For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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DJIA 23439.70 À 17.49 0.1%
What’s
News
Business & Finance
ozens of banks received
D the biggest signal yet that
they may soon be freed from
some of the most onerous
rules put in place after the fi-
nancial crisis, as senators
from both parties agreed to a
plan to ease regulations. A1
 GE’s new CEO outlined a
restructuring plan that will
slash the annual dividend by
$4 billion and streamline the
industrial giant’s operations.
Shares hit a five-year low. A1
 A flood of Chinese firms
is driving the biggest world-
wide surge of initial public
offerings in a decade. A1
 Qualcomm rejected
Broadcom’s $105 billion of-
fer, setting up a showdown
between the chip makers. B1
 Google faces a Missouri
probe into whether the in-
ternet giant’s business prac-
tices violate state laws. B1
 AB InBev is shuffling its
North American leadership
as the brewer struggles to
end a slump in Bud sales. B1
 Venezuela was ruled by
S&P to be in default on a
missed interest payment, fur-
ther pressuring the nation. A10
 SoftBank’s bid to take a
stake of up to $10 billion in
Uber marks a bet on the fu-
ture of the car industry. B4
 Brookfield confirmed it
made a $14.8 billion offer to
buy the 66% of mall owner
GGP it doesn’t already own. B3
 The Dow edged up 17.49
points to 23439.70 following a
flurry of corporate news. B10
World-Wide
 GOP leaders stepped up
efforts to block Moore
from taking a Senate seat,
as new allegations of sex-
ual misconduct surfaced. A3
 Donald Trump Jr. was in
contact with WikiLeaks dur-
ing the 2016 campaign, ac-
cording to an email obtained
by The Wall Street Journal. A4
 Treasury chief Mnuchin
said the Trump administra-
tion wouldn’t support tax
legislation with a corporate
tax rate of more than 20%. A6
 Trump nominated Alex
Azar, an ex-Lilly executive
who has criticized the health
law, to be HHS secretary. A2
 Rescue efforts were un-
der way after a strong
earthquake near the border
between Iraq and Iran killed
at least 414 people. A10
 The Supreme Court
agreed to hear a challenge by
antiabortion pregnancy cen-
ters to a California law. A4
 The Trump administration
can implement part of a
travel ban while litigation
over the policy continues,
an appeals court said. A4
 Trump and Philippine
leader Duterte found common
ground during their meeting,
but skirted difficult issues. A8
 Nearly half of U.S. adults
have high blood pressure, ac-
cording to new guidelines that
lower the risk threshold. A3
 The FDA approved a digi-
tal drug, an antipsychotic
pill that signals smartphones
once it reaches the gut. B4
Journal Report
Nuclear power’s future in
the U.S. Energy, R1-R6
CONTENTS
Business News.. B3,5
Capital Journal...... A4
Crossword.............. A17
Heard on Street.. B11
Journal Report.. R1-6
Life & Arts....... A15-17
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * TUESDAY, NOVEMBER 14, 2017 ~ VOL. CCLXX NO. 115 WSJ.com HHHH $4.00
NASDAQ 6757.60 À 0.1% STOXX 600 386.13 g 0.7% 10-YR. TREAS. g 1/32 , yield 2.400% OIL $56.76 À $0.02 GOLD $1,277.30 À $4.90 EURO $1.1669 YEN 113.62
Powerful Earthquake Near Iran-Iraq Border Kills More Than 400 Senators
Support
Rollback
Of Bank
Oversight
Dozens of banks received
the biggest signal yet that they
may soon be freed from some
of the most onerous rules put
in place after the financial cri-
sis, as lawmakers from both
parties agreed to a plan that
would enact sweeping changes
to current law.
ABEDIN TAHERKENAREH/EPA/SHUTTERSTOCK
By Andrew Ackerman,
Ryan Tracy
and Christina Rexrode
The bipartisan Senate
agreement released Monday
would relieve small and re-
gional lenders from a number
of restrictions meant to limit
the damage firms could cause
TRAGIC TOLL: Iranian soldiers on Monday carried the body of a victim of the temblor, which struck the area late Sunday. ‘The magnitude to the economy in the event of
of the disaster is huge,’ Esmail Najjar, the head of Iran’s National Disaster Management Organization, said on state television. A10 another crisis.
In what would be the big-
gest step to ease the financial
rule book since Republicans
GE Takes Knife to Dividend
took control of Washington,
the proposal could cut to 12
from 38 the number of banks
subject to heightened Federal
Reserve oversight by raising a
Industrial giant cuts for the market to decide,” the key regulatory threshold to
payout by half and Core Focus new CEO said Monday. “Unless $250 billion in assets from $50
General Electric outlined a restructuring plan under which it will I show results, it isn’t going to billion. The legislation also
warns of ‘reset’ year; focus on the power, aviation and health-care markets and may matter.” would ease red tape affecting
shed noncore businesses. Shares of GE tumbled after credit unions and community
shares hit 5-year low his presentation, dropping 7.2% banks, allowing them to lend
Core segments 2017 nine-month revenue 2018 outlook* to end Monday’s trading ses- more, supporters said.
BY THOMAS GRYTA sion at $19.02, its lowest close The deal will “significantly
Power $26.6 billion down 10% in five years and its worst sin- improve our financial regula-
General Electric Co.’s new gle-day drop since the financial tory framework and foster
Aviation $20.2 up 7-10%
leader outlined a restructuring crisis. The stock has declined economic growth by right-siz-
plan that will slash the annual Healthcare $13.7 up 3% 40% this year, missing out on a ing regulation,” said Senate
dividend by $4 billion and broad stock-market rally. Banking Committee Chairman
streamline the industrial gi- Renewable energy $7.4 up 7-10% Some investors said they Michael Crapo (R., Idaho), who
ant’s operations, but warned hoped for more-aggressive ac- brokered the agreement be-
investors it will take years to tion and a shorter timeline. tween Republicans and a
fix some of the company’s busi- Non-core segments “They didn’t lay out as group of moderate Democrats.
nesses and for profits to begin Oil & gas $11.5 billion up 2-5% much as we were expecting to Monday’s deal shows Re-
to improve. see,” said Janna Sampson, co- publicans’ determination to
GE Chief Executive John Transportation $3.2 down 15% chief investment officer of Oak- ease regulations that they say
Flannery lowered earnings tar- Brook Investments, which constrain U.S. economic
gets for 2018 and cautioned Lighting $1.4 up 5%
owned 1.1 million shares at the Please see BANKS page A6
that, even in 2019, conditions end of September. She said she
will be difficult, especially in
*Estimates for organic revenue growth
was expecting a dividend cut
Source: the company THE WALL STREET JOURNAL.
the company’s biggest unit, GE but was looking for the com- Political Opening
Power. He laid out a future for business, a simpler business” The moves stop short of a pany to make a bigger move to  Gerald F. Seib: Opportunity
three core markets—power, but 2018 is going to be “a reset breakup or more-radical re- stimulate the share price. She is test for Democrats.... A4
aviation and health care—and year,” he told investors at a structuring of the 125-year-old said she is concerned that the  Donald Trump Jr. was in
said the company would look meeting Monday. The presenta- company that some analysts Please see GE page A13 contact with WikiLeaks... A4
to shed smaller divisions such tion followed a strategic review had called for, though Mr. Flan-  Mnuchin says no give on
as transportation and lighting. after the GE veteran took over nery left open the possibility of  Heard on the Street: GE light
20% tax rate..................... A6
GE is “going to be a smaller the top job on Aug. 1. further portfolio changes. “It is bulb finally goes on.............. B11
GOP Leaders Call on Moore to Quit
Hobby Lobby Scion Amassed
Relics—Now They’re Tainted
Steve Green’s collection, intended for the new Washington, D.C.,
Bible museum his family built, has been hit by smuggling allegations
BY KELLY CROW sell Mr. Green for $2 million. He was in
MARVIN GENTRY/REUTERS
Dubai with a paid adviser in the summer of
Hobby Lobby President Steve Green was 2010, seeking relics to install in what would
wonder-struck as he walked into a Dubai ho- become the $500 million Museum of the Bi-
tel conference room filled with historical ble in Washington, D.C.
treasures worthy of Ali Baba. After months of back and forth, Mr.
Antiquities lay piled on tables and peeked Green’s family business paid $1.6 million for
from boxes: 4,000-year-old clay tablets that the lot. Mr. Green thought he was getting a
tracked Sumerian wheat sales; stone cylin- bargain. Senate Majority Leader Mitch McConnell and other Republican
ders that ancient families used to imprint Instead, the deal cost Hobby Lobby an- lawmakers urged Roy Moore to abandon his Senate bid, as an
their signatures onto fresh clay documents. other $3 million in July to settle a govern- additional woman accused the former judge of sexual misconduct. A3
The artifacts were samples from a 5,500- ment lawsuit alleging the goods were smug-
piece collection that dealers had offered to Please see BIBLE page A14
China Leads Charge Your Ph.D. Thesis Sounds Funky! Let’s Dance to It
i i i
As IPOs Roar Back Ph.D. students shoot videos to make esoteric research relatable
A flood of Chinese compa- roughly 950 deals in the same BY MELISSA KORN To achieve this breakthrough, Another doctoral student
nies is driving the biggest period last year that raised he rewrote the lyrics to “Good choreographed a video in which
world-wide surge of initial pub- around $120 billion. While list- An esoteric doctoral thesis is Vibrations” by Marky Mark and a woman dressed in red (to sig-
lic offerings in a decade. ings have picked up sharply, not the sort of thing you’d bring the Funky Bunch, donned a nify a blood cell) hula-hoops
More than 1,450 companies dollar volume is only the third up at Thanksgiving dinner. One throwback NBA jersey, per- around two salsa dancers
globally have gone public so far highest over the past decade doesn’t chitchat about pros- formed a series of hip-hop ma- dressed as a cow and a pig. A
in 2017, putting this year on and well below the boom years thetic heart valves in supermar- neuvers, cut it into a two-min- Ph.D. candidate in mathematics
in 2006 and 2007 before the fi- ket checkout lines or dive into ute video and posted it on brought her thesis to life by
By Steven Russolillo in nancial crisis. mathematical representations of YouTube. putting on a black leotard and
Markets............. B10-11 A pickup in economies matrices on blind dates. hanging upside down from a
Opinion.............. A19-21
Hong Kong and Corrie
Sports....................... A18 Driebusch in New York across Asia has led more com- But there’s one thing that rope.
Technology............... B4 panies to seek capital for ex- weird, impenetrable scientific Rather than bore friends and
U.S. News............. A2-6 track to become the busiest for pansion and growth by selling research has proven to be per- family with impenetrable jar-
Weather................... A17
World News..... A8-13
new listings since 2007, accord- stock publicly. Increasingly, fect for: dance videos. gon, hundreds of scientists over
ing to Dealogic data through much of that capital is coming Tee Pamon, a postdoctoral the past decade have shot vid-
Friday. Roughly two-thirds of from investors with newfound fellow at Stony Brook University eos for the Dance Your Ph.D.
> the IPOs were in the Asia-Pa- wealth—particularly in China, in New York, longed to make his competition, sponsored by Sci-
cific region, which has roared which has powered much of the research on vibration-based ence magazine and the Ameri-
past the U.S. to become the IPO surge. therapies for musculoskeletal can Association for the Ad-
dominant region for new stock Please see IPOS page A6 disorders “exciting for people vancement of Science. The
listings. Overall, the deals who aren’t already excited contest offers a $500 prize to
raised more than $170 billion  James Mackintosh: For small about musculoskeletal disor- winners in biology, physics,
globally, compared with the U.S. firms, IPOs fade.............. B1 ders.” Dancing surgeon Please see DANCE page A14
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 | Tuesday, November 14, 2017
Ex-Eli Lilly Official Is Picked to Run HHS
BY STEPHANIE ARMOUR
AND LOUISE RADNOFSKY
President Donald Trump
announced he was nominating
Alex Azar as secretary of
health and human services,
picking a former George W.
Bush administration official
who has criticized the Afford-
able Care Act to lead the
agency that is tasked with car-
rying out the health law.
Mr. Azar, who served as
deputy secretary of HHS be-
fore becoming president of an
Eli Lilly & Co. affiliate, would
inherit a $1 trillion agency
charged with overseeing the
2010 health law in the wake of
congressional Republicans’
failed effort to repeal it.
If confirmed, Mr. Azar
would succeed Tom Price, who
resigned in September over
his use of private-jet and mili-
tary flights. Mr. Azar had been
considered the front-runner
for the position, but the tim-
ing of the announcement on
Monday came as a surprise
when Mr. Trump made it on
Twitter on the final leg of an
Asian trip.
“Happy to announce, I am
nominating Alex Azar to be
the next HHS Secretary. He
We perfect each part of this watch by hand.
Even the ones that you can’t see.
will be a star for better health
care and lower drug prices!”
Mr. Trump wrote in the tweet.
The choice of a detail-ori-
ented lawyer familiar with the
workings of the federal govern-
ment drew praise from Repub-
licans, who said that Mr. Azar
would bring significant institu-
tional knowledge to the job.
Some consumer groups
criticized Mr. Azar’s pharma-
ceuticals background, saying
he might neglect to focus on
lowering drug costs.
Democrats also said they
would press broad objections
to the administration’s desire
to overturn the ACA during his
confirmation process.
Mr. Azar, 50 years old, has
already been confirmed twice
by the Senate for appoint-
ments at HHS. He has exten-
sive knowledge of regulatory
process, cutting his teeth at
HHS by implementing the
Bush administration’s flagship
health-care effort, the Medi-
care Part D prescription-drug
program.
Since then, he has called for
limited federal involvement in
health policy and voiced sup-
port for key conservative
ideas. Mr. Azar couldn’t be
reached to comment.
U.S. NEWS
In a July interview with Fox
Business, Mr. Azar expressed
support for a Senate Republi-
can bill that sought to disman-
tle major portions of the ACA,
saying, “The status quo is
bad—any change can only be a
good thing.”
Mr. Azar got his start in
Washington with a clerkship
for Supreme Court Justice An-
tonin Scalia. He also worked
for Independent Counsel Ken-
neth Starr, who investigated
President Bill Clinton, calling
Mr. Starr “my mentor” in a
Yale Law alumni profile. After
working for Mr. Bush’s presi-
dential campaign in 2000, Mr.
Azar became general counsel
at HHS.
At the end of Mr. Bush’s
first term, Mr. Azar was asked
to stay on as deputy secretary.
His smooth Senate confirma-
tion back then could be an as-
set for Mr. Trump now, given
the turmoil over the adminis-
tration’s intentions to disman-
tle the ACA.
Democrats on Monday
promised a challenging confir-
mation process, though their
ability to block Mr. Azar would
be limited, because Republi-
cans hold a 52-48 advantage
in the Senate.
HEALTH CARE
Hospital Group Sues
Over Subsidy Cuts
The American Hospital Asso-
ciation and other powerful indus-
try groups have sued the Trump
administration to stop $1.6 bil-
lion in cuts to lucrative drug sub-
sidies for some hospitals.
The lawsuit, filed in U.S. Dis-
trict Court for the District of Co-
lumbia, alleges the U.S. Depart-
ment of Health and Human
Services exceeded its authority
with cuts to the subsidy program.
The suit asks the court to stop
the cuts until the case is settled.
The program allows hospitals
to buy drugs at steep discounts.
Medicare historically has paid
hospitals slightly more than the
average sales price for the drugs,
and hospitals kept the difference.
Starting in January, Medicare
plans to slash what it pays hos-
pitals eligible for the program,
under a new rule the administra-
tion released this month.
Carlos Angulo, an attorney for
the AHA and other plaintiffs, said
Congress intended Medicare to
pay more than what hospitals
paid for the drugs, allowing hos-
pitals to use the savings to bene-
fit local communities.
The subsidy was first created
more than two decades ago to
assist hospitals with large num-
bers of uninsured patients. But
the generous subsidies raised
concerns that hospitals might
use pricey drugs unnecessarily.
Alex Azar’s Career
Most recent job: president of
Eli Lilly & Co.’s U.S. unit, the
company’s largest.
Education: Dartmouth College,
1988 A.B. degree, summa cum
laude; Yale Law School, 1991.
u Clerked, U.S. Supreme
Court Justice Antonin Scalia.
u Associate independent
counsel in office of
Whitewater Independent
Counsel Kenneth W. Starr.
u Member of Washington,
D.C., law firm Wiley, Rein and
Fielding, until 2001.
u HHS general counsel, then
deputy secretary, until 2007.
U.S. WATCH
READY TO LAUNCH: Rebekah Adams, 16, preparing a tomato for launch from her homemade device
during a North Augusta High School AP Physics competition in South Carolina on Monday.
HHS officials didn’t respond
to a request for comment.
—Melanie Evans
PUERTO RICO
Governor Seeks
$94.4 Billion in Funds
Puerto Rico’s governor on
Monday asked the federal gov-
ernment for $94.4 billion as the
island struggles to recover from
Hurricane Maria, with much of
the U.S. territory without power
and thousands still homeless.
Ricardo Roselló also urged
Congress to adopt a tax over-
* *
Drug Prices
Rose at Lilly
President Donald Trump
said in a tweet Monday that
his nominee for secretary of
Health and Human Services
will be a “star” for his ability to
lower drug prices, but during
Alex Azar’s tenure as an Eli
Lilly & Co. executive prices
rose dramatically for some of
the company’s top drugs.
Mr. Azar, who served as a
deputy HHS secretary in the
George W. Bush administration,
joined the Indianapolis com-
pany in 2007 as senior vice
president of corporate affairs
and communications. He rose
through the ranks and in 2012
was promoted to president of
Lilly’s U.S. pharmaceuticals unit.
Mr. Azar oversaw sales
teams for drugs including the
erectile dysfunction treatment
Cialis and the blood thinner Ef-
fient. He also oversaw negotia-
tions with health insurance
plans aimed at persuading
them to pay for Lilly’s products.
While Mr. Azar headed the
U.S. business, Lilly came under
haul plan that addresses Puerto
Rico’s specific needs to avoid an
exodus of the companies that
generate 42% of the island’s
gross domestic product.
The governor said during a
news conference that he will
formally make his request to the
White House and Congress,
along with a report with a de-
tailed assessment of damage.
The governor is seeking $46
billion to restore housing through
the Community Development
Block Grant program, $30 billion
within the Federal Emergency
Management Agency to recover
critical infrastructure and $17.9
CORRECTIONS 
AMPLIFICATIONS
Jodie Foster cast Mel Gibson
in her film “The Beaver” before a
phone-call recording of Mr. Gib-
son making misogynistic and
racist remarks was leaked in
2010. A Life & Arts article Friday
about Mr. Gibson incorrectly said
his casting followed the leak.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
THE WALL STREET JOURNAL
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THE WALL STREET JOURNAL.
criticism for raising prices for
some of its drugs, including a
more than doubling in the U.S.
list price for Humalog insulin
between 2011 and 2016.
Lilly has said it pays undis-
closed rebates and offers dis-
counts to health insurers and
pharmacy-benefit managers
that reduce the cost of its prod-
ucts, including Humalog. In 2016,
Lilly said the average U.S. list
price across all of its drugs rose
14%, but the average net price
after rebates and discounts
went up by just 2.4%. Those av-
erages can obscure significant
price boosts on individual drugs.
Moreover, a growing num-
ber of patients don’t benefit
from the discounts, because
they have high-deductible
health-insurance plans that re-
quire them to pay the full list
price for drugs, or a portion of
it, for at least part of the year,
until they meet their deduct-
ibles. That helped drive public
anger about insulin prices.
Other insulin makers, in-
cluding Sanofi SA and Novo
Nordisk A/S, also were criti-
cized for raising prices sub-
stantially.
—Peter Loftus
MICHAEL HOLAHAN/ASSOCIATED PRESS
billion in other federal grant pro-
grams for long-term recovery.
Mr. Rosello said his team will
create a portal that will allow the
public to track the status of the
recovery and funds. That is part
of an effort to placate concerns
after the Puerto Rico Electric
Power Authority selected White-
fish Energy Holdings to help re-
build the island’s electrical sys-
tem, even though the company
had just two employees when
the hurricane struck. The contract
was canceled on Oct. 29 amid bi-
partisan criticism from members
of Congress and a request by Mr.
Roselló to void the deal.
—Associated Press
SOCCER
Corruption Trial
Begins in New York
Lawyers for three former top
Latin American soccer officials
told a Brooklyn, N.Y., federal jury
that international soccer might
have been rife with corruption but
their clients were unfairly charged.
“You’re not here to decide
whether foreign soccer is cor-
rupt,” Silvia Piñera-Vazquez, a
lawyer for former FIFA Vice
President Juan Angel Napout,
told jurors in opening statements
Monday. “Your sole duty is to
decide if Juan Angel Napout was
part of a criminal enterprise.”
Prosecutors from the Brook-
lyn U.S. attorney’s office allege
that Mr. Napout, who led Para-
guay’s soccer federation and Con-
mebol, the South American soc-
cer federation, accepted bribes
and kickbacks in connection with
media and marketing rights for
international tournaments. The
racketeering trial grew out of a
federal investigation into alleged
widespread corruption in FIFA,
soccer’s global governing body.
Manuel Burga, the former
president of Peru’s soccer federa-
tion, and Jose Maria Marin, the
former head of Brazil’s soccer fed-
eration, are also on trial in Brook-
lyn. Bruce Udolf, a lawyer repre-
senting Mr. Burga, said the
government “simply got it wrong.”
Charles Allen Stillman, a law-
yer representing Mr. Marin, com-
pared his client with a “fill in”
player on a youth soccer team,
“the youngster standing off to the
side, picking up daisies,” unaware
of the game going on around him.
—Rebecca Davis O’Brien
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. * * * * Tuesday, November 14, 2017 | A3

U.S. NEWS

©T&CO. 2017
Moore Faces GOP Pressure
Party leaders move to
block Senate nominee
as another woman
alleges misconduct
BY JANET HOOK
AND NICOLE HONG

Republican leaders in
Washington stepped up their
efforts to block Alabama GOP
candidate Roy Moore from
taking a Senate seat as a new
woman went public with accu-
sations of sexual misconduct
by the former judge.
LUCAS JACKSON/REUTERS

A top GOP lawmaker Mon-

day took the extraordinary
step of threatening to force
Mr. Moore out of the Senate if
he fails to quit the race before
the Dec. 12 special election.
“If he refuses to withdraw Beverly Young Nelson, left, made new sex allegations about Roy Moore of Alabama in New York Monday.
and wins, the Senate should
vote to expel him, because he Mr. McConnell had previ- dal threatens the party’s hold press conference organized by
does not meet the ethical and ously said Mr. Moore should on the seat and could tarnish Gloria Allred, a lawyer who
moral requirements of the step aside if the allegations other Republican candidates in has represented women in TIFFANY HARDWEAR
United States Senate,” said prove true, a stance taken by the midterm elections. other high-profile sexual-as-
Sen. Cory Gardner (R., Colo.), other Republicans, including Even Mr. Moore’s fellow Al- sault cases. Ms. Nelson said
chairman of the party’s Senate President Donald Trump. abama Republican, Sen. Rich- that Mr. Moore groped her
campaign arm, which has al- Mr. Moore, who has denied ard Shelby, said he advised Mr. breasts and tried to initiate
ready cut off a fundraising any sexual misconduct, Moore to drop out. “It’s drip sex with her in his car. She
agreement with Mr. Moore. tweeted a response to Mr. by drip,” Mr. Shelby said. “Ev- said the incident left bruises
Earlier in the day, Senate McConnell’s comments: “The erything last week was dis- on her neck after she resisted.
Majority Leader Mitch McCon- person who should step aside turbing, it’s more disturbing Afterward, Ms. Nelson said
800 843 3269 | TIFFANY.COM
nell (R., Ky.) told reporters he is @SenateMajLdr Mitch today.” Mr. Moore told her no one
believed the women who had McConnell. He has failed con- New allegations against Mr. would believe her if she in-
accused Mr. Moore of sexual servatives and must be re- Moore surfaced on Monday af- formed anyone. Ms. Nelson said
misconduct and said he was placed. #DrainTheSwamp.” ternoon, when Beverly Young she told her sister two years af-
looking for an alternative Mr. McConnell is scheduled Nelson said at a news confer- ter the incident and her mother
write-in candidate to face off to appear Tuesday at The Wall ence in New York that she had four years ago. She also said
against Democrat Doug Jones. Street Journal CEO Council’s been assaulted by Mr. Moore she told her husband before
“I think he should step annual meeting in Washington. when she was 16 years old. they got married. The Moore
aside,” Mr. McConnell said. “I Republicans are scrambling Ms. Nelson spoke about the campaign didn’t respond to a
GIFTS FOR THE HANDSOME HERO
believe the women.” because they worry the scan- alleged 1977 encounter at a request for comment.

Hypertension Guidelines Broaden

BY BETSY MCKAY ney failure. The authors of the
Pressure Points guidelines released Monday
Nearly half of all U.S. adults Prevalence of hypertension by gender, race and ethnicity under old said the new definition and em-
have high blood pressure, ac- and new guidelines phasis on lifestyle changes are
cording to sweeping new guide- Previous guidelines meant to help people start man-
lines released Monday that New guidelines aging blood pressure earlier.
lower the threshold for who is Men Women Most of those affected are
considered at risk of complica- 80% 80% younger, the authors said; the
tions from the condition. prevalence of high blood pres-
Most of the people consid- 60 60 sure is expected to triple in
ered newly hypertensive— men under age 45 and double
largely younger Americans— 40 40 in women under age 45.
would be urged to eat “If we want to really cap-
healthier and exercise more 20 20 ture the risk from high blood
rather than take medicine, ac- pressure and effectively reduce
cording to the guidelines, pub- 0 0
complications...at this time the
lished by the American Heart evidence is strong we need to
Association and the American 20-44 45-54 55-64 65-74 75+ 20-44 45-54 55-64 65-74 75+ be taking that lower, to
Age Age
College of Cardiology. 130/80,” said Paul Whel-
Hypertension, or high blood Race and ethnicity ton, guideline-committee chair-
pressure, has traditionally been 33.4% man and a professor at Tulane
defined as 140/90 and above White University School of Public
47.3
for measures of systolic blood 41.0 Health and Tropical Medicine.
and diastolic blood pressure. Black The guidelines eliminate a
54.9
About one-third of U.S. adults, 24.4 category, “pre-hypertension,”
roughly 72.2 million people, Asian that was used to define systolic
36.7
are considered hypertensive 21.1 blood pressures between 120
according to that definition. Hispanic and 139 and diastolic numbers
34.4
BURBERRY
The new guidelines move between 80 and 89. Now, people Sunglasses. $245.
the threshold for hypertension Source: American Heart Association THE WALL STREET JOURNAL. with systolic blood pressures
to a reading of 130/80 and between 130 and 139 and dia-
above, a definition that in- regarded as below 120/80. The sure between beats. stolic blood pressure between
cludes about 46% of U.S. systolic number measures Hypertension, which in- 80 and 89 who are at low risk
adults, or 103.3 million people, pressure in the blood vessels creases in prevalence as people of cardiac complications would
according to the authors. when the heart beats, while age, is a major risk factor for be counseled to lose weight,
Optimal blood pressure is diastolic measures blood pres- heart attacks, strokes and kid- change diets and exercise more.

Hate Crimes Rising,

" . . .T H E M O S T F L E X I B L E O F T H E
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U.S. JET MEMBERSHIP PROGRAMS"

Conklin & de Decker

FBI Statistics Show

BY DEL QUENTIN WILBER last year were motivated in
some form by hate, up from
Hate crimes across the 5,850 in 2015. There were
country rose about 5% in 2016, 5,479 such incidents in 2014,
the second consecutive year in the FBI has said.
which federal authorities tal- The data show nearly 60% of
lied an increase in the number victims in 2016 were targeted
of offenses motivated by bias for their race or ethnicity, 21%
involving race, religion or sex- for their religion, and 17% be-
ual orientation, according to cause of their sexual orienta-
FBI statistics released Monday. tion. Of known offenders, 46%
The Federal Bureau of In- were white and 26% were black.
vestigation, relying on reports
provided by more than 15,000
More than 4,700 hate
crimes were directed at people
F LY
law-enforcement agencies, re- in the form of intimidation, as-
ported 6,121 criminal incidents saults, murder and rape. About
2,500 targeted property.
WITHOUT
The Anti-Defamation League,
U.S. Bias Offenses which fights prejudice and
hate crimes, said it was con-
LIMITS
Almost six in ten hate crimes
that occurred in 2016 were cerned by the increase.
based on ethnicity. Of those, “It’s deeply disturbing to
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Incidents by motivation, 2016 Jonathan A. Greenblatt, the
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identity 2.0 over the years. The FBI cata- 212 .758 . 33 8 8 • V E R D U R A .CO M
Disability 1.2 Gender bias loged more than 9,700 such in-
Original
O r iigg i n a l ggouache
o u a ch e bbyy D
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THE WALL STREET JOURNAL. annually from 2000 to 2008.
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 | Tuesday, November 14, 2017
Democrats’ Test: Don’t Blow New Opportunity ahead of Republican Roy
CAPITAL JOURNAL
By Gerald F. Seib
For Democrats, it must
seem as if the skies have
opened and begun showering
good news down upon them.
In the elec-
tion that really
matters this
year, in Vir-
ginia, they not
only retained
the governor’s
seat but
scored victories down-ballot
in state legislative races. They
also won the New Jersey gov-
ernor’s race and flipped state
legislative seats in Georgia
and Washington state.
In Alabama, of all places,
their U.S. Senate candidate,
Doug Jones, is running even
or, in one new poll, slightly
Donald Trump Jr.
Was in Contact
With WikiLeaks
BY REBECCA BALLHAUS
Donald Trump Jr. was in
communication during the
2016 campaign with WikiLeaks,
the online operation that last
year published a trove of dam-
aging Democratic emails that
the U.S. intelligence commu-
nity concluded were stolen by
Russian hackers, according to
an email obtained by The Wall
Street Journal.
On Sept. 20, 2016,
WikiLeaks contacted the son of
President Donald Trump
through a direct message on
Twitter to advise him about
the pending launch of a web-
site that would highlight ties
between the elder Mr. Trump
and Russian President Vladimir
Putin, according to the email.
“A PAC run, anti-Trump
site putintrump.org is about to
launch,” WikiLeaks warned the
younger Mr. Trump, who was
a top campaign adviser to his
father.
The WikiLeaks message told
him it had “guessed the pass-
word” behind the website, and
asked Mr. Trump Jr.: “Any
comments?”
The president’s son re-
sponded the next day that he
wasn’t aware of the group be-
hind the website, but would
WASHINGTON WIRE
IMMIGRATION
Part of Travel Ban Budget Deficit Rose
Can Start, Court Says Sharply in October
The Trump administration can
implement part of its third ban
on travelers from certain coun-
tries while litigation over the
policy is continuing, an appeals
court said Monday.
The Ninth U.S. Circuit Court
of Appeals, based in San Fran-
cisco, trimmed back a Hawaii
federal judge’s order from last
month that blocked the adminis-
tration from implementing any
of its latest planned travel re-
strictions on people from six
Muslim-majority countries.
The appeals court said Trump
officials for now can impose the
ban on would-be travelers who
don’t have close connections to
people or organizations in the
U.S. But the administration can’t
apply the ban to travelers, in-
cluding extended family mem-
bers, who have bona fide rela-
tionships with U.S. residents, the
Ninth Circuit said.
—Brent Kendall
Crafted in gold & platinum
Order by
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JOHN-CHRISTIAN.COM 888.646.6466
Moore amid allegations that
Mr. Moore once made sexual
advances on a 14-year-old
girl. President Donald Trump
is bumping along at a 39%
job-approval rate, and GOP
Senators Jeff Flake and Bob
Corker have delivered a more
cutting indictment of his per-
formance than any Democrat
could offer.
S
o life is good for Demo-
crats. They now have le-
gitimate hopes of win-
ning back control of the
House of Representatives next
year.
But can they still blow it?
Of course they can.
That’s true in part because
American politics in the last
generation has featured a re-
curring cycle of each party in
turn overplaying a good hand.
This time, Democrats can
miss their chance by deciding
that simply running against
an unpopular president is suf-
ficient, and failing to come up
with an economic message
that recaptures the kinds of
voters they lost to Mr. Trump.
“ask around,” according to the
email, adding, “Thanks.”
He subsequently forwarded
the email to top campaign
aides, including then-campaign
chief executive Steve Bannon,
campaign manager Kellyanne
Conway, senior adviser Jared
Kushner and digital director
Brad Parscale, according to the
email viewed by The Journal.
“Do you know the people
mentioned and what the con-
spiracy they are looking for
could be?” he asked the group.
The website launched and
has since become a project
with the news outlet Mother
Jones that highlights the pres-
ident’s ties to Mr. Putin.
The exchange—which was
first reported by the Atlantic
on Monday and is part of a
collection of documents turned
over to congressional investi-
gators by the younger Mr.
Trump’s lawyers—marks the
first evidence of direct contact
between senior Trump cam-
paign officials and the Swe-
den-based WikiLeaks.
Special Counsel Robert
Mueller and congressional in-
vestigators are probing
whether Trump associates col-
luded in Russia’s alleged ef-
forts to interfere in the 2016
election. U.S. intelligence
FEDERAL GOVERNMENT
The federal government be-
gan its new budget year with an
October deficit of $63.2 billion,
up sharply from a year ago.
The Treasury Department re-
ported Monday that the October
deficit was 37.9 percent higher
than the $45.8 billion deficit re-
corded in October 2016.
The deficit for the 2017 bud-
get year, which ended on Sept.
30, totaled $666 billion, up 13.7
percent from a 2016 deficit of
$586 billion.
—Associated Press
RUSSIA PROBE
Sessions to Appear
Before Committee
Attorney General Jeff Ses-
sions returns to Capitol Hill this
week amid growing evidence of
contacts between Russians and
associates of President Donald
Trump, bracing for an onslaught
of lawmaker questions about
how much he knew of that out-
reach during last year’s White
House campaign.
The appearance before the
House Judiciary Committee on
Tuesday follows a guilty plea
from one Trump campaign aide
who served on a foreign policy
council that Mr. Sessions
chaired, as well as statements
from another adviser who said
he had advised the then-GOP
Alabama senator about a com-
ing trip to Russia.
—Associated Press
P W L C 10 11 12
Put simply, Democrats ha-
ven’t definitively proven they
can succeed in the hardest
task before them: marrying
the energy on the party’s pro-
gressive left with votes from
traditionally Democratic
working-class whites in the
center. Until they do, their
march back to power will re-
main an uphill one, because
turning the 24 House seats
that would add up to a major-
ity will require exactly that.
So how do they accomplish
that task? A good way to ex-
plore that question is to talk
with Rep. Tim Ryan of Ohio, a
rising Democratic star. He
represents not one of his
party’s safe coastal enclaves,
but rather the kind of blue-
collar district around Youngs-
town where Trump voters
emerged in force last year.
Such voters used to be reli-
able Democrats, but Hillary
Clinton won just 51% of the
vote in his district last year.
“Obviously there’s a lot of
intensity within the Demo-
cratic party, so I think that’s a
really good thing that will
continue to benefit us for the
The exchange between Donald Trump Jr. and WikiLeaks was among documents his lawyers turned over to congressional investigators.
agencies in January concluded
that Russia sought to influ-
ence the 2016 presidential
campaign by hacking political
websites and spreading false
ads on social media pages.
The president has called the
investigation a “witch hunt”
and has denied collusion by
him or his campaign, and Mos-
cow has denied meddling in
the election.
The younger Mr. Trump
was questioned by the Senate
Justices Take Up Abortion-Speech Case
BY BRENT KENDALL
AND JESS BRAVIN
WASHINGTON—The Su-
preme Court agreed to take up
an appeal by antiabortion preg-
nancy centers challenging a Cal-
ifornia law that requires them
to tell patients about the avail-
ability of publicly funded preg-
nancy services, including abor-
tion.
The case, Nifla v. Becerra,
was one of three First Amend-
ment-related appeals the high
court added to its docket Mon-
day. The justices also agreed to
consider whether states can ban
political buttons and apparel
from polling stations, and
whether local officials in Flor-
ida can be sued for arresting a
resident who criticized their
land-use policies at a public
meeting.
The abortion speech case
adds another highly charged is-
sue to a docket that already is
filled with divisive cases, in-
cluding one next month that ex-
amines whether a baker can re-
fuse to make wedding cakes for
same-sex couples.
California’s Democratic Gov.
Jerry Brown signed the abor-
tion-clinic measure in 2015 and
it took effect last year. The law,
the Reproductive FACT Act, re-
quires certain licensed preg-
nancy-related centers to post
notices and include disclaimers
in their literature advising pa-
tients that Medi-Cal, the state’s
version of Medicaid, covers
abortions for eligible low-in-
come residents.
The Legislature said the law
H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
next year,” says Mr. Ryan, a
political centrist. “But it’s just
the beginning. We have a long
way to go over the course of
the next year.”
Specifically, he says, “we’ve
got to continue to sharpen
the economic message for our
party.” Many of the congres-
sional districts Democrats
need to win next year, he
adds, won’t contain an area
like northern Virginia, where
The party now has
legitimate hopes of
winning control of the
House next year.
a combination of young pro-
fessionals and upper-income
suburbanites helped propel
Democrat Ralph Northam to
victory in the governor’s race.
“So we’ve got to, I believe,
call out the president’s inade-
quacies in dealing with the
real economic problems of
the country,” he says. For one
Judiciary Committee staff in
September as part of the
panel’s Russia investigation.
Alan Futerfas, a lawyer for the
president’s son, said in a
statement that he had “no
concerns” about his client’s in-
teractions with WikiLeaks dur-
ing the campaign.
“Over the last several
months, we have worked coop-
eratively with each of the com-
mittees and have voluntarily
turned over thousands of doc-
The high court will review a Minnesota law against political messages at polls, including the
Gadsden flag favored by tea-party groups.
was necessary because the tar-
geted facilities, in their efforts
to discourage abortions, “often
confuse [and] misinform
women” about their rights and
available benefits.
Religiously affiliated anti-
abortion pregnancy centers,
and an organization represent-
ing such facilities, petitioned
the Supreme Court. They said
the law violates free-speech and
religious-exercise protections
because it forces them to com-
municate a government mes-
7 8 9 O I X X **** THE WALL STREET JOURNAL.
thing, “we’re still waiting for
this trillion-dollar infrastruc-
ture bill he talked a lot about
in the campaign.” In blue-col-
lar America, that idea trans-
lates not only into fixing
crumbling roads and bridges,
but into jobs.
He also says that, while
Mr. Trump is challenging
trade deals he calls unfair to
the U.S., he has failed to call
out the “inadequate provi-
sions” in those pacts for deal-
ing with labor and environ-
mental standards important
to Democrats. And he says
Trump economic and tax pro-
posals do little to discourage
companies from outsourcing
work abroad. Democrats
should call our corporations
for cheating on taxes, he says,
without being “hostile to
business.”
In some ways, the biggest
Ryan initiative has been his
advocacy of an enormous in-
crease in the earned-income
tax credit, a program that
gives a tax benefit to low-
and moderate-income fami-
lies, even if they don’t owe
federal income taxes. He
uments in response to their re-
quests,” Mr. Futerfas said.
“Putting aside the question
as to why or by whom such
documents, provided to Con-
gress under promises of confi-
dentiality, have been selec-
tively leaked, we can say with
confidence that we have no
concerns about these docu-
ments and any questions
raised about them have been
easily answered in the appro-
priate forum,” he added.
sage about the availability of
state-funded abortion.
In a separate case, the court
said it would decide whether a
state ban on political buttons or
apparel within a polling station
is constitutional. In 1992, the
court upheld a Tennessee law
prohibiting “campaign materi-
als” within 100 feet of a polling
place. The law now at issue, a
Minnesota state statute, sweeps
more broadly, prohibiting mate-
rials that suggest political views
beyond the specific candidates
wants to more than double
that credit for some workers,
which he argues would help
make up for four decades of
wage stagnation.
M
r. Ryan sides with his
party’s progressives
by advocating a gov-
ernment-run, single-payer
health system, but separates
from them in arguing it’s a
mistake to emphasize at-
tempts to impeach Mr. Trump.
At the end of last year, Mr.
Ryan had the audacity to run
against Rep. Nancy Pelosi to
become his party’s House
leader. He failed. Now it’s cer-
tain that Republicans will try
to make Mrs. Pelosi the lib-
eral face of Democratic cam-
paigns nationwide next year.
Mr. Ryan agrees that kind
of GOP campaign is inevita-
ble, but adds that Republicans
have their own unpopular
leaders to cope with. More
important, he says, if Demo-
crats offer a cogent economic
message to swing voters, both
inside and outside their party,
they won’t “get caught up in
this left-right dichotomy.”
KATHY WILLENS/ASSOCIATED PRESS
WikiLeaks didn’t return a
request for comment. Its
founder, Julian Assange, said
in a series of tweets Mon-
day that he couldn’t confirm
the communication between
WikiLeaks and the younger
Mr. Trump. Mr. Assange also
said the president’s son had
been “rebuffed” when he
asked for details from the
website about its pending pub-
lications of the stolen mes-
sages.
JOHN MINCHILL/ASSOCIATED PRESS
or issues on the day’s ballot.
The final case involves a
long-running dispute before the
Supreme Court. In 2013, the
court ruled for Fane Lozman af-
ter the city of Riviera Beach,
Fla., invoked maritime law to
seize the houseboat on which
he had lived.
In the current case, Lozman
v. Riviera Beach, Mr. Lozman
was arrested for disorderly con-
duct after refusing to leave the
lectern at a November 2006
City Council session.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A5

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A6 | Tuesday, November 14, 2017 * *** THE WALL STREET JOURNAL.

U.S. NEWS

Mnuchin Says No Give on 20% Tax Rate

Treasury chief says
Trump won’t budge; GOP Works to Make
‘perfectly fine’ if Yellen Legislation Meet
stays as Fed governor The ‘Byrd Rule’

BY NICK TIMIRAOS WASHINGTON—Senate

Finance Committee Republi-
WASHINGTON—Treasury cans, who began debate on
Secretary Steven Mnuchin said Monday on a major tax over-
the Trump administration haul, must make significant
wouldn’t support tax legislation revisions to their proposals
with a corporate tax rate of in the days ahead to stay
more than 20% as part of any within rules preventing long-
future compromise between the run budget deficits.
House and the Senate. As written, the Senate
In an interview at The Wall Republican tax bill doesn’t
Street Journal CEO Council comply with what is known
gathering Monday, Mr. Mnuchin as “the Byrd Rule,” which pre-
ruled out any increase in the vents the Senate from pass-
corporate tax rate to above ing tax and spending mea-
20%. sures on simple majority
“It’s not going up,” he said. votes if they increase budget
RALPH ALSWANG FOR THE WALL STREET JOURNAL

“I can tell you this is one of the deficits beyond 10 years.

things the president feels very “It literally cannot pass the
strongly about.” Senate. It’s against the rules
Senate Republicans’ proposal unless they have 60 votes,”
to overhaul the tax code, un- said Marc Goldwein, senior
veiled last week, diverges in key vice president of the Commit-
ways from a plan that advanced tee for a Responsible Federal
through a House committee. Budget.
Both bills would reduce the cor- Republicans haven’t said
porate tax rate to 20% from how they plan to change the
35%, but the Senate proposal bill to comply with the Byrd
would delay the rate cut until Rule.
2019, forgo a repeal of the es- The most likely scenario is
tate tax and eliminate the entire Treasury Secretary Steven Mnuchin, right, is interviewed by Wall Street Journal Editor in Chief Gerard Baker at the Journal’s CEO Council. setting many of the tax cuts
state and local tax deduction. to expire after 2027, at the
Compared with the House plan and slightly more under stronger growth. But pressed Jerome Powell to replace Fed cies, Mr. Mnuchin said the new end of the decadelong bud-
bill, those changes and others the Senate plan—would ulti- on whether the Treasury would Chairwoman Janet Yellen when technology needed to be stud- geting period. It may take
freed up hundreds of billions of mately make up the lost reve- release additional models or ev- her term expires next February. ied more carefully, and he more than that. The commit-
dollars that enabled senators to nue through stronger economic idence to support those claims, He said it would be “perfectly warned that the currencies are tee debate is expected to run
avoid tough and politically growth. Forecasts from inde- he demurred. fine” with him if Ms. Yellen re- being used by “a lot of people” through the week, paving the
painful choices. pendent tax-analysis experts “Treasury already has,” he mained on the Fed’s seven- for illicit transactions. Mr. way for full Senate consider-
Mr. Mnuchin said the Trea- show economic growth would said. “We’re going to have out- member board of governors. Mnuchin, a former banking ex- ation after Thanksgiving.
sury Department believes the make up some but not all of the side groups do it.” Ms. Yellen’s term as a governor ecutive, said he didn’t believe The full House is expected
GOP tax overhaul—which con- lost revenue. Mr. Mnuchin also said he doesn’t expire until 2024. that digital currencies were to vote on its tax bill this
gressional analysts estimate Mr. Mnuchin promised “com- strongly supported President Pressed about the prospects helping to lower transaction week.
would cost about $1.4 trillion plete transparency” in showing Donald Trump’s decision to for the wider adoption of bit- costs in the financial-services —Richard Rubin
over 10 years under the House how the plan would deliver name Federal Reserve governor coin and other digital curren- market.

IPOS A total of 377 Chinese com-

panies have completed IPOs in
Shanghai and Shenzhen so far
this year, according to Dea-
Continued from Page One logic, the most since at least
The U.S. has also seen a 1995, when the firm started
pickup in listings and has tracking the data. The deals
drawn some of the biggest of- make up one-fourth of all
ferings this year from the likes global IPOs by number of deals,
of social-media giant Snap Inc. the largest percentage on re-
and cable company Altice USA cord and up from 10% as re-
Inc. Many prominent compa- cently as 2014.
nies, however, are flush with Hong Kong was the world’s
private capital and under no most-popular venue for new
urgency to go public, which has listings the past two years.
kept U.S. IPO activity below its While 2017 hasn’t been as ro-
recent 2014 high. Almost 170 bust, the market has recently
private companies globally are seen newfound fervor.
valued at $1 billion or more, ac- The recent IPO of China Lit-
cording to Dow Jones Venture- erature Ltd., a subsidiary of
Source. That is up from about Tencent Holdings Ltd. that
75 in November 2014. owns a large online library of
Instead, the uptick in new works by Chinese authors,
listings has been largely driven drew more than $100 billion in
by smaller companies outside investor orders for the com-
the U.S. pany’s $1.1 billion stock sale,
“China is the story right with much of the demand com-
now that has distorted the IPO ing from retail investors. Its
picture,” said Andrew Clarke, shares nearly doubled on their
director of trading at Mirabaud first trading day.
Asia Ltd. in Hong Kong. “China Investors are being re-
and Hong Kong are listing lots warded for diving into the new
of stocks. They’re generally listings. Shares of newly public
small, but they add up,” he companies in Asia-Pacific, on
added. average, have risen nearly 154%
Shifting Influence
Asia-Pacific is now the most popular location for initial public
offerings, a sharp change from two decades ago when the Americas
larger listings in the region.
Overall, nearly 950 companies
have gone public in Asia-Pa-
cific, the most since the height
analysts and investment bank-
ers.
As more companies go pub-
lic in Asia, the continent’s vast
dominated the IPO market. of the dot-com boom in 2000. and growing collective of
The number of new listings in wealthy individuals, particu-
Percentage of total number of deals globally per year the U.S. fell sharply around that larly in China, are looking for
Americas Europe, Middle East and Africa Asia-Pacific time, and they have never re- more ways to diversify their
100 % covered to their late-1990s lev- capital. Asia’s billionaires out-
90 els. numbered those in the U.S. last
80 Back then, many fledgling year for the first time, with the
70 companies in the U.S. raced to biggest catalyst being growth
go public to cash in on soaring in China, according to a report
60
equity prices. Ultimately, many by UBS Group AG and PwC.
50 of those companies failed, and Damien Brosnan, Hong
40 the stock market tumbled. To- Kong-based portfolio manager
30 day, the worry is IPOs in Asia at Maven Investment Partners
20 are dominated by smaller com- Ltd. and former head of equity
panies, many of which are un- capital markets for Asia at UBS,
10
profitable and have unproven said he sees more funds setting
0 business models yet are bene- up stock portfolios and strate-
1995 2000 ’05 ’10 ’15 fiting from a friendly market gies that are dedicated to Asia-
Note: through Friday environment. Pacific compared with a few
Source: Dealogic THE WALL STREET JOURNAL. Stock markets in Asia have years ago.
been among the best global Even though listing activity
from their IPO prices this year mand. After a stock-market performers this year, with in- has picked up, there are plenty
through Friday, according to crash in 2015, China’s securities dexes in Hong Kong, Korea and of private companies in Asia
Dealogic. That compares with regulator temporarily halted India gaining at least 20% following big U.S. startups in
an average 32% gain for IPOs in new listings. In the middle of apiece through Friday. Low vol- putting off going public. Asia-
the Americas and a 12% in- last year it started accelerating atility and still-reasonable valu- Pacific represents 40% of IPOs
crease for new issues in Eu- approvals for companies wish- ations relative to the U.S. and by deal value this year, com-
rope, the Middle East and Af- ing to go public. Europe have also bolstered the pared with 32% for the Ameri-
rica this year. Other countries in Asia, in- prospects of Asian stock mar- cas and 28% for Europe, the
The slew of Chinese IPOs is cluding India and South Korea, kets, drawing companies to list Middle East and Africa, accord-
partly a result of pent-up de- have accounted for some of the their shares there, according to ing to Dealogic.

BANKS
Continued from Page One
growth by limiting the capac-
ity of banks and other busi-
nesses to serve customers and
hire new workers. While it
isn’t clear that any rule reduc-
tion will bolster the economy,
efforts to scale back the 2010
Dodd Frank financial overhaul
law and other policies amount
to a bet that a freer environ-
ment will pave the way for in-
creases in investment, spend-
ing and hiring.
Analysts said it isn’t clear
that lending would actually in-
crease, given that demand for
commercial loans this year has
been weak. But banks that had
been avoiding mergers, such
as those that didn’t want to go
over the $50 billion line, could
be more inclined to deal-mak-
ing, said Brian Klock, an ana-
lyst at Keefe, Bruyette &
Woods.
The deal could dramatically
lighten the regulatory burden
on a wide swath of banks from
Utah’s Zions Bancorporation to
M&T Bank Corp. in Buffalo,
N.Y. Those banks in recent
years have had to submit to
detailed financial and risk ex-
ams in order to pay dividends
load.
For stress tests alone, build-
ing a system to meet the Fed’s
expectations could cost firms
tens of millions of dollars or
more. Liquidity rules govern-
ing banks’ cash holdings are
another expensive regulatory
exercise that the legislation
could allow the Fed to ease.
Regional banks have said
their smaller size and lack of
interconnected trading busi-
nesses makes it unlikely that
their demise could create sys-
temic risk that would threaten
the economy as Lehman Broth-
ers’ failure did in 2008. Their
critics say regional banks can
be risky, pointing to the 2008
failure of IndyMac Bank.
The deal marks a setback
for regional banks with assets
above $250 billion, including
U.S. Bancorp and PNC Finan-
cial Services Group Inc., which
have urged policy makers to
do away with asset-size
thresholds altogether. They fa-
vor allowing regulators to ap-
ply rules based on their own
judgment of firms’ riskiness.
“$50 billion? $250 billion?
Why is that number any better
than another?” U.S. Bancorp’s
In brokering the deal, Mr.
Crapo left off key Republican
goals such as attacking the
Volcker rule, a ban on proprie-
chief financial officer Terry tary trading.
Dolan said in an October inter- “This is the first proposal
view. His firm has about $459 that has a legitimate shot at
billion in assets. making it to the president’s
PNC said in a statement desk,” said Milan Dalal, an at-
Monday it was disappointed in torney at lobbying firm
lawmakers’ proposal. “As a Brownstein Hyatt Farber
Main Street Bank, PNC’s busi- Schreck in Washington and a
ness model and risk profile are former aide to Sen. Mark War-
very similar to that of other ner (D., Va.), who backed Mon-
regional banks, and very dif- day’s deal.
ferent from the systemically Republicans hold just 52
important Wall Street banks,” seats in the Senate and gener-
it said. ally need support from at least
Monday’s deal is co-spon- eight Democrats for legislation
sored by nine Republicans, in- to pass a needed 60-vote
cluding Tim Scott of South threshold. The House, also
Carolina and Bob Corker of controlled by Republicans,
Tennessee, along with nine would need to act for the plan
Democrats, including Joe Don- to clear Congress.
nelly of Indiana and Heidi Mr. Crapo released a sum-
Heitkamp of North Dakota. mary of the legislation Mon-
That is enough to clear both day, without unveiling its text.
the banking panel and the full It appears to send a message
Senate, assuming all Republi- that Congress wants regula-
cans in the chamber support tors to lighten the burden,
the bill. though regulators still have
broad authority to apply tough
rules to banks they view as
risky.
Regulators could immedi-
ately exempt firms with assets
between $50 billion and $100
billion from stress tests and
other rules that were manda-
ANDREW HARRER/BLOOMBERG NEWS

to shareholders. tory under Dodd Frank, ac-

Many banks bristled at this
annual “stress test” review
DON’T TAKE NEWS done by the Federal Reserve,
and some including Zions, Citi-
AT FACE VALUE. zens Financial Group Inc.,
Support news literacy at BB&T Corp. and SunTrust
thenewsliteracyproject.org Banks Inc., failed the Fed’s an-
nual test previously. The bill
would lighten their stress-test
cording to the summary of the
legislation. Banks with be-
tween $100 billion and $250
billion in assets could get that
treatment after 18 months,
though the Fed could exempt
them earlier. Banks in the lat-
ter group would still have to
Sen Michael Crapo (R., Idaho) heads the Senate Banking Committee. take periodic stress tests.
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WORLD NEWS
Trump, Duterte Bond, Skirt Tough Issues
U.S., Philippine leaders man rights briefly came up,”
adding that the conversation—
discuss trade, security, on the sidelines of a meeting
avoid alleged abuses, of Southeast Asian nations—
focused on Islamic State, ille-
Chinese sea claims gal drugs and trade.
The two leaders also ap-
BY JAKE MAXWELL WATTS peared to sidestep the issue of
competing territorial claims to
MANILA—President Donald the South China Sea, resource-
Trump and Philippine leader rich waters that are claimed
Rodrigo Duterte found com- by the Philippines, China and
mon ground during their first several other nations. China
extended meeting, but skirted claims almost the entire sea

JIM WATSON/AGENCE FRANCE-PRESSE/GETTY IMAGES

difficult issues such as alleged
human-rights abuses in Mr.
Duterte’s war on drugs and
Chinese claims to the South
China Sea.
The meeting on Monday
was seen as a way for the U.S.
and the Philippines to repair a
historically close relationship
that was shaken last year be-
cause of Mr. Duterte’s anti-
American rhetoric.
The leaders discussed trade
relations, the Philippines’
large outsourcing industry,
U.S. assistance on counterter-
rorism and their personal rela-
tionship, said Harry Roque, a
spokesman for Mr. Duterte. He
said that they affirmed close
ties in a frank 40-minute dis-
cussion and that Mr. Trump
told Mr. Duterte that he has a
friend in the U.S. president.
Before the meeting, Mr.
Trump told reporters he and
Mr. Duterte “had a great rela-
and has militarized some of
the disputed islands.
The Philippines won an in-
ternational arbitration last year
that effectively invalidated
China’s claims, but Mr. Duterte
hasn’t pressed the issue, in-
stead reaching out to Beijing for
investment in infrastructure.
Mr. Duterte said Sunday the
South China Sea is better left
“untouched,” for fear of war.
The U.S. doesn’t take sides
in the dispute, but has con-
President Trump joined hands with Vietnam Premier Nguyen Xuan Phuc, left, and Philippine President Rodrigo Duterte in Manila Monday. ducted frequent naval patrols
through the disputed waters.
tionship.” Mr. Duterte called The tone is a sharp shift Monday’s meeting, however, shot during police operations The issue came up in a meet-
his country “an important from Mr. Duterte’s relationship wasn’t the budding friendship or by gunmen that activists ing between the U.S. and the 10-
ally” and shooed away report- with the U.S. under President but what the presidents didn’t say are police in plain- country Association of South-
ers in a joke shared with Mr. Barack Obama, whom he once discuss in detail—most nota- clothes—a charge that Mr. Du- east Asian Nations, Mr. Roque
Trump, saying, “You guys are insulted for wanting to raise bly, concerns over the Philip- terte denies. said. The countries said they
the spies.” The night before, human-rights issues. Mr. Du- pines’ war on drugs and al- During their meeting, Mr. agreed to commit to peaceful
Mr. Duterte sang a Philippine terte has been public about leged extrajudicial killings. Duterte explained his policy in resolution of disputes under in-
love song at the behest of Mr. harboring animosity toward Since Mr. Duterte took of- the war on drugs to Mr. ternational law, and to “the
Trump, according to a video the U.S. for its colonial history fice last year, thousands of Trump, said Mr. Roque. White rights of freedom of navigation
posted on Twitter by a Philip- in the Philippines. people have died in the crack- House press secretary Sarah and overflight” and “non-milita-
pine government official. What was significant about down on illegal drugs, most Huckabee Sanders said “hu- rization and self-restraint.”

North Korea Soldier Shot at Border Zone

BY ANDREW JEONG
SEOUL—A North Korean
soldier apparently defected to
the South on Monday, only to
HONG KI-WON/YONHAP/REUTERS
Korea stand face to face, was
shot in the shoulder and el-
bow, according to a spokes-
man for South Korea’s Defense
Ministry.
North Korea, and among the deterring Pyongyang.
most photographed and heav- The USS Ronald Reagan,
ily watched places on the Ko- the USS Theodore Roosevelt
rean Peninsula. and the USS Nimitz are con-
Gunshots were first heard ducting the first three-carrier

be shot by his comrades as he
crossed the border at the
most sensitive area of the
heavily armed demilitarized
zone that divides the Korean
Peninsula.
The North Korean soldier,
who tried to cross over at the
A surgeon speaks with a South Korean soldier at a hospital where Joint Security Area, where
a North Korean soldier was taken on Monday for treatment. troops from North and South
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“Our side heard gunshots,
and then we found him near
Freedom House,” the spokes-
man said, referring to the
main building on the South
Korean side of the border,
near where the armistice
agreement declaring a cease-
fire to the Korean War was
signed in 1953.
The spokesman said the
North Korean soldier had been
taken by helicopter to a hospi-
tal for treatment.
It wasn’t clear whether any
South Korean or U.S. person-
nel were wounded in the inci-
dent, but a person briefed by
the South Korean Joint Chiefs
of Staff and a spokesman for
the South Korean Defense
Ministry said the North Ko-
rean soldier was the only per-
son hurt.
The U.S. maintains about
28,500 troops in Korea.
The Defense Ministry
spokesman said it wasn’t clear
whether there were any civil-
ians at the JSA at the time of
the incident. The JSA—a sym-
bol of the Cold War—is one of
the most popular stops for
foreign tourists to South and
on the South Korean side operation in the western Pa-
around 3:30 p.m., the spokes- cific since 2007. The three
man said, and a team from the groups carry about 200 jet
South Korean side secured the fighters that can conduct
wounded North Korean soldier around-the-clock military op-
after about 25 minutes, he erations.
said. Although tens of thousands
The incident follows by of North Koreans have de-
days an attempt at a surprise fected to the South through
visit by President Donald third countries, including
China, it is relatively rare for
soldiers to cross the heavily
fortified DMZ by land, given
The soldier, who was the land mines, barbed-wire
taken to a hospital, fences and artillery on both
sides.
apparently defected to The most recent known de-
the South on Monday. fection of a North Korean sol-
dier over the DMZ was in June
at a different part of the bor-
der.
Trump to the Joint Security The JSA, which has been a
Area during his stop in South venue for talks and prisoner
Korea last week. exchanges among North and
Mr. Trump’s trip was can- South Korea and the U.S., isn’t
celed after his helicopter en- typically the scene of skir-
countered thick fog, though mishes, although violent inci-
Secretary of Defense Jim Mat- dents there aren’t unheard of.
tis visited last month. In August 1976, North Ko-
It also comes as the U.S. op- rean troops killed U.S. Army
erates three carrier strike Capt. Arthur Bonifas and First
groups in the waters just east Lt. Mark Barrett at the JSA, in
of the Korean Peninsula in a what became known as the
show of force aimed in part at Axe Murder incident.

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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A9

WORLD NEWS

Myanmar Resists Pressure Brazil Lacks

BY NIHARIKA MANDHANA
AND MYO MYO Means to Process
Offshore Oil Find
NAYPYITAW, Myanmar—
Aides to Aung San Suu Kyi
have been warning Western
ambassadors that their pres-
sure on Myanmar in support BY PAUL KIERNAN
of ethnic Rohingya Muslims is 500 miles
pushing the country closer to RIO DE JANEIRO—In a few 500 km
China—a sign of the resistance months, Brazil’s federal gov-
that awaits Secretary of State ernment will start receiving
Rex Tillerson when he visits crude oil from a huge field,
on Wednesday. known as Libra, off the coast
The U.S. and others are of Rio de Janeiro. But the gov- BRAZIL
pressing Buddhist-majority ernment has no tanker ships
Myanmar and its Nobel Prize- to unload oil from the plat- Brasília
winning leader to do more to form where it will be pumped.
address a humanitarian crisis It has no terminals to store
NAVESH CHITRAKAR/REUTERS

caused by a military crackdown oil, no pipelines to transport it

on the Rohingya that drove and no refineries to process it. Rio de Janeiro
over 600,000 people across the Worst of all, oil companies São
PAR. Paulo
border into Bangladesh. that do have such assets, like
Libra
Mr. Tillerson in September Brazil’s own Petróleo Brasile-
oil field
condemned what he called the iro SA, or Petrobras, are staying
“horrors that we are witness- away for fear that working with Atl a nti c O cea n
URU.
ing” in Myanmar, amid reports Refugees took shelter Monday after crossing the border, in Teknaf, near Cox’s Bazar, Bangladesh. the government could expose
that the military had burned them to compliance issues at a
Rohingya villages and killed John McCain has called for time when the three-year-old unable to receive any actual oil.
and raped villagers. Proposed Local Leverage such action to punish Myan- Car Wash probe has heightened The law says PPSA is sup-
legislation in the U.S. Congress China dominates the foreign-investment landscape in Myanmar. mar’s military leaders. concerns about corruption. posed to designate a “commer-
seeks to block assets of military The previous sanctions The situation, which offi- cial agent,” such as an energy-
leaders and ban their travel. China $19.38 billion were removed to encourage cials are scrambling to resolve trading company, to offload its
During his visit, Mr. Tiller- Singapore $18.59 Myanmar’s democratic transi- before the government re- oil and sell it on the open mar-
son intends to meet with se- tion. Some U.S. officials said ceives its first 500,000-barrel ket. But PPSA’s president, Ibsen
Thailand $11.01
nior leaders and officials on ac- they worry that reinstating boatload in February or March, Flores Lima, says the govern-
tions to address the crisis and Hong Kong $7.76 any sanctions would under- has been years in the making. ment’s efforts to clarify that
U.S. support for the democratic U.K. † $4.33 mine that process. After Brazil discovered mas- rule weren’t completed until
transition in the formerly mili- Ms. Suu Kyi’s aides are also sive offshore crude deposits a March, and that now it could
tary-ruled country, according South Korea $3.78 sending the message that decade ago, its leaders were ea- take two years to find an agent
to the State Department. Vietnam $2.10 sanctions could worsen her re- ger to show that the money through a public tender.
Myanmar denies refugee ac- Malaysia lationship with the army and would directly benefit the peo- Meanwhile, PPSA had as-
$1.95
counts of atrocities during se- cause the generals to tighten ple. Then-President Luiz Inácio sumed Petrobras would fulfill
curity operations, which came Netherlands $1.51 their grip. Ms. Suu Kyi doesn’t Lula da Silva created a new sys- the role of selling the govern-
after a Rohingya militant India $0.74 control the military, which still tem whereby drilling rights to ment’s oil on its behalf. But
group attacked military out- runs many of the most impor- so-called strategic areas were the legal framework drawn up
Japan $0.72
posts near the border in Au- tant government agencies. auctioned off to those firms in March scared Petrobras
France †British Overseas Territories
gust. Ms. Suu Kyi’s govern- $0.55 Aides said Ms. Suu Kyi’s promising the government the away. The rules would require,
Note: Figures as of Sept. 30, 2017
ment accuses Western leaders U.S. $0.38 Source: The Directorate of Investment priority is to be able to work greatest share of “profit oil,” or for instance, that Petrobras
of falling for what they say are and Company Administration with the military to achieve the product that remains after obtain the best possible price
Indonesia $0.27
biased reports. THE WALL STREET JOURNAL. her longer-term goals, which exploration, development and for the government’s oil,
Ms. Suu Kyi’s aides said she include constitutional change production costs are covered. something Petrobras officials
wouldn’t change course in re- move closer to its neighbor indicated they would remain toward a fuller democracy. Auctioned in 2013 to a con- say would be impossible to
sponse to U.S. or European China. Beijing has been Myan- engaged with Myanmar. Aides also said Ms. Suu Kyi sortium led by Petrobras, Li- prove given the commodity’s
sanctions. mar’s most vocal defender. Advisers to Ms. Suu Kyi feels betrayed by the West and bra’s contract stipulated that minute-by-minute volatility.
“We are used to being un- Western officials said they said they expect the U.S. will has sunk into siege mentality. 42% of profit oil be given to a Adriano Pires, an energy
der pressure—first it was the had tried but failed to push reimpose some of the restric- “In a few years, the U.S. and specially created, state-owned consultant based here, said he
military, now it’s the West,” Ms. Suu Kyi’s government to tions former President Barack Europe might be asking: Who entity dubbed Pré-Sal Petróleo suspects the government
said Win Htein, a senior party take concrete steps that would Obama lifted last year after won and then lost Myanmar?” SA, or PPSA. wrote such stringent rules in a
leader close to Ms. Suu Kyi. help ease the global outcry. A Ms. Suu Kyi’s National League said Simon Tay, chairman of the By law, PPSA sales are ear- bid to eliminate corruption.
Mr. Win Htein said he has Western diplomat said the U.S. for Democracy came to power Singapore Institute of Interna- marked to a special fund that is “Brazil in the time of Opera-
told Western diplomats that if and Europe had little leverage in Myanmar’s first free elec- tional Affairs. “Myanmar wants supposed to spend money on tion Car Wash demands in-
such pressure continues, “it’s because China, Japan, India tion in half a century. to diversify, but if they have no areas like education and health. creasingly transparent mod-
inevitable” that Myanmar will and other Asian nations had Arizona Republican Sen. choice, they will turn to China.” The trouble is, PPSA finds itself els,” he said.
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A10 | Tuesday, November 14, 2017 * **** THE WALL STREET JOURNAL.

WORLD NEWS WORLD WATCH

Quake Recovery Proceeds

VENEZUELA
S&P: Nation in Default
On Interest Payment
Rescue efforts were under Venezuela was ruled in de-
way Monday after a strong fault on a missed interest pay-
earthquake near the border ment by S&P Global Ratings,
between Iraq and Iran killed at pushing the cash-strapped South
least 414 people and injured American country and its credi-
many more. tors one step closer to a reckon-
ing of its $150 billion debt load.
By Aresu Eqbali The decision by S&P capped
in Tehran and Asa a day in which Venezuela prom-
Fitch in Dubai ised to keep paying its debts at
a conference in Caracas that
The U.S. Geological Survey was attended by few of the
said the epicenter of the mag- Western bondholders that are
FARZAD MENATI/AGENCE FRANCE-PRESSE/GETTY IMAGES
operation on defense, or Pesco,
proposes increased military
spending and cooperation, provid-
ing a way to overcome restric-
tions on individual EU member
states’ defense budgets. It also
comes as the Trump administra-
tion has intensified Washington’s
longstanding push for Europe to
shoulder more of the financial
burden of its own defense.
Of the EU’s 28 members, five
countries didn’t sign the agree-
ment on Monday. Britain is leav-
ing the bloc and Denmark has
an opt-out on defense matters.
Ireland, Malta and Portugal have
yet to sign. EU officials have

nitude-7.3 quake was in Iran likely to be hit by a default. said some of the abstainers are
about 20 miles south of Halab- S&P downgraded Venezuela’s thinking of joining and have until
jah, a city in Iraq’s Kurdish re- long-term debt rating to selective December to decide, when the
gion. It took place at 9:18 p.m. default late Monday after it said pact becomes legally binding.
on Sunday. the government failed to make —Julian E. Barnes
“The magnitude of the di- two bond coupon payments. and Robert Wall
saster is huge,” Esmail Najjar, The missed payments could
the head of Iran’s National Di- allow investors to declare the FRANCE
saster Management Organiza- government in default, which
tion, said on Iranian state tele- would enable bondholders to ini- Paris Remembers
vision. “It is unprecedented in tiate defaults in other Venezue- 2015 Attack Victims
this area.” lan debt and set off a scramble
Iranian officials said that in for assets among the country’s Families of the victims of
addition to 407 killed in Iran, many and varied creditors, law- France’s deadliest terror attacks
at least 6,700 were injured. In Iranians mourn over the body of a victim of Sunday’s earthquake along the Iran-Iraq border. yers and analysts say. stood alongside President Em-
Iraq, the Interior Ministry said —Julie Wernau manuel Macron on Monday to
seven people were killed and died there, Iranian authorities Sulaymaniyah, an Iraqi Kurd- said. and Anatoly Kurmanaev honor the 130 people killed two
321 injured. said. The toll in Qasr e-Shirin ish city. Turkey also offered to While there are no major years ago when Islamic extrem-
In Iran, military forces were was 28. assist. population centers in the im- EUROPEAN UNION ists attacked the City of Light.
mobilized, and authorities Hospitals near the epicenter On Monday, the Trump ad- mediate vicinity of the quake’s A crowd joined them on the
sent helicopters to transport were damaged, and the one in ministration issued a brief epicenter, a mountainous area Majority Agrees memorial sites to lay roses and
the injured. Hundreds of aid Sarpol Zahab couldn’t con- statement offering condo- pockmarked with small vil- On New Defense Pact light candles in memory of the
workers and rescue teams tinue operating, state televi- lences to those affected. lages, it lies about 46 miles victims.
were dispatched to provide sion said. Qasr e-Shirin’s hos- “The United States ex- southeast of Sulaymaniyah, The governments of 23 EU Dozens of families and Pari-
food, tents and blankets, state pital was destroyed, according presses its sincere condo- the capital of a province esti- countries agreed to a new de- sians gathered outside the Bata-
television said. to an official. Authorities were lences to all of those affected mated by the Iraqi govern- fense arrangement aimed at im- clan concert hall, where extrem-
The worst-affected areas in setting up field hospitals. by the earthquake in Iran and ment in 2007 to have around proving military cooperation ists opened fire on a dancing
Iran were Sarpol Zahab, Qasr A European Union spokes- Iraq. We keep the families of 1.9 million residents. within the bloc in an agreement crowd and held hundreds hos-
e-Shirin and Salas Babajani, man said humanitarian part- those who were killed, and in- Hospitals in Sulaymaniyah that is scheduled to come into tage in an hourslong standoff
three towns close to the bor- ners in the region were start- jured, in our thoughts as well received about 83 people af- force next month. with police. Ninety people were
der with Iraq, according to ing to provide emergency as the communities that have fected by the quake Monday The permanent structured co- killed. —Associated Press
state television. assistance. The World Health suffered damage to homes and morning. Tremors were felt as
Sarpol Zahab was hit espe- Organization sent a response property,” State Department far as the United Arab Emir-

CHAIDEER MAHYUDDIN/AGENCE FRANCE-PRESSE/GETTY IMAGES

cially hard. At least 236 people team and two ambulances to spokeswoman Heather Nauert ates and Turkey.

EU Snubs U.S. Calls to Raise Pressure on Iran

BY LAURENCE NORMAN cent weeks to raise the cost to
Iran of advancing its ballistic-
BRUSSELS—The European missile program and stoking
Union’s top diplomat rebuffed conflicts in the region.
proposals from Washington to European officials said they
ratchet up pressure on Iran, would work with Washington
saying the bloc has no plans to on those issues but are lobby-
discuss new sanctions on Teh- ing the U.S., in exchange, not
ran. to abandon the Iranian nuclear
The U.S., following the ad- deal, in which Tehran agreed
ministration’s review of Iran to significantly scale back its
policy, has urged allies in re- nuclear activities in exchange
for the lifting of international
sanctions.
President Donald Trump,
who has called the 2015 nu-
clear accord the “worst deal
ever,” has urged Congress to
amend U.S. domestic legisla-
tion to threaten reimposition
of sanctions if Iran takes steps
not directly outlawed by the
accord. That includes advanc-
ing Iran’s missile program.
But EU foreign-policy chief
Federica Mogherini, who re-
turned from meetings on the
nuclear agreement in Wash-
ington last week, has said new
sanctions aren’t on the
agenda. “We didn’t discuss—
not today, not last week...
about sanctions, further sanc-
tions, from the European
Union side on Iran,” she said POD SQUAD: Conservation officers and environmental activists
on Monday. try to refloat stranded sperm whales in Aceh Besar, Indonesia.

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. NY Tuesday, November 14, 2017 | A11

WORLD NEWS

Central Lebanese Take Crisis in Stride

Banker War-weary country now faces political turmoil; ‘people forget how used to this we have become’
Sees Calm Lebanon’s prime minister
has resigned. His powerful

Returning patron, Saudi Arabia, has

vowed to turn up the heat on
the small Middle Eastern
BY PAUL HANNON country. The powerful Leba-

LONDON—The head of Leb- By Nazih Osseiran in

anon’s central bank tried to re-
assure jittery markets after a
week of turmoil over the resig-
nation of the country’s prime
minister, saying the worst of
the crisis was over but policy
makers were prepared to in-
tervene if necessary.
Prime Minister Saad Hariri’s
announcement that he was
stepping down and a Saudi de-
cision to order its citizens out
of the country have thrust Leb-
anon to the forefront of a re-
Beirut and Margherita
Stancati in Riyadh
nese paramilitary group Hez-
bollah has accused the king-
dom of warmongering. And
European leaders are sound-
ing the alarm about Leba-
non’s territorial integrity.
But the Lebanese are
treating the soaring tensions
with Saudi Arabia as just an-
other bump in the country’s
turbulent history.

gional struggle between Saudi
Arabia and Iran, pushing yields
on Lebanese government bonds
higher and increasing the cost
of buying insurance against a
possible default. Both are signs
that investors regarded Leba-
non as a higher risk.
In an interview, Bank of
Lebanon Governor Riad
Salameh said he expects yields
to fall back over coming days
and that the country’s banks
haven’t reported an unusual
outflow of funds.
Mr. Hariri said Sunday he
would return to Beirut from
Riyadh within days, one of a
number of recent develop-
ments that Mr. Salameh said
had helped cool the crisis.
Meetings between political
parties within Lebanon have
“helped to stabilize the unity
in the country,” he said.
The price of Lebanon’s five-
year dollar-denominated bonds
has fallen by 7% in the past
week, while the cost of insuring
its debt has risen to its highest
level this year amid concerns
about default.
Mr. Salameh said he be-
lieved those moves have gone
too far, and “a correction
should be in place through the
natural forces of the market.”
But he didn’t rule out action by
the central bank to nudge the
market in the desired direction.
“We have handed over our
fate to God a long time ago,
so we do not care about
these developments,” said
Walaa Hammiyeh, a 20-year-
old college student who was
sitting in a garden in down-
town Beirut on Monday.
Having endured a civil
war from 1975 until 1990,
and a brief but deadly con-
flict between Hezbollah and
Israel in 2006, turbulence is
a familiar state of affairs in
Lebanon. The country didn’t
have a government for 29
months, until about a year
ago. Meanwhile, the Syrian
conflict next door has left
Lebanon with more than one
million refugees.
“We have a blessing that
we are able to accommodate
all situations,” said Leba-
non’s Economy Minister
Raed Khoury.
Lebanon’s current chal-
lenges stem from being
caught in the middle of a ri-
valry between two regional
powers: Saudi Arabia and
Iran, an important backer of
Shiite Muslim Hezbollah.
Saad Hariri, the leader of
Lebanon’s main Sunni Mus-
lim political bloc, abruptly
stepped down from the posi-
tion of prime minister on
Nov. 4, citing the negative
role of Hezbollah and Iran in
A Lebanese artist painted a portrait of Prime Minister Saad Hariri, who resigned this month, during a marathon in Beirut on Sunday.
Coalition to Reopen
Yemen’s Airports
And Sea Facilities
Saudi Arabia said the coali-
tion fighting Shiite rebels in Ye-
men will begin reopening air-
ports and seaports in the Arab
world’s poorest country, days af-
ter closing them over a rebel
ballistic-missile attack on the
Saudi capital, Riyadh.
the region. That triggered a
new political crisis in a
country already strained by
sectarian tensions.
The U.S. and its European
allies have appealed against
outside interference in Leba-
non’s internal affairs.
The European Union’s for-
eign-policy chief, Federica
Mogherini, said the bloc’s
head of delegation in Riyadh
met with Mr. Hariri on Mon-
day for the second time in
four days and said she would
JAMAL SAIDI/REUTERS
Mr. Hariri, in his Sunday
Monday’s announcement by” Yemen’s internationally rec- interview, said he “will not
from the Saudi mission at the ognized government, which the allow a regional war in Leba-
United Nations came after the Saudi-led coalition backs, the non.” The country’s Christian
coalition fighting Yemen’s mission’s statement said. Those president, Michel Aoun, an
Houthi rebels and their allies ports are in Aden, Mocha and ally of Hezbollah, on Monday
faced widespread international Mukalla. said he looked forward to Mr.
criticism over the closure, with For ports in rebel-held or Hariri’s return to Lebanon.
the U.N. and aid groups saying disputed territories, such as In Lebanon, many also
it could bring millions of people Hodeida, the mission said it play down the possibility of
closer to “starvation and death.” had asked the U.N. to send a a confrontation with Saudi
“The first step in this pro- team of experts to discuss Arabia. “They are practicing
cess will be taken within 24 ways to make sure weapons psychological warfare on us.
hours and involves reopening can’t be smuggled in. That is the only thing that
all the ports in areas controlled —Associated Press they are doing,” said a Leba-
nese security officer.
Tens of thousands of peo-
meet with Lebanon’s foreign bloc, forced him to quit. Peo- ple turned out on Sunday to
minister on Tuesday. “We ex- ple familiar with the matter run in and watch the Beirut
pect no external interference said Saudi officials pressured marathon. After the event,
in this national agenda and the premier to step down people danced and sang as a
we believe it is essential to over his refusal to take a DJ pumped out pop tunes.
avoid importing into Leba- more hard-line stance against “What is happening is
non regional conflicts, re- Hezbollah, which both Saudi worrying, but people forget
gional dynamics, regional Arabia and the U.S. consider how used to this we have be-
tensions that have to stay a terrorist organization. come,” a man who provided
out of the country,” she said. In a live interview he gave only his first name, Ahmad,
Mr. Hariri announced his on Sunday night to Future said as he watched his wife
resignation from Riyadh, TV, a television channel and daughter dance nearby.
arousing suspicions that linked to his political party, —Laurence Norman, Summer
Saudi Arabia, the chief pa- Mr. Hariri said he would re- Said and Raja Abdulrahim
tron of Mr. Hariri’s political turn to Lebanon within days. contributed to this article.

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A12 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

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THE WALL STREET JOURNAL. NY Tuesday, November 14, 2017 | A13

WORLD NEWS

Pressure Rises on Poland

To Stem Nationalist Tide
BY WIKTOR SZARY
Poland’s ruling party faced
growing criticism over its re-
sponse to a weekend rally or-
tional criticism but avoided an
outright denunciation of the
march and the nationalist sen-
timent shared by much of the
base that has kept it in power.
strongly condemned “views
springing from racist, anti-Se-
mitic or xenophobic convic-
tions,” but defended the march
as an event attended by “thou-

DONAT BRYKCZYNSKI/BE&W/ZUMA PRESS

ganized by nationalist groups,
as opposition lawmakers and
others accused it of largely
turning a blind eye to a rising
tide of racism and xenophobia.
Israel on Monday called for
Polish authorities to “act
against the organizers” of the
march, in which some carried
banners that read “White Eu-
rope,” “Europe Will Be White”
and “Clean Blood.” Opposition
lawmakers called the event a
disgrace.
Some 60,000 people showed
up for the rally, many of whom
said they were only there to
celebrate the country’s 99th
anniversary of independence.
Many government officials
have responded to interna-
The Law and Justice Party
swept into office in 2015, de-
crying what it described as
corrupt postcommunist elites
and promising a fairer division
of spoils from the country’s
economic transformation. It
has opposed immigration from
Muslim countries and chafed
against European Union rules—
particularly on refugee policy.
Late Monday, Polish Presi-
dent Andrzej Duda, a former
member of the party who has
recently butted heads with it,
said there was no place in the
country for anti-Semitism and
“sick nationalism,” some of
the strongest words of con-
demnation.
Earlier, the foreign ministry
sands of people who wanted to
peacefully manifest their pa-
triotic feelings.”
Poland’s criminal code bans
promoting racist political
movements or ideas. Patryk
Jaki, a deputy justice minister,
called the banners shameful
and said there should be an in-
vestigation. But he added that
he “wouldn’t want the few Some 60,000 people marched in Warsaw to commemorate Poland’s Independence Day on Saturday.
banners to eclipse the idea of
the whole march.” sary of Poland regaining its in- just before the Holocaust. The party chairman Jaroslaw Kac-
A spokesman for the prose- dependence in 1918. It has second group, All Polish Youth, zynski, were “political fathers”
cutors’ office in Warsaw said grown increasingly popular. is also named after an anti- to the Saturday events.
police were investigating and One of the organizers, the Jewish interwar movement. European Commission Vice
were expected to pass on rele- National Radical Camp, pres- Grzegorz Schetyna, head of President Frans Timmermans is
vant evidence. ents itself as the heir to a Poland’s largest opposition, due to talk about the situation
The march, which has taken 1930s fascist movement of the center-right Civic Platform in Poland in a debate with the
place annually since 2010, same name, which worked to party, said ruling-party offi- European Parliament in Stras-
commemorates the anniver- rid Poland of Jews in the years cials, including the powerful bourg, France, on Wednesday.

FROM PAGE ONE

GE nery said GE could choose to

Continued from Page One
long-term plan means the
shares will be “dead money” in
the interim.
“If that is all you were going
to say, why did we have to wait
spin off assets or form joint
ventures instead.
The company set new finan-
In addition to shedding its
century-old transportation and
lighting businesses, Mr. Flan-
nery said the company would
cial targets for 2018 that were look to sell its stake in Baker
well below its previous goals. It Hughes, an oil-field-services
now expects adjusted earnings provider. GE owns about two-
per share of $1 to $1.07. For thirds of the company, which
years, GE had promised inves- has a market value of about
tors it would deliver $2 a share $40 billion. Shares of Baker
ALWYN SCOTT/REUTERS
of the biggest dividend payers
in the U.S., but it has struggled
to generate profits and cash
flow from its industrial opera-
tions in recent years to cover
the payout.
“We understand this is an
extremely painful action for
our shareholders, our owners,”
Mr. Flannery said. “It’s not a
growing to a certain level that
we just didn’t see,” he said.
Former CEO Jeff Immelt re-
ferred to cutting the dividend
as the worst day of his tenure.
Mr. Immelt revamped the
company over his 16 years, in-
cluding selling media, plastics,
appliances and most of finan-
cial services. He also made

from July until November?”
she said.
Mr. Flannery said he wasn’t
surprised by Monday’s sharp
selloff. “We announced a major
cut in our dividend and a major
cut in our guidance in 2018,”
he said after the meeting. “We
had disappointing news to-
day—no sugarcoating that.”
It may be a challenge for Mr.
Flannery to fetch top prices for
some of the businesses he
identified as noncore, since
some of them are in cyclical in-
dustries that are under pres-
sure. GE also has owned some
of the businesses for decades,
meaning it could face a big tax
hit on a straight sale. Mr. Flan-
in 2018 earnings. The company
changed CEOs earlier this year
as it began to struggle to reach
that target.
Mr. Flannery compared his
first 100 days as CEO to his
previous role running GE’s
health-care division. There was
pressure to sell that unit when
he arrived as CEO in 2014, but
he found a way to fix the unit’s
problems while still keeping
open the option to unload it.
The CEO, who has been with
the company for three decades,
said he is building a leadership
team of “fresh eyes and people
with institutional memory.”
Since he took over he has made
several management changes.
GE Chief John Flannery said
conditions will be difficult.
He appointed a new finance
chief and head of GE Power,
and two GE veterans, the head
of marketing and the top inter-
national executive, recently an-
nounced their departures. On
Monday, Mr. Flannery said he
is revamping compensation for
senior executives, lowering the
cash portion and giving 50% of
their pay in equity.
Hughes fell 3.2% on Monday.
GE also unveiled a restruc-
turing of its board of directors,
saying it would reduce its
membership to 12 people, in-
cluding three new members.
GE currently has 18 directors,
including Mr. Flannery and Ed
Garden, a co-founder of activist
Trian Fund Management,
which is a large GE investor.
The new quarterly dividend
will be 12 cents a share, down
from 24 cents a share. GE
would reduce the payment
from $8.4 billion to $4.2 bil-
lion, or a dividend yield of
about 2.5% based on Monday’s
close.
The industrial giant is one
decision we took lightly.”
The company, one of the
original members of the Dow
Jones Industrial Average and
one of the most widely held
U.S. stocks, has paid a dividend
since 1899. GE last cut its divi-
dend in 2009, when it reduced
the payout to 10 cents a share
from 31 cents.
When he was named CEO in
June, Mr. Flannery said the
dividend was safe, but he re-
cently warned that his thinking
had evolved during his portfo-
lio review. On Monday he said
the company’s cash flow pro-
jections have changed dramati-
cally. “Fundamentally that divi-
dend was predicated on us
some ill-timed deals in the oil
and power markets. While the
company changed substantially,
it didn’t increase cash flow.
Earlier this year, under pres-
sure from Trian, Mr. Immelt
pledged to cut annual spending
by $2 billion. After lowering fi-
nancial targets last month, Mr.
Flannery pledged to cut an ad-
ditional $1 billion in spending,
though he gave few new details
Monday on his cost-cutting
plans. He did promise to cut
$400 million from GE’s digital
efforts, which had been a pri-
ority during Mr. Immelt’s ten-
ure.
—Cara Lombardo 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
A14 | Tuesday, November 14, 2017
BIBLE
Continued from Page One
gled into the U.S. Most of the
relics were seized by federal
authorities, and Iraq has since
petitioned the Justice Depart-
ment to return items that Iraqi
officials believe were stolen
from their country.
Archaeologists and biblical
scholars now say there are
questions about the origins
and authenticity of the rest of
the Green collection. That has
scared away some researchers
from the collection and the Bi-
ble museum over concerns
about working with possibly
looted antiquities. It has also
cast a shadow over the Nov. 17
opening of the museum the
Green family built, in part to
house its collection.
“The Greens are good peo-
ple, and they wanted to find
important artifacts to study,
but the situation may end up
hurting some of the scholars
and students they wanted to
help,” said Josephine Dru. She
was curator of the collection’s
papyri for more than three
years until she left last fall, in
part, over the museum’s han-
dling of manuscripts with no
clear ownership records.
Mr. Green and his family
have amassed a $205 million
collection of roughly 40,000
artifacts over the past eight
years, spanning Egyptian
mummy masks from the time
of Moses to sacred scrolls in-
scribed by rabbis and monks
to a copy of the Bible once
owned by Elvis Presley.
The collection was planned
for inclusion in the 430,000
square-foot Museum of the Bi-
ble. That’s as big as the Smith-
sonian’s new National Museum
of African American History
and Culture.
Yet for the past three years,
staff members at the museum
have been sifting and rejecting
potential donations from the
Green collection that carried
lingering questions of prove-
nance, its director David Tro-
bisch said. Most of the Greens’
antiquities remain with Hobby
Lobby, the family owned arts-
and-crafts chain.
Mr. Green said his 2010
purchase in Dubai was the
misstep of an amateur, an un-
fortunate mix of enthusiasm
and inexperience. Boxes of the
items shipped to the Hobby
Archaeologists and
scholars say there are
questions about the
Green collection.
Lobby headquarters in Okla-
homa were mislabeled as “ce-
ramic tiles,” and several boxes
slipped undetected past U.S.
customs inspectors before the
scheme was uncovered, ac-
cording to authorities.
“We made mistakes, but
we’ve learned from them,“
said Mr. Green, 54 years old.
Mr. Green said he had no idea
the deal would imperil the
reputation of the museum he
long championed.
Among academicians, the
matter remains unresolved. Bi-
ble scholars Candida Moss at
the University of Birmingham
and Joel Baden of Yale have
just published a book, “Bible
Nation: The United States of
Hobby Lobby,” that said Mr.
Green acquired objects with a
“naiveté that begins to look
willful.”
Roberta Mazza, a papyrolo-
gist at the University of Man-
DANCE
Continued from Page One
chemistry and the social sci-
ences and for the overall win-
ner.
This year’s 53 entrants, hail-
ing from universities in Brazil,
the U.S., France and elsewhere,
submitted performances about
disrupting the rewarding prop-
erties of nicotine, set in part to
“Purple Rain,” as well as a
Bhangra-style dance using a re-
mix of the “Game of Thrones”
soundtrack meant to explain
how a mutated tumor suppres-
sor affects metabolizing nutri-
ents. Past videos have had
soundtracks ranging from
Tchaikovsky to Notorious B.I.G.,
and dancers playing characters
with titles like “photon,” “sper-
matocyte” and “Polio virus.”
Nancy Scherich, the Ph.D.
candidate at the University of
California, Santa Barbara, who
engineered the aerial perfor-
mance, recruited friends from
chester, has criticized Mr.
Green’s collecting methods in
lectures at scholarly confer-
ences on art crime and biblical
literature. She said she noticed
an ancient Coptic fragment
from the New Testament Book
of Galatians, displayed at an
exhibit of the Green collection
three years ago, which she be-
lieved she had earlier seen for
sale on eBay. It offered no
ownership history, she said.
“I don’t care if a billionaire
wants to open a museum so
long as it’s ethical,” Ms. Mazza
said.
The Bible museum’s direc-
tor, Mr. Trobisch, said the
Green collection’s records in-
dicate the family didn’t buy
the Coptic fragment on eBay.
Still, he said, the museum has
no plans to exhibit it “until we
can research it thoroughly.”
Mr. Trobisch recently ad-
vised Mr. Green to repatriate
the fragment to Egypt, which
Mr. Green said he would con-
sider.
When the museum opens,
its permanent collection will
consist of just 2,840 vetted
objects, Mr. Trobisch said, a
fraction of what the Greens
own. The museum has had to
distance itself from contro-
versy over the collection, he
said: “We feel like we’re pay-
ing for the sins of the father.”
Jana Mathews, a medieval-
ist at Rollins College, said
scholars insist on knowing the
provenance of objects because
demands for proper paper-
work discourages looting.
The museum has shifted its
focus from displays of ancient
art and artifacts to more inter-
active, theme-park experi-
ences. Rooms will give a first-
hand view of life in biblical
times, including a life-size vil-
lage in first-century Galilee.
Elsewhere, walk-through ex-
hibits will re-enact famous Bi-
ble stories—like Moses parting
the Red Sea. An aerial-simula-
tion ride will zoom passengers
around Washington, D.C., to
view scriptures inscribed on
buildings.
Museum of the Bible Vice
Chairman Robert Cooley said
the board learned about the
government’s six-year smug-
gling investigation only when
Hobby Lobby was close to
signing the settlement. He
said the museum board felt
“shortchanged on the facts”
and has since hired its own
lawyer to help the board
toughen its provenance proto-
col and keep close watch on
acquisitions.
Mr. Green said he didn’t tell
the board sooner because he
considered it a Hobby Lobby
matter.
Last month, the board also
hired its own cultural-heritage
lawyer, Thomas Kline, to vet
the pieces remaining in the
museum’s collection.
“Before this, we weren’t
collectors or museum-goers,”
Mr. Green said. “We didn’t
know we needed to ask for all
this paperwork.”
In the beginning
The grandson of a Pente-
costal preacher, Mr. Green
grew up in the small town of
Bethany, Okla. His father, Da-
vid, transformed a picture-
frame business into a chain of
more than 750 retail stores.
The elder Mr. Green remains
chief executive of the family
business, which last year had
$4.4 billion in sales.
Steve Green married young
and joined the family busi-
ness. He stepped onto the
public stage after the com-
pany won a Supreme Court
case three years ago to ex-
empt it from a federal man-
her dance troupe to help. Before
the project, Ms. Scherich said
the other dancers never asked
much about what she studied.
“It was, ‘Oh, she does math.
That’s weird. Let’s dance.’” Once
they began discussing the ratio-
nale behind the choreography,
she said, “They were interested
all of a sudden. To me, that was
a huge success.”
Last year’s contest winner
was Jacob Brubert, who spent
years as a Ph.D. student at the
University of Cambridge trying
to make a better prosthetic
heart valve. While the dancing
cow and pig, stand-ins for an
animal-based artificial valve,
embrace the hula-hooping
woman (representing blood),
another blood cell gets shoved
into a pool by a tap-dancing duo
representing a mechanical valve.
“Every scene was a couple of
years of thinking,” Dr. Brubert
said. “It just seemed like the
coolest, craziest way to turn a
rather large book that will prob-
ably only be read by a handful
of people into something that
IN DEPTH
Steve Green, Hobby Lobby president and chairman of the Museum of the Bible in Washington, D.C.
Centers of Sacred Works
Religious museums are rare, but these institutions are known for exploring issues—and objects—of faith.
Museum of the Bible
Washington, D.C.
Sweeping the Bible's history, this museum has
3,000 retired Torahs and a 3rd-century copy of
Psalms 112-114.
Objects in collection:
2,840
Jewish Museum
New York
It owns a section of a 16th-century synagogue
wall and shows the work of such modern
painters as Amedeo Modigliani.
Objects in collection:
30,000
Source: the museums; Photos: Museum of the Bible; Museum of Islamic Art; Zuma Press (Jewish Museum); Reuters (Angkor)
date to pay for certain contra-
ceptives for its workers. The
family had argued the require-
ment conflicted with its Chris-
tian faith.
For Mr. Green, who remains
influential in evangelical cir-
cles, the dream of building a
Bible museum helped inspire
him to collect antiquities. He
said he knew from the start
that he would need expert
help.
In 2009, Mr. Green started
working with Scott Carroll,
who had been the adviser for
Robert Van Kampen, a Chicago
investor who had the largest
private Bible collection in the
U.S. at the time. That collec-
tion became part of a religious
theme park in Orlando, Fla.,
called the Holy Land Experi-
ence.
Mr. Carroll, who has a doc-
torate in history from Ohio’s
Miami University, was contro-
Nancy Scherich, a mathematician, dances out her Ph.D. thesis.
has now been seen by an awful
lot of people.”
His performance has gar-
nered more than 80,000 views
on YouTube since last fall.
This year’s winner, Ms.
Scherich, spent about two
months mapping out her perfor-
mance, sketching storyboards
THE WALL STREET JOURNAL.
lem’s biggest antiquities
dealers, Mr. Green said, mostly
families who had run shops
for several generations.
After the Dubai trip in 2010,
Mr. Carroll said he twice told
Mr. Green to end the purchase
negotiations because of “is-
sues of provenance” with the
cuneiform tablets. He said Mr.
Green told him, “My family is
not averse to risk.” Mr. Green
didn’t dispute Mr. Carroll’s ac-
count.
Israeli authorities later said
the dealers in Dubai churned
out fake invoices and con-
cocted histories for the Iraqi
antiquities they sold to Mr.
Green. Israel has since charged
five dealers in Jerusalem with
tax fraud for their part in or-
chestrating the deal. Emails to
the men seeking comment
weren’t returned.
STEPHEN VOSS FOR THE WALL STREET JOURNAL
In summer 2010, a Hobby
Lobby lawyer invited a cul-
tural-heritage law expert from
the DePaul University College
of Law, Patty Gerstenblith, to
give a presentation to Mr.
Green, Mr. Carroll and others
on the best practices for col-
lecting antiquities. Mr. Sum-
mers, the museum’s presi-
dent, said later it was
intended to help Messrs.
Green and Carroll steer clear
of legal trouble.
Ms. Gerstenblith said a
staff member told her Mr.
Green was considering buy-
ing pieces from Iraq. She
emailed a report to Hobby
Lobby that summarized her
presentation.
“An estimated 200,000 to
500,000 objects have been
looted from archaeological
Museum of Islamic Art sites in Iraq since the early
Built in 2017 Qatar Built in 2008 1990s; particularly popular on
I.M. Pei designed this museum, which contains the market and likely to have
800 Quran manuscripts and a 15th-century been looted are cylinder seals,
‘chessboard garden’ carpet. cuneiform tablets,” said the
report, which was in court
documents. “Any object
brought into the U.S. with Iraq
declared as country of origin
has a high chance of being de-
Size: Objects in collection: Size: tained by U.S. Customs.”
430,000 square feet 800 382,118 square feet Hobby Lobby lawyers later
told federal investigators they
never shared Ms. Gersten-
blith’s letter with Mr. Green,
court papers said.
Dead-end deal
Angkor National Museum On Dec. 8, 2010, Mr. Green,
Founded in 1904 Cambodia Built in 2007 through Hobby Lobby, agreed
This museum chronicles the golden era of the to buy the artifacts he had
Khmer Empire, including a gallery featuring seen in Dubai. One of the deal-
1,000 Buddhas. ers suggested shipping the
pieces via FedEx. Mr. Green’s
executive assistant agreed and
wrote on Dec. 23 “as long as
you keep the value of each
package under $2,000, they
will not have to forward it to
Size: Objects in collection: Size: our broker to clear it through
94,000 square feet 1,700 161,458 square feet Customs,” court documents
said.
THE WALL STREET JOURNAL. Mr. Carroll said he didn’t
advise Mr. Green’s assistant on
versial in the field of antiqui- lection, a breathtaking pace the matter and that he was
ties for using a soapy solution for antiquities. shocked the Greens proceeded
to break apart the papyrus Mr. Carroll said his job was with the deal after Ms. Ger-
layers that form mummy to flag potential purchases. stenblith’s presentation.
masks. In a 2012 video, filmed The Green family decided at Three days later, the dealer
by a research arm of the Green closed-door meetings whether falsified the labels and
collection, Mr. Carroll washes to buy. Often, Mr. Carroll said, shipped eight packages to
a kohl-eyed, papery mask in a he “had no idea an acquisition Hobby Lobby, each valued
sink, then peels it apart look- had been made until the items from $250 to $300. The first
ing for scraps of legible writ- showed up” at company head- three sailed through customs
ing. “Archaeology is a destruc- quarters. Mr. Green didn’t dis- in Memphis, Tenn.; the next
tive science,” he tells pute the description. five were stopped and trig-
onlookers in a later video. Cary Summers, the Bible gered the government investi-
Holger Strutwolf, director museum president, said Mr. gation.
of the Institute for New Testa- Carroll was encouraged to By 2012, Mr. Summers said,
ment Textual Research at the seek out large private collec- Mr. Green decided to fire Mr.
Bible Museum in Münster, tions, which included a 10,000- Carroll, who left behind scant
Germany, said, “The way Scott piece lot of biblical Americana notes on the provenance of
Carroll treats mummy carton- in Maryland. Museums typi- thousands of purchases, ac-
nage comes close to willful cally cherry-pick from private cording to two curators as-
damage.” Mr. Carroll said holdings rather than buy in signed to review them.
other scholars have disman- bulk. Mr. Carroll said the Greens
tled mummy masks. Mr. Green accompanied Mr. could have required the deal-
With Mr. Carroll on salary, Carroll on a few buying trips ers to submit relics’ owner-
the Green family went on a to Jerusalem and Europe be- ship history. “Admittedly,” he
buying spree, adding roughly tween 2009 and 2011. The sell- said, “it was not collected by
18 objects a day to their col- ers included some of Jerusa- me.”
self well,” she said. “How could
you make a physical dance video
about things that aren’t physi-
cal?”
faces.” She said some other per-
formances she’s seen have su-
perfluous rhythmic features and
unnecessarily complex plotlines.
After her boyfriend urged her “I think they’re distracting,” she
to tap into her aerial dance said. “Focus, people.”
skills, she devised a perfor- Dr. Davis’s work looks at
mance in which she and her fel- closed-path loops, in which a
low aerial dancers hung upside journey along a line starts and
down creating braided loops, ends at the same place—like
then entered a techno-club style along the equator—and what
world representing matrices. happens when the path is ad-
Her character, known as a ker- justed.
nel, ultimately saves herself Shot from a camera looking
from annihilation. down from a ceiling, her video
“The more esoteric the sub- shows a dancer leaping across
DEAN MORALES
ject, the better the dance,” said two adjoining pentagons. An
John Bohannon, a contributor to arm disappears across the yel-
Science who created the contest low-painted edge of one penta-
a decade ago when he was gon and reappears at the yellow
working on his own Ph.D. in mo- edge of the other. Then a leg.
lecular biology and wanted to Then the rest of the dancer, rep-
and choreographing a dance in- jazz up a party for colleagues. resenting the connectivity
spired by her thesis, titled Some scientists take a across planes.
“Braids: Discrete Representa- more literal approach. “It’s art, in addition to being
tions of the Braid Groups.” Diana Davis, now a visiting math,” Dr. Davis said of the fin-
She said she had known of assistant professor of mathe- ished product. She lists the pro-
the contest for years but strug- matics at Swarthmore College, duction—which won the physics
gled to imagine her own work in produced and danced in a 2012 category—on her résumé and
terms of dance. “I never really video about her thesis, “Cutting shows it regularly during aca-
thought that math could lend it- sequences on translation sur- demic speaking engagements.
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 Tuesday, November 14, 2017 | A14A

GREATER NEW YORK

Lawsuit Will Test Gun Protections GOP Tax
Proposals
Sandy Hook families having to defend themselves
against claims exactly like those
challenge federal
shield for gun makers
made here.” The federal law al-
lows some legal claims to move
forward. One such exemption,
Get Boost
against liability claims
BY JOSEPH DE AVILA
which the families are pursuing,
is a claim of “negligent entrust-
ment” in which a seller of prod-
From D.C.
Nearly five years after a
shooter killed 20 children and
six adults at Sandy Hook Ele-
uct knows, or should know, that
the buyer likely would misuse
that product.
The “defendants ignored
Notables
mentary School, a lawsuit myriad risks associated with BY KATE KING
brought against the gun indus- the mechanical power of the
try by families of those killed weapon, the porous environ- BERKELEY, N.J.—New Jer-
is slated to be heard Tuesday ment into which it was sold, sey Rep. Tom MacArthur
in Connecticut’s highest court. and mounting evidence that the brought in the big guns on
The case will be a test on AR-15 had become the weapon Monday as he sought to sell
the federal protections that of choice for lone shooters the Republicans’ proposed tax

SPENCER PLATT/GETTY IMAGES

firearms manufacturers have looking to inflict maximum ca- overhaul to constituents in one
against liability claims. sualties,” attorneys for the fam- of the country’s most highly
In their 2014 lawsuit, attor- ilies said in court papers. taxed states.
neys for the victims’ families The families also alleged Treasury Secretary Steven
said civilians shouldn’t be al- the gun maker violated the Mnuchin and Ivanka Trump,
lowed to own high-powered ri- Connecticut Unfair Trade Prac- the president’s daughter and
fles. The defendants have tices Act, a consumer-protec- adviser, touted the two propos-
maintained they are exempt tion law. The lower court ruled als under consideration in Con-
from legal claims holding A vigil was held last month in Newtown, Conn., calling for action against gun violence. that the families lacked the gress, saying they are long
them responsible for crimes commercial or consumer rela- overdue measures that would
committed with their products to prove that the gun manu- The other defendants named the 2005 federal law. Courts tionship with the gun company simplify the tax code and stim-
under a 2005 federal law facturer could have predicted in the lawsuit are Camfour Inc., have allowed lawsuits against required to make such a claim. ulate economic growth.
called the Protection of Lawful misuse of the weapon. Now, a firearms distributor, and Riv- gun sellers who knowingly sell Connecticut’s Attorney Gen- The discussion came as Re-
Commerce in Arms Act. the Connecticut Supreme erview Sales Inc., the East their weapons to individuals eral’s office submitted an am- publicans in Washington, D.C.,
In the Newtown, Conn. Court will rule on whether the Windsor, Conn., gun shop that barred from purchasing them. icus brief supporting the fami- and Mr. MacArthur pushed for
shooting, 20-year-old Adam families’ claim can proceed. sold the Bushmaster rifle used But gun makers have been ex- lies’ consumer-protection votes this week on bills that
Lanza used a Bushmaster James Vogts, an attorney in the Sandy Hook attack. At- empted from most claims, ex- claim. they hope will mark the GOP’s
AR-15-style rifle manufactured for Remington, declined to torneys for the companies cept those involving allega- The National Rifle Associa- first significant legislative
by the Remington Arms Co. comment. Josh Koskoff, a law- didn’t immediately respond to tions of faulty products. tion, the National Shooting achievement under Republican
Connecticut Superior Court yer representing the nine fam- requests for comment. Attorneys for Remington said Sports Foundation and the President Donald Trump.
Judge Barbara Bellis dismissed ilies of victims and one survi- Legal claims against the in court papers that the federal Connecticut Citizens Defense Democrats and some Repub-
the Sandy Hook case in Octo- vor of the school shooting, gun industry have had little law intended “to protect firearm League have submitted briefs licans from highly taxed states
ber, saying the families failed wasn’t available to comment. success since the passage of manufacturers and sellers from in support of the defendants. such as New Jersey, New York
and California are opposed to
the GOP’s tax proposals, which

Menendez would eliminate or cap deduc-

tions for state and local taxes.
In New Jersey, GOP Reps.

Jury Split, Leonard Lance and Frank LoBi-

ondo have said they don’t sup-
port the legislation under con-

But Must sideration in the House, which

would cap the property-tax de-
duction at $10,000 and allow

Continue no deductions for state income

Working Treasury Secretary

Steven Mnuchin and
BY THOMAS MACMILLAN
Ivanka Trump visited
Just three hours after they N.J. to promote bills.
restarted their deliberations
Monday, jurors in the corrup-
tion trial of U.S. Sen. Bob Me-
nendez announced they were taxes. The Senate’s bill elimi-
deadlocked. nates the deduction entirely.
Judge William Walls sent Mr. MacArthur, a Republican
the jury home early from fed- who represents southern New
SETH WENIG/ASSOCIATED PRESS

eral court in Newark and told Jersey’s Ocean and Burlington

them to return Tuesday to con- counties, said he won’t support
tinue trying for a verdict. The the tax bill without a property-
panel’s seven women and five tax deduction, and believes the
men are charged with deciding $10,000 deduction would cover
the fate of Mr. Menendez, who “the vast majority of people in
faces 18 counts, including brib- this state.” He said the effect of
ery, fraud, and conspiracy. taking away deductions for
Prosecutors say the two- Sen. Bob Menendez left a federal courthouse in Newark on Monday. Jurors in his corruption trial said they are deadlocked. state income and sales taxes
term Democratic senator was would be offset by lower rates
part of a bribery arrangement sentence. seems to me we should take method,” Judge Walls replied, was excused to go on a cruise overall and the elimination of
involving Florida eye doctor The jury began meeting at 11 them at their word.” overruling the objection. for a family wedding, said she the alternative minimum tax.
Salomon Melgen, a co-defen- a.m. Monday. Although it was Judge Walls disagreed. He “Clearly there are jurors would have voted to acquit Mr. Federal deductions for state
dant in the trial. For years, the the fifth day of deliberations, said he would ask them to who believe in my innocence,” Menendez. Outside the court- and local taxes make up 8.7% of
doctor provided the senator Judge Walls ordered the panel keep deliberating. “Go home Mr. Menendez said outside the house Thursday, she said most adjusted gross income for New
with private flights and luxury to start fresh because one juror and have a good meal and a courthouse. “I believe no juror jurors think the defendants Jersey filers, according to an
vacations in exchange for po- was replaced last week. good sleep, then come should be coerced.” aren’t guilty, including three ju- analysis by the Tax Foundation.
litical favors, they allege. “We cannot reach a unani- back tomorrow to continue Deliberations were de- rors who are absolutely con- Mr. Mnuchin, a former resi-
Their lawyers say the gov- mous decision on any of the your deliberation,” he said. layed Monday while the attor- vinced. Another group is equally dent of California and New
ernment is criminalizing a long- charges,” the jury said in a note After the jury left the court- neys argued about whether firm on the other side, she said. York, said he understands the
standing and genuine friend- to the judge three hours later. room, Mr. Lowell objected. “It the jury may have been af- On Monday, after the judge plight of residents in highly
ship. If convicted, Mr. “Is there any additional guid- feels a little like you’re telling fected by press coverage of and attorneys met individually taxed states. The Treasury has
Menendez could serve prison ance? What do we do now?” them that you need to reach a the departure of juror Evelyn with four jurors and three al- calculated that the proposed
time. The most serious charge Defense attorney Abbe verdict,” he said. Arroyo-Maultsby last week. ternates, the judge decided that tax overhaul would deliver tax
carries a maximum 20-year Lowell called for a mistrial. “It “This is a tried and true Ms. Arroyo-Maultsby, who deliberations would proceed. cuts for most families of four
and people earning up to
$300,000 in New York and New

Student ‘Gets It Done’ Jersey, he said. “For people

who make $1 million in high-
tax states, there will be a tax

With Her Own Book increase,” he said.

Mr. Mnuchin and Ms. Trump
discussed the tax plans in front
BY ZOLAN KANNO-YOUNGS despite their age. of a largely friendly crowd of
“I’ve always wanted to be an more than 100 in Berkeley
Marley Dias drew interna- author,” Marley said in a recent Township, a shorefront com-
tional attention last year when interview. “I don’t really like my munity that was battered by
she decided to do something creative writing and I didn’t superstorm Sandy. More than
about what she felt was a lack want to write a memoir because half of the town’s residents are
of diversity in literature at her I’m like 12. Why write a memoir senior citizens and tax deduc-
school. when you’re 12?” tions are important, Republican
Her blog post calling for One chapter, “The Activist’s Mayor Carmen Amato said. He
donations of books featuring Toolbox,” is a blueprint for supports the House’s proposed
black girls as main characters young people seeking to make tax overhaul.
QUEEN LILIUOKALANI TRUST

turned into a viral social me- social change. Another, titled Mr. MacArthur said that if a
dia campaign dubbed “Herstory,” touches on her book deduction for medical expenses
#1000blackgirlbooks. Within a drive, which has now collected also is preserved, as the Senate
month, people from around more than 10,000 books. bill proposes, most New Jersey
the world sent Marley more “The only books we’d read residents should benefit. “I
than 4,000 books. with black characters at school have gone through every tax
Now 12 years old, the were slave narratives set in the bracket from the very poorest
eighth-grader from West Or- eighteenth and nineteenth cen- Marley Dias, in Honolulu in August, has traveled the U.S. talking about the need for diversity in books. to the very wealthiest,” he said.
ange, N.J., has written the turies,” Marley writes. “Which, “I have yet to find anybody
book she felt was missing from while extremely important his- carries a significant amount of release, Marley has traveled ued to meet children who feel whose taxes don’t go down.”
public schools: a story about a torically, can get depressing. weight,” Mr. Hush said. the country emphasizing the they can’t relate to what they Rep. Josh Gottheimer, a
black girl by a black girl. The range of black girl experi- Andrea Pinkney, executive importance of diverse charac- are studying in school. Democrat who represents parts
“Marley Dias Gets It Done: ences is so much broader, and editor of the trade publishing ters in school books. She has “I feel like when I’m older— of northern New Jersey’s
And So Can You!” is being pub- deeper, and richer than that!” division of Scholastic, said she met former first lady Michelle like older, older—I guess I’ll feel wealthy Bergen County, said
lished by Scholastic Inc. and will Lionel Hush, principal of hopes the book encourages Obama, ballet dancer Misty like, ‘Wow, when I was doing his constituents would see tax
be released Jan. 30. Marley said Marley’s current school, Roose- children to “galvanize their Copeland, singer Rihanna and that, that was a lot for a 12- hikes. “There’s no way to cut
she wanted to use her own ex- velt Middle School, said her strengths.” She declined to filmmaker Ava DuVernay. Mar- year-old to do,’ ” Marley said. these numbers that it’s not an
perience in activism to show campaign improved the school’s specify the value of Marley’s ley has almost 15,000 follow- “But now it’s part of my life. Not increase on New Jersey and a
anyone can make positive literature offerings. “Coming book deal. ers on Instagram. just being in the public eye but huge favor to other states at
changes in their communities from a student’s perspective, it In anticipation of the book’s Marley said she has contin- thinking about social change.” our expense.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A14B | Tuesday, November 14, 2017
GREATER NEW YORK
‘Meteor Shower’ Lights Up Broadway BY CHARLES PASSY
Call it a meteoric success,
Broadway-style.
“Meteor Shower,” the Steve
Martin play that stars Amy
Schumer, took in $1 million at
the box office last week, ac-
cording to the Broadway
League, the trade group that
tracks the theater industry.
That figure represented 104% of
ASSOCIATED PRESS
the show’s potential standard
gross. The extra sales came
from premium tickets, which
ran as high as $323 last week.
It was the first full eight-
Amy Schumer stars in ‘Meteor Shower,’ a play by Steve Martin. performance week for “Meteor
Christopher DeJesus, center, and Thad Maceira of Cano’s Car Wash clean a customer’s car at the intersection of Westchester and Forest avenues in the Bronx. Sam ‘Cano’ Pesante, below left, owns the
pop-up car wash operation. Below right, a New York Police Department officer asks Mr. Pesante if he will be available to detail his personal car after he finishes his patrol.
Pop-Up Car Wash Offers Vehicle
Owners Pit-Crew Style Detailing
Drive down Westchester Ave-
nue in the Bronx and you may
notice the cargo van parked next
to flags emblazoned with “Car
Wash” flapping in the wind. The
van hosts three men working
like a pit crew. One prepares
soaps and conditioners specific
to each customer’s request, the
second pre-washes with a pres-
sure washer while the third lath-
ers the surface close behind.
In 15 minutes or less they are
done with what owner Sam
“Cano” Pesante calls a mini de-
tailing service. He charges $25.
There are few other options
for a car wash in the Woodstock
neighborhood of south Bronx
A new
way,
a better
way
to buy a wedding suit.
ROBERTO COIN BOUTIQUE
Westfield World Trade Center
Oculus | Main Level C2
New York, NY | 212.287.1299
BLACK JADE COLLECTION | robertocoin.com
NY
Shower,” which is still in pre-
views. The comedy, which offi-
cially opens Nov. 29 and is
slated to run through Jan. 21,
looks to continue the box-of-
fice success in the weeks ahead
because it already has at least
$7 million in advance sales, ac-
cording to Joey Parnes, one of
the lead producers.
Show insiders and industry
observers say the sales speak
to the drawing power of Ms.
Schumer, the stand-up comic
and film and television veteran
who is making her Broadway
debut with the production.
Mr. Parnes noted the other
where Mr. Pesante has set up
his operation. Pop-up car washes
like this can be found across the
borough. Starting in December,
operators must obtain a car
wash license.
Mr. Pesante started his oper-
ation this summer after buying
a cargo van and outfitting it
with a 375-gallon water tank.
“Brick-and-mortar car washes
are less personal and the an-
cient machinery damages the
paint jobs of cars,” said Hector
Figueroa, who brought his Jeep
for a wash. “Curbside car
washes are more personal and
they don’t damage your car.”
—David ‘Dee’ Delgado
* * THE WALL STREET JOURNAL.
major names associated with
“Meteor,” including Mr. Martin
and the Tony Award-winning
director Jerry Zaks. The cast
also features Keegan-Michael
Key, who is best known for his
work with Jordan Peele on
“Key & Peele,” a show on the
Comedy Central network.
When all the elements are
factored into the production’s
equation, Mr. Parnes said, “the
whole is greater than the sum
of its parts. Every single name
on our creative team is one
form of entertainment royalty.”
“Meteor Shower,” which
chronicles two couples en-
GREATER NEW YORK WATCH
NEW YORK STATE
Economic Programs Mayor Seeks Ideas
Hearing Grows Tense On Internet Access
A legislative hearing on Gov.
Andrew Cuomo’s economic-de-
velopment programs has raised
tensions between his adminis-
tration and upstate legislators.
Mr. Cuomo, a Democrat, has
sought to revive the ailing up-
state economy through a num-
ber of tax-break programs and
public-spending initiatives, but
parts of western New York have
continued lagging in job growth.
On Monday, at an annual hear-
ing in Albany, Mr. Cuomo’s eco-
nomic-development czar, Howard
Zemsky, presented a rosier pic-
ture, saying the confluence of
economic initiatives is having a
“transformative impact” through-
out upstate and western counties.
State lawmakers are skepti-
cal. Assemblyman Ray Walter, a
Republican representing Erie
County, said Mr. Zemsky only of-
fered “platitudes,” and didn’t
convince him that there was a
connection between Mr. Cuomo’s
programs and economic im-
provements.
As Mr. Walter questioned Mr.
Zemsky, the Cuomo aide said
the Buffalo area Mr. Walter rep-
resents was struggling “for 40
frickin’ years” before Mr. Cuomo
stepped in. At another point Mr.
Zemsky spoke over Mr. Walter,
saying, “Blah, blah, blah.”
After the hearing, Mr. Walter
said, “For him to get hostile was
outrageous.”
—Mike Vilensky
meshed in what the show de-
scribes as a “marital free fall,”
was produced at a cost of $3.9
million, according to Mr.
Parnes. Insiders say it is on
track to recoup its investment.
A major celebrity’s involve-
ment with a show doesn’t
guarantee box-office success.
Consider Mr. Martin’s pre-
vious Broadway effort, the
2016 musical “Bright Star,”
which he created with the pop
singer-songwriter Edie Brick-
ell. The show closed after four
months into an open-ended
run, though it is now playing
on tour.
DAVID ‘DEE’ DELGADO FOR THE WALL STREET JOURNAL (3)
NEW YORK CITY
Mayor Bill de Blasio’s admin-
istration wants advice from
companies about how to expand
affordable high-speed internet
access citywide by 2025.
The city on Tuesday plans to
issue a request for information
to internet-service providers and
other stakeholders. The request
is short of a formal solicitation
for proposals for a build-out that
could challenge cable giant Char-
ter Communications Inc.’s market
dominance in New York City.
The request is meant to “max-
imize the benefits of competition,”
according to a draft reviewed by
The Wall Street Journal.
“One thing we know for sure
is that business as usual won’t
work, which is why we’re keep-
ing the door open to new ideas
that will help us achieve success
in this critical endeavor,” Miguel
Gamiño Jr., the city’s chief tech-
nology officer, said in an emailed
statement.
A spokesman for Charter
Communications, known to its
customers as Spectrum, said New
York City is “one of the most
competitive telecom and internet
markets in the country, with a
host of wireline, wireless and
other technologies offering ser-
vices to all customer segments.”
“Our products and services
provide the highest quality at
competitive prices,” said the
spokesman, John Bonomo.
—Mara Gay
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
TURNING POINTS | By Clare Ansberry
Cultivating a
Life of
Gratitude
The strangers who helped a woman’s family during
WWII gave her a clearer view on giving thanks
A SIMPLE “THANK YOU” isn’t
always enough.
Yolanda Avram Willis has spent
much of the past two decades
finding out as much as she could
about the families who risked their
lives to save her Jewish family
during the Nazi occupation of
Greece. She wanted to chronicle
their good deeds and give thanks—
and do so before it was too late.
“I’m 83,” she says. “I don’t
know how long I am going to be
around. I wanted to do this while I
have my mind.” Her mother and
aunts suffered from some forms of
dementia.
Ms. Willis recently completed a
book about her family’s experience,
“A Hidden Child in Greece: Rescue
in the Holocaust,” which she self-
published through Authorhouse.
The process helped her, too, giv-
ing her purpose and deepening her
appreciation, says her son, Martin.
“The act of writing can help flesh
out experiences and makes you un-
derstand things better,” he says.
Feeling gratitude starts with a
realization of what we have re-
ceived from others and what it
cost them, says Robert Emmons, a
psychologist and author at the
University of California, Davis,
who researches the effects of grat-
itude. It isn’t surprising then, he
says, that someone like Ms. Willis
“has overwhelming gratitude.”
Gratitude is good for us in many
ways. Studies have shown that it
strengthens our immune systems,
helps us sleep better, reduces
stress and depression and opens
the doors to more relationships.
But to reap those rewards, we
need to do more than feel grateful.
“The word ‘thanksgiving’ means
giving of thanks,” says Dr. Em-
mons. “It is an action word. Grati-
tude requires action.”
Ms. Willis’s family had fled to Crete and was in hiding there when German
troops began an airborne attack of the island on May 20, 1941.
TEA TURNS UP THE HEAT IN ITS FIGHT AGAINST COFFEE
BY SAABIRA CHAUDHURI
TEA, THE WORLD’S most popu-
lar hot beverage, has long strug-
gled with an image problem: Peo-
ple just aren’t willing to pay up for
a cup.
Now tea makers are launching
new drinks and marketing cam-
paigns to convince people to pay
as much for a cup of herbal tea as
they would for a caffe latte.
“Our mission is to create a
modern-day tea culture,” says
Charlotta Oldham, Starbucks
Corp.’s tea category manager for
Europe, the Middle East and Af-
rica. “I totally believe tea can be
as cool as coffee.”
By volume, tea remains the
dominant hot beverage of choice,
buoyed by drinkers in China, India
and the U.K. The world drank 1.7
trillion cups of tea last year, com-
fortably above the 984 billion cups
of coffee consumed, according to
LIFE&ARTS
Most people aren’t very good at
it. Only 52% of women and 44% of
men express gratitude on a regular
basis, according to a 2012 gratitude
survey of 2,000 people in the U.S.
funded by the John Templeton
Foundation, a philanthropic organi-
zation that supports academic re-
search. Those who are religious or
spiritual tend to be more grateful,
as are married couples, says Janice
Kaplan, author of “The Gratitude
Diaries,” who conducted the survey.
Younger people—18-to-24-year-
olds—express gratitude less often
than any other age group, and when
they do, it’s often for self-serving
reasons: in the hopes that people
will be nicer to them in return.
Family and freedom top the list
of things that those surveyed are
most grateful for, Ms. Kaplan says.
Jobs rank last, except among those
who earn $150,000 or more. Ap-
parently we don’t appreciate our
co-workers, or at least we don’t
tell them. Only 10% of the 2,000
people surveyed said they thanked
their colleagues. One reason: a per-
ception that expressing any grati-
tude could lead to co-workers tak-
Euromonitor. In the U.S., the num-
ber of cups of tea drunk climbed
6.5% between 2012 and 2016, while
tea sales grew 9.9%, meaning more
people are drinking pricier tea.
But the coffee industry rakes in
far more money, clocking a retail
value of $79.3 billion in 2016, com-
pared with $42.7 billion for tea.
“The coffee boys have done a
much better job in marketing their
category than the tea boys,” says
William Gorman, executive chair-
man of the U.K. Tea and Infusions
Association.
Over the past 50 years, the cof-
fee industry has boomed on the
back of a specialist coffee-shop
culture that has helped the indus-
try charge fat premiums, although
there are signs growth is slowing.
“Meeting for a coffee” has become
synonymous with socializing, dat-
ing and business meetings, even in
typically tea-drinking nations such
as the U.K. and India.
Tea has struggled to spark the
Tuesday, November 14, 2017 | A15
FROM TOP: ROSS MANTLE FOR THE WALL STREET JOURNAL; YOLANDA AVRAM WILLIS (3)
ing advantage of them, Ms. Kaplan Yolanda Avram Willis, pictured in her Pittsburgh home, wrote a book about her
found—even though it actually en- family’s experience in Greece during the Holocaust. Ms. Willis as a child with
courages success. (Some 81% of her younger brother, left. Her father’s false identification papers, below.
people in the survey said they
would work harder for a grateful
boss.)
People can get better at being
grateful, but it takes practice. Dr.
Emmons recommends keeping a
gratitude journal. Writing one to
three times a week about people,
events and things that make you
feel grateful is more effective than
daily entries—and don’t worry
about grammar. It’s important to
be specific so you can realize all
that went into an effort.
Paul Mills tried out the idea
with a group of about 50 to 60
heart patients at the Center of Ex-
cellence for Research and Training
in Integrative Health at the Uni-
versity of California, San Diego,
where he is director. The patients
kept journals for two months, re-
cording things they were grateful
for. Family, friends and nature
topped the lists.
Some wrote only a few words, lis in, saying she was their god- of their past. She made the first of
others wrote pages several days a daughter whose parents couldn’t several trips back to Greece in 1994
week. But everyone who kept a afford to feed her. Later, she lived and was reunited with her rescuers.
journal was less depressed, slept with a widower. Ms. Willis never Over the course of decades and
better and had lower levels of in- knew her parents’ whereabouts, interviews, Ms. Willis discovered
flammation than those who re- the thinking being that if she was that the baker and his family who
ceived the usual care but didn’t captured, she might reveal their took her in were forced into hiding
keep a journal, Mr. Mills says. location. After four years in hid- and hunted by the Nazis for hiding
People are understandably most ing, Greece was liberated and the her. “It took multiple encounters
grateful when something good family was reunited. for the story to come out,” she
happens. Finding gratitude in Ms. Willis devoted herself to says. She remembers weeping in
heartache, loss, pain or trauma is her studies and eventually went to her hotel room while listening to
more difficult. But it can also help the U.S. on a Fulbright Scholarship her taped interviews.
us become more resilient and to study chemistry. She settled in In her book’s dedication, Ms.
deepen our appreciation of what Pittsburgh, married, raised three Willis lists each of the 20 people
we do have, including the people children and obtained her Ph.D. in who helped along the way. Many
who helped us through. sociology from the University of of them have died, but some of
Ms. Willis, who wrote about her Pittsburgh. their children and grandchildren
experiences during the Holocaust, Her parents and brother re- are alive. It’s important for them
was 6 when war broke out in mained in Greece; her father died to know their parents’ selflessness,
Greece, forcing her well-known Jew- in 1965 and her mother in 1987. In she says. Ms. Willis also dedicated
ish family to flee their home. For 1992, her brother died. Troubled her book to her parents, “who
the next four years, they were con- and erratic as a child, Yannis was taught me gratitude.” During one
stantly relocating to avoid capture. eventually diagnosed as paranoid of her return trips to Greece, she
She and her younger brother, schizophrenic. learned that her grateful father
Yannis, were separated from their Although they were never close, had returned to Crete every Easter
parents, Salvator and Karolla. A Ms. Willis says, his death touched to celebrate the Christian holiday
baker and his family took Ms. Wil- her deeply and sparked her search with her rescuers.
FOOD & DRINK
same appeal.
Starbucks, widely credited with
spreading coffee culture the world
over through its 24,000 stores, in
July said it would close its 379
stand-alone Teavana stores, citing
underperformance. Starbucks still
sells tea drinks in its regular cafes,
but Howard Schultz’s promise to
“do for tea what we did for coffee”
remains unrealized.
Some blame the tea bag—in-
vented in 1908 when New York tea
merchant Thomas Sullivan sent
out samples in silk bags—for tea’s
inability to command a premium.
Chris Brennan recently left his
local Starbucks in Albuquerque,
N.M., empty-handed after discov-
ering it charges $4 for a cup of
tea. “I did a double-take,” recalls
the 40-year-old soccer club direc-
tor. “There’s no way I was going to
GETTY IMAGES
pay that kind of money for a tea
bag in hot water.”
Tea companies are hoping bet-
Please see TEA page A16
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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
A16 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

ART REVIEW

Winslow Homer’s Transforming Odyssey

An exhibition reveals how a sojourn in an English fishing village changed the American painter’s work
BY LANCE ESPLUND

Worcester, Mass.
IF THE AMERICAN illustrator and
painter Winslow Homer had been
born in Italy or France a genera-
tion or two earlier, he might have
depicted grand mythological
scenes inspired by Ovid. But he
was born in Boston in 1836 and
died in Prout’s Neck, Maine, in
FROM LEFT: PHILADELPHIA MUSEUM OF ART; MILWAUKEE ART MUSEUM

1910. By the time Homer was 19,

when he began a lifelong career
doing commercial illustrations and,
soon thereafter, pursued oil and
watercolor painting, the Realists
had purged painting of traditional Homer’s ‘Hark! The Lark’ (1882),
religious, historical and mythologi- above, and ‘The Life Line’ (1884), left
cal subjects, and the Impressionists
were on the verge of painting not and pasted onto their settings, like
the landscape but its light. puppets in a toy theater.
Homer’s most celebrated dra- This problem persists in many
mas, then—some of them played of his early seascapes—his human
out in the American countryside, subjects illustrated and posed, not
but most set on coastlines and at interpreted and felt. Yet this ap-
sea—were Realist renditions of ev- proach changes considerably after
eryday struggles between nature Cullercoats.
and human beings elevated to In “Moonlight, Wood Island
mythical proportions. In his signa- Light” (1894), a canvas Homer
ture landscape “Hark! The Lark” probably painted on the beach,
(1882), which Homer considered Worcester Art Museum that travels mature vision as a renowned sea- Gérôme and Manet. And it is also to forms, paint, surf and light are inte-
his “very best” painting, three this spring to Milwaukee. Co-orga- scape painter. The argument, as experience Homer’s influence on grated, active and immediate. And
young women working in a field nized by WAM’s Elizabeth Athens presented here, is sound. Americans Howard Pyle, the Wy- in “Driftwood” (1909)—perhaps his
are suddenly halted by birdsong, a and the Milwaukee Art Museum’s “Coming Away” is divided into eths, John Marin, Arthur Dove and best and final major canvas, in
scene Homer transforms, through Brandon Ruud, “Coming Away” three sections: before, during and Norman Rockwell. Homer spanned which a fisherman is blocked from
their repetitive gestures and star- poses fascinating questions about after his trip to England. Mixing Europe and America; Cullercoats accessing the sea by a giant piece
tled expressions, into near melo- the fluid nature of aesthetic influ- Homer’s pictures with those of appears to be the bridge. of driftwood—foreground, middle-
drama. And he poses his actors like ence and about what it means to be such painters as the British master More often than not, his early ground and background all advance
Greco-Roman pediment figures in an American, a New England or J.M.W. Turner and the French Real- pictures’ figures feel unnatural and like a wave breaking against us. We
his iconic seascapes “The Gale” even a “Yankee” artist. ist Jules Breton, as well as photo- overwrought. Homer treats his peo- feel immersed in the coastal spray
(1883-93), in which a woman, a From March 1881 to November graphs depicting nature and Classi- ple, on whom he lavishes too many and wind. In these late works,
babe on her back, steels herself 1882, Homer lived among the in- cal antiquities, it shows not just the persnickety details, differently from Homer buries the albatross of illus-
against the North Sea’s winds, and habitants and painters of Culler- power of artistic influence but the their environments, losing a sense trator at sea.
“The Life Line” (1884), the rescue coats, a small fishing village on authoritative inspiration of place. of the whole. In “Croquet Players”
of a woman in danger of being England’s northeastern coast. The Homer was infamously tight- (1865), the figures appear to glide Coming Away: Winslow Homer
snatched back into roiling surf. show posits that this trip—more, lipped concerning his personal life above the lawn. In such works as and England
These three paintings are among perhaps, than his years illustrating and influences. Yet, to walk through “Sparrow Hall” (c. 1881-82) and Worcester Art Museum, through Feb.
some 50 pictures by Homer in the American Civil War and Recon- any major Homer exhibition is to “The Mussel Gatherers” (1881-82), 4, 2018
“Coming Away: Winslow Homer struction, or his yearlong sojourn in sense the impact of Turner, the Pre- the spaces are light-filled and easy
and England,” a splendid, thought- France, from 1866-67—transformed Raphaelites and the French painters to navigate until you come to the Mr. Esplund writes about art for
provoking exhibition at the Homer, enabling him to develop his Corot, Delacroix, Millet, Courbet, figures, which feel stilted, staged the Journal.

PEET’S COFFEE

TEA
Unilever PLC, the world’s larg- Mighty Leaf’s green tea tropical recently launched a $9.2 million TV
est tea maker, this year launched a blend, which includes hints of campaign aiming to put a quirky
range of green and herbal teas un- pineapple and cornflowers. slant on English propriety. One spot
der its Lipton brand blended with features English indie rock band
Continued from page A15 essential oils. At Peet’s, best-selling items in- Kaiser Chiefs belting out a song at
ter tea bags, teas that make well- Wal-Mart sells a 15-bag pack clude a dirty chai latte for $5 and the Yorkshire Tea office while a re-
ness claims, and more inventive of “Stress Less” and “Soothe a matcha green tea latte—made ceptionist puts a caller on hold.
flavors could convince people to Your Tummy” for $4.38, or from finely ground green tea The tagline: “Where every-
spend more. 30 cents a bag, significantly leaves—for $4.20. thing’s done proper.”
Mighty Leaf Tea Co. sells sheer higher than the 4 cents it Such tea drinks are “big Tea companies are also spend-
hand-stitched pouches with ingre- asks for a bag of regular revenue drivers” that ing more on training staff. They
dients such as camomile flowers, black Lipton. deliver comparable say that seemingly minor things—
rose-hips peels and lemon myrtle Unilever is also try- margins to coffee, ac- when milk is added, whether fresh
from Croatia and Turkey. A pack of ing to move people cording to the company. water is used and how hot it is—
15 tea bags sells for $9.95. The away from the tea Starbucks last summer all contribute to making a good
Peet’s Coffee & Tea-owned brand bag. In 2015 it began selling iced straw- cup.
prints the suggested brew time on launched a $210 cap- berry green tea, pineapple “They need to develop the snob
the tag. sule tea machine in Eu- black tea and peach white tea appeal and connoisseurship and
TeaPigs, an 11-year-old British rope, which amends brew- in the U.S. for between $2.75 and make it like wine,” says Mark Pen-
brand available in over 35 coun- ing time and temperature $2.95—supported by a $9 million dergrast, author of “Uncommon
tries, sells tea bags in flavors like depending on the blend of tea. A TV ad campaign touting their Grounds: The History of Coffee
chocolate flake, and licorice and box of 10 Darjeeling tea capsules “feel-good” benefits. The drinks and How It Transformed Our
peppermint. sells for about $8. are flavored with fruit and botani- World.”
There’s a tea for a range of Cafes are now making more cof- cal blends. “Tea has a hugely long, fascinat-
moods and woes: when you’re fee-like tea drinks that people U.K.-based Taylors of Harrogate, ing history, and that’s something
bloated, wired or hung over. can’t easily whip up at home. which owns the Yorkshire tea brand, they need to highlight.”

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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A17

LIFE & ARTS

GETTY IMAGES (2)

ON “IF ALL I WAS WAS BLACK” MUSIC REVIEW | By Jim Fusilli seem too pat and idealistic—and
(Anti), Mavis Staples sings of so- minus Ms. Staples’s delivery, some
cial injustice and racial discord, read as such—she makes clear that
her voice warm and loving, her
phrasing at times clipped with
suppressed anger. Exploring anew
subject matter she’s addressed
Troubled Times Call For she’s also a realist who won’t be
told to pipe down. In “Who Told
You That,” she’s advised “My, my
don’t explode / We don’t want to
throughout a career that began al-
most 70 years ago with the Staple
Singers, here Ms. Staples testifies
that she still believes that love
Love and Dialogue rock the boat,” but she immedi-
ately challenges that soft counsel:
“Who told you that? / They lie and
they show no shame.”
and dialogue are the way forward. Mr. Tweedy surrounds Ms. Sta-
She refuses to point to flaws in
her opponents without recogniz-
Mavis Staples sings of social injustice and racial discord on her new album ples with a sympathetic band in-
cluding his son Spencer and Ste-
ing the flaws in herself. But she phen Hodges on drums; Scott
also acknowledges a change in “Respect Yourself” one / To look at it Ligon on various keyboards; and
American culture: Having long ago and other hits. from your point of guitarist Rick Holmstrom and
visited with the mother of Emmett Much as it is view.” She con- bassist Jeff Turmes, who, like Mr.
Till—the 14-year-old who in 1955 here, the quest for cedes her wrath in Hodges, have been members of Ms.
was brutalized and lynched in racial equality was “We Go High.” “I Staples’s live band. A battery of
Mississippi following an accusa- a lyrical theme for have a mind to backup singers gives the music a
tion that he had flirted with a some of her other bury them whole,” gospel lift. As a songwriter, Mr.
white woman—and sung often in contemporary re- she sings. Tweedy interprets her longstand-
support of Martin Luther King Jr., cordings, in partic- But, as she so ing positions. She believes in the
she sees that progress toward a ular the gritty often has, Ms. Sta- essential goodness of those who
more perfect union is now “We’ll Never Turn ples rises above see and savor the shared humanity
thwarted and that vile, anti-Amer- Back,” the 2007 al- hate and the hate- and she won’t obsess over those
ican forces that seemed van- bum in which she ful. Certain that who don’t. She offers her hand to
quished have returned. and Ry Cooder re- God and justice those who may view it with in-
“If All I Was Was Black,” which visited the civil- are on her side, creasing and inexplicable suspicion
arrives on Friday, is her third col- rights movement. she offers solu- and disdain. If those who live to
laboration with Wilco’s Jeff Her early 2016 tions that require loathe reject it, so be it: “Oh I
Tweedy, who wrote and produced disc, “Livin’ on a patience, commit- won’t be afraid / If that’s how you
the album. Musically, it is of a High Note,” pro- Mavis Staples, top and above, with Jeff Tweedy, who wrote and ment and a will- want to stay / I’ve got love,” she
piece with her run of five earlier duced by M. Ward, produced the singer’s new disc, ‘If All I Was Was Black’ ingness to accept sings in the title track.
21st-century studio recordings that concluded with a disproportionate A subtly provocative commen-
constitute a very satisfying late “MLK Song,” folk blues in which Staples and Mr. Tweedy cite cur- amount of responsibility for strife. tary on the country’s troubling,
period. It links to the Staple Sing- Ms. Staples sang excerpts from a rent events in the new songs. “People are dyin’ / Bullets are unrestful state, “If All I Was Was
ers’ easygoing blend of pop, gospel 1968 King sermon. For the most “Poor kid, they caught him with- flyin’ / No time for tears / We’ve Black” is yet another high mark in
and light funk while tossing in a part, though, Ms. Staples offered out his license / That ain’t why got work to do” is how she puts it the long and eventful career of Ms.
pair of folk blues; and most tracks songs of faith, both traditional and they shot him,” she sings in “Little in “No Time for Crying.” “Little bit Staples, who has seen much and
would slide in without quarrel on recently composed, many informed Bit.” In “Build a Bridge,” she from you and a little bit from me,” knows what it means.
a mixtape with the Staples Sing- with an optimism that now seems states: “When I say my life matters she sings in “Little Bit,” adding,
ers’ “If You’re Ready (Come Go misplaced. / You can say yours does too / But “Simple as it gets / We set each Mr. Fusilli is the Journal’s rock
With Me),” “I’ll Take You There,” Without naming names, Ms. I bet you never had to remind any- other free.” If those sentiments and pop music critic.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d
Edmonton 10s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 3 Luther Stickell’s 30 Brewer with a
20s 20s portrayer in “Banquet Beer”
Vancouver Calgary
0s 14 15 16
the “Mission:
40s 10s 31 Cost for cards
Winnipeg 17 18 19 Impossible”
ttl
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30s
Montreal 30s 20 21 22
Portland
P d l
Helena 4 Taxpayer who’s 34 Cocktail with a
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30s Billings 40s A g t
Augusta 40s 23 24 25 26 gone paperless black currant
Eugene Boise 20s
50s pls //St. Pau
Mpls./St. Pa
Paul T t
Toronto A bany
Albany t
Boston 50s
5 NBC weekend flavor
27 28 29 30 31
50s 50s oux FFalls
Sioux k
Milwaukee 40s rtford
Hartford 60s fixture 35 Finished off
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Pierre Detroit
t l
Buffalo
Cl l d
Cleve
Cleveland New
ew York
Y k 70s 32 33 34 35 36
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Chic
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60s Cheyenne Omaha
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Phhil d lphi
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Philadelphia
6 ___ Maria 38 Prepare for a
h Pittsburgh
g 50s 80s 37 38 39 40
Sacramento Salt
alt Lake City
p i gfi ld
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7 Maria’s pal in fight
Denver 60s hington
hi gton D.C.
Washington DC 90s
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an Francisco
C d
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City Ch l t
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Charleston 41 42 43 44 45 “West Side 42 For all to hear
40s LasL p
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h ill l igh
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C h l tt 8 Postgame Director Lee
Memphis
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Ph
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kl homa
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Atl t Warm Rain 44 Dealer in souls
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Ft. Worth D Dallas
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Cold 47 Nutrient in
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t
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New
ew Orleans
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an Antonio
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l l 80s Showers Flurries 67 68 69
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A h g Miami 12 He played 51 Like bubble baths
70s 80s
30s Pacino’s brother
Ice
40s
HERE’S TO YOU! | By Zhouqin Burnikel in “The 52 Schoolyard
Godfather” comeback
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 28 Beethoven’s 53 Antibullying ad,
53 “Besides that...”
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 Carrying current Symphony No. 3 in brief 13 Song for the
Omaha 60 39 sh 56 28 pc Frankfurt 44 34 pc 45 33 pc masses
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 78 62 pc 78 59 pc Geneva 44 28 s 45 29 pc 32 Sizable serpent 56 Some pop 54 Enemy of the
Today Tomorrow 5 Symbol on a Jedi
Philadelphia 51 36 pc 53 43 pc Havana 83 69 pc 80 66 pc
Scrabble board’s groups 18 Did an usher’s job
City Hi Lo W Hi Lo W Phoenix 87 59 pc 85 60 pc Hong Kong 80 72 pc 80 73 pc 33 Small change
Anchorage 26 12 s 23 19 s Pittsburgh 45 28 pc 51 37 c Istanbul 66 55 s 68 55 s center space 57 Starting squad 19 Kick out 55 Greenish-blue
Atlanta 61 41 s 61 45 s Portland, Maine 43 27 c 43 33 pc Jakarta 91 76 t 91 76 t 36 “Let’s get hue
Austin 76 61 pc 77 63 c Portland, Ore. 53 45 sh 50 43 r Jerusalem 72 51 pc 71 50 s
9 Arrive at going!” 60 Here’s the deal 24 Try a run
Baltimore 52 32 pc 54 40 pc Sacramento 65 45 pc 57 51 r Johannesburg 83 61 t 75 45 t 58 “Take ___!” (track
14 “Like that’ll ever 37 Collection for 64 Complete 25 Candy wafer coach’s directive)
Boise 50 36 pc 52 42 c St. Louis 54 48 pc 59 32 r London 52 47 c 55 45 c
Madrid 61 33 s 60 36 s
happen!” the poor reversal brand
Boston 43 34 sh 45 40 pc Salt Lake City 56 36 pc 61 51 pc
Burlington 39 27 c 44 37 c San Francisco 64 51 pc 62 55 r Manila 90 77 pc 90 77 pc
59 Viral video, e.g.
15 Golfer’s front or 39 Org. with many 65 Home inspection 26 It beats scissors
Charlotte 58 36 s 58 39 pc Santa Fe 67 35 s 62 33 s Melbourne 90 70 s 87 62 sh 61 Digital address
Chicago 48 44 c 52 31 r Seattle 51 44 r 49 42 r Mexico City 71 46 pc 74 46 pc
back secrets issue 27 Boot bottoms
Cleveland 48 34 pc 48 39 r Sioux Falls 57 35 sh 45 22 pc Milan 52 32 pc 52 33 pc 16 Impressive 40 Shoelace 66 Fall guy? 62 Sort
Dallas 77 64 pc 74 60 c Wash., D.C. 53 36 pc 54 42 pc Moscow 41 29 r 35 33 c 29 “Give me a few
Denver 66 28 pc 58 35 pc Mumbai 91 75 pc 90 76 pc
display problem more minutes!” 63 Lyrical tribute
67 Fracking
Detroit
Honolulu
46 36 pc 45 35 r
86 73 sh 84 72 pc
International Paris
Rio de Janeiro
50 39 s
81 66 s
52 37 pc
85 71 s
17 Here’s the scoop 41 Microwave target
Today Tomorrow sound Previous Puzzle’s Solution
Houston 79 59 pc 81 63 pc Riyadh 85 56 pc 87 57 s 20 It might be 68 Attachment for C A S P S I M B A S T A T
Indianapolis 48 37 pc 49 31 r City Hi Lo W Hi Lo W Rome 60 48 t 63 47 c obtuse 42 Vessels from draft horses A L T I K N E A D AW R Y
Kansas City 57 48 sh 58 31 pc Amsterdam 52 47 r 55 46 c San Juan 88 77 sh 88 77 sh N O E S G U A R D S L I A R
Las Vegas 73 52 pc 76 59 s Athens 68 60 t 69 60 t Seoul 52 34 s 45 28 s 21 Ride for hire hearts S E W A O L F L E A N T O
69 Sort P O K E R O NM E
Little Rock 62 49 pc 66 50 sh Baghdad 80 55 pc 81 57 s Shanghai 64 53 c 62 54 pc 45 Mine extraction S O D A S W I N G D I N G S
Los Angeles 76 59 pc 74 59 pc Bangkok 90 77 pc 90 78 pc Singapore 85 74 t 87 75 t 22 TV journalist Down T H I N E P E A S G E E
Miami 84 72 pc 82 70 pc Beijing 47 22 s 47 23 s Sydney 73 61 s 75 63 s Curry 46 Criticize strongly P A S S G R OWN C I T E
Milwaukee 48 42 c 51 32 r Berlin 43 40 c 48 39 c Taipei 77 70 r 77 70 pc 1 Hot flow A R T S O N S MA N O R
Minneapolis 48 32 sh 38 24 pc Brussels 47 45 r 51 43 c Tokyo 63 51 c 60 50 c 23 Here’s the catch 48 Passes, as a law T A I L C O A T S OM E N S
Nashville 59 40 pc 62 48 sh Buenos Aires 90 69 s 85 51 t Toronto 42 30 pc 44 38 c
2 “No man ___ L E A F E L A T E
27 Screeching bird 50 Here’s the pitch island” G E L A T O O N T R I A L
New Orleans 71 54 s 74 56 pc Dubai 90 71 s 88 70 s Vancouver 49 44 r 48 38 sh A R E S F L A P D O O D L E
New York City 48 38 pc 49 43 pc Dublin 53 45 c 53 45 c Warsaw 41 34 pc 44 35 c W I R E F I L E R O L D S
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 67 55 sh 64 45 c Edinburgh 51 38 c 50 45 c Zurich 42 25 pc 42 26 pc K E Y S S P A D E N E A T

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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
A18 | Tuesday, November 14, 2017
Coach K Is Still Listening
Durham, N.C.
At this point, why
should Coach K listen
to anybody?
Still, here we are, on
a recent morning, amid
a tangle of cords and headsets, in a
room not far from that rowdy
mousetrap, Cameron Indoor Sta-
dium. Mike Krzyzewski—the win-
ningest coach in men’s college bas-
ketball history, the holder of five
national titles—is sitting at a confer-
ence table, dressed in a spiffy Blue
Devils pullover, quietly…listening.
To A.J. Hinch, manager of the
newly-crowned World Series cham-
pion Houston Astros, who talks
about being the “calmest heart-
beat” in the clubhouse.
To Alex Rodriguez, currently
transforming from baseball pariah
to beloved TV personality, who talks
about trying to convert Jennifer Lo-
pez to a Miami Hurricanes fan.
“You are so damn interesting to
talk to,” Coach K coos at one point
to A-Rod.
This is “Basketball & Beyond
with Coach K,” Krzyzewski’s na-
tional radio show, now in its 13th
season on SiriusXM’s ESPNU sta-
tion. The Duke coach, now 70,
maintains his high-profile day
job—the Blue Devils began the
2017-18 season ranked No. 1 in the
country, and face No. 2 Michigan
State Tuesday in Chicago—but he
somehow finds time to host a
weekly interview show where the
guests have ranged from LeBron
James to Richard Petty to former
Chairman of the Joint Chiefs of
Staff General Martin Dempsey.
Coach K has had Bill Belichick
on twice. Twice! And Football’s Fa-
vorite Grumpy Lobster Boat Cap-
tain was downright gabby.
“I can’t believe how much he
talked,” Krzyzewski says.
“Basketball and Beyond” is not
typical sports radio schlock. Coach
K does not do the hot take—as a
host, he’s low-fi curious, like NPR’s
Terry Gross, or his friend and Duke
grad, Charlie Rose. He pulls ques-
tions from pages of notes. There
are no gotcha moments, though he
does bring up A-Rod’s steroids
past, allowing him to address it
and tactfully pivot away.
A couple of weeks back, Krzyze-
wski and former NFL coach Tony
Italian players react after being knocked
out of World Cup contention by Sweden.
DANIEL DAL ZENNARO/EPA/SHUTTERSTOCK
ITALY WHIFFS ON WORLD CUP
BY JOSHUA ROBINSON
OVER THE PAST 60 years, nearly
everything about the World Cup has
been tinkered with, from the num-
ber of teams to the design of the
trophy. But when the 2018 edition
kicks off in Russia next summer, the
tournament will try something it
hasn’t experienced since 1958: a
World Cup without Italy.
The Azzuri, four-time world
champions, failed to qualify on
Monday after losing a home-and-
home playoff against Sweden,
marking a level of sporting disgrace
that younger generations had not
considered possible. Worse than
slow Ferraris or Olympics without
medals, an incompetent national
soccer team is as low as it gets for
this soccer-mad nation.
“We blew something that could
have been significant, even so-
cially,” goalkeeper Gianluigi Buffon
said while weeping through his
post-game interview. “The blame
is shared among all of us.”
Italy will be the only previous
COLLEGE BASKETBALL | By Jason Gay
Duke men’s basketball coach Mike Krzyzewski holds the game ball following his 1,000th win at the school.
Dungy managed to have a lengthy,
thoughtful conversation about the
athlete protests in the NFL with-
out anyone throwing a Papa
John’s pizza.
It felt like a minor miracle.
Look: Duke men’s basketball has
brought me great misery, and I
wanted to hate “Basketball & Be-
yond with Coach K.” But it’s good.
Krzyzewski used to do the typi-
cal sports radio coach’s show, back
when he began in Durham. He did
not love it. “I’d go to a studio
someplace, and Sam from Apex
would call, and Jim from Raleigh,”
Krzyzewski tells me in his office
after a show taping. “I’m saying,
‘Yeah, I should be home talking to
SOCCER
winner of the World Cup not to be
in Russia.
It now joins the ignominious
club of major soccer nations to fall
apart in qualifying this year,
alongside Chile and the Nether-
lands. And then there is the U.S.,
which failed to emerge from one of
the easier qualifying zones when it
choked last month against lowly
Trinidad and Tobago.
Italy’s defeat also marked a dev-
astating end to one of the great
careers in the international game.
Buffon, Italy’s captain, keeper, and
national anthem singer-in-chief
was always going to retire at the
end of this World Cup campaign.
He just didn’t expect the conclu-
sion to come without a flight to
Russia. But at 39, after 175 inter-
national matches in 20 years, he
called it quits. “I don’t feel sorry
for myself,” he said. “I feel sorry
for the entire project.”
That said, the Italian project
hasn’t exactly been a major factor
in international soccer since the
Azzurri last lifted the World Cup
in 2006. At both the 2010 and
SPORTS
my family, not these guys.’”
But Krzyzewski enjoys “Basket-
ball & Beyond,” “because it’s not a
call-in, and I get a chance to really
visit with top-notch people. I learn
a lot, even in the preparation of
it.” He says he likes the show so
much, he’d want to expand it when
he steps away from the bench.
Don’t panic, Dukies: K does not
sound in a rush. Krzyzewski may
have an office stuffed with memo-
rabilia—in the hallway is a basket-
ball from Duke’s 2015 title over my
Wisconsin Badgers that I wanted to
steal and punt out a window—but
he’s thoroughly in the present, with
another stacked team expected to
make noise in late March.
2014 tournaments, they were
knocked out in the group stage.
This time around, Italy put itself
in this predicament because it fin-
ished behind Spain in its original
qualifying group. That meant it had
to take the playoff route, where it
started as a heavy favorite against
the Swedes, who hadn’t been to the
World Cup since 2006. But the
damage was done in the first leg in
Stockholm when Sweden snuck in
one severely deflected goal.
On Monday night in Milan, Swe-
den knew it simply had to defend
its advantage. Bending but never
breaking, it allowed Italy to have
75% possession and 23 attempts
on goal, though only six of Italy’s
shots hit the target. Sweden’s
physical approach and compact de-
fending kept the Azzurri off bal-
ance as time ran out. And as Italy
panicked, its game went to pieces.
“Anyone who has played knows
how difficult it is to play in games
like this one,” Buffon said. “We
didn’t manage to express our-
selves. We lacked the clear heads
to score.”
Like a lot of his colleagues,
Krzyzewski has adapted to college
basketball’s fleeting “one-and-done”
landscape, in which top players stay
only a season before departing for
the NBA. He’s been good at it—this
season, Duke has star frosh Marvin
Bagley III, who should be a top NBA
pick this spring, and next season,
they will bring the touted Canadian
prospect R.J. Barrett to campus.
This isn’t to say Coach K likes
“one-and-done”—he doesn’t. And
amid the FBI bribery case involv-
ing college teams, sketchy agents
and intermediaries — a develop-
ment that led to the NCAA’s Com-
mission on College Basketball—
Krzyzewski wants to put the entire
THE COUNT
A RUN OF BAD PUCK
Nearly six weeks into the NHL
season, the Arizona Coyotes are re-
markably still looking for their first
win in regulation.
At just 2-14-3, Arizona is on
pace for just 30 points over a full
82-game schedule, which would
represent the sport’s worst record
in a generation. It took 12 games
for the team to get a win of any
sort, on a goal with just 15 seconds
left in overtime against the Phila-
delphia Flyers. Their second victory
came five nights later in a shootout
over the Carolina Hurricanes.
Things aren’t going to get eas-
ier for the Coyotes, as 10 of their
next 14 contests are on the road.
And the four home games their
fans will “enjoy” during that
stretch are against the top
three teams in the Pacific
division (Los Angeles Kings,
Las Vegas Golden Knights
and San Jose Sharks) and the
Metropolitan division-leading
New Jersey Devils.
Inexperience
has played a role
in the Coyotes’
dismal start.
The average
age on their
roster is
just 26.0,
Frozen on Ice
Lowest percentage of possible points by non-expansion teams:
TEAM
San Jose Sharks
New York Rangers
Arizona Coyotes*
Chicago Blackhawks
Quebec Nordiques
Washington Capitals
Winnipeg Jets**
* 82-game pace **Arizona Coyotes franchise
Source: Hockey Reference; WSJ
THE WALL STREET JOURNAL.
system up for reconsideration.
“The whole journey has to
change,” Krzyzewski says.
I thought Coach K might be old-
fashioned about change. But he
sounds open to everything: not just
eliminating one-and-done, but
strategizing different compensation
ideas for players, and growing the
NBA’s role, perhaps through the G
League or an academy-style track
similar to what it does overseas.
The only thing he’s dead opposed
to is a hard rule on how much time
a player spends in college.
“Once we get a player, he be-
comes a part of Duke,” he says.
“We have a responsibility to edu-
cate him, to coach him and all that,
but he has the right to determine
whether he comes here or not, and
then how long he stays here.”
On the issue of compensation, I
tell him that any time I write about
paying college athletes, I hear from
folks who feel a scholarship is a
more-than-fair deal.
“Well,” Krzyzewski says, “not to
say that one is more important
than the other, but there are differ-
ent levels of college athletes.”
He continues: “And college
teams. The sport of football, the
GERRY BROOME/ASSOCIATED PRESS
sport of men’s basketball, the reve-
nue producing element, especially
at the Power Five conference
level—it’s apples and oranges. It
isn’t all apples. Do we have a sys-
tem that can figure that out?”
It’s not simple. There are legit
concerns about what paying ath-
letes would mean for athletes in
non-revenue sports—or if it’s le-
gally possible with Title IX rules.
Could revenue sports like football
and men’s basketball be legally re-
classified as something different?
“That’s a possibility,” Krzyze-
wski says. “I’m a proponent for
change. It’s not working. I don’t
have the solution. I would hope
that this [commission] comes up
with some courses of action.”
The focus should be the people
on the court, he says.
“The game is the kid,” Coach K
says. “The game is the player.”
And with that, the winningest
men’s college basketball coach has
to wrap. Basketball games were
coming, and a season’s worth of
radio shows, too. It’s time to get
back to work…and listening.
making them the second-youngest
team in the NHL behind the Colum-
bus Blue Jackets.
The lone bright spot for the
Coyotes has been the play of 19-
year old forward, Clayton Keller. A
2016 first-round pick out of Boston
University, Keller has lit the lamp 11
times in 19 games. No one else on
Arizona has as many as five goals.
That lack of offensive firepower
has been extremely difficult to
overcome for a team whose goalies
are dead last in the league with a
.881 save percentage, which is the
lowest mark in the league since
1999-2000.
In a sport where over half the
teams make the postseason, it
appears Arizona will miss
the playoffs for the sixth
consecutive season—and
12th time in 15 years. In
38 seasons split between
Winnipeg and Phoenix,
the franchise has only one di-
vision title.
—Eric Eisenberg
Arizona
Coyotes
goalie
Antti
Raanta.
SEASON POINTS PTS. %
1992-93 24 .143
1943-44 17 .170
2017-18 30 .184
1927-28 17 .193
1990-91 31 .194
NORM HALL/NHLI/GETTY IMAGES
1976-77 32 .200
1981-82 32 .200
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 ABA Jumps the Shark
Looks as if the
American Bar
Association
picked
nominee to
the
wrong judicial
play politics
MAIN
with. If Re-
STREET
publicans on
By William
the Senate Ju-
McGurn
diciary Com-
mittee are
smart, they will use the ABA’s
appearance at a hearing
Wednesday to call the group
out.
The object of the ABA’s at-
tention is Leonard Steven
Grasz, a former Nebraska
chief deputy attorney general
who’s been nominated for the
a seat on the Eighth U.S. Cir-
cuit Court of Appeals. The
ABA has slapped Mr. Grasz
with a “not qualified” rating,
saying he’s too biased and too
rude to be a judge. Given that
much of this rating is based
on accusations that are not
detailed and from accusers
who remain anonymous, it re-
veals more about the organi-
zation that issued it than it
does about Mr. Grasz.
“The ABA is running a
smear campaign based on the
idea that Steve is a kale-hat-
ing, puppy-kicking monster,”
says a fellow Nebraskan, Re-
publican Sen. Ben Sasse. “But
no one in Nebraska on either
side of the aisle recognizes
that man.”
The ABA says its ratings
are based on neutral and pro-
fessional criteria, much the
way a medical board might
evaluate a doctor. Since Presi-
dent Eisenhower “first invited
Donald Trump’s High-Wire Foreign Policy
By Walter Russell Mead
P
resident Trump inher-
ited a world in crisis,
with the Pax Americana
challenged in Asia, the Middle
East, Europe and the Carib-
bean. Today the White House
has clear priorities—but ques-
tions about temperament and
competence persist.
Think back 10 months to
Inauguration Day. North Korea
was regularly testing and im-
proving its missiles and nu-
clear weapons, well on its way
to threatening the American
mainland. China was intensi-
fying its multifaceted chal-
lenge to the Asian status quo.
Iran’s expansionism threat-
ened to plunge the Middle
East into chaos, and the re-
gime had outmaneuvered an
Obama administration that
was desperate for a nuclear
deal. Russia’s annexation of
Crimea and support for break-
away forces in eastern Ukraine
presented legal and geopoliti-
cal challenges to the post-Cold
War order. Venezuela’s pro-
gressive degradation threat-
ened to destabilize Latin
America, a region of direct in-
terest to the U.S.
Remember, too, President
Trump’s skepticism of global
engagement. He came into of-
fice convinced that American
interests were being under-
mined by the multilateral
trading system, as estab-
lished by the George H.W.
Bush and Bill Clinton admin-
istrations. He disdained the
A Hedge Fund That Has a University
By Thomas Gilbert
And Christopher
Hrdlicka
W
hatever you may hear,
the Republican tax-re-
form proposal isn’t an
assault on higher education.
The House and Senate plans in-
clude a new 1.4% excise tax on
the net investment income of
university endowments, but the
levy applies only to private col-
leges with at least 500 students
and endowments of more than
$250,000 a student. Schools
like Harvard, Yale, Stanford and
Princeton—which together hold
over $100 billion—are predict-
ing doom. Yet this long-over-
due tax will benefit higher edu-
cation in the end.
Over the past 30 years uni-
versities have chased higher
returns on their endowments,
leading them to take greater
risks. Our research shows
that more than 75% of the as-
sets in university endow-
ments are now in risky in-
vestments: securities, hedge
funds and private equity.
Think of Harvard as a tax-free
the ABA into the process,”
the group says, it’s been
standard practice for presi-
dents to submit their judicial
candidates to the ABA for
vetting before announcing a
nomination.
Well, yes and no. In just
one indication of how politi-
cized the ABA ratings have
become, Democrats and Re-
publicans long ago diverged
on the ABA’s role in the nomi-
nations process. In 2001,
George W. Bush halted the
practice of giving the ABA
first crack at vetting potential
nominees; in 2009 Barack
Obama revived it; and this
year President Trump halted
it again.
Yet even without an offi-
cial role, the ABA ratings still
exert undue influence on
nominations. For the real sig-
nal sent by a “not qualified”
rating is: This guy is a Nean-
derthal. That in turn allows
the press to portray a nomi-
nee as out of the mainstream,
and it can siphon off confir-
mation votes from Republican
senators nervous about the
rating.
That’s plainly what the ABA
hopes for Mr. Grasz. The ABA’s
statement makes clear his “not
qualified” rating is based on
two broad worries: his “pas-
sionately held social agenda”
and complaints that he’s been
“gratuitously rude.”
By “passionately held so-
cial agenda,” the ABA means
abortion; in his prior life Mr.
Grasz defended—as a state
deputy attorney general is
obliged to do—a Nebraska
ban on partial-birth abortion.
process enshrined in the 2016
Paris climate accord.
If all this weren’t enough,
the incoming team knew that
the American public was in-
creasingly skeptical of large
overseas commitments—
whether to diplomacy, foreign
aid or war. And the journalis-
tic and foreign-policy estab-
lishments viscerally opposed
Mr. Trump on personal and
political grounds.
It’s more conventional
than expected, at a
time when the world
is more perilous.
Talleyrand, Metternich, Bis-
marck and Kissinger, working
together, would have had a
difficult time managing a
portfolio this large, urgent
and unwieldy. The Trump ad-
ministration has struggled vis-
ibly to develop a coherent ap-
proach. Yet as the president’s
first year nears its conclusion,
some order has begun to
emerge, and at least the out-
lines of a Trump global policy
now seem clear.
The first task was to set
priorities, and it is obvious
that the White House is put-
ting Asia and the Middle East
above other regions and is-
sues. The crises in Ukraine
and Venezuela are on the
back burner. So are climate
and trade policy, though the
hedge fund that happens to
have a university.
The proposed levy on in-
vestment income—dividends,
interest and capital gains—is
fundamentally a tax on this
risk-taking, not on the endow-
ments themselves. By taxing
risk-driven income, the GOP
plan doesn’t target higher edu-
cation. It goes after hedge
funds masquerading as univer-
sity endowments.
Taxing endowments’
investment income
would help higher ed.
When an endowment is in-
vested in safe assets such as
bonds, it serves as a rainy-day
fund to buffer the risks a uni-
versity takes in its normal op-
erations: admitting students
on scholarship, launching new
research laboratories and
generally expanding its educa-
tional and research missions.
Such a safe endowment gen-
erates almost no investment
OPINION
What it means by “rude” no
one knows, because the ABA
has thrown this out there
while providing almost no
specifics. For good measure,
the ABA has twisted a two-
decade-old law review article
to suggest Mr. Grasz rejects a
point he explicitly states, to
wit, that judges are bound by
clear legal precedent—even
when “it may seem unwise or
even morally repugnant.”
Why did the group
ask where a judicial
nominee’s children
went to school?
So Wednesday’s hearings
offer Republicans an excellent
opening to press ABA officials
on how they came to their
“not qualified” rating. Here’s
a few suggestions:
• Why did the ABA ask
where Mr. Grasz’s children
went to school? Does the ABA
believe their Lutheran educa-
tion affects his fitness as a
judge?
• Is it ever appropriate for
an ABA interviewer to refer to
“you people,” as Mr. Grasz’s
did? When Mr. Grasz asked
for clarification, the inter-
viewer said he meant “Repub-
licans and conservatives.” Has
the ABA ever referred to “you
people” when interviewing a
Democratic nominee?
• The ABA has taken posi-
tions on many of the most
contentious issues before
the courts these days, from
president’s tweets sometimes
disguise this reality.
When addressing its prior-
ities, the Trump administra-
tion has chosen an activist
approach, tightening rela-
tions with traditional allies
to restore regional orders un-
der threat. This means check-
ing Iran by working closely
with the untested new Saudi
leadership, as well as Egypt,
the United Arab Emirates and
Israel.
This anti-Iran phase is be-
ginning in earnest now that
the Trump administration’s
original goal of destroying Is-
lamic State’s so-called caliph-
ate has been largely achieved.
The White House also hopes
the new constellation of forces
will allow progress on another
goal: containing and maybe
even resolving the Israeli-Pal-
estinian dispute.
In Asia the administration,
working closely with Japan, is
trying to assemble and
strengthen a coalition to
counterbalance China—while
simultaneously seeking Chi-
nese cooperation in tightening
the screws on North Korea.
The White House hopes that
offering Beijing a smooth
trade and political relation-
ship will induce it to provide
real help with the North Korea
problem, even as the U.S.
works to persuade the North
Koreans that the risks of con-
flict are real.
Mr. Trump’s foreign policy
has so far turned out to be
more conventional than his
income, meaning there would
be no tax liability under the
GOP proposal.
Instead the tax would fall
on large, risky and illiquid
funds. Endowments that make
such investment decisions can-
not effectively protect their
schools. During the financial
crisis, Harvard’s endowment
lost nearly 30% of its value. Af-
ter failing to sell its private-
equity portfolio, the university
had to institute drastic hiring
and budget freezes.
A large and risky endowment
also reveals a university’s poor
assessment of its internal in-
vestment opportunities, such as
scholarships and research. If
Harvard and Stanford have edu-
cational and research projects
that could benefit from addi-
tional funds, why put their
money at risk in the stock mar-
ket? Perhaps the answer is that
the opportunity to run a tax-free
hedge fund is too attractive. In
that case, why should taxpayers
subsidize their activities?
In colleges’ defense, states
have placed perverse restric-
tions on their ability to use
abortion to guns to same-sex
marriage. How can a Repub-
lican judicial nominee have
confidence these ABA posi-
tions will not adversely af-
fect the ABA’s rating?
The questions are particu-
larly compelling given that
the Mr. Grasz who testified at
his confirmation hearing ear-
lier this month bears no re-
semblance to the knuckle-
dragger the ABA is making
him out to be. So it’s crucial
Republicans keep the focus on
the ABA and not let the hear-
ing become yet another stage
for anonymous accusations
against Mr. Grasz—especially
because he won’t be there to
defend himself.
The best revenge, of
course, is getting this man
confirmed notwithstanding
his ABA rating. But the day
after the attacks on Mr.
Grasz at his hearing, Mr.
Sasse delivered an impas-
sioned speech on the Senate
floor, raising an even larger
question: Since when did the
Senate accept the idea that
its members should out-
source to a third party their
constitutional responsibility
to evaluate the fitness of the
president’s nominees to the
federal bench?
“There’s nothing wrong
with a liberal organization
such as the ABA using its
First Amendment rights to
push its political agenda,”
says Mr. Sasse. “What’s
wrong is to allow it to mas-
querade as fair and impartial
arbiter—and give it a special
role in the process.”
Write to mcgurn@wsj.com.
rhetoric and style would sug-
gest. Working with America’s
traditional allies in Asia and
the Middle East against those
regions’ revisionist powers
hardly amounts to a strategic
revolution.
But if Mr. Trump’s current
goals are conventional, the
state of the world is not. He
may well fail. The challenges
are large, the learning curve is
steep, and the terrain is unfor-
giving. Allies and adversaries
are watching the Republican
Party’s disarray on issues like
health care, assessing the
prospects of a Democratic
wave in 2018, and paying close
attention to the progress of
the Mueller investigation. Mr.
Trump’s foreign policy, like his
presidency overall, is a gamble
whose outcome the president
cannot fully control.
For now Mr. Trump is per-
forming a high-wire act, jug-
gling his way across the Indo-
Pak region even as his
administration pursues ambi-
tious goals in the Middle East.
Some of the world’s most
powerful countries hope that
he fails, and they will do what
they can to trip him up. Amer-
icans, regardless of party or
their personal sentiments
about Mr. Trump, should wish
him success overseas. The
consequences of failure could
be extreme.
Mr. Mead is a fellow at the
Hudson Institute and a profes-
sor of foreign affairs at Bard
College.
endowments as rainy-day funds.
The Uniform Prudent Manage-
ment of Institutional Funds Act
is a law in 49 states that limits
the maximum endowment pay-
out rate between 5% and 7% a
year. Although well-intentioned,
that and earlier restrictions
prevent universities from tap-
ping endowments to fill the
kind of budget holes they expe-
rienced in 2008.
To have the best chance of
improving incentives for en-
dowments, the proposed in-
vestment tax should be accom-
panied by a repeal of these
payout caps. But it’s a mistake
to think that taxing risky in-
vestments by university endow-
ments is an attack on academia.
Discouraging superwealthy
schools from pumping cash into
stocks, hedge funds and private
equity should lead to increased
spending on education and re-
search. Isn’t that the purpose of
higher education?
Messrs. Gilbert and Hrdlicka
are assistant professors of fi-
nance at the University of
Washington.
Tuesday, November 14, 2017 | A19
BOOKSHELF | By Caitlin Fitz
Freedom
On the March
The Expanding Blaze
By Jonathan Israel
(Princeton, 755 pages, $39.95)
W
e in the United States have long liked to see our
nation as an inspiration for liberty-lovers worldwide.
Thomas Paine called the would-be republic “an
asylum for mankind.” Ralph Waldo Emerson memorialized
“the shot heard round the world.” It was up to us, Abraham
Lincoln vowed, to prove “that government of the people, by
the people, for the people shall not perish from the earth.”
In “The Expanding Blaze,” Jonathan Israel, professor emer-
itus at the Institute for Advanced Study in Princeton, urges
us to take these lofty visions seriously. From 1775 through
1848, he argues, the American Revolution inspired freedom-
fighters around the world, from Canada and Colombia to Ire-
land and Italy. Consider the National Assembly of revolution-
ary France, which convened
under the stony gaze of three
busts: George Washington,
Benjamin Franklin and Jean-
Jacques Rousseau.
Yet the American Revolution
had a contested legacy, Mr.
Israel argues, for it encom-
passed two “irreconcilable” ide-
ologies. On one side were radical
“democratic republicans” like
Thomas Jefferson and Paine, who
championed sweeping political,
social and secularizing change. On
the other side were “aristocratic
republicans” like John Adams, who
advocated more incremental reform,
sought “anti-democratic” restrictions on voting
and admired Britain’s “mixed government.” Mr. Israel argues
that this divide marked “all” of the revolutions that ensued in
Latin America and Europe over the next several decades.
The stakes were high. Would revolutionaries champion a
new world era of “universal rights”? Or would they settle for
what Jefferson called the “half-way house” of England’s
constitutional monarchism? To readers of Mr. Israel’s
previous books, the argument will sound familiar. A scholar
of European intellectual history, Mr. Israel has long main-
tained that the Enlightenment of the 17th and 18th centuries
encompassed similarly radical and moderate wings. Scholars
have praised Mr. Israel’s interpretation for its breathtaking
scope, but they have criticized it for weak evidence, pro-
radical bias and overstated dichotomies that miss the
messiness of real life and the exigencies of politics. The same
strengths and weaknesses mark “The Expanding Blaze.”
A relative newcomer to U.S. history, Mr. Israel sometimes
brings a refreshing outsider’s perspective, as when he shows
how the American Revolution galvanized Irish resistance to
British rule, or in his account of the exodus of radicals from
Germany to the United States after Europe’s failed 1848
revolutions. Though the author concentrates on tiny circles of
intellectuals in each country, he shows how the radicals
among them strategically invoked the American example as
evidence that change was possible, and he powerfully
captures their sense of global urgency.
In the wake of American independence, ensuing
revolutions worldwide likewise saw a divide
between ‘democratic’ and ‘aristocratic’ ideals.
The other part of Mr. Israel’s argument—that a
comprehensive divide between “democratic” radicals and
“aristocratic” moderates framed debates from the U.S. to Latin
America to Europe—is less persuasive. The author simply
throws up the revolutionary barricades and pushes everyone
to one side or the other, even when they resist such easy cate-
gorization. Take Jefferson, for instance, whom Mr. Israel calls
an “iconic” radical, the “most consistent” and “unambiguous”
among the Founders. Mr. Israel correctly notes that Jeffer-
son’s antislavery urgency was waning by the early 1800s, but
he glosses over the ways in which slavery had long shaped
Jefferson’s politics. Like many of his global contemporaries,
Jefferson was radical and retrograde, all in one.
Mr. Israel’s outsider view of U.S. history sometimes leads
him astray. He calls the antebellum painter and inventor
Samuel Morse a “stalwart champion of democratizing revolu-
tionary values,” perhaps unaware that Morse helped lead the
anti-Catholic nativist movement—which Mr. Israel elsewhere
describes as undemocratic and “conservative.” (Here too, the
author’s dichotomies seem forced.) Other statements are sim-
ply ill-considered: Slavery, Mr. Israel asserts, “was universally
recognized as the prime . . . defect” of the United States. But
what about the plight of native people, who might as easily
have pointed to territorial aggression? Jefferson, Mr. Israel
remarks, supported enfranchising “all” free people. But what
about free women? Like most of his contemporaries, Jeffer-
son never intended to see women casting ballots; the putative
radical hoped women were “too wise to wrinkle their fore-
heads with politics.” Such repeated missteps by Mr. Israel are
distracting at best. At worst, they undermine the reader’s
trust in the author’s accuracy and understanding.
Ironically, although he sympathizes with radicals who
fought for “universal human rights,” Mr. Israel has a limited
idea about whose ideas matter: Black intellectuals and
women are nearly absent from this book. Mr. Israel suggests
that black Haitians struggled to understand the big ideas at
stake, for example, even though recent historians have argued
that Haitian revolutionaries urged global radicals toward a
broader understanding of human freedom. Similarly, he
asserts that in the American Revolution most black people’s
“general understanding of the slavery issue” remained
“stunted by lack of education” and “dogged adherence to . . .
piety.” But historians have shown the reverse: African Ameri-
cans repeatedly and judiciously convinced sympathetic whites
to act, and their religiosity strengthened their egalitarianism.
Having discounted African American voices, Mr. Israel
devotes little attention to global 19th-century abolitionists,
arguably the leading human-rights radicals of their time.
The problem with “The Expanding Blaze” is not that Mr.
Israel has written about a small group of intellectuals. Men
like Jefferson, Locke and Montesquieu were enormously
influential, and they merit disproportionate attention. But Mr.
Israel too often views such men in isolation, without
exploring how their ideas developed in conversation with the
claims of other social and political groups. Ideas don’t bleed,
and so Mr. Israel’s account is often bloodless, an un-
revolutionary treatment of a revolutionary age.
Ms. Fitz, a historian at Northwestern University, is the
author of “Our Sister Republics: The United States in an
Age of American Revolutions.”
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 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Great Progressive Tax Escape Let the Military Focus on Essential Missions

D
emocrats contend that marginal tax month by promising to soak the rich even Regarding your edi-
rates don’t matter to investment and more, and his legislature will oblige. torial “Bad Marks for a
Good Military” (Nov. 7):
growth, and even some conservative The prospect of future tax hikes appears to
Saying “Congress needs
intellectuals are conceding the have propelled an exodus of to allocate enough
point. But the evidence from IRS data show an high earners from Illinois, money to adequately
wealth fleeing high-tax states accelerating flight which has a relatively low and train sailors” doesn’t

SCOTT OLSON/GETTY IMAGES

shows how sensitive the afflu- flat 4.99% income tax. Demo- address the core issue
ent are to rate increases. from high-tax states. crats raised the rate from 3% of failure. Funding
The liberal tax model is to in 2010, but the tax hike wasn’t the problem; it
fleece the rich to finance lapsed in 2015 after Bruce was as always a com-
spending on entitlements and government pro- Rauner became Governor. House Speaker Mi- plete lack of leadership
grams that invariably grow faster than the chael Madigan finally this summer secured GOP at the highest levels.
economy and revenues. IRS data on tax migra- legislative support to override the Governor’s This episode falls on
admirals who wanted a
tion show this model is now breaking down in veto and reinstate the higher rate.
third or fourth star and were eager the editorial suggests.
progressive states as the affluent run for cover But the tax increase won’t raise enough money to compliment a pitifully naive and Two factors, if left unchecked, will
and the middle class is left paying the bills. to finance the state’s $250 billion unfunded pen- unprepared new entrant to the presi- lead to a “hollow force”: uncontrolled
Between 2012 and 2015 (the most recent sion liability, and the long-time goal of unions has dency who saw the military as a petri internal real-cost growth of 5%-7% a
data), a net $8.5 billion in adjusted gross in- been to enact a graduated income tax. The afflu- dish for social change and was will- year (as reported by the Defense
come left New Jersey while $6.2 billion poured ent know they’ll get soaked eventually and are ing to cripple the national defense to Business Board) and the gross mis-
out of Connecticut—4% of the latter state’s total seeking shelter. Top earners made up 47% of Illi- that end. match between and among strategy
income. Illinois lost $13.6 billion. During that nois’s income flight in 2015 compared to 33% four Yes, the officers and senior NCOs and operational requirements, force
period, Florida with no income tax gained $39.3 years earlier. Income taxes from the 306 Cook received training, but it was refo- levels and budgets.
billion in AGI. (See the nearby table.) County denizens who decamped to Palm Beach cused from bridge command and con- A hollow force won’t be ready or
Not surprisingly, income flows down the tax in 2015 with $258 million of income could have trol to diversity training. Now they sufficiently trained and equipped to
can’t run a ship but are fully profi- carry out its duties or to win wars if
gradient. In 2015 New York (where the com- paid 200 teacher salaries. Alas. cient in diversity issues. Perhaps with needed. This is what happened after
bined state and local top rate is 12.7%) lost a net This millionaires’ diaspora has harmed in- a new commander in chief we’ll get Vietnam.
$850 million in AGI to New Jersey (8.97%) and come and economic growth. Real GDP between our priorities back in line with the This is not the fault of the Penta-
Connecticut (6.99%). At the same time, the Gar- 2011 and 2016 grew annually at a paltry 0.2% brick and mortar of national defense. gon. The current budgetary-oversight
den State gave up $335 million to Pennsylvania in Connecticut, 1% in Illinois and 1.2% in New RANDY WEST process is Frankensteinian and is also
(3.07%), and $60 million left Connecticut for the Jersey, according to the Bureau of Economic San Diego at fault. The nation has three choices:
state formerly known Analysis. These states Mr. West flew 127 combat missions ignore this reality, spend more
as Taxachusetts (5.1%). were the slowest over North Vietnam from the USS money or balance the strategy re-
Taxpayers from New State Taxpayer Flight growing in their re- Kitty Hawk. quirements, force levels and budget
York, New Jersey and Gross migration (in billions of dollars) into and out of spective geographic imbalance. If we defer or ignore this
Regardless of one’s view of the looming reality, a hollow force will be
Connecticut escaped to select states in adjusted gross income, as reported on regions, though other
sentencing of former Sgt. Bowe Berg- inevitable.
Florida with $3.2 bil- individual income tax returns high tax states in the dahl for desertion, the state of our HARLAN ULLMAN
lion in income. Florida Northeast didn’t fare military is at far greater peril than Washington
New Jersey Connecticut Illinois Florida
Gov. Rick Scott ought to much better.
pay these states a com- 2012 -$1.7 -$1.8 -$3.3 $9.0 As a result, revenues
mission. 2013 -1.7 -1.8 -3.9 8.7 have repeatedly fallen
The affluent account
for a disproportionate 2014 -2.5 -1.3 -3.0 10.1
short of projections in
New Jersey, Illinois and
President Must ‘Faithfully Execute’ the Laws
share of the income mi- 2015 -2.6 -1.3 -3.4 11.5 Connecticut while bud- William Galston’s “Donald Trump’s could recall any instance of him simi-
gration. For instance, get deficits have bal- Belated Civics Lesson” (Politics & larly lecturing Barack Obama regard-
individuals reporting
Source: IRS THE WALL STREET JOURNAL
looned. Democratic Ideas, Nov. 8) suggests that because ing his constitutional abuses such as
Congress created the position of at- spending unauthorized funds on
more than $200,000 in AGI in 2015 made up lawmakers have cut public services and funds
torney general, the president needs to ObamaCare subsidies or mobilizing
57% of the income outflow from Connecticut to local governments, which have responded by keep his hands off the Justice Depart- Justice and the IRS against his politi-
(compared to 48% of total state AGI) and 57% raising property taxes. ment and refrain from providing di- cal foes.
of the inflow to Florida. The Tax Foundation says New Jersey, Con- rection to it. Based on this logic, the BILL DOMOE
Snowbird flight isn’t new, but migration has necticut, Vermont, New York and Illinois have president should stay out of foreign Grafton, Wis.
accelerated as taxes have increased. Income the highest property taxes in the country. Over affairs, have nothing to do with de-
outflow from Connecticut averaged $500 mil- the last two years, the average Chicago home- fense and keep his hands off every The president’s suggestions might
lion between 2003 and 2007. Then in 2009 GOP owner’s property taxes have risen by roughly cabinet department since all of these be driven by politics, but the same
Gov. Jodi Rell raised the top tax rate to 6.5% $1,000. Higher property taxes hit middle-class are creations of Congress. The prob- could be true of any investigation. If
from 5%, which her Democratic successor Dan- earners especially hard and are another incen- lem with Mr. Galston’s fictional inde- there was evidence of a conspiracy to
pendent Justice Department is that violate pollution laws, would a presi-
nel Malloy lifted a few years later to 6.7% and tive to leave a state.
the president is elected and therefore dent’s order to investigate it be im-
again two years ago to 6.99%. AGI outflow be- i i i
accountable to the people. Mr. Gal- proper if he did it to curry favor with
tween 2012 and 2015 averaged $1.6 billion. As these state laboratories of Democratic ston’s independent attorney general, his base?
In 2004 Democrats raised New Jersey’s top governance show, dunning the rich ultimately secretary of defense and secretary of JAMES DUEHOLM
rate on individuals earning more than $500,000 hurts people of all incomes by repressing the state wouldn’t be accountable to any- Washington
to 8.97% from 6.37%. Between 2012 and 2015, an- growth needed to create jobs, boost wages and one. They are not elected. Mr. Galston
nual income outflow from New Jersey averaged raise government revenues that fund public ser- effectively wants a new and unac- Mr. Galston argues that assigning
$2.1 billion—twice as much as between 2000 and vices. If the Republican House and Senate tax- countable branch of government but jail time for offenses committed dur-
2003 after adjusting for inflation. reform bills follow through with eliminating all ignores Article II, Section 3 of the ing an election campaign is only
Republican Gov. Chris Christie blocked his or part of the state and local tax deduction, pro- Constitution which says the president “what autocrats do.” But the Water-
Democratic legislature’s attempts to reimpose gressive states will have an even harder time “shall take Care that the Laws be gate break-in was just such a crime.
faithfully executed.” How does the Many went to jail. Nothing autocratic
a millionaire’s tax that lapsed in 2009. But Dem- hiding the damage. They should be the next
president ensure laws are faithfully about it.
ocratic Governor-elect won the election this candidates for reform. executed if he doesn’t have access to WILLIAM D. EISENHOWER
the Justice Department? Beaumont, Calif.

Oh, No, a Pharma Exec We’ve elected a president to run

the country. He is accountable to us at

O
ne reason men and women in business
are reluctant to go to Washington is the
reception accorded Alex Azar Monday
after President Trump said he will nominate the
former Eli Lilly & Co. executive to lead the Health
and Human Services Department. Mr. Azar was
immediately criticized for, well, knowing too
much about health care.
“It’s a pharma fox to run the HHS henhouse,”
a talking head from Public Citizen told the Wash-
ington Post, which headlined the same piece
“Trump’s pick to lower drug prices is a former
pharma executive who raised them.” It seems
that when Mr. Azar was president, Lilly “doubled
the U.S. list price of its top-selling insulin drug.”
Well, sure, pharma executives are paid by
shareholders to make money selling drugs. Prof-
its drive drug innovation, so there wouldn’t be
better treatments without profits, which some-
times requires raising prices. Pardon the reality
of market economics.
No doubt Mr. Azar’s record will be parsed by
Senate Democrats, but it’s always possible that
knowing the industry makes Mr. Azar the right
man to regulate it. He can’t do any worse than
the Obama Administration, which cut a political
deal with Big Pharma on drug pricing to win its
support for ObamaCare. Mr. Azar has been a
critic of ObamaCare, which may be the real ex-
planation for the instant opposition.
election time and to Congress through
appropriations, legislation and possi-
ble impeachment. Let him do his job.
DOUG SCHENK
Little River, S.C.
I’d be more inclined to thoughtfully
consider Mr. Galston’s argument if I
Hoover Was a Visionary
Regarding Latin America
Edward Kosner, in his review (“A
Wonder Boy on the Wrong Side Of
History,” Books, Oct. 28) of Kenneth
Whyte’s “Hoover,” a new biography of
Herbert Hoover, neglects to make any
mention of the fact that it was Hoo-
Seoul’s Position on Thaad:
Threat to U.S. Troops There
Your editorial “South Korea’s Bow
to Beijing” (Nov. 8) could be ex-
panded to note that the deployment
of the U.S.-made Terminal High-Alti-
tude Air Defense (Thaad) missile sys-
tem also has, in addition to deter-
ring or protecting from attacks by
North Korea, the critical role of pro-
tecting the 30,000 U.S. service mem-
bers stationed there with their fami-
lies and the equipment and supplies
which support them. South Korea
may decide for itself the amount of
protection to provide for its popula-
tion. It is another matter to allow

The Menu Label Cops Win ver who began to repair U.S. relations
with Latin America which is usually
South Korea to decide on the amount
of protection given the forces the

T
credited to his successor Franklin U.S. is dedicating to Korea’s protec-
he Trump Administration is knocking number of pepperonis on a pizza depends on the Roosevelt as part of the Good Neigh- tion. We, on the other hand, have an
down stupid or destructive regulations pie’s size and whether someone also adds onions bor Policy. overriding interest in protecting our
at a fast clip, though one of the more ri- and sausage. Taking advantage of the period be- own.
diculous Obama-era directives FDA’s guidance suggests tween his election in November 1928 If South Korea has priorities that
survives: Last week the Food How many calories are listing calorie ranges for every and his inauguration the following increase the exposure of U.S. forces
and Drug Administration is- topping. For instance: 45-60 March, Hoover embarked on a boat and their families to a less than maxi-
sued draft guidance on a long-
in a pizza slice? The calories for bacon, depending trip around South America where he mum degree, we should remove our
FDA demands to know. on the pizza’s size. The pic- experienced the furious hostility that forces and station them to a country
delayed rule for calorie boards
decades of U.S. invasions and inter- that more appreciates our protection,
at chain restaurants, and Con- tured examples then feature ventions throughout the Caribbean or we should bring them home.
gress ought to intervene. an asterisk that denotes the Basin had engendered. Hoover as- MICHAEL P. GRAFF
FDA released guidance for posting calorie estimate is based on how many calories are tutely understood how this anti- New York
disclosures at restaurants with more than 20 added to a one-topping pizza. This is hardly Americanism could negatively impact
locations, and the ostensible point is to help clear for customers. U.S. companies doing business in the
folks choose healthier foods. The regulations, The guidance allows some flexibility on ki- region. Hence, as president, Hoover Pepper ...
which are an outgrowth of the 2010 Affordable osks and computer tablets, provided stores ended the U.S. occupation of Nicara-
Care Act, are set to hit in May 2018 after years don’t have other “menu boards,” with a long de- gua and began the process for doing
And Salt
of delays. Most recently, the Trump Administra- lineation on what constitutes a menu board. so in Haiti. He also didn’t intervene THE WALL STREET JOURNAL

tion hit pause on the rules to solicit more feed- This is a waste of time. Dominos already runs in Cuban internal affairs, despite the
existence of the Platt Amendment,
back, but it appears the agency is pressing on an online Cal-O-Meter that allows customers to
and effectively abrogated Teddy Roo-
with small clarifications. tally up the damage of the Superbowl feast, and sevelt’s Corollary to the Monroe Doc-
The reason some restaurants have spent most customers order pizza online and not in trine. He would likely have done
years fighting these rules is not because execu- stores. much more had he not been stymied
tives lay awake at night plotting how to make Congress for years has sat on a bill that by the unfolding economic disaster
Americans obese. It’s because the rules are loco. would allow more flexibility on displaying in- most often associated with his one-
For instance: There was confusion over whether formation online, with more legal clarity. The term presidency.
marketing material counted as a menu board rules are so vague that companies could face a THOMAS ANDREW O’KEEFE
and thus required calorie disclosures. crush of lawsuits, which will be abetted by this New York
FDA’s guidance says a flyer generally isn’t a “nonbinding” FDA guidance.
menu—what a relief—but there are other prob- FDA has more pressing priorities than micro- Letters intended for publication should
lems. Take pizza companies, which have to dis- managing pizza companies, and perhaps Com- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
play per slice ranges or the number for the en- missioner Scott Gottlieb wants to wrap up this or emailed to wsj.ltrs@wsj.com. Please
tire pie. Calories vary based on what you order— fight and move on. But these rules carry real include your city and state. All letters
the barbarians who put pineapple on pizza are costs, and sanity from Congress could move are subject to editing, and unpublished “These financials look right.
consuming fewer calories than someone who millions of compliance dollars back into more letters can be neither acknowledged nor They smell right – they’re either
returned.
chooses pepperoni and extra cheese. But the productive uses. right or very clever.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | A21

OPINION

Higher Education’s Deeper Sickness

By John M. Ellis left-of-center as right-of-center fac- of opposing voices. It was not to ad-

T
ulty. Various studies document the vance higher education, for that
he sheer public spectacle rise of that ratio to 5 to 1 at the cen- must involve learning to evaluate
of near-riots has forced tury’s end, and to 8 to 1 a decade competing ideas, to analyze the pros
some college administra- later, until in 2016 Mitchell Lang- and cons of rival arguments and
tors to take a stand for bert, Dan Klein, and Tony Quain find concepts. Shutting down all but one
free expression and pro- it in the region of 10 to 1 and still viewpoint is done to achieve the op-
vide massive police protection when rising. posite: to pre-empt analysis and un-
controversial speakers like Ben Sha- Even these figures understate the derstanding. Only in the absence of
piro come to campus. But when Mr. matter. The overall campus figures competing ideas can the radical sect
Shapiro leaves, the conditions that include professional schools and sci- that now controls so much of the
necessitated those extraordinary ence, technology, business and campuses hope to thrive and in-
mathematics departments. In most crease its numbers, because it can’t

GEORGE FREY/GETTY IMAGES

Political imbalance causes
intellectual degradation.
Riots against free speech
are only a symptom.
measures are still there. Adminis-
trators will keep having to choose
between censoring moderate-to-
conservative speakers, exposing
their students to the threat of vio-
lence, and spending hundreds of
thousands of dollars on every
speaker. It’s an expensive treatment
that provides only momentary relief
from a symptom.
What then is the disease? We are
now close to the end of a half-cen-
tury process by which the campuses
have been emptied of centrist and
right-of-center voices. Many schol-
ars have studied the political alle-
giances of the faculty during this
time. There have been some differ-
ences of opinion about methodology,
but the main outline is not in doubt.
In 1969 the Carnegie Commission on
Higher Education found that there
were overall about twice as many
humanities and social-science de-
partments—especially those central
to a liberal education, such as his-
tory, English and political science—
the share of left-of-center faculty al-
ready approaches 100%.
The imbalance is not only a ques-
tion of numbers. Well-balanced op-
posing views act as a corrective for
each other: The weaker arguments of
one side are pounced on and picked
off by the other. Both remain conse-
quently healthier and more intellec-
tually viable. But intellectual domi-
nance promotes stupidity. As one
side becomes numerically stronger,
its discipline weakens. The greater
the imbalance between the two sides,
the more incoherent and irrational
the majority will become.
What we are now seeing on the
campuses illustrates this general
principle perfectly. The nearly com-
plete exclusion of one side has led to
complete irrationality on the other.
With almost no intellectual oppo-
nents remaining, campus radicals
have lost the ability to engage with
arguments and resort instead to the
lazy alternative of name-calling: Op-
ponents are all “fascists,” “racists”
or “white supremacists.”
Protesting Ben Shapiro at the University of Utah, Sept. 27.
In a state of balance between the
two sides, leadership flows naturally
to those better able to make the
case for their side against the other.
That takes knowledge and skill. But
when one side has the field to itself,
leadership flows instead to those
who make the most uncompromising
and therefore intellectually least de-
fensible case, one that rouses follow-
ers to enthusiasm but can’t stand up
to scrutiny. Extremism and dema-
goguery win out. Physical violence is
the endpoint of this intellectual de-
cay—the stage at which academic
thought and indeed higher education
have ceased to exist.
That is the condition that remains
after Mr. Shapiro and the legions of
police have left campus: More than
half of the spectrum of political and
social ideas has been banished from
the classrooms, and what remains
has degenerated as a result. The
treatment of visiting speakers calls
attention to that condition but is not
itself the problem. No matter how
much money is spent on security, no
matter how many statements sup-
porting free speech are released, the
underlying disease continues to me-
tastasize.
During the long period in which
the campus radical left was cleans-
ing the campuses of opposition, it
insisted that wasn’t what it was do-
ing. Those denials have suddenly
been reversed. The exclusion of any
last trace of contrary opinion is not
only acknowledged but affirmed.
Students and faculty even demand
“safe spaces” where there is no dan-
ger that they will be exposed to any
contrary beliefs.
It is important to understand why
the radical left cleared the campuses
survive open debate and analysis,
and its adherents know it.
Given that treating only symp-
toms is ultimately pointless, is there
any cure for the disease? The radical
left won’t voluntarily give up the
stranglehold on higher education
that it has worked unrelentingly to
gain. But that can’t be the end of the
matter: The public pays huge sums,
both through tuition and taxation, to
educate young people, and except in
STEM subjects most of that money
is being wasted. Those who pay the
bills have the power to stop this
abuse of higher education if they or-
ganize themselves effectively.
Colleges need to be accredited;
state universities answer to govern-
ing boards. Accrediting agencies and
governing boards are created
through a political process. What if
voters were to insist that those agen-
cies demand answers to some ele-
mentary questions? For example:
How can a department of political
science that excludes half the spec-
trum of viable political ideas be com-
petent to offer degrees in the field?
How can a history curriculum be
taught competently when only one
extremist attitude to social and polit-
ical questions is present in a depart-
ment? How can a campus humanities

The Perversity of the FCC’s Ownership Limits faculty with the same limitation
teach competently? How can these
extraordinary deficiencies deserve ei-
By Preston Padden a “compelling public interest show- video and other content providers— must not—be based on political ther accreditation, or support by

T
he FCC is reconsidering some
of its rules on the ownership of
TV stations. These regulations
date back to a bygone era of scar-
city—predating cable television, the
internet, video downloads, streaming,
social media and other innovations
that give consumers an array of com-
petitive options.
I have friends who believe that the
public interest requires the FCC to
keep its TV ownership rules. But my
personal experience in the industry
for over 40 years has shown me that
For decades, rules meant
to promote diversity stood
in the way of a fourth
major television network.
TV ownership limits intended to en-
hance diversity often stifle competi-
tion and inhibit innovation and
growth in the industry.
My first job, in 1973, was at Metro-
media Inc., a company that had
emerged out of the ashes of the Du-
Mont Television Network. In the late
1940s, television pioneer Allen Du-
Mont warned the FCC that it must as-
sign at least four VHF stations to each
major market to ensure the survival
of the four television networks. The
FCC ignored his advice and proved
DuMont right—his network folded,
leaving the nation for decades with
only three commercial TV networks.
Reading this history was my first les-
son in how well-meaning FCC rules
can have unintended consequences
for competition and diversity.
As the DuMont Network was going
out of business, it spun off to share-
holders the TV stations it owned in
New York and in Washington. Busi-
nessman John Kluge acquired de
facto control of the new company and
named it Metromedia. Kluge strug-
gled to create a fourth network. He
aggressively sought to expand Metro-
media’s portfolio of owned television
stations—the indispensable founda-
tion of any network. But his efforts
were thwarted by the FCC’s own
rules limiting ownership. One partic-
ularly prominent obstacle was the
FCC’s “top 50” policy, which required
ing” to own more than three stations, that question is more compelling views. And for all we know, the next state and federal funds?
or more than two VHF stations, any- than ever. And at a time of escalating beneficiary of deregulation could The campus radical monopoly on
where in the top 50 markets. Of TV costs and cord-cutting, enabling have liberal views. That is what free political ideas amounts to the shut-
course, the three entrenched net- the creation of additional free over- markets, competition and diversity ting down of liberal higher educa-
works owned more than that, but the-air programming would be a are all about. My experience with the tion as we have known it. That, not
they were grandfathered in. great public service. television ownership rules leaves no the increasingly frequent violent
The first decade of my life in the Some oppose repeal of the TV sta- doubt that consumers will be well flare-ups, is the real crisis.
industry was consumed drafting and tion ownership rules because one served by their repeal.
advocating for waivers of the FCC’s beneficiary of repeal might be Sin- Mr. Ellis is a professor emeritus
TV station ownership limits and its clair Broadcasting Co., which has Mr. Padden is a consultant and of German literature at the Univer-
top 50 policy to advance Metrome- conservative views. Those critics former media executive. This article sity of California, Santa Cruz, and
dia’s quest for a fourth network. De- would be the first to insist that fed- is adapted from an Aug. 28 blog post chairman of the California Associa-
spite spending millions of dollars on eral licensing decisions cannot— for Broadcasting & Cable. tion of Scholars.
innovative programming, Metrome-
dia could not overcome the handicap
imposed by the FCC’s TV station
ownership rules. Kluge failed to fulfill
his objective—and the FCC’s—of cre-
ating a fourth network.
So in 1985, Kluge sold his TV sta-
tions to Rupert Murdoch, who also
acquired the then-bankrupt 20th
Century Fox film studio. Together
with Barry Diller and Jamie Kellner, 60 YEARS OF ADVENTURE
Mr. Murdoch set out to create the
long-sought fourth network. Again, AND DISCOVERY
FCC rules got in the way. On behalf of
Fox, it fell to me to seek waivers of
station ownership limits and other
rules intended to promote diversity,
such as the ban on cross-ownership
of newspapers and the Financial In-
terest and Syndication Rules. The ef-
fort to create meaningful diversity
required the FCC to waive its rules
that were intended to create diver-
sity. (Mr. Murdoch is executive chair-
man of News Corp, which publishes
this newspaper.)
Because the benefits of granting
the Fox waiver requests were so obvi-
ous, even supporters of TV ownership
regulation such as Sen. Ted Kennedy
(D., Mass.), Gov. Mario Cuomo (D.,
N.Y.) and Sen. Dan Inouye (D., Hawaii)
supported our waiver requests. Fox
eventually succeeded in becoming the
fourth major commercial network. But
it is perverse to keep in place rules in-
tended to promote competition and
diversity if they have to be waived in
order to achieve that objective.
I offer this history because I lived
it. On many occasions I thought: Why
can’t the FCC see that these station-
ownership restrictions are preventing
the creation of meaningful entities of
scale that could bring to viewers the
benefits of greater competition and
diversity? In today’s world—with
hundreds of cable and satellite net-
works, the internet and myriad audio,

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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
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2584.84 À 0.10% S&P FIN À 0.18%
Google FacesRegulatoryFire inU.S.
Missouri probes giant,
which had avoided
scrutiny at home
despite inquiry abroad
BY JACK NICAS
Google is facing a new front
in its regulatory battles after
Missouri’s attorney general
launched a broad investigation
into whether the internet gi-
ant’s business practices violate
STREETWISE
By James Mackintosh
Small IPOs
Are Dying.
That’s Good
The U.S.
stock market is
eating itself,
and nothing
could be better
for sharehold-
ers. There has been a decade-
long drought in initial public
offerings, fewer companies are
listed now than four decades
ago and companies are buying
back as many or more shares
than they sell.
The shrinking number of
stocks has prompted a lot of
hand-wringing among econo-
mists, who worry that compa-
nies are deterred from access-
ing capital markets by short-
termist shareholders and
aren’t investing enough. The
alternative theory is much
more upbeat: Markets have be-
come more efficient, and
America is awash in capital.
There is a genuine problem of
reduced competition, but that
isn’t the fault of the capital
markets.
Mentioning the words “effi-
cient” and “markets” in the
same sentence has been a
route to ridicule since the fi-
nancial crisis. But when it
comes to smaller companies, it
seems founders and CEOs have
indeed found a way to elimi-
nate one of the market’s best-
known anomalies, known as
the small-capitalization effect.
Small-cap stocks used to
beat the market pretty reliably.
Economists argued over
whether this was a reward for
the extra risk they carried or
was a result of investors being
unwilling to spend the time
and effort to research tiny
companies.
Either way, it meant small-
cap stock prices were on aver-
Please see STREET page B9
ANDREW HARRER/BLOOMBERG NEWS
High-profile litigator David Boies
TECHNOLOGY: SOFTBANK PURSUES GRAND VISION WITH UBER DEAL B4
* * * *
S&P IT g 0.01%
the state’s consumer-protec-
tion and antitrust laws.
Missouri Attorney General
Josh Hawley on Monday said he
issued an investigative sub-
poena to probe Google’s collec-
tion of user data, its use of
other sites’ content, and its al-
leged manipulation of search re-
sults to favor its own services.
Google, a unit of Alphabet
Inc., has so far skirted the scru-
tiny in the U.S. that it has faced
in Europe, where regulators lev-
ied a record $2.7 billion fine
Yield-Seeking Investors Hunger for Egypt’s Government Debt
A Cairo vegetable market
Investors snapped up
Egypt’s local currency
bonds after its pound
lost 50% of its value and
the central bank sharply
raised interest rates.
See article on B9
Source: Tullett Prebon (currency); eVestment (bonds, pound); FactSet (rate)
New U.S. Boss Must Refresh Bud
BY JENNIFER MALONEY
Anheuser-Busch InBev NV
is shuffling the leadership of its
North American business, put-
ting another company veteran
from Brazil in charge of the
largest U.S. brewer as it strug-
gles to end a long slump in sales
of Budweiser and Bud Light.
Michel Doukeris, chief sales
officer for the global brewer,
will take the helm of the U.S.
subsidiary, Anheuser-Busch,
on Jan. 1, succeeding João
Weinstein Directors Dispute Boies Role
BY KEACH HAGEY
Star lawyer David Boies
fended off concerns of Wein-
stein Co. directors about Har-
vey Weinstein’s alleged sexual
harassment and assault without
alerting them he was in busi-
ness with Weinstein Co., ac-
cording to two board members.
Weinstein Co. independent
directors Tarak Ben Ammar, an
international movie producer,
and Lance Maerov, executive
vice president at ad-agency gi-
ant WPP, said in interviews
they didn’t know Mr. Boies had
a film-business relationship
with the company while he was
THE WALL STREET JOURNAL.
DJ TRANS À 0.18% WSJ $ IDX À 0.17%
against Google in June for alleg-
edly favoring its shopping ads
in its search results. Mr. Hawley
said his investigation was in
part prompted by the European
fine. “We’re concerned they’re
engaged in a similar pattern of
behavior in the United States,”
he told reporters.
Google said in a statement:
“We have not yet received the
subpoena; however, we have
strong privacy protections in
place for our users and con-
tinue to operate in a highly
How many Egyptian
pounds a dollar buys
8 Egyptian pounds
10
12 Scale inverted to
14 show weakening
Egyptian pound
16
18
20
2016 ’17
PHOTO: MOHAMED ABD EL GHANY/REUTERS
Castro Neves, who has run the
division since 2015. Mr. Castro
Neves, 50 years old, is leaving
after 22 years at the company
“to pursue other opportuni-
ties,” AB InBev said.
The shake-up includes a
handful of other executive
changes, including the promo-
tion of a PepsiCo Inc. alum
and former U.S. intelligence
officer, Brendan Whitworth, to
vice president of sales for
North America, succeeding
Brazilian Alex Medicis.
negotiating a contract on Mr.
Weinstein’s behalf in 2015.
Mr. Boies has invested in at
least three films with Weinstein
Co., according to people famil-
iar with the matter, one of
which was distributed by the
company last year after the
film ran into financial troubles.
In a statement, Mr. Boies
said “the board was aware of
the investments.” A person fa-
miliar with the matter said Mr.
Boies’s investment in the film
that was distributed last year
amid contract talks was listed
in materials given to the board,
and was reported in the trade
press.
LIBOR 3M 1.416
competitive and dynamic envi-
ronment.” It has disputed Eu-
ropean regulators’ charges.
The Federal Trade Commis-
sion ended a nearly two-year
antitrust investigation into
Google in early 2013 after the
company agreed to make some
changes to its business practices
for five years—a period that is
about to expire. In the U.S.,
some federal lawmakers such as
Sen. Al Franken (D., Minn.) have
called for new probes into the
company’s power.
Percentage of local-currency
bond managers with exposure
to Egyptian debt and the pound
60% Exposure to
50 Egyptian bonds
Exposure to
40 Egyptian pound
30
20
10
0 0 0 8
2016 ’17
AB InBev’s sales in the U.S.
have fallen as Americans shift
away from domestic lagers to-
ward craft beers, Mexican im-
ports, wine and spirits. The
company’s share of the U.S.
beer market, its largest, fell to
44.1% in 2016 from 50.6% in
2008, according to research
firm Euromonitor Interna-
tional. That slide has contin-
ued this year, especially for its
biggest seller, Bud Light.
The management changes
mark a new phase for the
Mr. Ben Ammar said the
board was presented the
names, directors and budgets of
the films Mr. Weinstein was
working on during the contract
negotiations, but “I have no
recollection that they listed Da-
vid Boies as the producer, espe-
cially when you have 50 mov-
ies.”
“Had we known, we would
have immediately said to David
Boies, ‘You can’t negotiate Har-
vey’s contract,’” Mr. Ben Am-
mar said, calling it a conflict of
interest. Mr. Boies in his state-
ment said it wasn’t a conflict.
Legal ethics expert Stephen
Gillers of New York University
Tuesday, November 14, 2017 | B1
NIKKEI (Midday) 22441.24 À 0.27%
Mr. Hawley said the FTC
went too easy on Google. “That
seemed to me to be short even
of a slap on the wrist. Now this
is why I think there needs to be
a fuller inquiry,” he said in an
interview. “I don’t see a lot of
action coming out of Washing-
ton. I don’t see a lot of action
coming out of the FTC.…So I
think that it’s important that
some law-enforcement agency
actually steps forward.”
The FTC pointed to past
Please see GOOGLE page B2
Egypt’s overnight deposit rate
20%
18
16
14
12
10
2016 ’17
THE WALL STREET JOURNAL.
company’s U.S. operations,
said Carlos Brito, chief execu-
tive of the Belgium-based be-
hemoth. The first phase, after
InBev’s 2008 takeover of An-
heuser-Busch, was aimed at
cutting costs and paying off
debt. The second focused on
expanding the portfolio with
craft beers and growing
higher-end brands such as
Stella Artois and Michelob Ul-
tra, Mr. Brito said.
“Now, we’re going to have a
Please see BUD page B2
School of Law agrees with Mr.
Boies. “I don’t think he had a
duty to tell the board that he
had this investment, because I
don’t see that the board, as the
other side of the negotiation
and not a client, had any right
to know that,” Mr. Gillers said.
Some of the movie dealings
were happening as Mr. Boies
fought to keep the company’s
board from accessing the exec-
utive’s personnel file while
Weinstein directors were grow-
ing concerned about allegations
of sexual assault that appeared
in the media in the spring of
2015, and other alleged bad be-
Please see BOIES page B2
See more at WSJMarkets.com
Qualcomm
Rebuffs
Bid From
Broadcom
BY TED GREENWALD
Qualcomm Inc. rejected
Broadcom Ltd.’s unsolicited
$105 billion offer, setting up a
potentially hostile showdown
between two giants of the chip
industry over what would be
the biggest technology take-
over ever.
A combination of the two
would create a huge company
whose chips manage commu-
nications for consumer devices
and appliances, phone-service
providers and data centers.
In a statement Monday,
Qualcomm’s board said the of-
fer, which Broadcom submit-
ted last week, dramatically un-
dervalues the company and
comes with significant regula-
tory uncertainty. Broadcom
said it remains committed to
the deal.
With Qualcomm’s rejection
of Broadcom’s bid, both com-
panies are under pressure to
press their agendas as quickly
as possible. The rejection
could lead to a higher bid
from Broadcom, and it sets the
stage for a possibly drawn-out
struggle for control of the
Qualcomm board.
Broadcom could try to stack
that board with directors sym-
pathetic to its goal. Broadcom
has a few weeks to meet a
deadline for submitting its
slate of nominees and a few
months to persuade Qual-
comm shareholders to vote for
them before the likely date of
its next annual stockholder
meeting, according to a person
familiar with the matter.
Qualcomm, for its part, is
under pressure to close its ac-
quisition, announced late last
year, of automotive chip
leader NXP Semiconductors
NV. That deal could add
enough per-share earnings to
persuade investors that its
value exceeds Broadcom’s bid,
some analysts say.
Broadcom’s pursuit also
adds pressure on Qualcomm to
settle its differences with Ap-
ple Inc. over patent royalty
fees. The conflict threatens to
hold up billions in annual roy-
alties revenues, and it risks
emboldening other customers
and licensees to follow Apple’s
lead.
— Cara Lombardo
contributed to this article.
INSIDE
BITCOIN
SINKS 25% IN
LATEST SWING
CURRENCIES, B10
PRICES
OF USED CARS
HOLD FIRM
AUTOS, B5
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Tuesday, November 14, 2017 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A
Airbus..........................B3
Alaska Gasline
Development...........B11
Alphabet......................B1
Altice USA..................A6
Anheuser-Busch InBev
.....................................B1
B Relativity Media.........B2
Baker Hughes...........A13
Bank of New York
Mellon.......................B9
Barclays.......................B5
BB&T ........................... A6
Boeing ......................... B3
Bombardier..................B3
Broadcom.............B1,B10
Brookfield Property
Partners....................B3
Buffalo Wild Wings....B5
C Mattel........................B10
Cboe Global Markets B10
Cheniere Energy........B11
Citigroup......................B9
CME Group................B10
CVS Health..................B4
D O-P
Delta Air Lines ........... B3
Didi Chuxing Technology
.....................................B4
INDEX TO PEOPLE
A Garden, Ed ................ A13
Alsaadi, Nawar ........... R5
Ammar, Tarak Ben......B1
B Peterffy, Thomas......B10
Barrineau, Jim............B9
Boies, David................B1
Brito, Carlos................B1
C Heckman, Dan...........B10
Castro Neves, João.....B1
E
Eli Lilly........................A2
Embraer.......................B3
Euromonitor
International.............B1
F Q
Ford Motor..................B5
G R
General Electric
......................A1,B10,B11
GGP..............................B3
Goldman Sachs Group B5
H Snap............................A6
Hasbro.......................B10
J SolarWorld Americas . R6
JPMorgan Chase.........B9
M played with Mr. Weinstein have
Marcato Capital
Management.............B5
Microsoft.....................B2
Mitsubishi Motors......B4
N
Nissan Motor..............B4
Novartis.......................B4
Oracle .......................... B4
Otsuka Pharmaceutical
.....................................B4
Gibbons, Thomas........B9
Gillers, Stephen..........B1
Goeler, Andy ............... B2
Gordon, Kate...............R5
Goyal, Anil...................B5
H
Hallam, Roger...........B11
I S
PepsiCo........................B1
PNC Financial Services
Group ........................ A6
Proteus Digital Health
.....................................B4
Qualcomm............B1,B10
Renault........................B4
Roark Capital Group...B5
S
SoftBank Group..........B4
Sullivan & Cromwell...B2
Suniva..........................R6
SunTrust Banks..........A6
T
Trian Fund Management
...................................A13
Tyson Foods................B5
U documents.
Uber Technologies ...... B4
U.S. Bancorp...............A6
W
Weinstein....................B1
Z directors, and Mr. Weinstein’s
Zions Bancorp.............A6
Mohr, Patrick ............ B11
P pany’s five independent board
Patel, Viraj................B11
Prime, Denise ............. B9
R ees had previously lodged com-
Reback, Gary...............B2
Ren, Zhiwei...............B10
BOIES
Continued from the prior page
havior, according to documents
reviewed by The Wall Street
Journal.
The board fired Harvey
Weinstein Oct. 8 after media re-
ports included on-the-record
claims that Mr. Weinstein ha-
rassed or assaulted actresses or
employees. Through his spokes-
woman, Mr. Weinstein has de-
nied allegations of nonconsen-
sual sex.
The dual roles Mr. Boies
triggered questions from the
two directors about why the
lawyer fought so hard to keep
Mr. Weinstein’s personnel file
from them, as shown in the
After the scandal concerning
Mr. Weinstein surfaced, several
board members resigned, leav-
ing Messrs. Ben Ammar and
Maerov, the two independent
brother, Bob Weinstein, on the
board. Bob Weinstein didn’t re-
spond to a request for com-
ment.
In 2015, as Mr. Boies was ne-
gotiating Mr. Weinstein’s con-
tract with directors, the com-
members were receiving “nu-
merous credible reports from
company insiders that employ-
plaints against Mr. Weinstein,
including for sexual harass-
ment, intimidation and physical
assault,” according to an Aug.
questions about his expenses.
The inquiry intensified in the
spring of 2015 after Mr. Wein-
stein’s photo began appearing
in New York tabloids in connec-
tion with allegations that he
groped an Italian model, ac-
cording to the documents.
The directors pressed to re-
view Mr. Weinstein’s personnel
file, according to the docu-
ments the Journal reviewed.
Mr. Boies argued they shouldn’t
be allowed to see the file be-
cause they had been leaked to
the media in the past, a claim
the independent directors deny.
Mr. Boies said in his state-
ment that he had been articu-
lating Mr. Weinstein’s position
about the alleged leaks.
Mr. Boies pushed to have a
third party, Rodgin Cohen of
law firm Sullivan & Cromwell,
review the personnel file and
write a report to the board. The
directors agreed reluctantly af-
ter failing to obtain the file
themselves, the people familiar
with the matter say.
Mr. Cohen wrote on Sept. 4,
2015, in a letter reviewed by the
Journal, that based on his re-
view of the file “there are no
unresolved claims that could
result in liability to TWC or its
directors” and “no pending or
threatened litigation.”
The board voted to renew
Mr. Weinstein’s contract as co-
chairman in the fall of 2015.
Mr. Boies, who represented
Al Gore in the 2000 presiden-
tial-election recount and argued
for marriage equality before the
Supreme Court, invests in films
through the Boies/Schiller Film
Group, which he co-founded
with his law partner’s son, Zack
Schiller.
The most notable investment
by Boies/Schiller was a $20-
million share in the Natalie
Portman Western “Jane Got a
Gun,” which Weinstein Co. and
Relativity Media agreed in 2013
to distribute. After the much-
delayed project cycled through
talent and racked up costs, Rel-
ativity went bankrupt in the
summer of 2015.
Weinstein Co. agreed to give
the film a so-called service deal
in theaters in January 2016, ac-
cording to people familiar with
the deal. With a service deal, a
film’s producers give the dis-
tributor a percentage of the
box-office returns to get a film
onto movie screens, allowing
the producers to reap greater
revenues from selling the film
to foreign markets.
Weinstein released “Jane”
without much marketing, and
the film made just $1.5 million
in its opening weekend and $3
million overall—a poor perfor-
mance for a film that cost $25
million to produce.
Weinstein Co.’s decision to
release “Jane” this way came
shortly after Mr. Boies in 2015
secured a new contract for Mr.
Weinstein, the documents the
Journal reviewed show. In a
statement, Mr. Boies said the
Boies/Schiller Film Group is
still waiting to be paid by The
Weinstein Co. for the theatrical
run of “Jane.”
—Zolan Kanno-Youngs
contributed to this article.

WEINSTEIN COMPANY/EVERETT COLLECTION

Cohen, Rodgin.............B2
Cromer, Fred ............... B3
D Scharf, Charles............B9
Dehn, Jan....................B9
Doukeris, Michel.........B1
Dudley, Louise...........B11
Duterte, Rodrigo.........A8
E Maerov, Lance.............B1
Economides, Nicholas.B2
F-G
Flannery, John.....A1,B11
Santomassimo, Michael 6, 2015, letter to Mr. Boies from
Immelt, Jeffrey.A13,B11
.....................................B9 Philip Richter, a lawyer hired by
K
the independent directors, that
Kablawi, Hani..............B9 Seba, Tony...................R5
was reviewed by the Journal.
L Seshadri, Gautam.......B4 The company’s independent
La Salla, Francis ......... B9 Shea, Brian ................. B9 board members began a review
M Slattery, John.............B3 of Mr. Weinstein’s dealings in
Son, Masayoshi .......... B4 November 2014, after a number
Marinov, Valentin.....B11 W of his expenses raised ques-
McAlister, Kevin.........B3 Weinstein, Bob...........B2 tions, according to the docu-
McDonagh, Colm.........B9 Weinstein, Harvey......B1 ments. Mr. Weinstein’s spokes-
Medicis, Alex .............. B1 Whitworth, Brendan...B1 woman had no comment on the Boies/Schiller had a $20-million share in the Western ‘Jane Got a Gun’ starring Natalie Portman.

GOOGLE ering further action, a person

Continued from the prior page
comments from commission-
HONG JIANPENG/IMAGINECHINA/ASSOCIATED PRESS
familiar with the matter said.
Utah Attorney General Sean
Reyes and District of Columbia
Attorney General Karl Racine
last year called on the FTC to
ing the way, said New York Uni-
versity economics professor
Nicholas Economides. He pre-
dicted Missouri would try to re-
cruit other states if it seeks
charges. “Google is going to be a
would be a very unequal fight.”
The federal government’s anti-
trust case against Microsoft
Corp. in 2001 began with an in-
vestigation by the Texas attorney
general, said Gary Reback, a key

ers that stated its “exhaustive
investigation” into Google
found the company’s practices
weren’t “on balance, demon-
strably anticompetitive.”
Mr. Hawley, a 37-year-old
Republican lawyer who was
elected as Missouri’s attorney
general last year, announced
last month that he is running
for Democratic U.S. Sen. Claire
McCaskill’s seat in 2018.
Some critics and competi-
Michel Doukeris will take the reins at Anheuser-Busch Jan 1. tors of Google see state attor-
neys general as potentially the
reopen its antitrust investiga- significant case,” he said. “If it’s attorney who persuaded the Jus-
tion into Google. This year, going to be just Missouri, that tice Department to sue Microsoft.
when Mr. Reyes was a candi-
date for FTC chairman, Google
deployed Republican lobbyists
to dissuade Trump administra-
tion officials from naming him
to the post, according to peo-
How much is your
ple familiar with the matter.
Mr. Reyes said in an email
that the FTC never replied to his
broker charging you?
call for a new federal probe.
“We may have to take matters
into our own hands as state at-
torneys general on those and

BUD decline in Budweiser sales, most likely route to regulatory possibly other issues,” he said. US Margin Commission
even as it has moved aggres- action in the U.S. “In many ways, we can be more Loan Rates Rates
sively to expand Budweiser Mississippi Attorney Gen- effective investigating and if Comparison Comparison
distribution around the globe. eral Jim Hood has sued Google necessary, holding companies
Continued from the prior page Retail store sales of Bud several times, including in Jan- accountable at the state level.” Equity
more commercially minded per- Light, the No. 1 U.S. beer uary over its collection and use He declined to say whether his $300K Trades
son at the head of the business” brand by volume, fell 5.7% this of data on Mississippi public- office was investigating Google.
with a background in sales and year through Oct. 21, accord- school students who use its States usually team up to Interactive
marketing, Mr. Brito said in an ing to Nielsen data compiled services. Mr. Hood is looking prosecute large corporations
Brokers 2.32% 1 $2.34 2
interview. The new chief’s man- by Beer Marketer’s Insights. closely at other aspects of like Google, with bigger states
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Messrs. Doukeris and Brito
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The company is still digesting
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AB InBev has been unable
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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | B3

BUSINESS NEWS

Brookfield
Confirms
Its Offer
For GGP
BY CARA LOMBARDO

Brookfield Property Part-

ners LP confirmed it has made
a $14.8 billion offer Monday to

MICHAEL BUHOLZER/AGENCE FRANCE-PRESSE/GETTY IMAGES

buy the shares of mall owner
GGP Inc. that it doesn’t al-
ready own.
Brookfield offered to pay
$23 a share for the remaining
66% of GGP, half in cash and
half in equity, the company
said.
The Wall Street Journal
first reported Sunday that the
proposal had been submitted
to GGP’s board.
The proposal represents a
21% premium to GGP’s closing
price Nov. 6, before reports
were published about a possi- The Canadian aircraft maker’s single-aisle CSeries plane project has faced legal challenges from Boeing and Embraer over issues such as pricing and import tariffs.
ble deal between the two com-

Bombardier Deal Sparks Pushback

panies. GGP shares rose 6%
Monday, while Brookfield
shares slid 3%.
Some analysts said Monday
Brookfield appears to be open-
ing with a low bid. Analysts
from research firm Boenning &
Scattergood said that a bid
would have to be at least $30
a share to be successful, add-
ing that Brookfield’s offer
could prompt mall-centered
real-estate investment trust
Simon Property Group Inc. to
enter as a counter-bidder.
Brookfield said the transac-
tion would create a property
company with nearly $100 bil-
lion of real-estate assets and
annual net operating income
of about $5 billion.
Brookfield Property, which
is part of Brookfield Asset
Management Inc., owns or op-
erates office properties, retail
centers and multifamily hous-
ing units. GGP owns around
125 high-end retail centers
around the U.S.
GGP, formerly known as
General Growth Properties,
confirmed receipt of the offer
Monday and said it has
formed a special committee to
carefully review the proposal.
Tie-up with Airbus on
CSeries planes is met
with stepped-up
resistance from rivals
BY ROBERT WALL
DUBAI—Struggling Bom-
bardier Inc.’s move to give
Airbus SE control of its
CSeries plane project has
driven rivals to renew their
pledges to pursue legal com-
plaints against the Canadian
aircraft maker.
Both Boeing Co., which al-
ready had the CSeries in its
crosshairs before the involve-
ment of its chief rival, and
Brazil’s Embraer SA said this
weekend they would stick with
their legal challenges against
Bombardier’s program. Em-
braer also warned Bombardier
and Airbus against working on
the project before the deal had
won antitrust approval.
The stakes are high, with
the Airbus-Bombardier tie-up
seen by some as the biggest
shake-up of the commercial
jetliner business in 30 years.
Through the deal, Airbus
would gain majority control of
a joint venture building the
single-aisle CSeries—a strug-
gling program that the Euro-
pean company thinks could
have big potential. Airbus fore-
casts a market of about 6,000
planes and expects the CSeries
to win most of the deals in the
100- to 150-seat segment.
At the Dubai Air Show—the
first industrywide get-together
since the deal was announced
in October—tensions over the
project were on display.
Boeing has challenged Bom-
bardier’s pricing of the
CSeries, saying it was being
sold to Delta Air Lines Inc.
below cost, with its complaint
prompting U.S. authorities in
September to propose a 300%
import tariff on the plane.
In Dubai, Boeing’s commer-
cial airplanes chief, Kevin
McAllister, reiterated the U.S.
company’s objections, saying
the issue was one of “clear
price dumping.”
Fred Cromer, Bombardier’s
president for commercial air-
craft, said Boeing would strug-
gle to demonstrate it was
harmed, since the U.S. manu-
facturer doesn’t offer a plane
that competes with the 100-
seat CS100 that Delta is buying.
“We think that [proving
harm] is very challenging,” Mr.
Cromer said at the air show.
Bombardier has said it was
looking to assemble CSeries
planes at an Airbus facility in
Mobile, Ala., to circumvent the
tariffs if they stick.
Embraer was also resolute,
with the firm’s commercial air-
planes boss, John Slattery, say-
ing the Airbus deal wouldn’t
undermine Brazil’s World
Trade Organization challenge
of the CSeries program for al-
leged subsidies provided by
the Canadian government.
“The case will continue,” he
said in an interview at the air
show.
Bombardier’s Mr. Cromer
said the Canadian company
was “fully compliant” with
trade rules.
Mr. Slattery also said Em-
braer would be watching
closely to ensure Airbus offi-
cials don’t try to start selling
CSeries planes before competi-
tion regulators give the deal a
green-light. Antitrust approval
is expected in late 2018.
“Until antitrust immunity is
granted, the Airbus marketing
team cannot be involved in the
aircraft. That will be something
my team and I will be keeping
a close eye on,” he said.
Analysts say the Airbus
deal could be a big boost for
the CSeries because it brings
certainty to the future of a jet
series that has struggled to
land new orders amid con-
cerns about Bombardier’s fi-
nancial health.
Mr. Cromer said Bombar-
dier could work with Airbus in
a limited way before antitrust
approvals were in hand. The
two companies can jointly
plan how to build the CSeries
assembly facility in Mobile.
That would position them to
start construction once regula-
tory approvals are in place
and have the facility opera-
tional about a year later.
Under that schedule, CSeries
deliveries to Delta may be de-
layed until the new facility is
running, to try to avoid tariffs.
Mr. Cromer said Bombardier
would have to shuffle some de-
livery positions in 2018 to
other customers.
The aircraft maker fore-
casts 40 to 45 CSeries deliver-
ies in 2018.
Since Bombardier an-
nounced the deal with Airbus,
it said it had won a commit-
ment for up to 61 more
CSeries orders from a Euro-
pean customer. Mr. Cromer
wouldn’t identify the client,
but said interest in the plane
“continues to build.”

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© JPMorgan Chase & Co., November 2017
B4 | Tuesday, November 14, 2017
SoftBank Pushes Its Grand Vision Digital
Pill Wins
Masayoshi Son is
piecing together
network of ride-hailing
firms in key markets
BY MAYUMI NEGISHI
AND PHRED DVORAK
SoftBank Group Corp.’s bid
to take a stake of as much as
$10 billion in Uber Technolo-
gies Inc. is a high-stakes bet on
the future of the car industry.
SoftBank’s billionaire
founder, Masayoshi Son, aims
to build a global network of
ride-hailing companies with a
lock on important markets
that in the next 20 or 30 years
could control fleets of vehicles
and help dictate how people
move around, say people
briefed on his strategy.
To do that, the Japanese
tech-investment giant and a
new fund it runs have invested
billions of dollars in compa-
nies that dominate the busi-
ness in China, India and
Southeast Asia, as well as in
Uber’s biggest rival in Brazil.
Mr. Son took a step forward
with his plans to buy as much
as 14% of Uber on Sunday,
when Uber board members
settled a feud over control of
seats, clearing the way for
SoftBank’s tender offer.
But not everyone shares Mr.
Son’s grand vision, even
within the companies in which
SoftBank has taken a stake.
Companies including
Google parent Alphabet Inc.
and car makers such as Toyota
Motor Corp. and Nissan Motor
Co. have different ideas on
how the future will unfold.
“The traditional business of
building cars and selling cars
and owning cars will con-
tinue,” Carlos Ghosn, chairman
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An Uber carpooling station located in Beijing. Japan’s SoftBank has been pursuing plans to purchase as much as 14% of the company.
of the alliance between Nissan,
Renault SA and Mitsubishi
Motors Corp., said at a confer-
ence last week when asked
about ride-hailing versus car
ownership. “A lot of people
think this is substitution. It’s
not: It’s addition.”
And within the SoftBank
stable, rivalries persist. Uber
competes with many of the
other companies in Mr. Son’s
network. Chinese ride-hail-
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SoftBank led a $5.5 billion
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TECHNOLOGY WSJ.com/Tech
FDA’s
Approval
BY PREETIKA RANA
U.S. authorities approved
the world’s first digital drug,
an antipsychotic pill that sig-
nals smartphones once it
reaches the gut so doctors can
track whether patients are
taking their medication.
Tuesday’s greenlight from
the Food and Drug Administra-
tion means Japan’s Otsuka
Pharmaceutical Co. can im-
plant a chip containing miner-
als like silicon, magnesium and
copper inside tablets of Abilify,
which is widely used to treat
schizophrenia, bipolar disor-
der and other mental illnesses.
Once swallowed, the chip
mixes with stomach acids and
sends a heartbeat-like signal
to an adhesive patch worn on
a patient’s torso. The patch re-
cords the dosage and time of
ingestion and relays this to a
smartphone app for patients
to monitor and share with
doctors and caretakers.
Otsuka spent years testing
has its own visions of global Didi shares its knowledge with terviewed for this article. the drug with Silicon Valley
domination. partners around the globe, she The ride-hailing companies company Proteus Digital
Didi has bought stakes in said, and declined to comment that SoftBank has in its port- Health Inc., which provided
more ride-hailing companies on SoftBank’s strategy. folio so far include the owner the chip technology.
than SoftBank and says it SoftBank will be pressed to of the popular Ola app in In- The invention is intended
wants its technology to be used sort out differences among its dia; Singapore-based Grab Inc., for patients with mental ill-
by them. Other companies that global network, said Gautam which is strong in Southeast nesses who don’t always take
SoftBank has invested in don’t Seshadri, co-founder of ZPX, a Asian nations such as Indone- their medication or may be
necessarily welcome that, said Singapore-based financial sia and the Philippines; 99 in forgetful. Digital drugs may
a person familiar with those company that helps match Brazil; and Didi in China. also solve a couple of prob-
companies’ thinking. buyers and sellers of private One potential area of conflict lems facing pharmaceutical
“Didi handles over 25 million stakes in tech companies. has been cleared up: Last year companies and insurers: lower
daily rides, twice as many as “You’re going to see more Uber swapped its China business drug sales because of missed
what everyone else adds up to,” of these situations, and Soft- for a minority stake in Didi. Oth- doses and higher medical
a Didi spokeswoman said. “We Bank’s going to be front and ers remain to be sorted out. Uber costs treating patients whose
are in the position to develop center,” Mr. Seshadri said. has tried to challenge Grab’s conditions worsen.
the most advanced algorithms.” Mr. Son declined to be in- dominance in Southeast Asia. But Otsuka faces basic
questions: whether patients
and physicians want digital
pills, and, if so, how much in-
surers are prepared to pay.
The Japanese drugmaker
must convince doctors that
digitized Abilify significantly
improves patients’ compliance
compared with the analog pill
and cheaper copies now avail-
BY DOUGLAS MACMILLAN able. Otsuka also needs to
show insurers the extra cost
As tensions mount between for the high-tech drug creates
President Donald Trump and savings in treatment.
his fiercest critics in Silicon Otsuka’s digital pill is com-
Valley, Michael Kratsios has peting against its own alterna-
the thorny task of playing tive form of Abilify: A long-
peacemaker. acting injection that reduces
Mr. Kratsios, one of the
White House’s top technology
advisers, is developing a high-
tech policy agenda that he says
The pill is for patients
will spur innovation in emerg- with mental illnesses
ing technologies such as drones
and artificial intelligence.
“We are really working on
who don’t always
take their medication.
issues that policy makers have
OFFICE OF SCIENCE AND TECHNOLOGY
never tackled before,” Mr.
Kratsios, the U.S. deputy chief
technology officer, told The the risk of patients’ missing
Wall Street Journal in his first doses because it is supervised
major interview since his ap- by a doctor.
pointment in March. “It’s just An Otsuka spokeswoman
a question of putting smart said the injectable is “not ap-
people around a table and try-
ing to come up with an inno-
propriate for all patients,” and
“so there is a need to have a
vative approach to regulating” Michael Kratsios is developing a high-tech policy agenda. number of treatment options
new technologies, he said. to choose from.”
To do that, he will need to Insurers will only cover dig-
work closely with the science Vacancies Abound office at its peak under the ital Abilify once they see “real-
and tech communities—some Obama administration. Mr. Krat- world evidence that this is a
of the staunchest critics of Mr. At Science Office sios said he thinks he can make better approach,” said Troyen
Trump’s policies. Leading sci-
entists and tech executives
more efficient use of fewer
people, as the OSTP tends to
Brennan, the chief medical of-
ficer of CVS Health Corp.,
have abandoned White House The White House has yet rely heavily on the expertise of which administers drug bene-
advisory councils and com- to nominate a director for the other federal agencies. fits for employers, insurers
plained that the president’s Office of Science and Technol- The nomination of an OSTP and some state Medicaid pro-
policies in areas like climate ogy Policy, a Senate-confirmed director, in particular, will be grams in the U.S.
change and immigration position. Michael Kratsios, who closely watched for its implica- Ingestible devices, such as
threaten to reverse years of will report to the director as tions on U.S. climate-change capsules that take pictures in-
economic and social progress. deputy, declined to reveal any policy. side the body, have been around
It may help that Mr. Krat- candidate names or the timing A government report earlier for years. But this the first time
sios, 31 years old, hails from of a nomination. this month drew a direct line such a device has successfully
the world of technology, hav- The vacancy of that and between human activity and been paired with a drug.
ing spent seven years as an several other key OSTP posi- the quickening pace of climate Venture capitalists are bet-
executive at venture-capital tions, as well as a sluggish pace change, a finding at odds with ting on digital health care.
firms founded by Silicon Val- of hiring, has led to speculation Mr. Trump’s moves to reverse They poured $4.2 billion into
ley luminary Peter Thiel. A in the science and tech commu- policies meant to combat cli- 296 such startups in the U.S.
former college intern for Sen. nities that science is a low pri- mate change. last year, a fourfold increase in
ority for the administration. “The climate is changing, investment since 2011, accord-


   256.390.2777 Kratsios said he hoped to The office currently employs and I don’t think anyone is dis- ing to Rock Health, a San Fran-

   


 
 1-855-TAX-CUT-0 eventually pursue a career in about 45 people, Mr. Kratsios puting that,” said Mr. Kratsios, cisco-based venture capital

  
 
     Conservation Easement Advisers, LLC
           conservationeasements.net public service. said. He plans to grow the of- who added that he aims to fund. Companies that got fund-
          That opportunity came fice to about 60 employees— promote technology to reduce ing last year were engaged in
! "    # $%&
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( ) 

 
 Trump won the presidency last devices, big data analysis and
PARTNER WITH A November, and Mr. Thiel—one genomic sequencing.
PHYSICIAN’S OFFICE of the tech industry’s most of President Trump’s policies, at the OSTP created to help The smallest vial of the
BUSINESS OPPORTUNITIES FDA APPROVED MEDICAL DEVICE prominent supporters of the Re- said he is “committed to work- foreign-born entrepreneurs long-acting injectable has a
EARN ON EVERY PATIENT TESTED publican—brought Mr. Kratsios ing constructively with OSTP stay in the U.S. to build start- list price of $1,478. It is ad-
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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.
Used-Car Prices Are
Unexpectedly Strong
This year’s trend
heartens auto makers,
dealers that were
bracing for a collapse
BY MIKE COLIAS
Used-car prices have held
up this year, defying predic-
tions. That is bad news for
shoppers, but the trend is
helping buoy the outlook for
auto makers, dealers and
rental-car companies.
Prices of used cars were ex-
pected to plummet starting in
2017 as millions of vehicle
leases expired and people who
bought following the financial
crisis exchanged their old
rides for new ones. Softening
prices in the preowned market
40M
Number of used cars changing
hands annually in the U.S.
can force auto companies to
offer customers richer incen-
tives or extend deeper dis-
counts on new cars, resulting
in lower margins on fresh
models rolling out of factories.
But the predicted price col-
lapse hasn’t happened, and
now there is optimism that
the swell of vehicles that will
hit the used market may not
be as problematic for new-car
sales as initially feared.
The number of lease re-
turns is expected to reach 11.3
BUFFALO WILD WINGS
Roark Capital Bids
$2.3 Billion for Firm
Buffalo Wild Wings Inc. has
received a takeover bid valued at
more than $2.3 billion from pri-
vate-equity firm Roark Capital
Group, according to people fa-
miliar with the matter.
Roark made an offer of more
than $150 a share in recent
weeks, one of the people said.
Buffalo Wild Wings shares closed
Monday at $117.25, giving it a
market value of $1.84 billion. The
stock jumped 28% to $150 after
hours following The Wall Street
Journal’s report of the bid.
Investment bankers at Bar-
clays PLC are working with
Roark, while Goldman Sachs
Group Inc. is advising Buffalo
Wild Wings, the people said.
Minneapolis-based Buffalo
Wild Wings has been hurt by
rising chicken prices and slump-
Dividend Changes
Dividend announcements from November 13.
Company
Increased
Symbol
Assurant
Four Corners Property Tr
United Bankshares WV
Weyerhaeuser
Funds and investment companies
Boulder Growth & Income
Boulder Growth & Income
Boulder Growth & Income
CBREClarionGlblRlEstIncm
Clough Glbl Eqty Fd
Clough Global Dividend
Clough Global Opp Fd
Cornerstone Strategic
Cornerstone Strategic
Cornerstone Strategic
Cornerstone TR Fd
Cornerstone TR Fd
Cornerstone TR Fd
Deutsche Hi Incm Opps Fd
Deutsche MultiMkt Income
Deutsche Mun Income Tr
Deutsche Strat Income Tr
Deutsche Strat Mun Incm
THL Credit Senior Loan Fd
VanEck Vctr Hi Incm Infra
VanEck Vectors Hi Inc MLP
Wells Fargo Gl Div Opp
Wells Fargo Incm Opps Fd
Wells Fargo Multi-Sector
Wells Fargo Utilities Fd
Stocks
Amedica
Foreign
Barclays ADR Pfd Ser 5
CAE Inc
Maiden Hldgs 6.7% Pfd. D
Maiden Hldgs Pfd. A
Maiden Hldgs Pfd. C
Quarterhill
RenaissanceRe Hldgs 6.08%
RenaissanceRe Pfd. E
Triton International
Tsakos Energy Pfd D
Tsakos Engy Nav Pfd E
Special
RLI Corp
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO:
spin-off.
Tuesday, November 14, 2017 | B5
BUSINESS NEWS
million in the three years end-
ing in 2019, 49% more than Holding Up
the same three-year period Used-vehicle prices are rising as
that ended in 2016, according demand for trucks and SUVs
to research firm J.D. Power. soars and vendors curb
Thus far, the market is ab- inventory.
sorbing the extra supply, Percentage change in used-auto
thanks to tighter inventory prices since Jan. 15, 2015:
controls by various industry
players and the loss of as many 8% $13,599
as a half-million cars to hurri-
canes in Texas and Florida. 6
Manheim, an auction com-
pany tracking prices, said the 4
LAURA BUCKMAN/BLOOMBERG NEWS
average used vehicle wholesaled
for $13,599 in October, repre- 2
senting a record transaction $12,505
price that is 8.1% higher than 0
the same month a year ago. That
–2
price is adjusted for seasonal
factors and partially reflects in- 2015 2016 2017
creased demand for pricier pick- Note: seasonally adjusted
ups and SUVs, while prices for Source: Manheim
passenger cars have declined. THE WALL STREET JOURNAL. Tighter inventory controls and demand from buyers replacing storm-damaged cars were key factors.
Black Book, a used-car
tracking publication owned by gloomy outlook last month.
Hearst Business Media Corp., “We’re not seeing the decline Sedans, Compacts the Ford Focus and Toyota Corolla Prices on luxury sedans, such
said used-vehicle depreciation
has worsened because more
cars are hitting the market,
but the impact on prices
to be as precipitous as we
thought” on used vehicles, Ford
Motor finance chief Bob Shanks
said on a conference call last
Are Potential Deals
are about 7% lower than they
were two years ago on average,
according to auto-auction firm
Manheim. Used prices on midsize
as the BMW 3 Series and Audi
A6, were down about 12% in
October compared with their
average two years earlier, ac-
hasn’t been as bad as ex- month. That “should make it a Used-vehicle prices haven’t cars, such as the Honda Accord cording to Manheim.
pected. Black Book vehicle de- bit easier for us to do better in dropped this year as many ex- and Chevrolet Malibu, have fallen Sport-utility and truck buy-
preciation has grown 1.5% in terms of new vehicle prices.” perts predicted, but there still are about the same amount. ers trolling the preowned lot
2017, far behind the 6% rate Demand from buyers re- deals to be had. Shoppers can “Used buyers looking for won’t be so lucky.
initially forecast. placing hundreds of thousands take advantage of depressed value for their money are find- Average prices on SUVs have
Auto makers watch these of storm-damaged vehicles in prices on sedans of all sizes, which ing it in compact and midsized held steady, Manheim said. Aver-
numbers so they can set resale the wake of Hurricanes Harvey have fallen out of favor over the cars,” said Anil Goyal, a senior age prices on the Ford F-150,
values for leases that now rep- and Irma in September helped past few years as consumers vice president at Manheim. Toyota Tundra and other large
resent about a third of new- boost used-car values. Bar- opt for SUVs and pickup trucks. Buyers of used luxury cars pickup trucks are higher than
car sales. Used prices also help clays analyst Brian Johnson Prices on compact cars like can get in on the action, too. they were a year ago.
determine the level of dis- said in a research note in early
counts or rebates needed to November that it won’t last:
persuade a person to choose a “We expect used car pric- trend, with price increases be- strategies are driving the lon- auctions to unload gently used
new car over used. ing…to turn negative in the ing reported in nine of the 10 ger-term trend. Dealers and cars. Instead, they are reselling
Ford Motor Co. late last coming months as hurricane months of 2017, according to rental-car agencies, which sell them through strategic market-
year warned falling used-car benefits dissipate.” Manheim. This year’s gains a substantial portion of the 40 ing efforts, such as “certified
prices would shave $300 mil- Others say concerns about more than reverse declines re- million used cars exchanging preowned” vehicles on a deal-
lion from full-year operating replacement demand drying up ported over the course of 2016. hands annually in the U.S., are ership lot or a rental-car com-
profit but backed off the are assuaged by the longer-term Inventory-management often relying less on industry pany’s own retail network.
BUSINESS WATCH
TYSON FOODS and sales volume offset in-
creases in live cattle supplies. A
Demand for Beef decline in feed costs also helped
Drives Up Results as grain remained cheap.
Tyson has been working to
Strong domestic and foreign invest the profits driven by its
demand for beef drove revenue beef and pork operations to
and profit growth at Tyson make changes. Tyson has cut
Foods Inc. costs at its chicken and pre-
Tyson, the largest U.S. meat pared-foods segments, resulting
company by sales, said the pork in $150 million in total restruc-
market also helped results as a turing costs in the quarter.
price increase offset a volume For the fourth quarter, Tyson
decline in the company’s fourth reported a profit of $394 million,
quarter. or $1.07 a share, up from $391
LUCAS JACKSON/REUTERS
Tyson said it now expects million, or $1.03, a year earlier.
sales to increase 7% in its fiscal The number of shares outstand-
2018, which began in October, to ing fell 3.2%, boosting per-share
about $41 billion, helped by a re- earnings. Excluding items such
cent acquisition and higher as the purchase of Advance-
chicken prices. That mark is Pierre Foods and restructuring
A Buffalo Wild Wings in New York. The chain’s stock jumped sharply after hours on news of a bid. higher than the $40.4 billion an- charges, earnings rose to $1.43 a
alysts polled by Thomson Reu- share. Revenue rose 11% to
ing traffic in its restaurants and chise more stores, boost profit founder and two of its nominees ters had expected. $10.15 billion. Analysts polled by
had been under attack from margins, increase sales and re- to the board. Chief Executive The operating margin for beef Thomson Reuters had forecast
Marcato Capital Management place its chief executive. Sally Smith announced she products—Tyson’s largest seg- earnings of $1.38 a share on
LP. The activist investor had In June, Buffalo Wild Wings would retire by year-end. ment by revenue—doubled in the $9.89 billion in revenue.
pushed the company to fran- shareholders voted in Marcato’s —Dana Mattioli fourth quarter as higher prices —Austen Hufford
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B6 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23439.70 s 17.49, or 0.07% Trailing P/E ratio 21.18 20.61 2584.84 s 2.54, or 0.10% Trailing P/E ratio 24.42 23.99 6757.60 s 6.66, or 0.10% Trailing P/E ratio * 26.13 23.37
High, low, open and close for each P/E estimate * 19.22 17.66 High, low, open and close for each P/E estimate * 19.37 18.05 High, low, open and close for each P/E estimate * 21.32 18.87
trading day of the past three months. Dividend yield 2.21 2.48 trading day of the past three months. Dividend yield 1.92 2.17 trading day of the past three months. Dividend yield 1.04 1.24
All-time high 23563.36, 11/08/17 All-time high: 2594.38, 11/08/17 All-time high: 6789.12, 11/08/17

Current divisor 0.14523396877348

23500 2580 6750
Session high
DOWN UP 23000 2550 6650
t

Session open Close

Close Open
t

22500 2520 6550

Session low

22000 2490 6450

21500 2460 6350

65-day moving average
65-day moving average 65-day moving average
21000 2430 6250

Bars measure the point change from session's open

20500 2400 6150
Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov.
Weekly 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 Amer. 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 Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 790,713,240 13,641,994
Industrial Average 23461.68 23343.34 23439.70 17.49 0.07 23563.36 18867.93 24.2 18.6 9.9 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 331,023,433 5,310,552
Transportation Avg 9522.34 9458.82 9518.84 17.48 0.18 10038.13 8749.08 8.6 5.3 1.6 Most-active issues in late trading Decl. volume* 442,918,108 7,896,580
Utility Average 766.55 757.62 765.39 8.44 1.12 765.39 625.44 22.4 16.0 9.2 Volume After Hours Issues traded 3,078 328
Company Symbol (000) Last Net chg % chg High Low Advances 1,325 129
Total Stock Market 26755.56 26616.51 26727.72 23.64 0.09 26830.60 22488.92 18.8 14.8 8.0
Synergy Pharmaceuticals SGYP 17,692.3 2.40 -0.04 -1.64 2.90 2.40 Declines 1,638 173
Barron's 400 680.50 675.35 679.94 1.00 0.15 691.56 573.56 18.5 13.0 8.0
SPDR S&P 500 SPY 7,533.7 258.05 -0.28 -0.11 258.35 257.55 Unchanged 115 26
Nasdaq Stock Market Pfizer PFE 5,705.2 35.35 0.05 0.14 36.14 35.26 New highs 100 4
Nasdaq Composite 6766.30 6723.43 6757.60 6.66 0.10 6789.12 5218.40 29.5 25.5 13.0 Verizon Communications VZ 3,585.6 44.75 … unch. 49.05 44.68 New lows 102 11
6325.18 6285.97 7.11 6345.81 4702.04 29.9 Closing tick 51 20
Nasdaq 100 6316.18 0.11 34.3 14.4 iShares MSCI Emg Markets EEM 2,650.3 46.21 0.02 0.04 46.23 46.12
Closing Arms† 1.18 0.77
Ford Motor F 2,529.1 12.16 … unch. 12.18 12.10
Standard & Poor's Block trades* 6,404 114
0.10
Goldcorp GG 2,428.8 13.26 … unch. 13.33 13.26
500 Index 2587.66 2574.48 2584.84 2.54 2594.38 2164.20 19.4 15.5 8.2 Nasdaq NYSE Arca
Flex Ltd FLEX 2,411.4 18.27 … unch. 18.37 18.27
MidCap 400 1830.28 1816.89 1828.93 3.18 0.17 1843.36 1588.12 15.2 10.1 8.5 Total volume*1,937,948,998 188,203,197
SmallCap 600 896.30 889.42 895.04 1.27 0.14 918.72 793.04 12.9 6.8 9.6 Percentage gainers… Adv. volume*1,049,800,710 89,473,060
Decl. volume* 859,122,991 97,731,889
Other Indexes Buffalo Wild Wings BWLD 609.0 150.20 32.95 28.10 153.00 117.25
Issues traded 3,080 1,315
Russell 2000 1476.68 1466.09 1475.07 -0.21 -0.01 1512.09 1298.60 13.6 8.7 7.9 Regeneron Pharmaceuticals REGN 233.6 469.56 75.94 19.29 469.56 393.46
Advances 1,456 579
NYSE Composite 12328.16 12272.21 12316.82 -5.78 -0.05 12430.52 10679.77 15.3 11.4 4.3 Merck MRK 604.4 64.33 9.23 16.75 64.33 54.99 Declines 1,487 698
Value Line 537.99 535.50 537.20 -0.79 -0.15 545.98 490.08 9.6 6.1 2.7 Johnson Controls Intl JCI 255.5 41.86 5.86 16.28 41.86 36.00 Unchanged 137 38
NYSE Arca Biotech 4115.04 4075.48 4082.93 -5.13 -0.13 4304.77 3075.02 17.9 32.8 7.0
TRACON Pharmaceuticals TCON 146.6 3.25 0.45 16.07 4.45 2.85 New highs 74 52
New lows 85 30
NYSE Arca Pharma 533.55 529.97 532.72 -0.38 -0.07 560.52 463.78 9.1 10.6 -0.2 ...And losers
Closing tick 226 35
KBW Bank 98.37 96.79 98.24 0.64 0.66 102.31 83.90 15.1 7.0 10.5 Cabot Oil Gas COG 80.8 24.35 -4.71 -16.22 29.11 24.35 Closing Arms† 0.80 0.91
PHLX§ Gold/Silver 81.02 80.28 80.42 -0.19 -0.23 96.72 73.03 2.0 2.0 6.4 RSP Permian RSPP 82.5 31.65 -5.49 -14.79 37.37 31.65 Block trades* 7,740 1,038
PHLX§ Oil Service 140.12 137.87 138.12 -2.85 -2.02 192.66 117.79 -13.6 -24.8 -17.0 Myomo MYO 10.9 5.45 -0.84 -13.35 6.25 5.25 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1308.13 1296.42 1306.58 3.52 0.27 1321.13 832.08 57.0 44.1 26.9 Devon Energy DVN 1,276.9 34.48 -5.17 -13.03 39.87 34.48 †(TRIN) A comparison of the number of advancing and declining
12.18 11.00 0.21 16.04 9.14 -20.6 -18.1 issues with the volume of shares rising and falling. An
CBOE Volatility 11.50 1.86 -5.9 Energen Corp EGN 24.6 49.15 -6.98 -12.43 56.52 49.15 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 2950.73 –12.66 –0.43 16.6 Roku Cl A ROKU 42.71 9.46 28.45 47.49 15.75 ... Calithera Biosciences CALA 11.73 -4.73 -28.72 20.05 2.90 272.2
DJ Global Index 383.83 –1.06 –0.27 17.7 Zymeworks ZYME 8.57 1.70 24.75 14.25 6.25 ... Diana Containerships DCIX 7.79 -3.09 -28.40 1131015.06 1.56 -99.9
DJ Global ex U.S. 257.75 –1.67 –0.64 20.5 Mattel Inc MAT 17.64 3.02 20.66 32.48 12.71 -44.9 Ideal Power IPWR 1.56 -0.48 -23.53 4.98 1.45 -65.3
Americas DJ Americas 620.91 0.29 0.05 14.9 Helios Matheson Analy HMNY 12.33 2.06 20.06 38.86 2.20 111.9 TDH Holdings PETZ 15.89 -4.30 -21.30 31.75 6.02 ...
Brazil Sao Paulo Bovespa 72475.17 309.53 0.43 20.3 Birks Group BGI 2.69 0.43 19.03 2.69 1.00 87.7 Immunomedics IMMU 10.00 -2.40 -19.35 14.48 2.51 270.4
Canada S&P/TSX Comp 16026.26 –13.00 –0.08 4.8 Yulong Eco-Materials YECO 3.59 0.53 17.32 9.60 0.50 -59.0 KBS Fashion Group KBSF 4.96 -1.19 -19.35 18.00 1.41 -13.0
Mexico S&P/BMV IPC 48002.43 –25.87 –0.05 5.2 Ever-Glory Intl Group EVK 2.50 0.35 16.28 3.00 1.95 8.7 Determine DTRM 1.87 -0.36 -16.14 3.93 1.58 -6.5
Chile Santiago IPSA 4047.83 –43.76 –1.07 25.6 GTx GTXI 11.81 1.51 14.66 12.96 2.73 45.8 Syndax Pharmaceuticals SNDX 8.50 -1.61 -15.92 15.70 6.31 -15.8
Nektar Therapeutics NKTR 37.10 4.60 14.15 41.34 11.41 157.5 Fluidigm FLDM 4.46 -0.78 -14.89 8.69 2.52 -26.4
EMEA Stoxx Europe 600 386.13 –2.56 –0.66 6.8
Nature's Sunshine NATR 12.90 1.55 13.66 15.35 8.40 -10.7 Quantum Corp QTM 4.28 -0.72 -14.40 9.20 4.22 -36.5
Eurozone Euro Stoxx 388.70 –2.20 –0.56 11.0
Belgium Bel-20 4007.57 –18.69 –0.46 11.1 Asure Software ASUR 13.24 1.52 12.97 17.27 7.38 75.8 China TechFaith ADR CNTF 2.30 -0.38 -14.18 3.60 1.45 7.0
France CAC 40 5341.63 –39.09 –0.73 9.9 Galmed Pharmaceuticals GLMD 7.60 0.82 12.09 9.59 3.04 108.8 Celyad ADR CYAD 45.97 -7.52 -14.05 64.75 16.73 149.8
Germany DAX 13074.42 –53.05 –0.40 13.9 Ophthotech OPHT 3.20 0.34 11.89 40.34 2.24 -91.1 Endocyte ECYT 4.60 -0.73 -13.70 6.55 1.17 55.9
Israel Tel Aviv 1418.48 –1.36 –0.10 –3.6 Capricor Therapeutics CAPR 2.75 0.28 11.34 4.25 0.63 -11.6 Infinity Pharmaceuticals INFI 2.09 -0.32 -13.28 3.84 0.93 57.1
22437.64 –0.55 16.7 Secoo Holding ADR SECO 8.90 0.88 10.97 12.70 6.61 ... Aptevo Therapeutics APVO 2.64 -0.38 -12.58 3.85 1.15 14.3
Italy FTSE MIB –123.15
Netherlands AEX 545.43 –1.89 –0.35 12.9
Russia RTS Index 1148.79 –7.95 –0.69 –0.3 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10049.90 –42.80 –0.42 7.5
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 578.93 –3.15 –0.54 8.3 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9162.74 28.58 0.31 11.5
General Electric GE 253,928 337.8 19.02 -7.17 32.38 18.75 WisdomTree Emg Mkts xSOEXSOE 247 3426 30.84 -0.09 31.21 21.26
U.K. FTSE 100 7415.18 –17.81 –0.24 3.8
Argos Therapeutics ARGS 67,332 1802.5 0.22 24.27 5.68 0.13 Zymeworks ZYME 310 3151 8.57 24.75 14.25 6.25
Asia-Pacific Bank of America BAC 54,741 -15.1 26.40 -0.41 27.98 19.40 First Tr TCW Opportun FIXD 468 1872 50.67 0.06 52.92 49.71
Australia S&P/ASX 200 6021.80 –7.60 –0.13 6.3 Advanced Micro Devices AMD 53,153 -8.8 11.09 -1.51 15.65 6.61 Teucrium Soybean Fund SOYB 505 1754 18.24 -1.19 20.26 17.27
China Shanghai Composite 3447.84 15.16 0.44 11.1 Roku Cl A ROKU 52,758 538.0 42.71 28.45 47.49 15.75 Nektar Therapeutics NKTR 17,376 1247 37.10 14.15 41.34 11.41
Hong Kong Hang Seng 29182.18 61.26 0.21 32.6 Finl Select Sector SPDR XLF 50,062 -3.4 26.12 0.15 26.93 21.79 Kayne Anderson Acqn Cl A KAAC 676 1078 9.70 -0.10 9.79 9.68
India S&P BSE Sensex 33033.56 –281.00 –0.84 24.1 iShares MSCI Emg Markets EEM 49,589 3.3 46.19 -0.22 46.87 33.94 Vantage Energy Acqn Cl A VEAC 797 1077 9.70 -0.41 9.95 9.68
Japan Nikkei Stock Avg 22380.99 –300.43 –1.32 17.1 Mattel Inc MAT 48,507 370.3 17.64 20.66 32.48 12.71 FT ETF EqCompass Tactical TERM 91 959 21.26 0.24 21.43 19.67
Singapore Straits Times 3419.13 –0.97 –0.03 18.7 JD.com ADR JD 43,169 179.8 41.34 3.45 48.99 23.38 WisdomTree US Total Earn EXT 63 869 30.60 -0.08 30.74 25.41
South Korea Kospi 2530.35 –12.60 –0.50 24.9 SPDR S&P 500 SPY 42,588 -33.6 258.33 0.09 259.35 215.72 Joint JYNT 204 781 5.90 7.08 5.99 1.96
Taiwan Weighted 10683.92 –48.75 –0.45 15.5 * 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
Mon YTDchg
in US$ per US$ (%) Country/currency
Mon YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .03025 33.060 –7.7
A consumer rate against its New car loan Vietnam dong .00004404 22709 –0.3
3.75% Argentina peso .0572 17.4950 10.2
benchmark over the past year 10% Brazil real .3049 3.2794 0.7 Europe
Bankrate.com avg†: 3.01% s
3.00 WSJ Dollar index Euro Canada dollar .7853 1.2734 –5.3 Czech Rep. koruna .04563 21.914 –14.7
Think Mutual Bank 1.89% 5 s
.001589 629.30 .1568 6.3772 –9.8
Chile peso –6.0 Denmark krone
4.00% Rochester, MN 800-288-3425 .0003324 3008.00 0.2 1.1669 .8570 –9.8
t 2.25 0 Colombia peso Euro area euro
Prime rate TrustCo Bank 2.37% Ecuador US dollar 1 1 unch Hungary forint .003742 267.24 –9.2
Monday
t

3.50 1.50 Mexico peso .0523 19.1284 –7.7 Iceland krona .009645 103.68 –8.2
Orlando, FL 407-422-7129 –5
Peru new sol .3084 3.243 –3.3 Norway krone .1225 8.1656 –5.5
3.00 Lake City Bank 2.49% 0.75 s Yen
t –10 Uruguay peso .03425 29.2000 –0.5 Poland zloty .2753 3.6321 –13.3
Warsaw, IN 888-522-2265 One year ago
t

New car loan Venezuela b. fuerte .100150 9.9851 –0.1 Russia ruble .01684 59.397 –3.1
2.50 0.00 –15
Broadway National Bank 2.50% Asia-Pacific Sweden krona .1193 8.3831 –7.9
1 3 6 1 2 3 5 710 30 2017 Switzerland franc 1.0036 .9964 –2.2
San Antonio, TX 210-283-6500 Australian dollar .7624 1.3116 –5.5
2.00 month(s) years Turkey lira .2584 3.8706 9.9
Cambridge Savings Bank 2.59% China yuan .1504 6.6488 –4.3
D J F MAM J J A S O N maturity Ukraine hryvnia .0378 26.4873 –2.2
Hong Kong dollar .1282 7.8009 0.6
2017 Cambridge, MA 888-418-5626 UK pound 1.3115 .7625 –5.9
India rupee .01528 65.442 –3.7
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000738 13558 0.2
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008801 113.62 –2.9 Bahrain dinar 2.6452 .3780 0.2
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003004 332.92 –0.2 Egypt pound .0567 17.6295 –2.8
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields Macau pataca .1246 8.0287 1.4 Israel shekel .2822 3.5433 –7.9
Malaysia ringgit .2386 4.1915 –6.6 Kuwait dinar 3.3058 .3025 –1.0
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6902 1.4489 0.3 Oman sul rial 2.5974 .3850 0.01
Libor, 3-month 1.42 1.40 0.91 l 1.42 1.18 Pakistan rupee .00949 105.350 0.9 Qatar rial .2611 3.830 5.2
Money market, annual yield 0.32 0.33 0.26 l 0.36 -0.11 Treasury, Ryan ALM 1456.180 2.186 2.102 2.237 1.818 1.410 1.929 Philippines peso .0195 51.192 3.2 Saudi Arabia riyal .2667 3.7502 –0.01
Five-year CD, annual yield 1.49 1.47 1.19 l 1.49 -0.06 10-yr Treasury, Ryan ALM 1725.677 2.400 2.318 2.609 2.058 0.686 1.712 Singapore dollar .7343 1.3619 –5.9 South Africa rand .0691 14.4764 5.7
30-year mortgage, fixed† 3.92 3.90 3.73 l 4.33 -0.14 South Korea won .0008929 1119.89 –7.3
DJ Corporate 376.787 3.173 3.063 3.390 2.879 4.305 3.751 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065087 153.64 3.5
15-year mortgage, fixed† 3.30 3.23 2.99 l 3.50 0.06 Aggregate, Barclays Capital 1934.940 2.680 2.580 2.790 2.380 2.019 2.334 Taiwan dollar .03312 30.189 –7.0 WSJ Dollar Index 87.73 0.15 0.17 –5.61
Jumbo mortgages, $424,100-plus† 4.29 4.28 4.21 l 4.88 ... High Yield 100, Merrill Lynch n.a. n.a. 5.213 n.a. n.a. n.a. n.a. Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.51 3.45 3.20 l 4.03 -0.13
Fixed-Rate MBS, Barclays 1983.260 2.910 2.820 3.120 2.650 1.161 2.040
New-car loan, 48-month 3.01 3.01 2.85 l 3.36 -0.23
HELOC, $30,000 4.47 5.03 4.47 l 5.30 0.11
Muni Master, Merrill n.a. n.a. 1.962 n.a. n.a. n.a. n.a. 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 796.274 5.645 5.547 6.290 5.279 10.333 5.611 Commodities Monday 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 616.58 0.64 0.10 616.58 532.01 15.79 8.70

Get real-time U.S. stock quotes and track most-active Track the Markets 191.45 -0.10 195.14 6.21 -0.55

WSJ
TR/CC CRB Index -0.20 166.50
stocks, new highs/lows and mutual funds. Plus, Compare the performance of selected global stock Crude oil, $ per barrel 56.76 0.02 0.04 57.35 42.53 31.02 5.66
deeper money-flows data and email delivery of key indexes, bond ETFs, currencies and commodities at Natural gas, $/MMBtu 3.167 -0.046 -1.43 3.93 2.56 15.21 -14.96
.COM WSJ.com/TrackTheMarkets
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1277.30 4.90 0.39 1346.00 1127.80 4.59 11.07
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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | B7

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest

Metal & Petroleum Futures Milk (CME)-200,000 lbs., cents per lb. Currency Futures
Agriculture Futures Nov 16.80 16.82 16.76 16.80 .03 4,327
Contract Open Dec 15.72 15.72 15.49 15.69 .10 4,497 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Open High hi lo Low Settle Chg interest Corn (CBT)-5,000 bu.; cents per bu. Cocoa (ICE-US)-10 metric tons; $ per ton. Nov .8798 .8826 .8798 .8806 .0002 2,376
Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 343.50 344.00 341.50 342.25 –1.25 603,364 Dec 2,211 2,229 2,184 2,208 –15 16,963 Dec .8817 .8843 .8806 .8819 .0002 276,151
Nov 3.0860 3.1260 3.0860 3.1115 0.0420 557 March'18 356.00 356.75 354.25 355.00 –1.75 517,930 March'18 2,199 2,214 2,178 2,201 –11 136,060
Canadian Dollar (CME)-CAD 100,000; $ per CAD
3.0750 3.1365 3.0680 3.1165 0.0405 122,044 Oats (CBT)-5,000 bu.; cents per bu. Nov .7862 .7878 .7849 .7856 –.0031 1,251
Dec Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec .7883 .7891 .7851 .7860 –.0030 144,080
Gold (CMX)-100 troy oz.; $ per troy oz. Dec 273.00 275.50 272.00 273.50 1.50 3,934 Dec 127.50 128.15 126.65 127.60 .05 53,318 British Pound (CME)-£62,500; $ per £
Nov 1277.00 1277.00 1277.00 1277.30 4.90 71 March'18 281.00 283.75 278.25 283.00 3.00 3,513 March'18 130.90 131.35 130.05 130.75 –.15 100,516 Nov 1.3121 1.3121 1.3077 1.3102 –.0095 530
Dec 1275.30 1279.90 1274.40 1278.90 4.70 300,989 Soybeans (CBT)-5,000 bu.; cents per bu. Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Dec 1.3182 1.3185 1.3074 1.3127 –.0082 174,115
Feb'18 1279.20 1284.20 1278.90 1283.30 4.80 157,003 Nov 977.25 978.00 963.25 963.50 –13.75 1,088 March 14.99 15.18 14.86 15.13 .17 407,570 Swiss Franc (CME)-CHF 125,000; $ per CHF
April 1283.00 1288.20 1283.00 1287.60 4.80 20,174 Jan'18 987.00 990.25 973.75 974.25 –12.75 322,252 May 14.97 15.12 14.87 15.04 .08 138,361 Dec 1.0059 1.0086 1.0034 1.0065 .0001 82,085
June 1289.60 1292.70 1288.70 1291.90 4.80 19,596 Soybean Meal (CBT)-100 tons; $ per ton. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March'18 1.0125 1.0158 1.0106 1.0137 .0001 249
Dec 1301.50 1305.40 1301.50 1304.90 5.00 11,104 Dec 314.50 316.50 311.10 311.30 –3.20 91,804 March 27.01 27.25 27.00 27.25 .07 2,770 Australian Dollar (CME)-AUD 100,000; $ per AUD
Palladium (NYM) - 50 troy oz.; $ per troy oz. Jan'18 316.80 318.50 313.30 313.40 –3.20 106,565 Cotton (ICE-US)-50,000 lbs.; cents per lb. Nov … .7642 .7642 .7642 –.0017 1,154
Dec 993.15 1001.45 986.95 989.70 –3.40 28,621 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 69.00 69.68 68.85 68.88 –.17 53,899 Dec .7647 .7663 .7613 .7623 –.0033 119,567
March'18 990.65 993.75 982.00 984.05 –2.85 7,144 Dec 34.82 34.83 34.28 34.33 –.48 118,315 March'18 69.14 69.63 68.85 68.93 –.21 119,776 Jan'18 .7655 .7659 t .7613 .7621 –.0033 627
Platinum (NYM)-50 troy oz.; $ per troy oz. Jan'18 34.96 34.97 34.43 34.48 –.48 124,702 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Feb .7640 .7658 t .7612 .7620 –.0033 543
928.30 928.70 928.30 932.40 3.50 4 March .7641 .7657 .7611 .7619 –.0033 947
Nov Rough Rice (CBT)-2,000 cwt.; $ per cwt. Dec … … s … 160.60 –2.00
June .7651 .7651 .7614 .7617 –.0032 245
Jan'18 930.70 938.40 927.00 935.60 3.50 70,271 Nov 1112.00 1115.00 1112.00 1112.00 –4.50 17 Jan'18 162.70 169.50 s 160.45 160.60 –2.00 6,223
Silver (CMX)-5,000 troy oz.; $ per troy oz. Mexican Peso (CME)-MXN 500,000; $ per MXN
Jan'18 1144.50 1147.50 1131.00 1136.00 –6.00 9,548 Dec .05199 .05206 .05177 .05198 .00002 178,400
Nov 16.840 17.010 16.840 17.023 0.179 3 Wheat (CBT)-5,000 bu.; cents per bu. Interest Rate Futures March'18 .05106 .05127 .05101 .05121 .00003 608
Dec 16.860 17.070 16.820 17.047 0.176 114,696 Dec 432.00 432.00 422.25 424.25 –7.25 183,686 Euro (CME)-€125,000; $ per €
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March'18 449.00 449.00 440.25 443.25 –5.75 199,423 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Nov 1.1659 1.1664 1.1646 1.1671 .0006 5,067
Dec 56.90 57.15 56.30 56.76 0.02 364,546 Wheat (KC)-5,000 bu.; cents per bu. Dec 152-050 152-300 152-010 152-130 3.0 763,823 Dec 1.1678 1.1697 1.1659 1.1689 .0002 440,174
Jan'18 57.16 57.37 56.52 56.97 –0.01 517,089 Dec 433.00 433.00 423.75 427.50 –5.75 102,729 March'18 151-040 151-250 150-300 151-080 3.0 21,426
Feb 57.34 57.52 56.70 57.13 –0.03 176,319 March'18 449.75 450.00 439.75 444.25 –5.75 128,701 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Index Futures
March 57.48 57.65 56.85 57.27 –0.01 271,356 Wheat (MPLS)-5,000 bu.; cents per bu. Dec 124-215 124-290 124-175 124-200 –2.5 3,218,633
June 57.30 57.50 56.79 57.18 0.05 227,770 Dec 646.25 646.50 630.00 633.25 –14.25 31,737 March'18 124-120 124-190 124-080 124-105 –2.0 57,556 Mini DJ Industrial Average (CBT)-$5 x index
55.62 55.79 55.31 55.60 0.15 268,008 Dec 23397 23429 23288 23406 24 154,141
Dec March'18 657.00 657.75 642.50 647.00 –12.25 29,107 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% March'18 23400 23417 23286 23399 24 1,762
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec 116-317 117-027 116-277 116-285 –3.5 3,124,434
Dec 1.9361 1.9441 1.9209 1.9321 –.0028 96,913 S&P 500 Index (CME)-$250 x index
Nov 158.175 159.375 157.550 158.700 .225 5,260 March'18 116-242 116-272 116-205 116-210 –3.7 77,557 Dec 2581.40 2585.30 s 2570.50 2581.90 2.30 62,506
Jan'18 1.9380 1.9469 1.9242 1.9353 –.0024 109,537 156.475 157.550 155.375 156.975 –.200 29,285
Jan'18 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Mini S&P 500 (CME)-$50 x index
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 2580.25 2585.50 2570.25 2582.00 2.50 3,179,045
Dec 107-190 107-195 107-167 107-172 –1.5 1,739,250
Dec 1.8284 1.8326 1.7854 1.7929 –.0195 107,071 Dec 120.000 121.725 119.450 120.575 … 81,209 March'18 2581.25 2585.75 s 2570.75 2582.50 2.50 76,697
Jan'18 1.8110 1.8122 1.7744 1.7832 –.0129 144,619 March'18 107-140 107-145 107-120 107-122 –1.7 79,683
Feb'18 126.000 127.675 125.225 126.400 –.350 139,401 Mini S&P Midcap 400 (CME)-$100 x index
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Dec 1826.40 1829.40 1814.70 1828.70 3.90 92,454
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Nov 98.843 98.845 98.843 98.843 … 205,338
Dec 3.200 3.231 3.127 3.167 –.046 146,838 Mini Nasdaq 100 (CME)-$20 x index
Dec 62.575 62.925 61.925 62.300 –.175 64,245
Jan'18 3.291 3.321 3.225 3.262 –.044 277,692
Feb'18 70.250 70.675 69.900 70.300 .050 86,356
Jan'18 98.615 98.615 t 98.610 98.615 … 338,984 Dec 6312.5 6325.0 s 6281.0 6312.0 2.8 278,891
Feb 3.298 3.320 3.229 3.265 –.043 97,210 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% March'18 6327.8 6340.5 s 6297.8 6328.0 3.0 2,310
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Mini Russell 2000 (ICE-US)-$100 x index
March 3.257 3.269 3.188 3.222 –.040 181,128 Dec 100.875 100.922 100.516 100.609 –.063 29,467
Nov 470.90 472.40 s 466.60 467.40 –3.60 219 Dec 1474.90 1477.70 1463.20 1473.70 –.60 69,201
April 2.976 3.000 2.956 2.974 –.013 122,276 1 Month Libor (CME)-$3,000,000; pts of 100%
Jan'18 460.80 461.60 451.70 456.30 –3.30 5,556 March'18 1464.60 1464.60 1464.60 1474.50 –.60 80
May 2.955 2.971 2.928 2.950 –.011 91,013
Jan 98.5300 98.5300 t 98.5300 98.5275 .0025 53 Mini Russell 1000 (ICE-US)-$100 x index
Eurodollar (CME)-$1,000,000; pts of 100% Dec 1425.70 1432.40 1425.70 1430.70 1.50 296
Nov 98.5825 98.5850 98.5825 98.5825 … 102,771 U.S. Dollar Index (ICE-US)-$1,000 x index
Cash Prices | WSJ.com/commodities Monday, November 13, 2017 Dec 98.4675 98.4725 98.4650 98.4675 .0025 1,754,370 Dec
March'18
94.36
94.10
94.55
94.23
94.31
94.00
94.39
94.08
.11
.10
45,037
2,530
March'18 98.3100 98.3150 98.2950 98.3000 –.0100 1,319,832
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Dec 98.0400 98.0450 98.0100 98.0100 –.0300 1,655,176 Source: SIX Financial Information
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Monday Monday Monday Bonds | WSJ.com/bonds
(U.S.$ equivalent) 16.9250 SoybeanMeal,Cent IL,rail,ton48%-u 307.30
Energy Coins,wholesale $1,000 face-a 12869 Soybeans,No.1 yllw IL-bp,u n.a. Tracking Bond Benchmarks
Propane,tet,Mont Belvieu-g 0.9870 Other metals Wheat,Spring14%-pro Mnpls-u 7.7075
Butane,normal,Mont Belvieu-g 1.0692 LBMA Platinum Price PM *937.0 Wheat,No.2 soft red,St.Louis-bp,u 4.3500 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
NaturalGas,HenryHub-i 3.120 Platinum,Engelhard industrial 936.0 Wheat - Hard - KC (USDA) $ per bu-u 3.8500 highs and lows for different types of bonds
NaturalGas,TranscoZone3-i 3.070 Platinum,Engelhard fabricated 1036.0 Wheat,No.1soft white,Portld,OR-u 5.2763 Total Total
NaturalGas,TranscoZone6NY-i 3.240 Palladium,Engelhard industrial 997.0 return YTD total Yield (%) return YTD total Yield (%)
Food close return (%) Index Latest Low High close return (%) Index Latest Low High
NaturalGas,PanhandleEast-i 2.760 Palladium,Engelhard fabricated 1097.0
NaturalGas,Opal-i 2.880 Aluminum, LME, $ per metric ton *2090.0 Beef,carcass equiv. index Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
NaturalGas,MarcellusNE PA-i 2.500 Copper,Comex spot 3.1115 choice 1-3,600-900 lbs.-u 192.93
NaturalGas,HaynesvilleN.LA-i 3.020 Iron Ore, 62% Fe CFR China-s 61.9 select 1-3,600-900 lbs.-u 175.51 1934.94 3.0 U.S. Aggregate 2.680 2.380 2.790 1983.26 2.2 Mortgage-Backed 2.910 2.650 3.120
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 59.850 Shredded Scrap, US Midwest-s,w 276 Broilers, National comp wghtd-u,w 0.8612 1950.60 1.6 Ginnie Mae (GNMA) 2.870 2.570 3.090
U.S. Corporate Indexes Bloomberg Barclays
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.100 Steel, HRC USA, FOB Midwest Mill-s 610 Butter,AA Chicago 2.2500
Cheddar cheese,bbl,Chicago 170.00 2764.22 5.0 U.S. Corporate 3.260 3.030 3.520 1163.07 2.3 Fannie mae (FNMA) 2.920 2.670 3.120
Metals Fibers and Textiles Cheddar cheese,blk,Chicago 171.25
2612.09 3.6 Intermediate 2.830 2.530 3.010 1791.00 2.4 Freddie Mac (FHLMC) 2.940 2.680 3.130
Gold, per troy oz Burlap,10-oz,40-inch NY yd-n,w 0.6150 Milk,Nonfat dry,Chicago lb. 73.50
Cotton,1 1/16 std lw-mdMphs-u 0.6813 Cocoa,Ivory Coast-w n.a. 3810.17 8.4 Long term 4.210 4.100 4.710 n.a. n.a. Muni Master n.a. n.a. n.a.
Engelhard industrial 1281.82
Cotlook 'A' Index-t *79.35 Coffee,Brazilian,Comp 1.2642
Engelhard fabricated 1377.96 564.42 3.7 Double-A-rated 2.740 2.470 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a.
Hides,hvy native steers piece fob-u 65.500 Coffee,Colombian, NY 1.4513
Handy & Harman base 1277.95
Handy & Harman fabricated 1418.53 Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u 1.2750 713.22 5.7 Triple-B-rated 3.550 3.340 3.870 n.a. n.a. 12-22 year n.a. n.a. n.a.
Flour,hard winter KC 15.60
LBMA Gold Price AM *1284.45 Grains and Feeds High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
Hams,17-20 lbs,Mid-US fob-u 0.82
LBMA Gold Price PM *1284.30
Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 65.57 n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
Krugerrand,wholesale-e 1330.06
Bran,wheat middlings, KC-u 86 Pork bellies,12-14 lb MidUS-u 1.2826
Maple Leaf-e 1342.85 n.a. n.a. Triple-C-rated n.a. n.a. n.a. 542.86 1.1 Global Government 1.450 1.300 1.560
Corn,No. 2 yellow,Cent IL-bp,u n.a. Pork loins,13-19 lb MidUS-u 0.8947
American Eagle-e 1342.85
Corn gluten feed,Midwest-u,w 91.0 Steers,Tex.-Okla. Choice-u n.a. n.a. n.a. High Yield 100 n.a. n.a. n.a. 755.64 0.3 Canada 2.030 1.570 2.190
Mexican peso-e 1549.97
Corn gluten meal,Midwest-u,w 492.9 Steers,feeder,Okla. City-u,w 172.13
Austria crown-e 1256.58 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 371.34 0.6 EMU§ 1.086 0.933 1.363
Cottonseed meal-u,w 225 Fats and Oils
Austria phil-e 1342.85
Hominy feed,Cent IL-u,w 88 n.a. n.a.
Europe High Yield Constrained n.a. n.a. n.a. 710.76 0.6 France 0.840 0.710 1.210
Silver, troy oz. Meat-bonemeal,50% pro Mnpls-u,w 220 Corn oil,crude wet/dry mill-u,w 34.8500
Engelhard industrial 17.0000 Oats,No.2 milling,Mnpls-u 3.0600 Grease,choice white,Chicago-h 0.2500 U.S Agency Bloomberg Barclays 507.97 -1.3 Germany 0.480 0.210 0.620
Engelhard fabricated 20.4000 Rice, 5% Broken White, Thailand-l,w 368.00 Lard,Chicago-u n.a. 1636.90 2.0 U.S Agency 2.050 1.590 2.050 288.05 -0.04 Japan 0.410 0.240 0.460
Handy & Harman base 17.0100 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Soybean oil,crude;Centl IL-u 0.3346
Handy & Harman fabricated 21.2630 Sorghum,(Milo) No.2 Gulf-u 7.5838 Tallow,bleach;Chicago-h 0.2700 1464.52 1.2 10-20 years 1.890 1.390 1.890 560.57 -1.0 Netherlands 0.610 0.360 0.760
LBMA spot price £12.9300 Tallow,edible,Chicago-u n.a.
3344.60 7.0 20-plus years 2.980 2.730 3.460 915.23 0.2 U.K. 1.640 1.340 1.790
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; 2448.93 4.5 Yankee 2.900 2.610 3.090 796.27 7.7 Emerging Markets ** 5.645 5.279 6.290
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
as of 11/10
Source: WSJ Market Data Group ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan

Global Government Bonds: Mapping Yields

Borrowing Benchmarks | WSJ.com/bonds Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Money Rates November 13, 2017 selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
guide to general levels but don’t always represent actual transactions. 1.500 U.S. 2 1.695 s l 1.662 1.501 0.919
Week —52-WEEK— Week —52-WEEK— 2.250 10 2.399 t l 2.404 2.277 2.152
Inflation Latest ago High Low Latest ago High Low 2.750 Australia 2 1.805 t l 1.827 1.938 1.714 11.0 16.6 79.5
Sept. index Chg From (%)
level Aug. '17 Sept. '16 Britain 0.50 0.50 0.50 0.25 Treasury bill auction 2.750 10 2.633 t l 2.641 2.803 2.576 23.4 21.0 42.4
Australia 1.50 1.50 1.50 1.50 4 weeks 1.035 1.020 1.300 0.270 0.000 France 2 -0.574 t l -0.567 -0.519 -0.566 -226.9 -222.3 -148.5
U.S. consumer price index 13 weeks 1.240 1.185 1.240 0.480 0.750 10 0.782 l 0.782 0.668 0.757 -177.4 -139.5
All items 246.819 0.53 2.2 Overnight repurchase -161.7
26 weeks 1.360 1.300 1.360 0.590
Core 252.941 0.19 1.7 U.S. 1.18 1.21 1.38 0.15 0.000 Germany 2 -0.731 s l -0.749 -0.724 -0.602 -242.7 -239.3 -152.2
Secondary market 0.500 10 0.419 s l 0.408 0.405 0.311 -198.0 -201.6 -184.1
International rates U.S. government rates
Fannie Mae 0.050 Italy 2 -0.219 s l -0.238 -0.125 0.080 -191.4 -184.6 -84.0
Week 52-Week
Latest High Low
Discount 30-year mortgage yields 2.050 10 1.833 t l 1.845 2.065 2.043 -56.6 -58.2 -10.9
ago
1.75 1.75 1.75 1.00 30 days 3.494 3.436 3.865 3.253 0.100 Japan 2 -0.169 s l -0.174 -0.138 -0.247 -186.5 -184.0 -116.7
Prime rates 60 days 3.521 3.457 3.899 3.281
Federal funds 0.100 10 0.052 s l 0.037 0.067 -0.031 -234.8 -236.8 -218.3
U.S. 4.25 4.25 4.25 3.50
Canada 3.20 3.20 3.20 2.70 Effective rate 1.1700 1.1700 1.2000 0.3500
Other short-term rates 2.750 Spain 2 -0.351 t l -0.309 -0.275 -0.108 -204.6 -196.3 -102.7
Japan 1.475 1.475 1.475 1.475 High 1.3125 1.3125 1.3125 0.5625 Week 52-Week
1.450 10 1.533 t l 1.560 1.580 1.491 -86.6 -86.1 -66.1
Policy Rates Low 1.0500 1.0500 1.1600 0.2500 Latest ago high low 1.750 U.K. 2 0.493 s l 0.490 0.473 0.228 -120.2 -116.6 -69.2
0.00 0.00 0.00
Bid 1.1600 1.1600 1.1700 0.3000 4.250 10 1.330 t l 1.341 1.373 1.252 -107.0 -113.1 -90.0
Euro zone 0.00 Call money
Switzerland 0.50 0.50 0.50 0.50 Offer 1.1700 1.1700 1.1900 0.3200
3.00 3.00 3.00 2.25 Source: Tullett Prebon

Commercial paper (AA financial)

Corporate Debt
in that same company’s share price.
Key Interest Rates 90 days n.a. 1.29 1.32 0.62
Investment-grade spreads that tightened the most…
Data are annualized on a 360-day basis. Treasury yields are per annum, Libor Spread*, in basis points Stock Performance
on actively traded noninflation and inflation-indexed issues that are One month 1.25028 1.24424 1.25028 0.54206 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
adjusted to constant maturities. Data are from weekly Federal Reserve Three month 1.41586 1.39703 1.41586 0.90622 AT&T T 3.000 Feb. 15, ’22 57 –21 62 34.17 –0.15
release H.15. Six month 1.61618 1.59406 1.61618 1.27211 Macy's Retail Holdings M 4.375 Sept. 1, ’23 295 –16 289 … …
Week Ended 52-Week Week Ended 52-Week One year 1.88428 1.86428 1.88428 1.60456 Qualcomm QCOM 4.300 May 20, ’47 170 –12 148 66.49 2.97
Nov 10 Nov 3 High Low Nov 10 Nov 3 High Low
Euro Libor Kohl's KSS 4.250 July 17, ’25 167 –10 n.a. 41.18 –4.32
Federal funds (effective) Treasury yields (secondary market) Nucor NUE 4.000 Aug. 1, ’23 70 –10 n.a. 55.70 –0.23
One month -0.399 -0.400 -0.376 -0.405
1.16 1.15 1.16 0.40 1-month 1.03 0.99 1.05 0.28
Three month -0.378 -0.378 -0.325 -0.381 Philip Morris International PM 2.000 Feb. 21, ’20 22 –10 n.a. 103.51 0.48
3-month 1.20 1.14 1.20 0.44
Commercial paper 6-month 1.32 1.26 1.32 0.55 Six month -0.314 -0.314 -0.214 -0.322 Banco Bilbao Vizcaya Argentaria S.A. BBVASM 3.000 Oct. 20, ’20 57 –8 n.a. ... ...
Nonfinancial TIPS One year -0.247 -0.237 -0.077 -0.247 Old Republic International ORI 3.875 Aug. 26, ’26 132 –8 134 20.87 0.19
1-month 1.16 1.14 1.16 0.41
5-year 0.23 0.24 0.31 -0.21
2-month 1.20 1.19 1.20 0.52
7-year 0.38 0.41 0.49 -0.03 Euro interbank offered rate (Euribor) …And spreads that widened the most
3-month 1.26 1.23 1.26 0.58
10-year 0.47 0.49 0.63 0.20 One month -0.371 -0.371 -0.366 -0.375 Bnp Paribas S.A. BNP 3.500 Nov. 16, ’27 127 356 n.a. ... ...
Financial 20-year 0.71 0.75 0.97 0.60 Three month -0.329 -0.329 -0.311 -0.332 Alexandria Real Estate Equities ARE 3.450 April 30, ’25 119 341 n.a. 126.61 –0.02
1-month 1.19 1.17 1.19 0.46 Long-term avg 0.74 0.78 0.97 0.62
2-month 1.24 1.21 1.24 0.57 Six month -0.275 -0.276 -0.211 -0.276 Pitney Bowes PBI 3.625 Sept. 15, ’20 364 64 282 10.02 –3.38
3-month 1.30 1.26 1.30 0.66 Interest rate swaps One year -0.191 -0.191 -0.070 -0.191 Teva Pharmaceutical Finance Netherlands Iii TEVA 2.200 July 21, ’21 340 32 n.a. … …
1-year n.a. n.a. n.a. n.a.
Discount window primary credit 2-year n.a. n.a. n.a. n.a. Value 52-Week Hasbro HAS 3.500 Sept. 15, ’27 147 22 125 96.83 5.88
1.75 1.75 1.75 1.00 3-year n.a. n.a. n.a. n.a. Latest Traded High Low Broadcom AVGO 3.875 Jan. 15, ’27 180 16 126 265.01 0.02
4-year n.a. n.a. n.a. n.a. Enterprise Products Operating EPD 7.034 Jan. 15, ’68 –40 15 n.a. … …
Conventional mortgages 5-year n.a. n.a. n.a. n.a. DTCC GCF Repo Index
n.a. n.a. n.a. n.a. 7-year n.a. n.a. n.a. n.a. Xerox XRX 3.625 March 15, ’23 227 15 200 28.17 –3.43
Treasury 1.196 27.102 1.366 0.244
10-year n.a. n.a. n.a. n.a.
Treasury yields at constant
maturities 30-year n.a. n.a. n.a. n.a.
MBS 1.214 131.374 1.506 0.257 High-yield issues with the biggest price increases…
Open Implied Bond Price as % of face value Stock Performance
1-month 1.05 1.01 1.07 0.29 Corporate bonds, Moody's seasoned Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Settle Change Interest Rate
3-month 1.22 1.16 1.22 0.44 Aaa n.a. n.a. n.a. n.a.
6-month 1.34 1.28 1.34 0.56 Baa n.a. n.a. n.a. n.a. DTCC GCF Repo Index Futures Mattel MAT 6.200 Oct. 1, ’40 102.750 5.75 n.a. 17.64 20.66
1-year 1.52 1.45 1.52 0.70 Teamhealth Holdings TMH 6.375 Feb. 1, ’25 88.250 3.75 85.500 ... ...
State and local bonds Treasury Nov 98.830 unch. 8834 1.170
2-year 1.64 1.61 1.64 0.88 CenturyLink CTL 7.600 Sept. 15, ’39 82.031 3.03 87.625 15.33 –0.97
3-year 1.76 1.73 1.76 1.08 n.a. n.a. n.a. n.a. Treasury Dec 98.690 unch. 2043 1.310
Embarq EQ 7.995 June 1, ’36 93.750 3.00 100.500 ... ...
5-year 2.01 2.00 2.08 1.42 Treasury Jan 98.585 unch. 450 1.415
Eurodollars Intelsat Luxembourg S.A. INTEL 7.750 June 1, ’21 64.000 3.00 63.125 ... ...
7-year 2.20 2.21 2.37 1.75 1 month n.a. n.a. n.a. n.a.
10-year 2.34 2.36 2.55 1.98 3 month n.a. n.a. n.a. n.a. Notes on data: Mallinckrodt International Finance MNK 4.750 April 15, ’23 81.470 2.97 85.000 … …
20-year 2.59 2.63 2.91 2.41 6 month n.a. n.a. n.a. n.a. U.S. prime rate is the base rate on corporate
Nabors Industries NBR 5.500 Jan. 15, ’23 99.474 2.72 96.500 6.12 –4.38
loans posted by at least 70% of the 10 largest Chs/Community Health Systems CYH 8.000 Nov. 15, ’19 92.281 2.03 92.368 … …
Notes on data: U.S. banks, and is effective June 15, 2017. Other
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates prime rates aren’t directly comparable; lending …And with the biggest price decreases
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by practices vary widely by location; Discount rate
Eldorado Resorts ERI 6.000 April 1, ’25 101.250 –4.75 105.250 28.80 0.52
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window is effective June 15, 2017. DTCC GCF Repo Index
Exela Intermediate EXLINT 10.000 July 15, ’23 91.563 –3.44 95.500 ... ...
primary credit rate is charged for discounts made and advances extended under the Federal is Depository Trust & Clearing Corp.'s weighted
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday; average for overnight trades in applicable Frontier Communications FTR 8.750 April 15, ’22 73.000 –3.00 82.500 6.96 2.81
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid CUSIPs. Value traded is in billions of U.S. dollars. EP Energy EPENEG 6.375 June 15, ’23 56.000 –2.50 58.750 ... ...
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International Federal-funds rates are Tullett Prebon rates as Murray Energy MURREN 11.250 April 15, ’21 53.000 –2.25 57.875 ... ...
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in of 5:30 p.m. ET. Futures on the DTCC GCF Repo
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban Index are traded on NYSE Liffe US.
Altice Luxembourg S.A. ATCNA 7.625 Feb. 15, ’25 101.588 –2.16 108.438 ... ...
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only; American Axle And Manufacturing AXL 6.500 April 1, ’27 101.375 –1.63 104.250 17.44 –0.06
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to Goodyear Tire & Rubber GT 4.875 March 15, ’27 100.688 –1.62 101.750 29.23 0.55
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first Sources: Federal Reserve; Bureau of Labor
mortgages Statistics; DTCC; SIX Financial Information; *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.
Sources: Federal Reserve; for additional information on these rate data and their derivation, General Electric Capital Corp.; Tullett Prebon Note: Data are for the most active issue of bonds with maturities of two years or more
please see, www.federalreserve.gov/releases/h15/data.htm Information, Ltd. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B8 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

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.
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low. GGP GGP 24.05 1.85 LiveNationEnt LYV 44.93 0.16 QuestDiag DGX 92.00 -0.05 Tapestry TPR 40.44 -0.38 WestpacBanking WBK 24.59 -0.05 DiamondbackEner FANG 110.97 -0.89 Momo MOMO 29.88 1.53
Market listed securities. Prices are composite dd-Indicates loss in the most recent Gallagher AJG 63.94 -0.14 LloydsBanking LYG 3.53 -0.02 QuintilesIMS Q 102.91 -1.14 TargaResources TRGP 42.29 -1.84 WestRock WRK 58.84 0.18 DiscoveryComm B DISCB 23.50 1.25 Mondelez MDLZ 42.05 0.10
quotations that include primary market trades four quarters. Gap GPS 26.72 -0.51 LockheedMartin LMT 312.95 1.78 RELX RENX 22.35 -0.03 Target TGT 60.40 -1.00 Weyerhaeuser WY 35.96 -0.18 DiscoveryComm A DISCA 16.99 -0.20 s MonsterBeverage MNST 62.20 1.04
as well as trades reported by Nasdaq OMX FD-First day of trading. GardnerDenver GDI 29.41 0.65 Loews L 49.89 0.38 RELX RELX 23.09 -0.02 TataMotors TTM 31.99 -0.33 WheatonPrecMetals WPM 20.21 0.07 DiscoveryComm C DISCK 15.93 -0.19 Mylan MYL 37.57 -0.59
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing Gartner IT 116.32 -1.16 Lowe's LOW 77.53 0.04 RPM RPM 51.67 0.31 TechnipFMC FTI 28.40 -0.52 Whirlpool WHR 161.67 -0.38 DollarTree DLTR 93.69 -1.37 NXP Semi NXPI 115.65 -0.40
Exchange, CBOE, National Stock Exchange, ISE standards Gazit-Globe GZT 9.39 0.05 LyondellBasell LYB 104.19 -0.07 RSP Permian RSPP 37.14 -0.83 TeckRscsB TECK 21.84 0.31 Williams WMB 28.23 -0.39 E*TRADE ETFC 43.60 0.68 Nasdaq NDAQ 75.41 1.84
and BATS. lf-Late filing GeneralDynamics GD 200.13 0.36 M&T Bank MTB 159.44 2.34 RalphLauren RL 86.67 0.04 TelecomArgentina TEO 32.56 -0.48 WilliamsPartners WPZ 36.23 -0.93 EXACT Sci EXAS 58.22 -2.15 NatlInstruments NATI 44.65 -0.26
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq t GeneralElec GE 19.02 -1.47 MGM Resorts MGM 33.06 0.18 RaymondJames RJF 83.37 -0.18 TelecomItalia TI 8.06 -0.26 Wipro WIT 5.09 0.06 EastWestBancorp EWBC 57.03 0.37 NetApp NTAP 46.00 -0.34
companies based on market capitalization. requirements. GeneralMills GIS 52.97 -0.31 MPLX MPLX 34.13 -0.65 Raytheon RTN 184.46 -0.35 TelecomItalia A TI.A 6.57 -0.16 WooriBank WF 41.50 -0.08 eBay EBAY 35.85 -0.12 Netease NTES 302.16 -0.71
Underlined quotations are those stocks with t-NYSE bankruptcy GeneralMotors GM 43.57 0.91 MSCI MSCI 125.46 0.44 RealtyIncome O 56.67 0.40 TeledyneTech TDY 179.37 -1.26 Wyndham WYN 106.30 0.23 ElbitSystems ESLT 144.24 -1.85 Netflix NFLX 195.08 3.06
large changes in volume compared with the v-Trading halted on primary market. Genpact G 31.10 -0.08 Macerich MAC 64.07 -0.30 RedHat RHT 123.99 -0.19 Teleflex TFX 256.94 4.05 XPO Logistics XPO 72.48 0.38 ElectronicArts EA 112.01 -0.74 Neurocrine NBIX 74.64 -0.82
issue’s average trading volume. vj-In bankruptcy or receivership or GenuineParts GPC 85.29 -0.16 MacquarieInfr MIC 65.59 -0.59 RegencyCtrs REG 67.21 0.76 TelefonicaBras VIV 14.86 -0.07 s XcelEnergy XEL 50.79 0.59 Equinix EQIX 484.12 1.91 NewsCorp B NWS 15.60 0.05
Boldfaced quotations highlight those issues being reorganized under the Gildan GIL 30.17 -0.07 Macy's M 19.33 -0.65 RegionsFin RF 15.44 0.27 Telefonica TEF 9.90 -0.13 Xerox XRX 28.17 -1.00 Ericsson ERIC 6.01 ... NewsCorp A NWSA 15.23 0.13
whose price changed by 5% or more if their Bankruptcy Code, or securities t GlaxoSmithKline GSK 35.09 -0.21 MagellanMid MMP 66.22 -1.12 ReinsuranceGrp RGA 150.25 0.63 TelekmIndonesia TLK 30.01 -0.32 Xylem XYL 66.03 -0.22 ErieIndemnity A ERIE 121.70 -0.98 Nordson NDSN 123.81 -0.06
previous closing price was $2 or higher. assumed by such companies. GlobalPayments GPN 99.60 0.75 MagnaIntl MGA 53.04 0.02 RenaissanceRe RNR 138.80 -0.90 Tenaris TS 29.39 -0.27 YPF YPF 23.16 -0.16 Exelixis EXEL 26.05 0.20 NorthernTrust NTRS 92.46 -0.05
GoDaddy GDDY 48.57 0.42 s Manpower MAN 126.00 1.03 RepublicServices RSG 63.91 0.46 s Teradyne TER 43.85 0.15 YumBrands YUM 79.74 0.15 Expedia EXPE 120.28 -0.46 NorwegianCruise NCLH 55.27 0.04
Goldcorp GG 13.26 0.01 ManulifeFin MFC 21.07 -0.15 ResMed RMD 84.00 0.94 TevaPharm TEVA 11.74 -0.04 YumChina YUMC 42.13 0.40 ExpeditorsIntl EXPD 59.41 -0.44 NVIDIA NVDA 212.63 -3.51
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and GoldmanSachs GS 240.27 0.12 MarathonOil MRO 15.55 -0.07 RestaurantBrands QSR 65.22 0.10 Textron TXT 53.70 -0.57 ZTO Express ZTO 16.92 -0.69 ExpressScripts ESRX 60.88 0.83 OReillyAuto ORLY 214.17 -0.26
changes in the closing prices from 4 p.m. the previous day. MarathonPetrol MPC 62.20 0.48 RioTinto RIO 49.20 -0.31 ThermoFisherSci TMO 188.21 2.03 ZayoGroup ZAYO 33.99 -0.03 F5Networks FFIV 120.85 1.14
Graco GGG 128.82 -1.35 OldDomFreight ODFL 118.24 -0.66
Grainger GWW 195.79 -7.69 Markel MKL 1071.76 8.35 s RobertHalf RHI 53.53 0.63 ThomsonReuters TRI 44.28 -0.22 ZimmerBiomet ZBH 111.06 0.31 Facebook FB 178.77 0.31 ON Semi ON 21.58 0.02
Monday, November 13, 2017 Net Net GreatPlainsEner GXP 33.65 0.49 Marsh&McLennan MMC 83.00 -0.15 Rockwell ROK 192.54 -0.07 ThorIndustries THO 130.45 0.56 Zoetis ZTS 68.88 -0.25 Fastenal FAST 47.23 -0.36 OpenText OTEX 33.41 -0.01
Net Stock Sym Close Chg Stock Sym Close Chg GpoAvalAcciones AVAL 8.22 -0.11 MartinMarietta MLM 212.47 -0.78 RockwellCollins COL 133.37 -0.21 3M MMM 228.22 0.77 FifthThirdBncp FITB 28.19 0.52 PTC PTC 64.58 -0.21
Stock Sym Close Chg BankofMontreal BMO 77.07 -0.15 s ConEd ED 88.31 1.12
GpFinSantandMex BSMX 8.12 -0.03 Masco MAS 38.89 0.28 RogersComm B RCI 52.37 -0.18 Tiffany TIF 93.08 1.51 NASDAQ FirstSolar FSLR 61.57 -0.02 Paccar PCAR 69.32 -0.02
t GrupoTelevisa TV 19.98 0.28 Mastercard MA 149.69 0.15 Rollins ROL 45.34 0.35 TimeWarner TWX 88.49 -2.11 Fiserv FISV 128.16 0.16 PacWestBancorp PACW 45.20 0.50
BankNY Mellon BK 51.02 0.09 s ConstBrands A STZ 220.76 2.09 AGNC Invt AGNC 19.82 0.27
NYSE BkNovaScotia BNS 65.34 -0.25 s ConstBrands B STZ.B 221.28 3.16
GuidewireSoftware GWRE 79.82 -0.49 McCormick MKC 96.96 0.04
McCormickVtg MKC.V 97.13 0.07
RoperTech ROP 256.04
RoyalBkCanada RY 78.57
-2.16
-0.17
Toll Bros TOL 46.05
Torchmark TMK 84.69
0.14
0.43 Ansys ANSS 150.87 0.59
Flex FLEX 18.27
FlirSystems FLIR 47.11
-0.10
0.38
Paychex PAYX 65.10 0.53
t Barclays HCA Healthcare HCA 77.71 -0.97 PayPal PYPL 74.03 0.04
BCS 9.36 -0.08 ContinentalRscs CLR 45.83 -0.86 McDonalds MCD 167.37 1.78 RoyalBkScotland RBS 7.29 -0.03 Toro TTC 61.92 -0.15 ASML ASML 178.85 -0.75 Fortinet FTNT 40.35 0.41
ABB ABB 25.48 0.12 HCP HCP 27.23 0.22 People'sUtdFin PBCT 18.21 0.50
Bard CR BCR 333.08 1.19 Cooper COO 237.07 8.01 McKesson MCK 138.05 0.44 RoyalCaribbean RCL 124.48 0.26 TorontoDomBk TD 57.17 -0.16 Abiomed ABMD 195.13 -0.08 Gaming&Leisure GLPI 36.64 -0.14
AECOM ACM 35.63 0.04 HDFC Bank HDB 93.61 -0.41 PilgrimPride PPC 34.04 -0.49
BarrickGold ABX 13.95 -0.03 Corning GLW 31.66 -0.07 Medtronic MDT 79.20 -0.13 RoyalDutchA RDS.A 63.90 ... Total TOT 55.55 -0.62 ActivisionBliz ATVI 63.62 0.62 Garmin GRMN 60.58 -0.25
AES AES 10.82 0.59 HP HPQ 21.17 -0.06 Priceline PCLN 1722.15 24.90
BaxterIntl BAX 64.41 0.37 Coty COTY 16.75 0.44 Merck MRK 55.10 -0.38 RoyalDutchB RDS.B 65.92 -0.08 TotalSystem TSS 72.77 0.44 AdobeSystems ADBE 181.85 0.13 GileadSciences GILD 72.85 -0.92
Aflac AFL 84.40 0.96 HSBC HSBC 48.26 -0.46 Qiagen QGEN 30.77 -0.77
BectonDicknsn BDX 220.00 0.77 Credicorp BAP 201.09 -0.63 MetLife MET 52.16 -0.04 SAP SAP 112.37 -0.22 ToyotaMotor TM 125.67 1.18 AdvMicroDevices AMD 11.09 -0.17 Goodyear GT 29.23 0.16
AT&T T 34.17 -0.05 CreditSuisse CS 15.87 Halliburton HAL 44.21 -0.37 Qorvo QRVO 79.08 -0.49
Berkley WRB 68.13 -0.61 -0.16 MettlerToledo MTD 630.84 8.18 S&P Global SPGI 158.03 1.09 TransCanada TRP 49.48 0.11 AkamaiTech AKAM 53.52 -0.74 Grifols GRFS 22.80 -0.34
AbbottLabs ABT 55.30 0.50 BerkHathwy A BRK.A 276347687.00 CrownCastle CCI 112.90 -0.38 Hanesbrands HBI 19.23 0.09 Qualcomm QCOM 66.49 1.92
MichaelKors KORS 54.09 -0.62 SINOPECShanghai SHI 60.14 0.58 TransDigm TDG 262.00 -5.00 AlexionPharm ALXN 113.45 -1.72 GpoFinGalicia GGAL 51.60 -0.88
AbbVie ABBV 95.12 -0.31 BerkHathwy B BRK.B 184.40 0.72 CrownHoldings CCK 59.45 0.30 HarleyDavidson HOG 46.88 -0.42
s AlignTech ALGN 253.73 4.27 RandgoldRscs GOLD 90.57 0.02
Accenture ACN 143.92 0.03 Harris HRS 138.97 0.21 MicroFocus MFGP 34.27 -0.26 SK Telecom SKM 25.06 -0.62 TransUnion TRU 54.01 0.61 HD Supply HDS 34.98 -0.69 RegenPharm REGN 393.62-10.92
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AcuityBrands AYI 163.53 3.35 BestBuy BBY 56.97 0.29 Cummins CMI 169.20 0.25 HartfordFinl HIG 55.69 0.17 RossStores ROST 64.91 -0.85
MitsubishiUFJ MTU 6.51 -0.03 s Salesforce.com CRM 105.78 0.54 TurkcellIletism TKC 9.01 -0.01 AlnylamPharm ALNY 129.11-10.87 t HenrySchein HSIC 66.50 -0.55
Adient ADNT 76.22 -1.20 Bio-RadLab A BIO 254.43 -3.76 s DCT Industrial DCT 60.72 0.97 HealthcareAmer HTA 30.75 0.17 RoyalGold RGLD 86.39 0.78
MizuhoFin MFG 3.58 ... Sanofi SNY 44.64 -0.36 TurquoiseHill TRQ 3.08 -0.04 Alphabet C GOOG 1025.75 -2.32 Hologic HOLX 40.64 1.67
AdvanceAuto AAP 82.28 1.06 BlackKnight BKI 46.15 0.30 s DTE Energy DTE 114.24 1.79 Heico HEI 90.16 -0.28 Ryanair RYAAY 111.41 0.16
MobileTeleSys MBT 10.93 -0.12 SantanderConUSA SC 15.93 -0.25 Twitter TWTR 20.17 -0.15 Alphabet A GOOGL 1041.20 -2.95 JBHunt JBHT 102.58 0.73
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MohawkIndustries MHK 265.02 1.17 Sasol SSL 30.35 -0.27 TylerTech TYL 170.89 0.22 Altaba AABA 70.27 -0.28 HuntingtonBcshs HBAN 13.36 0.22
Aegon AEG 5.96 -0.11 s Danaher Helmerich&Payne HP 56.38 -1.77 SEI Investments SEIC 64.67 -0.01
BlackRock BLK 465.11 -0.72 DHR 93.33 1.09 MolsonCoors B TAP 80.84 0.50 Scana SCG 44.60 0.66 s TysonFoods TSN 75.59 1.45 s Amazon.com AMZN 1129.17 3.82 IAC/InterActive IAC 123.67 -0.34
AerCap AER 50.61 -1.06 BlackstoneGroup BX 31.76 -0.37 Darden DRI 82.84 0.20 Herbalife HLF 64.85 -0.64 Sina SINA 106.15 0.31
Monsanto MON 118.15 -0.15 Schlumberger SLB 65.04 -0.70 UBS Group UBS 17.01 -0.10 Amdocs DOX 62.54 0.02 IdexxLab IDXX 147.79 0.11
Aetna AET 173.02 -2.10 BoardwalkPipe BWP 14.30 -0.25 DaVita DVA 54.99 -0.01 Hershey HSY 108.18 -0.42 SS&C Tech SSNC 39.81 -0.05
Moody's MCO 142.15 -0.04 SchwabC SCHW 44.60 0.33 UDR UDR 39.94 0.20 Amerco UHAL 365.43 -4.24 IHSMarkit INFO 42.99 0.06
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MorganStanley MS 48.63 -0.13 ScottsMiracleGro SMG 99.10 0.47 UGI UGI 48.31 0.39 AmericanAirlines AAL 45.74 -0.08 s IPG Photonics IPGP 224.69 1.16
AgilentTechs A 67.13 0.32 BorgWarner BWA 52.03 -0.04 DellTechs DVMT 81.81 -0.77 HewlettPackard HPE 13.48 -0.22 ScrippsNetworks SNI 78.88 -0.30
Mosaic MOS 23.28 0.44 SealedAir SEE 44.98 0.63 US Foods USFD 26.58 -0.02 Amgen AMGN 171.50 -0.85 IcahnEnterprises IEP 53.73 -1.96
AgnicoEagle AEM 45.07 0.07 BostonProps BXP 125.93 0.08 DelphiAuto DLPH 95.57 0.28 Hilton HLT 72.62 -0.07 Seagate STX 37.66 -0.33
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s AirProducts APD 162.76 2.46 Braskem BAK 29.57 -0.46 DeutscheBank DB 17.93 -0.01 HomeDepot HD 165.35 1.24 SHPG 138.32 -2.04
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AlaskaAir ALK 61.72 -0.70 Bristol-Myers BMY 60.99 0.13 DevonEnergy DVN 39.65 -0.76 HondaMotor HMC 32.81 -0.12
NVR NVR 3300.00 10.36 ServiceCorp SCI 34.80 ... UnionPacific UNP 116.48 -0.22 ArchCapital ACGL 95.70 0.35 Intel INTC 45.75 0.17
Albemarle ALB 143.37 2.75 BritishAmTob BTI 64.71 -0.29 Diageo DEO 135.95 -0.06 Honeywell HON 146.72 0.97 SiriusXM SIRI 5.50 0.16
t NationalGrid NGG 59.20 -0.75 ServiceMaster SERV 46.89 -0.02 UnitedContinental UAL 57.81 -0.71 Atlassian TEAM 52.27 -0.13 InteractiveBrkrs IBKR 53.90 0.02 Skyworks SWKS 110.30 -0.11
Alcoa AA 43.13 0.12 BrixmorProp BRX 18.02 -0.23 DigitalRealty DLR 122.70 1.85 HormelFoods HRL 32.45 0.12
NatlOilwell NOV 33.06 -0.46 ServiceNow NOW 125.03 -0.95 UnitedMicro UMC 2.57 -0.02 Autodesk ADSK 124.64 1.53 s Intuit INTU 154.89 1.59
s AlexandriaRlEst ARE 126.61 -0.03 BroadridgeFinl BR 87.58 -0.87 DiscoverFinSvcs DFS 65.00 0.24 s DR Horton DHI 47.09 1.09 Splunk SPLK 67.74 -2.00
NatlRetailProp NNN 42.55 0.38 ShawComm B SJR 22.66 -0.15 UPS B UPS 114.81 1.58 ADP ADP 111.53 0.44 IntuitiveSurgical ISRG 392.12 2.97
Alibaba BABA 184.54 -1.87 BrookfieldMgt BAM 42.21 0.19 Disney DIS 104.74 -0.04 HostHotels HST 20.03 0.04 Starbucks SBUX 56.64 -0.40
NewOrientalEduc EDU 84.58 -0.95 SherwinWilliams SHW 389.71 0.25 UnitedRentals URI 144.61 -1.70 Baidu BIDU 237.37 -0.03 IonisPharma IONS 54.84 -1.04
Alleghany Y 576.37 -3.24 BrookfieldInfr BIP 43.77 0.30 DolbyLab DLB 60.05 -0.60 HuanengPower HNP 27.97 -0.13 SteelDynamics STLD 37.35 0.12
NY CmntyBcp NYCB 12.78 0.66 ShinhanFin SHG 43.21 0.09 US Bancorp USB 51.68 0.07 BankofOzarks OZRK 43.56 0.50 JD.com JD 41.34 1.38 Symantec SYMC 27.97 -0.39
Allegion ALLE 83.94 0.81 Brown&Brown BRO 49.40 -0.08 s DollarGeneral DG 83.55 -0.60 Hubbell HUBB 121.76 -0.84
t NewellBrands NWL 28.47 -0.83 Shopify SHOP 98.77 -1.24 UnitedTech UTX 117.07 -1.04 Biogen BIIB 315.71 5.27 JackHenry JKHY 112.85 -0.84 s Synopsys SNPS 87.82 0.54
t Allergan AGN 174.41 2.20 Brown-Forman A BF.A 58.78 1.09 DominionEner D 81.85 1.04 Humana HUM 240.94 -3.45
NewfieldExpln NFX 32.09 -1.22 SimonProperty SPG 160.31 -3.44 UnitedHealth UNH 212.66 1.59 BioMarinPharm BMRN 81.06 -0.97 JazzPharma JAZZ 136.47 -2.23
AllianceData ADS 224.20 -0.73 Brown-Forman B BF.B 58.18 0.90 Domino's DPZ 173.03 -0.30 HuntingtonIngalls HII 239.18 -1.48 TD Ameritrade AMTD 49.72 0.86
NewmontMining NEM 35.71 0.19 SmithAO AOS 58.92 0.36 t UniversalHealthB UHS 97.76 0.05 Bioverativ BIVV 53.91 0.25 JetBlue JBLU 18.95 -0.04
AlliantEnergy LNT 44.30 0.62 t BuckeyePtrs BPL 49.74 -0.77 Donaldson DCI 46.39 0.11 Huntsman HUN 30.69 -0.37 T-MobileUS TMUS 56.44 -0.36
s NextEraEnergy NEE 156.78 1.62 Smith&Nephew SNN 35.52 -0.44 UnumGroup UNM 52.82 0.40 bluebirdbio BLUE 154.55 2.80 JunoTherap JUNO 56.05 -1.54
AllisonTransm ALSN 42.27 -1.03 Bunge BG 66.31 -0.84 DouglasEmmett DEI 40.51 0.38 HyattHotels H 69.74 -0.09 TRowePrice TROW 93.41 -0.16
NielsenHoldings NLSN 36.17 -0.45 Smucker SJM 106.49 2.37 VEREIT VER 8.23 0.02 BrighthouseFin BHF 55.99 -0.59 KLA Tencor KLAC 101.93 -0.51 TakeTwoSoftware TTWO 118.26 2.58
Allstate ALL 99.44 0.32 BurlingtonStore BURL 98.25 -0.05 Dover DOV 93.79 ... ICICI Bank IBN 9.46 -0.15
Nike NKE 55.91 -0.18 Snap SNAP 12.40 -0.36 VF VFC 69.67 0.04 Broadcom AVGO 265.01 0.05 KraftHeinz KHC 79.85 0.13 Tesla TSLA 315.40 12.41
AllyFinancial ALLY 25.65 0.08 CBD Pao CBD 21.29 -0.44 DowDuPont DWDP 70.46 0.49 ING Groep ING 18.16 -0.05
NiSource NI 27.32 0.12 SnapOn SNA 156.07 0.20 Visa V 111.40 -0.48 CA CA 32.32 -0.13 LKQ LKQ 37.22 0.06 TexasInstruments TXN 97.03 0.09
AlticeUSA ATUS 21.10 -0.80 s CBRE Group CBG 42.18 0.65 DrPepperSnap DPS 87.03 0.71 Invesco IVZ 34.52 -0.34
NobleEnergy NBL 27.53 -0.58 SOQUIMICH SQM 59.23 1.47 VailResorts MTN 229.33 -2.71 CDK Global CDK 63.26 -0.14 LamResearch LRCX 209.23 1.84 TractorSupply TSCO 61.33 -1.34
Altria MO 65.84 0.82 CBS A CBS.A 55.79 -1.34 DrReddy'sLab RDY 35.51 -0.10 IDEX IEX 127.96 -0.06
Nokia NOK 4.86 -0.05 Sony SNE 46.08 -0.14 Vale VALE 10.10 0.03 CDW CDW 67.74 0.48 LamarAdvertising LAMR 76.29 1.27 Trimble TRMB 40.99 0.62
AlumofChina ACH 18.03 -0.67 CBS B CBS 55.92 -0.82 s DukeEnergy DUK 89.88 0.99 IllinoisToolWks ITW 157.61 0.47
NomuraHoldings NMR 5.71 -0.11 Southern SO 51.82 0.46 ValeroEnergy VLO 80.67 -0.70 CH Robinson CHRW 80.36 0.03 LibertyBroadbandA LBRDA 88.71 0.98 21stCenturyFoxB FOX 27.82 -0.25
Ambev ABEV 6.12 ... CF Industries CF 37.37 0.09 DukeRealty DRE 29.11 0.15 Infosys INFY 14.80 -0.21
Nordstrom JWN 38.72 -1.31 SoCopper SCCO 43.93 0.02 Vantiv VNTV 69.39 0.08 CME Group CME 140.15 2.27 LibertyBroadbandC LBRDK 89.13 0.64
s Ameren AEE 63.39 0.91 CGI Group GIB 52.97 -0.38 ENI E 33.41 -0.28 Ingersoll-Rand IR 84.76 -0.20 21stCenturyFoxA FOXA 28.55 -0.29
NorfolkSouthern NSC 127.62 0.47 SouthwestAirlines LUV 53.25 -0.24 VarianMed VAR 108.24 0.69 CSX CSX 49.75 -0.33 LibertyGlobal C LBTYK 28.80 0.11
AmericaMovil AMX 17.20 -0.07 CIT Group CIT 45.91 1.22 EOG Rscs EOG 104.46 -0.12 Ingredion INGR 129.13 -1.17 UltaBeauty ULTA 198.03 -2.73
NorthropGrumman NOC 298.48 0.35 t SpectraEnerPtrs SEP 40.05 -0.90 Vedanta VEDL 19.30 -0.56 s CadenceDesign CDNS 44.67 0.63 LibertyGlobal A LBTYA 29.76 0.04
AmericaMovil A AMOV 17.13 0.15 s CMS Energy CMS 49.63 0.36 EQT EQT 64.58 -0.60 ICE ICE 67.08 0.81 UltimateSoftware ULTI 198.00 -0.40
Novartis NVS 82.71 0.33 SpectrumBrands SPB 105.01 -0.07 VeevaSystems VEEV 61.49 0.02 CaesarsEnt CZR 12.40 -0.10 LibertyLiLAC C LILAK 21.78 -0.44 s UniversalDisplay OLED 177.05 1.15
AmCampus ACC 42.72 0.92 CNA Fin CNA 54.42 0.13 EQT Midstream EQM 69.28 -1.61 InterContinentl IHG 56.35 -0.43
NovoNordisk NVO 49.76 -0.15 SpiritAeroSys SPR 80.25 -0.45 Ventas VTR 65.39 0.48 Carlyle CG 21.18 -0.07 LibertyLiLAC A LILA 21.96 -0.20
s AEP AEP 76.13 1.35 CNOOC CEO 140.87 -1.68 EastmanChem EMN 91.43 0.68 IBM IBM 148.40 -0.76 VEON VEON 3.72 ...
Nucor NUE 55.70 -0.13 Sprint S 6.03 -0.16 Verizon VZ 44.75 -0.13 CboeGlobalMkts CBOE 115.74 1.29 LibertyQVC A QVCA 23.43 -0.48 s VeriSign
AmerExpress AXP 93.90 0.38 CPFLEnergia CPL 16.77 0.02 Eaton ETN 77.94 0.02 IntlFlavors IFF 149.72 2.95 VRSN 111.18 1.43
OGE Energy OGE 35.12 0.11 s Square SQ 39.98 0.77 VistraEnergy VST 18.95 0.34 Celgene CELG 101.16 -1.18 LibertyVenturesA LVNTA 56.71 0.14
s AmericanFin AFG 106.03 0.40 CRH CRH 35.11 -0.69 EatonVance EV 50.89 -0.07 IntlPaper IP 54.39 -0.46 VeriskAnalytics VRSK 90.12 -0.09
ONEOK OKE 52.21 -0.19 StanleyBlackDck SWK 163.97 1.00 s VMware VMW 121.84 -0.31 CentennialRsc CDEV 20.09 -0.11 LibertyFormOne C FWONK 36.78 -0.67 VertxPharm VRTX 148.03 -0.71
AmerHomes4Rent AMH 22.12 -0.01 CVS Health CVS 71.48 0.49 Ecolab ECL 131.64 1.34 Interpublic IPG 18.67 -0.12
OccidentalPetrol OXY 67.93 -0.24 StarwoodProp STWD 21.65 0.12 VornadoRealty VNO 75.97 0.36 Cerner CERN 65.47 0.16 LibertyFormOne A FWONA 35.19 -0.65
AIG AIG 62.00 -0.06 s CabotOil COG 29.06 0.07 Ecopetrol EC 11.86 -0.18 s InvitationHome INVH 23.57 -0.16 Viacom B VIAB 24.72 -0.17
Olin OLN 36.54 ... StateStreet STT 90.79 0.14 VoyaFinancial VOYA 41.04 0.33 CharterComms CHTR 343.72 5.28 LibertyBraves A BATRA 22.22 -0.42
AmerTowerREIT AMT 150.04 -0.50 CalAtlantic CAA 51.81 -0.16 EdisonInt EIX 81.10 1.04 IronMountain IRM 40.99 0.33 Viacom A VIA 30.15 -0.45
OmegaHealthcare OHI 28.17 0.12 Statoil STO 20.69 -0.20 VulcanMaterials VMC 123.99 -0.10 CheckPointSftw CHKP102.80 0.29 LibertyBraves C BATRK 22.29 -0.31
AmerWaterWorks AWK 89.52 0.78 CamdenProperty CPT 94.73 0.54 EdwardsLife EW 105.24 1.39 IsraelChemicals ICL 4.06 -0.03 Vodafone VOD 28.85 -0.50
Omnicom OMC 67.92 0.37 Steris STE 87.53 0.68 WABCO WBC 144.76 -0.93 ChinaLodging HTHT 128.77 2.80 LibertySirius A LSXMA 41.83 0.81
Ameriprise AMP 157.32 0.10 CampbellSoup CPB 47.27 -0.15 EmersonElec EMR 61.39 -0.22 ItauUnibanco ITUB 12.69 ... WPP WPPGY 84.82 -1.48
Oracle ORCL 49.40 0.08 STMicroelec STM 23.86 -0.14 WEC Energy WEC 68.35 0.95 CincinnatiFin CINF 73.30 -0.10 LibertySirius C LSXMK 41.84 0.86
AmerisourceBrgn ABC 75.40 0.40 CIBC CM 88.85 -0.61 EnbridgeEnPtrs EEP 14.03 -0.28 JPMorganChase JPM 97.86 0.35 WalgreensBoots WBA 70.37 -0.62
Orange ORAN 16.46 -0.15 Stryker SYK 155.75 1.27 W.P.Carey WPC 71.69 0.70 Cintas CTAS 147.35 1.25 LincolnElectric LECO 86.34 -0.37
Ametek AME 68.89 0.66 CanNtlRlwy CNI 80.33 -0.67 t Enbridge ENB 36.22 -0.26 JacobsEngg JEC 59.82 -0.21 Weibo WB 108.58 3.42
OrbitalATK OA 132.89 -0.07 SumitomoMits SMFG 7.85 0.02 Wabtec WAB 75.26 -1.25 CiscoSystems CSCO 33.95 -0.04 LogitechIntl LOGI 35.10 -0.35
s Amphenol APH 88.48 0.27 CanNaturalRes CNQ 36.06 -0.46 Encana ECA 12.26 -0.39 JamesHardie JHX 15.97 -0.02 WesternDigital WDC 88.44 -0.48
Orix IX 85.10 -1.16 SunCommunities SUI 93.29 0.75 s Wal-Mart WMT 90.99 0.07 CitrixSystems CTXS 84.26 0.04 LogMeIn LOGM 115.60 0.10
AnadarkoPetrol APC 50.23 -0.88 CanPacRlwy CP 173.35 -1.91 EnelAmericas ENIA 10.20 -0.10 s JanusHenderson JHG 37.04 0.62 WillisTwrsWatson WLTW 161.49 -0.08
Oshkosh OSK 85.51 0.61 SunLifeFinancial SLF 38.93 0.05 WasteConnections WCN 70.15 0.86 s Cognex CGNX 137.50 1.14 lululemon LULU 64.60 -0.27
Andeavor ANDV 106.15 -1.05 Canon CAJ 38.38 -0.38 EnelChile ENIC 5.68 -0.01 J&J JNJ 139.76 0.20 Workday WDAY 106.17 -1.14
OwensCorning OC 82.20 0.31 s SuncorEnergy SU 36.30 -0.12 WasteMgt WM 82.14 0.82 CognizantTech CTSH 74.56 0.30 MKS Instrum MKSI 104.15 ... s WynnResorts WYNN 155.24 1.21
AB InBev BUD 117.77 -0.39 CapitalOne COF 86.95 -0.20 EnelGenChile EOCC 25.90 -0.22 t JohnsonControls JCI 36.00 -0.93 PG&E PCG 56.89 -0.06 s Coherent
SunTrustBanks STI 57.33 0.54 Waters WAT 194.64 1.43 COHR 301.32 -7.65 MarketAxess MKTX 174.52 1.03
AnnalyCap NLY 11.38 0.14 CardinalHealth CAH 58.33 -0.22 EnergyTransferEq ETE 16.72 -0.75 s JonesLang JLL 148.16 2.40 PLDT PHI 31.58 -2.55
Xilinx XLNX 72.33 0.46
SynchronyFin SYF 32.59 0.52 Watsco WSO 164.38 -0.67 Comcast A CMCSA 37.25 0.40 Marriott MAR 120.39 0.28 Yandex YNDX 31.62 0.63
AnteroResources AR 19.89 -0.37 Carlisle CSL 109.10 0.03 EnergyTransfer ETP 16.80 0.26 JuniperNetworks JNPR 25.36 0.36 PNC Fin PNC 132.23 -0.25 CommerceBcshrs CBSH 55.84 0.66
Syngenta SYT 92.30 0.02 WellCareHealth WCG 201.65 1.10 MarvellTech MRVL 20.13 ... Zillow C Z 39.12 -0.42
Anthem ANTM 218.46 0.19 CarMax KMX 72.35 -0.33 Entergy ETR 86.64 1.51 KAR Auction KAR 48.25 -0.24 POSCO PKX 71.29 -0.74 CommScope COMM 33.94 0.15
Sysco SYY 54.02 -0.17 WellsFargo WFC 53.72 -0.09 MatchGroup MTCH 28.69 0.23 Zillow A ZG 39.20 -0.54
Aon AON 141.89 -1.36 Carnival CCL 65.98 1.32 EnterpriseProd EPD 24.36 -0.64 KB Fin KB 50.82 -0.37 PPG Ind PPG 114.55 -0.12 Copart CPRT 35.88 0.03
TAL Education TAL 29.56 0.16 Welltower HCN 68.32 0.20 MaximIntProducts MXIM 53.46 -0.08 ZionsBancorp ZION 45.43 1.50
Apache APA 43.49 -0.64 Carnival CUK 66.15 1.12 Equifax EFX 108.79 0.05 KKR KKR 19.23 -0.03 PPL PPL 36.63 0.34 CoStarGroup CSGP 296.43 -0.25
TE Connectivity TEL 93.36 -0.17 WestPharmSvcs WST 101.63 -0.02 MelcoResorts MLCO 25.13 0.02
ApartmtInv AIV 45.47 0.34 Caterpillar CAT 136.53 0.05 EquityLife ELS 90.57 1.15 KT KT 13.91 -0.42 PVH PVH 127.47 ...
ApolloGlblMgmt APO 29.19 -1.20 Celanese A CE 105.80 0.08 EquityResdntl EQR 70.15 0.90 KSCitySouthern KSU 105.12 0.32 PackagingCpAm PKG 112.36 2.09
Telus
Ternium
TU 38.06
TX 28.29
-0.19
-0.03
WestarEnergy WR 54.72
WestAllianceBcp WAL 53.75
0.95
0.33
Costco COST 171.46 0.10
Ctrip.com CTRP 46.48 0.81
MercadoLibre MELI 267.08
MicrochipTech MCHP 91.02
-3.79
-0.54
NYSE AMER
AquaAmerica WTR 36.44 0.46 Cemex CX 7.91 -0.19 EssexProp ESS 258.63 2.25 Kellogg K 63.76 -0.94 PaloAltoNtwks PANW 138.67 -1.68 TIM Part TSU 17.72 0.20 t WesternGasEquity WGP 36.27 CypressSemi CY 16.92 -0.05 s MicronTech MU 45.60 CheniereEnergy LNG 49.28 -0.47
-0.92 0.82
Aramark ARMK 42.85 0.17 CenovusEnergy CVE 10.94 -0.32 s EsteeLauder EL 126.32 1.71 KeyCorp KEY 17.92 0.28 ParkHotels PK 28.77 -0.04 TJX TJX 70.76 0.54 t WesternGasPtrs WES 44.61 -1.03 CyrusOne CONE 64.12 2.32 Microsemi MSCC 52.62 ... CheniereEnerPtrs CQP 27.71 -0.33
ArcelorMittal MT 29.02 -0.12 Centene CNC 94.36 0.68 EverestRe RE 228.55 -2.59 KeysightTechs KEYS 44.32 -0.24 ParkerHannifin PH 181.30 -0.93 TableauSoftware DATA 71.24 -0.91 WesternUnion WU 19.52 -0.62 DISH Network DISH 50.86 0.05 Microsoft MSFT 83.93 0.06 CheniereEnHldgs CQH 26.40 -0.42
ArcherDaniels ADM 39.74 -0.19 CenterPointEner CNP 29.63 0.22 EversourceEner ES 64.76 0.69 KilroyRealty KRC 74.48 -0.37 ParsleyEnergy PE 26.77 -0.41 TaiwanSemi TSM 42.01 0.29 WestlakeChem WLK 93.95 0.96 DentsplySirona XRAY 65.80 0.22 Middleby MIDD 109.16 -0.68 ImperialOil IMO 31.62 -0.41
Arconic ARNC 23.79 -0.45 CentraisElBras EBR 6.15 0.13 s Exelon EXC 42.09 0.79 KimberlyClark KMB 115.41 1.27 Pearson PSO 9.11 -0.01
s AristaNetworks ANET 225.15 4.10 CenturyLink CTL 15.33 -0.15 ExtraSpaceSt EXR 86.87 0.87 KimcoRealty KIM 18.95 -0.20 PembinaPipeline PBA 35.77 -0.03
ArrowElec ARW 78.07 -0.21 Chemours CC 51.91 1.84 ExxonMobil XOM 82.89 -0.05 t KinderMorgan KMI 17.46 -0.21 Pentair PNR 68.27 0.22
AstraZeneca AZN 32.91
Athene ATH 48.39
...
0.17
Chevron CVX 117.23 0.05
ChinaEastrnAir CEA 24.73 -0.44
s FMC
FactSet
FMC 94.88
FDS 195.89
1.66
-0.32
Knight-Swift KNX 38.04
Kohl's KSS 41.18
-0.34
-1.86
PepsiCo PEP 114.04 1.29
PerkinElmer PKI 71.27 -0.06 Exchange-Traded Portfolios | WSJ.com/ETFresearch
AtmosEnergy ATO 89.54 0.38 ChinaLifeIns LFC 17.42 -0.34 FederalRealty FRT 130.89 -1.12 KoninklijkePhil PHG 38.79 -0.24 Perrigo PRGO 86.80 -0.90
Autohome ATHM 61.19 -0.31 ChinaMobile CHL 51.19 -0.40 FedEx FDX 221.43 3.28 KoreaElcPwr KEP 17.17 -0.14 PetroChina PTR 70.20 -1.26 Closing Chg YTD
Autoliv ALV 123.25 -0.19 ChinaPetrol SNP 73.52 -0.97 Ferrari RACE 110.44 0.88 Kroger KR 22.14 0.06 PetroleoBrasil PBR 10.62 -0.09 Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
AutoZone AZO 595.26 -2.80 ChinaSoAirlines ZNH 38.15 0.20 FiatChrysler FCAU 17.31 0.04 Kyocera KYO 68.65 -0.96 PetroleoBrasilA PBR.A 10.06 -0.10 SPDR S&PMdCpTr MDY 332.86 0.19 10.3
Avalonbay AVB 188.11 0.95 ChinaTelecom CHA 50.00 -0.19 FibriaCelulose FBR 15.41 0.07 LATAMAirlines LTM 13.06 0.13 Pfizer PFE 35.30 0.12 Monday, November 13, 2017 Closing Chg YTD
Avangrid AGR 51.21 0.65 s FidelityNatlFin FNF 38.74 L Brands LB 48.95 -0.71 ETF Symbol Price (%) (%) SPDR S&P 500 SPY 258.33 0.09 15.6
ChinaUnicom CHU 15.51 0.31 0.19 PhilipMorris PM 103.51 0.49 Closing Chg YTD
AveryDennison AVY 107.94 2.75 t Chipotle LG Display LPL 13.32 -0.18 SPDR S&P Div SDY 92.68 0.26 8.3
CMG 277.50 -1.95 FNFV Group FNFV 17.50 0.25 Phillips66 PSX 93.32 -0.34 ETF Symbol Price (%) (%)
LINE iShMSCIEmgMarkets EEM 46.19 –0.22 31.9 TechSelectSector XLK 63.48 –0.03 31.3
AxaltaCoating AXTA 31.92 -0.06 Chubb CB 151.34 -0.01 FidelityNtlInfo FIS 92.85 0.09 LN 43.24 0.69 PinnacleFoods PF 54.03 -0.19
s 58.com AlerianMLPETF AMLP 10.33 –2.18 –18.0 iShMSCIEurozoneETF EZU 42.91 –0.37 24.0 UtilitiesSelSector XLU 56.17 1.19 15.6
BB&T BBT 46.49 0.36 ChunghwaTele CHT 33.69 -0.27 WUBA 73.00 4.14 L3 Tech LLL 185.12 0.90 PinnacleWest PNW 89.79 1.45
s BCE BCE 48.10 -0.12 LabCpAm LH 149.87 -0.59 CnsmrDiscSelSector XLY 92.68 0.34 13.9 iShMSCIJapanETF EWJ 58.82 –0.44 20.4 VanEckGoldMiner GDX 22.56 0.18 7.8
Church&Dwight CHD 45.54 0.79 FirstAmerFin FAF 53.96 -0.29 PioneerNatRscs PXD 156.92 -2.01
BHPBilliton BHP 42.70 -0.08 Cigna CI 197.61 -0.37 FirstData FDC 17.13 0.06 s LambWeston LW 52.78 0.82 CnsStapleSelSector XLP 54.59 0.57 5.6 iShNasdaqBiotech IBB 310.08 –0.67 16.8 VangdInfoTech VGT 164.77 –0.02 35.6
PlainsAllAmPipe PAA 20.36 -0.73
BHPBilliton BBL 37.37 -0.25 CimarexEnergy XEC 121.87 -3.18 FirstRepBank FRC 91.59 1.37 LasVegasSands LVS 67.25 -0.15 EnSelectSectorSPDR XLE 69.26 –0.57 –8.0 iShNatlMuniBdETF MUB 110.74 ... 2.4 VangdSC Val VBR 127.54 0.07 5.4
PlainsGP PAGP 20.88 -0.67
BP BP 39.88 -0.42 Citigroup s FirstEnergy FE 34.21 Lazard LAZ 47.69 0.40 iShRussell1000Gwth IWF 131.01 0.15 24.9 VangdSC Grwth VBK 155.56 0.01 16.8
C 71.99 -0.26 0.33 PolarisIndustries PII 120.28 0.92 FinSelSectorSPDR XLF 26.12 0.15 12.3
BRF BRFS 12.69 0.09 CitizensFin CFG 37.20 0.52 FleetCorTech FLT 181.42 0.87 Lear LEA 174.36 -1.07 Potash iShRussell1000ETF IWB 143.71 0.09 15.5 VangdDivApp VIG 97.29 0.20 14.2
POT 19.11 0.04 GuggS&P500EW RSP 97.05 0.15 12.0
t BT Group BT 16.23 -0.30 Clorox CLX 135.08 3.03 Fluor FLR 46.68 -0.36 Leggett&Platt LEG 45.81 -0.13 Praxair PX 148.15 -0.13 iShRussell1000Val IWD 119.48 0.11 6.7 VangdFTSEDevMk VEA 43.87 –0.39 20.1
HealthCareSelSect XLV 81.28 0.10 17.9
BWX Tech BWXT 60.58 0.08 Coca-Cola KO 46.72 0.18 FomentoEconMex FMX 86.99 0.96 Leidos LDOS 61.63 -0.24 PrincipalFin PFG 68.03 -0.03 iShRussell2000Gwth IWO 178.59 –0.05 16.0 VangdFTSE EM VWO 44.50 –0.20 24.4
IndSelSectorSPDR XLI 70.82 –0.34 13.8
BakerHughes BHGE 31.88 -1.07 Coca-Cola Euro CCE 39.42 -0.08 FordMotor F 12.16 0.15 Lennar A LEN 58.22 -0.49 Procter&Gamble PG 89.00 0.84 iShRussell2000ETF IWM 146.61 0.03 8.7 VangdFTSE Europe VGK 57.37 –0.54 19.7
iShIntermCredBd CIU 109.26 –0.08 1.0
Ball BLL 40.31 0.33 Coca-Cola Femsa KOF 68.52 -0.21 ForestCIty A FCE.A 25.37 0.45 Lennar B LEN.B 48.76 -0.79 s Progressive PGR 51.10 0.35 iShRussell2000Val IWN 121.67 0.02 2.3 VangdFTSEAWxUS VEU 53.44 –0.41 21.0
iSh1-3YCreditBond CSJ 104.87 –0.07 –0.1
BancoBilbaoViz BBVA 8.33 ... ColgatePalmolive CL 73.70 0.49 Fortis FTS 37.72 0.02 LennoxIntl LII 189.23 0.44 s Prologis PLD 67.07 0.85 iShRussell3000ETF IWV 152.85 0.07 14.9 VangdGrowth VUG 137.85 0.13 23.7
iSh3-7YTreasuryBd IEI 122.73 –0.08 0.2
BancodeChile BCH 89.09 -0.95 ColonyNorthStar CLNS 12.60 0.03 Fortive FTV 72.60 -0.05 LeucadiaNatl LUK 25.65 -0.01 PrudentialFin PRU 110.44 -0.28 iShRussellMid-Cap IWR 200.98 0.21 12.4 VangdHlthCr VHT 151.20 0.07 19.3
iShCoreMSCIEAFEETF IEFA 64.63 –0.43 20.5
BancoMacro BMA 113.97 -3.21 Comerica CMA 76.94 2.01 FortBrandsHome FBHS 64.43 0.46 s LibertyProperty LPT 44.87 0.28 Prudential PUK 48.79 0.15 iShRussellMCValue IWS 85.96 0.27 6.9 VangdHiDiv VYM 82.62 0.12 9.0
iShCoreMSCIEmgMk IEMG 55.78 –0.20 31.4
BcoSantChile BSAC 30.10 -0.29 SABESP SBS 9.09 0.19 Franco-Nevada FNV 83.39 -0.59 EliLilly LLY 82.86 -0.43 s PublicServiceEnt PEG 50.66 0.28 iShS&PMC400Growth IJK 208.86 0.20 14.6 VangdIntermBd BIV 83.96 –0.05 1.1
iShCoreMSCITotInt IXUS 61.78 –0.42 22.4 0.10
BancoSantander SAN 6.42 -0.04 ConagraBrands CAG 34.84 0.04 FranklinRscs BEN 40.81 -0.32 LincolnNational LNC 73.90 0.41 PublicStorage PSA 213.25 1.73 iShS&P500Growth IVW 149.52 22.8 VangdIntrCorpBd VCIT 87.19 –0.07 1.7
s PulteGroup PHM 31.57 0.42 iShCoreS&P500ETF IVV 260.10 0.11 15.6 0.09
BanColombia CIB 37.34 -1.29 ConchoRscs CXO 142.41 -0.80 Freeport-McMoRan FCX 14.43 0.02 LionsGate A LGF.A 30.69 -0.54 iShS&P500ValueETF IVE 109.03 7.5 VangdLC VV 118.63 0.10 15.9
BankofAmerica BAC 26.40 -0.11 ConocoPhillips COP 52.57 -0.42 FreseniusMed FMS 48.63 0.21 LionsGate B LGF.B 29.55 -0.50 Qudian QD 27.23 -0.28 iShCoreS&PMdCp IJH 182.59 0.23 10.4 iShUSPfdStk PFF 38.21 0.05 2.7 VangdMC VO 149.26 0.21 13.4
iShCoreS&PSmCpETF IJR 73.48 0.18 6.9 iShTIPSBondETF TIP 113.70 –0.01 0.5 VangdMC Val VOE 106.49 0.31 9.6
iShS&PTotlUSStkMkt ITOT 59.10 0.10 15.2 iSh1-3YTreasuryBd SHY 84.13 –0.01 –0.4 VangdREIT VNQ 85.36 0.51 3.4
iShCoreUSAggBd AGG 108.99 ... 0.9 iSh7-10YTreasuryBd IEF 105.78 –0.05 0.9 VangdS&P500 VOO 237.32 0.12 15.6
New Highs and Lows | WSJ.com/newhighs Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
iShSelectDividend
iShEdgeMSCIMinEAFE
DVY
EFAV
95.22
71.24
0.34 7.5
–0.45 16.4
iSh20+YTreasuryBd
iShRussellMCGrowth
TLT
IWP
124.36
116.33
0.21
0.09
4.4
19.4
VangdST Bond
VangdSTCpBd
BSV
VCSH
79.41
79.63
–0.05
–0.01
–0.1
0.3
iShEdgeMSCIMinUSA USMV 51.75 0.33 14.4 PIMCOEnhShMaturity MINT 101.77 0.04 0.4 VangdSC VB 142.38 0.01 10.4
FrankFTSEJapan FLJP 25.83 -0.3 TheStreet TST 1.56 33.7
FrankFTSEJapanHdg FLJH 25.77 -0.4 TrilliumTherap TRIL 10.70 5.9 iShGoldTr IAU 12.28 0.16 10.8 PwrShQQQ 1 QQQ 153.87 0.12 29.9 VangdTotalBd BND 81.43 0.01 0.8
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in FrankFTSEMexico FLMX 24.75 -1.2 USA Tech USAT 7.60 7.1 iShiBoxx$InvGrCpBd LQD 119.91 0.02 2.3 PwrShS&P500LoVol SPLV 47.13 0.38 13.3 VangdTotIntlBd BNDX 54.82 0.02 1.0
the latest session. % CHG-Daily percentage change from the previous trading session. FrankFTSE SKorea FLKR 25.39 -1.5 USA Truck USAK 17.18 0.5 iShiBoxx$HYCpBd HYG 87.05 –0.07 0.6 PwrShSrLoanPtf BKLN 23.03 ... –1.4 VangdTotIntlStk VXUS 55.48 –0.45 20.9
FrankFTSETaiwan FLTW 25.38 -0.3 UniversalDisplay OLED 178.71 0.7 iShJPMUSDEmgBd EMB 114.58 0.11 4.0 SPDRBloomBarcHYBd JNK 36.64 –0.11 0.5 VangdTotalStk VTI 132.61 0.05 15.0
FrankFTSE UK FLGB 24.57 -1.2 UnivLogistics ULH 22.85 0.9 iShMBSETF MBB 106.52 0.02 0.2 SPDR Gold GLD 121.31 0.15 10.7 VangdTotlWrld VT 72.14 –0.15 18.3
Monday, November 13, 2017
GuggBS2027CorpBd BSCR 19.90 ... UroGenPharma URGN 44.63 5.4 iShMSCIACWIETF ACWI 70.28 –0.14 18.8 SchwabIntEquity SCHF 33.86 –0.29 22.3 VangdValue VTV 101.66 0.10 9.3
52-Wk % 52-Wk % 52-Wk % iShiBondsDec2027Cp IBDS 24.72 -0.2 VascularBiogenics VBLT 8.05 3.3 iShMSCIBrazilCap EWZ 38.95 0.31 16.8 SchwabUS BrdMkt SCHB 62.39 0.11 15.2 WisdTrEuropeHdg HEDJ 64.67 –0.40 12.7
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg HancockMultiSC JHSC 24.90 -0.4 VeriSign VRSN 111.37 1.3
iShMSCI EAFE EFA 68.99 –0.42 19.5 SchwabUS LC SCHX 61.73 0.11 15.9 WisdTrJapanHdg DXJ 57.94 –0.38 17.0
TysonFoods TSN75.83 2.0 PitneyBowes PBI 9.86 -3.4 NuShESGUSAggBd NUBD 24.92 -0.2 Wingstop WING 39.20 2.2
iShMSCIEAFESC SCZ 61.97 –0.67 24.3 SPDR DJIA Tr DIA 234.66 0.10 18.8 XtrkrsMSCIEAFE DBEF 31.79 –0.19 13.3
NYSE highs - 100 Valhi VHI
VirtusGlbDiv&Incm ZTR
4.64 6.0
13.79 -1.4
PitneyBowesNt43 PBIpB
PPlus CZN-1 PIY
23.84 -2.8
19.26 -15.8
ProShrUSCnsmrSvc SCC
ProShrUSRlEst SRS
27.95
28.51
-2.9
-0.9
WisdTrChinaxSOE CXSE
WynnResorts WYNN
86.59
156.40
0.6
0.8
AberdeenGrChinaFd GCH 12.51 ... VirtusGlbMulti VGI 19.46 0.3 PrestigeBrands PBH 40.11 2.1 ProShrUSUtil SDP 22.85 -3.0 XOMA XOMA 33.00 0.2
AirProducts APD 163.56 1.5 VishayPrecision VPG 50.19 ... ZAGG ZAGG 20.43 3.1

Nasdaq lows - 85 Mutual Funds | WSJ.com/fundresearch

26.40 4.2 Quantum QTM 4.22 -14.4 SchwabSrtTRmUSTrsr SCHO
AlexandriaRlEst ARE 127.15 ... VMware VMW 122.44 -0.3 RedwoodTrust RWT 14.62 ... USAA IntlVal UIVM 49.70 -0.6 Net YTD Net YTD
Ameren AEE 63.42 1.5 WEX WEX 125.56 ... RitchieBros RBA 24.08 -1.0 USAA USA SC Val USVM 49.04 0.1 Fund NAV Chg %Ret Fund NAV Chg %Ret
AEP AEP 76.30 1.8 Wal-Mart WMT 91.98 0.1 SalientMidstream SMM 10.05 -2.7 VanEckHiIncmInfra YMLI 12.96 -2.1
AcaciaComms ACIA 35.53 1.9 EqtyInc r 33.86 +0.01 11.3 MuHYAdml 11.42 -0.01 7.2
AmericanFin AFG 106.61 0.4 WarriorMetCoal HCC 28.58 2.5 SandRidgeMS SDT 1.19 -4.0 VirtusGlovistaEM EMEM 24.75 -1.1
AcadiaHealthcare ACHC 27.56 0.7 Oakmark 84.56 -0.10 16.7 MuIntAdml 14.17 -0.01 4.5
Amphenol APH 88.62 0.3 WW Ent WWE 27.71 1.2 SandRidgeMS II SDR 1.19 -5.3 AMDA 3.13 -7.9
Explanatory Notes Data provided by
OakmrkInt 28.51 -0.14 25.6 MuLTAdml 11.69 -0.01 5.9
AnthemUn ANTX
ApolloGlMgmtPfdA APOpA
54.89 0.2 XcelEnergy
26.62 0.6
XEL 50.85 1.2 SpectraEnerPtrs SEP 40.01 -2.2 NYSE American highs - 4 Amedica
AmCapSeniorFloat ACSF 10.40 -1.4 Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of Old Westbury Fds MuLtdAdml 10.95 ... 2.4
SpiritRealtyPfdA SRCpA 23.87 -0.4 AmTrustFinSvcs AFSI 9.23 -7.9 LrgCpStr 14.86 -0.02 15.8 MuShtAdml 15.77 ... 1.3
BGI 2.69 19.0
AristaNetworks ANET
ArmadaHoffler AHH
227.13 1.9
15.23 0.7
NYSE lows - 102 THLCreditSrLoan TSLF
TownsquareMedia TSQ
16.40 -0.2
7.44 -2.7
Birks
LadenburgThalmann LTS 3.33 -2.4 Andersons ANDE 29.60 -1.5
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting Oppenheimer Y PrmcpAdml r135.53 +0.24 24.5
AMC 10.80 5.9 TrioTech TRT 7.21 7.3 AppliedDNASciWt APDNW 0.21 -7.7 DevMktY NA ... NA REITAdml r 120.91 +0.60 6.3
AsiaPacificFund APB 14.82 1.3 AMC Ent UniversalHealthB UHS 95.59 0.1 annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
AZZ 43.95 -0.8 WirelessTel WTT 2.12 4.5 AquaMetals AQMS 3.45 -3.5 IntGrowY 42.56 -0.27 22.7 SmCapAdml 68.24 +0.03 11.5
BCE BCE 48.40 -0.2 AZZ VoyaPrimeRate PPR 5.00 0.2 NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
AquinoxPharm AQXP 10.35 -3.1 STBondAdml 10.41 -0.01 1.2
CBRE Group CBG 42.21 1.6 AllerganPfdA AGNpA 619.59 1.4
CMS Energy CMS 49.85 0.7 Allergan AGN 169.61 1.3
WstAstCpLoanFd TLI
WesternGasEquity WGP
10.45 -0.3
36.11 -2.5 NYSE American lows - 11 ArcadiaBiosci RKDA 0.26 -1.6 return. 3-YR%RET is trailing three-year return annualized. P STIGradeAdml 10.66 -0.01 2.1
AXE 62.40 0.3 Atlanticus ATLC 2.13 -6.5 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e TotBdAdml 10.74 ... 3.1
CabotOil COG 29.26 0.2 AnixterIntl WesternGasPtrs WES 44.26 -2.3AmShrHosp AMS 2.65 -6.7 Parnassus Fds
AzurRxBioPharma AZRX 2.60 -5.7
ChinaZenixAuto ZX 2.32 71.1 AnteroMidstream AMGP 17.20 -2.3 WideOpenWest WOW 11.28 -3.3BallantyneStrong BTN 4.76 ... Biocept BIOC 0.64 -15.8
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, ParnEqFd 44.25 +0.16 13.6 TotIntBdIdxAdm 21.91 ... 2.0
ConEd ED 88.66 1.3 AnteroMidstream AM 26.81 -2.2
Willbros WG 1.33 -6.8 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r PIMCO Fds Instl TotIntlAdmIdx r 29.79 -0.13 23.3
Banro BAA 0.13 -54.8 BlackRockCapInvt BKCC 6.77 -1.2
ConstBrands B STZ.B 221.28 1.4 ApolloSrFRFd AFT 16.18 -0.2
WorldFuelSvcs INT 26.05 -0.2CRH Medical CRHM 1.55 -2.9 apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not AllAsset NA ... NA TotStAdml 64.56 +0.06 16.7
ARD 19.79 -0.6 CHF Solutions CHFS 4.11 -4.9
ConstBrands A STZ 221.50 1.0 Ardagh XeriumTech XRM 3.79 -5.0CanFiteBiopharm CANF 1.31 -1.4 CMSevenStarAcqnRt CMSSR 0.30 -4.6 available due to incomplete price, performance or cost data. NE-Not released by Lipper; TotRt 10.25 -0.01 4.6 TxMIn r 14.09 -0.06 22.4
Cooper-Standard CPS 120.99 -0.2 AvonProducts AVP 1.87 -2.1 ValAdml 39.65 +0.04 11.5
eMagin EMAN 1.65 -8.3 CPI Card PMTS 0.81 -3.2 data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. PIMCO Funds A
Cott
CubeSmart
COT
CUBE
16.38 1.1 BT Group
29.67 0.1 Barclays
BT
BCS
16.22 -1.8
9.29 -0.8 NYSE Arca highs - 52 FT EnerIncome FEN 22.03 -2.3 CapitalaFinance CPTA 7.55 1.4 IncomeFd
PIMCO Funds D
NA ... NA WdsrllAdml 68.72 -0.11
WellsIAdml 65.15 +0.04
11.3
7.9
BKH 57.26 1.3 IMPAC Mortgage IMH 10.85 -4.5 CheckpointTherap CKPT 4.61 -4.3
DCT Industrial DCT 60.82 1.6 BlackHills BarclaysWILETN WIL 65.16 ...
KlondexMines KLDX 2.16 -8.4 IncomeFd NA ... NA WelltnAdml 73.59 +0.02 11.2
9.77 -1.0 Chimerix CMRX 4.27 -10.9 Monday, November 13, 2017
DTE Energy DTE 114.33 1.6 BlkRk2022GlbIncm BGIO CnsmrDiscSelSector XLY 92.87 0.3
NeubrgBermMLPIncm NML 8.48 -2.0 PIMCO Funds Instl WndsrAdml 78.94 +0.04 15.0
CoherusBioSci CHRS 9.10 -9.0 Net YTD Net YTD Net YTD
Danaher DHR 93.38 1.2 BlueCapReins BCRH 12.10 -1.6 DirexCSI300CnABl2 CHAU 30.20 0.4
RegionalHlthProp RHE 0.28 -3.4 IncomeFd NA ... NA VANGUARD FDS
BPL 49.39 -1.5 Compugen CGEN 2.35 -4.9 Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret
DaqoNewEnergy DQ 41.53 0.9 BuckeyePtrs DirexHmbldrBull3 NAIL 74.55 1.4
PIMCO Funds P DivdGro 26.41 +0.03 14.4
19.20 0.5 ConsldComm CNSL 13.55 -4.4
85.09 -0.7 BylineBancorp BY DirexRealEstBl3 DRN 24.25 1.6
DollarGeneral DG
DukeEnergy DUK 90.22 1.1 CBL AssocPfdE CBLpE 21.67 -3.4 DirexUtilBl3X UTSL 32.98 2.7 Nasdaq highs - 74 Criteo
Curis
CRTO
CRIS
34.76 0.7
0.99 -16.3
A TotRetBdI NA ... NA FrankTemp/Franklin A
CA TF A p 7.48 ... 5.6
IncomeP
Price Funds
NA ... NA HlthCare r 208.89 -0.10
INSTTRF2020 22.48 -0.02
16.2
11.6
CMG 263.00 -0.7
EsteeLauder EL 126.99 1.4 Chipotle
12.87 -2.4
EcoLogicalStrat HECO 42.91 0.7 AlignTech ALGN 257.60 1.7
CytoriTherapWt CYTXW 0.02 -17.3 American Century Inv E Fed TF A p 11.98 ... 3.3 BlChip 97.24 +0.17 33.9 INSTTRF2025 22.75 -0.01 13.1
EvercoreA EVR 83.95 3.8 ClearBridgeEnMLPFd CEM Entrepreneur30Fund ENTR 15.69 ... AllenaPharm ALNA 12.50 3.6
10.67 -1.6 DBVTechnologies DBVT 21.76 -2.4 Ultra 45.11 +0.01 29.3 Edgewood Growth Instituti IncomeA p NA ... NA CapApp 29.69 +0.02 13.4 INSTTRF2030 22.94 -0.01 14.4
Exelon EXC 42.18 1.9 ClearbridgeEngyMLP EMO FidelityRealEst FREL 25.36 0.3 AltairEngg ALTR 21.78 4.6
FMC FMC 95.25 1.8 CoeurMining CDE 7.10 0.1 FidelityMSCIUtils FUTY 36.49 1.0 Amazon.com AMZN1139.90 0.3
FTD FTD 7.38 -6.2 American Funds Cl A EdgewoodGrInst 29.53 +0.06 33.0 RisDv A p 60.76 +0.07 16.4 EqInc 34.71 +0.03 11.8 INSTTRF2035 23.14 -0.01 15.7
FidelityNatlFin FNF 38.83 0.5 CommunityHlthSys CYH 4.25 -2.5 FTHeitmanPrmRlEst PRME 20.52 0.1 AptoseBiosci APTO 2.09 20.6
FibrocellScience FCSC 1.58 -6.8 AmcpA p 31.84 +0.02 18.6 FrankTemp/Franklin C EqIndex 69.52 +0.06 17.2 INSTTRF2040 23.33 -0.02 17.0
58.com WUBA 74.77 6.0 CushingTotRetFd SRV 10.59 -1.9 FrankFTSEChina FLCH 25.70 0.1 CRA Intl CRAI 44.39 -1.9
ForwardPharma FWP 4.28 1.1 AMutlA p 41.17 +0.03 13.4 F Income C t NA ... NA Growth 70.23 +0.12 31.9 INSTTRF2045 23.47 -0.02 17.5
FirstIndRlty FR 32.24 2.1
CustomersBancorp CUBI 24.75 3.4 FrankFTSE HK FLHK 26.14 0.9 CadenceDesign CDNS 44.69 1.4
GlobalEagle ENT 1.72 -1.1 BalA p 27.44 +0.02 12.3
Federated Instl
FrankTemp/Temp A HelSci NA ... NA IntlVal 39.16 -0.20 23.3
DieboldNixdorf DBD 17.75 -1.7 GlbXSciBetaAsiaXJ SCIX 26.52 0.1 HenrySchein HSIC 65.72 -0.8 BondA p 12.90 ... 3.0 GlBond A p NA ... NA InstlCapG 39.59 +0.04 35.4 LifeGro 33.07 -0.03 15.7
FirstEnergy FE 34.50 1.0 CambiumLearning ABCD 7.30 1.3 HoughtonMifflin HMHC 8.45 -3.4 CapIBA p 62.73 -0.12 11.5 StraValDivIS 6.40 ... 11.4 Growth A p NA ... NA LifeMod 26.87 -0.02 12.4
DoverDowns DDE 0.92 -0.4 GraniteBloomComm COMB 26.40 -0.2 IntlStk 19.13 -0.07 25.1
Gannett GCI 10.88 4.2 CanterburyPark CPHC 13.95 -1.9 CapWGrA 52.22 -0.06 Fidelity
GeoPark GPRK 9.98 -4.0
Duff&PhelpsSelEn DSE 5.37 -3.7 GuggChinaAllCap YAO 35.78 0.5 CareerEducation CECO 13.10 6.0
INC Research INCR 35.75 -5.5 21.0 FrankTemp/Temp Adv
500IdxInst 90.55 +0.09 17.4 GlBondAdv p NA IntlValEq 15.08 -0.07 17.7 PrmcpCor 26.78 +0.03 20.7
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RISE Education REDU
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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | B9

BANKING & FINANCE

Citigroup’s Credit Card Plans Hit Snag

Bank’s stock is up 22% sprawling empire is getting a
lot of attention, in part be-
this year, but cracks in cause credit cards have been a
a crucial unit stand to crucial business for a bank
that has spent much of its ef-
complicate the picture forts getting smaller and sim-
pler.
BY TELIS DEMOS Citigroup is the largest card
AND ANNAMARIA ANDRIOTIS lender globally by some mea-
sures and is the second-big-
One of the bright spots in gest in the U.S. by balances,
Citigroup Inc.’s turnaround according to industry tracker
strategy is starting to lose a the Nilson Report, even as it
little luster. has cut hundreds of U.S.
For years, the New York- branches since the financial
based bank has steadily ex- crisis.
panded its card business, Among the factors pressur-
boosting loans and investing ing the business are more ac-
heavily despite problems else- tivity on cards that don’t tend
where that ranged from head- to generate as much lending
aches in Mexico to regulatory income and consumers’ in-
problems that lingered after creasing demand for re-
the financial crisis. wards. “It’s clear that the
But now, some cracks in the company has gotten off to a
card business have emerged, slower-than-expected start” on
raising questions just as Chief meeting card-growth goals,
Executive Michael Corbat has Compass Point analyst Charles
shored up the bank’s other is- Peabody wrote in a note.
sues. The worries contrast with
This summer, the bank low- an overall rise in investor ex-
ered its return-on-asset pro- pectations. Citigroup’s stock
jection for Citi-branded credit has risen 22% in 2017, the
cards to at least 2.15% from highest gain among the big
2.25%. The seemingly narrow U.S. banks. Mr. Corbat has de-
slice of one part of Citigroup’s clared restructuring at the
Profit Pinch
Citigroup credit-card net income*
$700 million
600
Quarterly
500
400
300
200
100
0 4%
2014 ’15 ’16
*Citi-branded cards, North America †As of Sept. 30.
Source: the companies
once-troubled bank over, and
in July, it unveiled a plan to
return more than $60 billion
in capital to shareholders by
2020 through dividends and
share buybacks.
To sustain that momentum,
the bank has made consumer
cards a priority. Today, cards
make up 24% of Citigroup’s to-
tal lending—a far bigger share
than its rival big banks, in-
cluding J.P. Morgan Chase &
Co. and Bank of America
Corp., which remain focused
Credit cards as a percentage
of total lending†
Citigroup
24%
J.P. Morgan
15%
Bank of America
10%
Wells Fargo
’17
THE WALL STREET JOURNAL.
on mass-market retail bank-
ing.
While revenue and profits
in the U.S. branded-card busi-
ness haven’t taken off in re-
cent years, the bank’s aim was
for its investments to start
paying off in the second half
of this year. However, in the
third quarter, North American
revenue from Citi-branded
cards fell 1% from a year ago.
The bank did increase the
unit’s revenue from the second
quarter to the third quarter.
Its results compare with a July
forecast for 3% annual revenue
growth through 2020 in the
unit.
In October, Chief Financial
Officer John Gerspach told an-
alysts that “we are seeing
slower-than-anticipated reve-
nue growth,” due largely to in-
creases in “the competitive
dynamics in the rewards offer-
ings in the U.S.” The bank also
has noted heavy volume in
card partnerships with big
merchants, which has resulted
in cards that people tend to
use for spending rather than
borrowing.
Still, Citigroup didn’t
change its longer-term growth
or return forecasts for the
branded-card business. Citi-
group has sought to boost
growth in part by promoting
no-interest card borrowing, a
tactic that it has long used.
Over the past three years
through September, the bank
has mailed about 1.9 billion of-
fers in the U.S. for credit cards
with zero-percent interest for
a promotional period, accord-
ing to market research firm
Mintel Group Ltd.
The maneuvers have helped
the bank maintain and expand
its vast card business. Citi-
group in 2015 outbid American
Express Co. to win the rights
to issue credit cards for shop-
pers at retail giant Costco
Wholesale Corp., adding mil-
lions of new accounts and
more than $10 billion in loans.
But giving up interest for a
period has been costly, espe-
cially during a period of rising
interest rates that ordinarily
would boost the bank’s lend-
ing revenue. The bank’s aim
has long been to dial back
these offers, increase interest
income and lean on other en-
ticements such as its mobile
application features or re-
wards points.
Under global cards head
Jud Linville, who joined Citi-
group in 2010 from American
Express, the bank has invested
to boost cards’ appeal. It in-
troduced new proprietary
cards such as the Double Cash
card, made it easier to spend
rewards points online and is
adding new mobile functions
this year. The goal is “building
huge engagement with our
customers,” Mr. Linville said in
an interview earlier this year.

Egypt Draws Investors in Search of Yield BNY

BY IRA IOSEBASHVILI Mellon
One of the most popular
emerging-market trades is in a
Middle Eastern currency that
Picks CFO
was shunned by investors just BY JUSTIN BAER
a year ago.
Large bond-fund managers Bank of New York Mellon
such as T. Rowe Price Group Corp. reshuffled its manage-
Inc. and J.P. Morgan Chase & ment Monday as a first step in
Co. and other investors have new Chief Executive Charles
poured money into Egyptian Scharf’s bid to put his stamp
government debt this year, fol- on the custody bank.
lowing a sharp drop in the BNY Mellon said it named
Egyptian pound that made the Michael Santomassimo the
debt more attractive to for- bank’s finance chief, succeed-
eign buyers. About 60% of the ing Thomas Gibbons. BNY
70 local-currency bond funds Mellon also divided up its
tracked by data group eVest- largest business among three
ment held Egyptian debt at managers, including Mr. Gib-
the end of the third quarter, bons. The restructuring will
compared with virtually none trigger the exit of Brian Shea,
at the same time last year. a 34-year company veteran
A buyer of government who had overseen some 75%
MOHAMED ABD EL GHANY/REUTERS

bonds denominated in the of the firm’s operations.

Egyptian pound can collect Mr. Gibbons, who served as
around 18% annually on the BNY Mellon’s CFO for the past
country’s three-month trea- nine years, will slide over to a
sury bill as of late last week, new role running a cluster of
due to moves by Egypt’s cen- businesses, including clearing,
tral bank, which has increased trading and treasury services,
interest rates sharply over the the bank said Monday. The
past year. By comparison, the bank also appointed Hani Kab-
yield on a three-month U.S. Egypt’s central bank has raised key interest rates by 7 percentage points in the past year. A Cairo open-air market is seen here. lawi as CEO of asset servicing
Treasury bill was 1.213% as of and chairman of Europe, the
Monday. risky investments. the end of October. which has already disbursed guarantee to exchange Egyp- Middle East and Africa. Fran-
The rush to own Egypt’s Because Egyptian bonds are “It was a very good trade,” two tranches of its loan, total- tian pounds for foreign cur- cis La Salla was named CEO of
bonds, rated six notches below thinly traded, any bad news Mr. Barrineau said. “Better to ing some $4 billion. rency for investors looking to issuer services.
investment grade by Moody’s that causes many investors to sell now than…when everyone Egypt’s improving macro- cash out, regardless of liquid- A familiar name on Wall
Investors Service, shows how sell at once could overwhelm is trying to get out at once.” economic fundamentals and ity conditions. Street for his previous roles at
far investors will go to harvest the market and cause prices to Investors began looking at sky-high interest rates made it Persistent dollar shortages Visa Inc. and J.P. Morgan
returns in a world where plunge. the pound after the currency a tempting proposition for in past years have occasionally Chase & Co., Mr. Scharf suc-
yields in developed markets “The trade is a little bit ex- plummeted 50% following the money managers. made it difficult for money ceeded longtime BNY Mellon
remain near historic lows. hausted,” said Jan Dehn, head decision by Egypt’s central Foreign capital flows to managers to repatriate profits chief Gerald Hassell in July.
“Egypt is one of those idio- of research at Ashmore Group, bank in November 2016 to Egypt hit a record of $21.1 bil- from the country. Egyptian of- The changes eliminate a layer
syncratic stories that everyone which owned Egypt’s local scrap a peg of 8.8 pounds to lion in the first half of this ficials have kept the guarantee of management between the
is very desperate for these currency bonds earlier this the U.S. dollar ahead of a $12 year, compared with $7.4 bil- in place despite an IMF recom- new CEO and the businesses
days,” said Denise Prime, co- year. “I think it’s on its last billion loan from the Interna- lion in the first half of 2016, mendation to phase out the that make up BNY Mellon’s
manager of the emerging-mar- legs.” Mr. Dehn declined to say tional Monetary Fund. data from the Institute of In- program, as it plays an impor- core servicing arm.
ket bond strategy at GAM UK whether his firm still had a To support the pound and ternational Finance show. tant role in attracting foreign “When your senior manage-
Ltd. Her fund holds Egypt’s position in the bonds. combat inflation, the central S&P Global Ratings on Fri- capital, the IMF said in a re- ment is a step closer to the
debt, which it purchased at Some money managers bank has raised key interest day revised its outlook on port. businesses, you’re closer to
the beginning of 2017. have been happy to take prof- rates by 7 percentage points Egypt to positive from stable, “One of the things we clients,” Mr. Scharf said Mon-
But some investors fear the its. Jim Barrineau, co-head of over the past year, making citing a strengthening econ- wanted to know was whether day.
trade could reverse suddenly emerging-market debt at Egypt’s local debt more attrac- omy and the country’s grow- we can get our dollars back,” BNY Mellon also added five
for a variety of reasons, in- Schroders, said concerns over tive to yield-hungry foreign ing foreign-exchange reserves, said Colm McDonagh, head of managers, including Messrs.
cluding any rise in political in- high inflation pushed him re- money managers. which rose to $36.7 billion in emerging-markets fixed in- Santomassimo, Kablawi and La
stability, faster-than-expected cently to sell Egyptian local- The country’s newly flexible October from $19 billion a come at U.K.-based Insight In- Salla, to its executive commit-
tightening by major central currency bonds his firm had exchange rate, fiscal deficit re- year earlier. vestment. He said his firm tee. The bank also said it
banks or other developments invested in earlier this year. ductions and other changes Many investors have taken holds Egyptian bonds, which it would add a head of digital to
that could dent appetite for Inflation stood above 30% at won praise from the IMF, comfort in the central bank’s purchased in February. help lead its technology push.

STREET cades, a rate that is also much

higher than the rest of the
world. If big companies can
raise equity more cheaply—that
Continued from page B1 is, investors are willing to pay
age lower than their larger more and so accept a lower fu-
brethren for otherwise identi- ture return than on small com-
cal companies, and so future panies—it makes sense to
returns higher. merge to get bigger.
Since the effect was docu-
World-wide, though, IPOs
remain a popular option.
More than 1,450 companies
globally have gone public so
far in 2017, putting this year
on track to become the busi-
est for new listings since
2007, according to Dealogic
data through Friday. Roughly
two-thirds of the IPOs were
for the investor, debt is even
more expensive than stocks.
If companies choose to
stay private longer than they
The Incredible Shrinking Stock Market
Fewer companies are listed in
the U.S. than in 1975...
...and the proportion of very
small companies* has collapsed.
did, it is because they can get
8,000 60%
cheaper money privately. And
cheaper equity for companies 7,000 50
means lower returns for the
private-equity investor. 6,000 40

M
mented by academics in the in the Asia-Pacific region, arkets working better 5,000 30
early 1980s, smaller companies
have stopped beating the mar-
If big companies can which has roared past the
U.S. to become the dominant
is good for the econ-
omy, but monopoly 4,000 20
ket. It looks as though CEOs raise equity more region for new stock listings. power isn’t. Big companies
3,000 10
and founders took notice and
changed strategy to avoid the
cheaply, it makes CEOs and CFOs should know
more about their company’s
have become more dominant,
helped by complex intellectual- 1980 ’90 2000 ’10 1980 ’90 2000 ’10
higher financing costs that sense to merge. prospects than outsiders, so if property law and regulations
came from being a small com- they have a choice of ways to that make life tough for new Smaller companies used to beat the market, but haven't
pany on the stock market. finance, the one they pick is entrants, by the network ef- outperformed since the early 1980s.†
More listed companies chose probably offering a better deal. fects of new technology, by 600%
to sell to rivals to get bigger, Takeovers aren’t the full But the asset class offering the cheaper financing and, some 500
and fewer opted for IPOs in the story, though. In the past two best deal to the company is critics allege, by lax antitrust
first place. decades, money has flooded also the one offering the worst enforcement. Studies show big 400
The result is that the aver- into venture capital and private deal to the investor. companies tend to be less inno- 300
age listed company is far bigger equity, with buyout funds now Plenty of other factors affect vative and invest less in re- 200
than it was, and there are far sitting on a record $954 billion return, but if lots of companies search, which ultimately hurts
fewer very small companies, available for deals, according choose to finance via IPOs—as growth. Cheap venture finance 100
data from René Stulz, director to Preqin data. in the late 1990s—then stocks is great for innovation, but the 0
of the Dice Center for Research are probably overvalued. If link from the IPO drought to

T
in Financial Economics at he small-company CEO
Ohio State University, show. can choose between an
Since 1997, on average 5.6% IPO and selling to pri-
of listed companies have been vate funds—and private money
bought each year, against just is more easily available than
3.9% in the previous two de- ever before. Why bother to list?
–100
they mostly choose to finance oligopoly is visible in the Sili-
via debt—as they did before con Valley startup: Where once 1930 ’40 ’50 ’60 ’70 ’80 ’90 2000 ’10
the subprime crisis—then debt they fantasized about ringing *Worth less than $100 million, inflation-adjusted †Performance of long-short porfolio
is probably overvalued. For the the NYSE bell after listing, now Source: Prof René Stulz, Ohio State University (total companies, proportion of small
past few years, bonds have been their aim is to sell out to Al- companies); Kenneth French Data Library (performance)
THE WALL STREET JOURNAL.
popular again, suggesting that phabet or Amazon.
 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
B10 | Tuesday, November 14, 2017
Bitcoin Loses 25% in Latest Wild Swing
Canceled software
update and concerns
about coming futures
hit cryptocurrency
BY STEVEN RUSSOLILLO
AND PAUL VIGNA
The booming bull market
for bitcoin has hit another
speed bump.
Bitcoin slumped more than
25% in recent days, falling be-
low $6,000 after touching a
record just shy of $7,900 last
week. A canceled software up-
grade, concerns about the
coming launch of bitcoin fu-
tures and fears of an asset
bubble weighed on the crypto-
currency, which is known for
sharp swings.
On Monday, bitcoin prices
regained some of their losses
in volatile trading. It traded as
high as $6,770, according to
CoinDesk, up about 16% for
the day, then slid back to
about $6,500.
Even with the decline, bit-
coin is still up more than 500%
this year and has a market
capitalization of about $100
billion.
The latest drop marked the
fifth time this year that bit-
coin has fallen more than 20%
from a recent high, according
to research site CoinDesk. Bit-
coin traded at about $6,500
late Monday.
The recent decline came af-
ter last week’s suspension of
plans that would have split the
digital currency into two com-
peting versions.
A group proposing to
SANDY HUFFAKER/GETTY IMAGES
Mattel’s shares surged 21% on news of a takeover bid from rival Hasbro, whose shares also moved higher Monday. Mattel’s booth at Comic Con in San Diego in July.
Stocks Rise as Corporate Action Picks Up
BY AKANE OTANI
AND MARINA FORCE
U.S. stock indexes inched
higher following a flurry of
corporate news.
The gains came after stocks
slipped last week when inves-
tors became concerned about
the prospects for tax cuts.
The Dow
MONDAY’S Jones Industrial
MARKETS Average edged
up 17.49 points,
or less than
0.1%, to 23439.70. The S&P 500
added 2.54 points, or 0.1%, to
2584.84, and the Nasdaq Com-
posite rose 6.66 points, or
0.1%, to 6757.60.
Mattel surged $3.02, or
21%, to $17.64—the stock’s big-
gest one-day percentage gain
Chinese Government-Bond Yields Rise to Three-Year High
BY SHEN HONG
SHANGHAI—Chinese gov-
ernment-bond yields rose to a
three-year high, after a selloff
in U.S. Treasurys that further
worried investors already con-
cerned about Beijing’s debt.
The yield on China’s bench-
mark 10-year bond rose 0.08
percentage point Monday to
3.98%—its highest since Octo-
ber 2014. Bond yields and
Choppy Gains
Bitcoin has had several 20% drops through its broader surge.
$8,000
6,000
June 11
4,000 Prices hit $3,000 for first
time, spark profit-taking
selloff.
2,000
0
J F M A
Note: As of Monday 5 p.m. ET
Source: CoinDesk
launch a new version of the
currency that would allow for
faster trading put off those
plans after they were bitterly
opposed by a group of bit-
coin’s main software develop-
ers.
Traders also have been jit-
tery about the impending in-
troduction of bitcoin futures.
Exchange operators CME
Group Inc. and CBOE Global
Markets Inc. have announced
plans to offer such contracts,
which would give Wall Street
traders an avenue to bet on
bitcoin prices and hedge
against volatility, a crucial
step in bitcoin’s move into in-
stitutional and retail markets.
Those plans come with
risks: Over the weekend,
Thomas Peterffy, one of the
since 1987—after The Wall
Street Journal reported Friday
that Hasbro made a takeover
offer for the company in a deal
that would unite the two big-
gest U.S. toy makers. Hasbro
added 5.38, or 5.9%, to 96.83.
Qualcomm rose 1.92, or 3%,
to 66.49, after the chip maker
said its board rejected a $105
billion takeover bid from
Broadcom.
General Electric fell 1.47, or
7.2%, to 19.02, after the com-
pany lowered earnings targets
for 2018 and said it would cut
its annual dividend by $4 bil-
lion. It was the stock’s lowest
close since 2012 and its big-
gest percentage decrease since
2009.
Meanwhile, investors said
they would continue to watch
prices move in the opposite
direction.
The world’s third-largest
bond market has been under
pressure since early in the
year, when Beijing raised
short-term interest rates to
discourage borrowing by spec-
ulators. The perception that
reducing risk has overtaken
spurring growth as policy
makers’ priority has been rein-
forced in recent weeks as the
MARKETS
Nov. 8
Business group abandons
plan to create alternate
version of bitcoin.
Sept. 4
China announces plans to
ban ICOs, later prepares to
shut down exchanges.
M J J A S O
THE WALL STREET JOURNAL.
world’s most successful deriv-
atives traders, said he was
concerned bitcoin derivatives
would introduce extraordinary
volatility that would be diffi-
cult to contain.
“For the first time, I am ex-
tremely scared,” Mr. Peterffy,
founder and chairman of Inter-
active Brokers Group, told Bar-
ron’s, citing concerns about
the stability of Wall Street’s
smaller clearing firms.
Investors who have stuck
with bitcoin have been re-
warded handsomely. Three
years ago, the digital currency
was at $300 and six years ago
it was at $2.
The sharp rise has sparked
concerns that the digital cur-
rency is mired in one of the
biggest financial bubbles of all
developments on a tax-over-
haul effort in Washington.
Hopes for tax cuts helped
bank stocks, bond yields and
the dollar jump after the No-
vember 2016 election, but
many of those moves have
faded this year as investors
have contended with uncer-
tainty around policy changes.
“I think we will eventually
see some tax bill, but the tim-
ing is highly uncertain as the
Senate bill is really different”
from the one in the House,
said Zhiwei Ren, managing di-
rector at Penn Mutual Asset
Management.
Later this week, analysts
say they will be monitoring
comments from central bank
leaders, with European Central
Bank President Mario Draghi
central bank has declined to
inject large amounts of cash
into the market—though on
Monday it did pump in 150 bil-
lion yuan ($22.59 billion), its
biggest injection since the 394
billion yuan of Oct. 13.
Concerns that a U.S. tax
overhaul would widen the
budget deficit sent the yield
on the 10-year Treasury note
up 0.07 percentage point on
Friday—its biggest rise since
N
A bitcoin miner in Russia. Even after its slide, bitcoin’s price is still up more than 500% this year.
time.
One alternative version of
the digital currency called Bit-
coin Cash has quickly grown in
popularity. Launched in Au-
gust and created as a split
from the original bitcoin, Bit-
coin Cash uses a technology
that can process more transac-
tions at a given time, translat-
ing to lower fees for users. At
about $21 billion, it is the
third-largest cryptocurrency
by market value, according to
industry site Coinmarket-
cap.com.
Bitcoin’s backers are still
fighting along the lines of the
initial schism: Some want bit-
coin to have low costs and fast
transaction times. Others want
to keep the current configura-
tion, which is driving up trans-
and Federal Reserve Chair-
woman Janet Yellen both set
to speak Tuesday.
Analysts also will be watch-
ing for the latest consumer-
price index reading due
Wednesday, with the Federal
Reserve widely expected to in-
crease rates in December.
The Stoxx Europe 600 fell
0.7% and notched its fifth con-
secutive session of declines,
weighed down by losses in
shares of banks and insurance
companies.
At the midday break in To-
kyo Tuesday, Japan’s Nikkei
was up 0.3% after logging its
largest one-day percent de-
cline since April on Monday.
Australia’s S&P ASX 200 was
down 0.9% on weak commod-
ity stocks.
September—to 2.397%. Higher
returns on U.S. government
paper make Chinese bonds
less attractive by comparison.
Also weighing on the Chinese
bond investors’ sentiment: a
strong Chinese stock market.
The benchmark Shanghai
Composite Index hit a 22-
month high Monday.
At close to 4%, the yield on
10-year Chinese government
bonds is now some distance
* ***
action fees and bottlenecking
payments. This slower net-
work works better if bitcoin is
being used as a store of value.
Digital currencies like bit-
coin are generally open-source
software projects, sustained
by developers who work on a
volunteer basis. That also
means any other group is wel-
come to take the software and
create their own version of it.
Bitcoin Cash is a copy of bit-
coin that is faithful to the
original in all but a few re-
spects.
There was an initial bout of
relief last week, which helped
propel bitcoin higher, after the
plans for a version of bitcoin
that would have somewhat in-
creased capacity were with-
drawn. But it just opened the
Driven by Deals
Mattel shares jumped following
reports that Hasbro made a
takeover offer for the company.
Performance Monday
25%
20
15
Mattel
10 Hasbro
5 timate for the consumer-price
One-minute intervals
0
10 11 noon 1 2 3
Source: FactSet
THE WALL STREET JOURNAL.
above those on other major
economies’ comparable debt—
notably the 0.41% yield on 10-
year German bunds and the
0.05% on 10-year Japanese
government bonds.
Foreign investors, mainly
central banks and sovereign-
wealth funds, have been more
bullish on Chinese bonds: At
the end of October, their hold-
ings stood at a record 1.09 tril-
lion yuan.
THE WALL STREET JOURNAL.
ANDREY RUDAKOV/BLOOMBERG NEWS
door for Bitcoin Cash’s backers
to make a push.
The first important marker
of this will be a measurement
of activity from the “miners”:
businesses that process trans-
actions on the network and
get paid in newly created
coins. A measure of their com-
bined computing power, called
the hash rate, has been rising
for Bitcoin Cash and falling for
bitcoin.
Still, the reality is that the
original bitcoin has been in
use for about nine years and
has a community of busi-
nesses, developers, and miners
around it. Bitcoin Cash has ex-
isted for a few months, and,
despite its positioning for pay-
ments, has few—if any—retail
outlets that accept it for that.
Treasurys
Fall, With
Tax Bills
In Focus
BY DANIEL KRUGER
U.S. government bonds
edged lower as investors as-
sessed the status of negotia-
tions on the Re-
CREDIT publican tax-
MARKETS overhaul plan in
Congress and
awaited inflation
data due this week.
The benchmark 10-year
Treasury yield rose to 2.400%
from 2.397% Friday. Yields rise
as bond prices fall.
Bond yields have risen in
recent sessions amid uncer-
tainty created by the possible
impact of Republican House
and Senate tax-overhaul plans
on economic growth and the
budget deficits.
Adding to the confusion,
Senate Republicans’ proposal
to overhaul the tax code di-
verges in key ways from a
plan that advanced through a
House committee. Senators
would delay a corporate tax
rate cut until 2019, forgo es-
tate tax repeal, and eliminate
the entire state and local tax
deduction. Compared with the
House bill, those changes and
others freed up hundreds of
billions of dollars that could
enable senators to avoid
tough and politically painful
choices.
“We thought there would be
volatility around tax reform,”
said Dan Heckman, senior
fixed-income strategist at U.S.
Bank Wealth Management.
“We’re starting to see that.”
Bond investors are also try-
ing to grasp the potential im-
pact from inflation data this
week—producer prices Tues-
day and consumer prices
Wednesday. The consensus es-
index calls for 2% headline in-
flation and 1.7% excluding
food and energy costs.
4 The Federal Reserve has
fallen short of its 2% inflation
target on its preferred mea-
sure, personal-consumption
expenditures.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week 26-Week
Applications $130,618,187,700 $118,653,475,200
Accepted bids $42,000,346,200 $36,000,021,800
" noncomp $617,837,700 $476,040,200
" foreign noncomp $210,000,000 $200,000,000
Auction price (rate) 99.686556 99.312444
(1.240%) (1.360%)
Coupon equivalent 1.261% 1.388%
Bids at clearing yield accepted 39.17% 48.66%
Cusip number 912796NS4 912796PG8
Both issues are dated Nov. 16, 2017. The 13-week bills
mature on Feb. 15, 2018; the 26-week bills mature on
May 17, 2018.
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.
Pound Weakens as U.K. Faces Tumult
Jitters around British
leadership and Brexit
talks ramp up the
volatility in sterling
Whatever sterling does
next, it is likely to be a big
move.
The pound fell by as much
as 1% against the dollar on
By Olga Cotaga,
Saumya
Vaishampayan
and Mike Bird
Monday on concerns about the
state of British politics before
recovering some of the losses,
one of many recent bouts of
volatility for this currency.
But many market players
have been holding off from
making big decisions as they
wait for political clouds to lift.
That could change soon.
Almost a year and a half af-
ter the Brexit vote, Britain has
made little progress in moving
to all-important trade talks
with the European Union. The
two sides have been bickering
over divorce issues such as
how much the U.K. will con-
tinue to pay to Brussels. It
should become clear at an EU
meeting next month whether
trade negotiations can begin.
“Sterling could either get a
big bounce, or it could turn
quickly into the biggest short
of 2018” if investors believe
Brexit talks are getting no-
where, said Viraj Patel, a for-
eign exchange strategist at
ING.
In a recent note, Commerz-
bank said traders and inves-
tors had yet to focus on the
December summit. So the risk
of EU leaders concluding not
enough progress has been
made to proceed isn’t priced
into the pound, leaving ster-
ling vulnerable to falls, the
bank said.
”It’s going to be crucial how
quickly we can move into the
trade talks,” Mr. Patel said.
Email: heard@wsj.com
Dividend Cut
Isn’t What
You Think
A dividend cut is generally
bad news for a company. But
not necessarily the bad news
investors think it is.
General Electric cut its
dividend by half on Monday,
saying it was a move it
needed to make to preserve
cash for restructuring ef-
forts. Investors worried that
it was really a sign that the
company, which also sharply
cut its 2018 earnings fore-
cast, would have lower earn-
ings for years to come.
The conventional wisdom
is companies cut dividends
when they think profits are
doing down and raise them
when they think earnings
will be higher. The only
problem is that studies have
repeatedly found that divi-
dend cuts and increases
aren’t a good predictor of
the direction of future earn-
ings or cash flow.
But new research finds
dividend moves are a good
signal of something else.
Economists Roni Michaely,
Stefano Rossi and Michael
Weber examined U.S. finan-
cial statement data from
1963 to 2015 and found that
dividend cuts tend to lead to
higher volatility in cash
flows, and that dividend in-
creases portend greater sta-
bility. The bigger the divi-
dend cut, the more choppy
future cash flows tend to be.
And this makes sense: If
results get lumpier, manage-
ment can’t be as certain that
they are going to have the
money they want to cover
both their needs and oppor-
tunities. All else equal, a
company with more volatile
earnings is worth less than
one with stable earnings.
Stable earnings are some-
thing that GE used to be
known for. Its dividend cut
may count as recognition
that those days are in its
past. —Justin Lahart
* * * *
Political Currency
Over the past two years the British pound and U.K. markets have been driven by major electoral
events and the developments in the country's exit from the European Union.
How many dollars one British pound buys
$1.55
1.50
1.45
1.40
1.35
1.30
Feb. 20, 2016
Prime Minister David
1.25 Cameron calls referendum
on U.K. membership of the EU
1.20
2016
Net bets pound will rise
20,000 contracts
0 1.75
–20,000
–40,000
–60,000
–80,000
–100,000
–120,000
2016
Sources: FactSet (currency); CFTC (net bets); TradeWeb (yield)
Sterling could rise to its
year-to-date high of around
$1.37 if Britain does make
some progress at December’s
meeting, said Roger Hallam,
currency chief investment offi-
cer at J.P. Morgan Asset Man-
agement. If the U.K. fails to do
so, the pound could fall to as
low as $1.25, Mr. Hallam said.
HEARD ON THE STREET
GE’s Light Bulb Finally Goes On
So far, so good for Gen-
eral Electric’s new leader-
ship. But the hardest parts
of a big turnaround are still
in the future and will take
time to yield results.
Chief Executive John Flan-
nery continued to sound the
right notes during Monday’s
investor day by vowing to
trim the company’s sprawl-
ing business portfolio and
focus on higher-margin
units.
His decision to halve the
quarterly dividend, while
painful, means the company
will be much more likely to
cover its obligations from
the free cash flow it gener-
ates. He acknowledged that
complexity, a longtime gripe
of investors, has hurt the
company and pledged to
simplify the business metrics
it reports.
Promising to emphasize
equity, rather than cash, in
executive compensation is
another good idea after poor
shareholder performance
and embarrassing revela-
tions of corporate excess.
And Mr. Flannery seems to
grasp how important it is to
U.S. Natural-Gas Bonanza With China Isn’t a Done Deal
Thanksgiving isn’t here
yet, but it’s already Christ-
mas in Alaska—and West
Virginia and Texas.
The source of the good
cheer: big natural-gas deals
announced in China during
President Donald Trump’s
state visit last week. The
headline figures are impres-
sive: a $43 billion pipeline
and liquefaction project in
Alaska, $84 billion for shale
gas and chemicals in West
Virginia, and a memorandum
on gas exports for Texas-
based Cheniere Energy.
That sounds like a lot of
money and a lot of gas, and
it would be if all these non-
binding agreements meta-
morphose into real brick-
MARKETS
June 23
‘Leave' wins U.K. referendum
on EU membership
Oct. 5
Prime Minister
Theresa May’s speech
to Conservative
Party conference
’17
Late Monday in New York,
the pound was at $1.3115, com-
pared with $1.3191 on Friday.
It fell 0.4% against the euro
and 0.6% against the Japanese
yen. U.K. government-bond
yields fell along with the
pound, closing at 1.331% from
1.341% Friday. Bond yields fall
when prices rise.
FINANCIAL ANALYSIS & COMMENTARY
Grounded
GE’s adjusted earnings per share
$2.0
1.5
1.0
0.5
0 the risk of limiting growth
2011 ’12 ’13
*Midpoint of company forecast
Sources: the company, FactSet (forecast)
change certain aspects of the
company’s culture. One slide
in the company presentation
vowed to improve the com-
pany’s “say/do ratio.”
Yet the biggest task, sim-
plifying the business portfo-
lio and turning around the
prolonged share-price melt-
down, will be far easier said
than done. Shares fell
sharply once again Monday
and are down about 40% this
year, touching their lowest
level since 2011.
Burning Brighter
Natural-gas prices
$20 a million BTUs
15
Asia
10
U.S.
5 petitors with splashy an-
0
2007 ’09 ’11 ’13 ’15
Source: IMF
and-mortar projects. That,
however, is unlikely.
Building liquefied natural-
gas plants is a notoriously
expensive and lengthy prop-
osition, one reason a 2012
study found the cost of the
Jan. 17, 2017
Mrs. May argues
‘No deal [with the EU] is
better than a bad deal’
’17
Yield on 10-year British government bond
2.00%
1.50
1.25
1.00
0.75
0.50
2016
The market moves were
triggered by a weekend report
in the Sunday Times that 40
members of Parliament had
agreed to sign a letter of no
confidence in Prime Minister
Theresa May. Just eight more
MPs are required for a formal
leadership challenge to begin,
according to the report.
’14 ’15 ’16 ’17*
THE WALL STREET JOURNAL.
Changing GE’s mix of
businesses is, of course,
nothing new; former CEO
Jeffrey Immelt was a serial
reshaper of the portfolio.
The difference here is that
Mr. Flannery has laid out a
clear plan by which investors
can judge his progress. He
will have to proceed quickly,
though, while maintaining a
delicate touch.
The more sensible ap-
proach to the company’s fi-
nancial obligations comes
Alaskan project might actu-
ally be as high as $65 billion.
And because the Asian gas
market is forecast to be
oversupplied until the early
2020s at least, and LNG
projects are so risky, compa-
nies have an incentive to
frighten off potential com-
nouncements with big part-
ners. If the Alaskan project
’17 goes through, it will compete
with Cheniere, which in turn
might compete with Russian
gas supply to China, which is
also under negotiation. Of
course, many of these multi-
billion-dollar deals will never
happen, trapped forever in
the Upside Down.
Chinese investors consid-
Tuesday, November 14, 2017 | B11
Sept. 22
Mrs. May’s speech
suggests transition
period in leaving EU
June 8
The governing Conservative
party loses majority in
parliamentary elections
’17
THE WALL STREET JOURNAL.
Mrs. May’s government has
been seen by investors as be-
ing in a weak position since
she failed to win a majority
government in June’s election.
Any change in leadership
could hamper the talks in
Brussels and potentially lead
to a new leader less interested
in compromising with the EU.
with the side effect of lean
times in the near future.
Management projections for
adjusted earnings of $1 to
$1.07 a share in 2018 were
below the FactSet analyst
consensus of $1.15. The com-
pany was discussing profit of
$2 a share as recently as this
summer.
What is more, GE plans to
sharply cut its capital spend-
ing next year to $3.4 billion.
That will improve short-term
free cash flow, but it runs
’18* prospects.
Investor skepticism about
Mr. Flannery’s turnaround
plan certainly is understand-
able given the stock’s recent
history. GE’s shares rocketed
higher when the company
announced the exit from the
finance business in 2015; in-
vestors who bought the
stock on that basis have
been punished severely.
At 19 times next year’s de-
pressed earnings guidance,
the stock isn’t particularly
expensive, but winning in-
vestors back will take far
more doing than saying.
—Charley Grant
ering plowing their billions
into Alaska have the caution-
ary tale of Australia to con-
sider. Terminals greenlighted
there during the height of
the commodities boom
nearly all ran massively
overbudget. That is causing
huge problems for Aussie ex-
porters now facing Asian gas
prices trading in a range of
$6 to $9 a million British
thermal units, or MMBtu,
down from over $15 in 2015.
The Alaskan project,
meanwhile, would produce at
a cost of about $6 to $7 a
MMBtu, including shipping
and tax breaks, according to
a presentation by Alaska
Gasline Development, the
U.S. partner on the deal.
A no-deal outcome between
Britain and its biggest trading
partner also would reduce
forecasts for economic growth
and likely cause the Bank of
England to move more slowly
in tightening monetary policy,
which in turn would put pres-
sure on the pound. Higher
rates typically boost yields,
which make the region more
attractive to investors looking
for better returns, benefiting
the local currency.
For now, the pound is too
cheap to sell, according to Val-
entin Marinov, head of G-10
currency strategy at Crédit Ag-
ricole.
In the week to Oct. 31, spec-
ulators held a small net bullish
position on the pound, accord-
ing to data from the U.S. Com-
modity Futures Trading Com-
mission, with 1,245 more long
than short contracts. As re-
cently as April, investors were
deeply pessimistic about ster-
ling, with more than 100,000
more short than long contracts
on the currency.
There are some silver lin-
ings for the pound: Sterling
could get some support from
continuing investment flows,
for instance, some investors
say, whether there is a deal or
not. Foreign direct investment
in the U.K. has been falling this
year, but asset managers re-
main net buyers of the coun-
try’s assets.
Though Hermes Investment
Management, with £30.8 bil-
lion ($40.6 billion) of assets
under management, has re-
duced its overall exposure to
the U.K. stock market since
Brexit, it continues to buy
shares in those companies that
generate most of their revenue
abroad. “We’re quite long
term, so what we try and do is
ensure we’re not highly con-
centrated on a single binary
outcome,” said Louise Dudley,
portfolio manager at Hermes
Global Equities.
—Jason Douglas
and Laurence Norman
contributed to this article.
WSJ.com/Heard
OVERHEARD
After a hiatus of more
than six years, the Singapore
Exchange reinstated its daily
one-hour lunch break Monday,
coinciding with midday breaks
on Hong Kong and mainland
China exchanges.
Singapore scrapped its
longstanding lunch hour in
March 2011 to increase com-
petitiveness with peers, but
trading volume dried up dur-
ing what were normal lunch
hours anyway. Patrick Mohr,
head of execution consulting
at Instinet, has calculated
that noon to 1 p.m. is the
slowest hour of the trading
day, with just over 5% of
daily volume. Lunch hours are
still sacrosanct in many coun-
tries across Asia. In 2012,
hundreds of brokers in Hong
Kong protested when the
Hong Kong stock ex-
change cut its onetime two-
hour midday trading
break down to the current 60
minutes. Singapore brought
back its lunch break in re-
sponse to traders lobbying
hard for its return, Mr. Mohr
said. “They’re passionate
about their lunch.”
Even assuming Asian prices
are higher by the time the
project would come online in
the mid-2020s, that doesn’t
leave a lot of room for error.
Cheniere, which already
ships some cargoes to Asia,
might be better placed; it
said in 2016 that its margin
to Asia would be as much as
$2 a MMBtu, even with
Asian gas prices at just $7.
So, keep an eye on gas
prices and on whether any of
these contracts evolve into
actual investment over the
next 12 to 24 months. The
U.S. is well-placed to become
a significant gas supplier to
China. But the game is really
just beginning.
—Nathaniel Taplin
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B12 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

THE MONOLITHIC VIEW

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© 2017 Prudential Financial, Inc. (PFI) and its related entities. PGIM Inc. is the principal asset management business of PFI. PGIM is a trading name of PGIM Inc. and its global
subsidiaries. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom. The PGIM logo and the Rock design are
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principal amount invested.
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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

JOURNAL REPORT | BIG ISSUES

Follo
THE WALL STREET JOURNAL. The E w
© 2017 Dow Jones & Company. All Rights Reserved.
xperTuesday, November 14, 2017 | R1
An O ts
n
Conv line
e
DETA rsation

SQUARING OFF I LS , R2

We invited advocates on each side of six crucial energy issues to make

their best case. Read their debates here and join the conversation online.

Does Nuclear
Power Have a
Robust Future
In the U.S.?
Here’s one sign that nuclear energy has been struggling:
Operators shut down six reactors in recent years before
their licenses expired, and announced plans for several
other early closings, according to the Energy Department.
Reasons given include competition from natural gas, bur-
densome regulation and market structures. Only new state
subsidies can prevent more closings, plant operators have
said.
Still, nuclear plants produced almost 20% of total U.S.
electrical output in 2016, and 63% of carbon-free electric-
ity. Faced with global warming, many agree nuclear offers
the most efficient renewable alternative to carbon-based
fuels. Meanwhile, the Trump administration has promised
to help the industry with incentives and reduced regulation.
So, will nuclear lead the way, or won’t it?

Exelon Corp. last year dropped plans to

close its Clinton, Ill., nuclear plant after
the state enacted subsidies to help
keep the plant open.

JOHN DIXON/THE NEWS-GAZETTE/ASSOCIATED PRESS

certainly cheap right now, but most vertically dustry is in crisis—and the signs don’t look
YES integrated utilities don’t want to rely on a sin- NO good for it turning around. In the past five
gle fuel source, especially one with historically years, six reactors (at five plants) have been
It’s Competitive significant price swings.
There is also nothing fundamentally expen-
It Is Up Against closed, and operators have announced plans
to shut down several more. The list is likely to

And Necessary sive about nuclear. Much of the current addi-

BY RICH POWELL
THE FUTURE OF U.S. nu-
clear power is bright—and
nonnegotiable.
A robust civilian nuclear
sector is mandatory for the
U.S. to remain a major geo-
political, economic, mili-
tary and environmental
leader. After decades of
policy neglect, Washington is finally address-
ing what is both a national and global neces-
sity and a tremendous opportunity.
Bipartisan political support is growing to
reform new reactor licensing and improve tax
incentives for new nuclear facilities, led in
Congress by clean-energy advocates as well as
national-security and energy-reliability hawks.
The Trump administration has taken bold
action to support nuclear energy, including ex-
panding federal financing for the two reactors
being built in Georgia and proposing that reg-
ulators change the way electricity is priced so
that nuclear and coal-fired plants can earn
more based on plant resiliency.
Market pricing reform would be an impor-
tant step in helping to restructure power mar-
kets and bring an end to the closures of reac-
tors seen in recent years. Current markets
undervalue the greater reliability of nuclear
energy in the face of natural disasters—true
resilience likely comes with greater capital
cost. New plants would also be tremendously
aided by proposals for improved tax incen-
tives backed by the White House that would
benefit deployment of nearly 4 gigawatts of
advanced nuclear power.
Some don’t believe in a nuclear future be-
cause of the low cost of natural gas. Gas is
Mr. Powell is executive director of the Clear-
Path Foundation, a nonprofit that promotes
conservative clean-energy solutions. He can
be reached at reports@wsj.com.
tional capital cost is due to years of inactivity
and resulting lack of experience and standard-
ization—gaps that deny projects the kinds of
knowledge transfer than can lower costs
through repeated construction of the same de-
sign. China and South Korea have been able to
drive out costs through scale and repeated
construction experience.
Skeptics also point to falling renewable
costs and stalled growth in demand for elec-
tricity as an argument against investing in nu-
clear. But wind and solar, because of their in-
termittent character, require grid-scale energy
storage, and that is expensive. And despite
low electricity growth, there will be need in
the generation market to replace many kinds
of retiring plants in the coming years. In fact,
this just opens the door for advanced technol-
ogies, particularly smaller reactor designs.
Several U.S. entrepreneurs are developing
Please see NUCLEAR YES page R2
Steady State
Nuclear power's electricity output in the U.S. has been nearly flat for the past decade but is projected to edge
down as natural gas and renewables rise. U.S. net electricity generation from selected fuels:
2,500 billion kilowatt-hours
2,000
1,500
1,000
500
0
1980 ’90 2000
Note: Assumes Clean Power Plan remains in effect. Without CPP, coal and natural gas won't diverge as sharply; generation from nuclear and other
fuels shown would be little changed.
Source: Energy Information Administration
Too Many Forces grow, as more than half of America’s nuclear
plants are reportedly losing money.
Moreover, all plans to build new reactors
have been scrapped, save for two in Georgia,
BY JASON BORDOFF
and their future is uncertain without major
federal support. Westinghouse, the designer
A DECADE AGO, nuclear of the reactors there, is in bankruptcy pro-
power appeared to be on ceedings. And the Energy Information Admin-
the verge of a renaissance istration now projects the share of nuclear in
in the U.S. The Energy In- our electricity mix to fall by nearly half
formation Administration through 2050, to 11% from a current 20%.
projected U.S. nuclear Even that outlook may be optimistic. China,
power generation would meanwhile, has several dozen nuclear plants
grow 13% from 2005 to in development.
2020. The Nuclear Regula- What happened? First, and most important,
tory Commission was preparing to receive the shale revolution has delivered natural-gas
dozens of applications to build new reactors, prices far below what had been expected, un-
the first in decades. Toshiba bought Westing- dermining the competitiveness of nuclear
house for $5.4 billion and had plans to install power in deregulated markets. Second, elec-
45 new reactors world-wide by 2030. tricity demand, which back in 2005 had been
I believe a strong nuclear-power sector expected to grow nearly 2% a year, instead has
would benefit the U.S. But the truth is, the in- been roughly stagnant, a result of increased
efficiency and slower economic growth. Third,
renewable-energy costs have fallen far more
steeply than most projected. Fourth, the lack
of a meaningful price on carbon means that
the cost of power from fossil fuels doesn’t re-
flect its full cost to society. Finally, public sup-
Projected port of nuclear power has waned.
Building new reactors is made even more
challenging by the very costly and complex
Natural Gas regulatory approval process. Even plants with
new reactor designs intended to be safer and
less expensive to operate—like the one in
Renewables Georgia, and one abandoned in South Caro-
lina—have run into unexpected problems and
large cost overruns. U.S. firms lack the equip-
Coal ment and expertise to build nuclear plants af-
ter not doing so for decades. And the U.S. nu-
Nuclear Power Please see NUCLEAR NO page R2
Mr. Bordoff is a former senior director with
the National Security Council and special
Petroleum assistant to President Barack Obama. He is
now a professor in international and public
’10 ’20 ’30 ’40 affairs and the founding director of the
Center on Global Energy Policy at Columbia
University’s School of International and
THE WALL STREET JOURNAL. Public Affairs. Email: reports@wsj.com.

INSIDE

Should the U.S. limit Do the states have a role Should governments Will electric vehicles Will new tariffs
exports of natural gas? in making climate require utilities to make replace gas-powered hurt the U.S. solar
R2 policy? the electric grid more ones? industry?
R3 stormproof? R5 R6
R4
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
R2 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | BIG ISSUES

Should the U.S. Limit Exports of Natural Gas?

President Donald Trump in June an-
nounced to the world an age of “energy
dominance” by the U.S.
More drilling for oil and gas and new in-
centives for nuclear energy are part of the
Trump administration’s plans to enlarge the
already huge U.S. footprint in increasingly
competitive global energy markets.
Another part of the plan: more exports of
natural gas. The U.S. has become a major
player in international natural-gas markets in
recent years. Improved drilling techniques,
including hydraulic fracturing, or fracking,
along with technological developments that
have boosted the industry’s ability to liquefy
natural gas for shipping have fueled both a
global boom and a glut in natural gas.
The fast-growing global market for lique-
fied natural gas, or LNG, that has arisen
makes U.S. supplies more exposed to inter-
national prices than before. Some fear this
will raise costs for natural-gas customers
within the U.S., including manufacturers.
Industry sources, meanwhile, say that
natural-gas exports will create more jobs at
home and help the U.S. compete globally
with other exporters of natural gas, such as
Russia and Iran.

YES
Exports Raise Prices
In the U.S. and Hurt
Manufacturing
BY PAUL CICIO
YEARS AGO, Congress de-
cided that if natural gas
were to be exported to non-
free-trade-agreement, or
NFTA, countries, it would
have to be in the public in-
terest. But it can’t possibly
be in the public interest to
export as much natural gas as the Energy De-
partment has approved for the next few de-
cades: an amount roughly equal to two-thirds
of all of our domestic demand last year.
Low-cost, plentiful natural gas has been a
critical contributor to the U.S. economy for
years. Inexpensive natural gas has played a
major role in the revival of manufacturing in
this country. The big increase in exports that
the gas industry and the Trump administra-
tion want will pressure supplies and increase
the price in the U.S., as buyers overseas bid up
prices—posing a significant long-term risk to
the U.S. economy. Plus, gas resource estimates
are highly speculative and subject to signifi-
cant economic and political risk long term.
When Congress passed the Natural Gas Act,
which says that the Energy Department can’t
approve exports to NFTA countries without it
being in the public interest, the message was
clear: The U.S. economy as a whole is a prior-
ity over exports to NFTA countries.
But last year, according to the Energy De-
partment, some 56% of U.S. LNG exports were
shipped to 13 NFTA countries. Such shipments
don’t constitute fair trade, nor do they follow
the president’s “America First” policy for U.S.
manufacturers. Shipping our LNG to NFTA
countries rewards them for not having free-
trade pacts with the U.S. and undermines our
ability to secure bilateral fair-trade agree-
ments. NFTA countries buying our natural gas
are often the same countries that subsidize
their manufacturers and apply import tariffs
to prevent U.S. manufacturers from exporting
products into their country.
Increasing LNG exports is damaging to the
economy when prices increase to global lev-
els, undermining our manufacturing competi-
tiveness and jobs. Even a study sponsored by
the Energy Department to justify its export
approvals concluded that increased LNG ex-
ports resulted in higher natural-gas and elec-
tricity prices, decreased wages, capital and in-
direct tax income, and created negative
impacts to manufacturing competitiveness and
jobs. Gas producers, exporters and sharehold-
ers are the winners, and everyone else loses.
Australia shows what can happen when
LNG exporters reach full export potential. Ex-
porters in Australia contracted for so much of
its natural gas that prices increased threefold
to levels equal to what foreign LNG buyers
were paying. Manufacturers’ competitiveness
was severely damaged and jobs were affected.
Exporting LNG isn’t a big job creator. The
U.S. Bureau of Labor Statistics says that from
2010 to 2016, the oil-and-gas industry created
only 22,600 direct jobs, while the manufactur-
ing sector created 820,000. Significant job
creation attributable to natural gas can only
be achieved if the gas is consumed in the U.S.
If it is exported, the countries buying the gas
will get the job-creation benefits.
Linking our biggest, most affordable energy
source more closely to international markets
will mean increasing exposure of U.S. consumer
prices to global volatility, price shocks and
speculative international trading. The Energy
Department should define public interest and
complete an analysis of proposed LNG exports
that includes long-term economic risk assess-
ment. Then it should cancel NFTA approvals
that aren’t in the public interest, and establish
a consumer safety valve to ensure that exports
won’t impose economic harm on the U.S.
Mr. Cicio is president of the Industrial En-
ergy Consumers of America. He can be
reached at reports@wsj.com.
NO
Increasing Exports
Will Have a Positive
Economic Impact
BY ANNA MIKULSKA
U.S. EXPORTS of liquefied
natural gas are on the way
to becoming a vital part of
global trade in natural gas.
The Energy Information
Administration predicts
LNG exports will more than
triple by 2025, driven by
growing international demand, record U.S.
natural-gas production and added liquefaction
capacity. Demand for LNG is poised to grow
particularly in Asia, including China, Japan
and other countries that don’t share a free-
trade agreement with the U.S.
Meanwhile, some U.S. politicians and manu-
facturers have repeatedly asked the Energy
Department not to issue new approvals for
LNG exports to the so-called NFTA countries.
But the Trump administration is continuing
the Obama-era policy of embracing LNG ex-
ports as a way to stimulate the U.S. economy
and facilitate broader aims of U.S. diplomacy.
And there are good reasons for doing so.
To start, the U.S. already exports many man-
ufactured goods, services, oil, refined products,
chemicals and agricultural goods to NFTA
countries. There is no reason to treat LNG dif-
ferently. Shipping LNG is a commercial trans-
action, not a reward. If the U.S. doesn’t export
its LNG, the NFTA countries will find other
suppliers, including Australia, Qatar, Russia,
Mozambique and possibly even Iran.
Advocates of limiting exports are concerned
about depleting domestic supply and trigger-
ing an increase in domestic prices, to the det-
riment of U.S. manufacturing competitiveness.
But even if exports were to grow to six times
their 2016 levels by 2018, they will constitute
only about 4% of total U.S. production. And to
achieve these levels, U.S. producers must re-
main competitive in global markets—in other
words, domestic prices of natural gas have to
remain relatively low.
Though it is true that increasing LNG ex-
ports will push domestic prices up, the im-
pacts are modest. A 2015 Energy Department
study on the macroeconomic impact of in-
creasing LNG exports finds that LNG exports
have a net positive impact on U.S. GDP. And
U.S. industries reliant on natural gas grow un-
der all LNG export scenarios, even if at a
slightly lower rate.
Indeed, the U.S. natural-gas abundance has
already had a profound impact on gas-intensive
industries, and long-term investments are pro-
ceeding in parallel with continuing construc-
tion of LNG export capacity. The American
Chemistry Council estimated that shale devel-
opment as of July has triggered 310 chemical-
industry projects (completed, started or pro-
jected). These projects are associated with an
expected $185 billion in new capital invest-
ment, 464,000 direct and indirect jobs, and $26
billion in new tax revenue through 2025.
Critics might look at selective years and
narrow job descriptions to try to argue that
LNG exports won’t contribute much to job
growth. But more than 61,000 jobs were cre-
ated in the extraction of oil and gas between
2004 and 2017. And if one looks at Bureau of
Labor Statistics for extraction, drilling and
support activities in the oil-and-gas industry,
more than 162,000 jobs were created between
2007 and 2012.
If restrictions were imposed on LNG ex-
ports, only a few domestic manufacturers
would gain a small advantage, while the
broader benefits to the rest of the economy
would be lost. Restrictions would weaken the
U.S. position in bilateral and multilateral trade
discussions and reduce any foreign-policy ben-
efit that could be derived from a growing U.S.
role in the global energy market.
Dr. Mikulska is a nonresident fellow in en-
ergy studies at Rice University’s Baker Insti-
tute for Public Policy. She can be reached at
reports@wsj.com.

Trade Balance Domestic Harmony?

As production rose with the shale boom, the U.S. needed U.S. natural-gas production and consumption
less natural gas from abroad and has recently been a net 80 billion cubic feet/day
exporter. Monthly U.S. natural-gas net imports (imports
78
minus exports):
76 Consumption
400 billion cubic feet 74
72
Production
300 70
2015 2016 2017 ’18

200
Where It’s Used
Natural-gas consumption by sector in
100 the U.S., 2016
Electric
LINDSEY JANIES/BLOOMBERG NEWS

0 power Industrial Residential

36% 28% 16% 11% 9%

–100

Commercial Other*
–200
*Lease and plant fuel consumption, pipeline and distribution,
’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 vehicle fuel

Source: Energy Information Administration THE WALL STREET JOURNAL. Cheniere Energy’s terminal in Sabine Pass, Texas, began exporting liquefied natural gas last year.

Nuclear Yes develop TerraPower’s Molten

Continued from the prior page
advanced nuclear-energy
technologies that are smaller,
more nimble and even have
the potential to be cost-com-
petitive with natural gas. One
of these, a startup called Oklo
Inc., is designing a microreac-
tor it says could operate for
10 to 20 years at a time with
low overhead. It’s less than 1%
the size of a traditional reac-
tor and could be perfect for
quick deployment to areas
such as Puerto Rico, which
saw its grid devastated by a
hurricane.
Bill Gates-backed Terra-
Power also has potential. It is
working with Southern Co. to
Chloride Fast Reactor, a de-
sign that potentially has sig-
nificant cost benefits com-
pared with conventional
generators. There is also NuS-
cale Power LLC and its small
modular nuclear reactor,
which can be scaled anywhere
from 50 megawatts to 600
megawatts of capacity and
which will likely be operating
commercially by 2026.
The goal for each of these
companies is to export its
technologies. With forecasts of
as much as $10 trillion in
global investment in low-emis-
sions power technology over
the coming decades, major in-
vestors and technology devel-
opers are paying attention.
The Energy Department re-
cently announced that it will
target advanced nuclear tech-
nologies for funding with the
same highly successful ap-
proach it has used through its
research program known as
Advanced Research Projects
Agency-Energy, or ARPA-E.
While the nuclear-energy
industry has suffered setbacks
over the past few years, the
promise of advanced reactors
and the importance of nuclear
energy to our national secu-
rity will attract the financial
resources, the political clout
and the policy reforms neces-
sary to win out in the long
term.
A thriving U.S. nuclear in-
dustry isn’t a “nice-to-have.”
It’s a must-have. And it will
happen again.
Nuclear No
Continued from the prior page
clear industry lacks
standardization of designs
and equipment, further esca-
lating costs.
While small, modular reac-
tors hold promise to bring
down costs and address safety
and proliferation concerns,
the Trump administration
proposes slashing government
investment in energy R&D.
Meanwhile, shale-gas produc-
tion is set to outstrip demand,
keeping prices low, and re-
newable costs keep falling.
The prospects for govern-
ment policies that could sup-
port nuclear, from a carbon
tax to a long-term waste-dis-
posal solution, seem remote.
New legislation may be in the
works, but passage seems un-
likely at present given con-
gressional dysfunction and
opposition.
Federal financing is a nec-
essary condition to revive U.S.
nuclear power, but even with
increased federal support, it is
far from certain the plant in
Georgia will be built. The
project is only about one-third
complete, costs have skyrock-
eted, and the planned start
date has been pushed back
many years.
Energy Secretary Rick
Perry’s recent order to the Fed-
eral Regulatory Commission to
consider guaranteeing recovery
of costs to struggling coal and
nuclear plants would prop up
those industries, but it faces
numerous hurdles at FERC, in
the courts and with a long list
of stakeholders who have filed
comments in opposition.
The decline of nuclear is
cause for concern. Nuclear is
the largest source of carbon-
free electricity in the U.S., but
retiring plants are mostly re-
placed by gas and coal. Addi-
tionally, a robust nuclear-en-
ergy sector promotes U.S.
leadership in international
nonproliferation efforts, sup-
ports our national defense re-
quirements, and facilitates the
expansion of nuclear globally
with high safety, security and
environmental standards. Left
to market forces alone, how-
ever, the outlook for U.S. nu-
clear power is grim.

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THE WALL STREET JOURNAL. Tuesday, November 14, 2017 | R3

JOURNAL REPORT | BIG ISSUES

Do States Have a Role in Making Climate Policy?

When scientists from 13 U.S. federal
agencies issued a report on climate change
earlier this month that drew a direct connec-
tion between human activity and global
warming, it was a reminder of the turmoil
that has surrounded environmental issues
since President Donald Trump took office.
The Trump administration has rejected the
international Paris climate accord, calling it a
job-killing pact that impinges on U.S. sover-
eignty. It also has moved to repeal the do-
mestic Clean Power Plan, following up on
the president’s pledge to boost the energy
industry by cutting regulation.
In response, several state governors have
pledged to take the initiative on climate
change by crafting their own strict emissions
standards and pursuing the development of
renewable energy with renewed vigor. Sup-
porters say such actions not only will benefit
the environment but also will spur the devel-
opment of the green-technology industry.
But critics say that such state initiatives
have a record of being ill conceived and inef-
fective, and that policies that run counter to
the federal government’s stand on the cli-
mate in international talks are beyond the
rightful scope of state governments.

YES
States Can Mitigate
Damage Done by the
Federal Government
BY ARTHUR VAN BENTHEM
GIVEN THE STATE of af-
fairs in Washington, D.C.,
states should adopt their
own policies to promote re-
newable energy and limit
the emissions of green-
house gases.
Ambitious governments
in China, Europe and elsewhere are ramping
up pressure on their companies to become
world leaders in green energy, electric vehi-
cles and low-carbon technologies, in an effort
to seize the golden opportunity that comes
with the rise of the global green-tech market.
Meanwhile, the U.S. federal government is
backing away from those same policies, reject-
ing the Paris accord and hitting the brakes on
fuel-economy rules and efforts to reduce car-
bon emissions under the Obama administra-
tion’s Clean Power Plan.
Several states, spearheaded by the gover-
nors of California, New York and Washington,
have pledged to fill the void in leadership by
adopting their own strict climate policies. In
principle, having a single federal policy is
cheaper for industry and less prone to unin-
tended consequences. But an unwieldy patch-
work of 50 different state policies is an ex-
tremely unlikely outcome of state initiatives.
Much more likely, state efforts will eventu-
ally spur demand for strict federal policies,
and operate at a regional level in the mean-
time. But they also could be short-circuited if
the Clean Power Plan is replaced with weak
federal regulation of carbon emissions that
would preclude stricter state rules, or if the
waiver that allows California to set vehicle
standards that are tougher than federal regu-
lations isn’t extended.
It is imperative that states be allowed to
proceed unhindered. If they are, here are the
highlights of what is likely to happen: two sets
of vehicle regulations, as we have now for
electric vehicles and local air pollution, and
broad regional cap-and-trade systems to re-
duce emissions from electricity generation and
heavy industry, like the ones already in place
among the nine states in the Northeast or the
California-Quebec-Ontario market.
There would likely be two vehicle standards
because under the Clean Air Act, California
was granted a unique federal waiver to adopt
stricter-than-federal vehicle policies, an ac-
knowledgment of the state’s severe smog
problems. Other states have a choice—follow
California or stick with the federal standard.
About a dozen states, representing some 40%
of the U.S. population, have followed Califor-
nia’s lead on tailpipe emissions and electric-
car regulations that exceed federal standards.
On fuel economy, when California set a
tougher standard and 14 states followed, it led
to an agreement among the Obama adminis-
tration, states and auto makers on stricter
federal standards. In exchange, California
abandoned its own rule. The same could hap-
pen with regional cap-and-trade systems,
which could be linked or subsumed under a
federal trading system if they spur demand for
a uniform approach. The governors of Califor-
Please see CLIMATE YES page R4
State Action
Energy legislation introduced and enacted/adopted by the 50 states and D.C. in 2016
Introduced Enacted/adopted
Renewables
Efficiency 107
Transportation 111
Security 74
Climate 95
Fossil fuels 101
Grid/transmission 42
Source: National Conference of State Legislatures
cally, it had already banned fracking, the tech-
NO nology that extracts the natural gas that now
keeps its lights on.
It Won’t Work—and Meanwhile, rather than rapidly developing
its own renewable resources, the state is lead-
This Isn’t the States’ ing a nationwide backlash against wind power:
Vermont added no wind capacity during
Role, Anyway 2013-16. The issue featured prominently in last
November’s gubernatorial race, which saw an
anti-wind Republican beat a pro-wind Demo-
BY OREN CASS
crat by almost 10 points. And, just last month,
state legislators approved strict noise limits
MOST STATE-LEVEL ef- that will further limit development.
forts to reduce greenhouse- Vermonters can confidently reject nuclear,
gas emissions cannot help coal, gas and wind from the comfort of their
being incoherent and inef- warm and well-lit homes because shirking re-
fective. Consider Vermont, sponsibility for their energy supply has few
which has established a so- consequences. They can draw electricity from
called renewable portfolio a regional power grid and import energy-in-
standard requiring the use tensive goods by exhaust-belching truck. Their
of 75% renewable energy by 2032. That may 75%-renewable goal presumes the availability
be a laudable aspiration, but it ignores how of someone else’s nonrenewable plants to keep
energy markets work. the lights on when the wind isn’t blowing and
Vermont recently shut its emissions-free the sun isn’t shining. Those plants will be op-
nuclear power plant, which accounted for the erating affordably only if other states remain
majority of the state’s electricity generation. committed to a conventional grid.
Without renewable capacity to fill the result- But Vermont is not alone. Twenty-nine
ing hole, the state began importing more elec- states have renewable portfolio standards, and
tricity from other states, generated primarily lawmakers in both Massachusetts and Califor-
with emissions-producing natural gas. Ironi- nia have recently proposed 100%-renewable
mandates. If everyone tries to reach their
goals, and more states feel compelled to join
and out-green each other, the grid will fall
apart.
This is not only irresponsible, but also fails
to address climate change. Since nationwide
carbon-dioxide emissions peaked in 2007,
254 673 states with renewable portfolio standards
have achieved smaller reductions, on average,
321 than states without them. And even significant
state-level achievements would mean little.
267 The Obama administration acknowledged that
its Clean Power Plan for cutting emissions in
every state would not have meaningfully af-
221
fected global temperatures.
The reality of climate change is that the
213 overwhelming majority of future greenhouse-
gas emissions will come from the developing
188 world. American emissions cuts are justified
primarily as a means of showing leadership.
142 But the symbolic actions of former Vermont
Gov. Pete Shumlin and his colleagues are not
THE WALL STREET JOURNAL. Please see CLIMATE NO page R4

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R4 | Tuesday, November 14, 2017
Should Governments Require Utilities to Make the
Electric Grid More Stormproof?
When storms hit and the power goes out,
people want to know one thing: “When will
my lights be back on?”
The answer to that question could in-
creasingly depend on decisions being made
right now by utilities and regulators about
YES
Utilities Must Go
Beyond ‘Hardening’
The Current Grid
BY JENNIE C. STEPHENS
AS CLIMATE change accel-
erates, extreme weather
events are becoming more
frequent and more destruc-
tive. Our existing grid in-
frastructure is ill-prepared
for this, and state public
utility commissions aren’t
adequately promoting sufficient grid resilience
investment for the public good.
More regulation is needed to ensure that as
utility companies stormproof their grids, they
are innovating for the good of society, and not
just maximizing shareholder returns.
Current efforts to stormproof the grid are
inadequate because they focus too much on
“hardening” the current grid and restoring
power rather than investing in innovations that
would prevent power outages in the first place.
Stormproofing the grid is conventionally
thought to include putting some transmission
and distribution lines underground, expanding
efforts to prune trees close to poles and wires,
and reinforcing or replacing towers and poles
with stronger, steel structures. Smart-grid in-
vestments, too, have helped utilities minimize
the duration of power outages by helping to lo-
cate and restore power more quickly.
But utilities must do more. They must be
required to make additional smart-grid invest-
ments that encourage households and build-
ings to be self-sufficient and “island” during
a storm so that when the centralized grid is
damaged (which inevitably will happen no
matter what degree of hardening takes places)
power outages are minimized. And the best
way to do this is for regulators to require util-
ities to install more distributed renewable en-
ergy throughout the grid.
Going Dark | Power outages in the U.S.
Number of outages Number of people affected
4,000 30 million
3,500
25
3,000
20
2,500
2,000 15
1,500
10
1,000
5
500
0 0
2012 ’13 ’14 ’15 ’16 2012 ’13
Source: Eaton Blackout Tracker
Climate Yes
Continued from page R3
nia and New York recently floated the idea of
linking the two existing carbon markets.
Those who criticize states for overreaching
and moving contrary to federal policy should
consider that state climate initiatives seem to
fit seamlessly with the Environmental Protec-
tion Agency’s stated goal to return power to
the states under Administrator Scott Pruitt.
The EPA has applied that philosophy selec-
tively, aiming to relieve states that have a lim-
ited appetite for environmental action from
federal regulations, by backing out of the
Clean Power Plan, but explicitly leaving open
the possibility of denying California future re-
quests for waivers on vehicle standards.
Then there is the criticism that states’ ef-
forts to promote renewable energy sources
are far more expensive than continued reli-
ance on nonrenewable sources for affordable,
reliable power. That, too, doesn’t hold water.
The costs of renewables are falling spectacu-
larly, and setting goals for their adoption will
foster further innovation in battery storage
technologies. The move to renewables is inevi-
table, and other countries have already proven
they can run their power grids with far more
solar and wind than the U.S.
Finally, letting the states drive policy is the
only serious option to put the U.S. back on
track in the global green-tech race.
The U.S. is at serious risk of losing its dom-
inant position in this multitrillion-dollar and
fast-growing market. For China and Europe,
this is an unprecedented opportunity to run
away with valuable patents, jobs and export
markets.
Just like our competitors, we need a sup-
JOURNAL REPORT | BIG ISSUES
what investments are necessary to storm-
proof our power grids, and the extent to
which efforts by the utility companies to
strengthen the grid should be regulated.
Policy makers in Washington are putting
new emphasis on grid reliability and resil-
Given the benefits of distributed renewable
power, we have to think outside the box and
expand our vision and expectations of electric
utilities. If we stay with the same old assump-
tions and keep trying the same old tactics, we
will increase grid vulnerabilities. Investing in
innovations that accelerate more distributed
renewable generation is critical to storm-
proofing the grid for the future.
A grid designed for distributed renewable
power is inherently more resilient to storms
than the current grid system. Renewable gen-
eration is modular and flexible, and when cou-
pled with the potential of islanding technology
and microgrids, when destructive storms do
damage, the grid’s modularity allows for fast,
segmented recovery. More distributed renew-
able generation builds backups into the sys-
tem. It creates networked redundancy, spread-
ing out risks and reducing the potential for
cascading failures.
The tragedy in Puerto Rico, where Hurri-
cane Maria effectively destroyed the grid, is
an opportunity to rebuild with distributed re-
newable design. After disruption, rather than
recovering by reinstalling the same technol-
ogy, regulators should require utilities to be
prepared to upgrade and innovate.
Requiring utilities to make grids more resil-
ient by adopting more distributed, renewable
energy is not easy, but regulatory change is es-
sential. Consider solar panels, which can con-
tinue to provide power to buildings on which
they are installed, even if other lines are down.
Many utilities still aggressively resist distrib-
uted solar developments. Regulators need to
take a stronger stand in requiring utilities to
accelerate distributed renewable power.
We are losing precious time. The longer we
tell ourselves that existing public utility com-
missions’ plans and regulations are sufficient,
and that electric utilities are already ade-
quately stormproofing the grid, the more
harm will come to our communities.
Dr. Stephens is the dean’s professor of sus-
tainability science and policy at Northeast-
ern University, associate director of North-
eastern’s Global Resilience Institute, and co-
author of “Smart Grid (R)Evolution: Electric
Power Struggles.” Email: reports@wsj.com.
Outages by cause, 2016
PCT. NUMBER
Weather/trees 33% 1,279
Faulty equipment/
24% 925
human error
Vehicle accident 12% 483
Planned 5% 189
Animal 4% 169
Theft/vandalism 0.3% 13
Overdemand 0.1% 3
’14 ’15 ’16
Unknown 21% 818
THE WALL STREET JOURNAL.
portive government that is willing to enforce
policies to keep us at the cutting edge of
green innovation. Now that the federal gov-
ernment has given up American leadership on
climate, it is time to pass the baton to the
states and let them pressure Washington into
correcting a costly economic mistake.
Mr. van Benthem is an energy economist at
the Wharton School of the University of
Pennsylvania. Email reports@wsj.com.
Jerry Brown of California is one of several governors pushing climate policies as the feds back off.
iency. This year’s rash of hurricanes and the
damage done to grids in places like Florida
and Puerto Rico have given the debate new
urgency.
Some people say new regulations are nec-
essary to see that the proper investments
NO
Government and
Utilities Must Keep
Working Together
BY PAUL STOCKTON
ELECTRICITY companies
are already making a huge
effort to bolster their infra-
structure. They don’t need
more regulation. Instead,
industry and government
leaders need to build con-
sensus on how best to pre-
pare for the storms to come and on how the
utilities should recover the costs of those in-
vestments.
Resilience spending by utilities is massive
and on the rise. In 2016 alone, the electric-
power industry spent more than $52 billion on
modernizing and strengthening the grid.
These investments have doubled in the past
decade. Moreover, in close coordination with
federal and state regulators, electricity compa-
nies focus this spending on especially cost-ef-
fective improvements.
Burying some lines and other infrastructure
helped protect electrical systems in Irma and
other recent hurricanes. More electricity com-
panies are hardening their systems by replac-
ing wood poles with steel or concrete ones.
Florida Power & Light has been replacing old
poles with more hurricane-resistant ones at
the pace of 16,000 a year.
No protection is perfect, however, which is
why a big part of the resiliency effort is also
focused on strengthening the utilities’ ability
to quickly respond and restore power when
outages do occur. Electricity companies na-
tionwide, for example, are investing in smart-
grid technologies that enable them to locate
and repair storm-induced damage faster.
Such investments paid major dividends
during recent storms. Companies affected by
Hurricane Irma restored electricity within six
Hurricane Irma cut power to nearly two-thirds of Florida electricity customers in September.
Climate No
Continued from page R3
going to lead developing nations away from
their pursuit of economic progress.
Nor is it the role of state leaders, no matter
how displeased with President Trump’s rejec-
tion of the Paris climate accord, to offset or
undermine our national government’s negoti-
ating position on the international stage. Cali-
THOMAS PETER/REUTERS
THE WALL STREET JOURNAL.
and best technologies are deployed.
But others say that instead of more regu-
lation, there needs to be better coordination
between industry and regulators on both
what needs to be done and who will pay for
it.
days to 93% of the 7.8 million customers who
lost power. Additional investments in grid re-
silience are under way as well.
All of this progress has occurred within the
context of the extensive state and federal reg-
ulations that already exist. State public utility
commissions decide whether to approve the
infrastructure investments proposed by elec-
tric companies, and determine the rates com-
panies can charge customers to pay for such
investments. At the federal level, the electric-
power industry also must comply with manda-
tory reliability standards.
Other types of government initiatives are
essential to combat climate change and the
challenges it creates. The electric-power in-
dustry has reduced greenhouse-gas emissions,
and has cut CO2 emissions by nearly 25% from
2005 to 2016. Government policies should sup-
port additional measures.
But electricity companies already are rap-
idly incorporating clean energy into the power
mix. At the end of 2016, more than 70% of so-
lar generation and nearly all wind generation
was installed by electricity companies. They
don’t need government rules to prod them—
they are already leading the way. What is
needed is a fair way to apportion the costs of
maintaining the energy grid for all customers
linked to it, including those who rely on solar,
wind and other intermittent sources of power.
Distributed and renewable generation, how-
ever, will only help stormproofing if those tech-
nologies are engineered to survive catastrophic
weather events. In some regions, those ap-
proaches make sense. Elsewhere, hardening tra-
ditional infrastructure, and building redundant
power feeds that can rapidly restore power,
will offer more cost-effective options.
New regulation to stormproof the grid is
unnecessary in either case, and no substitute
for the cooperative efforts between regulators
and the power industry already happening.
Dr. Stockton is managing director of the
economic and security advisory firm
Sonecon LLC. His clients include the Edison
Electric Institute. He was formerly the assis-
tant secretary of defense for homeland de-
fense and Americas’ security affairs. He can
be reached at reports@wsj.com.
JOE SKIPPER/REUTERS
fornia Gov. Jerry Brown is plainly incorrect
when he defends his climate talks with China
by saying California is a “separate nation.” No
one, presumably, would countenance gover-
nors opposed to the Iran nuclear agreement
traveling to Qatar to coordinate continued
sanctions against the Iranian regime.
States will sometimes advance an eco-
nomic, rather than environmental, rationale
for their renewable-energy policies—boosting
a promising industry. That strategy makes no
more sense here than in any other industry,
where politically motivated efforts at market
distortion would be rightly recognized as fool-
hardy.
If renewables are as economically attractive
as their proponents claim, then government
mandates should not be necessary to spur in-
vestment and deployment. Conversely, state
policy makers do neither their consumers nor
their fledgling industries any favors when
they mandate the purchase of things that the
market doesn’t want. A strong case exists for
funding precommercial research and develop-
ment in a variety of speculative technologies,
renewable energy included. But that already
exists and has bipartisan support at the fed-
eral level.
States can supplement such efforts in their
own universities. If they are looking for other
ways to act on climate, they can encourage re-
sponsible urban planning and build infrastruc-
ture that will be resilient against stronger
storms and higher seas. But they should limit
their empty political gestures to ones that
damage neither the nation’s energy markets
nor its foreign policy.
Mr. Cass is a senior fellow at the Manhat-
tan Institute for Policy Research. He can be
reached at reports@wsj.com.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Will Electric Vehicles Replace Gas-Powered Ones?
BY MICHAEL TOTTY
ELECTRIC VEHICLES seem to
be on a roll.
Several countries, including
Britain, France and India, have
said they want to end sales of
gasoline and diesel cars and
light trucks
in less than
25 years.
Auto makers
are following
a l o n g —
Ford, Gen-
eral Motors
and Volvo all
have ambi-
tious plans
Tony Seba for electric
vehicles. Yet
electric
models ac-
counted for
less than 1%
of cars sold
in the U.S.
last year and
only a bit
more than
1% of those
Kate Gordon on the road
world-wide.
The Wall
Street Jour-
nal asked
three experts
for their pre-
dictions on
the future of
electric vehi-
cles: Tony
Nawar Alsaadi
Seba, an au-
thor and en-
trepreneur;
Kate Gordon, senior adviser at
the Paulson Institute, a think
tank focused on U.S.-China rela-
tions and sustainable economic
growth; and Nawar Alsaadi, an
author and principal at invest-
ment-advisory firm Semper Au-
gustus Capital. Here are edited
excerpts.
What’s next and when?
WSJ: Tony, how soon do you
think electric vehicles will re-
place gas and diesel ones?
MR. SEBA: By 2030, 95% of U.S.
automobile miles traveled will
be in on-demand, autonomous
electric-vehicle fleets, in a new
business model called trans-
port as a service.
This disruption isn’t going
to be one where individuals
simply trade in their gasoline
or diesel vehicles for electric
vehicles. Both gasoline/diesel
vehicles and the individual
ownership of automobiles will
be disrupted. By 2030, 60% of
light-duty vehicles are ex-
pected to be owned by fleets
that provide transport-as-a-
service—think electric, autono-
mous versions of Uber, Lyft or
Didi—and only 40% to be indi-
vidually owned. However, since
fleet vehicles will drive
100,000 miles a year apiece,
they will contribute 95% of the
total miles driven in the U.S.,
while individuals will only con-
tribute 5% of the miles. Also,
the total number of vehicles in
the U.S. will shrink by 80%, be-
cause individuals will stop buy-
ing cars for themselves and opt
for these services instead.
The day autonomous vehi-
cles are approved, the per-mile
cost of autonomous electric ve-
hicles will be one-tenth that of
a new car, because electric ve-
hicles last 500,000 miles and
are being designed to last at
least 1 million miles. The cost
of operating autonomous elec-
tric vehicles will be as little as
one-quarter that of even a
paid-off gasoline car.
MR. ALSAADI: It is noteworthy
that autonomous electric vehi-
cles are required for electric
vehicles to dominate. This
speaks to the fact that the cur-
rent generation of electric ve-
hicles can’t compete with in-
ternal-combustion vehicles
unless they are integrated with
a new business model. The
technology to offer such a
transportation model remains
experimental; the financial via-
bility of such a business model,
assuming the technology ma-
tures, has yet to be proved; and
the cultural acceptance of such
a transportation model re-
mains questionable.
The biggest obstacle for
electric vehicles’ wide adop-
tion is their failure to address
an actual problem from the
driver’s point of view. Electric
vehicles have less range, lower
residual value, higher cost—
and this includes fuel cost—
slow charging time, and are
adversely impacted by cold or
hot weather, among other is-
sues. In 1917, electric vehicles
represented 38% of the U.S. car
fleet; there is a reason why
they are at 1% today. Internal-
combustion cars offer a more-
viable transportation option.
NY Tuesday, November 14, 2017 | R5
JOURNAL REPORT | BIG ISSUES
Addressing a need and mainstream analysts made
WSJ: Nawar, do you think elec- when the first iPhone came out
tric vehicles will ever replace in 2007: Why would anyone
those with internal-combustion want to buy a $600 smart-
engines? phone when they can buy the
MR. ALSAADI: For something to $100 Nokia? The smartphone
replace something else, it was a superior product with a
needs to address an existing lot of functionality beyond
deficiency, solve a problem or making a phone call. Electric
at least offer the same service vehicles are similarly a supe-
at a lower cost. Electric vehi- rior product to internal-com-
cles fail on all these measures. bustion vehicles.
In a free-market dynamic, elec- The electric drive train is
tric vehicles as they are have superior in acceleration,
JEFF CHIU/ASSOCIATED PRESS
no realistic chance of replacing power, etc. The Tesla Model S
internal-combustion cars any- was named the Motor Trend
time soon. Car of the Year as far back as
A common argument by the 2013. Consumer Reports
electric-vehicle camp is that named it the best car ever
the price of electric vehicles, made. One-tenth the cost of
especially the cost of the bat- charging per mile, one-tenth
tery, will decline enough in 10 the cost of maintenance, Tesla’s Model S, shown in production in Fremont, Calif., was Motor Trend’s Car of the Year in 2013.
to 15 years to make them com- 500,000-mile life vs. 140,000
petitive with internal-combus- to 200,000 for an internal- anywhere. You can charge your disrupt the market. No. 1: The electric vehicle with the per-
tion cars. The cost of the bat- combustion vehicle. Some house with your car or your replacement of the internal- formance of today’s Porsche
tery is 50% mechanical, hence electric-vehicle companies are car with your house. combustion vehicle by the for 10% to 20% less than the
the decline in the price of the making the million-mile elec- There are two ways in electric vehicle. By 2020, con- median new car in America. So
battery including assembly will tric vehicle. You can charge which electric vehicles can/will sumers will be able to buy an Please see EV page R6
not fall as quickly as for the
cells themselves. As electric-
vehicle sales increase, subsi-
dies for electric vehicles will be
phased out. This will cancel
out if not eliminate totally the
reduction in battery prices
over the next 10 to 15 years.
Electric vehicles are unlikely to
be cost-competitive with inter-
nal-combustion cars in the
near to medium term.
Electric vehicles will still
need to address inherent prob-
lems with range, battery per-
formance in cold/hot weather,
charging time and charging in-
frastructure. Having said that,
Equity investment totals have
electric cars could and will
gain 5% to 15% market share in
the 2030s, mainly due to regu-
reached $66 trillion worldwide.
lation, aspirational sales, inno-
vation, and improvements in
cost and performance.
Internal-combustion-car In the U.S. alone, equity markets have grown more than 180%
manufacturers are not ignoring since 2009. With that much at stake – for individuals as well as
the threat. Innovation in fuel institutions – mutual funds, retirement funds and endowment
efficiency and reduced pollu-
tion continue, enhancing inter- funds need a way to manage the risks of stock market fluctuations.
nal combustion’s appeal and CME Group gives investment professionals the tools they need to
longevity, as well as extending
address market exposure. This is how the financial industry can
the yardstick electric vehicles
must beat. I don’t see electric offer investors the right balance between risk and reward. This is
vehicles replacing internal- how the world advances. Learn more at cmegroup.com/finance.
combustion cars under any
reasonable time frame. How-
ever, the future is infinite, and
such switching may very well
take place beyond the 2050
time horizon.
MS. GORDON: I am all in favor
of electric vehicles, and I do
believe that their market is go-
ing to grow exponentially, es-
pecially with China and India
putting in new electric-vehicle
mandates and incentives, and
driving down the costs dra-
matically as a result.
However, replacing the cur-
rent vehicle fleet with an elec-
tric-vehicle fleet—even if fewer
people are driving, as Tony
notes—is in large part a matter
of individual owner economics.
The majority of Americans
drive the cars they can afford,
and “affordability” is about up-
front cost, not cost over the
period of ownership.
Americans are actually hold-
ing on to their cars longer
since the 2008 recession; in
fact, the share of cars 11 to 20
years old in the U.S. vehicle
fleet increased by 33% between
2008 and 2012. Those with
older cars often just let them
run down, and then buy from a
neighbor or friend.
The secondhand market will
increasingly include hybrids
and more-efficient cars, thanks
to fuel-economy standards, and
we’ll see the fleet slowly be-
come more efficient and more
electric. But this won’t be a sea
change—especially in low-in-
come rural areas, where people
are most dependent on their
vehicles today.
We don’t have a “free-mar-
ket dynamic”—we have a world
in which countries with impres-
sive economic and market
power, like China, have ac-
knowledged climate change and
are mandating EV sales as a re-
sult. China combines that policy
push with the ability to manu-
facture at speed and scale.
China’s policy will push this
transition faster than it would
have otherwise happened.
Policy Role
WSJ: Kate, how soon do you
think before we see electric ve-
hicles replacing gas and diesel
vehicles?
MS. GORDON: I think electric ve-
hicles will replace internal-com-
bustion vehicles as new-vehicle
sales by maybe 2030. I think
the entire turnover of the fleet
won’t happen for at least an-
other 10 years. Both will take
significant policy action, includ- CME Group is a trademark of CME Group Inc. The Globe logo is a trademark of Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.
ing regulation, which will be Copyright © 2017 CME Group. All rights reserved.
subject to political whims.
MR. SEBA: Analysts today make
the same mistake that experts
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R6 | Tuesday, November 14, 2017 THE WALL STREET JOURNAL.

JOURNAL REPORT | BIG ISSUES

Will New Tariffs Hurt the U.S. Solar Industry?

Last month, the U.S. International Trade
Commission recommended that President
Trump implement new tariffs on imported
solar cells and modules. Cells are the com-
ponents of solar modules, or panels, that
produce electricity.
The recommendation was made after two
U.S. makers of solar panels, Suniva Inc. and
SolarWorld Americas Inc., petitioned the
commission for tariff relief. Those companies
are hoping to avoid the fate of the many
U.S. producers of solar products that have
been driven out of business by low-cost im-
ports from China, the world’s leading solar
manufacturer. President Trump has until
January to decide whether to act on the
commission’s recommendations, which also
include import quotas and a licensing fee.
Supporters say new tariffs on solar cells
and modules are needed to save the remain-
ing U.S. manufacturers and allow production
in the U.S. to grow.
But some critics say these tariffs would
have an entirely different outcome, damag-
ing the broader solar industry in the U.S. by
raising prices for consumers and by encour-
aging the imposition of retaliatory tariffs
abroad on U.S. solar products.

YES
They Could Impede
Demand and Bring
Retaliatory Tariffs
BY JEFFREY BALL
SOLAR POWER is undergo-
ing a stunning revolution,
plummeting in price and
surging in popularity. That
price drop is due partly to
technology, partly to gov-
ernment subsidies and
mostly to the efficiencies of
globalization. The surest way to encourage so-
lar’s global growth is to let that globalization
proceed—not to block it with tariffs.
Tariffs already have hurt solar in the U.S.,
and more tariffs would do more damage.
The U.S. government has ruled repeatedly
that China’s solar manufacturers are selling
products in the U.S. at prices so low—made
possible by government subsidies so high—
that they violate trade rules. So, as global so-
lar costs tumble, driven largely by manufac-
turing scale in China, the U.S. has built a tariff
wall against Chinese solar imports.
Now the Trump administration is set to de-
cide whether to slap new tariffs on crystalline
solar cells and modules imported from
China—this time because U.S. trade officials
have concluded Chinese competition is signifi-
cantly harming U.S. manufacturers. Though it
might seem politically expedient to pile on
more protectionist bricks, the economically
smart—and environmentally preferable—deci-
sion would be to tear down the wall.
Whether the tariffs are justified is a legal
question. But their practical effect is clear.
They’ve eroded U.S. solar manufacturing
where it used to be globally competitive: the
production of polysilicon, the building block
for solar cells. That’s because China, in re-
sponse to the U.S. tariffs on Chinese cells and
modules, imposed tariffs on U.S. polysilicon.
Between 2010, before tariffs were imposed,
and 2017, the U.S. share of global production
of crystalline solar cells and modules, never
large, actually has fallen, to 0.8% from 2.2%
for cells and to 1.7% from 2.1% for modules,
according to data-analysis firm IHS Markit.
The U.S. share of global polysilicon output has
plummeted, to 11.3% from 29.1%.
Raising the tariffs could do more harm than
good. It could prod some foreign cell and
module makers to open U.S. plants. But it
could squeeze U.S. makers of other solar prod-
ucts—by inducing other countries to impose
retaliatory tariffs and, more fundamentally, by
raising solar-power prices for U.S. consumers,
impeding U.S. solar demand. That could crimp
both the sizable U.S. solar-installation indus-
try and a promising clean-energy source.
U.S. solar policy shouldn’t seek to prop up
domestic manufacturing that wouldn’t be via-
ble without tariffs. It should seek to make so-
lar power—which has enjoyed juicy subsi-
dies—cost-efficient for the U.S. and the world.
A Stanford University study of the global
solar industry that I led concluded earlier this
year that the U.S. can be a competitive solar
manufacturer—but only in certain segments of
the industry that leverage U.S. comparative
strengths, and assuming a still-prominent Chi-
nese manufacturing role. Those areas include
products for U.S. use that are big or heavy,
making them expensive to import; products
for export that are energy-intensive to make
and thus benefit from cheap U.S. natural gas;
and the initial production of innovative new
products that leverage U.S. R&D excellence.
Some contend foreign solar manufacturing
imperils U.S. energy security. They’d do better
with this surgical strategy for an economically
sustainable U.S. solar industry than with the
blunt hammer of tariffs. Solar, now only about
1.5% of global electricity, will need deeper cost
cuts to become a truly meaningful energy
source. Tariffs don’t make solar cheaper. It’s
time for a smarter solar strategy.
Mr. Ball is scholar-in-residence at Stanford
University’s Steyer-Taylor Center for Energy
Policy and Finance, and the former environ-
ment editor of The Wall Street Journal. He
can be reached at reports@wsj.com.
NO
They Level the
Playing Field and Aid
U.S. Manufacturers
BY TERENCE P. STEWART
THE U.S. SOLAR industry is
in deep trouble, plagued by
plant closings and bank-
ruptcies that have sharply
reduced manufacturing ca-
pacity. Without additional
meaningful tariffs on im-
ports of solar cells and
modules, solar manufacturing is in danger of
disappearing entirely in the U.S. That would
undermine the country’s energy security and
technological leadership, and eliminate jobs in
the industry itself and far beyond it.
If significant new tariffs are adopted, a host
of benefits can be expected. First, solar cell
and module manufacturers, and their suppliers,
in the U.S. will revive, given the ability to once
again sell their products at prices above costs.
Foreign makers of solar cells and modules
are also likely to set up manufacturing plants
in the U.S. if the tariff is high enough to make
production in this country economical for
them, creating many new jobs here. And solar
manufacturers in the U.S. will once again be
able to make significant investments in re-
search and development—something an indus-
try in survival mode can’t do.
The benefits wouldn’t be limited to the so-
lar industry and its workers. A healthier, grow-
ing solar industry would increase tax revenue
for local and state governments as well as the
U.S. Treasury. It would also bring increased
sales of goods and services of all kinds to the
communities where manufacturing facilities
are located, as solar workers spend their
wages, and reduce costs to governments for
benefits and services for the unemployed.
Moreover, a viable domestic solar cell and
module manufacturing sector would keep the
U.S. from becoming totally dependent on im-
ports to generate solar energy as this renew-
able fuel assumes a more important role in the
country’s overall energy supply.
Keep in mind that increased tariffs
wouldn’t be permanent: Under U.S. law, relief
can be provided for up to four years, with a
possible extension for another four years, but
whatever relief is granted must be phased out
over time according to a preset schedule.
While increasing tariffs on imports of solar
cells and modules might reduce consumption
somewhat in the U.S. from what might occur
absent tariff relief, concerns on this score are
almost certainly overblown.
First, modules are a small part of the total
cost of a solar installation. A Deutsche Bank
Markets Research paper estimates modules at
12% of total installation costs. That means even
hefty duties would have a relatively modest ef-
fect on the overall cost of solar power. Second,
overall costs continue to fall, so that even with
high tariffs on solar cells and modules, total
costs likely would remain below 2016 levels—a
year with the strongest growth in solar demand
and installation in the U.S. At those prices, solar
would remain competitive against alternatives
like natural gas, which has seen a big increase
in spot prices over the past two years.
The danger that higher tariffs on solar cells
and modules would prompt additional retalia-
tory Chinese tariffs on imports from the U.S.
of the polysilicon that cells are made from is
no reason not to proceed. The appropriate re-
sponse to any Chinese action that violates in-
ternational trade agreements is a legal chal-
lenge. Not acting because of such a threat is
simply letting a bully prevail.
The idea that economic efficiency dictates
that the production of solar cells and modules
should be left to China is similarly flawed.
Chinese producers are lower-cost only because
of massive state involvement. Given a level
playing field, the U.S. should be able to com-
pete across the board in solar energy. Tariffs
are one way to level the playing field.
Mr. Stewart is managing partner of the
Stewart & Stewart law offices in Washing-
ton, D.C., with 38 years of experience in
trade cases. Email him at reports@wsj.com.

Solar Powers Soaking Up the Rays

Production of photovoltaic cells in selected Top solar photovoltaic markets by generating
countries, in thousands of megawatts capacity, in thousands of megawatts

China 2016 2021

1 China 77.9 1 China 197.9
Taiwan 2 Japan 42.9 2 U.S. 112.2
3 U.S. 42.4 3 India 75.9
Malaysia
4 Germany 41.1 4 Japan 72.5
S. Korea 5 Italy 19.0 5 Germany 53.6
2010 2016
Japan
6 U.K. 11.5 6 Italy 22.5
7 India 9.5 7 U.K. 15.8
FRED JOE/SOLARWORLD

Germany 8 France 7.1 8 France 15.2

U.S.
9 Australia 5.8 9 Australia 13.6
10 Spain 5.5 10 South Korea 12.1
0 10 20 30 40 50 60

Source: International Energy Agency, Trends 2016 in Photovoltaic Note: Projections for 2021 are based on the middle of three scenarios. A robot helps produce solar panels in a SolarWorld Americas factory in Hillsboro, Ore. The
Applications; RTS Corp. Source: SolarPower Europe THE WALL STREET JOURNAL. company recently petitioned U.S. trade officials for tariffs on imported panels.

EVs
Continued from page R5
the electric vehicles will be
cheaper to buy, more powerful,
80% to 90% cheaper to fuel,
and 90% cheaper to maintain.
Electric vehicles will continue
to drop in cost so that by 2025
all new vehicles will be elec-
tric. This is a slower disrup-
tion because it’s a 1 to 1 substi-
tution of the existing car fleet.
No. 2: The replacement of
car ownership by transport as
a service—individuals stop
buying new cars altogether,
both electric vehicles and in-
ternal combustion. In cost and
value, transport as a service is
dramatically better, leading to
a much faster disruption.
There are much more powerful
feedback loops here, and much
greater gains for individuals
and society that will accelerate
it. All these will cause policy
makers to enact new legisla-
tion that will accelerate the
disruption.
MR. ALSAADI: I have certainly
seen pro-electric-vehicle ana-
lysts mention smartphones as a
template for electric-vehicle
growth, yet I don’t see how this
is applicable to electric vehi-
cles. Smartphones delivered a
superior product with more
functionality at a higher price
point to existing Nokia phones
at the time. Electric cars are of-
fering an inferior product at a
superior price point. This is a
surefire formula for failure once
subsidies are removed.
If there is any disruption in
the market, it’s disruption by
pro-electric-vehicle regulation,
since regulation is forcing
electric vehicles on consumers
at a great cost to taxpayers.
I am not sure why it’s as-
sumed that a transport-as-a-
service fleet will be electric.
Car 2 Go, one of the most suc-
cessful car-sharing services in
North America, eliminated
many electric cars from its
fleet in 2016 due to a number
of issues, including lack of in-
frastructure.
Regulation in countries such
as China will have a meaning-
ful impact on electric-vehicle
adoption. Chinese electric-ve-
hicle incentives have been sub-
ject to widespread abuse, thus
forcing the country to cut elec-
tric-vehicle subsidies, which
have had a notable impact on
the electric-vehicle sales
growth rate in 2017.
WSJ: Nawar, We’ve seen
steady improvement in battery
costs and electric-vehicle
range. Does your timeline de-
pend on those improvements
slowing or coming to an end?
MR. ALSAADI: I am taking into
account the potential decline
in battery cost. I am also as-
suming this will be offset to a
large extent by subsidy elimi-
nation. As for electric-vehicle
range, I do see improvement.
However, internal-combustion
cars’ efficiency will also im-
prove during the same time
frame, thus undermining to
some extent cheaper electric-
ity refueling cost.
Finally, I think we need to
be cautious about the gospel of dergo a faster disruption than
forever-lower battery prices. cars. While many people asso- Power Drive
Potential bottlenecks are also ciate trucking with long dis- The number of electric cars Electric cars by country, 2016
appearing in regards to bat- tance, more than half the world-wide (2 million total)
tery components, such as freight in the U.S. is driven
Volkswagen’s failure to secure less than 100 miles, and 71% 1,400 thousand
China 32%
sufficient cobalt supply for travels less than 250 miles.
their electric-vehicle plans. Electric trucks with 100- 1,200 U.S. 28
These issues may be re- mile range are approaching the
solved or addressed at some upfront purchase price of their Battery Japan 8
1,000 electric
point, but they could slow or internal-combustion-engine vehicles Norway 7
reverse low battery-price tra- peers. Given the order-of-mag- 800
jectory for some time. nitude savings in energy (and Plug-in Netherlands 6
MR. SEBA: Battery costs have maintenance) of electric trucks hybrids
600
been dropping faster than vs. internal-combustion-engine U.K. 4
most analysts expected. Lith- trucks, these savings alone
ium costs have more than dou- would justify a wholesale con- 400 France 4
bled, but lithium-ion battery version of fleets. The electric- 9.4 Germany 4
costs have still dropped by truck disruption of internal- 200
about 20% a year since 2010, combustion-engine trucks will 0.04 Canada 1
an even faster rate than be- start sooner and have a faster 0
fore. Cobalt may become a bot- adoption curve than the main- 2010 ’11 ’12 ’13 ’14 ’15 ’16 Other 7
tleneck for those whose bat- stream anticipates.
teries use cobalt. But 80% of MS. GORDON: The point isn’t
China’s EV batteries use no co- that electric vehicles are/can A Place to Plug In
balt. And those who do use co- be stronger and more effec- Publicly available charging stations by country, 2016
balt are learning to use it more tive. It’s that there’s a cultural
efficiently. The increase in in- bias that plays into car owner- Public slow chargers Public fast chargers
vestments, R&D, learning ship. People don’t always make (212,000 outlets total) (110,000 outlets total)
curve, economies of scale, and ownership decisions rationally.
so on will bring the cost of I agree partially about China 25%
batteries dramatically down. larger vehicles. Fleet vehicles
MS. GORDON: Tony, how do you will transition sooner because U.S. 17 China
deal with culture? The best- they’re under the control of a Netherlands 12 81%
selling vehicle in the world is single owner, usually turned
the Ford F150 truck; it has over quickly and go short dis- Japan 8
been the best-selling in Amer- tances. I’m less confident
ica for years. about heavy-duty trucks, Germany 8
MR. SEBA: Electric vehicles are which may go to hydrogen or
France 7
far more powerful than inter- another technology rather 9%
nal-combustion-engine vehi- than electric because of bat- U.K. 5
cles (while being far cheaper tery size/weight issues.
to maintain and fuel). When- Norway 3 Other Japan | 5% U.S. | 5%
ever the market delivers an Mr. Totty, a former news
Canada 2
electric competitor to the editor for The Journal Report Source: International Energy Agency,
F-150, it will disrupt that mar- in San Francisco, can be Global EV Outlook 2017
Other 13
ket. Trucking will likely un- reached at reports@wsj.com. THE WALL STREET JOURNAL.