For personal, non-commercial use only. Do not edit, alter or reproduce.
For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
DJIA 23787.45 À 256.10 1.1%
What’s
News
Business & Finance
L ampert will get one last
chance to keep Sears
from closing down, after the
retailer agreed to let its
longtime leader compete in
a bankruptcy auction that
will decide its fate. A1, B6
 Ghosn’s lawyer argued
that Japanese prosecutors
rushed to judgment and had
no basis for the lengthy deten-
tion of the car executive. B1
 Sumner Redstone and
his family have agreed to
settle their legal dispute
with the media mogul’s for-
mer live-in companion. B1
 AmEx suspended a direc-
tor in its foreign-exchange
department as part of its
investigation into pricing
practices in the division. B1
 Apple is wooing phone
buyers by offsetting the
price of devices with gen-
erous trade-in offers. B1
 The company rewarded
CEO Cook and other execu-
tives with a big compensa-
tion boost for fiscal 2018. B4
 MetLife named Khalaf
to be chief executive of the
insurer, succeeding Kan-
darian, who will retire. B10
 U.S. stocks rose, pro-
pelled by signs of progress in
U.S.-China trade talks. The
Dow, S&P 500 and Nasdaq
all advanced by about 1%. B11
 Small-cap companies are
projected to notch another
year of big profit gains. B1
 WeWork secured an ad-
ditional $2 billion from Soft-
Bank, less than the Japanese
firm had planned to invest. B3
 PG&E’s top executive
overseeing the California
utility’s electric division is
leaving the company. B3
World-Wide
 The president, in a TV
address, said a wall along
the southern border is key
to national security, as he
called for lawmakers to fund
it and end a partial govern-
ment shutdown that is days
away from becoming the
longest in U.S. history. A1
 Trump’s plans for a swift
Syria exit were upset when
Turkey’s Erdogan rejected a
request to protect U.S.-backed
Kurds fighting in the region
and instead threatened mili-
tary strikes against them. A1
 Cancer deaths fell 27%
over a quarter century, re-
sulting in an estimated 2.6
million fewer of them during
that period, a report said. A1
 The U.S. and China
made progress on narrow-
ing their differences on
trade issues, but remained
far from striking a deal. A6
 Attorneys for Manafort
inadvertently disclosed that
he gave 2016 presidential
polling data to a Kiev associ-
ate U.S. officials have linked
to Russian intelligence. A4
 The Russian lawyer who
met with Trump campaign
officials in 2016 was charged
with obstruction of justice
in connection with a U.S.
money-laundering case. A4
 The EU imposed its first
sanctions against Iran since
the nuclear accord was imple-
mented three years ago. A7
 U.S. carbon emissions
rose 3.4% in 2018 after three
years of declines, an indepen-
dent research firm said. A3
 London’s Heathrow
halted departing flights after
a nearby drone sighting. A9
CONTENTS
Business News...... B3
Crossword.............. A14
Heard on Street. B12
Life & Arts....... A11-13
Markets............. B11-12
Opinion.............. A15-17
s 2019 Dow Jones & Company, Inc.
All Rights Reserved
* * * * * WEDNESDAY, JANUARY 9, 2019 ~ VOL. CCLXXIII NO. 7
NASDAQ 6897.00 À 1.1% STOXX 600 345.85 À 0.9%
CARLOS BARRIA/REUTERS; CHIP SOMODEVILLA/GETTY IMAGES (BELOW)
In a speech Tuesday night from the Oval Office, President Trump said a wall along the U.S. southern border was crucial to the
nation’s security. Senate Minority Leader Chuck Schumer and House Speaker Nancy Pelosi delivered the Democrats’ response.
Trump Makes Case for Wall
President, in a rare
Oval Office address,
pitches barrier funding
to end shutdown on
By Rebecca Ballhaus,
Kristina Peterson
us l,
and Michael C. Bender
al a
e
WASHINGTON—President
Trump, in a prime-time address
Tuesday, said a wall along the
ci on
southern border is key to na-
tional security, as he called for
lawmakers to fund it and end a
partial government shutdown
that is days away from becom-
er rs
ing the longest in U.S. history.
In the televised address
from the Oval Office, Mr.
Trump’s first in his nearly two
m e
years as president, he empha-
m rp
Cancer Deaths Decline Steeply
BY AMY DOCKSER MARCUS
co Fo
Deaths from cancer dropped
27% over a quarter century,
meaning an estimated 2.6 mil-
lion fewer people died of the
disease during that period, ac-
cording to a new report from
researchers at the American
Cancer Society.
For most of the 20th cen-
tury, cancer deaths rose, driven
mainly by men dying from lung
cancer, researchers noted. But
since the peak in 1991, the
n-
death rate has steadily dropped
1.5% a year through 2016, pri-
marily because of long-running
efforts to reduce smoking, as
no
well as advances in detection
and treatment of cancer at ear-
lier stages, when prognosis for
recovery is generally better.
“There is still a long way to
go. A reduction in cancer mor-
tality does not mean it is zero
or even close to zero. Cancer is
still one of the leading causes
Sears Gets
Final Shot
At Survival
Next Week
BY LILLIAN RIZZO
AND PATRICK FITZGERALD
Billionaire Edward Lampert
will get one last chance to keep
Sears Holdings Corp. from clos-
ing down, after the retailer
agreed to let its longtime
leader compete in a bankruptcy
auction that will decide the
once-iconic department store’s
fate.
Property Report B5-6 Sears, which filed for chap-
Sports....................... A14
Streetwise................. B1 ter 11 protection in October,
Technology............... B4 plans to hold a court-super-
U.S. News............. A2-5 vised auction on Monday that
Weather................... A14
World News....... A6-9
will determine whether what is
left of the 126-year-old chain is
liquidated or left in Mr.
> Lampert’s control. The re-
tailer’s independent board
members and creditors want to
Please turn to page A8
 Mall owners aren’t buying
Lampert’s plans for Sears... B6
WSJ.com HHHH $4.00
10-YR. TREAS. g 9/32 , yield 2.716% OIL $49.78 À $1.26 GOLD $1,283.20 g $3.60 EURO $1.1442 YEN 108.73
Turkey
Rebuffs
U.S. on
Kurds
Erdogan rejects call to
protect allies fighting
Islamic State, imperiling
plan for quick Syria exit
President Trump’s plans for a
swift withdrawal of U.S. troops
from Syria were thrown into dis-
array when Turkey’s president
rejected a request to protect U.S.
allies fighting in the region and
instead threatened military
strikes against them.
By Vivian Salama
in Ankara, Turkey,
and Dion Nissenbaum
in Washington
Turkish leader Recep Tayyip
Erdogan declined on Tuesday
to meet with Mr. Trump’s visit-
ing national security adviser,
House Speaker Nancy Pelosi John Bolton, who had called on
.
and Senate Minority Leader Turkey not to target a U.S.-
ly
Chuck Schumer, the Democratic backed Kurdish militia that
congressional leaders, issued an Turkey calls a terrorist organi-
immediate televised response, zation.
rejecting the idea of a wall as “John Bolton made a serious
unnecessary and accusing Mr. mistake,” Mr. Erdogan told law-
Trump of stoking fear to rally makers from his ruling Justice &
support for his cause. Development Party on Tuesday.
“President Trump must stop “Those who share the same view
holding the American people are also deeply wrong.”
hostage, must stop manufactur- Mr. Bolton’s inability to
ing a crisis, and must reopen forge a deal with Turkey raised
the government,” Mrs. Pelosi the possibility that a U.S. pull-
said. Mr. Schumer said Demo- out could be postponed indefi-
crats are united with the presi- nitely—and it opened a new rift
dent on the need for stronger between two North Atlantic
border security, but said: “We Treaty Organization allies that
sharply disagree with the presi- have frequently clashed over
sized what he said was support A wall “is absolutely critical dent about the most effective the U.S.’s Middle East policies.
for wall funding from law-en- to border security,” Mr. Trump way to do it.” It also exposed weaknesses
forcement officials, who he said said, in a nine-minute speech. Mr. Trump and congressio- in the Trump administration’s
requested the more than $5 bil- “It’s also what professionals at nal leadership from both par- shifting struggles to implement
lion for the barrier that Mr. the border want and need. This ties are scheduled to meet and the president’s abrupt decision
Trump is seeking. is just common sense.” Please turn to page A4 Please turn to page A7
Social Media’s New
of death among Americans,” Deaths from cancer have Advisers Lean Right
said Noel Weiss, professor of fallen over the 25 years
epidemiology at the University
of Washington, who wasn’t in- from 1991 to 2016.
volved with the study.
Amid the good news about
600 per 100,000 people Facebook, Twitter turn to outside groups to
the decline in the death rate, help police political speech, stirring new ire
there are also some troubling
signs that researchers said Diagnoses
need to be addressed. Endome- BY KIRSTEN GRIND seek out input from hun-
trial cancer has increased, and AND JOHN D. MCKINNON dreds of groups, a growing
about 60% of cases are attri- 400 number of which lean to the
buted to obesity, according to The world’s biggest social- right. The companies have
Rebecca Siegel, strategic direc- media companies, under fire become receptive to behind-
tor of surveillance information for failing to police content the-scenes lobbying as well.
services at the American Can- on their sites, have invited Among the initiatives,
cer Society and the lead author an array of outside groups to Facebook has privately
of the new report. help them figure out who sought advice from the Fam-
“We are probably only see- 200 should be banned and what’s ily Research Council, a con-
ing the tip of the iceberg re- considered unacceptable. servative Christian public-
garding the influence of the That solution is creating a policy group, and its
obesity epidemic on cancer Deaths new set of problems—public president, Tony Perkins, ac-
rates,” Ms. Siegel said. Just as fights, complaints and legal cording to people familiar
tobacco use drove cancer death battles. with those meetings. Twit-
Please turn to page A2 Silicon Valley giants Face- ter’s Chief Executive Jack
0
book Inc., Twitter Inc. and Dorsey recently hosted din-
 For one family, lung cancer is 1980 ’90 2000 ’10 Google’s YouTube unit have ners with conservatives, in-
an odyssey.................................. A2 Source: American Cancer Society made a concerted push to Please turn to page A10
Food Dipped in Gold Looks Pretty
Salesforce.
—Until You Try to Eat It
#1 CRM.
i i i
Dubai takes the food fad to the extreme;
‘Gold all over my teeth and my mouth’
Ranked #1 for CRM Applications based on
IDC 2018H1 Revenue Market Share Worldwide.
BY MICHAEL AMON food gimmick elsewhere has 20.3%
been taken to the extreme in
DUBAI—Bill Riththilertnapa Dubai and Abu Dhabi, its two
ordered a $26 cappuccino biggest cities, where social
topped with a sheaf of 23- media fuels a gastronomic
karat gold with his wife and gilded age.
parents at the Armani Hotel There are gold-flaked piz-
here last January for one rea- zas and gold-injected soups,
son: Instagram. gold-dusted
They snapped french fries and 7.5%
pictures for the gold-infused 5.4%
virtual world but Bloody Marys, 4.1%
reality sank in af- cakes and pies
3.6%
ter Mr. Riththi- topped with gold
lertnapa took a frosting. An Ital-
sip. “It’s not a ian restaurant of- 2014 2015 2016 2017 2018H1
pleasant mouth- fers gold flakes in
Source: IDC, Worldwide Semiannual
feel,” said the 29- Dinner is served lieu of Parmesan Software Tracker, October 2018.
year-old clothing cheese. In the
businessman from Bangkok. past year, several major hotels
“It’s tasteless gold with stuff have begun offering cappucci-
stuck on your teeth.” nos infused with gold.
An edible-gold arms race is The gold dishes come with salesforce.com/number1CRM
ramping up in the United Arab hefty price tags—$45 for gold CRMmarketincludesthefollowingIDC-definedfunctionalmarkets:SalesForceProductivityandManagement,Marketing
Campaign Management, Customer Service, Contact Center, and Digital Commerce Applications. © 2018 salesforce.com,
Emirates, and it isn’t always a dusted chicken nuggets and inc. All rights reserved. Salesforce.com is a registered trademark of salesforce.com, inc., as are other names and marks.
pretty sight. A tired, one-off Please turn to page A10
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A2 | Wednesday, January 9, 2019 * *** THE WALL STREET JOURNAL.

U.S. Aims to Squeeze Venezuelan Leader
The U.S. Treasury Depart- ministration officials say is
ment sanctioned a Venezuelan meant to pressure President
network that allowed the Nicolás Maduro into restoring
owner of media giant Globovi- democratic order and the rule
sion Tele CA and several state- of law.
The latest action targets
By Ian Talley in former Venezuelan Treasury
Washington and Kejal officials, seven Venezuelan
Vyas in Caracas businesspeople and nearly two
dozen of their companies, in-
connected businesspeople to cluding Globovision, the coun-
illicitly make billions of dollars try’s largest media company. It
in profits from the country’s freezes their assets under U.S.
broken currency market. jurisdiction, prevents their
The U.S. action on Tuesday travel into the U.S., and bars
is part of a comprehensive American firms from working
sanctions campaign Trump ad- with the blacklisted entities. .
U.S. NEWS
The administration timed
its latest salvo to fall ahead of
Mr. Maduro’s inauguration
Thursday to a second term fol-
lowing an election Washington
says was fraudulent and ex-
pands a grip on power kept
through violent repression.
Previous U.S. actions have
detailed top Maduro regime
officials running state-aided
narco-trafficking and money-
laundering operations and cor-
ruption throughout the gov-
ernment. That includes in the
food program Caracas says is
to aid a starving population
but the U.S. alleges is used for
political control.
The sanctions follow prose-
cutions of several of the tar-
geted individuals, including
Alejandro Andrade, the former
national treasurer, who once
served as a bodyguard to Mr.
Maduro’s predecessor Hugo
Chávez. Mr. Andrade pleaded
guilty in a U.S. court to taking
more than $1 billion in bribes
while in office.
Also targeted is Raúl Gor-
rín, president of Globovision
and life insurance broker Se-
guros La Vitalicia. U.S. officials
say Mr. Gorrín bribed Mr. An-
drade and his successor, Clau-
dia Patricia Díaz, to gain privi-
leged rights to exchange
currency for the Maduro gov-
ernment.
Ms. Díaz, Mr. Chávez’s for-
mer nurse and another U.S.
Treasury target, is fighting re-
lated money-laundering
charges levied by Spanish
prosecutors.
U.S. officials allege Mr. Gor-
rín and several of his associ-
ates used Venezuela’s widely
used black-market exchange
rates—running at much higher
rates—to reap billions of dol-
lars in profits. Mr. Andrade
told U.S. prosecutors those
profits were transferred into
assets overseas, including in
the U.S. and Europe.
Calls and emails to Mr. Gor-
rín, his attorney in Miami,
Howard Srebnick, Globovision
and Venezuela’s Information
Ministry weren’t returned. Mr.
Andrade is serving a 10-year
U.S. prison sentence that he
received late last year.
Ms. Díaz, the other former
national treasurer, couldn’t be
reached to comment.

For One Family, Lung Cancer Is an Odyssey Kavanaugh

BY AMY DOCKSER MARCUS Delivers
Two years ago, at the age of
55, Terri Ann DiJulio was diag-
nosed with lung cancer—for
His First
the second time.
Ms. DiJulio says she was
devastated. In the 12 years
High Court
since her previous bout with
cancer, her mother had died
from lung cancer and two of
Opinion
her mother’s siblings were still BY JESS BRAVIN
fighting the disease. AND BRENT KENDALL
Nonetheless, Ms. DiJulio
says she was struck by how WASHINGTON—Shades of
much had changed in the in- the past and future permeated
tervening years, not only for Supreme Court proceedings on

.
her but also for her family. Tuesday, as Justice Ruth

ly
There were better methods of Bader Ginsburg’s chair re-
early detection, more treat- mained vacant while she recu-
ments and greater recognition perates from cancer treat-
that many who get cancer, like on ment, and new Justice Brett
her mother, never smoked. Kavanaugh delivered his first
During her first lung can- opinion.
cer, Ms. DiJulio had the right In contrast to his conten-
COURTESY OF TERRI ANN DIJULIO

lower lobe of her lung re- tious confirmation hearings

us l,

moved. This time, the oncolo- last fall, Justice Kavanaugh’s

gist told her, there was a new debut was the picture of co-
al a
e
method of radiation that mity, as he wrote for a unani-
would let her avoid a painful mous court to resolve a proce-
surgery and spare the rest of dural issue in arbitration
ci on

her lung. That let Ms. DiJulio, between two businesses.

who is an avid bike rider, get Chief Justice John Roberts,
back to cycling. In September, Lung-cancer survivor Terri Ann DiJulio, far right, helped celebrate the 79th birthday of her mother, who has since died of the disease. who assigned the opinion to
she rode 260 miles to raise Justice Kavanaugh, has sought
$10,100 for the Bonnie J. Add- progress,” she says. “But the they weren’t sure if it was to the hospital thinking she involving Merck & Co.’s to distinguish the court as a
er rs

ario Lung Cancer Foundation. number of deaths from lung
“I had better options than cancer is still shocking.”
my mother,” says Ms. DiJulio. Ms. DiJulio says her fam-
“But I want the next genera- ily’s story illustrates some of
m e
cancer and advised that she be was having a heart attack. She Keytruda in patients who have steady and collegial institu-
closely monitored with regular died in 2011 at the age of 79. a recurrence of lung cancer. tion apart from the raucous
scans. Ms. DiJulio, who had After Ms. DiJulio’s mother Recently, Ms. DiJulio and political struggles consuming
smoked around five cigarettes was diagnosed, doctors recom- her family members started the White House and Con-

tion after me to have better the ways things have gotten a day from the time she was mended that close family discussing participating in a fa- gress.
options than I do.” better, along with the many 17, quit smoking. members receive screening us- milial genetics research study. The chief justice also re-
Still, 25% of all cancer challenges that remain. Two years later, doctors ing low-dose computed tomog- She thinks more personalized peated his Monday announce-
m rp

deaths are due to lung cancer, Her first lung cancer was
and more people die from lung found accidentally. Ms. DiJulio
cancer than breast, prostate says she felt pressure in her
and colorectal cancer com- chest so her doctor sent her to
bined, says Rebecca Siegel, the hospital, concerned about
co Fo
said the scans revealed the
nodule was growing, so Ms.
DiJulio underwent surgery.
Eighteen months after Ms.
DiJulio’s surgery, her mother
raphy. The screening found
lung cancer in Ms. DiJulio’s
aunt and uncle, who had no
symptoms of disease. The dis-
ease was caught early, Ms. Di-
treatments may be the best
hope, not only in her family’s
odyssey with lung cancer, but
for improving mortality rates
in the coming 25 years, too.
ment that the absent Justice
Ginsburg would participate in
the argued cases by reading
the briefs and transcripts.
The court’s eldest member,

lead author of the new Ameri- a possible heart problem. In- was also diagnosed with lung Julio says. They are both still “My family has benefited 85 years old, had surgery in
can Cancer Society report stead, scans turned up a nod- cancer. Ms. DiJulio’s mother felt alive; Ms. DiJulio’s aunt is now from the advances, but we need December for lung cancer and
Tuesday. “We have made great ule on her lung. Doctors said pressure in her chest and went taking part in a clinical trial to do more,” Ms. DiJulio says. wasn’t expected on the bench
this week—her first absence
since joining the court in 1993.

Cancer Fewer Smokers, Better Detection

The drop in deaths was mainly due to smoking cessation and early detection and treatment, but death
the Ohio State University Com-
prehensive Cancer Center, said a
number of hypotheses try to ex-
Justice Kavanaugh, 53
years old, addressed a dispute
between Archer & White, a

Deaths
rates continue to rise for some types of cancer. The mortality decline was larger for men than women. plain the connection between dental-equipment reseller in
Death rate, by type of cancer obesity and cancer and these Plano, Texas, and global sup-
can vary depending on the can- plier Henry Schein Inc., of

Show Drop
100 per 100,000 people 100 per 100,000 people
cer. She cited chronic inflamma- Melville, N.Y.
tion and changes in estrogen as After Archer & White filed
Men Women two possibilities. an antitrust suit in federal
n-

75 75 Dr. Weiss, the cancer epide- court, the supplier invoked a

Continued from Page One miologist, said the trends in col- contract clause to send the
rates earlier, Ms. Siegel said, Lung, bronchial Lung, bronchial
orectal cancer are “worrisome, case to private arbitration.
obesity could influence future especially if they continue as “The question then became:
no

projections. 50 50 people get older.” He also said Who decides whether the anti-
Despite the steady decline in Breast
obesity can cause structural trust dispute is subject to ar-
Prostate
overall death rates, the study’s changes in the liver, which bitration?” Justice Kavanaugh
authors projected in 2019 there Colorectal Colorectal might predispose individuals to wrote.
would be 1.76 million new can- 25 Pancreatic 25 Pancreatic liver cancer. Experts said more A federal appeals court in
cer cases and close to 607,000 research needs to be done.
Liver, intrahepatic Uterine
cancer deaths in the U.S. The bile duct
Incidence rates in mela-
investigators based their con- Liver, intrahepatic noma, liver, thyroid, uterine
clusions on data compiled from
Leukemia bile duct and pancreatic cancers also
Justice Kavanaugh’s
0 0
federal agencies and cancer Stomach Stomach continue to rise. In both men opinion was a concise
registries but noted a lag in the 1950 2000 1950 2000 and women, liver-cancer inci-
number of cases and deaths be- Source: American Cancer Society THE WALL STREET JOURNAL. dence is increasing more rap-
eight pages, and for a
cause it takes time to collect idly than any other cancer. unanimous court.
and analyze data. The study According to the researchers,
was published Tuesday in CA: report finding an increase of The gap in cancer mortality Among adults under the age 71% of liver-cancer cases can po-
A Cancer Journal for Clinicians. 0.4% a year for breast cancer. between blacks and whites has of 55, the incidence of colorec- tentially be prevented through
Men die in the greatest num- Men had a 34% total decline narrowed, mainly due to a drop tal cancer has continued to in- lifestyle changes, such as not New Orleans concluded that
bers from lung, prostate and in cancer mortality over the 25 in smoking among black teen- crease almost 2% a year since smoking, increasing physical ac- the trial court itself could do
colorectal cancer, while women years, compared with 24% for agers from the late 1970s to the the mid-1990s. Obesity might tivity, losing weight and pre- so when the claim for arbitra-
die primarily from lung, breast women, largely due to trends in early 1990s, the report said. be a factor, but many research- venting hepatitis B and C vi- tion is “wholly groundless.”
and colorectal cancer, according smoking rates. Lung-cancer inci- New drugs, such as costly ers also think “something else ruses. About 24% of liver-cancer Some lower courts, how-
to the report, which also dence is declining twice as fast immunotherapies, are begin- is also going on,” Ms. Siegel cases result from chronic hepati- ever, have held that if contract
pointed out differences in can- among men as women, which in ning to transform the treat- said. “Everyone is scrambling tis C infection, the report found, provides for it, the arbitrator
cer incidence and mortality be- part reflects the fact that women ment of many cancers and are to try to figure it out.” with a threefold rise in reported should decide.
tween the sexes. Rates for some historically took up smoking in fueling deals among pharma- Electra D. Paskett, professor infections from 2010 to 2016 be- Justice Kavanaugh wrote
common cancers are increasing large numbers in later decades ceutical firms looking to shore of cancer research and associate cause of the opioid epidemic, ac- that litigation over whether
or stable in women, with the and were slower to quit. up their strength in that space. director of population science at cording to investigators. claims were “wholly ground-
less” or merely “groundless”
could become “a time-consum-
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
CORRECTIONS  AMPLIFICATIONS ing sideshow.”
Arbitrators themselves
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
could “efficiently dispose of
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, January 9, 2019 | A3

U.S. NEWS

Emissions
Of Carbon
Climb 3.4%
Effects of a strong
Heat Rises
economy in 2018 U.S. CO emissions, change from 2
reversed U.S. progress a year earlier
on greenhouse gases 4%

BY KRIS MAHER 2

U.S. carbon emissions rose

3.4% in 2018, after three years 0
of declines, as the effects of a
strong economy outstripped a –2
sharp drop in the number of

power plants burning coal to
generate electricity. –4
The increase in carbon 2015 ’16 ’17
emissions was the biggest
*Estimated
jump since 2010, when the Source: Rhodium Group
economy was rebounding Note: Energy combustion only
from the recession, and the THE WALL STREET JOURNAL.
second-largest increase in two
decades, according to the made to cut emissions as part
Rhodium Group. The indepen- of the 2015 Paris climate ac-
dent research firm analyzed cord. A U.N. report in Novem-
emissions across sectors, in- ber said more-ambitious com-
cluding power generation, mitments were needed
transportation and manufac- globally to avoid catastrophic
turing. effects of climate change.
The U.S. had been among President Trump, a Repub-
the world’s few success sto- lican, said last year he intends
’18*
The transportation sector, led by more jet-fuel and diesel use, was the No. 1 source of U.S. carbon emissions for a third straight year.
primary fuel used to produce
electricity.
In the U.S., utilities were ex-
pected to have retired nearly
14 gigawatts of coal-fired
power generation by the end of
2018, possibly a record, accord-
ing to Tuesday’s report. Mean-
while, natural gas use was up
KC ALFRED/ZUMA PRESS
senger cars and power plants, emissions for the third on average over the next seven
Trevor Houser, a climate and straight year. years, Rhodium Group said.
energy analyst at the Rhodium Cold weather also played a In its November report, the
Group, said more focus should role, with emissions from fuel U.N. said global emissions
now be paid to areas like long- oil, diesel and natural gas used showed no sign of reaching a
haul trucking, aviation and in- to heat residential and com- peak.
dustrial production. mercial buildings rising 10%, Ashley Burke, a spokes-
“Other sectors of the econ- to the highest level since woman for the National Min-
omy deserve the same amount 2004. ing Association, said the re-

.
ries, dramatically reducing to withdraw the U.S. from the significantly. Natural-gas gen- of attention” through new Overall, carbon emissions port showed that no single

ly
emissions for several years as agreement. eration grew four times as fast technology development or were still down 11.2% from industry should be targeted
it moved away from coal-fired U.S. efforts to cut carbon as wind and solar combined regulation, he said. 2005 levels. for emissions reductions. “Ef-
power during the Obama ad- emissions have been helped in through the first 10 months of As the economy grew last To meet the Paris agree- forts to demonize coal may
ministration. Those reductions recent years by increased pro- 2018, the report said.
on year, increased trucking and ment target of reducing all have helped natural gas pro-
have started to level off and duction of cheap natural gas, While most carbon-cutting jet use led to a 3% increase in greenhouse-gas emissions by ducers, but they weren’t the
potentially now are in reverse. which produces far less car- efforts at the federal and state diesel and jet-fuel use in the 26% to 28% from 2005 levels answer to America’s emissions
Many countries have fallen bon per unit of energy and levels have been aimed at transportation sector, which by 2025, the U.S. will have to challenge,” she said. “The an-
far behind the pledges they has supplanted coal as the cleaning emissions from pas- was the No. 1 source of carbon cut those emissions by 2.6% swer has to be innovation.”
us l,

Biotech Firm Proposes Installment Plans for Therapy

al a
e
ci on

BY JOSEPH WALKER lion] is something we need to annually, and in Europe, about tied to employment, and Blue-
sort through,” Mr. Leschly €30,000 to €40,000 (roughly bird has to ensure it will get
A Boston-area biotech firm said. The $2.1 million figure $34,000 to $46,000) a year. paid if patients change jobs or
says it may have a found a excludes other metrics like re- Bluebird’s therapy is de- insurance carriers. The com-
er rs

way to handle the expected ductions in patients’ overall signed to replace the defective pany is also concerned that it
seven-figure cost of its experi- medical costs, the company genes with one infusion. In will have to share the dis-
mental gene therapy: paying says. small studies, the drug has counts it gives to patients who
on installment. Several drug companies helped keep many patients receive the least benefit with
m e

Bluebird Bio Inc. is devel- and health insurers have been free from blood transfusions Medicaid, which is entitled un-
oping plans to sell its first eyeing such an approach as a entirely, and significantly re- der federal law to receive the
gene-replacement therapy, solution to the high prices of duced their frequency in oth- best price on prescription
m rp

for a rare inherited blood emerging treatments, which ers. But the treatment’s long- drugs.
disease, on a five-year in- could cost $1 million or more. term durability is unknown. Pharmaceutical companies
DANIEL KRAMER/REUTERS

stallment plan, with each an- Bluebird could be among the Under Bluebird’s pricing have been facing increasing
nual payment contingent on first to put payment by in- plan, it would receive as little scrutiny of high drug prices
its treatment’s continued ef- stallment into effect. Typi- as 20% of the product’s total from patients, doctors, law-
co Fo

fectiveness. cally, health plans pay for a
Bluebird, based in Cam- drug whether or not it helps
bridge, Mass., won’t say how the patient.
much it plans to charge for the LentiGlobin could go on
therapy, called LentiGlobin. sale in the European Union
But the price will be lower later this year if regulators
than $2.1 million, the amount there approve it. In the U.S., it
that Bluebird estimates is the could be cleared for sale as
drug’s “intrinsic value” to pa- soon as 2020.
tients, including improvements The therapy aims to treat
in quality and length of life, beta thalassemia, a disease
Bluebird Chief Executive Nick caused by a defective gene
Leschly said in an interview. that hinders production of he-
“Whether it’s just below or moglobin, which carries oxy-
n-
Bluebird’s Nick Leschly says its therapy will cost under $2.1 million.
can cause severe anemia, fa-
tigue and organ damage. In
very severe cases, patients can
die before the age of 30.
The disease is estimated to
affect 300,000 people around
the world and 1,000 in the U.S.
Today, treatment requires
cost upfront, and put the re-
maining 80% at risk of non-
payment. Each year afterward,
the insurer would pay down
an additional 20%, but only if
the treatment meets certain
which come with their own criteria, such as eliminating or
side effects that can be fatal reducing the number of trans-
over time. Bone-marrow trans- fusions. “We only get paid if
plants can also effectively cure we do what we said we’d do,”
the disease, but many patients Mr. Leschly said.
are unable to find suitable do- Bluebird faces hurdles in
nors. Bluebird estimates that implementing the payment ar-
the current standard of care in rangement, Mr. Leschly said.
makers and health plans. In
response, companies have be-
gun experimenting with new
payment models, such as of-
fering retroactive rebates if
their products fail to meet
prespecified effectiveness
criteria.
The rise of gene therapies,
which promise a cure with just
one treatment, has intensified
the debate over how to pay for
the drugs, because a few are
fast approaching and could

considerably below [$2.1 mil- gen through the blood, and regular blood transfusions, the U.S. costs about $130,000 In the U.S., insurance is often cost $1 million or more.

Baltimore Picks Another Police Chief

no

BY SCOTT CALVERT

BALTIMORE—Baltimore’s
mayor on Tuesday nominated
New Orleans’s top cop to run
the city’s troubled police de-
partment, a day after the with-
drawal of her first pick brought
fresh upheaval in one of the
nation’s most violent cities.
Mayor Catherine Pugh said
she believes New Orleans Po-
lice Superintendent Michael
GERALD HERBERT/ASSOCIATED PRESS

Harrison can reduce violent

crime while also rebuilding
trust with Baltimore residents.
His nomination requires City
Council approval.
Ms. Pugh, a Democrat,
wasted little time shifting
gears after Fort Worth Police
Chief Joel Fitzgerald said on
Monday that he no longer New Orleans police chief Michael Harrison, left, during Mardi Gras in February 2018, with the city’s
wanted to be considered for then-mayor, Mitch Landrieu. Mr. Harrison was just nominated to be Baltimore’s police commissioner.
the Baltimore police commis-
sioner role, citing health is- collaboration and confidence.” think, bodes well for Balti- Hogan, a Republican, unveiled
sues involving his teenage son. In pivoting to the 49-year- more,” Ms. Pugh said Tuesday. a series of initiatives to com-
Mr. Harrison has spent 27 old Mr. Harrison, Ms. Pugh is Louisiana State University bat crime in Baltimore. The
years with the New Orleans betting he can replicate his re- criminologist Peter Scharf said measures include the creation
Police Department and became cord from New Orleans, where Mr. Harrison has helped trans- of an operations center where
chief in 2014. He informed crime has dropped in recent form the New Orleans depart- 200 law-enforcement officers
New Orleans Mayor LaToya years, as the police depart- ment from what was once a from federal, state and local
Cantrell he will step down as ment—like Baltimore’s—has “horror story” on civil-rights agencies will work to disrupt
chief effective Jan. 19. operated under a federally compliance and constitutional the criminal organizations
In a statement released by mandated overhaul. policing. that Mr. Hogan says fuel much
Ms. Pugh’s office, Mr. Harrison New Orleans last year had “Baltimore won, we lost,” of the city’s violence.
said, “My first priority will be 146 homicides, the fewest Dr. Scharf said, referring to Baltimore’s police depart-
to drive meaningful cultural since 1971, though homicides the appointment. But he ment has had a tumultuous
change within the department rose his first two full years as added: “If you can build trust time since 2015, when rioting
such that not only is there a superintendent, and the city’s in one city, does that mean erupted after the death of 25-
renewed sense of purpose and murder rate remains higher you can transfer it to another year-old Freddie Gray from in-
mission among those sworn to than in most U.S. cities. city?....Baltimore is not an juries he sustained in police
protect and serve, but that cit- “To be able to attract a po- easy city to be a police chief.” custody. Violent crime soared
izens’ trust is restored to a lice chief who is reducing vio- Ms. Pugh’s announcement in 2015 and has remained ele-
new level that enables true lence at its highest rate, I came as Maryland Gov. Larry vated.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A4 | Wednesday, January 9, 2019
Manafort
Filing Sheds
New Details
BY ARUNA VISWANATHA
Attorneys for Paul Manafort
inadvertently disclosed on
Tuesday that the former
Trump campaign chairman
gave 2016 presidential polling
data to a Kiev associate U.S.
officials have linked to Russian
intelligence and may have dis-
cussed a Ukraine peace plan
with him.
The disclosures surfaced in
a filing made public Tuesday
in which the attorneys dis-
puted special counsel Robert
Mueller’s allegation that their
client lied to investigators
about his contacts with the
Kiev associate, Konstantin Kil-
imnik, and about other mat-
ters after reaching a plea
agreement last year.
The legal team played down
the significance of Mr.
Manafort’s alleged misstate-
ments, saying they were the
result of a faulty memory, fail-
The ex-Trump aide’s
lawyers disputed Mr.
Mueller’s allegation
that their client lied.
ing health, and his inability to
review relevant documents be-
fore meeting with prosecutors.
In the filing, Mr. Manafort’s
legal team said their client
gave the government access to
his electronic devices, email
accounts and passwords, met
with investigators a dozen
times, testified twice before a
grand jury, and tried to pro-
vide accurate information “to
the best of his ability.”
Mr. Mueller accused Mr.
Manafort late last year of tell-
ing “multiple discernible lies”
about his contacts with the
Trump administration and Mr.
Kilimnik as well as about
other matters, in the weeks af-
ter he agreed to plead guilty
to multiple crimes and cooper-
ate in Mr. Mueller’s investiga-
tion into Russian interference
in the 2016 election and any
links to the Trump campaign.
In the new filing, Mr.
Manafort’s attorneys blame
the alleged misstatements on
his lack of access to relevant
documents and evidence so he
could refresh his memory,
leaving him unable to prepare
for the meetings.
“There is no identifiable
pattern to Mr. Manafort’s pur-
ported misrepresentations,”
the team wrote, suggesting he
no
wasn’t out to hide anything.
The attorneys also said the
longtime political operative suf-
fers from depression and anxi-
ety, adding that solitary con-
finement has “taken a toll on
his physical and mental health.”
Mr. Manafort was convicted
of tax and bank fraud in his
private business dealings by a
Virginia federal jury last year,
and agreed to plead guilty to
additional crimes as he was
set to face a second trial in
Washington.
Mr. Mueller’s lawyers are
scheduled to tell the federal
judge in Virginia this month
what sentence they think Mr.
Manafort should serve. The
special counsel’s office is also
scheduled to provide an up-
date next week on the cooper-
ation of a key witness against
Mr. Manafort, longtime
Manafort associate Richard
Gates.
Mr. Mueller’s surprise as-
sertion in November that Mr.
Manafort had breached his
plea deal by lying to investiga-
tors suggested the special
counsel had come to view Mr.
Manafort as not a credible
help to the investigation. Mr.
Manafort’s Tuesday filing
played down the significance
of the alleged lies, describing
them as innocent mistakes and
the result of his inability to re-
us l,
member details of events that
occurred amid the hectic
al a
e
schedule of the presidential
campaign.
In one example that was
ci on
originally redacted but was
viewable in a version posted
on the court’s docket, Mr.
Manafort said he initially for-
got some details of his interac-
er rs
tions with Mr. Kilimnik, a
close associate in Ukraine. Mr.
Manafort’s team said he ac-
knowledged those details—in-
m e
cluding discussing a Ukraine
peace plan, meeting in Madrid,
and sharing 2016 polling data
m rp
with Mr. Kilimnik—after pros-
ecutors refreshed his memory.
“The simple fact that Mr.
Manafort could not recall, or
incorrectly recalled, specific
co Fo
events from his past dealings
with Mr. Kilimnik—but often
(after being shown or told
about relevant documents or
other evidence) corrected him-
self or clarified his re-
sponses—does not support a
determination that he inten-
tionally lied,” Mr. Manafort’s
attorneys wrote.
A spokesman for Mr.
Manafort declined to comment
on the filing. The attorneys
later filed a version with the
n-
redactions intact.
P W L C 10 11 12
Russian Lawyer Charged by U.S.
BY REBECCA DAVIS O’BRIEN
AND REBECCA BALLHAUS
The Russian lawyer who
met with Trump campaign of-
ficials at Trump Tower in 2016
has been charged with ob-
struction of justice stemming
from her role in a federal
money-laundering case, ac-
cording to an indictment un-
sealed Tuesday in Manhattan
federal court.
Manhattan federal prosecu-
tors allege the lawyer, Natalya
Veselnitskaya, attempted to
thwart an investigation into a
tax-fraud scheme involving
Russian officials, an influential
Russian businessman and an
investment firm. Prosecutors
say her efforts included work-
ing secretly with a Russian
prosecutor to draft a response
by the Russian government to
U.S. investigators.
The indictment unsealed
Tuesday is unrelated to the
2016 Trump Tower meeting,
but suggests Ms. Veselnitskaya
had close ties to senior Rus-
sian government officials and
at times sought to advance
Russia’s interests in her deal-
ings with U.S. officials.
Reached for comment, Ms.
Veselnitskaya said she was on
vacation and hadn’t yet read
the indictment.
In 2013, federal prosecutors
in Manhattan filed a complaint
seeking to recover millions of
dollars in property, including
New York real estate, alleging
the property had been used to
launder the proceeds of an
elaborate Russian tax-fraud
on scheme involving corrupt Rus-
sian officials and a holding
company, Prevezon Holdings.
A view Monday of the U.S.-Mexico border in Tijuana, Mexico. President Trump is seeking funds for a wall along the southern border.
Trump Lays
Out Case
For a Wall
Continued from Page One
discuss the issue Wednesday at
the White House, after the
president attends a lunch with
Senate Republicans on Capitol
Hill. The president said Tues-
day evening that he had invited
congressional leadership to the
White House to “get this done.”
Mr. Trump’s address was part
of a ramped-up effort by the
White House this week to sway
public opinion in favor of a bor-
der wall, a core issue for Mr.
Trump’s political base but one
that is broadly unpopular. On
Thursday, the Republican presi-
dent is set to travel to the border
to highlight the issue in person.
A Wall Street Journal/NBC
News poll in September, ahead
of midterm elections, showed
29% of respondents said they
would be more likely to vote for
a congressional candidate calling
for a wall, while 55% said they
would be less likely to do so.
The White House sought to
use the address to change the
focus of the debate to border
security rather than the shut-
down, which in recent days has
centered on the hardship facing
furloughed workers or those
working without pay. Because
of the partial shutdown, about
420,000 employees deemed es-
sential are working without
pay, while 380,000 federal em-
ployees have been placed on
H T G K B F A M 1 2 3 4 5 6
U.S. NEWS
The charges against Natalya Veselnitskaya are unrelated to a meeting with Trump campaign officials.
Ms. Veselnitskaya repre-
sented Prevezon in the matter,
which was settled in 2017 for
about $6 million before going
to trial. Ms. Veselnitskaya also
lobbied U.S. officials to end a
sanctions law named for the
Russian whistleblower who
helped uncover the Prevezon
conspiracy and died in deten-
tion in Moscow in 2009.
In the indictment unsealed
Tuesday, prosecutors alleged
that as part of her work in the
Prevezon case, Ms. Veselnits-
kaya secretly worked with a
senior Russian prosecutor to
draft a response by the Rus-
sian government to a Justice
Department request for Rus-
sian Treasury records in 2014.
unpaid leave.
As a candidate in 2016, Mr.
Trump pledged that he would
build a border wall that Mexico
would underwrite. Last year, he
rejected a deal that would have
given him $25 billion for a bor-
der wall and other security
measures because it didn’t give
him other immigration restric-
tions he wanted.
In December, he told Demo-
cratic congressional leaders at
a televised Oval Office meeting
that he would bear responsibil-
ity for any shutdown if Con-
gress didn’t fund the project.
Then, to keep the government
from shutting down, he sig-
naled he would sign a short-
term spending bill that unani-
mously passed the Senate,
before reversing himself and
saying he wanted any bill to in-
clude $5.7 billion in border-wall
funding that was part of a mea-
sure signed by the then-GOP-
controlled House.
In his address, the president
offered a variety of justifica-
tions for the wall.
He reiterated some of the
darker themes from his cam-
paign rallies, rattling off statis-
tics of illegal drugs crossing the
U.S.-Mexico border, sharing sto-
ries of human trafficking and of
crimes allegedly committed by
illegal immigrants.
The president shied away
from some statistics his aides
were criticized for mischarac-
terizing this week but exagger-
ated other numbers. He said
Immigration and Customs En-
forcement officials had ar-
rested 266,000 illegal immi-
grants with criminal records in
the past two years—a number
that includes those arrested
7 8 9 O I X X **** THE WALL STREET JOURNAL.
At the time, Ms. Veselnits-
kaya wrote in a sworn declara-
tion under penalty of perjury
that the Russian findings had
been independently drafted.
She didn’t disclose her partici-
pation in drafting the re-
sponse, prosecutors said.
Angel Melendez, the special
agent-in-charge for the Fed-
eral Bureau of Investigation in
New York, said Ms. Veselnits-
kaya “secretly schemed…to
provide false information to
.
U.S. law enforcement.”
ly
Ms. Veselnitskaya, a Rus-
sian citizen and resident, was
charged with one count of ob-
struction of justice, which car-
ries a maximum sentence of 10
years in prison. She hasn’t
for nonviolent offenses such as
illegal entry or re-entry. ICE
doesn’t categorize its arrests
by type of crime.
Mr. Trump also said a new
trade deal with Mexico, which
hasn’t yet been ratified by Con-
gress, would pay for the bar-
rier—an assertion that is
widely disputed.
The president also made an
emotional pitch: “This is a hu-
manitarian crisis—a crisis of
the heart and a crisis of the
soul,” he said, sitting at the
Resolute Desk. “This is the cy-
cle of human suffering that I
am determined to end.” Demo-
crats have said that Mr.
Trump’s policies, including
Democrats accused
the president of
stoking fear to rally
support for his cause.
one earlier this year that sepa-
rated migrant children from
their families, have worsened
the border’s humanitarian sit-
uation.
Earlier Tuesday, Senate
Democrats blocked the cham-
ber from considering bipartisan
foreign-policy legislation in a
bid to pressure Republicans to
end the government shutdown,
which was in its 18th day.
In his address, Mr. Trump
didn’t declare a national emer-
gency over border security—a
move he publicly contemplated
in recent days—in which he
would seek to divert funds
from elsewhere in the govern-
DMITRY SEREBRYAKOV/ASSOCIATED PRESS
been arrested and is presumed
to be in Russia, which doesn’t
have an extradition treaty
with the U.S.
The indictment offers fresh
details about the extent of Ms.
Veselnitskaya’s involvement
with the Russian government
in the years before she met
with top Trump campaign offi-
cials, who have said she wasn’t
formally working for the Rus-
sian government at the time of
the Trump Tower meeting.
Ms. Veselnitskaya partici-
pated in a June 2016 meeting
with top Trump advisers—in-
cluding Donald Trump Jr.—
that has come under scrutiny
by special counsel Robert
Mueller.
SANDY HUFFAKER/GETTY IMAGES
ment to fund the wall. Such a
declaration would bring swift
legal challenges, and it is un-
clear in that scenario where the
funds would come from.
Mr. Trump has said he
wouldn’t sign any bill ending
the shutdown that doesn’t allo-
cate money for hundreds of
miles of a border wall.
Earlier Tuesday evening,
Senate Democrats prevented
the chamber from moving to
consider a package of bills
aimed at boosting security as-
sistance for Israel and other
Middle Eastern policy provi-
sions. Republicans hold 53
seats in the Senate, where most
bills need 60 votes to clear pro-
cedural hurdles.
Some Democrats have said
they would block all legislation
until the government is re-
opened, though Mr. Schumer
hasn’t gone that far.
The president’s apparent
backing off on declaring an
emergency comes after law-
makers in both parties indi-
cated they wouldn’t support
such a move. Rep. Mac Thorn-
berry of Texas, the top Republi-
can on the House Armed Ser-
vices Committee, said Tuesday
that he opposes using an emer-
gency declaration to build a
wall using military funds.
The administration has
sought in recent days to blunt
the impact of the shutdown. On
Monday, the Trump administra-
tion said the Internal Revenue
Service would pay tax re-
funds even though the agency
is closed, reversing a long-
standing policy.
—Natalie Andrews
and Joe Flint
contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, January 9, 2019 | A5

U.S. WATCH U.S. NEWS

Democrats Unveil Gun Legislation

EMPLOYMENT
Job Openings Decline Confidence Index Falls
But Remain Near Peak For a Fourth Month
The number of unfilled jobs in
the U.S. fell in November to the
lowest level since June, though
openings still exceeded unem-
ployed Americans.
There were a seasonally ad-
justed 6.89 million job openings
on the last business day of No-
vember, the Labor Department
said Tuesday. That was down
from a revised 7.13 million at the
end October. Openings remain
near a historical peak, but have
edged lower since touching a re-
cord 7.29 million in August.
In November, openings ex-
ceeded the unemployed—people
without a job but actively seeking
SMALL BUSINESS
Small-business owners’ confi-
dence in the U.S. economy fell
for the fourth consecutive
month and their outlook on busi-
ness conditions fell to the low-
est level since late 2016, accord-
ing to the National Federation of
Independent Business.
The conservative-leaning
small-business lobby said its op-
timism index fell to 104.4 in De-
cember from November’s 104.8
reading. Economists had ex-
pected a December reading of
103, according to a Wall Street
Journal survey.
The index had set a high of
108.8 in August, breaking a July
Bills would mandate
background checks for
nearly all sales; Senate
approval is unlikely
BY KRISTINA PETERSON
Democrats said their long-
pledged push to tighten the
country’s gun laws would take
center stage early this year as
lawmakers introduced legisla-
tion Tuesday aimed at expand-
ing background checks to
nearly all gun sales.
House Speaker Nancy Pelosi
(D., Calif.), Rep. Mike Thomp-

PATRICK T. FALLON FOR THE WALL STREET JOURNAL

work—by 870,000. Before March
of this year, job openings had
never exceeded unemployed
workers in more than 17 years of
monthly records. But the gap nar-
rowed in November from more
than a million in recent months.
Manufacturing, retail and real
estate were among the sectors
with fewer openings in Novem-
ber from October.
—Eric Morath
OHIO
Woman, 114, Dies;
Believed Oldest in U.S.
Lessie Brown, a 114-year-old
Ohio woman who was believed
to be the oldest person in the
U.S. died Tuesday, her grandson
said.
Ms. Brown, who had been liv-
1983 record.
The NFIB survey is a monthly
snapshot of small businesses in
the U.S., which account for
about half of private-sector jobs.
—Maria Armental
WASHINGTON
Nuclear Waste Plan
Opposed by State
The state of Washington said
Tuesday it opposes a federal pro-
posal to reclassify some radioac-
tive waste on a site in the state
that contains the nation's largest
supply because it fears much of
the waste will be left in the
ground.
The state this week filed its
objections to a Trump adminis-
tration plan to reclassify millions
of gallons of waste stored in un-
son (D., Calif.), who leads a
task force focused on reducing
gun violence, and former Rep.
Gabby Giffords (D., Ariz.) offi-
cially unveiled the legislation
expanding background checks
to more commercial sales and
private transfers, with the goal
of flagging people with crimi-
nal or mental-health histories
that disqualify them from gun
ownership.
The legislation would man-
date background checks on al-
most all gun sales, both com- Background checks would also be required for private sales online and at gun shows under the bill.
mercial and private, with just
narrow exemptions. That of major gun-safety legislation lights how high they plan to Gun-safety advocates coun-
would ensure that background pass either chamber” in recent prioritize reducing gun vio- tered that recent elections dis-
checks would also be required years, said Robin Lloyd, direc- lence as the 2020 presidential proved that point.
for private sales online and at tor of government affairs at primary heats up. In the 2018 Many GOP lawmakers have
gun shows. Currently, federal Giffords, the gun-violence pre- midterms, gun control became criticized bills expanding
laws require the checks only vention group founded by Ms. a litmus test for Democrats, a background checks as ineffec-
for sales by federally licensed Giffords. “It’s certainly a shift from years past when tive in stopping criminals from
dealers, though some states harder, uphill climb in the many in tight races empha- obtaining firearms.

.
ing with one of her daughters, derground tanks at Hanford Nu- have added their own require- Senate,” Ms. Lloyd said, but a sized their support for gun “This legislation does noth-

died at the home in Cleveland
Heights, according to Ronald
Wilson.
Ms. Brown said in 2013 it
was God’s will that she had lived
so long. Others in her family at-
tributed her long life to the fact
that she ate a sweet potato
clear Reservation. The objections
were accompanied by a letter
from Gov. Jay Inslee and Attor-
ney General Bob Ferguson.
The U.S. Department of En-
ergy is seeking to reclassify a
large percentage of the waste
as lower-level waste. That would
us l,
ments.
The measure, which is ex-
pected to have some Republi-
on can support, is likely to pass
the House during the Demo-
crats’ first 100 days in control,
but is expected to stall in the
GOP-led Senate.
bipartisan vote in the House
would “put pressure on the
Senate and the White House to
think about what they’re doing
in response.”
The bill’s introduction fell
on the eighth anniversary of
the day Ms. Giffords was shot
ly
rights.
The bill was introduced
with five Democratic sponsors
and five Republican support-
ers, including GOP Reps. Peter
King of New York, Brian Fitz-
patrick of Pennsylvania, Brian
Mast of Florida, Fred Upton of
ing to prevent gun violence,
yet threatens the constitu-
tional rights of law-abiding
citizens,” said Rep. Richard
Hudson (R., N.C.), who has
previously introduced legisla-
tion enabling gun owners who
legally carry concealed fire-

nearly every day until she was
well past 100.
Ms. Brown was born in 1904
in Georgia and grew up on a
farm near Stockbridge, outside
allow treatment and disposal op-
tions that wouldn’t guarantee
al a
e
long-term protections.
Hanford was established by
the Manhattan Project in World
ci on
More than 40 Democrats
introduced similar back-
ground-check legislation in the
Senate Tuesday. But after de-
cades of little action under
in the head outside a Safeway
in Tucson, Ariz.
“Today is also a day of ac-
tion,” Mrs. Pelosi said as Dem-
ocrats prepared to formally in-
Michigan and Chris Smith of
New Jersey.
“To me it doesn’t violate
anyone’s rights and it puts in
very basic protections,” Mr.
arms in one state to carry
them in others.
The National Rifle Associa-
tion said it expects to oppose
the House bill, noting that

Atlanta. She was one of 12 chil-
dren and moved to Cleveland
with her family when she was 18.
She married about four years
later and had three girls and
War II to make plutonium, a key
ingredient in the atomic bomb
dropped on Nagasaki, Japan. The
site, near Richland, Wash., went
on to produce most of the pluto-
er rs
both Republicans and Demo-
crats, proponents of tighter
gun laws said passage in even
one chamber would mark po-
litical progress on an issue
troduce the bill. “We say
enough is enough by finally
bringing common-sense bipar-
tisan background-check legisla-
tion to the floor of the House.”
King said. But he said for
many Republicans, critics of
tighter gun laws are a stron-
ger political force. “Those who
are opposed to it are much
there already is a background-
checks system in place.
“So-called universal back-
ground checks will never be
universal because criminals do

two boys. Her husband, Robert
Brown, died in 1991.
—Associated Press
no
nium for the nation's nuclear ar- that flares up frequently after Less than a week after more intense and much more not comply with the law,” NRA
senal. mass shootings. Democrats took control of the likely to vote on that as their spokeswoman Jennifer Baker
—Associated Press “We have not seen any kind House, the timing also high- main issue,” he said. said in a statement.
m e
m rp
co Fo
n-

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day and in times of crisis, we ensure they grow up
healthy, educated and safe. Whatever it takes.

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A6 | Wednesday, January 9, 2019 * * THE WALL STREET JOURNAL.

WORLD NEWS
U.S., China Narrow Trade Differences
Progress made on law on foreign investment
could serve as “the basis for
purchases of American changes to policies and prac-
goods and services; tices related to tech transfer.”
Beijing recently released a draft
structural issues loom of the law that promises to ad-
dress some complaints by for-
BY LINGLING WEI eign companies operating in
China about policies and prac-
BEIJING—The U.S. and tices that favor domestic firms.
China made progress on nar- But Michael Wessel, who
rowing their differences on consults with the administra-
trade issues, especially on pur- tion as a member of a panel
chases of U.S. goods and ser- created by Congress to review
vices and widening access to U.S.-China relations, said “spe-
China’s markets, though the cific commitments, coupled
two sides remain far from with success-based metrics
striking a deal. and automatic enforcement
In two days of talks in Bei- mechanisms have to be part of
jing that were to continue any agreement for it to be
GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES

Wednesday, U.S. and Chinese successful.”

midlevel negotiators addressed The negotiations in Beijing,
a number of nettlesome issues which started Monday, were
and tried to specify how to en- conducted as part of a tariff
sure China will carry out truce declared by Mr. Trump
pledges it made, according to and Chinese President Xi Jin-
people on both sides briefed on ping when the two leaders met
the discussions. The U.S. team in Argentina on Dec. 1.
wasn’t expected to leave Beijing If a full trade deal isn’t con-
until late Wednesday afternoon. cluded by March 1, the Trump
“Talks with China are going administration has said it
very well!” President Trump would raise the tariffs on $200
wrote in a tweet while the ne- billion of Chinese goods to 25%
gotiations were wrapping up from 10%.
for the day Tuesday after 9 U.S. negotiators, led by Deputy Trade Representative Jeffrey Gerrish, left, are trying to figure out how to hold China to its pledges. Eager to resolve the trade
p.m. Beijing time. A Chinese of- dispute amid a weakening
ficial with knowledge of the economy, China has been step-
talks described the conversa- Crop Ruling Bolsters ing to U.S. farmers new soy- China’s approval for years. The mitment by China to hasten re- ping up efforts to meet U.S.
tions as constructive. bean seeds modified to survive U.S. Department of Agriculture views for U.S. biotech crops. trade demands. It recently re-
The bilateral trade tensions The War on Weeds a powerful herbicide combina- in 2014 approved the seeds for China’s approval of Enlist moved punitive tariffs on U.S.-

.
have roiled global markets and tion. sale to U.S. farmers, but will help provide a new made cars and auto parts, re-

ly
added a new, bitter dimension The seeds are designed for DowDuPont held off on widely weapon against hard-to-kill newed purchases of American
to the increasingly rancorous China’s approval of new ge- farmers struggling to stop selling the seeds pending ap- weeds like waterhemp and soybeans and began altering an
competition between the two netically engineered crops will weeds that have developed re- proval from China, the world’s palmer amaranth. industrial policy that has been
powers. Both sides believe they open a front in U.S. farmers’ on sistance to other sprays. Re- biggest buyer of soybeans. Such weeds have developed criticized by the Trump admin-
are making enough progress long-running war against hard- sistant weeds are spreading China also approved herbi- resistance to glyphosate, the istration as protectionist.
this week to plan for a next to-kill weeds. across the U.S. Farm Belt, cut- cide-resistant crops developed herbicide marketed by Bayer On Tuesday, China’s Ministry
round of talks among cabinet- The approval, outlined Tues- ting into farmers’ harvests and by Germany’s Bayer AG and under the Roundup of Agriculture and Rural Affairs
level officials, probably this day by Chinese offi- boosting their spending on Syngenta, a Swiss-based com- brand. Bayer last year acquired announced that it approved im-
us l,

month in Washington. cials, clears the way for crop-
Divisive issues remain be- seed and chemical maker
al a
e
tween the two sides and within DowDuPont Inc. to begin sell-
the Trump administration, the
people said. One big challenge
ci on
chemicals.
DowDuPont’s soybeans,
called Enlist, had awaited
pany owned by China National
Chemical Corp. Tuesday’s ap-
provals followed a 2017 com-
Monsanto, which developed ports of five new varieties of
Roundup. genetically modified crops, pav-
—Jacob Bunge ing the way for U.S. agricultural
firms to sell more biotech seeds
to China.

is figuring out how to hold Bei- remains divided on how hard to
jing to commitments to keep push for additional purchases
Chinese firms and officials of mostly agricultural and en-
from pressuring U.S. partners ergy products as well as of U.S.
into transferring technology brokerage, banking and insur-
er rs
China committing to buying
$1.2 trillion U.S. goods and ser-
vices, although he didn’t spec-
ify a time frame for the pur-
chases.
on structural issues such as China starts carrying out its This list of approvals re-
Chinese subsidies to domestic pledges. leased Tuesday includes corn
companies and protection of in- Another option, according to and soybeans produced by
tellectual property. He is con- the people, would be to sus- DowDuPont Inc., BASF and
sidering a number of ways to pend some tariffs but reserve Syngenta AG. The move is ex-

against their will. The U.S. ance services. Promoting such
Trade Representative Office has trade would attempt to address
been asking industry groups Mr. Trump’s concerns about the
and think tanks for suggestions bilateral trade imbalance that is
m e
Meanwhile, U.S. Trade Rep- make sure Beijing lives up to its the right to reimpose them if pected to help the U.S. farm in-
resentative Robert Lighthizer, words on such subjects, accord- China fails to follow through on dustry clear a backlog of bio-
who is heading the China trade ing to people familiar with the its promises. tech seeds that have awaited
talks and whose deputy led the matter. They include eliminat- Josh Kallmer, executive vice approval from China, in some

on how such enforcement vastly in China’s favor. U.S. U.S. team in Beijing, has played ing the existing 10% tariffs on president at the Information cases for years.
should be carried out. Treasury Secretary Steven down the prospect of more pur- $200 billion of Chinese goods Technology Industry Council, —Bob Davis
The Trump administration Mnuchin has talked about chases. Instead he is focusing imposed last year only once said a new proposed Chinese contributed to this article.
m rp

Beijing Gains Leverage From Ties to Pyongyang

co Fo

BY JOSH CHIN Tuesday, which was also Mr. colorful, and we have many ma-
AND ANDREW JEONG Kim’s birthday, Chinese state- jor diplomatic engagements,”
run media ran comments by ex- Mr. Lu said. “There’s nothing
BEIJING—With denucleariza- perts extolling China’s role in particularly unusual for some
tion talks between Pyongyang finding a solution to the nuclear diplomatic engagements to co-
and Washington at a standstill, issue. incide.”
North Korean leader Kim Jong “Kim Jong Un’s willingness China has long been North
Un turned this week to his in 2018 to walk the path to de- Korea’s top economic partner
country’s longtime patron, nuclearization and meet with and de facto security guarantor.
China. the U.S. stems in large part Beijing sent hundreds of thou-
For months, North Korea has from his trust in China,” the sands of troops to aid North
demanded the U.S. ease sanc- Global Times quoted Wang Korea during the 1950-53 Ko-
tions, claiming to have disman- Sheng, a North Korea expert at rean War.
n-

tled some of its nuclear facili- Jilin University in northeastern Security analysts said Mr.
ties. Washington has refused to China, as saying. Kim’s mission in Beijing was
budge, pledging to maintain Mr. Kim appeared to have ar- likely to seek Mr. Xi’s support
NG HAN GUAN/ASSOCIATED PRESS

sanctions until Pyongyang’s rived in Beijing on Tuesday for his approach in the nuclear
no

complete denuclearization in morning by train. He traveled talks with the U.S., and to press
accordance with the agreement with his wife and senior offi- China to ease sanctions pres-
between President Trump and cials, and plans to stay in China sure.
Mr. Kim in Singapore last year. until Thursday, official North “Kim Jong Un is asking Xi to
Mr. Kim’s arrival in Beijing Korean and Chinese news agen- give him the leverage to say ‘no’
on Tuesday at Chinese Presi- cies reported. to U.S. demands to permit in-
dent Xi Jinping’s invitation of- Chinese Foreign Ministry spection of North Korea’s nu-
fered a reminder of the close spokesman Lu Kang said at a clear facilities,” said Nam Sung-
ties between North Korea and Kim Jong Un’s motorcade drove through Beijing on Tuesday as the U.S. and China negotiated on trade. regular press briefing on Tues- wook, a former South Korean
China, whose actions have been day that Mr. Kim’s visit aimed intelligence official. “That lever-
essential to the U.S.-led effort negotiators held their latest U.S. and its allies looked to Bei- remind the U.S. they can be to strengthen communication age is breathing room from
to enforce sanctions on Pyong- round of trade talks in Beijing— jing to help broker a solution. very helpful on North Korea,” between the two countries and sanctions.”
yang. That has given Mr. Xi le- represents a “coincidence of in- Now, Beijing could see North Mr. Tsang said. “It’s a message that China also encourages Choi Kang, vice president of
verage in China’s dealings with terest” between North Korea Korea as leverage in its trade from both Beijing and Pyong- communication between North research at the Asan Institute
Washington, with whom rela- and China, said Steve Tsang, di- dispute with the U.S., while yang to Washington.” Korea and the U.S. for Policy Studies, a private
tions have deteriorated as their rector of the SOAS China Insti- Pyongyang needs China’s assis- This year marks the 70th an- He denied any connection think tank in Seoul, said Mr.
trade dispute has unfolded. tute in London. Back in 2017, tance securing a second summit niversary of the establishment with U.S. trade talks. Kim could be hoping to secure a
The timing of the Xi-Kim when Pyongyang was testing with Mr. Trump. of diplomatic relations between “You would know that Chinese agreement to provide
meeting—as U.S. and Chinese long-range nuclear missiles, the “It’s in Beijing’s interest to China and North Korea. On China’s diplomacy is rich and the North with more energy aid.

World Bank Resignation to Test U.S.

BY JOSH ZUMBRUN the globe. In exchange, Euro-
peans have selected the leader
The U.S. has always chosen of the International Monetary
the president of the World Fund.
Bank. This time it may not go But that consensus already
that way, with the unexpected was fraying when Mr. Kim was
resignation of its president, picked by President Obama to
Jim Yong Kim, announced run the bank in 2012.
Monday. The bank is owned by 189
Mr. Kim’s departure, taking member countries who elect a
effect three years before his board of executive directors to
term ends, could accelerate a govern the institution, with
mpo. National governments
are closely involved in in-
structing their directors how
to vote, and the Obama admin-
istration waged an extensive
charm offensive to get Mr. Kim
across the finish line.
Many nations felt that Mr.
Kim, who was born in South
Korea but raised in the U.S.,
was presented as an American
fait accompli, not the result of
Most countries have
strongly backed the World
Bank’s work on projects re-
lated to climate change; Presi-
dent Trump withdrew the U.S.
from the Paris climate accord.
And most World Bank coun-
tries remain committed to mul-
tilateral financial institutions,
but the Trump administration
has advanced an “America
First” agenda and is critical of
LONG WEI/SIPA ASIA/ZUMA PRESS

divide among the world’s ma- larger countries receiving an open process. multilateral institutions.
jor economies over the leader- more votes. The U.S. has the The Treasury didn’t imme- Mr. Kim will join Global In-
ship at the world’s largest de- bank’s largest voting stake at diately respond to a request frastructure Partners, a New
velopment-finance institution. about 16%. for comment about whether it York-based fund manager,
Since the World Bank’s cre- In 2012, for the first time in would prioritize having an where he will be a partner and
ation over 70 years ago the World Bank history, two chal- American as the next leader. vice chairman. He will depart
U.S. has picked its president, lengers to Mr. Kim were also A range of issues could the bank Feb. 1, and face a one-
using the appointment as a ve- considered: Nigerian finance make it difficult for the rest of year period before he can work
hicle to advance American minister Ngozi Okonjo-Iweala the world to support a candi- with the institution on infra-
economic interests, power and and former Colombian finance date picked by the Trump ad- structure projects, according to World Bank President Jim Yong Kim is leaving to work for a New
development priorities around minister Jose Antonio Oca- ministration. a World Bank official. York-based investment fund manager, Global Infrastructure Partners.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. * * * * Wednesday, January 9, 2019 | A7

WORLD NEWS

Australia Weighs EU Widens Iran Sanctions

Asylum for Teen BY LAURENCE NORMAN

BRUSSELS—The European
BY ROB TAYLOR fice of the United Nations High Union imposed its first sanc-
AND JAMES HOOKWAY Commissioner for Refugees for tions against Iran since the
Ms. Alqunun’s case to be as- nuclear accord was imple-
Australia’s government sessed expeditiously, despite mented three years ago, as Eu-
promised to consider any ap- having canceled her original ropean diplomats warned their
plication for asylum from the tourist visa in light of her Iranian counterparts that the
young Saudi woman who bar- claim for asylum. bloc wouldn’t tolerate further
ricaded herself in a transit ho- “Whether someone holds a alleged Iranian attacks and as-
tel at Bangkok’s international visitor visa does not have a sassinations in Europe.
airport and said her family bearing on this process,” the Tuesday’s sanctions, which
would kill her if she returned spokesman said. Any applica- add two Iranian individuals
home. tion by Ms. Alqunun for a hu- and a unit of the Iranian intel-
Rahaf Mohammed Alqunun, manitarian visa would be care- ligence services to the bloc’s
18 years old, held a tourist fully considered by Australia terror list, follow alleged plots
visa for Australia when she once the UNHCR process has against Iranian opposition fig-
slipped away from her family concluded, the spokesman ures in Denmark and France.
during a visit to Kuwait and said. The U.N. agency has said The targets’ assets will be fro-
boarded a plane to Bangkok it could take days to assess zen and other restrictions put
over the weekend. On her ar- Ms. Alqunun’s claim. She is in place.

rival Saturday, though, she now in Bangkok staying under
said Saudi officials were wait- the protection of UNHCR. Her
ing for her, where they seized family couldn’t be reached to
her passport and escorted her comment.
to the airport’s transit hotel. The interest in Ms.
Thai authorities said she Alqunun’s case shows how so-
would be deported. cial media has the power to
But with a smartphone at draw attention to human dra-
her side, Ms. Alqunun began mas that might otherwise
posting about her predicament have gone unnoticed.
During the standoff at
Bangkok’s Suvarnabhumi Air-
Rahaf port, Ms. Alqunun kept up a
Mohammed steady series of tweets. At
Alqunun, 18, times she posted videos of
says her family herself talking to the camera.
would kill her if In one she loudly said she was
she is forced to claiming asylum. Another
return home. showed her shoving a desk in
front of the door of her room
BART MAAT/EPA-EFE/SHUTTERSTOCK
The move comes as the EU
faces conflicting pressures
over ties to Iran, with the bloc
seeking to salvage the nuclear
deal while confronting hostile
Iranian behavior in its region
and beyond.
Some European officials
back U.S. calls for a tougher
response to Iran’s ballistic Dutch Foreign Minister Blok accuses Tehran of killing Iranian opposition figures in the Netherlands.
missile tests and its role in the
conflicts in Syria and Yemen, diplomats told their Iranian Iranian intelligence unit and and Mr. Blok said in his letter
but the bloc is split on that. counterparts that unless they the two individuals domesti- that “Iran will be held to ac-
“Very encouraging that EU tackle concerns about Iranian cally. One of the two people, count” over “its ballistic-mis-
has just agreed on new tar- violence in Europe and coop- Assadollah Assadi, was accred- sile program and the country’s
geted sanctions against Iran in erate fully with criminal ited as a diplomat in the Ira- role in the region.”
response to hostile activities probes into the cases, “further nian Embassy in Vienna. Mr. The bloc is divided, how-
and plots,” Danish Prime Min- sanctions cannot be ruled Assadi is currently under ar- ever, on whether to apply fur-
ister Lars Lokke Rasmussen out.” rest in Belgium. ther pressure and European
said on Twitter. “EU stands Iran has denied any involve- The two individuals the EU officials stress that they con-

.
at the transit hotel to prevent united—such actions are unac- ment in European attacks. For- targeted on Tuesday were Mr. tinue to support the nuclear

on Twitter and demanded asy- anyone getting in to force her
lum, describing how she had on a flight back to Kuwait.
renounced Islam and claiming She also used the platform
that her family would kill her to talk directly with journal- on sanctions decision, Dutch,
if she was forced to return. ists. In one exchange with The
By the time Thai police re- Wall Street Journal, she de-
lented and allowed her to scribed an abusive environ-
speak with United Nations of- ment in which she said her
us l,
ceptable and must have conse-
quences.”
On Tuesday, following the
British, French, German, Dan-
ish and Belgian diplomats met
in Tehran with Iranian officials
to convey their concerns,
eign Minister Javad Zarif on
Tuesday accused Europe of
harboring terrorist groups
who have launched attacks on
Iran, picking out the Nether-
lands, Denmark and France.
“Accusing Iran won’t ab-
solve Europe of responsibility
ly
Assadi and a senior official in
Iran’s intelligence ministry,
Saeid Hashemi Moghadam,
diplomats said.
U.S. Secretary of State Mike
Pompeo has cited what he
called Iranian plots in Europe
as a key reason for the bloc to
deal and will seek to uphold it.
France, Germany and Britain
are promising a new mecha-
nism to help maintain eco-
nomic ties with Iran despite
the renewed U.S. sanctions
that followed President
Trump’s decision to withdraw

ficials, she had gathered over family once locked her in a
90,000 followers on Twitter room for six months for cut-
al a
e
and her plight had been fea- ting her hair. Ms. Alqunun also
tured around the world, cast- said her cousin had threatened
ing a fresh light on the dis- to kill her after she declared
ci on
Dutch Foreign Minister Stef
Blok said.
Mr. Blok blamed Iran for
the assassinations of opposi-
tion figures in the Netherlands
for harboring terrorists,” he
said on Twitter.
Last summer, French au-
thorities said Iran was behind
a failed bomb plot in June on
take a tougher approach to the
country, including adopting
broad new sanctions over its
missile and regional actions.
EU foreign ministers this
from the deal in May.
Iranian officials have voiced
growing frustration with Eu-
rope’s slow progress on the
mechanism.

crimination women face in she was an atheist, which is a
Saudi Arabia’s conservative Is- capital offense in Saudi Ara-
lamic culture. bia.
A spokesman for Australia’s The outcome of Ms.
Department of Home Affairs Alqunun’s case is far from cer-
er rs
in 2015 and 2017, the first
Dutch official to publicly do
so. He also confirmed for the
first time that the Dutch deci-
sion to expel two Iranian dip-
a leading opposition group in
Paris. In late October, Danish
authorities said they had pre-
vented an assassination plot
by Iran against a top official in
month are expected to issue a
statement on the bloc’s ties
with Iran and are likely to
warn of their continued con-
cerns over some Iranian activ-
Mr. Zarif on Tuesday said
his government would con-
tinue working with Europeans
on the plan, but is looking to
improve economic ties with

on Tuesday said the depart- tain. On Tuesday, she used her lomats last year was con- an Iranian separatist organiza- ities. Britain and France have other countries like China,
ment had asked the Thai gov- Twitter account to request nected to the cases. tion. backed U.S. calls for pressure Russia and India, Iranian me-
ernment and the Bangkok of- asylum from Canada too. Mr. Blok said the European France has blacklisted the on Iran over its missile tests dia reported.
m e

Turkey
m rp

Spurns U.S.
Over Kurds THE WORLD WILL CHANGE.
co Fo

Continued from Page One THIS UNIVERSITY IS DESIGNED

in December to quickly end the
BURHAN OZBILICI/ASSOCIATED PRESS

U.S.’s four-year military cam-

paign against Islamic State in
TO CHANGE WITH IT.
Syria.
The Trump administration
has been working to craft a Because exploration can’t wait.
new policy since mid-Decem-
ber, when Mr. Trump surprised
his national-security team by
agreeing in a call with Mr. Er-
Drexel’s unique design combines academic
n-

dogan to rapidly pull all U.S. Turkish President Recep Tayyip Erdogan on Tuesday rebuffed rigor with a transformative cooperative
forces out of Syria and hand national security adviser John Bolton’s call to protect the Kurds.
over the fight against Islamic education program, positioning students
State to Turkey. and trained tens of thousands Garrett Marquis, a spokes- alongside expert faculty and professionals
no

The policy shift triggered of Kurdish fighters in Syria as man for the White House Na-
widespread opposition from they captured Islamic State’s de tional Security Council, cast the tackling today’s most complex issues. By
lawmakers in Washington, West- facto capital and most of its meeting between Messrs. Bolton
ern allies in the fight against Is- self-declared caliphate. and Kalin as a “productive dis- constantly learning and evolving as the world
lamic State, and Kurdish fighters Mr. Erdogan warned on cussion” that “identified further moves forward, Drexel produces visionary
working alongside U.S. forces to Tuesday that Turkey, which has issues for dialogue.”
crush the militant group’s re- been massing troops along the Mr. Erdogan said that, in his leaders equipped to anticipate and
maining Syrian sanctuaries. border, stood ready to launch view, the agreement he reached
Critics said the move would an offensive into northern Syria with Mr. Trump, under which address the challenges of the future.
embolden Russia and Iran, two to teach a “necessary lesson” to Turkey will replace U.S. troops This is experiential education.
countries looking to challenge the Kurdish fighters, known by in the battle against Islamic
the U.S.’s influence across the the acronym YPG. State in Syria, still holds.
Middle East. The White House didn’t re-
Defense Secretary Jim Mattis spond Tuesday to questions
By embracing change,
and the head of the U.S. cam-
Ankara has opposed about whether Mr. Trump holds Drexel is preparing to change everything.
paign against Islamic State, Brett a different view of the pullout
McGurk, resigned after Mr. the U.S. partnership than Mr. Bolton. However, Mr.
Trump announced the exit plan. Trump at a cabinet meeting last
Mr. Trump left it to Mr. Bolton to
with fighters in Syria week referred to the Kurds as
oversee the U.S. withdrawal. it sees as terrorists. partners of the U.S. in the fight
Initial plans for a rapid with- against Islamic State.
drawal were slowed amid stiff Turkey has also asked the
resistance from the Pentagon, U.S. for considerable military
Congress and U.S. allies. But one official in Tuesday’s and logistical support that
The Trump administration meetings said Ibrahim Kalin, Mr. would allow Turkish forces to
began imposing new conditions Erdogan’s spokesman, had as- push to quash several thousand
for Turkey to meet before the sured Mr. Bolton that Turkey remaining Islamic State mili-
U.S. agrees to withdraw, includ- wouldn’t launch a military opera- tants—a request that has drawn
ing a demand that Ankara tion into Syria until U.S. forces skepticism from Washington.
pledge not to “slaughter” Kurd- were out of harm’s way. While Mr. Bolton flew back to
ish fighters armed by the U.S., Mr. Kalin didn’t offer Mr. Washington, Gen. Joe Dunford,
Secretary of State Mike Bolton any assurances that Tur- chairman of the Joint Chiefs of
Pompeo said last week. key would avoid a fight with Staff, and James Jeffrey, head
Administration officials the Kurds in Syria, and Mr. Er- of the campaign against Islamic
thought Mr. Erdogan agreed to dogan rebuffed a request made State, continued their talks with
do just that in a Dec. 23 call with by the U.S. Embassy to meet key players.
Mr. Trump. But the Turkish Mr. Trump’s national-security In Syria, Kurdish fighters ex-
leader made it clear on Tuesday adviser when it became clear pressed fear the U.S. would
that he rejects that demand in a the two sides hadn’t come to walk away without assuring
speech in which he personally any understanding. that they would be protected.
blasted Mr. Bolton for publicly Asked whether Turkey could “The topic of protection can’t
raising the demand on the eve of launch an offensive against the be left to promises from Tur-
his visit to Ankara. Kurdish fighters without Wash- key,” said Abdulkarim Omar, a
Mr. Erdogan has steadfastly ington’s green light, Mr. Kalin political leader affiliated with
opposed the U.S.’s partnership said: “Turkey may coordinate the U.S.-backed and Kurdish-led
with Kurdish fighters in Syria. its actions with everyone, but Syrian Democratic Forces.
Over persistent Turkish objec- will not take permission from —Raja Abdulrahim in Beirut
tions, the U.S. military armed anyone.” contributed to this article.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A8 | Wednesday, January 9, 2019 * **** THE WALL STREET JOURNAL.

WORLD NEWS

German Economy Signals Unease Student

Admits to
Fresh indications of German officials have
Hitting the Brakes
weakness raise
concerns for the
Germany’s auto industry engine
begins to stall.
played down signs of eco-
nomic softness, attributing
them to temporary factors
Huge Theft
broader eurozone Passenger car industry

6 million vehicles
Production
Exports
that would soon fade. The
economy ministry said Tues-
day that the drop in industrial
Of Data
BY TOM FAIRLESS production partly reflected ex-
AND PAUL HANNON 5 tra vacation days, as well as BY RUTH BENDER
bottlenecks in the key auto
4
FRANKFURT—Fresh signs sector amid delays in passing BERLIN—A German high-
of a weakening German econ- 3 model types for compliance school student was behind a
omy are raising fears that last with new emissions standards. massive data theft that af-
2
year’s slowdown could spill Volkswagen AG, Europe’s fected nearly 1,000 politicians
PETER STEFFEN/ZUMA PRESS

into 2019, deepening the chal- 1 biggest auto maker, experi- and other personalities and
lenges facing policy makers in enced sharp sales declines in revived concerns over cyber-
0
Europe and the U.S. November in Europe, China security in a country with one
Industrial production in Eu- 2014 ’15 ’16 ’17 ’18 and the U.S., but company ex- of the world’s toughest pri-
rope’s largest economy Note: Includes cars, light trucks and ecutives remain optimistic vacy laws.
sport-utility vehicles. 2018 data is
dropped in November, accord- preliminary. that was a temporary detour The 20-year-old confessed to
ing to data released Tuesday, Source: German Association of the from continued growth. having stolen personal data and
the latest reflection of a con- Volkswagen, Europe’s biggest auto maker, experienced sharp Automotive Industry Low water levels on the gathered other publicly avail-
fluence of headwinds facing sales declines in November in Europe, China and the U.S. THE WALL STREET JOURNAL. River Rhine have also been a able information on federal and
the global economy, including problem for some German local politicians, journalists, co-
trade tensions and weakening have weighed on global mar- is sliding toward a period of from the previous month, the chemical companies, including medians and musicians, which
demand from China. kets, despite strength in the lower growth or a recession. country’s statistics agency BASF SE. But in a profit warn- he disseminated via several
The data further darken the U.S. economy. The disconnect The ECB has long argued said Tuesday. Economists ing issued last month, that Twitter accounts, investigators
outlook for the German econ- presents the Federal Reserve that its four-year program of polled by The Wall Street company also highlighted a said Tuesday. He appears to
omy, which has struggled to with a tricky choice: focus bond purchases, known as Journal had expected a 0.3% slowdown in demand from have acted alone, they added. It
rebound from a contraction in more on the domestic econ- quantitative easing, was the gain. It was the second con- Chinese customers. isn’t unusual in Germany for
the third quarter of last year. omy and keep nudging interest primary driver of the euro- secutive monthly fall in Ger- With economic growth hav- those who have turned 20 to
The possibility of a recession rates higher to combat infla- zone’s economic recovery. man industrial output and ing hit a decade high in 2017 still be in high school.
in the continent’s powerhouse tionary concerns, or pay Having ended those purchases comes after data Monday as exports surged, eurozone The man, who lives with his
bodes ill for the wider euro- greater attention to stresses in December, that boast may showed a drop in new manu- manufacturers started 2018 in parents in the western German
zone, which has been hit re- abroad and in markets, and return to haunt policy makers. facturing orders. a more upbeat mood than at state of Hesse, targeted people
cently by violent protests in hold rates steady—or even “The impact of QE is some- A technical recession con- any time since they were first whose public comments had
France and a tense battle over nudge them lower. thing we all underestimate,” sists of two consecutive quar- surveyed in 1985. They ended angered him, said Georg Unge-
Italy’s government debt. Europe’s slowdown is a said David Folkerts-Landau, ters of declining economic the year in a quite different fuk, a spokesman for the
“Today’s industrial produc- similar headache for the Euro- chief economist at Deutsche output. Germany’s economy mood, with the European Frankfurt prosecutor’s office
tion data has clearly increased pean Central Bank, which is Bank. “My instinct is to say we shrank in the third quarter of Commission’s economic senti- unit that fights cyber crime.
the risk of a technical reces- trying to wean the 19-nation are in a much more precarious 2018 for the first time since ment indicator—an aggregate The hacker was detained Sun-
sion in Germany in the second eurozone economy off years of position in Europe than we 2015, dented by weaker ex- measure of consumer and day but released again a day

.
half of 2018,” said Carsten monetary stimulus and ease thought.” ports and a decline in auto business confidence—falling to later as he presented no flight

Brzeski, an economist at ING toward higher interest rates.
in Frankfurt. Officials must judge whether a
In recent months, signs of a recent run of disappointing
slowdown in Europe and China data signals that the economy on swings, fell 1.9% in November
us l,
Production in Germany’s
key industrial sector, adjusted
for inflation and seasonal
WORLD WATCH
production. Italy’s economy
also contracted in the third
quarter, and is also at risk of
ending the year in recession.
ly
its lowest point since January risk, Mr. Ungefuk said.
2017. The capture of the suspect
—William Boston puts to rest concerns that a for-
contributed to this article. eign intelligence service could
have been behind the data theft
after a string of cyberattacks in
recent years that authorities
blamed at times on Russian or

Chinese cyber thieves.

The young man, who has
al a
e
not been publicly named, ac-
quired the technical know-how
needed for hacking on his
ci on

own, investigators said.

German Interior Minister
Horst Seehofer said the web
was never 100% safe.
The latest data leak—which
er rs

authorities described as re-

markable because it targeted
mostly people in the public
sphere—prompted Mr. See-
m e

hofer to announce new cyber-

security legislation to
strengthen the protection of
m rp

citizens, companies and the

state from such hacks.
The law, which the ministry
ANTHONY WALLACE/AGENCE FRANCE-PRESSE/GETTY IMAGES

wants to draft in the first half

of the year, will include an
co Fo

early-warning system to pre-

vent the spread of stolen data
online and a labeling system
to inform consumers of the
safety of products used to go
online or store data, Mr. See-
hofer told reporters.
Most of the data posted on-
line in this case were basic
contact details. But in 50 to 60
incidents more sensitive
data—including bank-account
details—were published on-
OVERBOARD: The Vietnamese registered fuel tanker Aulac Fortune caught fire while being refueled off the coast of Hong Kong on Tuesday, triggering an explosion felt line, authorities said.
n-

miles away, according to maritime officials. Most of the 25 crew fell into the sea or jumped, one official said. At least one sailor was killed and two were missing. Data from Chancellor An-
gela Merkel and President
ECONOMY had previously expected most evidence that the global econ- CANADA estimate of C$1.165 billion. Frank-Walter Steinmeier ap-
major economies to slow, but omy is slowing and that the The November report came a peared online, but no sensitive
World Bank Expects Trade Deficit
no

now expects that slowdown to
Cooling Global Growth be somewhat more significant.
The bank now forecasts global
The World Bank cut its fore- growth of 2.9% in 2019, and
cast for global growth in 2019 growth of 3% in 2018; in June,
and 2020, citing worsening fac- it said it expected the global
tors, from trade tensions to fi- economy would expand by 3.1%
nancial-market instability to last year.
currency challenges in a num- “When you think about the
ber of emerging markets. engines of the global economy,
The bank lowered its semi- they’re all going to lose mo-
annual estimate of the global mentum,” said Ayhan Kose, the
growth rate by 0.1 percentage bank economist who leads the
point in both years, with cuts forecasts. The World Bank sees
coming to the outlook for both growth slowing in the U.S., the
advanced economies and eurozone and China.
emerging markets. The bank The bank’s forecasts add to
U.S. will be pulled lower by the
international downdraft. The
American economy had a ro-
bust 2018—indeed, the bank
marked up its estimate of U.S.
growth last year to 2.9% from a
June estimate of 2.7%.
The bank expects the U.S. to
slow to 2.5% in 2019. By 2020,
growth will be 1.7%, the bank
estimates, a 0.3 percentage
point cut from its June fore-
cast. The bank sees China’s
economy slowing to 6.2%
growth in 2019 and 2020,
down from 6.5% last year.
—Josh Zumbrun
Widened in November
Canada’s trade deficit more
than doubled in November on a
sharp drop in crude oil exports,
as low oil prices weighed on the
energy sector.
Canada posted a November
deficit of 2.06 billion Canadian
dollars (US$1.55 billion), Statistics
Canada said. Expectations were
for a C$2.15 billion deficit, the
Royal Bank of Canada said.
The October data were re-
vised to show a deficit of C$851
million, compared with a previous
day before the next interest-rate
decision. Many economists ex-
pect the central bank will hold its
key rate at 1.75%, as it gauges
the impacts of lower global oil
prices and financial market vola-
tility on the Canadian economy.
Canada’s statistics agency has
warned that next month’s trade
report could be affected by the
partial government shutdown in
the U.S. Under a longstanding
agreement between the U.S. and
Canada, each country uses the
other’s import data to help pro-
duce its export statistics.
—Kim Mackrael
information was released and
government networks weren’t
affected, authorities said.
The only political party in
the Bundestag, the lower
house of the German parlia-
ment, whose members weren’t
hacked was the anti-immi-
grant Alternative for Germany,
authorities have said. But in-
vestigators said they found no
material in the man’s home to
suggest political motivation.
The hacker is unlikely to be
sentenced to much, if any,
prison time as adults under 21
are tried in juvenile courts.

FROM PAGE ONE

tion and Sears would have be-
Chairman gun to liquidate.
The company’s board and its
creditors prefer a plan that
Will Bid would close all of the remaining
Sears and sister Kmart stores
his hedge fund, ESL Invest-
ments, more than others.
To address some of those
concerns, ESL has increased its
$4.4 billion offer by several
hundred million dollars in cash
lawsuits related to their over-
sight of the retailer before its
bankruptcy filing.
A spokesman for ESL said
the hedge fund is working to
make promised changes to its
bankruptcy lawyer Ray Schrock
said in U.S. Bankruptcy Court
in White Plains, N.Y., on Tues-
day.
Sears filed for bankruptcy
protection in October with
the auction.
The unsecured creditors
have been at odds with ESL
since early in the bankruptcy
process. Abid Qureshi, an attor-
ney representing the commit-

For Sears and raise as much cash as possi-

Continued from Page One
wind down the business, but
the hedge fund manager-
turned-CEO wants to keep 425
stores open.
On Tuesday, after Mr.
Lampert promised to revise his
proposal,
WSJ PRO Sears lawyer
BANKRUPTCY told the judge
overseeing the
bankruptcy case that the com-
pany would move forward with
the planned auction. If Sears
had rejected Mr. Lampert’s bid,
there would have been no auc-
ble by selling off whatever Ken-
more appliances, DieHard bat-
teries, Wrangler jeans and other
inventory is left on the shelves.
The proceeds would pay off
some of the more than $5 bil-
lion in Sears debt.
Mr. Lampert, who oversaw
Sears’s collapse into bank-
ruptcy, has offered an alterna-
a tive bid that would allow him
to keep control of the business
and most of its remaining
stores open. He has made his
pitch as a way to save about
50,000 jobs. But the board and
creditors have objected saying
the plan provided little cash
and benefited Mr. Lampert and
and assumed liabilities, one
person familiar with the matter
said. The additional funding is
being financed by the same
banks backing ESL’s original
bid, this person said.
ESL has also promised to
provide a $120 million deposit
to participate in the auction.
Whether ESL is named the win-
ner of the auction next week or
not, the deposit wouldn’t be re-
turned in full to the hedge
fund, the Sears lawyer said
Tuesday. Instead, the portion
will be held by the estate.
Sears’s independent direc-
tors rejected Mr. Lampert’s
initial offer because it released
him and others from future
bid so they can be evaluated
ahead of next week’s auction.
“Our proposal provides sub-
stantially more value to stake-
holders than would be the case
in liquidation and is the only
option to save an iconic Ameri-
can retailer and up to 50,000
jobs,” the spokesman said. The
auction is set for Monday at
the New York offices of Sears’s
bankruptcy lawyers, where
Abacus Advisors, the retailer’s
handpicked liquidator, will face
off with Mr. Lampert, who has
made a $4.4 billion bid.
“We are moving forward,
and looking forward to an auc-
tion on Jan. 14, and very hope-
ful for a great result,” Sears
plans to close more than 140
stores and attempt to restruc-
ture its heavy debt. Mr.
Lampert stepped down as
Sears chief executive at the
time, but remains the com-
pany’s chairman, largest share-
holder and creditor.
The Sears board also has
balked at the so-called credit
bid that was part of Mr.
Lampert’s offer. A portion—
about $1.3 billion—of the $4.4
billion offer is in the form of
forgiveness of a number of
real-estate-backed loans that
ESL made to Sears.
The question of ESL’s ability
to forgive debt in exchange for
ownership will be decided at
tee of unsecured creditors, said
in an earlier court hearing the
committee believes there are
claims against the hedge fund
stemming from prior transac-
tions, a concern he raised again
on Tuesday.
ESL, in court papers and
statements, has denied any
wrongdoing that may have led
Sears down the path of bank-
ruptcy protection.
Sears, which merged with ri-
val Kmart in 2005, has strug-
gled through seven years of
losses and hundreds of store
closures under Mr. Lampert.
Read more from WSJ Pro
Bankruptcy at wsj.com/pro/
bankruptcy
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, January 9, 2019 | A9

WORLD NEWS

London’s
Heathrow
Greece Sees Pot of Gold in Cannabis
BY NEKTARIA STAMOULI

Is Halted ATHENS—Christa Pappa

By Drone
BY ROBERT WALL
AND STU WOO
LONDON—Heathrow Air-
port, one of the world’s busi-
est aviation hubs, halted de-
parting flights late Tuesday
after a nearby drone sighting,
the second closing of a London
airport due to drones in less
than three weeks.
The airport said it had re-
sponded to a drone sighting
alongside London’s Metropoli-
tan police. Police said they had
quit her job as a research bi-
ologist last year to concen-
trate on her real career ambi-
tion: selling marijuana.
When Ms. Pappa and her
husband opened a shop in
Athens in 2002, offering
clothes and other products
made of hemp, they soon
found themselves facing crimi-
nal charges for drug traffick-
ing. They were acquitted after
fighting the charges in Greek
courts for nearly a decade.
“We wanted to keep the
business open at any cost,”
Ms. Pappa said. “It nearly de-
stroyed us financially and psy-
chologically, but we saw what

ANNA PANTELIA FOR THE WALL STREET JOURNAL

received reports of a drone in
the vicinity of the airport at
just after 5 p.m. local time.
A little more than an hour
later, a representative for the
airport said flights had re-
sumed. Arriving flights
weren’t halted, but Eurocon-
trol, Europe’s air-traffic man-
agement agency, said incoming
flights were landing at a re-
duced rate.
Local police said they were
engaged in a manhunt around
Heathrow to find the opera-
tors of the drone that was
seen by officers.
The halt comes less than
three weeks after several
drone sightings at nearby Gat-
was coming and wanted to be
part of it.”
What is coming, in her view
and that of more entrepreneurs
and investors, is a boom in the
growing and selling of legal can-
nabis in Europe. Greece could
be one of the biggest winners.
Greece, which is slowly
emerging from a decadelong
financial crisis, just issued the
first two licenses to private
companies to grow cannabis Christa Pappa checks the quality of industrial cannabis at the shop she and her husband, Argyris Mountzouris, operate in Athens.
and is set to grant 12 more
this month. juana restrictions in three companies, mainly from Can- than 35 countries and it’s very couple’s friends and relatives
Greece legalized cannabis for more states during the mid- ada and Israel, are looking to clear to me that there will be turned their backs on them,
medical use in 2017 and lifted a term elections. invest between €10 million and more than 60 in the next they said. Her father-in-law
ban on growing and producing Southern European coun- €100 million each in the sector. 24-36 months,” he said. sold his house to help them.
it in 2018. Medical-cannabis use tries with plentiful sunshine Canadian company Tilray, Cyprus is also planning to Today, however, Greece is
is currently allowed in nine and mild winters, such as which in 2016 became the first grant its first licenses soon. in dire need of investment to

.
wick Airport closed its runway countries in Europe, but more Greece, Portugal and Cyprus, company to export cannabis “Perceptions are changing as help it recover from its deep

off-and-on for three days, dis-
rupting tens of thousands of
passengers during the busy
holiday travel period.
While short, the stoppage
triggered a forceful response
from the government. Chris
Grayling, the U.K.’s transport
are considering following suit.
“It’s the European Califor-
nia,” said James Ickes, manag-
ing partner for Devcann, an
Ohio-based company that is
investing €12 million ($13.7
on rope. Affordable labor and
million) to cultivate, process
and export medical and in-
us l,
make an ideal place for can-
nabis cultivation and are set
to become the center of the le-
gal cannabis industry in Eu-
easy access to other European
countries also make the loca-
tion ideal. Investors and busi-
products to Europe from
Southern Europe is set
to become the center
of the Continent’s
ly
the sector booms,” said Andreas
Gennimatas, partner in two
companies about to start doing
business in Greece. “It’s like the
internet in the late ’90s.”
Much of Greek society is tra-
ditionally conservative and sus-
picious of cannabis. Ms. Pappa
economic woes, and criticism
of the new wave of cannabis
investment has been muted.
“The financial recession has
made the region move in this
direction,” said Argyris
Mountzouris, Ms. Pappa’s hus-
band. “We are a society in cri-

secretary, said the government
was in contact with Heathrow
authorities and was coordinat-
ing with the country’s defense
minister.
dustrial cannabis in Greece.
Investment in the cannabis
al a
e
industry has taken off in North
America thanks to the recent
legalization of cannabis in
ci on
nesses in the sector estimate
that Europe’s medical-canna-
bis market could exceed €50
billion in annual sales.
The first licenses will facili-
legal cannabis sector.
North America, started grow-
and her husband said they met
with widespread disapproval
for many years. Soon after their
shop opened, police raided it
and seized evidence, including
sis looking for new investment
models both for our agricul-
ture and for our industries—
and this plant can offer both.”
Odysseas, Ms. Pappa’s and

The boom in the sale of
small drones has led to in-
creasing incidents of such un-
manned aircraft coming close
to airports and commercial
Canada, with startups prolifer-
ating and shares of marijuana
companies soaring. The boom
is expected to spread to the
U.S. after the passage of the
er rs
tate an initial €185 million in
investment, which could reach
€1 billion in the next three
years, Greek government offi-
cials said. Nikos Karanikas,
ing its plants in central Portu-
gal last year.
“We see increasing global
demand,” Tilray CEO Brendan
Kennedy said. “When I joined
a pair of boxer shorts that were
for sale, to test for illegal
drugs. Even though the clothes
were made of industrial hemp
rather than marijuana contain-
Mr. Mountzouris’s 18-year-old
cat, is one of Greece’s first pa-
tients taking medical canna-
bis. He suffers from arthritis
and other age-related pains. A

airliners. Drones have been
spotted near flights at New
York LaGuardia and Dubai.
2018 Farm Bill in December
that legalizes industrial hemp,
and the loosening of mari-
m e
m rp
who is coordinating the gov- the sector in 2010, medical ing the psychoactive chemical daily dose of cannabis oil in his
ernment’s cannabis-industry cannabis was legal in 15 coun- THC, she was charged with food makes him more energetic
plan, said at least 10 more tries. Today there are more drug trafficking. Many of the and playful, the couple said.

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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A10 | Wednesday, January 9, 2019
Eating
Gold Can
Be Messy
Continued from Page One
fries at the Fairmont Dubai,
$75 for a gold cappuccino at
the Four Seasons, and $99 for
the Golden Beef Burger at
Maison Rouge, a high-end eat-
ery off the country’s main
drag, Sheikh Zayed Road.
Some say these upscale
treats are often messy let-
downs. “I had gold all over my
teeth and my mouth,” said
Roger Aleman-Prado, a 30-year-
old businessman, who tried a
$25 gold-laced cappuccino in
the Emirates Palace Hotel in
Abu Dhabi, the country’s capi-
tal. Its taste: “Nothing special.”
Emily Doong, 31, said she
tried the drink “to experience
U.A.E. opulence.” She and her
friends burst out laughing after
noticing they all had gold on
their lips after sipping their
drinks. “Honestly, it’s just a
Social
Media’s
New Allies
Continued from Page One
cluding Grover Norquist, the
founder and president of
Americans for Tax Reform,
which advocates for lower
taxes. Advisers on the left in-
clude the Southern Poverty
Law Center, a civil-rights
group.
For users frustrated by the
lack of clarity around how
these companies make deci-
sions, the added voices have
made matters even murkier.
Meetings between companies
and their unofficial advisers are
rarely publicized, and some out-
side groups and individuals have
to sign nondisclosure agree-
ments.
And in many cases, posts
that are hateful to one group
are considered fair game—or
even uncomfortable truths—to
others on the opposite end of
the spectrum, opening a new
arena to continue the political
and ideological fights that are
often a staple of social media.
When Twitter executives
struggled with whether to fol-
low other Silicon Valley compa-
nies and remove conspiracy the-
orist Alex Jones from the
platform in August, Mr. Dorsey
privately sought counsel from
Ali Akbar, a conservative politi-
cal activist, Mr. Akbar says.
Mr. Akbar advised Mr. Dorsey
against kicking off Mr. Jones,
despite pressure from users and
Twitter employees. Mr. Akbar
argued that Mr. Jones hadn’t vi-
olated any of the site’s rules—a
point Mr. Dorsey also made
when he explained the decision
in a Twitter post. Mr. Dorsey
didn’t disclose Mr. Akbar’s in-
volvement.
no
“It’s important that Jack
sought a right-of-center per-
spective which cannot be found
at Twitter,” Mr. Akbar says.
“Jack was brave.”
Twitter ultimately banned
Mr. Jones about a month later,
citing a violation of its abusive-
behavior policy.
Twitter spokesman Brandon
Borrman says the company and
its executives personally main-
tain many outside relationships
“to help us benefit from other
perspectives on the critical soci-
etal issues we deal with.” He
says outsiders “never override
our rules and no outside adviser
makes the ultimate decision or
dictates our actions,” and that
Twitter is working to be more
transparent on the outsiders in-
volved in its process.
On the Alex Jones decision,
Mr. Borrman says Mr. Dorsey
“did not and does not personally
make enforcement decisions, he
defers to the deep expertise of
the team.”
Building defenses
The reliance on outside opin-
ions goes along with other ini-
tiatives tech companies have
launched to build their defenses.
Companies have added complex
internal guidelines on what
kinds of posts should be banned
and hired thousands of new em-
ployees to review content.
YouTube has boosted its
“trusted flaggers” program—
groups that are asked by the
company to point out inappro-
priate content—from 10 to more
than 100 between 2017 and
2018. Twitter’s Trust and Safety
cappuccino with gold flakes on
it,” said Ms. Doong, a former
flight attendant who now lives
in Virginia. “Not worth it.”
Adding gold to food and
drinks isn’t about flavor. As
long as it is relatively pure, 23
or 24 karats, gold has no taste
and is nutritionally neutral, res-
taurants say. Instead, it’s about
giving visitors an extravagant
memento of their trip to one of
the world’s hubs of luxury
travel. Dubai and Abu Dhabi’s
restaurants and hotels say gold
menu items build their luxury
brand through their customers’
social-media accounts.
At his Nusr-et Steakhouse in
Dubai, Turkish chef Nusret
Gokce, known as Salt Bae,
served French soccer player
Franck Ribery the restaurant’s
new 24-karat steak—a $340, 14-
ounce sirloin, grilled and then
covered in a gold wrapping.
Mr. Ribery posted video of
Mr. Gokce’s performance cut-
ting the steak on Instagram on
Thursday, and received an
overwhelming response: more
than 2.7 million views, over
14,000 comments and a fire
hose of criticism that he
wasted both his money and a
on
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
Alex Jones of Infowars at a Senate hearing that featured Twitter CEO Jack Dorsey, top; above left, Joel Kaplan, a Facebook vice
president, with CEO Mark Zuckerberg; above right, Laura Loomer being escorted from a 2018 congressional hearing featuring Mr. Dorsey.
Council spans about 48 organi-
zations around the world.
Facebook says it now con-
sults with hundreds of organiza-
tions after it decided late last
year to seek more outside coun-
sel on issues such as hate
n-
speech and misinformation.
The tech companies have
found themselves in an impossi-
ble situation, given the billions
of posts that are generated each
month, says Klon Kitchen, who
manages tech policy for the con-
servative Heritage Foundation.
The foundation has recently
forged a relationship with Face-
book. Mr. Kitchen has advised
the company that these issues
are not likely to go away. “These
are problems you manage, not
problems you solve,” he says.
Peter Stern, who handles
Facebook’s outside engagement
efforts, says the company now
seeks advice from up to a dozen
outside groups on each policy
decision it makes on its plat-
form. He declined to say which
groups are consulted.
“If we change the policy,
we’re going to hear about it, so
we might as well involve them,”
he says. “We had been doing it,
but not in a systemized way.”
Adam Thierer, a senior re-
search fellow at the right-lean-
ing Mercatus Center at George
Mason University, says he used
to consult with Facebook and
other tech companies. The futil-
ity of trying to please all sides
hit home after he heard com-
plaints about a debate at You-
Tube over how much skin could
be seen in breast-feeding videos.
While some argued the vid-
eos had medical purposes, other
advisers wondered whether vid-
eos of shirtless men with large
mammaries should be permitted
as well. “I decided I don’t want
to be the person who decides on
whether man boobs are al-
lowed,” says Mr. Thierer.
Brian Amerige, a former
Facebook senior engineering
manager, resigned from the
company after seven years in
FROM PAGE ONE
Gold cappuccino at the Burj Al Arab hotel in Dubai is served with
a gold-covered chocolate marshmallow.
good steak. He responded to
critics with expletive-laced
Twitter posts, drawing a rebuke
and a fine from his German
soccer club, Bayern Munich.
“It was the chef’s idea to do
it in Dubai,” said Noyan Er-
somalz, a spokesman for Mr.
Gokce, of the gold steak. “It is a
place people want to do things
they can’t do in their own cit-
ies.” Mr. Ribery didn’t respond
to requests for comment
through Bayern Munich.
“It was absolutely excessive,
and it was absolutely Dubai,”
Rule Enforcement
YouTube has removed millions of videos for violating its community
guidelines after complaints from outside sources, while Twitter has
taken action on many accounts for violations of six of its rules.
YouTube videos removed for
violating community guidelines,
by source of first detection*
12 months ending Sept. 2018
Individual ‘trusted flaggers’
4,877,185
Users
1,751,146
Non-governmental
organization ‘trusted flaggers’
85,109
Government agencies
201
*Includes guidelines against spam, pornography, incitement to violence, harassment or hate
speech and excludes automated flagging and copyright issues †Accounts that violated the
same policy multiple times were counted once per policy ‡Includes depictions of graphic
violence, adult content and hateful imagery, or intimate photos or videos of someone
distributed without that person's consent
Sources: the companies
October, in part because he ob-
jected to the way it handled
which content is considered ob-
jectionable.
Mr. Amerige says he felt
Facebook was trying to avoid al-
lowing anything controversial
on the platform, and hampering
free speech in doing so. The
move to involve more outside
groups—conservative or lib-
eral—is in his opinion only mak-
ing things worse.
“What happens when you
have an undefinable principle
and you defer to other people?
It becomes a bunch of one-off-
decisions,” he says.
A Facebook spokeswoman
declined to comment.
While outside groups are
technically unpaid, the tech
companies contribute to some
of the organizations they are
seeking out. Alphabet Inc.’s
Google contributes to more than
200 third-party groups, includ-
ing the Heritage Foundation and
Americans for Tax Reform, ac-
cording to the company. Face-
* *** THE WALL STREET JOURNAL.
their teeth,” he said. In her two years living in
Edible gold may draw head-
lines, but it generally repels
Dubai, Rady Gianella said she
ate her way through the city’s
foodies. Samantha Wood, gold-laden menus. There was
founder of Foodiva.net, an in-
dependent restaurant blog in
the red velvet cake with gold
frosting at Dubai Mall, a gold-
Dubai, recalled trying a $125
gold-flecked pizza five years
ago that also featured lobster,
embossed éclair from Mall of
the Emirates, and a soft-serve
vanilla ice cream cone wrapped
truffles and asparagus—a dish in gold leaf. “I just had a goal
she said “wasn’t good at all.” to try as many as possible,”
“There’s a lot of style to it,” said Ms. Gianella, who moved
JUMEIRAH GROUP
she said of the city’s gold to Bulgaria last year.
dishes. “But it lacks in sub- Dubai’s landmark hotel, the
stance, so when you actually eat sail-shaped Burj al Arab, began
it, it doesn’t taste very good.” serving what it claims was the
New York City’s the Ains- original gold cappuccino in
worth restaurant sells 24-karat 1999. By 2017, competitors were
gold chicken wings. A London crowding into its market share,
said Ivo John Krmpotic, restau- bar, the Bletchley, serves a $130 and the hotel’s food and bever-
rant general manager of the gold cocktail called King George age director, Etienne Haro, or-
Four Seasons in the Dubai In- VI. Gold-flecked ice cream is dered up a new recipe, tasking
ternational Finance Centre, of available in Hong Kong. his culinary lab with finding a
the gold steak. But Dubai has built a tour- way to infuse the gold directly
Mr. Krmpotic started offer- ism industry around its history into the steamed milk. This
ing edible-gold offerings last and fascination with gold. A top cuts down on the mess, he says.
year, including a gold cappuc- attraction is the Gold Souk, a Served with a gold-flaked
cino, at the Four Seasons’ Pen- traditional Arab market in the chocolate marshmallow on the
rose Lounge, calling patrons’ city’s oldest section. side, it has been a hit, Mr. Haro
social-media posts “a fantastic Gold prices have rebounded said. “If you’re going to sell a
free way of marketing.” He said in recent weeks, trading at gold cappuccino, it needs to
he has received no complaints about $1,286 an ounce, but re- taste good, first and foremost,”
about the items being messy. main well below historical he said. “You don’t want to be
“I’m sure some ladies would highs reached in the years after the guy wrapping everything in
like to have some gold stuck in the financial crisis. gold and selling it.”
The groups, angry about out-
side interference on the plat-
form, urged Chief Executive
CLOCKWISE FROM TOP: TOM WILLIAMS/CONGRESSIONAL QUARTERLY/ZUMA PRESS; CHRIS WATTIE/REUTERS; ALAIN JOCARD/AGENCE FRANCE-PRESSE/GETTY IMAGES
Mark Zuckerberg to step down
as chairman of the board and
promote new directors. They
asked Facebook to remove exec-
utive Joel Kaplan, who has
helped lead outreach to conser-
vative organizations but also
.
sparked employee anger for at-
ly
tending the hearings of then-Su-
preme Court nominee Brett Ka-
vanaugh. Facebook told the
groups it would respond this
month, according to a spokes-
woman.
New outreach
At Twitter, Mr. Dorsey has
led outreach to a broad swath of
conservatives, including at a
dinner in Washington in June
and another in New York, ac-
cording to attendees.
Mr. Norquist of Americans
for Tax Reform says he used the
opportunity to advocate for two
“prominent conservatives” who
had been having trouble getting
antiabortion ads on the plat-
form. Mr. Norquist, who de-
clined to name the users, says
Mr. Dorsey asked his team to
help get the issue resolved.
Conservative Jewish activist
Laura Loomer says she didn’t
know until recently that outside
groups and individuals had pri-
vately lobbied Twitter execu-
tives to remove her from the
site in late November.
In an email to Ms. Loomer,
Twitter said she had violated its
hateful conduct policy for a
tweet calling Ilhan Omar, the
Muslim congresswoman from
tive activist and founder of the Minnesota, anti-Jewish and sup-
“Proud Boys,” which describes portive of Shariah law. In an in-
itself as “Western Chauvinist” terview, Ms. Loomer says she
and has recently been linked to was referring to a 2012 tweet
violence in New York and other from Ms. Omar in which the
states, has been banned by congresswoman wrote, “may Al-
Accounts that Twitter took Twitter, Facebook and Insta- lah awaken the people and help
enforcement action on, gram. It’s not clear if the com- them see the evil doings of Is-
by type of violation† panies consulted with the rael.”
First half of 2018 Southern Poverty Law Center on Among the groups that had
Hateful their decisions. complained to Twitter was the
conduct
The Southern Poverty Law Council on American-Islamic Re-
Abuse 285,393
Center designates the Proud lations, an advocacy organiza-
248,629 Boys, which Mr. McInnes left in tion. The council doesn’t often
November, as a hate group and step in to advocate against
Violent threats has written several online posts other users, says Executive Di-
42,951 about Mr. McInnes. In one post, rector Zahra Billoo, but did so in
Child sexual the group quoted Mr. McInnes the case of Ms. Loomer based
exploitation Sensitive
media‡ saying in a 2016 podcast and on her previous comments
21,878 Private
YouTube show, “We will kill you. about Muslims. In 2017, Ms.
information 28,900
That’s the Proud Boys in a nut- Loomer tweeted after a terror
12,140 shell. We will kill you.” attack in New York City, “Leave
Mr. McInnes is planning to it to Muslims to ruin everything.
sue the Southern Poverty Law People can’t even enjoy #Hal-
Center in the coming days for loween without those savages
its role in spreading what he f**king everything up for every-
THE WALL STREET JOURNAL. calls defamatory and false infor- one.”
mation about him, according to Other groups, including the
his attorney and a draft of the civil-rights organization Muslim
book and most other companies complaint. The suit plans to Advocates, voiced similar com-
don’t disclose their donations to mention the decisions by Face- plaints.
outside groups. book and Twitter to ban him. Twitter’s Mr. Borrman says
Executives see the outreach Ronald Coleman, Mr. Ms. Loomer’s suspension “was
to a cross-section of groups in McInnes’s attorney, says the the result of multiple, repeated
part as a form of political pro- SPLC has made “a very con- violations of the same rules, it
tection, to defend against the al- certed effort to destroy him.” was not about any one tweet.”
legation that they are biased A spokeswoman for the He added that many organiza-
against conservatives. Some of Southern Poverty Law Center tions and individuals contacted
the conservative groups tapped declined to comment. A spokes- Twitter about her account over
recently by tech platforms com- man for Twitter declined to the years.
plain that the companies defer comment. A spokeswoman for Ms. Loomer says she didn’t
too closely to the Southern Pov- Facebook says the center is “one post anything hateful or any-
erty Law Center. of many groups we work with thing in violation of Twitter’s
Many companies and other on our hate-related policies.” terms of service.
groups rely on the center’s list Several of the liberal-leaning Ms. Billoo of the Council on
of hate groups, counting nearly organizations that Facebook American-Islamic Relations wel-
1,000 across the U.S., according works with turned against the comes tech companies’ open-
to its website. company in December, sending ness to feedback. In 2016, her
Keegan Hankes, a senior re- a letter that criticized the com- own Facebook account was sus-
search analyst at the Southern pany for its role in “generating pended after she posted a photo
Poverty Law Center, says the bigotry and hatred towards vul- of a hate letter sent to a
group lobbies tech platforms to nerable communities and civil mosque. Ms. Billoo says she
remove content it considers rights organizations,” according asked dozens of contacts to
hate speech, but doesn’t always to a copy of the letter from email everyone they knew at
win the battle. Groups that say groups including the National Facebook, until someone inter-
it has too much sway are “over- Association for the Advance- nally took up the issue. “You
stating the influence that we ment of Colored People and the need to throw the kitchen sink
have,” he says. Interfaith Center on Corporate at it,” she says. “It’s a little like
Gavin McInnes, a conserva- Responsibility. politics.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Uninsured to Get More Health Care Ethics and
Voting Top
A city plan will give
about 600,000 people
access to primary care,
preventive services
BY MELANIE GRAYCE WEST
AND KATIE HONAN
New York City will spend
about $100 million a year to
expand health care to the
city’s uninsured and undocu-
mented residents by giving
them access to primary-care
physicians and other preven-
tive-care services, Mayor Bill
de Blasio announced Tuesday.
With about 600,000 unin-
sured people in the city, the
plan aims to ease the burden
on emergency rooms at munic-
ipal public hospitals. Some
have an option to enroll in the
established MetroPlus health
program, an insurance plan
that is a subsidiary of NYC
Health + Hospitals system,
which has 11 public hospitals
and 70 clinics citywide.
Those who aren’t eligible
for MetroPlus or can’t afford it
can sign up for the new NYC
Care plan. They will get a
membership card, access to
primary-care physicians, spe-
cialists, behavioral health care
and pharmacy services within
the city’s public-hospital sys-
Woman Struck and Killed by City Sanitation Truck in the Bronx
THEODORE PARISIENNE FOR THE WALL STREET JOURNAL
A New York City Department
of Sanitation truck fatally struck
a woman crossing a Bronx
street Tuesday morning and
then fled the scene, police said.
The New York Police Depart-
Cuomo’s MTA Plans Timed to Budget Season
BY PAUL BERGER
Gov. Andrew Cuomo wants
no
to overhaul the Metropolitan
Transportation Authority.
He has ramped up criticism
of the state-controlled MTA in
recent weeks, referring to it as
bloated, bureaucratic and re-
sistant to change.
“The governor has clearly
stated, as part of his first 100
days agenda, that restructuring
the MTA and restoring account-
ability must be a priority,” a
spokesman for Mr. Cuomo, Pat-
rick Muncie, said Tuesday. “We
expect to provide further de-
tails in the coming weeks.”
The timing isn’t a coinci-
dence. During the next few
months, Mr. Cuomo, a Demo-
Lawmakers Grill Murphy Aides on Handling of Assault Claim
BY KATE KING
AND JOSEPH DE AVILA
TRENTON, N.J.—New Jer-
sey lawmakers on Tuesday
grilled officials in Gov. Phil
Murphy’s campaign, transition
team and administration about
their handling of a sexual-as-
sault allegation against a state
employee, repeatedly circling
back to one question: Should
they have done more?
Lawmakers have convened a
special committee to investi-
gate how a former Murphy
campaign staffer was hired for
a state job after transition com-
mittee members learned he had
been accused of sexual assault.
Katie Brennan, a former
campaign volunteer who now
works as chief of staff for New
* * * *
GREATER NEW YORK
Gouverneur Health is part of the NYC Health + Hospitals system, which has 11 hospitals citywide.
tem. The program will be
available immediately to those
who already are eligible for
MetroPlus. Others can join in
the coming months, beginning
with Bronx residents.
The program is expected to
cost $100 million annually at
full scale from the city’s bud-
get. Services will be available to
New Yorkers on a sliding scale.
“We need to guarantee
health care for all New Yorkers.
No one should have to live in
on
us l,
al a
e
ci on
er rs
m e
m rp
co Fo
ment received a call about the
hit-and-run shortly after 6:30
a.m. Officers arrived on the
scene at Willis Avenue and East
138th street in Mott Haven to
find the woman unconscious
n-
crat, will sit down with legisla-
tors in Albany to hammer out a
state budget that could provide
billions of dollars for the MTA.
The authority faces a po-
tential $1 billion operating
deficit in the next few years. It
needs an estimated $40 billion
over the next decade just to
modernize the subway.
But any extra state funding
will likely be contingent on
significant changes to the way
the authority runs the region’s
commuter trains, subways,
buses, bridges and tunnels.
While the MTA could make
some fixes itself, the budget
process would be an appropri-
ate time to set up a commission
to look into a dramatic over-
haul, said Kathryn Wylde, whom
Jersey’s housing agency, ac-
cused Al Alvarez of sexually as-
saulting her in April 2017. Mr.
Alvarez, who has denied the al-
legation, served as chief of
staff for the New Jersey
Schools Development Authority
until he resigned in October.
Ms. Brennan reported her
accusation to police and Hud-
son County prosecutors, who
she said investigated and de-
clined to charge Mr. Alvarez.
She also told high-ranking
members of Mr. Murphy’s ad-
ministration, including his
chief counsel, before emailing
the governor in June and re-
questing a meeting to discuss
a “sensitive matter.”
On Tuesday, Jonathan
Berkon, an attorney for Mr.
Murphy and a partner at the
NY Wednesday, January 9, 2019 | A10A
ability to pay and has offered
a free or sliding-scale fee
structure to patients under a
longstanding program that is
Agenda
called NYC Health + Hospitals
Options.
The new program is de-
In Albany
signed to shift health care to a BY JIMMY VIELKIND
primary-care system, said city
officials, which is more effi- New York government-re-
cient and less costly than when form advocates say they are
patients delay medical care or more optimistic than ever for
visit an emergency room. the passage of state laws
Those who enroll in NYC tightening ethics enforcement,
Care will be given a primary- easing voting restrictions and
MARY ALTAFFER/ASSOCIATED PRESS
care physician and a number reining in campaign-finance
to call if there are problems, contributions with an all-Dem-
said Herminia Palacio, the ocratic government convening
city’s deputy mayor for Health this year in Albany.
and Human Services. State Sen. Liz Krueger, a
“We are spending a lot of Democrat from Manhattan,
money right now and not said her colleagues will roll out
spending it the way we want legislation on voting and cam-
to,” said Mr. de Blasio of the paign finance Wednesday as
way uninsured people have re- they kick off their formal ses-
ceived health care through the sion. Her party, which will take
fear,” said Mr. de Blasio during available MetroPlus program, city’s hospitals. “We are talk- control of that chamber for the
a news conference in the Bronx. said Mitchell Katz, the presi- ing about a vast amount of first time in a decade, is ex-
About half of the 600,000 dent and chief executive of cost we can avert.” cited to match measures that
New Yorkers without insur- NYC Health + Hospitals. How- According to the most re- have passed the Democrat-
ance are eligible, but don’t en- ever, the new program only cent fiscal year numbers avail- dominated Assembly for the
roll because they are young or will provide services within able from July through Sep- past several years, she said.
don’t want to incur the cost of New York City and not cover tember for NYC Health + Gov. Andrew Cuomo, a Dem-
insurance, according to city members when they travel out Hospitals, its deficit was $21.6 ocrat beginning his third term,
officials. The other half are of the five boroughs. million versus $571.1 million has voiced support for both vot-
said to be undocumented im- MetroPlus has about 513,000 compared with the same pe- ing and campaign-finance re-
migrants and ineligible for in- members. riod in 2018. For that same pe- form; last month he proposed a
surance. NYC Health + Hospitals sys- riod, 29% of emergency room complete ban on campaign con-
The NYC Care plan won’t be tem serves all people regard- visits were by patients who tributions from corporations.
a “lite” option of the already less of immigration status or were uninsured. “I think these are very excit-
.
ing times,” Evan Davis, a former
ly
counsel to the late Gov. Mario
Cuomo and a reform advocate,
said Tuesday at the Capitol.
Mr. Davis, Ms. Krueger and
Assemblyman Robert Carroll
held a news conference to ad-
vocate for a third ingredient of
the reform recipe—an amend-
ment to the New York state
Constitution that would create
an ethics-enforcement agency
to supplant the Joint Commis-
sion on Public Ethics.
Legislative leaders and Mr.
Cuomo established JCOPE in
2011 to oversee lobbying in the
state, as well as police ethics
infractions by executive and
legislative-branch employees.
The commission has been slow
to address recent Capitol scan-
dals that federal prosecutors
brought to light, including the
indictment and convictions of
Joseph Percoco, a confidant of
Mr. Cuomo; former Assembly
Speaker Sheldon Silver; and
former Senate Majority Leader
Dean Skelos, who reported to
federal prison this week.
The governor appointed six
of JCOPE’s 14 current commis-
with severe injuries. She was de- driver into custody and were operating fully with the police sioners. Both he and leaders of
clared dead at the scene. Au- questioning him on Tuesday af- investigation,” the spokeswoman each legislative chamber have
thorities were trying to identify ternoon, NYPD officials said. said, adding that the agency is the ability to secretly veto an
the woman, who didn’t have any The driver has been sus- conducting an independent investigation—a structure that
ID with her. pended, a sanitation department probe as well. legislators and Mr. Davis have
Police later took the truck spokeswoman said. “We are co- —Zolan Kanno-Youngs criticized. Under the Democrats’
proposal, a majority of the com-
missioners on the new entity
would be appointed by mem-
bers of the state’s court system,
and probes would be authorized
by simple majority votes. The
new commission would be sub-
the governor appointed to a cles entering the busiest parts major construction projects. ject to the same transparency
task force in the fall to research of Manhattan to fund the MTA. The structure leads to duplica- laws as other government enti-
the region’s transit crisis. But its report also sug- tion with multiple human re- ties, Mr. Davis said.
“The current system is not gested significantly restruc- sources, procurement and legal A spokeswoman for Mr.
working, and everything turing the authority so that departments and slows down Cuomo said he is open to
should be on the table in terms the state and city can trust decision-making as sister changing the structure of eth-
of what the options are,” said that the estimated $1 billion to agencies often weigh in on de- ics enforcement.
Ms. Wylde, president and CEO $1.5 billion in new revenues cisions, Ms. Wylde said. An ethics amendment
of the Partnership for New won’t be wasted. Assemblywoman Amy Pau- would have to be approved by
York City, a nonprofit repre- The group didn’t offer spe- lin, who served on the task legislators installed by two
senting business interests. cific overhaul recommenda- force, said that most of the successive elections and then
Clues to what a reimagined tions. But it did suggest op- MTA restructuring doesn’t re- ratified in a popular referen-
MTA might look like can be tions from consolidating and quire legislation. But she said dum.
found in a report produced in centralizing functions at the major changes, such as com- There isn’t yet consensus
December by Ms. Wylde’s task authority to breaking it up. bining the Long Island Rail legislation on voting reforms,
force. The group, comprised of Acting MTA Chairman Fer- Road and Metro-North Rail- some of which also would re-
representatives from the state, nando Ferrer served on the task road into one commuter rail quire constitutional amend-
Legislature and city, acknowl- force and endorsed the report. agency, would require greater ments, or on campaign-finance
edged the MTA desperately The MTA functions like a public discussion. reforms. Mr. Cuomo is ex-
needs a new funding source. It holding company for five —Katie Honan pected to include language in
recommended that the state in- transportation agencies as well and Jimmy Vielkind his executive budget proposal
stitute a congestion fee on vehi- as a subsidiary that oversees contributed to this article. later this month.
include details about the alle- hadn’t followed up with Mr. trust in him, so I thought, ba-
gation. The governor’s chief Murphy’s administration to sically, that the matter was
counsel, Matt Platkin, then ensure that Mr. Alvarez left proceeding,” Mr. Berkon said.
KEVIN COOK FOR THE WALL STREET JOURNAL
filled him in on Ms. Brennan’s state employment. Mr. Platkin is scheduled to
accusation, Mr. Berkon said. “This was a young woman speak before the committee
Mr. Berkon said he and Mr. who came and said, ‘I was next week. A senior adminis-
Platkin agreed that the seri- raped,’ ” said state Sen. Sandra tration official previously told
ousness of the allegation Cunningham, a Democrat. “To the Journal that Mr. Platkin
against Mr. Alvarez made his have it treated so lightly by referred Ms. Brennan’s accusa-
continued employment with so-called responsible people, tion to the state’s chief ethics
the state “untenable.” it’s just very offensive. Did you officer in March and recused
Mr. Berkon said he sched- feel that you had done every- himself from the matter be-
uled a phone call with Ms. thing that you could as a re- cause he knew both her and
Brennan, during which he told sponsible attorney in this mat- Mr. Alvarez.
Murphy lawyer Jonathan her Mr. Alvarez would be de- ter when you walked away?” Mr. Alvarez resigned in Oc-
Berkon testified in Trenton. parting his state job. Mr. Berkon said he saw his tober after he was contacted
Mr. Berkon said he was role as representing the cam- by a reporter for the Journal.
law firm Perkins Coie LLP, tes- “surprised and troubled” when paign, not the administration, Mr. Murphy said in October
tified that the governor in he learned from a Journal re- and considered Mr. Alvarez’s that while he believed his staff
June forwarded to him Ms. porter months later that Mr. departure to be a matter for had followed the rules and pro-
Brennan’s email. Alvarez was still working for the governor’s office to handle. cedures in responding to Ms.
The email, which The Wall the state. Several lawmakers “I had known Mr. Platkin Brennan’s allegation, Mr. Alva-
Street Journal has seen, didn’t asked Mr. Berkon why he for a while and had a great rez shouldn’t have been hired.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A10B | Wednesday, January 9, 2019 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

METRO MONEY | By Anne Kadet

The Secret to Success in This Program: Grit

If Ridmi did too,” she recalled. “When
Coe shows up I told them about Year Up,
late for her their jaws dropped.”
workplace- She now earns nearly six
training pro- figures working in trading
gram, Year Up operations for a French bank
New York, she gets a 15- and is studying statistics and
point penalty. If she swears, quantitative analysis at Bar-
uses her cellphone or doesn’t uch College. Her employer is
dress professionally, same reimbursing her for tuition.
thing. If her score falls below

N
zero, she is expelled from ot every Year Up New
the free program. York student sees such
Her reaction? She loves good results. A quar-
the discipline. ter drop out of the pro-
“A lot of us came from ad- gram—half of those because
verse circumstances, so we their score drops below zero,
didn’t really have a lot of the other half due to outside
structure,” says Ms. Coe, circumstances such as finan-
who lives in Queens and cial hardship. But the average
works as a nanny. “Year Up is graduate from last summer’s
almost like a parent teaching class is earning $42,000 a
us how to be accountable.” year, Mr. Galante said.
Ms. Coe, who is 24 years And 18 months after grad-
old and studying financial uation, Year Up students na-
operations, is midway tionwide—there are now 18
through the 12-month pro- campuses in cities across the
gram, which provides six U.S.—are earning, on aver-

ROBERT NEUBECKER
months of classroom instruc- age, 53% more than young
tion followed by a half-year adults in a control group, a
internship or apprenticeship result far exceeding the
with partners such as JP- norm for similar workforce-
Morgan Chase and Google. training programs.
The program—which The downside to Year Up’s
launched in Boston in 2000 super intense approach? It’s
and in New York City in super expensive. The $34,000
2006—focuses on training called “opportunity youth”— child-care job, taught himself coaches, teachers and peers. mentor. The staff of 62 in- per-student cost is only par-
students in fields such as fi- adults age 18 to 24 who IT basics from YouTube vid- Thanks to a recent feed- cludes social workers who tially covered by the $26,000
nancial services and soft- graduated high school but eos and volunteered to do back session, Mr. Huntley connect students with hous- fee corporate partners pay for

.
ware engineering, along with live in a low-income house- computer repairs for people said he is working on con- ing assistance, medical care each intern. The rest comes

ly
soft skills such as network- hold and typically are under- in his community. trolling his demeanor. “It’s and legal aid. from private donations.
ing, making presentations employed. “Year Up was my golden like a sad face,” he said, Mr. Huntley, who is fond Year Up New York aims to
and how to shake hands. It ticket, my last chance,” Mr. demonstrating the expres- of three-piece suits, said that cut costs by working with

J
can include course work in ust 27% of the 1,500
accounting, coding, cyberse- who apply each year are
curity and quality assurance. accepted. To win a slot,
Students sign a contract they must demonstrate what
on Huntley said. “At the inter- sion he adopts when things when he ripped his trousers, community colleges and of-
view, I gave it my all.” don’t go his way. “I’m learn- he helped himself to a new fering a shorter version of
The classroom instruction, ing to mask that.” pair from the program’s the program to train stu-
which runs from 8:30 a.m. to closet of donated dress wear. dents for lower-skill occupa-

B
agreeing to a detailed set of Year Up New York Executive 3:30 p.m. five days a week in ut the high-expecta- Sophilia Heard, 21, may tions, among other strate-
us l,

expectations covering every- Director John Galante refers
thing from their choice of to as grit: the ability to make
al a
e
footwear to what they can a commitment and see it
post on Facebook. “You also through.
earn points for meeting ex- Year Up New York IT stu-
ci on
a former Goldman Sachs of-
fice in the Financial District,
is intense, Mr. Huntley said.
He studies afternoons, eve-
nings and weekends. “I had
tions model is com-
bined with what Year
Up touts as “high support.”
Little is left to chance.
Students who meet their
represent a best-case sce- gies, Mr. Galante said.
nario. The youngest of four As the program scales up,
raised by a single mother in he added, it should become
Queens, Ms. Heard studied self-sustaining, with the in-
financial operations at Year ternship revenue covering

pectations,” says Ms. Coe, dent Thomas Huntley is typi-
who has a perfect record. cal. The 21-year-old Harlem
The nonprofit program, man said he was a class
which trains more than 360 clown in high school and got
students each year in New terrible grades. After gradu-
er rs
to cut the movies and delete
all my videogames,” he said.
The scrutiny is extreme.
Scores are posted every
week. Students regularly re-
contractual obligations earn
a $150-a-week stipend to
help pay for transportation
and meals.
Every student is assigned
Up New York and got an in- expenses.
ternship at UBS Group, the “We can serve thousands,”
Swiss-based bank. he said, “rather than hun-
“The others at the office dreds.”
came from the best schools

York City, focuses on so- ating, however, he took a ceive formal input from a coach and professional in the country and assumed I anne.kadet@wsj.com

GREATER NEW YORK WATCH

Exam Underrates
m e

NEW YORK STATE

m rp

Former Lawmaker
Begins Prison Term
Girls, Study Says
Former New York state Sen- BY LESLIE BRODY hurting their scores.
co Fo

ate leader Dean Skelos has be- Called “Fairness to Gifted

gun serving his four-year, three- New York City’s eight spe- Girls: Admissions to New York
month prison term for a cialized public high schools City’s Elite Public High
corruption conviction. have long accepted fewer girls Schools,” the study contains
Mr. Skelos, a 70-year-old Re- than boys. A study drawing new several caveats. It is based on
publican, reported to the federal attention to that disparity finds city data for only one cohort—
prison at Otisville, N.Y., on Tues- the entrance exam underesti- students entering high school in
day. The prison has a medium- mates girls’ academic success. 2014—and looked only at fresh-
security facility and an adjacent As debate swirls around man-year grades, not long-term
minimum-security satellite camp. Mayor Bill de Blasio’s call to outcomes. Peer-reviewed and
JEFFERSON SIEGEL FOR THE WALL STREET JOURNAL

His son, Adam, reported to scrap the single exam that de- accepted last month for publi-
the federal prison in Danbury, termines entry, a study from cation in the Journal of Women
Conn., to begin serving his four- Hunter College’s Gender Equity and Minorities in Science and
year sentence. Project says the test screens out Engineering, the study was first
n-

Mr. Skelos and his son were many girls who would thrive at reported by The Hechinger Re-
convicted in July on charges of these schools, which are largely port, an education news outlet.
extortion, wire fraud and bribery. geared toward the sciences. Mr. Taylor’s study—which
—Associated Press Girls received only 44% of the examined nearly 28,000 test-
no

offers for the current school takers, a fraction of whom

CRIME year to these coveted institu- were accepted to the city’s
tions, even though they made elite high schools—countered
Man Pleads Guilty up 51% of the test-takers. the possibility that girls might
In Slaying at Party So far, discussion has cen-
Skaters enjoyed the rink Tuesday at Bryant Park in Manhattan, as temperatures hit the mid-40s. tered mostly on whether the
A man has pleaded guilty for test is an unfair barrier to
his role in the beating and stab- CONNECTICUT commit $3.5 million while Liberty asking a U.S. appeals court to black and Hispanic applicants,
Girls with lower
bing death of a party guest at a Mutual Insurance will provide $7 hold the college liable. who get few seats at these admissions-test
luxury Manhattan apartment. Insurers to Help Pay million. Lawyer Patrick Whalen ar- prestigious schools.
scores earned grades
District Attorney Cyrus R. For Foundation Costs Last month, Messrs. Malloy gued Tuesday that Ramapo Col- The study’s author, Jona-
Vance Jr. said Tuesday that Law- and Jepsen announced Hartford- lege of New Jersey created a than Taylor, found that on av- as high as male peers.
rence Dilione of Jersey City, N.J., Two insurance companies have based Travelers Companies Inc. dangerous environment by failing erage, freshman girls at these
has pleaded guilty to manslaugh- agreed to provide a total of $10.5 entered a similar memorandum to monitor fraternities and un- schools earned course grades
ter. million to help Connecticut home- of understanding with the state derage drinking. equal to boys who scored
Joseph Comunale of Stam- owners cover the cost of repairing to provide $5 million to help af- Mr. Whalen said two people higher on the Specialized High be enrolling in easier courses.
ford, Conn., died in November and replacing crumbling founda- fected current or past Travelers charged in the 2014 attack School Admissions Test. Among ninth-graders at Stuy-
2016 at an Upper East Side tions, officials said Tuesday. policyholders. pleaded guilty to sex-assault Across the eight schools, for vesant High School, for exam-
apartment. Mr. Comunale’s body The state has reached sepa- —Associated Press charges and were sentenced to freshman boys with grade- ple, girls on average earned
was shoved out of a window and rate agreements with The Hart- about five years in prison. Three point averages of 95 or above, better grades than boys in
stuffed in a car trunk. It was ford and Liberty Mutual Insur- NEW JERSEY others entered pretrial diversion for example, the average admis- each of the 10 science and
taken to Oceanport, N.J., where it ance to financially assist current programs. sions test score was 565 out of technology courses analyzed,
was torched and buried in a and former policyholders who file Assault Victim Seeks The victim is now suing the 800 points. The average score including biology and physics.
makeshift grave. claims and receive grants To Hold College Liable fraternity, college officials and the for girls in that highflying GPA Mr. de Blasio wants Albany
Mr. Dilione will be sentenced through the state’s new Connect- individuals involved. group was 549. In other words, lawmakers to scrap the entry
on Feb. 6. Another defendant, icut Foundation Solutions Indem- A lawyer for a female New The New Jersey Attorney girls with lower admissions- exam and start admitting the
James Rackover, was sentenced nity Co., announced Gov. Dannel Jersey college student who was General’s Office said the state-af- test scores earned grades as top performers in each middle
last month to 29 years to life in Malloy and Attorney General sexually assaulted at a fraternity filiated school should be immune high as their male peers. That school citywide, using a mix of
prison. George Jepsen. party and then driven across from damages. pattern was consistent for stu- course grades and state tests.
—Associated Press The Hartford has agreed to campus and assaulted again is —Associated Press dents with lower GPAs, too. Supporters of the entrance
Furthermore, girls outnum- test argue it is the most objec-
bered boys earning GPAs of 95 tive way to find talent.

Weinstein Trial Set to Begin in Early May or higher. Meanwhile, in the

BY CORINNE RAMEY two separate women.
In December, a state judge
Former Hollywood producer declined to dismiss these
Harvey Weinstein is scheduled charges, allowing the Manhat-
to go to trial on sex-crime tan district attorney’s case to
charges on May 6 in state move toward trial.
court in Manhattan, court fil- Mr. Weinstein, who is free
ings show. on bail, has pleaded not guilty
Mr. Weinstein, who was ar- and denied allegations of non-
rested in May, faces charges of consensual sex.
rape and other sex crimes re- In the filings, made in a re-
lated to alleged incidents with lated civil case, Benjamin Braf-
man, a lawyer for Mr. Wein-
stein, said the trial is expected
to last six weeks from jury se-
lection through verdict.
Also in the filing, Mr. Braf-
man said the district attorney’s
office is expected to ask Justice
James Burke’s permission to
admit alleged evidence of prior
uncharged acts. If the judge ap-
proves the request, called a
Molineux motion in New York,
women who claim they were
assaulted by Mr. Weinstein but
aren’t part of the charged con-
duct could testify.
A spokesman for the Man-
hattan district attorney’s of-
fice declined to comment. A
spokesman for Mr. Weinstein
didn’t comment.
Mr. Weinstein is scheduled
to appear in court March 7 for
a pretrial hearing.
lowest achievement category,
or students with GPAs below
75, boys outnumbered girls by
Vincent Galasso, a former
principal of Bronx High School
of Science and a backer of the
admissions test, said girls’ rela-
more than six to one. tively strong first-year grades
“The test consistently un- likely stemmed from their ma-
derpredicts how girls will do turity and organizational skills.
in high school,” Mr. Taylor “I would venture to guess the
said. “To that extent, it’s a bi- girls worked harder and applied
ased test.” themselves more,” he said.
Mr. Taylor cited other re- A spokesman for Pearson,
searchers in suggesting girls the test vendor, said it “works
may be less willing than boys diligently with our state and
to guess on multiple-choice district partners to create fair,
questions when they don’t valid, and reliable assessments
know the answer, potentially aligned to their needs.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, January 9, 2019 | A11

LIFE&ARTS
WELLNESS

What’s the Rush? The Power of Slow Mornings

To relieve stress and regain control, some get up before dawn to meditate, read, exercise or do nothing at all
BY ELLEN BYRON
IN REACTION TO hectic, over-
scheduled lives burdened by 24-7
technology, a counter movement
is emerging: the slow morning.
Proponents spend time—some-
times hours—doing very little in
the morning. Rising early, they
relish beginning their day in quiet
solitude, free of interruptions and
deadlines. They say it provides a
foundation for productivity, calm
and focus that lasts the rest of
the day. “I wake up early so I can
do nothing,” says Leslie Harris, a
marketing executive in New York.
Some people meditate, plunge
into cold water, slowly jump on
trampolines or have no plan at all
except for avoiding a rush.
Slow-morning enthusiasts
range from business leaders to
artists to stay-at-home parents.
They all say it’s a way to manage
stress and find control in anxious,
always-connected times.
“Slowness is earning a new ap-
preciation,” says Gabi Lieberman,
a director of trends for market-re-
search firm Mintel. The company,
which advises clients on con-
sumer behavior and trends, has
noted consumers’ desire to “slow
it all down” since 2011, but re-
cently detected a new attitude to-
ward the behavior. “We’re not
apologizing anymore about it,”
Ms. Lieberman says. “It’s being
celebrated.”
The slowing-down trend is
countering another one: consum-
ers’ need for speed, convenience
and around-the-clock service,
Mintel says. People often exhibit
both behaviors, since those who
embrace a fast-paced lifestyle
need a break from it even more.
“The more we try to save time,
the more we realize how impor-
tant it is to savor it,” Ms. Lieber-
man says.
To be sure, many Americans
still view their pre-workday rou-
tine as a sprint, and consumer
products are mostly marketed
that way. Showers are faster with
“3-in-1” soaps that wash hair, face
and body; coffee pods shorten the
effort and wait for caffeine and
there are more and more options
for breakfast on the go.
Geir Berthelsen, founder of the
World Institute of Slowness, a
think tank in Norway, says start-
ing the day with intentional slow-
ness helps spark creative think-
ing. “Business leaders need to
take time to forget about time,
and that helps them be creative
when they arrive at work,” he
says. “That’s the goal of doing
this before going into the work-
place.” Mr. Berthelsen advises
spending at least 20 minutes be-
fore the workday doing nothing.
“If you don’t do that, if you
wake up stressed that you’re late
to work, then the whole day
is really destroyed in a way,”
he says.
More than 60% of consumers
say they look at their phone
within 15 minutes of waking and
check their phones about 52 times
a day, according to Deloitte.
The peak hour for Calm’s Daily
Calm meditation practice—its
most popular—is 6 a.m. to 7 a.m.,
says Michael Acton Smith, Calm’s
co-chief executive. “I think it is
part of a wider movement in
Western society around health
and wellness and being more con-
scious of how we live—eating bet-
ter, sleeping better and starting
our days better,” he says.
Here’s how four individuals
spend their slow mornings.

Matt D’Amour’s
wake-up time:
To keep his mornings serene, Matt D’Amour prepares for

6:00 them. In a ritual he calls “unpack, repack” Mr. D’Amour, a director

of sales and marketing in Madison, Wis., spends an hour or

.
more after work readying the following day’s clothes, breakfast

ly
and lunch. “I prepare every single night so that I can start the day with as much ease
and grace as possible,” says Mr. D’Amour, 37.
He wakes up around 6 a.m. and drinks water with the lemon juice he presses every
on three days. Then he does a 20-minute “gratitude meditation,” which can range from being
grateful for being able to get out of bed that morning to having food in the refrigerator.
A glass of celery juice, which Mr. D’Amour also makes, follows.
Then he pursues what he calls “cold-water therapy,” which can include a plunge in the
lake near his apartment or, if the lake is frozen, a cold shower. He tries to stay in cold
us l,

water for one or two minutes, focusing on breathing exercises rather than how he feels.
“You build up a tolerance,” he says.
al a
e
Breathing through the discomfort of feeling cold boosts his energy and improves his skin
tone and stress management all day, Mr. D’Amour says. “There are moments when I’m in a
business setting and I need to make decisions, and I can revert back to breathing through
ci on

uncomfortable situations,” he says. “You breathe into it as opposed to trying to escape.”

Typically three to five times a week Mr. D’Amour heads to the gym by about 7:30 a.m.
for an hourlong workout. He follows that with breakfast, usually vegetables and eggs,
which he has prepared the night before.
Mr. D’Amour aims to start work around 9:30. “And then it’s game time,” he says.
er rs

Monica
Dangerfield’s Before Monica Dangerfield starts her day job, she works on her
wake-up time: hobbies, such as selling essential oils. “They’re not money-makers
m e

6:00
yet,” she says. “But it’s work that I truly enjoy.”
She wakes at 6 a.m. and spends time at her computer in the
kitchen, communicating with customers and posting on social me-
m rp

dia. She also jots down goals for the day. “I find those early-morn-
ing hours are so peaceful and calm and my attention isn’t being pulled in a million direc-
tions,” says Ms. Dangerfield, who lives in Richmond, Va., and works as a child-
development specialist. “This is time that I give to myself, it is my self-care, doing
something that I really enjoy.”
co Fo

To maximize her early-morning hours, Ms. Dangerfield, 39, usually makes oatmeal the
night before and heats it up for breakfast. She does the same with coffee, which she
makes every few days and keeps in a pot in the refrigerator. She typically works until
about 7 a.m., when she hears her 9-year-old or 5-year-old upstairs. “I take a deep breath
when those feet come down the steps and say ‘OK, my time is up,’ ” she says.
To wake up early, Ms. Dangerfield adjusted her nighttime routine, which starts after
her children go to bed. Realizing that she was unproductive on her computer in the eve-
ning, Ms. Dangerfield now spends time cleaning the kitchen or walking on her treadmill
for 30 minutes before getting into bed to read. “I leave my phone downstairs so I don’t
see it or hear it,” she says. “Then I’m usually lights out by 10 or so.”
So far, Ms. Dangerfield has stuck to her ritual for nine months. On days when she
can’t have an hour or two of solitude, her energy feels low and her stress level is high. “I
feel like I’m too rushed,” she says.
n-
no

Genevieve Aronson’s
CLOCKWISE FROM TOP LEFT: JULIA RENDLEMAN FOR THE WALL STREET JOURNAL; LAUREN JUSTICE FOR THE WALL STREET JOURNAL; CAITLIN OCHS FOR THE WALL STREET JOURNAL (2)

wake-up time: Genevieve Aronson, 38, gets up at 2 a.m. or 3 a.m. on

2 3:00
Tuesdays, Wednesdays and Thursdays. The communica-
or tions executive relishes the unhurried, uninterrupted hours
her morning routine allows. “I have that freedom to do
what I need to do at my own pace,” she says. “I know
some people think I’m crazy, but it works for me.”
Ms. Aronson, who lives in Westchester County, N.Y., started this schedule a year ago
when she had trouble staying asleep with a long to-do list on her mind. “I thought, let me
just bang out two things and I’ll go to bed,” she says. “I never went to bed.”
After turning off her alarm, Ms. Aronson heads downstairs, opens her laptop, and digs
into her work email. “Anything I can do to get myself ahead, I will do then,” she says, in-
cluding preparing presentations and catching up on work-related reading. “I feel like I do
my best work at this time because it’s quiet and I can put 100% of my attention to it.”
When she finds a good stopping point, she exercises with a half-hour workout video,
loads some laundry in the washing machine and does other light housework.
The activities haven’t disturbed her sleeping husband or daughter, who is in first
grade. “It’s not like I’m vacuuming,” she says. Around 6 a.m., Ms. Aronson starts making
her daughter’s lunch; by 6:30 the family is awake.
Ms. Aronson says she is motivated to wake up so early because of how much these
hours energize her. She typically goes to bed at 10:30 p.m. and sleeps until 6:30 or 7 a.m.
on weekends, Mondays and Fridays. “This probably isn’t long-term,” she says. “No one is
making me do it, but I enjoy it because I have time for myself and I’m doing things on
my own terms.”
Chris Danuser’s
wake-up time: Chris Danuser doesn’t consider himself a morning person. To

5:30
rise at 5:30 a.m. during the week, he sets the alarm on his phone
and leaves it in the bathroom overnight, forcing him quickly out
of bed for fear of waking his wife.
Mr. Danuser, a 51-year-old filmmaker and real-estate agent,
dresses and heads to his office, which is on the top floor of his Maplewood, N.J., home.
There he sits on the couch and meditates for 20 minutes.
By about 6:15 a.m., he is in the kitchen making matcha tea or coffee with blended
butter and oil. Preparing either drink involves several steps requiring about 10 minutes,
which he appreciates. “It’s very deliberate, you’re not just pushing a button,” he says.
After finishing his morning brew, he does some light stretches, yoga or a rhythmic
bounce on a trampoline in the basement. By 7 a.m., Mr. Danuser’s wife, 17-year-old
daughter and 10-year-old son are up and ready for breakfast, which he helps prepare.
Methodical, slow-paced mornings ease his anxiety and frustration and bring focus and
organization to unpredictable days, he says. Mr. Danuser started rising early about two
years ago. “I was 49 and realized I can’t be disorganized and have a lack of focus all my
life,” he says. “I figured out that waking up early and having a deliberate morning pattern
is something I can control—the control that I capture in the morning sustains me
through the whole day.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A12 | Wednesday, January 9, 2019 THE WALL STREET JOURNAL.

LIFE & ARTS

MY RIDE | By A.J. Baime

North Dakota’s

ANN ARBOR MILLER FOR THE WALL STREET JOURNAL

Winter Can’t
Stop This Car

.
Mary Motschenbacher, 68, a medical Ms. Motschenbacher: My Sisters Mary Motschenbacher, inset left, and

ly
transcriptionist from Fargo, N.D., and her sister and I hardly knew Beth Boatz, inset right, with their 1948
sister, Beth Boatz, a 67-year-old retired the difference between a Plymouth in Fargo, N.D. They restored the car
banker from Blaine, Minn., on their 1948 hammer and a screwdriver. after it sat unused on a farm for 44 years. Ms.
Plymouth, as told to A.J. Baime. on But with the help of our Boatz rode away from the church in this car
Ms. Motschenbacher: In 1947, our uncle, significant others, Andy after getting married in 2017.
Laurence Boatz, bought this Plymouth new and my husband, Roger, we
from the Corwin Chrysler dealership in dove in. We researched on-
Fargo, which still exists. In the mid-1960s, line and went to salvage
us l,

our dad took ownership. We had a good yards.

family, but we did not have a lot of material There were times we
al a
e
things, so this was a big deal. thought we would never
Ms. Boatz: There were four of us kids get it done. But we did, in
who learned how to drive in the Plymouth. about nine months.
ci on

We lived in Humboldt, Minn., which had Ms. Boatz: I married

about 100 people. In our high school, every-
one either drove or rode in this car.
Ms. Motschenbacher: We called it the
Bomb. Like, it was so cool, it was the bomb!
Beth, met her current husband, Andy Hyb-
ben, in 2013, he thought it would be a good
idea to find the Bomb and restore it, to use
er rs
Andy on June 17, 2017, and
when we came out of the church, there was
the Bomb, with my sister at the wheel to
drive us away. Then last summer, the Bomb

There were nights we would have 12 teen- in their wedding.
agers and two guitars in the car. Ms. Boatz: Using an old address book, I
Ms. Boatz: I was the last one to drive the located the friend I had given it to 44
car in our family back then. When I gradu- years earlier, and he agreed to give it back
m e
played a starring role at our high school re-
union—my 49th and my sister’s 50th. People
were in awe.
Ms. Motschenbacher: No one ever ex-

ated college, it was a hunk of junk. I gave it for free. Andy and I drove 1,000 miles pected we would find the Bomb, or that we
to a buddy, because he said he would re- round-trip to get the car. It was a rust would turn it into a beautiful car again.
store it. It ended up sitting on a farm in bucket full of mice. I knew it was the
m rp

Bergen, N.D., for 44 years. Bomb because I found my father’s old reg- Contact A.J. Baime at
Ms. Motschenbacher: When my sister, istration in the glove box. Facebook.com/ajbaime.

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co Fo

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n-

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no
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Finally Home With the Greats
An exhibition places the under-the-radar Fritz Ascher squarely in the canon of 20th-century German artists
BY TOM L. FREUDENHEIM
New York
FOR THOSE OF US who consider
themselves familiar with German
Expressionism, the compelling new
exhibition at New York University’s
Grey Art Gallery, “Fritz Ascher: Ex-
pressionist,” makes us wonder why
this artist hasn’t been on our radar
screens. The 67 works of art on
display, along with sketchbooks
and documentary materials, may
not quite qualify as a discovery,
but they significantly expand the
range of what we thought we
knew. And while his work shares
much with that of German Expres-
sionist artists, he doesn’t fit neatly
into that category since his late
work includes large moody works
with lush colors. Ascher
(1893-1970) was born in Berlin to a
comfortable Jewish family. A pro-
tégé of Max Liebermann, Berlin’s
most celebrated late Impressionist
painter, Ascher befriended and in-
teracted with most of the promi-
nent artists of Weimar period Ber-
lin, and shared with many of them
the distinction of having been cat-
egorized as a “degenerate” artist
by the Nazis.
The exhibition is accompanied
by a densely illustrated book, pub-
lished for several German muse-
ums where it was shown over the
past two years. The essays in this
book make a strong case for the
interactions—personal and aes-
thetic—between Fritz Ascher and a
host of other, more familiar artists:
Lovis Corinth, with whom he stud-
ied; Edvard Munch, whom he met
in Oslo; artists of the Berlin Seces-
sion and Dresden’s Die Brücke, as
well as those associated with Mu-
nich’s Blaue Reiter. In Berlin he ap-
parently learned printmaking from
Hermann Struck, who introduced
many artists, including Ludwig
Meidner and Marc Chagall, to print
techniques. But if all of this places
Ascher in a position that enables
us to pigeonhole him properly, it
also diminishes the artist’s some-
what idiosyncratic biography and
compelling oeuvre. Happily, the
Grey Art Gallery exhibition reas-
serts Ascher’s bona fides by letting
us focus on the work itself.
Not that the biography isn’t in-
teresting. His father, Hugo, had
studied at the University of Penn-
sylvania’s School of Dental Medi-
cine, practiced dentistry, and then
developed an artificial tooth
enamel that provided the family’s
wealth. The family lived in several
Berlin homes prior to moving into
an elegant villa in the suburb of
Zehlendorf. Hugo had his children
baptized in 1901, but he and his
wife seem not to have joined the
Protestant church. After Hitler
came to power in 1933, Fritz As-
BY BARRY MAZOR
no
BALSAM RANGE is ripe for
broader recognition. If you’ve not
heard, or even heard of, this hon-
ored five-man bluegrass band
named for the slice of the Blue
Ridge Mountains that stretches
out near their North Carolina
home base, their latest album,
“Aeonic” (Mountain Home Music
Company), released on Friday, will
be an ear opener.
In the world of bluegrass music,
there have always been perform-
ers, whether determinedly tradi-
tion-minded or more adventurous
and modern in musical focus, who
have been admired for dazzling
performances and instrumental
and vocal prowess, but only within
the sturdy but circumscribed field
itself. Those who have leaped to
greater, broader prestige and pop-
ularity—Flatt & Scruggs, Alison
Krauss, Ricky Skaggs, the Del Mc-
Coury Band—have all demon-
strated musical mastery in spades
but contributed distinctive ways
to mesh the traditional and up-to-
date while actively reaching out to
the wider audiences for country
music, Americana, folk, or pop.
Wider commercial success, prime-
time television, larger perfor-
mance venues and, in every one of
those examples, multiple Grammy
Award nominations followed.
Founded in 2007, Balsam Range
is now showing itself to be quite
capable of following in those foot-
steps. The band won the top En-
tertainer of the Year honor at the
2018 International Bluegrass Mu-
sic Awards for a second time, and
it had previously racked up Vocal
Group of the Year, as well, this be-
ing an outfit with multiple mem-
bers who take strong leads in the
singing, most notably fiddle player
on
us l,
al a
e
‘Golgotha’ (1915), by Fritz Ascher, in which inflections of Pieter Bruegel the Elder coalesce with James Ensor to create a scene of pandemonium and horror.
ci on
cher changed addresses regularly
in Berlin, until he was arrested
and briefly sent to Sachsenhausen
Concentration Camp after Kristall-
nacht in November 1938; he
er rs
stayed there for about four weeks,
and was soon rearrested and
jailed in Potsdam for five months.
Unable to emigrate, Ascher was
m e
forced to wear a yellow star as of
November 1941 and found himself
on a deportation list, so he went
m rp
into hiding in Berlin’s Grunewald
suburb, where he survived the
war thanks to friends. Much of his
work was destroyed during the
Berlin bombings, and after the
co Fo
war he set up his studio in a villa
he shared with friends; he contin-
ued to work, and even wrote po-
etry, until his death in 1970.
Given the fate of so much of
Ascher’s art, the exhibition tends
to feel episodic, in that there are
several groups of work that show
his visual relationship to contem-
poraneous art movements as well
as his occasionally quirky inter-
n-
Bluegrass Ready to Grow
‘Aeonic’ is the new album from Balsam Range: Caleb Smith, Darren Nicholson, Marc Pruett, Buddy Melton and Tim Surrett
Buddy Melton—Male Vocalist of
the Year in 2014 and 2018.
The members had all honed
their skills in previous stands—
Mr. Melton with Doc Watson and
the Americana band Jubal Foster;
bass and dobro player Tim Surrett
with the legendary Southern Gos-
pel group the Kingsmen Quartet
and Ralph Stanley; and Grammy-
winning banjoist Marc Pruett with
Ricky Skaggs’s band Kentucky
Thunder. Mandolin ace Darren
Nicholson and guitarist Caleb
Smith have been no less revered
in the field. Their grounding in
LIFE & ARTS
ART REVIEW
ests. A single 1912 graphite draw-
ing of Frederick the Great’s plas-
ter death mask assures us of
Ascher’s grounding in traditional
art training. Several caricatures
and sketch portraits of 1910-15
suggest the influence of the popu-
lar satirical magazine Simplicissi-
The show reasserts his
bona fides by letting us
focus on the work itself,
not just his biography
mus, which was especially popular
early in the 20th century; here we
can see Ascher’s debt to the ear-
lier French artist Honoré Daumier,
and visual affinities to contempo-
rary artists such as Lyonel Fein-
inger and Jules Pascin. It’s puz-
zling to be confronted by Ascher’s
moving, but morose, clown-like
MUSIC REVIEW
classic bluegrass was unquestion-
able and many of their earliest re-
cordings leaned on Bill Monroe
songs, lest anyone miss the fact.
That would not be Balsam
Range’s ultimate direction. By
2012, its breakthrough IBMA Al-
bum of the Year, “Papertown,” was
built on everything from an All-
man Brothers-influenced turn on
the blues standard “One Way Out”
to a Roy Acuff number, and songs
by top contemporary Nashville
songwriters ranging from Buddy
and Julie Miller to Chris Stapleton
and Mike Henderson as well as
Wednesday, January 9, 2019 | A13
.
ly
image, Bajazzo, who appears in
several works, the most successful
of which is the 1924 painting. The
clown reference may be to the ti-
tle character in Ruggero Leonca-
vallo’s popular 1892 opera, “Pagli-
acci,” or to Thomas Mann’s 1897
novella, “Der Bajazzo.” An essay
in the catalog by scholar Ori Z.
Soltes about Ascher’s “Golem”
painting (1916/45, not in the exhi-
bition) made this viewer see these
haunting images with other, even
more layered, meanings.
Despite notable highlights in
Ascher’s career both early and
late, the star of the exhibition is a
majestic large 1915 canvas, “Gol-
gotha,” shown with an ink and
pencil study for it nearby. Inflec-
tions of Pieter Bruegel the Elder
coalesce with James Ensor to cre-
ate a scene of pandemonium and
horror. In the study Ascher
started out with a formal arrange-
ment of three crosses holding the
composition together. In the large
painting, those figures have
DAVID J. SIMCHOCK
Mr. Melton’s sometime side-proj-
ect duo partner, Milan Miller. The
band’s April 2018 album, “Moun-
tain Overture,” underscored the
quintet’s increasing attraction to
lusher pop sounds, as the band re-
visited some of its best-known
songs with new orchestrations
featuring the Atlanta Pops Orches-
tra Ensemble.
“Aeonic”—its very title taking
note of Balsam Range’s unusually
stable, long-lasting member
lineup—pushes the band’s eclectic
choices further. There are songs
from indie rock-oriented singer-
BIANCA STOCK
moved to the top, just barely
readable in an aura of bright yel-
low light (not the darkness of the
canonical Gospels). The main field
of the canvas is taken up by
frightened, fleeing figures threat-
ened by a spear-carrying soldier
on horseback; this is not the fear
of awe at the sight of the Crucifix-
ion. Several other large paintings
of this period make it evident that
Ascher was capable of achieving
masterly, ambitious works that
hold their own when compared
with those of his contemporaries,
and we can now safely add him to
our canon of 20th-century German
artists, even if we might quibble
with the “Expressionist” title of
this important exhibition.
Fritz Ascher: Expressionist
Grey Art Gallery, through April 6
Mr. Freudenheim, a former art-
museum director, served as the
assistant secretary for museums
at the Smithsonian.
songwriters such as Ray LaMon-
tagne (“Hobo Blues”) and the Paul
Thorn-William Maddox team (“An-
gel Too Soon”), as well as from
the country duo Adam and Shan-
non Wright (“The Girl Who In-
vented the Wheel”). The album
closer is a driving bluegrass turn
on George Harrison’s Beatles tune
“If I Needed Someone.”
Besides the classic banjo-fiddle-
mandolin-guitar-bass (and occa-
sional dobro) lineup, the strikingly
traditional aspect of this set is the
group’s predilection for blues (a
strong element in bluegrass mu-
sic’s earliest days) and the blues
sensibility—sometimes hurt,
sometimes jubilantly, assuredly
past hurt—that goes with it. Many
of these songs depict and reflect
undisguised desperation, including
the blues numbers and “Help Me
to Hold On,” the extraordinary,
gospel-tinged prayer as a cry for
help (from the pens of Milan
Miller and Thomm Jutz) sung
movingly by Mr. Melton. By con-
trast, “The Girl Who Invented the
Wheel” is the comic story of a
man so effectively dumped that he
just has to salute, ebulliently, the
woman who did that so well.
The modern vocal approach of
all of this band’s singers, which
avoids slavish mimicking of old-
school high, lonesome vocals, plus
the spacious quality of the sound
production throughout, makes it
very clear this is an album for
2019, not 1949. The musical ap-
proach and the material both
make this a record that should
satisfy a wide audience. It’s up to
the band, of course, whether it
wants to extend its reach as oth-
ers have before.
Mr. Mazor, based in Nashville,
reviews country and roots music
for the Journal.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A14 | Wednesday, January 9, 2019 THE WALL STREET JOURNAL.

SPORTS
youth sports in general: early spe-
cialization, year-round training, off-
THE COUNT season camps and personal coaches.
“I see a lot of guys becoming
EAGLES SEEK more specialized at an earlier age,”
said Alabama quarterbacks coach
A DIFFERENT Dan Enos. “That’s all they do, is
play quarterback.”
RESULT Playing quarterback has also
been made easier by spread of-
fenses, which have made high

O
ne of the NFL’s most de- school and college football more
bated topics heading into stylistically similar. Alabama head
this weekend’s divisional coach Nick Saban said that style
playoff games is whether the has diminished the importance of
Philadelphia Eagles are better off being able to read defenses, which
with Nick Foles or Carson Wentz traditionally took some time to
at quarterback. Filling in for an in- learn.
jured Wentz last season, Foles “Now, you have an offense where
led the Eagles on a playoff run a lot of plays are made in the pass-
that culminated in a Super Bowl ing game and the running game
victory. Then in December, after based on one singular read,” Saban
Wentz was sidelined with a back said, “which is pretty simple for the

KELVIN KUO/REUTERS
injury, Foles led the team into the quarterback.”
playoffs and rallied Philadelphia By the national title game, most
to a wild-card win in Chicago. true freshmen have been on campus
Now comes the ultimate test of for a year anyway, as January en-
Foles’s value: a visit to New Or- rollment has become commonplace
leans where the Eagles lost to as a way to accelerate players’
the Saints 48-7 in November,
COLLEGE FOOTBALL readiness.
with Wentz at quarterback. That all prompted a shift in
It’s the third-biggest blowout
directly preceding a matchup of
the same teams in the postsea-
son since 1970, according to
How Clemson Emulated thinking, led by the two best teams
in college football, both featuring
instant quarterback sensations. “It
isn’t necessarily scary to play a
Stats LLC. Only one team that
lost by 35 or more points in a
regular-season matchup, the
2010 Jets, won a postseason re-
Silicon Valley freshman,” said Mike Locksley, Ala-
bama’s offensive coordinator this
season and the new head coach at
Maryland.
match, with New York topping Lawrence, from Cartersville, Ga.,
the Patriots in New England Trevor Lawrence led Clemson to the national title as a true freshman, arrived at Clemson as the top-rated
28-21 after dropping their Week recruit in the country. It would take
13 contest, 45-3. typifying a growing preference for skill over experience him until the Tigers’ fifth game to
Oddsmakers appear to be dis- win the starting job over senior
counting the prior result between became known for the relative freshman in 1998, then-coach Paul Kelly Bryant, though it wasn’t for
BY BRIAN COSTA

.
the Eagles and Saints. While youth of its executives—valuing Hackett cautioned reporters that he lack of confidence. “I felt like since
AND RACHEL BACHMAN

ly
New Orleans is favored by eight skill over experience—Clemson typ- would still need more time to de- the beginning of the season, I was
points on Sunday, the spread was ifies the sport’s growing embrace of velop. “We’re talking two or three ready,” he said.
seven prior to the blowout on Santa Clara, Calif. quarterbacks straight out of high years,” Hackett said then. Only as a It was one thing for Lawrence to
Nov. 18. —Michael Salfino THE DAY BEFORE HE WON the on school. senior did Palmer win the Heisman have the evident talent to play the
national championship, Clemson “There’s kind of a shift towards Trophy. position. But taking on the leader-
Run It Back quarterback Trevor Lawrence was
reminded of an anniversary of
that, especially on the West Coast,
kind of away from the traditional
From the first BCS title game in
1999 through 2016, not a single
ship role that is often expected of
quarterbacks doesn’t come as
Playoff rematches after a regular- sorts. Tigers quarterbacks coach guy who was an intern and then team started a true freshman at quickly. Lawrence did it mostly by
us l,

season blowout of 35 or more Brandon Streeter told him Sunday worked for 55 years and now he’s a quarterback in the national champi- not overtly trying to.
points, since 1970: marked one year to the day that he CEO at age 100,” said Alabama of- onship game. But each of the past “He did not step on any toes,”
al a
e
SEASON RESULT PLAYOFFS arrived on campus, just a few weeks fensive lineman Jonah Williams, a three title games have featured true Streeter said. “When you come in
1991: WAS 45, DET 0 WAS, 41-10 after graduating from high school. California native. “I think football is freshmen in either starting or star- that way, now he’s at the stage
“I was helping him move in,” the same way.” ring roles. where he can be more of a vocal
ci on

2010: NE 45, NYJ 3 NYJ, 28-21

2018: NO 48, PHI 7 ? said Streeter, standing on clumps of Lawrence’s performance came Jalen Hurts started for Alabama leader because he’s taken lead of
1991: WAS 56, ATL 17 WAS, 24-7
confetti at Levi’s Stadium on Mon- one year after Tua Tagovailoa, then this offense. So many guys respect
day night. “Now look at this,” he a true freshman, came off the bench him now because he did it the right
2009: NYJ 37, CIN 0 NYJ, 24-14
added, surveying the celebration to lead Alabama to a comeback win way.”
1980: PHI 42, MIN 7 PHI, 31-16 around him. “It’s unheard of.” in the national title game against
Starting a true freshman Teammates nicknamed him Sun-
er rs

Source: Stats LLC What Lawrence did in Clemson’s Georgia. And it was aided by some at quarterback used to shine, for his resemblance to the
44-16 thrashing of Alabama was in- spectacular catches from another similarly long-haired quarterback
Tre'Quan Smith deed almost literally unheard of. true freshman, Justyn Ross, who
be akin to going for it on character in the 2000 football
Only once before had a team won had one touchdown grab and 153 fourth-and-25. movie “Remember the Titans.” But
m e

the national championship with a receiving yards. (Unlike “redshirt” they gleaned more about him from
true freshman starting quarter- freshmen—sophomores in their his work habits—getting to the
back—Oklahoma did it with Jamelle first year of play—true freshmen practice facility earlier than other
m rp

Holieway in 1985. And the Tigers are in their first academic year.) in a 2017 loss to Clemson. Jake players to watch game film—than
hardly did it in spite of the young Ross was an even more recent Fromm started for Georgia in they did from anything he said.
Lawrence. arrival in the college ranks, coming 2018—only to be outshone by Ta- “He’s kind of the most boring
At the advanced age of 19, he to Clemson in June after graduating govailoa. person there is,” defensive lineman
threw for three touchdowns on 347 from high school in the spring. “I The diminishing need for experi- Christian Wilkins said.
co Fo

passing yards against an opponent
that had drawn comparisons to the
greatest teams of all time. But for
as exceptional as Lawrence’s talent
is, the speed of his ascent is no lon-
BILL FEIG/ASSOCIATED PRESS
did not expect to play this type of
role for such a dominant team,” he
said.
For most of college football his-
tory, starting a true freshman at
ence as a prerequisite for football’s “His face is the same all the time
most celebrated on-field leadership no matter what. You can never re-
role is extending even to the profes- ally get a read on him.”
sional ranks. Six of the 12 NFL play- Lawrence will be eligible for the
off teams this year started quarter- NFL draft in 2021, after his junior

ger an outlier. quarterback was akin to going for it backs younger than 25 years old, season. If he turns pro then, he
It is part of a new normal in on fourth-and-25. Even if coaches the most in a single postseason, ac- could end up sharing another simi-
which college football teams are re- were crazy or desperate enough to cording to the Elias Sports Bureau. larity with more than a few tech ex-
sembling the companies that reside try—and they rarely were—they The shift is rooted at the youth ecutives.
only a short drive from the site of wouldn’t expect much. level, where quarterback develop- Barring early graduation, he’d be
Monday’s game. When Southern California ment is being accelerated by the a college dropout—and soon, a very
Just as the technology business started Carson Palmer as a true same forces that have upended wealthy one.
n-

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.
20s d t
Edmonton 10s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 67 Anagrammatic 27 What you might
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intruders in this
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BUGS IN THE SYSTEM | now being
“Peanuts”
redeveloped
U.S. Forecasts Today Tomorrow Today Tomorrow By David Alfred Bywaters characters
City Hi Lo W Hi Lo W City Hi Lo W Hi Lo W 10 Mooring spot
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
Omaha 35 20 s 41 27 pc Frankfurt 39 31 c 35 27 sf Across 22 Swift specialty 44 Getaway 50 Used to be
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice 11 Fix a mule, say
Orlando 72 41 pc 61 45 s Geneva 37 29 sh 35 25 c 1 Indulge in a 23 “I didn’t like it destination 52 Blender option
Today Tomorrow Philadelphia 44 30 c 37 22 pc Havana 81 61 pc 75 54 s
City Hi Lo W Hi Lo W tirade anyway” 47 Getaway 12 Letter-shaped
Phoenix 73 51 pc 70 47 pc Hong Kong 68 65 pc 70 66 pc 53 Clumsy landings
Anchorage 13 3 pc 8 -7 s Pittsburgh 30 21 sf 27 19 sf Istanbul 47 44 pc 55 47 r 5 Elocutionary destination dresses
25 Bug in a 57 Posthumous
Atlanta 52 29 s 47 30 pc Portland, Maine 41 29 r 36 12 pc Jakarta 88 75 t 88 76 t
peculiarities plutocrat’s 48 Slowpoke 13 Do halfheartedly
Austin 63 43 pc 60 46 c Portland, Ore. 52 47 r 57 42 c Jerusalem 44 37 sh 52 36 s bio
Baltimore 44 28 c 38 24 pc Sacramento 61 47 r 59 46 pc Johannesburg 86 62 s 83 63 pc 10 Rolled sandwich stash? 18 Quaint assent
Boise 48 36 c 49 28 pc St. Louis 37 21 s 37 25 pc London 43 35 pc 43 40 c 51 Bug convention? 60 Addition to a
Boston 48 33 c 39 18 pc Salt Lake City 43 27 pc 40 29 c Madrid 55 26 s 49 24 s 14 Outback foragers 28 Mustache 54 Make out 22 Doesn’t do bank acct.
Burlington 37 27 sn 27 5 c San Francisco 60 49 r 59 49 pc Manila 87 75 s 87 75 s maintenance anything
Charlotte 53 26 s 45 25 s Santa Fe 42 24 pc 43 23 pc Melbourne 69 51 pc 74 54 c 15 Heaven- tool 55 Follow 61 What I might
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Cleveland 31 24 sf 26 22 c Sioux Falls 23 15 s 34 25 pc Milan 52 30 pc 49 25 pc 30 Buddy 56 “Fall back” gain
Dallas 58 41 pc 52 44 c Wash., D.C. 47 31 pc 41 26 s Moscow 15 13 c 18 10 sn 16 “Divine Comedy” 26 Offered a point 62 School near the
setting 31 Guinness Book 58 Up to, briefly
Denver 52 31 pc 58 30 s Mumbai 88 61 pc 90 61 pc of view Charles R.
suffix
Detroit
Honolulu
31 21 c
82 69 pc 83 69 sh
30 18 c
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43
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Today Tomorrow form? 32 Practical Previous Puzzle’s Solution
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City Hi Lo W Hi Lo W A G E T E AM C I T E D
Indianapolis 27 19 pc 32 20 pc Rome 56 35 pc 52 33 pc
19 Home to more 33 Unwilling as irritating? S O S O A R S S A T O R I
Kansas City 40 22 s 42 33 c Amsterdam 44 32 pc 42 38 c San Juan 83 69 pc 84 70 sh emigrants H O C F R I T T E R A WA Y
Las Vegas 59 43 pc 59 43 pc Athens 55 53 t 59 48 sh Seoul 32 20 c 39 22 pc than half of A G R O U N D U R A L
63 Port of
Little Rock 53 29 s 45 34 pc Baghdad 61 36 s 56 37 s Shanghai 44 42 r 47 46 r humanity 36 Bug empire’s R O O K C R I T I C A L
Los Angeles 66 50 c 66 50 s Bangkok 90 76 c 92 77 pc Singapore 86 77 t 87 77 t
Pennsylvania P O WD E R P U F F A L K A
20 Quizzical ruling family? T E R R O N A I R
Miami 78 51 pc 70 53 s Beijing 36 12 pc 42 17 s Sydney 82 71 pc 77 72 t 64 Break up T U R N O V E R O N D O W N S
Milwaukee 25 16 c 28 22 pc Berlin 37 34 sn 36 27 sn Taipei City 69 66 c 79 68 pc interjections 40 Major bore O R I O N E X P O
Minneapolis 16 10 pc 25 20 c Brussels 43 29 sh 38 33 c Tokyo 47 36 s 47 38 pc 65 January 13, e.g. A G A R H O N O R R O L L S
Nashville 46 24 pc 39 25 pc Buenos Aires 83 61 t 74 57 t Toronto 34 19 c 20 11 c 21 Where some 41 Indefinable T E L E P O R T R A I L
princes prep quality 66 Realtor’s goal A L O E S T U B B L E
New Orleans 62 41 pc 56 44 s Dubai 83 66 s 80 64 pc Vancouver 49 43 sh 50 43 r B U N S O F S T E E L E K E
New York City 44 32 c 36 22 pc Dublin 44 42 pc 49 42 c Warsaw 34 19 sn 24 11 pc A N N O Y S OM E N L I P
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 52 37 pc 47 40 c Edinburgh 40 38 pc 47 39 c Zurich 36 28 sn 33 22 sf G O WN S P I S A S M S

 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
High Tax Rates Aren’t Optimal
Paul Krug-
man, a Nobel
Prize winner,
wears
learning
his
lightly in his
New York
BUSINESS
WORLD Times col-
umn, all the
By Holman W.
better appar-
Jenkins, Jr.
ently to fo-
cus on his
real purpose: characterizing
anyone associated with “the
right” as an evil idiot.
This week he leapt to the
defense of Democratic fresh-
man Rep. Alexandria Ocasio-
Cortez’s idea of paying for a
“Green New Deal” with a 70%
marginal tax rate on the in-
comes of top earners.
Now your intuition might
be that neurosurgeons and
other highly paid folk would
work less if the government
took 70% of the proceeds. Or
that lobbyists and politicians
would find it remunerative to
arrange loopholes on behalf of
these taxpayers, which would
also negate the hoped-for rev-
enues.
But Mr. Krugman cites stud-
ies that suggest these effects
are negligible. The superfluous
earnings of these taxpayers
aren’t really so valued by
themselves or by society. A
2011 paper by Peter Diamond
and Emmanuel Saez, based on
a variety of extrapolations,
calculates that the “optimal”
top tax rate is 73%. A paper
the same year by Christina and
David Romer finds an even
higher “revenue maximizing”
top tax rate of 84%.
Case closed? Not even
Could Emergency Powers Build the Wall?
President
Trump has
threatened re-
peatedly to in-
voke emer-
gency powers
POLITICS to build his
wall on the
& IDEAS
southern bor-
By William
der if Con-
A. Galston
gress refuses
to provide
funds for it. By the time you
read this, Mr. Trump may have
announced this step in his ad-
dress from the Oval Office.
I suspect most people’s first
reaction is the same as mine:
He can’t do that. But a deeper
dive into the subject reveals a
more complicated and con-
tested state of affairs.
On the one hand, Article I,
Section 9 of the Constitution
contains seemingly definitive
language: “No money shall be
drawn from the Treasury, but
in consequence of appropria-
tions made by law.” In 1884
Congress enacted the Anti-
deficiency Act, which forbids
spending more on a line item
than Congress has appropri-
ated and prohibits the govern-
ment from committing to fu-
ture spending before Congress
no
has approved it.
On the other hand: Though
the Constitution grants the
president no general emer-
gency authority, Congress has
enacted laws giving the presi-
dent specific powers to cope
with particular crises. Thanks
to a prescient study last year
by the Brennan Center for Jus-
tice at New York University,
we know that there are 123
Price Drugs According to What They Do
By Roger D. Klein
I
n the U.S., medications
are priced and sold by the
pill, capsule or fluid
ounce. A better approach
would be to charge different
prices for a medicine based
on the disease for which it is
prescribed. While the current
drug-purchasing system is too
complex to reform overnight,
there is a simple change that
could improve health out-
comes and control spending:
disease-specific rebates.
Take a drug that wipes out
malignant cells in lung cancer
but is inconsistent in its abil-
ity to kill pancreatic cancer
cells. In a world of “indication
based” rebates, the manufac-
turer would pay the insurer
or pharmacy benefit manager
an agreed-upon amount each
time the medication is used
to treat a patient with pan-
creatic cancer.
Under the current pay-
ment structure, insurers re-
sort to heavy-handed bureau-
slightly. Messrs. Saez and Di-
amond are describing a world
in which the wealthy have no
opportunity to shield or hide
their incomes. Look closely
and the authors’ “optimal”
top federal rate quickly be-
comes 48% in a tax code like
America’s when state taxes
are included.
And not even the Romers
are convinced by their 84% top
rate. Their study looks only at
interwar tax returns, when the
tiny number of relevant tax-
payers received mostly part-
nership and dividend income.
Their work tells us nothing
about an 84% rate’s impact on
labor effort in an economy like
today’s.
They also point out that
some of their data are “imper-
fect” and the results “per-
verse.” To wit, did the rich in
the 1920s and ’30s really
spend more on machinery and
equipment even as the tax hit
went up, yet at the same time
form fewer new businesses?
Their findings, they add,
may be “confounded by the
enormous shocks affecting the
economy over this period”
(war, inflation, deflation, de-
pression). And their results fly
in the face of “comparable
postwar studies” that find sig-
nificant detrimental effects
from high marginal tax rates.
On second thought, their own
study may find such effects
too if their discovery of re-
duced business incorporations
in the 1920s and ’30s “holds
up under further scrutiny.”
on
You would hardly call this a
strong basis for junking the
well-established principle that
us l,
al a
e
statutory provisions letting a
ci on
president take wide discretion-
ary action without additional
backing from Congress.
One of these statutes, a mil-
itary-construction authoriza-
er rs
tion law enacted in 1982, gives
the defense secretary the
power to undertake “military
construction projects . . . with-
m e
out regard to any other provi-
sion of law” once the president
has declared a national emer-
m rp
gency. In carrying out these
projects, the secretary may use
any and all funds appropriated
for military construction and
not already obligated for other
co Fo
purposes. (Last September,
President Trump signed a bill
appropriating $10.3 billion for
military construction during
fiscal 2019.) The president has
made it clear that he regards
unauthorized border crossings
as a threat to national security
and already has deployed
thousands of military person-
nel to help thwart them. He
could argue that a wall on the
southern border is military
construction within the inten-
n-
tion of the law.
Though the president’s stat-
utory authority is broad, it is
far from unlimited. In the first
place, the president must de-
clare an emergency under the
terms of the National Emer-
gencies Act, adopted in 1976 to
bring order to a chaotic heap
of emergency powers dating
back decades. The law requires
the president to specify which
statute authorizes his declara-
tion, and Congress then has an
opportunity to disapprove the
president’s action.
cratic measures to restrict
the use of some drugs. Physi-
cians often must get ap-
proval before an insurer will
pay for a medicine. Insurers
tell doctors to try the cheap-
est drugs first. Placing ex-
pensive drugs on less-favored
tiers with higher copayments
is commonplace. But these
crude tactics don’t consider
A simple reform to
improve outcomes
and control costs.
the relative values of drugs
when administered for differ-
ent diseases. Pricing drugs
based on their uses would re-
duce the need for obtrusive
management techniques.
Despite recurring public
debates about disease-based
drug pricing, there are obsta-
cles to widespread adoption.
First, drugs paid for by Medi-
care Part B are reimbursed at
OPINION
80 is more than 20, and pro-
spective earners and taxpayers
treat it as such.
In fact, the Romers are
right: A large and growing lit-
erature continues to support
the claim that high marginal
tax rates and big tax hikes are
harmful to economic well-be-
ing. See the work of the Dallas
Fed’s Karel Mertens and col-
leagues, or the Romers’ own
2010 work finding a “highly
contractionary” effect from
postwar tax hikes.
Nobody really thinks
a top rate of 70% or
80% is a good idea
in the real world.
The theoretical cases for
towering “optimal” tax rates
that Mr. Krugman cites always
tend to trip up over political
realities if nothing else. Politi-
cians may find it politically
handy to be seen dinging the
rich, but they also find it use-
ful to placate the rich by dish-
ing out loopholes. The net re-
sult isn’t more revenue. It’s
more efficiency-inhibiting eco-
nomic distortions.
We would also appeal to a
simple, real-world intuition.
Take Mr. Krugman’s suggested
70% rate on incomes over $1
million. If it were really possi-
ble to fatten government
spending annually by as much
as $650 billion (to use 2016
tax data) without killing the
golden goose, we have to be-
lieve U.S. politicians would be
As originally drafted, it took
only a majority of the House
and the Senate to terminate a
presidential emergency decla-
ration. But after the Supreme
Court in 1983 struck down a
law that allowed a single con-
gressional chamber to reverse
a presidential action, Congress
amended the National Emer-
gency Act to bring it into line
with the constitutional re-
quirement for two-thirds of
both chambers to override a
veto—a high hurdle, especially
in our polarized times.
Trump says he can
move without consent
of Congress, but legal
scholars are divided.
The other check on the
president’s emergency power
comes from the judiciary. Once
an emergency declaration is
announced, some plaintiffs
may have standing to challenge
it on statutory or constitu-
tional grounds. Though courts
often defer to presidents’ judg-
ment, in this case they may
opt to explore the factual un-
derpinnings of the declaration
to determine whether it has a
rational basis within the stat-
ute, and whether it gives pow-
ers to the president that Arti-
cle II of the Constitution does
not permit.
Not everyone who objects to
the declaration is entitled to
challenge it in court; would-be
plaintiffs must make a credible
fixed rates, calculated on the
basis of average sales prices.
If rebates caused the prices of
these drugs to drop, that
could reduce the reimburse-
ment fees paid to hospitals
and doctors.
Second, pharmaceutical
manufacturers can’t charge
Medicaid more than their
lowest sales price. This “best
price” rule often sets a
drug’s price according to its
least valuable use. In addi-
tion, under Medicaid rules,
manufacturers must give
steep discounts to certain
hospitals and clinics. This
means discounting drugs
based on each use could fur-
ther burden already strained
manufacturers.
Third, the Food and Drug
Administration could rule that
price negotiations for off-label
uses constitute unlawful pro-
motion of a drug. Finally, en-
forcement agencies and regu-
lators could potentially view
some pricing arrangements as
illegal “kickbacks.”
doing so already.
Ditto Ms. Ocasio-Cortez’s
proposal to tax only income
above $10 million at 70%,
which might theoretically
yield $224 billion. Except all
evidence suggests that the
richest taxpayers are the most
diligent about mobilizing lob-
byists and politicians to fina-
gle the tax code on their be-
half.
The new congresswoman
from Queens is to be admired
for a plan that would hit her
party’s own blue-state voters
hardest. But let’s remember
why we’re having this discus-
sion. Even $224 billion falls
short of the estimated $1 tril-
lion to $2 trillion in annual
spending necessary to stabilize
atmospheric CO2 by midcen-
tury.
Her defenders will hasten to
point out that she speaks only
of zeroing out U.S. emissions,
albeit by 2030. But U.S. emis-
sions are only a 15% share (and
shrinking) of the global total.
Unless she has a plan for the
rest of the world, her Green
New Deal is self-refuting. She’d
have the U.S. spending $224
billion annually to have no
meaningful effect on climate.
But we digress. The real
purpose of revisiting the al-
leged optimality of high mar-
ginal tax rates right now lies
elsewhere. The goal is to make
the spending plans of the
ultraliberals sound plausible
enough to lure millennial vot-
ers off the couch and into the
voting booth. Like the young
everywhere, they are excited
by radical proposals as long as
somebody else is paying.
showing that the declaration
would injure them in some
way. Because the federal gov-
ernment does not own all the
property needed to build a
contiguous southern border
wall, it would have to use emi-
nent domain to seize land that
property owners refuse to sell.
Standard eminent domain re-
quires just compensation for
owners, but the Supreme Court
has ruled that in some cases
the military can seize property
without compensation if neces-
sary for urgent military pur-
poses. Either way, aggrieved
owners would probably be con-
sidered to have standing to
challenge the government’s ac-
tion, opening the door for
courts to review it.
Eminent constitutional
scholars, including many who
are no fans of President
Trump, disagree on whether
the president has the authority
to build the wall via a national
emergency. Yale’s Bruce Acker-
man argues that such action
would be illegal and that mili-
tary personnel who assisted
would be breaking the law.
Harvard’s Mark Tushnet, in
contrast, says that the presi-
dent would be on “very solid
legal ground.” Taking a middle
position, University of Texas
law professor Stephen Vladeck
observes that “we’re in un-
charted territory,” adding that
there’s a long list of statutes
that “give far too much power
to the president but that we
didn’t used to worry about be-
cause we assumed there would
be political safeguards.”
It’s time to start worrying.
Though Medicare rules
and bureaucratic constraints
preclude pricing drugs ac-
cording to indication, the
Centers for Medicare and
Medicaid Services is taking
steps to encourage use-based
utilization management and
purpose-based coverage in
the program. More impor-
tant, the agency can include
indication-specific pricing in
future Medicare demonstra-
tion projects.
Lawmakers, the Depart-
ment of Health and Human
Services, insurance companies
and drug manufacturers
should work together on leg-
islative and regulatory
changes to permit greater use
of indication-specific pricing
of pharmaceuticals. As the
health-care industry moves
away from paying for volume
to rewarding value, it could
be a winning formula.
Dr. Klein, a physician and
a lawyer, has advised the
FDA, CMS and HHS.
Wednesday, January 9, 2019 | A15
BOOKSHELF | By Charles R. Morris
The Road
Goes On Forever
The Longest Line on the Map
By Eric Rutkow
(Scribner, 438 pages, $30)
E
verybody loves a shaggy dog story. A good one should
be long and implausible but still on the edge of
possibility. The chronicle at the heart of Eric Rutkow’s
“The Longest Line on the Map” seems to qualify. The story
involves the decades-long attempt to construct thousands
of miles of railway—and, later, highway—to “link the
Americas.”
Mr. Rutkow begins by invoking Henry Clay, who in the
early 19th century imagined a trading system for exploiting
the riches of Spain’s new rebellious colonies—a system, as
he put it, “of which we shall be the centre, and in which all
South America will act with us.” In fact, there was not
much to exploit. Mexico and Argentina had modest
industries, but most of Central and South America was
either trackless jungle or
towering mountains, home to
mostly pre-literate societies.
But the dream persisted,
often propelled by dubious
agents. Hinton Rowan Helper
was one such, a bit of a
charlatan with a streak of
genius. In 1866, he was
returning from a stint as the
American consul in Buenos
Aires, groaningly ill from the
sway of the ocean, when he had a
vision: “Why not by rail?”
Although he had little understanding
.
of the challenges, he parlayed a line of
ly
blather into a seat at the table. Before long,
there was a proposal to build a Pan-American Railway,
backed by governmental subsidies.
Railroads were a big-boys game. Among the contenders
for the project: Collis Huntington, looking to extend his
Central Pacific and Southern Pacific lines; the financier Jay
Gould, who was more a rail consolidator than a builder; the
Boston-based investors in the Atchison line; and the highly
competent Colorado railroader William Palmer. All were
eyeing especially Mexico’s agricultural riches.
Mr. Rutkow diligently—rather too diligently perhaps—
chronicles every conference over the years, every agree-
ment, every promise of money. Gould and Huntington
formed an alliance, but it didn’t go anywhere. Indeed, very
little got built. One problem, for a while, was that the only
place to connect a railroad from South America to U.S. rail-
roads seemed to be the Royal Gorge, a 10-yard-wide canyon
in Colorado carved out by the Arkansas River. The catch
was that it could accommodate just a single rail line, and it
was so deep—1,250 feet—that it would require infinite
filling material.
More troublingly, the landscape between Panama and
Buenos Aires is among the most daunting in the world.
Once rail construction got under way, the 11,000-foot Cerro
de la Muerte, or Mountain of Death, in Costa Rica took
years to subdue. Add to such challenges the incompetence
of the native construction crews, the murderous local
political regimes and the corruption—the graft was
dreadful—and the Pan-American Railway began to look like
what it was: an impossible dream. President Theodore
Roosevelt seemed to have reached that same conclusion in
1905, when he gave priority to Panama Canal development,
naval buildup and railroad regulation.
It was an elegant idea, linking the Americas with
a rail line or highway. Too bad corruption and a
forbidding landscape has made it hard to realize.
One of the last acts of the comedy was played by
Woodrow Wilson at the behest of Henry Clay Pierce, an oil
man with major Mexican railway properties. After an
incident between Mexican and American troops, Pierce
prevailed upon Wilson to invade Veracruz, where a power
struggle was going on. Wilson might have listened to his
better angels, for he was heard saying that he should
“remind myself that I am the president of the whole United
States and not merely of a few property holders in the
Republic of Mexico.” Twenty-two Americans were killed in
the action, as were more than 150 Mexicans. Eventually the
“stridently anti-American” strongman Venustiano Carranza
took over in Mexico and, as Mr. Rutkow writes, “assumed
control of every aspect of the rail system that US capital
had first started building in 1880.” The national railway,
like Ozymandias’ statue, rusted in the wilderness.
There would be yet another attempt to fulfill the vision
that Hinton Helper conceived during his nauseous ocean
voyage. Instead of “Why not by rail?,” the question became:
“Why not by automobile?”
By the 1920s, automobiles were America’s quintessential
product. Car manufacturers recognized that better roads
would help sell cars, and a technology of road building
emerged. It would soon become part of a new effort to link
the Americas.
In 1923, when an inter-American conference was
convened in Santiago, Chile, one of the hot-button issues
was whether to cease funding the Pan-American Railway.
The decision was finessed by converting the whole idea into
a highway. Four presidents—Harding, Coolidge, Hoover and
Franklin Roosevelt—would line up in support of it, with
FDR increasing the funding dramatically.
World War II intervened, although at first the Latin
American subventions grew to help forestall German and
Japanese meddling in the hemisphere. By 1942, however, a
more confident military began transferring the money to
the European and Japanese theaters. But in the 1950s,
substantial funds were returned to the Western Hemi-
sphere, thanks in part to fears of communist encroachment
in South America. The highway was filled out by the 1,500-
mile Alcan Highway, terminating in Alaska, built very
quickly by the American military.
But this is still a shaggy-dog yarn. As Mr. Rutkow
reminds us in the last part of his engrossing tale, the Pan-
American Highway is still not finished. There is a gap in
Panama—the so-called Darien Gap, as much as 100 miles
wide at certain points. Among the problems there: deep
swamp mud and nasty critters galore. But even if the
project is finished one day, there is always aftosa to worry
about. Aftosa is foot-and-mouth disease: There is reason to
fear that the highway would become a vector for it. Some
dreams may not be worth pursuing.
Mr. Morris is the author of “A Rabble of Dead Money:
The Great Crash and the Global Depression: 1929–1939.”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A16 | Wednesday, January 9, 2019 * **** THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Ghosn in Wonderland Costly iPhone Canary and U.S.-China Rift

C
arlos Ghosn finally received 10 minutes with Nissan for any amount that wasn’t dis- Your Jan. 4 editorial “The iPhone reality than Mr. Cook’s comments that
in a Japanese courtroom Tuesday, and closed. Draft proposals for post-retirement Canary” notes “the interdependence of you cite. Chinese consumers are likely
the U.S. and Chinese economies” and to have been turned off by the iPhone
the prosecution case against him looks compensation were inspected by Nissan law-
that “the two countries’ economies are XR’s 6,499-yuan price tag given the
no better now than it did when yers, “internal and external,”
the former Nissan CEO was ar- The case against the and also weren’t contractual,
entwined for better or worse.” While it
may have been President Richard
Huawei Mate 20’s price is 3,999. Com-
petition matters more than macro un-
rested way back on Nov. 19. former Nissan CEO gets he says. We look forward to Nixon who “opened” China to the certainties.
One of the strangest cases in hearing prosecutors explain West, it was President George H.W. JOHN CIRRITO
the history of international no stronger with age. why it’s a crime for Mr. Ghosn Bush, the former chief liaison from Scotch Plains, N.J.
business gets curiouser and not to disclose a non-contract Washington to the People’s Republic,
curiouser. for non-compensation. who initiated a policy of interdepen- Your editorial connects dots from a
Readers may recognize the “Alice in Wonder- Mr. Ghosn also offered plausible defenses for dence between the two economies. dip in U.S. stock prices to Apple’s dis-
land” reference above, and there certainly is a two other allegations. Nissan covered the then Trade with China and its integration appointing iPhone sales in China to
“sentence first, verdict afterwards” quality to CEO for some collateral he used for foreign-ex- into international institutions have China’s weakening economy to Presi-
been tremendously successful in reduc- dent Trump’s bellicosity and heavy-
the Ghosn proceeding. The man who was a folk change contracts to ride out changes in the yen-
ing tensions between the two countries handedness in confronting China’s
hero in Japan for saving Nissan has so far been dollar rate. He was paid in yen but had dollar for nearly 30 years. We’re currently mercantilism. If continued U.S. tariffs
formally charged only with misreporting income costs outside Japan. The forex contracts were witnessing a severe test of the and trade-war threats result in a stale-
to Japanese regulators. But while he’s been de- later transferred back to Mr. Ghosn, and Nissan strength of this bond. mate or worse, China’s sinking econ-
tained for seven weeks, prosecutors keep piling had no losses. I assume that no American will fault omy could suck the U.S. and the global
on other allegations to investigate so they can Prosecutors also say Mr. Ghosn may have had the stated aims of the current presi- economy down with it.
detain him further under Japanese law. Nissan make payments to a longtime Nissan dent’s initiative: trade parity, protec- Can and should trade relations with
As the world is learning, the practice of Japa- partner, the Khaled Juffali Co., in return for tion of intellectual property and the China be divorced from U.S. national
nese prosecutors isn’t to indict someone and business Juffali did for Mr. Ghosn. But Juffali like. But it’s worth noting that the aim security and other noneconomic inter-
then go to trial to test the evidence against the and Mr. Ghosn both say the payments to Juffali of President George H.W. Bush’s strat- ests, even if trade war is akin to point-
egy was geopolitical, not economic. Is ing a gun at one’s own head and
defense. In Tokyo prosecutors hold and interro- were appropriate for “critical services that sub-
it wise to risk sacrificing the gains of threatening to pull the trigger? Gerard
gate a defendant without a lawyer present until stantially benefited Nissan.” the former for improvement of the lat- Gayou’s op-ed on the same day, “Xi’s
he confesses. The trial is essentially pro forma, The judge is expected to rule on Mr. Ghosn’s ter? And more pointedly, do current Promise to Taiwan Sounds Like a
with guilt preordained. bail request by the end of this week, but then events indicate the likelihood of a de- Threat,” is the latest of many columns
The problem for prosecutors is that Mr. prosecutors could come up with new allegations cline on both fronts? and news articles that touch on China’s
Ghosn refuses to confess because he insists he to hold him in prison for longer. Prosecutors say BOB DENMARK thrust toward hegemony in Asia. Tai-
did nothing wrong. His Japanese lawyer used Mr. Ghosn is a flight risk and could destroy evi- East Hanover, N.J. wan is the second canary in China’s
a rare procedural move Monday so Mr. Ghosn dence, but if prosecutors don’t have enough evi- new sphere of influence. Hong Kong
could appear before a judge and read a state- dence by now what is there to destroy? You write in your editorial that al- was the first, and although that canary
ment declaring his innocence in public for the The long detention is putting more pressure though Apple Inc. CEO Tim Cook is “an remains alive, its democratic wings
first time. His defense is more persuasive than on Renault to remove Mr. Ghosn as chairman. engineer by training,” he has diag- have been clipped. The risks of escala-
nosed like an economist why 100% of tion are high, but the threat of an un-
the prosecution’s public evidence. Renault has an alliance with Nissan and Mitsubi-
Apple’s year-over-year world-wide rev- checked China is equally sobering.
“Contrary to the accusations made by the shi Motors that increasingly rankles the Japa- enue decline occurred in Greater ALAN JONES
prosecutors, I never received any compensation nese, and a fair surmise is that the Ghosn inqui- China. As you report, Mr. Cook said, Atlanta

.
from Nissan that was not disclosed, nor did I sition is part of a Japanese effort to break up “We believe the economic environment

ly
ever enter into any binding contract with Nissan this alliance that Mr. Ghosn had put together. in China has been further impacted by I love Apple products and my house-
to be paid a fixed amount that was not dis- The French aren’t going out of their way to raise rising trade tensions with the United hold is full of them, but let’s be honest:
closed,” Mr. Ghosn told the court. a stink about the way Japan is treating Mr. States.” Mr. Cook goes on to indicate The first iPhones were introduced at
The “compensation” was a notional account Ghosn, which suggests they may care more
on that the effects of the uncertainty ap- $499, a price subsidized by AT&T. To-
maintained by Mr. Ghosn of what he might have about the alliance than about what Mr. Ghosn pears to have reached the consumers. day’s models top out at more than
earned had Nissan paid him by international did to save the French auto industry. But these explanations look like ex- $1,000. Name another electronic device
auto-executive standards. Everyone knew he All of this looks to us like a dispute that cuses in the context of recent develop- that costs more with each version?
ments in the market. The electronics business model has al-
us l,

was underpaid by those standards, and both should have been handled in a boardroom, not
Take the news story in the same ways been new versions offer more
Ford and GM had attempted to hire Mr. Ghosn a courtroom. Meanwhile, Mr. Ghosn sits in day’s Journal: “Apple’s Troubles Ex- features at lower prices than the old
away from Nissan. prison, where he can contemplate a case of what
al a
e
tend Beyond China.” It notes that Ap- versions. Maybe, just maybe, consum-
But he says he never had a “binding contract” looks like the Red Queen’s justice. ple’s Chinese rivals, including Huawei ers have reached the point where it’s
Technologies Co., are selling feature- just too much to pay now with great
ci on

competitive smartphones at dramati- alternatives available at lower prices.

Who Is More Macho? cally lower prices. Their analysis of
Apple’s woes seems closer to Apple’s
DOUGLAS J. GABEL
Melbourne, Fla.

T
he dialogue of the deaf that is Amer- because U.S. policy lets illegals claim asylum
ica’s immigration debate was on full and stay here and work during the months or
er rs

display Tuesday night as President years it takes to hear their cases. Democrats
Trump and Democratic Congressional leaders ought to help change that perverse incentive, Infrastructure Needs Meet the Pork Barrel
talked past one another to an American public but instead they want to blame Mr. Trump for Regarding your editorial “You Call be doing with conscripted (or bor-
that could be forgiven for tuning out and re- being “cruel.”
m e

That ‘Infrastructure’?” (Jan. 4): The rowed) capital.

turning to more illuminating programming like Democrats Nancy Pelosi and Chuck Schumer American Society of Civil Engineers The federal government is cur-
“The Bachelor.” also showed no sign of compromise, blaming (ASCE) is encouraged that both Presi- rently running near a $1 trillion defi-
m rp

Mr. Trump made his case for more funding by Mr. Trump for the partial government shut-
asserting there is “a growing humanitarian and down and refusing to talk about border security
security crisis at our southern border.” He then until the government is funded. But then they’ll
offered a parade of crimes committed by illegal have no reason to provide more money for the
immigrants that are horrible but are unlikely to border. Democrats are going for total political
co Fo
dent Trump and the new House ma-
jority have signaled that infrastruc-
ture is an area for bipartisanship. The
desire exists within the legislative and
executive branches, and now it is time
cit in its current budget; this during a
time of 3% GDP growth, 3.2% average
hourly earnings growth, 3.9% unem-
ployment, and firms continuing to cite
difficulty in finding qualified workers

to put that desire into action. as one of the largest challenges in

be stopped by a “steel barrier” at the border.
Barriers have worked in some places, but deter-
mined criminals will find other ways to smuggle
drugs and people into the United States.
Mr. Trump was most honest when he talked
about the humanitarian harm caused by the re-
cent migrant rush seeking asylum in the U.S.
This really is overwhelming U.S. Customs and
Border Protection, which needs more resources
to take care of families and children. They come
A California-Nevada Tax Brawl
n-
victory because they think Republicans will
start to waver in Congress and vote to reopen
the government.
The obvious deal is for Democrats to provide
border money to Mr. Trump in return for legal
status for Dreamer immigrants and others like
Haitians on temporary visas facing deportation
soon. But neither side showed any interest in
such common sense on Tuesday. Back to your
regularly scheduled political morass.
The first step Congress and the
Trump administration should take is
to address three major infrastructure
priorities at the federal level: fixing
the Highway Trust Fund, removing
the arbitrary cap on the passenger fa-
cility charge to modernize our na-
tion’s airports, and ensuring all funds
in the Harbor Maintenance Trust
Fund are being used for their in-
tended purpose.
We also see the need for leveraging
private investment to address the in-
their businesses. Let’s be honest—this
is blatant pork-barrel spending, pure
and simple.
There is no economic philosophy—
classical, Keynesian, neoclassical or
even Marxism that would tolerate
such action in the current economic
environment. it is all too easy to
spend “other people’s money.”
KEVIN G. WASPI, CFA
Urbana, Ill.
If the Republicans were smart, they

vestment gap, but private investment would challenge the Democrats by

L
alone won’t solve the problem. We be- proposing to repeal the Davis-Bacon
ast June the Supreme Court overturned In 2016 the Court split on whether to overturn lieve that the federal government can Act, which created “union prevailing
a 50-year precedent and let states im- Hall, but ruled 6-2 that Nevada courts must apply be a better partner in infrastructure wages,” and was passed in 1931. The
no

pose sales taxes on businesses with no the same damage limits to California agencies as development, as it once was, by bring- reason for repeal is quite simple. The
physical presence in those they do to their own. ing additional resources to the table Davis-Bacon Act was a response by
states. On Wednesday the Jus- The Supreme Court gets After damages were pared that will better leverage state, local Rep. Robert L. Bacon of New York to
tices will consider whether to another chance on state to $100,000, the board is again and private investment. While we prevent a contractor from Alabama,
repudiate another precedent asking the Court to toss Hall. It must reform permitting rules and re- who previously won a bid and built
that lets taxpayers and busi- sovereign immunity. argues that Court decisions duce government red tape, we cannot
set aside standards that protect the
what we consider a VA hospital today,
in his district, from bidding again.
nesses seek legal redress for over 30 years have strength- health, safety and welfare of the pub- The contractor’s offense was using Af-
harassment and injuries by ened state sovereign immunity. lic, and the need to improve our envi- rican-American workers he trans-
other states. But those cases implicate federal limitations. As ronmental quality. ported from Alabama. The contractor
The question in Franchise Tax Board of Cali- Justice Anthony Kennedy wrote in Alden v. Unfortunately, if Congress and housed, fed and paid his workers.
fornia v. Hyatt is whether states enjoy sover- Maine (1999), “the Constitution did not reflect President Trump don’t come up with There was never an issue regarding
eign immunity—the principle that governments an agreement between the States to respect the a solution to fund infrastructure, ev- the quality of the work.
can’t be sued without their consent—in other sovereign immunity of one another” and “treats ery American family will continue to In 1979 the Government Account-
states’ courts. States have long been immune the powers of the States differently from the lose $3,400 in disposable income each ability Office published a report stat-
from civil liability in their own jurisdiction, and powers of the Federal Government.” year, which is essentially $9 each day, ing that the Davis-Bacon Act should
the Eleventh Amendment grants them protec- The nub of Hall is a tension between states’ due to poor, unreliable infrastructure. be repealed. We could, arguably, get
Leaky pipes, bridge closures and the 15%-20% more “bang for the buck” for
tion in federal court. sovereign interests in avoiding potentially
occasional blackout aren’t just incon- infrastructure projects if Davis-Bacon
But under Nevada v. Hall (1979), states may costly litigation and protecting their citizens venient—they add up to real dollars is repealed. Better late than never.
still be sued in sister states. The Court held that from injury. States say hefty legal judgments and cents. We can and must do better. BRIAN GLASS
sovereign immunity in other states’ courts is could impair public services, but courts often ROBIN A. KEMPER, P.E. Glen Allen, Va.
not guaranteed by the Constitution and would dismiss lawsuits or reduce penalties against President, ASCE
“constitute the real intrusion on the sovereignty other states to preserve comity. Washington
of the States—and the power of the people—in Lawmakers who supported overturning the Pepper ...
our Union.” California’s Franchise Tax Board is “physical presence” standard for sales tax col- This outrageous summary of nones-
challenging this 40-year precedent. lection in last year’s Wayfair case now complain sential infrastructure items proposed
And Salt
Three decades or so ago, inventor Gilbert that remote retailers may seek legal recourse in by Chuck Schumer-led Democratic THE WALL STREET JOURNAL

Hyatt moved to Nevada, prompting a crusade their home states. States dismissed small busi- senators shows that Democrats aren’t
serious or honest about resolving our
by California’s tax board to prove he was lying ness worries about being hounded by tax collec-
real transportation needs.
about his residency. Auditors travelled to Ne- tors across the country, yet now they grouse LARRY HIMES
vada, rummaged through his garbage, con- about the potential costs of lawsuits by taxpay- Mesa, Ariz.
scripted his estranged family to testify against ers in other jurisdictions. Lawsuits have not
him, and leaked his Social Security number and been a major drain on government budgets since When highlighting some examples
other private information to the press. Hall was decided, and states can better bear the from the Senate plan floated last
Mr. Hyatt sued the California board in Ne- legal bills than small businesses can. March, any reader should immediately
vada for invasion of privacy and fraud. The If the Court overturns Hall, governments scream “mission creep” in the context
board responded that Nevada must respect Cal- could bully, extort and defraud residents of of what a federal government should
ifornia law granting its agencies sovereign im- other states with legal impunity and no politi-
munity under the Constitution’s Full Faith and cal accountability. The Court was right in Hall Letters intended for publication should
Credit Clause. The U.S. Supreme Court in 2003 that it “may be wise policy, as a matter of har- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
disagreed. monious interstate relations, for States to ac- or emailed to wsj.ltrs@wsj.com. Please
In the spirit of comity, Nevada’s Supreme cord each other immunity” and “they are free include your city and state. All letters
Court tossed several claims and punitive dam- to do so.” But imposing such obligation by judi- are subject to editing, and unpublished
ages but affirmed a $1 million judgment for oth- cial decree would undermine state sovereignty letters can be neither acknowledged nor “Okay, you can run and you can hide,
returned.
ers. The board again sought High Court review. and federalism. but can you name all 50 states?”
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
What Trump Means by ‘America First’
By Dennis Ross
T
here’s more than one type
of isolationist. Some in the
1930s were pacifists on
philosophical grounds;
others opposed Franklin
Roosevelt’s support for the British,
fearing it would drag America into a
European war; and some even ad-
mired the Nazis. The America First
Committee, for which Charles Lind-
bergh was spokesman, contained the
full range of these views. Since Presi-
dent Trump has made “America
First” his calling card, one might as-
sume that Lindbergh & Co. are the
antecedents of his foreign policy.
His historical antecedent?
Not Lindbergh but the
‘belligerent isolationism’
of Sen. William Borah.
But they’re not. “Belligerent isola-
tionists,” a group identified by diplo-
matic historian Manfred Jonas in his
1966 classic, “Isolationism in Amer-
ica, 1935-41,” are Mr. Trump’s true
forerunners. More than isolationists,
these thinkers and politicians from
the first half of the 20th century
were unilateralists, reflecting a tradi-
tional impulse in American thinking.
They did not want the U.S. encum-
bered. International institutions
would inhibit the U.S., so it should
have little to do with them. They saw
alliances as too constraining, impos-
ing costly obligations and limiting
American freedom of action.
Whether the U.S. should ally with
Democrats Contend With the ‘Anger Translator’
The White House
Correspondents’
Dinner in 2015 in-
cluded an ingenious
skit featuring Presi-
dent Obama and the
comedian Keegan-
UPWARD
MOBILITY Michael Key. As Mr.
Obama stood at a
By Jason L.
lectern offering va-
Riley
pid pleasantries
about White House
press coverage, his “anger transla-
tor,” portrayed by Mr. Key, lurked
behind him acting out what the
president was really thinking.
Today, Democrats keep their “an-
ger translators” in-house, among
the progressive members of the
116th Congress sworn in last week.
Already we’ve heard Rep. Rashida
Tlaib, the freshman Democrat from
Michigan, announce with an ob-
scenity that her caucus is dead-set
on impeaching President Trump.
Next came Rep. Alexandria Ocasio-
Cortez of New York, laying out the
new House majority’s ambitious
agenda—universal health care, free
college tuition, a Green New Deal to
combat climate change—in an inter-
view with Anderson Cooper that
aired Sunday on “60 Minutes.”
Have We Got a Carbon Tax ‘Dividend’ for You
By Mark P. Mills
T
no
his could be the year Congress
tries to enact the mother of all
taxes, a carbon tax—a levy on
the use of oil, natural gas and coal.
Everything that is fabricated, grown,
operated or moved is made possible
by hydrocarbons. That makes the
carbon tax different from a mere
consumption or excise tax. The latter
is attached to purchasing—spend
more, pay more. A carbon tax is a
tax on existence, because all aspects
of living require energy, and hydro-
carbons provide 80% of America’s
energy, more for the rest of the
world. And hydrocarbons are used to
create or build everything else that
produces energy.
Who would support such a tax?
Four intersecting constituencies:
those who embrace the idea as an
essential step to “fixing” the climate;
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other countries or intervene in con-
flicts was for them a question only of
U.S. interests, narrowly defined. Val-
ues and humanitarian concerns
should not play a role. Sen. William
Borah, an Idaho Republican who
served from 1907 until his death in
1940, was for Jonas the driving polit-
ical force of the movement.
Mr. Trump is a 21st-century bel-
ligerent isolationist. He believes mul-
tinational institutions and agree-
ments do nothing for America.
Alliances are encumbrances: Either
the allies don’t pay their fair share,
or if they do, like the Baltic states in
the North Atlantic Treaty Organiza-
tion, they might drag the U.S. into a
war if Russia attacks them. For Mr.
Trump, international commitments
tie America down and are expensive
to fulfill.
Belligerent isolationism does not
require withdrawing from the world.
It means, instead, guiding relations
with other countries, or nonstate ac-
tors like the Kurds, by the sole crite-
rion of what they are doing for
America now. The Kurdish-led Syrian
Democratic Forces may be doing the
brunt of the fighting against Islamic
State, but ISIS is mostly defeated
and Turkey threatens to enter north-
eastern Syria and come into conflict
with Kurdish forces. That creates a
potential cost—and for Mr. Trump,
why should the U.S. be in Syria any-
way? Withdraw and you reduce the
cost. The gains from the Kurds fight-
ing ISIS have been largely realized,
so the Kurds are no longer of much
use. If the Turks want to be there, let
them; if the Iranians or the Russians
want to move in deeper, go ahead.
The belligerent isolationist mea-
sures costs and benefits narrowly
on
us l,
There have been some half-
hearted attempts by Democratic
al a
e
leaders to distance themselves from
Ms. Tlaib’s remarks and Ms. Ocasio-
Cortez’s plans, but the reality is
ci on
that both women are expressing
views that fall well within the
party mainstream. Dutifully, they’re
trying to mollify the “resistance”
while Democratic leaders appeal to
er rs
more-moderate and independent
voters.
Sure, Speaker Nancy Pelosi has
insisted that Democrats are fo-
m e
cused on health care and infra-
structure, and not on running the
president out of the Oval Office.
m rp
She even spurned a request from
Ms. Ocasio-Cortez to establish a
House committee tasked specifi-
cally with advancing the freshman
lawmaker’s green agenda. But these
co Fo
disagreements are over tactics, not
objectives. The speaker and the
freshmen remain united in their
desire, among other things, to im-
pose single-payer health care, in-
crease environmental regulations
and, yes, impeach Mr. Trump.
There’s little difference between
Alexandria Ocasio-Cortez’s progres-
sive cri de coeur and the campaign
platforms of Sen. Elizabeth Warren
n-
those agnostic about climate claims
but eager to check the box for politi-
cal expediency; those in search of
some “grand bargain” on tax or reg-
ulatory reform; and those eager to
find more ways to extract money
from the economy. This mélange of
motives covers a lot of political ter-
ritory.
Advocates say a carbon tax would
reduce the use of hydrocarbons by
creating a disincentive. The money
collected could be used to subsidize
alternative energy sources. Grand-
bargainers want to split the carbon
tax bounty to offset or eliminate
other taxes or regulation they deem
more onerous. Some conservatives
claim a carbon tax is in theory a
more efficient way than regulation
to reduce carbon emissions.
But the idea that a carbon tax is a
painless, efficient way to reduce hy-
drocarbons fails for three reasons.
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Chief Executive Officer, News Corp
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Chief Executive Officer and Publisher
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OPINION
Sen. William Borah (R., Idaho) served from 1907 until his death in 1940.
and in the short term. It is all tactics
and no strategy—but since the desire
is never to be encumbered, and to be
able to switch allegiances or make
deals with anyone, strategy is not
even required.
Regrettably, the world is not so
simple; there is a strategic cost when
no nation feels it can count on the
U.S. Moreover, when America shirks
responsibility for taking the lead in
response to transnational threats, it
creates vacuums that worse forces
are only too happy to fill. The Rus-
sians and Chinese are seizing the op-
portunity to extend their spheres of
influence and bully other nations, in-
cluding traditional American allies
and partners.
Consider developments in the
Middle East: After Russia errone-
and other Democratic presidential
wannabes.
It was Ms. Ocasio-Cortez’s re-
sponse Sunday to a question about
marginal income-tax rates that re-
ceived the most attention. When
Mr. Cooper asked her if she had a
specific tax rate in mind, the con-
gresswoman replied: “You look at
Nancy Pelosi will have
a hard time keeping
the ultraprogressives
in her caucus quiet.
our tax rates back in the ’60s, and
when you have a progressive tax
rate system . . . sometimes you see
tax rates as high as 60 or 70%.” But
the lesson of the 1960s is that low-
ering tax rates, not raising them,
boosts government revenue. And
it’s a lesson that the political left
continues to ignore.
“It is a paradoxical truth that
tax rates are too high today and tax
revenues are too low and the
soundest way to raise the revenues
in the long run is to cut the rates
First, cost aside, it would take de-
cades—probably a century—to re-
structure America’s energy ecosys-
tem. That means a carbon tax would
be effectively permanent. The finan-
cial and physical scale of the energy
infrastructure is so enormous that
changing it isn’t, to use the popular
analogy, like changing the course of
a supertanker, but of a ship 1,000
times as large as a supertanker. The
U.S. has already spent hundreds of
billions of dollars on green subsidies
with piddly results. Wind and solar
combined, the favored alternatives
to hydrocarbons, provide a mere 3%
of the country’s energy.
Second, citizens eventually react
when governments raise the cost of
living. The raison d’être for a carbon
tax is to use price to shift consumer
behavior. Ask France’s President Em-
muanel Macron how that’s going—
and he was shooting for a mere 5%
Notable & Quotable
Slate’s Dahlia Lilthwick in a sym-
posium on “what the world will look
like in 20 years,” NYMag.com, Jan. 6:
By 2039, the Supreme Court basi-
cally doesn’t matter anymore. . . . We
have very fanciful ideas about a pro-
tective, progressive Supreme Court,
and that is almost entirely a function
of a chunk of time in the 1960s and
’70s. . . . Progressives got this notion
that the Court was going to save us.
. . . But actually, we’ve lost every-
thing, including the right to free and
fair elections. . . . There’s been a 40-
year laser focus on the political right
around the Court. There has been an
absolute sucking noise on the left
around the same issue. We had a 4-4
Court for a year, and I didn’t see
Americans going to the polls over it.
I didn’t see anybody thinking about it.
Wednesday, January 9, 2019 | A17
deals with those who threaten them.
Recall that the Saudis intervened in
Yemen to impose limits on Iranian
expansion largely because they be-
lieved the Obama administration
would not. The expected U.S. retreat
from Syria now forces Riyadh to con-
front a new dilemma. If the Saudis
believe Russia can manipulate Ira-
nian threats against them by offering
mafia-style “protection,” they may
feel unable to withstand Russian
pressure to cut oil production signif-
icantly to drive up the price.
Mr. Trump’s approach ultimately
CORBIS/VCG VIA GETTY IMAGES
will increase the likelihood of conflicts
that draw American involvement—
even while he is president. Israel, for
examples, is not going to allow Iran to
remain untouched if its Hezbollah
proxies launch tens of thousands of
rockets from Lebanon and Syria into
the Jewish state. And how would Iran
respond? It can’t add much to the
Hezbollah rockets, so does it hit Saudi
ously blamed Israel when Syrian gov- Arabia or others in the Gulf? If it
ernment forces shot down a Russian does, what happens to the oil supply?
aircraft, killing 15, Israel felt com- Ignoring the risks and retreating to-
pelled to scale back its attacks day could drag America back into a
against Iranian and Shiite militia tar- larger conflict tomorrow.
gets in Syria. Israel’s security estab- Uncertainty about American lead-
lishment knows that Mr. Trump has ership does not make the world
left them alone to deal with the safer. Belligerent isolationism means
threats from the north. But it is un- others cannot count on the U.S.; con-
clear how long Israel will wait as the sequently, the U.S. cannot count on
Iranian presence grows not only in them. Threats like terrorism and the
Syria, but also in Lebanon, where rise of China require partners, and
Iran seeks to provide precision guid- America risks losing them. A bellig-
ance to thousands of Hezbollah rock- erent isolationist America may well
ets aimed at Israeli population cen- be unencumbered, but it is also likely
ters and other high-value targets. to be alone.
When America’s friends and part-
.
ners believe they are on their own, Mr. Ross has held senior national
ly
they will either act unilaterally, in a security positions in several presi-
way that may not be well-considered, dential administrations and is coun-
or feel they must make suboptimal selor at the Washington Institute.
now,” said President Kennedy in down to 24% in 1929 from 73% in
1962, when he previewed legislation 1921. As would occur again de-
that would lower personal income- cades later, a significant increase
tax rates among all earners. JFK in government revenues followed
was assassinated before Congress and the ’20s roared. Moreover, the
could act, but his successor, Lyndon wealthiest earners not only paid a
Johnson, made tax relief his top larger total amount of taxes but
priority, and in 1964 rates fell also a higher percentage of all
across the board. The top marginal taxes collected. In 1920, people in
rate, which had been 91%, was re- the top bracket were responsible
duced to the 70% cited approvingly for 29.9% of all federal income
by Ms. Ocasio-Cortez. The bottom taxes. By 1928 they were paying
rate fell to 14% from 20%, and all more than double that share, even
22 rates in between were reduced though their tax rate had been
as well. slashed to 20% from 77% over the
By mid-1965 revenue already far same period.
exceeded what it had been in the The administrations of Ronald
year before the rates were lowered. Reagan and George W. Bush cut
Disposable income increased and high marginal rates with similar
unemployment fell. It was a tax re- results. Instead of stashing money
duction, not a tax increase, that in tax shelters, people invested in
swelled government coffers and fi- the private economy, producing
nanced LBJ’s Great Society and War more taxable income for the fed-
on Poverty. eral government to spend. A man-
Kennedy and Johnson weren’t tra on the class-warfare left is that
blazing any new trails in calling the rich need to pay their “fair
for tax cuts to help spur the econ- share,” yet Democrats are reluctant
omy. They knew it had happened to reduce top marginal rates, which
before in the 1920s when Andrew historically has been a surefire way
Mellon, Treasury secretary under to increase the tax burden carried
Presidents Harding and Coolidge, by “the rich.” Their “anger transla-
oversaw a series of tax cuts that tor” gets the best of them every
pushed the top marginal rate time.
fuel-tax hike. Even a 50% levy fee wouldn’t reduce hydrocarbon
wouldn’t be enough to drive hydro- use unless it were exorbitant.
carbon consumption downward; it The Baker-Shultz plan would
would only slow the rate of growth. ratchet up the fee should consumers
We know this because the market fail to behave. So far so good for the
has done the experiment. In the de- green camp, but the “dividend” hits
cade before the 2008 recession, a roadblock in not subsidizing non-
hydrocarbons and, worse, proposing
simultaneously to eliminate carbon
Rent seekers, virtue regulations that “are no longer nec-
essary” or are “too intrusive.” For
signalers and green Washington’s green lobbyists, those
lobbyists will love it. are fighting words.
And we’re talking politics. Once
Taxpayers not so much. the parties have agreed to the prin-
ciple—a new carbon tax, or “fee”—
the horse trading would begin. Split
when global economies were boom- the difference: a dividend here, a
ing, world-wide demand for oil in- subsidy there. Raise the fee to make
creased even as prices rose 200%. everyone happy.
Oil use dropped only when the econ- Even a compromise that yielded
omy collapsed. History shows tech- enough in subsidies to double the
nology yielding a long-run average green-tech growth “progress” of the
price for oil around $50 a barrel. past couple of decades would result
Thus it would take something like a in wind and solar supplying less
300% tax to reduce consumption. A than 10% of America’s energy. Even
carbon tax of, say, 10%, even if it
proved politically tolerable, would
with subsidies, it would be a strug-
gle to keep nuclear power and corn
only slow growth immeasurably in alcohol at 10% of America’s energy
hydrocarbon demand, thus failing in supply. Meanwhile, the absolute level
its central goal. of hydrocarbon consumption would
Third, the U.S. uses such enor- still go up, comprising a slightly
mous quantities of hydrocarbons smaller share of a much larger pie.
that even a small carbon tax would For rent-seekers, this would all be
add hundreds of billions of dollars to good. For virtue-signalers, it would
government coffers, stimulating a be sufficient. For green lobbyists, it
rent-seeking land rush. We can al- would be progress. For cynics—well,
ready see how the battle over this what do they care? Everyone would
cash gusher would shape up. benefit—except taxpayers. And since
One compromise, offered by for- energy is essential to everything
mer Secretaries of State James physical and economic flowing
Baker and George Shultz and their through society, a carbon tax would
Climate Leadership Council, claims finally enable Congress to achieve
to “unlock the political viability,” in nirvana, succinctly lampooned by
the words of two council members, President Reagan: If it moves, tax it.
by surreptitiously renaming the tax
a “fee.” They would then redistrib- Mr. Mills is a senior fellow at the
ute the proceeds to the citizenry as Manhattan Institute and a partner in
a “carbon dividend” to offset the Cottonwood Venture Partners, an en-
pain of higher daily costs. But the ergy-tech venture fund.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

A18 | Wednesday, January 9, 2019 THE WALL STREET JOURNAL.

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100% tuition coverage through the Starbucks College Achievement Plan enables
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BUSINESS & FINANCE
© 2019 Dow Jones & Company. All Rights Reserved.
S&P 2574.41 À 0.97% S&P FIN unch.
Ghosn Lawyer Rips Prosecution
Lead defense attorney
for the auto executive
claims long detention
isn’t warranted in case
BY SEAN MCLAIN
AND MEGUMI FUJIKAWA
TOKYO—Carlos Ghosn’s
lawyer took aim at Japanese
prosecutors Tuesday, arguing
that they rushed to judgment
and had no basis for their
lengthy detention of the auto
executive.
“We believe there is no evi-
dence of a crime,” said Mr.
Ghosn’s lead defense attorney,
Motonari Otsuru, at a news
conference after Mr. Ghosn’s
first statement in public since
AmEx
Executive
Suspended
Over Probe
BY ANNAMARIA ANDRIOTIS
American Express Co. sus-
pended a director in its foreign-
exchange department as part of
its continuing investigation into
pricing practices in the divi-
sion, according to people famil-
iar with the matter.
Foreign-exchange employees
were informed last month on a
call that the director, Taylor Si-
monin, was suspended, the
people said. Mr. Simonin over-
saw account-development staff
who help foreign-exchange
salespeople and assist clients
with currency conversions, they
said.
Mr. Simonin didn’t respond
to requests for comment. A
spokeswoman for AmEx said
the company’s investigation is
ongoing.
In July, The Wall Street
Journal, citing current and for-
mer employees, reported that
AmEx’s foreign-exchange inter-
national payments department
routinely lifted currency-con-
version rates without notifying
customers to boost revenue
and employee commissions.
The practice occurred until
early 2018 and dated to at least
2004, current and former em-
ployees told the Journal.
“Using our online portal,
customers see our offered for-
eign exchange rates before they
place an order,” said AmEx
spokeswoman Marina Norville.
“They’re given time to make a
no
decision, which also gives them
an opportunity to compare our
offered all-in rates with the
rates offered by other provid-
ers.”
AmEx’s foreign-exchange
business accounts for less than
half of a percentage point of
the company’s total revenue.
STREETWISE | By James Mackintosh
Global Markets Get in Sync
The great
decoupling of
the American
stock markets
from the rest
of the world
was the story last summer.
Was last month the start of
a great recoupling, where in-
vestors should bet on the
U.S. falling back in line with
global market performance?
The idea is simple, but
compelling. From the start of
2017 to the high of January
2018, it didn’t much matter
which countries’ stocks you
bought: The S&P 500
matched developed markets
in dollar terms, both rising
28%. Broader measures in-
cluding riskier emerging
markets did better, delivering
returns close to the riskier
Nasdaq Composite in the U.S.
It was a time when calling
your broker and just buying
anything worked perfectly.
The volatility crash of
February 2018 hit the U.S.
and other developed markets
PERSONAL TECHNOLOGY: SAMSUNG OFFERS A TV ONE TILE AT A TIME B4
S&P IT À 0.90%
his arrest on Nov. 19, during a
Tuesday court appearance.
By attacking key parts of
the prosecutors’ case publicly,
Mr. Otsuru said he hoped to
speed up Mr. Ghosn’s release
on bail. The lawyer said he ex-
pected formal charges soon
accusing Mr. Ghosn of breach
of trust, or abusing his execu-
tive position at Nissan Motor
Co. for private gain.
Typically defendants in
such cases who deny the
charges are held until the be-
ginning of the trial, Mr. Otsuru
said, adding that with the
mountain of evidence to be
gathered and translated into
Japanese, the trial could be at
least six months away.
The defense demanded
Tuesday’s court session to
While the stock market has wobbled in 2019, some investors are betting on a comeback in
small-caps, whose earnings are expected to be relatively strong. Stocks as a whole could
also get a boost if the Federal Reserve slows its pace of interest-rate increases.
5%
Sept. Oct.
0 her out of his estate planning.
–5
–10
ci on
er rs
40% Earnings growth, change from a year earlier*
Russell 2000
30
m e
20
m rp
10
0 0
3Q 2018 4Q
co Fo
*Data for fourth quarter 2018 and beyond are estimates. †Through Monday
Sources: SIX (index performance); Refinitiv (earnings growth); FactSet (P/E ratio); CME Group (fed-funds futures)
Small Caps Take on New Shine
BY MICHAEL WURSTHORN
Small-capitalization compa-
nies are projected to notch an-
other year of big profit gains,
potentially making their
n-
shares a haven for investors as
earnings at larger firms slow.
With companies including
Apple Inc. slashing revenue
expectations for the first quar-
ter, investors are on edge that
profits, the stock market’s en-
gine, will sag this year under
the weight of a trade spat be-
tween the U.S. and China, a
broader economic pullback
and the fading benefit of last
year’s tax-cut stimulus.
equally, too. But from mid-
May until the September
peak, American exceptional-
ism kicked in. The S&P 500
jumped 7.3% to a new high,
while the rest fell 3.2%. The
U.S. economy was boosted
by tax cuts while Europe
fought over Italy, car makers
in Germany and Japan strug-
gled and China suffered from
the trade fight.
The recoupling that fol-
lowed was initially just as
painful for the rest of the
developed world as for the
U.S., with both down about
13% by mid-December. Call
your broker, sell everything,
and do great.
But from mid-December on,
the panic was about the U.S.
economy. The S&P 500 lost al-
most 10% in the six trading
days before Christmas, while
the rest of the developed
world lost 3% and emerging
markets, just 2%. Since then,
U.S. stocks have leapt in a way
they haven’t in such a short
period for eight years but
* * * * THE WALL STREET JOURNAL.
DJ TRANS À 1.63% WSJ $ IDX À 0.23%
seek the reason for Mr.
Ghosn’s detention. The court
gave two: that he is a flight
risk and might destroy evi-
dence. Defendants can gener-
ally seek such a hearing only
once, so it is unlikely he will
appear in public again soon.
But the session gave Mr.
Ghosn a chance to make a 10-
minute statement defending
himself, followed by Mr. Ots-
uru’s comments. With the
counterattack, Mr. Otsuru laid
the groundwork for future bail
requests and made sure judges
knew what he sees as the
weakest parts of the case.
On Dec. 21, prosecutors said
they suspected Mr. Ghosn ex-
posed Nissan in October 2008
to a potential loss of ¥1.8 bil-
lion ($16.6 million) by tempo-
Nov. Dec.
on
us l,
al a
e
–15
S&P 500
1Q ’19 2Q 3Q 4Q
But small companies appear
to be a relative bright spot.
Analysts are expecting firms
in the Russell 2000 index of
small-capitalization companies
collectively to post double-
digit profit gains throughout
2019, according to financial-
data provider Refinitiv, far
outpacing the S&P 500. Rus-
sell 2000 companies tend to
have market capitalizations of
$300 million to $2 billion.
“We’re positive on small-
caps,” said Paul Lambert, a
portfolio manager at Wasatch
Advisors. “We’re finding qual-
ity [small-cap] companies
growing faster than mid- and
haven’t made up the ground
they lost compared with the
rest of the world in that pre-
Christmas week and a bit.
Lots of things were going
on, with politics, valuations,
tech excitement, Federal Re-
serve policy and economic
developments just a few of
the most important. But the
super-simple explanation is
that investors thought the
U.S. could ride out a global
downturn, helped by tax
cuts, then worried that per-
haps it couldn’t. Now they
are starting to think that
perhaps the global downturn
won’t be as bad as they
feared (and central banks
won’t be as unfriendly to in-
vestors as they feared).
Simple stories have the
advantage of being easy to
understand, but miss a lot of
nuance. There is further evi-
dence to support the tale,
though. S&P 500 stocks with
sizable sales abroad tended to
underperform from the Sep-
Please turn to page B10
LIBOR 3M 2.783
rarily transferring a personal
derivatives contract to the
company. Mr. Ghosn said
Tuesday he was facing huge
losses at the time because the
contract, meant to protect him
against a fall in the dollar
value of his yen-based salary
in Japan, backfired during the
global financial crisis.
Mr. Otsuru said prosecutors
had neglected to consider an
agreement among Mr. Ghosn,
Nissan and the bank on the
other side of the contract that
said any losses would be paid
by Mr. Ghosn. Prosecutors
have declined to comment be-
yond statements laying out
their charges and suspicions.
The defense lawyer also at-
tacked a second set of suspi-
cions contained in prosecu-
Jan.
Performance
since the end
of August
Dow
industrials
t 8.4%
S&P 500
t 11.3%
Russell
2000
–20
t 18.0%
–25
large-cap companies.”
The bruising selloff briefly
knocked valuation measures of
small companies to their low-
est level in six years and be-
low that of their bigger coun-
terparts in the S&P 500,
according to FactSet. That
could attract cost-conscious
investors, such as Mr. Lam-
bert, who believe the smaller
companies have been oversold
in recent weeks.
Expectations that the U.S.
economy will keep growing,
even if more slowly than last
year, are behind the upbeat
profit projections, analysts
said. Solid consumer confi-
INSIDE
UBER HOLDS
THE ROAD
ON IPO
OFFERINGS, B3
STOCKS JUMP
AS TRADE
TALKS ADVANCE
MARKETS, B11
Wednesday, January 9, 2019 | B1
NIKKEI (Midday) 20455.74 À 1.25%
tors’ Dec. 21 statement.
Prosecutors said a friend who
helped Mr. Ghosn get out of
the personal financial diffi-
culty, identified in court as
Saudi Arabian businessman
Khaled Al Juffali, later re-
ceived $14.7 million in pay-
ments from Nissan. Those pay-
ments were for the personal
benefit of Messrs. Ghosn and
Juffali, not Nissan’s benefit,
prosecutors have said.
Mr. Otsuru acknowledged
that Mr. Juffali arranged for a
¥3 billion letter of credit when
Mr. Ghosn took back the deriv-
atives contract from Nissan in
February 2009. But he said the
Please turn to page B2
 Heard on the Street: Nissan
needs a new Ghosn............. B12
Price/earnings ratio,
12-month forward†
18 times
17
S&P Small Cap 600
S&P 500
.
S&P Mid Cap 400
ly
16
15
14
13
12
2018 ’19
Fed-funds futures, implied odds of
at least one rate increase in 2019†
50%
40
30
20
10
Dec. Jan.
THE WALL STREET JOURNAL.
dence is helping smaller, do-
mestically focused companies,
while multinationals have to
contend with slowdowns in
Europe and Asia and a strong
U.S. dollar that makes convert-
ing foreign sales more costly.
Profits across the Russell
2000 are projected to grow by
nearly 16% in the first quarter
from a year earlier, building
on the 12.6% earnings growth
rate those companies were ex-
pected to hit in the final three
months of 2018, according to
Refinitiv. By the fourth quar-
ter, profits in the Russell 2000
are expected to balloon more
Please turn to page B10
Trade-In Offers Help
To Boost iPhone Sales
BY SARAH KROUSE
Wireless carriers have long
made smartphones look
cheaper to consumers by sub-
sidizing their cost. Now Apple
Inc. is wooing phone buyers,
offsetting the price of devices
with generous trade-in offers.
The company has rolled out
at least one new iPhone in
each of the past several years,
adding features that have
pushed the starting price of its
top-of-line model above $1,000.
With less fanfare, Apple also
has let U.S. customers trade in
older models for credit—a pro-
gram it is now hoping will help
mitigate the sticker shock.
Apple, which rarely dis-
counts its products, has re-
cently used the trade-in pro-
gram to incentivize purchases,
sweetening offers late last year
with an additional $100 credit.
The company also has been
more aggressive in its market-
ing of the program, promoting
the iPhone XR on its website
See more at WSJMarkets.com
Redstone,
Former
Companion
In Truce
BY KEACH HAGEY
Media mogul Sumner Red-
stone and his family have
agreed to settle their long-
running legal dispute with his
former live-in companion,
Manuela Herzer, less than a
week before one of the cases
was scheduled for trial in Cali-
fornia, according to people fa-
miliar with the matter.
As part of the settlement,
Ms. Herzer has agreed to pay
back $3.25 million of the tens
of millions of gifts that Mr.
Redstone gave her, the people
said. The wide-ranging agree-
ment ends all litigation be-
tween the two sides, who have
been battling in the courts
since the fall of 2015, when
Mr. Redstone kicked Ms. Her-
zer out of his Beverly Hills
mansion, replaced her as his
health-care agent and wrote
Ms. Herzer argued that Mr.
Redstone lacked the mental
capacity to make these deci-
sions, a charge that ended up
shaking the media empire that
he controlled to its very foun-
dations. Shortly after she got
a court-appointed doctor to
examine Mr. Redstone in early
2016, he stepped down as the
executive chairman of the two
companies he controls, CBS
Corp. and Viacom Inc.
The burying of this hatchet
will likely quiet lingering
questions about the legiti-
macy of the rise to power of
Mr. Redstone’s daughter,
Shari, who Ms. Herzer has al-
leged has been manipulating
her father since 2015 in order
to take over his media empire
against his will. Ms. Red-
stone, through her attorneys,
has denied the allegations.
Mr. Redstone and his family
tried to claw back the millions
of dollars in gifts that he had
given Ms. Herzer during the
years she and another compan-
ion, Sydney Holland, had lived
with him in his mansion, alleg-
ing the two women had abused
him and manipulated him into
giving Ms. Holland and Ms.
Herzer $75 million each. Ms.
Holland settled separate litiga-
tion with the Redstones last
year. Ms. Herzer, meanwhile,
continued to fight on multiple
fronts, alleging that it wasn’t
Mr. Redstone, but rather his
daughter, who was truly driv-
ing the legal fight against her.
Ms. Redstone has denied
the allegations through her
lawyers.
At one point, Ms. Herzer
went so far as to file a federal
RICO case—the kind designed
for snaring mobsters—argu-
ing that Ms. Redstone had en-
gaged in a conspiracy with
her father’s nurses to oust
Please turn to page B2
and in emails to customers at a
price of $449 with trade-in of
an older phone rather than at
its starting retail price of $749.
Apple Chief Executive Tim
Cook said last week that mak-
ing it easier for iPhone custom-
ers to trade in their phones di-
rectly with the technology
giant and more easily transfer
their data to new devices were
part of its efforts sell more
smartphones after slower sales
in China and elsewhere led to a
rare cut to the company’s quar-
terly revenue forecast.
Apple often gives consum-
ers more for their old iPhones
than the four major U.S. wire-
less carriers, according to a
Wall Street Journal analysis of
estimated monthly trade-in
value data from HYLA Mobile
Inc., particularly older models.
HYLA works with telecom
companies and big-box stores
on such programs.
With the iPhone 6, for exam-
ple, Apple has offered a higher
Please turn to page B4
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B2 | Wednesday, January 9, 2019
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A H
Activision Blizzard......B2
Airbus..........................B2
Alphabet.........B3,B4,B12
Amazon.com........B4,B12
American Express.......B1
Apple..B1,B3,B4,B11,B12
AT&T............................B4
B IBM............................B11
BASF......................A6,A8
Benchmark Capital ... B12
Bluebird Bio................A3
Boeing..................B2,B11
BP..............................B11
Brixmor Property........B6
C J.C. Penney..................B6
Caterpillar ................. B11
CBS..............................B1
Crown Point................B6
Cushman & WakefieldB5
D MetLife......................B10
Devcann.......................A9
DowDuPont.................A6
E Verizon........................B4
ESL Investments........B6
F Nissan Motor . B1,B2,B12
Facebook......................B4
INDEX TO PEOPLE
B-C
Berardi, Alessia ........ B10
Cook, Tim....................B4
D-E
Dasso, Kevin...............B3
Dehn, Jan..................B10
Dunne, Ronan ............. B4
Edelstein, Mark .......... B6
G Kondo, Go....................B2
Gallagher, Thomas....B10
Ghosn, Carlos.B1,B2,B12
Goudis, Richard...........B2
Greenspan, Elyse......B10
Gunn, Campbell.........B12
H Lemler, Gregg ............. B3
Heckman, Dan...........B11
Herzer, Manuela ......... B1
Hogan, Patrick ............ B3
Holland, Sydney..........B1
Herbalife’s CEO
Resigns Position
Herbalife Nutrition Ltd.’s
chief executive has resigned af-
ter the company said it discov-
ered comments he made before
becoming CEO that were incon-
sistent with its standards.
The nutritional-supplement
company said CEO Richard
Goudis, who assumed the post
in June 2017, resigned Tuesday.
Redstones
In Truce on
Litigation
Continued from the prior page
her from the mansion and re-
move her from Mr. Redstone’s
will. The bulk of that case
was thrown out last year.
For years, Mr. Redstone, 95
years old, has had such diffi-
culty speaking that he has had
to communicate with an iPad
loaded with snippets of his
voice from past interviews,
connected to buttons for
“yes,” “no” and “f— you.”
His legal team has resisted ef-
forts by Ms. Herzer’s lawyers to
have him examined by a doctor,
refusing to have him deposed in
the litigation that he himself
brought against Ms. Herzer. In
December, at the request of Mr.
Redstone’s grandson, Tyler Ko-
rff—whom Ms. Herzer has ac-
cused in legal documents of be-
ing part of the conspiracy to
deprive her of her inheritance—
a California judge ordered that
Mr. Redstone be placed under
court-appointed guardianship
due to his difficulty speaking.
“This settlement is a tre-
mendous outcome for our cli-
ent, Tyler Korff, as well as his
family,” said Vivian L. Thoreen,
attorney at Holland & Knight,
which represented Mr. Korff.
Ms. Herzer’s attorney did
not respond to requests for
comment.
Netflix Boosts Pay for New Finance Chief
BY TATYANA SHUMSKY
Netflix Inc.’s new finance
chief will make almost twice
as much as its former chief fi-
nancial officer.
Spencer Neumann, who
joined the video streaming gi-
ant as finance chief on Jan. 7,
will receive $5 million in sal-
ary and $5 million in annual
stock-option grants, according
to a filing with regulators. Mr.
Neumann also will receive a
one-time payment of $1.7 mil-
lion.
That is a big step up from
the compensation of former
CFO David Wells, who was set
to receive an annual salary of
$2.8 million and annual stock
options worth $2.45 million in
2018, according to a Netflix’s
proxy statement.
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
Nvidia........................B12
Henry Schein .............. A2 Pearland Economic ..... B6
Herbalife Nutrition.....B2 PG&E ........................... B3
Holland & Knight........B2 R
Honda Motor.............B12 Renault......................B12
Hony Capital ............. B12 Royal Dutch Shell.....B11
Hulu.............................B4 S
I Samsung.........B3,B4,B11
Sears......................A1,B6
iPath S&P 500 VIX Sempra Energy ......... B11
Short-Term Futures Simon Property...........B6
Exchange-Traded Note SoftBank..............B3,B12
...................................B12 Sony.............................B4
IWG ........................... B12 Sprint .......................... B4
J-L Syngenta.....................A6
T-U
GUILLAUME HORCAJUELO/EPA-EFE/REX/SHUTTERSTOCK
LG ................................ B4 Tellurian .................... B11
Lyft..............................B3 Tilray...........................A9
T-Mobile US................B4
M
Total .......................... B11
Macy's.........................B6 Toyota Motor............B12
21st Century Fox........B4
Microsoft...................B12 Uber Technologies ...... B3
Mitsubishi.................B12 V-W
Modern Land (China) . B6
N-P Viacom.........................B1
Netflix....................B2,B4 Volkswagen.................A8
Walt Disney................B4
Novatek.....................B11 WeWork...............B3,B12
An Airbus A330 in an assembly plant near Toulouse, France. Airbus and Boeing are both straining to boost output to meet demand.
J Martin, Thomas........B11
N-P
Boeing and Airbus Miss Jet Targets
Jeffery, Benjamin.....B11
Johnson, Michael........B2 Neumann, Spencer ..... B2
K Papamarkakis, George
Kaiser, Stuart ........... B12 ...................................B10
Kampler, Nina.............B6 Piershale, John.........B11
Kandarian, Steven....B10
BY DOUG CAMERON growing carriers in Asia.
Q-R AND ROBERT WALL Flying Higher Deliveries rather than or-
Khalaf, Michel...........B10
Qu, Qing....................B11 ders have become the most
Khosrowshahi, Dara ... B3 Airbus and Boeing have been steadily boosting output to industry
Redstone, Shari..........B1
Boeing Co. and Airbus SE closely watched measure of
Redstone, Sumner......B1 records amid strong demand for global air travel.
Korff, Tyler..................B2 failed to deliver all the jets the aerospace rivals’ perfor-
Rosenfeld, Edward....B10
L they had once planned to make 800 airliner deliveries mance, as they work through
S-T
Lambert, Paul ............. B1 in 2018, showing how produc- order books for more than
Lampert, Edward...A1,B6 Saikawa, Hiroto........B12
tion problems are holding back Airbus Boeing 13,000 jets due for delivery
Lardy, Nicholas ......... B10 Simonin, Taylor...........B1 600
Tchilinguirian, Harry.B11 the two top plane makers as over more than seven years.
Leschly, Nick...............A3 Thoreen, Vivian L. ...... B2 demand for airliners soars. But the production pressure
Lewis, Michael............B3 W-Z Boeing said Tuesday that it 400 on Boeing and Airbus is show-
M Wells, David................B2 delivered 806 jetliners for the ing little sign of easing. Boeing
.
Martin, Rob...............B10 Zang, Min..................B11 year. That was a record, but logged 893 new orders in 2018,
ly
fell shy of the 810 to 815 jets it 200 adding to already multiyear
had aimed to deliver. Short- wait periods for its most pop-
Michael Johnson, who
served as CEO from 2003 until on ages of fuselages, engines and
other parts have slowed Boe-
0
ular aircraft. Airbus struck
several big deals in December,
Mr. Goudis’s tenure started, will
take over on an interim basis,
ing’s output since summer. The
plane maker last missed deliv-
2000 ’02
Source: the companies
’04 ’06 ’08 ’10 ’12 ’14 ’16
THE WALL STREET JOURNAL.
’18 suggesting its backlog of or-
ders is equivalent to several
Herbalife said. The Los Angeles ery guidance in 2011. years’ worth of production.
company said Mr. Goudis’s de- Airbus said Tuesday that it tion issues. ended up 3.7%. Airbus and Boeing already
us l,
parture relates to comments he delivered 800 planes in 2018, Shares of both companies Together, the two aerospace have announced plans to boost
made that were contrary to also a company record. The to- rose Tuesday amid the news giants delivered a combined output of their best-selling
al a
e
Herbalife’s expense-related pol- tal met Airbus’s revised goal that the production shortfall 1,608 planes in 2018, compared single-aisle jets this year. Boe-
icies and business practices and after the company in October wasn’t more severe, with ana- with 1,481 a year earlier. That ing will increase monthly pro-
inconsistent with its culture. scaled back its production lysts’ consensus for Boeing to is up sharply from 1,000 deliv- duction of its 737 family to 57
ci on
Mr. Goudis didn’t respond to plans for the year by about 20 deliver 803 planes. Boeing’s eries in 2011, reflecting the from 52, with Airbus raising
requests for comment. aircraft because of supplier shares closed 3.8% higher on surging demand for air travel, output of its A320 family to 60
—Patrick Thomas problems and internal produc- Tuesday and Airbus shares particularly among rapidly from around 52.
er rs
Business Approach
To Defense in Court
Mr. Ghosn has been in the
Tokyo Detention House since
Nov. 19. He initially was placed
m e
in a room of three mats and
was sleeping on a futon, but
TOKYO—His cheeks are was moved to a larger room
m rp
sunken and his once-robust with a bed, the lawyer said.
frame has turned gaunt, but af- Mr. Ghosn has had a long
ter 50 days in jail, Carlos Ghosn list of books on history and
is still the hyperrational, re- ideas brought to him by visi-
sults-oriented engineer who tors, and spends much of his
co Fo
made it to the top of the auto spare time reading, according to
industry. This time, instead of a person with the Ghosn family.
KIMIMASA MAYAMA/EPA/SHUTTERSTOCK
higher profits, he seeks his own Japanese law permits pros-
freedom and vindication. ecutors to detain suspects for
That is the picture painted weeks and sometimes months
by his lawyer on Tuesday, after before trial for interrogations
Mr. Ghosn made his first public without a lawyer present.
appearance since his arrest and The defense team said a
proclaimed his innocence in a typical day begins with morn-
Tokyo court. The former Nissan ing visits by Mr. Ghosn’s law-
Motor Co. chairman spends little yers and consular officials from
time obsessing over the former Brazil, Lebanon or France, na-
Pedestrians in Tokyo viewed a courtroom sketch of Carlos Ghosn on a big screen on Tuesday. colleagues who gave informa- tions where he holds citizen-
tion about his alleged wrongdo- ship. The meetings with the
n-
Lawyer cases by failing to get testi-
mony from Mr. Juffali. “Usually
in such cases, a hearing will be
company released a statement
backing up Mr. Ghosn’s ver-
sion of events.
ing to prosecutors, and focuses
in meetings with his defense
team on how to win the case,
defense lawyers last about 2½
hours, Mr. Otsuru said.
In the afternoon, prosecu-
For Ghosn conducted with the party that So far, Mr. Ghosn has been lawyer Motonari Otsuru said. tors begin their daily grilling
no
received payments to cau- formally charged with one of- “He explains to us what has with an English-to-Japanese
tiously determine whether fense: understating his com- been happening in interroga- translator present, sometimes
Hits Back there was a reason for the pay-
ments,” Mr. Otsuru said.
The lawyer released a state-
pensation in Nissan’s financial
statements by tens of millions
of dollars over five years.
tions—‘I’m being asked this, what
advice do you have?’—and that is
all he demands of us. There are
continuing into the evening. Mr.
Otsuru said prosecutors have
pressed Mr. Ghosn to sign
ment he said was made by Mr. Mr. Ghosn said Tuesday he almost no occasions where he statements summarizing his
Continued from the prior page Juffali through an intermedi- kept records describing what vents about his own feelings. testimony in Japanese, a lan-
payments Mr. Juffali later re- ary in which the Saudi busi- he viewed as “market compen- It’s all super-calm and rational,” guage the executive doesn’t
ceived were for concrete ser- nessman said he was paid by sation,” but he said there was Mr. Otsuru said at a news con- read. The lawyer said he didn’t
vices performed in the Middle Nissan for assisting with its never a binding agreement ference. Pool reporters and oth- think that was a problem be-
East to help Nissan there. business in the Middle East. with Nissan requiring the ers in the courtroom Tuesday cause each sentence was trans-
Mr. Otsuru formerly led the Any allegations of a personal company to pay him that said the changes in Mr. Ghosn’s lated orally for Mr. Ghosn.
special investigation section of quid pro quo involving Mr. amount. Prosecutors will have appearance were immediately A lawyer on the defense
the Tokyo prosecutors’ office— Juffali’s assistance with a let- to show that Mr. Ghosn’s lack visible as he was brought to the team said Mr. Ghosn has only
the same section now going af- ter of credit and the payments of disclosure was a material courtroom in handcuffs. Still, he signed statements reflecting
ter Mr. Ghosn. He accused his from Nissan were completely omission that harmed inves- spoke in a clear, strong voice his belief that he is innocent.
old colleagues of not following unfounded, the statement said. tors, said another one of Mr. and kept composed. —Peter Landers
the playbook in breach-of-trust Separately, Mr. Juffali’s Ghosn’s lawyers, Go Kondo.
For 2019, Mr. Wells was ex- employer Activision Blizzard to the company’s financial re- WE CONGRATULATE
pected to receive $3.5 million Inc. porting or disclosure proce-
in salary and $2.8 million in The Santa Monica, Calif., dures. Activision in a filing OUR NEW PARTNER
stock options, according to a videogame company gave Mr. said he “violated his legal obli-
filing. Neumann annual compensa- gations to the company,” but
Mr. Wells in August an- tion in 2017 worth $9.5 mil- wasn’t more specific.
nounced plans to step down Mr. Neumann didn’t imme-
from the finance post. diately respond to messages Michael J. Piper
The streaming giant over- seeking comment.
hauled its executive-compen-
He will get $5 million Lawyers and recruiters said
sation practices in late 2017 in in salary and the that such termination means
response to changes in the that Mr. Neumann could have
U.S. federal tax law. As part of
same value in annual forfeited any earned but not-
the changes, the company stock-option grants. yet-vested compensation and
eliminated performance-based any special severance arrange-
bonuses for its executives, ments.
paying all cash compensation It is unclear how much sal-
as salary. lion, including a base salary of ary Mr. Neumann will elect to
A Netflix spokesman de- $503,461, cash bonuses of receive at Netflix, because its
clined to comment. about $2 million and equity employees have the option to
For Mr. Neumann, the move awards valued at about $7 mil- allocate any amount of their
to Netflix is only a slight in- lion, according to a filing. salary to be paid in the form Sandler O’Neill + Partners, L.P.
crease to the compensation Activision terminated Mr. of stock options, according to
package he received at former Neumann for cause unrelated company filings.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Uber Says Market Turmoil Won’t Stop IPO
‘We’ll do it when we’re
ready,’ company CEO
notes, adding he is
keeping an eye on Lyft
BY NEWLEY PURNELL
Uber Technologies Inc.
Chief Executive Dara Khos-
rowshahi said market turbu-
lence in the U.S. would be un-
likely to affect the ride-hailing
titan’s plans for a public list-
ing.
Any company would prefer
a “positive, stable market”
when going public, but Uber is
large and flexible enough to
list in almost any market con-
ditions, Mr. Khosrowshahi
said in an interview Tuesday
in Singapore. “We’ll do it
when we’re ready, and, hope-
fully, the markets will be in a
good state."
Mr. Khosrowshahi said the
startup is on track internally
to list this year, having previ-
ously said he was looking to
the second half of 2019 for
what would likely be one of
PG&E’s
Electric
Unit Chief
To Leave
BY KATHERINE BLUNT
PG&E Corp.’s top executive
overseeing the utility’s electric
division is leaving the company
amid rising concerns about its
financial health and safety prac-
tices following the recent Cali-
fornia wildfires.
Patrick Hogan, senior vice
president of the electric opera-
tions unit for Pacific Gas and
Electric Co., will be replaced
immediately by Michael Lewis,
another executive within the
electric division, the company
said in a regulatory filing Tues-
day. Mr. Hogan, who has held
that role since 2016, will retire
from the company by the end of
the month.
The disclosure came hours
after S&P Global Ratings re-
voked PG&E’s investment-grade
rating late Monday, saying it
would keep the company on
watch for further downgrade.
The credit-ratings firm cited
PG&E’s challenges in regaining
stakeholders’ trust amid politi-
cal and regulatory scrutiny.
“These conditions may signifi-
cantly limit the company’s op-
tions, including its ability to
consistently finance or safely
operate its businesses,” S&P
said in a statement.
PG&E shares closed more
than 7% lower Tuesday on con-
cerns that the company could be
forced to seek bankruptcy pro-
tection because of billions of
dollars in wildfire-related liabili-
ties.
no
Two other executives in the
electric division, Kevin Dasso
and Gregg Lemler, also will re-
tire by the end of the month, a
PG&E spokesman said Tuesday.
Mr. Dasso serves as vice presi-
dent of electric asset manage-
ment, while Mr. Lemler serves
as vice president of electric
transmission operations.
California’s largest utility—
already stressed due to poten-
tial liabilities from 2017 wild-
fires linked to its equipment—is
being pressed further by poten-
tial exposure to November’s
Camp Fire, the deadliest in Cali-
fornia history.
State investigators haven’t
determined whether PG&E
played a role in the fire, but the
company has disclosed that
some of its equipment malfunc-
tioned in the area around the
time the fire started. Analysts
estimate that the utility could
face tens of billions of dollars in
liability costs if its equipment is
found to have contributed to the
Camp Fire. Investigators have
already linked PG&E’s equip-
ment to 17 wildfires during 2017.
The 2017 and 2018 fires have
triggered dozens of lawsuits
from homeowners, insurers and
others alleging that PG&E was
responsible for damages and
should pay plaintiffs as a result.
Mr. Hogan oversaw the ex-
pansion of PG&E’s wildfire-prep-
aration efforts as a protracted
drought killed millions of trees
in Northern California, increas-
ing the risk of fire within the
company’s 70,000-mile service
territory.
—Chris Wack
contributed to this article.
* *
the year’s biggest public of-
ferings.
The company is also keep-
ing an eye on U.S. rival Lyft
Inc., which has taken steps for
an initial public offering pos-
sibly this year. The two ride-
sharing competitors filed con-
fidential paperwork for an IPO
with the U.S. Securities and
Exchange Commission on the
same day last month.
“The good news is that
we’ve got a strong balance
sheet so we don’t need to go
public this year,” Mr. Khos-
rowshahi said. If it doesn’t
happen, he said, “I’d be disap-
pointed and I think our share-
holders would be disap-
pointed but the company
would be just fine."
The San Francisco com-
pany’s banking advisers think
Uber could go public at a val-
uation of $120 billion, The
Wall Street Journal has re-
ported. Its most recent pri-
vate valuation was $76 billion,
when the company sold a
roughly $500 million stake to
Toyota Motor Corp.
Tech stocks have been hard
WeWork Gets $2 Billion More From SoftBank
BY ALLISON PRANG
AND ELIOT BROWN
WeWork Cos. secured an
additional $2 billion from
SoftBank Group Corp., a
smaller amount than the Japa-
nese investor had previously
planned to put into the
shared-office-space provider.
In addition, WeWork said it
is rebranding itself as the We
us l,
Company, comprising three
different business lines: office
al a
e
space, a small residential arm
called WeLive and a nascent
education arm called WeGrow.
ci on
The New York-based startup
will remain incorporated as
WeWork.
SoftBank had considered in-
vesting as much as $16 billion
er rs
in WeWork but pared the plan
amid turbulence in financial
markets and opposition from
investment partners, The Wall
m e
Street Journal earlier re-
ported.
WeWork said on Tuesday
m rp
that it had received $6 billion
from SoftBank, including a
previously announced commit-
ment of $4 billion. The Japa-
nese company’s total invest-
co Fo
ment in WeWork now stands
at about $10 billion.
Of the additional $2 billion,
half would go toward business
expansion and value the
startup at about $47 billion.
The other $1 billion would be
used to buy shares from We-
n-
WE CONGRATULATE OUR
NEW MANAGING DIRECTORS
AND DIRECTORS
MANAGING DIRECTORS
Paul J. Barrese
John Bakewell Barnidge
Matt C. Brunner
Eric Ferdinand
Joseph Fiorito
Amanda Gilman
Declan O’ Callaghan
West H Paar
Greg J. Samuelsen
Brie St. Laurent
DIRECTORS
Jay Colon
Max Kaftal
Crispin Love
Guy Thompson
AJ Wislow
BUSINESS NEWS
CEO Dara Khosrowshahi said Tuesday he would be disappointed if
the listing doesn’t happen this year.
hit amid worries about the
health of the global economy
and trade tensions between
the U.S. and China. Apple Inc.
slashed its quarterly revenue
forecast last week for the first
time in more than 15 years
amid economic malaise in
China, while Samsung Elec-
tronics Co. said Tuesday that
it expects its fourth-quarter
operating profit to decline
on
The Japanese company had considered investing as $16 billion in WeWork but pared it back.
Work employees and investors
at a valuation of around $23
billion, people familiar with
the deal have said, giving the
company a blended valuation
of around $36 billion.
Discounts are customary for
buying shares from investors or
employees because the stock
can’t be resold easily and the
shares often have fewer protec-
tions for owners than those
purchased directly from the
company.
SoftBank in 2017 invested
$4.4 billion in WeWork.
Sandler O’Neill + Partners, L.P.
Wednesday, January 9, 2019 | B3
or Samsung is. These are in- ply of drivers.
credibly well established com- The Journal reported Mon-
panies.” day that Uber-backer Soft-
Uber is focused on building Bank Group Corp. has
out its various transportation scrapped a planned $16 billion
services, such as bikes and investment in shared-office-
EDWIN KOO FOR THE WALL STREET JOURNAL
scooters, and on its fast-grow- space provider WeWork Cos.,
ing UberEats food-delivery opting instead for a smaller
service across markets such deal of about $2 billion. Asked
as Japan and India, he said. about the move, Mr. Khosrow-
U.S. stocks closed out last shahi said, “A bit more capital
year with their steepest an- discipline in the startup
nual declines since the finan- space, in the technology
cial crisis. Mr. Khosrowshahi space, I think is probably on
said the company hasn’t seen balance going to be a good
market volatility have a nega- thing.”
tive effect on customer behav- Since replacing Uber co-
ior. “Revenues are up, and up founder Travis Kalanick as
at healthy rates,” he said. CEO, Mr. Khosrowshahi has
“I think what you’d find in sought to win back investors,
a recessionary market is that drivers and riders following a
29%. pricing would be pressured series of scandals, including
As fully developed product but unit volumes would con- claims of workplace sexual ha-
markets tend to be more sub- tinue to be very healthy,” he rassment and allegations of
ject to economic cycles, Uber said. theft of trade secrets from
should face less of a challenge While a recession could self-driving vehicle rival Al-
from economic conditions, Mr. push prices down, an eco- phabet Inc. Taking Uber pub-
Khosrowshahi said. “I view us nomic downturn could make it lic has been one of his tasks,
as a company that’s still very, easier for Uber to lure drivers, and in December Uber filed its
very young and has a long Mr. Khosrowshahi said. He S-1 paperwork for a listing
way to go and therefore hope- pointed to Brazil, where he with the SEC.
fully won’t be as subject to said economic troubles had —Greg Bensinger
cycles the way, let’s say, Apple contributed to an ample sup- contributed to this article.
WeFundraise
.
WeWork's valuation is soaring
as it raises billions of dollars.
ly
$50 billion
Valuation
Cumulative fundraising
40
30
20
KEITH BEDFORD/BLOOMBERG NEWS
10
0
2013 ’15 ’19
Source: Dow Jones VentureSource
THE WALL STREET JOURNAL.
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THING THEY
DIDN’T SEE
COMING.
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B4 | Wednesday, January 9, 2019 * *** THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

PERSONAL TECHNOLOGY | By David Pierce

A TV Revolution Is Built One Tile at a Time

One of the You won’t be able to buy powered so it can have similar In some ways, MicroLED
most exciting the Wall for a while—and image quality to OLED, but may be even better for small
things I’ve even then, it’ll likely be af- MicroLED’s inorganic material screens like phones or smart-
seen at this fordable only to people who won’t degrade over time or watches, or future devices like
year’s Con- own several yachts. Mean- cause screen burn-in. Mi- VR headsets and AR glasses.
sumer Elec- while, Samsung intends to croLED is smaller, thinner and Your phone’s display accounts

EMILY PRAPUOLENIS/THE WALL STREET JOURNAL

tronic Show was a man put- sell a 75-inch 4K TV based brighter, too, so its displays for a huge amount of its bat-
ting a TV together. It looked on the same technology can be even flatter and less tery drain. Who wouldn’t want
more like he was hanging called MicroLED. It’s the big- power-hungry. a screen that uses less power,
photos. He’d grab square gest change coming to “MicroLEDs are the most looks better and can change
tiles off a pile, attach them screens in a long time. interesting and exciting new its shape and size?
to the wall, then screw a display technology since the MicroLED is a manufactur-
small plate up top. A mo- launch of OLED display prod- ing challenge: Your Samsung
ment later, the surface would Painting the Picture ucts beginning in 2010,” said Wall would require careful
spring to life. He’d attach an- For years, LCD (aka liquid Ray Soneira, chief executive of placement of millions of tiny
other, and it would extend crystal display) has been the DisplayMate, a display-tech- subpixels, each smaller than a
the picture. He built a TV set dominant TV tech. But LCD nology research company. human hair. That’s expensive,
one tile at a time, and it has a downside: Its pixels difficult and slow—three
looked awesome. basically sit in a sheet of MicroLED tiles fit together for a TV as large or small as needed. words nobody likes coming off
This was a prototype of a glass and can’t be seen well Make It So the factory line.
new Samsung modular TV unless there is a big light, or market. Rather than needing contrast. But OLED relies on Samsung may be hitting the Still, MicroLED is the dis-
project. At CES, the company many little lights, shining light to hit every pixel or organic compounds that de- market soonest with the first play technology to watch in
displayed screens as small as through it. Without the light, clusters of pixels, the pixels grade over time and can living-room-targeted set—but coming years. When manufac-
a magazine cover and as your TV would look more can light up individually. cause screen problems. others are working with the turing ramps up, and costs go
large as 219 inches—called, like an Amazon Kindle. Back- That’s good for power MicroLED is, in theory, the technology. TV giants LG and down, the idea of dotting ev-
aptly enough, the Wall. Sam- lighting, though, means dark consumption and great for best of all worlds. A MicroLED Sony have shown off Mi- ery surface with pixels won’t
sung’s goal is to let custom- colors can only be so dark. picture quality: Any pixel screen is made up of massive croLED displays. In 2014, Ap- sound crazy. William Shake-
ers choose the exact size and More recently, OLED (aka that’s supposed to be black numbers of teeny-tiny ver- ple acquired a company called speare wrote, “All the world’s
shape of their own TV, as- organic light emitting diode) just stays off, which means sions of the LEDs you already LuxVue that also was working a stage.” More likely, someday
sembled like Lego bricks. has hit the high end of the deeper colors and better know and love. Each is self- on MicroLED displays. all the world will be a screen.

Hulu Posts Trade-Ins iPhones even longer than other

smartphone owners, according
to HYLA. While consumers

48% Jump Boost Sales waited an average of 2.83

years to upgrade in the third
quarter, iPhones traded in dur-

In Users Of iPhones ing the period were an average

.
of 2.92 years old.

ly
Apple’s trade-in and recy-

For Year cling program began as an on-

SPENCER PLATT/GETTY IMAGES

Continued from page B1 line-only option in 2011 and

on trade-in value than Verizon
Communications Inc., AT&T
BY ALLISON PRANG Inc., Sprint Corp. and T-Mobile
US Inc. in most months be-
Hulu had more than 25 mil- tween September 2015 and the
us l,
has since evolved into what is
now called Apple GiveBack in
stores or on the web. It now
offers trade-in credit for Ap-
ple’s own products and rival

lion subscribers at the end of end of 2018, the most recent devices in addition to the recy-
2018, up by eight million from HYLA data show. For the iPhone cling option for phones not eli-
al a
e
the year earlier, the streaming Apple has added features to its iPhones, pushing the starting price of its top model above $1,000. SE, Apple has offered a higher gible for credit.
service announced Tuesday. trade-in value than all four ma- “Why not put it toward a
Hulu said its subscriber total jor carriers each month since new iPhone?” an online mes-
ci on

$350
Estimated trade-in Apple has been offering people more for their
rose 48% on a year-over-year value for the October 2016. Offers fluctuate sage says after spitting out an
basis. old iPhones than major carriers, but Americans by model and storage space. estimated trade-in value for a
iPhone 6
Its subscriber count includes are waiting longer to upgrade their devices. To date, however, that rival device based on re-
customers for both its sub- trade-in pricing edge hasn’t sponses to questions about its
scription service and live TV been large or well-enough make and quality.
er rs

offerings. Average number of years before known to consumers to stop an Attractive trade-in offers
Despite Hulu’s growth, its 300 an iPhone owner upgrades iPhone sales slowdown. give phone sellers a boost be-
subscriber count is still much 3 years Trade-in programs face yond the device sale. Winning
smaller compared with rival some headwinds from custom- a purchase from a customer
m e

Netflix Inc. As of Sept. 30, Net- ers who aren’t swayed by the looking to trade in a phone
flix had about 137.1 million discount, pass along old de- means Apple sits at the center
streaming members world- 2 vices to other family members of the consumer relationship,
m rp

wide, according to the com- 250 or see upgrades as a hassle rather than a carrier, getting
pany’s recent quarterly filing. when their phone continues to an advantage on sales of acces-
That number rose 25% from the 1 function well. sories and insurance.
comparable quarter in 2017 Beth Cole, a real-estate agent That can keep customers
when Netflix had 109.2 million in Palm Beach, Fla., upgraded from going to their carrier’s
co Fo

members. her iPhone 5s to an iPhone 8 retail store, where sales associ-

0
Walt Disney Co., one of 200 Plus late last year. Ms. Cole said ates have an opportunity to
Hulu’s largest investors, has a 3Q 1Q 3Q 1Q 3Q she had problems transferring reup their contracts.
2016 ’17 ’18 all of her contacts to the new Still, the majority of new
phone and spent several hours devices—about three-quar-
For Hulu’s investors, at Verizon and Apple stores to
resolve the issue.
ters—are currently bought
through carriers, said Biju Nair,
its rising popularity 150
“I’m going to have this 8 chief executive of HYLA. He es-
comes with a higher Plus until I die,” she said.
Device makers like Apple
timates that 62% of every
trade-in dollar is spent in store
price tag. have been hurt in recent years on either devices, chargers,
by changes to the structure of cases or other accessories and
wireless phone contracts. Car- services.
riers have offered less-gener- Bill Hampton, 72 years old,
n-

30% stake in the streaming ser- 100 ous promotions and separated upgraded from an iPhone SE to
vice. Disney would also get 21st the cost of a phone from a cus- an iPhone X through his em-
Century Fox’s 30% stake in Verizon tomer’s monthly service fees, ployer in December and said
Hulu if Disney’s deal to pur- leading to the demise of the that while he enjoys the new
Apple
no

chase certain assets from 21st two-year ritual of upgrading phone’s faster performance and
Century Fox closes. Sprint devices and service contracts better speakers, he kept his old
For Hulu’s investors, such as 50 AT&T simultaneously. device because the trade-in
Disney, Hulu’s growing popu- That change has made it value on offer was limited.
larity comes with a higher T-Mobile easier for carriers to hold on “It’s sitting on my shelf in a
price tag. For its 2018 fiscal to customers, but tougher for growing collection of old
year that ended this past Sep- device makers because many iPhones,” said Mr. Hampton,
tember, Disney reported a $102 consumers would rather stick the editor in chief of newslet-
million equity loss from com- 0 with their old phones and en- ter AutoBeat Daily. “I’m oblivi-
panies in which it has invest- 2015 2016 2017 2018
joy lower monthly expenses ous to all these offers.”
ments, which includes Hulu, once their devices are paid off. —Tripp Mickle
compared with equity income Source: HYLA Mobile THE WALL STREET JOURNAL. Apple customers keep their contributed to this article.
of $320 million for the compa-
rable quarter a year earlier, ac-
cording to the company’s an-
nual filing. The conglomerate
partly attributed that decline
Verizon Wireless Exceeds Apple Gives Cook 22% Raise
to increased losses at the
streaming service.
Subscriber Expectations BY TRIPP MICKLE decline in iPhone sales, partic- The median annual pay of
Hulu’s higher losses were BY SARAH KROUSE in participation” that led to new ularly in China, had hurt re- Apple employees was $55,426.
because of increased labor, pro- older and younger subscribers. Apple Inc. rewarded Chief sults. That is far below the $240,430
gramming and marketing costs, Verizon Communications Citi analysts expected the Executive Tim Cook and other Revenue soared to a record at Facebook Inc. and $197,000
but subscription and advertis- Inc. continued to expand its base largest U.S. carrier by subscrib- top executives with a big boost last year after Apple raised the at Alphabet Inc. Like Ama-
ing revenue both rose, helping of wireless phone subscribers in ers to add 400,000 net new in compensation for fiscal 2018, price of its flagship iPhone by zon.com Inc., which reported
to curb the decline, Disney said the final quarter of 2018, a pe- phone subscribers during the when the iPhone maker blew 50% to nearly $1,000. median annual pay of roughly
in its filing. riod in which smartphone mak- period. Verizon shares rose 2.9% past annual sales and profit That move helped lift iPhone $30,000 because of a vast num-
Hulu said its advertising rev- ers Apple Inc. and Samsung on Tuesday. goals but faced slowing mo- sales 18% to $166.7 billion, even ber of warehouse employees,
enue for 2018 was almost $1.5 Electronics Co. have warned in- Verizon’s additions under- mentum for its most popular as the number of devices it sold Apple’s median is suppressed
billion, an increase of more vestors they would fall short of score the diverging fortunes of device. was flat with the prior year. It by a huge workforce that staffs
than 45%. The company said expectations. wireless carriers and the compa- Mr. Cook’s total compensation also delivered another year of its retail stores.
that is the most it has brought Verizon said Tuesday that it nies that manufacture smart- for the year ended in September strong growth in services such Mr. Cook’s pay of $15.7 mil-
in for advertising so far. added a net 650,000 new post- phones. rose 22% to $15.7 million, ac- as app-store sales, streaming- lion was about 283 times the
paid phone connections during Postpaid customers pay their cording to a security filing Tues- music subscriptions and mobile median Apple employee’s pay.
the period, an increase from the bill at the end of the month un- day. It marked the second con- payments, a business that Apple scheduled its annual
net 295,000 new phone connec- der long-term contracts and are secutive year his pay increased, jumped 24% to $37.19 billion. meeting for March 1 at its Cu-
Your Daily tions added in the third quarter.
The carrier benefited from
seen by carriers as valuable be-
cause they provide a stable
and was driven by a $12 million
cash bonus that hinged on Apple
Apple rode those gains to
become in August the first U.S.
pertino, Calif., headquarters.
Though Apple reported re-
Dose of WSJ customers adding more lines per
account and its “mix-and-match”
source of revenue.
Device makers including Ap-
exceeding financial targets set
by the board.
public company to be valued at
more than $1 trillion.
cord revenue and profit Nov. 1,
its shares have tumbled more
family plans that allow subscrib- ple and Samsung, meanwhile, The award was revealed a Revenue for fiscal 2018 to- than 30% since, shedding more
ers to pick and choose the are contending with consumers week after Mr. Cook issued a taled $265.6 billion, while oper- than $400 billion in market
amount of data they require, Ro- holding on to their devices lon- letter to shareholders saying ating income hit $70.9 billion, value, because of rising concern
nan Dunne, executive vice presi- ger and fallout from the unbun- Apple would miss revenue es- exceeding Apple’s maximum among investors about sales of
Crossword dent and president of Verizon dling of wireless contracts in re- timates for the three months targets of $264 billion for sales its latest iPhones. Apple ceded
Puzzles Wireless, said at a Citigroup Inc. cent years that broke the typical ended in December, the first and $70 billion for operating its position as the world’s most
WSJ.COM/WEDNESDAY analyst conference. two-year cycle of upgrading de- time in over 15 years the com- income. Those targets repre- valuable publicly listed com-
© 2019 Dow Jones & Co., Inc. All rights reserved. 1DJ7052
He added that the carrier was vices and service contracts si- pany had slashed quarterly sented about a 15% increase pany, ending a nearly seven-
also benefiting from a “stretch multaneously. revenue guidance. Apple said a from the prior year’s results. year run.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
WarnerMedia to Sell Headquarters Stake
Building’s rising value
spurs company to sell,
then sign 20-year
lease with new owner
BY KEIKO MORRIS
WarnerMedia isn’t expected
to move into its future Man-
hattan headquarters until later
this year, but it is already
looking to unload its stake in
the brand-new building.
The media and entertain-
ment company, which includes
HBO, CNN and the Warner
Bros. film company, aims to
raise about $2 billion from the
sale of the 1.4-million-square-
foot Manhattan office condo-
minium, according to real-es-
tate firm Cushman &
Wakefield, which is market-
ing the property. That would
make it among the highest-
priced U.S. single office build-
ing sales.
WarnerMedia has no plans
to abandon the new headquar-
ters. Rather, it is hoping to
cash in on the rising value of
its office space at Manhattan’s
new Hudson Yards develop-
ment by selling it and signing
a lease of about 20 years with
the new owner.
The company, which was
known as Time Warner Inc.
before its acquisition last year
by AT&T Inc., is one of many
firms in recent years to pursue
these types of arrangements.
State Farm Auto Insurance
Co., Verizon Communications
Inc. and WarnerMedia’s parent
company, AT&T, have made
such deals in recent years,
which are known as sale-lease-
back agreements.
Companies use this struc-
ture for a number of reasons:
to raise cash and pay down
debt, reinvest in the business
and lower operating expenses.
These days, companies are
looking to take advantage of a
ADVERTISEMENT
Business Real Estate & Auctions
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
COMMERCIAL PROPERTIES


  
THE PROPERTY REPORT
real-estate market many be-
lieve is in the final stages of a
long rally.
“These Fortune 500 compa-
nies are very smart, and they
know it is a very good time to
be a seller of real estate,” said
Douglas Barker, a senior man-
aging director at the sale-
leaseback capital group at Chi-
cago-based Mesirow Financial.
While investors might be
paying up for these properties,
many feel confident owning a
building with a guaranteed
tenant for years that will con-
tinue generating revenue even
if the economy slows.
Private-equity firms have
also been big users of this
type of deal structure for ac-
quisitions, often selling a
business’s real estate and
leasing it back as a way to pay
down debt.
Last year’s new corporate
tax law, which limits the de-
ductibility of interest pay-
ments, is another reason to
consider a sale-leaseback, es-
pecially with the ability to de-
duct rent as an operating ex-
pense, said Garry Cohen, a
senior managing director also
with Mesirow Financial’s sale-
leaseback arm. Mesirow has
purchased properties in sale-
leaseback deals from Verizon
and Unilever USA.
In cities such as New York,
London and Chicago, a prop-
erty’s appreciation is a main
driver, said John Vazquez, a
Verizon senior vice president.
The company has done $1 bil-
lion of sale-leaseback deals
over the past four years, in-
cluding the 2015 sale of its op-
erations center in Basking
us l,
Ridge, N.J., for $650 million.
“You can have a higher rate
al a
e
of return from capital put back
into the business than on a de-
preciating asset going for-
ci on
ward,” Mr. Vazquez said.
A Verizon spokeswoman de-
clined to specify what they did
with the sale proceeds, other
er rs
m e
m rp
co Fo
Wednesday, January 9, 2019 | B5
Big Deals
The priciest U.S. office building
sales from 2016 have been in
New York City.
Chelsea Market 2018
$2.40 billion
245 Park Avenue 2017
2.21
787 Seventh Avenue 2016
1.94
Citigroup HQ 2016
1.88
PaineWebber Building 2016
1.65
Source: Real Capital Analytics
Yards, making it among the
first to commit to the new de-
velopment from Related and
Oxford Properties Group that is
opening in phases. Since then
the development has sold and
leased office space to marquee
names such as giant money
manager BlackRock Inc. and
private-equity firm KKR & Co.
Coach, which in 2011 be-
came the first tenant to com-
mit to Hudson Yards, con-
verted its ownership of offices
AGATON STROM FOR THE WALL STREET JOURNAL
at 10 Hudson Yards into a
long-term lease for $707 mil-
.
lion in 2016. Coach paid $530
ly
million for its 738,000-square-
foot portion of the tower and
an additional $220 million to
on build out the space.
WarnerMedia’s early com-
mitment to Hudson Yards was
an endorsement of the project,
said Doug Harmon, chairman
of the capital markets group at
WarnerMedia was among the first companies to commit to the Hudson Yards development. real-estate services firm Cush-
man & Wakefield, which is
than saying it was for “finan- ner bought its headquarters in group including Related Cos., marketing the property.
cial flexibility.” Midtown Manhattan for $520 the Government of Singapore “So why give all that appre-
WarnerMedia has a history million more than a decade Investment Corp. and the Abu ciation to the developer when
of taking advantage of rising ago. It sold its 1.1-million- Dhabi Investment Authority. they can share in the upside
real-estate values. Before the square-foot stake in that office WarnerMedia then bought they are helping to generate?”
AT&T acquisition, Time War- building for $1.31 billion to a its office space at Hudson Mr. Harmon asked.
ADVERTISEMENT
Business Real Estate & Services
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
AUCTIONS
 
   
  

 





     
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B6 | Wednesday, January 9, 2019 NY THE WALL STREET JOURNAL.

ADVERTISEMENT
THE PROPERTY REPORT
The Marketplace
To advertise: 800-366-3975 or WSJ.com/classifieds

CAREERS

 

 

 


   
 


          



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 (  BY PETER GRANT ings in Hong Kong. It reported
 
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 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, January 9, 2019 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23787.45 s 256.10, or 1.09% Trailing P/E ratio 19.77 22.98 2574.41 s 24.72, or 0.97% Trailing P/E ratio * 19.31 22.09 6897.00 s 73.53, or 1.08% Trailing P/E ratio * 20.54 27.15
High, low, open and close for each P/E estimate * 14.95 20.04 High, low, open and close for each P/E estimate * 14.95 19.25 High, low, open and close for each P/E estimate * 17.41 21.01
trading day of the past three months. Dividend yield 2.39 2.04 trading day of the past three months. Dividend yield 2.13 1.86 trading day of the past three months. Dividend yield 1.21 1.03
All-time high 26828.39, 10/03/18 All-time high 2930.75, 09/20/18 All-time high: 8109.69, 08/29/18

Current divisor 0.14748071991788

27000 2900 8000

65-day moving average 65-day moving average

65-day moving average
26000 2800 7675

25000 2700 7350

24000 2600 7025

Session high
DOWN UP
t

Session open Close 6700

23000 2500
Close Open
t

22000 2400 6375

Session low
Bars measure the point change from session's open
21000 2300 6050
Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan. Oct. Nov. Dec. Jan.
*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*1,010,644,002 13,744,112
Industrial Average 23864.65 23581.45 23787.45 256.10 1.09 26828.39 21792.20 -6.3 2.0 13.3 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 724,533,289 8,498,137
Transportation Avg 9544.44 9370.06 9447.85 151.62 1.63 11570.84 8637.15 -14.3 3.0 10.8 Most-active issues in late trading Decl. volume* 277,434,628 4,603,258
Utility Average 711.98 700.25 711.43 6.98 0.99 759.55 647.90 1.5 -0.2 7.1 Volume After Hours Issues traded 3,066 305
Company Symbol (000) Last Net chg % chg High Low Advances 2,324 192
Total Stock Market 26548.52 26225.87 26519.68 276.25 1.05 30390.61 24126.04 -6.7 3.1 10.2
SPDR S&P 500 SPY 8,100.2 256.60 -0.17 -0.07 256.82 256.20 Declines 681 101
Barron's 400 641.93 633.14 641.93 8.33 1.32 786.73 571.68 -12.0 5.3 10.3
iShares U.S. Real Estate IYR 5,011.6 76.74 0.04 0.05 76.76 76.69 Unchanged 61 12
Nasdaq Stock Market Infinera INFN 3,674.8 4.39 ... unch. 4.39 4.19 New highs 14 2
Nasdaq Composite 6909.58 6795.86 6897.00 73.53 1.08 8109.69 6192.92 -3.7 3.9 14.1 General Electric GE 3,544.9 8.55 -0.01 -0.12 8.69 7.32 New lows 10 1
6574.73 6457.00 63.59 7660.18 5899.35 3.5 Closing tick 293 31
Nasdaq 100 6551.85 0.98 -1.9 15.3 Immunogen IMGN 3,542.5 5.56 ... unch. 5.56 5.45
Closing Arms† 1.47 0.69
iSh Core Dividend Growth DGRO 3,317.1 33.72 -0.01 -0.04 33.72 33.72
S&P Block trades* 7,293 139
Ambev ADR ABEV 3,048.1 4.33 ... unch. 4.34 4.00

.
500 Index 2579.82 2547.56 2574.41 24.72 0.97 2930.75 2351.10 -6.4 2.7 10.2 Nasdaq NYSE Arca
VanEck Vectors Gold Miner GDX 3,029.1 21.03 -0.02 -0.10 21.06 21.02
1731.63 1707.23 28.81 1.69 2050.23 1567.40 -10.9 4.1

ly
MidCap 400 1731.63 9.8 Total volume*2,341,450,861 277,607,372
SmallCap 600 887.51 875.38 887.50 13.02 1.49 1098.36 793.86 -6.5 5.0 12.5 Percentage gainers… Adv. volume*1,654,888,621 235,914,374
Decl. volume* 664,329,933 40,935,272
Other Indexes Alexion Pharm ALXN 70.1 115.49 6.88 6.33 115.49 107.91
Issues traded 3,171 1,553
Canopy Growth CGC 322.5 30.81 1.17 3.95 31.45 29.64
Russell 2000
NYSE Composite
Value Line
1426.55

496.61
1404.01
11727.75 11621.15 11716.23 110.27
490.25
1426.55

496.61
21.19

6.36
on
1.51
0.95
1.30
1740.75

593.57
1266.92
13637.02 10769.83
446.06
-8.6
-10.7
-13.4
5.8
3.0
5.1
10.9
7.1
6.3
Skyworks Solutions
Callon Petroleum
SWKS
CPE
313.0
181.5
67.25
8.44
2.06
0.23
3.16
2.80
67.50
8.44
63.02
8.21
Advances
Declines
Unchanged
2,105
974
92
1,223
303
27
NYSE Arca Biotech 4650.75 4524.40 4643.86 87.17 1.91 5400.34 3890.37 4.9 10.0 10.6
Ship Fin Intl SFL 50.9 11.89 0.32 2.77 11.89 11.46 New highs 33 8
us l,

New lows 18 5
NYSE Arca Pharma 570.64 565.23 570.39 5.06 0.90 609.15 516.32 2.1 0.3 3.6 ...And losers
Closing tick 288 191
KBW Bank 90.28 88.48 89.66 0.09 0.11 116.52 80.78 -18.4 4.5 10.5 SMART Global Holdings SGH 173.5 27.86 -4.05 -12.69 33.50 25.84 0.87 0.62
al a

Closing Arms†
e
PHLX§ Gold/Silver 71.67 70.23 71.47 0.27 0.38 92.08 61.84 -15.9 1.1 14.9 Tronox Cl A TROX 316.4 8.85 -0.53 -5.65 9.38 8.85 Block trades* 8,861 1,764
PHLX§ Oil Service 92.81 90.62 91.89 1.10 1.21 170.18 75.70 -42.3 14.0 -13.5 Symantec SYMC 734.1 18.61 -0.97 -4.95 19.59 18.61 * Primary market NYSE, NYSE American NYSE Arca only.
ci on

PHLX§ Semiconductor 1177.82 1145.38 1160.55 -5.69 -0.49 1445.90 1069.39 -12.3 0.5 24.6 BioMarin Pharmaceutical BMRN 79.6 89.21 -3.09 -3.35 92.30 89.20 †(TRIN) A comparison of the number of advancing and declining
22.03 20.09 -0.93 -4.35 37.32 9.82 103.1 -19.5 issues with the volume of shares rising and falling. An
Cboe Volatility 20.47 -8.8 Caesars Entertainment CZR 261.8 7.30 -0.19 -2.54 7.49 7.30 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: SIX Financial Information; Dow Jones Market Data indicates selling pressure.

International Stock Indexes Percentage Gainers... Percentage Losers

er rs

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 2815.41 18.41 0.66 3.0 CLPS CLPS 6.35 3.24 104.48 17.35 2.12 ... Maxar Technologies MAXR 6.03 -2.00 -24.91 64.00 5.04 -90.4
0.72
m e

DJ Global Index 360.05 2.56 2.6 VirnetX Holding VHC 4.53 1.79 65.33 5.10 2.10 11.9 electroCore ECOR 5.89 -1.39 -19.09 20.25 4.16 ...
DJ Global ex U.S. 227.78 0.83 0.36 2.3 MMTec MTC 5.94 1.94 48.50 6.60 4.00 ... GWG Holdings GWGH 7.52 -1.71 -18.53 13.10 4.80 -12.9
1.02 111 ADR YI 9.55 2.55 36.43 16.83 5.95 ... AudioEye AEYE 7.32 -1.58 -17.75 10.24 0.16 4475.0
m rp

Americas DJ Americas 612.41 6.19 3.2

Brazil Sao Paulo Bovespa 92031.86 332.81 0.36 4.7 Phunware PHUN 85.00 22.69 36.41 85.00 10.15 713.4 AVROBIO AVRO 13.04 -2.74 -17.36 53.70 12.96 ...
Canada S&P/TSX Comp 14605.15 101.02 0.70 2.0 PLx Pharma PLXP 3.04 0.75 32.75 7.60 1.00 -54.3 Medifast MED 107.24 -18.34 -14.60 260.98 61.96 50.6
Mexico S&P/BMV IPC 43542.87 708.67 1.65 4.6 Dunxin Finl ADR DXF 2.70 0.66 32.35 7.10 1.79 -53.3 Helen of Troy HELE 115.92 -17.06 -12.83 145.47 81.10 20.9
Chile Santiago IPSA 3844.93 25.18 0.66 2.2 vTv Therapeutics Cl A VTVT 3.12 0.75 31.65 8.40 0.65 -44.8 RTW Retailwinds RTW 2.86 -0.41 -12.54 5.55 2.50 ...
0.87 HopFed Bancorp HFBC 18.66 4.42 31.04 18.75 13.03 26.9 Natera NTRA 11.46 -1.44 -11.16 29.62 8.60 17.3
EMEA Stoxx Europe 600 345.85 2.97 2.4
co Fo

0.82 Axsome Therapeutics AXSM 8.88 2.01 29.26 9.16 1.94 150.1 iPic Entertainment IPIC 4.00 -0.50 -11.11 17.00 2.02 ...
Eurozone Euro Stoxx 336.09 2.75 2.3
Belgium Bel-20 3382.97 42.19 1.26 4.3 Tactile Systems Tech TCMD 59.73 12.38 26.15 73.24 27.81 112.1 Gritstone Oncology GRTS 16.44 -2.05 -11.09 32.90 11.22 ...
Denmark OMX Copenhagen 849.76 7.62 0.91 4.5 PHI PHII 3.26 0.56 20.74 13.95 2.25 -73.4 Command Center CCNI 4.24 -0.51 -10.67 6.50 3.43 -27.5
France CAC 40 4773.27 54.10 1.15 0.9 Marin Software MRIN 6.62 1.12 20.36 12.00 2.15 -39.1 Leap Therapeutics LPTX 2.70 -0.31 -10.30 10.25 1.91 -56.7
Germany DAX 10803.98 56.17 0.52 2.3 Checkpoint Therapeutics CKPT 2.72 0.38 16.24 6.29 1.50 -19.5 Dova Pharmaceuticals DOVA 7.90 -0.89 -10.13 37.00 5.62 -73.7
1499.56 0.54 2.4 Viomi Technology ADR VIOT 8.68 1.21 16.20 10.95 7.24 ... First Financial Indiana THFF 38.24 -4.29 -10.09 53.05 37.41 -15.3
Israel Tel Aviv 8.00
Italy FTSE MIB 19000.14 46.87 0.25 3.7
Netherlands AEX 493.69 1.94 0.39 1.2
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1122.90 4.87 0.44 5.1 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 52165.47 206.17 0.40 –1.1
Spain IBEX 35 8847.30 71.00 0.81 3.6 General Electric GE 143,372 4.8 8.56 -2.06 19.39 6.66 iSh Edge MSCI Intl Qual IQLT 11,991 13117 26.59 0.95 31.40 24.90
Sweden OMX Stockholm 544.43 6.25 1.16 3.7 Advanced Micro Devices AMD 116,886 9.1 20.75 0.88 34.14 9.04 HopFed Bancorp HFBC 661 8414 18.66 31.04 18.75 13.03
Switzerland Swiss Market 8629.48 93.53 1.10 2.4 Annaly Capital Mgmnt NLY 113,406 856.7 9.80 -2.39 11.64 9.57 FT Latin Am AlphaDEX FLN 281 5499 19.66 1.01 23.23 17.33
n-

90696.97 0.83 –0.6 SPDR S&P 500 SPY 94,124 -28.5 256.77 0.94 293.94 233.76 iSh Global Consmr Staples KXI 4,870 4568 46.71 0.34 54.58 44.30
Turkey BIST 100 745.88
0.74 2.0
Finl Select Sector SPDR XLF 89,613 13.0 24.31 0.08 30.33 22.05 GraniteSh Gold Trust BAR 884 4414 128.19 -0.30 136.05 117.15
U.K. FTSE 100 6861.60 50.72
U.K. FTSE 250 18175.79 199.64 1.11 3.8 iShares MSCI Emg Markets EEM 67,698 -29.8 39.93 0.38 52.08 37.58 Regalwood Gl Energy Cl A RWGE 309 4075 9.87 0.20 9.88 9.60
Bank of America BAC 64,231 -15.4 25.51 -0.20 33.05 22.66 iSh iBonds Dec 2026 Corp IBDR 1,179 3343 23.13 -0.04 24.44 22.70
no

Asia-Pacific
Invesco QQQ Trust I QQQ 47,614 -32.3 159.52 0.90 187.53 143.46 iShares Global Healthcare IXJ 4,120 2198 57.54 1.04 63.76 53.77
Australia S&P/ASX 200 5722.40 39.20 0.69 1.3
ProSh UltraPro Shrt QQQ SQQQ 44,450 -2.3 14.82 -2.82 23.26 10.83 Axsome Therapeutics AXSM 25,148 2155 8.88 29.26 9.16 1.94
China Shanghai Composite 2526.46 –6.63 –0.26 1.3
Roku Cl A ROKU 44,062 384.0 40.88 -3.08 77.57 26.30 WisdomTree FR Treasury Fd USFR 19,804 2038 25.09 0.02 27.90 25.00
Hong Kong Hang Seng 25875.45 39.75 0.15 0.1
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 35980.93 130.77 0.36 –0.2 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 20204.04 165.07 0.82 0.9
Singapore Straits Times 3122.94 20.14 0.65 1.8 Track the Markets
South Korea Kospi 2025.27 –11.83 –0.58 –0.8 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 9563.60 –26.70 –0.28 –1.7 global stock indexes, bond ETFs,
Thailand SET 1594.00 1.28 0.08 1.9
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: SIX Financial Information; Dow Jones Market Data
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Tues YTDchg Tues YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004311 23196 ...
Americas
Argentina peso .0266 37.5430 –0.3 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2693 3.7133 –4.3 Czech Rep. koruna .04463 22.408 –0.1

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar
Chile peso
.7534 1.3274
.001470 680.40
–2.7
–2.0
Denmark krone
Euro area euro
.1532 6.5266 0.2
1.1442 .8740 0.2
notes and bonds major U.S. trading partners 1 1 .003556 281.19 0.4
Five-year ARM, Rate Ecuador US dollar unch Hungary forint
A consumer rate against its
Mexico peso .0517 19.3567 –1.5 Iceland krona .008405 118.98 2.4
benchmark over the past year 4.00% Uruguay peso .03075 32.5200 0.4 Norway krone .1170 8.5495 –1.1
Bankrate.com avg†: 4.14% 8%
WSJ Dollar index Venezuela b. fuerte .000004248519.9501 ... Poland zloty .2662 3.7566 0.4
Schools First FCU 3.25% s
Russia ruble .01495 66.899 –3.4
5-year adjustable- Tuesday 3.00 Asia-Pacific
6.00% Santa Ana, CA 800-462-8328 t 4 Sweden krona .1120 8.9276 0.8
rate mortgage Yen Australian dollar .7140 1.4006 –1.2
s

Elmira Savings Bank 3.38% Switzerland franc 1.0190 .9814 –0.02

(ARM) 5.00 2.00 China yuan .1459 6.8532 –0.4
0 Turkey lira .1825 5.4806 3.6
t Elmira, NY 607-734-3374 Hong Kong dollar .1276 7.8386 0.1
t Ukraine hryvnia .0360 27.7760 0.2
India rupee .01426 70.135 0.8
4.00 StateDepartmentFederalCreditUnion 3.38% One year ago 1.00 –4 UK pound 1.2716 .7864 0.3
5-year Treasury s Indonesia rupiah .0000707 14145 –1.6
Alexandria, VA 800-296-8882 Japan yen .009197 108.73 –0.8 Middle East/Africa
note yield Euro
t 3.00 Star One Credit Union 3.50% 0.00 –8 Kazakhstan tenge .002666 375.16 –2.4 Bahrain dinar 2.6525 .3770 0.01
Sunnyvale, CA 408-742-2801 1 3 6 1 2 3 5 710 30 Macau pataca .1238 8.0750 0.1 Egypt pound .0558 17.9245 0.1
2.00 2018 2019 Malaysia ringgit .2428 4.1180 –0.4 Israel shekel .2704 3.6982 –1.1
Standard Bank, PaSB 3.63% month(s) years
J FMAM J J AS O N D J New Zealand dollar .6721 1.4879 –0.01 Kuwait dinar 3.2982 .3032 0.01
Murrysville, PA 724-327-0010 maturity Pakistan rupee .00715 139.875 0.1 Oman sul rial 2.5970 .3851 0.01
2018
Sources: Ryan ALM; Tullett Prebon; Dow Jones Market Data Philippines peso .0191 52.451 –0.1 Qatar rial .2747 3.641 0.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg Singapore dollar .7363 1.3581 –0.4 Saudi Arabia riyal .2666 3.7513 –0.01
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields South Korea won .0008906 1122.83 0.8 South Africa rand .0716 13.9601 –2.8
Federal-funds rate target 2.25-2.50 2.25-2.50 1.25 l 2.25 2.00 Sri Lanka rupee .0054768 182.59 –0.2
Yield (%) 52-Week Total Return (%) Close Net Chg % Chg YTD%Chg
Bond total return index Close Last Week ago High Low 52-wk 3-yr Taiwan dollar .03241 30.853 0.9
Prime rate* 5.50 5.50 4.50 l 5.50 2.00 Thailand baht .03122 32.030 –0.9 WSJ Dollar Index 89.42 0.21 0.23 –0.28
Libor, 3-month 2.78 2.81 1.70 l 2.82 2.16 Treasury, Ryan ALM 1473.800 2.676 2.626 3.154 2.370 1.654 1.200
Sources: Tullett Prebon, Dow Jones Market Data
Money market, annual yield 0.57 0.56 0.25 l 0.61 0.29 10-yr Treasury, Ryan ALM 1730.615 2.716 2.684 3.232 2.531 1.157 0.408
Five-year CD, annual yield 2.03 2.02 1.46 l 2.03 0.63 DJ Corporate n.a. n.a. 4.343 n.a. n.a. n.a. n.a. Commodities
30-year mortgage, fixed† 4.41 4.50 3.94 l 4.99 0.52 Tuesday 52-Week YTD
Aggregate, Barclays Capital 1947.830 3.300 3.280 3.660 2.810 0.385 1.859 Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.81 3.89 3.40 l 4.34 0.67
High Yield 100, Merrill Lynch 2879.086 6.903 7.626 7.825 5.406 –0.206 6.701 DJ Commodity 588.03 2.34 0.40 667.35 572.87 -6.13 2.65
Jumbo mortgages, $484,350-plus† 4.52 4.57 4.33 l 5.16 0.11
Fixed-Rate MBS, Barclays 2010.890 3.370 3.390 3.810 3.010 1.190 1.547 TR/CC CRB Index 175.96 1.33 0.76 206.38 168.36 -9.37 3.63
Five-year adj mortgage (ARM)† 4.14 4.16 4.00 l 4.89 0.72
Muni Master, Merrill 530.422 2.471 2.536 2.908 2.193 1.672 1.747 Crude oil, $ per barrel 49.78 1.26 2.60 76.41 42.53 -20.93 9.62
New-car loan, 48-month 4.62 4.58 3.20 l 4.70 1.46
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 n.a. n.a. 7.064 n.a. n.a. n.a. n.a. Natural gas, $/MMBtu 2.967 0.023 0.78 4.84 2.55 1.51 0.92
banks.† Excludes closing costs.
Sources: SIX Financial Information; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Gold, $ per troy oz. 1283.20 -3.60 -0.28 1362.40 1176.20 -2.17 0.38

Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B8 | Wednesday, January 9, 2019 THE WALL STREET JOURNAL.

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 May 276.75 279.75 276.75 278.75 2.75 729 May 25.50 25.61 s t 25.50 25.51 .01 2,494 March 1.2829 1.2841 s 1.2750 1.2761 –.0054 206,977
Contract Open Soybeans (CBT)-5,000 bu.; cents per bu. Cotton (ICE-US)-50,000 lbs.; cents per lb. Swiss Franc (CME)-CHF 125,000; $ per CHF
Open High hi lo Low Settle Chg interest Jan 911.75 912.50 903.00 906.25 –6.00 2,462 March 72.81 73.85 71.54 71.67 –1.08 128,184 March 1.0276 1.0283 1.0235 1.0258 –.0019 68,011
March 923.25 925.75 914.50 918.50 –5.75 336,872 May 74.23 75.12 72.95 73.07 –1.03 39,689 June 1.0351 1.0371 s 1.0330 1.0349 –.0019 95
Copper-High (CMX)-25,000 lbs.; $ per lb.
Jan 2.6485 2.6515 2.6375 2.6605 0.0195 1,595 Soybean Meal (CBT)-100 tons; $ per ton. Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Australian Dollar (CME)-AUD 100,000; $ per AUD
Jan 318.60 319.30 s 316.80 317.60 –.60 1,254 Jan 123.50 123.50 123.50 122.30 .35 587 Jan .7135 .7145 .7119 .7140 –.0003 375
March 2.6380 2.6580 2.6235 2.6560 0.0190 137,579
Gold (CMX)-100 troy oz.; $ per troy oz. March 322.10 323.40 s 320.30 321.60 –.60 193,979 March 124.00 125.15 122.85 123.50 –.35 14,255 Feb .7148 .7150 s .7123 .7144 –.0003 690
Jan 1280.50 1282.50 t 1278.20 1283.20 –3.60 350 Soybean Oil (CBT)-60,000 lbs.; cents per lb. March .7152 .7158 s .7125 .7147 –.0003 124,175
Feb 1289.90 1291.40 1280.20 1285.90 –4.00 302,017 Jan 28.31 28.32 28.01 28.18 –.08 899 Interest Rate Futures April .7149 .7155 s .7149 .7149 –.0004 255
June 1303.70 1303.70 1293.00 1298.80 –4.10 44,384 March 28.51 28.70 28.21 28.43 –.08 217,130 June .7154 .7162 s .7139 .7156 –.0004 812
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Aug 1308.30 1308.30 1299.30 1304.90 –4.10 10,938 Rough Rice (CBT)-2,000 cwt.; $ per cwt. March 146-080 146-140 145-200 146-010 –15.0 947,632
Sept .6972 .7018 t .6966 .7167 –.0002 121
Dec 1321.60 1321.60 1312.90 1317.40 –4.10 10,510 March 1068.50 1075.00 s 1057.50 1074.50 8.00 7,224 June 145-160 145-230 145-000 145-120 –15.0 115
Mexican Peso (CME)-MXN 500,000; $ per MXN
Feb'20 1324.40 1324.40 1323.50 1323.50 –4.20 3,630 May 1078.50 1090.00 s 1076.50 1091.00 8.50 112 March .05117 .05132 s .05093 .05114 .00001 160,262
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Palladium (NYM) - 50 troy oz.; $ per troy oz. Wheat (CBT)-5,000 bu.; cents per bu. March 121-305 122-015 121-195 121-240 –9.5 4,088,964
Euro (CME)-€125,000; $ per €
March 1240.10 1270.00 s 1236.30 1261.40 21.20 24,771 Jan 1.1486 1.1491 1.1430 1.1448 –.0038 1,843
March 516.50 524.50 s 513.75 517.75 1.00 230,670 June 122-085 122-085 122-000 122-000 –10.5 3,226
June 1224.70 1252.60 s 1220.70 1245.60 21.30 3,409 March 1.1545 1.1552 1.1488 1.1508 –.0038 498,531
May 521.50 529.50 s 519.00 523.50 2.00 77,145 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Sept 1206.40 1220.40 s t 1206.40 1227.70 21.30 71
Platinum (NYM)-50 troy oz.; $ per troy oz. Wheat (KC)-5,000 bu.; cents per bu. March 114-160 114-180 114-085 114-107 –8.0 4,582,363
March 501.00 510.25 s 499.00 505.00 2.00 182,834 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Index Futures
Jan ... ... ... 816.50 –1.90 186
April 827.30 830.50 818.90 821.80 –2.50 85,315 May 511.75 521.75 s 511.50 516.75 2.25 56,557 March 106-012 106-020 105-300 105-305 –4.0 2,531,683 Mini DJ Industrial Average (CBT)-$5 x index
Silver (CMX)-5,000 troy oz.; $ per troy oz. Wheat (MPLS)-5,000 bu.; cents per bu. 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. March 23530 23848 s 23497 23743 231 72,721
Jan ... ... ... 15.626 –0.043 725 March 567.75 574.00 s 566.00 567.25 –.75 33,647 Jan 97.600 t 97.598
97.600 97.600 .002 315,252 June 23610 23874 s 23552 23760 230 569
March 15.725 15.745 15.560 15.713 –0.043 144,827 May 572.25 579.00 s 571.75 573.00 –.25 13,273 April 97.605 t 97.580
97.605 97.585 –.020 299,483 S&P 500 Index (CME)-$250 x index
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% March 2550.70 2581.00 s 2549.00 2572.40 21.80 42,609
Feb 48.84 49.95 s 48.31 49.78 1.26 361,363 Jan 145.975 148.275 145.075 147.625 1.625 8,046 March 102.188 102.188 t 101.922 102.063 –.328 27,961 Mini S&P 500 (CME)-$50 x index
March 49.15 50.25 s 48.62 50.11 1.29 339,170 March 143.900 146.475 143.050 145.450 1.550 25,244 1 Month Libor (CME)-$3,000,000; pts of 100% March 2553.25 2581.25 s 2547.50 2572.50 22.00 2,643,289
April 49.50 50.61 s 49.00 50.49 1.32 140,096 Cattle-Live (CME)-40,000 lbs.; cents per lb. Jan ... ... s ... 97.4850 –.0025 535 June 2558.00 2585.75 s 2553.00 2577.00 22.00 29,340
May 49.93 51.03 s 49.54 50.93 1.33 116,051 Feb 123.200 125.475 s 122.875 125.300 2.100 124,766 Eurodollar (CME)-$1,000,000; pts of 100% Mini S&P Midcap 400 (CME)-$100 x index
June 50.36 51.47 s 49.88 51.36 1.32 230,900 April 125.175 126.400 124.400 126.150 1.075 117,875 Jan 97.2325 97.2425 97.2250 97.2400 .0100 275,699 March 1706.00 1733.90 s 1703.30 1732.60 29.30 69,112
Dec 51.75 52.83 s 51.33 52.75 1.27 188,222 Hogs-Lean (CME)-40,000 lbs.; cents per lb. March 97.2950 97.3050 97.2850 97.2900 –.0100 1,471,193 Mini Nasdaq 100 (CME)-$20 x index
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Feb 62.600 63.150 62.075 62.600 .700 77,953 June 97.2900 97.3000 t 97.2650 97.2700 –.0450 1,252,495 March 6506.0 6586.3 s 6467.3 6557.3 60.8 199,780
Feb 1.7885 1.8296 s 1.7757 1.8270 .0486 102,158 Dec 97.3300 97.3400 t 97.2850 97.2950 –.0600 1,759,556
April 66.975 t 65.675
67.150 66.025 –.350 61,271 June 6533.8 6609.8 s 6495.0 6582.3 61.5 1,425
March 1.7820 1.8218 s 1.7690 1.8194 .0480 72,742
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Mini Russell 2000 (CME)-$50 x index
Jan 324.20 331.70 t 321.30 326.50 1.70 348 Currency Futures March 1406.80 1429.30 s 1404.60 1425.90 20.00 466,405
Feb 1.3482 1.3722 1.3385 1.3626 .0218 116,415
March 1.3600 1.3853 1.3521 1.3750 .0209 90,719 March 330.90 343.60 s 326.10 340.20 9.40 2,743 Japanese Yen (CME)-¥12,500,000; $ per 100¥ June 1424.40 1431.50 s 1421.50 1430.40 19.90 556
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Milk (CME)-200,000 lbs., cents per lb. Jan .9207 .9218 .9175 .9209 –.0004 1,078 Mini Russell 1000 (CME)-$50 x index
Feb 2.958 3.053 s 2.948 2.967 .023 169,600 Jan 14.18 14.18 t 14.07 14.08 –.06 4,400 March .9252 .9272 .9217 .9255 –.0004 224,789 March 1425.40 1425.60 s 1411.30 1423.60 13.80 7,654
March 2.861 2.932 s 2.829 2.835 –.012 276,325 Feb 14.54 14.54 t 14.40 14.41 –.16 4,172 Canadian Dollar (CME)-CAD 100,000; $ per CAD U.S. Dollar Index (ICE-US)-$1,000 x index
April 2.685 2.746 s 2.685 2.695 .018 153,257 Cocoa (ICE-US)-10 metric tons; $ per ton. Jan .7523 .7534 s .7520 .7530 .0008 816 March 95.29 95.62 95.28 95.48 .25 61,298
May 2.673 2.727 s 2.670 2.683 .021 136,739 March 2,389 2,399 2,355 2,382 –28 94,699 March .7535 .7550 s .7518 .7541 .0008 164,533 June 94.81 95.10 94.79 94.97 .24 1,006
July 2.755 2.809 s 2.755 2.772 .026 63,907 May 2,430 2,439 2,398 2,425 –22 53,019 British Pound (CME)-£62,500; $ per £
Oct 2.765 2.810 s 2.765 2.776 .025 106,935 Coffee (ICE-US)-37,500 lbs.; cents per lb. Jan 1.2771 1.2793 s 1.2720 1.2722 –.0053 2,565 Source: SIX Financial Information
March 102.90 106.05 s 102.35 105.05 2.30 127,577
Agriculture Futures May 105.80 109.00 s 105.50 108.10 2.35 61,328
Corn (CBT)-5,000 bu.; cents per bu.
March 382.50 384.50 s 379.00 380.00 –2.25 750,737
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March 12.66 12.85 s 12.59 12.76 .11 376,279
Bonds | WSJ.com/bonds
May 390.50 392.25 s 387.00 388.00 –2.25 245,508 May 12.73 12.93 s 12.70 12.89 .17 188,191
Oats (CBT)-5,000 bu.; cents per bu. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Tracking Bond Benchmarks
March 277.75 283.25 s 277.50 282.75 3.25 4,074 March 25.40 25.60 s 25.36 25.36 –.04 2,687
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total Total

Cash Prices | WSJ.com/commodities Tuesday, January 8, 2019

return
close
YTD total
return (%) Index
Yield (%)
Latest Low High
return
close
YTD total
return (%) Index
Yield (%)
Latest Low High
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
separate from the futures price on an exchange, which reflects what the commodity might be worth in future 0.02
1947.83 0.1 U.S. Aggregate 3.300 2.810 3.660 2010.89 Mortgage-Backed 3.370 3.010 3.810

.
months.
U.S. Corporate Indexes Bloomberg Barclays 1977.63 0.1 Ginnie Mae (GNMA) 3.320 2.960 3.780

ly
Tuesday Tuesday Tuesday
Platinum,Engelhard industrial 823.0 Wheat,Spring14%-pro Mnpls-u 6.7975 2736.11 0.3 U.S. Corporate 4.230 3.320 4.370 1179.92 -0.01 Fannie mae (FNMA) 3.380 3.020 3.820
Energy Platinum,Engelhard fabricated 923.0 Wheat,No.2 soft red,St.Louis-bp,u 5.4900
Propane,tet,Mont Belvieu-g n.a. Palladium,Engelhard industrial 1315.0 Wheat - Hard - KC (USDA) $ per bu-u 5.3000 2614.26 -0.04 Intermediate 3.940 2.960 4.060 1816.01 -0.01 Freddie Mac (FHLMC) 3.410 3.030 3.840
Butane,normal,Mont Belvieu-g n.a. Palladium,Engelhard fabricated 1415.0 Wheat,No.1soft white,Portld,OR-u 6.2500
3683.09 0.9 Long term 4.850 4.060 5.050 530.42 0.4 Muni Master 2.471 2.193 2.908
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w

Metals
83.900
11.900
Aluminum, LME, $ per metric ton
Copper,Comex spot
Iron Ore, 62% Fe CFR China-s
*1858.0
2.6605
75.0
363
on Food
Beef,carcass equiv. index
193.63
567.44 0.1 Double-A-rated 3.510 2.800 3.740 371.95
417.43
0.5
0.4
7-12 year 2.447 2.229 2.941
Shredded Scrap, US Midwest-s,m choice 1-3,600-900 lbs.-u 703.62 0.3 Triple-B-rated 4.610 3.600 4.720 12-22 year 2.886 2.505 3.317
Steel, HRC USA, FOB Midwest Mill-s 720 select 1-3,600-900 lbs.-u 185.75
Gold, per troy oz High Yield Bonds ICE Data Services 402.39 0.3 22-plus year 3.408 2.877 3.758
us l,

Broilers, National comp wghtd-u,w 1.0479

Engelhard industrial 1284.83 Fibers and Textiles Butter,AA Chicago 2.2300
Engelhard fabricated 1381.19 418.84 2.6 High Yield Constrained 7.346 5.639 8.107 Global Government J.P. Morgan†
Cheddar cheese,bbl,Chicago 127.75
Handy & Harman base 1286.45 Burlap,10-oz,40-inch NY yd-n,w 0.5550 Cheddar cheese,blk,Chicago 138.00 414.73 3.8 Triple-C-rated 12.565 9.597 13.784 549.00 -0.1 Global Government 1.600 1.480 1.880
al a

Cotton,1 1/16 std lw-mdMphs-u 0.6892

e
Handy & Harman fabricated 1427.96 Milk,Nonfat dry,Chicago lb. 99.00
LBMA Gold Price AM *1291.50 Cotlook 'A' Index-t *81.50 Coffee,Brazilian,Comp 1.0326 2879.09 2.8 High Yield 100 6.903 5.406 7.825 774.79 0.1 Canada 2.040 1.930 2.540
LBMA Gold Price PM *1292.20 Hides,hvy native steers piece fob-u 45.000 Coffee,Colombian, NY 1.2844
n.q. 1.8 Global High Yield Constrained 7.085 5.043 7.561 372.49 -0.5 EMU§ 1.261 1.031 1.469
ci on

Krugerrand,wholesale-e 1336.30 Wool,64s,staple,Terr del-u,w Eggs,large white,Chicago-u 1.0850 376.63

Maple Leaf-e 1349.15 Flour,hard winter KC 15.15
American Eagle-e 1349.15 Grains and Feeds 295.83 0.2 Europe High Yield Constrained 4.695 2.292 4.869 717.73 -0.2 France 0.880 0.730 1.040
Hams,17-20 lbs,Mid-US fob-u n.a.
Mexican peso-e 1557.20 Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 58.53 U.S Agency Bloomberg Barclays 519.39 0.04 Germany 0.310 0.250 0.740
Austria crown-e 1262.46 Bran,wheat middlings, KC-u 110 Pork bellies,12-14 lb MidUS-u n.a.
Austria phil-e 1349.15 Corn,No. 2 yellow,Cent IL-bp,u 3.5400 Pork loins,13-19 lb MidUS-u 0.7570 1659.72 -0.1 U.S Agency 2.830 2.290 3.210 292.14 0.1 Japan 0.350 0.320 0.520
Silver, troy oz. Corn gluten feed,Midwest-u,w 115.2 Steers,Tex.-Okla. Choice-u n.a. 1486.10 -0.1 10-20 years 2.730 2.160 3.110 573.61 0.1 Netherlands 0.440 0.380 0.830
er rs

Engelhard industrial 15.6400 Corn gluten meal,Midwest-u,w 471.6 Steers,feeder,Okla. City-u,w 157.31
Engelhard fabricated 18.7680 Cottonseed meal-u,w 258 3371.06 -0.05 20-plus years 3.290 3.040 3.700 938.43 0.2 U.K. 1.590 1.450 1.900
Handy & Harman base 15.6310 Hominy feed,Cent IL-u,w 100
Fats and Oils
Handy & Harman fabricated 19.5390 Meat-bonemeal,50% pro Mnpls-u,w 215 Corn oil,crude wet/dry mill-u,w 26.0000 2450.21 0.3 Yankee 3.830 3.050 4.050 n.a. n.a. Emerging Markets ** n.a. n.a. n.a.
LBMA spot price *£12.3500 Oats,No.2 milling,Mnpls-u 3.2825 Grease,choice white,Chicago-h 0.2500 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
(U.S.$ equivalent) *15.7500 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Lard,Chicago-u n.a.
m e

Coins,wholesale $1,000 face-a 11643 ** EMBI Global Index Sources: ICE Data Services; Bloomberg Barclays; J.P.Morgan
Sorghum,(Milo) No.2 Gulf-u 7.4113 Soybean oil,crude;Centl IL-u 0.2793
Other metals SoybeanMeal,Cent IL,rail,ton48%-u 322.60 Tallow,bleach;Chicago-h 0.2650
LBMA Platinum Price PM *823.0 Soybeans,No.1 yllw IL-bp,u 8.6500 Tallow,edible,Chicago-u n.a.
Global Government Bonds: Mapping Yields
m rp

KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 1/7 Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Source: WSJ Market Data Group 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

Borrowing Benchmarks | WSJ.com/bonds

Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
2.500 U.S. 2 2.586 s l 2.541 2.721 1.964
co Fo

3.125 10 2.718 s l 2.697 2.852 2.480

Money Rates January 8, 2019
1.750 Australia 2 1.894 s l 1.873 1.926 1.877 -69.2 -66.8 -8.7
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a 2.750 10 2.312 s l 2.280 2.456 2.628 -40.6 -41.7 14.8
guide to general levels but don’t always represent actual transactions. 0.000 France 2 -0.438 s l -0.439 -0.461 -0.472 -302.4 -297.9 -243.7
Inflation Week —52-WEEK— Week —52-WEEK— 0.750 10 0.733 s l 0.725 0.684 0.787 -198.5 -197.1 -169.4
Latest ago High Low Latest ago High Low
Nov. index Chg From (%) 0.000 Germany 2 -0.582 t l -0.580 -0.603 -0.614 -316.7 -312.1 -257.9
level Oct. '18 Nov. '17 Policy Rates High 2.6000 2.6500 2.6500 1.5625
2.3500 2.3900 1.2500
0.250 10 0.230 s l 0.224 0.251 0.434 -248.8 -247.3 -204.7
Low 2.3000
Euro zone 0.00 0.00 0.00 0.00
U.S. consumer price index Switzerland 0.50 0.50 0.50 0.50
Bid 2.3800 2.3500 2.4000 1.3300 3.750 Italy 2 0.812 s l 0.780 1.069 -0.176 -177.4 -176.1 -214.1
Offer 2.4200 2.4100 2.4200 1.3500
All items 252.038 –0.33 2.2 Britain 0.75 0.75 0.75 0.50 2.800 10 2.963 s l 2.902 3.131 1.986 24.5 20.6 -49.5
Core 259.105 0.02 2.2 Australia 1.50 1.50 1.50 1.50 Treasury bill auction 0.100 Japan 2 -0.147 s l -0.165 -0.137 -0.134 -273.3 -270.6 -209.8
Overnight repurchase 4 weeks 2.390 2.400 2.400 1.230
International rates 0.100 10 -0.002 s l -0.015 0.063 0.056 -272.0 -271.1 -242.5
U.S. 2.53 3.23 3.23 1.33 13 weeks 2.410 2.465 2.465 1.425
n-

26 weeks 2.470 2.505 2.505 1.575 0.050 Spain 2 -0.128 s l -0.131 -0.098 -0.401 -271.4 -267.1 -236.5
Week 52-Week
Latest ago High Low U.S. government rates 1.400 10 1.517 s l 1.497 1.457 1.480 -120.1 -120.0 -100.0
Secondary market
Prime rates Discount 2.000 U.K. 2 0.763 s l 0.758 0.739 0.510 -182.3 -178.3 -145.4
Fannie Mae
3.00 3.00 3.00 2.00 4.250 10 1.155 s l 1.134 1.132 1.238 -156.3 -124.2
U.S. 5.50 5.50 5.50 4.50 30-year mortgage yields -156.3
no

Canada 3.95 3.95 3.95 3.20 Federal funds 30 days 4.083 4.123 4.607 3.551 Source: Tullett Prebon
Japan 1.475 1.475 1.475 1.475 Effective rate 2.4500 2.4500 2.4600 1.3300 60 days 4.107 4.146 4.632 3.583

Other short-term rates Corporate Debt

Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
Exchange-Traded Portfolios | WSJ.com/ETFresearch Latest
Week 52-Week
high low that same company’s share price.
ago

Largest 100 exchange-traded funds, latest session Call money

Investment-grade spreads that tightened the most…
Spread*, in basis points Stock Performance
Tuesday, January 8, 2019 Closing Chg YTD 4.25 4.25 4.25 3.25 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
ETF Symbol Price (%) (%)
Closing Chg YTD Commercial paper (AA financial) Citigroup C 5.875 March 27, ’49 292 –86 299 55.46 –0.27
ETF Symbol Price (%) (%) iShUSPfdStk PFF 35.18 0.26 2.8
90 days 2.66 2.67 2.80 1.61 Societe Generale SOCGEN 7.375 Sept. 13, ’49 443 –69 530 ... ...
AlerianMLPETF AMLP 9.80 2.51 12.3 iShShortCpBd IGSB 51.67 –0.02 0.1
iShShortTreaBd SHV 110.37 –0.01 0.1
Royal Bank of Scotland RBS 7.500 Aug. 10, ’49 458 –61 n.a. 5.82 1.04
CnsmrDiscSelSector XLY 104.25 1.11 5.3 Libor
CnsStapleSelSector XLP 51.66 0.92 1.7 iShTIPSBondETF TIP 110.11 0.08 0.5 Ford Motor Credit F 3.219 Jan. 9, ’22 218 –57 n.a. … …
One month 2.51550 2.50269 2.52238 1.55375
EnSelectSectorSPDR XLE 61.23 0.77 6.8 iSh1-3YTreasuryBd SHY 83.51 –0.06 –0.1
2.80763 2.82375 1.70457
General Electric GE 5.000 Jan. 21, ’49 298 –54 340 8.56 –2.06
iSh7-10YTreasuryBd IEF 103.85 –0.25 –0.3 Three month 2.78250
FinSelSectorSPDR XLF 24.31 0.08 2.1
Six month 2.85256 2.87563 2.90788 1.86519 Morgan Stanley MS 5.450 July 15, ’49 246 –45 253 41.45 –0.62
FT DJ Internet FDN 124.75 1.80 6.9 iSh20+YTreasuryBd TLT 121.43 –0.26 –0.1
iShRussellMCGrowth IWP 117.78 1.34 3.6 One year 3.01613 3.00544 3.14413 2.14633 Bank of New York Mellon BK 4.625 Sept. 20, ’49 202 –40 n.a. 47.62 –0.38
HealthCareSelSect XLV 86.96 0.78 0.5
PIMCOEnhShMaturity MINT 100.98 0.01 0.0 JPMorgan Chase JPM 6.000 Aug. 1, ’49 293 –37 312 100.57 –0.19
IndSelSectorSPDR XLI 66.58 1.37 3.4
SPDRBloomBar1-3MTB BIL 91.49 ... 0.0 Euro Libor
159.52 0.90 3.4
InvscQQQI
InvscS&P500EW
QQQ
RSP 94.64 1.08 3.5 SPDR Gold GLD 121.53 –0.27 0.2 One month -0.422 -0.409 -0.390 -0.422 …And spreads that widened the most
InvscS&P500LowVol SPLV 46.94 1.08 0.6 SchwabIntEquity SCHF 29.21 0.65 3.0 Three month -0.335 -0.356 -0.335 -0.389 Pacific Gas And Electric PCG 6.050 March 1, ’34 474 59 n.a. … …
121.12 –0.18 –0.2 SchwabUS BrdMkt SCHB 61.76 1.03 3.1 Six month -0.297 -0.303 -0.297 -0.339
iSh3-7YTreasuryBd IEI
SchwabUS Div SCHD 48.09 0.94 2.4
Morgan Stanley MS 5.750 Jan. 25, ’21 149 53 105 41.45 –0.62
iShCoreMSCIEAFE IEFA 56.76 0.71 3.2 One year -0.177 -0.183 -0.177 -0.263 Best Buy BBY 4.450 Oct. 1, ’28 237 14 226 57.40 2.94
SchwabUS LC SCHX 61.30 0.99 2.7
iShCoreMSCIEmgMk IEMG 48.07 0.25 2.0
iShCoreMSCITotInt IXUS 54.08 0.63 3.0
SPDR DJIA Tr DIA 237.92 1.09 2.0 Euro interbank offered rate (Euribor) Southern California Edison EIX 4.000 April 1, ’47 168 12 n.a. … …
SPDR S&PMdCpTr MDY 314.95 1.68 4.1
iShCoreS&P500 IVV 258.29 0.99 2.7 One month -0.363 -0.363 -0.362 -0.372 Deutsche Bank AG DB 4.250 Oct. 14, ’21 255 9 232 8.74 0.46
SPDR S&P 500 SPY 256.77 0.94 2.7
iShCoreS&P MC IJH 172.89 1.67 4.1
SPDR S&P Div SDY 91.32 1.24 2.0 Three month -0.308 -0.309 -0.308 -0.329 Marriott International MAR 4.650 Dec. 1, ’28 199 9 n.a. 109.76 1.62
iShCoreS&P SC IJR 72.84 1.52 5.1 2.550 May 13, ’21 7 106 …
TechSelectSector XLK 62.57 0.84 1.0 Six month -0.236 -0.237 -0.236 -0.279 Citizens Bank NA CFG 101 ...
iShS&PTotlUSStkMkt ITOT 58.47 1.02 3.0
UtilitiesSelSector XLU 53.06 1.24 0.3 One year -0.118 -0.117 -0.117 -0.193 Celgene CELG 3.250 Aug. 15, ’22 113 6 n.a. 87.58 0.07
iShCoreUSAggBd AGG 106.43 –0.08 –0.1
VanEckGoldMiner GDX 21.05 0.05 –0.2
91.79 2.8
iShSelectDividend
iShEdgeMSCIMinEAFE
DVY
EFAV 68.03
1.03
0.21 2.1
VangdInfoTech VGT 169.04 0.96 1.3
Latest
Value
Traded
52-Week
High Low
High-yield issues with the biggest price increases…
VangdSC Val VBR 119.67 1.37 4.9 Bond Price as % of face value Stock Performance
iShEdgeMSCIMinUSA USMV 52.92 0.86 1.0
VangdSC Grwth VBK 158.46 1.77 5.2 DTCC GCF Repo Index Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
iShEdgeMSCIUSAMom MTUM 102.26 1.24 2.0
VangdDivApp VIG 99.41 1.15 1.5
iShFloatingRateBd FLOT 50.41 0.10 0.1 Treasury 2.516 35.050 5.149 1.339 Berry Petroleum BRRP 7.000 Feb. 15, ’26 94.250 4.78 n.a. ... ...
VangdFTSEDevMk VEA 38.27 0.71 3.2
iShGoldTr IAU 12.32 –0.24 0.2 MBS 2.519 101.300 4.434 1.372
VangdFTSE EM VWO 39.16 0.56 2.8 Golden Nugget NUGGET 6.750 Oct. 15, ’24 99.750 4.75 94.250 ... ...
iShiBoxx$InvGrCpBd LQD 113.41 0.22 0.5
iShiBoxx$HYCpBd HYG 83.73 0.65 3.2
VangdFTSE Europe VGK 50.05 0.81 2.9 Open Implied WeWork WEWORK 7.875 May 1, ’25 90.125 3.63 88.750 ... ...
VangdFinls VFH 60.93 0.15 2.6 Settle Change Interest Rate
iShJPMUSDEmgBd EMB 105.51 –0.08 1.5 Denbury Resources DNR 6.375 Aug. 15, ’21 78.500 3.50 n.a. 2.19 –0.45
VangdFTSEAWxUS VEU 46.91 0.62 2.9
iShMBSETF MBB 104.70 –0.08 0.0 VangdGrowth VUG 138.41 1.22 3.0
DTCC GCF Repo Index Futures Hornbeck Offshore Services HOS 5.875 April 1, ’20 63.000 3.00 52.000 1.89 5.59
iShMSCI ACWI ACWI 65.94 0.73 2.8 VangdHlthCr VHT 162.96 1.07 1.5 Treasury Jan 97.505 -0.008 73 2.495 Pyxus International PYX 9.875 July 15, ’21 82.250 3.00 76.250 13.75 –8.15
iShMSCIBrazil EWZ 41.90 1.21 9.7 VangdHiDiv VYM 79.96 0.82 2.5 Treasury Feb 97.535 unch. 76 2.465 Springleaf Finance AMGFIN 7.125 March 15, ’26 94.250 2.75 89.000 ... ...
iShMSCI EAFE EFA 60.53 0.65 3.0 VangdIntermBd BIV 81.31 –0.16 0.0 Treasury Mar 97.510 -0.015 44 2.490 Freedom Mortgage FREMOR 8.125 Nov. 15, ’24 89.750 2.75 86.000 ... ...
iShMSCI EAFE SC SCZ 53.93 0.97 4.1 VangdIntrCorpBd VCIT 82.94 0.08 0.1
iShMSCIEmgMarkets EEM 39.93 0.38 2.2 Notes on data:
iShMSCIJapan EWJ 52.85 0.48 4.3
VangdLC
VangdMC
VV
VO
117.95
142.99
0.97
1.19
2.7
3.5 U.S. prime rate is the base rate on corporate
…And with the biggest price decreases
iShNasdaqBiotech IBB 106.75 0.72 10.7 VangdMC Val VOE 98.58 0.93 3.5 loans posted by at least 70% of the 10 largest Clearway Energy Operating CWENA 5.750 Oct. 15, ’25 93.000 –2.00 95.250 ... ...
iShNatlMuniBd MUB 108.94 –0.07 –0.1 U.S. banks, and is effective December 20, 2018.
VangdMBS VMBS 51.52 –0.02 0.1
Other prime rates aren’t directly comparable; Frontier Communications FTR 7.875 Jan. 15, ’27 53.375 –1.59 n.a. 2.82 3.68
iShRussell1000Gwth IWF 134.80 1.25 3.0 VangdRealEst VNQ 76.60 2.07 2.7 lending practices vary widely by location; Vertiv Intermediate Holding CORTNP 12.000 Feb. 15, ’22 90.970 –1.28 n.a. ... ...
iShRussell1000 IWB 142.50 1.01 2.7 VangdS&P500 VOO 235.92 0.97 2.7 Discount rate is effective December 20, 2018.
iShRussell1000Val IWD 113.91 0.81 2.6 VangdST Bond BSV 78.46 –0.09 –0.1 DTCC GCF Repo Index is Depository Trust &
Clearway Energy Operating CWEN 5.000 Sept. 15, ’26 88.500 –1.00 n.a. … …
iShRussell2000Gwth IWO 177.81 1.55 5.8 VangdSTCpBd VCSH 77.86 –0.05 –0.1 Clearing Corp.'s weighted average for overnight Fage International S.A. FAGEGA 5.625 Aug. 15, ’26 86.500 –0.75 n.a. ... ...
141.73 1.53 5.8 trades in applicable CUSIPs. Value traded is in
iShRussell2000 IWM VangdSC VB 138.61 1.58 5.0
billions of U.S. dollars. Federal-funds rates are
Intelsat Luxembourg S.A. INTEL 8.125 June 1, ’23 82.500 –0.75 78.000 ... ...
iShRussell2000Val IWN 113.76 1.55 5.8 VangdTotalBd BND 79.22 –0.13 0.0
Tullett Prebon rates as of 5:30 p.m. ET. Futures Precision Drilling PDCN 5.250 Nov. 15, ’24 85.000 –0.75 n.a. ... ...
iShRussell3000 IWV 151.36 1.03 3.0 VangdTotIntlBd BNDX 54.10 –0.07 –0.3
iShRussellMid-Cap IWR 48.16 1.24 3.6 VangdTotIntlStk VXUS 48.62 0.73 3.0
on the DTCC GCF Repo Index are traded on Dean Foods DF 6.500 March 15, ’23 83.875 –0.50 81.250 4.64 ...
NYSE Liffe US.
iShRussellMCValue IWS 79.13 1.20 3.6 VangdTotalStk VTI 131.54 1.03 3.1 Sources: Federal Reserve; Bureau of Labor *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.
iShS&P500Growth IVW 154.72 1.13 2.7 VangdTotlWrld VT 67.40 0.81 3.0 Statistics; DTCC; SIX Financial Information; Note: Data are for the most active issue of bonds with maturities of two years or more
iShS&P500Value IVE 103.81 0.75 2.6 VangdValue VTV 100.26 0.73 2.4 Tullett Prebon Information, Ltd. Sources: MarketAxess Corporate BondTicker; Dow Jones Market Data
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

THE WALL STREET JOURNAL. Wednesday, January 9, 2019 | B9

BIGGEST 1,000 STOCKS

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
The following explanations apply to NYSE, NYSE s-New 52-week high. GatesIndustrial GTES 14.12 0.40 Linde LIN 158.15 1.66 PlainsAllAmPipe PAA 23.82 0.53 TevaPharm TEVA 17.68 0.01 UPS B UPS 97.42 0.01 Waters WAT 192.39 5.15
Arca, NYSE American and Nasdaq Stock Market t-New 52-week low. GeneralDynamics GD 158.66 0.01 LiveNationEnt LYV 52.11 1.21 PlainsGP PAGP 23.54 0.47 TexasInstruments TXN 94.38 -0.12 UnitedRentals URI 116.26 2.14 Watsco WSO 143.60 0.74
listed securities. Prices are composite quotations dd-Indicates loss in the most recent four GeneralElec GE 8.56 -0.18 LloydsBanking LYG 2.71 0.01 PlanetFitness PLNT 57.62 1.78 Textron TXT 47.55 1.12 US Bancorp USB 46.91 0.30 Wayfair W 96.76 1.21
that include primary market trades as well as quarters. GeneralMills GIS LockheedMartin LMT 269.87 1.79 Pool UnitedTech UTX 108.90 WB 59.08
41.09 0.61 POOL 149.83 -0.32 ThermoFisherSci TMO 229.98 5.23 1.93 Weibo -3.55
trades reported by Nasdaq BX (formerly Boston), FD-First day of trading. GeneralMotors GM 34.81 0.45 Loews L PostHoldings POST 94.28 UnitedHealth UNH 243.29 3.21
45.85 -0.11 0.17 ThomsonReuters TRI 47.63 0.14 WellCareHealth WCG 238.96 2.57
Chicago Stock Exchange, Cboe, NYSE National and h-Does not meet continued listing
Genpact G 27.79 0.47 LogitechIntl LOGI 32.21 0.35 Premier PINC 37.28 -0.08 3M MMM 191.68 0.80 UniversalHealthB UHS 122.00 3.70 WellsFargo WFC 47.54 -0.10
Nasdaq ISE. standards
The list comprises the 1,000 largest companies lf-Late filing Gentex GNTX 21.02 0.71 Lowe's LOW 97.63 1.98 PrincipalFin PFG 45.14 -0.49 Tiffany TIF 86.97 1.07 UnumGroup UNM 31.61 0.18 Welltower WELL 70.31 1.22
based on market capitalization. q-Temporary exemption from Nasdaq GenuineParts GPC 95.15 0.53 LoxoOncology LOXO 232.29 -0.36 Procter&Gamble PG 92.46 0.34 Tilray TLRY 83.26 11.36 VEREIT VER 7.49 0.19 WestPharmSvcs WST 101.69 3.14
Underlined quotations are those stocks with requirements. Gerdau GGB 4.17 0.05 lululemon LULU 135.86 1.76 Progressive PGR 60.73 0.69 Toll Bros TOL 35.03 -0.30 VF VFC 74.61 1.63 WesternDigital WDC 38.11 -0.37
large changes in volume compared with the t-NYSE bankruptcy Gildan GIL 31.50 0.43 LyondellBasell LYB 88.61 1.67 Prologis PLD 60.90 1.96 Torchmark TMK 78.86 0.90 VICI Prop VICI 19.61 0.58 WesternGasEquity WGP 31.35 0.90
issue’s average trading volume. v-Trading halted on primary market. GileadSciences GILD 68.09 -0.47 PrudentialFin PRU 85.50 0.50 Toro TTC 58.16 0.88 Visa V 136.80 0.74 WesternGasPtrs WES 48.08 1.99
Boldfaced quotations highlight those issues vj-In bankruptcy or receivership or being GSK GSK 39.06 0.25 M N Prudential PUK 36.07 0.15 TorontoDomBk TD 51.11 0.20 VailResorts MTN 216.77 -1.92 WesternUnion WU 17.07 0.03
whose price changed by 5% or more if their reorganized under the Bankruptcy Code, GlobalPayments GPN 107.67 2.77 PublicServiceEnt PEG 51.68 0.20 Total TOT 54.19 -0.17 Vale VALE 14.06 0.23 WestlakeChem WLK 74.52 4.59
M&T Bank MTB 150.75 0.65 ValeroEnergy VLO 77.36
previous closing price was $2 or higher. or securities assumed by such companies. GoDaddy GDDY 63.09 -0.56 PublicStorage PSA 199.57 3.52 TotalSystem TSS 82.36 1.06 0.27 WestpacBanking WBK 18.28 0.24
MGM Resorts MGM 27.21 0.70 VarianMed VAR 122.62 0.69
Goldcorp GG 9.52 -0.06 PulteGroup PHM 28.34 0.13 ToyotaMotor TM 122.31 1.03 WestRock WRK 39.84 -0.11
MPLX MPLX 33.65 0.65 Vectren VVC 71.78 -0.03
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and GoldmanSachs GS 175.37 -0.65 Qiagen QGEN 35.67 0.47 TractorSupply TSCO 83.50 -0.05 Weyerhaeuser WY 23.62 0.14
Graco GGG 42.33 0.74 MSCI MSCI 150.34 3.06 Vedanta VEDL 11.27 0.09
changes in the closing prices from 4 p.m. the previous day. Qorvo QRVO 59.37 -0.41 TradeDesk TTD 128.05 3.48 WheatonPrecMet WPM 19.34 0.13
Grainger GWW 278.98 1.85 Macerich MAC 46.51 1.11 VeevaSystems VEEV 94.78 0.69
Qualcomm QCOM 55.95 -0.49 TransCanada TRP 39.79 0.67 Whirlpool WHR 118.72 2.61
Grifols GRFS 19.22 0.29 Macy's M 30.83 0.92 Ventas VTR 58.50 0.58
QuestDiag DGX 84.23 1.59 TransDigm TDG 345.86 4.33 Williams WMB 24.87 0.72
Tuesday, January 8, 2019 Net Net GrubHub GRUB 81.09 1.24 MadisonSquGarden MSG 269.40 0.92 VeriSign VRSN 156.92 5.52
QurateRetailB QRTEB 20.33 0.02 TransUnion TRU 56.09 0.50 WillisTowers WLTW 152.58 0.97
Net Stock Sym Close Chg Stock Sym Close Chg GpoAvalAcc AVAL 6.49 0.03 MagellanMid MMP 61.62 1.30
QurateRetailA QRTEA 20.59 0.44 VeriskAnalytics VRSK 111.07 0.98
MagnaIntl MGA 47.64 1.17 Travelers TRV 117.84 -0.46 Wipro WIT 5.11 0.05
Stock Sym Close Chg GrupoTelevisa TV 12.68 0.06 Trimble TRMB 33.62 0.94 Verizon VZ 58.38 1.66 WooriBank WF 39.81 0.49
BectonDicknsn BDX 222.70 4.06 Credicorp BAP 227.49 0.74
BeiGene BGNE 139.53 7.85 CreditAcceptance CACC 410.62 4.06
Guidewire GWRE 84.07 1.41 ManulifeFin MFC 15.21 0.28 R S TripAdvisor TRIP 57.17 1.93 VertxPharm VRTX 178.19 2.34 Workday WDAY 166.95 3.45
A B C Berkley WRB 72.00 -0.53 CreditSuisse CS 11.55 0.16
HCA Healthcare HCA 126.19 1.75 MarathonOil MRO 15.48
MarathonPetrol MPC 62.87
-0.14
0.61 RELX RELX 21.23 0.22 21stCenturyFoxA FOXA 48.61 0.43 Viacom B VIAB 28.71 0.54 WW Ent WWE 80.74 1.01
HCP HCP 28.61 0.31 Viacom A VIA 32.07 0.32
ABB ABB 19.50 0.28 BerkHathwy B BRK.B 196.31 -0.60 CrownCastle CCI 107.54 -1.06 Markel MKL 1040.42 0.41 RPM RPM 54.70 1.89 21stCenturyFoxB FOX 48.36 0.42
VistraEnergy VST 23.47 0.01
Worldpay WP 77.98 0.91
HDFC Bank HDB 103.81 0.76 s Twilio TWLO 97.60 0.62 WynnResorts WYNN 112.90 3.43
ADT ADT 6.95 0.16 BerkHathwy A BRK.A 294300-1099.89 CrownHoldings CCK 45.45 0.62 MarketAxess MKTX 216.69 -0.17 RalphLauren RL 108.33 1.63
HD Supply HDS 37.89 0.30 VMware VMW 146.80 3.06
AES AES 15.05 0.34 BerryGlobal BERY 49.03 0.38 Ctrip.com CTRP 29.48 0.30
HP HPQ 21.21 0.26 Marriott MAR 109.76 1.75 RaymondJames RJF 75.33 0.54 Twitter TWTR 31.80 0.46
Vodafone VOD 19.72 -0.46
XPO Logistics XPO 60.24 1.06
Aflac AFL 45.30 0.14 BestBuy BBY 57.40 1.64 CubeSmart CUBE 28.90 0.75
HSBC HSBC 41.16 0.11 Marsh&McLen MMC 80.82 0.55 Raytheon RTN 157.21 1.85 TylerTech TYL 185.11 2.27
VornadoRealty VNO 64.02 1.64
XcelEnergy XEL 48.85 0.56
Bio-Techne TECH 147.32 1.44 Cullen/Frost CFR 93.58 1.23 MartinMarietta MLM 178.48 -0.69 RealtyIncome O 63.19 0.91 TysonFoods TSN 57.55 1.50 Xilinx XLNX 88.05 -1.71
AGNC Invt AGNC 17.80 -0.13 Halliburton HAL 29.20 0.38 VoyaFinancial VOYA 41.71 0.54
ANGI Homesvcs ANGI 15.41 -0.01 Bio-RadLab A BIO 235.53 1.86 Cummins CMI 137.20 0.36
HarleyDavidson HOG 36.43 0.72 MarvellTech MRVL 16.69 0.08 RedHat RHT 174.78 0.28 UBS Group UBS 13.00 0.03
VulcanMatls VMC 103.14 -0.41
Xylem XYL 66.57 0.62
CyrusOne CONE 52.92 1.21 UDR UDR 39.48 0.88 YPF YPF 14.23 -0.30
Ansys ANSS 148.05 0.73 Biogen BIIB 324.44 2.04
Harris HRS 133.74 -0.05 Masco MAS 31.89 0.29 RegencyCtrs REG 58.88 1.22
ARRIS Intl ARRS 30.72 -0.01 BioMarinPharm BMRN 92.30 2.11 Masimo MASI 105.94 1.84 RegenPharm REGN 397.26 0.63 UGI UGI 54.58 0.41
W X Y Z Yandex YNDX 29.09 0.07
ASML ASML 156.43 -1.16 BlackKnight BKI 46.13 ... D E F HartfordFinl HIG 43.39 -0.59
Hasbro HAS 85.41 2.12 Mastercard MA 192.28 1.39 RegionsFin RF 14.54 0.15 US Foods USFD 33.36 0.20 YumBrands YUM 91.18 -0.18
AT&T T 31.28 0.39 BlackRock BLK 397.91 5.00
DISH Network DISH 28.68 0.08 HealthcareAmer HTA 26.16 0.45 MatchGroup MTCH 44.78 1.41 ReinsGrp RGA 142.40 0.13 s USG USG 43.16 0.20 WABCO WBC 108.98 2.07 YumChina YUMC 33.58 -0.62
AbbottLabs ABT 68.30 -0.83 Blackstone BX 31.40 0.27
DTE Energy DTE 110.59 0.97 Heico HEI 77.42 1.62 MaximIntProducts MXIM 49.82 -0.76 RenaissanceRe RNR 129.49 0.21 UbiquitiNetworks UBNT 104.00 0.75 WEC Energy WEC 68.65 0.70 ZTO Express ZTO 16.54 -0.09
AbbVie ABBV 90.79 0.42 BlockHR HRB 25.45 0.15
DXC Tech DXC 59.16 1.80 Heico A HEI.A 62.04 1.30 McCormick MKC 140.30 2.46 RepublicSvcs RSG 73.98 0.88 UltaBeauty ULTA 276.00 5.00 WEX WEX 150.57 5.89 ZayoGroup ZAYO 25.23 0.42
Abiomed ABMD 318.42 3.62 bluebirdbio BLUE 113.67 0.03 Danaher DHR 103.43 2.57 Helm&Payne HP 51.00 0.33 McCormickVtg MKC.V 138.64 0.64 ResMed RMD 113.51 2.29 UltSoftware ULTI 259.69 6.29 W.P.Carey WPC 68.12 1.52 ZebraTech ZBRA 156.33 1.04
Accenture ACN 145.14 3.58 Boeing BA 340.53 12.42
Darden DRI 105.62 1.68 HenrySchein HSIC 75.37 1.22 McDonalds MCD 180.60 0.38 RestaurantBrands QSR 54.54 -1.07 UltraparPart UGP 13.60 -0.10 WPP WPP 56.09 0.47 Zendesk ZEN 63.25 1.97
ActivisionBliz ATVI 49.97 1.47 BookingHldgs BKNG 1686.92 -24.90 DaVita DVA 54.06 -0.31 Herbalife HLF 58.39 -0.41 McKesson MCK 117.71 2.35 RingCentral RNG 88.37 1.76 UnderArmour A UAA 18.87 0.20 WPX Energy WPX 12.93 0.06 Zillow C Z 31.76 0.91
Adobe ADBE 232.68 3.42 BoozAllen BAH 45.90 0.30
Deere DE 156.92 2.76 Hershey HSY 106.47 1.06 MedicalProp MPW 16.61 0.29 RioTinto RIO 50.30 0.61 UnderArmour C UA 17.24 0.13 Wabtec WAB 71.00 0.43 Zillow A ZG 31.81 0.83
AdvanceAuto AAP 160.02 -1.12 BorgWarner BWA 37.41 1.14 DeltaAir DAL 47.47 -0.38 Hess HES 48.48 0.60 Medtronic MDT 83.03 0.58 RobertHalf RHI 57.34 1.44 Unilever UN 53.54 -0.02 WalgreensBoots WBA 71.37 1.40 ZimmerBiomet ZBH 101.57 -2.33
AdvMicroDevices AMD 20.75 0.18 BostonProps BXP 115.53 3.32
DentsplySirona XRAY 39.44 -0.27 HewlettPackard HPE 13.80 -0.27 MelcoResorts MLCO 19.70 0.89 Rockwell ROK 153.36 1.98 Unilever UL 52.34 0.01 Walmart WMT 95.20 0.66 ZionsBancorp ZION 43.18 0.39
UnionPacific UNP 150.75 12.10 WasteConnections WCN 75.54 0.85 Zoetis ZTS 86.54 1.27
Aegon AEG 4.89 ... BostonSci BSX 35.38 0.96
DeutscheBank DB 8.74 0.04 Hill-Rom HRC 90.58 1.61 MercadoLibre MELI 328.49 -0.45 RogersComm B RCI 53.43 0.56
AerCap AER 42.97 -0.64 Braskem BAK 25.65 0.16
DevonEnergy DVN 25.55 0.20 Hilton HLT 71.86 1.12 Merck MRK 75.99 0.56 Rollins ROL 37.26 0.66 UnitedContinental UAL 82.38 -0.85 WasteMgt WM 92.34 1.29 Zscaler ZS 43.98 0.42
AffiliatedMgrs AMG 102.37 -0.18 BrightHorizons BFAM 111.07 0.32 DexCom DXCM 131.52 1.57 HollyFrontier HFC 51.82 -0.52 MetLife MET 42.77 0.22 RoperTech ROP 269.14 0.54
AgilentTechs A 67.83 0.98 Bristol-Myers BMY 47.99 -0.42 MettlerToledo MTD 556.53 22.95 RossStores ROST 91.54 2.61
Diageo DEO 140.22 1.69 Hologic HOLX 40.86 0.37
AgnicoEagle AEM 39.62 -0.18 BritishAmTob BTI 32.01 0.30 MicroFocus MFGP 18.52 0.52 RoyalBkCanada RY 70.60 -0.01
AirProducts APD 158.09 -1.84 Broadcom
BroadridgeFinl
AVGO 236.07 -1.91
BR 98.36 1.21
DiamondbkEner FANG 104.95
DigitalRealty DLR 107.34
2.32
1.14
HomeDepot HD 177.89 0.85
HondaMotor HMC 28.48 0.66 MicrochipTech MCHP 72.96
MicronTech MU 33.74
1.93 RoyalBkScotland RBS
-0.26 RoyalCaribbean RCL 103.93
5.82 0.06
2.10
BANKRATE.COM® MMA, Savings and CDs
AkamaiTech AKAM 62.45 1.21 DiscoverFinSvcs DFS 61.50 0.11 Honeywell HON 135.09 -0.28
AlaskaAir ALK 60.65 0.53 BrookfieldMgt BAM 40.08 0.04 DiscoveryB DISCB 37.00 -3.16 HormelFoods HRL 42.31 0.11 Microsoft MSFT 102.80 0.74 RoyalDutchA RDS.A 60.26 -0.37
Albemarle ALB 77.33 0.75 BrookfieldInfr BIP 37.06 0.29
DiscoveryA DISCA 27.24 0.71 DR Horton DHI 37.25 -0.15 MidAmApt MAA 95.08 1.88 RoyalDutchB RDS.B 61.82 -0.18 Average Yields of Major Banks Tuesday, January 8, 2019
Alcoa AA 28.25 -0.17 BrookfieldPropREIT BPR 17.00 -0.17 DiscoveryC DISCK 25.20 0.50 HostHotels HST 17.40 0.42 Middleby MIDD 107.06 2.50 RoyalGold RGLD 84.88 0.56
Brown&Brown BRO 27.73 0.36 MitsubishiUFJ MUFG 5.17 0.06 Ryanair RYAAY 71.46 -1.54 Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
AlexandriaRlEst ARE 116.79 2.65 Disney DIS 111.42 0.86 HuanengPower HNP 25.66 0.29
AlexionPharm ALXN 108.61 0.67 Brown-Forman B BF.B 46.99 0.14 DocuSign DOCU 42.08 0.39 Huazhu HTHT 29.38 -1.23 MizuhoFin MFG 3.16 0.01 SAP SAP 101.27 1.56 National average
Alibaba BABA 146.79 3.69 Brown-Forman A BF.A 46.97 0.16 DolbyLab DLB 62.72 0.42 Hubbell HUBB 101.10 0.35 MobileTeleSys MBT 7.95 0.10 S&P Global SPGI 175.23 1.59
Savings 0.26 0.10 0.10 0.29 0.39 0.78 0.95 0.92 1.38
AlignTech ALGN 192.95 3.03 Bunge BG 55.73 0.38
DollarGeneral DG 113.48 0.54 HubSpot HUBS 136.84 3.56 Moderna MRNA 16.95 0.68 SBA Comm SBAC 167.26 2.67
Alleghany Y 614.68 -1.85
BurlingtonStrs BURL 166.43 -0.45
DollarTree DLTR 98.60 0.64 HudsonPacProp HPP 28.94 0.88 MohawkInds MHK 123.06 -1.09 SEI Investments SEIC 46.70 0.42 Jumbos 0.49 0.10 0.11 0.30 0.47 0.82 0.98 0.98 1.44
Allegion ALLE 81.44 1.11 CBD Pao CBD 22.55 0.31 MolinaHealthcare MOH 128.31 10.56 SINOPEC SHI 45.53 -0.07 Weekly change
DominionEner D 72.34 0.83 Humana HUM 274.93 -1.65
Allergan AGN 145.60 3.16 CBRE Group CBRE 41.32 1.31 Domino's DPZ 242.21 -4.22 JBHunt JBHT 95.88 2.64 MolsonCoors A TAP.A 69.00 3.77 SK Telecom SKM 27.36 -0.12
Savings 0.00 0.00 0.00 0.00 -0.01 0.02 -0.01 0.01 0.00
AllianceData ADS 164.50 2.81 CBS B CBS 48.37 0.70
Donaldson DCI 44.49 1.27 HuntingtonBcshs HBAN 12.55 0.12 MolsonCoors B TAP 61.17 1.59 SLGreenRealty SLG 85.00 3.29
AlliantEnergy LNT 42.07 0.64 CBS A CBS.A 48.28 0.44
DouglasEmmett DEI Momo MOMO 26.60 0.38 SS&C Tech SSNC 46.24 0.53 Jumbos 0.00 0.00 0.00 -0.01 -0.03 0.01 -0.02 -0.02 -0.02
34.23 0.73 HuntingIngalls HII 194.67 -1.32
AllisonTransm ALSN 45.80 1.51 CDK Global CDK 49.44 0.33 Dover DOV 75.56 1.63 HyattHotels H 68.66 1.05 Mondelez MDLZ 42.08 0.96 StoreCapital STOR 28.68 0.52
Allstate ALL 82.53 -0.01 CDW CDW 80.27 2.70 MonsterBev MNST 52.83 3.10 SVB Fin SIVB 207.06 2.02
DowDuPont DWDP 55.39 0.63 IAC/InterActive IAC 185.27 4.24
AllyFinancial ALLY 24.09 0.22
CF Industries CF
CGI Group GIB
45.39 1.28
62.88 1.32
DrReddy'sLab RDY 36.90 0.37 ICICI Bank IBN 10.76 0.31 Moody's
MorganStanley MS
MCO 145.90
41.45
2.09 Sabre SABR 22.07
-0.26 SageTherap SAGE 129.40
0.19
-9.73
Consumer Savings Rates
AlnylamPharm ALNY 85.34 3.56 Dropbox DBX 22.07 0.31 IdexxLab IDXX 189.29 2.40
CH Robinson CHRW 83.76 0.67 Mosaic MOS 31.36 0.74 Salesforce.com CRM 145.72 3.50 Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-
Alphabet C GOOG 1076.28 7.89 DukeEnergy DUK 86.08 1.07 IHSMarkit INFO 49.76 0.43
CME Group CME 182.66 -1.09 MotorolaSol MSI 119.51 3.41 Sanofi SNY 42.77 0.55 erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
Alphabet A GOOGL 1085.37 9.45 DukeRealty DRE 26.48 0.86 ING Groep ING 11.42 0.11
CMS Energy CMS 49.33 0.73 Mylan 0.12 SantanderCons SC 19.00 0.13
Altaba AABA 61.04 1.40
CNA Fin CNA 43.94 -0.30
D&B DNB 143.50 0.19 Invesco IVZ 17.28 -0.19 MYL 29.87 of 2017 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
AlticeUSA ATUS 18.04 0.13 Dunkin' DNKN 69.72 1.47 IPG Photonics IPGP 120.80 3.99 NICE NICE 107.75 0.44 SareptaTherap SRPT 110.94 0.92
CNH Indl CNHI 9.49 not an indication of financial strength or weakness. Information is believed to be reliable, but not

.
... NIO NIO 6.40 -0.10 Sasol SSL 30.80 0.40
Altria MO 49.06 0.28 ENI E 32.44 -0.25 IQVIA IQV 119.63 2.43
CNOOC CEO 161.07 3.08 NRG Energy NRG 40.00 0.60 Schlumberger SLB 40.67 0.50 guaranteed.
AlumofChina ACH 8.48 0.33 EOG Rscs EOG 95.52 1.01 IcahnEnterprises IEP 65.66 1.16

ly
CPFLEnergia CPL 15.25 0.15
Amazon.com AMZN 1656.58 27.07
Ambev ABEV 4.33 -0.02
CRH CRH 27.51 0.16
EPAM Systems EPAM 125.37
EQM Midstream EQM 45.52
2.03
1.61
Icon
IDEX
ICLR 131.70 7.48
IEX 134.90 3.07
NVR
NXP Semi
NVR 2494.96
NXPI 76.44
23.95 SchwabC
0.43 Seagate
SCHW 43.28
STX 39.14
0.54
-0.02
High yield savings
CSX CSX 63.35 0.90 Nasdaq NDAQ 79.58 -0.23 SealedAir SEE 36.05 0.49 Bank/rank Yield Bank/rank Yield
Amdocs DOX 59.14 0.49 E*TRADE ETFC 46.35 0.78 IllinoisToolWks ITW 130.01 2.80
CVS Health CVS 68.53 -0.08 NationalGrid NGG 50.30 0.53 SeattleGenetics SGEN 67.23 4.31 Phone number Minimum (%) Phone number Minimum
Amerco UHAL 339.01 -1.57 EXACT Sci EXAS 76.16 0.80 Illumina ILMN 293.75 -14.14 (%)
CabotOil COG 24.42 0.35 NatlInstruments NATI 46.93 1.52 SempraEnergy SRE 113.53 3.09
Ameren AEE 64.86 1.01 EastWestBncp EWBC 46.75 0.67 ImperialOil IMO 26.53 0.35
AmericaMovil A AMOV 15.52 0.72
CadenceDesign CDNS 43.67 0.25
EastmanChem EMN 75.44
on 0.60 Incyte INCY 74.90 0.69 NatlOilwell NOV 27.96 0.23 SensataTechs ST 44.20 0.09 Money market and savings account Six-month CD
CAE CAE 19.57 0.37 0.63 ServiceCorp SCI
AmericaMovil AMX 15.51 0.77 CamdenProperty CPT 87.24 2.08 Eaton ETN 68.18 -0.55 Infosys INFY 9.75 0.04 NatlRetailProp NNN 48.23 41.55 1.15 VirtualBank /4 $100 2.36 First Internet Bank of Indiana /4 $1,000 2.48
AmerAirlines AAL 32.42 -0.53 CampbellSoup CPB 33.59 0.25 eBay EBAY 30.00 0.53 Ingersoll-Rand IR 92.55 0.42 NektarTherap NKTR 40.68 4.06 ServiceNow NOW 188.11 1.44 (877) 998-2265 (888) 873-3424
AmCampus ACC 42.18 0.92 CanadaGoose GOOS 48.07 1.32 Ecolab ECL 148.89 1.79 Ingredion INGR 95.12 0.64 NetApp NTAP 58.67 -0.46 ShawComm B SJR 19.20 -0.06
Netease NTES 242.41 2.92 SherwinWilliams SHW 398.79 2.81
Goldman Sachs Bank USA /5 $1 2.25 VirtualBank /4 $10,000 2.46
AEP AEP 73.93 0.90 CIBC Ecopetrol EC 18.28 0.51 IntegratedDevice IDTI 48.10 0.04
AmerExpress AXP 98.65 0.48 CanNtlRlwy CNI
CM 78.18 0.35
EdisonInt EIX 57.66 0.32 Intel INTC 47.74 0.30 Netflix NFLX 320.27 4.93 t ShinhanFin SHG 34.41 -0.45 (855) 730-7283 (877) 998-2265
77.85 0.42 Presidential Bank, FSB /3 $100,000 2.25 MyeBanc,ADivisionofBACFloridaBank/4 $5,000 2.45
us l,

AmericanFin AFG 89.85 0.11 CanNaturalRes CNQ 26.03 0.11 EdwardsLife EW 152.61 2.87 ICE ICE 72.15 -1.23 Neurocrine NBIX 84.42 2.56 Shopify SHOP 145.44 1.05
AmHomes4Rent AMH 20.09 0.38 CanPacRlwy CP 187.77 3.62 ElancoAnimal ELAN 32.51 -0.14 InterContinentl IHG 55.61 1.42 NewOrientalEduc EDU 58.74 0.12 SignatureBank SBNY 111.40 2.10 (800) 383-6266 (855) 512-0989
AIG AIG 40.57 0.16 Canon Elastic ESTC 74.45 1.35 IBM IBM 119.83 1.68 NewResidInvt NRZ 15.23 0.15 SimonProperty SPG 173.18 4.04
CAJ 27.98 0.10
AmerTowerREIT AMT 161.09 1.80 CanopyGrowth CGC 29.64 0.74 ElbitSystems ESLT 123.00 1.00 IntlFlavors IFF 137.09 -0.60 NewellBrands NWL 19.70 0.20 SiriusXM SIRI 6.35 0.13 One-month CD One-year CD
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ElectronicArts EA 89.02 1.43 NewmontMin NEM 34.07 0.10 Skyworks SWKS 65.19 0.70 Colorado Federal Savings Bank /4 $5,000 1.35 First Internet Bank of Indiana /4 $1,000 2.89
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AmerWaterWorks AWK 90.14 1.30 CapitalOne COF 80.02 0.04 IntlPaper IP 43.36 0.59
EmersonElec EMR 60.67 0.50 Interpublic IPG NewsCorp B NWS 12.32 0.12 SmithAO AOS 46.01 1.10
Ameriprise AMP 111.94 0.70 Capri CPRI 40.92 0.92 21.89 0.65 (877) 484-2372 (888) 873-3424
AmerisourceBrgn ABC 75.55 0.80 CardinalHealth CAH 46.50 0.70 Enbridge ENB 34.20 0.69 Intuit INTU 203.76 4.77 NewsCorp A NWSA 12.16 0.18 Smith&Nephew SNN 36.58 0.28
Encana ECA 6.41 0.13 NextEraEnergy NEE 173.54 1.26 Smucker SJM 99.68 2.51 Presidential Bank, FSB /3 $1,000 1.00 VirtualBank /4 $10,000 2.86
Ametek AME 68.94 1.00 Carlisle IntuitiveSurgical ISRG 482.99 4.55
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CSL 102.59 1.55 NielsenHoldings NLSN 25.41 0.41 Snap SNAP 6.40 0.19 (800) 383-6266 (877) 998-2265
Amgen AMGN 200.61 2.54 Carlyle EncompassHealth EHC 64.53 1.33 InvitatHomes INVH 20.18 0.38
CG 17.00 0.46
Amphenol APH 79.14 1.02 CarMax KMX 64.91 -1.52
EnelAmericas ENIA 9.61 0.09 IonisPharma IONS 57.20 0.39 Nike NKE 76.73 1.01 SnapOn SNA 154.65 1.95 EH National Bank /4 $0 0.83 CD Bank /4 $10,000 2.80
AnadarkoPetrol APC 47.34 0.35 Carnival EnelChile ENIC 4.91 -0.04 iQIYI IQ 16.98 -0.24 NiSource NI 26.16 0.48 SOQUIMICH SQM 40.90 1.42 (888) 392-5265 (888) 201-8185
CCL 51.90 1.26 NobleEnergy NBL 21.32 -0.07 SonocoProducts SON 52.38 0.39
AnalogDevices ADI 85.24 2.03 Carnival EnergyTransfer ET 14.78 0.32 IronMountain IRM 34.29 0.74
CUK 51.55 1.27
AndeavorLog ANDX 36.89 1.11 Caterpillar CAT 129.77 1.54
Entergy ETR 85.90 1.50 IsraelChemicals ICL 5.76 -0.03 Nokia NOK 6.15 0.13 Sony SNE 49.89 0.17 Two-month CD Two-year CD
EnterpriseProd EPD 27.52 0.40 ItauUnibanco ITUB 10.06 0.18 NomuraHoldings NMR 3.99 0.01 Southern SO 45.88 1.27
AngloGoldAsh AU 12.61 0.07 Celanese CE 93.61 1.29 Colorado Federal Savings Bank /4 $5,000 1.60 First Internet Bank of Indiana /4 $1,000 3.11
AB InBev BUD 70.75 1.35 Celgene Equifax EFX 94.39 0.71 Nordson NDSN 120.03 3.08 SoCopper SCCO 31.72 0.40
CELG 87.58 0.06
Equinix EQIX 361.86 7.36 J K L Nordstrom JWN 49.02 0.86 SouthwestAir LUV 47.54 -0.33 (877) 484-2372 (888) 873-3424
AnnalyCap NLY 9.80 -0.24 Cemex
er rs

Anthem ANTM 249.46 -0.89 CenovusEnergy CVE

CX 5.21 0.14
Equinor EQNR 22.58 0.10 NorfolkSouthern NSC 156.64 5.07 SpiritAeroSys SPR 75.55 2.29 Presidential Bank, FSB /3 $1,000 1.00 CD Bank /4 $10,000 3.07
7.89 0.10 JD.com JD 22.95 0.19
Aon AON 144.92 0.69 Centene EquitransMdstm ETRN 20.73 0.13 NorthernTrust NTRS 84.33 -0.64 Splunk SPLK 115.09 2.19 (800) 383-6266 (888) 201-8185
CNC 116.08 1.58 JPMorganChase JPM 100.57 -0.19
Apache APA 29.36 0.43 CenterPointEner CNP 29.34 0.55 EquityLife ELS 96.81 1.86
JackHenry JKHY 125.92 2.10
NorthropGrum NOC 250.96 1.13 Spotify SPOT 117.48 -1.88 VirtualBank /4 $10,000 0.15 VirtualBank /4 $10,000 3.06
EquityResdntl EQR 66.32 1.22 NorwegCruise NCLH 45.03 1.32 Sprint S 6.29 -0.03
ApartmtInv AIV 44.08 1.18 CentraisElBras EBR 8.25 0.59 JacobsEngg JEC 59.63 0.10 (877) 998-2265 (877) 998-2265
ApolloGlbMgmt APO 26.76 0.50 CenturyLink CTL 16.72 0.42 ErieIndemnity A ERIE 135.68 1.89 Novartis NVS 86.72 1.84 Square SQ 63.12 2.40
JazzPharma JAZZ 128.08 -0.68
Apple AAPL 150.75 2.82 Cerner CERN 53.13 1.20
EssexProp ESS 245.27 5.98
JefferiesFin JEF 18.46 0.17
NovoNordisk NVO 48.34 0.70 StanleyBlackDck SWK 128.07 2.32 Three-month CD Five-year CD
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ApplMaterials AMAT 32.91 -1.39 CharlesRiverLabs CRL 117.58 5.02 EsteeLauder EL 132.73 1.23 Nucor NUE 55.26 1.84 Starbucks SBUX 63.62 0.05
J&J JNJ 129.96 2.95 Nutanix NTNX 45.31 0.39 StarwoodProp STWD 20.41 0.22
First Internet Bank of Indiana /4 $1,000 2.07 First Internet Bank of Indiana /4 $1,000 3.40
Aptargroup ATR 93.52 1.57 CharterComms CHTR 300.71 -0.76 Etsy ETSY 53.88 2.31
EuronetWorldwide EEFT 103.31 1.84 JohnsonControls JCI 31.94 0.22 Nutrien NTR 49.21 1.47 StateStreet STT 65.27 0.28 (888) 873-3424 (888) 873-3424
Aptiv APTV 67.01 3.44 CheckPoint CHKP 107.57 2.70 JonesLang JLL 132.05
AquaAmerica WTR 33.56 0.40 Chemours EverestRe RE 213.40 2.03 4.42 NVIDIA NVDA 139.83 -3.57 SteelDynamics STLD 32.93 1.06 M.Y. Safra Bank, FSB /3 $1,000 1.95 M.Y. Safra Bank, FSB /3 $750 3.35
m rp

CC 33.19 1.31 JuniperNetworks JNPR 27.87 0.35

Aramark ARMK 29.85 0.13 CheniereEnergy LNG 64.37 1.83 Evergy EVRG 56.61 0.66 Steris STE 106.71 2.57 (212) 652-7200 (212) 652-7200
ArcelorMittal MT 22.20 0.64 CheniereEnerPtrs CQP 38.26 0.76 EversourceEner ES 65.10 1.17 KAR Auction KAR 46.95 0.39 O P Q STMicroelec STM 13.13 0.04 Colorado Federal Savings Bank /4 $5,000 1.95 Presidential Bank, FSB /3 $1,000 3.25
KB Fin KB 40.92 -0.21 StoneCo STNE 21.12 0.43
Exelixis EXEL 23.28 1.38
ArchCapital ACGL 26.43 0.10 Chevron CVX 111.77 -0.49 KKR KKR 21.13 0.44 OGE Energy OGE 39.91 0.91
Stryker SYK 158.90 1.90
(877) 484-2372 (800) 383-6266
ArcherDaniels ADM 42.70 0.78 ChinaEastrnAir CEA 27.76 0.08 Exelon EXC 45.39 0.69
KLA Tencor KLAC 91.13 -1.47 ONEOK OKE 58.87 1.23
SumitomoMits SMFG 6.99 0.03
Expedia EXPE 116.97 2.41
Arconic ARNC 19.47 0.06 ChinaLifeIns LFC 10.72 0.13
AristaNetworks ANET 214.28 4.36 ChinaMobile CHL 50.33 0.42 ExpeditorsIntl EXPD 67.86 0.62
KT KT
KSCitySouthern KSU 99.72
14.59 -0.05 OReillyAuto ORLY 336.07
1.69 OccidentalPetrol OXY 64.99
-3.62
0.51
SunComms SUI 101.36 1.55 High yield jumbos - Minimum is $100,000
ArrowElec ARW 70.07 -0.19 ChinaPetrol SNP 74.87 1.60 ExtraSpaceSt EXR 89.09 1.39 SunLifeFinancial SLF 33.97 0.02
Kellogg K 57.89 0.32 Okta OKTA 68.90 2.63
SuncorEnergy SU 29.90 0.20 Money market and savings account Six-month CD
AspenTech AZPN 86.61 1.48 ChinaSoAirlines ZNH 31.98 0.29 ExxonMobil XOM 72.04 0.52
KeurigDrPepper KDP 25.89 0.01 OldDomFreight ODFL 128.10 3.69
SunTrustBanks STI 54.78 0.11
F5Networks FFIV 164.82
co Fo

1.00
Assurant AIZ 90.92 0.11 ChinaTelecom CHA 51.36 0.28 KeyCorp KEY 15.73 -0.01 OldRepublic ORI 20.79 0.26
SuzanoPapelCel SUZ 19.45 0.40
VirtualBank /4 2.36 First Internet Bank of Indiana /4 2.48
AstraZeneca AZN 38.13 -0.65 ChinaUnicom CHU 10.78 FMC FMC 79.10 1.34
...
Facebook FB 142.53 4.48
KeysightTechs KEYS 65.65 1.16 OmegaHealthcare OHI 36.21 1.06
Symantec SYMC 19.58 0.25 (877) 998-2265 (888) 873-3424
AthenaHealth ATHN 132.85 0.47 Chipotle CMG 497.37 12.22 KilroyRealty KRC 64.73 1.37 Omnicom OMC 75.00 1.24
Athene ATH 41.46 -0.73 Chubb FactSet FDS 202.72 2.47 SynchronyFin SYF 25.42 0.05 M.Y. Safra Bank, FSB /3 2.01 VirtualBank /4 2.46
CB 126.38 -0.98 KimberlyClark KMB 114.95 1.56 ON Semi ON 16.54 -0.46
Atlassian TEAM 94.82 2.11 ChunghwaTel CHT 34.74 -0.46 FairIsaac FICO 197.17 3.72 Synopsys SNPS 86.10 0.34 (212) 652-7200 (877) 998-2265
KimcoRealty KIM 15.66 0.32 OpenText OTEX 33.71 0.95
SynovusFin SNV 34.05 0.82
AtmosEnergy ATO 92.21 1.19 Church&Dwight CHD 65.72 -0.16 Farfetch FTCH 19.52 0.77 ableBanking,adivisionofNortheastBank/5 1.85 MyeBanc,ADivisionofBACFloridaBank/4 2.45
KinderMorgan KMI 17.14 0.55 Oracle ORCL 47.88 0.43
Sysco SYY 62.78 0.98
Fastenal FAST 53.74 1.36
AuroraCannabis ACB 5.03 -0.23 s Ciena CIEN 36.65 1.06 KirklandLakeGold KL 25.92 1.01 Orange ORAN 15.76 -0.53 (877) 505-1933 (855) 512-0989
Autodesk ADSK 133.87 1.15 Cigna FederalRealty FRT 121.97 2.55
CI 189.93 3.43
FedEx FDX 167.02 0.29
Kohl's KSS 69.18 1.17 Orix IX 76.35 0.65 T U V One-month CD One-year CD
Autohome ATHM 77.22 -1.05 CimarexEnergy XEC 67.43 1.07 KoninklijkePhil PHG 34.44 0.46 t PG&E PCG 17.56 -1.39
ALV 75.12 3.73 CincinnatiFin CINF 75.48 -0.07 Ferrari RACE 108.58 4.10
Autoliv
FiatChrysler FCAU 15.34 0.16
KoreaElcPwr KEP 15.70 0.63 PNC Fin PNC 121.15 0.19 TAL Education TAL 27.46 0.60 Colorado Federal Savings Bank /4 1.35 First Internet Bank of Indiana /4 2.89
ADP ADP 131.30 0.77 Cintas CTAS 174.72 1.87 KraftHeinz KHC 45.37 0.04 POSCO PKX 55.30 -0.05 TD Ameritrade AMTD 51.27 0.74 (877) 484-2372 (888) 873-3424
AutoZone AZO 811.37 -10.95 CiscoSystems CSCO 43.56 0.35 FidNatlFin FNF 32.69 0.40
Kroger KR 28.46 0.54 PPG Ind PPG 101.07 0.83 TE Connectivity TEL 75.55 -0.25
Avalonbay AVB 174.26 3.54 Citigroup C 55.46 -0.15
FidNatlInfo FIS 103.19 0.77
PPL PPL 29.29 0.38 Telus TU 33.80 0.10
EH National Bank /4 0.85 VirtualBank /4 2.86
LATAMAirlines LTM 11.31 0.11
Avangrid AGR 49.25 0.84 CitizensFin CFG 32.01 ...
FifthThirdBncp FITB 25.03 0.13
L Brands LB 28.20 -0.67 PRA HealthSci PRAH 94.38 2.97 Ternium TX 28.71 0.43 (888) 392-5265 (877) 998-2265
AveryDennison AVY 91.81 0.93 CitrixSystems CTXS 103.85 0.80 58.com WUBA 57.53 -1.11 M.Y. Safra Bank, FSB /3 0.30 M.Y. Safra Bank, FSB /3 2.80
LG Display LPL 8.47 0.17 PTC PTC 84.10 1.59 TIM Part TSU 17.20 0.74
FirstData FDC 17.42 0.20
AxaltaCoating AXTA 24.58 0.66 Clorox CLX 151.14 -3.74
FirstRepBank FRC 86.57 -0.89
LINE LN 36.58 0.43 PVH PVH 101.35 2.79 TJX TJX 47.31 0.69 (212) 652-7200 (212) 652-7200
BB&T BBT 45.72 0.11 Coca-Cola KO 47.48 0.53 LKQ LKQ 24.82 0.65 Paccar PCAR 59.53 0.57 T-MobileUS TMUS 67.77 -0.67
FirstEnergy FE 38.18 0.54 Two-month CD Two-year CD
BCE BCE 41.12 0.75 Coca-Cola Euro CCEP 46.72 0.69 LPL Financial LPLA 63.43 0.97 PackagingCpAm PKG 89.26 2.24 TRowePrice TROW 92.32 0.47
Fiserv FISV 73.55 0.48
BHP Group BHP 49.33 -0.15 Coca-Cola Femsa KOF 64.58 0.38 L3 Tech LLL 170.82 0.14 PagSeguroDig PAGS 21.65 0.44 TableauSftwr DATA 123.99 0.02 Colorado Federal Savings Bank /4 1.60 First Internet Bank of Indiana /4 3.11
BHP Group BBL 43.01 0.07 Cognex FiveBelow FIVE 121.48 5.90
CGNX 40.95 2.03 LabCpAm LH 128.36 1.38 PaloAltoNtwks PANW 190.43 3.08 TaiwanSemi TSM 34.94 -0.29
(877) 484-2372 (888) 873-3424
BOK Fin BOKF 77.66 0.60 CognizantTech CTSH 64.32 0.72 FleetCorTech FLT 187.45 1.42
LamResearch LRCX 136.93 -2.36 ParkHotels PK 27.95 1.23 TakeTwoSoftware TTWO 107.92 3.51
n-

BP BP 40.03 -0.13 ColgatePalm CL 60.55 0.67

FlirSystems FLIR 43.91 0.91
LamarAdv LAMR 70.55 2.20 ParkerHannifin PH 155.05 3.17 TakedaPharm TAK 19.00 0.42 VirtualBank /4 0.15 VirtualBank /4 3.06
BT Group BT Flowserve FLS 40.00 0.95 (877) 998-2265 (877) 998-2265
14.83 -0.45 ColumbiaSportswr COLM 84.39 0.50 LambWeston LW 70.91 0.36 ParsleyEnergy PE 18.74 0.62 TallgrassEnergy TGE 23.80 -0.13
FomentoEconMex FMX 91.50 0.65
Baidu BIDU 163.40 0.80 Comcast A CMCSA 35.72 0.29
FootLocker FL 56.78 0.38
LasVegasSands LVS 56.58 1.11 Paychex PAYX 66.35 0.50 Tapestry TPR 35.42 0.81 Applied Bank /5 0.05 BankDirect /4 2.98
BakerHughes BHGE 23.21 0.66 Comerica CMA 72.32 0.19 Lear LEA 138.89 6.33 PaycomSoftware PAYC 127.14 3.03 TargaResources TRGP 42.70 1.68 (800) 616-4605 (877) 839-2737
Ball BLL 46.91 0.47 CommerceBcshrs CBSH 57.72 -0.07 FordMotor F 8.37 0.08
Leidos LDOS 53.91 0.41 PayPal PYPL 88.70 1.77 Target TGT 69.61 -0.07
Fortinet FTNT 71.55 1.46
BancoBilbaoViz BBVA 5.60 0.05 SABESP SBS 9.93 0.10 Lennar A LEN 42.89 0.51 s Pearson PSO 12.82 0.45 TataMotors TTM 12.96 0.21 Three-month CD Five-year CD
no

Fortis FTS 33.71 0.39

BancoBradesco BBDO 9.55 -0.35 EngGr-Cmg CIG 3.58 0.05 Lennar B LEN.B 34.63 0.37 PembinaPipeline PBA 32.42 0.56 TechnipFMC FTI 22.33 0.63 Luana Savings Bank /5 2.12 First Internet Bank of Indiana /4 3.40
Fortive FTV 68.11 0.31
BancodeChile BCH 29.90 0.36 EngGr-Cmg C CIG.C 3.91 -0.20 LennoxIntl LII 221.93 2.94 Pentair PNR 39.66 1.12 TeckRscsB TECK 22.04 0.90
BancSanBrasil BSBR 12.55 0.13 ConagraBrands CAG 21.44 -0.87
FortBrandsHome FBHS 40.94 0.14
0.05 TelecomArgentina TEO 15.23
(800) 666-2012 (888) 873-3424
LibertyBroadbandA LBRDA 76.54 0.20 People'sUtdFin PBCT 15.15 0.28
BcoSantChile BSAC 30.41 0.33 ConchoRscs CXO 119.45 4.43
Franco-Nevada FNV 68.51 -0.01
LibertyBroadbandC LBRDK 76.79 0.13 PepsiCo PEP 110.58 1.05 TelecomItalia TI 5.71 -0.01 First Internet Bank of Indiana /4 2.07 M.Y. Safra Bank, FSB /3 3.35
FranklinRscs BEN 30.59 0.18
(888) 873-3424 (212) 652-7200
BcoSantMex BSMX 6.49 0.08 ConocoPhillips COP 64.32 0.85 LibertyGlobal A LBTYA 20.76 -0.92 PerkinElmer PKI 78.77 2.05 TelecomItalia A TI.A 5.21 0.03
FreeportMcM FCX 11.20 0.20
BancoSantander SAN 4.81 0.03 ConEd ED 75.90 0.46
FreseniusMed FMS 33.42 -0.21
LibertyGlobal C LBTYK 20.28 -0.76 Perrigo PRGO 44.92 0.89 TeledyneTech TDY 212.04 3.56 Colorado Federal Savings Bank /4 1.95 Colorado Federal Savings Bank /4 3.25
BanColombia CIB 41.53 0.84 ConstBrands B STZ.B 171.00 -0.88 LibertyFormOne C FWONK 32.05 -0.04 PetroChina PTR 63.89 1.34 Teleflex TFX 252.84 2.66 (877) 484-2372 (877) 484-2372
BankofAmerica BAC 25.51 -0.05 ConstBrands A STZ 172.34 2.22 G H I LibertyFormOne A FWONA 31.16 0.05 PetroleoBrasil PBR 15.20 0.14 Ericsson ERIC 8.96 0.16
BankofMontreal BMO 68.34 0.79 ContinentalRscs CLR 46.90 1.12 LibertyBraves A BATRA 25.40 0.57 PetroleoBrasilA PBR.A 13.39 0.06 TelefonicaBras VIV 12.90 0.10 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
BankNY Mellon BK 47.62 -0.18 Cooper COO 253.83 7.06 Galapagos GLPG 103.43 2.82 LibertyBraves C BATRK 25.45 0.60 Pfizer PFE 43.43 0.20 Telefonica TEF 8.87 -0.02 are based on method of compounding and rate stated for the lowest required opening deposit to
BkNovaScotia BNS 52.16 0.46 Copart CPRT 49.63 0.80 Gallagher AJG 72.43 0.32 LibertySirius C LSXMK 38.97 0.58 PhilipMorris PM 67.87 0.45 TelekmIndonesia TLK 27.16 0.13 earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
Barclays BCS 8.01 0.05 Corning GLW 29.48 0.28 Gaming&Leisure GLPI 33.79 0.57 LibertySirius A LSXMA 38.68 0.42 Phillips66 PSX 91.39 -0.08 Tenaris TS 23.07 0.21
BarrickGold GOLD 12.34 -0.58 CoStar CSGP 344.93 3.07 Gap GPS 25.22 -1.11 LibertyProperty LPT 42.88 0.94 Pinduoduo PDD 24.00 0.79 TencentMusic TME 13.00 0.19
month, three (3) of which may be checks. Rates are subject to change.
BauschHealth BHC 22.68 0.32 Costco COST 208.55 1.55 Garmin GRMN 64.78 0.60 EliLilly LLY 116.34 1.06 PinnacleWest PNW 85.85 1.27 Teradyne TER 30.78 -0.37 Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
BaxterIntl BAX 65.99 -0.18 Coty COTY 7.52 -0.03 Gartner IT 128.46 2.12 LincolnNational LNC 53.55 -0.46 PioneerNatRscs PXD 142.20 -0.12 Tesla TSLA 335.35 0.39 Internet: www.bankrate.com

Mutual Funds Data provided by

Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
New Highs and Lows | WSJ.com/newhighs
TotalBd 10.08 ... 0.5 Oppenheimer Y CAITAdml 11.65 -0.01 0.4 LifeCon 18.88 +0.05 1.1
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. First Eagle Funds DevMktY NA ... NA CapOpAdml r135.98 +1.09 3.0 LifeGro 30.75 +0.19 2.3 The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
GlbA 52.04 +0.25 2.3 IntGrowY 35.70 +0.41 2.9 EMAdmr 32.37 +0.03 1.9 LifeMod 25.23 +0.12 1.7 American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e in the latest session. % CHG-Daily percentage change from the previous trading session.
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, FPA Funds Parnassus Fds EqIncAdml 67.91 +0.63 2.2 PrmcpCor 24.03 +0.12 2.7
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r FPACres 30.29 +0.16 2.6 ParnEqFd 39.67 +0.27 1.7 ExplrAdml 81.35 +1.34 4.6 SelValu r 23.62 +0.25 5.1
Franklin A1 PGIM Funds Cl Z ExtndAdml 79.54 +1.14 5.1 STAR 24.23 +0.12 2.1 Tuesday, January 8, 2019
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper; CA TF A1 p 7.26 -0.01 0.4 TotalReturnBond 13.94 -0.01 0.3 GNMAAdml 10.26 -0.01 0.2 TgtRe2015 14.02 +0.04 1.2 52-Wk % 52-Wk % 52-Wk %
IncomeA1 p 2.19 +0.01 2.8 PIMCO Fds Instl GrwthAdml 71.24 +0.85 3.1 TgtRe2020 29.06 +0.11 1.5 Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
FrankTemp/Frank Adv AllAsset NA ... NA HlthCareAdml r 82.28 +0.73 2.4 TgtRe2025 17.31 +0.08 1.8 Inovalon INOV 14.76 4.7
AVROBIO AVRO 12.96 -17.4
IncomeAdv 2.17 +0.01 2.9 ShortT 9.77 +0.01 0.1 HYCorAdml r 5.57 +0.03 2.7 TgtRe2030 31.44 +0.17 2.0 Highs IntecPharma
IntelligentSys INS
NTEC 8.50
16.95
2.3
ArloTech
-2.9
AxoGen
ARLO
AXGN
8.18 -6.1
15.01 -7.3
Tuesday, January 8, 2019 FrankTemp/Franklin A TotRt 9.94 ... 0.2 InfProAd 24.59 +0.02 0.4 TgtRe2035 19.23 +0.11 2.2 Alteryx AYX 70.47 -2.5 LegacyAcqnUn LGC.U AzurePowerGlbl AZRE
10.23 -0.1 8.25 -1.7
Net YTD Net YTD Net YTD RisDv A p 56.31 +0.54 1.8 PIMCO Funds A IntlGrAdml 81.53 +0.43 2.9 TgtRe2040 33.10 +0.22 2.4 AquaVenture WAAS 21.17 1.6 Materialise MTLS 22.99 1.9
ContraFect CFRX 0.58 -21.9
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret FrankTemp/Franklin C IncomeFd NA ... NA ITBondAdml 11.00 -0.02 -0.1 TgtRe2045 20.74 +0.15 2.6 arGEN-X ARGX 114.84 2.8 MMTec MTC 6.60 48.5
Cutera CUTR 12.32 -6.9
TgtRe2050 AxsomeTherap AXSM 9.16 29.3 Organogenesis ORGO DiplomatPharmacy DPLO
13.45 32.4 12.30 1.3
American Century Inv CoreBond 9.87 -0.01 -0.1 SerLTTreBdIdx 8.54 -0.02 0.2 Income C t 2.22 +0.01 2.7 PIMCO Funds I2 ITIGradeAdml 9.38 -0.01 ... 33.37 +0.24 2.6
BK Tech BKTI 4.36 1.7
Income NA ... NA TgtRetInc 12.86 +0.03 0.9 PDL Biopharm PDLI EaglePointNts27 ECCY
3.19 1.3 23.90 -1.2
Ultra 42.11 +0.51 4.2 CorePlusBond 9.79 -0.01 0.1 TMktIdxF r 72.81 +0.76 3.1 FrankTemp/Temp A LTGradeAdml 9.58 +0.01 0.2 Barnes&Noble BKS 7.81 1.7 Pearson PSO 12.83 3.6
FirstFinIN THFF 37.41 -10.1
American Funds Cl A Del Invest Instl TMktIdxInstPrem72.79 +0.76 3.1 Growth A p 21.52 +0.08 3.8 PIMCO Funds Instl MidCpAdml 177.14 +2.15 3.6 TotIntBdIxInv 10.83 -0.01 -0.2 CFFinanceAcqn CFFAU 10.07 0.4 Phunware PHUN GrafIndlWt
85.00 36.4 GRAF.WS 0.25 -6.3
AmcpA p 28.68 +0.27 2.8 Value 20.16 +0.18 3.0 USBdIdxInstPrem11.27 -0.01 ... FrankTemp/Temp Adv IncomeFd NA ... NA MorgAdml 83.68 +0.98 3.9 WellsI 24.61 +0.08 0.7 ChinaSXTPharm SXTC 7.00 6.5 PureAcqn PACQ Gridsum
9.89 0.3 GSUM 1.38 -5.6
Welltn Ciena CIEN 36.69 3.0 HutchisonChina HCM 20.83 2.0
AMutlA p 38.19 +0.32 1.8 Dimensional Fds Fidelity Advisor I GlBondAdv p 11.38 +0.02 1.2 Price Funds MuHYAdml 11.19 -0.01 0.3 37.60 +0.17 1.3
Crocs CROX 30.75 3.3
RaPharm RARX 23.90 -6.4
BlChip 99.55 +1.22 3.7 WndsrII 32.00 +0.22 2.8 Rent-A-Center RCII Jewett-Cameron JCTCF
17.00 4.8 6.23 -9.1
BalA p 25.21 +0.12 1.2 5GlbFxdInc 10.55 -0.01 ... NwInsghtI 28.18 +0.29 3.8 Guggenheim Funds Tru MuIntAdml 13.95 -0.01 0.3 DormanProducts DORM 94.20 -1.0 SendGrid SEND LaJolla
48.86 0.6 LJPC 5.01 4.0
BondA p 12.55 -0.03 -0.1 DFARlEst 33.48 +0.66 2.4 Fidelity Freedom TotRtnBdFdClInst 26.60 -0.02 0.1 EqInc 28.09 +0.19 2.9
MuLTAdml 11.40 -0.02 0.3
VANGUARD INDEX FDS Dryships DRYS 7.22 -6.1 TFS Fin TFSL LincolnNatlWt LNC.WS
16.97 0.4 48.82 -1.0
Harbor Funds EqIndex 68.62 +0.66 2.7 500 237.74 +2.29 2.7 eHealth EHTH 41.85 5.8 TiberiusAcqn TIBR MDJM
9.82 0.2 MDJH 4.40 -6.0
CapIBA p 57.04 +0.20 1.3 EmgMktVa 27.27 -0.01 1.6 FF2020 14.94 +0.06 1.8 MuLtdAdml 10.88 ... 0.2 EVTC 30.20 -0.3
CapApInst 64.63 +0.75 4.3 Growth 59.32 +0.72 3.9 SmValAdml 51.42 +0.71 4.9 Evertec TribuneMediaA TRCO MaxarTech
45.64 -0.2 MAXR 5.04 -24.9
CapWGrA 43.58 +0.21 1.8 EmMktCorEq 19.46 -0.03 1.1 FF2025 13.01 +0.06 2.0 MuShtAdml 15.74 ... 0.1 FidelitySouthern LION 27.95 0.4 TrinityMergerUn TMCXU MTechAcqnWt MTECW
10.35 ... 0.45 10.0
Harding Loevner HelSci 69.88 +0.78 4.3 TotBd2 10.41 -0.01 ...
EupacA p 45.86 +0.12 1.7 IntlCoreEq 12.12 +0.09 3.6 FF2030 16.06 +0.09 2.4 PrmcpAdml r124.37 +0.91 2.8 Fluidigm FLDM 9.26 5.0 Twilio TWLO Nuvasive
100.95 0.6 NUVA 43.51 -2.0
IntlEq NA ... NA InstlCapG 36.98 +0.49 3.6 TotIntl 15.57 +0.07 2.6 GluMobile GLUU 8.95 5.4 PG&E PCG 15.78 -7.3
FdInvA p 53.52 +0.43 2.4 IntlVal 16.50 +0.09 3.6 Freedom2020 K 14.92 +0.06 1.8 RealEstatAdml108.61 +2.18 2.7 USG USG 43.50 0.5
Invesco Funds A IntlStk 15.32 +0.03 2.3 TotSt 64.00 +0.67 3.1 GreenlandAcqn GLAC 9.92 0.2 UnitedGuardian UG RegalwdGlbEnWt RWGE.WS
20.75 0.4 0.97 -3.0
GwthA p 44.23 +0.41 3.4 IntSmCo 16.56 +0.12 4.0 Freedom2025 K 12.99 +0.06 2.0 SmCapAdml 66.43 +1.03 5.1 HartfordFinPfdG HIGpG 26.46 0.3
9.37 +0.04 2.7 IntlValEq 12.40 +0.05 2.7 VANGUARD INSTL FDS UnvlTechInst UTI ShinhanFin
4.08 -6.4 SHG 34.15 -1.3
HI TrA p 9.84 +0.04 2.7 IntSmVa 17.34 +0.11 4.1 Freedom2030 K 16.03 +0.08 2.4 EqIncA SmGthAdml 55.72 +0.97 5.2 HaymakerAcqnUn HYACU 11.00 4.4 TanRoyExplr TRX 0.30 -6.1
MCapVal 25.19 +0.19 3.2 BalInst 33.61 +0.20 1.8 WhiteHorseNts2025 WHFBZ 25.19 0.2
ICAA p 34.70 +0.27 2.3 TAUSCoreEq2 16.65 +0.18 3.6 Freedom2035 K 13.35 +0.09 2.9 JPMorgan Funds STBondAdml 10.29 -0.01 -0.1 HopFedBancorp HFBC 18.75 31.0 360Finance QFIN 13.03 -4.4
MidCap 78.52 +0.89 2.8 DevMktsIndInst 12.31 +0.06 2.8
IncoA p 20.95 +0.08 1.6 US CoreEq1 21.28 +0.23 3.6 Freedom2040 K 9.31 +0.06 3.0 MdCpVal L 34.05 +0.36 3.2
JPMorgan R Class N Inc 9.16 ... 0.2 STIGradeAdml 10.43 -0.01 ... DevMktsInxInst 19.24 +0.09 2.8
HoughtonMifflin HMHC
i3Verticals IIIV
10.50
27.09
5.5
-1.3
Lows TuanChe
Vaccinex
TC
VCNX
6.01 -2.7
3.32 1.7
N PerA p 38.62 +0.29 2.5 US CoreEq2 19.69 +0.21 3.7 Fidelity Invest NHoriz 50.40 +0.57 4.6 TotBdAdml 10.44 -0.01 ... Innoviva INVA 19.10 1.6 ARYA Sciences ARYAU 10.10 -0.3 ViveveMedical VIVE 0.93 -12.7
CoreBond 11.28 -0.01 ... ExtndInst 79.54 +1.15 5.1
NEcoA p 39.75 +0.24 2.4 US Small 31.40 +0.42 5.5 Balanc 21.11 +0.13 2.2 OverS SF r 9.55 +0.05 2.7 TotIntBdIdxAdm 21.66 -0.02 -0.1
CorePlusBd 8.04 -0.01 0.2 GrwthInst 71.25 +0.86 3.1
NwWrldA 58.26 +0.14 1.6 US SmCpVal 31.97 +0.39 6.6 BluCh 87.28 +0.92 3.9 R2020 19.89 +0.09 1.8 TotIntlAdmIdx r 26.04 +0.11 2.6 InPrSeIn 10.02 +0.01 0.5
SmCpA p 48.64 +0.42 3.7 US TgdVal 21.03 +0.23 6.1 Contra 11.39 +0.12 3.5 Lord Abbett F TotStAdml 64.02 +0.67 3.1
R2025 15.75 +0.09 2.1 InstIdx 233.75 +2.24 2.7
ShtDurIncm 4.14 ... 0.1
TxExA p
WshA p
12.80 -0.02
41.88 +0.36
0.3 USLgVa
1.9 Dodge & Cox
33.27 +0.22 3.5 ContraK
CpInc r
11.40 +0.13
9.37 +0.07
3.5
3.4 Metropolitan West
R2030
R2035
22.81 +0.14
16.66 +0.11
2.3
2.5
TxMIn r
ValAdml
12.29 +0.06
39.11 +0.29
2.8
2.5
InstPlus 233.77 +2.25
InstTStPlus 55.78 +0.58
2.7
3.1
Dividend Changes
Baird Funds Balanced 95.42 +0.42 2.3 DivIntl 32.37 +0.21 2.3 TotRetBd 10.40 -0.02 0.1 WdsrllAdml 56.76 +0.38 2.8
R2040 23.64 +0.17 2.6 MidCpInst 39.13 +0.47 3.6
AggBdInst 10.53 -0.01 ... GblStock 11.47 +0.07 4.0 FltRateHi r 9.43 +0.04 2.6 TotRetBdI 10.40 -0.01 0.2
Value 31.32 +0.28 2.5 WellsIAdml 59.61 +0.19 0.7 MidCpIstPl 192.98 +2.33 3.6
Dividend announcements from January 8.
CorBdInst 10.84 -0.01 0.2 Income 13.28 ... 0.2 GroCo 16.86 +0.20 5.2 TRBdPlan 9.79 -0.01 0.2
PRIMECAP Odyssey Fds WelltnAdml 64.93 +0.30 1.3
MFS Funds Class I
SmCapInst 66.43 +1.03 5.1 Amount Payable /
BlackRock Funds Intl Stk 38.24 +0.20 3.6 GrowCoK 16.87 +0.19 5.2 AggGrowth r 40.26 +0.53 5.1 WndsrAdml 63.43 +0.47 3.5 SmCapIstPl 191.74 +2.97 5.1
ValueI 36.21 +0.33 2.0 Company Symbol Yld % New/Old Frq Record
HiYldBd Inst 7.32 +0.03 2.6 Stock 178.97 +1.22 3.6 InvGrBd 10.89 ... 0.2 Growth r 35.97 +0.39 3.6 VANGUARD FDS STIGradeInst 10.43 -0.01 ...
BlackRock Funds A DoubleLine Funds MFS Funds Instl
LowP r 44.84 +0.31 3.3 Stock r 29.52 +0.14 2.6 DivdGro 24.79 +0.27 1.3 TotBdInst 10.44 -0.01 ... Reduced
GlblAlloc p 17.59 +0.05 1.7 CoreFxdIncmI 10.63 -0.01 0.2 MagIn 9.26 +0.09 3.2 IntlEq 22.77 +0.20 1.7 Principal Investors HlthCare r 195.12 +1.73 2.4 TotBdInst2 10.41 -0.01 ... BP Prudhoe Bay Royalty Tr BPT 14.7 1.0029 /1.3801 Q Jan22 /Jan16
BlackRock Funds III TotRetBdI 10.41 -0.01 -0.1 Nuveen Cl I
OTC 10.35 +0.12 4.0 DivIntlInst NA ... NA INSTTRF2020 21.35 +0.09 1.5 TotBdInstPl 10.44 -0.01 ...
iShS&P500IdxK302.59 ... 1.7 Edgewood Growth Instituti Puritn 20.00 +0.14 2.0 HYMunBd 16.91 -0.04 0.3 Schwab Funds INSTTRF2025 21.54 +0.10 1.7 TotIntBdIdxInst 32.51 -0.02 -0.1
MV Oil Trust MVO 16.3 .315 /.415 Q Jan25 /Jan15
BlackRock Funds Inst EdgewoodGrInst 29.72 +0.18 3.2 Oakmark Funds Invest S&P Sel 39.35 +0.38 2.7 INSTTRF2030 21.67 +0.12
SrsEmrgMkt 16.67 +0.04 1.5 2.0 TotIntlInstIdx r104.11 +0.41 2.6
EqtyDivd 19.16 +0.11 2.5 Fidelity SrsGroCoRetail 14.88 +0.17 5.3
EqtyInc r 27.57 +0.12 2.6 Tweedy Browne Fds
INSTTRF2035 21.78 +0.13 2.3
Foreign
TotItlInstPlId r104.13 +0.41 2.6
GlblAlloc 17.69 +0.04 1.7 500IdxInstPrem 89.47 +0.86 2.7 SrsIntlGrw 13.73 +0.12 Oakmark 71.19 +0.46 4.2 GblValue 25.28 +0.17 1.6 INSTTRF2040 21.90 +0.15 Pembina Pipeline PBA 5.2 .13988 M Feb15 /Jan25
2.5 2.5 TotStInst 64.03 +0.67 3.1
MultiAstIncome 10.31 +0.05 1.8 ExtMktIdxInstPre 55.82 +0.80 5.1 SrsIntlVal 8.87 +0.05 3.1
OakmrkInt 21.09 +0.13 3.1 VANGUARD ADMIRAL INSTTRF2045 21.97 +0.16 2.6 ValueInst 39.11 +0.29 2.5
StratIncOpptyIns 9.61 ... 0.2 IntlIdxInstPrem 37.33 +0.18 2.7 Old Westbury Fds 500Adml 237.74 +2.28 2.7 INSTTRF2050 22.00 +0.16
TotalBond 10.28 ... 0.5 2.6 Western Asset KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and
Bridge Builder Trust SAIUSLgCpIndxFd 13.74 +0.13 2.7 LrgCpStr 12.96 +0.08 2.5 BalAdml 33.61 +0.21 1.9 IntlVal CorePlusBdI 11.29 -0.01 0.8 ratio; SO: spin-off.
Fidelity SAI 32.97 +0.16 2.7
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B10 | Wednesday, January 9, 2019
MetLife CEO to Hand Reins to Lieutenant
Business-school dean
will take new
chairman post after
Kandarian retires
BY LESLIE SCISM
MetLife Inc. President and
Chief Executive Steven Kan-
darian will turn over the reins
of the nation’s second-biggest
life insurer by assets to a top
lieutenant, Michel Khalaf, as
he sets April 30 to retire.
Mr. Khalaf won’t take Mr.
Kandarian’s chairman title,
however. MetLife is creating
the position of nonexecutive
chairman, to be filled by its
current independent lead di-
rector, Glenn Hubbard, dean of
the Graduate School of Busi-
ness at Columbia University.
MetLife signaled the poten-
tial promotion of Mr. Khalaf in
June 2017 when he was named
president of MetLife’s core
U.S. business, while continuing
as president of the company’s
European, Middle East and Af-
rican operations.
Mr. Khalaf, 54 years old,
joined MetLife in 2010
through the New York com-
pany’s acquisition of an inter-
national life-insurance busi-
ness from American
International Group Inc. In his
Investors Watch for Signs of Progress on Trade Small Caps
BY AVANTIKA CHILKOTI
As U.S. trade negotiators
meet in Beijing this week
seeking to mend relations
and rebalance trade, some
investors are poised to re-
shuffle their portfolios in re-
sponse to signs of de-escala-
tion in tensions.
The spats and threats of
new tariffs have roiled eq-
uity markets, raising con-
cerns about growth in the
world’s two largest econo-
mies and helping turn global
stocks from a rally to a cor-
rection over the past quar-
ter.
“The U.S. administration
has become more and more
aware that this kind of rhet-
oric and these measures
have actually hit the U.S.
economy more than antici-
pated by [President]
Trump,” said Alessia Berardi,
senior economist at asset-
management firm Amundi.
Having risen sharply in
the first part of 2018, the
S&P 500 U.S. benchmark
ended the year down 6.2%
and the Shanghai Composite
finished down 25%. These
were the biggest declines for
both indexes in any year
since the financial crisis.
Markets have remained vola-
tile.
Nearly half of the econo-
mists who responded to a
recent survey by The Wall
Street Journal said the trade
dispute was the top risk for
no
the economy in 2019.
Analysts say Mr. Trump
Global
Markets
In Sync
Continued from page B1
tember peak to mid-December,
while after that they tended
to—very slightly—outperform.
Share prices of U.S. com-
panies with more than three-
quarters of their sales
abroad on average lost more
than 20% from the Septem-
ber peak to Dec. 14, against a
loss of 13% for those with
less than a quarter of their
sales abroad. From Dec. 14 to
Friday’s close, the loss for
domestic companies of 3.3%
was only slightly different
from the 2.3% loss for inter-
national companies.
If it is true that the U.S.
has been recoupling, the
question becomes whether it
is done. Sure, prices have
fallen a lot—putting the S&P
500 in a bear market, down
more than 20% from its peak,
on an intraday basis—but the
U.S. remains by far the most
expensive major market. Its
price-to-forward operating-
earnings ratio of 14.4 times
is now about equal to the av-
erage since 1985 when the
dot-com bubble is excluded,
according to Refinitiv.
The insurer’s board waived its age policy in 2016 in a show of support for Steven Kandarian, center.
21 years at the AIG unit, he
held senior roles with respon-
sibilities in places including
the Caribbean, France, Italy,
Egypt, Poland, Romania and
the Philippines.
Mr. Kandarian, who turns
67 in March, has been presi-
dent and CEO since May 2011
and added the title of chair-
man in 2012. He joined
MetLife in 2005 as its invest-
ment chief.
As Mr. Khalaf took on the
extra MetLife duties over the
past 18 months, Mr. Kandarian
High Stakes
on
The outcome of U.S.-China trade negotiations could have
a huge impact on both countries’ economies and markets.
us l,
U.S. merchandise trade deficit
al a
e
$800 billion
ci on
600
400
All other countries
er rs
200
With China
m e
0 0
2002 2010
m rp
Sources: Foreign Trade Division, U.S. Census Bureau; UBS analysis of Census Bureau data (imports)
may view the trade talks as
a key tool to calm investor
sentiment, which is also be-
co Fo
ing battered by concerns
around tighter policy from
the Federal Reserve and a
partial government shut-
down over funding for a bor-
der wall with Mexico.
“Trade talks, for Trump,
are something he controls
and it’s easier for him than
the government shutdown,”
said George Papamarkakis,
managing partner at North
Asset Management.
U.S. equities rallied in De-
n-
cember after Mr. Trump took
to Twitter to comment on
his “very productive” talks
with China and “big prog-
ress.”
Investors have turned op-
The U.S. premium to the
rest of the world has fallen,
but remains hefty. Japanese
and emerging stocks are
both at only 10 times for-
ward earnings, while the
MSCI All-Country World in-
dex is at 11 times.
Some of this divergence is
because the U.S. has far
more highly valued technol-
ogy stocks than anywhere
else, but not all of it. Adjust
to the same sector weights,
and Japan, Britain and the
eurozone trade at 12.1-12.6
times earnings; the S&P’s
14.4 is still a fat premium.
There are good reasons
for higher valuations in the
U.S.: a more shareholder-
friendly environment, a stron-
ger economy, and less reliance
on exports in a world where
global trade appears threat-
ened. Having robust banks, a
diversified economy and the
ability to print the world’s re-
serve currency limits how bad
things would be in a recession,
too—although nonfinancial
corporate debt is scarily high.
A story of recoupling stock
prices after the 2017-18 boom
and bust makes sense, but
shouldn’t be taken too far.
Markets tend to latch on to
narratives, and the latest one
is about doves at the Fed—
something that could help the
U.S. economy and stock mar-
ket if it turns out right, but
also weaken the dollar and so
support emerging markets.
FINANCE & MARKETS
was already beyond the com-
pany’s customary retirement
age of 65. MetLife’s board
waived its age policy indefi-
nitely in 2016 in a show of
support for the executive at a
critical juncture.
At the time, Mr. Kandarian
was shedding a large piece of
the company’s traditional life-
insurance unit, a move that
hived off its historic core busi-
ness: selling life insurance and
other financial products to in-
dividuals and families across
the U.S.
U.S. merchandise trade deficit
with China by sector
$400 billion
All merchandise
300
200
Computer
and electronic
products
100
Electric appliances
and components
2002 2010
timistic about this week’s
talks following signs that the
tariffs are weighing on both
economies.
Last week, Apple Inc. an-
U.S. equities rallied in
December after the
president said China
talks were productive.
nounced a rare cut in its
revenue forecasts, citing the
Chinese market in particular.
And new data showed a
slowdown in China’s manu-
facturing sector.
Jan Dehn, head of re-
Join the Club
From the S&P 500's September peak, developed markets dropped together
until mid-December, when the U.S. fall accelerated.
Index performance*
30%
25
20
15
10
5 future pace of interest-rate in-
0 Investors’ faith in U.S.
–5
’17
Price-to-estimated-operating-earnings ratio†
18 times
16
14
12
10
8
6 more resilient and small-caps
2011 ’12
*Data through Monday †Weekly data through Friday
Sources: Refinitiv (index performance); IBES via Refinitiv (ratio)
Mr. Kandarian also was su-
ing the U.S. government, chal-
lenging in federal court
MetLife’s federal designation
as a “systemically important
financial institution,” which
made it subject to heightened
oversight from the Federal Re-
serve on top of state insur-
ance-department supervision.
His challenge succeeded in the
end.
Wells Fargo Securities ana-
lyst Elyse Greenspan said in a
note that an internal successor
was expected because MetLife
U.S. imports from China subject
to increased tariffs, by month
of new tariffs
$20 billion
15
10
5
0 August
2012 ’14 ’16
THE WALL STREET JOURNAL.
search at Ashmore Group, an
emerging-market invest-
ment-management firm, ex-
pects that the dollar will
weaken if talks go well,
while the imposition of new
tariffs would weigh on U.S.
equities.
If the three-month truce
doesn’t end with any agree-
ment, the U.S. will raise tar-
iffs on $200 billion of Chi-
nese goods to 25% from 10%
by March 2.
Investors are watching for
very subtle signs at this
week’s talks.
Nicholas Lardy, a senior
fellow at the Peterson Insti-
tute for International Eco-
nomics, said there may be
little transparency, so a neg-
ative signal for markets
S&P 500 MSCI World excluding U.S. (developed markets)
–10
–15
–20
’18 ’19
’13 ’14 ’15 ’16
* *
Bumpy Tenure
MetLife share-price performance
since Steven Kandarian became
CEO on May 1, 2011.
$60
50
40
RICHARD DREW/ASSOCIATED PRESS
30
20
2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18
Source: Dow Jones Market Data
THE WALL STREET JOURNAL.
“has historically promoted
from within for top positions.”
She said the timing seems
right because the company
had begun to post clean quar-
terly earnings after disrup-
tions tied to the spinoff of its
core businesses into a new
company known as Bright-
house Financial Inc. She ex-
pects the change “to be seam-
less.”
Mr. Khalaf’s career has
mostly been “in smaller inter-
national insurance markets,”
said Thomas Gallagher, an an-
ly
could simply be the failure
to produce any official state-
ments or plans for follow-up
meetings.
As they positioned ahead
of this week’s talks, inves-
tors are also trying to gauge
whether the new tariffs are
actually helping the Trump
administration shrink its
trade deficit with China.
Sept.
Imports of goods targeted
by the first and second
round of tariffs in July and
August, including engines,
chemicals and electrical
parts, dropped around 30%
after the tariffs were intro-
duced, according to research
July
by UBS.
Analysts at the bank say
’18 it is still too soon to gauge
the impact of the third
round introduced in Septem-
ber.
However, imports, partic-
ularly of tech products,
surged ahead of implementa-
tion. Official data show re-
taliatory tariffs hit U.S. ex-
ports.
And there is little evi-
dence that the U.S. is im-
porting more from other
countries instead, stoking
concerns about future out-
put as many of the affected
goods are key inputs for pro-
duction.
“The president’s reaction
in how he frames the meet-
ing is critical here,” said Rob
Martin, an economist at
UBS. “He is sounding quite
conciliatory recently. Eco-
nomic pressures are building
on him.”
5%
0
–5
Sept. Oct. Nov. Dec.
S&P 500
MSCI EMU
(developed eurozone
countries)
MSCI Japan
MSCI Emerging
Markets
’17 ’18 ’19
THE WALL STREET JOURNAL.
THE WALL STREET JOURNAL.
alyst with Evercore ISI.
Still, “while there may be
some questions regarding Mr.
Khalaf’s more limited time
spent managing [MetLife’s]
flagship U.S. operations, his
expertise in several interna-
tional markets should help
[the insurer’s] future growth
strategy outside of the U.S.”
Mr. Gallagher said the tran-
sition period is shorter than
he expected, especially consid-
ering that MetLife has a rela-
tively newly appointed chief
financial officer.
The 150-year-old company
Mr. Khalaf will take over is a
leader in sales of life, dental
and other types of insurance
sold to employers, and it also
offers pension and other re-
tirement products.
Mr. Kandarian’s tenure has
been bumpy at times. Low U.S.
interest rates relative to his-
torical levels have pinched the
yields on invested premiums.
Those low rates, along with
high capital requirements,
played into the decision to set
up Brighthouse.
“In Michel, we are fortu-
nate to have a leader who has
excelled across a wide range
of markets, businesses and
cultures,” Mr. Hubbard said in
prepared remarks. Mr. Hub-
bard is slated to step down as
dean at Columbia June 30.
.
Take on
New Shine
Continued from page B1
than 30% above the year-ear-
lier period. The S&P 500 is
projected to expand earnings
by around 6% in each of the
first two quarters of the year.
For now, investors haven’t
been pricing in the rosy profit
expectations for small-caps,
analysts said. Instead, the
shares of smaller companies
tumbled into bear-market ter-
ritory in the final weeks of the
year, victim of a broader
stock-market pullback brought
on by a perfect storm of
heightened anxieties around
trade, interest-rate and
growth concerns.
The Russell 2000 fell 12% in
December, its worst month
ever, as it slid more than 20%
from its Aug. 31 record to en-
ter bear-market territory and
post its worst annual perfor-
mance since the 2008 crisis.
For some investors, the
pullback among small-caps has
been indiscriminate and over-
done, giving them an opportu-
nity to pounce on companies
that appear to be cheap buys.
“With the market headed
down, we’re seeing attractive
opportunities,” said Mr. Lam-
bert, whose fund is now look-
ing to put money to work from
some of the stock sales it exe-
cuted last year, before the
market’s downturn.
Shares of small companies
traded in late December at
valuations unseen in six years.
The S&P 600 Small Cap Index
traded as low as 13.4 times
projected earnings over the
next 12 months, down from
nearly 18 times around the
end of August and on par with
valuations at the end of 2012,
according to FactSet.
But good valuations alone
won’t revive small-cap stocks,
analysts said, adding that in-
vestors need to see a resolu-
tion to the trade fight with
China and get a handle on the
creases for prices to rebound.
growth has been shaken amid
the confluence of tariffs and
Jan. rising rates, leading many to
pare back risky stock invest-
ments. While most analysts
say fears of a recession this
year are overblown, small-cap
stocks got caught up in the
selloff: Investors worried that
tariffs would increase costs
across company supply chains
and crimp demand, while
higher rates would likely bur-
den debt-heavy businesses.
The Russell is in the midst
of a three-session winning
streak, putting it up 5.8% to
start the year, better than the
S&P 500’s 2.7% gain.
“If the economy steadies
and a trade war dissipates,
economic growth will remain
can do well in that environ-
ment,” said Edward Rosenfeld,
a fund manager at Lazard As-
set Management.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Treasurys
Decline as
Investors
Add Risk
BY DANIEL KRUGER
U.S. government bond
prices fell Tuesday amid signs
that risk sentiment is improv-
ing while the Treasury Depart-
ment completed the first of
three auctions this week.
The yield on the benchmark
10-year Treasury note settled
at 2.716%, compared with
2.684% Monday.
Yields, which rise when
bond prices decline, climbed
as the Treasury sold $38 bil-
lion of three-year notes. The
auction, which
CREDIT met with modest
MARKETS demand, was the
first of three of-
ferings this week totaling $78
billion—a 39% increase from
the same series of auctions
last year.
The sales mark the first
auctions of government notes
and bonds since Federal Re-
serve Chairman Jerome Powell
said at a panel discussion last
week that policy makers
would take a flexible approach
to setting interest rates.
Mr. Powell’s comments
calmed investors who were
$38B
Total of new three-year U.S.
Treasury notes sold Tuesday
becoming concerned that the
determination of Fed officials
to meet their target of two
rate raises this year, which
they penciled in at their De-
cember meeting, could upend
the economic expansion.
Fed-funds futures, which
investors use to bet on the di-
rection of central-bank policy,
indicate a 16% probability that
officials raise rates by the end
of the year versus an 11% like-
lihood that they lower them,
according to CME Group data.
On Monday the chances of a
rate increase had been 6%,
compared with 18% for a re-
duction.
“We still believe the Fed
will raise rates,” most likely
starting in the second half of
the year, said Dan Heckman,
senior fixed-income strategist
at U.S. Bank Wealth Manage-
ment. “Sentiment is starting
to turn around.”
Still, many investors remain
concerned about the economic
outlook.
The yield on the Treasury’s
three-year note settled at
2.563%, less than the 2.604%
yield on the one-year bill.
That is a sign investors have
“some expectation within
three years that the Fed will
need to cut rates,” said Benja-
min Jeffery, an interest-rate
strategist at BMO Capital Mar-
kets.
—Sam Goldfarb
contributed to this article.
AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
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.
THREE-YEAR NOTES
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Interest rate
Bids at clearing yield accepted
Cusip number
The notes, dated Jan. 15, 2019, mature on Jan. 15,
2022.
Chinese Bond Yields Hit 2-Year Low
BY SHEN HONG
A weak economy has helped
push Chinese bond yields to a
two-year low. To some inves-
tors that looks overdone, given
a likely surge in government
debt issuance and a stabilizing
stock market.
The yield on the benchmark
10-year Chinese government
bond has dropped to 3.14%, its
lowest since January 2017. That
is down from a three-year high
of 4% a year ago. Bond prices
rise when yields fall.
The bond rally has coincided
with growing evidence of a
slowing economy. The latest
data showed Chinese industrial
production slowed in November
to its slackest since early 2016,
while growth in retail sales
dropped to the lowest in more
* * * *
Trade-sensitive industrial stocks including Caterpillar were among those that led the S&P 500 higher.
Stocks Extend Climb a Third Day
Ten of 11 S&P 500
sectors advance amid
signs of progress in
U.S.-China trade talks
BY JESSICA MENTON
AND DAVID HODARI
Signs of progress between
the U.S. and China on trade ne-
gotiations propelled U.S. stocks
to their third
TUESDAY'S consecutive ses-
MARKETS sion of gains.
Jitters over
trade have roiled financial
markets in recent months and
spurred worries about slowing
global growth, though the re-
cent volatility has eased this
week.
After two days of intense
on to 2574.41. The Nasdaq Com-
trade talks in Beijing, midlevel
U.S. and Chinese negotiators
addressed a number of issues
us l,
al a
e
Saudi Arabia Bets on U.S. Natural-Gas Sector
ci on
BY SARAH MCFARLANE
AND SUMMER SAID
Saudi Arabia is nearing a
er rs
deal to invest in U.S. liquefied
natural gas, a landmark deci-
sion for the kingdom, which in
the past had been a huge sup-
m e
plier of energy to America.
Saudi Arabian Oil Co.,
known as Aramco, has nar-
m rp
rowed its fo-
COMMODITIES cus to at least
four U.S. LNG
projects and intends to an-
nounce a deal in the first half
co Fo
of this year, people familiar
with the matter said.
Companies with projects
being considered include Tel-
lurian Inc., a Houston-based
LNG developer known for its
intention to ship gas from its
planned Driftwood terminal in
Louisiana, the people said. In
addition, San Diego-based
Sempra Energy, which is de-
veloping five LNG projects be-
tween the U.S. and Mexico, has
had discussions with Aramco
n-
concerning its Port Arthur
project in Texas, the people
said. Aramco is considering
equity stakes in the projects,
no
the people added. It wasn’t
clear what the value of the po-
tential investments is.
Aramco didn’t immediately
respond to requests for com-
ment. A representative for Tel-
lurian said the company
doesn’t comment on commer-
cial dealings. A representative
for Sempra Energy said,
$92,604,729,200 “We’ve had strong interest in
$38,000,062,100
$65,159,200
Port Arthur LNG from global
$100,000,000 LNG buyers and investors but
99.830664
(2.559%)
can’t comment on any com-
2.500% mercial discussions.”
63.99%
9128285V8
Any such investment would
mark a sea change in the en-
ergy flows between the U.S.
than 15 years.
China’s central bank has
loosened credit conditions five
times in the past year by cut-
ting the amount of reserves
banks are required to hold. The
latest such move, unveiled Fri-
day, is expected to free up a net
800 billion yuan ($116.8 billion)
for lending.
A depressed stock market
also helped lure investors into
assets such as government
debt. The benchmark Shanghai
Composite Index lost 25% last
year, making itself the worst
performer among the world’s
major indexes.
“The market has gotten
ahead of itself,” said Qu Qing,
chief fixed-income analyst at
Hua Chuang Securities Co. He
said without an interest-rate
cut, a benchmark yield of 3.3%
and tried to specify how China
would carry out the pledges it
has made, The Wall Street
Journal reported. Both sides
believe enough progress has
been made this week for a
round of talks among cabinet-
level officials, probably later
this month in Washington, the
Journal said.
“If we could get some posi-
tive progress with China, that
alone could really make the
market rally,” said John Pier-
shale, wealth adviser at Pier-
shale Financial Group.
The Dow Jones Industrial
Average jumped 256.10 points,
or 1.1%, to 23787.45. The S&P
500 added 24.72 points, or 1%,
posite rose 73.53 points, or
1.1%, to 6897. The technology-
heavy index has surged 6.7%
over the past three sessions,
its best performance since Au-
gust 2015.
New Energy Focus
How three policy alternatives for Saudi
Arabia could affect economic growth, public
revenue and oil exports
$6
$4
Change to GDP, in billions
$2
696,000
0
–$2
–$4
–$6
–$10
Source: Kapsarc
and Saudi Arabia. America’s
shale revolution has broken
dependence on Middle Eastern
oil, to the extent that the In-
ternational Energy Agency ex-
pects the U.S. to become a net
energy exporter by 2023.
For Saudi Arabia, the inter-
est in U.S. LNG is twofold, said
Jason Feer, head of business
intelligence at New York-based
consulting firm Poten & Part-
ners. “One reason is the geo-
political aspect of how to keep
the U.S. close and maintain the
strategic relationship, and sec-
or more would be appropriate.
A less panicky stock market
may also bode ill for bond inves-
tors, said Mr. Qu, as money man-
agers reallocate capital to riskier
assets. Bond supply could also
pick up. Many economists expect
the central government to toler-
ate a wider budget deficit this
year, which would lead to higher
debt issuance. Beijing last month
allowed local governments to
start issuing new bonds from
January. It usually makes them
wait until March.
Zang Min, senior analyst at
Hongxin Securities, said the
government could encourage
debt issuance even if it kept its
budget deficit below 3% of
gross domestic product by al-
lowing local authorities to issue
special-purpose bonds for in-
frastructure projects.
Wednesday, January 9, 2019 | B11
MARKETS
Relief Rally
Easing trade tensions between the U.S. and China propelled U.S. stock
averages higher Tuesday for a third straight session, with the Nasdaq
Composite logging its biggest percentage gain in that span since 2015.
Index performance
4%
3
2
1 Industrial
0
–1
ALY SONG/REUTERS
–2
–3
January 2019
Source: SIX
Ten of the 11 sectors in the flexibly” if necessary.
S&P 500 advanced, led by Still, Mr. Powell has reiter-
gains in trade-sensitive indus- ated the primary importance of
trial stocks that have exposure economic data in his decision
to the Chinese economy. making, and U.S. inflation
Shares of Boeing and Caterpil- numbers, expected Friday, also
lar added nearly 4% and more are eagerly anticipated.
than 1%, respectively. The real- Mr. Piershale said he has
estate, communication-services been advising clients recently
and utilities sectors also were to add exposure to high-divi-
among the biggest gainers, dend-paying stocks in defen-
each rising more than 1%. Fi- sive sectors including utilities,
nancial stocks were unchanged. health care and consumer sta-
Looking ahead, traders are ples. He also has encouraged
waiting for the Federal Re- investors to buy beaten-down
serve’s December meeting min- industrial and financial stocks.
utes, due Wednesday, as well The tech sector notched
as speeches from Fed board modest gains even after Sam-
.
members for clues on future sung Electronics said it ex-
ly
U.S. monetary policy. pects its fourth-quarter operat-
Fed Chairman Jerome Pow-
ell last week soothed investors’
concerns that the central
bank’s prospective policy was
ing profit to slide 29%. The
South Korean tech giant cited
“mounting macro uncertain-
ties” in another signal that
too aggressive when he said concerns over trade and slower
Friday that he was “prepared revenue growth have begun to
to adjust policy quickly and bite tech giants around the
Oil Prices Advance
Increased As Worries About
oil exports,
in barrels a day Oversupply Ease
Oil prices climbed for a sev-
Deploy renewable technology enth consecutive session Tues-
Boosts public revenues and day, extending a recent re-
367,000 economic growth, but increases oil
bound to start 2019 as
exports less than the other options oversupply fears continued to
diminish.
Supply curbs from large
producers and improved risk
Import natural gas
Frees up oil exports, appetite with stocks also
boosts public revenues bouncing back from punishing
and economic growth fourth-quarter declines have
boosted crude.
Both Brent crude, the
global benchmark, and U.S.
crude futures closed at their
highest level since Dec. 17 and
are on their longest streak of
Increasing the price consecutive gains since July.
The gauges are up more
of domestic oil
Boosts oil exports and than 15% from their Dec. 24
public revenues but lows but more than 30% below
disincentivizes 1,237,000
their early October peaks.
domestic industry The latest leg of the re-
bound has come after The Wall
0 $10 $20 $30 Street Journal reported Mon-
day that Saudi Arabia, the
Change to public revenues, in billions
world’s largest exporter of
THE WALL STREET JOURNAL.
ondly they see LNG as diversi- electricity is powered by oil or
fying, investing in a fuel that gas, but there are plans to di-
would have perhaps more of a versify that into more natural
lifespan than a straight crude gas and renewables. A study
oil play.” published last year by Saudi
Energy majors, including Arabia’s government-funded
Royal Dutch Shell PLC, Total think tank, King Abdullah Pe-
SA and BP PLC, already have troleum Studies and Research
pivoted toward natural gas. Center, found that shifting
Aramco doesn’t produce from oil to natural-gas power
any oil and gas abroad, and generation had a positive im-
while Saudi Arabia’s own gas pact on the economy, even if
reserves are some of the larg- the gas was imported.
est in the world, they are hard Saudi Arabia said in Octo-
to extract. ber that it is considering in-
Nearly all of the kingdom’s vesting in a stake in Russian
Dollar Gains as Outlook
For Rates Is Reconsidered
Full Circle BY SAM GOLDFARB
The bond rally has coincided with
data showing a weakening The dollar ticked higher
Chinese economy. Tuesday, showing tentative
signs of stabilizing after Fed-
China’s 10-year government
eral Reserve Jerome Powell’s
bond yield
comments last week bolstered
4.0% investors’ con-
CURRENCIES fidence that
3.8 the Fed will be
cautious about raising interest
rates this year.
3.6
The WSJ Dollar Index,
which measures the U.S. cur-
3.4 rency against a basket of 16
others, rose 0.2% to 89.42.
3.2 Despite Mr. Powell’s com-
ments, there were signs inves-
tors were already starting to
3.0 factor in better odds that the
2017 ’18 central bank will raise rates in
Source: Wind the coming months—a positive
THE WALL STREET JOURNAL. development for the dollar be-
Nasdaq
Composite
S&P 500
Dow Jones
Average
THE WALL STREET JOURNAL.
world. The news echoed Ap-
ple’s downbeat guidance last
week. The iPhone maker’s
stock rose $2.82, or 1.9%, to
$150.75, while International
Business Machines added
1.68, or 1.4%, to 119.83.
Thomas Martin, senior port-
folio manager at Atlanta-based
Globalt Investments, said Sam-
sung’s gloomy earnings out-
look renewed concerns that
slower revenue growth has be-
gun to bite tech giants around
the world.
“There are still crosscur-
rents of a global growth slow-
down,” Mr. Martin said.
“Things aren’t super rosy.”
Elsewhere, the Stoxx Europe
600 rose 0.9%. At midday
Wednesday in Tokyo, Japan’s
Nikkei Stock Average was up
1.3% after climbing 0.8% Tues-
day. Hong Kong’s Hang Seng
Index was up 2.5% after rising
0.2% Tuesday.
crude oil, is planning to cut ex-
ports to around 7.1 million bar-
rels a day by the end of Janu-
ary, down 800,000 barrels a
day from November levels.
Fears that steady supply
from Saudi Arabia and other
large producers would create a
crude glut pushed oil to its
worst quarter in four years to
cap off 2018, but some ana-
lysts expect prices to keep
trimming some of that drop as
global inventories moderate.
The market’s positive re-
sponse to the news is a sign
that oil investors are “refocus-
ing on fundamentals” like sup-
ply, rather than just responding
to macroeconomic factors, said
Harry Tchilinguirian, global head
of commodity markets strategy
for BNP Paribas. The market is
likely to have a better sense of
the effectiveness of the cuts
by the end of January, Mr.
Tchilinguirian added.
Brent added $1.39, or 2.4%,
to $58.72 a barrel on London’s
Intercontinental Exchange,
while U.S. futures rose $1.26, or
2.6%, to $49.78 a barrel on the
New York Mercantile Exchange.
energy giant PAO Novatek’s
Arctic LNG 2 project, although
no deal has been formalized.
Aramco intends to make LNG
investments in both the U.S.
and Russia, the people familiar
with the matter said.
“By also investing in Russia
they’re giving themselves op-
tions, trying to demonstrate
that the Kingdom is trying to
hedge against over-depen-
dence on the U.S.,” said Mr.
Feer.
—Ben Dummett
contributed to this article.
cause higher rates make the
currency more attractive to
yield-seeking investors.
The yield on the benchmark
two-year U.S. Treasury note,
which is highly sensitive to
changes in the outlook for
monetary policy, closed Tues-
day at 2.585%, compared with
2.524% Monday. Federal-funds
futures, which traders use to
bet on the path of Fed policy,
also showed a 28% chance that
the Fed will raise rates by its
June policy meeting, up from
7% Monday, according to CME
Group data.
Another lift to the dollar
came from a report that
showed a sharp drop in Ger-
man industrial production in
November. The euro fell 0.3%
against the dollar to $1.1442.
 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.

B12 | Wednesday, January 9, 2019 THE WALL STREET JOURNAL.

Stocks’ Volatility Signal Flashes Red
BY GUNJAN BANERJI
The rebound in U.S. stocks
since Friday hasn’t convinced spiked late last year as worries about the global
all investors that volatility in economy escalated.
the market is over.
The S&P 500, Nasdaq Com-
posite and Dow Jones Indus-
trial Average each climbed
Tuesday, continuing a rally
that started at the end of last
week after a strong jobs re-
port and comments from the
Federal Reserve that the cen-
tral bank isn’t on a fixed path
to raising interest rates. The
tech-heavy Nasdaq is up 3.9%
in January, its best start to a
year since 2006.
But the futures curve track-
ing Wall Street’s “fear gauge,”
the VIX (more formally the
Cboe Volatility Index), re-
mained inverted Tuesday, with
contracts expiring in the near
term more expensive than
ones dated further in the fu-
ture, according to Refinitiv
data—an indication that some
investors expect wild price
swings to continue.
This type of relationship,
known as backwardation, has
lasted for 67 days, a stretch
that is second only to the 75-
day period from September to
December of 2008, during the
depths of the financial crisis,
according to UBS Group AG
data as of Tuesday. The data
MARKETS
The Cboe Volatility Index, or VIX, a measure that Closer-dated VIX futures have 4 points Hedge funds have pared
tracks expected turbulence in the U.S. stock market, become pricier than ones further in bets that market
the future, a sign that some expect volatility will remain low.
more volatility. Net futures positions on
the VIX have become
40
Spread between VIX first- and less bearish.*
second-month futures contracts 50 thousand futures contracts
30
0
Short-term futures are
pricier when positive
–50 Bearish bets
2
20
–100
10 –150
2017 ’18
0 Meanwhile, the number of
Jan. 2018 Jan. ’19 bearish S&P 500 options
has fallen relative to the
number of bullish
0 contracts, an indication of
a more optimistic outlook.†
2.5 times
2.0
Long-term futures are
pricier when negative
1.5

.
exclude the day before

ly
Thanksgiving. The bank con-
–2 1.0
siders backwardation to have
ended when the front-month July 2018 August September October November December January 2008 ’10 ’12 ’14 ’16 ’18
futures contract is at least one *Data as of Dec. 18 †Data through Jan. 2
on ’19
point higher than the spot Sources: FactSet (VIX); Refinitiv (short-term vs. long-term VIX futures); CFTC (positions); JPMorgan (bearish-bullish options ratio) THE WALL STREET JOURNAL.
level of the VIX.
It is unusual for near-dated This volatility has boosted options to hedge or make di- in recent weeks. Unease re- that Chinese leaders have data as of Dec. 18. That is the
VIX futures or the index itself the returns of holders of some rectional bets on portfolios. garding the timing, magnitude made, such as greater pur- latest available because of the
us l,

to jump above those expiring
later because investors tend to
account for greater uncer-
tainty later in time. The inver-
sion can signal that investors
volatility exchange-traded The VIX climbed 130% last and outcome of the trade dis- chases of U.S. goods and ser- government shutdown.
products such as the iPath year, its biggest annual jump pute is contributing to the vices and increased access for To be sure, though futures
al a
e
S&P 500 VIX Short-Term Fu- since its inception in 1993. backwardation, wrote Stuart Americans to Chinese markets. show fear percolating in mar-
tures Exchange-Traded Note, That followed 2017, when it re- Kaiser, a UBS strategist, in a The latest futures position- kets, other signals hint at a
known as the VXX. The product corded its lowest average for a note Monday. ing on the VIX also shows more optimistic outlook. The
ci on

are buying VIX futures con-
tracts to wager that volatility
will rise or stay elevated. For
example, futures expiring this
January traded slightly above
is up about 48% since early Oc-
tober, when the inversion in fu-
tures began, according to UBS.
The volatility measure is
based on options prices on the
er rs
calendar year ever. So far this
year, it has fallen 19.5% to
20.47, which is slightly higher
than its historical average.
Worries about economic
“Those lingering uncertain-
ties are shown in the VIX in-
version,” Mr. Kaiser said.
The U.S. and China began
negotiations on Monday to re-
traders have scaled back bets
that stocks will stay calm. Net
bearish bets on VIX futures by
leveraged funds such as hedge
funds hit the lowest level since
ratio of bearish options to
bullish options on the S&P 500
has fallen since November
even as equities have sunk, JP-
Morgan Chase & Co. data as of

those in February, FactSet S&P 500 and tends to rise growth and U.S.-China trade solve the trade fight, seeking to May, according to Commodity Jan. 2 show. The stock index
data Tuesday showed. when stocks fall. Investors use tensions have rattled markets resolve details in broad pledges Futures Trading Commission fell about 8% in that period.

HEARD ON THE STREET

m e
m rp

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co Fo

Nissan Needs a New Carlos Ghosn OVERHEARD Nvidia Has

Carlos Ghosn won his
spurs turning Nissan Motor
around in the early 2000s.
Now the Japanese car maker
needs an even more sophisti-
cated turnaround artist.
Nissan is far more global
and complex than when Mr.
Ghosn took over. His succes-
sor has to juggle a sharper
Time to Get
lem. Sales fell 6.2% last year Microsoft’s return as the
Deceleration
Operating margin, past 12 months
as Nissan tried to reduce its
reliance on low-margin
rental and fleet markets. The
world’s most valuable company
was short. But Amazon.com
shouldn’t get too comfortable
Its Game On
10% company’s portfolio is still either. Nvidia needs time to get
8 Toyota skewed toward poorly selling After spending a little over its videogaming business back
6 small vehicles: Roughly 42% a month on top, the software on track. Fortunately for the
Honda of Nissan sales last year giant formally ceded its crown chip maker, $76 billion buys a
4
Nissan were cars, even though cars based on Monday’s closing lot of it.
2 accounted for 32% of U.S. prices, which gave Amazon a That is how much market
n-

focus on the local market
with the benefits of scale
that should be available
through its alliance with Re-
no
0 sales overall. total market value of about value Nvidia has lost over the
Nissan also lost focus on $797 billion compared with Mi- past three months. Some was
–2
its lucrative domestic mar- crosoft’s $784 billion. That is due to the great tech selloff
–4 ket, said Mr. Gunn, with more reflective of Amazon’s that began at that time, but

nault and Mitsubishi. Deft
diplomacy will be as impor-
tant as cost discipline and
launching the right cars.
Mr. Ghosn, who was ar-
rested in Japan seven weeks
ago, stands accused of un-
derstating his pay at Nissan
and breach of trust. In a
court statement Tuesday—
his first chance to speak
publicly—Mr. Ghosn rebutted
the charges in detail.
Yet he also went beyond
this to appeal to the court of
public opinion, stressing his
“genuine love” for Nissan
and details of his turn-
around: “from 2.5 million
cars sold in 1999 at a signifi-
cant loss to 5.8 million cars
sold profitably in 2016.”
–6
–8
2005
Source: FactSet
In reality, Nissan has been
underperforming peers for
some time. Whether or not
Mr. Ghosn is guilty of abus-
ing the company’s trust, he
is responsible for that under-
performance, including after
2016. He stepped down as
chief executive in early 2017
but he stayed on as chair-
man until his ouster in No-
vember and still was paid
more than new Chief Execu-
tive Hiroto Saikawa for the
year through March 2018.
Nissan’s revenue grew by
’10
THE WALL STREET JOURNAL.
just 3.9% a year over the 18
years from March 1999,
when Mr. Ghosn arrived, lag-
ging behind Toyota Motor
and Honda Motor, estimates
Campbell Gunn, an analyst at
TAP Japan who publishes on
the Smartkarma research
platform. Nissan’s operating
margins, which soared after
Mr. Ghosn became chief op-
erating officer in 1999, are
now lower than those of
peers.
The U.S. has turned from
a growth market into a prob-
products styled to suit inter-
national tastes better than
Japanese ones. Being part-
owned and managed by its
alliance partner Renault
likely didn’t help.
Mr. Saikawa needs to ei-
ther lay out a convincing
strategy for fixing such
problems or make way for
someone with one. But first
Nissan needs a new chair-
man to address the gover-
nance failings that have be-
come clear through Mr.
Ghosn’s downfall. That, in
turn, will require the cooper-
ation of Renault, which owns
43% of Nissan’s stock. There
is a lot to do before Nissan’s
turnaround can even begin.
—Stephen Wilmot
jump of 9% in the first week
of the new year, compared
with Microsoft’s 1% gain.
Of course, the Seattle
neighbors both owe much to
Apple Inc., which has lost a
breathtaking $355 billion in
value over the past couple of
months on worries about its
slowing iPhone business.
The coming earnings sea-
son could shuffle things even
more. Apple’s latest report is
what triggered its selloff, and
Amazon remains about 9% be-
low its price since its third-
quarter results. Google parent
Alphabet Inc. is now about 5%
below Amazon and Microsoft
in terms of market value. In
tech, nothing lasts forever.
nearly half melted away since
its earnings report on Nov. 15.
That was when Nvidia re-
ported disappointing revenue
for its fiscal third quarter and
warned the slump would con-
tinue as it works through ex-
cess inventory left over by
the cryptocurrency mining
fad.
That slump comes just as
Nvidia is working to launch a
new family of graphics pro-
cessors used in gaming PCs.
The new chips, called GeForce
RTX, use a technology called
ray tracing to render images
closer to the photorealistic
ideal long sought in the vid-
eogame business. The first
RTX chips launched in Sep-
tember. Nvidia unveiled a
new, lower-price version at
the CES conference Sunday.

WeWork’s Business Isn’t Working for SoftBank Anymore
SoftBank is trying to
solve a hard problem. The
Japanese tech conglomerate
is scaling back a planned $16
billion investment into New
York-based WeWork to just
$2 billion, The Wall Street
Journal reported. The retreat
is due to the biggest backers
of SoftBank’s nearly $100
billion Vision Fund—sover-
eign-wealth funds from
Saudi Arabia and Abu
Dhabi—apparently cooling
on the deal.
Their reluctance looks ra-
tional. Shared-workspace
provider WeWork is fluent in
tech-company mumbo-
jumbo, claiming to be a
“physical social network”
real-estate firm. And while
High Rise SoftBank’s backing has so far
Yield on WeWork's allowed it to grow rapidly,
bond maturing in 2025 WeWork’s heavy spending on
marketing and renovation
11% means it hasn’t turned an
10 annual profit for at least
three years.
9 SoftBank’s scaled-back in-
8 vestment still values the
company at $36 billion—
7 some 15 times the size of the
2018 ’19 company’s less-hyped Lon-
Source: Refinitiv don-listed peer IWG. That is
despite the fact WeWork’s
that can uplift the “world’s revenue was about half that
consciousness.” But its busi- of IWG’s in the first nine
ness model of taking on months of 2018.
long-term office leases and SoftBank’s own investors
subletting them out short are clearly happy it isn’t go-
term is essentially that of a ing to sink so much into a
potential money pit. Its To-
kyo-listed shares jumped
5.7% Tuesday. SoftBank,
though, remains heavily
committed to WeWork, hav-
ing invested $8 billion in the
company to date. Sure, it has
already been able to book
gains on this investment. But
those have been self-fulfill-
ing—WeWork’s worth has
only risen because Soft-
Bank’s own overly generous
funding has inflated its
value.
WeWork will clearly find
it harder to grow given the
reduced investment. That
adds to the bad news for its
other shareholders such as
venture-capital firm Bench-
mark Capital and China-
based Hony Capital, who are
missing the chance to cash
out at a sky-high valuation.
Its bondholders look set
for more pain too: WeWork
issued $702 million worth of
seven-year bonds in April,
but these have plummeted
since the Journal reported
last month that the $16 bil-
lion investment plan could
be in doubt. These bonds
still don’t look like a good
long-term bet, despite now
yielding 11%. Because with
even deep-pocketed SoftBank
losing faith, the WeWork
model is going to find it ever
harder to keep working.
—Jacky Wong
The videogame segment
still accounts for more than
half of Nvidia’s total sales, so
expanding the market for ray-
tracing technology is a smart
move. It will take time to pay
off, though. A limited number
of PC game titles currently
make use of the technology,
though the company expects
that to grow. Nvidia also still
is working through crypto-re-
lated inventory.
Fortunately, expectations
are low. Analysts already ex-
pect videogame-segment rev-
enue to decline year over year
for the next four quarters
while the stock fetches 24
times forward earnings—half
what it did a year ago.
In the videogame business,
having a reset button always
helps. —Dan Gallagher