2017
The Flawed Case Against Pricing Carbon
T
his week Scott Pruitt,
head of the Environ-
mental Protection
Agency, acknowledged that
humans do indeed contribute
to a warming climate.
Mr. Pruitts concession to
scientific consensus came with
a caveat: The
real issue is
how much we
contribute to it
and measuring
that with preci-
CAPITAL sion. Indeed,
ACCOUNT how regulators
GREG IP measure cli-
mate impact
matters more
than agreeing that such an im-
pact exists. This makes Presi-
dent Donald Trumps order
last week scrapping official es-
timates of the social cost of
carbon especially significant.
Without actually disputing the
science behind climate change,
it drastically raises the bar to
acting on it.
Federal rules are supposed
to cost the economy and soci-
ety less than the harm they
prevent. But regulators long
lacked any benchmark for the
costs of greenhouse gas emis-
sions. Courts have ruled they
cant assume the costs are
zero, so in 2010 Barack
Obamas administration, after
lengthy study, began estimat-
ing the social cost of carbon.
It put the future damage, such
as from rising sea levels and
Storms Sweep Across Parts of the South
HYOSUB SHIN/ATLANTA JOURNAL-CONSTITUTION/ASSOCIATED PRESS
WET WEATHER: A crew cleaned up fallen trees in Roswell, Ga., Wednesday. Storms battered parts of Alabama and other Southern states.
ALABAMA
Governor Allegations Hearing to Proceed
Sent to Prosecutor On Police Oversight
A state ethics panel on
Wednesday found probable
cause that Alabama Gov. Robert
Bentley broke state ethics and
campaign finance law in a scan-
dal that has engulfed him for
more than a year.
The Alabama Ethics Commis-
sion voted to refer the matter to
the district attorney's office for
possible prosecution.
Mr. Bentleys attorney Bill
Athanas said Wednesday that
the governor maintains his inno-
cence. "We disagree strongly
with the result but I think it is
important to keep in mind that
it is a finding of probable cause,
not finding of a violation," Mr.
Athanas said.
Associated Press
Hiring Robust in Private Sector
BY JOSHUA JAMERSON
Private-sector hiring this
year remained strong as em-
ployers reported adding more
workers to their payrolls in
March than expected, accord-
ing to a report Wednesday.
Private payrolls across the
nation rose by 263,000 last
month, said payroll processor
Automatic Data Processing Inc.
and forecasting firm Moodys
Analytics. Economists polled
by The Wall Street Journal
had expected a gain of 180,000.
In February, ADPs report
crop damage, of emitting one
metric ton of carbon dioxide
in 2015 at $42.
Critics argued the Obama
administration chose assump-
tions that inflated that figure.
Mr. Trump has instructed
agencies to use broad regula-
tory guidance issued in 2003
that allows much less strin-
gent assumptions. Yet most of
the criticism of the initial esti-
mates doesnt stand up.
The most widespread criti-
cism of Mr. Obamas social
cost of carbon is that it was
derived from complex models
that link emissions to atmo-
spheric concentrations to
temperature and then to eco-
nomic damage.
This, they say, yields re-
sults so uncertain they cant
justify costly and irreversible
mitigation measures. Critics
also note that actual tempera-
tures seem less responsive to
CO2 than models predicted,
which the United Nations-
backed Intergovernmental
Panel on Climate Change ac-
knowledged in 2014.
B
ut the answer to imper-
fect models isnt to ig-
nore them but to im-
prove them. Michael
Greenstone, a University of
Chicago economist who led
the Obama administrations ef-
fort, says about 150 reputable
studies of climate damage
have been released since 2009
U.S. WATCH
BALTIMORE
A federal judge on Wednes-
day rejected the Justice Depart-
ments request to delay a hear-
ing on a proposed agreement
with Baltimore aimed at elimi-
nating racially biased police prac-
tices, ruling the session will take
place Thursday as scheduled.
U.S. District Judge James
Bredar said the Justice Depart-
ment, which cited a recent
memo by U.S. Attorney General
Jeff Sessions in seeking the de-
lay, didnt show it would be
harmed should the hearing take
place as planned.
The overhaul plan was
reached in the final days of the
Obama administration and still
needs Judge Bredars approval.
Scott Calvert
showed the private sector
added 298,000 jobs.
The gains are broad-based
but most notable in the goods
producing side of the economy
including construction, manu-
facturing and mining, said
Mark Zandi, chief economist of
Moodys Analytics.
Goods-producing industries,
which include construction
and manufacturing, added
82,000 jobs. Service-providing
sectors such as hospitality
added 181,000 jobs in March.
Most of the job gains came
from small businesses, defined
U.S. NEWS
Measuring the Harm of Climate Change
The social cost of carbon, the harm caused by carbon dioxide emissions, varies according to discount
rates and whether domestic or global damages are included.
Global social cost of carbon*
$120 a metric ton Discount
rate
2.5%
100
80 3%
60
40
5%
20
0 0
2010 20 30 40 50
*In 2017 dollars
Sources: White House Interagency Working Group 2016 (social cost of carbon),
Climate Impact Lab at the University of Chicago (studies)
and they would appear to jus-
tify an even higher cost: The
evidence so far is that the
damages are greater than we
understood for example due
to heat-related deaths in India.
And uncertainty alone
doesnt justify inaction. Mili-
tary and terrorist attacks are
also highly uncertain, yet the
U.S. spends more than 3% of
national income to prevent
them on the theory that
spending nothing makes an
attack more likely. Moreover,
their consequences are asym-
metric: peace in the best
case scenario, nuclear annihi-
CALIFORNIA
Lawmaker in Runoff
For U.S. House Seat
Jimmy Gomez, a Democratic
California legislator, captured the
most votes in the nations first
congressional election held since
November, according to prelimi-
nary results. With 28% of the
vote in the special election
held Tuesday in Los Angeles, Mr.
Gomez is expected to advance
to a June 6 runoff.
The race to determine his
challenger was still too close to
call Wednesday, according to the
Associated Press, though Demo-
crat Robert Lee Ahns campaign
declared victory in the race for
second place. The special elec-
tion is to fill the seat held by
Xavier Becerra, who was ap-
pointed state attorney general.
Alejandro Lazo
by ADP as companies with 49
or fewer employees. These
firms added 118,000 jobs. Mid-
size firms with 50 to 499 em-
ployees added 100,000 work-
ers, while large businesses
added 45,000.
Consumer-dependent in-
dustries including health care,
leisure and hospitality, and
trade had strong growth dur-
ing the month, said Ahu
Yildirmaz, vice president and
co-head of the ADP Research
Institute.
The Labor Departments job
report for March is due Friday.
Domestic social cost of carbon*
$120 a metric ton
100
80
60
40 Discount
rate
20
2010 20 30 40 50
lation in the worst.
The consequences of global
warming are similarly uncer-
tain and asymmetric.
Robert Pindyck, an econo-
mist at the Massachusetts In-
stitute of Technology, argues
climate policy should be
geared to preventing extreme
scenarios rather than the un-
reliable base-case projections
of models. According to his
survey of experts, to eliminate
even a small risk of a 20% loss
of future global income would
require a social cost of carbon
equal to $80 to $100 per ton.
Another controversy is over
CHICAGO
Mayor Pushes Rule
To Graduate: a Plan
Chicago Public School stu-
dents who want to graduate will
have to show proof that they
have a plan after high school
such as providing an offer letter
for a job or acceptance into col-
lege or military service under a
plan expected to be approved
next month.
The initiative, pitched by for-
mer U.S. Education Secretary
Arne Duncan and carried by Chi-
cago Mayor Rahm Emanuel, is
targeted at encouraging stu-
dents to plan for life after high
school.
The goal here is to no longer
have 12th grade be the end of
our responsibility, Mr. Emanuel
said in an interview.
Tawnell D. Hobbs
Payroll Boost
Change in nonfarm
private-sector payrolls,
in thousands of jobs 263,000
250
200
150
100
50
0 NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
2015 16
Source: ADP LLC; Moody's Analytics
THE WALL STREET JOURNAL.
* *** THE WALL STREET JOURNAL.
bonds yielded 2% after infla-
tion; today, just 0.5%.
T
he most valid criticism
of the social cost of car-
Number of studies of climate bon is that the Obama
change damage administration calculated the
harm U.S. emissions cause to
60 studies
the world, departing from the
convention of considering only
50
harm to U.S. residents, which
would slash the $42 cost per
40
ton to as little as $3.
There was a logic to this.
30
The harm that carbon dioxide
causes to any country, unlike
20
acid rain or mercury, is the
2.5% same no matter where on
3% 10
earth it originates.
5%
Yet holding the U.S. to a
0
global benchmark could cause
1986 90 2000 10 some industries to move to
nations with lower standards,
THE WALL STREET JOURNAL. leaving emissions unchanged
and Americans worse off.
the rate at which the benefit That doesnt sit well with
of preventing future harm is Mr. Trumps America first
discounted. As in all of fi- worldview.
nance, the lower the discount If the global cost of carbon
rate, the greater the value in is mostly a tool for inducing
todays dollars. Federal guid- other countries to cooperate,
ance in 2003 required regula- Mr. Trump could turn this to
tors to discount benefits at his advantage. Chinese Presi-
both 3% (the real, or after-in- dent Xi Jinping will likely
flation return, on government press him this week to abide
bonds) and 7% (the return on by emissions limits agreed
private investments). The upon in 2015. Mr. Trump
Obama administration used could respond that if China
only 3%. Critics note 7% would subjects all its decisions to
have produced a far lower fig- the social cost of carbon, the
ure. Yet with time, the lower U.S. will do the same.
discount rate looks ever more First, though, Mr. Trump
sensible. In 2003 government has to decide he cares.
Fed Looks to Cut
Holdings This Year
BY NICK TIMIRAOS lower.
The Feds balance-sheet
Federal Reserve officials strategy remains a work in
agreed at their March policy progress. Most officials want
meeting they would likely be- to use short-term interest
gin shrinking a $4.5 trillion rates as their primary tool for
portfolio of Treasury and conducting monetary policy,
mortgage securities later this which means once they set in
year, though they remained motion their plan for shrinking
undecided on how quickly to the portfolio, they would want
reduce the holdings and to that wind-down to run quietly
what level, according to min- in the background.
utes released Wednesday. Among the details not
The minutes of the March worked out in March was
14-15 gathering help answer a whether the Fed would phase
question hanging over markets out its reinvestment policy
in recent months. The Fed has slowly or cease it all at once,
been telegraphing interest-rate though the minutes suggested
increases for years but has officials saw the first option as
been guarded on how it will the primary way to shrink the
handle the sizable securities portfolio. Officials saw that as
holdings it acquired through least disruptive to markets and
asset-purchase programs dur- the economy but also possibly
ing and after the 2007-09 re- hard to communicate clearly,
cession. Those programs the minutes said.
aimed to hold down long-term Other questions center on
interest rates and boost eco- when to begin the process.
nomic growth. Some officials said they
Reducing the balance sheet wanted to set a numerical in-
is a delicate task as it could terest-rate trigger, meaning
cause long-term rates to rise they would start shrinking the
and undermine the expansion. portfolio after their bench-
The portfolio grew from less mark rate rose to a specified
than $1 trillion before the fi- level.
nancial crisis to $4.5 trillion. Others favored a qualitative
The Fed has maintained its approach based on broader as-
size by reinvesting proceeds of sessments of the economy and
maturing securities into new financial conditions.
mortgage and Treasury bonds. The discussion about how
Ceasing reinvestments would to wind down the portfolio is
cause it to shrink. picking up now that the econ-
Most participants judged omy is moving closer to meet-
that a change in the [Feds] re- ing the Feds goals of steady,
investment policy would likely low inflation and maximum,
be appropriate later this year, sustainable employment.
the minutes said. The Feds preferred infla-
Stocks gave up early tion gauge in February ex-
gains on Wednesday after the ceeded the banks 2% target
release of the Fed minutes. for the first time in nearly five
The Dow Jones Industrial Av- years. So-called core prices,
erage fell 41 points, or 0.2%, to which exclude food and energy,
close at 20648. Yields on U.S. have been more stable, at
government bonds edged around 1.8% over the past year.
CORRECTIONS  AMPLIFICATIONS
In some editions Wednesday, The capital of Nigeria is
a U.S. News article about efforts Abuja. A Review article Satur-
to revive the GOP health-care day about building farms in
bill incorrectly said Rep. Andy Nigeria incorrectly suggested
Barr, a Kentucky Republican, is a that it was Lagos, the former
member of the Freedom Caucus. capital.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
March
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal holidays.
Periodicals postage paid at New York, N.Y., and other mailing offices.
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the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertisers order.
Only publication of an advertisement shall constitute final acceptance of the advertisers order.
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Cruise Lines
Stay Clear of
Death Suits
Deadly riverboat fire
revives debate about
1920 law that gives
industry immunity
BY JOE PALAZZOLO
Christy and Larry Hammer,
two retirees from Nebraska,
were asleep in their cabin on
La Estrella Amazonica, a river-
boat built for adventure cruises
on the Peruvian Amazon, when
a power strip in their cabin
caught fire and spread to their
luggage and mattress. The
smoke eventually killed them.
The riverboats fire alarm
did not operate at all, and
its crew, lacking training and
equipment, took over 20 min-
utes to enter the Hammers
cabin, Peruvian authorities
said in an October report, cit-
ing a litany of violations of the
nations maritime regulations.
The Hammers surviving
daughters, Jill Malott and Kelly
Lankford, have come to believe
their parents deaths could
have been prevented, as more
information has surfaced since
the April 10, 2016 fire.
But because of a 1920 law
known as the Death on the
High Seas Act, the cruise in-
dustry enjoys broad immunity
from damages in wrongful-
death cases involving retirees
and other passengers who have
no financial dependents.
International Expeditions,
the Alabama-based company
that charters the cruise and
helped design the riverboat,
has told the daughters through
its lawyers that it has no finan-
cial obligation to the family un-
der the law, according to Ms.
Malott and her familys lawyer.
The familys search for ac-
countability has revived a de-
Conservatives Take Heat in Rhodes Scholars Clash
RODGER BOSCH/AGENCE FRANCE-PRESSE/GETTY IMAGES
A statue of Cecil Rhodes was
taken down in South Africa.
bate about a law enacted de-
cades before the advent of the
modern cruise industry, which
serviced more than 11 million
Americans in 2015, according
to industry figures. Travelers
aged 60 to 74 account for
about a quarter of all North
American cruise passengers.
While Congress and states
have made it easier for families
to recover damages for fatal
accidents that happen in the
air and on land, the Death on
the High Seas Act treats boat
passengers the same as it did
nearly a century ago.
Congress intended the Death
on the High Seas Act to benefit
the widows of seamen who
died in international or foreign
territorial waters. It permitted
the widows to recover financial
support their husbands would
have provided, known as pecu-
niary damages.
Recoveries under the law
end there. Cruise companies
have no legal obligation to pay
damages for the deaths of pas-
sengers who had no financial
dependents. That leaves little
recourse for families of retir-
ees, children and other cruise
passengers who werent earn-
ing wages and providing finan-
cial support to anyone at the
time of their death.
Courts have held in several
cases that the law prevents re-
tirees from suing cruise lines
for damages over the deaths of
their spouses in accidents
aboard ships. Many cases never
make it to court. Ms. Malott
said several lawyers turned her
down, warning that the Death
on the High Seas Act would
preempt the familys case.
Industry representatives
said the law reflects interna-
tional norms. If Congress
amended it to allow greater
damages, the U.S. would attract
BY DOUGLAS BELKIN
The Rhodes scholarship is
one of academias greatest
honors, but many recipients
and alumni want to knock its
founder off his perch.
They have sought the re-
moval of statues of Ce-
cil Rhodes, the British mining
magnate, racial segregationist
and champion of imperialism
who endowed the scholar-
ships.
Now a conservative group
is resisting the push to
purge Rhodes. Some of them
are turning an internet dis-
U.S. NEWS
Larry and Christy Hammer, pictured with daughters Kelly Lankford and Jill Malott, died in a 2016 fire on La Estrella Amazonica.
droves of foreign litigants,
burdening an already crowded
U.S. judicial system, said
Christina Perez, spokeswoman
for the Cruise Lines Interna-
tional Association.
Ms. Perez said insurance
rates for cruise ships would
skyrocket, increasing prices
and potentially jeopardizing
thousands of jobs.
Van Perry, president of In-
ternational Expeditions, said
the company reached out to
the family on a number of oc-
casions to discuss the fire. Ms.
Malott said the company and
its insurer asked the family to
cussion group for Rhodes
scholars and alumni into a
slugfest, with commenters
trading accusations of lying,
bigotry and racism.
Adding to the tumult is the
refusal by the Rhodes Trust,
which runs the program, to
host Rhodes Scholars for In-
tellectual Diversity on its
website. The trust says it
wont host the group because
its views arent being articu-
lated by current Rhodes
scholars, though it does host
a group of current and former
scholars aligned with those
critical of Rhodes.
sign a confidentiality agree-
ment before meeting, a condi-
tion the sisters rejected.
International Expeditions,
which said in its promotional
materials that it helped design
the riverboat, sent the Ham-
mers daughters a check for the
amount of their parents tick-
ets: about $10,000. Ms. Malott
said they returned it.
IE remains committed to
cooperate with the authorities
and shares the familys desire
for information as the Peruvian
authorities continue their in-
vestigation, Mr. Perry said in
an emailed statement.
The conservative group is
at best a smoke screen and at
worst an outright lie, one
alumnus wrote on the list
serve viewed by The Wall
Street Journal. Others labeled
conservative posts on sub-
jects like immigration, femi-
nism and Islam as vaguely
coherent rants filled with
tripe.
Discussion group founder
Dan Lubrich, a 2002
Rhodes scholar, said he was
pushing to open dialogue and
elevate conservative ideas in-
side the Rhodes Trust. He
pointed toward the greater
NE W YORK
CHICAGO
F O R I N S I D E R A C C E S S : T H E W I N D O W. B A R N E Y S . C O M
G LO B E-TROT TE R
AVA I L A B L E I N M A N H AT TA N A N D S E L E C T Z I P C O D E S
I N T H E G R E AT E R M E T RO P O L I TA N A R E A
Thursday, April 6, 2017 | A3
How Industry Has
Kept Change at Bay
After TWA Flight 800
crashed off the coast of New
York in 1996, killing 230 people
on board, Congress amended
the Death on the High Seas Act
to allow families of international
plane passengers to recover
damages for the loss of care,
comfort and companionship of
loved ones.
But Congress left in place
the damages provisions that
apply to passengers of sea
vessels. That decision came at
the urging of the cruise indus-
try, which has spent about $30
million on Washington lobby-
ists since 2006. Travel law ex-
perts frequently cite the incon-
sistency in support of
amending the law.
Why should passengers on
planes be treated better? said
Thomas Dickerson, a New York-
based lawyer and former judge.
Christina Perez, spokes-
number of left-leaning politi-
cians who received
the Rhodes, and he said con-
servative alumni were under-
represented on committees
that select recipients.
Its like most of academia,
there is this leftward drift
which reinforces itself over
time, said Mr. Lubrich, a
physicist and co-founder and
chief technology officer of an
Arizona aerospace company.
The dispute among alumni
has been simmering for years
but was accelerated by the
Rhodes Must Fall campaign,
which successfully lobbied for
BARNEYS.COM
B E V E R LY H I L L S SAN FRANCISCO
BOSTON LAS VEGAS S E AT T L E
S A M E D AY D E L I V E RY
STEVE BAILEY(LA ESTRELLA AMAZONICA ); COURTESY OF JILL MALOTT
woman for the Cruise Line In-
ternational Association, said
Congress hasnt changed the
law for the maritime industry
partly because it has a supe-
rior safety record.
Since 2013, the U.S. Coast
Guard has investigated at least
80 deaths on cruise ships, ac-
cording to records provided to
The Wall Street Journal. A ma-
jority of the deaths are listed
as stemming from pre-existing
medical conditions, but others
resulted from accidents, dis-
ease and asphyxiation. River-
boats are regulated by their
native maritime authorities.
Democratic lawmakers have
made several attempts to ex-
pose the cruise industry to the
same damages airlines face, in-
cluding in 2010 when legislation
passed the House of Represen-
tatives but stalled in the Senate.
Rep. Doris Matsui, a Califor-
nia Democrat who has previ-
ously supported amending the
law, is interested in reviving that
effort, a spokeswoman said.
Joe Palazzolo
the removal of a statue
of Rhodes at the University of
Cape Town in 2015. A drive to
remove a Rhodes statue from
Oxford, where the scholarship
program is based, failed last
year, though the statue and
Western-oriented curriculum
remain hot topics.
Charles Conn, director of
the Rhodes Trust, said he felt
the debate was healthy.
In some sense the Rhodes
Must Fall was a useful inter-
lude, he said. It forced ev-
erybody to think about that
question, who was Rhodes?
What did he stand for?
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Thursday, April 6, 2017
White House Takes Lead on Taxes Official
Doesnt
No consensus has
emerged thus far
among the GOP on
the legislations shape
The Trump administration,
stung by its failure to advance a
health-care overhaul through
Congress, is trying to lay a
stronger foundation for a tax-
code rewrite by taking a lead
role in shaping the legislative
push, according to interviews
with several senior officials.
By Peter Nicholas,
Nick Timiraos
and Richard Rubin
Despite the ramped-up ef-
fort, no consensus has emerged
yet among senior White House
advisers about either the shape
of the tax plan or the strategy
for building a coalition on Capi-
tol Hill. Administration officials
are courting Democrats, but the
two parties face wide fissures
that could be difficult to close.
Meantime, divisions have
emerged within the Republican
Party and inside the White
House itself, where members of
the GOP establishment and Wall
Street moderates have been
jockeying for primacy against
economic nationalists in the
new administration.
Much remains unsettled, and
the timing is tight. One White
House official said that the cur-
rent August goal for a plan to
pass could slip, and that it
might be difficult to pass any-
ERIC THAYER/REUTERS
Sen. John McCain, part of a group that averted a Senate rules change in 2005, said he reluctantly would join the effort to alter rules for confirming Supreme Court nominees.
Senate Braces for Nuclear Option on Rules
BY KRISTINA PETERSON
WASHINGTONA biparti-
san group of 14 U.S. senators
in 2005 ended a bruising
fight over federal judgeships
with a compromise agreement
that stopped GOP leaders
from changing the chambers
rules for confirming Supreme
Court nominees.
Twelve years later, no such
group has materialized to pull
the Senate back from the brink
in the battle over Judge Neil
Gorsuch, President Donald
Trumps nominee to the Su-
preme Court.
The countrys increasing
political polarization in the in-
tervening years has hardened
the stances of Senate Demo-
crats, who said this week they
had enough votes to mount a
filibuster to block a vote on
Judge Gorsuch under the cur-
rent, decades-old rules, and
Republicans, who are expected
on Thursday to permanently
change the chambers rules to
confirm the presidents pick.
The whole environment
has dramatically changed,
said Sen. John McCain (R.,
Ariz.), a member of the so-
called Gang of 14 that averted
a rules change in 2005.
This week, Mr. McCain said
he reluctantly would join most,
if not all, Republicans in voting
to alter the Senates rules so
Supreme Court nominees
could be confirmed with a sim-
thing after December.
So were really going to
push aggressively to get some-
thing done, the official said.
Last week, President Donald
Trump met with Treasury Sec-
retary Steven Mnuchin, Na-
tional Economic Director Gary
Cohn and senior advisers Steve
Bannon and Jared Kushner to
review the state of play on the
administrations tax plan.
Meanwhile, the presidents leg-
islative advisers met this week
with a group of House Demo-
crats on Capitol Hill, sounding
them out on ideas and various
options under consideration.
If it succeeds, the tax legisla-
tion could become a model for
the Trump White House. Its
failure would mark another ma-
jor policy setback for Mr.
Trump, which would signifi-
cantly diminish his ability to
get any major initiatives
through Congress.
The main blueprint for a bill
now is a plan pushed by House
Speaker Paul Ryan (R., Wis.),
but the White House is wary of
one of the bills key compo-
nents: a border-adjusted tax
proposal that would subject im-
ports to a 20% corporate-tax
rate while exempting exports
from U.S. taxation. Any change
on so sweeping a scale needs
more widespread backing than
has been evident to date, ad-
ministration officials said.
Revenue-raising alternatives
to border adjustment, such as a
carbon or consumption tax, are
getting nowhere in discussions.
Wooing Democrats now
Donald Trumps
First 100 Days
The administrations latest
actions and agenda at a glance
WEDNESDAY
u Syria: President Donald
Trump blamed the regime of
Syrian President Bashar al-
Assad for the suspected chemi-
cal-weapons attack on civilians
in Syria, which he described as
a terrible affront to humanity
that has changed his view of
Syria and its leader. He didnt
elaborate on how the adminis-
tration would respond.
u Mexico wall: Homeland Se-
curity Secretary John Kelly told
members of Congress that he
doesnt envision a wall stretch-
ing the entire length of the U.S.
border with Mexico, and would
instead focus on building addi-
tional fencing where it was
most feasible. The statement
ple majority, rather than the
60 votes currently needed.
One party moving unilater-
ally to change the rules is so
contentious, it is referred to as
the nuclear option. It would
leave the minority party with-
out any ability to block nomi-
P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
President Donald Trump, shown Wednesday at the White House,
has said he backs a simpler tax code and lower business rates.
Democrats Seek Tie Its harder to come to the
table and find a bipartisan solu-
With Infrastructure tion if tax reform and infrastruc-
ture dont move together, said
Rep. Josh Gottheimer (D., N.J.),
Many Democrats want any who was part of a group of
tax overhaul to be tied to an House Democrats who met this
ambitious infrastructure pack- week with Trump aides. My
age. worry is if you decouple them,
But for now, the Trump ad- you lose the opportunity to
ministration seems committed make sure they both get done.
to keeping them separate, mind- Democrats who cooperate
ful of the difficulty involved in with Republicans also risk repri-
passing either one. That posture sals from voters back home.
could scare off Democrats. Peter Nicholas
seems part of the playbooka But some moves that might
lesson learned from the health- appeal to Democrats, such as
care debacle. Administration of- higher taxes on the wealthy,
ficials have stepped up outreach risk losing key GOP support.
in recent days. Broadly, Mr. Trump wants a
ran contrary to one of Mr. WHATS AHEAD
Trumps key campaign pledges. u Mr. Trump said a response
to the threat posed by North
u Security Council: Mr. Korea, which launched a me-
Trumps chief strategist, Steve dium-range ballistic missile on
Bannon, has been removed Wednesday, will be a central
from the National Security focus of his meeting this week
Councils principals committee, with President Xi Jinping of
and top U.S. intelligence offi- China.
cials have been restored as per-
manent members. QUOTES
If being complicit is wanting to
u First daughter: Ivanka be a force for good and to
Trump, the presidents elder make a positive impact, then
daughter and now an official Im complicit....I dont know
White House aide, said her role what it means to be complicit,
in the administration will entail but, but, you know, I hope time
discussing with her father the will prove that I have done a
issues I feel strongly about. good job.
She defended herself against Ms. Trump, referring on
criticism that she has so far CBS to a skit on NBCs Satur-
been silent on areas where she day Night Live that suggested
and the president disagree. she was complicit in the poli-
cies advanced by her fathers
u Baltimore: A federal judge re- administration
jected the Justice Departments
request to delay a court hearing Complicit is our #1 lookup af-
on a proposed agreement with ter Ivanka Trump told CBS I
Baltimore aimed at eliminating dont know what it means to
racially biased police practices, be complicit.
ruling the session will take place Editors at Merriam-Web-
Thursday as scheduled. ster Dictionary on Twitter
nees and enable the president Sen. Brian Schatz (D., Hawaii)
to cater to his or her partys said: Theres no doubt we are
ideological extremes if the moving into dangerous territory
Senate is controlled by the and were putting ourselves in a
same party. position where if youre ever in
Theres a variety of reasons the minority party, nobody has
for the shift, Mr. McCain said, to talk to you.
none of it good. Tuesday evening, Sen. Jeff
7 8 9 O I X X THE WALL STREET JOURNAL.
simpler tax code and lower
business tax rates to stimulate
investment and spur manufac-
turing. Coupling those moves
with a middle-class tax cut, the
NICHOLAS KAMM/AGENCE FRANCE-PRESSE/GETTY IMAGES
White House appears ready to
pitch the plan in populist
termsa vehicle for job cre-
ation and relief for families.
A populist approach, and one
that appeals to Democrats,
might force Republicans to give
up or scale back rate cuts on
high-income households, a pri-
ority for the GOP. Messrs. Ryan
and Trump have both said they
want to drop the top rate for in-
dividuals from 39.6% to 33%.
Moreover, Republicans are
reluctant to cut corporate-tax
rates without also lowering
rates for partnerships and other
businesses that pay income
taxes through their owners in-
dividual returns. Many small
businesses are taxed this way.
Other questions remain un-
answered. One Senate GOP aide
said the White House still needs
to set a revenue target. Will Mr.
Trump look for a revenue-neu-
tral plan that would reshuffle
the existing tax burden or seek
a tax cut? If he opts for the lat-
ter, how big should the cut be?
Mr. Ryan, at a speaking
event Wednesday, acknowl-
edged it would take time to
reach an agreement. The
House has a plan, but the Sen-
ate doesnt quite have one yet,
and theyre working on one, he
said. The White House hasnt
nailed it down. So even the
three entities arent on the
same page yet on tax reform.
Merkley (D., Ore.) took to the
Senate floor and spoke in pro-
test of Judge Gorsuchs nomina-
tion for more than 15 hours un-
til Wednesday morning. During
the night, Mr. Merkley railed
against a rules change. The ef-
fort, though largely symbolic, is
the closest approximation to a
talking filibuster that can be
found in the modern Senate.
Congressional experts said
this weeks expected Senate
showdown reflects a widening
gulf on Capitol Hill between
the prevailing Republican and
Democratic ideologies, as well
as fewer centrist lawmakers on
either side of the aisle.
Only three members of the
Gang of 14 who took action in
2005 are still in Congress, af-
ter several lost re-election
bids. In addition to Mr. Mc-
Cain, they are: Sens. Susan
Collins of Maine and Lindsey
Graham of South Carolina,
both Republicans.
The country is more di-
vided, and it becomes very dif-
ficult to be someone who bro-
kers a compromise, Ms.
Collins said on Tuesday.
Mr. Schatz of Hawaii said,
This is like a troubled rela-
tionship where everybody has
a grievance and everybody has
a little bit of a reason to be an-
gry, but the question becomes,
what do we do next?
Natalie Andrews being considered Wednesday by
and Byron Tau
contributed to this article.
See Wall
On Border
BY DAN FROSCH
AND LAURA MECKLER
Homeland Security Secre-
tary John Kelly told lawmak-
ers Wednesday he doesnt envi-
sion a wall stretching the entire
length of the U.S. border with
Mexico and would instead fo-
cus on building additional fenc-
ing where it was most feasible.
Mr. Kellys remarks before
the Senate Committee on
Homeland Security run con-
trary to one of President Don-
ald Trumps campaign prom-
ises, to build a wall along the
entire border with Mexico.
The administration is pursu-
ing funding and bids to build a
border wall, but the project
faces significant challenges. Mr.
Kellys comments reflect the
views of many security experts
and growing concerns among
lawmakers that an end-to-end
wall isnt practical or affordable.
Mr. Kelly said he was con-
sulting with U.S. Customs and
Border Protection officials
about where additional fencing
along the nearly 2,000-mile
border was most needed.
The president knows Im
looking at every variation on
the theme, he said.
Mr. Kelly faced tough ques-
tioning from Sen. Kamala Har-
ris (D., Calif.), who pressed
him on a policy being consid-
ered by Homeland Security
that would separate parents
and children caught trying to
cross the border illegally.
Mr. Kelly said previously that
he was weighing the approach
to deter families seeking to
come to the U.S. from becoming
ensnared in human-smuggling
networks. But on Wednesday,
he said the measure would gen-
erally only be undertaken if the
childs life was in danger.
Mr. Kelly also faced sharp
questioning from Sen. Claire
McCaskill (D., Mo.), the top
Democrat on the committee,
about his agencys plans for
tough new vetting procedures.
The Wall Street Journal re-
ported Tuesday that the Trump
administration was considering
new vetting rules that would
ask visa applicants to provide
cellphone contacts and social-
media passwords, as well as an-
swer questions about ideology.
Ms. McCaskill said such proce-
dures would alienate allies and
fail to screen out bad guys.
FDA Pick
Talks Up
Safety,
Generics
BY THOMAS M. BURTON
WASHINGTONScott Gott-
lieb, President Donald Trumps
nominee to run the Food and
Drug Administration, empha-
sized in his confirmation hear-
ing his belief in the gold stan-
dard of safety and efficacy
and said he hopes to expand
approvals of generic drugs to
lower U.S. prices.
Dr. Gottlieb said he sees the
need for new laws and FDA
regulatory action to get com-
plex-formulation drugslike
those used topically or with in-
halersmore quickly approved
as generics. While he also said
there are ways to speed up
some clinical trials, I think
there are ways to modernize
clinical studies without sacri-
ficing the gold standard.
His comments appeared
aimed at reassuring Democrats,
who have been critical of the
nomination because of Dr. Gott-
liebs extensive financial ties to
drugmakers and his prolific, of-
ten conservative writings in
which he has been critical of
FDA regulation, often saying
the agency should move faster.
The tension between speed
and a focus on safety has been
at the center of political debates
over the FDAs future. That has
especially been the case under
the Trump administration,
since the president has said the
FDA takes too long in approving
drugs and medical devices.
Dr. Gottliebs nomination was
the Senate Committee on Health,
Education, Labor & Pensions.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, April 6, 2017 | A5

Thank you.
To all who have stood by us as we have worked to make things right at Wells Fargo, we thank
you. We know you have many choices when it comes to banking, which is why we feel its our
privilege to serve you.

I became CEO of Wells Fargo six months ago, following our September 2016 retail sales
practices settlement. My first act was to apologize to our team, our customers, and the
public for our companys mistakes. At that time, I made a commitment to build a better
bank, and to earn back your trust.

While there is still work to do, there has been progress that I want to share with you:

Weve taken many steps to make things right for our customers. So far, weve refunded
approximately $3.2 million to approximately 130,000 retail and small business accounts.
Weve also agreed to a preliminary $110 million class action settlement that will go toward
further customer refunds. And to any customer whose credit might have been affected by
unauthorized account openings, we commit to you that we will make things right.

Weve made changes to ensure we always put our customers needs first. We eliminated
product sales goals and changed how we pay our retail bankers. Weve also invested in our
people, increasing the pay for our entry-level team members across the country.

Weve strengthened our ethics and risk management. This includes creating a new
Office of Ethics, Oversight, and Integrity; adding protections so anyone can feel safe
reporting their concerns to our Ethics Line; and expanding training for our managers
and bankers, so they can better respond.

And weve demanded greater accountability from ourselves. Weve changed leadership
at our Community Bank and terminated executives linked to inappropriate sales practices.
Our Board cancelled all 2016 cash bonuses for eight senior leadersincluding myselfwho
were on the companys Operating Committee prior to November 1, 2016. And we changed
our Board structure to separate the roles of Chairman and CEO.

Building a better bank is about fixing what went wrong and committing to find new and
better ways to serve our customers. Even as I write this, we continue to introduce new ways
to deliver services, develop our people, and manage risks.

All that said, I want to assure you that regaining your trust remains our top priority. In the
near term, our Board of Directors will issue the results of their independent investigation.
As we process those findings we will continue to update you on our efforts.

Again, thank you for standing by Wells Fargo as we build a better bank.

Sincerely,

Timothy J. Sloan
Chief Executive Officer and President
Wells Fargo & Company

For updates on our rebuilding efforts, I invite you to visit www.wellsfargo.com/commitment

2017 Wells Fargo Bank, N.A. All rights reserved. Member FDIC.
A6 | Thursday, April 6, 2017
Bannon Removed From National Security Council
BY CAROL E. LEE
AND ELI STOKOLS
WASHINGTONPresident
Donald Trumps chief strategist,
Steve Bannon, has been removed
from the National Security
Councils principals committee,
and top U.S. intelligence officials
have been restored as perma-
nent members, according to a
new presidential memorandum.
The decision was made by
Mr. Trumps new national se-
curity adviser, Lt. Gen. H.R.
McMaster, with the presi-
dents signoff, a senior admin-
istration official said.
The memorandum, reviewed
by The Wall Street Journal,
makes the director of the Cen-
tral Intelligence Agency a per-
manent member of the princi-
GE
Continued from Page One
GE also has left its headquar-
ters in Fairfield, Conn., for
new offices it is building in
downtown Boston.
The lighting unit GE is con-
sidering selling is now a small
and shrinking business that
consists of residential LED
lighting and connected-home
technology in North America.
GE would hold on to a sepa-
rate business, called Current,
that provides commercial LED
lighting, the people said.
The companys lighting
business, including the com-
mercial portion, had about
$2.2 billion in revenue last
year, or less than 2% of GEs
total. The consumer unit has
been based at a manufacturing
complex called Nela Park in
East Cleveland, Ohio, for more
than a century.
While the potential pro-
ceeds are a drop in the bucket
for GE, which has a market
value of more than $250 bil-
lion, the consumer businesses
were once core to the com-
pany.
Less than year after he took
the helm, Mr. Immelt walled
off the lighting and appliances
business into a new unit, then

    
 

pals committee and restores the
chairman of the U.S. militarys
Joint Chiefs of Staff and the di-
rector of national intelligence as
permanent members after they
were initially downgraded from
that status.
Also joining the principals
committee are Secretary of En-
ergy Rick Perry and United Na-
tions Ambassador Nikki Haley.
Mr. Bannon said in a state-
ment: Susan Rice operational-
ized the NSC during the last ad-
ministration. I was put on to
ensure that it was de-operation-
alized. General McMaster has re-
turned the NSC to its proper
function.
Ms. Rice was former Presi-
dent Barack Obamas national
security adviser.
Wednesdays change means
GE, co-founded by lightbulb inventor Thomas Edison, is weighing a sale of its consumer-lighting business.
called GE Consumer Products,
that put most of the consumer
business under one roof. Even
then, in 2002, the shift away
from the products that defined
the company in the early 20th
century was clear: The unit
only made up 6% to 7% of GEs
revenue.
For decades, GEs home ap-
pliances and lightbulbs formed
a link between American con-
NY
U.S. NEWS
Mr. Bannon is no longer part of
the National Security Council.
He is still permitted to attend
meetings but wont automati-
cally be invited to each one.
Although Mr. Bannon and
White House officials explained
the move as a natural evolution
of the council under Gen. Mc-
Master, others within the West
Wing said it reflects the shifting
power dynamics still coursing
through the White House.
Two people with knowledge
of internal jockeying said the
bond Mr. Bannon once shared
with Jared Kushner, Mr.
Trumps son-in-law and senior
adviser, has frayed in recent
weeks. Mr. Kushner has increas-
ingly aligned himself with eco-
nomic advisers Gary Cohn and
Dina Powellknown as the
sumers and one of the coun-
trys oldest and largest indus-
trial companies. In 1935, the
first Major League Baseball
night game was played under
GE lights. A GE engineer in-
vented the LED light in 1962.
The companys popular TV
ad campaigns promised to
Bring good things to life, but
the growth and profitability of
the consumer businesses
* * THE WALL STREET JOURNAL.
increase as they get into eco-
nomic policy, but it doesnt rise
to the level of a rivalry or ani-
mosity, this person said.
JIM LO SCALZO/EUROPEAN PRESSPHOTO AGENCY
Republicans and Democrats
had questioned whether Mr.
Bannon would have politicized
the White Houses national-secu-
rity decisions. Mr. Bannon has
attended one meeting of the
principals committee, the senior
administration official said.
Todays reorganization of
the NSC is a welcome, if belated,
first stepbut its just a first
step, said Ned Price, a council
Steve Bannon, above, is President Donald Trumps chief strategist. spokesman during the Obama
administration. The removal of
Goldman Sachs wingwhose A Bannon loyalist said there Steve Bannon is as overdue as
more moderate, globalist views have been disagreements, but the addition of leading military
have come into conflict with the played down the notion of a and intelligence advisers.
economic nationalism espoused power struggle. I think these Michael C. Bender
by Mr. Bannon, one person said. arguments are going to probably contributed to this article.
ferred in the deal.
GE sold its plastics divi-
sion for $11.6 billion in 2007.
In 2013, it handed over its
The company doubled down
last year with an agreement to
combine its oil and gas busi-
ness with Baker Hughes into a
remaining 49% stake in its separate public company con-
NBCUniversal joint venture trolled by GE. That deal,
for $16.7 billion to Comcast pitched by the company as an
Corp. opportunistic bet on a recov-
Several headwinds have hit ery in the energy sector, is ex-
GE hard in recent years, in- pected to close midyear.
cluding the global financial More recently, GE came un-
crisis that highlighted the vul- der pressure from activist inves-
nerability of the companys tor Trian Fund Management LP
lending business. Since loaning to boost its share price and per-
money to consumers in its formance. Two weeks ago, GE
early days to help them buy said it would double its planned
appliances, GE Capital had annual cost cuts in its industrial
ELISE AMENDOLA/ASSOCIATED PRESS
swelled under former CEO operations to $2 billion over
Jack Welch and continued to two years after discussions with
grow with Mr. Immelt to be- Trian, which took a $2.5 billion
come what was effectively the stake in the company in 2015.
countrys seventh-largest bank. GE isnt the only lightbulb
GE Capitals assets had bal- company looking to get out of
looned to $661 billion when the business, and many of the
credit markets seized up in late potential buyers have been
2008, stopping issuance of the Chinese. Royal Philips NV
commercial paper that was the signed a $2.8 billion deal to
lifeblood of the lending unit. GE sell most of its lighting com-
waned. turned to the government for a ponents and automotive-light-
Last year, GE sold its appli- guarantee of its short-term bor- ing unit to a Chinese investor,
ances business to Chinas rowing, leading to years of reg- but last year U.S. regulators
Haier Group for $5.4 billion. ulatory oversight. blocked the deal. The company
GE gave the Chinese buyer the It also faced struggling oil eventually decided on a stock-
right to continue to use its prices that came after it spent market listing instead.
brand on stoves, fridges and around $14 billion over several Last year, Germanys Osram
other appliances for several years buying oil-and-gas ser- Licht AG agreed to sell its
decades as part of the deal. vice companies. Many of those lightbulb and LED-lamp busi-
Thousands of workers and a deals were struck when oil ness to Chinas MLS Co. and
sprawling factory complex in prices were closer to $100 a two co-investors for around
Lexington, Ky., were trans- barrel, not $50. $440 million.
 

       
               
   
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US HOUSE OF President, AND ASCENSION HOLDINGS ALLIANCE (WBA)
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Chief Executive Officer INTERNATIONAL Michael Tarnoff, MD
Program Manager, Global
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Paul Grundy, MD Health and Wellness, INTEL
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Zubin Damania, MD Ceci Connolly Craig Samitt, MD
Healthcare Transformation, Vice President, Integrated
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Industry, IBM MEDTRONIC
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Bob Sheehy General Manager,
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GE APPLIANCES Co-Founder, Direct-to-Consumer
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& MEDICAID SERVICES
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Thursday, April 6, 2017 | A7

WORLD NEWS
Complex Relationship
U.S. demand for Chinese consumer and capital goods overwhelms
exports to China, despite a U.S. edge in agriculture
Trade balance between the U.S. and China, by sector
Height of bar reects total trade value
U.S. imports from China, 2016 U.S. exports to China, 2016
Goods Services

Trade Balance
97% 3% Consumer goods

79% 21% Capital goods

57% 43% Industrial goods

12% 88% Travel services

36% 64% Other services

JOE SKIPPER/REUTERS
62% 38% Autos and parts
23% 77% Foods, feed, drinks
87% 13% Other goods
Note: Capital goods excludes autos and consumer goods excludes food and autos
Source: U.S. Commerce Department THE WALL STREET JOURNAL.
Xi Jinping will stay at the Eau Palm Beach Resort and Spa, above, while he is in the U.S. for his meeting with Donald Trump.

Trade Casts Shadow on Trump-Xi Summit

Grand deal is unlikely
as contentious issue
threatens to dominate
presidents meeting
BY WILLIAM MAULDIN
As President Donald Trump
and Chinas President Xi Jin-
ping meet this week for what
White House officials are call-
ing an introductory summit,
there is one issue where the
U.S. leaders position will need
no introduction: trade.
Mr. Trump won the White
House in part with an angry
denunciation of other coun-
tries economic cheating, us-
ing China as Exhibit A. Last
week, he predicted a very dif-
KARAN DEEP SINGH/THE WALL STREET JOURNAL
ficult meeting with Mr. Xi,
citing massive trade deficits
and job losses.
Even with North Korea and
other Asian security concerns
front and center, disagree-
ments over trade between the
worlds two largest economies
may well be the topic that
brings the most tension to the
gathering at Mr. Trumps Mar-
a-Lago club in Florida on
Thursday and Friday. White
House officials arent raising
expectations for any kind of
grand deal.
At the end of the meeting
its essentially going to be a
stalemateagree to disagree
on a lot of things, said Scott
Kennedy, a China scholar at
the Center for Strategic and
International Studies, a think
tank.
The visit will set the tone
for a complex relationship, one
Mr. Trump aims to redefine by
combating what he and his
trade advisers see as the
dumping of products in the
U.S. at below fair value and
Beijings broad policies of sub-
sidizing industries from met-
als production to aviation at
the expense of American com-
petitors.
Some business leaders said
they would like Mr. Trump to
convey his concerns about
Chinas business climatein-
cluding limits on investment
and fights over technology and
intellectual propertyso that
the countries can work to-
gether over the long term on
resolving the issues rather
than merely blocking each
others exports.
While we dont yet know
the strategy of the Trump ad-
ministration, we do agree with
its desire for significant
changes to Chinese policies
that will result in a more-mar-
ket-based and level playing
field for American companies,
said Jeremie Waterman, the
China director at the U.S.
Chamber of Commerce, the
biggest U.S. business lobby.
A senior White House offi-
cial told reporters on Tuesday
that Mr. Trump intends to
work in a constructive manner
to reduce trade and invest-
ment barriers in China. The
topics havent been decided on
in advance, so the two leaders
are set to bring up whatever is
on their minds, with the aim
of starting a framework for
addressing disagreements
rather than setting policy on
tariffs or other areas, the offi-
cial said.
Progress with China has
slowed recently, and the
Trump administration wants
to make the relationship more
fair, balanced and based on
the principle of reciprocity,
the official said.
Adding to the uncertainty is
the fact that the meeting is
happening quite early in Mr.
Trumps term. His pick for U.S.
trade representative, Robert
Lighthizer, hasnt been con-
firmed by the Senate, and the
Trump team hasnt brought
key officials on board to de-
velop a detailed strategy for
challenging Chinas trade prac-
tices.
Moreover, members of his
trade team hold disparate
views on the issue. Some are
closer to the traditional free-
trade approach while others
are pushing a harder line
against Beijing to lower the
trade deficit in goods with
China, which stood at $347
billion in 2016.
Some diplomats and ex-
perts on Beijing said Mr. Xi
may seek to further calm the
waters by offering to limit cer-
tain Chinese exports, announc-
ing deals for Beijings state-
run companies to buy big-
ticket American exports, or
arranging to make expansive
Chinese investments in the
U.S.

An Indian army porter carries supplies for troops stationed along the countrys disputed border with China.

India Moves Mountains

To Build a Road to China
BY NIHARIKA MANDHANA
TAME CHUNG CHUNG, In-
diaOn the near-vertical slopes
of the eastern Himalayas, work-
ers are blasting and cutting
treacherous rock faces to build
a top-priority military asset: a
34-mile road to the countrys
disputed border with China.
Far away in the capital New
Delhia six-day journey by
foot, road, rail and airPrime
Minister Narendra Modis of-
fice is monitoring their prog-
ress as he doubles down on a
billion-dollar infrastructure
plan in this contested region
to strengthen Indias hand
against its powerful neighbor.
India is accelerating work
on strategic roads to be able
to move troops and supplies to
the border faster and deploy
sophisticated weapons if
armed conflict breaks out.
China already has extensive
infrastructure on its side.
Its not business as usual,
a senior official overseeing the
project said. We have shifted
gear.
Beijing claims 35,000
square miles of territory here,
almost the entire Indian state
of Arunachal Pradesh, and
calls it South Tibet. The ar-
rival this week of the Dalai
Lama, Tibetan Buddhisms
spiritual leaderwho China
calls a separatisthas stirred
the rivalry.
The precise location of much
of the 2,200-mile India-China
boundary, a fourth of which
lies in this eastern Indian re-
gion, is a subject of dispute.
To assert its sovereignty
and develop Arunachal
Pradesh, the Modi administra-
tion awarded $900 million in
35,000
The square miles of territory Beijing
claims in this contested region
road contracts in 2016-17, a
fivefold jump from the two pre-
ceding years. A new govern-
ment company is acquiring
land and hiring private builders
to complete 400 miles by 2020.
On top of New Delhis con-
struction list is the 34-mile
stretch to Taksing, a strategic
border village at 8,000 feet
above sea level. Helicopter
flights into Taksing are waylaid
once in every five trips by un-
predictable weather, a key rea-
son military planners want a
road.
Fragmented rock and six-
month monsoons make con-
struction here hazardous. After
blasting a craggy mountainside,
worker Taji Nacho watched
with trepidation for hours as
jagged overhangs threatened to
break off and fall. Some days,
his team progresses just 4 feet.
The mountains here are
deceptive, one layer after an-
other, said Mr. Nacho, 20,
who was recently injured by a
shard. You never know what
will kill you.
In November, officials
brought 60 trained laborers
from a different state. Two Set it free at Drexel University. Our unique
months later, the men fled af- academic design and cooperative education
ter tribal residents, unhappy
about losing jobs, beat and ha- program turn students into professionals
rassed them. with real experience at the worlds leading
These are some of the rea-
sons India long left this region corporate, research and cultural institutions.
untouched. Another was fear Ordinary students take tests. At Drexel, you
that installing roads would help
the Chinese descend into Indian will test the world.
territory.
India changed tack gradually drexel.edu/AmbitionCantWait
since the 2000s as China went
on a border-building spree. A
senior official, pointing on a dig-
ital map to Chinese roads and
townships, said, Look, what
planning, what execution. We
have a long way to catch up.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Thursday, April 6, 2017
Syria Gas Death Toll Climbs to at Least 85
Medical experts say
symptoms consistent
with a poison attack;
investigation launched
BY RAJA ABDULRAHIM
AND NOAM RAYDAN
BEI RUTI n te r n at i o n a l
medical organizations said the
symptoms exhibited by victims
of a suspected chemical attack
widely blamed on the Syrian
regime were consistent with
exposure to a nerve agent.
The death toll from Tues-
days airstrike on the opposi-
tion-held town of Khan Sheik-
houn rose to at least 85 people,
all of them civilians, according
to doctors and rescue workers.
The bombs containing a foul-
smelling gas also sickened
nearly 600 people who fainted,
vomited and foamed at the
mouth, they added.
The victims had no external
injuries and died quickly of
suffocation, indicating it is
likely they were exposed to a
chemical attack, according to
the World Health Organization.
A Doctors Without Borders
medical team operating in a
hospital near the Turkish bor-
der examined eight people
with constricted pupils, mus-
cle spasms and involuntary
defecation, symptoms consis-
tent with exposure to a nerve
agent such as sarin gas, ac-
cording to the medical group.
The medical team also vis-
ited other hospitals in north-
west Syria treating victims of
the attack and reported the
smell of bleach, indicating a
possible exposure to chlorine
a chemical used in numerous
regime attacks in the past.
The U.S. and other countries
Images of Attack Prompt a Shift
Americas ambassador to
the United Nations brandished
two grim photosincluding a
close-up of a shirtless dead
child, arms outstretched
when she addressed an emer-
gency session of the Security
Council on Wednesday in the
By Laurence Norman,
Felicia Schwartz
and Nathan Hodge
aftermath of a suspected
chemical attack in Syria.
We cannot close our eyes
to the picture, said the am-
bassador, Nikki Haley. We
cannot close our minds to the
responsibility to act.
The grisly images taken in
the wake of Tuesdays deadly
assault were splashed across
front pages and television
screens, and shared widely on
social media. The images
spurred sharp outrage that fed
calls for a stronger international
response to the Syrian conflict.
By
Syrians dig a grave to bury the bodies of victims of a suspected chemical attack in Khan Sheikhoun, a rebel-held town in northern Syria. All of the dead were civilians.
condemned President Bashar al-
Assads regime for the attack.
The Syrian army denied
Tuesday using any chemical or
toxic substances in the town,
according to state media, and
blamed terrorist groups and
those behind them. The Syr-
ian government routinely re-
fers to most opponents of the
regime as terrorists.
The U.S. and others blamed
the attack, which killed at
least 85 people and left hun-
dreds of others ill, on the gov-
ernment of Syrian President
Bashar al-Assad.
President Donald Trump said
the attack, and the images of
women, small children, and
even beautiful little babies had
changed his view of the Syrian
conflict and Mr. Assad. That
attack on children yesterday
had a big impact on me, Mr.
Trump said. Ive been watching
it, and seeing it, and it doesnt
get any worse than that.
In Washington, Sen. Marco
Rubio (R., Fla.) and Sen. Ben
Cardin (D., Md.) stood in front
of poster-size photos of vic-
tims of the attack and urged
the Trump administration to
take action. Statements from
the administration are not
enough, Mr. Rubio said.
There needs to be a level
of outrage, this needs to be-
come a priority, he said.
WORLD NEWS
In Russia, a crucial ally of Mr.
Assad, the military said Wednes-
day that Syrian aircraft had
struck a terrorist ammunition
depot holding chemical weap-
ons near Khan Sheikhoun. It
said terrorists were producing
chemical munitions at the site.
The Assad regime has been
accused of using sarin in past
attacks as well. Doctors and res-
Otherwise we have lost our
compass as a people and as a
nation and more importantly
for those who care deeply
about our national security.
Diplomats gathered in Brus-
sels for a conference this week
aimed at raising funds for Syr-
ian refugees expressed outrage.
European Union foreign-policy
chief Federica Mogherini said
the images from Syria remind
us all that here we have a re-
sponsibility to unite to make
peace. What weve seen yes-
terday has horrified all of us,
she said. I can say this as a
politician, but first of all as a
mother.
But some diplomats said
they were skeptical the latest
violenceand the images of its
tollwould be a turning point
in a conflict that has killed
more than 400,000. The inter-
national divisions that have
stymied a resolution played
out in how the apparent chem-
ical attack was covered by the
ASSAD
Continued from Page One
with. Before a Syrian chemical
attack in 2013, Mr. Obama said
the use of chemical weapons
would be a red line, but cut a
deal to remove Syrias chemical
weapons stockpile rather than
launching a military strike.
On Wednesday, Mr. Trump
said the attack crossed many,
many lines, beyond a red line.
It is now my responsibility,
said Mr. Trump, who during his
campaign faulted his predeces-
sors handling of the war, includ-
ing a decision not to launch air-
strikes after the 2013 attack
though in tweets at the time he
argued against strikes.
The U.S. ambassador to the
United Nations, Nikki Haley, also
pointed Wednesday to a sharp
U.S. response, saying at an
emergency meeting of the U.N.
Security Council that if the in-
ternational body fails to re-
spond, the U.S. would be com-
pelled to take our own actions.
Vice President Mike Pence
echoed her statement in a Fox
News interview, saying: We are
hopeful that there may well be
action in the United Nations Se-
curity Council but let me be clear,
all options are on the table.
A military response would
bring its own complications,
given the web of forces fighting
in Syria and the involvement of
both the Russian and Turkish
militaries in the conflict, as well
as the U.S.-led campaign to re-
capture Islamic States de facto
capital in Syria, Raqqa.
Pentagon officials said
cue workers in and near Khan
Sheikhoun described symptoms
similar to those suffered by the
victims of a 2013 sarin attack in
the Damascus suburb of Eastern
Ghouta, in which 1,429 people
died, according to a U.S. gov-
ernment assessment based on
local medical reports.
Following the 2013 attack,
the Assad government officially
media of different nations.
Russias state-dominated
broadcasters gave little airtime
to the images of civilian vic-
tims of the chemical attack.
Russian officials have put for-
ward two narratives in re-
sponse to the photos and vid-
eos of the bodies offered by
rescue workers: either casting
doubt on their credibility, or
suggesting that the victims had
been affected by a Syrian gov-
ernment strike against a rebel
chemical-weapons facility.
Maria Zakharova, spokes-
woman for the Russian For-
eign Affairs Ministry, attacked
the White Helmets, a civil-de-
fense organization that oper-
ates in parts of rebel-con-
trolled Syria. All falsified
reports on this issue come
only from the notorious White
Helmets and the odious Syr-
ian Observatory for Human
Rights, based in London, she
said in a briefing.
Many news agencies in Iran,
Wednesday that they have the
ability to quickly strike the
Assad regime if asked by the
president. We can strike the
Syrian regime if we want to, but
thats not the question, said
one senior U.S. military official.
The question is what happens
after we strike the Syrians?
The U.S. military has hun-
dreds of forces inside Syria,
where they are setting up new
bases and working with Syrian
rebels fighting Islamic State. A
U.S. strike against the Assad re-
gime could trigger a military
strike on American forces oper-
ating in northern Syria.
Youve got to war game out:
We do something militarily and
My attitude toward
Syria and Assad has
changed very much,
Mr. Trump said.
strike something of Assads,
what does he then do? the mili-
tary official said. Maybe Ill lob
a few missiles your way, kill a
few Americans, then what hap-
pens? We obviously wont stand
for that.
Russia is providing Mr. Assad
with a sophisticated air defense
system and Russian jets that
would make it difficult for
American pilots to enter Syrian
airspace to strike the regime.
But the U.S. could fire cruise
missiles from outside Syria.
Mr. Tillerson will travel to
Moscow next week to meet Rus-
sias Foreign Minister Sergei
* **** THE WALL STREET JOURNAL.
joined the Chemical Weapons
Convention and agreed to relin-
quish its chemical arsenal as
part of a deal to avert the threat
of U.S. military action.
Since then, however, the gov-
ernment has repeatedly been ac-
cused of using chemical weap-
ons, with a U.N.-led investigation
blaming it for at least three
chlorine gas attacks in 2014 and
A man was treated on Tuesday at a hospital after the attack.
an Assad backer where state-
owned or semiofficial outlets
dominate, avoided reporting
on the chemical attack.
Still, graphic pictures of trag-
edies have sparked public out-
rage and helped drive policy
change in the recent past. In
September 2015, the picture of a
Lavrov, and he is expected to
meet with Russian President
Vladimir Putin.
Mr. Trump said on Wednes-
day he wouldnt reveal what his
response to the chemical attack
might be. Im not saying Im
going to be doing anything, one
way or another, but Im certainly
not going to be telling you, he
said.
Many diplomats at the U.N.
have urged the U.S. to shape a
policy toward the Syria conflict
that goes beyond just fighting
Islamic State. Frankly we need
an America that is seriously
committed to a solution in Syria
and that puts all its weight be-
hind it, said Franois Delattre,
Frances U.N. ambassador.
European diplomats said
Wednesday that taking unilat-
eral action would be preferable
to taking no action, which would
imply it is possible to get away
with a chemical attack.
The Syrian army denied
Tuesday using any chemical or
toxic substances in the town, ac-
cording to state media, and
blamed terrorist groups and
those behind them. The Syrian
government routinely refers to
most opponents as terrorists.
A draft resolution condemn-
ing the use of chemical weapons
and calling for Syrias govern-
ment to fully cooperate with the
U.N.s investigations, penned by
the United Kingdom and en-
dorsed by the U.S., was circu-
lated among council members.
A draft reviewed by The Wall
Street Journal calls for Syrias
regime to provide a U.N. team
investigating chemical attacks in
Syria with information on flight
plans, logs, names of command-
FADI AL-HALABI/AGENCE FRANCE-PRESSE/GETTY IMAGES
2015. The Organization for the
Prohibition of Chemical Weap-
ons, which was charged in 2013
with removing and destroying
the Syrian regimes chemical-
weapons stockpile, said it had
launched an investigation into
Tuesdays attack.
Nathan Hodge, Margaret
Coker and Maria Abi-Habib
contributed to this article.
MOHAMED AL-BAKOUR/AGENCE FRANCE-PRESSE/GETTY IMAGES
lifeless boy facedown on a Turk-
ish beach helped drive the EU
response to the migration crisis.
Days later Germanys govern-
ment signaled it was willing to
give asylum to any Syrian refu-
gees who wished to come.
Farnaz Fassihi
contributed to this article.
ers of helicopter squads and ac-
cess to relevant air bases as well
as generals or offices associated
with the attacks.
Diplomats said the resolution
was meant to be written in lan-
guage that would be acceptable
to all council members, including
Russia and China. Russia and
China have vetoed any council
action that would hold Mr. Assad
and the regime accountable for
at least three incidents where
U.N. investigators reported the
government used chemical
weapons against civilians.
Russia said a new U.N. resolu-
tion wouldnt be necessary and
that a resolution shouldnt point
a finger at the regime, but
should ask for an objective and
comprehensive investigation on
the ground. Russia offered a dif-
ferent resolution, which was un-
acceptable to the U.S. and its al-
lies, diplomats said.
Interest in these events is
ideologically driven. Its closely
interwoven with the anti-Da-
mascus campaign, said Vladi-
mir Safronkov, Russias deputy
ambassador to the U.N.
However, Russia didnt say it
would veto the resolution and
went into closed-door negotia-
tions with the U.S., U.K., France,
China and other council diplo-
mats. A vote on the resolution
could happen Thursday after-
noon or Friday, diplomats said.
At the U.N., Ms. Haley, speak-
ing after Mr. Safronkov, said Rus-
sia and Iran have demonstrated
no real interest in peace. How
many more children have to die
before Russia cares? she said.
Eli Stokols
and Felicia Schwartz
contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * Thursday, April 6, 2017 | A9

WORLD NEWS WORLD WATCH

GERMANY
Cybersecurity Team
Joins Defense Forces
Defense Minister Ursula von
der Leyen inaugurated a military
department aimed at defending
the country against a growing
number of cyberattacks.
The cyber and information
space has become a separate
domain of security policy, in ad-
dition to land, air, sea and outer
space, she said at a ceremony
on Wednesday.
Germanys armed forces, the
Bundeswehr, faced more than
280,000 cyberattacks in January
and February, she said in a
speech in Bonn. Attacks include
espionage, data theft, destruc-
tion and manipulation.
The new division, dubbed cy-
berspace and information com-
mand, initially has about 260
staff.
Departments tasked with re-
connaissance, communications
and geographic information will
join the new command in July,
expanding its head count to
about 13,500.
REUTERS
searching for a gaseous planet
about four times as big as Earth
traveling on a vast elliptical orbit
taking as long as 20,000 years.
We think Planet Nine, if it
exists, is likely to be found in
the Southern Hemisphere, said
Australian National University
astrophysicist Brad Tucker, who
is helping guide the public hunt
for the hypothetical planet from
the Australian continent.
Theories of an undiscovered
planet gained momentum last
year when two California Insti-
tute of Technology astronomers
suggested the existence of a gi-
ant planetdubbed Planet
Nineorbiting in a far-flung re-
gion of the solar system known
as the Kuiper belt.
Rob Taylor
EUROPEAN UNION
Parliament Toughens
Its Stance on Brexit
The European Parliament got
harder on coming talks about
the U.K.s divorce from the bloc
in an important vote on Brexit.
With the support of 516 of

Friedrich Geiger 699 members, the assembly on

Wednesday added more de-
The Tikrit attack, the aftermath of which was seen Wednesday, illustrates Islamic States ability to strike cities from which it has been driven. AUSTRALIA mands to the main principles

ISIS Hits Iraqi City It Lost

An overnight attack by Is-
lamic State gunmen and sui-
cide bombers disguised as po-
lice officers killed at least 35
building and securing areas
once held by Islamic State.
The gunmen were waved
through a security checkpoint
laid out by the blocs negotiator,
Short List Emerges Michel Barnier, who is likely to
For Planet Nine take them into account during
the talks.
A global hunt for a hidden While the body has no direct
ninth planet involving thousands say in the negotiations, its vote
TURKEY
ment as it continues to win of volunteer stargazers has will be needed to cement the fi-
100 miles
back cities from Islamic State. turned up four possibilities for nal divorce deal and to approve
100 km Recent attacks on such terri- an undiscovered world lurking any transitional agreements and
Mosul toryincluding suicide bomb- beyond Pluto. a deal underpinning the U.K.s fu-
T ig r i s

people and wounded 40 others because they were wearing po- SYRIA ings in Fallujah since last sum- Australian scientists helping ture relationship with the bloc.
in the Iraqi city of Tikrit, offi- lice uniforms, said provincial Tikrit mer, when it was declared lead the search say they are Valentina Pop
R.

cials said Wednesday.
By Tamer El-Ghobashy
in Erbil, Iraq,
and Ghassan Adnan
in Baghdad
The episode underlines the
security challenge faced by
Iraqs government even after it
council member Mounir Hus-
sein. They headed to the citys
crowded Zuhour Street shopping
district at about 10 p.m., killing
four police officers before turn-
ing their weapons on civilians.
At least two Islamic State
gunmen exploded suicide belts
they were wearing, Mr. Hussein
said. Three other militants were
I R A N liberatedhave raised questions
Fallujah Baghdad
from lawmakers about whether
Islamic State is taking advantage
of corruption among security of-
IRAQ
ficials to breach checkpoints.
Mr. Hussein said the attack-
ers in Tikrit identified a weak-
SAUDI ARABIA
ness at some checkpoints: po-
lice officers waving through
THE WALL STREET JOURNAL. anyone wearing a military or

MAST IRHAM/PRESS POOL/REUTERS

reclaims cities like Tikrit from
the militants, who have proven
capable of staging deadly at-
tacks even in territory no lon-
ger under their control.
Tikrit was reclaimed from
the group by the Iraqi military
and allied militias in 2015, and
has since been touted by both
Iraqi and American officials as
a model for repopulating, re-
killed by responding police.
Islamic State claimed re-
sponsibility for the attack.
Its scale indicates the militant
group could still maintain cells
within cities lost to government
forces, and is increasingly falling
back on traditional guerrilla-
style terror tactics as it adapts
to the loss of its power centers.
Iraqi forces have since Octo-
police uniform without prop-
ber been engaged in a fierce bat- erly checking their identity.
tle to expel Islamic State from Iraqi officers do a thorough
Mosul, the extremists remaining job checking civilians and should
urban stronghold in the country. apply the same standards to
Iraqi officials estimate they people in uniform, he added.
have reclaimed some 75% of Once they see someone in
the city. Holding reclaimed uniform, they relax and never
ground and preventing secu- check, he said. This is some-
rity breaches have been key thing being used by terrorists WELCOME, VISITOR: Indonesian President Joko Widodo, at left,
concerns for the Iraqi govern- to breach security lines. welcomes Afghan counterpart Ashraf Ghani to Jakarta.

TRUMP hopefully it will empower the

Continued from Page One
change in howand by whom
the administrations foreign pol-
icy is developed.
On Wednesday Mr. Trump
approved changes that removed
adviser Steve Bannon from the
operations of the White House
National Security Council and
restored the roles of traditional
U.S. security officials. The ad-
ministration portrayed the
move as long-planned, but oth-
ers said it was the result of
shifting White House dynamics.
It looks like its snapping
back to the mean of more regu-
lar order in the foreign policy-
making process, said Richard
Fontaine, president of the Cen-
ter for a New American Security
and a former foreign-policy ad-
viser to Sen. John McCain (R.,
Ariz.). The question is going to
be how does all of this connect
pragmatic, expert part of the
administration, Mr. Burns said.
While Mr. Trump hasnt yet
laid out specific policy shifts, the
developments this week in Syria
and North Korea, and the visit of
Mr. Xi to his Florida estate, have
narrowed the window of time in
which Mr. Trump has to act.
The response to North Ko-
rea, to Xi, to Syriatheyre go-
ing to be read as having broader
significance into the kind of for-
eign policy that the administra-
tion wants to conduct going for-
ward, Mr. Fontaine said.
The administrations
most visible point
person on Syria has
been Nikki Haley.
Mr. Trump has yet to develop
United Nations. Ms. Haley said
Wednesday the U.S. would act
on its own if Russia doesnt co-
operate in a response to the
chemical weapons attack.
On China, Mr. Trumps son-
in-law and senior adviser in the
White House, Jared Kushner,
has played a leading role in for-
mulating the administrations
policy. The presidents top diplo-
mat, Mr. Tillerson, also tried to
lay groundwork for this weeks
visit by Mr. Xi.
Susan Thornton, the acting
assistant secretary of state for
East Asian and Pacific affairs,
said the administration wants
China to close its financial pipe-
line to North Korea, because
they are going to have an im-
portant part to play in the inter-
national effort to do something
about North Koreas increas-
ingly provocative moves.
North Korea is a big prob-
lem, Mr. Trump said Wednes-
day. We have somebody that is
not doing the right thing, and

with the president and rest of
the White House?
In recent months, Mr. Trump
roiled U.S. ties with many allies
through Twitter messages and
public comments, eclipsing the
more sober and cautious state-
ments by senior advisers such
as Defense Secretary Jim Mat-
tis, Mr. Tillerson and others.
But the situations in North
Korea and Syria require effec-
tive, reliable cooperation from
key allies, such as Japan and
South Korea, or European and
Arab nations, said R. Nicholas
Burns, a former career diplomat
and undersecretary of state dur-
ing the administration of Presi-
dent George W. Bush.
This is a brutal experience;
DENNIS BRACK/BLACK STAR/ZUMA PRESS
a broad policy on Syria, which
overlaps with his strategy
against Islamic State, his goals
for relations with Russia and his
efforts to engage the Persian
Gulf states, which have long
wanted the U.S. to force out Syr-
ian President Bashar al-Assad.
Mr. Trump has filled the top
slots in his foreign-policy and
national-security team, but
many other positions remain
empty. Mr. Trumps choice for
ambassador to Israel, David
Friedman, was recently sworn
in, but his pick for ambassador
to China hasnt been confirmed.
The administrations most
visible point person on Syria,
and Russia, has been Nikki Ha-
ley, the U.S. ambassador to the
SIMPLE.
thats going to be my responsi-
bility.
Mr. Trump spoke by phone
with Japans Prime Minister
Shinzo Abe on Wednesday and
said the U.S. would continue to
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to the conflict. On Wednesday
Mr. Trump said the chemical at-
tack had changed his view.
Its extraordinary to me that
they could pivot so quickly, said
Aaron David Miller, an expert at
the Wilson Center and former
adviser to Republican and Dem-
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Weve gone from risk aversion
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Thursday, April 6, 2017
CHINA DAILY
ALL YOU NEED TO KNOW
This supplement was paid for and prepared solely
by China Daily, an official publication of the Peoples
Republic of China.The Wall Street Journal news
organization and advertising department were
not involved in the creation of this content.
COMMENT
Global Challenges Can
Only Be Dealt With
in Spirit of Cooperation
By HE YAFEI
The two months of Donald
Trumps presidency in the
United States have produced
one surprise after another in
its foreign policy, including
its China policy. However,
worries about a possible
deterioration in China-
U.S. relations, especially
economic ties, have been
allayed, for now, because of
some positive developments
of late.
President Xi Jinping met
the visiting U.S. Secretary of
State Rex Tillerson on March
18, and said collaboration
is the only correct choice
for both countries.
Tillerson said Trump valued
communication with Xi and
looked forward to meeting
Xi and the opportunity for
a visit to China.The U.S. is
ready to develop relations
with China based on the
principle of no conict,
no confrontation, mutual
respect and win-win
cooperation,Tillerson said.
As Xi said in his speech
at the World Economic
Forum in Davos in January,
this is the best of times and
the worst of times, which
also applies to China-U.S.
relations as they face great
opportunities and serious
challenges simultaneously.
Admittedly,Trumps China
policy is still evolving, but
some basic elements have
already emerged. First, there
is basic appreciation that the
U.S. and China need to work
with one another rather than
confront one another, many
of their interests converging,
especially in maintaining
regional and global peace,
and promoting global
What strategic
consensus China and
the U.S. can reach
on such core issues,
will to a large extent
determine whether
they can avoid falling
into the Thucydides
trap.
economic growth.
Second, economic
cooperation and trade
frictions are likely to increase
as the Trump administration
focuses its attention on
deriving greater economic
benets from bilateral trade
and investment.Trumps
ambitious plan to improve
the U.S. infrastructure needs
a great deal of capital and
other input, creating many
opportunities for economic
cooperation between China
and the U.S., not least
because of Chinas rich
experience in infrastructure
construction.
Third, the U.S. changing
attitude on global
governance has created
uncertainties over how to
meet global challenges,
because Washington still
plays the biggest role in
managing global affairs.
But some adjustments
will have to be made in
global governance to
accommodate the changing
tides of globalization,
especially rising populism,
the widening gap between
rich and poor, and the
changed positions of the
Trump administration on
climate change and existing
and emerging regional
and trans-regional free
trade agreements and
arrangements.
In this connection, the Belt
and Road Initiative (the Silk
Road Economic Belt and 21st
Century Maritime Silk Road)
as an innovative idea of
common development offers
great opportunities as well
as challenges to the U.S.
Fourth, while the initial
ideological confrontation
between China and the U.S.
may have subsided for now,
it could resurface.The fact is
the geopolitical situation in
Asia is shaky as the Trump
administration continues the
rebalance to Asiastrategy
by consolidating its military
presence in the Asia-Pacic.
Regional security issues will
be further compounded if
the U.S. deploys the Terminal
High Altitude Air Defense
anti-missile system in the
Republic of Korea.
What strategic consensus
China and the U.S. can reach
on such core issues will to
a large extent determine
whether they can avoid
falling into the Thucydides
trap. Increasing trade and
investment between China
and the U.S. and the resulting
economic interdependence
have been the bedrock
of bilateral relations for
decades.
Perhaps the U.S. can
reduce its trade decit by
increasing its exports to
China, by, among other
things, supplying surplus
shale gas and oil and lifting
the ban on some of the
dual-use goods. Some
adjustments apart, the
overall direction of economic
collaboration and free trade
and investment between
the two sides must be kept
intact.
The U.S. and China bear
special responsibilities, as
articulated in the United
Nations Charter, to maintain
world peace and security.
And in todays new era
of globalization, those
responsibilities also include
meeting economic and
social challenges, for which
a cooperative relationship
is both necessary and
indispensable.
The author is a senior
advisor to the Pangoal
Institution and a former vice-
minister of the Ministry of
Foreign Affairs.The article is
an excerpt from his speech
at a recent seminar that the
Pangoal Institution hosted.
China Watch materials are distributed by China Daily Distribution Corp., on behalf of China Daily Beijing, China.
Additional information is on le with the Department of Justice, Washington, D.C.
PAID ADVERTISEMENT
President Xi Jinping and other members of the Standing Committee of the Political Bureau of the CPC Central Committee at the opening session
of the National Peoples Congress in Beijing on March 5. Xi is expected to meet President Donald Trump at Mar-a-Lago, Florida from April 6 to 7.
MA ZHANCHENG / XINHUA
The Voice of Calmness
in A Sea of Troubles
China is gaining ever growing respect for its contribution of
positive ideas, experts say, Zhang Yunbi reports
C
hina is coming up with
ideas in economics and
international diplomacy
that are catching on in
the world, but the country
needs to sharpen its
publicity skills and public diplomacy,
observers say.
As it does this, the sustained growth
in its economic and political heft would
be a powerful driver of its soft power,
they say.
One of the Chinese ideas that has
had a good reception in many major
international organizations is the
Community of Shared Destiny for
Mankind, first proposed in a report
by the Communist Party of China in
November 2012 and to which President
Xi Jinping has referred dozens of times
since.
In February the Chinese concept was
incorporated into a United Nations
resolution for the first time when
the 55th U.N. Commission for Social
Development approved a motion.
It calls for more support for Africas
economic and social development
by embracing the spirit of building a
human community with shared destiny.
On March 1, at the 34th Session of the
U.N. Human Rights Council, Ma Zhaoxu,
Chinas permanent representative to
the U.N. in Geneva, delivered a joint
statement on behalf of 140 countries.
The statement is titled Promote
and protect human rights and build a
community of shared future for human
beings.
On March 17 U.N. Security Council
Resolution 2344 was adopted, focusing
on Afghanistan and honoring the China-
led Silk Road Economic Belt and the
21st-Century Maritime Silk Road.
Since Xi proposed them in 2013 they
Old Aircraft A Tribute to Warriors of the Skies
By ZHANG LI
A restored Douglas C-47 aircraft
that ew missions during World War II
has landed in Guilin, Guangxi Zhuang
autonomous region, to assume its role
as a permanent tribute to the Flying
Tigers.
The Flying Tigers is the nickname of
the American Volunteer Group whose
members risked death to support China
during the War of Resistance Against
Japanese Aggression (1937-45).
Nicknamed the Buzz-Buggy, the
aircraft was bought from Australia
last year by the Flying Tiger Historical
Organization and has been donated to
the Guilin Flying Tiger Heritage Park for
permanent display.
The heritage park was built on the site
of Yangtang Aireld, the command base
of the Flying Tigers led by United States
General Claire Lee Chennault.
To honor the squadron,
the 72-year-old aircraft
started its modern
journey from Australia
in August and arrived in
Guilin on Nov. 19.
Jointly operated by China
and the U.S. to transport
military supplies from India to
China between 1942 and 1945,
the so-called hump was a deadly
route in which severe weather,
Japanese ghters and high mountain
peaks claimed more than 600 aircraft
and 1,600 airmen.
China has been a quick learner
in adapting itself to the reality
of the international community,
and it should further nurture and
expand its reserves of diplomacy
and publicity to make its voice
better heard.
CUI LIRU
SENIOR RESEARCHER AND FORMER PRESIDENT OF
THE CHINA INSTITUTES OF CONTEMPORARY INTER-
NATIONAL RESEARCH
have become to be known jointly as the
Belt and Road Initiative.
The resolution said the Security
Council welcomes efforts to strengthen
the process of regional economic
cooperation and calls for further such
efforts, including through regional
development initiatives such as the Belt
and Road Initiative.
Su Ge, president of the China
Institute of International Studies
in Beijing, said that as China seeks
peaceful development, its influence
upon international and regional affairs
has risen, a fact that the international
community has attached importance to
and has planned to make use of.
China should remain cool-headed,
observe the world with an objective
view in order to promote the evolution
of global governance as it continues
to ensure core national interests are
looked after and promoted, Su said.
Cui Liru, a senior researcher and
Larry Jobe, president of the historical
organization, said: When people see
the old, unglamorous airplane, I hope
they realize the beauty and grace she
bestowed on the Chinese people.
Nell Calloway, the grand-daughter of
Chennault, said at no time in history
has this story been more important.
While old enemies have been defeated,
challenges still remain, she said, adding
that China and the U.S. must be partners
again.
We were victorious in war; now let us
all work to be victorious in peace.
Charles Bennett, the U.S. consul
general in Guangzhou, said at the
handover ceremony that the historic
aircraft would help preserve the memory
of cooperation for future generations.
Today the U.S. and China face
great challenges on many
fronts
THE WALL STREET JOURNAL.
former president of the China Institutes
o f C o n t e m p o ra r y I n t e r n a t i o n a l
Resea rc h , sa i d t h a t b e h i n d t h e
increasing popularity of Chinas
proposals and ideas is its taking a new
role on the global stage.
China has been a quick learner
in adapting itself to the reality of the
international community, and it should
further nurture and expand its reserves
of diplomacy and publicity to make its
voice better heard, Cui said.
China should also seek a delicate
balance between taking greater duty
on the global stage and developing its
own strength and capacity as a major
developing country, Cui said.
Liu Jiangyong, vice-dean of the
Institute of Modern International
Relations at Tsinghua University in
Beijing, said the security context of
Chinas raising the community concept
is that security issues have clouded the
globe over the past two decades.
With the outbreak of major regional
conflicts from time to time, the U.N.
faces challenges, Liu said.
The global community should make
the U.N. Security Council undertaking
a leading role in promoting sustainable
security and development.
Wu Enyuan, a senior researcher of
Russian studies with the Chinese
Academy of Social Sciences, said
few countries have publicly shown
opposition to the concepts China has
put forward in recent years.
The reason is that they welcome
China treating them in a way totally
unlike their past colonizers, Wu said.
The Chinese conceptshelp tackle the
law of the jungle and wealth disparity
among countries, making such ideas
sound fresh for many countries, Wu
said.
from nuclear proliferation to violent
extremism; from pandemic diseases to
environmental protection.These are just a
few of the many issues where our futures
are intertwined, where, working together,
we can accomplish great things.
James Whitehead, chairman of the
Flying Tiger Historical Organization, said
the group will continue to donate more
relics to the heritage park and restore
the command center, a cave where
Chennault planned missions.
A guest sits in a restored Douglas C-47 aircraft
in Guilin, Guangxi Zhuang autonomous
region, on March 25. The airplane honors the
American Volunteer Group, which operated
between India and China during World War II.
LU BOAN / XINHUA
THE WALL STREET JOURNAL.
COMMENT
Conict of
Giants Need
Not Happen
By MEI XINYU
The United States registered
20 anti-dumping and anti-subsidy
investigation cases against China
involving $3.7 billion last year, the
Chinese Ministry of Commerce says.
Given the rising pressure of trade
disputes on China, the election of
Donald Trump as U.S. president has
raised concerns that the new U.S.
administration may seek exorbitant
and unreasonable economic
concessions from China and even
stage a trade war with it. Some even
cite the trade disputes to say Chinas
economic prospects look gloomier.
Such a view is simplistic. Economic
and trade ties between China and
the U.S. are by no means a zero-sum
game. Instead, they are mutually
benecial. Since the U.S. huge and
still rising twin decits (scal and
trade) cannot continue forever,
Washington needs to adopt tangible
reforms to correct the situation. It is
thus understandable that many U.S.
citizens have higher expectations
from the Trump administration.
But only if the U.S. has a stable and
sustainable macro economy can it
ensure a healthy and prosperous
trade atmosphere for itself as well as
China.
As it is different from Chinas
less-powerful trade partners, the
U.S. macroeconomic soundness
is very important. So if the Trump
administration adopts economic
policies that can lower the U.S.
national savings decit, it will also
be a boon to China because it
will open up a more sustainable
external market and an improved
international economic system for
Chinese industries.
In such circumstances, the
best solution for China will be to
strike a series of economic and
trade deals under reasonable
terms.And an adjustment to
the synchronized development
model by China and the U.S. could
result in a simultaneous buildup
of their sustainable development
capabilities, leading to a more stable
world economy.
China should seek to strike
economic and trade deals with the
U.S. that have strong potential to
yield mutually protable results. But
such efforts should not be based on
wishful thinking.Whether or not a
deal can be mutually benecial also
depends, to a large extent, on the
U.S. actions.
Despite Trumps sharp rhetoric he
has said he is willing to have mutually
benecial cooperation with China
and Russia.The congratulatory
message he sent to China before
the Lantern Festival in February and
a cordial telephone conversation
he had with Chinese President Xi
Jinping also suggest that China-
U.S. relations are emerging out of a
gloomy phase.
But many uncertainties that could
prevent China-U.S. economic and
trade ties from advancing smoothly
and limiting bilateral trade disputes
within a reasonable range persist.
Some observers still believe
China-U.S. trade frictions will deal a
severe blow to Chinas economy, and
that the risk of a large-scale trade
war will prompt Beijing to accept a
series of unreasonable demands
from Washington. Such an argument
is based on the wrong notion that
China is still a very vulnerable
economy, when the fact is that even
a large-scale trade war with the
U.S. may not undermine Chinas
economic status in the global
market.
China is the worlds second-largest
economy, and the worlds leading
manufacturer and exporter. China
has also built a complete industrial
system that covers almost all
categories.And if it manages to keep
its economic growth above that of
the other major economies, Chinas
status and share in the international
economic system will keep rising.
Besides, external economic chaos
is unlikely to spell doom for a country
such as China that has a strong
risk-resisting capability so long as
it can manage to avoid domestic
turbulence.The continuous rise
in its economic strength after the
Asian nancial crisis and the global
nancial crisis is enough proof
of Chinas economic resilience in
the face of external crises. So any
possible trade war forced on China
is unlikely to weaken its economic
situation and its development
course.
The author is a researcher at the
International Trade and Economic
Cooperation Institute of the Ministry
of Commerce.
Trump Critique Is A Stretch
It is wrong to blame China for employment woes, economist says, Amy He reports
D
id Chinas entry into
t h e Wo r l d Tra d e
Organization cause
60,000 factories in
the United States to
close?
Weve lost more than one-fourth
of our manufacturing jobs since
NAFTA(theNorthAmericaFreeTrade
Agreement)wasapproved,andweve
lost 60,000 factories since China
joined the World Trade Organization
in2001, U.S.PresidentDonaldTrump
said in his first speech to a joint
session of Congress on Feb. 28.
That 60,000 number is accurate,
but blaming China for the closures
is,as one economist said,a stretch.
While 60,000 factories were
closed between 2002 and 2014,
according to the U.S. Census
Bureau, Chinas entry into the
WTO in 2001 is not the reason, said
Monica de Bolle, senior fellow at the
Peterson Institute for International
Economics in Washington.
The number is accurate, but
attributing it to China is a stretch.
Theres nothing in the data that
suggests it has anything to do with
China.
A steep decline in manufacturing
jobs occurred after the Sept. 11
Glass Maker Vows to Create 5,000 Jobs in U.S.
By CAI XIAO and HU MEIDONG
Fuyao Glass Industry Group
Co. Ltd., the worlds largest auto
glass manufacturer, will step up its
overseas investments this year in
the United States, Germany and
Russia, with the total set to reach
$200million,itschairmantoldChina
Daily in an interview.
Asthelargestautoglassproducer,
we shoulder the responsibility of
supplying products for most global
auto manufacturers, said Cao
Dewang, chairman of Fuyao.
Our investment strategy is to
follow our customers and meet
their requirements. We will spend
one-third of our annual investment
budget of 4.2 billion yuan ($608
million) abroad in 2017, and
Germany, the U.S. and Russia are
our destinations.
Cao said Fuyao will invest about
600 million yuan to 700 million
yuan in Heidelberg, Germany, to set
up an auto glass factory to serve
customers such as Daimler AG,
Audi AG, Volkswagen AG, Bentley
Motors Ltd. and Jaguar Land Rover
Automotive Plc.
The company is also selecting a
new site in the southern part of the
U.S. this year to build a new factory,
he said.
In October Fuyao completed its
automotive glass manufacturing
center in Dayton, Ohio. The plant,
involving a total investment of $600
million, is expected to produce
5 million units of glass annually,
Envoy Choice Bodes Well for Trade
By ZHANG YUAN, MAY ZHOU
and CHEN WEIHUA
The Governor of Iowa, Terry
Branstad, says he thinks the U.S.
Midwest will attract more Chinese
investment and hopes his state
can again export beef to China.
Branstad, President Donald
Trumps pick as ambassador
to China, also said he is looking
forward to going to China.
I think in the near future there
are a lot of opportunities (for China
and the United States), and there
is more and more interest in the
economy, Branstad said in his
office in Des Moines in a meeting
with a Chinese investment
delegation.
Branstad, 70, is serving his sixth
four-year term as Iowa governor,
making him the longest-serving
governor in U.S. history.
President Xi Jinping has called
Branstad an old friend. The two
rst met in Iowa in 1985 when Xi
visited the U.S. for the rst time.
Branstad was in his rst term as
governor, and he hosted Xi when
he returned to Iowa as Chinas
vice-president in 2012.
Branstad has led several trade
missions to China, a key trade
partner for Iowa, a major producer
of soybeans, corn and pork.
In September Beijing said
it would lift a ban on U.S. beef
imports in effect since 2003 after
mad cow disease was found,
PAID ADVERTISEMENT
Theres nothing in the
data that suggests it
(closing factories) has
anything to do with
China.
MONICA DE BOLLE
SENIOR FELLOW AT THE PETERSON
INSTITUTE FOR INTERNATIONAL
ECONOMICS IN WASHINGTON
attacks in 2001, rebounded, and
then dropped dramatically again
after the 2008 nancial crisis. From
2009 to 2016, about 1 million jobs
in manufacturing were created.
Trumps reference to a 25% loss in
manufacturing jobs is correct, but
there isnt a clear relationship to
NAFTA or Chinas entrance into the
WTO, de Bolle said.
What seems to be happening is
that theres more of a relationship
to crises that hit the U.S. economy,
plus automation that has happened
to manufacturing to a very large
extent, and changes in the labor
An employee at the Fuyao Glass America production plant in Moraine, Ohio. YIN BOGU / XINHUA
accounting for a 25% market share
in the U.S. The plant in Dayton will
supply customers including General
Motors Co., Chrysler LLC, Hyundai
Motor Co., Honda Motor Co. and Kia
Motors Co.
We will increase our investment
to $1 billion in the U.S. and create
5,000 jobs, Cao said.
The companys xed investments
both at home and abroad will
I think in the near
future there are a lot
of opportunities (for
China and the United
States), and there is
more and more interest
in the economy.
L. Thornton China Center of the
TERRY BRANSTAD
IOWA GOVERNOR AND NOMINEE FOR
U.S. AMBASSADOR TO CHINA
market structure in the U.S. not
related directly to automation,
such as outsourcing of jobs, which
have nothing to do with China, and
which probably explain also the
destruction of 60,000 rms in the
manufacturing structure.
C h i n a s Fo re i g n M i n i s t r y
spokesman Geng Shuang said on
March 1 that since joining the WTO,
China has engaged in international
cooperation.
Thishasboostednotonlyitsown
foreign trade but also global trade,
making an important contribution
t o w o r l d e c o n o m i c g ro w t h
and winning wide recognition
and praise of the international
community. China-U.S. economic
and trade cooperation is mutually
benecial in nature.
Martin Baily, a trade economist
at the Brookings Institution in
Washington, said that much of the
substantial decline in manufacturing
jobs in the U.S. after 2000does not
mean that trade with NAFTAor trade
with China are responsible.
Productivity increases and
automation contributed to the
decline, as did slow growth in U.S.
demand for manufactured goods,
he said.
increase by 10% to 20% annually,
depending on market conditions.
Although some voices are raised
against the tide of globalization, we
are determined to go abroad based
on our own business development
requirements and customers
needs, Cao said.
The Government Work Report
delivered by Premier Li Keqiang on
March 5 to the annual session of
but negotiations for access
to the market have not been
concluded.
Branstads nomination awaits
conrmation in Congress.Trump
said Branstads decades of
experience of public service and
his longtime relationship with Xi
and other Chinese leaders made
him the ideal choice.
I have known President Xi
Jinping for many years and
consider him an old friend,
Branstad said in accepting
Trumps nomination.
I look forward to building on
our long friendship to cultivate
and strengthen the relationship
between our two countries and
to benet our economy.
A Foreign Ministry spokesman,
Lu Kang, called Branstad an old
friend of the Chinese people,
adding that China welcomes
his greater contribution to
the development of China-U.S.
relations.
Cheng Li, director of the John
Brookings Institution, said in
December that the rapid choice
of Branstad reflects Chinas
importance.Trump wants to lead
China-U.S. relations according to
his own thinking, Li said. Its a
clear sign for Trump to establish
good interaction with Xi, so its
very positive in this regard. He
not only pays attention to China,
but also Xi himself.
Thursday, April 6, 2017 | A11
Our trade with Mexico has only
a small decit and we had a surplus
with Canada in 2016, Baily said.
Manufacturing trade with China
is very unbalanced, but that is not
just China.
A report in January from the
U.S.-China Business Council said
the U.S.-China trade relationship
today supports about 2.6 million
jobs across a range of industries.
U.S. exports to China directly and
indirectly created $165 billion in
GDP in 2015 and supported 1.8
million new jobs, and combined with
Chinese investment into the U.S.the
jobs total is 2.6 million. U.S.-China
trade ties generated 1.2% of U.S.
GDP in 2015,according to the report.
A re p o r t i n J u n e 20 1 5 o n
p ro d u c t i v i t y g ro w t h i n t h e
U.S. from 1998 to 2012 from
the Center for Business and
Economic Research at Ball State
University,Indiana, said that 88%
of job losses in manufacturing
were due to technological changes
such as automation rather than
international trade. Economists
said that industrial output and
productivity have increased
despite fewer workers, according
to the report.
the National Peoples Congress in
Beijing,saidChinawillstepupefforts
to perfect its mechanism to protect
the legitimate rights of Chinese
companiesoverseas projects.
Fuyaos annual revenue totaled
16.6 billion yuan last year, increasing
22.5% year-on-year, and its profit
totaled 3.14 billion yuan, increasing
20.7% year-on-year, according to
thelistedcompanysnancialreport.
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All Rights Reserved
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Thursday, April 6, 2017
Huh, Coach? I Cant Hear You Over the Propaganda
To prepare for a match in Pyongyang, South Koreas womens soccer team practices while bombarded by North Korean cheers
BY EUN-YOUNG JEONG
MOKPO, South Korea
Lets reunify our homeland,
just the Korean people alone!
the crowd boomed in a mar-
tial, distinctly North Korean
accent as it clapped and
cheered in unison.
It was the sort of clamor
one might expect to hear dur-
ing a soccer match at Kim Il
Sung Stadium in Pyongyang.
But this is Mokpo, a port city
on the southern tip of South
Korea, more than 200 miles
from the North Korean border.
In advance of Fridays qual-
ifying match against North
Korea in Pyongyang, Yoon
Deok-yeo, the coach of South
Koreas womens soccer team,
wanted to do something to
fortify his players for the task
ahead. So naturally, he or-
dered a facilities crew to in-
stall four large outdoor speak-
ers on the field.
As his players practiced
against a local boys high
school team, the speakers as-
saulted their eardrums with a
51-minute-long montage of
sounds from matches held in
North Korea, some of which
were available on YouTube. At
roughly 100 decibels, Mr.
Yoons serenade ranked some-
where between a jackhammer
and a jetliner taking off.
The boys team, which had
been warned of the propa-
ganda barrage only the day
before, shouted at each other
in vain as they struggled to
communicate, waving their
arms and pointing. Before
long, their coach gave up try-
ing to signal to them.
Ive heard about the
womens team practices, but I
didnt know they went
through this much of an or-
deal, said one of the referees,
TARGET
Continued from Page One
loried for a policy common to
retailers. Sales started to de-
cline and have now in every
quarter since.
After an internal review, ex-
ecutives determined the nega-
tive publicity was the tipping
point for some stores, espe-
cially in the South, that were al-
ready not inviting or competi-
tive enough to give shoppers a
reason to come back. Target
has now embarked on a multi-
billion-dollar revamp.
Mr. Cornell, 58 years old, ex-
pressed frustration about how
the bathroom policy was publi-
cized, and told colleagues he
wouldnt have approved the de-
cision to flaunt it, these people
said. Target didnt adequately
assess the risk, and the ensuing
backlash was self-inflicted, he
told staff. Now, it was too late
to reverse course.
You cant take it back, said
one of these people, adding that
Mr. Cornell felt very stuck.
Many gay-advocacy groups
defended Target and dismissed
arguments that gender-inclu-
sive policies enable criminals.
Some started campaigns urging
supporters to shop there.
Transgender people have been
going to the bathrooms corre-
sponding to their gender iden-
tity for decades, said Jay Wu, a
media-relations manager for
the National Center for Trans-
gender Equality, and its never
been an issue.
Mr. Cornell declined to be in-
terviewed for this article. We
strive to make our guests and
team members feel accepted,
respected and welcomed, Tar-
get spokeswoman Dustee Jen-
kins said. We know our guests
have many different points of
Shopper Preference
Target customers fall along a broad ideological spectrum
when responding to questions about social and political leanings.
I avoid purchasing I believe businesses
from companies should stay out of
that don't share politics
my beliefs
Agree
Disagree
9%
28%
35%
29%
37%
Disagree Neutral Neutral
Democrat Republican Did not vote
36%
Note: Percentages may not total 100 due to rounding
Source: Survey by Frank N. Magid Associates
of 2,500 respondents in Feb. 2017
Sounds of a North Korean stadium blast out of outdoor speakers while the South Korean womens
soccer team practices in Mokpo for a match against the North Korean womens team in Pyongyang.
who summed up her experi-
ence as painful.
During the first few prac-
tices, before the grounds crew
adjusted the volume to about
75% of the maximum, one as-
sistant coach said he had
trouble staying focused, add-
ing that his ears were numb
throughout the practice ses-
sion. I couldnt concentrate
at all at the beginning, said
Kang Ga-ae, a goalkeeper for
view on this topic and we re-
spect that.
A few weeks after the post,
Mr. Cornell defended the policy
in a television interview, saying
Target had a long history of
embracing diversity. He said
Targets bathroom policy was
similar to rivals.
The post came in response
to the 2016 North Carolina law,
which required transgender
people to use bathrooms in
government buildings according
to the sex on their birth certifi-
cates. It also disallowed laws
that prohibited businesses from
asking for proof of sex before
people used facilities.
Many national retailers, in-
cluding Wal-Mart Stores Inc.,
let people use bathrooms corre-
sponding with their gender
identities. We value the pri-
vacy of our associates and cus-
tomers, said a Wal-Mart
spokesman, and we strive to
make accommodations like
family bathrooms in some
stores.
Most retailers, though, dont
publicize their policies. Chains
such as Target have customers
with perspectives from across
the spectrum. In a February on-
line survey by consulting firm
Frank N. Magid Associates of
2,500 people, nearly two-thirds
of respondents said businesses
should stay out of politics.
Unhappy shoppers
Target picked a side and
pretty much said to the rest of
us that we dont matter, said
Mary McCandless, a shopper in
Winston-Salem, N.C. They
should have just left it as, dont
ask, dont show, dont tell.
The 56-year-old financial an-
alyst said she quit using her
Target credit card and shifted
most shopping online. At least
I dont have to worry about us-
Political stance on
social issues (abortion,
gay marriage, etc.)
Agree Liberal
33% 37%
62%
30%
Moderate Converative
Prefer not to say Other
31% 20% 5% 7%
THE WALL STREET JOURNAL.
IN DEPTH
the womens team.
It was an odd feeling, they can expect to hear, said
said Ji So-yun, a star mid-
fielder who also plays profes-
sionally for Chelsea in the U.K.
I felt like we were in North
Korea.
Womens soccer isnt a
popular sport in South Korea
and games rarely attract many
spectators. In contrast, the tions such as England and
Friday match at Kim Il Sung
Stadium is expected to draw
ing the bathroom on Ama-
zon.com.
Target had publicly waded
into social issues before. In
2010, employees and customers
protested a $150,000 Target do-
nation to a group that ran ads
supporting a Minnesota guber-
natorial candidate who opposed
gay marriage. Targets then-
CEO emailed staff: Targets
support of the GLBT commu-
nity is unwavering.
The 2016 bathroom backlash
has defined the tenure of Mr.
Cornell, a former Sams Club
and PepsiCo Inc. executive who
was credited with helping Tar-
get regain footing after taking
over in 2014 in the aftermath of
a major credit-card breach.
After North Carolina enacted
its legislation, the NCAA pulled
tournament games from the
state. Companies including Al-
phabet Inc.s Google and Ameri- particularly in the South, de-
can Airlines Group Inc. decried
the law.
Target store workers began
asking their bosses to clarify
how to apply company policy, group, LifeSiteNews, put up
said the people familiar with
the episode, who gave an ac-
count of the internal chain of
events that followed.
Headquarters sent an inter-
nal memo to store managers re-
iterating its official stance,
these people said. On April 15, a
group Target calls its risk
committee emailed executives
informing them of a plan to
post that message publicly and
requesting approval to do so.
Mr. Cornell, said one of the peo-
ple, wasnt among the recipi- suring, given that its core cus-
ents of that email.
At least two of Mr. Cornells
lieutenants approved the post, were in the South and often lo-
including Targets chief risk of- cated near Wal-Mart locations,
ficer, Jackie Rice, and its chief
external-engagement officer,
Laysha Ward. Both executives
declined to comment.
The six paragraphs went live
on the company blog, reading
in part: Given the specific
questions these legislative pro-
posals raised about how we
manage our fitting rooms and
restrooms, we felt it was impor-
tant to state our position.
Several media outlets cov-
ered the news. People began
clogging Targets Facebook,
Twitter and Instagram pages
and flooded Mr. Cornells mail-
box with messages of discon-
tent. Shoppers protested by fill-
ing carts inside Target stores
and abandoning them.
Mr. Cornell, who was out of
the office addressing vendors
the day the post was published,
returned to assess the damage.
Retracting the statement wasn't
an option, he decidedthat
might have worse consequences
than standing by it. Left-leaning
areas such as Los Angeles are
among Targets fastest-growing
* *
have featured feral crowds
whipped into a frenzy. In 1969,
clashes between fans at a
World Cup qualifier between
Honduras and El Salvador
helped spark an actual war
that lasted for four days.
Korea was divided after the
U.S. and Soviet Union each oc-
JOSH KIM/THE WALL STREET JOURNAL
cupied one half of the country
after the defeat of Japan in
World War II. The rival Ko-
rean regimes both claim sov-
ereignty over the entire pen-
insula, and remain technically
at war with each other follow-
ing the Korean War, which
ended with an armistice
agreement in 1953.
The North Korean womens
soccer team has been the
stronger of the two, winning
more than 40,000 people. 14 times in head-to-head
There has even been chat- matches and losing just once
ter that North Koreas leader, to the South Korean team
Kim Jong Un, who has taken a since the South Korean team
keen interest in the North Ko- was established in 1990.
rean womens soccer team, Fridays match in Pyong-
may show up. He once re- yang will mark only the sec-
ceived the national team in ond time that a South Korean
person at Pyongyangs airport national soccer team will face
after they beat South Korea to off against North Korea north
win the 2015 Womens East of the demilitarized zone that
Asian Cup. divides the peninsula.
It isnt unusual for soccer Mr. Yoon, the coach, was a
coaches to try to prepare member of the first team to
players for unfamiliar envi- do that. Mr. Yoons team lost
ronments. When there is a that game, in 1990, but hes
match in a different region, not willing to let history re-
say the Middle East, we also peat itself. The 1990 trip, he
familiarize athletes on the recalls, was beyond imagina-
types of cheers and sounds tion. North Koreans greeted
the South Korean team all
Yun Young-kil, a sports psy- along the road from the air-
chologist who works with the port to the hotel. The experi-
South Korean womens team. ence of playing before a crowd
But, he said, with North Ko- of about 150,000 at the Run-
rea, there is a difference of grado May Day Stadium in
intensity. Pyongyangthe worlds larg-
In the past, matches be- est stadium by capacitywas
tween teams from rival na- initially overwhelming, he
said.
Germany, Mexico and the U.S. It was exhilarating, he
and East and West Germany said. Something we had
Target lets people use facilities corresponding with gender identity.
Posting that policy, without the CEOs approval, sparked backlash.
markets.
Inside the company, execu-
tives predicted the backlash Bathroom Break?
would die down. It didnt, and Target's same-store sales fell
foot traffic in several markets, each quarter after its April 19
blog post. The retailer, which
clined considerably in the faced multiple competitive
months following the an- challenges in the period, says the
nouncement. post's impact wasn't material.
A socially conservative
Bathroom post was published
billboards in Oklahoma urging 3%
customers to #FlushTarget and
drove a truck with that mes- 2 gloomy sales outlook.
sage to stores near Targets
headquarters in May. Protesters
attended Targets June share- 1 online, and by Wal-Mart, which
holder meeting to speak out
against the policy. 0 ered prices. Targets stock has
Inside Target, executives an-
alyzing the impact found that 1 Marts has climbed 4%.
conservative families were an-
griest. Among moderates, white
2
males were most angered
which the chain took as reas- FY 2015 FY 2016
Source: FactSet
tomer is female. THE WALL STREET JOURNAL.
The stores hurt the most
The company used promo-
tions and direct mailings to fo-
they found. Executives realized cus on customers in those mar-
many stores were physically kets. It commissioned Dallas
worn down and werent com- Cowboys quarterback Tony
petitive on prices of commodity Romo to visit a Dallas Target
goods. store to help pick out Fathers
Day gifts. Target said in August
it would spend $20 million to
Revamp plan add private bathrooms to the
Target has since said it plans stores that didnt have them, an
to invest $7 billion to improve investment executives viewed
stores, launch exclusive brands as a compromise.
and develop its supply-chain Those moves didnt assuage
and digital capabilities over the shopper Tim Maxwell of Mans-
next three years, while sacrific- field, Texas, who said he and
ing $1 billion to cut prices and his wife canceled their Target
drive lower-margin digital credit card. It made me realize
sales. It plans to remodel 110 that even I can now go into the
stores this year, one-third of womens bathroom with my
those in the Dallas-Fort Worth daughter, said Mr. Maxwell, 49,
areaa market that lost foot a project manager. They
traffic after the bathroom pro- opened the floodgates.
nouncement. The Maxwells have taken
Executives also conducted their business to Amazon. The
focus groups to better under- ironic part, Mr. Maxwell said,
stand customers in markets is that we are now realizing
that appeared hardest hit by that we never really needed to
the bathroom issue. Mr. Cornell go to Target to begin with.
wanted ways to win back shop- Amazon.com Inc.s policy is
pers without agreeing to de- to let transgender employees
mands that Target retract its and customers use whichever
policy. facility corresponds with their
THE WALL STREET JOURNAL.
never seen in South Korea.
Mr. Yoon is trying to repli-
cate some of that atmosphere
with the loudspeakers, and by
relocating training to Mokpo,
where the artificial grass is
most similar to the pitch in-
side Kim Il Sung Stadium.
North Korea is a special
situation for the athletes,
said Mr. Yun, who teaches at
Korea National Sport Univer-
sity. To succeed, Mr. Yun said,
players need to approach the
match as an ordinary game.
That may be easier said
than done. Seouls Ministry of
Unification only allowed the
team to play after Pyongyang
offered written assurances
guaranteeing the safety of the
South Korean squad. A mens
soccer match slated to take
place in March between North
Korea and Malaysia in Pyong-
yang was postponed after Ma-
laysias soccer association re-
quested that the game be
moved somewhere safer.
North Korea and Malaysia
imposed travel bans on each
others citizens following a
diplomatic spat after the kill-
ing of Kim Jong Nam, the es-
tranged half brother of North
Korean leader Kim Jong Un, at
Malaysias main international
airport in February. The
match will now take place in
June in another country to be
decided.
The big question, of course,
is whether Mr. Yoons loud-
speaker strategy will help his
team focus on the field.
Cho So-hyun, South Koreas
captain, who has played sev-
eral matches against North
Korea in third countries, said
that at first she was thrown
off by the prerecorded
cheersbut not anymore.
Now we sing along to some
parts of the melody, she said.
gender identities, an Amazon
spokesman said.
The American Family Associ-
ation said it took aim at Target
instead of other retailers be-
cause Target publicized its
stance. The group in the past
CHRISTOPHER DILTS/BLOOMBERG NEWS
has called for boycotts of com-
panies such as Procter & Gam-
ble Co. and Hallmark Cards for
public support of LGBT causes.
Target executives have said
any lost sales from the boycott
werent significant enough to
require reporting to investors.
In consumer surveys, most
Target shoppers identify as
moderate or liberal on social is-
sues. Even some who support
the AFAs boycott petitionit
has gained roughly 1.5 million
signaturessaid they still shop
there. I tried not to go there,
but its hard when you like the
store, said Mari Arnett, 62, a
Colorado Springs, Colo., home-
maker. I just dont care too
much for Wal-Mart.
Targets business nonethe-
less is in a funk. Sales at stores
open at least a year have de-
clined for three straight quar-
ters. In February, it issued a
Target has been squeezed by
Amazon, as shopping moves
has remodeled stores and low-
fallen about 25% this year; Wal-
The boycott seemed to mat-
ter, but there are many cross-
currents in retail, and Target
has other problems, said John
Zolidis, a Buckingham Research
Group analyst.
Under Targets new proce-
dures, public pronouncements
on hot-button issues may not
be made without Mr. Cornells
consent. Executives are plan-
ning to avoid publicizing their
bathroom stance and other con-
troversial public-policy posi-
tions.
Earlier this year, a coalition
of about 50 companies, includ-
ing Amazon, Williams-Sonoma
Inc. and Gap Inc., signed a doc-
ument saying their gender-in-
clusive policies havent contrib-
uted to an increase in sexual
assaults or other incidents. Tar-
get didnt sign the document.
Ms. Jenkins declined to say why
not.
North Carolinas lawmakers
in late March passed a bill dial-
ing back the bathroom law that
triggered the Target blog post.
Democratic Gov. Roy Cooper
signed it into law. Some LGBT
advocates said it doesnt go far
enough to prevent discrimina-
tion. The NCAAs board of gov-
ernors said Tuesday it would
consider the state as a host for
future championships again.
This time, Target has stayed
mum.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
GREATER NEW YORK
Alleged Pension Scheme Detailed
Manager of state fund
manipulated trade
process, took bribes,
internal probe says
BY JUSTIN BAER
A former New York state
pension manager eliminated
documents and manipulated
procedures to hide a pay-to-
play scheme that unfolded in-
side one of the nations largest
retirement systems, according
to an internal review by the
state comptrollers office.
The review, released
Wednesday, is the states first
comprehensive account of
events that preceded Navnoor
Kangs indictment in December
on federal charges that he al-
legedly steered trading busi-
ness to certain brokers in ex-
change for bribes.
Mr. Kang has pleaded not
guilty and his attorney had no
comment Wednesday.
Federal prosecutors alleged
that two brokers who received
business from Mr. Kang re-
warded him with expensive
gifts, cocaine and prostitutes.
The Securities and Exchange
Commission filed a civil lawsuit
that made similar allegations.
Comptroller Thomas Di-
Napoli on Wednesday outlined
a series of red flags missed by
MARK LENNIHAN/ASSOCIATED PRESS
Ferries plied the Hudson River through the mist on Wednesday. Some commuters are turning to ferries amid the disruptions stemming from Mondays derailment.
Amtrak Under Fire Over Penn Derailments
BY KATE KING
New York-area commuter
rail services Wednesday lashed
out at Amtrak for its upkeep of
rail lines in the northeast corri-
dor, two days after a derail-
ment caused major disruptions
to commuters traveling into
New York Penn Station.
The derailment Monday was
the second at Penn Station in
two weeks and led to eight of
the 21 tracks inside the station
being put out of service because
of track and switch damage.
In a letter to Amtrak, Metro-
politan Transportation Author-
ity acting Chairman Fernando
Ferrer and Interim Executive
yacht-master 40
* * * *
pension officials before Mr.
Kang was hired and during his
tenure at the New York State
Common Retirement Fund, as
well as actions Mr. Kang alleg-
edly took to evade scrutiny.
The comptroller accused Mr.
Kang of sidestepping rules re-
quiring a minimum number of
broker bids on each trade and
for being slow to adopt new
guidelines as the fund became
a more active bond trader.
Mr. DiNapoli said the fund is
now taking a series of steps to
shore up its practices in the
wake of the scandal. He has
also asked federal authorities
to share the proceeds should
they win their case.
Several new details emerged
as part of Wednesdays report,
including the circumstances
surrounding Mr. Kangs hiring
in 2014 after he had been ter-
minated from his previous em-
ployer. Asset manager Guggen-
heim Partners fired Mr. Kang in
early 2013 after he had re-
ceived concert tickets and
other perks from brokerage
salespeople, according to the
SEC complaint.
The New York state pension
fund encountered Mr. Kang af-
ter hiring a search firm, Korn
Ferry International, to find a
new fixed-income portfolio
manager. Korn Ferry had been
struggling to find qualified can-
didates when a pension official
Director Veronique Ronnie
Hakim wrote that the increas-
ing frequency of these failures
leaves the clear impression that
Amtrak is not aggressively
maintaining its tracks, switches
and related equipment at Penn
Station.
The MTA operates the Long
Island Rail Road, which delivers
an estimated 230,000 commut-
ers to Penn Station each day.
NJ Transit Executive Direc-
tor Steven H. Santoro said he
wants a team of experts to
walk every inch of track at
Penn Station New York and per-
form an exhaustive inspection.
Having two derailments in
just over a week is unaccept-
OYSTER PERPETUAL
NY
A New York Giant
The New York State Common Retirement Fund has become one of
the countrys largest public retirement systems.
Fund value
$200 billion
150
100
NATE RAYMOND/REUTERS
50
0 50
FY1993 00 10
Former state pension manager Note: Fiscal year ends March 31.
Navnoor Kang pleaded not guilty. Source: New York State Comptroller
received an email from a bro- tive with the firm told the CIO
kerage executive recommending that his firm may have been
Mr. Kang. Korn Ferry officials, too harsh to Mr. Kang, who
who had previously passed on had made a mistake, the re-
Mr. Kangs application, agreed port said.
to give his rsum a second The executive wouldnt ex-
look, according to the report. pand on what Mr. Kang did
A Korn Ferry spokesman had wrong and, when confronted by
no immediate comment. the CIO, Mr. Kang said he had
In July 2015, Mr. Kang and rebuffed the advances of an-
the pensions chief-investment other employee and had lost his
officer traveled to California job for failing to report a din-
and met with Guggenheim ex- ner, according to the report.
ecutives, among others, accord- Guggenheim used that infrac-
ing to the report. The Guggen- tion, he told the CIO, to get rid
heim executives greeted Mr. of him. A Guggenheim spokes-
Kang warmly, and a top execu- man declined to comment.
able, Mr. Santoro said. One focus of the investiga-
Amtrak Chief Executive tion into Mondays derailment
Charles Wick Moorman said is whether the rails may have
the company is investigating become spaced too far apart,
and will take prompt action to according to a person familiar
address the cause of the recent with the matter.
derailments. Amtrak aims to re- Thats one of the things
store regular service to Penn were looking at, the width of
Station by Friday. the gauge, this person said,
We value our partnership adding that it wasnt clear
with the commuter railroads whether a switch or mechani-
and share the frustration these cal problem with the train
recent issues present to all of contributed to the wreck.
our customers, Mr. Moorman Track maintenance at the sta-
said in a statement. tion is Amtraks responsibility.
A spokeswoman for the Fed- Mr. Santoro said NJ Transit
eral Railroad Administration, verified that all of its railcars
which is investigating the derail- were up-to-date on required
ments, said in a statement that 180-day inspections at the
no cause has been identified. time of the derailment. We
Thursday, April 6, 2017 | A12A
Rate of return
50%
25
0.03%
0
25
FY1993 00 10
THE WALL STREET JOURNAL.
At the New York State Com-
mon Retirement Fund, Mr.
Kang would instruct his brokers
to send the electronic confir-
mations to his subordinates
creating the false impression
that most of these transactions
were conducted by the invest-
ment staff and then approved
by him, the comptrollers of-
fice wrote in the report.
Kangs manipulation of the
electronic trade process had
ripple effects that he capital-
ized on to further conceal his
alleged criminal activity, re-
port said.
feel that those railcars were in
good shape, he said.
As the commuting night-
mare resulting from Mondays
train derailment stretched into
a third day, lawmakers from
New York and New Jersey said
the disruption underscored
the need for federal funding to
jump-start a long-delayed
Hudson River Rail project.
Local funding and the nec-
essary permits are in place,
but construction cant begin
until the federal government
agrees to fund half of the proj-
ects first phase, estimated to
cost $1.5 billion.
Andrew Tangel
contributed to this article.
rolex oyster perpetual and yacht-master
are trademarks.
Budget
Impasse
In Albany
Continues
BY MIKE VILENSKY
ALBANYThe leader of the
New York state Senate
said Wednesday night his
members are going home, ef-
fectively dashing hopes that
legislators will pass a state
budget this week despite the
deadline passing several days
ago.
Are we close? Yes, said
Republican John Flanagan, the
Senate president. Close, and
yet so far.
The announcement capped
a chaotic night at the state
capital, with Mr. Flanagan,
Gov. Andrew Cuomo and As-
sembly Speaker Carl Heastie
holding separate news confer-
ences.
They partly blamed the
other parties and offered con-
flicting information about an
impasse in budget negotiations
that shows no signs of letting
up.
The state has been operat-
ing on a temporary emergency
budget since the fiscal year
ended April 1.
Mr. Cuomo, a Democrat,
typically holds a news confer-
ence with the two legislative
leaders in the statehouses re-
gal Red Room when a three-
way agreement is reached,
known as the kumbaya mo-
ment in Albany parlance.
But at around 7
p.m. Wednesday, Mr. Cuomo
called a news conference there
by himself, seating aides
where the two leaders would
normally be placed on either
side of him.
In wide-ranging remarks, he
said he remained concerned
The state has been
operating on a
temporary emergency
budget since April 1.
about funding cuts from a new
Republican federal government
to New York. He also said ideo-
logical disputes between the
Democratic Assembly and Re-
publican Senate on criminal-
justice measures, charter
schools and a tax break for
real-estate developers were to
blame for the budget impasse.
This year is a very differ-
ent year than any year cer-
tainly since Ive been governor
and arguably a different year
in government, in politics,
than weve ever seen in this
country, he said.
Despite having prided him-
self on on-time budgets in the
past, Mr. Cuomo didnt appear
concerned about the stalled
spending plan. He even sug-
gested that state lawmakers
could continuously pass tem-
porary budget extenders to
keep government afloat rather
than a new, full budget for the
new fiscal year but said his
hope was to come to a final
budget agreement.
He said he wanted finan-
cial flexibility, seeming to
push for the power to make
midyear changes to any final
budget, a proposal legislators
have been cool to.
Legislators arent being
paid under the extender. In a
sign of the growing tensions
and worsening negotiations,
many in both chambers ma-
jority immediately pounced on
Mr. Cuomos remarks.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12B | Thursday, April 6, 2017 NY * * THE WALL STREET JOURNAL.

PROPERTY WATCH GREATER NEW YORK

Farm-to-Condo Movement Hits Brooklyn

MANHATTAN
Housing Inventory
Swellsand Shrivels
The supply of apartments on
At a Vanderbilt Avenue building, owners will sign up for rooftop plots and harvest edible crops
the market is increasing, but the
bump is providing little relief for BY JOSH BARBANEL
buyers looking for lower-priced

studio and one-bedroom pads.
The number of months it
would take to sell current listings
at the current pace of sales,
known as the absorption rate,
rose in March to 5.5 months in
Manhattan, the highest level in 10
months, according to a report by
brokerage Brown Harris Stevens.
But the absorption rates for
studios and one-bedroom apart-
I
T WAS ONLY a matter of
time before the farm-to-
table movement merged
with the Brooklyn condomin-
ium boom.
On a large south-facing
terrace on the eighth floor of
550 Vanderbilt Ave., an 18-
story brick and concrete
building near the Barclays
Center in downtown Brook-

ments were far lower3.8
months for studio condominiums
and 2.6 months for studio co-
ops, and 4.8 months and 2.6 for
one-bedroom condos and co-ops,
respectively.
We are not adding inventory
where it is most needed, in stu-
dio and one-bedroom apart-
ments, said Gregory Heym,
chief economist at Brown Harris
Stevens and Halstead Property.
There is frustration with the
market now. Inventory is either
too tight or too high.
MANHATTAN
West Side Condo
Sells Out Quickly
In a sign of improving demand
for new condominiums, a 16-unit
property on the West Side known
as Ivy Park sold out a little over
two months after it went on the
market, brokers said.
The seven-story limestone-
and-glass building, at 952 Colum-
bus Ave. near West 107th Street,
is located in a gentrifying section
of the West Side known as Man-
hattan Valley, near blocks of low-
rise buildings. It was priced at an
average of about $1,350 a square
foot, less than comparable apart-
ments closer to Broadway.
Evan Shaffer, a broker at
Douglas Elliman who marketed
the building, said it attracted im-
mediate interest when the units
were listed in early December, and
asking prices were raised twice,
after starting at $895,000.
The last unit, a $1.795 million
three-bedroom, was listed in con-
tract on Feb. 20, according to real-
estate listing site Streeteasy.com.
Josh Barbanel
lyn, crews are erecting three
large metal boxes and filling
them with soil
PROPERTY suitable for
high-altitude
farming.
Condo owners will be able
to sign up for a small plot to
grow their own vegetables
there, alongside Ian Rothman,
a farmer and co-owner of Olm-
sted, a trendy farm-to-table
restaurant a few blocks away.
Mr. Rothman has been
promised a large subdivision
of the plots, and is planning
an initial crop of hot peppers
for the restaurants home-
made aji dulce sauce served
with oysters. The restaurant
is named for Frederick Law
Olmsted, the landscape ar-
chitect who designed the
nearby Prospect Park.
We plan to develop a sub-
stantial amount of our space
to peppers, Mr. Rothman said.
It will augment the restau-
rants modest rear yard, where
he grows garlic, radishes,
herbs and edible flowers.
Farm-to-condo is an ex-
tension of the flowering ur-
ban farming movement that
has produced crops on the
grounds of public-housing
developments and on the
sprawling rooftops of com-
mercial buildings in the city.
Last year a 5,000 square-
foot farm opened in a court-
yard between two rental
buildings at Urby, a develop-
ment near the waterfront in
Stapleton on Staten Island.
That farm is tended by a res-
ident farmer, who receives a
salary and a free apartment
to tend the fields.
Rooftop view of 550 Vanderbilt in Brooklyn, above, where tenants will be able to grow crops. Below, a rendering of the finished space.
By contrast, 550 Vander-
bilt is providing a terrace for
do-it-yourself farmers who
can afford condos priced at
an average of $1,500 a
square foot, with one-bed-
room units starting at
$890,000 and two-bedrooms
at $1.495 million. The build-
ing is being developed by a
joint venture between Green-
land USA, a subsidiary of
Shanghai-based Greenland
Group Co., and Forest City
Ratner Cos., a subsidiary of
Forest City Realty Trust Inc.
Condo owners will be able
to sign up each season for
plots of at least 7 feet by 10
feet in the 1,600-square-foot
farm, enough to harvest a sig-
nificant edible crop, said Ash-
ley Cotton, executive vice
president for external affairs
at Forest City Ratner Cos. The
largest farm bed will be about
39 feet by 21 feet and will be
divided by plank walkways.
Mr. Rothman founded a
boutique farm in Massachu-
setts and then raised herbs,
vegetables and edible flow-
ers in a subterranean garden
beneath Atera, a Tribeca
tasting-menu restaurant that
charges $275 per person, not
including beverages.
The idea for the 550 Van-
derbilt Ave. vegetable gar-
den came from COOKFOX
Architects, which designed
the building. The firm fol-
lows a principle it calls bio-
philic design, or the cre-
ation of spaces that promote
human well being by en-
hancing the connection be-
tween people and nature,
said architect Brandon
Specketer, who worked on
the building.
PETER J. SMITH FOR THE WALL STREET JOURNAL; VUW STUDIO (BELOW)
The building includes deco-
rative boxes on many win-
dows that will be filled with
native plants and flowers.
Greenery will spill over the
top of the raw concrete en-
trance to the building. The
building also will include
piped-in fresh air, and a sky-
light and glass walls on stairs
to encourage walking, and
natural materials such as mar-
ble and wide-plank oak floors.
The condos at 550 Van-
derbilt are part of the 22-
acre $4.9 billion Pacific Park
development anchored by
the Barclays Center. It even-
tually will include 14 resi-
dential buildings with 6,430
apartments, many like 550
Vanderbilt connected by a
park open to the public.
The condos went on the
market in mid-2015, and about
60% of the apartments have
been sold, Ms. Cotton said, in-
cluding seven in the month
since the building opened.

Mayor Challenged on Left

BY MARA GAY
Robert Gangi is hoping to
complicate things for New
York City Mayor Bill de Bla-
sios seemingly wide open path
to re-election in November.
Mr. Gangi, a longtime po-
lice-reform advocate, is waging
a long-shot bid to unseat Mr.
de Blasio in the Sept. 12 Demo-
cratic primary, hoping to out-
flank the mayor on the liberal
issues that propelled him into
office nearly four years ago.
Though he only has raised
about $46,000 and has little
name recognition, Mr. Gangi
could test Mr. de Blasios re-
serve of support in his black
and Latino base. His fierce
criticism of policing tactics
embraced by Mr. de Blasio and
his predecessors could draw
support from liberal New
Yorkers unsatisfied with the
mayors record on policing,
and cast scrutiny on Mr. de
Blasios 2013 campaign prom-
ises to improve policing in mi-
nority communities.
De Blasio has failed to fol-
low through on his progressive
agenda, on his progressive
politics, Mr. Gangi said at a
Manhattan news conference
Wednesday. We think that Bill
de Blasio is vulnerable.
Mr. Gangi, the 73-year-old
former director of the Police
Reform Organizing Project, is
most critical of Mr. de Blasios
support for broken windows
a policing tactic that focuses
enforcement on lower-level
crimes in an effort to prevent
more serious ones that many
say unfairly targets minorities.
A de Blasio campaign spokes-
man said the mayor had ex-
panded the citys prekindergar-
ten programs, raised wages, and
has a plan to build thousands of
affordable-housing units.

State Test Scores

Wont Be Used
To Rate Teachers
BY LESLIE BRODY

The Connecticut State

Board of Education voted
Wednesday to ditch plans to
use students state test scores
in end-of-year teacher ratings.
The decision was a victory
for teachers unions, which
have long argued that students
results on standardized state
exams are unreliable measures
of teacher quality. Critics of the
change said the vote marked a
We are there lost opportunity to add objec-
tive data to evaluations.
when you cant be The boards vote means prog-
ress on the state tests can still
be used to set goals for teachers
Trusted Skilled and shape professional develop-
ment, but cant be used in calcu-
Experienced Guaranteed lations for their annual formal
ratings. Six board members
voted for the change, two voted
against it, and one abstained.
The Connecticut Education
Association applauded the
move, saying the action puts
the focus back where it be-
longs: On teaching, learning,
LifeWorx.com and student achievement.
Opponents said the step
watered down reviews.
This was a political decision
and when politics dominate edu-
New York, NY Westport, CT Chappaqua, NY cation policy-making, our kids do
212.257.6706 203.966.3400 914.458.9933 not come first, said Jennifer Al-
exander, chief executive of Con-
Englewood, NJ Long Island necticut Coalition for Achieve-
201.793.3154 516.501.9152 ment Now. If we continue to
fold in front of political pressure,
Insured and Bonded we will never fully prepare stu-
dents for a successful future.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, April 6, 2017 | A13

LIFE&ARTS

CLOCKWISE FROM TOP LEFT: GETTY IMAGES; ASSOCIATED PRESS; BLOOMBERG NEWS; ZUMA PRESS
Discount airlines like WOW, above, and Norwegian Air, below, are offering low
prices to European destinations like Iceland, left, and Barcelona, bottom left.

THE MIDDLE SEAT | Scott McCartney

The Back-Door Way

To Fly to Europe
Airlines like Norwegian and WOW are taking the Southwest blueprint
across the Atlantic, with lower-cost flights from lesser-known airports
THERES A SURGE of
new ways to fly to Europe
inexpensively this summer
for travelers savvy enough
to pick through schedules
and find new airlines
theyve never heard of fly-
ing from new cities that
hardly dreamed of having
trans-Atlantic service.
New Orleans hasnt had
European flights for de-
cades, but this summer
will add nonstops to Lon-
don and Frankfurt. Pitts-
burgh, adding Frankfurt
and Reykjavik to its sea-
sonal service to Paris, will
have more nonstop flights
across the Atlantic this
summer than to the West
Coast.
Pittsburgh ticket prices
will be cheaper to Europe
than to California, too. For
a July 13-20 trip from
Pittsburgh, WOW offers
$320 coach tickets to
Reykjavk. (Like many dis-
count airlines, fees will hit
hard: A carry-on bag is
$40 extra. Advance seat
assignment in the back is
$9.) Compare that to the
United Airlines nonstop to San
Francisco on the same dates for
$579. Its a buyers market this
summer, says Christina Cassotis,
the airports chief executive.
This trans-Atlantic push is hap-
pening because new discount air-
lines are taking advantage of new
freedom from restrictive treaties
in international travel and new
small- and medium-size airplanes
that can make long trips at low
costs. Their strategy: Copy some
of the Southwest Airlines blue-
print and fly to secondary cities,
creating demand with low fares.
Some of the flights are down-
right mind-bending: Stewart Air-
port near Newburgh, N.Y., averages
just seven flights a day to five U.S.
cities. But come summer it will
have nonstop Norwegian Air
Shuttle flights to five airports in
Europe, including Bergen, Norway,
gateway to the fiords. Providence,
R.I., will get a similar Norwegian
schedule.
Norwegian started selling tick-
ets with $65 one-way
fares including taxes.
Those have long since sold
out. But the prices avail-
able this week for July
trips are still startling
roughly half what big air-
lines offer for summer
trips to Europe. A July
13-21 trip from Stewart,
60 miles north of New
York City, to Bergen was
priced at $390 round-trip
including taxes.
Its been way too ex-
pensive to fly across the
Atlantic, way too expen-
sive, says Bjorn Kjos,
founder and CEO of Nor-
wegian Air Shuttle. If
airlines can lower the
cost they will ramp up
the volume.
Other new flights pres-
ent new opportunities to
reach even the major Eu-
ropean cities without the
traditional routes of go-
ing to big hubs on big
planes. Edelweiss, the lei-
sure subsidiary of Swiss
International, will fly
twice a week between
Zurich and San Diego
starting in June.
Norwegian will start flights in
June from Barcelona to Los Ange-
les, Newark, N.J., Fort Lauderdale,
Fla., and Oakland, Calif. It will fly
more this summer between Lon-
don and both Los Angeles and
Oakland, as well as its Paris flights
to New York and L.A.
In all, consultant Craig Jenks
counts a net 30 new trans-Atlantic
flights this summer, mostly on Eu-
ropean airlines. Last summer saw
24 new flights, many of which are
continuing. I think you can proba-
bly make a case that some of this
is not going to last. But why not
take it while its on offer? says
Mr. Jenks, president of Airline/Air-
craft Projects in New York.
To find the new flights, pay at-
tention to billboards: The airports
with new service usually pay to
market the new service. Book di-
rect or use a broad search engine
like Kayak, Google Flights, Sky-
scanner or Momondo that will pick
up discount airlines that may not
list flights in central travel agency
computers. Be flexible with your
dates. Some of these new flights
wont run daily.
Airlines say many of their new
flights are seeing more bookings
from the U.S. side than from Eu-
rope. And European inbound travel
to the U.S. could take a hit from
possible new Trump administra-
tion rules on extreme vetting of
visitors. So far, airlines say sum-
mer bookings are strong.
Bigger European rivals are tak-
ing the discount invasion seriously,
creating their own low-cost sub-
sidiaries to try to fight back. The
upstarts believe whats really hap-
pening is the second phase of the
world-wide discount airline evolu-
tion: Southwest, JetBlue, Ryanair,
EasyJet and other low-cost carri-
ers rearranged how we travel on
short trips. Now theres a similar
strategy on long routes.
Just like the original discount-
ers, long-haul startups say small
airports have lower costs, and
many offer incentives such as dol-
lars to market new service in the
U.S. and Europe.
Norwegian says one key to its
strategy is new, fuel-efficient air-
planes that have the range to make
long trips. Norwegians main
weapon across the Atlantic is the
Boeing 787 Dreamliner. This sum-
mer it will launch Boeings latest
version of the 737, called the 737
MAX, on small-city flights.
Norwegian will be the first air-
line to take delivery of the 737
MAX, probably in June. It will
have 189 seats, making for tight
quarters on long trips.
Some of Norwegians new
routes are already attracting a
competitive response, opening up
a plethora of seats for travelers.
The cheapest way to London this
summer could be going through
smaller cities like New Orleans,
Fort Lauderdale or Oakland.
British Airways is launching
flights from London to all three
cities, longtime favorites of South-
west, four times a week. Norwe-
gian has already been flying from
London to Oakland and Fort Lau-
derdale. Norwegian will start fly-
ing this summer between Barce-
lona and Los Angeles, Newark,
Oakland and Fort Lauderdale. BA
parent company IAG announced
plans to launch a new low-cost
unit this summer flying between
Barcelona and both Oakland and
Los Angeles.
From New Orleans, a July 12-19
trip to London priced at $983 on
British Airways site this week. A
trip from Houston to London on
the same dates cost $1,586.
These passengers that are trav-
eling for the first time across the
pond in either direction, Im con-
vinced they will want to come
back. They will have good experi-
ences and that will generate more
stable, permanent demand, says
British Airways chief executive
Alex Cruz.

READING

NEW BOOKS CELEBRATE BEING ALONE

BY ELLEN GAMERMAN
A WAVE OF NEW BOOKS offers a
common message: Its time to go it
alone, whether finding strength in self-
imposed exile, surviving at sea without
a soul in sight or fixing a marriage
without help from a spouse.
The new titles are responding to the
live-out-loud era of social media, where
anyone with a device always has some
form of company. A result of this ob-
sessive interacting, the books argue, is
diminished self-knowledge, compro-
mised inner resources and an inability
to spend meaningful time with oneself.
You could call it crowd sickness,
said Michael Harris, author of Soli-
tude: In Pursuit of a Singular Life in a
Crowded World, which hit shelves this
ILLUSTRATION BY JON KRAUSE
Stranger in the Woods: The Extraordi-
nary Story of the Last True Hermit, by
Michael Finkel, is a biography of a man
who lived alone in the forest for 27
years. It seems fitting that such books
arrive in the year marking the 200th
birthday of Henry David Thoreau, au-
thor of the ultimate loners guide,
Walden, a classic just reissued by
publisher Gibbs Smith.
In 2012, nonfiction hits like Susan
Cains Quiet: The Power of Introverts
in a World That Cant Stop Talking
and Cheryl Strayeds Wild: From Lost
to Found on the Pacific Crest Trail put
value on retreating inward. Theres
more urgency to that need to escape
now, said Chris Schluep, senior editor
of the team that curates Amazons book
recommendations. I think a counter-
part to all these solitude books are the

week. Its the sense of being over-
whelmed by ones thousands of con-
tacts and the desire that people occa-
sionally have to just run away from it
all and go into the woods.
The moment would appeal to any
hermitand theres a new bestselling
book about one of those, too. The
books about technology. Theyre two
sides of the same coin.
Retreating from the everyday bustle
appears as a therapy in The Nature
Fix: Why Nature Makes Us Happier,
Healthier, and More Creative, a non-
fiction work by Florence Williams pub-
Please see ALONE page A14
A14 | Thursday, April 6, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

ALONE step back and think about

whats important for us, for
us to have that aloneness,
THEATER REVIEW | Terry Teachout

Continued from page A13

lished in February that ex-
plores natures restorative
benefits to the brain. Lead
Yourself First: Inspiring
Leadership
Through Solitude,
a defense of alone
time by Raymond
M. Kethledge and
Michael S. Erwin
that comes out in
June, argues that
solitude enhances
clarity, creativity,
emotional balance
and moral cour-
age. Joe Morans
Shrinking Violets:
The Secret Life of Shyness,
which came out in the U.S.
in February, is a cultural
history of that human trait.
Taking a psy-
chological twist
on solitude and
self-reliance: It
Takes One to
Tango: How I Res-
cued My Marriage
with (Almost) No
Help from My
Spouseand How
You Can, Too, by
marriage and fam-
ily therapist Wini-
fred M. Reilly. The
book, published this week,
argues that unhappy
spouses can fix their rela-
tionships alone. A therapist
tells you that you
cant really be the
one who changes
a marriage by
yourself, but why
not? Ms. Reilly
said. Why not be
the one working
harder? In the
he said. I find it so sad that
at the age of 50 I only
learned this.
Today, collaboration is a
cultural buzzword. In Soli-
A Comedic Triumph
tude, Mr. Harris describes
Nobel prize-win-
ning physicist Pe-
ter Higgs observing
that his revolution-
For Coward and Kline
ary work would
not be possible to- Nol Cowards funniest comedy revolves around a monstrously vain actor
day because the
peace and quiet of
the 1960s research
world is gone.
Mr. Harris opens
his book with Dr.
Edith Bone, a
woman accused of
spying for Britain who was
held in solitary confinement
in a Hungarian prison for
seven years until her release
in 1956. Tor-
mented, plunged at
times into total
darkness, she dis-
appeared into her
rich interior world.
In her mind, she
toured every city
she had ever vis-
ited, walking for so
long that she wore
a groove into the
concrete by her
bed.
Turning the experiment
on himself, the 37-year-old
Vancouver native spends a
week living completely alone
in a cabin in the
woods on Pender
Island two hours
off the coast of
British Columbia.
For the first three
days the exercise is
torture. Mr. Harris
waits for epipha-

work world we
call that being a
leader.
Solitude is ter-
rifying and awe-
inspiring in
Alone: Lost Overboard in
the Indian Ocean, which
comes out in hardcover in
the U.S. this fall. It de-
scribes the near-
death ordeal of
54-year-old co-au-
thor Brett Archi-
bald, who was
swept off a char-
ter boat in a
storm four years
ago. In an inter-
view, Mr. Archi-
bald described the
vessel leaving him
in the darkness:
Ive read the Ox-
ford Dictionary from front
to back to try to find one
word in the English lan-
guage to describe the horror
of that moment,
he said. In the
book, he describes
taking control
over his panicking
mind as he
bobbed in the
ocean, slowing his
racing heart
through breathing,
figuring his posi-
tion by looking at
the stars, spend-
ing time in imag-
ined conversations with
childhood friends. He was
rescued after 28 hours.
When Mr. Archibald re-
turned to Cape Town, South
Africa, he reevaluated his
life. Its not easy for us to
ADVERTISEMENT
nies that never
come. While star-
ing at the ocean,
he fights the im- Kristine Nielsen, Kate Burton and Kevin Kline in Present Laughter, directed by Moritz von Stuelpnagel
pulse to change the
channel. He spooks New York
himself. Cabins in the woods PRESENT LAUGHTER is
arent just for Thoreau, it oc- Nol Cowards funniest and
curs to him. Ted Kaczynski, most perfectly wrought
the Unabomber, lived in one, comedy, give or take Blithe
too. Spirit. But unlike Blithe
He spends hours Spirit, which all but plays
walking in the itself, Present Laughter
woods, contemplat- wont come off unless the
ing a digital cul- central character, a mon-
ture where all strously vain actor-play-
that clicking and wright-celebrity who be-
sharing and liking haves in a manner all but
and posting looks indistinguishable from Cow-
like a pile of iron ard himself, is portrayed by
shackles. an actor who oozes star
Soon he is star- quality from every orifice
ing at animals. He and is also naturally funny.
waves hello to a Until now, only four men
deer, which he describes had dared to play Garry Es-
sticking its tongue out at sendine, Cowards fictional
him by way of reply. On his alter ego, on Broadway: Clif-
last night, he is talking to ton Webb, George C. Scott,
the dead grandfa- Frank Langella and Victor
ther he never Garber, the last of whom
knew, telling him wasnt quite up to scratch in
about his life. the Roundabout Theatre
When he makes Companys 2010 production.
it back to civiliza- Now their ranks have been
tion, he holds up augmented by Kevin Kline,
the line at a gift who last set foot on a
shop because he
cant stop talking
to the clerk who
just sold him a
Weather
magazine. He en- Shown are todays noon positions of weather systems and precipitation. Temperature bands are highs for the day.
joys the feeling of
genuinely missing the people Vancou
Vancouver 40s
he loves. He realizes he
wants to marry his boy-
Seattle
50s
friend. Truly connecting with Portland
Por
P d
60s
other people, he learns, cant
happen without a dose of liv- g
Eugene
ing without them. Boise
Reno
60s
Sacramento
an Francisco
San
70s
Las
JOAN MARCUS
Broadway stage a decade the famously funny Mr. air-headed 24-year-old wan-
ago, when he donned a false Kline, but theres a catch: nabe actress (Tedra Millan).
nose and appeared in Hes 69 years old, whereas Therein lies the originality of
Cyrano de Bergerac. Youd Garry Essendine has only performance and production
think hed be rusty, but just turned 40 (as had Cow- alike: Essendine is played for
youd be dead wrong. Not ard when he wrote the play truth, not as a caricature,
only is Mr. Klines perfor- in 1939). You can fiddle with which simultaneously makes
mance a triumph, but this the text of Present Laugh- him more interesting and
revival, directed by Moritz ter all you want in order to yeseven funnier.
von Stuelpnagel, is the best obscure Essendines actual Mr. Von Stuelpnagels
staging of a Coward play age, but you cant escape 2015 Broadway staging of
any Coward playthat Ive the oft-mentioned fact that Hand to God proved him
ever seen. hes a matine idol who is to be a master of stage
If you know Soapdish, irresistibly attractive to comedy, physical and other-
the 1991 screen comedy in fans of both sexes. wise. Nevertheless, its re-
which Mr. Kline played a How have Messrs. Kline ally something to see how
pompous soap-opera hero, and Von Stuelpnagel dealt he puts Mr. Kline and the
youll have a fairly good with this problem? By con- supporting cast, led with
idea of how hes playing Es- fronting it head on. In addi- cracker-dry flair by Ms.
sendine, whos never seen a tion to streaking Mr. Klines Nielsen and Kate Burton
mirror he didnt like, a hair with gray, Mr. Von Stu- (who plays Essendines es-
friend he didnt try to ma- elpnagel makes him claim at tranged wife), through their
nipulate or a woman he various points in the play to comic paces. Even the
didnt try to bed. Every- be 45, 43, 47 and (best of all) smallest gestures hit their
body worships me, its nau- 57. Moreover, Mr. Kline plays targets. And by having his
seating, he complains to Essendine as an older man, actors underplay the first
Monica (Kristine Nielsen), one who is still vital but half of the show slightly,
his long-suffering secretary, nonetheless uncomfortably Mr. Von Stuelpnagel height-
to which she crisply replies, aware that its absurd to the ens the payoff of the second
Theres hell to pay if they point of pitifulness for him half, in which Coward turns
dont. Its a dream part for to be carrying on with an what starts out as a witty
drawing-room comedy into
a four-door farce. By eve-
nings end, the laughter is
loud, continuous and en-
tirely well-deserved.
d t
Edmonton 20s <0 David Zinns set, a deco-
40s
0s rated-to-the-hilt London du-
Calgary
10s plex, is as much a character
p
Winnipeg 30s in the play as is Garry Es-
50s
20s
Montreal 30s sendine himself. (Keep an
Helena
l Ottawa
70s
Bismarckk 40s eye out for the Art Deco
Augusta
A t
40s Billings
g
50s poster for one of Essend-
Mpls./St.. Paul
Pau T
Toronto Albany
A b
ban Boston
t
40s Buffalo
l inea imaginary West End
Hartford
rtford 60s
Pierre Sioux
P oux FFalls
ll Milwaukee
k Detroit 50s shows, Breath of Autumn.)
Cleveland
Cleve d New Yorkk
ew Y 70s
Chicago
Ch
Chic Needless to say, its
Salt
alt Lak
L ke City
Lake C y
Cheyenne
Des
es Moines
Omaha
h 80s
Springfield
p g Indianapolis
d p P b h
Pittsburgh Philadelphia
Ph
h d lph equipped with a grand pi-
Denver Washington
h g on D.C.
DC 90s
Kansas
Charleston
Ch ano, on which our world-
Topeka
k
Colorado
C d
Springs
p g
City Richmond
h d 70s 100+ weary star tosses off not a
60s Wichitah St.. Lou
LLouis L
Lou ill
Louisville

Leisure Travel
To advertise: 800-366-3975 or WSJ.com/classieds
Angeles
Los A
Ange l 80s
Vega
Vegas

Ph
Phoenix
Santa
anta Fe
Albuquerque
Alb q q
Oklahoma City Memphis h
h
Nashville
Ch l
Charlotte
Atlanta
Atl t
i
Raleighgh
60s
Nol Coward songthat
would have been too easy
San Diego 90s L
Little Rockk C l bi
Columbia Warm Rain but the slow movement of
Tucson
T c Birmingham
i h Beethovens Pathtique
Ft. Worth D ll
Dallas JJackson
k
Cold T-storms Sonata, a neat little touch,
FRANCE P
El Paso
bil
Mobile
J k
Jacksonville
10s Austin
A ti not least because Mr. Kline
20s 80s t
Houston Orlandod Stationary Snow
30s Newew Orleans does his own very compe-
80s San
an Antonio
A t i Tampa 80s
40s Miami Showers Flurries tent playing.
Honolulu
l l 80s
A h g
Anchorage
70s 90s The last Present Laugh-
Ice ter I saw, directed by David
Lee for New Jerseys Two

 

 U.S. Forecasts
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
City
Omaha
Hi
59
Today
Lo W
33 s
Tomorrow
Hi Lo W
64 48 s
City
Frankfurt
Hi
57
Today
Lo W
40 c
Tomorrow
Hi Lo W
57 45 c
River Theater Company in
2013 and starring Michael
t...tstorms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 80 53 pc 75 50 s Geneva 58 37 pc 65 40 s Cumpsty, was fabulously

  
      City
Today
Hi Lo W Hi Lo W
Tomorrow Philadelphia 63 45 r 51 40 c Havana 89 68 pc 79 62 s fine, enough so that it
Phoenix 91 63 s 91 63 c Hong Kong 78 70 c 79 71 pc
Anchorage 46 33 c 46 30 s Pittsburgh 56 34 r 39 30 sn Istanbul 60 48 c 57 46 c
should have transferred to
Broadway. I never expected
   
  
 
Atlanta 58 43 c 62 41 s Portland, Maine 42 39 r 49 37 c Jakarta 88 75 t 87 77 t
Austin 78 47 s 80 58 pc Portland, Ore. 60 48 c 58 44 r Jerusalem 75 51 s 65 45 pc to see Present Laughter

 !

  !  Baltimore
Boise
66 44 r
65 51 c
51 38 c
64 45 r
Sacramento
St. Louis
68
57
53 c
38 pc
65 45 t
60 42 s
Johannesburg
London
79
58
53 pc
45 pc
73 53 c
59 42 pc
done better, but Mr. Kline
and his colleagues have

   

 Boston
Burlington
48 44 r
46 39 r
52 40 c
49 36 r
Salt Lake City
San Francisco
74
66
57 c
55 sh
69 48 pc
64 49 t
Madrid
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70
92
43 s
77 s
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94 79 s turned the trick. No matter
Charlotte 61 40 pc 58 36 pc Santa Fe 67 35 s 72 40 pc Melbourne 77 58 pc 79 62 s what mood youre in when
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Cleveland 57 35 r 44 32 sn Sioux Falls 56 32 s 65 47 s Milan 71 48 s 69 48 pc you arrive at the St. James
Dallas 77 51 s 78 59 pc Wash., D.C. 68 46 r 52 39 c Moscow 61 44 pc 49 37 sh Theatre, youll go home
Denver 62 37 s 74 47 pc Mumbai 91 78 pc 91 77 pc grinning with delight.
Detroit
Honolulu
43 32 r
85 73 pc 85 73 pc
47 30 c
International Paris
Rio de Janeiro
56
96
39 pc
76 s
63 42 s
90 75 r
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Indianapolis 46 35 r 51 32 pc City Hi Lo W Hi Lo W Rome 66 47 t 66 46 pc St. James Theatre, 246 W.
Kansas City 57 31 s 62 49 s Amsterdam 52 43 c 55 41 c San Juan 86 74 s 86 74 s
Las Vegas 85 64 pc 82 63 pc Athens 69 54 c 69 53 pc Seoul 55 45 c 68 50 c 44th St. ($59-$150),
Little Rock 67 41 pc 69 45 s Baghdad 84 61 s 86 58 s Shanghai 74 60 sh 71 57 c 877-250-2929, closes July 2
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      Milwaukee 47 33 c 51 37 s Berlin 54 43 c 54 47 sh Taipei 82 70 c 82 70 pc Mr. Teachout, the Journals
  
 Minneapolis 54 33 s 60 46 s Brussels 53 39 c 56 39 c Tokyo 65 58 c 68 59 r drama critic, is the author,
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New York City 56 45 r 50 40 sh Dublin 54 36 pc 58 39 pc Warsaw 49 35 sh 51 37 sh at the Waldorf. Write to
Oklahoma City 68 44 s 71 55 pc Edinburgh 55 41 pc 53 40 c Zurich 54 33 pc 61 38 s him at tteachout@wsj.com.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Thursday, April 6, 2017 | A15

LIFE & ARTS

PATRCIA MONTEIRO FOR THE WALL STREET JOURNAL

A street mural, left, by Os Gmeos, twin brothers, who sell work on canvases for over $100,000 at galleries globally. A building in downtown So Paulo, right, covered with graffiti called pixo.

STREET ART

A War on Graffiti in Brazil

A new mayor cracks down on So Paulos distinctive pixo; Preparations are underway for the Street Art Museum
gray and polluted, So now sell work on canvases ened the already stark gap
BY SAMANTHA
Paulo has long prided for over $100,000 at galler- between So Paulos haves
PEARSON
itself on its rich street ies around the world. and have-nots, while Brazils
artitself a form of vi- Many artists have felt biggest-ever corruption
So Paulo sual protest against the under attack during this pe- scandal has sparked a fierce
DJAN IVSON has been citys austere Brutalist riod, said Fabio Ribeiro, debate about the balance
prosecuted seven times concrete architecture. nicknamed Binho Ribeiro, between private and public
for vandalism. Its be- Inspired by the U.S. another of Brazils most interests.
coming an occupa- hip-hop scene, Brazils well-known graffiti artists, As scores of Brazils poli-
tional hazard. The 33- graffiti artists began as he rushed to finish a mu- ticians stand accused of
year-old is Brazils developing their own ral in the bohemian neigh- stealing public money from
most vocal practitioner style in the mid-1980s, borhood of Vila Madalena state-controlled oil company
and defender of taking advantage of the before taking part in a re- Petrobras for private gain,
pichao, known as freedom afforded by cent exhibition in Miami. practitioners of illegal graf-
pixo, a distinctive the end of military rule He was still seething over fiti in So Paulobe it pixo
form of calligraphic in the country. the loss of his 6-foot paint- or paintings in unauthorized
graffiti that covers ev- Relatively lax law ing of a turtle, one of the im- locationsview their work
erything from sky- enforcement allowed ages removed on May 23 Av- as a way to reclaim public
scrapers to burnt-out A mural by Os Gmeos on So Paulos May 23 Avenue. The city recently the scene to flourish. enue. While Mr. Doria says space in a city that they be-
cars here in South painted over large swathes of graffiti on the avenue with gray paint. High crime rates also his team only covered up lieve has also been appropri-
Americas biggest city. prompted residents to paintings that were already ated by private interests.
Weve always been de- tive graffiti, confining it to a bum covers and bears a re- erect towering walls around vandalized with pixo, Mr. Doria is giving picha-
monized by the authorities, Street Art Museum that is semblance to the ancient their properties, turning the Ribeiro says his was in per- dores a total boost, Mr. Iv-
but now were public enemy expected to be ready in June. Runic alphabet. In 2009, city into an endless canvas fect condition. son says as he watches with
number one, he says, sitting The museum will consist of a Pariss Fondation Cartier for graffiti. The dispute over the le- delight as friends spray their
on the curb of a street in series of walls across the city showcased a series of work Brazils most famous duo gitimacy of So Paulos graf- signatures onto a wall two
downtown So Paulo. where selected artists, spon- by Brazils pichadores, as Os Gmeos, identical twin fiti has resurfaced at a par- blocks from City Hall. If you
Since taking office in Jan- sored by private companies, its practitioners are known. brothers who are known for ticularly tense moment in tell a pichador that hes not
uary, the citys multimillion- will be allowed to paint. Mayor Dorias tough poli- their dreamlike paintings of Brazil. The countrys worst allowed to paint somewhere,
aire mayor, Joo Doria, has We are not against urban cies, from cracking down on yellow-skinned characters, recession on record has wid- thats music to his ears.
declared war on the angular art, but it is also in need of bureaucracy to shrinking the
cryptic lettering of pixo (pro- restraint, said Mr. Doria in citys bloated government,
nounced pea-shoe) in one an interview. have won favor in this cha-
of the biggest crackdowns on When graffiti is autho- otic megalopolis of more
graffiti in So Paulo since the rized or commissioned by than 12 million people. But
end of the countrys dictator- the owner of the space it is when city workers in Janu-
ship in 1985. considered a mural, such as ary painted over swathes of
Mr. Doria, who hosted the vast kaleidoscopic im- colorful graffiti in gray on
Brazils version of The Ap- ages created by Eduardo Ko- So Paulos main May 23 Av-
prentice TV show and bank- bra, one of Brazils most fa- enue, considered Latin
rolled much of his own cam- mous muralists. Americas biggest open-air
paign, drawing comparisons Pixo, however, is almost al- mural, protesters blocked
to U.S. President Donald ways illegal and generally part of the avenue. A judge
Trump, introduced a new considered vandalism. Dis- issued an injunction prevent-
anti-pixo law late February tinctive to So Paulo, it con- ing City Hall from painting
in an attempt to eradicate sists of jagged signatures over any more graffiti with-
the practice. Offenders can typically painted in thick out the consent of the de-
now be fined up to 20,000 black lines, reminiscent of the partment for cultural heri-
Brazilian reais ($6,430). tar or piche originally used. tage. Mr. Doria got the ruling
He has also vowed to It was inspired by the letter- overturned 10 days later.
clamp down on more figura- ing of 1980s heavy metal al- Known for being ugly,

The WSJ Daily Crossword | Edited by Mike Shenk

1 2 3 4 5 6 7 8 9 10 11 12 13 56 Sch. whose 23 Results of some
student body is traumas
14 15 16
about 80% 24 Models, say
17 18 19 Hispanic
25 Briefly
57 Spring settings
20 21 26 What an
58 Bright color overworked
22 23
59 Small drinking Senate page
24 25 26 27 28 29 glass might do?
Down 27 House-elf freed
30 31 32
1 Makeup of by Harry Potter
33 34 35 36 many Qing 28 Prince song
37 38 39
dynasty ___ U
carvings
29 Stalwart
40 41 42 43 2 Lena of
31 Nicholas II and
Chocolat
44 45 his predecessors
3 Brooks Brothers
46 47 48 49 50 51 34 Collections of
buy
computer records
52 53 4 Fired up
35 Worth of the
54 55 56 5 Charm theater
6 Walkers cousins 39 Braces
57 58 59
7 Box score figure 41 Play group?
8 Dash lengths
NO RESPECT | By Kurt Krauss 42 Mitt Romney, e.g.
9 Lack of 43 Dodge model of
Across 24 Like the 39 Org. with a ornamentation the 1980s
1 Ides honoree Amazon, of all leaping bunny 10 Like Wildes
rivers logo 45 Costners Tin
5 Flu symptom
9 Warned of
27 Fit perfectly 40 Place of
Salome
11 What an
Cup co-star
46 ___ buco
OPENING 3/23/2017-4/22/2017
30 Cherokee Strip refinement angry babysitter
14 Lion in the Conference 47 Congresswoman
Madagascar 42 Choice bit might do?
Center setting Lowey from New
movies 44 Capability 12 Vent York
31 Weighty
15 Chief 45 Cowboys 13 Lairs for bears 48 Game piece
works
16 2016s The Red quarterback 18 Company that
32 Character from Tony 49 Analogy words
Turtle, e.g. trademarked
Aristophanes? 50 Penetrating
17 What a 46 Away from escalator
33 Zebras kin home? 51 Spot
jealous baron 21 Curiosity on
might do? 34 What an 48 It takes its toll Mars, e.g. 53 Judo level
outspoken
19 Frankincense, teetotaler 52 Prolonged
e.g. Previous Puzzles Solution
might do? attack O H O S A L D A U R B A N
20 Qualifies 36 Flying the 53 What a H E P A T O O L N O I S E
M A E K I T O R B R E A K I T
21 Doesnt keep a rainbow flag, beauty pageant S T N E C H MA O D I A S
S E A R M E I N
straight face perhaps loser might L O V E I T O R H A T E I T
22 No-win 37 Tom and Jerry do? A P I A N D I A N A L A B
R I D S M E Z Z O F I R E
situations? component 54 Biplane piece D U E D A N Z A S E N S E
MO V E I T O R L O S E I T
23 Trumpet for 38 Kaffiyeh 55 Not to P A WN D A R T
Triton sporters AWO L S I T S T I L T S
mention... T A K E I T O R L E A V E I T
OWE N S T I E R U N D O
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

MA R S H A G E S S T E W
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A16 | Thursday, April 6, 2017 THE WALL STREET JOURNAL.

SPORTS
THE MASTERS

How Dustin Johnson Keeps Golf Simple

In age of exhaustive data and analysis, the world No. 1 just aims and swings; fall on Wednesday puts Masters status in limbo
There were times earlier in
BY BRIAN COSTA
Dustin Johnson, left, hits a shot during a practice Johnsons career when Terrell said
round prior to the start of the 2017 Masters. he may have benefited from a
Augusta, Ga. more nuanced approach before a
TAKE A PEEK INSIDE the mind shot. But the upside of Johnsons
of the worlds top-ranked golfer: It mentality has been evident at the
is the Tuesday before the Masters majors he nearly won, never more
last year and Dustin Johnson is so than after the 2015 U.S. Open.
playing a practice round at Au- Johnson had a chance to win or
gusta National Golf Club. His play- at least force a playoff with Jordan
ing partners, Phil Mickelson and Spieth on the final hole, but three-
Bryson DeChambeau, are deep into putted from 12 feet to lose. When
a discussion about the science be- Harmon ran into him afterward, he
hind why uphill putts and downhill said Johnson told him, Man, I
putts break a certain way. played so good today. Im going to
It is highly sophisticated, deeply win one of these.
analyticaland just about the last One year later, Johnson did. His
thing Johnson wants to talk about victory at Oakmont came in spite
on a golf course. of the USGAs controversial deci-
If I hang around you guys sion to inform him during his fi-
much longer, he tells them, Ill nal round that he might or might
never break 100. not be penalized for the slight
No one will ever refer to John- movement of his ball on a green.
son as a golf scientist, as De- The move sparked outrage from
Chambeau has branded himself. He around the sport, and Johnson
will not wax poetic about all the was ultimately docked one stroke,
variables he considers before but he seemed unperturbed.
choosing a club, as Mickelson did To be sure, Johnson may well
recently. He does not mimic the possess more intellect than he
jargon so often used by Tiger shares in public. Besides leading
Woods, who introduced deacti- the PGA Tour in driving distance,
vated glutes into the golf lexicon. he likely leads the sport in brevity
At 32 years old, the defending at news conferences.
U.S. Open champion and winner of Golf Channel analyst Brandel
the past three events he has played Chamblee said there is a cerebral
in, Johnson is unique in his ability element to Johnsons game. John-
to reduce golf to a simple task. son, Chamblee said, can look at his
See ball, hit ball, said Claude lie and immediately imagine the
Harmon III, Johnsons instructor. shot he needs to hit to fit the hole
He plays the game, as opposed to location, and then tailor his swing
thinking about whats happening. accordinglyand quickly.
ANDREW REDINGTON/GETTY IMAGES
Whether Johnson plays this week Thats an athletic genius that is
was suddenly thrown into question of intelligence or lack of caring now between, youre constantly trying It records more than two dozen really underrated, Chamblee said.
Wednesday afternoon after he took looks more like a virtue. to overthink things and then ques- data points ranging from the spin At the very least, Johnson was
what his agent described as a seri- When Johnson was struggling tion it, Mickelson said. rate of the ball to the speed of the smart enough to know where he
ous fall on a staircase in his Au- to crack the sports upper echelon, The latter is not an issue for club head. Some delve into the an- needed to get better and diligent
gusta rental home. The agent, Da- the same trait was often cited as a Johnson. He described his thought alytics more than others. When he enough to work at it. The biggest
vid Winkle, said Johnson landed shortcoming. A British newspaper process before he takes a shot as: missed the cut at the 2015 British difference-maker has been im-
hard on his lower back and was on once described him as having a Get the yardage distance from the Open, Woods said he would need provement in his wedge play,
medication in the hope of still mak- bag of cement for a brain. But hole, aim and picture the shot. to check his spin rates for clues as which has helped him take better
ing his 2:03 p.m. Thursday tee time. Johnsons ascendance has cast his Its not too much, he said. I feel to why he was struggling. advantage of his power off the tee.
When Johnson was struggling to mental approach in a different like when its going well, its that Alan Terrell, who coached John- When hitting from the fairway in-
crack the sports upper echelon, the light. What was once seen as a simple. When its not going well, it son at Coastal Carolina University side 125 yards, Johnson has left
same traits that helped make him a lack of intelligence or lack of car- gets a little more complicated. and still works with him informally, his approach shots this season an
Masters favorite were often cited ing now looks more like a virtue. The difference between him and said Johnson understands all the average of just inside 16 feet from
as a shortcoming. A British news- Mickelson said the most analyti- many other players can be seen numbers but is really only inter- the hole, more than two feet closer
paper once described him as having cally savvy players can give them- even before he tees off. On the ested in one: total yards carried. than he left such shots two years
a bag of cement for a brain. But selves an advantage over their practice range, many players have He wants to know how far the ball ago. But he mostly leaves the num-
Johnsons ascendance has cast his competitors. But if a player isnt in embraced the use of TrackMan, a is flying, and thats about as techni- ber-crunching to others.
mental approach in a different that mold, he said it is better to be radar monitor that records the cal as it gets, Terrell said. He The less he thinks, the better,
light. What was once seen as a lack the polar opposite. Anything in launch conditions of every ball hit. doesnt have a long attention span. Harmon said,

HEARD ON MINOR-LEAGUE HOCKEY

THE FIELD
LESS VIOLENT HOCKEYALSO LESS POPULAR
BY REBECCA DAVIS OBRIEN

ROB MCCAIG was a fan favorite

during most of his career skating
for 16 minor-league hockey teams
in the U.S. and Canada.
When an opponent took a cheap
shot at a teammate or even some-
times if play just got sluggish, Mc-
Caig said, I would get a tap on
the shoulder, go on out and rattle
someones cage.
The defenseman enforcer, who
played through the 1990s and into
U.S. Womens Team the early 2000s, says it wasnt un-
common for more than 11,000 fans
Reaches a Pay Deal to pack the Cajundome in Lafayette,
After more than a year of in- La., to watch him slug it out. In his
tense negotiations and litigation, 1995-1996 season with the Louisiana
HECTOR ACEVEDO/ZUMA PRESS

U.S. Soccer and the association rep- IceGators, McCaig earned 512 pen-
resenting the Womens National alty minutes in 59 games, an all-time
Team reached a deal for a new col- record for the AA-level ECHL league.
lective bargaining agreement. Today, though, McCaig might
The deal comes a year after the not be able to make a roster.
womens team filed a complaint Forty years after the Paul New-
with the Equal Opportunity Employ- man film Slap Shot immortalized
ment Commission demanding to be the rough-and-tumble world of mi-
paid on equal footing with the U.S. nor-league ice hockey, the sport Average regular-season attendance in the ECHL has declined 20% from the 1996-97 season, from 5,273 to 4,213.
mens national team. has changed directions: It is more
Under the new agreement, polished, less pugnacious. The course of the last 15 years, and in NHL teams to develop young talent the team warms up in capes.
which lasts through 2021, covering game is faster and more artful, many cases its not been a positive and stash players. Since 2010, all 30 We are in the hockey business,
the 2019 World Cup and the 2020 which helps attract corporate evolution, said Michael Franke, teams in the American Hockey but we are selling entertainment,
Olympics, the soccer federation will sponsors and makes the minors a whose family has owned the Fort League have affiliations with an NHL Cheek said. Despite the teams
pay NWSL salaries for national better pipeline to the big leagues. Wayne Komets for 27 years. team, and some share ownership. growing pains, he thought the
team players who commit to play- The decline in violence also re- Franke likened minor-league It really is a true developmental league had a bright future.
ing in the league, improve the qual- flects the heightened concerns hockeys woes to those of Nascar, league, said Brian Cheek, co-owner ECHL Commissioner Brian
ity of travel, give the players the about concussions, which are espe- another sport with a blue-collar of the Manchester Monarchs, an McKenna says the league made a
rights to market their likenesses, cially acute in hockey after the fan base that is increasingly disen- ECHL expansion team in New Hamp- conscious decision about 15 years
provide higher pay for participation deaths of several enforcers were chanted. The physicality of the shire. We just feel like thats the ago to focus on development over
in national team games, as well as linked to head trauma. sport is nowhere near what it used best way for hockey to develop. just entertainment.
the opportunity to win more bonus Yet attendance is down across to be, Franke said. Cheek, along with friends from Theres certainly a certain por-
money, plus additional support for most leagues and most of the In the Komets league, the college and business school, tion of the audience that enjoys fist-
maternity and child care. The two teams arent profitable, leading ECHLformerly known as the bought the Monarchs in 2016 from icuffs, McKenna said. The style of
sides didnt release specific details some to wonder if the minor- East Coast Hockey Leagueaver- AEG Worldwide, the entertainment play changing may turn off some
of the compensation increases, league game has lost its way. At age regular-season attendance has and sports conglomerate that also fans, but I think by the same token it
though the women will get the least 16 teams in the ECHL alone declined 20% from the 1996-97 owns the Los Angeles Kingsthe opens up a huge potential audience.
same per diem pay as the men do. have folded in the past 10 years season, from 5,273 to 4,213. Aver- NHL team with which the Mon- Several owners echoed this, say-
Womens players had been paid due in part to financial difficulties age attendance is down each of archs are affiliated. He declined to ing they were focused on family-
$72,000 to appear in 20 exhibition stemming from dwindling atten- the past four years. say how much they spent on the friendly fun.
games per season, with victory bo- dance and corporate sponsorship. Many argue it is no coincidence team, but said it was in line with On the other end of the spec-
nuses taking that up to a maximum The latest casualties are the Elm- that fighting is also down mark- expert estimates of between $2 trum, the Fort Wayne Komets regu-
of $99,000. The men, received a ira Jackals, in western New York, edly. In the 1995-96 season, ECHL and $4 million, including a $1 mil- larly boast the ECHLs best atten-
minimum of $5,000 to play in each who announced in March that they teams averaged 92 major penal- lion ECHL franchise fee. dance, with more than 7,000 people
SCOTT HALLERAN/GETTY IMAGES

game, regardless of the outcome. would fold after this season ends on ties. In the 2015-16 season, the av- Cheek acknowledged that run- in the stands. They also have
Win bonuses for the men can reach April 8. After years of ownership erage was less than half that ning a small-town hockey team is among the most penalty minutes,
more than $17,000 per game. turnover and mounting debt, county amount, 42.5 major penalties. a challenging businessMan- the result of a directive to get guys
In a joint statement, the two sides officials assumed ownership of the Blame the National Hockey chester has languished near the who will put it on the line and en-
said, We are proud of the hard work Jackals last year, but couldnt sup- League for at least some of the bottom in league attendance. The tertain our fans, Franke said.
and commitment to thoughtful dia- port the costs of the team. changes. While the minors used to team has experimented with pro- The Komets are the only ECHL
logue reflected through this process. Theres been a major evolution be a home for burnouts and brawl- motional efforts at the arena, in- team without a formal affiliation
Matthew Futterman in minor-league hockey over the ers, they are increasingly used by cluding Superhero Nights, when with teams in the NHL or the AHL.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
The Trump Tweets
Asked during
an interview
with the Fi-
nancial Times
whether he
regretted any
of his tweets,
WONDER
President
LAND
Trump said,
By Daniel
I dont re-
Henninger
gret any-
thing. He
said Twitter is part of the rea-
son he made it to the White
House and on balance the
tweeting is worth it: You
know if you issue hundreds of
tweets, and every once in a
while you have a clinker,
thats not so bad.
Mr. Trumps deputy press
secretary, Sarah Huckabee
Sanders, complained on Fox
News Sunday that the me-
dias coverage doesnt reflect
the reality of the new presi-
dency: The media constantly
wants to talk about something
that doesnt exist instead of
something that does. She
said, Weve spent the last
couple of months doing major
policy initiatives and rollouts
in the forms of executive or-
ders, rolling back regulations,
creating an environment
where businesses are confi-
dent in hiring again.
All of this is true, not least
Mr. Trumps belief that Twit-
ter helped him into the Oval
Office. Back then, Mr. Trumps
tweets drew free-media atten-
tion to himself and his shoe-
string campaign. The tweets
destabilized his opponents,
notably Hillary Clinton, who
over-focused on him at the ex-
pense of her own message.
The tweets rallied the Trump
base and held it together
A Presidential Honeymoon From Hell
By Karl Rove
I
t may be hard to tell, but
Donald Trump is still in
the period of his presi-
dency typically regarded as the
honeymoon. This is when new
administrations maximize
early successes to harvest po-
litical capital. Yet aside from
this weeks likely confirmation
of Judge Neil Gorsuch to the
Supreme Court, Mr. Trumps
first 100 days have been domi-
nated by needless controver-
sies and stalled initiatives. The
White House needs a course
correction.
No president gets every-
thing right from the beginning.
Remember the Bay of Pigs?
But good presidents learn from
early mistakes and step up
their game.
Mr. Trump should start by
understanding the poll num-
bers. Around 40% of Ameri-
cans approve of his perfor-
mance in office, while 53%
disapprove, according to the
Real Clear Politics average. No
other president has had num-
bers this low this early.
The 70-year-old is sur-
rounded by aides who want to
let Trump be Trump. Fair
enough: He wont stop tweet-
ing, but he should at least fo-
cus his early-morning missives
on governance. Last week he
did this effectively by drawing
attention to a New York Times
report about ObamaCare. In
places where no insurance
company offers plans, the
story said, there will be no
way for Obamacare customers
to use subsidies to buy health
The Arab Boy on the Israeli Tennis Team
By Fahoum Fahoum
T
ennis changed my life.
Growing up as a Pales-
tinian citizen of Israel, I
struggled with an identity cri-
sis, feeling caught between two
worlds. But when I was 8, I
started playing tennis in Haifa.
Eventually I became the first
Arab Muslim on the Israeli ju-
nior national team, represent-
ing the country in European
and world championships.
This was a personal suc-
cess. More important, though,
it gave me a platform for
building bonds with Jewish
youth. The tennis court was
an island where everyone felt
like they belonged. My team-
mates and I embraced the
same identity. I built trust
with my doubles partner and
the people on the other side
of the net, too.
Once my parents realized the
sports potential to bring peo-
ple together, they established
when he had virtually no
ground game. In the cam-
paign, the tweets produced a
positive outcome.
In his presidency, though,
Mr. Trumps tweets are pro-
ducing the opposite result.
They have become presiden-
tial speed bumps.
This time, the tweets are
drawing attention to himself
as a president in permanent
tension with two major Amer-
ican institutions: the U.S.
press and the intelligence
community. His furious, highly
charged tweets about them
produced a reaction. Both in-
stitutions are now in active
opposition to his presidency,
especially the media.
The ancient advice, dont
pick fights with people who
buy ink by the barrel, is still
true. The mediaprint, televi-
sion, the webbuy time with
the public by the petabyte.
Every Trump tweet produces
media pushback as negative
coverage or snark at an over-
whelmingly anti-Trump ratio.
Tweeting Sleepy Eyes
Chuck Todd incentivizes ev-
ery decision-maker at NBC to
put anti-Trump reporting at
the top of its hourly-news
budget across the network.
Where is the upside?
Mr. Trump has many sym-
pathizers in his fight with the
media. But for every president
back to Lyndon Johnson, this
is like waging battle with the
tides. Repetitive negative pub-
licity on this scale will sup-
press the Trump message and
agenda.
Mr. Trump has a point
about the medias microscopic
coverage of the Russia collu-
sion story and its disinterest
plans. The presidents tweets
can educate millions. Why not
keep them substantive?
Maybe Mr. Trumps top ad-
visers should take turns re-
viewing his tweets in advance.
The president might not wel-
come this, but tweaking his
messages has become vital.
The public now knows that
President Obamas national se-
curity adviser, Susan Rice, un-
masked the name of at least
one Trump transition official.
This should be a time
to notch early wins.
But Trump is stalled
and distracted.
Investigators in Congress are
unlikely to find collusion be-
tween Vladimir Putins spy ap-
paratus and the Trump cam-
paign, but likely to reveal
mishandling of intelligence by
Obama officials.
Mr. Trump should move on,
saying simply that he is happy
lawmakers are investigating
and looks forward to their re-
port. A day of vindication is
probably coming, but this
story has become a distrac-
tion.
Mr. Trump should stop
blaming his predecessor. It
was tiresome when President
Obama did it and made him
look weak.
The president should stop
raising expectations. Islamic
State will not be defeated
quickly. ObamaCare will not be
the Coexistence Program at
the Israel Tennis Center in
Haifa. It introduced young Ar-
abs and Jews to the game,
while transforming on-court
partnerships into off-court
friendships. The program,
which began in 2001 with
Sports can change the
worldas they did my
lifeby helping us see
each other differently.
around 10 children, now oper-
ates nationwide with hundreds
of participants.
When I was growing up, Is-
raeli high schools and colleges
did not have organized sports.
But Americans know well the
power of sports, as I learned
when I came to Quinnipiac Uni-
versity in Connecticut on a ten-
nis scholarship. Even though
OPINION
in the Obama White Houses
abuses of U.S. intelligence. But
the intensity of his tweets
against the failing New York
Times, the dishonest Wash-
ington Post and CNNs fake
news is mainly increasing au-
dience size and political mar-
ket share for the medias ver-
sion of these events.
Twitter helped him
win the White House.
Now Twitter may
cause him to lose it.
The campaign tweeting de-
stabilized Mr. Trumps Repub-
lican primary opponents. The
presidential tweeting is desta-
bilizing people who are on his
sidein Congress, in the gov-
ernment and in the military.
The Trump change presi-
dency, running hard on multi-
ple fronts, was inevitably go-
ing to produce a big Beltway
counteroffensive. The tweets
disrupt the momentum of the
people who are executing his
plans and his legislative
agenda.
The Trump White House
doesnt put much stock in the
Gallup polls daily tracking of
the presidents approval rat-
ing, but its fall below 40% is
almost entirely the result of
public anxiety driven by nega-
tive static.
As former presidents know,
falling steadily downward in
public approval causes some
House members and senators
to distance themselves from
the White House. With so
many hard votes coming up,
repealed and replaced easily.
Mr. Trump is not the greatest
jobs producer that God ever
created. The strategy should
be to underpromise and over-
deliver.
Mr. Trump should stop at-
tacking fellow Republicans,
too. Punching down at the
Freedom Caucus makes it
more difficult for its members
to support him on issues like
the debt ceiling and tax re-
form. Better to express disap-
pointment than angerand to
do it privately.
Constant leaks suggest that
the White House staff is riven
by division and disunity, with
three feuding tribes: the
Trump family and its allies,
populist disrupters led by
Steve Bannon and Stephen
Miller, and everyone else. The
president should try to dimin-
ish infighting by encouraging
unity of purpose, while main-
taining diversity of opinion.
Mr. Trump wont boost his
staffs morale by blaming them
for recent setbacks, as leaks
from the West Wing indicate
he has done. That causes aides
to hunker down and leads to
more finger-pointing, acrimony
and distrust. At moments like
this, a president must buck up
the people around him by own-
ing the missteps.
While reports from White
House visitors suggest that the
policy-making process has got-
ten less ragged than it was in
the administrations opening
weeks, much more structure is
still needed. The president
should regularly block off sub-
stantial time on his calendar
my teammates and I came
from different corners of the
world, we were all Bobcats. So-
cial psychologists have a name
for this phenomenon of a
shared, complex identity. They
call it a superordinate iden-
tity.
Playing sports can help re-
frame a conflict. It builds the
groundwork for cooperation by
putting teammates in the same
boat. To paraphrase the late
Morton Deutsch, a professor at
Teachers College, Columbia
University, this creates a posi-
tive interdependence: If you
swim, I swim, and if you sink, I
sink. It galvanizes people to do
what is best for the team. If an-
other player is in a better posi-
tion to score than you are, you
will pass the ball.
Sports recognizes no lan-
guage barriers. Drop a soccer
ball into a group of kids in Is-
rael, South Africa or Ireland,
and watch what happens.
There will be no need for an
that small distance could de-
termine whether he wins or
loses.
After the election, the
Democrats were confused and
on defense. The political
storms erupting after Mr.
Trumps tweet storms have
energized the defeated Demo-
crats, whose candidates are
raising hundreds of thousands
of dollars for 2018 from small
donors on the internet.
During the primaries, the
Trump base emerged as a
solid 30%. It will never aban-
don him. But as president, the
arena of battleon taxes,
spending and infrastructure
has moved unavoidably to
Washington, where the Trump
base is a less potent factor.
Mr. Trump is right. Twitter
helped him win the presi-
dency. But the net-negative
effects of the presidents
tweets are eroding his
chances for success in Wash-
ington, where every victory is
won at the margin.
The president should step
back from tweeting and as-
semble a professional, Trump-
ian team to handle his public
relations. If his presidency
fails, historians of the Trump
presidency will record that
Twitter raised him up, and
Twitter brought him down.
i i i and shows which traits infinity
Correction: Last weeks col-
umn stated that Republican
Rep. John Faso of New York
signaled his intention to vote
against the Trump health-care
reform bill. The good news is
that Mr. Faso, who defeated
progressive Zephyr Teachout
in 2016, stood his ground and
publicly supported the bill.
Write henninger@wsj.com
for policy briefings, preceded
by meetings during which the
principals can frame the de-
bate for him. Potential deci-
sions should be put on paper
and circulated through senior
staff for comment. There
should be some forum to
achieve consensus on what to
focus on when, and for how
long.
Its dangerous to have people
whose only job is to advise the
president, since this encourages
aides to end-run or short-cir-
cuit any formal policy process.
Better to make these people di-
rectly responsible for helping to
execute decisions.
The White House should
host fewer events so that it can
go deeper into each issue it
wants to draw attention to. The
constant rush of appearances,
tweets, rallies, interviews and
photo-ops is good for cable
television, but it could burn out
the staff and stretch the presi-
dent too thin.
Moreover, this all seems a
jumble to most Americans. The
avalanche of news generated
by this White House could ex-
haust people, causing them to
lose interest and confidence.
When his approval rating is
below 40%with softening
support among even Republi-
cansthe last thing Mr. Trump
should want is for Americans
to turn off and tune out.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of The Triumph of
William McKinley (Simon &
Schuster, 2015).
introduction, let alone an ex-
planation of the rules. Instead
players communicate using
their bodies within an estab-
lished system of rules that
makes them speak soccer
fluently. Just as sports altered
my path, it has the power to
change the world.
Thats why the United Na-
tions has declared April 6 the
International Day of Sport for
Development and Peace. Ath-
letics can provide entertain-
ment and exercise, yes, but
also so much more. It can be
used as a tool for tackling so-
cial issuesfighting obesity,
empowering women, integrat-
ing refugees or promoting
peace. Sports are more than
mere games. Theyre essential
to the healthy transformation
of society.
Mr. Fahoum is a graduate
of Columbia Universitys mas-
ters program in negotiation
and conflict resolution.
Thursday, April 6, 2017 | A17
BOOKSHELF | By Sam Kean
The Neverending
Story
Beyond Infinity
By Eugenia Cheng
(Basic, 284 pages, $27)
I
nfinity is one of those concepts that, depending on which
facet youre contemplating, can leave you with either a
feeling of rapture or a splitting headache. Paradoxes and
frustrations abound, and basic concepts like addition and
subtraction get warped in unsettling ways. But if you have
the right mind-set, as Eugenia Cheng does in Beyond Infin-
ity, the oddities become a part of the pleasure.
Near the start of the book, Ms. Cheng, a British mathema-
tician who lives in Chicago, gives a perfect example of why
we need to tread carefully with infinity. Laypeople generally
know infinity as the largest possible number, one so gigantic
that adding anything to it cant make it bigger in any mean-
ingful way. (Sort of like adding a measly buck to the U.S. na-
tional debt, only much more so.) Mathematically, youd de-
scribe that trait as follows: infinity + 1 = infinity. That
equation conceals a trap, however: If you subtract infinity
from both sides, you get 1 = 0. Clearly thats wrong, but its
hard to pinpoint exactly what went awry.
Understanding the prob-
lem here involves several
steps. First, we need a better
grasp on what infinity iswe
need to define it. To this end,
Ms. Cheng introduces several
different categories of num-
bers (natural numbers, ratio-
nal numbers, real numbers)
shares with each of themas
well as, crucially, which traits
it doesnt.
Anyone who took much math
in college will probably find the
ideas in these chapters quite famil-
iar. But Ms. Chengs chatty tone keeps things
fresh. She has a knack for folksy analogies, and at different
points in the book she illuminates different properties of in-
finity by discussing Legos, the iPod Shuffle, snorkeling, Bat-
tenberg cakes and Winnie-the-Pooh. (My favorite aside of
hers involved birthday candles. If you ever run short of them
on a cake, you can always light them in binary, with lit can-
dles for 1, unlit candles for 0. Given human life spans, youll
never need more than seven.)
After defining infinity, Ms. Cheng goes on to examine
what we really mean when we speak of operations like addi-
tion and subtraction and even counting. Now, these topics
might seem rudimentary at first, to the point of banality.
But as she breaks these ideas down, it becomes clear that
addition and subtraction simply dont work the same way
with infinity. For instance, we all know that 2 + 5 = 5 + 2, be-
cause you can add normal numbers in any order. But with
infinity, thats not true. Its a so-called ordinal number,
meaning that its position in an equation matters. As a result,
infinity + 1 does not equal 1 + infinity. Along those same
lines, you cant simply subtract infinity willy-nilly from both
sides of an equation the way you can with, say, 3 or x. Its a
testament to Ms. Cheng that, by the time you reach this
topsy-turvy conclusion, it seemswell, not quite intuitive;
nothing with infinity is that easybut quite sensible. Theres
no greater frisson in mathematics than feeling something
obscure suddenly click inside your brain, and this happened
to me several times while reading this book.
In theory, you can take a bowl of cookie
dough and produce a series of cookies that,
collectively, have infinite surface area.
Once we have a handle on infinity, its play time, as Ms.
Cheng explores all the wild things that mathematicians can
do with this toy. She mentions several times how much she
enjoys baking. (Her first book was titled How to Bake Pi.)
And believe it or not, she demonstrates here that you can
theoretically take a bowl of cookie dougha finite vol-
umeand produce a series of cookies that, collectively,
have infinite surface area. Most of the cookies wont be
very large, mind youvastly smaller than a single chocolate
chipbut the math checks out. You can find the infinite
lurking even in your oven.
As an even stranger example, consider this: If you make a
list of all the counting numbers (1, 2, 3, 4 . . . ) and a second
list of all the even counting numbers (2, 4, 6, 8 . . . ), it
seems obvious that the former should be longer. After all,
the first list includes all the even numbers plus the odds. But
no. It turns out that, given the definition of infinity, there
are exactly the same number of counting numbers overall as
there are even counting numbers. As Ms. Cheng explains (by
invoking the matching of celebrities with dancers on Danc-
ing With the Stars), every number in the first list can be
paired off with one in the second list, just by multiplying by
two: 1 goes with 2, 2 goes with 4, and so forth. Thus the two
lists are the same size. In fact, by identical logic, there are
the same number of counting numbers as there are numbers
that end in 0 (10, 20, 30 . . . ) or that end in fifteen 0s. Each
one of those lists is infinite and therefore equal.
Thats not to say that all infinities are alike. Irrational
numbers, like pi and e, have decimal expansions that never
repeat and never terminate: 3.1415926 . . . And if you tot up
all the irrational numbers, there are more of them than
there are plain counting numbers. In other words, there are
more than infinity of them. That seems like an oxymoron:
Infinity is the biggest possible thing ever. So how can this
number be larger than infinity? But in fact theres a whole
hierarchy of infinities, each one greater than the last. Had
Lewis Carroll lived a little later (he was a mathematician
and logician in daily life), you get the sense that he would
have delighted in such paradoxes.
Several times in Beyond Infinity, Ms. Cheng admits that
shes something of a coward physically, terrified at the
thought of hang gliding or sky diving. But she proves fear-
less in leaping off the mathematical precipices that arise
with infinity. Above all, she does a great service by showing
us non-mathematician schlubs how real mathematical cre-
ativity works. Surprisingly, progress doesnt always require
thinking up new and horrendously complicated equations
sometimes rethinking basic concepts like addition or count-
ing can open up whole new vistas. And from this point of
view, the title of the book seems like something of a misno-
mer. We dont necessarily have to get beyond infinity to ap-
preciate it; getting close is already pretty amazing.
Mr. Keans latest book is The Tale of the Dueling Neuro-
surgeons: The History of the Human Brain as Revealed by
True Stories of Trauma, Madness, and Recovery.
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A18 | Thursday, April 6, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Californias Wasted Winter Rains Shakespeare Who? We Need an Arthur Miller

R
eservoirs and rivers are overflowing as environmentalists want to revive require cool Regarding Heather Mac Donalds Should we be concerned about one
storms have pounded California this temperaturesmeaning more waterto spawn Does Harvard Consider Oscar Wilde undergraduate course that exposes
Marginalized? (op-ed, March 31): As students to alternative works that
winter, and after years of drought that and survive. Government biologists are spend-
a Harvard graduate and English major, would otherwise go unknown? The
should be good news. The ing millions of dollars to truck I am saddened to see that many great great works of literature are readily
problem is that misguided en- The drought is over but (literally) salmon around the Western civilization poets and authors available on the most accessible
vironmentalism is wasting the the greens keep sending valley while trying to calibrate will be replaced by authors who have shelves for the rest of a students life.
water windfall and failing to optimal temperatures and wa- been marginalized. Future English Harvard does well to spend a few
store it for a non-rainy day. the water out to sea. ter flows. Yes, these salmon majors wont be exposed to many hours a week for one semester expos-
Hydrologic records indi- have chauffeurs. great poets and writers in favor of ing students to works they will not
cate that this year could be Last September the State writers who have been marginalized find so readily available ever again.
the wettest on record in California. Statewide Water Resources Control Board proposed limit- due to racism, patriarchy and heter- CHRISTIAN DURSO
snowpack measures 160% of average. Precipi- ing the amount of water that farmers and cities onormativity. This effort is consistent Los Angeles
tation in Palm Springs exceeds the historic in the north could use from three tributaries with the elimination of the law school
crest because it was considered racist Setting up a tribunal to sift through
norm by more than 50%. Lo, the desert is actu- that feed into the San Joaquin River in order
and the elimination of several Mark the narratives of human experience to
ally blooming. Most of the major reservoirs to boost the Central Valleys fall-run Chinook Twain works for the same reason. settle social-justice scores is worthy
in the north are full, and some are releasing salmon population, which numbers 750,000. I was not aware that the social or of an Arthur Miller tragedy.
hundreds of billions of gallons of water to pre- The plan would reduce water available to farm- economic status of an author deter- TOM OHARE, PH.D.
vent flooding and make room for the melting ers and cities by 250,000 acre-feet on average mined the value of what was written. Boston College
snowpack this spring. annually and 500,000 acre-feet during dry Recently, Harvard has been involved Boston
While farmers and communities downstream years. If all goes according to plan, the salmon with issues that have nothing to do
can capture some of the discharges, millions of population could increase by 1,103. with educating students. Justice of Harvard, if you do go ahead with
acre-feet will invariably flow into the ocean due The affected communities including the Bay reparations and attempts to control this required class, be sure to keep the
to lack of storage capacity and rules to protect Area are represented by Democrats and enjoy private clubs are two. I would suggest rite of passage Shakespeare course;
endangered fish species. One problem is that senior water rights. So theyve been less vulner- that Harvard concentrate on remain- your students will have internalized
ing the great academic institution it the meaning of coming across some-
while the state population has increased 70% able to regulatory cutbacks that have parched is. If not, it is the students who will be thing full of sound and fury, signifying
since 1979, storage hasnt expanded. Water dis- farmers in the south. While the state boards marginalized. nothing.
tricts in southern California have developed plan would cause more farmland to be removed GERARD J. CASSEDY JR., B.A. 61 MATTHEW ARIAS
small local reservoirs and groundwater basins, from production, the main casualties would be Ponte Vedra, Fla. Austin, Texas
but whats most needed is storage in the north low-income and Hispanic communities like
where most of the rain and snow falls. Merced that rely on groundwater recharged by
The Public Policy Institute of California es- the tributaries.
timates that five proposed reservoirs could Whats especially ironic is that all of the wa- Forfeiture, a Useful Tool, Needs More Reform
add four million acre-feet of storage capacity ter diversions intended to benefit the environ-
at a cost of $9 billion. Yet environmentalists ment may be causing irreparable environmental Mississippis Forfeiture Reforms gation involving dozens of suspects
as described in your March 25 edito- may go on for years with world-wide
have opposed every significant surface stor- damage. Communities and farmers have drilled
rial may work in Mississippi but not wires and computer monitoring. It
age project for three decades. The state is deeper wells and pumped more groundwater to at the federal level. may be possible to cut off part of an
even razing four hydroelectric dams on the compensate for reduced imports from the delta, There are good reasons to have the investigation to seize certain assets
Klamath River that green groups complain im- leading to severe land subsidence. ability to judicially proceed against for forfeiture while keeping the re-
pede fish migration. A recent report by the California Department property separately from the suspect. maining larger case covert. In this
Ah, the fish. Regulations intended to protect of Water Resources found that the San Joaquin Every year criminals are fined hun- type of instance, having separate
smelt and salmon have limited pumping at the Valley is sinking at a rate of nearly two inches dreds of millions of dollars that are cases for individuals from civil cases
Sacramento-San Joaquin River Delta. As a re- per month in some areas. Land around Corcoran never collected. If the drug-business- for property is advantageous to the
sult, some seven million acre-feet of water that dropped 22 inches between May 2015 and Sep- related assets arent seized before or government.
was once available for Central Valley farmers tember 2016, complicating engineering work on at the time of the arrest of an individ- The key, though, is that civil cases
and Southern California is flushed into San the states bullet train. Subsidence has also re- ual, they will never be found, seized for property seized in connection with
and forfeited. It only takes one tele- a criminal investigation should require
Francisco Bay each year. duced the carrying capacity of the California
phone call for an arrested drug traf- the same level of proof as that for
Meanwhile, a 60-mile dry riverbed on the Aqueduct, which delivers water to Southern ficker to tell his spouse or attorney to criminal cases, which is proof beyond
San Joaquin River that hasnt borne fish since California, by 20%. wire transfer $100 million from one a reasonable doubt, not the lower pre-
the 1940s is being restored at a cost of $1.7 bil- California has an arid climate, and parched bank to another. ponderance of evidence standard in
lion to farmers and state and federal taxpayers. times will return, which is all the more reason A criminal case, by its very nature, use for civil forfeitures today.
The river restoration is expected to divert an to take advantage of the wet years. That greens goes slower than does a case against STEVEN MARTIN, CPA
additional 170,000 acre-feet each year, but it and politicians wont do so suggests they al- property. Also, property at times re- Richardson, Texas
could be more since the Chinook salmon that most wish for permanent drought. quires immediate attention, such as Mr. Martin is a retired DEA supervi-
with race horses, a ranch, farm or a sory special agent of an asset removal
business. A large international investi- group.
The Man Who Knows Too Much
P
oliticians arent always as dumb or cyni- ics office, and to be an impartial and indepen- Excising Rebel Ghosts and Reconciliation, Too
cal as they sound, but you wouldnt dent advocate for the public health. Regarding Danny Heitmans Amid young men die. This is not a unifying
know that from Wednesdays confirma- The irony of the claim that Dr. Gottlieb can Toppled Confederate Statues, Andrew message.
tion hearing for Scott Gott- be bought by the industry is Jackson Stands Tall (Cross Country, Rather, though this postwar recon-
lieb. Democrats criticized the Democrats fret that that pharmaceutical compa- March 25): In removing the statues of ciliation did not absolve anyone for
nominee to run the Food and Scott Gottlieb is too nies wont be thrilled by some Lee, Davis and Beauregard from their slavery or racism (for which the en-
Drug Administration for the of his priorities. One is in- places of honor, the leaders of New tire country shares guilt), its monu-
conflict of interest of know- expert for the FDA. creasing generic drug compe- Orleans will do a great disservice to ments should remind us that we
ing too much about the indus- tition: On Wednesday he of- their city and to our country. Americans could once forgive, and
Though many symbols of the Con- forgive a lot. Their preservation offers
tries hed regulate. fered a tutorial in how
federacy were hijacked by those ad- hope that we still can. Coming out of
Washington Senator Patty Murray and other companies exploit regulatory barriers to compe- vancing white supremacy, those who one of the most divisive elections
Democrats devoted most of the morning to agi- tition for their commercial advantage. Sounds funded these statues a century or since that of 1860, this is the message
tating about Dr. Gottliebs unprecedented fi- like something ol Bernie should like. more ago had another motivation. our nation needs to hear. If we reject
nancial entanglements because he has con- Another ugly charge is that Dr. Gottlieb The Civil War memorials that dot the the symbols by which we made peace
sulted for various companies and invested in wont address the opioid crisis because he has eastern half of the U.S. (North and from one civil war, we risk another.
health-care start-ups. Rhode Islands Sheldon worked with companies that produce painkill- South) are the public celebration of JOHN H. SCOTT
Whitehouse flopped in with a strange remark ers. Yuphe wants to take a pay cut and sub- how Union and Confederate veterans Houston
about dark money operations, which is an ject himself to bureaucratic hassles so he can and their families united to eulogize
amusing way to describe financial disclosures peddle pills to addict more Americans. Who their 700,000 dead. To remove such George Washington had twice as
available on the internet. writes this stuff? In fact, Dr. Gottlieb called monuments in a fit of confront-white- many slaves as Andrew Jackson.
privilege pandering is to repudiate a When they topple the Washington
Bernie Sanders, never one to be hamstrung opioid abuse a public emergency on the or-
reconciliation of a centurys standing. Monument, I hope the debris doesnt
by knowledge, tweeted Wednesday that it was der of Ebola and Zika and suggested an all- It tells the descendants of Confeder- damage the White House lawn that
a disgrace to have an FDA commissioner who of-the-above strategy that would include in- ate soldiers that a generation of their sits less than 1,000 feet away.
has taken money from drug companies. These venting less addictive painkillers and better families deserved to see a third of its RICHARD STEGEMEIER
are the same committee Democrats who pum- patient care. Anaheim, Calif.
meled Betsy DeVos for not having enough expe- Dr. Gottlieb has written lucidly about how
rience in public education. FDA can unleash innovation without compro- For Too Many, Ryans Bill
Dr. Gottlieb disclosed his work in accordance mising public safety, which he rightly calls a Wasnt the Right Answer Security Through Obscure,
with government rules and will liquidate his in- false dichotomy. Democrats once believed in Obsolete Military Computers
vestments. He agreed to recuse himself for a expertise, and if they cared about delivering Regarding Daniel Henningers
The House Un-Freedom Caucus Mackenzie Eaglens Rebuild Our
year on decisions relevant to his past interests. cures for patients as much as they fret that
(Wonder land, March 30): The idea Defenses for the Information Age
He also promised Wednesday to follow direc- someone is making a profit, theyd confirm Dr. that somehow the Freedom Caucus (op-ed, March 22) reminds us that we
tives from the Health and Human Services eth- Gottlieb in a millisecond. endangers the GOP majority by stop- are critically vulnerable. Not to lessen
ping a health-care bill with 17% pub- the writers point, those Pentagon
lic support (per Quinnipiac) is a systems still using 40-year-old 8-inch
Late Hit on Neil Gorsuch laugh. Yes, I saw the reported town- floppy drives may be the most secure

D
emocrats havent found a weakness in
Supreme Court nominee Neil Gorsuch,
and not even a filibuster seems likely
to stop his confirmation. But opponents will try
anything, and late Tuesday they used some will-
ing media outlets to claim that a handful of sen-
tences in his book and dissertation were similar
enough to suggest plagiarism.
Politico reportsbased on documents pro-
vided to Politico, you can guess by whomthat
in his book, The Future of Assisted Suicide and
Euthanasia, Judge Gorsuch used another au-
thors words to describe Down syndrome and
a condition known as esophageal atresia with
ing primary sources when attributing portions
of his writing, rather than citing secondary
sources. But primary sources are an approved
method of citation in academic publications.
Judge Gorsuch describes Derek Humphry, a
founder of the Hemlock Society and advocate for
voluntary euthanasia, in similar terms as a book
on the euthanasia movement written by Ian
Dowbiggin, but he credits books by Rita Marker
and Sue Woodman as the primary sources.
Politico rolled out some left-leaning academ-
ics to call this and a couple of other examples pla-
giarism, but this is thin soup. Someone subjected
every word in all of Judge Gorsuchs more than
hall meetings packed with GOPers
ostensibly upset about repealing the
Affordable Care Act. I dont buy it.
To whom exactly is the GOP
(Speaker Paul Ryan) catering and
with whom is it compromising? We
need to see a fresh, valid national
poll (which samples flyover country)
for GOP support for ACA repeal. Real
repeal.
My guess is that 80% favor a total
repeal. This idea that suddenly the
national GOP base, which has over-
whelmingly supported candidates
promising repeal since 2010, is now
in love with ObamaCare is preposter-
systems in the building because they
are outdated and therefore likely un-
der the radar of bad actors. I wonder
if the real question concerned Ameri-
cans (i.e., taxpayers) should be asking
is: When those 8-inch floppies fail,
what are they paying for replace-
ments and why?
BILL HEIKKILA
Cumming, Ga.
Pepper ...
And Salt
THE WALL STREET JOURNAL

tracheoesophageal fistula. In a 1984 Indiana
Law Journal article, Abigail Kuzma wrote that
esophageal atresia with tracheoesophageal fis-
tula indicates that the esophageal passage from
the mouth to the stomach ends in a pouch, with
an abnormal connection between the trachea
and the esophagus.
Judge Gorsuch used the same words in his ex-
planation of the medical condition, a technical
description of a specific ailment outside his area
of expertise. Ms. Kuzma has issued a statement
that she had reviewed both passages and [does]
not see an issue. Because the passages are fac-
tual, not analytical in nature, she writes, and
both describe the basic facts of the case, it
would have been awkward and difficult for Judge
Gorsuch to have used different language.
Politico also criticizes Judge Gorsuch for cit-
5,000 pages of writing to a Big Data plagiarism
analysis, and this is all they found.
Oxford University emeritus professor John
Finnis, who supervised Judge Gorsuchs doc-
toral thesis, reviewed the allegations and says
that in all four cases, Neil Gorsuchs writing
and citing was easily and well within the proper
and accepted standards of scholarly research
and writing in the field of study in which he was
working. Georgetown professor John Keown
was an outside examiner on Judge Gorsuchs
dissertation and called the allegations entirely
without foundation.
Late political hits are a progressive specialty
and Democrats might try to use this one to post-
pone the confirmation debate. Republicans
should dismiss this desperation ploy and vote to
put the distinguished jurist on the High Court.
ous. No one believes this or the me-
dia trying to sell it.
The Democrats stuffed the ACA
down American voters throats with-
out regard to members facing tough
challenges. The GOP leadership
needs to do the same and act in ac-
cordance with the majoritys de-
mands.
STEVEN L. EBER
Coral Gables, Fla.
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 Foley, Im going to pretend
returned.
this never happened.
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THE WALL STREET JOURNAL.
A Resolute Message for China
By John Bolton
T
his weeks summit with
Chinese President Xi Jin-
ping is the most important
meeting President Trump
will have during his first
100 days in office. The 21st century
could well be defined by the Wash-
ington-Beijing relationship. Things
are not going well so far for the
home team. China is on the march
globally, and Mr. Trump inherited
no drama Obamas U.S., which has
been watching it happen.
Remembering Mr. Trumps cam-
paign promises, the White House
may be tempted to focus the summit
on Chinas many violations of its
multilateral trade commitments, in-
cluding pirating intellectual prop-
erty; tilting domestic markets in fa-
vor of Chinese companies, especially
state-controlled ones; and discrimi-
nating against foreign litigants in ju-
dicial proceedings. Chinas mercan-
tilist policies have harmed America
and the liberal international trading
order generally. All merit extended
discussion.
From Taiwan to North
Korea, Trump can make
clear to Xi that America
is no longer in retreat.
But its even more important that
Mr. Trump enter the meeting with a
coherent strategic plan to address
geopolitical and economic disputes.
He should feel no pressure to bridge,
let alone resolve, any of them now.
He should instead focus on conveying
clearly his administrations world-
view, which is very different from his
predecessors.
Making Americas foreign policy
great again should mean that apolo-
gies, acquiescence, disinterest and
passivity are terms that no longer de-
scribe or apply to Washingtons lead-
ers. No grandiose final communiqu
is needed; a simple statement that
How FDA Rules Made a $15 Drug Cost $400
By Mark L. Baum
T
he theory is that generic drugs
should be less expensive than
the original. By the time a ge-
neric hits the market, the drugs pat-
ent has expired, allowing competition
from companies that didnt spend
millions of dollars to develop it. As
more options become available, prices
are supposed to drop. But because of
quirks in Americas regulatory system,
it doesnt always work out this way.
In 2009 the Food and Drug Admin-
istration approved a new version of
colchicine, which treats symptoms of
gout. Prices rose from 25 cents to $6
per pill. Two years later, the agency
approved a new hydroxyprogester-
one, which helps prevent premature
births. It went from $15 to $400 an
injection. In 2014 the FDA approved a
generic of the man-made hormone
vasopressin. Prices jumped from $11
to $138 for an injection.
What explains the counterintuitive
price increases? All these prescrip-
tion drugs fall under a category
known as DESI drugs, named for their
inclusion in an FDA program called
Drug Efficacy Study Implementation.
These drugs came to market before
1962, when getting FDA approval for
a drug required proving its safety but
not its efficacy. Such drugs, manufac-
tured under expired patents, are used
by millions of Americans today.
But once the FDA approves a new-
drug application for a DESI drug, the
existing drug can be pulled from the
market. The new drug is treated as
a material advance because it under-
went testing for safety and efficacy
even though the DESI version was
proved safe and effective over de-
cades of actual use. The developer of
the new drug may also get a new pe-
riod of market exclusivity that lasts
three years.
This makes little sense. Market ex-
clusivity should let pharmaceutical
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A newsstand in Beijing.
the two leaders had a full and frank
exchange of views will suffice.
Topping the agenda should be
North Koreas nuclear-weapons pro-
gram, the most imminent danger to
the U.S. and its allies. Secretary of
State Rex Tillerson and Defense Sec-
retary Jim Mattis have made clear
how seriously they view the prospect
of Pyongyang fitting an intercontinen-
tal ballistic missile with a nuclear
warhead and threatening targets in
the U.S. The president must follow up
vigorously, or the Chinese may under-
estimate how strongly the U.S. feels
about the North Korean menace.
The only real way to end the North
Korean threat is to reunify the penin-
sula by merging North Korea into the
South. China will find that difficult to
swallow. But if the Trump adminis-
tration can demonstrate the many
benefits to China flowing from the
regional stability and global security
that reunification would bring, Bei-
jing should come around.
North Korea has achieved its cur-
rent nuclear capabilities despite 25
years of American attempts to halt its
progress. U.S. options for stopping
Kim Jong Un from taking the final step
are now severely limited. Moreover,
the U.S. and China must bear in mind
that whatever North Korea can do,
Iran can do immediately thereafter
companies recoup their often enor-
mous investments in genuinely new
drugs. Giving monopoly protection for
what is essentially a generic version of
a DESI drug merely enriches sharp-
dealing companies while injuring pa-
tients.
For many older medicines,
government forces the
original, name-brand
version off the market.
Another reason generics often face
no competition was described by
Scott Gottlieb, President Trumps
nominee for FDA commissioner, in
these pages last year. He noted that
a generic-drug application can cost
as much as $15 million. This high up-
front cost is part of why would-be
manufacturers of generics often pass
on the opportunity to compete
against branded drugs with smaller
markets. This has allowed many
A Gray Wolf in the Silver State
By Allysia Finley
D
ear Gov. Sandoval,
I suppose news of my ap-
pearance in Nevada may come
as a shock since wolves havent been
spotted here since the 1920s. The Ne-
vada Department of Wildlife says we
cant survive long: Nevada is and al-
ways has been poor wolf habitat.
But you could change that.
Wolves were once hunted to near-
extinction, but thanks to the Endan-
gered Species Act there are now
nearly 6,000 of us in the lower 48
states. A few years ago the federal
government removed wolves from
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OPINION
AFP/GETTY IMAGES
for the right price. As Pyongyang
inches ever closer to producing deliv-
erable nuclear weapons, the prospect
of a pre-emptive U.S. strike against its
nuclear infrastructure and launch sites
cannot be ruled out.
Beijing has itself threatened to
turn the international waters of the
South China Sea into a Chinese lake
by building bases on disputed rocks
and reefs. In the East China Sea, Bei-
jing seeks decisive ways to break
through the first island chain and
into the Pacific. Taiwan is a target;
Mr. Xi will repeat the phrase One
China monotonously in hopes of
hypnotizing the Trump team into be-
lieving it means what Beijing believes
it means, rather than our longstand-
ing interpretation.
The Obama administrations pol-
icy was to call for China, Vietnam,
the Philippines and others to resolve
their territorial disputes through ne-
gotiation. This might have worked
had U.S. military forces been suffi-
ciently deployed to support the other
claimants and manifest Americas
will not to accept Chinese faits ac-
complis. Instead, Mr. Obama pre-
sided over the continuing world-wide
decline of our naval capabilities.
While Mr. Trump is committed to
reversing that decline, it wont hap-
pen overnight. Accordingly, as when
pharmaceutical companies to raise
prices with impunity.
Overhauling the drug-approval
process will take time. But there are
already tools to help ensure reason-
able prices for the estimated 17% of
U.S. drugs that lack competition.
The Drug Quality and Security Act
of 2013 was designed to ensure that
companies can quickly respond to a
drug shortage by allowing a new type
of drug maker, called an outsourcing
facility, to enter the market. It cop-
ies an FDA-approved product, regard-
less of exclusivity, provided that it
manufactures the drug in an FDA-
registered and -inspected facility us-
ing FDA-approved ingredients. Amer-
ican companies, including mine, have
invested in such facilities.
Yet the potential of this legislation
remains untapped. The FDA should
clearly define drug shortage to in-
clude a lack of access due to abnor-
mally high prices. With this simple
change, FDA-registered outsourcing
facilities could quickly bring sky-high
prices for monopoly generics with
expired patents back to earth.
the endangered-species list in Idaho
and Montana after ranchers com-
plained we were gorging on livestock.
(For the record, cow-ripping isnt a
crime.) Congress members in the
Midwest want to strip our protec-
tions in Michigan, Minnesota, Wis-
consin and Wyoming too. That means
more of us might migrate west.
My uncle OR-7 became a celebrity
a few years ago when he visited Cali-
fornia, where wolves hadnt been
seen for more than 60 years. The
state Department of Fish and Wildlife
assigned several biologists to track
him. They even created a wolf man-
agement plan, hoping that wolves
would make a comeback in the state.
In 2014 the California Fish and
Game Commission listed us as an en-
dangered species. Under state law,
ranchers could get a year in the slam-
mer if they harass, harm, pursue, hunt,
shoot, wound or kill wolves. But some
animals are more equal than others.
Wolves are free to feast on cows and
salmonfish oil is great for the fur.
After searching in vain for a mate,
my uncle returned to Oregon, where
he met a wild fang and they settled
down. My parents preferred a warmer
climate and migrated to California to
start their own pack. We managed to
keep a low profile until . . .
Look: It was never proven beyond
a reasonable doubt that we killed
those cows. After a thorough live-
stock depredation investigation,
Californias Department of Fish and
Wildlife issued a 48-page report
heavy on innuendo that concluded
the cause of death could not be
definitely determined.
Ronald Reagan replaced Jimmy
Carter, Mr. Trump must display po-
litical resolve, buying time until the
necessary naval assets are once
again at sea. Otherwise, China gets
what it wants with cold blue steel,
not diplomatic niceties.
Chinas threatening military
buildup has implications well beyond
its bordering seas. Its cyberwarfare
program is large and growing. Its
anti-ship missiles and other offensive
naval weaponry are expressly in-
tended to diminish the U.S.s ability
to project power into the Western
Pacific. Chinas own naval buildup
its first in 600 yearsendangers all
its East and Southeast Asian neigh-
bors; its nuclear and ballistic-missile
efforts threaten India in unprece-
dented ways and have major implica-
tions for Americas ongoing nuclear-
posture review; and its anti-satellite
program is aimed squarely at U.S. in-
telligence-gathering capabilities in
space.
For eight years, Chinas military
budget has climbed while Americas
has fallen. Communist Party leaders
drew the inescapable conclusion that
they had a free hand to translate
Chinas economic successes into mili-
tary hardware and then to use, or
threaten to use, those capabilities to
achieve their international objectives.
Who would stand in their way?
Chinas neighbors, from Japan
around to India, are incapable of re-
sisting its power without American
help. But while Washington has no
appetite for conflict, neither should it
simply accept Beijings adventurism.
President Xi must leave Mar-a-
Lago with the firm conclusion that he
needs to re-calibrate Chinas geopo-
litical strategy. That alone would be
a significant win for the home team.
Spring training is finished. For
Messrs. Xi and Trump, the real sea-
son starts Thursday.
Mr. Bolton is a senior fellow at the
American Enterprise Institute and
author of Surrender Is Not an Op-
tion: Defending America at the United
Nations and Abroad (Simon &
Schuster, 2007).
At the same time, the Trump ad-
ministration should authorize Medi-
care and Medicaid to pay for com-
pounded drugs made in outsourcing
facilities, which currently arent cov-
ered. Right now government policy
forces Medicare to pay Turing Phar-
maceuticals, the brainchild of the no-
torious pharma bro Martin Shkreli,
$750 for a single Daraprim pill. In-
stead Medicare should be able to
choose my companys Daraprim al-
ternative, priced at 99 cents a pill,
which has been safely dispensed to
thousands of patients nationwide.
Reforming the drug-approval pro-
cess is critical. Meanwhile, these
steps would ensure that demonstra-
bly safe drugs made in America can
be offered at a reasonable price to
patients who need them. If drugs
must carry a high price tag, it should
be to recoup investment in innova-
tionnot to enrich a monopolist for
an off-patent, inexpensive medicine it
did not develop in the first place.
Mr. Baum is the CEO of Imprimis
Pharmaceuticals, Inc.
So what if a rancher observed five
wolves feasting on a dead calf in a
meadow? It doesnt prove a thing. In-
vestigators were clearly trying to en-
trap us when they went to the
meadow the next day and played re-
cordings of wolves howling. We
barked back, not knowing we were
being surveilled without a warrant.
As for the reported wolf scats con-
taining what appeared to be cattle
hair, this evidence could have been
planted by ranchers.
Soon after the cow incident, I
overheard some vigilante ranchers
threaten the three Ssshoot,
shovel and shut upif we got close to
their livestock. So last summer we
went on the lam. I fled to Nevada,
like tens of thousands of human Cali-
fornians do every year.
Ive also heard, governor, that
youre offering juicy relocation incen-
tives. Nevada agreed to spend $750
million on a football stadium to lure
the Oakland Raiders to Las Vegas.
Tesla CEO Elon Musk received $1.3
billion in tax breaks to build a lithium
battery factory in Reno.
Perhaps you could offer us wolves
a few fatted calves. We could also use
a safe space in case ranchers ap-
proach. Imagine the hundreds of new
jobs wolves could create in the field
of environmental protection.
Sincerely yours,
Tom Wolf
P.S. Yes, my mom thought she
was being cute when she named
me.
Ms. Finley is an editorial writer for
the Journal.
Thursday, April 6, 2017 | A19
For Syria,
Words Wont
Be Enough
By Paul Wolfowitz
A
mong the many unintention-
ally profound comments at-
tributed to Yankee great Yogi
Berra, one of the best known is,
When you come to a fork in the
road, take it.
President Trump may have ini-
tially believed that he could avoid
the fork in the road presented by
the Assad regimes use of chemical
weapons in Syria by simply blam-
ing the crime on Barack Obamas
failure to enforce his red line
four years ago. Fortunately it
seems he has reconsidered.
Mr. Trump initially responded on
Tuesday by condemning the attacks
as heinous and reprehensible.
He added correctly that little chil-
dren in Syria would not be dying
such gruesome and painful deaths,
gasping for breath, if Mr. Obama
had followed through on his warn-
ings against the use of chemical
weapons in that civil war.
Trump says attacking
civilians crosses many
lines. Will he back it up?
That made it briefly appear as
though the president might use Mr.
Obamas failure as an excuse to
avoid action. In a joint press con-
ference Wednesday with Jordans
King Abdullah, however, Mr. Trump
said the attacks on Syrian civilians,
innocent little babies in particu-
lar, crosses many, many lines for
me. He continued, I now have re-
sponsibility, and will carry it very
proudly.
Mr. Obamas temporizing has ad-
mittedly taken some options away
from Mr. Trump. What former Sec-
retary of State John Kerry once de-
scribed as an unbelievably small,
limited kind of military strike
probably was never sufficient to
fulfill its stated purpose: to hold
Bashar Assad accountable. Cer-
tainly something more substantial
is needed now. And Russias pres-
ence in Syria makes the situation
much more problematic. Escaping
this crisis through yet another
agreement to eliminate Syrias hor-
rific weapons peacefully is no lon-
ger feasible.
Let us hope Mr. Trump will reas-
sess the impact of recent state-
ments by members of his adminis-
tration indicating that the U.S. is
prepared to live with the Assad re-
gime. The Syriansand their Rus-
sian and Iranian backersmight
well have interpreted this as a sig-
nal that they could continue terror-
izing the population. Ominously,
doctors and activists in the Idlib
area, where Tuesdays attacks took
place, say there has been an up-
swing in the use of chemical weap-
ons since the end of 2016.
The large numbers of Syrians
who see Mr. Assad as no better
than ISIS probably believe that the
Trump administration has given
him a green light. Their seeming
acceptance of Mr. Assad must have
come as a dash of cold water for
our many allies and potential allies
who thought the new American
president was a strong, bold leader
who would stand up to Iran in a
way his predecessor did not.
Mr. Trump now needs to back up
Wednesdays strong words with
leadership. As president, his state-
ments carry weight that they didnt
previously. World leaders make
life-or-death decisions based on
what they believe the American
presidents words signify about U.S.
intentions. If his actions dont
match his rhetoric, critical allies
will conclude that Mr. Trump is
weak, like his predecessor, which
will have a damaging ripple effect
for U.S. interests throughout the
region and the world.
As with most such situations,
the facts of the case are not yet
completely clear. The Russians are
claiming that Syrian warplanes tar-
geted rebels who were producing
toxic projectilesan unconvincing
story, but the facts do need to be
investigated.
While the investigation is under
way, the Trump administration
should not spend the time hoping
that the problem will go away. In-
stead, they should use it to prepare
a bold course of action to end
these barbaric attacks and restore
peace to Syria. That is no small
task.
Indeed, the Trump administra-
tion foreign policy is facing its first
serious fork in the road. The presi-
dent seems ready to take on the
burden. All Americans should hope
that he does not fail.
Mr. Wolfowitz, an American En-
terprise Institute scholar, has
served as deputy defense secretary
and ambassador to Indonesia.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A20 | Thursday, April 6, 2017
PHILL MAGAKOE/AGENCE FRANCE-PRESSE/GETTY IMAGES
South Africas embattled President Jacob Zuma, seen in Pretoria on Wednesday, has resisted increasing calls to step down.
ANC Circles the Wagons
Leaders of South
African ruling party
reiterate support for
embattled president
BY GABRIELE STEINHAUSER
AND JOE PARKINSON
JOHANNESBURG The
leadership of the African Na-
tional Congress closed ranks
around embattled President
Jacob Zuma, seeking to show a
united front amid calls for the
president to step down.
ANC Secretary-General
Gwede Mantashe told report-
ers on Wednesday that senior
officials dissent over Mr.
Zumas dismissal of respected
Treasury chief Pravin Gordhan
was a mistake that should
never happen again. He spoke
following an extraordinary
meeting of top party commit-
tees where factions loyal to
Mr. Zuma appeared to com-
fortably outnumber those call-
ing for his resignation.
Mr. Mantashe had been one
of several top ANC officials to
openly criticize the removal of
Mr. Gordhan and eight other
government ministers from
the cabinet, saying the partys
leadership hadnt been con-
sulted. The public rebukes
were echoed by the Commu-
nist Party and the powerful
Congress of South African
Trade Unions, key ANC coali-
tion allies who called for the
presidents ouster.
Even Deputy President Cyril
Ramaphosa, the onetime heir
apparent to Nelson Mandela,
pledged to renew Africas most
prominent liberation movement
under leaders who wont try to
rob the people of this country.
But Wednesdays press con-
ference appeared to cement
WORLD NEWS
Mr. Zumas control over the
ANCs top decision-making
bodiesand his reputation as
a shrewd political tactician
after arguably the worst week
of his scandal-ridden eight-
year presidency.
Hours later, Parliament
Speaker Baleke Mbete said she
would call back lawmakers for
a special session on April 18 to
debate a no-confidence motion
against the president filed by
opposition partiesa sign the
ANC believes it has the votes
to shield Mr. Zuma, the 74-
year-old former ANC intelli-
gence chief.
Fridays sweeping shuffle
prompted a firestorm of criti-
cism and saw S&P Global Rat-
ings cut South Africas foreign-
currency debt to junk status,
becoming the first ratings firm
to do so in 17 years. Sporadic
street protests against Mr.
Zuma have flared in cities
across the country. Opposition
parties have called for a na-
tional day of action on Friday.
Despite gathering internal
dissent, Mr. Zuma has in re-
cent months intensified efforts
to stack the ANCs powerful
party branches with loyalists
ahead of a December confer-
ence that will choose his suc-
cessor as party leaderand
candidate for the 2019 na-
tional elections.
Zuma is very likely to sur-
vive a motion of no confidence;
impeachment efforts and calls
for his resignation, including
protests, will likely fail, said
Darius Jonker at EurasiaGroup,
a New York-based political-risk
consultancy. But the ANC will
become increasingly dysfunc-
tional, as calls from its alliance
partners for Zumas removal in-
tensify, alongside opposition
parties, civil society and the
business community.
THE WALL STREET JOURNAL.
Muslim Birth Rise
Seen Lifting Faith
BY IAN LOVETT
Within 20 years, more babies
will be born to Muslim women
than to Christian women world-
wide, the latest sign of the
rapid growth that could make
Islam the worlds largest reli-
gion by the end of the century.
Islam is already the worlds
fastest-growing religion, accord-
ing to a study released Wednes-
day by the nonpartisan Pew Re-
search Center, with the Muslim
population increasing by more
than 150 million people between
2010 and 2015, to 1.8 billion.
Meanwhile, Christianity re-
mains the worlds largest reli-
gion. It is growing more slowly,
however, largely due to its de-
clining numbers in Europe,
which was long the seat of
Christendom. As of 2015, there
were 2.3 billion Christians.
While Christians accounted
for 33% of births world-wide
in recent yearsslightly out-
pacing the number of Muslim
birthsthey also made up 37%
of world-wide deaths, nearly
twice the share of deaths from
any other religion.
Christianity is literally dying
in Europe, said Conrad Hackett,
the lead researcher on the study.
In most European coun-
Changing Population
Muslims are projected to account for a larger share of births than
Christians in coming decades
Muslims Christians Unafliated
BIRTHS AS A SHARE OF ALL WORLD-WIDE
2010-15
2055-60
10%
9%
DEATHS AS A SHARE OF ALL WORLD-WIDE
2010-15
2055-60
15%
16%
Source: Pew Research Center
triesincluding England, Ger-
many, Italy and RussiaChris-
tian deaths outnumbered
Christian births from 2010 to
2015. The religion has been
buoyed by continued growth
in Africa and Latin America.
The heart of Christianity is
moving from Europe to Af-
rica, Mr. Hackett said.
The new report is an expan-
sion on a major Pew Research
study from 2015, which first
projected that by 2050 the
world-wide Muslim population
would nearly equal the Chris-
tian population, perhaps for
the first time in history.
Wednesdays study offers
new details about birthrates in
recent years. It also projects
to 2060, when the Christian
and Muslim populations will
be nearly equal. The world-
wide population of Muslims is
projected to grow by 70% be-
tween 2015 and 2060. Christi-
anity will grow by 34%.
For both religions, the grow-
ing numbers come largely from
fertility. Muslims have gained
slightly in recent years from
people converting to Islam.
Meanwhile, Christians have
lost more members than any
other religion in recent years
due to religious switching.
31%
36%
33%
35%
21%
25%
37%
31%
THE WALL STREET JOURNAL.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
BUSINESS & FINANCE
2017 Dow Jones & Company. All Rights Reserved.
S&P 2352.95 g 0.31% S&P FIN g 0.70%
Panera Bread Fetches $7.16 Billion
Fast-casual eatery
agrees to buyout
by owner of Keurig
and Krispy Kreme
BY JULIE JARGON
Panera Bread Co. plans to
be acquired for roughly $7.16
billion, excluding debt, by Eu-
ropean investment fund JAB
Holding Co., a firm with a
fast-expanding collection of
brands including Caribou Cof-
fee and Jimmy Choo shoes.
The chain of about 2,000
cafes serving pastries, coffee
and sandwiches would be
taken private in the deal.
Paneras shares rose 14% to
$312.94 on Wednesday in New
JASON GETZ/USA TODAY/REUTERS
The Trump National Doral resort in Miami. Based on public records, the assessed value of Trump-branded clubs hasnt kept pace with spending for long-term upgrades.
Trump Golf Properties Perform Under Par
Trump International Golf
Club in West Palm Beach, Fla.,
boasts 27 holes, a three-level
driving range and, since Jan.
20, a pretty decent chance
weekend visitors will run into
By Jean Eaglesham,
Lisa Schwartz
and Rebecca Ballhaus
the president of the U.S.
Trump-branded golf proper-
ties have benefited from a
burst of free publicity this year,
with TV cameras rolling as
President Donald Trumps mo-
torcade rumbles in and out of
the gated estates nearly every
weekend.
Elizabeth
Holmes Owes
Theranos
$25 Million
BY CHRISTOPHER WEAVER
Theranos Inc. founder Eliz-
abeth Holmes, whose once-$5
billion stake in her blood-test-
ing firm has shriveled amid
regulatory and legal chal-
lenges, also owes her company
about $25 million, people fa-
miliar with the matter said.
The disclosure of the debt
was included in a deal docu-
ment Theranos circulated to a
select group of current inves-
tors with whom the firm seeks
to trade shares from Ms.
Holmess personal stake in ex-
change for a promise not to
sue the company or its execu-
tives, the people said.
A Theranos spokeswoman
declined to comment on the
debt or to make Ms. Holmes
available to comment.
The $25 million Ms. Holmes
owes Theranos comes from an
agreement between her and
the company that allowed her
to exercise options to buy
more stock without having to
pay upfront. Instead, she
Please see HOLMES page B6
TECHNOLOGY: APPLE PAY STRUGGLES TO GAIN TRACTION B4
* * * **
S&P IT g 0.32%
York. JAB agreed to pay $315 a
share in cash for the company.
The St. Louis-based chain
has managed to continue in-
creasing sales even as other
businesses in the so-called
fast-casual segment struggle
to attract customers amid
fierce competition.
Chief Executive Ron Shaich,
who founded the company 36
years ago as Au Bon Pain Co.,
said in an interview Wednes-
day that becoming a private
enterprise would help Panera
maintain an improved level of
customer service. I think
businesses operate better in a
private setting. I think this
deal gives us a competitive ad-
vantage, he said. Au Bon Pain
became a separate company.
The deal with JAB would
The extra attention comes at
an important moment for Mr.
Trumps clubs: Amid a general
slump in the golf industry, the
value of those properties hasnt
kept pace with the amount of
money he has invested to make
long-term upgrades, according
to documents obtained by The
Wall Street Journal through
public-records requests. A
number of the golf clubs have
frozen or reduced initiation
fees in recent years, employees
say.
The Trump Organizations
18 golf clubs in the U.S. and
overseas are a core part of his
business empire, which the
president continues to own via
Grade-Inflation on the Internet:
Why Star Ratings Are Broken
You know what Id award
zero stars? Most of the star
ratings you see online.
I ran a little experiment
tallying all the duct tape sold
on Amazon.
Of the 250
types and
sizes, the
average rat-
PERSONAL
ing was 4.2
stars. On
TECHNOLOGY Yelp, I
GEOFFREY A. looked up
FOWLER gelato joints
in San Fran-
cisco: More
than half get either 4.5 or 5
stars. And I cant recall ever
seeing an Uber driver with a
rating lower than 4.3 stars.
But wait, theres less:
Online product ratings
average about 4.3 stars all
together, says PowerReviews,
which runs ratings for more
than 1,000 online shops.
No doubt, online ratings
can help weed out bad
products, put sketchy
restaurants out of business
and keep dangerous drivers
off the road. But I refuse to
accept that everything on
THE WALL STREET JOURNAL.
DJ TRANS g 0.05% WSJ $ IDX 0.03%
allow Mr. Shaich to keep run-
ning the company. Their
whole philosophy is to give us
space, he said. There are no
expected management
14%
Rise in Paneras share price to
nearly $313 on Wednesday.
changes.
JAB declined to comment,
through a spokesman.
Panera pioneered the fast-
casual segment, which offers
fast service and freshly made
food. The chain bakes bread
a trust run by his adult sons.
The properties account for
more than half the total reve-
nue Mr. Trump reported last
year in a federal financial dis-
closure filing.
The golf industry continues
to suffer from the effects of the
2008 recession as well as de-
clining participation. The num-
ber of people playing in the
U.S. dropped from a peak of 30
million in 2005 to 24.1 million
in 2015, according to the Na-
tional Golf Foundation.
Golf is a tough business,
said Larry Hirsh, a founder of
the Society of Golf Appraisers,
which estimates the values of
golf courses on behalf of prop-
Fistful of Fives
On Yelp, reviewers tend to be
kind to businesses, giving out 5
stars most often. The rarest
rating? 2 stars.
Distribution of Yelps star ratings
46%
22%
10%
7%
15%
Source: the company
the internet is above
average.
On Wednesday, Netflix
officially put its five-star
system out to pasture. After
extensive testing, its
replacing it with a simple
thumbs up and thumbs
down. You get more ratings
when you have fewer
decision points, says Todd
Yellin, Netflixs vice
LIBOR 3M 1.150
every day in its restaurants. In
the past decade it has been re-
formulating its food to be free
of artificial ingredients.
Restaurants in general are
experiencing the worst perfor-
mance since the recession as
fewer people eat out, finding it
is cheaper and easier to eat at
home. The gap between res-
taurant and grocery prices is
the widest it has been in more
than 50 years and there are
more dining options than ever,
ranging from meal-kit delivery
services to prepared meals at
convenience stores.
Panera is one of the rare
chains to tap into consumers
growing appetite for speed
and convenience, with 15% of
its restaurants now offering
delivery and with digital or-
erty owners, local governments
and others. There are clubs
where memberships are going
back upbut theyve had to
drop their fees.
The finances of Mr. Trumps
U.S. clubs are private. But their
values are assessed each year
by local governments for tax
purposes. In most states, the
main criteria include a clubs
revenue and expenses.
The most recent valuations
of Mr. Trumps 10 U.S. clubs
with tax assessmentsmost of
them for 2016total $266 mil-
lion, according to local prop-
erty and tax records reviewed
by the Journal. That is up $24
million, or about 10%, from
president of product
innovation. More data, plus
actual viewing behavior,
allows Netflix to make
personalized suggestions,
represented as a percent
match. Its like a dating site
for movies.
Star ratings were bor-
rowed from professional
critics and now are often
misused to harvest the wis-
dom of the crowd. But peo-
ple need help interpreting
the results. Is three stars
good or bad? I cant think
of a platform that has
nailed it, says Michael
Luca, an assistant profes-
sor at Harvard Business
School who studies infor-
mation design.
Its partly our fault: Were
far too nice. Evidence shows
were much more likely to
give positive ratings than
bad ones. Yelp says 46% of
the reviews we give local
businesses are five stars.
That may just be human
nature: You chose this
restaurant, so how could it
be anything less than a five-
Please see FOWLER page B4
Thursday, April 6, 2017 | B1
NIKKEI (Midday) 18597.51 g 1.40%
ders making up 24% of sales.
On Wednesday, the chain said
same-store sales at its com-
pany-operated cafes rose 5.3%
in its fiscal first quarter, far
outperforming the industry.
The planned acquisition of a
restaurant chain operating at
the top of its game came as a
surprise to investors who saw
no reason for Panera to be a
target. And with its stock trad-
ing at a record, it wasnt a
cheap buy. The agreed-upon
purchase price represents a
20% premium to Paneras clos-
ing price on March 31, the last
trading day before news re-
ports about a potential deal
Please see PANERA page B2
 Heard on the Street: Panera
short sellers are toast........ B12
their value in 2012.
But that increase in value
falls well short of the $310 mil-
lion that Mr. Trumps company
has said in news releases or
media reports it has spent on
renovating the properties dur-
ing that same period, including
$250 million on upgrading the
Trump National Doral resort in
Miami. That means the net
value of the clubs after invest-
ment has declined significantly
over the last five years.
A White House spokes-
woman referred questions to
the Trump Organization. A
spokeswoman for the Trump
Organization said it was proud
Please see GOLF page B2
INSIDE
WELLS FARGO
TURNS UP
MORE ABUSES
BANKING, B6
JEFF BEZOS
SEES TOURISTS
IN SPACE BY 18
AERONAUTICS, B3
See more at WSJMarkets.com
Home Improvement
Cumulative PACE nancing for
residential projects
$4 billion
$3.7B*
3
2
1
0
10 11 12 13 14 15 16 17
*Through March 31
Source: PACENation
THE WALL STREET JOURNAL.
Congress
Turns Eye
To Loan
Program
BY KIRSTEN GRIND
Momentum is building in
the U.S. Senate to rein in a
popular government-sup-
ported loan program used to
finance energy-saving home
improvements.
Sen. Tom Cotton (R., Ark.)
introduced legisla-
tion Wednesday that would re-
quire private lenders in a loan
program known as Property
Assessed Clean Energy, or
PACE, to be regulated much
like traditional mortgage lend-
ers. The bills co-sponsors in-
clude Sen. Marco Rubio (R.,
Fla.) and Sen. John Boozman
(R., Ark.).
If the bill is successful, it
would represent a major
change for private lenders
such as Renovate America
Inc., Renew Financial Group
LLC and Ygrene Energy Fund
Inc., which make high-interest-
rate loans on solar panels, air-
conditioning units and other
energy-efficient appliances.
Companies say they sup-
port the addition of consumer
protections to the PACE pro-
gram. There is no question
that PACE should have disclo-
sures and other requirements
that are robust, if not more
robust, than other types of
consumer finance, said Cisco
DeVries, who founded the pro-
gram in 2007 in California and
now is chief executive at Re-
new Financial.
PACE lenders face few re-
strictions compared with tra-
ditional lenders and are mini-
mally supervised through a
patchwork of state and county
oversight. Partly as a result,
PACE loans have become the
fastest-expanding type of loan
in the U.S.
The proposed legislation
follows reports in The Wall
Street Journal this year detail-
ing numerous problems aris-
ing from the program. Lenders
rely on contractors such as
plumbers to broker loans and
dont do credit checks, causing
problems for some borrowers
who didnt understand the
loan terms and cant afford
the debt. Lenders have sprung
up because of a lack of financ-
ing for energy-saving home
improvements and a nation-
wide push to go green.
Institutional investors have
bought tens of millions of dol-
lars of bond deals backed by
the loans.
The bill, called the PACE
Act of 2017, aims to amend the
Truth in Lending Act, a chief
regulation governing big banks
and mortgage companies, to
include PACE lenders. If the
bill is passed, PACE lenders
would be forced to disclose to
borrowers the amount they
would owe over the lifetime of
the loan and come up with a
standard way for reporting
loan terms to borrowers.
Lawmakers say they are op-
timistic the legislation will
pass because it is a small
change to existing regulation
and it has bipartisan support.
They will also be moved un-
der the purview of a federal
regulatorlikely the Con-
sumer Financial Protection Bu-
Please see LOANS page B2
B2 | Thursday, April 6, 2017
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in todays edition. Articles on regional page inserts arent cited in these indexes.
Active Ownership
A
Capital.....................B12
Akzo Nobel................B12
Amazon.com.B3,B10,B12
Anheuser-Busch........B11
Apple...........................B4
B Chase...............B10,B11
Bilfinger .................... B12
BlackRock..................B10
Blue Origin..................B3
Boeing ....................... B10
Boston Beer..............B11
C Lucas Venture Group..B6
Cevian Capital...........B12
Charles Schwab ........ B11
Cisco Systems...........B10
Coca-Cola...................B12
Comcast.......................B2
Constellation Brands B11
Credit Suisse Group . B10
E-F
Elliott Associates.....B12
Eyeo...........................B10
Fannie Mae ............... B12
Federal Reserve........B12
Flattr ......................... B10
G Group.......................B10
GE Capital...................A6
INDEX TO PEOPLE
B-C
Bailey, Jennifer...........B4
Bezos, Jeff..................B3
Boozman, John ........... B1
Brown, Jerry ............... B2
Colman, Robert...........B6
Cook, Tim....................B4
Cornell, Brian..............A1
Cotton, Tom ................ B1
Cue, Eddy .................... B4
D-F
Dart, Leslee.................B2
DeVries, Cisco.............B1
Dimon, James...........B10
Fox and Megyn Kelly in Agreement
Fox News and Megyn Kelly are
finally on the same page about
her employment status.
Last month, Fox News said
Ms. Kelly, former host of The
Kelly File, had been re-
leased from her contract sev-
eral months in advance of its
expiration date. That would
free her to start working at
NBC News, where she will host
a daily morning show and
weekly Sunday show.
However, at that time Ms.
Kellys spokeswoman, Leslee
Dart, said that wasnt the case
and that the two sides were
LOANS
Continued from the prior page
reaufor the first time. A
similar bill was introduced
Wednesday by Rep. Brad Sher-
man (D., Calif.) in the House.
Predatory green-energy
lenders are out changing state
and local laws ultimately to
trick seniors and other vulnera-
ble Americans to take out high-
interest-rate loans, without
proper disclosure of interest
rate or fees, Sen. Cotton said.
Sen. Rubio said PACE loans
should have to play by the
same rules as other forms of
home financing. Sen. Booz-
man said homeowners need
PANERA
Continued from the prior page
surfaced. The buyout includes
the assumption of about $340
million of Paneras debt.
Some analysts said Panera
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
General Electric..........A1
Greenlight Capital .... B12
J
R
Renew Financial ......... B1
Renovate America......B1
GOLF
JAB Holding...........B1,B2 Rite Aid.....................B10
Continued from the prior page
J.B. Hunt Transport S of its work with the properties
Services...................B11 Safran........................B12 and that it would continue to
J.P. Morgan Schneider National...B11
Stada Arzneimittel...B12 invest in the game of golf.
K Stifel, Nicolaus.........B11 Our clubs are performing
Keurig Green Swift TransportationB11 incredibly well and we have
Mountain...........B2,B12 T amazing teams working hard to
Krispy Kreme.......B2,B12
Target..........................A1 provide the ultimate luxury golf
L TCI ............................. B12 experience, the spokeswoman
Theranos......................B1 said.
M Thyssenkrupp............B12
Since his Jan. 20 inaugura-
Mallinckrodt................B3 21st Century Fox........B2
U tion, Mr. Trump has paid 14
Morgan Stanley........B11
visits to his golf clubs, often
N Uber Technologies ...... B4
SUSAN WALSH/ASSOCIATED PRESS
bringing with him members of
News Corp...................B2 UBS Group.................B11
his cabinet or foreign leaders.
Norwegian Air V
Shuttle....................A13 Volkswagen...............B12 The Palm Beach golf club
P W has the ultimate perkthe
Panera Bread..B1,B2,B12 Walgreens Boots
president is going to show up,
Peet's Coffee & Tea..B12 Alliance..............B6,B10 said Sid Dinerstein, a former
PepsiCo........................B3 Wells Fargo.................B6 Palm Beach County Republican
Plug Power ........ B10,B12
PNC Financial Services
Werner Enterprises..B11 Party chairman. He said a re-
Y cent all-you-can-eat seafood
PPG Industries..........B12 Ygrene Energy Fund ... B1 buffet at the club, attended by President Donald Trump at Trump International Golf Club in West Palm Beach, Fla.
Mr. Trump, was overflowing
with paying guests hoping to
catch a glimpse of the presi-
dent.
In the Rough
statements. All three reported
losses for their most recent re-
ports. The losses were attri-
The Trump Organizations investment in golf resorts in the last ve
Einhorn, David .......... B12 Munster, Gene............B4 Mr. Trump bought many of years appears to have outpaced the increase in values assessed for buted to development work.
Fink, Laurence...........B10 O-R the clubs after prices crashed local tax purposes. Mr. Trumps recent upgrades
G-H O'Brien, Thomas H...B10 in the 2008 recession. In the arent necessarily translating
Ottenstein, Robert... B11 past, he has said the property $250 million Renovation Change in assessed into higher membership fees,
Gomez, Jimmy............A2
Gottlieb, Scott..........B12 Pessina, Stefano.......B10 assessments dont reflect the investment value since 2012 the Journal found.
Hirsh, Larry.................B1 Rigetti, Susan Fowler B4 clubs true market value, in- Mr. Trumps company spent
Robbins, Chuck ......... B10
200
Hirt, Hans-Christoph B12 cluding the development poten- $25 million renovating its club
Rohrbaugh, Troy ....... B10
Holmes, Elizabeth ...... B1 tial of the underlying land. in Washington, D.C., which Mr.
Hornsey, Liane............B4 S-W 150
In some cases, owners of Trump has visited four times in
Huffington, Arianna...B4 Sands, Robert...........B11
golf courses try to persuade as- the past month. The project in-
Schuster, Edmund.....B12
Hutchinson, Y-Vonne..B4 sessors to lowball clubs value 100 cluded cutting down more than
Jindel, Satish............B11 Shaich, Ron.................B1
Sherman, Brad............B2 to minimize tax bills. The val- 400 trees to give players a bet-
K-M Wiegand, Eric............B11 ues of Mr. Trumps properties ter view of the Potomac River,
Larkin, John .............. B11 Wittner, Michael.......B11 sometimes reflect a compro- 50 as well as building a new cham-
mise between one number cal- pionship course.
culated by the taxing authority 0 In 2015, when the overhaul
and a lower figure argued by was unveiled, the joining fee
Mr. Trumps team. Trump National Trump National Trump National Trump National was close to $100,000, the
still negotiating final terms. A rare glimpse of a Trump Doral Miami Golf Club Golf Club Golf Club Washington Post reported at
Fox News disputed that claim. U.S. clubs income and expenses Washington, D.C. Jupiter Charlotte the time. This year, the fee was
On Wednesday, Ms. Dart came in a tax appeal by the $60,000, according to the clubs
Note: Assessed values reect the outcome of any decided appeals. The preliminary assessed
said those talks have been re- Trump Organization last year value for the Doral resort (before appeals) increased $5 million from 2012 to 2016. membership pamphlet. (The
solved and Ms. Kelly has just when his Doral resort near Mi- Sources: property and court records; Trump Organization; media reports monthly dues have gone up
signed a contract with NBC ami disclosed an operating loss THE WALL STREET JOURNAL. from a reported $698 in 2015
News, a unit of Comcast Corp. of $2.4 million for 2014. That to $800 now.)
An NBC News spokeswoman figure doesnt include pay- cording to a person close to the sor for the Town of East Fish- At Trumps Mar-a-Lago Club
declined to comment. News of ments on $125 million of loans Trump Organization. kill, N.Y., said the reduction re- in Florida, where there is no
Ms. Kelly reaching an accord on the property. In New York, the assessed flected lower revenue in the golf course, the joining fee was
with NBC was earlier reported The Doral club in March was value of the Trump golf club in industry. People arent golfing doubled over several months to
by Variety. offering a 20% discount on its the Hudson Valley fell 23% last a lot and were pretty saturated reach $200,000 in January, ac-
Fox News parent 21st Cen- joining fee, cutting it to year to $4.6 million from $6 with golf courses these days, cording to Bernd Lembcke,
tury Fox and Wall Street Jour- $40,000 from $50,000, accord- million in 2015after the he said. Mar-a-Lagos managing direc-
nal parent News Corp share ing to a Doral employee. Such Trump Organization argued the Unlike Mr. Trumps U.S. tor. Its number of members has
common ownership. end-of-season offers are com- true value was just $2 million. clubs, those in Scotland and risen over the past year, he
Joe Flint mon in the golfing industry, ac- John Hickman Jr., supervi- Ireland issue public financial added.
more information on the loans
to protect themselves so they
dont risk financial ruin.
The loan program can re-
fault, they are given priority
over a homeowners mortgage.
States, enticed by offering
clean energy to constituents,
years lobbying federal govern-
ment agencies, the White
House and state and local leg-
islators to facilitate the pro-
der way with legislators, con-
sumer groups and others to do
just that.
One of private lender Reno-
Some investors also are
getting skittish. The New
York-based Heron Foundation,
with a goal of tackling poverty,
sult in homeowners being mis- first must pass legislation al- grams nationwide expansion, vate Americas largest and old- said it divested of its PACE
led about the terms of their according to state records and est partnerships is with a col- bonds after reading about bor-
loan, Mr. Sherman said. local officials. But PACE is fac- lection of Southern California rower problems in the Journal
Last year, the PACE indus- Republican ing mounting criticism nation- governments known as the and is separately looking into
try made $1.6 billion in loans, Sen. Tom wide from regulators, inves- Western Riverside Council of how the loans are made.
up about 28% from 2015, ac- Cotton wants tors and government officials Governments. The group is The foundation is con-
cording to an industry trade to tighten as borrower problems worsen. starting to register concerns cerned that PACE lenders by-
group. Lenders have made a regulation of In California, several state about its relationship with the pass traditional underwriting
total of $3.7 billion of loans lenders in the agencies have asked Gov. Jerry company, according to emails procedures, like a home-
since the industry was PACE program. Brown to make regulatory and released to the Journal owners ability to repay the
founded. By comparison, con- legislative changes to help through a public records re- loan, it wrote in a blog post
ventional mortgages increased fight against borrower abuse, quest. explaining the decision.
about 15% in 2016, according lowing the program to oper- say people familiar with the The council is reviewing its Skipping these investiga-
to Inside Mortgage Finance. ate. Then, local governments, requests. partnership with Renovate tions can lead to a big jump in
PACE loans are placed on a which ultimately will collect a A spokesman for the gover- America through an outside the cost of homeownership
homeowners tax bill as an as- homeowners taxes, vote to nors office said it supports examiner, according to county and potentially to the loss of
sessment and average about sign on. bolstering consumer protec- records. Renovate America the home, the foundation
$25,000. In the event of a de- PACE lenders have spent tions and discussions are un- said it supports the review. wrote.
ADVERTISEMENT
Eating Their Lunch
Total U.S. systemwide sales
growth, year-over-year
The Mart
To advertise: 800-366-3975 or WSJ.com/classieds
15%
Panera
BUSINESS OPPORTUNITIES
Top 500 'limited
12
service' chains*
  
 
 
was attractive because of the
possibility of gleaning even 9 
   
better returns by franchising   

    
    !"#$
% &'(
more of its restaurants. That 6 )*
+ *,,$,*-*
$.*  + !/!/01
could accelerate its expansion  23%  ,,%
&24(  ,,* 
RICHARD B. LEVINE/ZUMA PRESS

in the U.S., where some ana- 5%

. 4*  ,  '*,
* 
lysts see the potential for at 3 6 
 .*7% &6( % , %
2
 6 
 . 1""
least 1,000 more restaurants. 6 
  .    %  8$ 97/! # %
Only about 56% of Panera res- 0 ,:
%   '; /! #< 2;</!0#< $ 6
%  
taurants are currently oper- %:*%%   % #7!7/! # , $!! =%$ 

 
% 
ated by franchisees. 2012 13 14 15 16 
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  ,+77*%$$


Many restaurant companies *Includes restaurants without servers     
are moving to a fully fran- Source: Technomic Inc.   !"
 #$ 
chised model, which provides THE WALL STREET JOURNAL. The planned acquisition of Panera came as a surprise to investors.
more stable revenue and less BUSINESS FOR SALE BUSINESS OPPORTUNITIES
risk for the parent company at
a time of rising wages. Ana- Reclusive Investors opted Reimann siblingsWolf- investments in consumer-goods
lysts also say that while Pan- gang, Matthias, Stefan and Re- companies with premium ETHANOL PLANT SE COLO. National NNN
era is relatively lean, there With a Broad Reach natehave built a consumer- brands. Complete with land Stainless Equip Single Tenant Investor
may be room for cost cutting. goods powerhouse that JAB believes companies in Bldgs Power Water etc. Designed for
JAB brings coffee expertise, includes beauty-products pur- which it seeks to invest need
Seeking Partner
3.5 M gallons 200 proof alcohol per year.
and could help Panera increase JAB Holding Co.s deal to veyor Coty; luxury-goods to have a healthy combination Would sell equipment separately
w/$100K to $200K
the breakfast business, which acquire Panera Bread Co. brands Jimmy Choo, Bally and of top-line growth and cost op- Robert at 620-493-4704 805-267-1860
accounts for 18% of sales, an- marks the latest in a string of Belstaff; coffee companies Ja- timization to be prosperous
alysts at Cowen & Co. wrote. buyouts by representatives of cobs Douwe Egberts, Keurig over time, a company spokes-
Investment Opportunity Alcohol And Drug
JAB has built a far-flung one of Germanys wealthiest Green Mountain and Peets Cof- man said. BUSINESS OPPORTUNITIES
Addiction Treatment Center
collection of household brands and most reclusive families. fee & Tea; and Krispy Kreme Were not really looking to Experienced Treatment Center operator is
while keeping a low public The family dynasty dates to doughnuts and Einstein Bros. sell out of businesses, Mr. FARM WITH US raising $1,000,000-$5,000,000 in growth
profile. In May 2016, it 1823 when Johann Adam bagels. JAB also has a minority Becht told The Wall Street Red River Valley Farmer capital. Operator has successfully opened 8
Long term investment in a finite resource with centers throughout the United States.
notched a $1.35 billion deal to Benckiser founded a chemical stake in Reckitt Benckiser. Journal in 2014. Our time hori- stable returns. Seeking parties interested in https://sobanewjersey.com/ 973-590-2399
buy Krispy Kreme Doughnuts company bearing his name in Wealth-X estimates the zon can be anywhere from 10 investing in North Dakota farmland. Returns
Brianc@sobanewjersey.com
gained through cash rent or sharecrop lease.
Inc. Earlier that year, a JAB-led Pforzheim, Germany, according combined wealth of the four years tothere is no maxi- 1031 Exchange options available.
investor group completed its to wealth analysts Wealth-X. siblings at $16.2 billion. mum. For additional information see:
www.sproulefarms.com
acquisition of Keurig Green Chemist Ludwig Reimann The four, who reside out- Some investors say JABs paul@pdsproule.com TRAVEL
Mountain Inc. for about $14 joined as co-owner in 1828 and side Germany, leave day-to-day approach and aggressiveness is
billion. The Luxembourg-based later took over the company. business to JABs three senior similar to that of 3G Capital
investment funda money In 1999, a merger with partners: Peter Harf, a longtime Partners LP, the Brazilian pri-
10% ANNUAL INTEREST Save Up To 60%
Paid Quarterly
manager for Germanys Rei- British consumer-goods com- confidant of the family, Bart vate-equity company that has Limited Liability Company- 10 Notes
First & Business
mann familyhas more than pany Reckitt & Colman yielded Becht and Olivier Goudet. The snapped up several of the INTERNATIONAL
Available . Underlying Asset-operating
Major Airlines, Corporate Travel
$50 billion in assets under household-products company managers are also co-investors worlds biggest food companies seasoned NC Mobile Home Parks Minimum
Never Fly Coach Again!
Investment $50,000 Accredited Investors
management. Reckitt Benckiser. in the family fund. in recent years. www.cooktravel.net
Joshua Jamerson Through JAB, the four ad- JAB focuses on long-term Nina Adam larry.cavallaro@gmail.com (800) 435-8776
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * Thursday, April 6, 2017 | B3

BUSINESS NEWS

Jeff Bezos Plans to Put PepsiCo Pulls Ad Featuring Kendall Jenner Following Outcry

Tourists in Space by 18
BY ANDY PASZTOR ally dressed and sometimes
cracking jokes, an upbeat Mr.
COLORADO SPRINGSLook- Bezos reiterated his argument
ing to start space-tourism that lowering launch costs
flights in 2018 that he predicts promises a revolution in entre-
will open the floodgates for a preneurship and could provide a
new breed of entrepre- major boost for an array of
neurs, Amazon.com Inc. Chief startup companies world-wide.
Executive Jeff Bezos said in He said reaching the goal of af-
some years he has personally fordable space access depends
invested up to $1 billion to fur- on three variables: talented peo-
ther those goals. ple, money and patience. And
Flanked by a New Shepard we have all three, he said.
rocket featuring the telltale As one of the worlds most
scorch marks of multiple successful and widely known
flights, Mr. Bezos appeared be- entrepreneurs, Mr. Bezos has
fore a gaggle of reporters dur- pumped big chunks of his for-
ing a conference here Wednes- tune into Blue Origin. Until
day to lay out his vision for Wednesday, however, he kept
Blue Origin LLC, the company the amount confidential.
he founded more than a decade But in response to questions
ago to lower launch costs and about the companys finances,
make reusable rockets a reality. he said: I sell about $1 billion
He said he was hopeful that a year of Amazon stock, and I

Blue Origin will begin offering use it to invest in Blue Origin.
trips for paying customers next In another disclosure about
year, adding that Im super op- development of a future reus-
timistic there will be a large able, heavy-lift rocket called
market for such 11-minute thrill New Glennnamed for late as-
rides in a fully automated cap- tronaut John GlennMr. Bezos
sule offering views of the earth estimated that project alone
from the edge of space. Blue Ori- could cost as much as $2.5 bil-
gin hasnt yet set a price or be- lion.
gun marketing efforts. Veteran space industry offi-
But in his remarks, the often cials said the visual trappings
secretive Amazon chairman of Wednesdays event, with the
also laid out a much broader, entrepreneur standing on a
longer-term vision of how Blue stage against the backdrop of
Origins accomplishments so far snow-capped peaks of the
and its plans for the future are Rocky Mountains, partly re-
poised to usher in a golden age flected the simmering rivalry
of space exploration.
Wearing dark glasses, casu-
between Mr. Bezos and entre-
preneur Elon Musk.
Last month, Mr. Musks
Space Exploration Technolo-
gies Corp. made history by
successfully launching and
then vertically landing the
main part of a Falcon 9
booster for a second timeaf-
ter sending a huge commercial
satellite into orbit. Blue Origin
MATTHEW STAVER/BLOOMBERG NEWS
PepsiCo Inc. is yanking a
commercial that united liberals
and conservatives in a backlash
that swept across social media.
The 2-minute spot, devel-
oped by Pepsis in-house Cre-
ators League Studio and re-
leased online Tuesday, focuses
on racially diverse protesters
marching with signs declaring
Love, Peace and Join the
Conversation. A star of the ad
Ahead of Changes, Firm Exits Drug Group
BY JOSEPH WALKER
A manufacturer of expen-
sive branded drugs and ge-
neric opioids resigned from
the Pharmaceutical Research
and Manufacturers Associa-
is Kendall Jenner, a model and cracks it open, and the crowd
personality on the reality-televi- cheers.
sion show Keeping Up with the Criticism of the commercial
Kardashians, portraying a erupted online almost immedi-
model in a photo shoot who ately, before the ad aired on TV.
peels off her blond wig, wipes Some critics called it a tone-
off her lipstick and joins the deaf depiction of the Black
protesters as they approach a Lives Matter movement, while
line of stone-faced police offi- others accused it of being
cers. slanted against law enforce-
At the ads climax, she hands ment.
an officer a can of Pepsi. He Pepsi was trying to project
ers, will vote on changes to its person familiar with the mat-
membership criteria at its ter said.
next board meeting in May, Mallinckrodt routinely
the person said. The changes, evaluates its engagement in
if approved, would require trade associations and policy
that members are committed organizations and has con-
to conducting significant med- cluded that the significant fi-
PEPSI
a global message of unity, peace
and understanding. Clearly we
missed the mark, and we apolo-
gize, a Pepsi spokesman said.
We did not intend to make
light of any serious issue. We
are removing the content and
halting any further rollout. We
also apologize for putting Kend-
all Jenner in this position.
Jennifer Maloney,
Suzanne Vranica
whose members include Pfizer
Inc. and Merck & Co., has
grown weary of being associ-
ated with companies like Mall-
inckrodt that have smaller
R&D operations than PhRMAs
larger members, relying in

accomplished a similar feat
earlier and did it multiple
times, though New Shepard is
smaller, typically flies to a
lower altitude and hasnt
launched any satellites.
Asked about Mr. Musks ef-
forts, Mr. Bezos said were
very like-minded in a lot of
ways but the engineering ap-
Blue Origin founder Jeff Bezos proach is a little bit different.
tion on Monday ahead of po-
tential changes to the trade
groups bylaws that could ex-
clude companies that dont
spend significant funds on re-
searching and developing new
drugs, according to a person
familiar with the matter.
The Washington-based
group, which represents many
of the largest global drugmak-
ical and scientific research,
though the person didnt say
what the specific criteria
would be.
The drug company, Mall-
inckrodt PLC, decided to re-
sign from the group in antici-
pation of the membership
criteria being changed by the
board next month and possibly
excluding the company, the
nancial and time commitment
required as a full PhRMA
member outweighs its direct
policy value to us at this
time, the company said.
A PhRMA spokesman said
the groups review of its mem-
bership criteria would be com-
pleted in the next few weeks.
The proposed membership
changes suggest that PhRMA,
part on a different strategy:
acquiring drugs developed
elsewhere and then signifi-
cantly raising prices.
Amid increasing public
scrutiny of rising drug prices,
the group is focused on fend-
ing off any potential legisla-
tive changes that would
constrain the industrys pric-
ing power.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B4 | Thursday, April 6, 2017
Apple Pay Struggles to Gain Traction
BY TRIPP MICKLE
Nancy Schrum watched cu-
riously as a colleague from
her law firm waved an iPhone
above a credit-card reader to
buy a Subway sandwich with
Apple Pay earlier this year.
I have that, but Im afraid
to use it, said Ms. Schrum of
York, Pa., who feared the
technology wouldnt work.
When Apple Inc. launched
its mobile-payment service
more than two years ago, it
hoped to speed up the check-
out process and, ultimately,
to replace physical wallets for
U.S. consumers.
Apple Pay has made signif-
icant headway, but Ms.
Schrums wariness reflects a
range of factors that analysts
say have caused growth to
undershoot their expecta-
tions, including security con-
cerns about the service, re-
tailers that dont accept it,
and Apples relatively paltry
marketing.
The pace of Apple Pay
adoption has been disap-
pointing even to conservative
expectations, said Gene Mun-
ster, managing partner at
Loup Ventures, a venture-cap-
ital firm specializing in tech
research. Just 13% of the esti-
mated 680 million iPhone us-
ers have used Apple Pay, ac-
cording to the research firm.
FOWLER
Continued from page B1
star decision?
It gets worse when apps
use ratings to evaluate work-
ers. Uber drivers can get the
boot for relatively minor rat-
ings dips, though the com-
pany wont specify the cut-
off. It feels socially awkward
to give less than five stars.
Ubers stars arent for find-
ing good drivers, theyre for
flagging bad ones.
Yelp is using star ratings
to surface the best local
businesses. But when every
gelato shop has an above-par
ALWAYS ARRIVE WITH A PRISTINE SUIT
keeping them wrinkle free upon your arrival.
on the go
Have Your Say.
Become a WSJ Opinion
Leader to engage in forums,
discussions and surveys that
help shape the Journal.
wsjopinionleaders.com
Eddy Cue, Apple senior
vice president in charge of
internet software and ser-
vices, said the service has
been adopted faster than
other payment systems and
he believes it will eventually
replace cash, debit and credit
cards as the primary pay-
ment system.
Does it matter if we get
there in two years, three
years [or] five years? Mr.
Cue said in an interview. Ul-
timately, no.
The service requires users
to upload their credit or debit
card to their iPhone wallet by
scanning an image of it. To
pay at the checkout line, they
hold the phoneor Apple
Watchabove a contactless
payment terminal that uses a
technology known as near-
field communication to trans-
mit the cards information.
Fingerprint verification is re-
quired for security. The ser-
vice can also be used to pay
in apps and online.
Many U.S. consumers re-
main wary of such a service,
according to technology re-
search firm Creative Strate-
gies: 40% are concerned
about the security risks of
adding a credit or debit card
to their phone, and more than
60% arent familiar with con-
tactless payments.
Compounding Apple Pays
rating, we need other factors
to pick a winner. Thats one
reason Yelp requires partici-
pants to leave written re-
views. The downside: We
have to trust the taste of
people who have time to
write Yelp reviews.
And then theres cheat-
ing. Apps inflate ratings by
asking if users are happy
before prodding them to
write a review. (Not happy?
Heres customer service.)
Ive seen Uber drivers offer
to end the ride early, shav-
ing a bit off the price, in
exchange for a five-star rat-
ing. And thats not counting
reviews by paid shills or in-
ternet trolls.
upon arrival

www.VOCIER.com
2017 Dow Jones & Co. Inc. All rights reserved. 2DJ4976
TECHNOLOGY
Apple remains confident its mobile-payment service will supplant cash and debit and credit cards.
challenges, only a third of U.S.
stores accept it as a form of
payment, according to the Nil-
son Report. The payment-in-
dustry trade publication notes,
however, that the services
rate of acceptance has more
than doubled since 2015.
If you cant use it every-
where, why are you going to
switch? said Braden More,
Wells Fargo & Co.s head of
Amazon brought lawsuits
against over 1,000 defen-
dants for abuses such as
purchasing fake reviews; last
year, it changed its star sys-
tem to give more weight to
the most helpful reviews and
those from verified purchas-
ers. Airbnb discovered it got
more accurate reviews when
it made them double-blind in
2014: Hosts and guests dont
see each others reviews be-
fore posting.
Theres tension between
simplifying ratings to get
more people involved, and
asking for more details to
make ratings more useful.
When Netflix tested
thumbs, it found participa-
partnerships and industry re-
lations, who expresses sur-
prise that more retailers ha-
vent embraced mobile
payments. He expects accep-
tance and usage to grow.
Big names including Wal-
Mart Stores Inc. and Kroger
Co. havent yet enabled Apple
Pay, due in part to technical
hurdles, and even at stores
that do use the service, users
tion rates doubled to 40%.
Despite the loss of star-
specific granularity, Netflix
says people are also more
honest with thumbs, which
allows its software to
make suggestions that ac-
tually stick.
Uber also tested thumbs,
along with smiley-face
emojis, but says the alterna-
tives made riders even more
overly positiveand resulted
in lost feedback for drivers.
Uber did add menus to its
five-star system for rider
compliments and specific
criticisms.
To make star ratings less
inscrutable, TripAdvisor
presents both averages and
Ubers Only Female Director
Vows to Change Its Culture
BY GEORGIA WELLS
Media mogul Arianna Huff-
ington is taking a starring role in
Uber Technologies Inc.s effort
to overcome recent scandals.
The results could set her up
to be a hero to women in the
tech industryor risk her
credibility if the ride-hailing
company doesnt change.
Ms. Huffington, the only
woman on Ubers board and an
investor, is helping drive an in-
vestigation into allegations of
sexual harassment at the com-
pany. She has also pledged
sweeping changes to Ubers
culture, which employees say
fosters fierce competition for
management approval while
tolerating bad behavior by
high performers.
Her friendship with Ubers
founder and chief executive, Tra-
vis Kalanick, means she has his
ear. She is also positioned to call
for broad changes, such as her
comment last month that Uber
will exclude brilliant jerks in
its search for a new executive to
work with Mr. Kalanick.
But her ties as well could
diminish the independence
necessary to tackle Ubers
problems. In what experts see
as a misstep, she surmised
from interviews with staff
members in late March that
sexual harassment wasnt a
systemic problembefore
the investigation was com-
plete. The probe is expected to
conclude this month.
Saying something isnt a
systemic problem right off the
bat is not a judgment that in-
dicates an investigation is im-
partial,
Hutchinson,
says Y-Vonne
founder of
ReadySet, a diversity consult-
ing firm that works with many
Silicon Valley tech companies.
People close to Ms. Huffing-
ton say she stands up to Mr.
Kalanick. Anyone who knows
AriannaI doknows she
doesnt pull punches, says Ro-
sabeth Kanter, a professor of
strategy and management at
Harvard Business School. The
more important question is
whether the CEO and other
key executives will listen and
take new actions.
* *** THE WALL STREET JOURNAL.
WSJ.com/Tech
and add instructions to
checkout manuals. She said
more than half of the biggest
100 merchants in the U.S.
have adopted Apple Pay, in-
cluding Best Buy Co., Kohls
Corp. and Starbucks Corp.
Loup Ventures Mr. Mun-
ster, a longtime Apple analyst
previously with brokerage
Piper Jaffray Co., estimates
Apple Pay last year handled
$36 billion in transactions,
far less than the $207 billion
he had predicted by 2016 af-
ter Apple started the service.
Apple doesnt disclose the
number or value of Apple Pay
transactions, but Chief Execu-
tive Tim Cook recently said
the number of users has tri-
MAXIM ZMEYEV/REUTERS
pled over the past year and
transaction volume increased
more than sixfold last year.
Apple Pay brought in $30
million in revenue last year,
according to Sanford C. Bern-
steina fraction of the
$24.35 billion generated last
say cashiers often arent fa- fiscal year by Apples services
miliar with it. unit, which also comprises
Paul Davis said he recently Apples App store and iTunes.
had to inform a McDonalds The company announced in
cashier in Cincinnati that the January it aimed to double
burger chain accepted Apple its services revenue by 2021.
Pay and show her how. It Apple Pay generates revenue
happens all the time, he said. from charging banks a slice
Vice President of Apple Pay of each transaction, often
Jennifer Bailey said Apple has 0.15% per credit-card transac-
a team working with mer- tion and a half cent per
chants to instruct cashiers debit-card purchase
rankings. San Franciscos
Maritime Museum has 4.5
stars, for examplebut is ac-
tually only the citys 152nd
to five-star ratings, says
Matt Moog, chief executive
of PowerReviews.
What we really want is for
best attraction. these companies to get us.
Yelps search results are Alas, ratings get better when
ordered not just by average companies track more about
rating, but also by number of what you are doing
reviews, how recent they are whether you actually bought
and your distance from the the product or ate at the res-
business. Its top-listed SF taurant. Netflixs insights are
taco joint, El Farolito, has brilliant because the com-
just four stars but more pany knows what you
than 4,000 reviews. stopped watching after 10
Replacing star systems minutes.
wont be easy, because we A personalized recommen-
have become accustomed to dation is better than a four-
them. All kinds of compa- point-whatever star rating
nies have attempted to cre- any day of the week, but you
ate other scales, and most of only get it when youre re-
them end up reverting back ally plugged in.
GETTY IMAGES
Media mogul Arianna Huffington is helping lead an investigation
into allegations of sexual harassment at ride-hailing service Uber.
I have told Travis and the media call. Uber declined to
management team I will be comment on allegations of sys-
holding their feet to the fire, temic sexism.
Ms. Huffington said on a re- Ms. Huffington immediately
cent conference call about the jumped to action after the blog
steps Uber is taking in re- post, announcing on Twitter
sponse to allegations of sexual the same day that she would be
harassment and sexism. helping with an investigation
The allegations were of the claims starting now.
sparked by a blog post written The first day of work after
in February by former Uber en- Ms. Rigettis blog post, Ms.
gineer Susan Fowler Rigetti. Huffington met with employees
Mr. Kalanick condemned the at Ubers weekly all-hands
behavior described by Ms. meeting. She also invited em-
Rigetti in a statement following ployees to schedule talks with
her blog post, and said it was
the first he had heard of the al-
her in a conference room in
Ubers San Francisco headquar-
legations. What she describes ters, according to emails viewed
is abhorrent and against every- by The Wall Street Journal.
thing Uber stands for and be- Ms. Huffington, 66 years
lieves in, he said in a state- old, has run her own busi-
ment at the time. Uber declined nesses, including co-founding
to comment on the sexual-ha- the Huffington Post. In paral-
rassment allegations and the lel, she has weighed in on
continuing investigation.
The allegations have
shined a light on Ubers work-
place culture, which critics
womens issues for decades.
She wrote a book in 2006,
On Becoming Fearless...in
Love, Work, and Life, that
say is particularly toxic to was meant to empower
women. That has pointed to women. Her 2014 book
the need, experts say, for a Thrive placed blame on com-
strong advocate for women panies that expect employees
within the company, and Ms. to be wired in and responsive
Huffington has accepted that around the clocksomething
challenge. Ubers head of hu- employees have said of Uber.
man resources, Liane Horn- Ms. Huffington began talk-
sey, has also taken a public ing to Uber about changing
role since joining the com-
pany in January.
the burnout culture at Uber
shortly before the allegations
Clearly there is a lot of of sexism. An internal survey
work that needs to be done, showed widespread stress
Ms. Hornsey said in reference and burnout, Ms. Huffington
to Ubers culture on the recent said in an email.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Thursday, April 6, 2017 | B5

BUSINESS EDUCATION
JULIA ROBINSON FOR THE WALL STREET JOURNAL

The Top-Ranked MBA You Want.

Rena Pacheco-Theard started a test-preparation venture while she was a business student at MIT.

Schools Woo Entrepreneurs The Flexibility You Need.

M.B.A. programs hope
to bolster a shrinking
pool of applicants
BY KELSEY GEE
Millennial entrepreneurs
are starting to hear an unlikely
piece of advice when their ven-
tures stall: consider an M.B.A.
Graduate business programs
from Columbia University in
New York to the University of
California, Berkeley, Haas
School have spent millions of
dollars building innovation
centers and creating venture-
capital funds in recent years.
They are adding new courses
and deploying industry veter-
ans to teach, all in an effort to
recruit more would-be found-
ers.
A quarter of prospective
M.B.A. students aimed to start
a business in 2015, according to
the latest Graduate Manage-
ment Admission Council sur-
vey, up from 20% in 2010. Even
so, academia has been slow to
adapt, with fewer than 10% of
graduate business programs of-
fering degrees in entrepreneur-
ship last year, according to the
Association to Advance Colle-
giate Schools of Business.
The ballooning resources for
student ventures reflect a
streak of opportunism among
young entrepreneurs in need of
funding and university admis-
sions officers, who can proudly
plug graduates startups on
their schools websites. Some
administrators hope the in-
creasing interest among millen-
nials to create companies
rather than pursue traditional
post-M.B.A. careers like invest-
ment bankingwill reinflate a
shrinking pool of applicants to
U.S. business schools.
More of our students have
started multiple businesses al-
ready by the time they arrive,
said Sara Neher, assistant dean
of admissions at the University
of Virginias Darden School of
Business. For those that have
failed, when they talk to us
about why theyre applying, its
often I didnt have the busi-
ness skills to make it work.
Ahead of the pack, Darden
admissions officers now host
M.B.A. recruiting events at
startup incubators in New York
City, San Francisco and Wash-
ington. The school pitches
perks like free tuition for a
handful of seasoned founders.
Once they are on campus,
student entrepreneurs can en-
ter competitions for seed
money with no strings at-
tached, said Ms. Neher.
Tapping into the market of
hopeful founders, the Univer-
sity of Texas in Austins Mc-
Combs School of Business in-
vites prospective students to a
Shark Tank-style pitch com-
petition for as much as
$20,000 in scholarships to A TOP ONLINE MBA WITH A REAL-WORLD FOUNDATION
cover tuition. Annual applica-
tions have doubled to 30 since
Now you dont have to choose between working and earning your MBA at a
the scholarships 2013 launch,
and all but one of the nine top-ranked business school. The Online MBA program at Hofstra Universitys
winning entrepreneurs have Frank G. Zarb School of Business, the highest-ranked program in the NY
chosen to enroll. metropolitan area, offers exibility and a personal education with all the resources
Rena Pacheco-Theard ap- and connections that come from an internationally recognized university.
plied for a masters degree in
business at Massachusetts In-
stitute of Technologys Sloan Small Classes
School of Management as the A student-faculty ratio of 14-to-1 ensures you get the attention you need.
company she started with her
husband, Dan Driscoll, strug- Multinational Experience
gled. A global practicum exposes students to the workings of international business.
I knew I wanted to do work
with high social impact, but the
Top Faculty
business side of my resume
was missing, said Ms. Learn from full-time professors who are experts in their elds.
Pacheco-Theard.
During her second semester Sophisticated Students with extensive business experience.
at MIT, she started a new ven-
ture called Prepify, which pro- The Online MBA is one of many programs offered by the
vides test preparation services Zarb School of Business, including an Executive MBA, an
to low-income high-schoolers.
She used roughly half of her MBA in Manhattan, a full-time cohort MBA (that includes
business-school class time to a co-op experience), and on campus full and part-time
fine-tune the startups model. graduate business programs.
She left MIT last spring with a
degree, a co-founder classmate
and a total of $15,000 in fund- LEARN MORE AT HOFSTRAMBA.COM
ing from the school. Becoming
From The Princeton Review, September 2016 TPR Education. All rights reserved. Used by
a real entrepreneur became a permission and protected by the Copyright Laws of the United States. The printing, copying,
distinct reality for the first redistribution, or retransmission of this content without express written permission is prohibited.
time at Sloan, said Ms.
Pacheco-Theard.

THIS IS MY
LECTURE HALL
Where academic excellence meets real-world experience.
Where forward-thinkers, innovators, and leaders achieve success.
Where dreams become reality.

This is Pace.
my.pace.edu
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B6 | Thursday, April 6, 2017
VICTOR J. BLUE/BLOOMBERG NEWS
Wells Fargo has fired at least two dozen employees of its merchant-services division over two years.
Wells Uncovers More Abuses
Internal probe finds
false reporting in
card-processing work
for small businesses
BY EMILY GLAZER
AND RUTH SIMON
Wells Fargo & Co. has
overhauled its credit-card-pro-
cessing business after an in-
ternal probe found some em-
ployees falsely reported
customers sales and pushed
small firms into costly con-
tracts they didnt understand.
The bank has fired at least
two dozen employees of Wells
Fargo Merchant Services LLC
in the past two years for those
and other bank-policy viola-
tions, according to current
managers. Wells Fargo also re-
structured the group last fall
to reduce the incentives for
using aggressive sales tactics,
the executives said.
The actions, which havent
been previously reported,
show how Wells Fargos sales-
tactics problems extended be-
yond its consumer bank. That
business was hit by last falls
revelation that employees
opened as many as 2.1 million
consumer-banking accounts
without customers knowledge
SPONSORED BY:
to meet lofty sales goals.
Wells Fargo discovered the
full scale of abuses in the mer-
chant-services business after
undertaking a broad examina-
tion of the banks business
practices in light of the ac-
count-opening scandal.
Wells Fargo said it has
taken significant steps over
the past several years to
strengthen Wells Fargo Mer-
chant Services, its merchant-
processing unit for credit- and
debit-card payments. The bank
had fired some merchant-pro-
cessing employees before the
wider scandal broke last fall.
After taking a deeper look into
the business in the wake of
those problems, it terminated
several other employees and
revamped the division.
Merchant processing, which
involves helping businesses
handle debit- and credit-card
transactions for customers,
might seem like a mundane
business. But small-business
owners and industry partici-
pants say high-pressure sales
tactics are common. They add
that complex pricing struc-
tures and costly early-termi-
nation penalties that can lock
customers into contracts are
also prevalent.
Merchant processors col-
lected about $18.15 billion in
BUSINESS & FINANCE
debit- and credit-card fees
from merchants in 2016, ac-
cording to the Nilson Report,
a newsletter tracking the pay-
ments industry. Banks such as
Wells Fargo, Bank of America
Corp. and J.P. Morgan Chase &
Co. are among the biggest
players.
Wells Fargo fired some
staff in this business for policy
violations after uncovering ev-
idence that employees
coached branch bankers to put
false information into the
banks systems about small-
business customers sales, the
current managers said.
Firms with annual sales of
less than $750,000 seeking to
open accounts were automati-
cally routed to call centers,
under Wells Fargo policies at
the time. To earn commis-
sions, sales representatives
sometimes inflated sales fig-
ures so they surpassed the
threshold.
As part of its broader over-
haul of sales tactics last fall,
the bank ended the practice of
allowing retail-branch bankers
to refer small-business cus-
tomers to merchant-services
employees without manager
consent. That has caused re-
ferrals to the merchant-ser-
vices unit to fall more than
50%, a former employee said.
HOLMES
Continued from page B1
agreed to pay the company for
the shares later, one of the
people said.
Ms. Holmes didnt get any
company cash from the ar-
rangement, the person said. It
isnt clear when the pact was
struck. The company has the
ability to release Ms. Holmes
from the debt or cancel the
shares, the person said.
It subverts the entire
premise of an option grant,
said Nell Minow, vice chair of
ValueEdge Advisors, a corpo-
rate governance consulting
firm, who said such grants are
traditionally meant to encour-
age executives to produce re-
sults for their shareholders.
The deal between Theranos
and Ms. Holmes means any
downside is someone elses
risk, Ms. Minow said.
Closely held companies like
Theranos often make loans and
other agreements to top exec-
utives, said Charles Elson, a
management professor at the
University of Delaware. Pub-
licly traded companies are
generally barred from financ-
ing executives exercise of
stock options by the Sarbanes-
Oxley law, he said.
Ms. Holmes has never sold
any of her shares, including
those associated with the debt,
people familiar with the mat-
ter said.
Investors who agree not to
sue Theranos would receive a
significant portion of Ms.
Holmess holdings, which cur-
rently amount to over 50% of
the company, people familiar
with the pending offer said. In-
vestors have until April 14 to
choose whether or not to ac-
cept the deal, which would go
into effect then. The Wall
Street Journal first reported
on the deal last month.
People close to Ms. Holmes
say she has lived an austere
lifestyle and has been in-
tensely focused on the com-
pany since she founded it in
2004. She has led Theranos
through increasingly intense
scrutiny from investors, regu-
lators and law enforcement in
the months since an article in
the Journal raised questions
Micro Trends,
Macro Context.
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* * THE WALL STREET JOURNAL.
Theranos Inc. founder Elizabeth Holmes
about the firms technology
and practices.
The company closed its labs
last year under pressure from
regulators, saying it would
shift its focus to developing
lab devices to sell to others. It
faces civil and criminal federal
investigations that have exam-
ined the claims the company
made about technology it said
could do dozens of lab tests on
a few drops of blood. Theranos
has said it is cooperating with
the probes.
Theranos also is fighting
suits that allege it overstated
its technology and capabilities
by plaintiffs including its for-
mer retail partner Walgreens,
a unit of Walgreens Boots Al-
liance Inc.; a hedge fund that
invested nearly $100 million in
the firm; and limited partners
in funds that bought Theranos
shares, which seeks class-ac-
tion status.
The suits seek a combined
total of around $240 million
from Theranosfar more than
the roughly $150 million the
company has remaining, ac-
cording to a person familiar
with the firm.
Theranos has said the suits
are without merit, and argues
that the plaintiffs seeking class
action lack standing because
they didnt invest directly.
The plaintiffs in that case,
including retired Silicon Valley
deal maker Robert Colman,
asked a magistrate judge in
federal court in San Francisco
last week to delay the deal
Theranos wants to strike with
investors pending a court re-
view to determine whether it
would interfere with their
case.
The filing called the ar-
NIKKI RITCHER FOR THE WALL STREET JOURNAL
rangement an unprecedented
campaign to preempt their
case by selectively settling
with only some investors.
The judge agreed to hear
arguments over that motion on
Friday. Mr. Colman bought an
interest in a Lucas Venture
Group fund that existed solely
to invest money in Theranos,
according to court filings.
Lucas Venture Group told
investors it had agreed last
week to participate in the deal
with Theranos, the filing said.
Lucas Venture Group declined
to comment.
Theranos said in a court fil-
ing Wednesday that the inves-
tors who are participating in
the deal consist of approxi-
mately 40 funds, family of-
fices, and wealthy individuals
with average investments of
approximately $17.5 million
who are highly sophisticated
and are well apprised of the
companys legal risks.
Theranoss filing said the
company had been negotiating
the proposed deal with its
most recent investorsthose
who bought certain series of
shares first registered in 2010
and 2014since August. The
filing said the investors initi-
ated the negotiations, and that
the deal hadnt been conceived
to undermine Mr. Colmans
case against Theranos.
Most investors who were
offered the deal signaled they
will take it, according to peo-
ple familiar with the matter.
The Journal attempted to
contact more than 120 Thera-
nos investors last week by
email. Most declined to com-
ment, said their shares
werent covered by the deal,
or didnt respond.
2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5213
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Thursday, April 6, 2017 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
20648.15 t 41.09, or 0.20% Trailing P/E ratio * 21.06 18.10 2352.95 t 7.21, or 0.31% Trailing P/E ratio * 24.75 23.82 5864.48 t 34.13, or 0.58% Trailing P/E ratio * 25.97 22.00
High, low, open and close for each P/E estimate * 17.72 16.69 High, low, open and close for each P/E estimate * 18.28 17.49 High, low, open and close for each P/E estimate * 20.38 18.54
trading day of the past three months. Dividend yield 2.36 2.55 trading day of the past three months. Dividend yield 1.97 2.20 trading day of the past three months. Dividend yield 1.11 1.25
All-time high 21115.55, 03/01/17 All-time high: 2395.96, 03/01/17 All-time high: 5914.34, 03/30/17

Current divisor 0.14602128057775

21500 2390 5860
Session high
DOWN UP 21000 2350 5750
t

Session open Close

Close Open
t

20500 2310 5640

Session low

20000 2270 5530

65-day moving average 65-day moving average

19500 2230 5420

65-day moving average

19000 2190 5310

Bars measure the point change from session's open

18500 2150 5200
Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar.
* P/E data based on as-reported earnings from Birinyi Associates Inc.

Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 942,088,393 13,259,339
Industrial Average 20887.50 20639.55 20648.15 -41.09 -0.20 21115.55 17140.24 16.6 4.5 8.0 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 249,871,525 4,452,532
Transportation Avg 9210.93 9087.46 9095.98 -4.69 -0.05 9593.95 7093.40 17.3 0.6 6.3 Most-active issues in late trading Decl. volume* 678,411,768 7,668,720
Utility Average 704.93 697.40 704.17 4.28 0.61 720.45 625.44 7.3 6.8 9.8 Volume After Hours Issues traded 3,110 337
Company Symbol (000) Last Net chg % chg High Low Advances 1,026 129
Total Stock Market 24636.43 24324.10 24346.80 -100.90 -0.41 24868.78 20583.16 14.7 4.6 7.5
Frontier Communications FTR 14,962.0 2.18 0.06 2.83 2.18 2.11 Declines 1,973 180
Barron's 400 624.65 613.59 614.12 -5.78 -0.93 635.07 491.89 19.0 2.1 6.0
SPDR S&P 500 SPY 9,909.9 234.35 -0.43 -0.18 236.25 234.29 Unchanged 111 28
Nasdaq Stock Market iSh Curr Hdg MSCI Germany HEWG 7,627.4 27.75 0.17 0.61 27.75 27.75 New highs 96 11
Nasdaq Composite 5936.39 5856.26 5864.48 -34.13 -0.58 5914.34 4594.44 19.2 8.9 12.4 Colony NorthStar CLNS 6,093.9 12.72 -0.31 -2.38 13.17 12.65 New lows 28 8
5479.86 5409.04 Closing tick 258
Nasdaq 100 5418.52 -21.88 -0.40 5440.41 4201.05 19.3 11.4 15.3 Turquoise Hill Resources TRQ 5,798.9 3.08 unch. 3.09 3.08
Closing Arms 1.53 1.49
iShares Russell 2000 ETF IWM 4,851.3 133.90 -0.43 -0.32 135.75 133.73
Standard & Poor's Block trades* 7,196 169
-0.31
Acadia Healthcare ACHC 4,445.7 44.08 -0.04 -0.09 44.49 43.91
500 Index 2378.36 2350.52 2352.95 -7.21 2395.96 2000.54 13.9 5.1 8.1 Nasdaq NYSE Arca
iPath S&P 500 VIX ST Fut VXX 3,070.0 16.28 0.11 0.68 16.42 16.17
MidCap 400 1721.57 1693.16 1694.79 -13.14 -0.77 1758.27 1416.66 18.0 2.1 7.4 Total volume*2,187,650,622 365,275,692
SmallCap 600 837.14 818.25 819.49 -9.30 -1.12 862.21 668.72 20.8 -2.2 7.3 Percentage gainers Adv. volume* 702,102,150 121,504,192
Decl. volume*1,464,676,204 240,275,331
Other Indexes Yum China Holdings YUMC 734.4 31.26 3.08 10.93 32.00 28.18
Issues traded 2,988 1,343
Russell 2000 1381.34 1350.96 1352.14 -16.03 -1.17 1413.64 1089.65 21.9 -0.4 5.4 Kopin KOPN 35.8 4.13 0.34 8.97 4.22 3.79
Advances 788 503
NYSE Composite 11560.82 11418.86 11423.36 -47.18 -0.41 11661.22 9973.54 12.4 3.3 2.8 Merrimack Pharmaceuticals MACK 125.3 3.28 0.15 4.79 3.35 3.13 Declines 2,062 816
Value Line 519.63 511.15 511.58 -3.69 -0.72 529.13 435.06 14.0 1.1 1.4 Bed Bath Beyond BBBY 1,257.8 39.41 1.61 4.26 40.81 36.74 Unchanged 138 24
NYSE Arca Biotech 3537.70 3440.27 3449.61 -70.74 -2.01 3642.30 2818.70 6.2 12.2 11.3
Jazz Pharmaceuticals JAZZ 32.3 146.35 5.70 4.05 148.25 140.49 New highs 85 67
New lows 66 11
NYSE Arca Pharma 512.66 507.81 507.96 -3.04 -0.59 554.66 463.78 -1.1 5.5 0.9 ...And losers
Closing tick 34 114
KBW Bank 92.98 90.58 90.63 -0.93 -1.02 99.33 60.27 41.9 -1.3 8.1 8Point3 Energy Partners CAFD 60.5 11.50 -1.71 -12.94 13.60 10.82 Closing Arms 0.80 1.28
PHLX Gold/Silver 86.86 84.99 86.35 0.07 0.08 112.86 69.88 23.6 9.5 -2.5 Synacor SYNC 31.1 3.65 -0.50 -12.05 4.10 3.55 Block trades* 10,392 1,872
PHLX Oil Service 173.88 168.13 168.49 -0.74 -0.44 192.66 148.37 9.6 -8.3 -16.7 Resources Connection RECN 13.9 14.60 -1.45 -9.03 16.05 14.50 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX Semiconductor 1010.02 992.76 993.53 -6.95 -0.69 1012.29 630.77 46.5 9.6 19.7 Innocoll Holdings INNL 97.5 2.05 -0.14 -6.39 2.18 2.00 (TRIN) A comparison of the number of advancing and declining
12.89 10.90 1.10 25.76 10.58 -8.2 issues with the volume of shares rising and falling. An
CBOE Volatility 12.89 9.33 -8.5 -2.6 Dell Technologies Cl V DVMT 82.8 60.26 -3.76 -5.87 64.88 60.26 Arms of less than 1 indicates buying demand; above 1

Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2684.47 3.75 0.14 6.0 China Auto Logistics CALI 4.04 1.19 41.75 4.69 0.99 292.2 Benitec Biopharma ADR BNTC 3.29 -0.81 -19.76 5.48 1.20 95.8
The Global Dow Euro 2370.53 3.31 0.14 4.9 EnviroStar EVI 21.90 2.75 14.36 25.00 3.25 525.6 Cyclacel Pharmaceuticals CYCC 6.68 -1.49 -18.24 10.90 3.05 35.4
DJ Global Index 346.00 0.56 0.16 6.1 Panera Bread Cl A PNRA 312.94 38.94 14.21 313.41 185.69 48.2 Aralez Pharmaceuticals ARLZ 1.77 -0.35 -16.51 6.80 1.74 -59.0
World DJ Global ex U.S. 229.80 0.13 0.06 7.4 Wecast Network WCST 2.60 0.32 14.04 2.76 1.10 40.5 Aehr Test Systems AEHR 3.77 -0.66 -14.90 6.10 0.95 185.6
Americas DJ Americas 567.27 1.93 0.34 5.0 Landec LNDC 13.10 1.40 11.97 15.50 9.85 28.8 PolarityTE COOL 13.12 -2.28 -14.81 18.90 2.61 142.0
Brazil Sao Paulo Bovespa 64774.76 994.15 1.51 7.6 Southcross Engy Partners SXE 4.08 0.42 11.48 4.15 1.05 254.8 NewLink Genetics NLNK 17.88 -2.91 -14.00 25.17 9.23 -7.6
Canada S&P/TSX Comp 15642.99 26.08 0.17 2.3 Neos Therapeutics NEOS 8.00 0.80 11.11 11.35 4.85 -24.9 Celadon Group CGI 5.40 -0.83 -13.32 12.03 4.85 -45.2
Mexico IPC All-Share 49207.61 135.16 0.27 7.8 Greenbrier Cos GBX 47.25 4.30 10.01 49.50 25.90 60.6 Applied Optoelectronics AAOI 44.68 -6.51 -12.72 60.19 8.08 200.3
Chile Santiago IPSA 3761.35 36.32 0.98 16.7 Alere ALR 43.43 3.73 9.40 50.74 31.47 -14.2 ITUS ITUS 2.38 -0.33 -12.04 6.82 2.35 -16.4
0.02 Kandi Technologies Group KNDI 4.10 0.35 9.33 8.24 3.40 -41.5 Qualstar QBAK 4.41 -0.55 -11.09 10.00 2.16 54.7
Europe Stoxx Europe 600 380.09 0.06 5.2
Euro zone Euro Stoxx 371.74 0.49 0.13 6.1 DHI Group DHX 4.40 0.35 8.64 8.43 3.90 -44.4 Quotient Ltd. QTNT 5.98 -0.72 -10.75 12.96 3.75 -32.0
Belgium Bel-20 3808.75 3.63 0.10 5.6 LM Funding America LMFA 4.23 0.33 8.36 9.50 3.75 -48.8 Catalyst Biosciences CBIO 7.33 -0.87 -10.61 50.70 4.61 -72.7
France CAC 40 5091.85 9.28 0.18 4.7 Auxilio AUXO 6.00 0.46 8.30 6.46 2.25 119.8 Idera Pharmaceuticals IDRA 2.21 -0.26 -10.53 3.33 1.19 10.5
Germany DAX 12217.54 64.80 0.53 6.4 Yingli Green Energy ADR YGE 3.12 0.23 7.96 5.30 1.85 -32.0 Interpace Diagnostics IDXG 2.22 -0.26 -10.48 19.80 0.70 -41.6
1409.90 1.13 4.1 Broadvision BVSN 4.80 0.35 7.87 7.03 4.40 -26.5 Infinity Pharmaceuticals INFI 2.80 -0.31 -9.97 6.63 0.84 -54.8
Israel Tel Aviv 15.79
Italy FTSE MIB 20253.37 3.73 0.02 5.3
Netherlands AEX 514.89 0.84 0.16 6.6 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10402.70 41.50 0.40 11.2
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 556.72 1.20 0.21 4.1 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 8640.51 6.48 0.07 5.1
Plug Power PLUG 134,067 2003.1 2.25 73.08 2.40 0.83 Panera Bread Cl A PNRA 12,159 1935 312.94 14.21 313.41 185.69
U.K. FTSE 100 7331.68 9.86 0.13 2.6
Finl Select Sector SPDR XLF 102,946 49.9 23.47 -0.76 25.30 17.31 SPDR S&P Emerg Mkts SC EWX 1,494 1841 45.89 -0.02 46.20 36.78
Asia-Pacific DJ Asia-Pacific TSM 1551.87 1.41 0.09 9.1 SPDR S&P 500 SPY 98,482 27.5 234.78 -0.30 240.32 198.65 First Trust Muni CEF Incm MCEF 161 1661 18.51 -0.22 20.35 17.93
Australia S&P/ASX 200 5876.20 19.60 0.33 3.7 Bank of America BAC 95,179 -2.7 23.17 -1.15 25.80 12.05 Quotient Ltd. QTNT 867 1407 5.98 -10.75 12.96 3.75
China Shanghai Composite 3270.31 47.79 1.48 5.4 Chesapeake Energy CHK 81,100 108.5 6.11 -3.32 8.20 3.54 Corvus Pharmaceuticals CRVS 1,739 1296 10.10 -2.51 22.14 8.27
Hong Kong Hang Seng 24400.80 139.32 0.57 10.9 Direxion Jr Gold Bull 3X JNUG 75,872 21.6 6.96 -0.85 33.29 3.77 PwrShs DB G10 Cur Harvest DBV 330 1291 25.24 0.08 26.03 22.98
India S&P BSE Sensex 29974.24 64.02 0.21 12.6 iPath S&P 500 VIX ST Fut VXX 65,735 44.0 16.17 3.13 77.48 15.30 TASER International TASR 10,269 1066 21.90 -0.45 30.15 17.18
Japan Nikkei Stock Avg 18861.27 51.02 0.27 1.3 Frontier Communications FTR 65,722 64.5 2.12 -0.70 5.75 1.92 Gl Partner Acquisition GPAC 251 1053 10.00 -0.50 10.50 9.46
Singapore Straits Times 3176.55 2.51 0.08 10.3 VanEck Vectors Gold Miner GDX 64,558 -3.0 23.48 0.13 31.79 18.58 Stellus Capital Invt SCM 918 928 14.10 -2.02 14.82 9.62
South Korea Kospi 2160.85 0.25 0.01 6.6 DryShips DRYS 60,239 113.2 1.03 -16.94 2227.20 1.00 Universal Logistics ULH 139 837 13.35 -2.20 17.70 11.09
Taiwan Weighted 9949.48 137.96 1.41 7.5 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS Currencies CURRENCIES

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Wed YTDchg
in US$ per US$ (%) Country/currency
Wed YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .02895 34.540 3.5
A consumer rate against its 5-year CDs Vietnam dong .00004407 22690 0.4
5.00% Argentina peso .0650 15.3960 3.0
benchmark over the past year 18% Brazil real .3205 3.1205 4.1 Europe
Bankrate.com avg: 1.30%
4.00 Canada dollar .7443 1.3436 0.04 Czech Rep. koruna .03944 25.357 1.3
Capital One 360 2.30% 12 WSJ Dollar index
s Chile peso .001520 658.00 1.8 Denmark krone .1434 6.9731 1.4
Yen
s

2.00% Glen Allen, VA 800-289-1992 .0003497 2859.67 4.7 1.0665 .9377 1.4
3.00 6 Colombia peso Euro area euro
Five-year CD yields Home Savings Bank 2.30% Ecuador US dollar 1 1 unch Hungary forint .003436 291.03 1.1
1.50 Wednesday 2.00
t

Salt Lake City, UT 801-487-0811 0 Mexico peso .0531 18.8287 9.2 Iceland krona .008899 112.37 0.5
t Peru new sol .3079 3.248 3.1 Norway krone .1161 8.6101 0.4
1.00 Popular Direct 2.30% 1.00 6 s Uruguay peso .03504 28.5400 2.8 Poland zloty .2519 3.9706 5.2
Federal-funds One year ago
t

NY, NY 800-274-5696 Euro Venezuela b. fuerte .100150 9.9851 0.1 Russia ruble .01775 56.347 8.0
target rate 0.00
0.50 State Farm Bank 2.30% 12 Asia-Pacific Sweden krona .1113 8.9884 1.3
t 1 3 6 1 2 3 5 710 30
Bloomington, IL 2016 2017 Switzerland franc .9951 1.0049 1.4
877-734-2265 Australian dollar .7570 1.3210 4.9
0.00 month(s) years Turkey lira .2703 3.6992 5.0
Synchrony Bank 2.30% China yuan .1450 6.8988 0.7
A M J J A S O N D J F MA maturity Ukraine hryvnia .0368 27.1600 0.3
Hong Kong dollar .1287 7.7691 0.2
2016 2017 Morristown, NJ 800-903-8154 UK pound 1.2483 .8011 1.1
India rupee .01537 65.055 4.3
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000751 13319 1.5
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .009033 110.70 5.4 Bahrain dinar 2.6529 .3770 0.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003208 311.69 6.6 Egypt pound .0556 18.0015 0.7
Federal-funds rate target 0.75-1.00 0.75-1.00 0.25 l 1.00 0.75 Corporate Borrowing Rates and Yields Macau pataca .1254 7.9766 0.8 Israel shekel .2742 3.6470 5.2
Malaysia ringgit .2256 4.4325 1.2 Kuwait dinar 3.2784 .3050 0.2
Prime rate* 4.00 4.00 3.50 l 4.00 0.75 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6965 1.4358 0.6 Oman sul rial 2.5974 .3850 0.01
Libor, 3-month 1.15 1.15 0.62 l 1.16 0.92 Pakistan rupee .00955 104.700 0.3 Qatar rial .2747 3.641 0.01
Money market, annual yield 0.34 0.34 0.22 l 0.34 -0.07 Treasury, Ryan ALM 1438.829 2.011 2.055 2.237 1.141 1.997 2.948 Philippines peso .0199 50.183 1.2 Saudi Arabia riyal .2666 3.7503 0.01
Five-year CD, annual yield 1.30 1.28 1.17 l 1.30 -0.09 10-yr Treasury, Ryan ALM 1710.602 2.352 2.385 2.609 1.366 0.269 3.226 Singapore dollar .7137 1.4011 3.2 South Africa rand .0724 13.8055 0.8
30-year mortgage, fixed 4.07 4.14 3.43 l 4.33 -0.40 South Korea won .0008863 1128.27 6.6
DJ Corporate 365.284 3.152 3.204 3.390 2.460 1.713 3.747 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065880 151.79 2.3
15-year mortgage, fixed 3.28 3.34 2.70 l 3.50 -0.21 Aggregate, Barclays Capital 1897.130 2.580 2.610 2.790 1.820 0.387 2.719 Taiwan dollar .03291 30.390 6.4 WSJ Dollar Index 90.48 0.02 0.03 2.65
Jumbo mortgages, $424,100-plus 4.63 4.68 4.02 l 4.88 -0.14 High Yield 100, Merrill Lynch 2759.879 5.390 5.544 6.835 5.200 13.463 3.209 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM) 3.34 3.39 2.97 l 4.03 -0.32
Fixed-Rate MBS, Barclays 1952.940 2.860 2.920 3.120 1.930 0.284 2.703
New-car loan, 48-month 3.36 3.35 2.87 l 3.36 0.41
HELOC, $30,000 4.87 4.86 4.56 l 4.96 0.04
Muni Master, Merrill 507.114 2.112 2.109 2.516 1.297 0.326 2.952 COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 770.159 5.669 5.663 6.290 5.134 9.150 5.598 Commodities Wednesday 52-Week YTD
banks. Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 568.10 2.39 0.42 589.81 464.81 22.00 0.15

ONLINE 186.15 0.30 195.82 11.12 -3.31

WSJ
TR/CC CRB Index 0.55 166.84
Crude oil, $ per barrel 51.15 0.12 0.24 54.45 37.26 35.50 -4.78
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Natural gas, $/MMBtu 3.266 -0.027 -0.82 3.93 1.90 70.91 -12.30
.COM
Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com Gold, $ per troy oz. 1245.40 -9.60 -0.76 1364.90 1127.80 1.87 8.30
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Thursday, April 6, 2017 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest
Cash Prices Wednesday, April 05, 2017
Metal & Petroleum Futures Coffee (ICE-US)-37,500 lbs.; cents per lb. These prices reflect buying and selling of a variety of actual or physical commodities in the marketplace
Contract Open
May 138.50 139.25 137.00 137.30 .45 76,708 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
July 140.70 141.45 139.35 139.60 .45 57,046
Open High hi lo Low Settle Chg interest months.
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Copper-High (CMX)-25,000 lbs.; $ per lb. May 16.63 t 16.95
16.05 16.10 .06 281,770
Wednesday Wednesday Wednesday
April 2.6400 2.6870 2.6400 2.6755 0.0695 1,541 July 16.72 t 17.06
16.20 16.24 .09 202,150 Coins,wholesale $1,000 face-a 14005 Soybeans,No.1 yllw IL-bp,u 9.0750
May 2.6200 2.6950 2.6135 2.6800 0.0680 120,250 Energy 5.9700
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Other metals Wheat,Spring14%-pro Mnpls-u
Gold (CMX)-100 troy oz.; $ per troy oz. May 28.60 28.75 t 28.50 28.55 .15 767 Propane,tet,Mont Belvieu-g 0.6253 Wheat,No.2 soft red,St.Louis-bp,u 4.2100
April 1255.40 1255.40 1243.00 1245.40 9.60 2,367
LBMA Platinum Price PM *958.0
Sept 28.75 28.75 t 28.60 28.70 .15 1,540 Butane,normal,Mont Belvieu-g 0.7488 Platinum,Engelhard industrial 965.0 Wheat - Hard - KC (USDA) $ per bu-u 3.8000
June 1258.20 1259.30 1245.40 1248.50 9.90 307,520
Cotton (ICE-US)-50,000 lbs.; cents per lb. NaturalGas,HenryHub-i 3.210 Platinum,Engelhard fabricated 1065.0 Wheat,No.1soft white,Portld,OR-u 4.6488
Aug 1260.90 1262.40 1248.80 1251.80 10.00 41,808
May 74.65 75.19 74.65 74.87 .02 118,979 NaturalGas,TranscoZone3-i 3.160
Oct 1263.50 1265.50 1252.00 1255.00 10.00 5,992 Palladium,Engelhard industrial 820.0 Food
Dec 72.91 73.68 72.85 73.39 .40 79,103 NaturalGas,TranscoZone6NY-i 3.140
Dec 1267.80 1268.70 1255.70 1258.30 9.90 43,894
Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Palladium,Engelhard fabricated 920.0
Feb'18 1268.20 1271.50 1261.70 1261.50 9.90 7,349 NaturalGas,PanhandleEast-i 2.950 Aluminum, LME, $ per metric ton *1938.0 Beef,carcass equiv. index
May 160.00 161.95 158.00 160.75 5.65 6,252 NaturalGas,Opal-i 2.910 193.64
Palladium (NYM) - 50 troy oz.; $ per troy oz. Copper,Comex spot 2.6755 choice 1-3,600-900 lbs.-u
July 154.50 156.05 151.65 154.15 3.95 3,416 3.000
April 788.00 803.45 788.00 807.75 0.80 5 NaturalGas,MarcellusNE PA-i Iron Ore, 62% Fe CFR China-s 81.0 select 1-3,600-900 lbs.-u 184.64
May 809.75 809.75 809.75 807.75 0.80 3 NaturalGas,HaynesvilleN.LA-i 3.160 Broilers,dressed 'A'-u n.a.
Interest Rate Futures Shredded Scrap, US Midwest-s,w 325
June 807.70 816.45 s 801.80 807.75 0.80 32,946 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 51.750 Broilers, National comp wghtd-u,w 0.9845
Sept 803.00 815.00 s 803.00 808.05 0.90 958
Steel, HRC USA, FOB Midwest Mill-s 659
Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.500 Butter,AA Chicago 2.1450
Platinum (NYM)-50 troy oz.; $ per troy oz. June 151-180 152-030 150-270 151-160 5.0 639,961 Fibers and Textiles Cheddar cheese,bbl,Chicago 145.75
April 960.30 964.40 955.60 956.40 4.80 225 Metals
Sept 150-000 150-230 149-210 150-090 4.0 75 Cheddar cheese,blk,Chicago 150.00
Oct 968.40 975.30 960.00 963.10 5.00 3,358 Burlap,10-oz,40-inch NY yd-n,w 0.6200
Treasury Notes (CBT)-$100,000; pts 32nds of 100% Gold, per troy oz Milk,Nonfat dry,Chicago lb. 80.00
Silver (CMX)-5,000 troy oz.; $ per troy oz. Cotton,1 1/16 std lw-mdMphs-u 0.7237
April 18.215 18.215 18.165 18.166 0.136 405
June 124-295 125-095 124-240 125-015 .5 3,026,460 Engelhard industrial 1252.78 Cocoa,Ivory Coast-w 2351
Sept 124-215 124-295 124-155 124-215 1.0 1,116 Cotlook 'A' Index-t *86.00 Coffee,Brazilian,Comp 1.3806
May 18.320 18.325 18.145 18.187 0.136 155,439 Engelhard fabricated 1346.74
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Hides,hvy native steers piece fob-u n.a. Coffee,Colombian, NY 1.5712
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Handy & Harman base 1245.80
June 117-295 118-062 117-267 118-007 1.5 2,974,983 Handy & Harman fabricated 1382.83
Wool,64s,staple,Terr del-u,w 4.45 Eggs,large white,Chicago-u 0.8050
May 51.18 51.88 50.74 51.15 0.12 545,892
June 51.63 52.33 51.20 51.60 0.09 337,612 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% LBMA Gold Price AM *1258.65 Grains and Feeds Flour,hard winter KC 12.55
June 108-077 108-097 108-065 108-082 1,365,836 0.56
July 52.00 52.67 51.58 51.95 0.07 144,283 LBMA Gold Price PM *1257.65 Hams,17-20 lbs,Mid-US fob-u
Sept 52.44 53.10 52.05 52.42 0.05 171,816 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Krugerrand,wholesale-e 1296.62 Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 63.93
52.80 53.39 52.38 52.76 0.04 260,835 April 99.108 99.108 t 99.105 99.108 442,234 Bran,wheat middlings, KC-u 65
Dec Maple Leaf-e 1309.09 Pork bellies,12-14 lb MidUS-u n.a.
Dec'18 52.38 52.90 52.05 52.37 0.06 121,831 May 99.095 99.100 99.095 99.090 .005 251,337 Corn,No. 2 yellow,Cent IL-bp,u 3.4150
American Eagle-e 1309.09 Pork loins,13-19 lb MidUS-u 0.9073
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Corn gluten feed,Midwest-u,w 83.3
June 91.844 92.172 91.641 91.906 .047 32,948
Mexican peso-e 1511.21 Steers,Tex.-Okla. Choice-u 123.00
May 1.5982 1.6223 1.5927 1.6035 .0112 122,373 Austria crown-e 1225.06 Corn gluten meal,Midwest-u,w 504.8 Steers,feeder,Okla. City-u,w 154.66
June 1.6061 1.6284 1.5998 1.6105 .0111 78,296 1 Month Libor (CME)-$3,000,000; pts of 100% Cottonseed meal-u,w 200
98.9850 98.9875 98.9850 98.9900 .0025 221
Austria phil-e 1309.09
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. May
Hominy feed,Cent IL-u,w 92 Fats and Oils
May 1.7269 1.7374 1.7041 1.7153 .0064 127,624 Eurodollar (CME)-$1,000,000; pts of 100% Silver, troy oz.
April 98.8375 98.8400 98.8325 98.8350 237,690 Engelhard industrial 18.2800 Meat-bonemeal,50% pro Mnpls-u,w 270 Corn oil,crude wet/dry mill-u,w 38.2500
June 1.7245 1.7326 1.7026 1.7144 .0035 71,858
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. June 98.7100 98.7200 98.7050 98.7100 .0050 1,472,273 Engelhard fabricated 21.9360 Oats,No.2 milling,Mnpls-u 2.8750 Grease,choice white,Chicago-u 0.2750
May 3.293 3.347 3.254 3.266 .027 311,999 Dec 98.4800 98.4950 98.4600 98.4800 1,450,650 Handy & Harman base 18.2450 Rice, 5% Broken White, Thailand-l,w 350.00 Lard,Chicago-u n.a.
June 3.383 3.422 3.331 3.344 .021 127,809 Dec'18 98.0600 98.1250 98.0500 98.0950 .0350 1,409,445 Handy & Harman fabricated 22.8060 Rice, Long Grain Milled, No. 2 AR-u,w 20.25 Soybean oil,crude;Centl IL-u 0.2958
July 3.444 3.489 3.400 3.416 .014 154,237 LBMA spot price 14.6338 Sorghum,(Milo) No.2 Gulf-u 6.8250 Tallow,bleach;Chicago-u 0.3000
Sept 3.430 3.491 3.411 3.425 .012 104,820 Currency Futures (U.S.$ equivalent) 18.2600 SoybeanMeal,Cent IL,rail,ton48%-u 303.30 Tallow,edible,Chicago-u 0.3350
Oct 3.440 3.503 3.419 3.437 .012 125,154
Jan'18 3.673 3.718 3.649 3.671 87,600 Japanese Yen (CME)-12,500,000; $ per 100
April .9013 .9053 .8977 .9019 .0021 567 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence;
June .9057 .9071 .8996 .9041 .0022 192,109 L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted.
Agriculture Futures *Data as of 4/4
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Corn (CBT)-5,000 bu.; cents per bu. Source: WSJ Market Data Group
April .7465 .7477 .7444 .7459 .0001 739
May 363.00 365.75 361.50 364.75 1.75 554,220 June .7468 .7483 .7448 .7465 .0001 129,070
July 370.75 373.50 369.25 372.50 1.75 409,929 British Pound (CME)-62,500; $ per
Oats (CBT)-5,000 bu.; cents per bu.
May 223.25 224.25 t 220.00 222.50 .25 4,132
April
June
1.2448
1.2468
1.2500
1.2521
1.2428
1.2445
1.2488
1.2508
.0035 301
.0036 240,207 Bonds | WSJ.com/bonds
July 219.50 220.00 217.00 219.25 1,953 Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybeans (CBT)-5,000 bu.; cents per bu.
May 937.50 948.50 937.25 944.25 6.50 314,909
June
Sept
1.0026
1.0022
1.0031
1.0088
.9959
1.0021
.9995 .0030
1.0056 .0029
38,852
141
Tracking Bond Benchmarks
July 948.50 959.75 948.50 955.25 6.75 203,588 Australian Dollar (CME)-AUD 100,000; $ per AUD Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Soybean Meal (CBT)-100 tons; $ per ton. .7572 .7585 .7559 .7581 .0023 427
May 308.10 311.30 308.00 309.80 1.70 151,709
April highs and lows for different types of bonds
May .7568 .7580 .7555 .7577 .0024 256
July 311.50 314.50 311.40 312.90 1.40 118,526 Total Total
June .7556 .7577 .7547 .7572 .0023 135,424
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Sept .7557 .7564 .7540 .7561 .0023 995
return YTD total Yield (%) return YTD total Yield (%)
May 31.39 32.01 31.37 31.83 .40 170,538 close return (%) Index Latest Low High close return (%) Index Latest Low High
July 31.67 32.28 31.65 32.09 .38 124,446
Mexican Peso (CME)-MXN 500,000; $ per MXN
June .05253 .05289 .05246 .05285 .00032 198,934 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
May 1010.00 1019.50 1009.00 1017.50 10.50 8,181
Euro (CME)-125,000; $ per
April 1.0681 1.0694 1.0640 1.0672 .0002 891 1897.13 1.1 U.S. Aggregate 2.580 1.820 2.790 1952.94 0.7 Mortgage-Backed 2.860 1.930 3.120
July 1038.00 1045.50 1038.00 1043.50 10.50 2,356
June 1.0715 1.0726 1.0668 1.0703 .0003 393,643
Wheat (CBT)-5,000 bu.; cents per bu. U.S. Corporate Indexes Bloomberg Barclays 1930.77 0.7 Ginnie Mae (GNMA) 2.800 1.850 3.090
May 427.25 430.50 425.00 429.75 2.75 236,669
July 440.25 443.25 438.75 442.50 2.50 143,378 Index Futures 2668.34 1.5 U.S. Corporate 3.300 2.750 3.520 1142.42 0.7 Fannie mae (FNMA) 2.880 1.950 3.120
Wheat (KC)-5,000 bu.; cents per bu. Mini DJ Industrial Average (CBT)-$5 x index
May 422.00 427.25 422.00 425.00 3.25 108,035 2556.31 1.4 Intermediate 2.780 2.190 3.010 1759.27 0.7 Freddie Mac (FHLMC) 2.890 1.980 3.130
June 20658 20828 20557 20577 57 129,319
July 435.00 440.00 435.00 438.00 3.50 102,302 1.7 Muni Master
Sept 20603 20763 20494 20524 55 289 3569.30 1.7 Long term 4.490 3.960 4.710 507.11 2.112 1.297 2.516
Wheat (MPLS)-5,000 bu.; cents per bu. S&P 500 Index (CME)-$250 x index
May 527.00 530.00 t 523.25 524.50 2.75 23,218
June 2353.90 2374.70 2345.10 2346.60 10.00 55,146 548.37 1.2 Double-A-rated 2.680 1.980 2.870 353.84 1.9 7-12 year 2.159 1.300 2.618
July 535.75 538.00 t 531.00 532.25 3.00 20,236
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Mini S&P 500 (CME)-$50 x index 683.50 1.8 Triple-B-rated 3.630 3.180 3.870 392.16 1.6 12-22 year 2.700 1.610 3.047
June 2358.75 2375.00 2343.75 2346.50 10.00 2,845,954
April 130.525 130.925 129.650 130.525 .500 6,462
May 129.975 130.775 129.050 130.425 .125 24,287 Sept 2356.50 2372.00 2341.25 2343.75 10.00 5,389 High Yield Bonds Merrill Lynch 377.85 1.8 22-plus year 3.197 2.027 3.622
Cattle-Live (CME)-40,000 lbs.; cents per lb. Mini S&P Midcap 400 (CME)-$100 x index
June 1709.50 1721.80 1688.00 1693.00 13.80 93,722 399.97 2.9 High Yield Constrained 5.815 5.568 8.385 Global Government J.P. Morgan
April 118.000 118.625 117.500 118.275 .050 31,388
June 109.000 109.800 108.675 109.425 .125 184,558 Mini Nasdaq 100 (CME)-$20 x index 402.16 4.6 Triple-C-rated 10.141 9.584 19.021 537.60 0.1 Global Government 1.430 0.750 1.560
Hogs-Lean (CME)-40,000 lbs.; cents per lb. June 5447.0 5481.3 s 5409.0 5416.3 27.8 241,601
April 63.775 63.900 t 63.425 63.625 .050 16,406 Sept 5448.8 5485.8 s 5415.0 5421.0 27.8 496 2759.88 2.8 High Yield 100 5.390 5.200 6.835 760.72 1.0 Canada 1.780 0.770 2.020
June 72.200 72.700 t 71.725 72.025 .050 82,046 Mini Russell 2000 (ICE-US)-$100 x index
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. June 1369.40 1382.70 1344.80 1347.20 20.90 560,333 362.77 3.0 Global High Yield Constrained 5.475 5.256 7.901 364.91 -1.1 EMU 1.177 0.512 1.363
376.20 383.10 375.10 379.60 6.50 3,617 Sept 1371.00 1376.00 1345.50 1345.70 20.90 235
May 292.27 1.8 Europe High Yield Constrained 3.087 2.901 4.840 692.92 -1.9 France 1.050 0.270 1.210
July 384.70 391.70 383.90 388.50 6.80 1,625 Mini Russell 1000 (ICE-US)-$100 x index
Milk (CME)-200,000 lbs., cents per lb. June 1310.50 1315.80 1300.50 1300.80 5.20 7,432 U.S Agency Bloomberg Barclays 513.19 -0.3 Germany 0.310 -0.100 0.490
April 15.36 15.48 15.31 15.32 .04 5,215 U.S. Dollar Index (ICE-US)-$1,000 x index
June 15.83 15.96 15.71 15.70 .16 4,719 June 100.42 100.99 100.31 100.44 .02 67,899 1619.43 0.9 U.S Agency 1.800 1.150 1.960 286.57 -0.6 Japan 0.420 -0.120 0.460
Cocoa (ICE-US)-10 metric tons; $ per ton. Sept 100.26 100.78 100.17 100.28 .02 969
1455.59 0.7 10-20 years 1.580 0.960 1.750 564.39 -0.3
May 2,109 2,128 2,091 2,111 1 79,500
Netherlands 0.480 0.020 0.680
July 2,110 2,130 2,094 2,113 1 90,679 Source: SIX Financial Information 3216.79 3.0 20-plus years 3.130 2.390 3.460 930.44 1.9 U.K. 1.420 0.960 2.060
2383.90 1.8 Yankee 2.850 2.320 3.090 770.16 4.2 Emerging Markets ** 5.669 5.134 6.290
Macro & Market Economics *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In local currency Euro-zone bonds
** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Watching the Gauges: U.S. Supply and Demand
Inventories, imports and demand for the week ended March 31. Current figures are in thousands of barrels or
thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import Corporate Debt
Natural-gas import and demand data are available monthly only. Price moves by a companys debt in the credit markets sometimes mirror and sometimes anticipate moves in
that same companys share price. Heres a look at both for two companies in the news.
Inventories, 000s barrels Imports, 000s barrels per day Investment-grade spreads that tightened the most
Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year
Current change week ago avg avg Current change week ago avg avg Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Crude oil and
petroleum prod 1,337,442 ... 1,336 1,357 1,338 1,160 10,022 ... 10,604 9,468 10,117 9,925 Bank of America BAC 8.000 Jan. 30, 49 87 35 116 23.17 1.15
Crude oil
Puget Energy PSD 3.650 May 15, 25 112 25 n.a. ... ...
excluding SPR 535,543 -200 534 530 533 434 7,850 ... 8,224 7,254 7,947 7,902
Gasoline 239,103 ... 240 244 242 223 607 ... 521 671 506 536 Royal Bank of Canada RY 1.625 April 15, 19 40 22 63 72.23 0.10
Finished gasoline 22,031 -1,600 24 27 24 38 50 ... 8 101 26 56 Bank of New York Mellon BK 4.625 Sept. 20, 49 183 20 211 47.00 0.06
Reformulated 50 ... 0 0 0 0 0 ... 0 0 0 0
Royal Bank of Scotland RBS 3.875 Sept. 12, 23 221 19 221 5.93 0.51
Conventional 21,981 ... 24 27 24 37 50 ... 8 101 26 56
Blend. components 217,073 ... 216 217 218 185 557 ... 513 570 481 479 Suncor Energy Ventures Holding COSCN 4.500 April 1, 22 207 15 n.a. ... ...
JPMorgan Chase JPM 6.000 Aug. 1, 49 199 15 241 86.19 1.28
Natural gas (bcf) 2,049 ... 2 2 2 2 ... ... ... ... ... ...
Public Service Electric And Gas PEG 2.000 Aug. 15, 19 54 15 n.a.
Kerosene-type
jet fuel 42,059 ... 42 45 42 40 138 ... 176 91 136 176 And spreads that widened the most
Distillates 152,374 -700 153 163 154 130 131 ... 115 62 113 222
Heating oil 10,018 ... 10 13 11 16 32 ... 19 7 20 91 MUFG Union Bank NA UNBC 2.250 May 6, 19 73 33 79 ... ...
Diesel 142,355 ... 143 150 144 114 99 ... 95 55 93 131 Cooperatieve Rabobank Ua RABOBK 3.950 Nov. 9, 22 151 24 149 ... ...
Residual fuel oil 39,611 ... 40 44 40 38 142 ... 114 198 207 178 Lockheed Martin LMT 3.550 Jan. 15, 26 91 17 92 266.98 0.96
Other oils 263,465 ... 261 244 261 227 1,001 ... 1,291 1,112 1,058 830
LYB International Finance II LYB 3.500 March 2, 27 144 14 128
Net crude, petroleum
products, incl. SPR 2,029,577 ... 2,029 2,052 2,031 1,855 4,712 ... 4,394 5,445 4,482 6,423 Phillips 66 Partners PSXP 3.605 Feb. 15, 25 150 10 n.a. 51.44 0.04
Progress Energy DUK 7.750 March 1, 31 171 8 n.a.
General Motors GM 4.000 April 1, 25 168 8 n.a. 34.00 0.79
Weekly Demand, 000s barrels per day Natural gas storage *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.
Expected Previous Year 4-week 5-year Billions of cubic feet; weekly totals Note: Data are for the most active issue of bonds with maturities of two years or more
Current change week ago avg avg Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group

Total petroleum
4250
product 19,703 ... 19,874 19,868 19,574 18,944
Natural gas,
lower 48 states
Borrowing Benchmarks | WSJ.com/bonds
t
Finished 3250 Money Rates April 5, 2017
motor gasoline 9,245 ... 9,524 9,224 9,306 8,864 t
Kerosene-type Five-year average 2250 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
jet fuel 1,649 ... 1,733 1,468 1,696 1,460
for each week guide to general levels but dont always represent actual transactions.
Distillates 4,098 ... 4,222 3,609 4,185 3,893 1250
Week 52-WEEK Week 52-WEEK
Residual fuel oil 356 ... 133 580 333 280
Inflation Latest ago High Low Latest ago High Low
250 Feb. index Chg From (%)
Propane/propylene 1,194 ... 1,169 838 1,090 ... level Jan. '17 Feb. '16 Secondary market Six month 1.42294 1.41989 1.43822 0.88685
Other oils 3,160 ... 3,093 4,149 2,965 ... A M J J A S O N D J F M
One year 1.79594 1.79400 1.82761 1.19570
2016 2017 U.S. consumer price index Fannie Mae
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. 0.31 2.7 30-year mortgage yields Euro Libor
All items 243.603
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires Core 251.143 0.42 2.2 30 days 3.608 3.689 3.865 2.806 One month -0.398 -0.398 -0.334 -0.401
60 days 3.640 3.720 3.899 2.832 Three month -0.359 -0.358 -0.251 -0.361
International rates
Exchange-Traded Portfolios | WSJ.com/ETFresearch Other short-term rates Six month -0.254 -0.250 -0.139 -0.254
Week 52-Week One year -0.130 -0.119 -0.020 -0.130
Closing Chg YTD Latest ago High Low Week 52-Week
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%) Latest ago high low Euro interbank offered rate (Euribor)
Closing Chg YTD SPDR DJIA Tr DIA 206.26 0.19 4.4 Prime rates
Wednesday, April 5, 2017 119.62 ... 9.1 One month -0.373 -0.373 -0.339 -0.374
ETF Symbol Price (%) (%) SPDR GldTr GLD U.S. 4.00 4.00 4.00 3.50 Call money
Closing Chg YTD SPDR S&PMdCpTr MDY 307.89 0.77 2.0 Three month -0.329 -0.330 -0.247 -0.330
ETF Symbol Price (%) (%) iShMSCI EAFE EFA 61.85 0.53 7.1 SPDR S&P 500 SPY 234.78 0.30 5.0
Canada 2.70 2.70 2.70 2.70 2.75 2.75 2.75 2.25
AlerianMLPETF AMLP 12.71 0.39 0.9 iShMSCIEAFESC SCZ 53.87 0.31 8.1 SPDR S&P Div SDY 87.62 0.34 2.4 Japan 1.475 1.475 1.475 1.475 Six month -0.241 -0.242 -0.132 -0.244
CnsmrDiscSelSector XLY 87.25 0.24 7.2 iShMSCIEmgMarkets EEM 39.51 0.30 12.9 TechSelectSector XLK 53.08 0.41 9.8 Commercial paper One year -0.114 -0.109 -0.005 -0.114
CnsStapleSelSector XLP 54.55 0.18 5.5 iShMSCIEurozoneETF EZU 37.28 0.77 7.7 UtilitiesSelSector XLU 51.75 0.56 6.5 Policy Rates 30 to 270 days n.q. ... ... ...
iShMSCIJapanETF EWJ 51.22 0.70 4.8 VanEckGoldMiner GDX 23.48 0.13 12.2
DBGoldDoubleLgETN DGP 23.65 0.30 17.5 Euro zone 0.00 0.00 0.00 0.00 Value 52-Week
iShNasdaqBiotech IBB 287.42 1.37 8.3 VangdInfoTech VGT 134.66 0.36 10.8 Commercial paper (AA financial)
DBGoldDoubleShrt DZZ 5.73 ... 16.4 Switzerland 0.50 0.50 0.50 0.50 Latest Traded High Low
iShNatlMuniBdETF MUB 108.97 0.09 0.7 VangdSC Val VBR 120.69 0.85 0.3
DeutscheXMSCIEAFE DBEF 29.34 0.81 4.6 0.25 0.50 0.25 n.q. 1.06 0.45
iShRussell1000Gwth IWF 113.18 0.31 7.9 VangdDivApp VIG 89.30 0.39 4.8 Britain 0.25 90 days 1.04
EnSelectSectorSPDR XLE 70.07 0.31 7.0 DTCC GCF Repo Index
FinSelSectorSPDR XLF 23.47 0.76 0.9
iShRussell1000ETF IWB 130.64 0.35 5.0 VangdFTSEDevMk VEA 39.03 0.54 6.8 Australia 1.50 1.50 2.00 1.50
iShRussell1000Val IWD 114.36 0.41 2.1 VangdFTSE EM VWO 40.05 0.17 11.9 Euro commercial paper
GuggS&P500EW RSP 90.10 0.28 4.0 Treasury 0.852 53.800 1.266 0.244
HealthCareSelSect XLV 74.15 0.31 7.6
iShRussell2000Gwth IWO 157.68 1.12 2.4 VangdFTSE Europe VGK 51.13 0.53 6.7 Overnight repurchase 30 day n.q. n.q. n.q. n.q.
iShRussell2000ETF IWM 134.33 1.13 0.4 VangdFTSEAWxUS VEU 47.64 0.50 7.8 MBS 0.852 78.630 1.328 0.257
IndSelSectorSPDR XLI 64.88 0.32 4.3
iShRussell2000Val IWN 115.51 1.18 2.9 VangdGrowth VUG 121.07 0.35 8.6
U.S. 0.86 0.84 1.30 0.15 Two month n.q. n.q. n.q. n.q.
iShIntermCredBd CIU 109.08 0.16 0.8 Three month n.q. n.q. n.q. n.q. Open Implied
iShRussell3000ETF IWV 139.04 0.39 4.6 VangdHlthCr VHT 136.98 0.38 8.1
iSh1-3YCreditBond CSJ 105.17 0.04 0.2 iShRussellMid-Cap IWR 185.16 0.42 3.5 VangdHiDiv VYM 77.36 0.33 2.1 U.S. government rates Four month n.q. n.q. n.q. n.q. Settle Change Interest Rate
iSh3-7YTreasuryBd IEI 123.39 0.20 0.7 82.33 0.53 2.4
iShRussellMCValue IWS VangdIntermBd BIV 83.88 0.16 1.0 Five month n.q. n.q. n.q. n.q.
iShCoreHiDividend HDV 83.92 0.19 2.0 iShS&PMC400Growth IJK 188.35 0.67 3.4 VangdIntrCorpBd VCIT 86.50 0.10 0.9 Discount
iShCoreMSCIEAFEETF IEFA 57.60 0.47 7.4 Six month n.q. n.q. n.q. n.q. DTCC GCF Repo Index Futures
iShS&P500Growth IVW 131.22 0.24 7.7 VangdLC VV 107.64 0.31 5.1 1.50 1.50 1.50 1.00
iShCoreMSCIEmgMk IEMG 47.97 0.35 13.0 iShS&P500ValueETF IVE 103.46 0.39 2.1 VangdMC VO 137.81 0.40 4.7
Libor Treasury Apr 99.165 -0.010 6537 0.835
iShCoreS&P500ETF IVV 236.28 0.30 5.0 iShS&PMC400Value IJJ 146.07 0.86 0.6 VangdMC Val VOE 100.92 0.45 3.8
iShCoreS&PMdCp IJH 168.77 0.74 2.1 Federal funds Treasury May 99.170 -0.010 4499 0.830
iShUSPfdStk PFF 38.60 0.36 3.7 VangdREIT VNQ 82.95 0.14 0.5 One month 0.98556 0.98222 0.98611 0.43275
iShCoreS&PSmCpETF IJR 67.20 1.09 2.3 iShTIPSBondETF TIP 114.86 0.19 1.5 VangdS&P500 VOO 215.54 0.31 5.0 Effective rate 0.9200 0.9300 0.9300 0.3200 Three month 1.15039 1.14678 1.15678 0.62360 Treasury Jun 99.055 -0.025 1361 0.945
iShS&PTotlUSStkMkt ITOT 53.70 0.39 4.7 iSh1-3YTreasuryBd SHY 84.51 ... 0.1 VangdST Bond BSV 79.73 0.04 0.4 High 1.0625 1.0625 1.0625 0.5600
iShCoreUSAggBd AGG 108.69 0.11 0.6 106.00 0.19 1.1 79.76 0.13 0.5
iSh7-10YTreasuryBd IEF VangdSTCpBd VCSH Low 0.7500 0.7500 0.8000 0.2000
iShSelectDividend DVY 90.67 0.15 2.4 iShRussellMCGrowth IWP 102.20 0.41 4.9 VangdSC VB 130.88 0.94 1.5 Notes on data:
iShEdgeMSCIMinEAFE EFAV 66.07 0.24 7.9
Bid 0.9000 0.9100 0.9300 0.2000
PIMCOEnhShMaturity MINT 101.55 0.01 0.2 VangdTotalBd BND 81.18 0.09 0.5 U.S. prime rate is effective March 16, 2017. Discount rate is effective March 16, 2017. U.S. prime rate
iShEdgeMSCIMinUSA USMV 47.70 0.04 5.5 PwrShQQQ 1 QQQ 131.97 0.41 11.4 VangdTotIntlBd BNDX 54.28 0.09 0.0 Offer 1.0000 0.9200 1.0000 0.2600
is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; Other prime
iShGoldTr IAU 12.10 0.08 9.2 PwrShS&P500LoVol SPLV 43.45 0.05 4.5 VangdTotIntlStk VXUS 49.49 0.44 7.9
Treasury bill auction rates arent directly comparable; lending practices vary widely by location; DTCC GCF Repo Index is
iShiBoxx$InvGrCpBd LQD 117.96 0.13 0.7 PwrShSrLoanPtf BKLN 23.31 0.04 0.2 VangdTotalStk VTI 120.59 0.40 4.6 Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value
iShiBoxx$HYCpBd HYG 87.32 0.08 0.9 SPDRBloomBarcHYBd JNK 36.71 0.14 0.7 VangdTotlWrld VT 64.95 0.38 6.5 4 weeks 0.760 0.745 0.770 0.160 traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US.
iShJPMUSDEmgBd EMB 113.78 0.37 3.2 SchwabIntEquity SCHF 29.69 0.54 7.3 VangdValue VTV 94.91 0.41 2.0 13 weeks 0.790 0.780 0.790 0.220 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
iShMBSETF MBB 106.71 0.14 0.3 SchwabUS BrdMkt SCHB 56.71 0.39 4.7 WisdTrEuropeHdg HEDJ 62.35 0.62 8.6
iShMSCIACWIETF ACWI 63.10 0.27 6.6 SchwabUS LC SCHX 56.01 0.34 5.2 WisdTrJapanHdg DXJ 49.68 1.06 0.3 26 weeks 0.910 0.905 0.910 0.340 General Electric Capital Corp.; Tullett Prebon Information, Ltd.
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THE WALL STREET JOURNAL. Thursday, April 6, 2017 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
s EliLilly LLY 85.63 -0.46 RoyalCaribbean RCL 98.16 0.05 WestpacBanking WBK 26.11 -0.35 Biogen BIIB 270.44 -3.80 Flex FLEX 16.41 -0.29 Mattel MAT 25.14 0.17 SignatureBank SBNY 142.71 -3.31
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low.
Market listed securities. Prices are composite dd-Indicates loss in the most recent LincolnNational LNC 64.54 -0.63 RoyalDutchA RDS/A 52.65 -0.20 WestRock WRK 51.60 0.05 BioMarinPharm BMRN 86.12 0.09 Fortinet FTNT 37.44 -0.21 MaximIntProducts MXIM 44.37 -0.16 SiriusXM SIRI 5.11 -0.01
quotations that include primary market trades four quarters. LionsGate A LGF/A 25.61 -0.70 RoyalDutchB RDS/B 55.64 -0.27 s Weyerhaeuser WY 33.97 0.01 Bioverativ BIVV 53.69 -1.06 Gaming&Leisure GLPI 33.63 -0.02 MelcoCrownEnt MPEL 18.97 0.08 Skyworks SWKS 98.89 -0.46
as well as trades reported by Nasdaq OMX FD-First day of trading. s LiveNationEnt LYV 31.34 0.37 SAP SAP 97.38 -1.09 Whirlpool WHR 165.60 -0.01 Broadcom AVGO 217.13 -1.83 Garmin GRMN 49.82 -0.17 MercadoLibre MELI 215.28 -0.64 Splunk SPLK 61.08 ...
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing LloydsBanking LYG 3.21 ... S&P Global SPGI 130.17 1.35 WhiteWaveFoods WWAV 56.21 0.02 CA CA 31.73 0.08 Gentex GNTX 20.06 -0.26 MicrochipTech MCHP 73.02 -0.43 Staples SPLS 9.76 0.25
Exchange, CBOE, National Stock Exchange, ISE standards LockheedMartin LMT 266.98 -2.58 SINOPECShanghai SHI 56.16 -0.68 Williams WMB 29.66 -0.26 s CBOE Holdings CBOE 80.42 -0.47 GileadSciences GILD 66.47 -0.51 MicronTech MU 28.26 -0.33 Starbucks SBUX 58.22 -0.10
and BATS. lf-Late filing Loews L 47.00 -0.09 SK Telecom SKM 24.92 -0.34 WilliamsPartners WPZ 41.11 -0.36 CDK Global CDK 63.48 -0.40 Goodyear GT 34.90 0.30 Microsemi MSCC 48.51 -2.20 SteelDynamics STLD 34.10 -1.21
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq Lowe's LOW 81.62 0.03 SLGreenRealty SLG 107.25 -0.11 Wipro WIT 10.14 0.14 CDW CDW 57.28 -0.62 Grifols GRFS 18.86 -0.11 s Microsoft MSFT 65.56 -0.17 Stericycle SRCL 82.30 1.23
companies based on market capitalization. requirements. Luxottica LUX 53.98 -0.62 s Salesforce.com CRM 85.34 2.37 WooriBank WF 36.11 0.88 CH Robinson CHRW 76.41 -0.45 HD Supply HDS 40.34 0.07 Middleby MIDD 133.25 -1.07 Symantec SYMC 30.28 -0.10
Underlined quotations are those stocks with t-NYSE bankruptcy LyondellBasell LYB 88.40 -2.29 Sanofi SNY 45.28 -0.21 Workday WDAY 82.40 0.11 CME Group CME 117.55 0.28 Hasbro HAS 96.56 -1.29 Momo MOMO 32.89 -1.08 Synopsys SNPS 71.45 -0.53
large changes in volume compared with the v-Trading halted on primary market. M&T Bank MTB 152.38 -1.81 Sasol SSL 29.43 -0.57 Wyndham WYN 84.35 0.17 CSX CSX 47.14 -0.15 HenrySchein HSIC 168.19 -0.63 Mondelez MDLZ 44.01 0.55 TD Ameritrade AMTD 37.58 -0.79
issues average trading volume. vj-In bankruptcy or receivership or MDU Rscs MDU 27.26 -0.37 Scana SCG 66.75 0.63 XPO Logistics XPO 46.67 -1.24 CadenceDesign CDNS 30.85 -0.25 Hologic HOLX 42.61 0.19 MonsterBeverage MNST 45.93 -0.09 TESARO TSRO 145.60 -3.59
Boldfaced quotations highlight those issues being reorganized under the MGM Resorts MGM 27.60 -0.22 Schlumberger SLB 78.30 0.09 XcelEnergy XEL 44.82 0.31 Celgene CELG 124.18 -0.59 JBHunt JBHT 92.36 0.40 Mylan MYL 38.82 0.12 T-MobileUS TMUS 63.50 -0.18
whose price changed by 5% or more if their Bankruptcy Code, or securities MPLX MPLX 36.88 -0.40 SchwabC SCHW 39.48 -0.75 Xerox XRX 7.16 -0.05 Cerner CERN 59.06 -0.09 HuntingtonBcshs HBAN 13.07 -0.24 NXP Semi NXPI 104.80 -0.25 TRowePrice TROW 68.85 0.59
previous closing price was $2 or higher. assumed by such companies. MSCI MSCI 97.85 1.26 ScottsMiracleGro SMG 92.05 -0.72 Xylem XYL 50.43 0.06 CharterComms CHTR 331.99 0.47 IAC/InterActive IAC 74.48 -1.25 Nasdaq NDAQ 69.09 0.46 TakeTwoSoftware TTWO 57.86 0.01
MSC Industrial MSM 102.67 -0.35 SealedAir SEE 43.07 0.03 s YPF YPF 24.81 -0.89 CheckPointSftw CHKP 102.87 0.07 s IdexxLab IDXX 154.72 -0.40 NetApp NTAP 40.90 -0.10 s Tesla TSLA 295.00 -8.70
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and Macerich MAC 64.20 -0.11 SemicondctrMfg SMI 6.18 -0.11 YumBrands YUM 63.87 0.03 CincinnatiFin CINF 70.81 -0.75 s IHSMarkit INFO 41.92 -0.08 Netease NTES 276.46 3.37 TexasInstruments TXN 80.08 -0.52
MacquarieInfr MIC 79.54 -0.69 SempraEnergy SRE 109.44 -0.94 YumChina YUMC 28.18 0.22 Cintas CTAS 123.77 -1.07 IPG Photonics IPGP 118.35 -0.89 Netflix NFLX 143.62 -1.88 TractorSupply TSCO 68.25 -0.74
changes in the closing prices from 4 p.m. the previous day. Trimble TRMB 31.00 -0.27
Macy's M 28.82 -0.07 SensataTech ST 40.91 -0.46 ZTO Express ZTO 12.40 -0.01 CiscoSystems CSCO 33.00 -0.41 IcahnEnterprises IEP 50.54 -0.35 NewsCorp A NWSA 12.63 -0.14
MagellanMid MMP 76.60 -0.48 ServiceCorp SCI 30.25 -0.11 ZayoGroup ZAYO 32.54 0.04 CitrixSystems CTXS 82.96 -0.34 Illumina ILMN 167.48 -2.44 NewsCorp B NWS 13.05 -0.10 TripAdvisor TRIP 41.76 0.12
Wednesday, April 5, 2017 Net Net CGNX 83.30 -0.57 Incyte Nordson 21stCenturyFoxA FOXA 31.38 -0.37
MagnaIntl MGA 39.79 -0.90 ServiceMaster SERV 40.32 -0.18 ZimmerBiomet ZBH 120.18 -0.59 Cognex INCY 138.43 -3.12 NDSN 121.00 -1.53
Stock Sym Close Chg Stock Sym Close Chg 21stCenturyFoxB FOX 30.83 -0.38
Net Manpower MAN 98.06 -0.25 ServiceNow NOW 85.66 0.37 Zoetis ZTS 52.67 0.02 CognizantTech CTSH 58.06 -0.15 Intel INTC 36.22 -0.06 NorthernTrust NTRS 85.75 -0.53
Stock Sym Close Chg ManulifeFin MFC 17.35 -0.25 ShawComm B SJR 20.59 -0.16 Comcast A CMCSA 37.34 -0.45 InteractiveBrkrs IBKR 34.63 -0.01 NorwegianCruise NCLH 49.78 0.02 UltaBeauty ULTA 281.65 0.08
CGI Group GIB 47.27 -0.16 ExxonMobil XOM 82.53 0.16
s CIT Group CIT 43.21 -0.81 s FMC FMC 71.85 0.47 MarathonOil MRO 15.98 -0.16 SherwinWilliams SHW 309.28 0.90 NASDAQ CommerceBcshrs CBSH 54.95 -0.97 Intuit INTU 116.55 0.52 NVIDIA NVDA 100.03 -0.75 UltimateSoftware ULTI 195.28 0.68
NYSE CMS Energy CMS 45.26 0.35 FactSet FDS 160.91 -1.44 MarathonPetrol MPC 49.44 -0.86 ShinhanFin SHG 41.70 -0.25 CommScope COMM 40.82 -0.30 s IntuitiveSurgical ISRG 762.80 0.46 OReillyAuto ORLY 255.17 -0.34 UnitedTherap UTHR 123.22
s VCA
-1.23
Markel MKL 972.11-15.82 Shopify SHOP 67.89 -0.64 AGNC Invt AGNC 20.19 -0.02 Copart CPRT 59.68 -0.28 JD.com JD 31.53 0.09 OldDomFreight ODFL 83.67 -0.91 WOOF 91.65 0.08
CNA Fin CNA 43.91 -0.30 FederalRealty FRT 133.11 ...
ABB ABB 23.07 -0.39 Marsh&McLennan MMC 73.38 0.30 SilverWheaton SLW 21.24 -0.05 Ansys ANSS 105.17 -0.40 CoStarGroup CSGP 205.77 -0.22 JackHenry JKHY 92.49 -0.24 ON Semi ON 14.79 -0.11 VEON VEON 4.01 0.02
CNOOC CEO 121.17 -0.28 FedEx FDX 195.85 -0.42
VeriSign VRSN 87.67 0.37
AECOM ACM 35.01 0.15 MartinMarietta MLM 214.98 -1.03 SimonProperty SPG 170.29 -0.27 ASML ASML 131.03 -1.71 Costco COST 167.00 -0.25 JazzPharma JAZZ 140.65 -2.56 OpenText OTEX 33.21 -0.68
CPFLEnergia CPL 16.58 -0.06 FiatChrysler FCAU 10.11 -0.28
VeriskAnalytics VRSK 79.45 -0.50
AES AES 11.16 -0.11 Masco MAS 33.08 -0.19 SixFlags SIX 57.59 -0.73 Abiomed ABMD 123.40 -0.68 Ctrip.com CTRP 48.99 -0.40 JetBlue JBLU 20.57 0.06 PTC PTC 51.24 -0.62
CRH CRH 34.44 -0.45 FibriaCelulose FBR 9.37 -0.31 s VertxPharm VRTX114.11 1.82
Aflac AFL 72.19 -0.42 Mastercard MA 112.07 0.20 SmithAO AOS 49.67 -0.46 ActivisionBliz ATVI 49.20 0.16 DISH Network DISH 62.87 -0.61 s KLA Tencor KLAC 95.73 -0.73 Paccar PCAR 66.75 0.13
CVS Health CVS 77.03 -0.84 FidelityNatlFin FNF 38.47 -0.33
AT&T T 41.51 -0.18 McCormick MKC 100.64 2.22 Smith&Nephew SNN 30.99 -0.03 s AdobeSystems ADBE 129.89 -0.15 DentsplySirona XRAY 61.99 0.21 KraftHeinz KHC 91.42 0.20 PacWestBancorp PACW 51.72 -1.16 Viacom A VIA 48.10 0.15
CabotOil COG 24.44 -0.14 FNFV Group FNFV 12.75 -0.20 Viacom B VIAB 45.32 -0.23
AXIS Capital AXS 66.67 -0.69 McCormickVtg MKC/V 100.43 2.10 Smucker SJM 130.02 -0.78 AkamaiTech AKAM 58.80 -0.50 DexCom DXCM 80.05 -1.85 t LKQ LKQ 27.95 -0.40 s PaneraBread PNRA 312.94 38.94
CAE CAE 15.23 0.06 FidelityNtlInfo FIS 79.50 0.37 Vodafone VOD 26.08 -0.07
AbbottLabs ABT 43.80 -0.38 McDonalds MCD 130.41 1.12 Snap SNAP 20.70 -1.44 AlexionPharm ALXN 116.21 -2.09 DiamondbackEner FANG 102.94 -3.83 s LamResearch LRCX 127.77 -1.12 Paychex PAYX 58.30 0.24
CamdenProperty CPT 81.18 0.24 FirstData FDC 14.84 -0.24 WPP WPPGY 107.94 -0.77
AbbVie ABBV 64.96 -0.15 McKesson MCK 144.75 -1.02 SnapOn SNA 163.14 -1.60 AlignTech ALGN 114.80 -0.81 DiscoveryComm A DISCA 29.36 0.09 LamarAdvertising LAMR 73.34 -0.47 PayPal PYPL 42.89 0.17
Cameco CCJ 10.88 -0.22 FirstRepBank FRC 91.84 -1.19 WalgreensBoots WBA 81.17 -1.33
Accenture ACN 117.64 -0.40 MeadJohnson MJN 89.30 -0.10 s SOQUIMICH SQM 34.24 0.04 Alkermes ALKS 57.72 -1.03 s DiscoveryComm C DISCK 28.56 -0.02 s LibertyBroadbandA LBRDA 86.48 -0.71 People'sUtdFin PBCT 17.72 -0.30
CampbellSoup CPB 56.77 -0.01 FirstEnergy FE 31.78 0.05 Weibo
t AcuityBrands AYI 170.40 -3.53 Mednax MD 68.27 -0.67 Sony SNE 32.76 -0.37 Alphabet A GOOGL 848.91 -3.66 DollarTree DLTR 77.05 -0.62 s LibertyBroadbandC LBRDK 87.85 -0.60 PilgrimPride PPC 22.52 0.07 WB 49.72 -0.66
CIBC CM 85.54 -0.92 FleetCorTech FLT 142.05 0.45 s WesternDigital WDC 82.70 -0.29
Adient ADNT 66.55 -1.58 s CanNtlRlwy CNI 73.43 Medtronic MDT 80.24 -0.38 Southern SO 50.43 0.41 Alphabet C GOOG 831.41 -3.16 E*TRADE ETFC 34.17 -0.45 LibertyGlobal A LBTYA 35.13 0.13 Priceline PCLN 1761.77 -5.61
-0.39 Flowserve FLS 47.69 -0.14 WholeFoods WFM 30.25 0.08
AdvanceAuto AAP 142.74 -0.30 Merck MRK 63.57 -0.10 SoCopper SCCO 36.15 0.01 s Amazon.com AMZN909.28 2.45 EastWestBancorp EWBC 50.68 -0.72 LibertyGlobal C LBTYK 34.46 0.26 Qiagen QGEN 27.97 -0.58
CanNaturalRes CNQ 33.14 -0.12 Fluor FLR 51.80 -0.17 WillisTwrsWatson WLTW 129.94 -0.38
AdvSemiEngg ASX 6.49 -0.02 CanPacRlwy CP 149.00 0.36 FomentoEconMex FMX 91.65 0.80 MetLife MET 51.90 -0.42 SouthwestAirlines LUV 53.35 0.28 Amdocs DOX 61.15 0.38 s eBay EBAY 33.81 -0.33 LibertyLiLAC A LILA 22.65 0.28 s Qorvo QRVO 68.60 0.28
Aegon AEG 4.96 -0.11 Amerco UHAL 364.78 -8.38 EchoStar SATS 55.92 -1.05 LibertyLiLAC C LILAK 23.56 0.27 Qualcomm QCOM 56.47 -0.21 WynnResorts WYNN 116.68 -0.06
Canon CAJ 31.51 -0.12 FootLocker FL 71.20 -1.25 MettlerToledo MTD 476.88 0.31 SpectraEnerPtrs SEP 43.33 -0.11
AerCap AER 45.46 0.01 AmericanAirlines AAL 41.31 0.41 ElectronicArts EA 88.40 -0.88 LibertyQVC B QVCB 21.30 0.59 RandgoldRscs GOLD 89.15 -0.24 Xilinx XLNX 56.65 -0.48
CapitalOne COF 84.13 -1.13 FordMotor F 11.26 -0.11 MichaelKors KORS 36.84 0.02 SpectrumBrands SPB 136.77 -1.36
Aetna AET 127.28 -0.57 Amgen AMGN 162.24 -2.12 s Equinix EQIX 400.04 0.06 LibertyQVC A QVCA 20.47 0.05 RegenPharm REGN 377.36 -5.56 Yahoo YHOO 46.38 0.15
CardinalHealth CAH 80.53 0.11 ForestCIty A FCE/A 21.88 0.04 MidAmApt MAA 102.73 0.18 SpiritAeroSys SPR 56.53 -1.16 Yandex YNDX 22.61 0.47
AffiliatedMgrs AMG 159.20 -0.89 Carlisle CSL 103.43 -0.93 Fortis FTS 32.77 -0.14 MitsubishiUFJ MTU 6.08 -0.15 Sprint S 8.41 -0.27 AnalogDevices ADI 80.04 -1.20 Ericsson ERIC 6.38 -0.16 s LibertyVenturesA LVNTA 51.40 0.97 RossStores ROST 62.53 -1.13
AgilentTechs A 52.71 0.09 s Apple AAPL 144.02 -0.75 ErieIndemnity A ERIE 121.64 -0.01 LibertyFormOne A FWONA 32.85 Zillow A ZG 33.49 -0.56
CarMax KMX 56.66 0.84 s Fortive FTV 60.25 0.23 MizuhoFin MFG 3.58 -0.06 Square SQ 16.75 -0.29 -0.09 Ryanair RYAAY 84.25 1.66
AgnicoEagle AEM 44.64 0.29 AppliedMaterials AMAT 38.38 -0.62 Exelixis Zillow C Z 33.47 -0.46
Carnival CCL 58.80 0.16 FortBrandsHome FBHS 60.48 -0.14 MobileTeleSys MBT 11.08 -0.05 StanleyBlackDck SWK 131.10 -0.84 EXEL 20.50 -0.75 LibertyFormOne C FWONK 34.50 0.04 SBA Comm SBAC 119.08 -0.36
Agrium AGU 94.02 -0.85 s ArchCapital ACGL 94.76 ZionsBancorp ZION 41.05 -0.61
Carnival CUK 57.66 -0.02 Franco-Nevada FNV 67.07 0.68 s Mobileye MBLY 61.30 -0.10 StarwoodProp STWD 22.66 -0.01 -0.90 Expedia EXPE 124.97 -0.05 LibertyBraves A BATRA 23.51 -0.36 SEI Investments SEIC 50.50 0.49
AirProducts APD 135.24 -0.11 Atlassian TEAM 30.11 0.20 ExpeditorsIntl EXPD 56.40 -0.17 LibertyBraves C BATRK 23.28
AlaskaAir ALK 90.05 -0.17
Caterpillar CAT 94.24 0.11 FranklinRscs BEN 41.40 -0.17 MohawkIndustries MHK 227.15 -0.70 StateStreet STT 78.61 -0.08
Autodesk ADSK 83.54 -1.41 ExpressScripts ESRX 66.07 0.18 LincolnElectric LECO 85.13
-0.37
-1.39
SS&C Tech SSNC 34.94 -0.03
SVB Fin SIVB 178.07 -4.86
NYSE MKT
s Celanese A CE 91.46 -0.28 Freeport-McMoRan FCX 13.44 -0.10 MolsonCoors B TAP 95.46 -0.13 Statoil STO 17.15 -0.29
Albemarle ALB 105.21 -0.29 s Cemex CX 9.30 -0.07 FreseniusMed FMS 41.50 -0.68 s Monsanto MON115.31 1.10 Steris STE 69.39 -0.11 ADP ADP 101.93 0.48 F5Networks FFIV 138.09 -1.34 LogitechIntl LOGI 31.18 -0.60 t Sabre SABR 20.50 -0.36 s BritishAmTob BTI 66.49 0.29
Alcoa AA 33.85 -0.38 Cencosud CNCO 9.21 -0.05 GGP GGP 22.98 -0.26 s Moody's MCO 113.07 1.69 STMicroelec STM 15.19 -0.01 s B/EAerospace BEAV 64.55 -0.05 s Facebook FB 141.85 0.12 t lululemon LULU 49.43 -0.33 ScrippsNetworks SNI 77.78 -0.40 CheniereEnergy LNG 46.77 -0.68
AlexandriaRealEst ARE 110.96 -0.28 CenovusEnergy CVE 11.25 0.17 Gallagher AJG 56.00 -0.38 MorganStanley MS 41.74 -0.77 Stryker SYK 131.18 -0.23 Baidu BIDU 172.92 -2.28 s Fastenal FAST 51.71 -0.05 MarketAxess MKTX 180.10 -5.77 Seagate STX 46.00 0.03 CheniereEnerPtrs CQP 31.80 -0.34
Alibaba BABA 107.44 -0.08 Centene CNC 70.74 0.97 Gap GPS 22.90 -0.29 Mosaic MOS 29.00 -0.16 SumitomoMits SMFG 7.06 -0.15 BankofOzarks OZRK 49.90 -1.04 FifthThirdBncp FITB 24.90 -0.45 Marriott MAR 91.96 -0.51 SeattleGenetics SGEN 61.89 -1.30 s CheniereEnHldgs CQH 24.23 -0.16
Alleghany Y 612.20 -5.25 CenterPointEner CNP 27.84 0.07 Gartner IT 109.23 0.53 MotorolaSolutions MSI 83.83 -0.69 SunCommunities SUI 81.00 0.90 t BedBath BBBY 37.80 -1.18 Fiserv FISV 115.57 0.19 MarvellTech MRVL 14.99 0.03 Shire SHPG 175.06 -2.19 ImperialOil IMO 30.27 -0.47
Allegion ALLE 74.13 -0.77 CentraisElBras EBR 5.29 -0.26 Gazit-Globe GZT 10.15 -0.08 NCR NCR 43.84 -0.81 SunLifeFinancial SLF 35.49 -0.46
Allergan AGN 237.77 -0.66 CenturyLink CTL 24.21 0.25 GeneralDynamics GD 185.85 -1.03 NRG Energy NRG 18.69 -0.19 SuncorEnergy SU 30.88 0.27
s AllianceData ADS 250.26 -0.71 NTTDoCoMo DCM 23.89 0.08
New Highs and Lows | WSJ.com/newhighs
Chemours CC 37.51 -0.68 GeneralElec GE 29.97 -0.05 SunocoLogistics SXL 24.26 0.02
AllianceBernstein AB 22.45 -0.10 ChesapeakeEner CHK 6.11 -0.21 GeneralMills GIS 58.25 -0.13 NVR NVR 2090.11-21.89 SunTrustBanks STI 54.80 -0.45 52-Wk % 52-Wk %
AlliantEnergy LNT 39.98 0.11 Chevron CVX 108.64 -0.02 GeneralMotors GM 34.00 -0.27 NationalGrid NGG 63.41 0.29 SynchronyFin SYF 33.26 -0.47 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
AllisonTransm ALSN 35.61 -0.22 ChinaEastrnAir CEA 29.10 0.21 GenuineParts GPC 90.23 0.20 NatlOilwell NOV 39.07 -0.44 s Syngenta SYT 89.79 0.48 5.35 1.7 R1RCM
SachemCapital SACH RCM 3.24 1.9
Allstate ALL 81.42 -0.21 ChinaLifeIns LFC 15.29 Gerdau GGB 3.37 NatlRetailProp NNN 43.77 0.01 Sysco SYY 51.56 0.28
-0.15 -0.13 The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE SabraHealthcare SBRA 28.23 0.5
AllyFinancial ALLY 19.08 -0.42
Altria MO 71.93 -0.02
ChinaMobile CHL 55.64 -0.17 Gildan GIL 26.39 0.25 s NewOrientalEduc EDU 60.73 0.04
t NY CmntyBcp NYCB 13.59 -0.17
TAL Education TAL 104.84 -1.01 MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in NYSE MKT lows - 8 SolarCapital SLRC 22.82 -0.1
s ChinaPetrol SNP 82.68 0.49 GlaxoSmithKline GSK 41.93 -0.11 TE Connectivity TEL 72.86 -0.59 the latest session. % CHG-Daily percentage change from the previous trading session. StateNational SNC 14.80 -1.7
AlumofChina ACH 12.82 0.26 Enservco ENSV 0.25 -13.9
ChinaSoAirlines ZNH 35.37 0.26 GlobalPayments GPN 77.75 -0.60 NewellBrands NWL 45.90 -0.28 Tegna TGNA 25.40 -0.21 Tesla TSLA 304.88 -2.9
Ambev ABEV 5.72 -0.06 InspireMD NSPR 0.82 -6.7
ChinaTelecom CHA 50.21 1.24 GoDaddy GDDY 37.08 0.04 NewfieldExpln NFX 36.17 -0.97 Telus TU 32.96 0.32 Wednesday, April 5, 2017 TiptreeA TIPT 7.60 -4.1
Ameren AEE 55.05 0.33 JRjr33 JRJR 0.38 9.4
s ChinaUnicom CHU 14.30 0.29 Goldcorp GG 14.85 -0.04 NewmontMining NEM 34.31 0.12 TIM Part TSU 16.26 -0.28 2U TWOU 42.04 1.2
AmericaMovil AMX 14.21 0.01 52-Wk % 52-Wk % 52-Wk % PalatinTech PTN 0.31 0.3
Chipotle CMG 452.44 3.03 GoldmanSachs GS 227.66 -1.60 NextEraEnergy NEE 130.64 1.10 TJX TJX 75.93 -0.78 VCA WOOF 91.80 0.1
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Pareteum TEUM 0.75 -1.9
AmericaMovil A AMOV 14.20 0.07 Chubb CB 136.78 -0.56 Grainger GWW231.73 0.93 NielsenHoldings NLSN 41.84 0.12 TaiwanSemi TSM 32.90 0.04 VSInvVIXMedTerm ZIV 62.44 -1.1
Pfenex PFNX 4.74 -5.1
AmCampus ACC 47.92 -0.11 Nike NKE 54.98 -0.06 TargaResources TRGP 58.33 -1.15 PaycomSoftware PAYC 58.81 -1.3 GlbXMSCIArgentina ARGT 29.04 -1.2 Senseonics VertxPharm VRTX 116.86 1.6
ChunghwaTelecom CHT 33.80 -0.15 GreatPlainsEner GXP 29.25 0.04 SENS 1.56 -3.7
AEP AEP 67.83 0.54
AmericanExpress AXP 77.76 -0.18
Church&Dwight CHD 49.57 -0.18 GpoAeroportuar PAC 101.01 0.41 NiSource NI 23.78 0.12 t Target TGT 52.75 -0.68 NYSE highs - 96 PennyMacTr
Petrobras
PMT
PZE
17.96 -0.2
11.25 0.1
GlbXSciBetaEurope SCID
GuggChinaRE TAO
24.18 ...
23.81 0.7
SuperiorDrilling SDPI 0.75 -14.3
WaysideTech
WecastNetwork
WSTG
WCST
19.70
2.76
-4.5
14.0
Cigna CI 149.91 -0.63 s GpoAeroportSur ASR 181.61 -1.44 NobleEnergy NBL 34.04 -0.36 TataMotors TTM 35.82 0.42 Allete ALE 68.40 0.3 WesternDigital WDC 84.73 -0.3
AmericanFin AFG 94.25 -1.11
AmerHomes4Rent AMH 23.40 0.02
CimarexEnergy XEC 117.66 -2.30 GpoAvalAcciones AVAL 8.20 -0.07 Nokia NOK 5.18 -0.18
NomuraHoldings NMR 6.03 -0.08
TechnipFMC FTI 32.96
TeckRscsB TECK 23.17
0.33
-0.07
AllianceData ADS 254.94 -0.3
PIMCO IncStrFd
QuakerChemical
PFL 11.38 0.4
KWR 153.90 7.6
GuggFronMkts FRN
GuggInsider NFO
13.06 0.1
53.41 0.2
Nasdaq highs - 85 Wix.com WIX 79.30 0.9
Cinemark CNK 42.84 -1.19 GpFinSantandMex BSMX 8.91 -0.05 Aon AON 120.40 0.3 WMGI 31.53 0.3
AIG AIG 61.62 -0.56 RELX RENX 18.70 0.1 GuggMSCIEMEq EWEM 30.94 0.4 ActiveAltsCont SQZZ 25.42 -0.4 WrightMedical
Citigroup C 59.59 -0.09 GrupoTelevisa TV 25.80 -0.06 Nordstrom JWN 43.44 -0.48 TelecomItalia TI 8.65 0.01 ApolloGlobalMgmt APO 25.32 1.1
AmerTowerREIT AMT 120.64 -0.10 RH RH 47.61 -2.7 GuggS&PGlblWtr CGW 31.23 ... AdobeSystems ADBE 131.33 -0.1
AmerWaterWorks AWK 78.29 0.57
CitizensFin CFG 34.38
Clorox CLX 134.27
-0.52
-0.46
HCAHoldings HCA 88.47
HCP HCP 31.14
0.80
0.09
NorfolkSouthern NSC 114.73 -0.46
NorthropGrumman NOC 236.10 -1.54
TelecomItalia A TI/A 7.01
Teleflex TFX 192.50
-0.04
-0.43
ArborRealty
AshlandGlobal ASH
ABR 8.61
126.11
-1.2
0.6
RegalBeloit RBC 77.50 -1.4 IQMergerArbitrage MNA 30.20 -0.3 Amazon.com AMZN 923.72 0.3 Nasdaq lows - 66
ReynoldsAmer RAI 63.70 0.6 iPath MSCI India INP 75.53 0.1 AntaresPharma ATRS 3.10 1.7
Amerigas APU 47.31 -0.05 Coach COH 39.34 -0.22 HDFC Bank HDB 75.71 -0.30 Novartis NVS 73.77 -1.00 TelefonicaBras VIV 14.72 -0.08 AsiaTigersFund GRR 11.50 0.7 AllianceMMA AMMA 2.48 0.4
Rockwell ROK 159.78 -0.5 iShCurHdgMSCIUS HAWX 24.56 -0.5 Apple AAPL 145.46 -0.5
Ameriprise AMP 128.02 -0.88 Coca-Cola KO 42.57 -0.11 HP HPQ 17.69 -0.03 NovoNordisk NVO 35.69 -0.36 Telefonica TEF 11.06 -0.10 BaxterIntl BAX 53.18 0.3 Apptio APTI 10.95 -0.7
RosettaStone RST 10.68 1.2 iShCurrHdgMSCIEM HEEM 23.13 -0.3 ArchCapital ACGL 96.46 -0.9
AmerisourceBrgn ABC 87.18 0.25 Coca-Cola Euro CCE 37.49 HSBC HSBC 40.68 0.18 Nucor NUE 59.72 -0.77 TelekmIndonesia TLK 31.46 -0.35 BlackHillsUn BKHU 74.56 1.5 AralezPharm ARLZ 1.74 -16.5
-0.20 SafeBulkersPfdD SBpD 19.75 -1.4 iShUSConsumerSvcs IYC 161.60 -0.2 AxarAcquisition AXAR 10.90 2.7
Ametek AME 53.69 -0.07 NuSTAREnergy NS 51.17 -0.92 Tenaris TS 33.27 -1.23 BlackHills BKH 67.73 1.2 ArQule ARQL 0.92 -1.1
Coca-Cola Femsa KOF 72.34 0.54 Halliburton HAL 49.85 0.30 Salesforce.com CRM 86.42 2.9 iShEdgeMSCIMlIntSC ISCF 26.76 -0.2 B/EAerospace BEAV 64.95 -0.1
Amphenol APH 69.57 -0.33 OGE Energy OGE 35.28 0.10 s Teradyne TER 31.73 0.55 CBS B CBS 70.10 0.4 Astrotech ASTC 1.19 1.6
Colgate-Palmolive CL 73.46 -0.16 Hanesbrands HBI 20.34 0.10 SiteOneLandscape SITE 50.04 -1.2 iShMtgRealEstCap REM 45.78 -0.5 BMC Stock BMCH 23.60 -1.3
AnadarkoPetrol APC 62.85 0.14 CBS A CBS/A 71.07 -0.2 34.85 0.1 iShMSCIAustriaCap EWO 18.54 0.1 BallardPower BLDP AtossaGenetics ATOS 0.73 -1.3
ColonyNorthStar CLNS 13.03 -0.07 HarleyDavidson HOG 60.02 -0.97 ONEOK OKE 55.93 -0.01 Tesoro TSO 78.83 -1.06 SOQUIMICH SQM 2.61 1.3
AB InBev BUD 110.48 -0.37 CIT Group CIT 44.59 -1.8 SouthcrossEner SXE 4.15 11.5 iShMSCIChileCapped ECH 44.46 0.8 BancFst pf BedBath BBBY 37.28 -3.0
Comerica CMA 67.26 -1.36 Harris HRS 109.05 -1.06 ONEOK Partners OKS 54.60 -0.07 TesoroLogistics TLLP 54.87 -0.28 BANFP 30.47 6.5
AnnalyCap NLY 11.31 0.09 CanNtlRlwy CNI 75.05 -0.5 Syngenta SYT 90.26 0.5 iShMSCIColombia ICOL 14.14 0.6 Blackbaud Bio-Path BPTH 0.70 -9.5
SABESP SBS 10.90 0.01 HartfordFinl HIG 47.76 -0.15 OccidentalPetrol OXY 63.43 -0.58 TevaPharm TEVA 31.93 -0.07 BLKB 78.23 ...
AnteroMidstream AM 33.56 -0.07 Celanese A CE 93.06 -0.3 Systemax SYX 12.75 0.9 iShMSCIEmgMktSC EEMS 46.68 -0.2 BluStrTABIGIIsrael ITEQ BioblastPharma ORPN 0.57 -12.7
ConagraBrands CAG 40.40 0.18 Helmerich&Payne HP 67.12 0.15 Och-Ziff OZM 2.25 -0.04 Textron TXT 46.94 -0.26 28.63 -0.2
Cemex CX 9.62 -0.7 TaiwanFund TWN 18.79 1.4 iShMSCIFrontier100 FM 28.71 0.2 CBOE Holdings CBOE CSG Systems CSGS 36.27 0.1
AnteroResources AR 22.75 -0.41 ConchoRscs CXO 127.25 -2.92 Herbalife HLF 57.68 0.53 OldRepublic ORI 20.07 -0.38 ThermoFisherSci TMO 152.76 0.04 81.51 -0.6
CenturyComm CCS 25.90 0.8 TemplMktFd EMF 14.30 0.1 iShMSCIHongKong EWH 22.69 0.4 CalamsGlblDynInc CHW CareDx CDNA 1.18 -11.1
Anthem ANTM 164.75 -0.95 Hershey HSY 109.07 OmegaHealthcare OHI 33.62 0.30 ThomsonReuters TRI 42.93 0.05 7.93 0.5
ConocoPhillips COP 49.11 -0.62 0.68 ChinaCordBlood CO 6.90 7.8 Cerecor CERC 0.56 -6.5
s Aon AON 119.23 0.33 Teradyne TER 32.26 1.8 iShMornLCGrowth JKE 132.67 -0.2 CapitolAcqnIII CLAC 10.85 -0.9
ConEd ED 78.53 0.57 Hess HES 47.21 -0.43 Omnicom OMC 85.59 -0.21 3M MMM 190.24 0.05 ChinaFund CHN 17.02 0.4 Clearfield CLFD 14.85 -2.9
Apache APA 51.70 -0.19 WasteConnections WCN 88.66 0.4 iShGlobalTechETF IXN 125.05 -0.2 CapitolAcqnIIIWt CLACW 1.95 ...
ConstBrands A STZ 161.40 -0.11 HewlettPackard HPE 17.90 ... Oracle ORCL 44.49 -0.10 Tiffany TIF 92.77 -0.88 ChinaPetrol SNP 83.47 0.6 ConcordiaIntl CXRX 1.37 -11.3
ApartmtInv AIV 44.64 0.20 Weyerhaeuser WY 34.40 ... iShGloblIndustrial EXI 81.05 -0.4 CareTrustREIT CTRE 17.15 0.9
ConstBrands B STZ/B 162.28 -0.24 Hilton HLT 56.75 -0.32 Orange ORAN 15.31 -0.15 TimeWarner TWX 98.37 0.09 ChinaUnicom CHU 14.48 2.1 YPF YPF 25.99 -3.5 iShNorthAmerTech IGM 139.36 -0.4 CasellaWaste CWST ConcurrentComp CCUR 4.63 -1.5
s ApolloGlobalMgmt APO 24.97 0.27 14.28 0.8
ContinentalRscs CLR 45.89 -0.31 HomeDepot HD 146.64 0.30 OrbitalATK OA 96.19 -0.97 Toll Bros TOL 35.23 -0.23 ColonyStarwood SFR 34.64 0.6 MadronaIntl FWDI 26.40 1.2 Cheesecake CAKE 65.09 -0.1 COPsync COYN 0.23 -11.1
AquaAmerica WTR 32.50 0.21
Aramark ARMK 36.41 -0.08
Cooper
Corning
COO 197.34
GLW 26.70
-2.46
-0.09
HondaMotor HMC 29.03
Honeywell HON 123.57
-0.60
-0.61
Orix IX 73.81 -1.35
OwensCorning OC 60.21 -0.40
Torchmark TMK 76.03
Toro TTC 61.68
-0.79
-0.60
CLSelPrTechGrFd STK
CerveceriasUnid CCU
21.18
25.61
1.2
-0.5
NYSE lows - 28 MSMktVectRupee INR 40.80 0.4 ChinaAutoLog CALI
NuShEnhYd1-5Y NUSA 25.08 ... CoastwayBancorp CWAY
4.69 41.8 Core-Mark
CumulusMedia CMLS
CORE 30.00 -0.1
0.28 -9.9
17.75 0.6
ArcelorMittal MT 8.19 -0.13 t Coty COTY 17.16 -0.02 HormelFoods HRL 34.46 0.07 PG&E PCG 67.48 0.56 TorontoDomBk TD 49.80 -0.37 CostamarePfdB CMREpB 24.99 2.5 Abercrombie&Fitch ANF 10.54 -2.8 OShFTSEAsiaPacQlty OAPH 27.74 1.0 CollectorsUniv CLCT DelcathSystems DCTH 0.08 -2.5
26.80 -0.2
ArcherDaniels ADM 45.26 -0.15 Credicorp BAP 164.37 -0.76 DR Horton DHI 33.23 -0.06 PLDT PHI 34.39 0.77 Total TOT 50.84 -0.24 DTE Energy DTE 103.25 0.9 AcuityBrands AYI 170.00 -2.0 PwrShS&PEM Mom EEMO 16.83 0.7 Cresud DepoMed DEPO 11.91 -5.7
CRESY 21.55 -1.7
Arconic ARNC 25.89 -0.49 PNC Fin PNC 118.29 -0.86 TotalSystem TSS 52.72 0.07 Darden DRI 84.55 -1.3 AerohiveNtwks HIVE 3.93 -4.8 PwrShRussTop200G PXLG 37.58 -0.4 Deswell DianaContainer DCIX 1.00 -12.1
CreditSuisse CS 14.38 -0.13 HostHotels HST 18.26 -0.04 DSWL 1.98 1.9
AristaNetworks ANET 134.00 0.80 DeVry DV 36.15 0.3 AmerEagle AEO 13.04 ... PwrShS&P500BW PBP 22.20 -0.3 DiscoveryComm C DISCK DimensionTherap DMTX 1.60 -2.9
CrescentPoint CPG 10.67 -0.08 HuanengPower HNP 27.09 0.08 POSCO PKX 61.00 -0.48 ToyotaMotor TM 106.14 -1.87 29.12 -0.1
ArrowElec ARW 70.95 -1.22 DianaShippingNts DSXN 25.37 2.1 BioAmber BIOA 2.00 -2.9 ProShDJBrkGlIn TOLZ 42.16 -0.1 Eastern Dryships DRYS 1.00 -16.9
CrestwoodEquity CEQP 26.55 0.25 Hubbell HUBB 116.49 -1.82 PPG Ind PPG 105.00 0.23 TransCanada TRP 46.18 0.08 EML 23.65 4.0
s AshlandGlobal ASH 124.51 0.73 DianaShipping DSX 5.03 0.8 Buckle BKE 16.00 -4.7 ProShrUltraQQQ QLD 108.97 -0.8 eBay eGain EGAN 1.30 -3.7
CrownCastle CCI 93.69 -0.14 HudsonPacProp HPP 34.30 -0.47 PPL PPL 37.51 0.14 TransDigm TDG 224.44 1.02 EBAY 34.74 -1.0
Disney DIS 113.84 ... Cato CATO 19.86 -2.8 ProShrUlTech ROM 124.08 -0.8 Equinix Eltek ELTK 0.64 -4.4
AstraZeneca AZN 30.46 -0.82 CrownHoldings CCK 52.90 0.38 Humana HUM 210.07 -0.98 PVH PVH 101.98 0.20 TransUnion TRU 38.10 -0.08 EQIX 404.54 ...
Eaton ETN 76.36 -0.3 Coty COTY 17.03 -0.1 ProShUlt3xCrudeOil OILU 31.43 1.6 Facebook FamousDave's DAVE 3.75 -3.8
Athene ATH 51.07 0.33 Cullen/Frost CFR 87.94 -0.95 HuntingtonIngalls HII 198.67 -3.39 PackagingCpAm PKG 90.82 -0.34 Travelers TRV 120.91 0.30 FB 143.44 0.1
ElPasoElectric EE 51.00 1.0 DDR DDR 12.25 -1.8 SPDRMSTech MTK 69.32 -0.6 Fastenal FivePrimeTherap FPRX 33.07 -6.3
AtmosEnergy ATO 80.03 0.38 Cummins CMI 149.82 -0.29 Huntsman HUN 24.45 -0.37 t PaloAltoNtwks PANW 108.01 -1.81 TurkcellIletism TKC 8.11 -0.10 FAST 52.74 -0.1
Energizer ENR 56.80 0.4 EastmanKodakWt KODK/WS/A 0.68 -17.9 SPDRS&PEmgLatAmer GML 52.42 -0.9 51job Function(x) FNCX 0.35 -14.3
Autoliv ALV 96.87 -0.61 s ParkerHannifin PH 159.81 -0.44 TurquoiseHill TRQ 3.08 -0.03 JOBS 38.50 2.4
DCP Midstream DCP 39.31 -0.18 HyattHotels H 53.41 -0.13 Equifax EFX 137.94 0.4 EastmanKodakWt KODK/WS 1.04 ... SPDREmMktSmlCp EWX 46.20 ... FT EM SC Alpha FEMS HamiltonLane HLNE 17.32 1.9
AutoZone AZO 703.03 6.36 37.05 -0.2
s DTE Energy DTE 103.13 0.89 ICICI Bank IBN 8.64 -0.07 ParsleyEnergy PE 31.60 -0.80 Twitter TWTR 14.53 -0.16 Exar EXAR 13.05 ... EdgewellPersonal EPC 69.63 -2.3 SPDR SP EmAsPac GMF 87.35 0.1 FT HK AlphaDEX FHK ITUS ITUS 2.35 -12.0
Avalonbay AVB 185.36 1.16 37.15 1.5
DXC Tech DXC 71.79 2.39 ING Groep ING 14.89 -0.04 Pearson PSO 7.95 -0.12 TylerTech TYL 152.58 ... FMC FMC 72.73 0.7 Express EXPR 8.05 -2.7 SPDR SP EmEuro GUR 29.46 0.8 FT Nasd100xTech QQXT ImmunePharma IMNP 0.13 -1.0
Avangrid AGR 43.57 0.32 44.85 -0.3
Danaher DHR 85.77 0.50 Invesco IVZ 30.28 -0.21 PembinaPipeline PBA 32.10 0.08 TysonFoods TSN 61.95 -0.12 FiveOaksInvPfdA OAKSpA 24.90 -0.2 GNC Holdings GNC 6.74 -5.1 TechSelectSector XLK 53.71 -0.4 FT Nasd100 EW QQEW JMU JMU 2.60 -4.4
51.85 -0.4
AveryDennison AVY 80.08 -0.58 s Darden DRI 82.88 -1.10 IDEX IEX 92.22 -0.87 Pentair PNR 62.38 -0.46 UBS Group UBS 15.49 -0.22 Fortive FTV 60.79 0.4 JumeiIntl JMEI 3.46 -3.1 VanEckGaming BJK 38.09 1.1 Gaia Jamba JMBA 8.65 -2.4
GAIA 10.45 1.5
Avnet AVT 44.56 -0.37 DaVita DVA 67.35 0.17 IllinoisToolWks ITW 131.06 -0.55 PepsiCo PEP 111.94 -0.14 UDR UDR 36.14 -0.05 GAIN Capital GCAP 8.75 -5.8 L Brands LB 43.04 -1.5 VanEckGlbAltEn GEX 55.70 -0.4 GeneralComm A GNCMA KonaGrill KONA 5.45 -6.8
35.82 5.1
AxaltaCoating AXTA 31.58 -0.50 Deere DE 109.25 -0.25 Infosys INFY 15.36 -0.03 PerkinElmer PKI 57.26 -0.20 UGI UGI 49.93 0.22 GabelliGlbMultMed GGT 8.15 0.4 Luby's LUB 3.05 -1.0 VanEckIndiaSC SCIF 54.57 0.8 GladstoneCommPfA GOODP LKQ LKQ 27.89 -1.4
26.45 1.0
BB&T BBT 43.98 -0.56 DellTechnologies DVMT 64.02 -0.16 s Ingersoll-Rand IR 81.87 0.39 Perrigo PRGO 66.61 -0.06 US Foods USFD 27.57 -0.03 GpoAeroportSur ASR 185.55 -0.8 NewMediaInvt NEWM 13.61 -1.4 VangdCnsmrDiscr VCR 138.80 -0.3 GpoFinGalicia GGAL LRAD LRAD 1.40 -0.7
40.41 ...
BCE BCE 44.43 -0.08 PetroChina PTR 73.02 -0.85 83.12 0.5 NY CmntyBcp NYCB 13.57 -1.2 VangdMegaGrwth MGK 96.44 -0.2 Heska LibertyTripAdvB LTRPB 13.40 -1.8
DelphiAutomotive DLPH 75.09 -0.89 Ingredion INGR 120.93 1.22 UltraparPart UGP 22.85 -0.22 Ingersoll-Rand IR HSKA 107.18 -2.1
BHPBilliton BHP 37.12 0.26 25.70 -1.7 NordicAmerOffshr NAO 0.90 ... WBITacticalHiIncm WBIH 24.35 ... HorizNasd100 QYLD LongIslandIcedTea LTEA 3.55 -7.1
DeltaAir DAL 45.08 -0.03 ICE ICE 59.97 0.56 PetroleoBrasil PBR 9.79 -0.16 UnderArmour A UAA 19.62 0.31 IntrawestResorts SNOW 23.35 -0.5
BHPBilliton BBL 31.87 0.22 PaloAltoNtwks PANW 107.31 -1.6 WisdTrEuropeHdgSM EUSC 28.40 -0.5 IdexxLab lululemon LULU 49.40 -0.7
DeutscheBank DB 16.50 -0.15 InterContinentl IHG 48.37 0.08 PetroleoBrasilA PBR/A 9.32 -0.25 UnderArmour C UA 18.56 0.54 ItauCorpBanca ITCB 14.40 2.5 IDXX 157.03 -0.3
PeabodyEnergy BTU 26.00 2.8 WisdTrIndiaEarn EPI 24.48 -0.1 IHSMarkit NII Holdings NIHD 0.88 -8.7
BP BP 34.59 -0.20 DevonEnergy DVN 41.52 -0.97 IBM IBM 172.88 -1.64 Pfizer PFE 34.19 -0.15 Unilever UN 49.57 -0.15 JPMChinaRegion JFC 18.61 0.7 INFO 42.30 -0.2
Revlon REV 26.40 -2.6 NantKwest NK 3.14 -5.1
BRF BRFS 12.34 -0.07 Diageo DEO 114.99 -0.07 IntlFlavors IFF 131.77 0.32 PhilipMorris PM 113.19 -0.26 Unilever UL 49.11 -0.11 LATAMAirlines LFL 13.35 1.2 IntlSpeedwayA ISCA 40.31 -0.6
BT Group BT 19.68 -0.03 Dick's DKS 48.09 -0.75 IntlPaper IP 50.58 -0.12 Phillips66 PSX 77.57 -0.86 UnionPacific UNP 106.76 -0.44 LabCpAm
EliLilly
LH
LLY
145.64
86.72
...
-0.5
SallyBeauty SBH
SeadrillPartners SDLP
19.23 -1.9
2.70 -0.3
NYSE Arca lows - 11 IntuitiveSurgical ISRG 775.91 0.1 Novavax
Novogen
NVAX
NVGN
1.02 -11.2
1.25 -2.3
BakerHughes BHI 60.36 0.21 DigitalRealty DLR 106.88 1.00 Interpublic IPG 24.43 -0.08 PinnacleFoods PF 58.23 0.37 UnitedContinental UAL 70.06 0.30 iRobot IRBT 66.89 -0.3
Target TGT 52.72 -1.3 PathS&P500VIXMT VXZ 25.66 1.3 0.60 -14.3
Ball BLL 72.65 -0.74 LiveNationEnt LYV 31.44 1.2 iShIndia50ETF INDY 32.71 -0.5 OhrPharm OHRP
DiscoverFinSvcs DFS 66.12 -0.93 InvitationHomes INVH 21.58 0.04 PinnacleWest PNW 84.02 0.28 UPS B UPS 106.74 0.11 ValeantPharm VRX 9.49 -6.6 DirexHlthcrBr3 SICK 20.05 1.3
LouisianaPacific LPX 25.81 ... iShS&P EM Infra EMIF 32.15 0.1 Ophthotech OPHT 3.16 -3.3
BancoBilbaoViz BBVA 7.46 ... s Disney DIS 113.00 -0.04 IronMountain IRM 34.94 -0.16 PioneerNatRscs PXD 188.30 0.49 UnitedRentals URI 121.06 -2.71 XinyuanRealEst XIN 4.37 -1.3 DirexTechBear3 TECS 12.57 1.0
MainStreetCap MAIN 38.66 -0.8 iShGlobalInfra IGF 42.54 ... PHI NV PHIIK 11.72 -2.1
BancodeChile BCH 74.23 0.89 DollarGeneral DG 68.50 0.15 IsraelChemicals ICL 4.24 0.05 PlainsAllAmPipe PAA 31.36 -0.06 US Bancorp USB 51.04 -0.42 iPathS&P500DynVIX XVZ 25.81 -1.2
MarriottVacations VAC 101.67 -0.2 ProShUltraProShQQQ SQQQ 36.14 1.2
BcoSantChile BSAC 24.90 -0.11
BancoSantander SAN 5.99 -0.02
DominionRscs D 77.96 0.34 ItauUnibanco ITUB 12.12 -0.36 PlainsGP PAGP 31.03 -0.07 US Steel X 32.64 -1.24 Mobileye MBLY 61.55 -0.2 NYSE Arca highs - 67 ProShShortQQQ PSQ
ProShUlt3xShCrude OILD
41.87 0.4
19.63 0.8
KLA Tencor
LamResearch LRCX
KLAC 97.49 -0.8
130.13 -0.9 RemarkMedia MARK 2.65 -2.6
Domino's DPZ 185.14 -1.22 JPMorganChase JPM 86.19 -1.12 PostHoldings POST 87.02 0.12 UnitedTech UTX 112.50 -0.49 Monsanto MON 116.37 1.0 LAUR 14.55 -2.0 RennovaHealth RNVA 1.30 -9.7
ARKWebx.0ETF ARKW 29.30 0.4 ProShUltMSCI Mex SMK 19.07 -1.0
LaureateEduc
BanColombia CIB 40.63 -0.09 Donaldson DCI 44.60 -0.20 JacobsEngineering JEC 54.31 -0.36 Potash POT 16.85 -0.18 UnitedHealth UNH 165.37 0.40 Moody's MCO 114.07 1.5 RitterPharm RTTR 1.10 -11.2
ColumbiaIndiaCnsmr INCO 39.00 0.2 LeggMasonGlbInfr INFR 27.25 0.8
BankofAmerica BAC 23.17 -0.27 DouglasEmmett DEI 38.50 -0.17 JamesHardie JHX 15.80 0.17 Praxair PX 118.13 -1.14 UniversalHealthB UHS 123.65 0.61 ProShUltShtQQQ QID 18.75 0.7
MS EmMktFd MSF 15.04 ... ColumbiaIndiaInfr INXX 13.30 0.7 LibertyBroadbandC LBRDK 89.75 -0.7 RosettaGenmcs ROSG 2.60 -5.7
BankofMontreal BMO 74.20 -0.36 Dover DOV 80.19 -1.03 J&J JNJ 124.80 0.12 PrincipalFin PFG 62.16 -0.69 UnumGroup UNM 46.06 -0.42 ProShrUSTech REW 25.00 1.2
MS India IIF 32.53 2.4 88.57 -0.8 SPI Energy SPI 1.03 -5.4
BankNY Mellon BK 47.00 0.03 Procter&Gamble PG 89.97 0.06 VEREIT VER 8.58
ColumbiaIndiaSC SCIN 18.90 0.6 ProShsVIXMTFut VIXM 31.13 1.0 LibertyBroadbandA LBRDA
DowChemical DOW 63.52 0.32 JohnsonControls JCI 40.98 -0.32 0.02 MyersIndustries MYE 17.05 1.5 CnsmrDiscSelSector XLY 88.26 -0.2 LibertyVenturesA LVNTA 52.17 1.9 Sabre SABR 20.39 -1.7
BkNovaScotia BNS 58.18 -0.06 WisdTrJpnRealEst DXJR 13.19 -0.7
DrPepperSnap DPS 96.92 -0.63 JuniperNetworks JNPR 27.82 -0.14 Progressive PGR 39.25 -0.01 VF VFC 53.84 -0.10 NaviosMaritimPf NMpG 17.30 4.2 CS FI LC Grwth FLGE 164.89 -0.7 MedidataSolutions MDSO 58.94 1.3 SorrentoTherap SRNE 3.30 -4.3
Barclays BCS 10.80 -0.06 Prologis TOPS 0.82 -20.8
Bard CR BCR 248.89 0.49
DrReddy'sLab RDY 41.85
DuPont DD 80.47
0.61
0.67
KAR Auction KAR 41.64
KB Fin KB 43.32
-0.55
-0.28
PLD 52.67 0.17
PrudentialFin PRU 105.48 -0.71
Visa V
VailResorts MTN 189.95
89.03 0.25
-1.96
NaviosMariPfdH NMpH
NewOrientalEduc EDU
17.01
61.81
4.0
0.1
CSX Mthly2xLvMtg REML
DeutscheXMSCIAWxUS DBAW
32.21
25.51
-0.1
-0.6
NYSE MKT highs - 11 Mesoblast
Microsoft
MESO
MSFT
10.75 -7.1
66.35 -0.3
TOP Ships
Tantech TANH 1.11 -16.0
BarrickGold ABX 19.36 -0.10 DukeEnergy DUK 82.87 0.50 KKR KKR 17.68 -0.36 Prudential PUK 41.64 -0.15 Vale VALE 9.43 -0.43 NewResidInvt NRZ 17.29 -0.9 DirexAuspiceBroad COM 25.29 1.0 AmShrHosp AMS 5.00 1.1 NationalBeverage FIZZ 86.50 -0.1 TearLab TEAR 2.00 -5.6
s BaxterIntl BAX 52.55 0.17 DukeRealty DRE 27.09 0.41 KT KT 16.88 -0.02 PublicServiceEnt PEG 44.42 0.15 ValeroEnergy VLO 65.09 -0.72 NYComBncpPfdA NYCBpA 27.45 0.7 DirexIndiaBull3 INDL 74.22 -1.2 Auxilio AUXO 6.46 8.3 Neothetics NEOT 2.59 12.3 TerraVia TVIA 0.46 -5.9
BectonDickinson BDX 183.31 0.24 ENI E 32.12 -0.53 KSCitySouthern KSU 86.43 -0.05 PublicStorage PSA 222.29 1.98 Valspar VAL 110.98 ... NexPointResidentl NXRT 24.56 0.6 ETFSBloomAllCmdty BCI 25.09 0.5 BancorpNJ BKJ 17.50 7.8 Omeros OMER 16.55 3.7 Trevena TRVN 3.23 -5.0
Berkley WRB 69.53 -0.64 EOG Rscs EOG 97.58 -0.67 Kellogg K 72.75 0.48 PulteGroup PHM 23.29 -0.08 Vantiv VNTV 62.24 -0.33 NordAngliaEduc NORD 27.88 4.4 ETRACSMortgageREIT MORL 18.05 -0.8 BritishAmTob BTI 66.75 0.4 OncobiologicsWtA ONSIW 1.67 108.8 TurtleBeach HEAR 0.81 -3.0
BerkHathwy A BRK/A 248900-1649.99 QuestDiag DGX 97.89 0.27 VarianMed VAR 91.03 NuvAllCapEnerMLP JMLP 10.98 0.3 ETFS PlldmShr PALL 78.14 0.2 CentralSecs CET 24.08 -0.2 PaneraBread PNRA 313.41 14.2 Unilife UNIS 0.28 -75.2
EQT EQT 62.22 -0.19 KeyCorp KEY 17.20 -0.39 -0.21
BerkHathwy B BRK/B 165.83 -1.03 NuvPfd2022Term JPT 25.50 0.8 FidelityMSCICnDisc FDIS 34.75 -0.2 CheniereEnHldgs CQH 24.74 -0.7 PlugPower PLUG 2.40 73.1 UrbanOutfitters URBN 21.83 -2.1
EQT Midstream EQM 77.19 -0.54 KeysightTechs KEYS 36.26 0.02 QuintilesIMS Q 78.23 -0.62 Vedanta VEDL 16.79 -0.13
Ooma OOMA 10.68 0.5 FT GlbEngg FLM 52.55 0.5 CloughGlblDiv GLV 13.44 ... PwrShNasdInternet PNQI 95.17 -0.5 VS2xVIXMedTerm TVIZ 20.15 2.5
BerryPlastics BERY 47.53 0.01 EastmanChem EMN 79.72 -0.53 KilroyRealty KRC 72.00 -0.54 s RELX RENX 18.62 0.01 VeevaSystems VEEV 50.62 -0.35
PIMCODynamicCred PCI 21.54 0.1 FranklinUSLowVol FLLV 27.10 0.9 CloughGlbEqFd GLQ 12.70 0.1 PwrShQQQ 1 QQQ 133.48 -0.4 VSVIXMedTerm VIIZ 8.95 -0.9
BestBuy BBY 47.97 -0.68 s Eaton ETN 74.65 -0.23 KimberlyClark KMB 131.70 -0.52 RELX RELX 19.77 -0.03 Ventas VTR 64.58 0.39
PIMCO IncmStrFdII PFN 10.20 ... GlbX FTSEAndean40 AND 8.96 2.5 IssuerDirect ISDR 11.85 -2.2 ProShUltPrQQQ TQQQ 90.38 -1.1 WindtreeTherap WINT 1.04 -3.7
Bio-RadLab A BIO 199.47 -2.40 Ecolab ECL 124.83 -0.23 KimcoRealty KIM 21.86 -0.04 RPM RPM 53.69 -0.84 Verizon VZ 49.02 -0.29 ParkerHannifin PH 163.14 -0.3 GlbXLithium&Batt LIT 28.55 0.4 RexahnPharm RNN 0.66 -3.6 Qorvo QRVO 69.87 0.4 XenonPharms XENE 3.90 -6.0
BlackKnightFin BKFS 38.20 -0.30 Ecopetrol EC 9.42 -0.06 KinderMorgan KMI 21.47 -0.17 RSP Permian RSPP 40.11 -1.39 VermilionEnergy VET 37.21 -0.33
BlackRock BLK 380.91 0.11 EdisonInt EIX 80.59 0.62 KinrossGold KGC 3.60 0.02 RalphLauren RL 79.52 1.78 Vipshop VIPS 12.73 -0.13
BlackstoneGroup BX 29.47 -0.17 EdwardsLife EW 93.09 -0.01 Kohl's KSS 37.51 -0.18 RangeResources RRC 29.40 -0.36 VMware VMW 91.15 -1.08
BoardwalkPipe BWP 18.32 -0.15 EmersonElectric EMR 59.56 -0.15 KoninklijkePhil PHG 31.77 -0.32 RaymondJames RJF 74.51 -1.41 VornadoRealty VNO 100.81 -0.86
Boeing BA 177.08 -1.62
BorgWarner BWA 38.18 -0.51
EnbridgeEnPtrs EEP 18.97
Enbridge ENB 41.48
-0.03
-0.19
KoreaElcPwr KEP 20.40
Kroger KR 29.31
-0.03
-0.38
Raytheon RTN 149.95 -1.45
RealtyIncome O 59.75 0.03
VoyaFinancial VOYA 36.99
VulcanMaterials VMC 118.22
-0.54
-1.03
Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
BostonProperties BXP 134.17 0.32 Encana ECA 11.65 -0.27 Kyocera KYO 55.55 -0.36 RedHat RHT 84.68 -0.93 WABCO WBC 115.33 0.19 Flaherty & Crumrine Pfd 7.4 .073 Apr28 /Apr21
BostonScientific BSX 24.42 -0.21 EnelAmericas ENIA 10.55 ... s LATAMAirlines LFL 13.07 0.16 RegencyCtrs REG 66.13 -0.22 WEC Energy WEC 61.27 0.66
Dividend announcements from April 5. PFO M
Flaherty & Crumrine Pfd FFC 7.5 .128 M Apr28 /Apr21
Braskem BAK 20.88 -0.31 EnelChile ENIC 5.57 0.06 t L Brands LB 43.10 -0.67 RegionsFin RF 14.37 -0.19 W.P.Carey WPC 62.02 -0.11 Amount Payable /
Bristol-Myers BMY 53.08 -0.67
Flaherty & Crumrine TR Fd FLC 7.6 .133 M Apr28 /Apr21
EnelGenChile EOCC 22.63 0.28 LG Display LPL 13.32 -0.21 ReinsuranceGrp RGA 124.50 -2.55 WPX Energy WPX 13.18 -0.39 Company Symbol Yld % New/Old Frq Record
BrixmorProp BRX 21.15 0.01 EnergyTrfrEquity ETE 19.09 -0.19 LINE LN 38.10 -0.46 RelianceSteel RS 78.24 -2.05 Wabtec WAB 77.37 0.03 PennantPark Floatg Rt Cap PFLT 8.3 .095 M May01 /Apr19
BroadridgeFinl BR 66.89 -0.05 EnergyTrfrPtrs ETP 36.31 0.09 L3 Tech LLL 162.41 -2.33 RenaissanceRe RNR 142.62 -1.87 Wal-Mart WMT 71.65 -0.36 Increased
BrookfieldMgt BAM 36.82 0.12 EnLinkMidPtrs ENLK 18.33 -0.17 s LabCpAm LH 143.55 0.04 RepublicServices RSG 62.69 0.08 s WasteConnections WCN 88.25 0.39
Stocks
BrookfieldInfr BIP 38.28 -0.06 Entergy ETR 76.13 0.32 LambWeston LW 41.74 -0.45 ResMed RMD 69.26 -1.29 WasteMgt WM 73.27 0.74
MV Oil Trust MVO 14.6 .25 /.12 Q Apr25 /Apr14 InterContinental Htls ADR IHG 1:1.044444 /May08
Brown&Brown BRO 41.54 -0.08 EnterpriseProd EPD 27.50 -0.18 LasVegasSands LVS 56.17 -0.50 RestaurantBrands QSR 56.06 0.30 Waters WAT 155.37 0.54 TJX Cos TJX 1.6 .3125 /.26 Q Jun01 /May11
Brown-Forman A BF/A 46.60 -0.55 EnvisionHlthcr EVHC 60.36 0.18 Lazard LAZ 44.53 -0.70 s ReynoldsAmer RAI 63.57 0.41 WeatherfordIntl WFT 6.55 -0.04 Foreign
Brown-Forman B BF/B 45.70 -0.12 s Equifax EFX 136.40 0.59 Lear LEA 133.11 -1.53 RioTinto RIO 40.75 -0.28 WellCareHealth WCG 142.58 2.26 Initial Teekay LNG Ptnrs un TGP 3.2 .14 Q May12 /May05
BuckeyePtrs BPL 68.38 -0.62 EquityLife ELS 78.76 0.43 Leggett&Platt LEG 50.81 0.32 RobertHalf RHI 45.68 -0.28 WellsFargo WFC 54.98 -0.22 Acushnet Holdings GOLF .12 Apr19 /Apr13 Teekay Offshore Ptrs TOO 8.6 .11 Q May12 /May05
Bunge BG 77.32 -0.93 EquityResdntl EQR 63.01 0.68 Leidos LDOS 49.95 -0.76 s Rockwell ROK 155.18 -0.78 Welltower HCN 71.30 0.72 Teekay Offshore Ptrs Pfd TOOpA 9.0 .4531 Q May15 /May08
BurlingtonStores BURL 93.80 0.10 EssexProp ESS 231.37 0.40 Lennar A LEN 50.64 ... RockwellCollins COL 98.34 -0.20 WestPharmSvcs WST 80.15 -0.67 Funds and investment companies
VEON ADR VEON .195 Apr12 /Mar30
CBD Pao CBD 19.21 -0.27 EsteeLauder EL 85.24 0.18 Lennar B LEN/B 42.11 0.31 RogersComm B RCI 43.83 -0.55 WestarEnergy WR 54.66 0.06 C-Tracks ETN Miller/How MLPE 5.2 .3509 Q Apr11 /Apr10
CBRE Group CBG 32.48 -0.32 EverestRe RE 233.80 -2.31 LennoxIntl LII 164.49 -1.38 Rollins ROL 36.22 -0.10 WesternGasEquity WGP 46.54 0.17 Dreyfus Mun Bd Infr Fd DMB 4.9 .053 M May01 /Apr19
s CBS A CBS/A 70.57 -0.17 EversourceEner ES 59.41 0.55 LeucadiaNatl LUK 26.06 0.03 RoperTech ROP 207.08 0.60 WesternGasPtrs WES 60.34 -0.50 Flaherty & Crumrine PFD 7.0 .088 M Apr28 /Apr21 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
s CBS B CBS 69.51 0.31 Exelon EXC 36.06 -0.08 Level3Comm LVLT 58.09 0.33 RoyalBkCanada RY 72.23 -0.07 WesternUnion WU 19.66 -0.05
CF Industries CF 28.80 -0.43 ExtraSpaceSt EXR 77.38 1.24 LibertyProperty LPT 39.26 0.16 RoyalBkScotland RBS 5.93 0.03 WestlakeChem WLK 65.32 -0.79
Flaherty & Crumrine Dyn DFP 7.8 .16 M Apr28 /Apr21 S2:1: stock split and ratio; SO: spin-off.

Mutual Funds | WSJ.com/fundresearch Fund

Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
DivIntl 35.96 +0.01 8.0 CoreBond 11.56 +0.01 1.3 Price Funds ITIGradeAdml 9.74 +0.02 1.8 INSTTRF2030 21.02 -0.05 4.8 TotIntl 15.89 -0.04 8.2
Explanatory Notes Data provided by GroCo
GrowCoK
148.82
148.70
-0.94 8.8
-0.94 8.8
USLgCpCorPls 29.94 -0.14 6.5 BlChip
JPMorgan R Class CapApp
80.00
27.54
-0.14 10.2
LTGradeAdml
-0.01 5.2
MidCpAdml
10.14
170.70
+0.02
-0.70
1.9
5.1
INSTTRF2035 21.05 -0.05
INSTTRF2040 21.07 -0.06
5.2
5.7
TotSt
VANGUARD INSTL FDS
58.67 -0.24 5.1

Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least InvGB 7.86 +0.01 1.5 CoreBond 11.58 +0.02 1.3 EqInc 32.18 -0.14 2.6
MuHYAdml 11.12 +0.01 2.0 INSTTRF2045 21.13 -0.06 5.8 BalInst 32.07 -0.06 3.6
$500 million each. NAV is net asset value. Percentage performance figures are total returns, InvGrBd 11.20 +0.02 1.6 EqIndex 63.23 -0.19 5.6
MuIntAdml 14.01 +0.01 1.6 LifeCon 18.94 -0.01 3.1 DevMktsIndInst 12.57 -0.03 7.4
assuming reinvestment of all distributions and after subtracting annual expenses. Figures dont LowP r 51.16 -0.14 3.4 L Growth 59.07 -0.12 10.9
MuLTAdml 11.46 +0.01 1.7 LifeGro 30.38 -0.08 5.2 ExtndInst 74.46 -0.69 2.7
reflect sales charges (loads) or redemption fees. NET CHG is change in NAV from previous LowPriStkK r 51.13 -0.14 3.4 Lazard Instl HelSci 65.09 -0.50 10.2
MuLtdAdml 10.93 +0.01 1.3 LifeMod 25.16 -0.04 4.2 GrwthInst 62.36 -0.16 9.2
trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return MagIn 96.60 -0.49 5.7 EmgMktEq 17.63 -0.09 10.5 InstlCapG 32.36 -0.07 10.7
MuShtAdml 15.77 ... 0.6 PrmcpCor 23.60 -0.12 6.4 InPrSeIn 10.56 +0.03 1.9
annualized. OTC 93.79 -0.71 12.6 Loomis Sayles Fds IntlValEq 13.64 -0.05 6.5
PrmcpAdml r 116.85 -0.59 7.4 SelValu r 30.09 -0.20 4.6 InstIdx 214.31 -0.64 5.6
Puritn 21.68 -0.04 5.3 IntlStk 16.82 -0.05 10.0
REITAdml r 117.53 +0.11 1.3 STAR 24.84 -0.05 4.9 InstPlus 214.32 -0.64 5.7
e-Ex-distribution. f-Previous days quotation. g-Footnotes x and s apply. j-Footnotes e and s LSBondI 13.95 +0.01 3.6
SrsEmrgMktF 18.08 +0.03 14.9 MCapGro 80.50 -0.28 6.8
SmCapAdml 62.74 -0.58 1.9 STIGrade 10.67 +0.01 0.9 InstTStPlus 52.64 -0.22 5.1
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r- Lord Abbett A
TgtRe2015 15.00 -0.01 3.4
SrsInvGrdF 11.20 +0.01 1.6 ShtDurIncmA p NA ... NA MCapVal 29.72 -0.16 2.3
STBondAdml 10.46 +0.01 0.7 MidCpInst 37.71 -0.15 5.1
Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes TotalBond 10.62 +0.01 1.6 N Horiz 47.18 -0.29 8.9
STIGradeAdml 10.67 +0.01 0.9
TgtRe2020 29.38 -0.05 4.0 MidCpIstPl 185.97 -0.77 5.1
Lord Abbett F TgtRe2025
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete 17.07 -0.03 4.4
Fidelity Selects ShtDurIncm NA ... NA N Inc 9.43 +0.01 1.3
TotBdAdml 10.71 +0.01 1.2
TgtRe2030 30.61 -0.07 4.8
SmCapInst 62.74 -0.57 1.9
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not Biotech r 195.62 -3.55 12.4 OverS SF r 9.77 -0.04 7.7
TotIntBdIdxAdm 21.68 +0.02 0.3 SmCapIstPl 181.09 -1.66 1.9
TgtRe2035 18.67 -0.05 5.2
tracked. NS-Fund didnt exist at start of period. First Eagle Funds M R2015
R2020
14.76
21.39
-0.02 4.1
TotIntlAdmIdx r 26.59
-0.03 4.8
-0.05 8.3 TgtRe2040 31.92 -0.09 5.7
STIGradeInst 10.67 +0.01 1.0
GlbA 57.15 -0.04 5.3 Metropolitan West TotStAdml 58.69 -0.24 5.1 TotBdInst 10.71 +0.01 1.2
R2025 16.33 -0.03 5.4 TgtRe2045 19.99 -0.06 5.8
FPA Funds TotRetBd 10.59 ... 1.0 R2030 TxMIn r 12.55 -0.04 7.3 TotBdInst2 10.67 +0.01 1.2
Wednesday, April 5, 2017 23.83 -0.06 5.8 TgtRe2050 32.15 -0.10 5.8
FPACres 33.58 -0.11 3.0 TotRetBdI 10.59 ... 1.1 R2035 ValAdml 37.04 -0.13 2.8 TotBdInstPl 10.71 +0.01 1.2
Net YTD Net YTD Net YTD 17.30 -0.04 6.2 TgtRetInc 13.09 ... 2.5
FrankTemp/Frank Adv TRBdPlan 9.97 ... 1.2 R2040 WdsrllAdml 64.87 -0.30 4.0 TotIntBdIxInv TotIntBdIdxInst 32.53 +0.02 0.3
Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret 24.72 -0.07 6.5 10.84 +0.01 0.3
IncomeAdv 2.32 ... 3.1 MFS Funds Class I WellsIAdml 62.71 -0.01 2.3 WellsI 25.89 ... 2.3 TotIntlInstIdx r 106.32 -0.20 8.3
FrankTemp/Franklin A SmCapStk 45.62 -0.37 1.5 TotItlInstPlId r 106.33 -0.21 8.3
A BlackRock Funds C TotRetBdN NA ... NA ValueI 37.61 -0.11 4.2 Value WelltnAdml 69.21 -0.17 3.2 Welltn 40.08 -0.10 3.2
CA TF A p 35.11 -0.14 4.3 TotStInst 58.70 -0.24 5.1
GlblAlloc t 17.21 -0.04 4.0 7.37 ... 1.9 Mutual Series WndsrAdml 72.64 -0.36 4.9 WndsrII 36.55 -0.17 4.0
American Century Inv BlackRock Funds Inst F Fed TF A p 11.99 +0.01 1.2 GlbDiscA
Prudential Cl Z & I
31.78 -0.07 4.0 TRBdZ 14.26 ... 2.1
VANGUARD FDS VANGUARD INDEX FDS ValueInst 37.04 -0.13 2.8
Ultra 38.09 -0.11 9.2 EqtyDivd 23.16 -0.10 2.7 Federated Instl IncomeA p 2.34 ... 3.0 GlbDiscz 32.38 -0.07 4.0 DivdGro 24.54 -0.06 5.3 500 217.22 -0.64 5.6
American Funds Cl A GlblAlloc 19.05 -0.04 4.2 StraValDivIS 6.19 ... 5.5 RisDv A p 54.49 -0.23 3.8 S HlthCare r 198.23 -1.21 10.3 ExtndIstPl 183.77 -1.69 2.7 W
AmcpA p
AMutlA p
28.68 -0.13 5.3 HiYldBd 7.75 +0.02 3.0 Fidelity FrankTemp/Franklin C O Schwab Funds
INSTTRF2020 20.94 -0.03 4.0 SmValAdml 51.85 -0.47 0.2 Western Asset
38.22 -0.12 4.3 StratIncOpptyIns 9.89 ... 1.4 500IdxInst 82.77 -0.25 5.6 Income C t 2.37 ... 3.3 Oakmark Funds Invest INSTTRF2025 21.00 -0.04 4.4 TotBd2 10.67 +0.01 1.2 CorePlusBdI NA ... NA
BalA p 25.75 -0.04 4.2 FrankTemp/Temp A S&P Sel 36.36 -0.11 5.6
500IdxInstPrem 82.78 -0.24 5.7
BondA p 12.84 +0.01 1.4 D 500IdxPrem 82.77 -0.24 5.7 GlBond A p 12.46
EqtyInc r
-0.02 4.5 Oakmark
31.32
74.84
-0.11 3.0
-0.34 3.3 T
CapIBA p 59.76 -0.04 4.5 Del Invest Instl
CapWGrA 46.75 -0.10 7.1 Value 20.17 -0.03 2.9
ExtMktIdxPrem r 57.04
IntlIdxPrem r 37.87
-0.52
-0.08
2.7
7.2
Growth A p
FrankTemp/Temp Adv
24.85 -0.04 5.5 OakmrkInt 24.64 -0.02 8.5 TIAA/CREF Funds IPO Scorecard
EupacA p 49.31 ... 9.3 Dimensional Fds Old Westbury Fds EqIdxInst 17.43 -0.07 5.1
FdInvA p 57.74 -0.18 6.3 5GlbFxdInc
TMktIdxF r 67.83 -0.28 5.1 GlBondAdv p 12.42 -0.01 4.6 LrgCpStr 13.63 -0.02 6.2 Tweedy Browne Fds Performance of IPOs, most-recent listed first
10.94 +0.01 1.0 TMktIdxPrem 67.82 -0.28 5.1
GwthA p 45.33 -0.14 7.8 EmgMktVa H Oppenheimer Y GblValue 26.72 ... 6.7 % Chg From % Chg From
27.49 -0.04 14.8 USBdIdxPrem 11.55 +0.01 1.2
HI TrA p 10.40 +0.02 2.8 EmMktCorEq 19.84 -0.01 14.3 USBdIdxInstPrem 11.55 +0.01 1.2 Harbor Funds
DevMktY 35.81 +0.07 12.0 Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day
ICAA p 38.04 -0.14 5.4 IntlCoreEq 12.44 -0.05 6.8 Fidelity Advisor I CapApInst 62.35 -0.21 10.1
IntGrowY 37.16 -0.12 7.2 V IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
IncoA p 22.25 -0.03 3.4 IntSmCo
N PerA p 38.66 -0.10 9.4 IntSmVa
18.67
20.40
-0.03 8.1
-0.04 7.3
NwInsghtI
Fidelity Freedom
28.82 -0.11 7.9 IntlInst r 63.24 -0.28 8.3 P VANGUARD ADMIRAL
500Adml 217.22 -0.65 5.6
Hess Midstream Ptnrs LP 25.60 11.3 ... Canada Goose Hldgs 16.47 30.4 2.4
NEcoA p 39.37 -0.21 9.5 Dimensional Fds Parnassus Fds HESM April 5/$23.00 GOOS March 16/$12.63
FF2020 15.67 -0.03 4.5 I BalAdml 32.07 -0.06 3.6
NwWrldA 57.11 -0.02 11.0 US CoreEq1 19.99 -0.10 4.1 FF2025 13.47 -0.02 4.8 ParnEqFd 40.61 -0.14 3.7 CAITAdml 11.65 +0.01 1.7 Alteryx 16.12 15.1 4.0 Ardagh Grp 21.30 12.1 7.0
SmCpA p 49.51 -0.26 7.7 US CoreEq2 Invesco Funds A PIMCO Fds Instl CapOpAdml r 133.17 -0.75 7.2
19.08 -0.12 2.9 FF2030 16.66 -0.05 5.5 AYX March 24/$14.00 ARD March 15/$19.00
TxExA p 12.83 +0.01 1.5 US Small FreedomK2020 14.59 EqIncA 10.73 -0.04 2.0 AllAsset NA ... NA EMAdmr 33.29 +0.07 12.0
33.26 -0.37 -1.5 -0.02 4.5
WshA p 42.41 -0.14 4.0 US SmCpVal 35.91 -0.45 -3.9 FreedomK2025 15.30 -0.02 4.9 HiYld 8.91 +0.01 2.5 EqIncAdml 70.76 -0.23 4.2 Valeritas 6.41 35.9 10.0 Presidio 15.42 10.1 8.2
AMG Managers Funds US TgdVal 23.45 -0.27 -2.1 FreedomK2030 15.71 -0.04 5.6
J TotRt 10.16 +0.01 2.1 ExplrAdml 83.66 -0.61 4.1 VLRX March 23/$10.00 PSDO March 10/$14.00
YacktmanFd I 22.78 -0.05 6.5 USLgVa 35.91 -0.19 2.8 FreedomK2035 16.35 -0.05 6.0 John Hancock Class 1 PIMCO Funds A ExtndAdml 74.47 -0.68 2.7
LSBalncd 14.83 -0.03 4.4 IncomeFd NA ... NA GNMAAdml
MuleSoft 24.05 41.5 2.8 J.Jill 14.05 8.1 11.1
Dodge & Cox FreedomK2040 16.37 -0.05 6.0 10.55 +0.01 0.7
B Balanced 104.60 -0.38 3.3 Fidelity Invest LSGwth 15.50 -0.05 5.4 PIMCO Funds D GrwthAdml 62.36 -0.16 9.2 MULE March 17/$17.00 JILL March 9/$13.00
Baird Funds Income 13.67 +0.02 1.4 Balanc 23.18 -0.05 5.3 John Hancock Instl IncomeFd NA ... NA HlthCareAdml r 83.60 -0.52 10.3
AggBdInst 10.78 ... 1.3 Intl Stk 41.40 -0.17 8.7 BluCh 75.05 -0.32 11.4 DispValMCI 22.11 -0.14 3.0 PIMCO Funds Instl HYCorAdml r 5.89 +0.01 2.5 ProPetro Holding 14.01 0.1 3.4 Snap 20.70 21.8 15.4
CorBdInst 11.12 ... 1.5 Stock 188.48 -1.25 4.1 Contra 107.41 -0.27 9.8 JPMorgan Funds IncomeFd NA ... NA InfProAd 25.92 +0.07 1.8 PUMP March 17/$14.00 SNAP March 2/$17.00
BlackRock Funds A DoubleLine Funds ContraK 107.35 -0.27 9.8 MdCpVal L 37.43 -0.19 2.8 PIMCO Funds P IntlGrAdml 75.82 -0.24 12.6
GlblAlloc p 18.94 -0.04 4.2 TotRetBdI NA ... NA CpInc r 10.00 ... 4.0 JPMorgan I Class IncomeP NA ... NA ITBondAdml 11.36 +0.02 1.8 Sources: WSJ Market Data Group; FactSet Research Systems
B10 | Thursday, April 6, 2017 * *** THE WALL STREET JOURNAL.

BANKING & FINANCE

BlackRock to Add Cisco J.P. Morgan App

Chief Executive to Board Gains Popularity
Choice of Robbins
shows money
For Large Trades
BY EMILY GLAZER als, Mr. Rohrbaugh added.
managers increased Based on how they interact in
A $100 million mobile- their whole lives, he said, we
reliance on technology phone trade that J.P. Morgan want to be able to offer any-
Chase & Co. Chief Execu- thing they can get on desktop,
BY JOANN S. LUBLIN tive James Dimon mentioned on mobile, in a user-friendly
AND SARAH KROUSE Tuesday following his annual way.
shareholder letter came from a The ability to trade forex on
BlackRock Inc. has nomi- European client of the bank mobile, launched in 2014, also
nated Cisco Systems Inc. who was using the banks app allows users to track the prog-
leader Chuck Robbins as a di- to trade outside the office. ress of their trades by phone.
rector, making him the first The currency move, picked The typical forex trade size
technology chief executive on out by Mr. Dimon and others on mobile is less than $10 mil-
the board of the worlds larg- at the bank as an example of lion, the bank says. Those
est money manager. the growing popularity of new trades are typically executed
The expected election of financial technology on Wall using a function on the banks
Mr. Robbins at Black- Street, was made by an undis- app called tap to trade. Much
Rocks May 25 annual meeting closed bank client in the third larger trades are often plugged
comes as the firm expands re- quarter of 2016. It was a sim- into the app using an algo-
liance on highly sophisticated ple transaction changing euros rithm that automatically exe-
technology. In one example, to dollars, people familiar with cutes a trade over time under
BlackRock has long commer- the trade say. preset instructions.
cialized an internal risk-man- While the deal showed the Large mobile trades are
agement system known as increasing size of trades being picking up. And while they still
DAI SUGANO/TNS/ZUMA PRESS

Aladdin but is increasingly done using new bank technol- represent a small percentage
seeking new ways for its own ogy, it was a relatively small of overall trading, the bank re-
investors and customers to shift of funds in the foreign ex- cently polled about 200 of its
use it. change market, where roughly clients using the J.P. Morgan
The risk-management and $5.1 trillion changes hands Markets platform and found
technology platform has more each day. It also wasnt the about one-third of them would
than 180 customers and nearly banks biggest currency trade use a mobile device if they
$20 trillion in assets, Black- on its J.P Morgan Markets mo- could. Many clients are
Rock President Rob Kapito Cisco Chief Executive Officer Chuck Robbins doesnt sit on any outside corporate boards at present. bile app. In the first quarter, a blocked by compliance policies
said at an investor conference hedge fund made a similar mo- at their firms that cover newer
this February. has run Cisco, a Silicon Valley we invest, measure risk, dis- will have 18 members. Mr. bile trade that was worth trading technologies.
The $5.1 trillion money network-equipment maker, tribute our products, and run Robbins will represent the about four times more, the Overall mobile trading vol-
manager announced the re- since 2015 and currently our operations. said Laurence sixth new independent direc- largest the banks forex desk umes in forex at J.P. Morgan in
cruitment of Mr. Robbins doesnt have any outside cor- Fink, the firms chairman and tor added since 2012. has seen, people familiar with the first quarter of 2017 rose
Wednesday. Two older board porate board seats. CEO, in a statement. Further board turnover the move said. 48% from the first quarter of
members are also expected to For BlackRocks Aladdin Mr. OBrien, who turned 80 looms. Under BlackRocks gov- It is becoming more com- 2016 and 171% from the first
depart this spring, according system specifically, firm lead- years old this year, has been ernance guidelines, directors mon for the bank to let clients quarter of 2015. The bank de-
to a person familiar with the ers are pitching the technol- BlackRocks lead independent must retire at age 75unless execute millions of dollars in clined to disclose the trading
matter. Leaving the board at ogy for risk assessment in the director. His successor in that they had reached 70 years old foreign-exchange trades using volumes themselves.
that time will be Thomas H. wealth-management industry, powerful post will be fellow as of July 2013. Messrs. their cellphones, said Troy Later this year, the bank has
OBrien, a retired CEO of PNC improved Wall Street plumb- director Murry S. Gerber, a OBrien, Komansky and two Rohrbaugh, J.P. Morgans plans to launch mobile trading
Financial Services Group Inc., ing through custodians and former CEO of EQT Corp., ac- other board members were global head of macro trading, in metals, and ultimately it is
and David H. Komansky, a re- digitizing money management cording to a person familiar over 75 as of its April 2016 which includes forex trading. working on expanding mobile
tired CEO of Merrill Lynch & for retail investors. with the situation. proxy statement. All but one Nearly half of the banks cli- trading tools to other markets
Co. At BlackRock, technology Following this years annual had been a BlackRock director ents using the J.P. Morgan such as U.S. Treasurys, said
The 51-year-old Mr. Robbins is rapidly transforming how meeting, the BlackRock board for at least a decade. Markets platform are millenni- Mr. Rohrbaugh.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Taxing
Times the word tax is
mentioned in Constellation
Brands earnings calls
40
30
20
10
0 BY JENNIFER SMITH
FY 2015 16
Note: Constellations scal year ends
in February
Source: FactSet
AHEAD OF THE TAPE
Steven Russolillo
A Trump
Trade With
Upside
No one can
stand in the
way of Amer-
icas affection
for Mexican
beernot
even Donald Trump.
Worries about the presi-
dents posturing toward
Mexico have hurt Constella-
tion Brands Inc., the largest
U.S. distributor of popular
Mexican beers including Co-
rona. A tariff on Mexican im-
ports would make its cheap
beers that much more expen-
sive, potentially hurting
sales. Almost all of Constel-
lations beer is imported
from Mexico.
The once-highflying stock
soured on these concerns, at
one point suffering its worst
drop since the financial cri-
sis. That is overdone. Thurs-
days earnings report should
prove that the recent pain
was nothing more than a bad
hangover.
Analysts polled by FactSet
estimate fiscal fourth-quar-
ter earnings of $1.36 a share,
up 14% from a year ago. Con-
stellation has maintained
that it expects double-digit-
percentage earnings growth
for the next three years. Rev-
enue for the period ending in
February is expected to have
increased 26% to $2 billion.
Constellation flourished
after its $5.3 billion acquisi-
tion almost four years ago of
the U.S. distribution rights
for Corona, several other
Mexican beers and a Mexican
brewery. In addition to being
one of the biggest wine com-
panies, the deal catapulted
Constellation to become one
of the largest U.S. beer sell-
ers. Overall sales have more
than doubled over the past
five years and the stock has
surged eightfold.
But it was mostly politics,
along with a slightly disap-
pointing quarterly earnings
report, that forced the
shares down 11% from Elec-
tion Day through the end of
January.
Current fundamentals
look terrific, says Robert
Ottenstein of Evercore ISI,
while adding there are sig-
nificant policy-related risks.
For its part, Constellation
has said it is ready should a
border tax be implemented.
If, for instance, deductions
for foreign-sourced costs
were disallowed, Constella-
tion Chief Executive Robert
Sands said the company
Beer distributor
Constellation Brands
says it is ready if a
border tax arises.
could shift many of its en-
ergy costssuch as natural
gas used in glass produc-
tionto the U.S. from Mex-
ico. Along with other bene-
fits from tax reform, he even
said the impact of a border
tax could be a net positive
when all is said and done.
Others are sanguine as
well. In January, Moodys up-
graded Constellations senior
unsecured debt ratings to in-
vestment grade, saying the
company has significant fi-
nancial and operating flexi-
bility to manage risks.
Trading at 21 times pro-
jected earnings over the next
12 months, Constellations
historically rich price/earn-
ings ratio is 5% cheaper than
its three-year average and
lower than rivals Anheuser-
Busch InBev SA/NV and
Boston Beer Co. This stocks
siesta is ending.
* * * * * Thursday, April 6, 2017 | B11
MARKETS
Schneider IPO Raises $550 Million
Company goes public
amid a slumping
market for the
trucking industry
AND CORRIE DRIEBUSCH
One of the largest U.S.
trucking companies raised
MORRY GASH/ASSOCIATED PRESS
$550 million in its initial pub-
lic offering, according to peo-
ple familiar with the deal, an
encouraging sign for a slump-
ing freight market.
Schneider National Inc.
and some shareholders sold
roughly 29 million shares at
$19 apiece, the people said,
valuing the Green Bay, Wis.-
based company at $3.3 billion.
Schneider National has had only three CEOs in its history and pitched investors on decades of stability and steady growth.
starts in recent months. debt, as well as capital for in-
The company had aimed to
sell shares for $18 to $20 a
share, according to a regula-
The timing is question-
able, John Larkin, a managing
director of Stifel Nicolaus &
vestments such as buying
chassis, the steel frames that
allow trucks to transport ship-
tory filing. Co., said ahead of the IPO. ping containers, according to a
It is the first trucking com- The first quarter has not regulatory filing.
pany to complete an IPO in the been stellar from a demand Most of Schneiders com-
U.S. since 2010, according to point of view, and contract petitors have removed trucks
data compiled by Dealogic that pricing is not really moving in from the road in an effort to
excludes IPOs via acquisitions. the other direction. In fact boost the rates they charge
Schneider, a family-owned some shippers are asking for shippers. That helped lift
company since its founding in reductions. The stock is ex- shares of many large fleets to
1935, has had three chief exec- pected to start trading on near records in late 2016, but
utives in its history and Thursday, listed on the New trucking stocks have slid over
pitched investors on decades York Stock Exchange under the the past couple months.
of stability and steady growth, symbol SNDR. The deal is Performance varies widely
as well as more recent tech- being led by Morgan Stanley across the sector. Shares in
nology investments, according and UBS Group AG. J.B. Hunt Transport Services
to people who attended the Schneider generated about Inc., the company Schneider
companys presentations $4 billion in revenue in 2016. executives and bankers on the
ahead of the IPO. It operates a fleet of roughly deal say is a comparable firm,
Demand from retailers, 10,500 trucks, carrying goods according to people familiar
manufacturers and other ship- long distance for customers. with the offering, are down
pers has been weak for much The company also runs a lo- 4.9% in 2017, though they are versified freight platform, in- from the institutional inves-
of the past 18 months, shrink- gistics business with freight up 11% from a year ago. cluding its white-glove de- tors for the initial public offer-
ing profits at many of Schnei- brokerage and supply-chain Swifts shares are down 16% livery segment, which could ing, Satish Jindel, president
ders competitors. Some, in- management services, and has this year, and Werner Enter- increase as e-commerce ex- of SJ Consulting Group Inc.,
cluding Swift Transportation an intermodal unit, which ar- prises Inc., another large pands. That could draw inves- said before the IPO priced.
Co., the largest U.S. trucking ranges to transport freight by truckload carrier, is down tors, even as the trucking in- How the stock performs over
fleet, predict a recovery in the truck and train. 4.3%. dustry muddles through a the next quarter or two may
second half of this year, Going public provides Schneider has a reputation rough patch, analysts say. be more difficult to say, given
though the freight market has Schneider with money to pay in the trucking industry for Schneider shouldnt have the market conditions are
experienced several false down about $150 million in sound management and a di- any trouble getting interest soft.
Stocks Give Up Gains After Fed Minutes
BY AARON KURILOFF purchased during and after the looked high relative to some
AND RIVA GOLD 2007-09 recession, later this valuation measures, citing the
year. possibility of a correction in fi-
U.S. stocks fell, reversing an Also Wednesday afternoon, nancial markets as a risk to
early surge that had sent the Reuters reported that Mr. Ryan their economic forecasts.
Dow Jones Industrial Average said the House, Senate and Companies in the S&P 500
up almost 200 points. White House werent yet on have traded at more than 20
Minutes from the Federal the same page on taxes. times their past 12 months of
Reserve and reported com- Theres a general sense earnings for 106 consecutive
ments from House Speaker that until we get into earnings sessions, the longest stretch
Paul Ryan on the status of a season and get broader data since 2010, based on FactSet.
tax overhaul contributed to the points, we continue to be sus- Stocks broad early-session
reversal, some traders and in- ceptible to policy, whether its advance followed oil-price in-
vestors said. monetary policy or fiscal pol- creases and data from payroll
The Dow industrials were icy, said Eric Wiegand, senior firm Automatic Data Process-
up 0.96% at their intraday portfolio manager at U.S. ing Inc. and Moodys Analytics
ELIZABETH SHAFIROFF FOR THE WALL STREET JOURNAL
peak but closed lower in their Banks Private Client Reserve. that showed the U.S. private
biggest erased gain in more We havent seen a great deal sector added a better-than-ex-
than a year. The blue-chip in- of progress on the fiscal policy, pected 263,000 jobs in March.
dex ended the day down 41.09 which continues to be an area The Labor Departments jobs
points, or 0.2%, at 20648.15. of concern for investors. report for March is scheduled
The S&P 500 lost 7.21 Shares of financial compa- for Friday.
points, or 0.3%, to 2352.95, nies led declines in the S&P Prices of U.S. government
and the Nasdaq Composite fell 500, falling 0.7%. J.P. Morgan bonds edged lower, with the
34.13, or 0.6%, to 5864.48. Chase fell $1.12, or 1.3%, to yield on the benchmark 10-
Minutes from the U.S. cen- $86.19. Charles Schwab lost year Treasury note rising to
tral banks March policy meet- 75 cents, or 1.9%, to 39.48, and 2.352%, from 2.350% Tuesday.
ing showed officials agreed Morgan Stanley declined 77 The Stoxx Europe 600
that they would likely begin cents, or 1.8%, to 41.74. inched up less than 0.1%. Asian
reducing the Feds balance Also in the Fed minutes: markets fell early Thursday,
Financial stocks, including Morgan Stanley, led S&P 500 declines. sheet, which includes assets Some officials said stock prices with Japans Nikkei down 1.4%.
Oil Expected to Remain Under $60 a Barrel for Third Year
BY GEORGI KANTCHEV news for U.S. shale producers.
Looking Ahead at Oil Prices Higher prices since the
Analysts expect oil prices to Where investment banks in Marchs survey see the price OPEC deal have already re-
stay below an average of $60 a of U.S. crude-oil futures in the next few quarters sulted in an increase in U.S.
barrel for a third consecutive $110
drilling activity. In the years
year as the resurgence of U.S. Standard first quarter, the number of
shale drillers puts OPECs plans Chartered rigs drilling for crude in the
to raise the price through out-
100
U.S. rose by 137, or 10.5 a
HSBC
put cuts in jeopardy. 90 week, the steepest quarterly
When the Organization of Citigroup rise in nearly six years, ac-
the Petroleum Exporting 80 cording to Commerzbank.
UBS
Countries meets in May to de-
70 Banks forecasts RBC
Production itself is also ris-
cide on an extension of its ing. ING Bank estimates that
production deal, the cartel will 60
Bank of America since October, U.S. output is
face a delicate balance: If it Merrill Lynch up by more than 600,000 bar-
continues to limit output and 50 Socit Gnrale rels a day, which is equivalent
prices rise too fast, U.S. shale to nearly 35% to 40% of the
drillers would ramp up pro- 40 Credit Suisse OPEC cuts achieved so far.
duction. If OPEC scraps the BNP Paribas The OPEC deal has
deal, it risks refueling the 30 breathed new life into the U.S.
Deutsche Bank
global crude glut. [oil sector], which is likely to
OPECs decision has major 20 Barclays complicate OPECs decision in
implications for oil prices. A 10
Nymex crude-oil futures, price a barrel J.P. Morgan May, Barclays said in a recent
poll of 14 investment banks, report. If production growth
Commerzbank
surveyed by The Wall Street 0 2Q 3Q 4Q exceeds expectations, it could
Journal in late March, pre- ING Bank threaten to undo the work of
2014 15 16 17
dicted that Brent crude, the OPEC members last fall.
international oil-price bench- Sources: WSJ Market Data Group (oil price); the companies (forecasts) THE WALL STREET JOURNAL. The bank now forecasts U.S.
mark, will average $57 a bar- crude-oil production will reach
rel this year, unchanged from first half of this year. On May U.S. drillers means OPEC could reached an all-time high, a multidecade high by Decem-
the previous survey. The banks 25, OPEC ministers will meet lose market share by limiting which caused prices to fall be- ber, within sights of the all-
expect West Texas Intermedi- in Vienna to decide whether to output for longer, the groups low $50 a barrel last month. time high reached in 1970.
ate, the U.S. oil gauge, to aver- extend that deal for six months. efforts are yet to bear fruit. The original objective of The banks in recent months
age $55 a barrel this year. OPEC does not want to cut OPECs goal in agreeing to the production cutswill ap- have downgraded their expec-
On Wednesday, Brent set- production too much and push cut production, along with parently not be achieved by tations for oil prices in the
tled at $54.36 a barrel while up prices too fast. The risk is several major producers out- [May], say analysts at Com- next few years, predicting
WTI settled at $51.15 a barrel. that U.S. shale output grows side the cartel, was to see merzbank. The targeted in- Brent crude will average $64 a
Oil prices have risen by even more quickly than fore- global crude stockpiles fall af- ventory reduction will only barrel next year, down $5 from
close to a fifth since OPEC and cast, said Michael Wittner, ter nearly three years of mar- materialize if OPEC output is the survey a year ago. For
other major producers decided head of oil-market research at ket oversupply. But U.S. inven- maintained at its present level 2019, the banks now see Brent
late last year to cut around 2% Socit Gnrale. tories, seen as a bellwether for right into the fourth quarter. at $68 a barrel, down from a
from global production in the But while the resurgence of global stockpiles, have recently This would be welcome prediction of $76 last March.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Thursday, April 6, 2017
As Refinancings Slow, Fed Feels Ripples
Officials look to shed
bonds but some argue Long Unwinding Road
monetary policy is Federal Reserve ofcials are discussing what to do with trillions of dollars in mortgage
and Treasury securities acquired in stimulus programs. The banks practice of reinvesting
already tightening
BY BEN EISEN
AND MIN ZENG
The Federal Reserve has
been buying up fewer mort-
gage bonds in recent months
thanks to a flameout of the
American refinancing boom,
one factor that economists say
is likely to help shape Fed offi-
cials thinking as they consider
shrinking their giant bond
portfolio.
The Fed expects to buy $18
billion of agency mortgage-
backed securitiesthose is-
sued by government-spon-
sored enterprises such as
Fannie Mae or Freddie Mac
in the month ending next
Wednesday. That is less than
half the amount it bought in
the month ended right after
the presidential election, ac-
cording to data from the Fed-
eral Reserve Bank of New
York, and the smallest pur-
chase since mid-2014.
Because the Fed is buying
up less of the mortgage bonds
currently in the market, in
many ways monetary policy is
already tightening on its own,
some traders and analysts say.
They add that the Fed could
view it as a step toward
shrinking its $4.5 trillion bal-
ance sheet, as it considers
whether to begin selling some
securities later in 2017 after
years of bond buying.
At their policy meeting in
March, Fed officials agreed
that they would probably start
shrinking their portfolio later
in the year, but didnt decide
on key details, minutes re-
leased Wednesday show.
The Wall Street Journal re-
ported Friday that the Fed is
formulating a strategy to start
winding down its portfolio by
slowing or stopping reinvest-
ments of maturing debt, per-
haps after raising short-term
Email: heard@wsj.com
Activists Find Fertile Ground in Europe
For all the frustrations
caused by local peculiarities,
Europe is gradually opening
up to activist investors.
The most recent high-pro-
file case of European activ-
ism concerns Dutch paint
company AkzoNobel, which
has rebuffed two offers from
its U.S. peer PPG Industries.
Elliott Management, among
the best known New York ac-
tivists, wants Akzo to enter
talks with PPG, which reiter-
ated its interest Wednesday.
German car maker Volks-
wagen and French defense
group Safran are also under
scrutiny by London-based
hedge fund TCI.
But a lower-profile case
may have more to say about
the direction of European ac-
tivism: Last year, Germany
experienced its first major
successful proxy contest
when a local firm, Active
Ownership Capital, suc-
ceeded in removing the su-
pervisory-board chairman of
a pharmaceutical company,
Stada Arzneimittel.
Germany was long consid-
ered off limits for activists,
Short Sellers of Panera Bread Are Toast
The short slayer has
struck again, and investors
betting against Panera
Bread are its latest victims.
The restaurant chain is
the latest acquisition of Eu-
ropean investment fund JAB
Holding, which said Wednes-
day it was buying Panera for
$7.5 billion, including debt.
The deal is also the latest in
a long line of blows JAB has
dealt to short sellers of
highly valued shares of food
and beverage companies, in-
cluding Keurig Green Moun-
tain, Krispy Kreme Dought-
nuts, Caribou Coffee and
Peets Coffee & Tea.
JABs offer for Panera was
particularly painful for the
large number of investors
who had wagered Paneras
sums received when bonds mature is being slowed by rising interest rates, which have
halted a U.S. renancing boom that boosted bond prepayments. Lower reinvestment
spending means less support for the economy, many analysts contend.
$5 trillion
Fed holdings of securities purchased in the open market
4
3 down from 51% in the fourth
2 tion. That share is forecast to
1 When refinancing slows
0 pal is flowing directly back to
2007
Key interest rates
5%
4
3 The Fed in turn has less
2
1 conditions, and slowing those
0 Weekly
2015
Sources: Federal Reserve Bank of New York (holdings, agency MBS);
Ryan ALM (Treasury); Bankrate.com (mortgage rate); FTN Financial (paydown rate)
interest rates two more times
this year.
From my perspective at
least, it is sensible to begin
thinking now about balance-
sheet moves, Federal Reserve
governor Daniel Tarullo said
in a CNBC interview on
Wednesday, his last day at the
central bank.
The Feds holdings of
U.K.
Italy
2 more likely to vote with ac-
Germany
France
Switzerland
Ireland
Netherlands
1 = 1 company
Sweden
Sources: Activist Insight; Reuters (photo)
partly because of the less fa-
miliar double-board struc-
ture whereby a supervisory
board with investor and la-
bor representation scruti-
nizes a management board.
This means activists need to
pay more attention to labor
interests than in a compara-
ble U.S. or U.K. situation.
But that hasnt stopped
some investors, most notably
Swedish firm Cevian, which
has built long-term stakes to
stock would fall. As of Tues-
day, 17.8% of Paneras float
was out on loan, presumably
to short sellers, according to
IHS Markit. That compares
with an average of around
2.5% for the S&P 500. One
hedge fund labeled Panera a
landmine to shorts.
Some shorts are still
smarting over JABs deal for
Keurig Green Mountain, an-
nounced Dec. 7, 2015. About
11% of the coffee companys
shares were out on loan that
day, and the deal ruined a
good year for some hedge
funds. Among the victims
was David Einhorns Green-
light Capital, which had
taken a public short position
in the stock.
And this wasnt the first
MARKETS
08 09 10 11 12
Reinvestment of maturing
30-year xed
rate mortgage Agency MBS, monthly
10-year Treasury $40 billion
30
20
10
0 10
16 17 2015 16
agency mortgage-backed secu-
rities are likely to be a key
area of consideration, given
that the Fed holds nearly $1.8
trillion of the debt, or more
than 40% of its holdings of se-
curities scooped up through
its open market purchase pro-
gram, New York Fed data
show.
Such securities are made up
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY
27
6
43
12
9 tivists.
7
7 Invest, Protest
7 Number of companies facing
6 activist demands
5 2015
6
2016
4 the support of other share-
3 holders, remove members of
3 AkzoNobel headquarters
THE WALL STREET JOURNAL.
win board seats at the steel
giant ThyssenKrupp and at
industrial-services group Bil-
finger
Investors can get stuff
done if they understand the
market, argues Hans-Chris-
toph Hirt of Hermes.
A total of 97 companies
faced public investor de-
mands last year in Europe,
up from 72 in 2015, accord-
ing to data collector Activist
Insight. The U.K. still ac-
time a bet against Green
Mountain went awry. About
19% of its shares were out on
loan on Feb. 5, 2014 when
Coca-Cola said it would take
a stake in the brand.
Indeed, the closely held
JAB may be willing to pay up
for these companies for the
same reason Coca-Cola was
interested in buying a stake
in Green Mountain: growth is
difficult to come by in the
food-and-beverage sector.
JAB has the added benefit of
not having public sharehold-
ers to answer to.
Short sellers beware: a bet
against a company that falls
into JABs areas of interest
coffee, consumer goods and
foodis a dangerous one.
Miriam Gottfried
13 14
One-month annualized paydown
rate of the Feds MBS portfolio
Expected 30%
25
20
15
17 2015
of pools of mortgages and are
backed by payments on those
home loans. They are seen by
many investors as high-grade
fixed-income instruments due
partly to the notion of an im-
plicit government guarantee,
which reduces the risk.
Now, the pace at which
those bonds are maturing is
being slowed down by the
in Amsterdam
counted for the bulk of the
action, yet the fastest growth
in cases last year came from
former laggards Germany
and Italy.
Changes in the investor
base have supported activ-
ists. Institutional investors
are more present than they
used to beeven if two-
thirds of the largest German
companies are still con-
trolled by big insider stakes,
calculates Edmund Schuster,
OVERHEARD
They say that opposites at-
tract.
Perhaps it shouldnt come
as a surprise then that red-hot
e-commerce giant Ama-
zon.com got together with
Plug Power Inc.
Shares of the beleaguered
alternative energy company
surged by over 75% at one
point on Wednesday after Am-
azon inked a supply agreement
with it worth up to $600 mil-
lion.
That would be a huge boost
for a company that had reve-
nue of less than $86 million
last year and hasnt managed
to earn a profit in the past 20
years.
Yet, while Plug Power may
THE WALL STREET JOURNAL.
Other
Agency mortgage-backed securities
15 16 17 bondholders in the form of
16 17
THE WALL STREET JOURNAL.
drop-off in refinancing.
Last summer, around the
time benchmark interest rates
hit record lows, J. Edgar Mihe-
lic, a 35-year-old accountant at
a nonprofit, considered refi-
nancing the 30-year mortgage
on his Cape Cod-style brick
home in Brookfield, Ill.
But he didnt move fast
enough. Following the U.S.
a professor at the London
School of Economics. And in-
stitutional investors are un-
der political pressure to act
as owners, making them
An enduring problem with
activism in Europe is that
corporate law is different in
each country. The arcane
qualities of Dutch sticht-
ings have become a sticking
point in the AkzoNobel case.
Although Elliott can, with
Akzos board, it is powerless
to nominate replacements.
This probably protects the
company from hostile ac-
tion. Similarly, TCIs opposi-
tion to Safrans proposed ac-
quisition of local peer
Zodiac has come up against
the unshakable problem that
investors dont get a vote on
big deals in France, as they
do in the U.K.
Activists looking to pros-
per in Europe need to master
the local rules of the game. If
U.S. firms dont, others will.
Stephen Wilmot
have been the days hottest
stock, it is among the worst in
recent history.
On Tuesday the stock was
fetching less than 1% of its
split-adjusted peak at the be-
ginning of the century even as
Amazon appreciated more than
100 fold from its 2001 post
tech boom nadir to a fresh re-
cord.
Amazon even looks like the
winner in the short run,
though.
Its deal would give Amazon
55 million Plug Power stock
warrants that were nearly
worthless when the deal was
signed and were worth up to
$66 million Wednesday morn-
ing.
presidential election, mort-
gage rates jumped as investors
bet on faster economic growth
and higher inflation once Don-
ald Trump took office. An av-
erage fixed-rate 30-year mort-
gage came with an annual
interest rate of about 4.3%
this week, versus 3.5% about a
month before the election, ac-
cording to Bankrate.com.
I waited around too long,
Mr. Mihelic said.
Refinances are expected to
have made up 41% of total
mortgage originations in the
first three months of the year,
quarter of 2016, according to
the Mortgage Bankers Associa-
drop to 28% in the second
quarter and 26% in the third.
down, so does the rate at
which mortgage bonds mature,
because less mortgage princi-
prepayments. That is already
hitting the Feds portfolio of
mortgage bonds, in which the
one-month annualized rate of
pay down on the portfolio
slowed to 15% at the end of
February, down from 28% at
the end of July, according to
an analysis by FTN Financial.
maturing bonds to reinvest.
Many economists and inves-
tors say the Feds purchase of
bonds is what eases financing
purchases can signal to mar-
kets that it intends to tighten
policy.
To be sure, some argue that
the act of holding debt on its
balance sheet is a stronger
easing measure, and slowing
reinvestments doesnt neces-
sarily affect the size of the
balance sheet.
But many analysts agree
the purchases play an impor-
tant role in how markets react.
Bond yields shot up, for exam-
ple, when the Fed signaled in
2013 that it could slow the
pace of its bond-buying pro-
gram.
WSJ.com/Heard
Drug Makers
Cant Let
Guard Down
An industry-friendly com-
missioner seems to be com-
ing to the Food and Drug Ad-
ministration. While he is
favored by many executives,
not all drug makers will be
happy once he gets on the
job.
Such is the takeaway from
Scott Gottliebs confirmation
hearing to take the helm of
the agency Wednesday. In
many ways, Dr. Gottliebs
hearing was standard Wash-
ington fare. He parried sev-
eral tough questions on his
ties to industry, but there is
no real reason to doubt he
will win confirmation.
That will please most in-
dustry insiders. A February
survey of 53 drug company
executives by analysts at Mi-
zuho found that more than
70% preferred Dr. Gottlieb to
a host of other potential
nominees. And Dr. Gottlieb
didnt directly state the FDA
would work for lower drug
prices, despite fairly intense
pressure from Sen. Bernie
Sanders, and the president
who appointed him, to do so.
Dr. Gottlieb said that sav-
ings on biosimilarscheaper
versions of complex biologic
drugshave been disap-
pointing.
Dr. Gottlieb indicated that
working towards making
more biosimilars inter-
changeable with the brand-
ed versions, like a traditional
generic drug, would be a pri-
ority. Patents on dozens of
complex biologics are due to
expire in coming years.
If action follows these
words, drug spending trends
might moderate without
more comprehensive legisla-
tion.
Dr. Gottlieb may be fa-
vored by most industry exec-
utives, but investors should
stay on alert once he takes
office.
Charley Grant