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 27881.72 g 27.88 0.1%
What’s Panel Lays
House
News Out Case
Business & Finance
To Impeach
C President
hevron is writing down
the value of its assets by
more than $10 billion, a con-
cession that in an age of oil
and gas overabundance,
some properties won’t be
profitable anytime soon. A1
 New York Life is negoti-
ating with Cigna to acquire a
unit that sells nonmedical in-
surance products to employ-
ers. A deal could be valued at
as much as $6 billion. B1
 A judge found Exxon not
guilty of fraud after the
company was accused of
deceiving investors about
climate-change costs. B1
 Hidden payments and
costly retirement-plan in-
vestments are denting some
teachers’ nest eggs as the SEC
investigates whether educa-
tors are getting a fair shake. B1
 U.S. stocks pared earlier
declines after Democratic
lawmakers backed a new
North American trade deal.
The Dow, S&P 500 and
Nasdaq all fell 0.1%. B13
 Eight women sued Fron-
tier Airlines on behalf of pi-
lots and flight attendants in
two lawsuits alleging preg-
nancy discrimination. B2
 Apollo made an offer of
$4.3 billion for Tenneco’s
powertrain division, but it
doesn’t assume pension
and other liabilities. B3
 Chinese auto sales fell for
the 17th straight month in
November, though the pace of
decline eased in the world’s
biggest vehicle market. B3
 Boeing said it delivered
24 jets in November, on
track to likely hand over less
than half as many aircraft in
2019 as it did last year. B5
World-Wide
 A new U.S. trade deal
with Mexico and Canada
gained backing from House
Democrats, setting the
agreement on course for
likely ratification by Con-
gress in 2020 and marking
a victory for Trump. A1, A6
 U.S. and Chinese trade
negotiators are laying the
groundwork for a delay of
a fresh round of tariffs set
to kick in on Dec. 15. A1
 The House Judiciary Com-
mittee will pursue two arti-
cles of impeachment against
Trump, citing soliciting
foreign election interference
and obstructing Congress. A1
 A kosher grocery in Jer-
sey City, N.J., was the tar-
get of an attack by gunmen
that left six people dead. A3
 Barr escalated his criti-
cism of the FBI’s probe into
possible Trump campaign
connections to Russia, call-
ing it a “travesty.” A4
 Pompeo clashed with Rus-
sia’s foreign minister over the
fate of an American held in
Russia and U.S. conclusions of
Kremlin election meddling. A7
 Exceptions under federal
firearms law allowed the sus-
pect in an attack at a Florida
military base to legally buy a
handgun in the U.S. despite
his Saudi citizenship. A3
 The International Court
of Justice heard arguments
in a suit seeking to estab-
lish Myanmar committed
genocide against its Roh-
ingya Muslim minority. A8
 Health care has joined
Brexit as a major issue
ahead of Thursday’s gen-
eral election in the U.K. A7
CONTENTS
Business News B3,5,8
Crossword.............. A14
Heard on Street. B14
Life & Arts....... A11-13
Markets.................... B13
Opinion.............. A15-17
s 2019 Dow Jones & Company, Inc.
All Rights Reserved
NASDAQ 8616.18 g 0.1%
no
Property Report... B6
Sports....................... A14
Streetwise.............. B12
Technology............... B4
U.S. News............. A2-6
Weather................... A14
World News........ A7-9
> storm, I salute you.”
* * * * * *
STOXX 600 405.34 g 0.3%
BY SIOBHAN HUGHES
AND NATALIE ANDREWS
WASHINGTON—The House
Judiciary Committee will pur-
sue two articles of impeach-
ment against President Trump,
a narrower approach than
some Democrats had hoped, as
the Republican-led Senate out-
lined plans for its trial early in
the new year.
The first of the two articles
accuses Mr. Trump of abuse of
power by soliciting election
interference from Ukraine and
also conditioning U.S. aid to
Kyiv and a White House meet-
ing on those probes. Demo-
crats also allege Mr. Trump
obstructed Congress by pre-
venting at least nine officials
from testifying and by block-
ing records from across the
federal government from be-
ing shared with lawmakers.
“We must be clear: no one,
not even the president, is
above the law,” Judiciary
Committee Chairman Jerrold
Nadler (D., N.Y.) said Tuesday.
Mr. Trump dismissed the
impeachment charges against
him on Tuesday night, calling
us l,
them, “flimsy, pathetic, ridicu-
lous. There are no crimes.
al a
They’re impeaching me and
there are no crimes,” he said
during a campaign rally in
ci on
Hershey, Pa. “This has to be a
first in history.”
Republicans have defended
the president’s conduct and
said Democrats are relying on
er rs
secondhand information to
pursue their case.
“There’s nothing that has
actually come close to an im-
m e
peachable offense,” said Rep.
Doug Collins of Georgia, the
ranking Republican on the Ju-
m rp
diciary Committee. “Abuse of
power is so amorphous,” he
said, adding that “they’ve
been telling the American peo-
ple he’s committed a crime for
co Fo
three months and this is what
we get?”
The filing of impeachment
articles—for only the fourth
time against a U.S. president
in history—marked the next
step in the more-than-two-
month inquiry, with the judi-
Please turn to page A4
 Barr calls FBI’s Trump probe
a ‘travesty’.................................. A4
 At president’s door: trade win,
impeachment articles............ A4
n-
Wanted: Leader
To Fix Sickly
U.S. Health Agency
Michael Weahkee faces Senate confirmation
to run hospital system for Native Americans
BY ANNA WILDE MATHEWS
AND CHRISTOPHER WEAVER
Three years ago, the U.S.
Indian Health Service needed
a savior for its hospital in
Rosebud, S.D.
The federal health-care
agency was forced to shut
down the emergency depart-
ment under pressure from
federal regulators. Capt. Mi-
chael Weahkee seemed the
man for the job, having run
the IHS’s flagship hospital in
Phoenix.
He launched quality-im-
provement efforts and got
the hospital’s emergency de-
partment running again, be-
fore departing later that year
to resume his Phoenix post.
He signed off with a lauda-
tory email to the Rosebud
hospital staff: “For those of
you who have weathered this
His rise since then has
been rapid. After running the
agency on an acting basis for
two years, now-Rear Adm.
Weahkee—an officer in the
U.S. Public Health Service
WEDNESDAY, DECEMBER 11, 2019 ~ VOL. CCLXXIV NO. 138
10-YR. TREAS. g 1/32 , yield 1.833%
Trump, Democrats Reach Deal
On North American Trade Pact
on
e
Trucks lined up to cross into the U.S. on Tuesday at the commercial port of entry in Tijuana.
U.S., China Aim to Delay New Tariffs
U.S. and Chinese trade ne-
gotiators are laying the
groundwork for a delay of a
fresh round of tariffs set to
kick in on Dec. 15, officials on
both sides said, as they haggle
over how to get Beijing to
commit to massive purchases
of U.S. farm products on which
President Trump is insisting
for a near-term deal.
In recent days, officials in
Beijing and Washington have
signaled that Sunday isn’t the
final date for reaching a so-
called phase-one deal—even
though that is the date Mr.
Trump has set for tariffs to in-
crease on $165 billion of Chi-
nese goods. That date could be
extended, as has happened
Commissioned Corps—was
nominated in October to be
permanent director of IHS.
His Senate confirmation
hearing is scheduled for
Wednesday.
Rosebud, however, contin-
ues to struggle. The operat-
ing rooms, which Adm.
Weahkee shut in June 2016 in
what was supposed to be a
short-term disruption, remain
closed. That is despite exten-
sive efforts at renovation and
hundreds of thousands of
dollars paid for surgeons who
couldn’t do their jobs because
they had no place to operate.
The hospital can’t deliver ba-
bies or do colonoscopies.
The turnaround stalled at
Rosebud in part because of
local mismanagement. Also to
blame were the kind of enor-
mous, agencywide challenges
Adm. Weahkee will face if
confirmed to the top job.
“Our hospital is like a
MASH unit,” said Russell Ea-
gle Bear, a Rosebud Sioux
Tribe council member. “When
people go to the emergency
Please turn to page A10
OIL $59.24 À $0.22
By Lingling Wei
in Beijing and Bob
Davis in Washington
several times when the two
sides thought they were on the
verge of a deal. Those prior
deals, though, never held and
tariffs continued to mount.
Chinese and U.S. officials in-
volved in the talks said they
don’t have a hard deadline. On
Friday, White House economic
adviser Larry Kudlow said in
two television appearances that
there were “no arbitrary dead-
lines.” Such remarks—espe-
cially when they are restated
several times—have in the past
reflected the president’s views
Natural gas prices have decreased since Chevron
bought acreage in Appalachia.
Futures prices, in dollars per million BTUs
Nov. 2010 Chevron said it
would acquire Atlas Energy,
an Appalachian gas producer
May 2011 Announced it would acquire drilling and development
rights for 228,000 acres in Appalachia
2010 ’15
Sources: FactSet (prices); WSJ reports
Chevron Gas Assets
Take $10 Billion Hit
BY CHRISTOPHER M. MATTHEWS
AND REBECCA ELLIOTT
Chevron Corp. is writing
down the value of its assets by
more than $10 billion, a con-
cession that in an age of abun-
dant oil and gas, some of its
holdings won’t be profitable
anytime soon.
In the largest write-down
by an energy producer in
years, Chevron said Tuesday
that it was cutting the value of
a number of properties, nota-
bly its U.S. shale holdings in
Appalachia, by a combined $10
billion to $11 billion. Chevron
is also restructuring its opera-
WSJ.com HHHH $4.00
GOLD $1,462.60 À $3.30 EURO $1.1094 YEN 108.71
A new U.S. trade deal with
Mexico and Canada gained
backing from House Demo-
crats, setting the agreement
on course for likely ratifica-
tion by Congress in 2020 and
marking a victory for Presi-
dent Trump after months of
negotiations to modify it.
Mr. Trump ran for office in
By Natalie Andrews
and William Mauldin
in Washington
and Anthony Harrup in
Mexico City
2016 on a pledge to remake or
blow up the North American
Free Trade Agreement, and his
administration used a combi-
nation of pressure tactics and
closed-door negotiations to
win support for an amended
version of the agreement from
Democratic lawmakers, labor
unions and Mexican officials.
On Tuesday, House Speaker
Nancy Pelosi (D., Calif.) em-
braced a version that Demo-
crats had negotiated with the
.
administration just an hour af-
GUILLERMO ARIAS/AGENCE FRANCE-PRESSE/GETTY IMAGES
ly
ter she backed two articles of
impeachment accusing Mr.
Trump of abuse of power and
obstruction of Congress. That
sets up an expected House
vote on the trade deal next
week, before a likely divisive
election year in 2020.
“We are so proud of the
distance that we have come
from where we started with
the administration on this leg-
Please turn to page A6
 Businesses prepare to reap
trade benefits............................ A6
and have been echoed privately to get a good deal for the U.S.”
by other U.S. officials. A week ago, Mr. Ross said the
At The Wall Street Journal’s tariffs would go up if both sides
CEO Council meeting on Tues- didn’t have a deal by the date.
day, Mr. Kudlow said the tariffs With both sides hinting that
“are still on the table” if Mr. negotiations could be extended
Trump isn’t happy with the out- beyond Dec. 15, Mr. Trump has
come of U.S.-China trade talks. gone back and forth in his pub-
“If it’s not the kind of deal lic remarks between threaten-
he wants, then the Dec. 15 ing a prolonged trade battle
scheduled tariffs will go back and trying to calm jittery inves-
into place,” Mr. Kudlow said. tors. White House adviser
He said removal of some Jared Kushner, the president’s
existing tariffs was part of the son-in-law, has recently become
discussion with Chinese offi- involved in trying to help the
cials over a phase-one deal. Please turn to page A6
Commerce Secretary Wilbur
Ross, when asked on Tuesday if  Chinese auto sales extend
the Dec. 15 tariffs would take ef- slump, but pace eases.......... B3
fect, said on Fox Business Net-  Futures traders closely watch
work that “it’s more important tariff negotiations................. B13
Italian Idylls
Come Cheap
$6
These Days
5
4
i
Bids start at Œ1
i i
for rural homes;
3
Americans move in
2
BY GIOVANNI LEGORANO
1 Leonardo Ciaccio, mayor of
Sambuca in Sicily, put 16
houses up for auction at a
0
starting price of €1 early this
’19
year as part of an effort to
halt the depopulation of his
small town. Within weeks,
more than 100,000 people,
mostly from the U.S., re-
quested information.
“We had to hire people who
speak English,” Mr. Ciaccio said.
“At some point, we were joking
in the office that there was no
tions to focus on fewer pros- point in answering the phone:
pects in the face of low natu- Nobody calling spoke Italian.”
ral gas prices, and will explore Staff at the town hall took
sales of some assets. turns taking tour groups twice
The second-largest U.S. oil a day around the ancient settle-
company lowered its forecast ment in Sicily’s western hills.
for future commodity prices, Sambuca sold all 16 houses,
and said that as a result, it was choosing the highest bidders
reducing the value of produc- able to commit to renovating
tion from one of its offshore oil the dilapidated properties.
projects in the Gulf of Mexico. “Now Sambuca is in a re-
It also lowered the value of a naissance,” said the mayor,
planned facility to export lique- who is preparing another auc-
fied natural gas from Canada. tion of abandoned properties
Chevron Chief Executive in coming months.
Please turn to page A9 Sambuca isn’t alone in re-
sorting to such tactics. Ac-
 Exxon is cleared of fraud cording to www.casea1euro.it,
allegation....................................... B1 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, December 11, 2019
Powell, With Light Touch, Gets Consensus
BY NICK TIMIRAOS
Jerome Powell engineered a
humbling about-face in U.S. in-
terest-rate policy in 2019,
steering a group of reluctant
colleagues at the Federal Re-
serve toward rate cuts to en-
sure a cooling U.S. economy
didn’t slip into recession.
The moves have worked so
far. The expansion recently en-
tered its second decade, unem-
ployment held at a 50-year low
and stocks neared record highs.
Now as Mr. Powell, the Fed
chairman, looks toward 2020,
he is on a new mission: Keep
the U.S. out of the kind
of economic anemia plaguing
Europe and Japan.
After the Fed failed to get
inflation up to its 2% goal for
much of this expansion, Mr.
Powell is increasingly deter-
mined to meet—or even ex-
ceed—that level. Such a shift
marks an important change in
thinking at the Fed about how
it manages the inflation target
that is at the core of its mis-
sion. Officials are likely to
hold rates steady at their final
meeting of the year on Tues-
day and Wednesday. They low-
ered their benchmark rate
three times since July, to a
range between 1.5% and 1.75%,
to cushion the U.S. economy
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Dissenting Opinions
It isn’t unusual for Federal Reserve officials to cast dissenting votes on monetary-policy
decisions, but for the last quarter century, no policy decision has faced more than three dissents
on a committee of up to 12 officials.
Number of dissenting votes, by chairman tenure
Alan Greenspan
3 a cut wasn’t warranted. When
2 of a bolder half-point action.
1 consecutive time and Mr. Pow-
0 ell had played a key, behind-
1995
Source: Federal Reserve Bank of St. Louis
against ebbing global growth
and trade tensions after rais-
ing it four times last year.
Mr. Powell is eager to build a
broad consensus among his col-
leagues and synthesize a range
of views when making policy,
but key turning points this year
made him more willing to press
ahead when unanimity wasn’t
possible, according to inter-
views with current and former
Fed officials and a review of
Mr. Powell’s public calendars.
er rs
m e
m rp
co Fo
• BIG ISLAND OF HAWAII
• 1-866-296-9374
n-
U.S. NEWS
Ben Bernanke
2000 ’05 2010
Fed officials were more di-
vided this summer over Mr.
Powell’s push to cut rates than
at any other time in his nearly
two years at the helm.
“This is not a my-way-or-
the-highway approach to mon-
etary policy. That said…we’ve
had some tough decisions to
make,” said Fed Vice Chairman
Richard Clarida, a close ally of
Mr. Powell, in an October in-
terview.
To an unusual degree
among Washington institu-
tions, the Fed operates by con-
sensus. Many decisions are
unanimous, and while official
dissents are common, the
chairman rarely loses votes.
Absent a crisis, Fed officials
onmake big policy moves with
caution. It takes time to build
agreement among the 17 offi-
cials who participate in policy
discussions, including the 10
us l,
who cast votes on rate changes.
When Mr. Powell presented
al a
e
his recommendation for a quar-
ter-percentage-point rate cut
before the July 30-31 meeting,
ci on
around half of the 12 Fed re-
serve bank presidents resisted.
Economic data hadn’t deteri-
orated, but long-term bond
yields had tumbled, which hap-
pens when investors grow risk-
averse or pessimistic on
growth, after repeated tariff
threats by President Trump.
The internal split reflected
uncertainty over the economic
outlook and the requisite tac-
Facebook Rebuffs Barr on Encryption
BY DUSTIN VOLZ
WASHINGTON—Facebook
Inc. said it would move forward
with plans to add encryption
across its messaging platforms,
rejecting a plea from Attorney
General William Barr to allow
some form of government ac-
cess to those services over con-
cerns about public safety.
In a letter to Mr. Barr on
Monday, Facebook executives
Will Cathcart and Stan Chud-
novsky, who lead the company’s
WhatsApp and Messenger ser-
vices, said undermining encryp-
ERIN SCOTT/REUTERS
tion in their products for law
enforcement would create a
“backdoor” vulnerability that
malicious actors also could le-
verage to harm users.
“The ‘backdoor’ access you
are demanding for law enforce-
ment would be a gift to crimi-
nals, hackers and repressive re-
gimes, creating a way for them
to enter our systems and leav-
ing every person on our plat-
forms more vulnerable to real-
life harm,” the executives wrote
in the letter, which was re-
viewed by The Wall Street
Journal.
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Janet Jerome
Yellen Powell
’15
tics. Some Fed officials were
hearing from business execu-
tives that trade uncertainty—
not high borrowing costs—was
holding back investment. Oth-
ers wanted to wait for more
evidence of a global manufac-
turing downturn infecting the
broader economy.
Mr. Powell and his lieuten-
ants argued the global slow-
down meant that keeping
rates unchanged would leave
them too high, provoking a
Fed Chairman Jerome Powell, right, and Boston Fed President
Eric Rosengren toured East Hartford, Conn., in late November. Mr.
Powell is eager to build a broad consensus among his colleagues.
Mr. Barr in October sent a
letter, cosigned by his British
and Australian counterparts, to
Facebook Chief Executive Mark
Zuckerberg chastising the com-
pany for announcing plans to
roll out what is known as end-
to-end encryption, a standard
security practice that makes it
extremely difficult for anyone
other than the sender or recipi-
ent of the digital communica-
tion to read it. Mr. Barr had ar-
gued that the technology makes
it harder to stop child abusers
and terrorists.
The attorney general’s letter,
and Facebook’s response Mon-
day, reflect decades-old argu-
ments in which technology
companies and law enforce-
ment have taken opposing sides
on a core privacy debate of the
THE WALL STREET JOURNAL.
market backlash that could central-bank outsiders.
spread the weakness to the Messrs. Powell, Clarida and
broader economy. Williams form the so-called
Two Fed bank presidents troika at the Fed. Policy deci-
voted against the July cut be- sions are the product of a large
cause they preferred to hold committee, but the troika plays
rates steady. At least three oth- the key role molding that con-
ers without a vote also thought sensus. The three men meet or
speak by phone several times a
the Fed approved another quar- week, shaping Mr. Powell’s pol-
ter-point cut in September, a icy recommendations that they
third official dissented in favor later defend in public speeches
and private deliberations.
Committee divisions per- Mr. Powell had also built
sisted into October, when the support among the Fed re-
Fed lowered rates for a third serve bank presidents, several
of whom owed their jobs to
ell signaled he didn’t expect him. In 2013, one year after
more cuts. Mr. Powell joined the Fed
Well before 2019, Mr. Pow- board of governors, he took on
the unglamorous job of run-
the-scenes role shaping the ning the Fed committee that
group of officials whose sup- serves as the go-between with
port he needed this year. Last the reserve banks. The post
year, he pressed the White put Mr. Powell, a 66-year-old
House to make Mr. Clarida, a former lawyer and financier,
macroeconomist who worked at the center of the search
at bond giant Pimco, the Fed’s processes that the reserve
vice chairman. banks in Philadelphia, Dallas,
The Trump administration Minneapolis, Atlanta and Rich-
had looked at John Williams, a mond conducted to select
monetary theorist who was their current presidents.
then president of the San Fran- “He has shown a level of
cisco Fed, for the vice-chairman trust by supporting their can-
job. After Mr. Trump was luke- didacy for president. Trust
warm on Mr. Williams, Mr. tends to be mutual,” said Vin-
Powell steered the New York cent Reinhart, a former senior
Fed to select him to lead the Fed economist.
bank last year instead of two Most of the selections look
like Mr. Powell—non-econo-
mists with executive experience
in finance, business or aca-
.
demia. Mr. Powell, the first Fed
ly
chairman without a Ph.D. in
economics in three decades,
doesn’t always come to big is-
sues with a firm view but in-
stead waits to hear what every-
one says first. Some staffers
have traced certain intellectual
curiosities to economic debates
he has been following on Twit-
ter. He doesn’t tweet.
When Dallas Fed President
Robert Kaplan joined the cen-
tral bank in 2015, Mr. Powell,
then a governor, advised him
BRENDAN MCDERMID/REUTERS
that to gain credibility within
the system, he should spend
lots of time with Ph.D. econo-
mists “working your tail off to
learn economic theory,” Mr.
Kaplan recalled in an inter-
view last year.
“He’s a very good listener,”
Mr. Kaplan said. “He’s not look-
ing…for people to agree with
him just because it’s his view.”
digital age. Mr. Barr has been communicate securely and pri-
especially direct in his criticism vately with friends and loved
of Facebook and other technol- ones without anyone—including
ogy companies, as he has Facebook—listening to or moni-
sought to revive the long-run- toring their conversations.”
ning dispute by specifically em- Without mentioning the
phasizing the difficulties inves- Facebook letter specifically, Mr.
tigators face in thwarting child Barr said during a Wall Street
exploitation. Journal CEO Council gathering
Despite the Justice Depart- Tuesday that dealing with en-
ment’s push, Republican and cryption remains one of the
Democratic lawmakers have ex- Justice Department’s highest
priorities. He cited “horror sto-
ries” involving child molesta-
tions and terror attacks in
Mark Zuckerberg which authorities couldn’t get
received a letter into suspects’ phones.
At the same Wall Street
from William Barr Journal event, Mr. Barr said he
in October. would like for the Justice De-
partment probe of Big Tech to
wrap up next year, while also
warning that law enforcement
pressed little interest in pursu- would look at broader business
ing legislation to require tech practices unrelated to antitrust
companies to allow some form concerns.
of government access to en- The government has to move
crypted communications. quickly and “fish or cut bait,”
Jay Sullivan, Facebook’s he said in an interview, citing
product management director the cost to business and the
for privacy and integrity, said marketplace from long investi-
Tuesday in opening remarks to gations.
the Senate Judiciary Committee —Tim Hanrahan
that “people should be able to contributed to this article.
CORRECTIONS  AMPLIFICATIONS
The Internal Revenue Ser- rectly said 26%, which is the
vice has revised the 1040 form, figure instead for large-cap
and people who are self-em- core funds.
ployed can deduct health-insur-
ance costs on line 16 of Sched- The 1944 massacre of
ule 1 of the form. The “Tax American prisoners of war at
Report” column in Saturday’s Malmedy, Belgium, was com-
Exchange section said the de- mitted by an SS unit. A Review
duction is made on line 29, article Saturday about the Bat-
which was the line number be- tle of the Bulge incorrectly said
fore the form was revised. a Gestapo unit. Also, the term
“casualty rate” refers to the
The last name of reporter percentage of soldiers killed,
Ira Iosebashvili was misspelled wounded or missing. The arti-
as Losebashvili in the byline of cle incorrectly implied that it
a Markets article Saturday refers only to soldiers killed.
about gold prices.
The website for Super G ho-
Large-cap growth funds tel in Courmayeur, Italy, is love-
were up an average 30% for superg.com. The website was
2019 through November. A misspelled as ovesuperg.com in
Journal Report article Monday a Nov. 30 Off Duty article about
about U.S.-stock funds incor- Courmayeur.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
 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.
Pensacola Shooter Got Gun
Under Exception to U.S. Law
BY ALEX LEARY
AND NANCY YOUSSEF
WASHINGTON—Exceptions
under federal firearms law al-
lowed the suspect in an attack
at a Florida military base to le-
gally buy a handgun in the U.S.
despite his Saudi citizenship,
officials said.
Mohammed Alshamrani was
able to buy the 9mm Glock 45
because he had obtained a state
hunting license, which is one of
the exceptions to a law that
normally prohibits people ad-
mitted to the U.S. under a non-
immigrant visa from possessing
or owning a firearm, the Fed-
eral Bureau of Investigation of-
fice in Jacksonville, Fla., said
Tuesday. State officials in Flor-
ida are now calling such excep-
tions “loopholes” that must be
closed to help prevent similar
incidents in the future.
Alshamrani killed three peo-
EDUARDO MUNOZ ALVAREZ/ASSOCIATED PRESS
Police arrived at the scene of Tuesday’s gunbattle in Jersey City, N.J. Six people, including an officer and two suspects, were killed.
Kosher Store Target of Deadly Attack
JERSEY CITY, N.J.—A kosher
grocery here was the target
Tuesday of an attack by gun-
men that left six people dead,
including a police officer, ac-
cording to the city’s mayor.
The shootings began at the
Bay View Cemetery in Jersey
City, when Detective Joseph
Seals confronted the suspects
By Ben Chapman,
Tyler Blint-Welsh
and Joseph De Avila
and was shot and killed by
them, officials said. The two
suspects, believed to be two
men dressed in black, then fled
no
to the Jersey City Kosher Su-
permarket several blocks away,
officials said.
After receiving a report at
12:30 p.m. of a shooting at the
grocery store, police took
heavy fire for hours from the
suspects in the store, officials
said, and called for assistance
from the Federal Bureau of In-
vestigation, state police and
police departments from sur-
rounding municipalities.
Court Questions Bid to Avoid Paying Insurers
BY BRENT KENDALL
WASHINGTON—A majority
of Supreme Court justices
questioned whether the fed-
eral government could avoid
an obligation to pay billions of
dollars to health insurers that
sold consumer policies on ex-
changes created by the Afford-
able Care Act.
During an hourlong oral ar-
gument Tuesday, most of the
justices seemed skeptical
about the Justice Depart-
ment’s arguments that the
government didn’t have to pay
roughly $12 billion. The money
wasn’t owed, the department
said, because lawmakers made
changes to a program under
the ACA called the “risk corri-
dors” program.
The three-year program
aimed to keep premiums low
and limit financial risks for in-
surers that offered coverage
on the exchanges, a critical
feature of the Obama-era
* * * * *
U.S. NEWS
ple Friday in the attack at Na-
val Air Station Pensacola before
he was shot dead by a local
sheriff’s deputy.
Defense officials said Tues-
day that about 300 Saudi stu-
dents training at three Florida
bases had been directed by the
Navy not to fly as a probe con-
tinued into Friday’s attack.
Senior administration offi-
cials said later the Pentagon is
suspending instruction for all
Saudi students involved in
flight school or other opera-
tional training as it conducts a
review of security vetting for
all international military educa-
tion and training programs.
There are about 850 Saudi
military students training
across the various U.S. military
branches. Under the new order,
any student taking part only in
classroom work won’t be af-
fected, officials said.
Acting Navy Secretary Tom
on
us l,
al a
e
ci on
er rs
m e
m rp
Authorities said they recov-
co Fo
ered a stolen U-Haul truck that
contained an incendiary device,
which was being examined by a
bomb squad.
Mayor Steven Fulop wrote
on Twitter Tuesday night that
after an initial investigation,
officials believe the suspects
targeted the location. “Due to
an excess of caution the com-
munity may see additional po-
lice resources in the days/
weeks ahead,” Mr. Fulop said.
“We have no indication there
n-
are any further threats.”
Officials said earlier Tues-
day that investigators had yet
to determine the shooters’
motive.
Jersey City Director of
Public Safety James Shea said
then that there was no evi-
dence that the shooting was
an act of terrorism.
The shootout at the grocery
store left three bystanders
dead in addition to the two
gunmen, police said.
“The investigation will take
weeks, maybe months,” Jersey
City Police Chief Michael Kelly
health law. But after the ACA
was enacted, Congress in later
budget years attached appro-
priations provisions that effec-
tively prohibited the govern-
ment from making payments
under the program.
Justice Department lawyer
Edwin Kneedler argued the
Most justices sound
skeptical of the
government’s
arguments.
payment program wasn’t an
ironclad promise and was al-
ways contingent on Congress
actually appropriating money.
That argument ran into re-
sistance. “Why doesn’t the
government have to pay its
contracts like anyone else?”
asked Justice Stephen Breyer.
Modly and the Navy’s top en-
listed sailor, Master Chief Petty
Officer Russell Smith, visited
Pensacola on Tuesday.
Alshamrani, a 21-year-old
second lieutenant in the Royal
Saudi Air Force, came to the
U.S. in 2017 for a three-year
U.S. military-training program
associated with Saudi arms
purchases. U.S. authorities are
probing the Pensacola shooting
as an act of terrorism .
Under federal law, people
admitted to the U.S. under a
nonimmigrant visa—in the
country temporarily for study,
short-term work or medical
treatment—can’t posses or own
a firearm, unless they qualify
under an exception.
The exceptions include for-
eign residents who hold a valid
hunting license or permit,
those admitted for lawful hunt-
ing or sporting purposes, cer-
tain official representatives of a
said. “The crime scene is very
extensive.” Two other police
officers suffered minor injuries
in the shootout.
Detective Seals, the officer
killed at the cemetery, had
been assigned to Jersey City
police’s Cease Fire Unit. Chief
Kelly said Mr. Seals had re-
cently been promoted to de-
tective and was known for his
work ridding the city of illegal
firearms.
“We believe that he was
killed while trying to interdict
with these bad guys,” Mr.
Kelly said.
The midday gunfight sent
residents scrambling and
prompted businesses and
schools in the area to go into
lockdown. Bursts of shots
could be heard every 15 min-
utes, said 59-year-old
Ethridge Stone, who lives
near the scene.
“I’ve never heard rapid gun-
fire like I heard today,” Mr.
Stone said.
“Store owners were hitting
the ground, dodging bullets,”
said Pamela Johnson, the
Mr. Kneedler said the pro-
gram wasn’t an actual contract
with insurers.
Justice Brett Kavanaugh
questioned the sweep of the
government’s position. “Is ev-
ery congressional promise to
pay, therefore, subject to an
implicit appropriations ca-
veat?” he asked.
“I believe by and large that
that is correct, yes,” Mr. Knee-
dler said.
Justices Kavanaugh and El-
ena Kagan both said the ACA
program prompted insurers to
charge consumers lower insur-
ance premiums than they
would have otherwise.
“The Congress that passed
this provision wanted to keep
the premiums down, didn’t
it?” Justice Kagan asked. “And
so it induced a certain kind of
reliance on the part of the in-
surers.”
Chief Justice John Roberts
suggested the ACA insurance
exchanges wouldn’t have been
Wednesday, December 11, 2019 | A3
foreign government, or a for-
eign law-enforcement officer of
a friendly foreign government
entering the U.S. on official
law-enforcement business.
Alshamrani obtained a hunt-
ing license through the Florida
fish-and-wildlife agency, and it
was effective beginning July 11,
2019, an agency spokeswoman
said. The shooter bought the
pistol from a licensed dealer in
Florida on July 20, the FBI said.
“The exception under which
the #PensacolaShooter quali-
fied to purchase a firearm was
a valid Florida hunting license,
but he may have qualified un-
der other exceptions as well,”
the FBI office in Jacksonville
said on Twitter.
Republican Florida Gov. Ron
DeSantis has called for closing
what he called a loophole that
let the shooter get the gun.
—Talal Ansari
contributed to this article.
.
© Verdura. All rights reserved.
ly
founder of the Anti-Violence
Coalition of Hudson County
who lives near the scene of the
shooting. “People were run-
ning for cover.”
The immediate area around
the shooting is home to 60 or SOUT H SEA PEA R L DROP EA RCLI PS
70 Hasidic families, according Pearl , di amond and 18k gol d , $17,50 0
to Rabbi Avi Schnall, director
of the New Jersey office of
Agudath Israel of America.
The kosher grocery store, 74 5 F I F T H AV E N U E , 12 T H F LO O R
the only one in Jersey City, and 212 .758 . 33 8 8 • V E R D U R A .CO M
a nearby school and syna-
gogue, are the nexus of the Original gouache by Duke Fulco di Verdura
community, he said.
Victoria Ferencz, in Monroe,
N.Y., said her son Moishe Fer-
encz, who is Hasidic, has
owned the grocery store for
several years.
“I can’t give any informa-
tion,” Mr. Ferencz said by
phone. “I’m not allowed to
speak to anyone.”
Ms. Ferencz said her son
“gets along with everybody.
He is nice to everybody and ev-
erybody is nice to him.”
—Leslie Brody
and Melanie Grayce West
COMSUBIN
contributed to this article. ITALIAN NAVY DIVERS
AND NAVY SPECIAL FORCES
an attractive business oppor-
tunity to insurers absent the
government’s promise to cover
a portion of certain losses that
might occur.
Under the program, the ad-
ministration collected money
from insurers and redistrib-
uted it, giving more to compa-
nies that fared poorly on the
ACA marketplaces.
Fewer healthy people par-
ticipated in the exchanges
than expected, and many in-
surers suffered greater losses
than anticipated. The insurers
say the government was le-
gally obligated to cover cer-
tain losses even if it didn’t col-
lect enough money from
participating insurers. They apply to the new panerai pam.guard program
sued when the government to benefit up to 8 years of
international limited warranty
didn’t pay. A federal appeals register your timepiece on panerai.com
court sided with the govern-
ment last year in a divided
ruling. The Supreme Court is
reviewing that decision.
700 Fifth Avenue & 55th Street – 212.397.9000
—Stephanie Armour
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.
A4 | Wednesday, December 11, 2019
Barr Calls FBI’s Trump Probe ‘Travesty’
It is too soon to “That’s why we have Dur-
ham,” he said. “He will have a
determine whether broader appreciation of all the
bias motivated inquiry, facts and a determination can
be made.”
attorney general says His remarks came a day af-
ter the Justice Department’s
BY SADIE GURMAN inspector general Michael Hor-
owitz released a report that
WASHINGTON—Attorney determined the FBI had ade-
General William Barr escalated quate basis in 2016 to open its
his criticism of the Federal Bu- investigation into whether
reau of Investigation’s probe Trump campaign associates
into possible Trump campaign conspired with Moscow’s elec-
connections to Russia, calling tion interference.
it a “travesty” that was Mr. Barr rejected that key
opened on flimsy evidence. conclusion and pointed instead
Speaking at The Wall Street to the report’s more scathing
Journal CEO Council gathering findings of FBI errors and mis-
Tuesday, Mr. Barr said it was steps. His disparagement of
too soon to determine whether the agency echoed President
political bias motivated the in- Trump’s own long-held com-
quiry, even after the Justice plaints about the investigation
Department’s inspector gen- of his presidential campaign.
eral said he had found no evi- In an interview earlier
dence that FBI leaders acted Tuesday with NBC News, Mr.
out of partisanship. Barr said he still believed the
John Durham, a federal FBI might have operated in
prosecutor he appointed to “bad faith” in opening the
separately examine the origins Russia probe in 2016 and con-
of the probe, will be better tinuing to investigate Mr.
able to answer that question Trump’s actions after he took
than the internal watchdog, office. “I think our nation was
who was limited in the type of turned on its head for three
information he was able to ob- years based on a completely
tain, Mr. Barr said. bogus narrative that was
At President’s Door: Trade Win, Impeachment Articles
BY CATHERINE LUCEY ever haltingly, on a smattering
AND ANDREW DUEHREN of policy priorities, even as
Congress weighs whether to
WASHINGTON—For Presi- remove Mr. Trump from office.
dent Trump and much of Capi- Mr. Trump called the im-
tol Hill, it was an hour of po- peachment inquiry “sheer Po-
on
litical whiplash. litical Madness” on Twitter
First, House Speaker Nancy just before praising the Demo-
Pelosi appeared at a 9 a.m. cratic support for USMCA as
press conference to unveil im- “great for our Country!” Add-
us l,
peachment articles against Mr. ing to the drama of the day,
Trump. She then walked to a the president had a closed-
al a
e
10 a.m. event to hand him a door meeting with Russian
win with the announcement Foreign Minister Sergei Lavrov
Democrats would support a Tuesday afternoon where, ac-
ci on
new U.S. trade deal with Mex- cording to the White House,
ico and Canada. Mr. Trump “warned against
It was a split-screen mo- any Russian attempts to inter-
ment that was unusual even fere in United States elections
for a time of divided control in and urged Russia to resolve
er rs
Washington. Both sides of the conflict with Ukraine.”
Pennsylvania Avenue are man- Throughout the impeach-
aging to move forward, how- ment process, both sides had
m e
m rp
WSJ TALK / EXPERIENCE / OFFER / GETAWAY / EXTRAS
co Fo
n-
no
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P W L C 10 11 12
Attorney General William Barr said Tuesday the FBI’s ‘case collapsed after the election.’
largely fanned and hyped by a
completely irresponsible
press,” Mr. Barr told NBC. “I
think there were gross
abuses…and inexplicable be-
havior that is intolerable in
the FBI.”
argued they wanted to con-
tinue to work on policy. The
USMCA presented a particu-
larly good opportunity: a piece
of legislation with bipartisan
support that gave Mr. Trump a
win on a campaign promise
and offered political cover to
congressional Democrats in
moderate districts concerned
about re-election.
“I think in some ways im-
peachment makes it easier for
Democrats to work with
Trump on some issues,” said
Republican strategist Alex Co-
nant. “The Democratic base is
demanding that congressional
Democrats confront Trump
and impeachment is the ulti-
mate way to do that. As long
as the base is satisfied con-
gressional Democrats are
H T G K R F A M 1 2 3 4 5 6
U.S. NEWS
Mr. Trump on Monday criti-
cized FBI Director Christopher
Wray, suggesting he lacked
confidence in the FBI head.
Mr. Wray told reporters
Monday he agreed with the in-
spector general’s finding that
holding Trump accountable,
Democrats have some leeway
to work on other issues.”
At the press conference dis-
cussing the agreement, Mrs.
Pelosi focused on changes
Democrats secured to the orig-
inal deal. “There are some
people who said, ‘Why make it
look like he has a victory?’ ”
she said of working with Mr.
Trump on USMCA. “Well we’re
declaring victory for the
American worker and what is
in this agreement.”
The USMCA deal isn’t the
only legislative package Con-
gress is hoping to push
through to the president’s
desk in the final weeks of
2019. A bill to address surprise
medical billing, the annual de-
fense authorization bill, and
Speaker Nancy Pelosi and top House Democrats appeared at a news conference on Tuesday.
House
Panel Lays
Out Case
Continued from Page One
ciary panel aiming to start
holding votes as early as
Wednesday ahead of a planned
House floor vote next week.
Democrats have said they want
to act before next year’s elec-
tions because they say the
president is liable to continue
to solicit more foreign interfer-
ence, pointing to his 2016 call
for Russia to unearth negative
information on Hillary Clinton.
Only two presidents have
been impeached; no president
has ever been convicted in the
Senate. Majority Leader Mitch
McConnell (R., Ky.) told report-
ers at his weekly news confer-
ence Tuesday that “it’s not pos-
sible” to turn to a Senate trial
before Congress breaks for the
holidays.
House Speaker Nancy Pelosi
(D., Calif.) would need 216 votes
to pass the articles through the
House, so she can afford few
defections from her 233-mem-
ber caucus given that all Repub-
licans are likely to vote against
the articles. That puts a focus
on the 31 Democrats who are
from districts Mr. Trump won
in 2016. Of the 20 of those
members that The Wall Street
Journal surveyed, three said
they would definitely vote for
articles of impeachment.
“I’m going to look at the full
body of information, read it
thoroughly and make an objec-
tive decision,” said Rep. Elissa
Slotkin, a Michigan Democrat
7 8 9 O I X X **** THE WALL STREET JOURNAL.
but it sure wasn’t the one
given to me,” Mr. Trump
tweeted on Tuesday. “With
that kind of attitude, he will
never be able to fix the FBI,
which is badly broken despite
having some of the greatest
men & women working there!”
The FBI declined to com-
ment. Mr. Wray said Monday
the bureau was making
changes in the wake of the re-
port, including to its confiden-
tial human-source program.
RALPH ALSWANG FOR THE WALL STREET JOURNAL
Mr. Horowitz found serious
problems with the steps the
FBI took—and in some cases,
didn’t take—as it sought court
permission to monitor a for-
mer Trump campaign aide as
the investigation progressed.
Mr. Barr said it was an out-
rage that the FBI’s “case col-
lapsed after the election and
they never told the court and
they kept on getting these re-
newals.”
Mr. Barr’s comments raise
the stakes for the investiga-
there was a proper legal basis tion being conducted by Mr.
for opening the probe while Durham. At least one FBI law-
accepting the report’s more yer is under criminal investi-
troubling conclusions. gation for allegedly altering a
“I don’t know what report document in connection with
current Director of the FBI the surveillance of the Trump
Christopher Wray was reading, aide.
spending legislation to fund “Impeachment has never
.
the government after Dec. 20 consumed all of what we’re
ly
are all on the docket for law- doing,” said Rep. Karen Bass,
makers before they go home (D., Calif.).
for the holidays. Rep. Dan Kildee (D., Mich.)
“The federal government said Democrats will work with
handles things the way I did Mr. Trump on certain issues,
my term papers. You wait until even as they broadly oppose
the last minute and cram. him. “A broken clock is right
That’s kind of where we’re at,” twice a day. That doesn’t mean
said Sen. John Boozman (R., it’s not a broken clock,” Mr.
Ark.). Kildee said. He said a trade
After months of accusations agreement was too important
from Republicans that they to ignore.
were prioritizing a partisan “There’s political risk in not
impeachment process above doing your job,” he said.
policy objectives, House Dem- The White House sought to
ocrats were eager to prove the frame the USMCA deal as a
critics wrong Tuesday, with major win ahead of the presi-
several members quipping to dent’s 2020 campaign, as well
reporters that they were fi- as evidence that he could con-
nally asking about something tinue to govern amid impeach-
besides impeachment. ment.
ANDREW HARRER/BLOOMBERG NEWS
who represents one of those that, is not going to be terribly
Trump-won districts. “It’s prob- popular with either side,” said
ably the most serious consider- Sen. John Thune of South Da-
ation I’ll give anything in my
one year in Congress.”
kota, the No. 2 Senate Republi-
can, who is responsible for
Should impeachment reach counting GOP votes.
the Senate, a person familiar
with White House thinking said
it would like to see a trial with
A Senate GOP aide said the
White House and Senate GOP
leaders are talking frequently
witnesses called, allowing for a and that Senate Republican
robust airing of a defense of the leadership isn’t in disagreement
president. But Mr. McConnell with the president about how to
laid out a way the Senate might approach the trial.
vote on whether to remove Mr. Senators of both parties say
Trump without calling wit- it is very unlikely that the Sen-
nesses. In describing that sce- ate trial results in a conviction
nario, he said he anticipates
that Chief Justice John Roberts,
who will preside, wouldn’t rule
and removal from office, which
requires a two-thirds majority
vote.
on any motions himself but kick
them back to the full Senate for
a vote.
Democrats who favored only
two articles of impeachment
are hoping to keep their caucus
The threshold during an im- from splitting and to present a
peachment trial is a simple ma-
jority, meaning 51 out of 100
senators would be needed to
case that would be easy for the
public to understand. Many in
the party had lobbied for an ob-
call witnesses, set procedure or struction-of-justice charge re-
dismiss the matter entirely. lated to the probe by former
There are 53 Republicans in the special counsel Robert Mueller
Senate so Mr. McConnell is on Russian election interfer-
working with a thin margin. ence.
Mr. McConnell said he antici- “We wanted to develop arti-
pates a trial working like this: cles of impeachment that enjoy
House managers, acting as the broad support of the caucus
prosecutors, would make their and that focused on the most
arguments. The president’s law- serious conduct,” said Rep. Da-
yers, Mr. Trump’s defense team, vid Cicilline (D., R.I.), a Judi-
would then respond. “And at ciary Committee member.
that point, the Senate has two “Abuse of power is the highest
choices,” Mr. McConnell said. of high crimes and misdemean-
Senators could call witnesses, ors, and so that incorporates a
he said, “or they could decide lot of conduct.”
that they’ve heard enough.” The White House would like
At that point, Mr. McConnell a trial to begin right away, the
said, a majority of senators person familiar with its think-
could move to vote on the two ing said, and Mr. Trump is “in-
articles of impeachment. He terested in this resolving as
added that no decisions about quickly as possible,” the person
trial procedure have been made. said.
“I think a protracted period —Lindsay Wise, Andrew
where there are motions to call Restuccia
witnesses offered by both sides, and Catherine Lucey
and lots of votes attendant to 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, December 11, 2019 | A5

U.S. NEWS

Health Officials
Called to Meet
At White House
Heads of HHS and private and military planes for
work travel. Reports about that
Medicare are at odds; travel led to Mr. Price’s resig-
media leaks, ethics nation last year.
These people also said the
probe among issues tension is partly fueled by a
belief that Ms. Verma wants
BY STEPHANIE ARMOUR the HHS secretary position.

JENNA SCHOENEFELD FOR THE WALL STREET JOURNAL

WASHINGTON—The acting
White House chief of staff has
called Trump administration
health officials Seema Verma
and Alex Azar to a meeting this
week, administration officials
said Tuesday, the latest effort
to smooth a rift that threatens
to overshadow the president’s
health policy agenda.
Conflict between Mr. Azar,
the Health and Human Services
secretary, and Ms. Verma, the
administrator of the Centers
for Medicare and Medicaid Ser-
Allies of Ms. Verma have
said she played no role in pro-
viding leaks to the press about
Mr. Price’s travel and that she
wasn’t aware he was doing it.
“These allegations are com-
pletely false and ridiculous,” a
CMS spokesman said.
Ms. Verma is an ally of Mr.
Pence and worked for him
when he was governor of Indi-
ana. She also enjoys the sup-
port of several top White
House advisers, according to
three people familiar with the The University of California’s campus in Los Angeles. UC campuses received more than 176,000 freshman applications last year.
issue, and has been key to sev-

Groups Sue University Over SAT, ACT

vices, has divided employees,
with some saying it has created
a tense work environment.
The Wall Street Journal re-
ported Monday that an inter-
nal CMS review of news sto-
ries critical of Ms. Verma
found that officials at HHS—
CMS’s parent agency—may
have been the source of some
leaks to reporters.
eral initiatives, including over-
hauling Medicaid with its first-
ever work requirements.
The president has repeat-
edly praised Mr. Azar, a former
pharmaceutical executive, for
his efforts to lower drug prices.
Mr. Azar has clashed for
some time with Ms. Verma.
The two have had differences
over policy initiatives, and
BY MELISSA KORN
A group of students and
community organizations filed
a much-anticipated lawsuit
against the University of Cali-
fornia, alleging that the uni-
cants to submit SAT or ACT
scores, and from using scores
in admission decisions unless
it can demonstrate a way of
assessing the scores “in a rig-
orous and meaningful, trans-
parent, nondiscriminatory, and
orado College now make test
scores optional. They have
questioned whether standard-
ized tests offer any more value
than high-school performance
in predicting college success.
Defenders of the tests say
recommendations expected
before the end of the school
year, and the university will
make a decision after that, a
spokeswoman from the UC
president’s office said. Its de-
termination is expected to

.
The meeting this week with some CMS employees said the versity system discriminates non-stigmatizing manner,” ac- students with high scores tend have wide-ranging implica-

acting White House chief of
staff Mick Mulvaney will focus
on resolving tensions between
Ms. Verma and Mr. Azar, ac-
cording to people in the admin-
istration familiar with the mat-
ter. It would make it at least
the third such White House ef-
feud escalated after the White
House withdrew a marquee
initiative from Mr. Azar to
lower drug prices after Ms.
Verma told the president she
opposed it.
on
Ms. Verma has come under
fire after a series of news sto-
us l,
against low-income students,
racial minorities and others by
requiring SAT or ACT admis-
sions tests.
The suit was filed Tuesday
in California state court on be-
half of a high-school sopho-
more, two seniors, and a first-
cording to the suit.
The plaintiffs are wading
into a nationwide debate
about meritocracy and fair-
ness in college admissions.
Concerns that certain groups
get special advantages, be-
cause of wealth, race or other
ly
to fare well in college and be- tions due to its size and clout,
as UC campuses received more
than 176,000 freshman appli-
cations last year.
The plaintiffs are
wading into a debate
UC campuses can consider
academic performance, stan-
dardized test scores, class
about fairness in rank, extracurricular activities

fort, following similar calls by
President Trump and Vice
President Mike Pence.
HHS representatives de-
clined to comment Tuesday.
ries critical of her spending
and other actions. Most nota-
al a
e
bly, the HHS inspector gen-
eral launched an investigation
into whether she complied
ci on
year student at Pasadena City
College, all of whom it says
would be strong candidates
for more selective UC cam-
puses except for their test
factors have come to a head
with last year’s trial regarding
admissions practices at Har-
vard University, as well as the
more recent admissions cheat-
college admissions.
yond. The standardized tests
and other factors, but unlike
many other selective institu-
tions are barred from taking
into account race or ethnicity
in admissions.

People familiar with the
matter said distrust between
Ms. Verma and Mr. Azar has
arisen in part because some
people at HHS suspect Ms.
with ethics requirements in
directing millions of dollars
in contracts awarded to GOP
communications consultants.
The story was earlier re-
er rs
scores. Several California col-
lege-prep and social-justice
nonprofits are also plaintiffs
in the suit. The Compton Uni-
fied School District is prepar-
ing scandal that accuses fami-
lies of having their teens lie
about their academic creden-
tials and cheat on the SAT and
ACT.
have been considered by many
as an equalizer, allowing col-
leges to identify talent from
high schools with which they
are not familiar.
“We are disappointed that
plaintiffs have filed a lawsuit
when the University of Califor-
nia has already devoted sub-
stantial resources to studying

Verma leaked information to ported by Politico. ing to file a related suit. More than 1,000 colleges A UC task force is currently this complex issue,” the uni-
the media about former HHS —Andrew Restuccia They seek to bar the UC and universities including the assessing the value of the SAT versity spokeswoman said
Secretary Tom Price’s use of contributed to this article. system from requiring appli- University of Chicago and Col- and ACT in admissions, with Tuesday.
m e

College Funds Tied to Israel Stance

m rp

BY MICHELLE HACKMAN civil-rights investigations into gress, the Anti-Semitism

AND CATHERINE LUCEY schools that it deems not to be Awareness act, would have
fostering an open climate for written into law.
WASHINGTON—President Jewish students. Under federal The executive order also
co Fo

Trump plans to sign an execu-
tive order to combat anti-Semi-
tism on college campuses by
threatening to cut off federal
funds to schools that don’t curb
discrimination against Jewish
students, according to a senior
administration official.
The order, to be signed
Wednesday, is designed to tar-
get the Boycott, Divest and
Sanction Israel movement,
popular on college campuses.
The Trump administration—
civil rights law, the Education
Department doesn’t have au-
thority to crack down on direct
forms of religious bias.
Critics of a tougher federal
approach against BDS say the
government is infringing on the
free-speech rights of the move-
ment’s supporters and essen-
tially favoring Jewish students
over Muslim students.
“It is designed to chill any
kind of speech that is critical of
Israel,” said Joe Cohn, legisla-
n-
adopts a definition of anti-Sem-
itism from the State Depart-
ment, which defines one form
of it as “denying the Jewish
people their right to self-deter-
mination” and cites opposition
to Israel as an example of that
behavior. Free-speech advo-
cates fear that definition could
allow the administration to go
after any criticism of Israel as a
form of discrimination, with
millions of dollars in federal
funding at stake.

along with critics on the left
and the right—have long ar-
gued BDS is a pernicious form
of anti-Semitism akin to dis-
no
tive and policy director at the Expanding the Education De-
Foundation for Individual partment’s purview to oversee
Rights in Education. “This the BDS movement on college
would be unconstitutional.” campuses has been the goal of

crimination against racial mi-
norities or women.
The order, earlier reported
by the New York Times, would
define discrimination against
Jewish students as a form of
bias against their shared na-
tional identity—Israel—rather
than just a form of religious
discrimination. Defining Juda-
ism effectively as a form of na-
tional identity allows the Edu-
cation Department to open
At least 27 states have
passed laws attempting to curb
the BDS movement, in part by
requiring state contractors to
sign pledges not to support it.
Several of those laws have been
struck down in federal courts
as a violation of the First
Amendment.
The president’s executive or-
der is intended to achieve
through administrative action
what a long-stalled bill in Con-
the top civil-rights official at
the department, Ken Marcus,
who was formerly president of
the Louis D. Brandeis Center. In
that role, Mr. Marcus filed civil-
rights complaints with the Edu-
cation Department against uni-
versities with prominent
Palestinian-solidarity organiza-
tions, which promoted activi-
ties the complaints said
amounted to “harassment” of
Jewish students.

U.S. WATCH Historic Masterpiece

COLORADO
Voters Get a Say Over Gates Prosecutors
Bringing Back Wolves Back No Jail Time
Colorado residents may get
a chance to help decide the
fate of gray wolves in the
West in what experts say ap-
pears to be the first time vot-
ers could reintroduce an endan-
gered species.
On Tuesday, a coalition of
groups seeking to bring wolves
back to the state turned in
enough signatures to put the
question on Colorado’s ballot in
November 2020.
The measure asks voters if
they want to begin reintroducing
wolves to public lands in west-
ern Colorado by the end of
2023.
Opponents of the measure
say it would put elk and deer
herds at risk, burden ranchers
and farmers to recoup any
losses, and create conflict be-
tween wolves and humans.
—Dan Frosch
WASHINGTON, D.C.
Prosecutors recommended
that former Trump campaign
aide Richard Gates serve no jail
time for his financial and other
crimes, praising his “extraordi-
nary” cooperation against multi-
ple other former Trump advisers
caught up in special counsel Rob-
ert Mueller’s investigation.
In a Tuesday court filing, the
U.S. attorney’s office in Washing-
ton said it wouldn’t oppose Mr.
Gates’s request for probation. He
has faced around four years in
prison after he pleaded guilty in
2018. Mr. Gates admitted at the
time to lying to investigators and
conspiracy related to his work in
the early 2010s in Ukraine with
former Trump campaign chair-
man Paul Manafort. During the
probe he met with investigators
more than 50 times and testified
at three trials, the filing said.
—Aruna Viswanatha
Jean-François Millet
TEXAS
Judge Halts Diversion Highly important artist. Dynamic
composition. Groundbreaking style.
Of Funds for Wall This museum-quality, original oil
A federal judge in Texas on canvas entitled The Abduction of
blocked the Trump administra- the Sabine Women was painted by
tion from using billions of dollars Jean-François Millet, one of the most
in funding from the Defense De- important painters in art history.
partment to pay for construction With the majority of his works
of a wall on the Mexican border. held in museums worldwide, it is
U.S. District Judge David Bri- exceedingly rare to find a painting by
ones issued an injunction Tues- Millet available on the market. Circa
day blocking the federal govern- 1844-47. Canvas: 241/4”h x 197 / 8”w;
ment from using $3.6 billion Frame: 37”h x 321/2”w. #31-0260
previously earmarked for 127 mili-
tary construction projects to fund
the wall, as President Trump had
ordered under an emergency dec-
laration this year. Judge Briones
said the administration can only
use $1.375 billion approved by
Congress for the wall.
The case was filed by El Paso 622 Royal Street, New Orleans, LA • 888-867-9583 • ws@rauantiques.com • msrau.com
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The Justice Department said
it would appeal the ruling.
—Alicia A. Caldwell
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.

.
ly
on
us l,
al a
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ci on
er rs
m e
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co Fo
n-
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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.
U.S., Russia Top Envoys Clash at Meeting
Pompeo raises status
of detained American;
Lavrov denies Moscow
interfered in U.S. vote
BY COURTNEY MCBRIDE
AND VIVIAN SALAMA
WASHINGTON—Secretary
of State Mike Pompeo clashed
with Russian Foreign Minister
Sergei Lavrov over the fate of
an American detained in Rus-
sia and U.S. conclusions of
Kremlin meddling in the 2016
U.S. election.
The issues arose during a
meeting between Messrs.
Pompeo and Lavrov at the
State Department during a U.S.
visit by Russia’s top diplomat,
who also met later in the day
with President Trump at the
White House.
The meeting took place
shortly after House Democratic
leaders unveiled two articles of
impeachment charging that Mr.
Trump pushed Ukraine to an-
nounce an investigation of a
Trump political rival, the out-
come of a proceeding that often
focused on the president’s rela-
tionship with Moscow.
At a news conference,
Messrs. Pompeo and Lavrov
Growing Protests Push Macron on Pension Overhauls
BY NOEMIE BISSERBE
PARIS—The fate of France’s
costly pension system hinges
on who will blink first: Presi-
dent Emmanuel Macron or the
unions that have paralyzed the
country for nearly a week and
on Tuesday mobilized hundreds
of thousands of protesters who
oppose his plans to overhaul a
pillar of the socialist economy.
Fueling the unions is an
army of civil servants like Ma-
rie-Hélène Plard, a 39-year-old
schoolteacher in a Paris sub-
urb. She said her salary doesn’t
allow her to save much money
for retirement, but until re-
cently, she could count on a
solid pension. She worries that
possible changes will shave as
much as a third from her
monthly pension, which could
reach €2,250 ($2,490) after
taxes under the current system.
“Mr. Macron is breaking our
social contract,” Ms. Plard said,
adding that she won’t rest un-
til the president backs down.
An overhaul of the pension
system—particularly entitle-
ments owed to France’s robust
public sector, from civil ser-
vants to workers at the state-
owned railway—is central to
Mr. Macron’s campaign of
transforming the nation’s econ-
omy. France spends 14% of its
gross domestic product on the
pension system, more than
most other European countries.
The president, a former in-
vestment banker, wants people
to work longer before collecting
their pensions—now set at 43
years for a full pension—rather
no
than raise the legal age of re-
tirement of 62. He also aims to
consolidate France’s 42 pension
plans, which vary widely in re-
tirement ages and income, into
one universal system. That
jeopardizes the advantages
some public-sector workers
have over other employees.
Health Care Joins Brexit as Big Issue in Thursday’s U.K. Election
BY MAX COLCHESTER
STAFFORD, England—Brit-
ain’s Brexit election increas-
ingly isn’t about Brexit, and
for Prime Minister Boris John-
son, that presents a challenge.
To win Thursday’s election,
Mr. Johnson’s team hoped
they could keep the five-week
campaign focused on the
promise of resolving a three-
year deadlock over the U.K.
quitting the European Union.
Until this week, the ap-
proach has appeared to pay
dividends, giving Mr. Johnson
a healthy lead in the polls.
But ahead of Thursday’s
vote, some opinion polls have
showed Mr. Johnson’s lead
narrowing as attention turns
toward more traditional issues
such as housing and health
care, political analysts say.
Mr. Johnson is being pushed
into uncomfortable territory
having to defend his Conserva-
tive Party’s nine-year record in
office—a period during which
public services, particularly
the National Health Service,
suffered because of what many
* *
Mike Pompeo, second from left, met with Russian Foreign Minister Sergei Lavrov, second from right, in Washington on Tuesday.
both called for an improvement
in U.S.-Russia relations, while
stipulating that the two gov-
ernments disagree on an array
of issues. Chief among them
was election meddling.
American intelligence agen-
cies have concluded the Krem-
lin conducted an interference
campaign seeking to benefit
Mr. Trump. Mr. Pompeo said
the U.S. has provided ample ev-
idence of Russian interference
in the 2016 election. Mr. Lavrov
on
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A demonstrator brandished a flare in Lyon on Tuesday during a protest against President Emmanuel Macron’s plans to streamline France’s pension system.
Crucially, however, Mr. Ma-
cron hasn’t announced the de-
n-
tails of his overhaul. That gives
him room to negotiate, setting
the stage for a denouement.
On Wednesday French
Prime Minister Édouard Phi-
lippe is scheduled to deliver
an address on the overhaul. In
a closed-door meeting with
lawmakers from Mr. Macron’s
party on Tuesday, Mr. Philippe
tried to lower expectations,
his spokeswoman said. “I don’t
believe in magical announce-
Labour’s Jeremy Corbyn holding up a photo of a sick boy as he campaigned Monday in Bristol, England.
saw as inadequate funding.
A closely watched YouGov
poll out late Tuesday showed
Mr. Johnson’s party set to win
a majority of 28 seats in the
election. Last month a similar
YouGov poll had the Conserva-
tives winning a 68-seat major-
ity. The pollster said it couldn’t
rule out a hung Parliament.
WORLD NEWS
said there is “no proof.”
To build confidence, Mr. Lav-
rov proposed making public
confidential correspondence
between the two governments.
In October, Russian President
Vladimir Putin offered to re-
lease conversations between
the two heads of government in
a bid to clear the air.
Mr. Lavrov last visited Mr.
Trump at the White House in
May 2017, a day after the presi-
dent had fired Federal Bureau
ments,” Mr. Philippe said.
Unions are escalating pres-
sure. On Tuesday, about
339,000 teachers, rail workers
and air-traffic controllers took
to the streets in protests that
were mainly peaceful, the
French interior ministry said.
Trains, subways and buses
were severely curtailed across
Paris and other big cities. That
forced commuters to travel by
car, snarling traffic for hun-
dreds of miles around Paris.
Protesters also blocked oil re-
Earlier this week, Mr. John-
son’s tightly choreographed
campaign suffered a rare wob-
ble when a reporter tried to
show him an image of a sick 4-
year-old boy who had to sleep
on the floor of a hospital in
northern England because not
enough beds were available.
Mr. Johnson initially re-
Wednesday, December 11, 2019 | A7
Mr. Lavrov said he raised the
issue of elections himself, to
complain about Mr. Pompeo’s
earlier comments. He wouldn’t
say whether Mr. Trump re-
sponded to his complaint. The
White House didn’t respond to
questions about the exchange.
Messrs. Pompeo and Lavrov,
who spoke before the White
House meeting, told reporters
that they also had discussed is-
sues including arms control,
ALEX BRANDON/ASSOCIATED PRESS
the Russian invasion of
Ukraine, unrest in Venezuela,
the Syrian civil war and denu-
clearization of North Korea.
Mr. Pompeo said he had
raised the status of Paul
Whelan, a former U.S. Marine
held by Russia since December
2018 on espionage charges.
Mr. Lavrov said that the in-
vestigation into Mr. Whelan
of Investigation Director James ticles of impeachment. had concluded in September
Comey, who had been leading The White House said that and that the case would be
an investigation into whether during the meeting with Mr. headed to court.
Trump campaign officials col- Lavrov, the president “warned He touched on concerns that
luded with Russia in the 2016 against any Russian attempts to have been expressed about Mr.
presidential election. interfere in United States elec- Whelan’s health, suggesting
Mr. Lavrov’s return to the tions” and urged Russia to re- they might be inaccurate and
White House came a day after solve its conflict with Ukraine. part of an effort to derail the
the release of a sharply dis- In a news conference follow- legal process.
puted Justice Department ing his White House visit, Mr. “We are acting in full com-
watchdog’s report that the FBI Lavrov appeared to contradict pliance with our laws and with
had legal justification to open the president, saying he didn’t the international norms that
its Russia inquiry and hours af- discuss elections with Mr. can be applied in this case,” he
ter the House announced its ar- Trump. Later in his remarks, said via an interpreter.
.
ly
JEFF PACHOUD/AGENCE FRANCE-PRESSE/GETTY IMAGES
fineries, threatening to disrupt “president of the rich,” and basis of their average monthly
fuel supplies at gas stations. show he can listen. salary over the span of their
Mr. Macron has stared Speaking at a press confer- career, civil servants like Ms.
down strikes and protests be- ence early Tuesday—after me- Plard would take a serious hit.
fore, including demonstrations diating peace talks between Starting salaries for French
against his decision to rewrite the leaders of Russia and schoolteachers range from
labor laws at the beginning of Ukraine—Mr. Macron pledged €1,400 to €1,600 a month. They
his term. Last year, however, to forge ahead with his plans, can reach €3,000 at retirement.
the violent yellow-vest pro- saying the changes were indis- Last week, the government
tests forced him to abandon a pensable for the country. pledged to create a transition
planned increase in fuel taxes Public-sector pensions are period for workers nearing re-
and boost the incomes of min- currently based on a worker’s tirement age. The government
imum-wage earners. Since pay during the last six months also said it would ensure that
then, he has sought to shake of their career. If their pensions teachers’ pensions don’t lose
his image as an out-of-touch were instead calculated on the value under the new system.
“Refusing to even look at an During the campaign, on-
image of a child suffering be- line interest in Brexit has
cause of Conservative cuts to slumped among British voters,
the NHS is a new low for Boris according to Predata, a firm
Johnson. It’s clear he could not that analyzes social-media
care less,” said Jon Ashworth, data. “The electorate remain
Labour’s health spokesman. primarily focused on socioeco-
Helping the Conservatives, nomic issues,” Predata ana-
Labour is mired in problems of lysts wrote Tuesday.
its own. In a recording released Betting firm William Hill
Tuesday, Mr. Ashworth said La- said 58% of the money staked
bour had little chance of win- on the election on Tuesday
ning the election and character- was for no clear majority in
NEIL HALL/EPA/SHUTTERSTOCK
ized Labour leader Jeremy Parliament. However, Mr.
Corbyn as a security risk. Mr. Johnson’s lead in the polls
Ashworth later dismissed his makes the Conservative favor-
statements as banter. ites to win.
On Tuesday, Mr. Johnson
was working hard to put
Brexit back on the agenda.
Visiting a soon-to-be-opened Order by
heavy-machinery factory in 12/20 for
Christmas!
northern England, he drove a
fused to look at the picture. backhoe emblazoned with the
He later called the image “ter- slogan “Get Brexit Done”
rible” and reiterated a pledge through a Styrofoam brick
to spend more on the coun- wall painted with the message
try’s National Health Service. “Gridlock.” If Mr. Corbyn de-
The main opposition Labour prived him of majority, he told
Party, which is promising hun- a crowd gathered there, “the
dreds of billions of dollars in life would go out of politics Your Children’s Names hand-crafted in
sterling silver with brilliant Swarovski crystals
supplemental public spending, and we would be stuck in neu- set in solid gold - $390
leapt on the gaffe. tral.” JOHN-CHRISTIAN.COM 888.646.6466
 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, December 11, 2019
WORLD WATCH
CHILE
Military Plane Missing
With 38 on Board
Military aircraft from three
South American countries were
scouring the turbulent waters of
the South Atlantic north of Ant-
arctica on Tuesday after a Chil-
ean Hercules C-130 military-trans-
port plane disappeared the night
before with 38 people aboard.
Air-traffic controllers lost con-
tact with the aircraft about 90
minutes after it left a Chilean air
base in Punta Arenas, the capi-
tal of Chile’s southernmost re-
gion, and flew over the Drake
Passage en route to a Chilean
air strip on King George Island
off the Antarctic peninsula.
The plane didn’t send a dis-
tress signal before disappearing
about halfway into its flight,
Chilean Air Force Gen. Eduardo
Mosqueira told the press.
The Hercules, on a supply and
maintenance mission, was carry-
ing 17 crew members and 21
passengers, the air force said.
The aircraft was transporting
workers who were to perform
maintenance on a floating oil
pipeline and carry out an anti-
corrosive treatment on installa-
tions, the air force said. Three ci-
vilians were on the flight.
The Pacific and Atlantic meet
in the 500-mile wide body of
water where the plane went
missing, an area with some of
the worst weather on the
planet.
—Jeffrey T. Lewis
SUDAN
Peace Talks Restarted
With Rebel Groups
Sudan’s transitional govern-
ment met with rebel leaders on
Tuesday, resuming peace talks in
a bid to end the country’s pro-
tracted civil wars.
The talks are being held in
South Sudan, which itself gained
independence from Sudan in
2011 following decades of war.
After sweeping street pro-
tests toppled Sudan’s autocrat
President Omar al-Bashir in
April, a power-sharing deal be-
tween military and civilian lead-
ers called for peace negotiations
with the country’s rebels. The
agreement gave transitional au-
thorities a six-month deadline
ending in February to make
peace with armed groups that
have been fighting the central
government for years.
Sudan’s new transitional gov-
ernment is under pressure to
end the wars with rebels, as it
seeks to rehabilitate the coun-
try’s battered economy, attract
much-needed foreign aid and de-
liver the democracy it promises.
—Associated Press
HUNGARY
Right-Wing Parties
Approve Tighter Laws
Hungary’s right-wing govern-
ing parties on Tuesday approved
legislation greatly increasing fines
and sanctions on lawmakers who
disrupt parliamentary activities.
The rules, dubbed a “muzzle
law” by the opposition, were ap-
proved principally by Prime Min-
ister Viktor Orbán’s Fidesz party
and its Christian Democrat coali-
no
tion partners. They seek to elimi-
nate protests inside the chamber
of deputies among other things.
The legislation was passed
nearly a year after opposition
lawmakers protesting labor leg-
islation they saw as exploiting
workers tried to prevent its ap-
proval by blowing whistles and
sirens in the chamber of depu-
ties and blocking access to the
parliamentary speaker’s pulpit.
The opposition Dialogue party
said it would ask the Constitu-
tional Court to strike down the
new regulations.
—Associated Press
SOMALIA
Forces Kill Rebels
After Palace Attack
Five heavily armed Islamic ex-
tremist rebels attacked the pres-
idential palace in Somalia’s capi-
tal Tuesday before they were
killed by security forces in a
shootout that spread from the
heavily fortified government
complex to a hotel, police said.
At least three people were
killed in the firefight at the SYL
hotel, which lasted about two
hours and was marked by sus-
tained gunfire punctuated by gre-
nade blasts, said Ahmed Ali, a
Somali police officer. He said 20
others were rescued from the
hotel. Security forces and guards
fought off the attackers, denying
them access to the hotel, he said.
Somalia’s extremist rebels, al-
Shabaab, claimed responsibility
for the attack, according to an
announcement on their Andalus
radio station.
—Associated Press
New Zealand Raced to Aid Wounded
BY DAVID WINNING
AND PHRED DVORAK
When Tony Smith took off in
a helicopter for New Zealand’s
White Island on Monday after-
noon, the intensive-care spe-
cialist had hoped his emergency
team would be able to rescue
survivors of the massive volca-
nic eruption there.
But when the chopper
touched down on an ash-cov-
ered beach after the mountain
had spewed steam thousands
of feet high, Dr. Smith stepped
out and was greeted by a blast
of furnace-like heat and a
smell of sulfur so strong it
penetrated the respirator
mask he was wearing.
It was clear, Dr. Smith says:
Nobody still on the island
would be found alive.
Monday’s explosion at one of
New Zealand’s most active vol-
canoes killed at least six people
and left an estimated eight oth-
ers missing. All were partici-
pants on tours that bring an av-
erage of around 50 people a day
from Whakatane, a town on the
country’s North Island, to look
at White Island’s smoking fuma-
roles and steaming crater lake.
Around 30 injured people
were evacuated before Dr.
Smith’s team arrived. Most of
them have burns over more
than 30% of their bodies. Many
have burns inside their respira-
tory tracts—the result of prox-
imity to clouds of steam that
scientists say could have been as
hot as 300 degrees Fahrenheit.
Three boatloads of tourists—
on
U.N. Court Hears Rohingya Genocide Case
us l,
BY NIHARIKA MANDHANA
AND FELIZ SOLOMON
al a
e
An international lawsuit
seeking to establish that
ci on
Myanmar committed genocide
against its Rohingya Muslim
minority began as representa-
tives for Gambia, the Western
African nation that filed the
er rs
case, argued the ethnic group
continues to face threats of
destruction by authorities who
need to be stopped and held
m e
accountable.
The hearing was attended
by Aung San Suu Kyi, Myan-
m rp
mar’s main civilian leader and
a Nobel Peace Prize winner
who surprised many observers
by traveling to the Interna-
tional Court of Justice in the
co Fo
Netherlands for the case. She
sat at Myanmar’s table as
speakers for Gambia detailed
the evidence gathered by the
United Nations and other
groups that security forces
shot hundreds of Rohingya in
their homes, killed children
and infants and gang-raped
women during a military cam-
paign in 2017.
More than 700,000 Roh-
ingya were forced to flee
Myanmar for neighboring Ban-
n-
gladesh as a result of the cam-
paign, which forms a major
part of the genocide case. On
Tuesday, Gambia focused not
on the broader lawsuit but on
an urgent, near-term request
for the court to order provi-
sional measures to protect the
estimated hundreds of thou-
sands of Rohingya who still
live in Myanmar.
The situation for those Ro-
hingya could become worse
before the potentially years-
long case is fully decided,
Gambia argued in its presenta-
tion that lasted three hours.
They could face another mili-
tary offensive, it said. Gambia
also asked that Myanmar be
required to cooperate with
U.N. investigators who so far
Foreign Panel Steps Down From Probe of Hong Kong Police
BY NATASHA KHAN
HONG KONG—A panel of for-
eign experts said it was step-
ping down over concerns about
a probe into allegations of ex-
cessive force by Hong Kong po-
lice during recent protests.
The appointment of the
panel of foreign experts was
announced on Sept. 4, the day
the city’s top official, Chief Ex-
ecutive Carrie Lam, said she
would fully withdraw a bill that
would have allowed extradition
of suspects to China for trial.
That proposed legislation was
the catalyst for the protests.
The panel’s decision to step
down is likely to fuel criticism
of the investigation.
The panel said the body
tasked with the probe lacks the
powers and investigative capa-
bilities “necessary…to begin to
Prime Minister Jacinda Ardern hugged a first responder who helped those hurt in the volcanic eruption.
around 150 in total, according
to the estimate of one boat’s
skipper—had been on the island
an hour before the eruption.
Americans, Australians, Chinese
and a Malaysian were among
the 47 people on the island
when the eruption happened.
At the time, one of the three
boats was partway back to
Whakatane, another had
weighed anchor and was giving
passengers a last look at the
volcano. The last was waiting
for people to board.
After the eruption, one of
the boats turned back to help
those still ashore, while other
rescue craft and helicopters flew
in to pick up the most gravely
Aung San Suu Kyi, Myanmar’s main civilian leader, attended the International Court of Justice in The Hague on Tuesday.
have been denied access to the
country.
“I stand before you to
awaken the conscience of the
world and to arouse the voice
of the international commu-
nity,” said Abubacarr Tamba-
dou, Gambia’s justice minister,
who is leading his country’s
lawsuit against Myanmar. “We
ask: Why? Why is the world
standing by and allowing such
horrors again in our lifetime?”
Myanmar’s government has
dismissed reports of mass vio-
lence and accused the interna-
tional community of under-
playing the threat of Rohingya
militancy, which its military
says prompted the crackdown.
It has said accounts by a U.N.
fact-finding team and human-
rights groups are biased and
meet the standards citizens of
Hong Kong would likely require
of a police watchdog operating
in a society that values free-
doms and rights.”
The foremost demand of
protesters in Hong Kong has
been the establishment of a
judge-led commission to inves-
tigate how police have handled
the demonstrations that have
gripped the city for half a year.
Hong Kong’s government has
said that the city’s police
watchdog, the Independent Po-
lice Complaints Council, must
complete its own review first.
The IPCC has said it would
produce a report in early 2020
that will enable the Hong Kong
police and government “to take
the next steps necessary to
bring Hong Kong forward into
an era of enduring peace and
harmony under our constitu-
WORLD NEWS
wounded, eyewitnesses say.
At the New Zealand coast
guard’s communications cen-
ter in Whakatane, radio opera-
tor Tony Fleming started ping-
ing the pagers of boat
skippers, crew and duty offi-
cers and other volunteers to
assemble a rescue squad.
Woodworker Jim William-
son responded to the call. He
set out for the island in a boat
with six other volunteers—in-
cluding two paramedics.
White Island is around 26
miles offshore of Whakatane—
an hour to an hour-and-a-half
trip for boats and around 15
minutes by helicopter.
On his way, Mr. Williamson
exaggerated. Myanmar will
present its arguments
Wednesday.
Ms. Suu Kyi has come under
international criticism for de-
nying that large-scale atrocities
have occurred and doing little
to quell a Buddhist-nationalist
surge that has fueled anti-Roh-
ingya sentiment. Her presence
at The Hague, where the court
is located, closely links the for-
mer human-rights icon to the
issue of Rohingya persecution
and has made her the face of
the genocide defense.
Thousands of her support-
ers gathered in the city of
Yangon in Myanmar on Tues-
day. Large numbers of them
watched the arguments on a
screen erected in a park,
though many couldn’t under-
tional system.”
While the IPCC is responsi-
ble for oversight of the com-
missioner of police’s handling
and investigation of report-
able complaints against the
force, it can’t summon wit-
nesses or compel police to
provide evidence. Public com-
plaints must be filed with the
police before they are then
passed on to the IPCC.
The panel of foreign ex-
perts was invited by the coun-
cil to ensure the objectivity of
the council’s investigation, the
IPCC said in August. A state-
ment by the panel released in
November questioned the
IPCC’s ability to conduct inde-
pendent investigations into
policing practices, given the
scale of events in Hong Kong
and the council’s restrictions
on collecting and validating
* ***** THE WALL STREET JOURNAL.
many people were on the is-
land. Early reports put the
number of people on the is-
land at as many as 100, a num-
ber that was later lowered to
around 50.
After stopping to help the
tour boat, Mr. Williamson took
his vessel the rest of the way
to the island, since he had
heard that as many as 19 peo-
ple could still be there. By the
time he got there, nobody was
visible on the shore, he said.
Mr. Williamson ventured
onto the beach to look for sur-
vivors, but soon turned back.
DOM THOMAS/PRESS POOL
He remembers seeing a tour
helicopter that had been aban-
doned after the eruption a
short distance away—its rotor
blades out of shape and body
coated with thick ash.
“There was no way we
could go up toward the crater
because of the fumes and ash
saw a tour boat retreating and smoke,” he said.
from the island. At the Whakatane pier, Phil
“There was a hell of a lot of van Dusschoten, a dolphin-
injured people on board—defi- tour operator, watched the
nite signs of very bad injuries boats and helicopters bearing
and cries for help,” he said. the wounded come in.
Many passengers were badly One group of tourists he
burned, prompting the para- saw were shirtless, he recalls,
medics on Mr. Williamson’s perhaps because their clothes
boat to transfer to the tour had been covered in ash and
vessel to start treatment. acidic residue. “Your heart
By that time, the helicopter sinks,” he says.
with Dr. Smith and his rescue One person who didn’t
team was in the air. Another he- come back was a friend and
licopter was already picking up skipper at the volcano-tour
the last wounded tourists from company, Hayden Marshall-In-
the island’s shore to bring them man—the first confirmed ca-
.
to a temporary triage station at sualty of the eruption.
ly
the airfield in Whakatane. —Rachel Pannett
Rescuers weren’t sure how contributed to this article.
KOEN VAN WEEL/EPA/SHUTTERSTOCK
stand the largely English lan- arguments for the broader
guage proceedings. They burst case. They described a long
into applause when Ms. Suu history of actions by Myanmar
Kyi appeared on the screen. that, they said, showed geno-
Gambia filed the case on cidal intent—a key element in
behalf of the 57-nation Organi- proving the crime under the
zation of Islamic Cooperation, 1948 Genocide Convention.
which says its mission is to Gambia relied heavily on a
protect the interests of Mus- U.N. fact-finding report pub-
lims. The court is expected to lished last year. Its extensive
rule on the issue of provi- findings include details about
sional measures within 30 widespread destruction of vil-
days of the close of the hear- lages in Myanmar following
ings, according to Paul Re- the Rohingya exodus and the
ichler, a lawyer for Gambia in appropriation of vacated land
the case. If it orders Myanmar by authorities as further evi-
to take near-term steps, those dence of an effort to erase all
would be binding and require traces of the community.
Ms. Suu Kyi’s government to That report called for
report on its progress within Myanmar’s military figures to
four months. be prosecuted for genocide. It
Speakers for Gambia also was dismissed by Ms. Suu
provided a glimpse into their Kyi’s government.
evidence. at Britain’s Keele University re-
The IPCC said at the time searching public-order polic-
that it would give full consider- ing, said he believes the IPCC
ation to the matters addressed can play a role in resolving the
in the document. current situation only if it is
The panel said early given the powers the panel rec-
Wednesday in Hong Kong that ommends as basic require-
it had decided to formally ments, such as significantly im-
stand aside after discussions proving its ability to identify
with the IPCC failed to estab- and secure evidence from wit-
lish a process in which it could nesses inside and outside the
effectively support the study. police force.
Anthony Neoh, the former The study “must have credi-
chairman of the city’s Securi- bility to the citizens of Hong
ties and Futures Commission Kong, since it is unclear if the
who heads the IPCC, said the Chinese or Hong Kong govern-
IPCC has taken note that it ments would support the for-
doesn’t have the investigative mation of a more powerful
power under the current set- Commission of Inquiry,” Mr.
ting, which is why it has solic- Stott said. A strengthened IPCC
ited support from the city’s could be the closest the Hong
leader and the commissioner of Kong government can get to
police for the study. the kind of independent in-
Panel member Clifford Stott, quiry that many people in
a social-psychology professor Hong Kong demand, he said.
 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, December 11, 2019 | A9

WORLD NEWS

U.S. Charges a Top

Mexican Ex-Official
With Taking Bribes
BY JOSÉ DE CÓRDOBA
AND JUAN MONTES
Federal agents arrested
Mexico’s former top security
official and charged him with
receiving millions of dollars in
bribes from the Sinaloa cartel
while he was in charge of the
country’s war on drug gangs
from 2006 to 2012, U.S. offi-
cials said Tuesday.
Genaro García Luna, a for-
mer intelligence officer who
drug efforts for nearly a de-
cade, first as head of the coun-
try’s version of the Federal
Bureau of Investigation from
2001 to 2005 under President
Vicente Fox and later as public
security minister, a cabinet
post, under President Felipe
Calderón from 2006 to 2012.
Mr. García Luna was put in
charge of overall antidrug
strategy and of building up a
new federal police force that
would be honest and capable

AMILCAR ORFALI/GETTY IMAGES

worked closely with U.S. offi-
cials during his tenure, was ar-
rested in Dallas on Monday
and charged with three counts
of cocaine trafficking conspir-
acy and one count of making
false statements on a U.S. resi-
dency application last year, ac-
cording to the U.S. Depart-
ment of Justice.
of penetrating and taking
down powerful drug mafias,
including the Sinaloa cartel.
The arrest is a boost to
Mexican President Andrés Ma-
nuel López Obrador, who has
long argued that his predeces-
sors’ administrations were
hopelessly corrupt. President Alberto Fernández stands with former President Cristina Kirchner, who will serve as vice president in his Peronist government.
It is also a stain on the leg-

Argentina’s New Leader Sworn In

On at least two occasions,
the cartel personally delivered
bribe payments to Mr. García
Luna in briefcases containing
between $3 million and $5
million, said U.S. Attorney
Richard Donoghue.
In exchange, the cartel got
safe passage for its drugs, sen-
sitive law-enforcement infor-
mation about investigations
into the group and informa-
tion about rival gangs, U.S.
acy of Mr. Calderón, who an-
nounced an all-out war on car-
tels and deployed the army to
capture and kill cartel leaders.
The strategy failed to contain
violence, which rose as drug
gangs fractured into smaller
groups that fought over suc-
cession and territory. Tens of
thousands died during Mr.
Calderón’s term.
“It’s a terrible blow for
Calderón, even if his strategy
BY SANTIAGO PÉREZ
BUENOS AIRES—Alberto
Fernández was sworn in as
president of Argentina, vowing
to restore growth and redis-
tribute wealth by reversing
the austerity policies of his
pro-business predecessor,
through welfare policies in-
cluding loans and support pro-
grams for the unemployed
along with broader health and
food assistance. Lawmakers
and supporters chanted the
“Peronist march,” a partisan
anthem that declares loyalty
to the working class and re-
failed to boost growth or con-
tain inflation. Instead, they
fueled poverty and unemploy-
ment as he eliminated subsi-
dies and raised fuel, electricity
and public-transport prices.
Mr. Fernández must now
engage in debt-relief talks
with foreign creditors, includ-
and spending. Analysts say Mr.
Fernández also faces the net-
tlesome issue of governing
with a powerful vice president
who previously served as pres-
ident, Cristina Kirchner.
The two clashed over policy
when Mr. Fernández served as
cabinet chief for Mrs. Kirchner,

.
prosecutors said. was already discredited,” said Mauricio Macri. jects foreign capital. ing the International Monetary prompting him to quit in 2008.

The cartel was run by
Joaquin “El Chapo” Guzmán,
who is now serving a life sen-
tence in a U.S. prison.
Mr. García Luna’s security
consultancy firm didn’t re-
spond to requests for com-
ment.
Eduardo Guerrero, a security
analyst and former intelli-
gence official.
Mr. Calderón, who isn’t ac-
cused of wrongdoing, said on
Twitter he would await fur-
ther details but “am always in
favor of justice and the law.”
us l,
The 60-year-old veteran pol-
itician led the nationalist Per-
onist coalition to victory in Oc-
on tober’s election with promises
that the state would provide
for Argentines. In his speech
Tuesday before a raucous Con-
gress, he said his compatriots
It isn’t clear how Mr.
Fernández will pay for the
range of social programs he
promised Tuesday. With Argen-
tina saddled with more than
$140 billion in foreign debt, Mr.
Fernández confronts serious
challenges as the steward of
ly
Alberto Fernández
led the nationalist
Peronist coalition to
victory in October.
Her potent support network on
the left made his presidency
possible. She also has power in
Congress, where her son, Máx-
imo, heads the Peronist faction
in the lower house.
Mrs. Kirchner and her late
husband, former President

In the past, he has denied
allegations of corruption.
The scandal is Mexico’s big-
gest drug-related corruption
scandal since the 1997 arrest
During Mr. Calderón’s term,
his administration arrested or
al a
e
killed nearly 50 drug lords,
government data shows.
But most of the highest-
ci on
had rejected a four-year experi-
ment with market reforms un-
der Mr. Macri that started
hopefully but ended with high
inflation, indebtedness and a
one of the world’s most dys-
functional economies. Argen-
tina is on the brink of insol-
vency after years of stagnation,
hard-currency shortages and
Fund, which provided Argen-
tina with a $57 billion bailout
Néstor Kirchner, doubled gov-
ernment spending backed by a
boom in exports of soybeans,
wheat and other farm prod-
ucts to China. Their consecu-

of the country’s antidrug czar,
Gen. Jesús Gutiérrez Rebollo,
who was found guilty of taking
bribes from a cartel and sen-
tenced to 40 years in jail. He
profile arrests were from rival
organizations such as the ul-
traviolent Los Zetas drug
gang and the Beltran-Leyva
cartel, analysts say. Officials
er rs
shrinking economy.
“Those who are trapped in
poverty and marginality will
be a top priority,” Mr. Fernán-
dez said after the presidential
inflation surpassing 50%.
The departing Mr. Macri—
the first non-Peronist presi-
dent to complete his term
since the 1950s—sought to
last year, the largest on record
for the multilateral lender.
Mr. Fernández lacks a ma-
jority in Congress, and Mr.
Macri’s center-right bloc re-
tive terms, from 2003 to 2015,
were marked by divisive poli-
cies and attempts to exert po-
litical control over state insti-
tutions, from the judiciary to

died in 2013 in prison. said at the time they were fo- sash was placed over his gradually cut red tape and tains influence, posing obsta- the statistics agency.
Mr. García Luna was the cusing on the most blood- shoulder. He vowed to protect public spending, issuing debt cles for the new government’s —Silvina Frydlewsky
public face of Mexico’s anti- thirsty gangs. the poorest Argentines to cover shortfalls. His efforts plans for more state control contributed to this article.
m e

FROM PAGE ONE

m rp
co Fo
MELINA MARA/THE WASHINGTON POST/GETTY IMAGES

n-

A Chevron gas well derrick near a Pennsylvania farm.

no

Chevron’s down billions in value to com-

ply with accounting standards.
Many companies are also
markets, Mr. Wirth said. “They
have truly transformed the
market mind-set from one of

Gas Assets expected to substantially re-

duce the value of their oil and
gas reserves, figures once seen
scarcity to one of abundance.”
Russia and OPEC have been
curtailing oil production for

Take Hit as essential measures of their

Continued from Page One
Mike Wirth said in an inter-
view that the company had
performed well in a difficult
market but wanted to focus on
its most promising future
prospects, including expanded
shale oil drilling in Texas.
“We have to make the
long-term security, under sep-
arate reporting requirements
governed by the Securities and
Exchange Commission amid
uncertainty over whether the
fossil fuels can be cost-effec-
tively extracted. Chevron
might restate its reserves to
the SEC after any asset sales,
a company executive said.
“As the data gets more
compelling, they have to face
years to put a floor under
global prices and agreed last
week to further cuts of
500,000 barrels a day until the
end of March. Still, oil compa-
nies are falling out of favor
with investors amid fears that
electric vehicles and renew-
able energy, along with gov-
ernment regulations to ad-
dress a warming planet, will
constrain them. Oil-and-gas
companies now make up about

tough choices to high-grade
our portfolio and invest in the
highest-return projects in the
world we see ahead of us, and
it,” said Myron Boots, co-
founder of reservoir engineer-
ing consulting firm Buckley &
Boots LLC, noting that many
On Call
4% of the S&P 500 index,
down from roughly 10% a de-
cade ago, FactSet data show.
Chevron has scaled back its

that’s a different world than
the one that lies behind us,”
Mr. Wirth said.
Chevron’s shares closed up
less than a percentage point at
$117.90 prior to the announce-
ment. Reaction was muted in
after-hours trading.
The reappraisal by Chevron
is likely to ripple through the
industry, forcing others to reas-
sess their holdings in the face of
a global supply glut and grow-
ing investor concerns about the
long-term future of fossil fuels.
Chevron’s move follows a
$5 billion write-down by
Spain’s Repsol SA earlier this
month and an impairment of
$2.6 billion by the U.K.’s BP
PLC in October. Industry exec-
utives and analysts anticipate
that many more oil-and-gas
companies will soon write
wells have failed to live up to
expectations.
Exxon Mobil Corp. has writ-
ten down its U.S. natural gas
assets by about $2.5 billion
over the last several years.
Some analysts have said it
should further devalue its
largest shale asset, XTO En-
ergy Inc., which it bought for
more than $30 billion in 2010.
An Exxon spokesman declined
to comment on Chevron’s deci-
sion Tuesday, noting that it is
difficult to compare write-offs
across different companies.
A flood of oil and gas un-
locked by the U.S. shale boom
has led to low commodity
prices and eaten into fossil fuel
companies’ profits. The tech-
niques behind the boom, hori-
zontal drilling and hydraulic
fracturing, have upended global
With WSJ
footprint. It operates in
around 18 countries, according
to the company, down from
nearly 40 earlier this decade.
Mr. Wirth said Chevron must
be selective about its invest- Hear directly from WSJ reporters and editors
ments moving forward, focus- as they provide live analysis and insight on
ing on oil-rich regions like the
Permian Basin in West Texas what’s happening in the world today.
and New Mexico.
Chevron made a big bet on
natural gas in 2010, when it
acquired Atlas Energy Inc. for
WSJ.COM/ONCALL
$3.2 billion and assumed $1.1
billion of the Appalachian pro-
ducer’s debt. At the time, gas
prices had tumbled 21% to
about $4.21 per million British
thermal units. On Tuesday af-
ternoon, prior to Chevron’s
announcement, prices were
© 2019 Dow Jones & Company, Inc. All rights reserved. 3DJ7422
roughly $2.26 per MMBtu.
—Bradley Olson
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.
A10 | Wednesday, December 11, 2019
Abandoned
Homes Go
For a Song
Continued from Page One
16 towns in Italy, most of them
in the poorer south, are selling
abandoned houses for as low
as €1—about $1.11. The catch:
Buyers need to renovate them.
Other depopulated areas of
Italy offer other financial in-
centives. The northern region
of Emilia Romagna pays up to
€30,000 to young couples who
buy or renovate a house in
small communities in the Ap-
ennine Mountains, and gives
tax breaks to companies that
move there.
The region of Molise, which
lies east of Rome but is so off
the beaten track that Italians
joke it doesn’t really exist, re-
cently offered a stipend of
€700 a month for three years
to anyone, Italian or other-
wise, who settles in its under-
populated villages. Newcomers
must pledge to open a busi-
ness or renovate a property.
Small towns and villages in
many European countries are
under demographic pressure
as people leave for big cities
and those remaining have
fewer children. The population
of rural areas across the Euro-
pean Union, currently about
142 million, is projected to fall
by around 8 million by 2050,
according to Epson, an EU-
funded research program. Ur-
ban areas, in contrast, are
forecast to gain 24 million in-
Wanted:
Health
Service Rx
Continued from Page One
room, they basically fly them
out.” Mr. Eagle Bear said he
wasn’t speaking on behalf of
the tribe.
Jerry Dale, an owner of
Medical Air Rescue Co., said
his company often flies at least
three or four patients a week
from Rosebud to regional hos-
pitals. Each trip costs more
than $8,000, he said.
For decades, policy makers
in Washington have promised
major improvements to the
IHS, which is responsible for
providing free health care to
2.6 million Native Americans
under U.S. treaties. For many,
the IHS is their sole source of
health care.
Rosebud and some of the 23
other hospitals in the IHS sys-
tem suffer from systemic prob-
lems, including leadership
turnover, staffing shortages
and facility breakdowns. There
have been few signs of an over-
haul under Adm. Weahkee,
whose style is described as
conciliatory by people who
have worked with him.
While at Rosebud, “I
achieved what I was sent there
no
to do—to reopen the [emer-
gency department] and move
toward recertification [by reg-
ulators], which we have since
successfully accomplished,”
Adm. Weahkee said in a writ-
ten statement.
IHS said Adm. Weahkee as
acting director filled senior po-
sitions, created a quality-assur-
ance arm and won funding for
capital projects. The agency
said Rosebud remains a prior-
ity and it has worked to im-
prove the facility.
The president of the Rose-
bud Sioux Tribe said he en-
dorsed Adm. Weahkee’s nomi-
nation, citing his qualifications,
in a statement relayed by a
tribal official. The tribe is also
suing the IHS, alleging it pro-
vides inadequate care.
Adm. Weahkee’s job is a dif-
ficult one. He and his predeces-
sors have struggled to gain at-
tention in Washington. The
agency has gone without a
Senate-approved director since
2015. Many of its facilities are
in remote areas where it is dif-
ficult to recruit skilled staff.
Historically, local IHS leaders
have operated with autonomy,
making oversight from head-
quarters more difficult.
Overall, IHS spent about
$4,078 per patient each in
2017, according to a report
from the Government Account-
ability Office. That was about
one-third of what the Veterans
Health Administration and
Medicare spends per person.
Kerry Weems, a former offi-
cial at HHS, said fixing IHS
would require bringing per
capita spending closer to the
The Sicilian town of Sambuca is one of 16 in rural Italy seeking to offset population loss by flogging empty houses to renovation-minded newcomers, especially Americans.
habitants by then.
Small-town shrinkage is
particularly acute in Southern
Europe, where immigration
compensates less for locals
moving away: Migrants tend
to settle in Northern Europe
or large cities, Epson found.
In Italy, as small towns have
lost people, some have also
lost basic services, from phar-
macies to schools, rendering
their future still bleaker. Rome-
based think-tank Openpolis
says such a vicious circle of de-
population threatens more
than 4,200 towns in Italy.
In Sambuca, a jumble of ba-
roque buildings with an Arabic
quarter from the Middle Ages,
the number of residents has
fallen by roughly 30% since
Empty Beds
on
Staffing, equipment and facility shortfalls can limit overnight
stays at some IHS hospitals.
us l,
Average nightly bed occupancy at select IHS hospitals, 2018
al a
Occupied beds Unoccupied beds
e
Rosebud
ci on
South Dakota
er rs
Crow Agency
Montana
m e
m rp
Source: Centers for Medicare and Medicaid Services
rate at Medicare, along with
other changes. Neither Con-
gress nor federal health offi-
co Fo
cials have pushed for such ma-
jor changes. Everyone shares
culpability, said Mr. Weems.
President Trump nominated
Adm. Weahkee to be the IHS’s
permanent head after the first
nominee, Oklahoma insurance
broker Robert Weaver, with-
drew early last year after a
Wall Street Journal article
showed that his résumé had
misstated his experience. Mr.
Weaver disputed the Journal’s
reporting at the time and said
n-
that he was forced out.
After that, HHS officials
contacted nearly a dozen exec-
utives who had overhauled
large private-hospital systems,
said a former Trump adminis-
tration official. None were will-
ing to raise their hands for the
IHS job, the former official
said.
“We conducted a search
process, and have nominated
the best candidate,” HHS said
in a written statement. It said
Mr. Weaver had withdrawn for
personal reasons.
‘It’s very difficult’
Several Native American
groups have expressed support
for Adm. Weahkee’s nomina-
tion, saying he has done a good
job working with tribes. Adm.
Weahkee, a member of the
Zuni Tribe, has spent most of
his career at the agency and
was born at an IHS hospital in
Shiprock, N.M.
“He’s very collaborative.
He’s very thoughtful,” said
Lynn Malerba, chief of the Mo-
hegan Tribe, chairwoman of an
IHS advisory committee. “It’s
very difficult for any director
to fulfill the treaty obligations
of the Indian Health Service
given what the structural and
budget challenges are.”
Earlier this year, an investi-
gation by the Journal and the
PBS series Frontline showed
IHS officials had long sus-
pected that a pediatrician,
Stanley Patrick Weber, was a
pedophile. Mr. Weber had been
transferred from one facility to
another after coming under in-
vestigation. He has been con-
victed of abusing six boys in
two states, and is appealing.
In the wake of that report,
FROM PAGE ONE
the early 1950s to 5,800. The
decline has been especially
rapid in the last 15 years.
Many people from small
towns doubt that auctioning
off empty houses can solve the
wider problem, but praise
such initiatives for at least at-
tracting attention. “It won’t be
the solution, but something at
least is moving,” said Massimo
Castelli, mayor of the northern
Italian village of Cerignale.
Sambuca’s auctioned
houses sold for a few thou-
sand euros on average, said
Mr. Ciaccio, the mayor. The
highest bid was €25,000, paid
by a woman from Virginia.
The first round of auctions
attracted so many buyers that
Sambuca residents sold roughly
Red Lake
Minnesota
Parker
Arizona
Adm. Weahkee said problem
employees no longer would be
moved around. He overhauled
abuse-reporting policies and
required all workers to com-
plete new training by Septem-
ber. It isn’t clear how much ef-
fect his efforts have had on the
front lines.
In October, an agency hospi-
tal on the Standing Rock reser-
vation in North Dakota failed a
regulatory inspection after a
cancer patient repeatedly ac-
cused a nurse of physically
abusing her, including by
punching her in the back. A
video showed the nurse, Maria
Wilkie, entered the patient’s
room alone while a second
nurse paced outside, according
to the inspection report.
Ms. Wilkie’s supervisor, the
hospital’s nursing director, told
inspectors she “had no idea
what to do” about an allegation
of patient abuse by staff, had
never received any training on
the topic and that the hospital
had no policy on it, the report
said.
Ms. Wilkie denied abusing
the patient and was suspended.
She didn’t respond to requests
for comment. She is now being
considered for a nursing posi-
tion at an IHS facility serving
the Zuni reservation in New
Mexico, people familiar with
the matter said.
IHS said it is trying to do
everything it can to protect pa-
tients and that its message is
being heard in its facilities
around the country. Training
and policies at Standing Rock
“may not have been specific
enough,” it added.
The Rosebud hospital has
changed CEOs at least six
times since Adm. Weahkee de-
parted in October 2016, includ-
ing this Thanksgiving week.
Many of them worked at Rose-
bud on only an interim basis.
The agency has struggled to
find people willing to accept
the job full time.
Rosebud’s chief quality offi-
cer temporarily lost her nurs-
ing license in 2001 for drinking
on the job at a prison where
she then worked. Last month,
just before an important qual-
ity-assurance inspection at
Rosebud, the nurse, Carin
Greenhagen, was charged with
driving under the influence of
alcohol or drugs in Arapahoe
* * THE WALL STREET JOURNAL.
100 additional houses privately, you can feel when you live in
Mr. Ciaccio said, most of them big cities,” said Mr. Duong,
in good condition. who lived in New York City for
Robert Duong, a 39-year-old many years. “I wanted to be
former actuary from St. Louis, part of a community. This is
Mo., bought one of the pri- what I needed.”
vately offered houses. When Mr. Duong said Sambuca’s
he first visited Sambuca, he residents gave him tours and
was afraid the locals wouldn’t advice on everything from
accept Americans like him buying a car to how to get
who don’t speak Italian. health insurance. Many invited
“It was quite the opposite. him over for drinks or dinner.
People were incredibly nice Massoud Ahmadi, an eco-
and generous with their time,” nomic consultant from near
Mr. Duong said. He is renovat- Washington, snapped up an
ing his house, for which he auctioned three-story house,
paid €30,000, and hopes to topped by a terrace and lo-
start spending long periods in cated in the center of the
Sambuca so he can gain Italian town, for €10,150. He is learn-
.
residency and perhaps work as ing Italian and plans to spend
ly
an English teacher. several months a year working
“It’s incredible how lonely remotely in Sambuca. Mr. Ah-
not considered emergencies. In
fiscal 2018, the agency esti-
mated that its outside-referral
program denied or deferred an
estimated $677 million in care,
or 163,058 services.
Adm. Weahkee was sent in
MIKE SHUM/FRONTLINE/THE WALL STREET JOURNAL
to fix things in May 2016. At
that point, Rosebud had
flunked a regulatory inspection
and its emergency room had
closed and the Rosebud Sioux
Tribe had filed its suit arguing
its health care was inadequate,
a claim the government dis-
puted.
List of goals
At Rosebud, Adm. Weah-
Rear Adm. Weahkee struggled kee’s five-man leadership team
to fix facility in Rosebud, S.D. worked 12-hour days and lived
in a government housing unit,
County, Colo., police records said Adam Archuleta, one of
show. She missed the inspec- the team members.
tion, which Rosebud passed. A few weeks after Adm.
Ms. Greenhagen, who is Weahkee arrived, a nurse anes-
scheduled to appear in court thetist died. That forced the
later this week, and the agency agency to close the operating
didn’t respond to inquiries rooms and stop delivering ba-
about those events. bies, saying it aimed to “re-
“We are making every effort sume these services as quickly
to make staffing stability a pri- as possible.”
ority” at Rosebud, the IHS said. Adm. Weahkee made a one-
The agency said funding nurs- page list of goals dated June
ing positions and recruiting in 22, 2016, including restoring
rural South Dakota remains dif- emergency operations, regain-
ficult. ing the trust of the Rosebud
In May, Rosebud had a 40% tribe and reopening the operat-
vacancy rate for nurses. Last ing rooms. That July, he
year, it had fewer than four pa- checked off a big one: The
tients on an average night at emergency department began
the 35-bed hospital. Nine other taking patients again, using
IHS hospitals had fewer than doctors from a staffing agency.
10% of their beds filled on the The operating room de-
average night in 2018, Medi- feated him. Shannon Hopkins,
care data shows. Nationwide, who was deputy CEO at Rose-
rural hospitals’ average occu- bud in 2016, said she repeat-
pancy rates are about 40%, ac- edly brought the problems
cording to the American Hospi- there to Adm. Weahkee’s atten-
tal Directory. tion. “He kept saying [the op-
Scarce funds also mean that erating room] was a priority,
when IHS patients are referred but there was no action in
to outside facilities for medical place to follow that up,” she
care, the agency can’t always said.
pay for it, especially in cases The agency said its staff was
working toward reopening the
Help Wanted operating room.
At one point, agency offi-
Staffing shortages have
cials realized they didn’t have
plagued Indian Health Service
proper climate controls in the
hospitals, including one in
operating room, which could
Rosebud, S.D.
increase infection risks, so
Vacancies at Rosebud hospital workers attached monitoring
sensors to one operating room
Vacant position
wall with squares of surgical
All nurses tape, according to a photo
viewed by the Journal, staff
notes and a July 2016 internal
quality audit.
The next week, the team fig-
ured out that the tape could it-
self pose a sanitation risk.
“[W]e need something more
permanent,” an official wrote
Medical officer in an August 2016 work order.
Later, officials realized they
needed an estimated $1.2 mil-
lion upgrade to the hospital’s
Nurse practitioner dated HVAC system, a report
by an outside monitor shows.
The agency disputed this ac-
Physician assistant count, but didn’t say which as-
pects were inaccurate. The IHS
said it is replacing HVAC
Midwife equipment throughout Rose-
bud.
Nurse anesthetist That September, with the
climate issues unresolved,
Rosebud hired a general sur-
Note: As of May 2019 geon. Adm. Weahkee’s tempo-
Source: Indian Health Service rary stint in Rosebud ended the
FRANCESCO BELLINA FOR THE WALL STREET JOURNAL
madi has hired a local archi-
tect, Domenico Carì, to reno-
vate the place at a projected
cost of €50,000 to €60,000.
“This has been a revolution
for Sambuca,” Mr. Carì said.
Another client of Mr. Carì is
actress Lorraine Bracco, best
known for her psychiatrist
role in “The Sopranos,” who
also bought a house at auction
in Sambuca. Discovery Chan-
nel has been filming a show
that follows Ms. Bracco’s reno-
vation of her house.
Mr. Carì sees the new arriv-
als bringing more than just
economic value. “When new-
comers arrive here who mar-
vel at seeing a flock of sheep
or a tiny chapel, it touches
your heart,” he said.
next month. The agency paid at
least $420,000 over the next
year for surgeons who had no
place to operate.
“They got paid to sit around
a lot of the day and not do any-
thing,” said Ruth Thomas, a
former Rosebud physician as-
sistant.
The IHS said the surgeons
saved money by screening pa-
tients before sending them for
agency-paid treatment else-
where.
In mid-2017, Adm. Weahkee
moved from Arizona to IHS
headquarters in the Washing-
ton area to become the
agency’s acting director.
Back at Rosebud, the latest
snag in the operating suite
came when it tried to install
cabinets, a project that dragged
on for more than six months.
“ ‘Oh my God,’ I would think.
‘You’re IHS. You’ve got the full
weight of the federal govern-
ment behind you. You can’t get
that a little sooner?’ ” said
Kevin Coffey, the CEO of Win-
ner Regional Healthcare Cen-
ter, a nearby private hospital
who visited Rosebud during
the construction.
By August 2017, more than a
year after the closure of the
operating rooms, new cabinets
had been installed, according
to people with knowledge of
the matter. Then a surgical
technician realized a new sink
was too small to fit an instru-
ment tray for cleaning, accord-
ing to documents and people
with knowledge of the matter.
Construction work had to
resume. Staffers made plans to
do the first colonoscopy on
Oct. 18, 2017, according to in-
ternal planning documents.
It never happened. The op-
erating suite still wasn’t ready.
The agency said it ad-
dressed the sink issue quickly
and disputed it had immediate
plans to reopen the operating
suite at that time.
The U.S. hospital regulator
returned in July 2018 to find
the emergency room had again
run afoul of federal rules.
Among other errors, an intoxi-
cated 12-year-old girl had at-
tempted suicide while left un-
attended by hospital staff
despite a previous effort to
take her own life.
The agency made little ef-
fort in 2018 to reopen the op-
erating suite, according to peo-
ple with knowledge of the
matter.
“The priority has been en-
suring patient safety and es-
tablishing a sustainable foun-
dation before” reopening the
operating room, the IHS said.
By then, hundreds of thou-
sands of dollars of equipment
had been purchased for the
suite, including a $230,000 en-
doscopy tower for which Adm.
Weahkee had helped find fund-
ing in 2016, according to the
goal list.
At the time, staff expected
the operating room to open
soon and wanted to prepare,
the IHS said.
Current and former staff
members say the endoscopy
tower has never been used.
 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. * * NY Wednesday, December 11, 2019 | A10A

GREATER NEW YORK

Slump Claims Times Square Building
International lenders now in trouble. At least five
New York City retail proper-
have moved to ties are delinquent on their
foreclose on a 42-story mortgages, according to re-
search firm Trepp LLC. That
hotel and retail tower list includes only buildings
whose loans were packaged
BY KONRAD PUTZIER into bonds; an additional 19
AND ESTHER FUNG buildings are on the watch list
for potential problems.
Manhattan’s three-year Prominent retail investor Jo-
downturn in retail real estate seph Sitt is among the New York
might have claimed its biggest City property owners feeling the
ALEXANDER COHN/THE WALL STREET JOURNAL
Hershey’s store, a 452-room
Marriott Edition hotel and an
18,000-square-foot LED sign.
In April 2018, Maefield
bought out its partners in the
project with the help of more
than $1.5 billion in debt, court
and bond filings show. At the
time, an appraiser estimated
that the building would be
worth a combined $2.385 bil-
lion when completed, accord-
ing to the documents.

victim yet. heat. He faces foreclosure on The funding includes a

A group of international two smaller Manhattan retail $650 million leasehold mort-
lenders filed on Monday to properties, bond records show. gage from French investment
foreclose on the company con- Mark Siffin, Maefield’s chief bank Natixis, which it syndi-
trolling 20 Times Square, a executive, built the tower be- cated to other lenders.
42-story hotel and retail tower tween 2015 and 2019 in part- Brokers said the building had
once valued at $2.4 billion. nership with a group of inves- limited street frontage which
The group, led by a unit of tors, launching it at a time made it tough to attract pass-
France’s Natixis SA bank, said when the retail real-estate ersby, and the high rents made
that 90% of the property’s re- market was far stronger. the operations unsustainable.
tail space has been sitting va- In late 2017, the National In the foreclosure filing, the
cant, according to the filing. Football League and Cirque du lenders said Maefield told
The lenders also said in the The troubles at 20 Times Square are the latest sign that online shopping is hurting more landlords. Soleil opened a 40,000-square- them it was “negotiating to fi-
filing that Maefield Develop- foot space there dubbed NFL nalize and execute” a new
ment, the firm behind the rowers and lenders were able to periling a growing number of major shopping areas in the Experience Times Square. The lease for the space, but as of
project, has failed to put up work out their differences, landlords at some of the city’s third quarter: 31% of all retail tenants agreed to pay an an- Sept. 9 no lease was signed,
enough money to complete it. while in others the lender ended most expensive locations. space was vacant or available nual rent of $8.25 million, bond triggering the default.
Representatives at Maefield up taking over the property. Times Square, after avoiding for lease. That is up from 22% filings show. The NFL Experi- The lenders also allege that
and Natixis declined to com- The troubles at 20 Times some of the worst of the retail a year earlier, according to bro- ence featured a 4-D cinema and Maefield failed to clear me-
ment, and it couldn’t be deter- Square are the latest sign that pain for years, has been partic- kerage Cushman & Wakefield. interactive displays. The four- chanics’ liens, and didn’t put
mined what will happen next. the rise of online shopping and ularly hard hit of late. The dis- Many investors who bought story store closed after it failed enough money into a reserve
Foreclosures can take time. In a continuing correction after trict had the highest retail retail properties betting that to draw enough customers. account to cover construction
some high-profile cases, bor- retail rents rose too fast is im- availability rate of the city’s rents would keep climbing are The tower also includes a expenses.

Rapper Cardi B All Dolled Up for Queens Court Hearing

More Firms Use Law

.
To Avoid Tax Cap

ly
on BY JIMMY VIELKIND said the SALT cap has pinched
people in New York City and
More businesses are taking its high-tax suburbs.
advantage of a New York law New York was one of four
that lets their employees avoid states that sued to overturn
us l,

a federal cap on the amount of the cap, arguing that it was

state and local taxes they can politically motivated. A federal
al a
e
deduct from their federal re- judge dismissed the suit in
turns. September. Democrats in the
A state official said 312 House Committee on Ways
ci on

businesses have opted into the
program for 2020, up from
262 that participated in 2019,
the first year of its existence.
This still represents less than
er rs
and Means plan to vote this
week on a measure that would
repeal the SALT cap in 2020
and 2021, but the bill is un-
likely to become law.

0.1% of New York employers The Internal Revenue Ser-

and an unknown number of vice issued regulations in June
employees. that nixed the donation-and-
New York and other states credit schemes adopted in
m e

also set up charitable funds, New York and New Jersey. The
where taxpayers could receive regulations didn’t address
a state tax credit for part of New York’s new payroll tax.
m rp

what they donate, and then Under the program, em-

deduct the donation from
their federal income taxes.
Both vehicles were enacted
in 2018 in response to the
co Fo
ployers elect to pay a fixed
percentage of employee wages
above $40,000 as tax, and
likely reduce or hold down

2017 federal tax overhaul. Gov. compensation by the same

MARK LENNIHAN/ASSOCIATED PRESS

Andrew Cuomo decried that amount. Employees receive a

the overhaul capped at
$10,000 the amount of state
and local taxes (SALT) a tax-
payer could deduct from their
federal income.
A majority of New Yorkers
are paying less in federal taxes
as a result of the law, which
MAKING A SPLASH: Cardi B left court Tuesday after a hearing in her 2018 attempted-assault case. The Grammy winner has pleaded reduced marginal rates and in-
not guilty to arguing with a bartender at Angels Strip Club and sparking a fracas that injured the woman and another employee. creased the minimum standard
deduction.
Mr. Cuomo, a Democrat,
n-
credit for the amount of the
payroll levy against their state
income taxes, and the entirety
of the payroll tax is exempt
from federal income tax.
Freeman Klopott, a spokes-
man for Mr. Cuomo’s Budget
Division, said the number of
participants “shows the busi-
ness community is taking this
attack seriously and choosing
to protect employees.”

NYC Councilmen Raise Staten Island Secession Once Again

no

BY KATIE HONAN transportation—aren’t being
addressed by City Hall, Mr.
New York City’s “forgotten Borelli noted.
borough” would take a step to- “Staten Islanders complain
ward becoming its own city to me very accurately and pre-
under a proposed bill that is cisely about problems they
reigniting debate over Staten face, and unfortunately, even
Island’s possible secession. as a city council member I
Republican city council don’t have the authority and
members Joseph Borelli and power to actually solve some
Steven Matteo introduced a of those problems,” he said. “If
bill Tuesday to study the pos- we secede, we would have the
sibility of the county seceding power to solve some of those
from the city, a plan that was problems.”
approved by island voters in With fewer than 500,000
1993 but later blocked by the residents, Staten Island is the
state. least-populous borough and
Staten Island has limited has the fewest representatives
say in the city and doesn’t get on the City Council.
equal services, the council Councilwoman Debi Rose, a
members contend. Residents Democrat who represents parts
say their biggest issues—such of Staten Island, opposes the
as high property taxes and bill, said her spokesman, who
declined to comment further.
The road to the creation of
the city of Staten Island is
long and filled with chal-
lenges, Mr. Borelli admitted.
The bill would authorize a
committee to figure out how
the borough could break away
from the city and be finan-
cially stable. If the committee
can come up with a plan, then
council members hope it
would be brought before
Staten Island voters, which is
what happened more than 25
years ago.
In 1993, Staten Island voters
overwhelmingly supported a
secession plan as 65% backed a
nonbinding referendum to se-
cede. The vote approved a new
city charter that would make
Staten Island an independent
city, but it was blocked in the
state Assembly.
Mayor Bill de Blasio, a
Democrat, said last month he
didn’t agree with the plan.
“We’ve been one city for a
long time,” he said. “I think
Staten Island is part of us, and
we’re part of Staten Island. We
should all stay together.”
Speaker Corey Johnson
agreed, saying it would be a
“travesty” if the borough left.
“Staten Island is, I think, an
amazing, wonderful part of
New York City,” he said. “Ulti-
mately, we’re a city where we
respect each other and coexist
peacefully.”
There have been other at-
tempts for various parts of the
city to secede since New York
City unified in 1898. An as-
semblyman from the Rock-
away peninsula in Queens in-
troduced in 1915 a secession
bill that passed in the state
Assembly and Senate. The
mayor at the time vetoed the
City council
member
Joseph Borelli
wants to study
the possibility
of the county
leaving the city.
plan to create Rockaway City.
In the early 1990s, follow-
ing Staten Island’s lead, three
assembly members from
Queens introduced legislation
to leave New York City. Their
reasons were similar to those
voiced in Staten Island: Their
borough was getting short-
changed and wanted to go it
alone.
Mr. Borelli said his plan
isn’t about any political dis-
agreement with the adminis-
tration, although the council-
man is a vocal critic of Mr. de
Blasio.
“It’s more about structural
reformation of Staten Island,”
he said. Even if the island se-
ceded, residents—himself in-
cluded—likely would still take
issue with decisions made by
their government.
“Rest assured, in the city of
Staten Island I will be equally
pissed about some bill that
somebody passes in 10 years,”
Mr. Borelli said.
 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, December 11, 2019
Ann Votaw moved to New York from Fort Wayne, Ind., in 2003 to be a dancer. She got her first Mrs. Claus gig in December 2017 and says she hopes to see more Mrs. Claus performers in New York City.
METRO MONEY | By Anne Kadet
‘Ring Your Bells, Sisters!’ Mrs. Claus Says
Donning a
silver wig and
jingle bracelet
in her bed-
room one eve-
ning last
week, Ann Votaw confessed
to feeling nervous. She was
about to make her 2019 de-
but as Mrs. Claus in her new,
custom-made Edwardian
skirt suit. “This is a big mo-
ment,” she said.
She needn’t have worried.
While she waited for the A
train in upper Manhattan, a
young man stopped to pay
her a compliment.
“That’s a dope outfit,” he
remarked.
“Are you ready for Christ-
mas?” she asked, introducing
herself as Mrs. Claus.
The man said he is plan-
ning to see his family, and
asked where she was from.
“Anyone nice like you is not
from New York!” he said.
Ms. Votaw is from Fort
Wayne, Ind. She moved here
in 2003 to be a dancer. The
45-year-old now works as a
programming director at a
senior center. She got her
first Mrs. Claus gig in De-
cember 2017, volunteering at
her local community garden,
where she sang and read to
the children.
“I had no idea what I was
no
ART DECO
on
us l,
al a
e
ci on
er rs
m e
m rp
doing,” recalls Ms. Votaw. “I
was wearing an Amazon wig
and I ho-ho-ho’d too loud. I
was kind of scary.”
co Fo
B
ut she was hooked.
Last year, she attended
a three-day workshop
at a Santa Claus school in
Michigan that featured a
Mrs. Claus breakout session
and started honing her skills,
which include puppetry and
tap-dancing with a candy
cane.
“Twice a week, I’d dress up
like Mrs. Claus and go on the
subway and talk to people,
n-
just to practice,” she says.
NY
GREATER NEW YORK
city where she performed
with a Santa Claus partner.
“I really don’t see a lot of
demand for Mrs. Claus in New
York,” says Ms. Votaw, whose
rates start at $100 an hour.
Joe Harkins, founder and
CEO of Real Beard Santas of
America, a Jersey City, N.J.-
based agency offering a
dozen Santa performers for
holiday gatherings in the
New York area, confirmed
her experience. “It’s among
the many things that are dif-
ferent in New York City from
the rest of the country,” he
notes.
Outside New York City,
many clients want Santa to
appear with Mrs. Claus on
She continued these ef- his arm, Mr. Harkins says. In
forts last week. As the A his six years booking Santas
train sped downtown, a in the city, however, he’s got-
women with pink hair re- ten just two Mrs. Claus re-
quested a gift: “All I want for quests.
Christmas is my rent paid.” When she does get
A breakdancer stopped to booked, Mrs. Claus typically
say hello. “I’ll have to tell my earns far less than Santa—
brothers, ‘Yo! I met Mrs. more along the lines of what
Claus!’ ” he said. an elf is paid, says Brian
While she is a hit on the Harrell, CEO of Minneapolis-
train, Ms. Votaw has landed based All Time Favorites Inc.
few paying gigs. Despite which offers a roster of 600
posting on talent sites, meet- “premium” Santa performers
ing with a Santa agent and for holiday events across the
visiting businesses to offer U.S. such as parades and pri-
her services, she got just two vate and corporate gather-
jobs last season—both at ings.
holiday parties outside the Top “real bearded” Santas
Westf ield World Trad e C enter
New York
Mad ison Avenue
New York
S MY T H S O N . C O M
* * THE WALL STREET JOURNAL.
.
ly
command $200 to $300 an
hour, Mr. Harrell says. He de-
mands similar pay for Mrs.
Claus because she must be
equally knowledgeable and
engaging, but that’s not the
industry standard. “In gen-
eral, nationwide, they are
paid about $100 less,” he
says.
The least-requested tal-
ent: a solo Mrs. Claus.
Maura McMahon, a 49-
year-old academic adviser
who typically earns $50 to
$100 an hour to appear as
Mrs. Claus in New York’s
Hudson Valley area, says
there is plenty of demand for
her services as a Santa side-
kick. But just two event
planners have booked her to
appear alone as “Aurora
Claus, First of Her Name,
Sovereign of the North,
Mother of Flying Reindeer,
Keeper of Promises.”
“It’s not for everyone,”
she says.
Ms. Votaw, meanwhile, is
hoping for more gigs this
season beyond the weekends
she’ll be appearing this
month with a Santa at an
upstate New York theme
park.
So far, after all, she has
invested more than $500 in
her suit and accessories, not
to mention $1,000 for Santa-
GREATER NEW YORK
NEW YORK CITY
Lawmakers Approve
‘Bird-Friendly’ Glass
New York’s City Council voted
43-3 on Tuesday to mandate “bird-
friendly” glass in new buildings in
hopes of cutting down on the tens
of thousands of birds that die by
flying into buildings annually.
The bill, which will take effect
one year after it becomes law, will
require the first 75 feet of new
buildings and those undergoing
major renovations to be clad in
materials that are visible to birds.
New York City will be the
largest U.S. city to adopt such
legislation, which is similar to
laws in several California cities.
Conservationists estimate
that 90,000 to 230,000 birds
die every year flying into New
York City’s buildings.
A spokeswoman for Mayor
Bill de Blasio said he supports
the bird-friendly glass legislation.
—Associated Press
MANHATTAN
Loophole Limited
Helicopter Scrutiny
The helicopter company
whose doors-off flight crashed in
the East River in March 2018, kill-
ing all five passengers, exploited
a regulatory loophole to avoid
stricter safety requirements, fed-
eral investigators said Tuesday.
FlyNYON operated under the
government’s least stringent stan-
dards “to the detriment of their
customer’s safety” because it de-
KEVIN HAGEN FOR THE WALL STREET JOURNAL (2)
school travel and tuition,
$200 for liability coverage,
$200 for a website, $25 for a
background check and
$32.50 for membership in
the International Brother-
hood of Real Bearded Santas.
Her total earnings so far:
roughly $500.
B
ut she enjoys herself.
Upon arriving at Man-
hattan’s Columbus Cir-
cle on the subway, she chat-
ted with a chicken-and-
waffle vendor, danced with a
man watching a Winter’s Eve
salsa performance, and in-
troduced herself as Mrs.
Claus to a couple of beat
cops.
“You look good for your
age!” one officer said.
“He wants to be Mr.
Claus,” laughed his sidekick.
And she has high hopes
for Mrs. Claus.
“Some people think in the
next five years, she’s going
to explode,” Ms. Votaw says.
Her fondest wish?
To see more Mrs. Claus
performers working in New
York City.
“I don’t want to be the
only Mrs. Claus in town,” she
says. “That is pathetic. Ring
your bells, sisters!”
anne.kadet@wsj.com
scribed the purpose of its flights
as photography, not sightseeing,
said National Transportation
Safety Board Chairman Robert
Sumwalt.
A tether meant to keep a pas-
senger from falling out got caught
on a fuel shut-off switch, stopping
the engine. The NTSB put most
blame for the deaths on Fly-
NYON and the hard-to-escape
harness system that it installed.
FlyNYON said “we have made
changes to our operations to
help ensure an accident like this
never happens again.”
—Associated Press
NEW JERSEY
NJ Transit, Amtrak
Work on New Yard
NJ Transit and Amtrak have
started working on a new rail
yard in New Jersey to provide a
safe place to store trains along
the Northeast Corridor during
severe weather.
The expansion of County
Yard and the Delco Lead Storage
and Inspection Facility Project
along the New Brunswick and
North Brunswick border will pro-
vide storage capacity for 444
vehicles.
The project comes after Hur-
ricane Irene in 2011 and super-
storm Sandy in 2012 flooded the
Hoboken Yard and Terminal and
the Meadows Maintenance Com-
plex, damaging equipment.
The project also includes an
inspection facility for light main-
tenance of cars and equipment.
—Associated Press
 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.
FROM TOP: ILLUSTRATION BY EGLE PLYTNIKAITE; JOAN SCANLAN
How a Political Spat on
Facebook Ruptured a Family
The Laurendines and Scanlans haven’t celebrated the holidays together since before 2016
BY JULIE JARGON
M
embers of the Lau-
rendine-Scanlan
family of suburban
New Orleans always
held differing politi-
cal views. Some are liberal and
others are conservative. Like many
families, they didn’t talk politics
during gatherings. Then the 2016
presidential election came and a
flame war erupted among some of
them on Facebook.
Aunts, uncles and cousins who
once celebrated Thanksgiving and
Christmas together haven’t done
so since 2015. Neither side can re-
member exactly what post started
it all—they couldn’t find the old
posts and think they deleted them.
But both sides recall that Lisa Lau-
rendine, a 60-year-old registered
nurse in Metairie, had made her
support for Donald Trump known
when she shared a post from a
conservative account she followed,
which offended her sister-in-law,
Joan Scanlan, 71, a staunch Hillary
Clinton supporter who lives about
35 miles away in Slidell.
It was a comment Lisa posted
the day after the election that re-
ally set Joan off, resulting in a
rapid-fire Facebook exchange that
left both feeling hurt.
The family rift that followed un-
no
BY NEIL SHAH
WHY DID RIHANNA and Calvin
Harris’s “We Found Love” top the
charts for 10 weeks? Partly be-
cause of the song’s unconventional
structure, say podcasters Nate
Sloan and Charlie Harding. The
two examine “We Found Love”—
and more than a dozen other 21st-
century hits—in their book,
“Switched on Pop,” which comes
out Friday.
The volume borrows its title
from the podcast the two 33-year-
old friends began five years ago
about the subtle techniques shap-
ing today’s Top 40 hits. Mr. Sloan
is a University of Southern Cali-
fornia musicologist and Mr. Hard-
ing is a songwriter and musician
who plays the guitar, drums and
keyboards, as well as other instru-
ments. Their podcast and book are
filled with sophisticated but acces-
sible discussions of pop hits from
the 2000s and 2010s, from the
catchy hook of Ariana Grande’s
“Break Free” to Drake’s use of
simple rhymes in “God’s Plan.”
In addition to offering a theory-
driven take on what the authors
call “the bubbliest of bubblegum
pop,” the “Switched on Pop” book
provides a toolkit for appreciating
popular music. The authors delve
into musical building blocks like
melody, rhyme and sampling.
Messrs. Sloan and Harding
spoke with the Journal about how
streaming and hip-hop are trans-
forming pop music. An edited
transcript:
You already have a podcast. Why a
book?
Mr. Harding: Listeners were say-
ing, “I learned a lot from the
LIFE&ARTS
FAMILY & TECH | JULIE JARGON
on
us l,
al a
e
ci on
er rs
Lisa Laurendine, left, and Joan Scanlan got into a political feud on Facebook.
m e
derscores the role social media has
played in political divisiveness and
m rp
the ugliness that can occur when
otherwise civil people get behind a
keyboard. According to a 2016 Pew
Research Center study, 40% of so-
cial media users strongly agree
co Fo
with the idea that people say
things about politics on such plat-
forms that they would never say in
person. And roughly half the re-
spondents said they feel political
conversations on social media are
angrier and less respectful than in
other areas of life.
There’s no telling how many re-
lationships have become strained
as a result of political arguments
on social platforms, but stories
about such disagreements are
plentiful. I’ve witnessed several in
n-
Finding Pop Music’s Secret Sauce
show, but I want a compre-
hensive guide to how to
listen more thoughtfully.”
That knowledge sits in mu-
sic-theory textbooks. So
we saw an opportunity.
Mr. Sloan: When we’re
doing the podcast, we’re
responding quickly to
what’s happening in the
fast-changing world of
popular music, which is a
great exercise. Forcing
yourself to listen to pop
makes you confront your
own calcifying biases. But
the book allows us to think
about the things we’ve
learned and put them in
historical context.
There’s surprisingly little
discussion of actual music
in the music media. Are you
guys an alternative?
Mr. Sloan: People tend to
focus on the lyrics of songs
and the artist’s personal
life. Adding music to that
discussion gives even more
depth and nuance to how
you can think about pop’s Nate Sloan, left, and Charlie Harding analyze hit
role in our culture. There
are probably people who think
Taylor Swift could release any-
thing and it would be a hit, be-
cause of her celebrity. We’d say
no. These songs are popular for a
reason. You may not like that rea-
son, but there is a reason.
Older listeners often say music
isn’t as good as it was. What’s
your response?
my own Facebook feed.
The Laurendine-Scanlan feud
has been particularly long-run-
ning. And with the 2020 election
nearing, it isn’t clear if it will ever
end, despite each side’s wishes to
put it behind them.
“The last time I saw my dad’s en-
tire side of the family was in 2015—
multiple aunts and probably 20-
some cousins,” said Travis
Laurendine, Lisa’s son, who wishes
they could reconcile. “There have
been no real efforts at reconciliation
between my mom and aunt. Hope-
fully I can start to bridge the gap.”
Joan’s youngest daughter, An-
gele, who had been born with ce-
rebral palsy and later died from
leukemia, was an advocate for peo-
ple with disabilities. Angele had al-
songs.
Mr. Sloan: Pop music reflects the
time in which it is made and may
not be as relevant to you as you
age. But at the same time, pop is
changing. One thing we track is
how timbre [the quality that lets
us distinguish different artists or
instruments] and tone are becom-
ing such important elements of
pop. Things that might have been
privileged in the past—complex
Wednesday, December 11, 2019 | A11
.
ly
ways been close to Joan’s brother
and his wife, Lisa. And so Joan
couldn’t believe it when her sister-
in-law showed support on Face-
book for a candidate who had
mocked a reporter with a disabil-
ity during a campaign speech. The
fact that Lisa didn’t disavow Mr.
Trump for that, she said, felt like
“a stab in the heart.”
Lisa said she was hurt that Joan
turned her support for Mr. Trump
into something personal. The day
after he was elected, Joan said she
wrote on Facebook that she was
afraid for the country. She said
that Lisa typed this reply: “Don’t
be a sore loser.”
Lisa said she doesn’t recall writ-
ing those exact words but rather
something along the lines of,
“Can’t you just give this guy a
chance? Maybe it won’t be as bad
as you think it will be.”
Either way, both agree that is
when things got ugly. “She comes
back with this firestorm, saying
what a terrible person I was and
brought up the episode of Trump
picking on the reporter with the
disability and how could I support
him—didn’t I love my niece?” Lisa
said. “I was shocked. I loved my
niece very much. I typed some-
thing like, ‘How dare you say that
to me?’ ”
“I ripped her to shreds,” said
harmonies, lyrical creativ-
ity, guitar solos—aren’t as
privileged now. That can
be disorienting, but it
doesn’t mean music is
bad. The hope is, when
you do have to listen to,
say, Skrillex, you can at
least say, “I don’t like this,
but I kind of understand
why someone would.”
Mr. Harding: It’s OK to
like the things you like,
but I also feel strongly
that it’s not OK to think
other kinds of music are
outright bad. By expand-
ing your palette of hear-
ing, you can be more in-
quisitive.
Are older fans looking for
things that are no longer
there and then ignoring
the innovation? Music, over
time, becomes like a for-
eign language.
Mr. Sloan: I agree. It’s
hard to listen to some-
thing that doesn’t follow
the musical criteria we’ve
established. But new mu-
sic is complex in different
ways.
Mr. Harding: Part of Drake’s bril-
liance, for example, is he is able to
say something that sounds utterly
familiar—as if you’ve heard it a
thousand times—and yet no one
has quite put those words to-
gether in that way.
Mr. Sloan: It’s a gift, being able
to write those catchy nursery
rhymes. The way Drake uses
Joan, a clinical social worker. “I
just went into complete attack
mode. It was awful. It didn’t oc-
cur to me, ‘What are you going to
do when you see them at Christ-
mas?’ ”
When the exchange was over,
Lisa unfriended Joan on Facebook.
The night of the argument, Tra-
vis recalls his mother telling him
they wouldn’t be going to his
aunt’s house for Thanksgiving. “It
really hit me in the gut. How is it
that this has come between my
family and I’m never going to see
my cousins again?” he said. “As
families get older you see them
less and less, and Thanksgiving and
Christmas are the only guaranteed
times you see each other.”
Travis, a 36-year-old who votes
Democratic and is politically out-
spoken, has participated in debates
on Facebook with friends and other
relatives. But he always felt there
was an understanding that the in-
ternet has its own rules of civility,
often different than those people
follow in real life.
When Facebook in late 2017 de-
veloped a tool that allowed people
to check whether they followed ac-
counts linked to a Russian-backed
propaganda group, Travis used it
to look into his mother’s Facebook
account and discovered she was
following five such accounts. He
suspects the offending post she
shared had come from one of them.
“When I turned off those ac-
counts and many others I thought
were crap, she was seeing so much
less inflammatory stuff on her
page,” Travis said.
Facebook didn’t respond to re-
quests for comment. The company
last month said it is taking several
steps to prevent the spread of mis-
information and to eliminate for-
eign interference on its platform
by disclosing the organizations and
countries behind Facebook pages,
labeling media outlets that are un-
der the editorial control of their
government and labeling content
that has been rated false by a
third-party fact-checker.
Lisa said she voted for Mr.
Trump only because she disliked
Mrs. Clinton more. “It’s sad how
this has broken up our family.”
Lisa and Joan have made a cur-
sory attempt at detente. Last De-
cember, Joan’s children invited Lisa
to Joan’s surprise party. The two
hugged, and both Joan and her
husband apologized to Lisa, who
suggested they get together at
Christmas, but they never did.
Both said the episode hurt them
so much that it is hard to move
past it. Joan said she is consider-
ing inviting Lisa and her family
over for Christmas this year.
Whether or not she does, Travis
said he plans to go to his aunt’s
house on Christmas, even though
mending the rift might be hard.
Joan said the whole episode has
been one of the most regrettable
of her life. “It’s caused me a lot of
pain,” she said. “Maybe that will
be my New Year’s resolution—to
put this all behind us.” She plans
to no longer post anything politi-
cal on Facebook.
“Hopefully we can get past this
divisiveness as a nation, not just as
a family,” Lisa said.
rhyme is masterful. One thing he
does in the song “God’s Plan” is
give you the same phrase, but at
different points in the rhythm—
keeping it fresh.
The book discusses big hits. Any
recent ones you don’t like?
Mr. Sloan: A song we find vexing
is “I’m the One,” by DJ Khaled.
This is a song we will not redeem.
We think it’s derivative, offensive
and boring. And yet it was a No. 1
hit. You still have an opportunity
to ask why.
Let’s talk Rihanna.
Mr. Harding: Rihanna’s “We
Found Love” with Calvin Harris
came out in 2011, and while it
might seem like any other pop
song, it’s upsetting a long-held
tradition. Since the 1950s, one
thing that’s stayed relatively sta-
ble is song form—the verse-chorus
form of songs. What this song
does is take the structure of elec-
tronic-dance-music songs, which is
different, and superimpose it on
pop.
Mr. Sloan: And now it’s hip-hop
that is pushing the verse-chorus
form to its breaking point. Take
“Sicko Mode” by Travis Scott. It
doesn’t have a verse or a chorus.
It’s this stitched-together collage
of song fragments that seems
more at home in the work of an
experimental composer.
Will music streaming lead to
shorter, simpler songs?
Mr. Sloan: It’s easy to feel a cer-
tain panic about streaming. But
ELLYN JAMESON
“Old Town Road” is still 15 sec-
onds longer than the shortest No.
1 hit ever, in 1960. What’s past is
prologue.
 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, December 11, 2019 THE WALL STREET JOURNAL.

LIFE & ARTS

ANDREW CEBULKA FOR THE WALL STREET JOURNAL (5)

.
ly
MY RIDE | A.J. BAIME

A Bentley That’s
on
Fit for a Queen
us l,
al a
e

Millie Bull Horton of an investigation into its online forum, I met a man
ci on

Mount Pleasant, S.C., 65, a past. who said he once worked

retired high school English I found the man whom on Queen Elizabeth’s fleet
teacher, on her 1953 Bentley my father bought the car of cars. He told me that be-
R-Type, as told to A.J. from. He was in a nursing fore my car came to Amer-
Baime. home in Marion, Va., and I ica, it was used as a test
er rs

My father bought our interviewed him for two bed for an automatic trans-
Bentley for my mother in hours. I spoke to another mission that was going to
1977. The car’s license plate previous owner over the be used in the Queen’s new
read RLG986, and my phone, a former town mayor Rolls-Royce. [Elizabeth II
m e

mother named the car Real in Texas who had used the was crowned the year this
Live Girl after the RLG. My car for parades. I found doc- Bentley was built.] For
father passed away in 2011. umentation through car years I have tried to find
m rp

My mother is still living, but clubs and foundations. I out when and how the car
she had had her fun with flew to England to explore came to this country, but
the car, so it came to me. the location where the Bent- no luck yet.
I am a person who loves ley factory once stood, and I This year marks the 100th
origins. I found myself wish- took a course in car-show anniversary of the Bentley
co Fo

ing that my car could talk so judging, so I could learn brand. It was started by
I could learn more about it. more about my car. W.O. Bentley, who built his Millie Bull Horton, top, with her 1953 Bentley R-Type, near her home in Mount Pleasant, S.C. Being
Since it could not, I began Ultimately, through an first car in London in 1919. an English car, the steering wheel is on the right side from the driver’s point-of-view, below.
His motto was “to build a
fast car, a good car, the best
in its class,” and to do so,
he got into racing. The
Bentley Boys were a bunch
of racing drivers who won
the 24 Hours of Le Mans in
Bentley cars in 1924 and
1927 through 1930, and that
made Bentley world-famous.
W.O. Bentley was a great
n-

car builder, but bad with

money. In 1931, he fell into
trouble, and the brand was
purchased by Rolls-Royce.
no

That is why the two were

sister brands for much of
the 20th century. Today,
Bentley is owned by Volks-
wagen and Rolls-Royce by
BMW. These two quintes-
sential English brands are
now owned by the Germans.
I exercise Real Live Girl
every week. To me she is a
realization of W.O. Bentley’s
motto: a fast car, a good car,
the best in its class.

ADVERTISEMENT

Showroom
To advertise: 800-366-3975 or WSJ.com/classifieds

LEASE

 
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The car has an original English license plate but also an up-to-date South Carolina plate, above.
 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.
Movies That Make
Moviegoing a Pleasure
The big-screen medium continues to surprise
and delight us, despite dire predictions of its demise
BY JOE MORGENSTERN
THE CONVENTIONAL WISDOM
isn’t wrong about theatrical films;
they have a limited future in the
age of torrential streaming. Yet
there was something seriously
right with the big-screen medium
in 2019. Instead of whistling past
the graveyard, filmmakers from all
over the world seemed to be grac-
ing the place with more good mov-
ies than the eyes could see.
How then to choose the best of
the best among them? To be pain-
lessly honest, it wasn’t hard. We
live in such cold, dispiriting times
that I found myself applying the
same standard used by moviegoers
long ago—during the part of Holly-
wood’s golden era that coincided
with the Great Depression. The
film that left me feeling best about
life, most warmed by its human
spirit, was Greta Gerwig’s new-
fashioned version of the American
classic “Little Women.” It doesn’t
open until Christmas, and I can’t
borrow from a review I haven’t yet
written, so I’ll just say for now
that it’s even more beguiling than
the trailers make it seem, and so
alive with contemporary energy
that Louisa May Alcott must be
dancing in her grave.
As always, my other choices ap-
pear below in alphabetical order:
Apollo 11
Here’s a poor candidate for stream-
ing to your phone, or watching on
your watch. (The latter isn’t possi-
ble yet, at least with feature films,
but, heaven help us, that day will
no
THE BEST FILMS OF 2019
come.) Todd Douglas Miller’s docu-
mentary needs to be seen on the
biggest available screen, dealing as
on
it does with the year’s most expan-
sive subject. It’s encouraging,
though not surprising, that the film
keeps returning to big screens, up
us l,
to and including IMAX size, for spe-
cial engagements. Grandeur will
al a
e
never go out of fashion.
Booksmart
ci on
Brainy, witty and literate as virtues
for movie characters in our post-
literate age? What’s going on here?
The specific category is high-
school comedy, the familiar tem-
er rs
plate is members of the senior
class—two young women, in this
case—having a blast on the night
before graduation. Olivia Wilde’s
m e
directorial debut—yes, that Olivia
Wilde—draws its irrepressible en-
ergy from the principle that every
m rp
expectation will somehow be up-
ended, since no one is entirely who
they seem.
The Irishman
co Fo
The movies have become a catch-
as-catch-can medium in which art-
ists no longer count on having ca-
reers. Continuity has been
canceled, and won’t be making a
return engagement. Yet here’s the
remarkable case of Martin Scors-
ese, who has managed to make one
distinctive theatrical feature after
another over the past half-century.
Now he has summed up much of
his still-thriving career in a mag-
num opus—an extremely magnum
opus—that was made possible by
n-
Netflix, currently the most signifi-
LIFE & ARTS
cant instrument of big-screen de-
cline. Never mind the irony,
though. What matters is that Mr.
Scorsese made a movie so power-
ful, and haunting, that a whole era
of spectacular criminality comes to
life in a mere 209 minutes. Yup,
mere. It didn’t seem long to me,
just phenomenally full.
Knives Out
I’ve followed Rian Johnson’s career
with admiration and growing fasci-
nation, from his precocious first
feature “Brick” in 2005 to his stew-
ardship of “Star Wars: Episode
VIII—The Last Jedi” in 2017. Anyone
who can learn that much and grow
that much in a dozen years can
probably do anything in the motion-
picture realm, yet I was still unpre-
pared for “Knives Out.” More than a
tribute to the tradition of Agatha
Christie murder mysteries, it’s a
nosegay to the notion that main-
stream audiences will never tire of
superbly crafted entertainment,
whatever the genre may be.
Marriage Story
Two of the year’s best features
were made by people living with
each other in couplehood—Greta
Gerwig’s “Little Women” and Noah
Baumbach’s “Marriage Story.” By
now it’s no news that Mr. Baum-
bach’s drama of a marriage coming
apart was semi-autobiographical.
Anyone who’s seen it also knows
that “Marriage Story” is painfully,
artfully and tenderly universal.
Scarlett Johansson’s Nicole and
Adam Driver’s Charlie may remind
us of any number of people we
have come across in life,
perhaps including our-
selves. None of them,
though, could represent
themselves in such in-
spired and flawless per-
formances.
Once Upon a Time
in…Hollywood
Who knew going in—cer-
tainly not I—that Quentin
Brad Pitt and Leonardo
DiCaprio in ‘Once Upon a
Time in…Hollywood,’ left;
Scarlett Johansson, Azhy
Robertson and Adam Driver
in ‘Marriage Story,’ below;
Jonathan Pryce and
Anthony Hopkins in ‘The
Two Popes,’ below right
Wednesday, December 11, 2019 | A13
.
ly
Saoirse Ronan, Laura Dern, Eliza Scanlen, Florence Pugh and Emma Watson in
‘Little Women,’ above; Jesse Plemons, Ray Romano, Robert De Niro and Al
Pacino in ‘The Irishman,’ top
Tarantino would fool us, move us
and delight us with a film that
threatened to be one more harrow-
ing account of the ghastly Manson
murders? He pulled this off by
treating us to a beautiful bro-
mance—between an actor played
by Leonardo DiCaprio and his
stunt double played by Brad Pitt—
along with a densely populated,
richly detailed evocation of Los
Angeles at a point of radiant ripe-
ness in an alternate universe
where horror can turn to humor in
a flame-throwing flash. How dare
he, and how grand that he did.
Pain and Glory
Some movies continue to develop
after they’ve come out, like those
old Polaroid pictures that grew
richer and deeper after they’d been
pulled from the camera. I don’t
think I slighted Pedro Almodóvar’s
love letter to youth and the cre-
ative spirit when I wrote about it
in October: My review made it out
to be abundantly pleasurable. But
the film keeps working in the coils
of my memory, and, and now it
seems to me that Mr. Almodóvar,
and the great Antonio Banderas as
the filmmaker’s alter ego, have
made a truly exquisite movie about
movie-making, the ineffable joys of
childhood, and the renewable
sweetness of lost love. I plan to
see it again very soon.
Parasite
Sometimes reviewing exceptional
foreign films can be frustrating.
They aren’t foreign to you—the
very term seems provincial and
vaguely condescending—but the
market for them has been shrink-
ing, and this is not a time when
huge numbers of people love read-
ing subtitles. All the more reason,
then, for astonishment and grati-
tude at the size—and fervor—of
the American audience that has
embraced Bong Joon Ho’s class-
conscious masterpiece. Only a few
hours before I sat down to write
this, a friend I hadn’t seen in a
while asked, out of nowhere, “So
who do you think the parasite is?”
Suddenly it felt like the 1960s,
when people would quiz each
other about the meaning of the
latest Ingmar Bergman.
The Two Popes
Forget for a moment the splendid
spectacle and the dialectic be-
tween two spiritual leaders of op-
posing views. Let’s talk about im-
portant stuff like who prevails in
the acting battle between two su-
perlative performers. Is it the sly
and subtle Anthony Hopkins as
Pope Benedict XVI, or the warm
and endearing Jonathan Pryce as
Cardinal Jorge Mario Bergoglio,
the future Pope Francis? The an-
swer is no contest. They’re a per-
fectly matched pair in a film that
plays no favorites and draws no
boundaries. The organizing princi-
ple of the production, directed by
Fernando Meirelles from a screen-
play by Anthony McCarten, seems
to be that there’s plenty of room
for everything, including laughs
and love.
NETFLIX (3); SONY PICTURES (2)
 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, December 11, 2019 THE WALL STREET JOURNAL.

SPORTS
TV Stars Make the Best Baseball Coaches
Communication skills are a must for today’s MLB managers, so more teams are turning to TV analysts to fill those roles

BY JARED DIAMOND they have to deal with.”

“When you’re a member of the

S
San Diego media, you’re going to learn some
peaking to a group of things about the rhythm of that
baseball’s top public-re- operation and what the expecta-
lations executives at the tions are,” Phillies GM Matt Klen-
winter meetings three tak said. “It’s hard for me to
years ago, New York Yan- imagine that would be a bad
kees general manager Brian Cash- thing.”
man explained his theory about Just as teams are looking to TV
the role of the field manager. In studios for potential candidates,
his mind, the job had evolved into ex-players with managerial aspi-
something more like “White rations are increasingly viewing
House Press Secretary,” since it ESPN and MLB Network as legiti-
involves going on TV every day, mate training grounds. National
talking a lot and spinning the TV broadcasts in 2019 use ad-
day’s events. vanced metrics to convey infor-
The line drew a laugh—not be- mation, and analysts are expected
cause of the seemingly absurd not just to understand them—but
comparison, but because the audi- be able to explain them simply
ence knew what Cashman didn’t: and clearly to a general audience.
The next presenter on stage was It’s not unlike how managers
Josh Earnest, the actual White operate. Any successful applicant
House press secretary under Pres- needs to be well-versed in 21st-
ident Obama. “He probably century statistics and, more im-
thought I was buttering him up,” portant, relay them to 25 baseball
Cashman said. players who have varying degrees
But Cashman wasn’t joking of interest in analytics. Orlins
about the importance of a base- called knowledge of analytics “a
ball manager acting as a talking really clear separator” for players
head. “It’s real,” he said. interested in becoming announc-
And one year later, Cashman ers—and managers.
lived up to those words by hiring Meanwhile, TV can serve as an
former infielder Aaron Boone as audition of sorts. In the case of
the Yankees manager. Boone had Ross, who also served as a Cubs
never managed or coached at any special assistant while with ESPN,
level. His only post-playing quali- television helped him hone his
fication was eight seasons as an knowledge of his future oppo-

.
analyst for ESPN. He’s led the nents by covering them. Hoyer

ly
Yankees to 100 wins or more in said the Cubs “had a lot of really
each of his two years at the helm. good conversations with David
The Yankees aren’t the only about what he saw on other
team in recent years to find their on teams he was broadcasting.”
manager on a television set. The For Girardi, TV helped him
Chicago Cubs this fall tapped showcase his softer side and his
ESPN’s David Ross, a former people skills, after facing criti-
catcher with no managing or cism during his tenure in New
us l,

coaching experience. Alex Cora York that he was too intense and
worked for ESPN for four seasons struggled to connect with players.
al a
e
before going into coaching and ul- During the postseason, after long-

CLOCKWISE FROM TOP: MICHAEL DWYER/ASSOCIATED PRESS; JAMIE SQUIRE/GETTY IMAGES; DAVID BANKS/GETTY IMAGES
timately landing as the manager time Yankees pitcher CC Sabathia
for the Boston Red Sox. The Phila- suffered a shoulder injury in the
ci on

delphia Phillies hired Joe Girardi, final outing of his 19-year career,
who spent the last two seasons Girardi choked up on national TV,
with MLB Network after leaving fighting back tears as he said, “I
the managerial post with the Yan- love you, man.”
kees. ESPN’s Eduardo Pérez was a The Phillies hired Girardi about
er rs

finalist for the New York Mets gig a week later. While his public dis-
that went to Carlos Beltrán and play of emotion wasn’t the rea-
will almost certainly receive more son, Girardi showing such devo-
interest next winter. All told, Red Sox manager Alex Cora, top, Yankees tion to one of his players
m e

about a third of current managers manager Aaron Boone, pictured right with certainly didn’t hurt his chances.
have worked on TV at some point. Chris Berman, and Cubs manager David Ross In the case of Cora, TV helped
None of this is a coincidence. all worked as ESPN baseball analysts. convince him he could survive as
m rp

As the data revolution has re- a manager at all. He arrived at

shaped the industry and front of- The way teams see it, who else
fices have gained power in every to put in a communications-based
facet of the organization, the role job than somebody accustomed to
of the manager has changed dra- speaking to hundreds of thou-
co Fo
have more pressure on them than side and be a leader,” Cashman ESPN in 2013 fearing that he
ever before. They are essentially said, because an embarrassing didn’t speak English well enough
the public face of the franchise, press conference can spark a con- for television. Then Cora heard
tasked with laying out the organi- troversy that could cost the man- his colleague, Ozzie Guillén,

matically. Once an all-powerful sands of people a day on TV?
figure in command of everything “Who are ESPN and MLB Net-
that happened in the dugout, work going to gravitate toward?
modern managers now act more They’re going to gravitate toward
as middle managers with limited a big personality with a good rep-
decision-making authority. Their utation,” Cubs GM Jed Hoyer said.
primary responsibility is to act as “We’re looking for the same
a communicator, both in terms of things.”
their credibility with the players While today’s managers have
in the clubhouse for seven less say than their predecessors
months and their twice-daily in- in certain areas that were once
teractions with the news media. entirely their domain, they also
n-
zation’s message while their
bosses mostly watch from the ex-
ecutive suite.
Managers meet with reporters
before and after every game, from
the start of spring training
through the end of the World Se-
ries. They’re expected to do that
when the team has a long losing
streak or on days when they
didn’t sleep the night before.
They have to “put all that to the
ager his job.
For that reason, Hoyer said,
savviness with the media “is a
prerequisite in this day and age.”
That’s not a problem for ex-
broadcasters like Ross and Boone.
Phil Orlins, ESPN’s senior coordi-
nating producer for the network’s
baseball coverage, said that “they
all comfortably see media as a
part of the sport and a part of the
business,” rather than “a negative
speaking confidently on television
with what he described as “Span-
glish.”
“I thought, ‘If Ozzie can do it, I
can do it,’ ” Cora said.
By the end of his time at ESPN
after the 2016 season, he no lon-
ger worried about his language
skills or public speaking. In his
first year as manager, he led the
Red Sox to a World Series cham-
pionship.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
d
Edmonton <0 1 2 3 4 5 6 7 8 9 10 11 12 13 Down 30 Representative
no

0s 14 15 16
1 Tag 31 Emit effluvium
V
Vancouver C l ry
Calgary
10s
10s 2 Sister brand of 32 Golfer’s case
ttl
Seattle ip
Winnipeg 17 18 19
20s KitchenAid and of the nerves
20s Maytag
P d
Portland 40s 10s -0s Montreal 30s 20 21 22
Helena Bismarckk
33 Tick off
0s
Ottawa A g t
Augusta 40s 23 24 25 26 3 Symbolic animal
Eugene Boise
20s 20s Albany 34 Object of
20s Billings Mpls./St.. Paul
Pau T
Toronto A ban t
Boston 50s 4 Center of
l
Buffalo 27 28 29 30 31 32 adoration
k
Milwaukee 20s tfordd
Hartford 60s activity
30s P
Pierre t
Detroit
30s 35 Kin
oux FFalls
Sioux ll Chic
h
Chicago ew York
New Y k 70s 33 34 35 36 37
Reno 30s 20s Des Moines C
Clevelandd 5 Period in history
Che
h y
Cheyenne Phhil d lph
h
Philadelphia 39 Riverbed
Omahah Pittsburgh 80s 38 39 40
Sacramento lt
Salt La
L ake
Lake C y
City Springfield 6 Choir voice
Denver
k Kansas
Topeka p
Indianapolis h g on D.C.
hi
Washington DC 90s residue
an Francisco
San C
Colorad
Colorado
40s p
Springs City St.. Louis
Charlesto Richmond
Charleston 41 42 43 7 Lurch
60s L
Las h d 100+ 43 Stick your nose
Ve
Vegas 30s L
Lou ill
Louisville
h
Wichita Nashville
h ill Raleigh h 44 45 46 8 Mustang where it doesn’t
Los A
Angel
Angeles 40s Charlotte
Ch l tt belong
Santaa F
Fe 50s Memphis
phi 47 48 49 50 51
mother
Ph
Phoenix A b q q
Albuquerque Oklahoma City C b
Columbia
San Diego 70s Atl t
Atlanta Warm Rain 45 Summer cooler
Little Rock 9 Setting of the
T c
Tucson i g
Birminghamh 52 53 54 55 56 57
El Paso Ft. Worth Dallas
D ll Jack
Jackson
Cold
sun 46 Austen heroine
60s T-storms
bil
Mobile 58 59 60 61
A ti
Austin Jack ill
Jacksonville 10 Nostalgic topic 49 Fix, as text
10s -0s Houston t 70s Stationary Snow
d
Orlando 62 63 64 11 Cheat, of a sort
0s ew Orleans
New 50 T choice
80s an Antonio
San Tampa
Ta p
20s 80s Showers Flurries 65 66 67 12 Give the slip to
A h g
Anchorage Honolulu
l l 60s Miami 51 Cooker with a
30s
13 Critics’ concern basket
40s 70s Ice
TRICKERY | By David Alfred Bywaters 18 Language with 52 Many a
Moroccan
U.S. Forecasts City
Today
Hi Lo W
Tomorrow
Hi Lo W City
Today
Hi Lo W
Tomorrow
Hi Lo W
Across 23 Letter that looks 47 Just one of Sanskrit
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 1 It takes turns in like a flipped y those things borrowings 53 Flowing rock
Omaha 35 29 pc 43 29 pc Frankfurt 39 35 r 41 34 pc
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice a shop
Orlando 80 64 sh 77 64 sh Geneva 41 33 r 40 35 sn 26 Mark on a graph 48 Yours truly 22 Badly 54 Food in an
Today Tomorrow Philadelphia 39 25 sn 36 29 s Havana 87 63 sh 85 61 s
City Hi Lo W Hi Lo W 6 Hug providers 27 Commuter’s 52 Sci-fi film set 24 Initiate cordial edible shell
Phoenix 69 46 pc 69 46 s Hong Kong 73 62 pc 70 64 pc
Anchorage 31 28 pc 30 27 c Pittsburgh 32 18 s 38 28 s Istanbul 57 46 c 59 48 pc
10 Posh party banter? aboard the conversation, 55 Boulevard liners,
Atlanta 55 37 pc 53 39 pc Portland, Maine 33 16 sn 29 21 s Jakarta 90 77 t 89 77 t Nostromo metaphorically often
Austin 59 33 s 64 36 pc Portland, Ore. 51 49 r 55 43 r Jerusalem 62 48 pc 57 47 t 14 Parisian 33 Sunk in a slough
Baltimore 42 22 sn 38 26 s Sacramento 60 51 s 62 53 c Johannesburg 74 55 pc 78 58 s
passion 54 Play group 25 Pop 56 Periods in
Boise 44 38 sf 48 38 sh St. Louis 48 32 s 52 33 pc London 47 34 sh 48 42 r 36 Box at the box
office 57 Damage 26 Shoreline history
Boston 36 25 sn 35 29 s Salt Lake City 40 31 c 45 36 c Madrid 50 35 pc 47 47 c 15 Plumbing
Burlington 32 16 sf 28 23 s San Francisco 59 56 c 62 56 c Manila 87 77 pc 88 78 pc
problem 37 Number of 58 Sitarist Shankar structure 59 Yak it up
Charlotte 53 31 r 49 34 pc Santa Fe 46 25 pc 47 28 s Melbourne 67 53 pc 65 52 pc
Chicago 25 21 pc 44 31 c Seattle 52 48 r 53 45 r Mexico City 69 45 s 72 48 c vowels in 59 Setting for 28 Andean camelid 60 Baton Rouge
16 Methane’s lack “Deutschland”
Cleveland 30 21 pc 40 33 pc Sioux Falls 16 14 pc 28 18 pc Milan 43 35 c 43 33 pc sch.
Dallas 54 34 s 57 38 pc Wash., D.C. 41 27 sn 40 31 s Moscow 37 23 c 29 25 c
portraits of 29 Asimov’s Cutie,
17 What powers 38 Notion square dance
Denver 46 26 pc 47 30 s Mumbai 89 76 pc 87 74 pc
Robin’s e.g. 61 Top
Detroit
Honolulu
27 15 pc 35 31 pc
84 70 pc 84 73 pc
International Paris
Rio de Janeiro
47 36 pc
83 74 t
46 43 r
87 75 c flashlight? 39 Foil alternative
women?
Today Tomorrow 62 Accompanying, Previous Puzzle’s Solution
Houston 60 39 s 62 45 pc Riyadh 74 53 pc 72 60 pc 40 Strongly felt
Indianapolis 34 24 s 44 30 pc City Hi Lo W Hi Lo W Rome 54 36 s 55 41 pc 19 Remove from in Avignon D A D B O D A S H E S P F
A V E E N O E K E S W A R
Kansas City 47 36 s 51 33 s Amsterdam 46 37 pc 43 37 sh San Juan 85 76 sh 85 76 sh office 41 Acoustic guitar F I N G E R P R I N T I T O
Las Vegas 59 43 s 61 44 pc Athens 61 50 r 60 49 pc Seoul 49 24 pc 38 25 s 63 Peak T A T S I R R E A S O N
20 Nashville-to- genre E T A L C O O T I E S H O T
Little Rock 52 27 s 52 30 pc Baghdad 63 45 s 64 48 pc Shanghai 59 41 pc 55 44 pc 64 Burn a bit
New York dir. R E L O S D N A P I T A
Los Angeles 67 52 pc 72 53 s Bangkok 86 65 pc 87 68 pc Singapore 81 77 r 84 76 t 42 “That’s my cue!” K I A A N K A N I L
Miami 84 72 pc 82 71 pc Beijing 40 19 pc 39 19 pc Sydney 73 64 pc 70 64 pc 65 Runner’s stop S P I T T I N G I M A G E
Milwaukee 22 17 pc 42 33 c Berlin 39 34 r 40 31 pc Taipei City 72 62 pc 70 65 pc 21 Green feature 43 Urban oases P O I S E N D D O G
Minneapolis 6 5 pc 24 15 sn Brussels 45 35 pc 43 39 r Tokyo 57 50 sh 60 42 s 66 Head honcho C L O P N O D R E L I C
Nashville 46 27 s 55 41 pc Buenos Aires 91 69 t 81 58 s Toronto 27 17 pc 31 29 pc
22 Runs while 44 Inadequate G I N G E R S N A P D A T A
standing still adulation? 67 Milk source A T E A S E Y UM D A S
New Orleans 59 49 s 64 56 r Dubai 79 71 t 79 66 pc Vancouver 48 44 r 48 40 r M A E P H O T O F I N I S H
New York City 37 25 sn 35 31 s Dublin 42 35 pc 46 38 r Warsaw 33 28 pc 37 31 c E R R N A D A F L E E C E
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s

Oklahoma City 54 32 s 55 32 pc Edinburgh 41 33 pc 40 36 r Zurich 39 35 r 39 29 sn S Y S U B E R S E E S A W

 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.
OPINION
The Horowitz Horror Show
Justice De-
partment In-
spector Gen-
eral Michael
Horowitz, as
he explains,
is bound to
BUSINESS
WORLD assume good
faith unless
By Holman W.
given “docu-
Jenkins, Jr.
mentary or
testimonial
evidence” otherwise. Yet he
has compiled a factually damn-
ing report that even a thick-
headed and biased press will
have to take account of.
A shorthand version of his
report: Here are 50 facts that
can be explained only by FBI
incompetence or political bias.
We find no documentary or
testimonial evidence of bias.
The mystique of Christo-
pher Steele has gone poof,
along with the reputations of
many pundits. The FBI saw
that he was being paid to sell
claims to the press even as his
third-hand sources were con-
tradicting his claims to the FBI.
He was the kind of reporter
(we’ve known a few) prone to
“follow the shiny object.” The
CIA considered his reporting
“internet rumor.”
On the surveillance warrant
on the peripheral and unim-
portant Carter Page, we learn
that a host of mistakes, omis-
sions and outright fabrications
“made it appear that the infor-
mation supporting probable
cause was stronger than was
actually the case.” Exculpatory
evidence was ignored. Mr. Page
conveyed persuasively that he
had never spoken to or com-
municated with Paul Manafort
For the Senate, a Trial Is an Ordeal
As President
Trump’s im-
peachment
appears inevi-
table, it’s time
to focus on
the Senate,
POLITICS where it falls
& IDEAS to Majority
By William Leader Mitch
A. Galston McConnell
and Minority
Leader Chuck
Schumer to avert a procedural
train wreck. A glance at his-
tory shows that it can be
done—and what it will take.
At 10 a.m. on Jan. 7, 1999,
the Senate convened to begin
the first presidential impeach-
ment trial since 1868. Three
hours later Chief Justice Wil-
liam Rehnquist assumed his
constitutional role as presiding
officer and swore the senators
in as jurors.
According to the chamber’s
standing rules, the Senate was
then required to issue a sum-
mons to the person im-
peached—Bill Clinton—speci-
fying the charges as well as
the time and place at which his
trial would begin. Instead, the
Senate recessed in confusion
and discord, for reasons that
illuminate the challenge to-
day’s Senate will face when it
no
receives articles of impeach-
ment against Mr. Trump.
As Lawfare’s Hilary Hurd
and Benjamin Wittes explain,
although the Senate’s standing
rules present detailed “stage
directions” for opening the
Big Tech’s Unfair Immigration Advantage
By Michael Roach
And John Skrentny
I
f Congress wants to help
technology startups com-
pete with giants like Ama-
zon, Google and Microsoft, it
should change America’s immi-
gration laws. Our research
suggests that visa policy is of-
ten an obstacle to startups
seeking to hire foreign gradu-
ates with specialized scientific
and technical skills.
To understand how U.S. im-
migration policies might influ-
ence the choice of workplace
for high-skilled foreign work-
ers, we examined industry em-
ployment outcomes of more
than 2,300 science and engi-
neering doctoral graduates,
both foreigners and U.S. citi-
zens, from 39 leading Ameri-
can research universities. Us-
ing a survey that followed
them from graduate school to
their first industry job, we
identified graduates whose
first job was with an early-
stage technology startup and
those who went to work for
large technology firms. Among
the U.S. citizens, 16% worked
in a startup after graduation,
compared with only 7% of for-
whose intermediary with Rus-
sian co-conspirators Mr. Page
was supposed to be. Mr.
Steele’s implausible claim of a
giant dangled Rosneft bribe
was denied even by Mr.
Steele’s own source as the in-
spector general was able to
confirm by looking at the
source’s text messages. Still
unexplained, and inexplicable,
is why the FBI was in a panic
to eavesdrop on Mr. Page at all.
Nobody could have believed
Mr. Steele’s story about him.
More than ever it seems FBI
headquarters, from which the
demand originated, was under
some unidentified outside
pressure to spy on the Trump
campaign.
A line from Stanley Ku-
brick’s “Paths of Glory” comes
to mind. A senior French gen-
eral, reflecting on the crimes
and disasters spawned by his
chain of command, insouci-
antly declares, “Wherein have
I done wrong?”
Wherein can the agency be
shown to have done wrong,
though it flouted its own rules
in publicly chastising Hillary
Clinton even while excusing
her from criminal liability, then
flouted its own rules again
when it reopened her case be-
fore Election Day; though the
inspector general found many
of the FBI’s decisions inexplica-
ble; though he uncovered clear
expressions of partisan hostil-
ity by FBI agents and their
sources?
For almost three years, be-
cause of the FBI’s actions, the
country was held in suspense
by an investigation into
on
whether Mr. Trump was a
us l,
al a
e
trial, they say little about the
procedures once the trial gets
under way. Crucial questions
ci on
about witnesses and rules of
evidence, among other mat-
ters, are left to the chief jus-
tice and the senators them-
selves. Only a simple majority
er rs
is required, except when a pro-
posed procedure would alter a
standing rule, in which case 67
votes are required.
m e
This explains why the Clin-
ton trial quickly ground to a
halt: Republicans and Demo-
m rp
crats hadn’t been able to agree
on core procedures for con-
ducting it. In particular, they
couldn’t agree whether to call
witnesses—the House had
co Fo
called none. Today this might
seem puzzling. Republicans
had a 55-45 edge and could
have made the rules without
Democratic support. Two con-
siderations leaned against this
course. One was political: Ma-
jority Leader Trent Lott’s cau-
cus included members facing
tough races who didn’t want to
be tarred with complicity in a
purely partisan proceeding.
The other reason was less
tangible but no less conse-
n-
quential. Both Mr. Lott and Mi-
nority Leader Tom Daschle
cared about the Senate’s insti-
tutional reputation. So they
decided to convene a rare joint
caucus of all 100 senators the
next morning. It succeeded.
The senators reached agree-
ment on the trial’s timetable
and many procedures, and a
resolution formalizing this
eign doctoral candidates who
required a work visa, even
though foreign graduates were
more likely than their Ameri-
can peers to say they would
prefer to work for a startup.
Foreign students who grad-
uate from American universi-
ties can use the Optional Prac-
tical Training program to work
Reform the system to
help startups get visas
for recent graduates.
in the U.S. for one year after
graduation, or up to three
years for students studying in
the STEM fields—science, tech-
nology, engineering and math.
But remaining longer requires
a temporary work visa, such as
an H-1B, or a green card.
Foreign-born graduates are
reluctant to work in startups
because these enterprises have
less experience than estab-
lished companies in securing
visas, especially highly coveted
green cards. They may also be
afraid they’ll lose their work
authorization if the startup
they work for fails.
Kremlin agent, only to have
Robert Mueller tell us, based
on information already in the
government’s hands (let’s not
kid ourselves about this), that
there never was any evidence
to support the claim.
But wherein did the FBI do
wrong?
Mr. Horowitz, of course, is
largely restricted to looking at
official acts, but unofficial and
unrecorded acts are also part
of the story. Specifically, the
FBI was a leakfest. Deputy Di-
rector Andrew McCabe lost his
The inspector general
is circumspect in his
judgments but the
facts speak clearly.
job and part of his pension for
lying about leaks. Director
James Comey was recom-
mended by Mr. Horowitz for
criminal prosecution for leak-
ing. Mr. Steele was leaking to
the press when the FBI consid-
ered him a confidential infor-
mant. Yet even Mr. Steele him-
self complained to the FBI
about its leaking.
Mr. Horowitz is not a crimi-
nal investigator. He lacks sub-
poena power, much less mind-
reading power. If somebody
was thinking, “This Steele ma-
terial looks bogus but let’s use
it anyway;” he would not ex-
pect to find documentary and
testimonial proof of it. And
which file drawer should he
search for documentary and
testimonial evidence that the
agreement passed the Senate
unanimously.
As often happens when
compromises are struck, some
matters were unresolved—
most important, whether wit-
nesses would be subpoenaed
and whether evidence not in
the House record could be in-
troduced during the trial. But
the senators agreed on the se-
quence of events that would
precede the debate and votes
on these contested issues.
Timely lessons from
the last presidential
impeachment, more
than two decades ago.
Twenty-one years later, the
president’s party, not the op-
position, holds the Senate ma-
jority, and many members on
both sides want to present
witnesses who didn’t appear in
the House—John Bolton, Mick
Mulvaney and Mike Pompeo
for the Democrats; the whistle-
blower, Hunter Biden and even
Joe Biden for the Republicans.
Still, both parties have mem-
bers who face tough races next
year and would be reluctant to
participate in a process swing
voters would see as partisan
and unfair. In a White House
meeting three weeks ago, Sen.
Ted Cruz reportedly informed
senior officials that there
weren’t enough votes to ap-
We find that foreign-born
graduates with doctorates ap-
ply to and receive offers from
tech startups at the same rate
as U.S. citizens, yet they are
less than half as likely to work
for them. Instead, they join
leading technology firms like
Amazon, Google and Micro-
soft, taking what they perceive
as a safer route to a visa. U.S.
visa policies are thus deterring
foreign high-skilled STEM
workers from joining the
early-stage startups that seek
to become the next Google.
Visa laws developed three
decades ago don’t create a
level playing field for startups
and are likely holding back in-
novation. For more than a de-
cade, Congress has debated
immigration policies like the
Stopping Trained in America
Ph.D.s from Leaving the Econ-
omy Act, or “Staple Act”—the
idea being that high-skilled
foreign students should get
green cards stapled to their
degrees. The bill would grant
permanent residency to for-
eign-born graduates who earn
STEM doctorates, allowing
them to stay in the U.S. and
contribute to the economy.
This would resolve the visa
country would have been bet-
ter served by a wiser, more cir-
cumspect FBI leadership, one
less influenced by a manifest
belief that Mr. Trump was un-
fit and Mrs. Clinton was cer-
tain to be the next president?
Ultimately federal prosecu-
tor John Durham will have his
say. He brings tools and pow-
ers that Mr. Horowitz lacks. He
should be able to suss out the
contribution of other U.S. intel-
ligence agencies to the deba-
cles here. Historians will have
their say, with their special
perspective on the temptations
of bureaucratic self-deception
and the comedy of errors that
official life frequently entails
(a crucial framing, we suspect,
of the 2016 intelligence follies).
This might be the place to
end but for the ironic coinci-
dence of the Washington Post’s
unveiling of its exposé on 18
years of official lying and con-
fusion about the war in Af-
ghanistan. In one sense, noth-
ing is surprising here but
raises a question: Why are we
impeaching Donald Trump
when the people trying to re-
move him are no better than
he is?
Whatever his legitimate
complaints about his treat-
ment at the hands of the FBI,
Mr. Trump managed to win in
2016. Hillary Clinton fans are
the ones still contending that
improper FBI actions cost her
the election. We can only won-
der when Democrats and their
media supporters will find
their way out of their own fog
and start demanding an un-
sparing examination of the
FBI’s role in the 2016 race.
prove the most controversial
witnesses on either side.
In the absence of procedural
agreements between the par-
ties on witness lists, interview-
ing protocols and rules of evi-
dence, opportunities for chaos-
creating controversies abound.
Suppose a White House official
refuses to answer certain
questions, citing executive
privilege. If the Senate votes to
hold this witness in contempt,
can he appeal to the courts? If
so, would the Senate trial be
delayed until the judiciary is-
sues a definitive ruling?
The 100 senators who
struck the 1999 deal convened
in the Old Senate Chamber,
where the Senate met until
1859. As Mr. Daschle later re-
marked, “Henry Clay, John
Calhoun and Daniel Webster
spent their careers in that
chamber, so there’s just an
awesome feeling of history.”
Perhaps this feeling helped the
bipartisan conclave reach an
agreement that reflected not
only short-term partisan inter-
ests but also the well-being of
the institution in which they
had the privilege to serve—an
institution they knew would
endure long after they had
passed from the scene.
We will soon find out if this
sense of institutional responsi-
bility persists or has been
swept away in the tide of
hyperpartisanship that has en-
gulfed American politics. More
than the fate of a presidency
hangs on the outcome.
concerns that often deter for-
eign-born grads from working
in startups. The periodically
proposed STEM Jobs Act
would also expand the number
of visas available to high-skill
foreigners.
Our findings suggest an ur-
gent need for immigration pol-
icies that specifically make it
easier for startups to hire
high-skilled foreign workers
with advanced STEM degrees
from U.S. universities. Remov-
ing visa barriers to employ-
ment could increase the num-
ber of employees with
doctorates working in startups
by as much as 20%, enabling
young companies to compete
better against large tech firms.
Revisiting visa policies with an
eye to their impact on startups
could help entrepreneurial
ventures thrive and stimulate
America’s tech economy.
Mr. Roach is an assistant
professor of strategy and busi-
ness economics at Cornell’s SC
Johnson College of Business.
Mr. Skrentny is a professor of
sociology and director of the
Yankelovich Center for Social
Science Research at the Uni-
versity of California San Diego.
Wednesday, December 11, 2019 | A15
BOOKSHELF | By Steven Poole
Not Quite
The Real Thing
Genuine Fakes
By Lydia Pyne
(Bloomsbury Sigma, 304 pages, $28)
I
n 1954, after multiple setbacks—some involving
exploding equipment—a team of scientists at General
Electric finally succeeded in making the first artificial
diamond. Applying enormous pressure and heat to
carbon, it turned out, could reproduce the process of
diamond formation that normally took nature up to
billions of years to complete. This development made De
Beers nervous—at the time, the company controlled the
global trade in naturally formed diamonds. But diamond
prices never collapsed: GE kept supply low; De Beers,
meanwhile, licensed GE’s technology and now sells its
own lab-grown diamonds alongside the natural kind.
Indeed, artificial diamonds—which, on a molecular level,
are identical to mined diamonds—are now preferred by
some as the more ethical choice for jewelry, even if they
are still considered somehow inauthentic.
Lab-grown diamonds are
a fine example of what
Lydia Pyne, in her latest
book, calls “genuine fakes”:
a category of things she
describes as “in-between
objects that are real and
not-real at the same time.”
This proves to be a very
fruitful concept, applicable
not only to material objects
but to many forms of human
activity. Money, for instance,
is both real (it can take
physical form and has concrete
.
effects) and not-real (it is,
ly
essentially, a consensual
hallucination).
The best chapters in Ms. Pyne’s book,
“Genuine Fakes: How Phony Things Teach Us About Real
Stuff,” marry fine scientific explanation with cultural
history and surprising twists. Her fascinating story of
the development of artificial fruit flavorings, for example,
reveals that the standard candy flavor for bananas
resembles in taste the real bananas of the mid-19th
century, when the flavor was first isolated. Back then the
predominant breed was the Gros Michel; but the Gros
Michel was practically wiped out by disease in the middle
of the 20th century, and has since been replaced by the
very-different-tasting Cavendish. Thus, “tasting synthetic
banana flavour, codified when the Gros Michel was the
commercial banana de jour, is like tasting a relict banana
from the last century. Even though contemporary flavour
scientists would be able to more accurately copy the
flavour of today’s bananas, consumers expect artificial
banana flavour to be what it’s always been.”
There are sometimes good reasons to prefer a fake
over the real thing, as Ms. Pyne explains in her chapter
about putting blue whales on exhibition. (It takes an
awful lot of time and effort, apparently, to wash the
grease from their bones and prepare them for display in
a museum.) “As whale curators and showmen have found,
there’s only so much authenticity about whales that
audiences are willing to tolerate—no leaking, dripping or
smelling—even if those things are just as ‘real.’ ”
In another chapter, the author details how, to preserve
prehistoric cave paintings from the damage and
deterioration inevitably hastened by millions of visiting
tourists, France has built a replica cave, the Caverne du
Pont d’Arc, which, Ms. Pyne argues, is something more
than a mere simulacrum: It offers “an opportunity to see
and experience art”—not only of the sort found in the
cave, but also the art of making the copy itself.
From the blue whale at the museum to
banana-flavored bubble gum, sometimes
we prefer things to be a little less authentic.
Authenticity, Ms. Pyne persuasively concludes, is thus
seldom a cut-and-dried property. Some of her own
examples, however, are less convincing than others.
Fakes intended to deceive for profit—such as forgeries of
art—are definitely not real, in the sense that they were
not painted by the attributed artist. But in what way are
they real? Simply, Ms. Pyne argues, because—at least
sometimes—they can become collectible in their own
right as “authentic forgeries.” Such was the case with
the work of the mysterious Spanish Forger, who in the
late 19th century created faux-medieval works. But even
so, there remains no ambiguity in the status of the
works: They are forgeries. The same goes with the
notorious case of the 1958 Disney wildlife documentary
“White Wilderness.” The producers of that film
purported to show footage of lemmings “swarming over
a cliff’s edge” in a mass suicide. The footage was later
revealed to have been staged: There was nothing
genuine about it.
A similar objection might be made to Ms. Pyne’s
treatment of literary fakes. In her book, the author
concentrates on William Henry Ireland, who in the 18th
century forged a letter he claimed was handwritten by
Shakespeare and addressed to his wife, Anne Hathaway.
Ireland also supposedly discovered several “lost”
Shakespeare plays. As Ms. Pyne points out, literary
scholars today continue to study Ireland; he remains
“one of the most collectable and valuable of the dubious
pantheon of Shakespearean forgers.” But this doesn’t
make his deceptive artifacts any more genuine. It might
have been more apposite to discuss the rich literary
history of pseudonymity. Daniel Defoe, after all, originally
claimed that “Robinson Crusoe” was the truthful memoir
of its narrator. That was a fake, but the novel’s brilliance
remains genuine.
Another relevant case might have been Ossian,
supposedly an epic Gaelic bard whose work was
purportedly “discovered” and published in 1760 by the
Scottish poet James Macpherson. Samuel Johnson was
among those who immediately suspected that the poems
were no ancient masterpieces but the work of
Macpherson himself. And yet Ossian enjoyed a rich
afterlife, his works considered influential literature in its
own right. And it was not, after all, a total fabrication:
The modern consensus is that Macpherson did collect
real Gaelic folk ballads from the oral tradition, while
adjusting and rewriting them himself. Epic literature,
weaving history and myth, is perhaps the oldest form of
genuine fake there is.
Mr. Poole is the author of “A Word for Every Day of the Year.”
 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, December 11, 2019 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Return of the Tax Games Transparent Prices Will Improve Health Care

I
mpeachment suggests a hopelessly parti- electricity and energy-efficient homes. For the beleaguered health-care estimates take into account the spe-
san Washington, but sometimes this is Republicans are also debating whether to ex- consumer, any step for increased cific negotiated rates with insurers,
price transparency is a step in the as well as the patient’s insurance
more for show. Republicans and Democrats tend the wind production tax credit. This corpo-
right direction (“Hospital Groups Sue benefits. St. Luke’s University Health
are working together behind rate giveaway has bled taxpay- to Keep Rates Secret,” U.S. News, Dec. Network in Pennsylvania even guar-
the scenes to fleece taxpayers Congress prepares for ers since 1992 and is finally 5). With annual family out-of-pocket antees its price quotes. These are
with another burst of special- a gigantic, bipartisan due to meet its overdue death costs for high-deductible health plans two of a growing number of health-
interest tax subsidies before at the end of this year. But allowable up to $16,400 in 2020, care systems across the country
they leave for the year. subsidy giveaway. some in the GOP want to subsi- shouldn’t parents be able to decide showing that it’s manageable for hos-
In a rare moment of wis- dize more noisy wind turbines before a child’s tonsillectomy or other pitals to share user-friendly informa-
dom or confusion, Congress across America. planned procedure whether they will tion about prices.
let its annual package of tax handouts expire at Mr. Neal knows political leverage when he have to pay 20% coinsurance of A majority of Americans are look-
the end of 2017. This “extender” bill, as it’s sees it, and in preparation for his talks with Mr. $8,000 or $16,000? For health-care ing for health-care price information,
called, is Congress’s usual way of slipping re- Grassley introduced the Green Act that includes consumers, it is only with competition but nearly two-thirds say there’s not
and price transparency that there is enough of this information available.
peat tax perks to such favored friends as Nascar a long wish-list of subsidies. Its lowlight is a
any hope that costs will stabilize. With a growing number of Americans
track proprietors, racehorse owners and green- huge expansion of the electric-vehicle tax credit. The hue and cry from the hospital enrolled in high-deductible and con-
energy outfits. Current law gives a $7,500 tax credit to the rela- groups is reminiscent of the National sumer-directed health plans, patients
Now the main tax writers in the House and tively affluent buyers of an auto maker’s first Restaurant Association’s fight against are paying for a greater share of their
Senate are on a mission to make up for lost subsi- 200,000 electric vehicles, and some of the big calorie disclosure on menus. Informa- health-care bills out of their own
dies. Republicans have one useful purpose in car makers have hit that limit. Mr. Neal wants tion gives people full knowledge about pockets. Now more than ever, they
wanting to pass technical corrections to their to raise the limit to 600,000 cars, at an esti- a choice they are about to make. have a right to know what they can
2017 tax reform, such as fixing a mistake that de- mated cost of $16 billion over a decade. LYNN SHIREY expect to pay so they can make in-
nied retailers the ability to depreciate store im- Mr. Neal’s bill also has handouts for solar Portland, Ore. formed decisions about their care.
provements. Democrats see a political opening power, microturbines, hydrogen fuel cells, car- DAVID SANDMAN, PH.D.
The new federal price-transpar- President and CEO
and want to use an extender deal to add tens of bon capture technology, waste-energy recovery
ency rule will be resource-intensive New York State Health Foundation
billions in new welfare-tax subsidies and a large products, and so much more. No cost estimates for hospitals, but pioneering health- New York
expansion of gifts to energy companies. yet, but count on a big number. care facilities have already decided
Democratic House Ways and Means Chair- The Democratic political motives here are ob- that it’s worth the investment, shar- Hospitals should be free to keep
man Richard Neal wants to make the $2,000 vious given how they have nothing so far to show ing price information even absent their negotiated prices secret as long
child tax credit fully refundable, which means for retaking the House in 2018. They want to government regulations. For example, as they are willing to live without
extending it to people who don’t pay taxes. He grease business lobbies with subsidies that will Memorial Healthcare System in Flor- Medicare revenue. If hospitals want to
also wants to extend the earned-income tax be repaid with campaign contributions to keep ida reports prices for more than 300 enjoy federal funding, they should be
credit to childless adults. The Joint Committee the House in 2020. By larding the tax code with services, even incorporating profes- willing to live with federal rules on
on Taxation says the combined cost of these credits that reduce revenue, they also increase sional fees and other ancillary costs price disclosure.
proposals is $80 billion over 10 years. fiscal pressure to raise tax rates across the to provide an “all-in” view of patient JONATHAN LAUER
liabilities for a bundle of care. These Woodinville, Wash.
Over in the GOP Senate, Finance Chairman board—a priority of the political left.
Chuck Grassley wants to bring home the green But what’s in this for Republicans, who
for Iowa. His top goal is reviving a $1-a-gallon passed tax reform in 2017 to simplify the code?
Pelosi Backs Adam Schiff, Not Adam Smith

.
tax credit for blenders of biodiesel. He’s also in The GOP risks rubber-stamping the Democratic

favor of renewing what he calls “green-energy agenda and enriching the Beltway tax industry In your editorial “Pelosi’s Never-
incentives,” including tax credits for renewable in return for a few special-interest trinkets. Ending Trade Demands” (Dec. 4), you
point out a “trade deal with 10 years
of market exclusivity [for biologic
New York’s Stranded Exxon Case
on medicines] would mean Congress
couldn’t make it five or fewer later.”
ly
Canada won’t spur innovation; taken
together these countries represent
2% of the global pharmaceutical mar-
ket. Twelve years of exclusivity in
our country may have been needed
to incentivize biologics in 2009 when

W
ell, that was embarrassing. After investor who claimed to have been duped, and By removing the exclusivity period the protection became law. Looking
from the USMCA trade agreement forward, there is no reason to lock in
us l,

spending nearly four years trying to even her witnesses supported Exxon.
text, Congress and the White House a decade-old standard when efficien-
nail Exxon Mobil for myriad climate- “What the evidence at trial revealed is that maintain their ability to unleash free- cies and new technologies, like AI
change deceptions, New York’s ExxonMobil executives and
al a
e
market competition sooner without and biomarkers, are speeding up
attorney general was excori- A judge eviscerates the employees were uniformly harming innovation. drug development.
ated Tuesday by a state judge much ballyhooed committed to rigorously dis- This matters because biologics CHESTER “CHIP” DAVIS JR.
ci on

for making “hyperbolic” charging their duties in the comprised 2% of prescriptions in the President and CEO
claims and essentially trying climate-change suit. most comprehensive and me- U.S. but represented 36% of total Association for Accessible Medicines
to deceive the court. ticulous manner possible,” the drug spending in 2018. This is a 9.5% Washington
In case readers missed it— judge noted, adding that increase over 2017 levels. Biosimilars,
and no doubt New York Attorney General Letitia “there was not a single ExxonMobil employee medicines that present U.S. patients You note that passage of the
er rs

James hopes you did—State Supreme Court Judge whose testimony the Court found to be anything with a lower-cost alternative, are en- USMCA would give Democratic House
countering aggressive market access members in swing districts some-
Barry Ostrager (appointed by Democratic Gov. An- other than truthful.” challenges and over-patenting strate- thing besides impeachment to show
drew Cuomo) dismissed New York’s lawsuit alleg- Exxon “provided only conceptual information gies by certain biologic manufactur- for two years in Congress. The
ing that Exxon violated the state’s Martin Act. about how it managed the risks of climate change
m e

ers. Only 26 biosimilars have been USMCA, however, if approved by

That securities law merely requires that a “rea- in its business planning,” the judge explained. “No approved in this country and only 12 Congress, would also represent an
sonable” investor might have been misled regard- reasonable investor during this period from 2013 of those are on the market. We pride important accomplishment of the
m rp

less of whether there was fraudulent intent, but to 2016 would make investment decisions based ourselves on the competitive nature Trump administration. Democrats,
the AG couldn’t even meet this low bar. on speculative assumptions of costs that may be of our markets, yet in this instance with a view to the 2020 presidential
Former AG Eric Schneiderman started the le- incurred 20+ or 30+ years in the future with re- we lag far behind Europe, where election, don’t conceal their deter-
gal excavation in 2015 aiming to show that Exxon spect to unidentified future projects.” more than 60 biosimilars have been mined reluctance to deny President
concealed from the public what it knew about After the judge’s ruling, Ms. James’s office approved, in terms of patient choice. Trump any such accomplishments.
co Fo

Biologic makers have 12 years be- This may lead to their vote against
its climate harms. When discovery well after issued this statement: “Throughout this case,
fore generic biosimilars can be intro- the USMCA no matter how many
well ran dry, the AG’s office drilled into Exxon we laid out how Exxon made materially false, duced in the U.S., eight years in Can- concessions the president makes.
for projecting different carbon costs to investors misleading, and confusing representations to ada and five in Mexico. Raising the DONALD NAWI
than those it used internally for reviewing in- the American people about the company’s re- period of exclusivity in Mexico and Scarsdale, N.Y.
vestments. sponse to climate change regulations.” She re-
But even the AG conceded that Exxon’s “proxy” peats the smears that the judge ruled had no
and “greenhouse gas” costs were distinct. Exxon factual basis.
used “proxy costs” to estimate future oil demand No word on whether she’ll appeal, but good
accounting for climate regulations and “green- luck trying to disagree with the judge’s wither-
Cows Face an Increasingly Uncertain Future
house gas” costs to calculate drilling costs for ing factual findings. The only fraud in this case Compared with plant-based pro- Impossible Foods Inc.’s baldly stated
specific projects. The AG didn’t depose a single was the AG’s lawsuit. tein, raising beef takes a lot of fresh goal of ending all livestock production
water, a lot of land and a lot of en- is a perfect example of Christ’s admo-
ergy, all predicted to be in short or nition that someone is not defiled by
n-

The IG, Nunes and Schiff restricted supply in the near future
(“The High Steaks Face-Off Over Fake
what enters the mouth, but what
comes out of it. Cows are surely one of

M
Meat,” Exchange, Nov. 30). And, even God’s most wondrous creations for hu-
onday’s Justice Department Inspector cited multiple sources to support the case for though the Green New Deal overstates man sustenance, blessing us with nu-
no

General report on the FBI’s Trump- surveilling Page—but made only narrow use of this, as a byproduct of digesting tritious milk, cheese, butter, meat vital
Russia probe is illuminating in many information from Steele’s sources about Page’s grass, cows emit methane, a powerful proteins, gelatin, bones for broth and
ways, not least the light it specific activities in 2016 . . .” greenhouse gas. So even if it is a tie leather to protect our feet and bodies.
casts on the previous claims The Horowitz report False again. in terms of human health, we should To eliminate all livestock production
by politicians when they were all be rooting for the success of “fake would put thousands of good people
telling the public about what
reveals the Democrat’s theThe Horowitz report says
FBI considered surveilling meat” for the health of our planet out of work, destroy family farms and
many distortions. (and the cows). ranches, not to mention butchers and
they saw in classified docu- Mr. Page in August 2016 but GEORGE B. HEPT ancillary businesses that rely on animal
ments. House Intelligence decided it lacked probable Chesapeake, Va. byproducts. Where is the good in such
Chairman Adam Schiff in par- cause. The bureau moved a scorched-earth policy?
ticular has been exposed for distortions and ahead with its FISA application after it received NAN BAUROTH
falsehoods. the Steele dossier on September 19, and the re- Peloton Critics Miss the Charlotte, N.C.
Americans first learned about the FBI’s port says the dossier “played a central and es-
abuse of the FISA process in a February 2018 sential role” in that decision. Mr. Horowitz says
Many Benefits of Exercise Just about everyone knows that bi-
memo from then House Intelligence Chair Devin the part of the application detailing Mr. Page’s Regarding your editorial “A Holi- son has far less fat and cholesterol
Nunes. The memo disclosed that the FBI had ob- 2016 activities “relied entirely” on “information day Micro-Aggression” (Dec. 5): In than beef, and the coconut oil used in
tained surveillance warrants from the Foreign from Steele Reports.” response to the critics of the Peloton fake meat doesn’t win any nutritional
commercial and the lucky lady who awards. The smart choice seems to be
Intelligence Surveillance Court against former Mr. Schiff also claimed in 2018 that the Jus-
receives a Peloton for Christmas, I bison. The Native Americans seem-
Trump aide Carter Page; that the dossier writ- tice Department was straight with the FISA would suggest that they consider ingly thrived on it.
ten by ex-British spook Christopher Steele and court about “Steele’s prior relationship with the that the point of exercise isn’t lim- JACK WOLOCK
financed by the Clinton campaign had formed FBI.” In fact, the IG says that the FBI “over- ited to losing weight. Believe it or Worthington, Ohio
an “essential” part of that application; and that stated the significance of Steele’s past report- not, there are folks out there who
the FBI failed to tell the FISA court about Mr. ing.” And in three later applications the FBI did exercise for the purpose of improv-
Steele’s political and media ties. not tell the court that it had talked to profes- ing their cardiovascular fitness,
This was news, but Mr. Schiff and Democrats sional contacts of Mr. Steele who said he had building muscle and enjoying the Pepper ...
called the Nunes memo false and weeks later a “lack of self-awareness, poor judgment,” and multiple benefits of living a healthy
lifestyle.
And Salt
released a rival summary of the classified FISA that he “pursued people with political risk but
evidence. Now the IG has settled the debate by no intelligence value.” Perhaps those in the twitter uni- THE WALL STREET JOURNAL
verse who so viciously attacked the
confirming the details in the Nunes memo and Mr. Schiff claimed DOJ “met the rigor, trans-
commercial should get off the couch,
exposing Mr. Schiff’s untruths. parency, and evidentiary basis needed to meet” put down their cellphones, take a
The third line of the Schiff memo reads: “FBI FISA court standards. But Mr. Horowitz makes break from twitter and go for a run,
and DOJ officials did not abuse the [FISA] pro- clear that FBI officials didn’t even tell senior a swim or a bike (not a motorcycle)
cess, omit material information, or subvert this Justice officials about the concerns and irregu- and improve their physical well-be-
vital tool to spy on the Trump campaign.” False. larities of its Page application. Would the court ing. This would be a great New
IG Michael Horowitz’s report lists the many and have granted warrants if it knew the whole Year’s resolution.
varied ways the FBI did all of those. story? We don’t know. But the IG report makes AL MONTGOMERY
This includes overstating Mr. Steele’s credi- clear that about the only thing the FBI ever cor- Germantown, Tenn.
bility, omitting concerns about his sources, hid- roborated in the Steele report was publicly
ing exculpatory information, and even doctor- available information. Letters intended for publication should
ing a document. The IG is concerned enough by Mr. Schiff had access to the same documents be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
“the extensive compliance failures” that he says as Mr. Nunes. His decision to misrepresent the or emailed to wsj.ltrs@wsj.com. Please
he has begun “oversight” to assess FBI compli- FBI’s actions shows he is willing to distort the include your city and state. All letters
ance “with policies that seek to protect the civil truth for political purposes. He gets away with are subject to editing, and unpublished
liberties of U.S. persons.” this because he has a willing echo chamber in letters can be neither acknowledged nor “I used to come here to browse.
returned.
The Schiff memo also claimed that “DOJ the Washington press corps. Now I graze.”
 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.
How to Defeat Kim Jong Un
By Nicholas Eberstadt
T
he latest phase in the
North Korean nuclear cri-
sis is a race against time
inside North Korea itself.
Which will come first: nu-
clear breakout or economic break-
down? Washington should be mov-
ing much more forcefully to tilt the
outcome in the West’s favor.
On the one hand, Pyongyang
presses ahead with production of
nuclear warheads and intercontinen-
tal ballistic missiles. Kim Jong Un
publicly announced as much nearly
two years ago, on New Year’s Day
2018. Mr. Kim successfully parlayed
a temporary halt to nuclear and
ICBM testing into the summitry with
President Trump—with the North
manufacturing more strategic weap-
ons all the while. When Pyongyang’s
nuclear arsenal is sufficiently devel-
oped, Mr. Kim will likely switch back
to confrontation, renewing nuclear
brinkmanship, this time with the
mainland U.S. at risk.
Double down on sanctions,
punish the regime’s
criminal activities and
provide ‘intrusive aid.’
At the same time, American and
international sanctions are under-
mining the North Korean economy,
pushing it closer to dislocation.
Sanctions seldom work, but North
Korea is an exception, given its
highly distorted and dependent
economy. Through guile and strate-
gic deception, Pyongyang desper-
ately hopes to persuade the U.S. to
abandon sanctions, because Mr. Kim
is spending down his currency re-
serves and his strategic stores of
Michelle Obama Is Racially Insensitive?
In the 1990s, before
I had a family of my
own, I volunteered
in a mentoring pro-
gram and was paired
with a high-school
freshman from Har-
UPWARD
MOBILITY lem whose parents
were divorced. We
By Jason L.
would meet up on
Riley
weekends to see a
movie, visit a mu-
seum, or sometimes just grab a meal
and chat about how things were go-
ing. His mother, a West Indian immi-
grant, told me that she had signed
her son up for the program because
she wanted him to have more male
role models in his life.
I thought about that experience
after Pete Buttigieg came under at-
tack last month for saying, in 2011,
that low-income minorities need
more positive role models. The
Democratic presidential candidate’s
remarks were denounced as racist,
and he eventually walked them
back out of political expediency.
Michelle Obama came in for similar
treatment at an event in Chicago
recently, when she said that while
she “can’t make people not afraid
of black people,” blacks can address
racism through how they lead their
lives. “Maybe if I show up every
day as a human, a good human, do-
no
ing wonderful things, loving my
family, loving our kids, taking care
of things that I care about—maybe,
just maybe that work will pick
away at the scabs of our discrimi-
nation. Maybe that will slowly un-
ravel it.”
Like Mr. Buttigieg, Mrs. Obama
was chided by fellow liberals for fo-
cusing on black behavior. Among to-
day’s progressives, suggesting that
anything other than white racism is
responsible for racial disparities is
verboten. But there was a time when
blacks were expected—by whites and
blacks alike—to adhere to certain so-
cial norms to facilitate upward mo-
bility, and the existence of racism
was no excuse for not doing so.
Mrs. Obama made her remarks
during a conversation with Isabel
Wilkerson, who wrote “The Warmth
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Rupert Murdoch
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Kim Jong Un with soldiers of the North Korean army.
food and energy. To outsiders, every-
thing will look “normal”—until it
starts to spin out of the regime’s
control.
America’s national security de-
pends on forestalling North Korea’s
strategic breakout and hastening the
breakdown of its war economy. That
calls for “maximum pressure” once
again—this time with gusto. Three
decades of failed denuclearization
talks demonstrate that diplomatic
negotiations with the Kim family
simply can’t get the U.S. where it
wants. “Threat reduction,” on the
other hand, can begin as soon as the
U.S. says it does.
How to proceed? Here are a few
suggestions:
• Double down on economic sanc-
tions. Chinese, Russian and other in-
terests regularly violate existing U.S.
and United Nations Security Council
strictures. Yet Washington has a
fearsome tool for coercing compli-
ance with sanctions against North
Korea: the U.S. dollar, still the
world’s reserve currency. on
The U.S. can ban sanction-busting
commercial and financial entities
from future dollar-denominated
us l,
al a
e
of Other Suns,” a book about the
ci on
millions of mostly rural blacks who
migrated from the South in the first
half of the 20th century and settled
in Northern cities like Chicago. As
Ms. Wilkerson wrote, black newspa-
er rs
pers at the time, such as the Chicago
Defender, and civil rights organiza-
tions like the Urban League “ran pe-
riodic lists of ‘do’s and don’ts’ ” that
m e
advised the new arrivals on how to
behave properly. “Don’t use vile lan-
guage in public places.” “Don’t ap-
m rp
pear on the street with old dust
caps, dirty aprons and ragged
clothes.” “Don’t loaf. Get a job at
once.” “Do not keep your children
out of school.” In a 1917 editorial,
co Fo
the Chicago Defender wrote, “It is
our duty . . . to guide the hand of a
less experienced one, especially
when one misstep weakens our
chance for climbing.”
Today, such talk is derided by
many on the left, but a focus on self-
regard and self-respect was once
seen as essential to economic prog-
ress, and the results speak for them-
selves. Census data show that in the
1940s and ’50s black poverty rates
plummeted, black incomes grew at a
faster rate than white incomes, and
n-
I Have a Beef With Phony Meat
By Deb Fischer
A
group of vegans are suing
Burger King over its meatless
alternative, the “Impossible
Burger.” They allege that after the
restaurant added the plant-based
patty to its menu, Burger King “con-
taminated” those burgers by expos-
ing them to real meat on the grill. As
a lifelong Nebraskan and a cattle
rancher, I can’t imagine how someone
could see beef as a “contaminant.”
But this lawsuit reflects a growing
challenge with imitation meat: Amer-
icans are increasingly unsure what’s
on their dinner plates.
Chances are you’ve heard of
plant-based protein products seek-
ing to imitate the taste of real beef.
Many of these fake-meat companies
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
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OPERATING EXECUTIVES:
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Professional Information Business:
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Ingrid Verschuren, Deputy Head
Wednesday, December 11, 2019 | A17
OPINION
And remember Otto Warmbier. A
U.S. court has awarded his family a
$500 million judgment against
Pyongyang for his death. Washington
should aggressively enforce it. Until
it’s satisfied, nothing owned by the
Kim regime should enjoy free pas-
sage—anywhere in the world.
KCNA VIA KNS/AFP VIA GETTY IMAGES
While we’re at it, why not pur-
chase on the secondary debt market
a few hundred million dollars’ worth
of bank loans from the 1970s on
which North Korea has since de-
faulted? These could be had at a
very steep discount. Holding such
debt would give Washington the sov-
ereign right to hunt down and seize
hidden North Korean bank accounts
and other loot stashed abroad.
• Prepare for the next North Ko-
transactions. For many globalized rean food crisis. The first external
entities, such “secondary sanctions” sign that economic pressure is crip-
would amount to a financial death pling the North Korean economy will
blow. To restore credibility to the likely be a spiraling of cereal prices
sanctions campaign, the U.S. will and a collapse of the exchange rate
probably have to make examples of of the North Korean won in domestic
some important Chinese and Russian markets. The second could be a hun-
companies. ger crisis. Pyongyang will have no
• Treat Pyongyang like the crimi- compunction about starving hos-
nal enterprise it is. No other regime tages from disfavored classes to
games its national sovereignty and loosen the sanctions noose. The U.S.
converts its diplomatic immunity into and its allies must be prepared to of-
criminal revenue like North Korea. fer “intrusive aid”—a program de-
Cybercrime, drug running, currency signed and administered by impar-
counterfeiting, human trafficking, nu- tial outsiders, not North Korean
clear proliferation—the gangster apparatchiks—to feed the needy di-
state in North Korea profits from all rectly. This is the path to breaking
of these and more. the country’s war economy.
The U.S. needs a sustained diplo- If a U.S.-led North Korean threat-
matic and law-enforcement initiative reduction effort looks likely to suc-
to name, shame and blacklist male- ceed, Pyongyang will use every men-
factors. The North’s money trails acing gambit it can muster to get
lead through familiar terror bazaars America’s leaders to desist. They
.
in the Middle East, and rolling these must not be unnerved. Mr. Kim in-
ly
back would be a twofer. And don’t tends to threaten the U.S. with nu-
forget the illicit activities North Ko- clear weapons. America has to stop
rean embassies routinely run in him before his leverage grows.
countries with which the U.S. has
friendly relations—including ivory Mr. Eberstadt is a political econo-
and rhino-horn smuggling by its dip- mist at the American Enterprise In-
lomats in various African capitals. stitute.
the racial gap in years of schooling to remember what was achieved by
narrowed from four years to less blacks at a time when racism was
than two. It’s worth noting that all far more prevalent than it is now.
of this was achieved prior to passage The underdevelopment of human
of the landmark civil-rights bills of capital, not white racism, is the far
the 1960s that so often receive ex- bigger barrier to black progress.
clusive credit for black advance- Lashing out at Pete Buttigieg and
ment. And as more blacks became Michelle Obama for saying the
kinds of things that are said in ev-
ery black church on any given Sun-
She and Pete Buttigieg day may give progressives emo-
tional release, but it does nothing
come under attack from for the black underclass and only
progressives for expressing makes it more difficult to have hon-
est conversations about inequality.
common-sense views. The irony is that liberals today
are trying to help blacks by accom-
modating the kinds of aberrant be-
more educated, they qualified for havior that a previous generation of
better jobs. Which helps explain why black leaders understood to be coun-
in the decades before affirmative ac- terproductive. Bernie Sanders and
tion policies were implemented in Elizabeth Warren, who want a mora-
the 1970s, blacks were already enter- torium on charter schools, have both
ing middle-class professions at un- vowed to legalize marijuana through
precedented rates. executive action if elected, citing the
None of this is meant to roman- disparate impact of drug laws on mi-
ticize black life in America under nority communities. But is that what
Jim Crow or to diminish the impor- underprivileged blacks really need—
tance of passing the Civil Rights less access to charter schools and
Act of 1964 and the Voting Rights more access to weed? That’s not
Act of 1965, both of which made helping blacks. It’s giving up on
this country more just. The point is them.
are running smear campaigns tein packaging often contains the
against actual beef, using deceptive words “beef,” “meat” and “burger”
labeling and marketing practices. in large letters. The Real MEAT Act
This has left consumers confused would work to end deceptive label-
about the ingredients and nutri- ing practices for imitation meat
tional values of so-called beef alter- products, clear up confusion by cod-
natives. I introduced the Real MEAT ifying a definition of “beef” for
Act in the Senate because Americans product labeling, and provide a
deserve to know whether the meat mechanism for the U.S. Department
they are eating is the real thing.
In a recent survey, the National
Cattlemen’s Beef Association found Deceptive labels and
that 80% of consumers believe alter-
native protein products are nutri- marketing practices lead
tionally equivalent or superior to ac- consumers to think it’s
tual beef. There’s no evidence to
support that claim. A 4-ounce serv- better than the real thing.
ing of lean ground beef contains a
range of nutrients that fake meat
lacks, including zinc, iron and B vi- of Agriculture to seek enforcement
tamins. Real beef also contains less actions if a product is found to be
fat, saturated fat and sodium, as mislabeled. The bill would also en-
well as more protein, compared with sure that the packaging for these
most meat alternatives of equal products clearly states they contain
weight. no actual meat.
Beyond Meat, a California-based Nebraska farmers and ranchers
company, recently removed an inac- have been producing amazing beef
curate statistic from its website that for generations, and its quality is a
claimed eating meat increases your source of pride for our entire state.
chance of getting cancer and heart It’s delicious and nutritious. Ameri-
disease. The website failed to note cans deserve to know what they are
that the study it was citing referred eating, particularly when they want
only to highly processed meats, not to be sure that the meat on their
fresh beef. plates is the kind of real, irreplace-
Plant-based proteins are made up able beef for which Nebraska is
of a laundry list of mostly processed famous.
ingredients—there are 21 ingredi- I will continue to work to build
ents in an Impossible Burger and 22 support for the Real MEAT Act in
in a Beyond Burger. Even so, the the Senate and among my colleagues
NCBA survey found more than a on the Agriculture Committee.
fifth of consumers mistakenly be- Working together, we can end the
lieved that these products do in fact smear campaign against real beef
contain meat. Less than half of re- and bring certainty to the
spondents knew that plant-based supermarket.
“beef” was completely vegan.
Misleading labels are to blame Mrs. Fischer, a Republican, is a
for the confusion. Plant-based pro- U.S. senator from Nebraska.
FBI Spying
Ruined My
Good Name
By Carter Page
M
y name is Carter Page, and I
wish you were hearing it for
the first time. If you were, I
could introduce myself—a former na-
val officer who has worked for politi-
cal figures from both parties. But my
identity has been reduced to a series
of false accusations. If something
isn’t done to prevent future abuses of
power by intelligence agencies, I
won’t be the last to lose his good
name this way.
In 2016-17 the government I once
served investigated me on suspicion
of being an intermediary between the
Trump campaign and the Russian
government. This week Inspector
General Michael Horowitz detailed
how officials committed troubling er-
rors over the course of the probe.
From the day news of the investiga-
tion broke, I have faced threats to my
life and have been forced to live like a
fugitive. I still don’t feel safe enough
to establish a fixed residence.
FISA has failed to protect
American citizens from
abusive surveillance.
I still have many questions about
the FBI investigation that ruined my
life. If you value your privacy, reputa-
tion and right to political expression,
you should too.
I’m by no means the first person
to raise these concerns. In the 1970s,
the Church Committee uncovered
troubling abuses. In response, Con-
gress passed the Foreign Intelligence
Surveillance Act of 1978. FISA was
supposed to protect U.S. citizens
from the formidable investigatory
powers the government can turn on
foreign agents and terrorists. But it
didn’t protect me. And those surveil-
lance powers have grown exponen-
tially since the 1970s.
Mr. Horowitz’s report identified
“at least 17 significant errors or omis-
sions” in the application for a surveil-
lance warrant against me. Among
them: the FBI’s altering a document
to secure my FISA warrant’s renewal,
as well as its repeated reliance on un-
corroborated information in the
Steele dossier to justify intrusive sur-
veillance. “That so many basic and
fundamental failures were made,” the
report said, “raised significant ques-
tions regarding the FBI chain of com-
mand’s management and supervision
of the FISA process.”
The irregularities continued after
the investigation ended. In 2018 the
FBI made my FISA warrant applica-
tion public in response to Freedom of
Information Act lawsuits, something
it hasn’t done with any other applica-
tion in FISA’s 40-year history. The in-
telligence community also stone-
walled me. After the inspector general
drafted his report, the Justice Depart-
ment wouldn’t let me review it before
its release. The department lets only
those interviewed for a report review
its draft, in this case including former
FBI Deputy Director Andrew McCabe,
whom Mr. Horowitz earlier referred
for criminal investigation for lying to
investigators.
While I appreciate Mr. Horowitz’s
work, it’s not enough. When he testi-
fies Wednesday before the Senate Ju-
diciary Committee, members should
ask him the following questions:
• Will you recommend prohibit-
ing the use of uncorroborated po-
litical opposition research in FISA
applications?
• How can Americans have faith in
the FISA process after an FBI lawyer
was found to have falsified evidence
in a warrant application?
• What timeline do you recom-
mend for a review of responsibility
and oversight within the FBI chain of
command in my case, and who should
carry out that investigation?
• What other steps do you recom-
mend to reform the FISA process so
such abuse can’t happen again?
My experience should be a warn-
ing. For three years, I have opened
myself up to more than 40 hours of
interrogation without a lawyer, in-
cluding full days of questioning be-
fore the House and Senate Intelli-
gence committees and by special
counsel Robert Mueller’s team. After
all this testimony, and after more
than a year of round-the-clock sur-
veillance under FISA warrants, I have
never been charged with any crime. If
senators don’t demand answers,
they’re practically inviting intelli-
gence agencies to use their surveil-
lance powers to target domestic po-
litical opponents.
I will never completely restore my
name. All I can do is try to make sure
this never happens again. As the Su-
preme Court warned nearly a half-
century ago: “The price of lawful
public dissent must not be a dread of
subjection to an unchecked surveil-
lance power.”
Mr. Page is the managing partner
of Global Natural Gas Ventures LLC.
 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, December 11, 2019 THE WALL STREET JOURNAL.

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TECHNOLOGY: AMAZON SEES NEED FOR GREATER TECHNICAL SKILLS IN ITS WORKFORCE B4
BUSINESS & FINANCE
© 2019 Dow Jones & Company. All Rights Reserved.
S&P 3132.52 g 0.11% S&P FIN g 0.002% S&P IT À 0.003%
New York Life Makes Bid for Cigna Unit
New York Life Insurance
Co. is negotiating with Cigna
Corp. to acquire a unit that
sells nonmedical insurance
products to employers, a deal
that could be valued at as
much as $6 billion, according
to people familiar with the
matter.
Cigna in recent months has
been seeking a buyer for a
business that sells life, acci-
dent and disability-income in-
surance to employers for their
workers, a move that would
help the health insurer focus
on its core business, according
to the people.
Exxon
Is Cleared
Of Fraud
Allegation
BY CORINNE RAMEY
A New York state judge
cleared Exxon Mobil Corp. of
fraud claims, saying New
York’s attorney general had
failed to establish that the oil
company had deceived inves-
tors about how it accounted
for the cost of future climate-
change regulation.
The verdict Tuesday capped
a nearly three-week civil trial
between the state and Exxon,
which had spent several years
fighting the case. The com-
pany is battling similar accu-
sations in other state and fed-
eral courts.
In his 55-page ruling, New
York State Supreme Court Jus-
tice Barry Ostrager said the
attorney general’s office didn’t
prove that the company had
violated the Martin Act, a
broad antifraud statute com-
monly used to pursue financial
crime, or other similar laws.
“The Office of the Attorney
General failed to prove, by a
preponderance of the evi-
dence, that Exxon Mobil made
any material misstatements or
omissions about its practices
and procedures that misled
any reasonable investor,” Jus-
tice Ostrager wrote.
Still, he noted that the case
and his ruling centered on al-
legations of securities fraud.
“Nothing in this opinion is in-
tended to absolve Exxon Mobil
from responsibility for con-
tributing to climate change
through the emission of green-
house gases in the production
of its fossil fuel products,” the
no
judge wrote.
During the trial, the office
of Attorney General Letitia
James accused the company of
using two different accounting
methods—one public, and one
internal—to project its busi-
ness costs in countries that
were expected to implement
policies to combat climate
change.
How Exxon planned for
these costs and their potential
impact on the company’s
health mattered to investors,
the office said, with the omis-
sion of the information result-
ing in an inflated stock price.
The attorney general esti-
mated the damage to share-
holders to be as much as $1.6
billion.
Lawyers for Exxon said the
company, while acknowledging
the existence of internal calcu-
lations, had done nothing
wrong and that a reasonable
investor wouldn’t expect to
have access to the informa-
tion.
The company had also ac-
cused the attorney general’s
office of being motivated by
politics in bringing the case.
A spokesman for Exxon said
the ruling affirmed the com-
pany’s position that it had
provided investors with accu-
rate information.
“The court agreed that the
attorney general failed to
make a case, even with the ex-
tremely low threshold of the
Martin Act in its favor,” the
spokesman said.
Ms. James said that inves-
tors are entitled to the truth.
Please turn to page B2
By Leslie Scism,
Dana Cimilluca
and Anna Wilde
Mathews
Potential buyers including
MetLife Inc. and Sun Life Fi-
nancial Inc. have been circling
the company too, but New
York Life recently emerged as
the leading contender, the
people said.
The two sides aim to reach
a pact by year-end. There is no
guarantee Cigna and New York
Life will manage to do so. If
they don’t, Cigna could turn
20%
15
al a
ci on
10
er rs
m e
m rp
5 ernment control, but doing so
co Fo
0 Fannie and Freddie under-
2006
*Shows loans that are more than 95% of the property value
Sources: CoreLogic (loans with small down payments); Inside Mortgage Finance (volume, debt payments more than 43%)
n-
Antitrust Theory on Facebook Gains Adherents
BY JEFF HORWITZ
When Dina Srinivasan quit
her job as a digital ad execu-
tive two years ago, she wasn’t
looking to retool antitrust law
for the social-media age. She
just wanted to spend some
time reading in coffee shops.
Then 36 years old, with a
Yale law degree she had never
put to use, Ms. Srinivasan
spent a few months in cafes
around her Connecticut home
INSIDE
PROPERTY REPORT
In Airbnb era,
landlords of
apartments are
new hoteliers. B6
FINANCE
Starboard pushes
health-care-services
firm Mednax to weigh
partial or full sale. B12
* * * *
DJ TRANS g 0.44%
THE WALL STREET JOURNAL.
again to one of the other bid-
ders.
New York Life is one of the
nation’s oldest and financially
strongest life insurers. It is
owned by its policyholders,
one of the last of a once-large
number of mutuals, and
doesn’t trade publicly.
Based in New York, the 174-
year-old company is known for
its fleet of career agents who
sell traditional life insurance
to households across the U.S.
Like other U.S. life insurers,
New York Life is looking for
ways to expand in a competi-
tive marketplace as low inter-
Before the
financial crisis,
the share of loans
made to borrowers
with small down
payments spiked.
Then it plummeted
in 2008, when
Fannie and Freddie
were effectively
nationalized.
on
us l,
e
It has crept up again over the past
five years after Fannie and Freddie
introduced new low down payment
programs. But in the most recent
quarter, the trend has reversed.
Share of Fannie- and Freddie-eligible
loans made to borrowers with small
down payments*
’10
reading economic history and
mulling over her own misgiv-
ings about the evolution of the
digital ad market. One mystery,
she said, nagged at her. How
could Facebook Inc., a com-
pany with checkered privacy
record, obtain so much of its
users’ personal data?
Her conclusion was that
rather than raising prices like
an old-school monopolist,
Facebook harmed consumers
by charging them ever-increas-
Costly Plans Dent Teachers’ Nest Eggs
BY GRETCHEN MORGENSON
AND ANNE TERGESEN
Hidden financial ties exist
between some administrators
hired by school districts for
their teacher retirement plans
and the companies whose in-
vestment products those ad-
ministrators promote, The
Wall Street Journal found.
The ties can encourage ad-
ministrators to promote
higher-fee investments that
leave teachers with smaller
nest eggs than they might oth-
erwise have had.
The Journal’s findings come
as the Securities and Exchange
Commission is investigating
whether schoolteachers are
getting a fair shake from the
companies they work with
when they save for retirement.
The agency has requested in-
formation from companies
marketing retirement-income
products to teachers and from
WSJ $ IDX g 0.07% LIBOR 3M 1.887
est rates make life insurance
and retirement-income annui-
ties—its core products—less
attractive to some consumers.
The company has a group-
life-insurance business that is
smaller than that of Cigna,
and a combination would pro-
pel New York Life into the top
five companies by market
share selling nonmedical in-
surance for employers’ benefit
programs.
New York Life is one of the
best capitalized of any U.S. life
insurer, with surplus—the in-
surance-industry equivalent of
net worth—of $25 billion at
Total volume of home loans, quarterly
$600 billion
400
200
0
2014
Share of Fannie and Freddie loans in
which debt payments are more than
43% of the borrower’s income, quarterly
30%
20
10
0 regulator.
2014 ’19
3Q 2019
10.5%
’15 ’19
ing amounts of personal data
to use its platform. Eventually
she emailed an unsolicited arti-
cle to the Berkeley Business
Law Journal, which published
it as “The Antitrust Case
Against Facebook.”
Her argument has had unex-
pected resonance. In the past
year Ms. Srinivasan has pre-
sented at the American Anti-
trust Institute’s annual confer-
ence and appeared at a private
gathering of state attorneys
Keith Reed, a fifth-grade math teacher, says he was shocked to learn about his retirement fees.
those providing administrative
services, the Journal has re-
ported.
Keith Reed, a 58-year-old
fifth-grade teacher in Joshua
Tree, Calif., says he has
learned the hard way how the
Wednesday, December 11, 2019 | B1
NIKKEI (Midday) 23352.91 g 0.24%
the end of 2018.
The company had operating
earnings in 2018 of $2.31 bil-
lion, a 12.5% increase from
2017, according to data from
ratings firm A.M. Best Co. Its
net premiums written totaled
$29.3 billion in 2018.
The bid for the Cigna unit
follows other moves by New
York Life Chief Executive Ted
Mathas to diversify opera-
tions, including acquisitions to
broaden the reach of its in-
vestment-management arm
and steps to build up other
businesses related to the core
retail-insurance operations.
Regulator Acts
To Slow High-Risk
’19 Mortgage Lending
.
ly
BY BEN EISEN
Fannie Mae and Freddie
Mac are pulling back on some
mortgages meant to make
homeownership more afford-
able, their latest effort to rein
in risk at the behest of their
The two companies are cut-
ting back on the proportion of
loans they back to borrowers
with small down payments, for
example, and mortgages to
deeply indebted borrowers.
The regulator, the Federal
Housing Finance Agency, says
it wants Fannie and Freddie to
be prepared for a possible eco-
nomic downturn. Tamping
down risk could limit their de-
faults and produce bigger
profits, which in turn could
help them appeal to potential
investors. The FHFA has made
it a priority to get Fannie and
Freddie out from under gov-
will likely require the compa-
nies to raise billions of dollars
from investors.
“Some of this really is a re-
flection of the increased em-
phasis and focus on: Let’s do
what we need to do to get out
of conservatorship,” FHFA di-
rector Mark Calabria said in
an interview.
gird the U.S. mortgage market.
Their recent pullback in some
affordability-oriented pro-
general investigating Facebook.
Now based in Northern Califor-
nia, she is presenting her work
at an international antitrust
conference in Brussels this
week.
U.S. Attorney General Wil-
liam Barr, whose department is
currently probing big tech, said
Tuesday he is “open to that ar-
gument” that consumer harm
can exist through the use of
personal data, even if a service
is free. “I am inclined to think
deck can be stacked against
teachers’ retirement savings.
The school district where
he works hired an outside ad-
ministrator, SchoolsFirst Plan
Administration LLC, a unit of
SchoolsFirst Federal Credit
See more at WSJ.com/Markets
Cigna has been digesting its
$54 billion acquisition of phar-
macy-benefit manager Express
Scripts Holding Co., which
closed about a year ago.
It could use proceeds from
any new deal to reduce its
debt, which stands at about
$39 billion, while refining its
focus on its health-services
business. Cigna’s market capi-
talization is $71 billion.
In addition to its central
business of employer health
and drug benefits, Cigna is
working to build up its Medi-
care unit, and it has long
Please turn to page B2
grams feeds into a broader de-
bate about the extent to which
they should shoulder risk to
make homeownership possible
for modest-income borrowers.
Critics say the changes
could run counter to Fannie’s
and Freddie’s mission of mak-
ing homeownership more ac-
cessible and affordable.
“All the signals from FHFA
leadership point in the same
direction: a more constrained
footprint and less focus on af-
fordability,” said Julia Gordon,
president of the National Com-
munity Stabilization Trust, a
nonprofit that focuses on
neighborhood revitalization.
Fannie and Freddie recently
tightened their requirements
around backing mortgages to
borrowers with just 3% down
payments. Previously, borrow-
ers whose income was as high
as the area median could qual-
ify for Fannie- and Freddie-eli-
gible loans. This summer, Fan-
nie and Freddie said borrowers
can’t have income of more
than 80% of the median.
The loans are intended to
unlock homeownership for
people who don’t have sub-
stantial savings but can afford
monthly mortgage payments.
But low-down-payment loans
are also considered riskier be-
cause a small drop in home
prices can leave borrowers
owing more than their homes
Please turn to page B12
there is no free lunch” he said
at this week’s Wall Street Jour-
nal CEO Council meeting in
Washington, D.C. “Something
that is free is actually getting
paid for one way or the other.”
While the attention Ms.
Srinivasan attracted took her
by surprise, she said it is im-
portant to study Facebook “so
that we can catch these things
earlier in the future.”
A person who has worked
Please turn to page B4
JENNIFER WHITNEY FOR THE WALL STREET JOURNAL
Union, to handle its employ-
ees’ retirement accounts. That
administrator’s representa-
tives would show up in the
teachers’ lunchroom bearing
pizza or doughnuts.
Please turn to page B2
 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, December 11, 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 Emergent Cold............B6
AbbVie.........................A6
Airbnb..........................B6
Alcoa ........................... A6
Alphabet......................B4
Altria Group..............B14
Amazon.com........B4,B14
Americold Realty Trust
.....................................B6
Apollo Global
Management.............B3
Archer Daniels Midland
.....................................A6
AutoZone...................B12
AXA...........................B14
B no. As the primary breadwinner
Ball ............................ B13
BlackRock..................B13
Blueground Holdings..B6
BNP Paribas..............B14
Boeing ......................... B5
C Kroger..........................B6
Caterpillar ................. B14
Chevron.......................A1
Chewy........................B14
Chongqing Changan
Automobile...............B3
Cigna............................B1
Citigroup....................B12
Continental..................B3
Corteva......................B13
CVS Health..................B2
D-E
Darden Restaurants . B12
Deutsche Bank..........B12
Domio..........................B6
INDEX TO PEOPLE
B Galetti, Beth...............B4
Battany, David..........B12
Borsch, Matthew........B2
Buffett, Warren........B14
C L
Calabria, Mark.............B1
F-G
Fowler, Wade............B13
Exxon Is
Cleared in
Fraud Case
Continued from page B1
“Despite this decision, we will
continue to fight to ensure
companies are held responsi-
ble for actions that under-
mine and jeopardize the fi-
nancial health and safety of
Americans across our country,
and we will continue to fight
to end climate change,” she
Costs Dent
Teachers’
Savings
Continued from page B1
“They always bring food,”
Mr. Reed said. “It makes you
feel as if you are in a relaxed
atmosphere and that they are
looking out for you.”
Mr. Reed said he eventually
concluded that neither the
school district nor its retire-
ment-plan administrator was
working for the teachers’ ben-
efit. After attending a work-
shop run by the California
Teachers’ Association union in
2013, he said he was shocked
to learn how much in fees he
was paying on his retirement
account, which he had started
investing in during the early
1990s. He also learned that,
sometimes, investment advis-
ers defray administrative fees
in return for the opportunity
to pitch products to teachers.
Mr. Reed switched from in-
vestments that charged about
2% a year to choices that cost
around 1/10 as much. “The ad-
viser in the lunchroom is there
to make a buck,” he said.
Larry Meltzer, a spokesman
for SchoolsFirst Credit Union,
a member-owned cooperative
that includes school-district
employees, says that its retire-
ment advisers “always act in
the best interests of our mem-
bers.”
At issue is what is called a
403(b) plan. It is similar to the
401(k) offered in the private
sector. But teachers with
403(b) accounts are far more
likely to have high-cost invest-
ments, according to state se-
curities regulators.
Many of roughly 20 teach-
ers interviewed for this story
said they assume their school
districts have bargained on
fees and are acting in their
best interests. But unlike
401(k) plans, whose overseers
have a fiduciary duty under
federal law to put participants’
interests first, federal law puts
no such onus on most school
districts and outside firms
that administer 403(b) ac-
counts.
* *** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
Frontier Airlines Faces Bias Suits
News Corp...................B4
Exxon Mobil................B1 New York Life Insurance
F .....................................B1 BY LAUREN WEBER
NortonLifeLock ......... B13
Facebook ........ A2,A11,B1
Nova Cold Logistics....B6
Fannie Mae ................. B1 When Renee Schwartzkopf,
Fiat Chrysler...............A6 P a flight attendant with Frontier
Ford Motor ............ A6,B3 Peloton Interactive...B14 Airlines, gave birth in 2017, she
Freddie Mac ................ B1 Peugeot.......................B3 didn’t tell her employer that
Fresh Direct ................ B6 Philip Morris she planned to breast-feed her
Frontier Group ............ B2 International...........B14
Preferred Freezer
son after returning to work.
G Ms. Schwartzkopf said she
Services.....................B6
General Motors.....A6,B3 knew of another flight atten-
Greystar Real Estate
R
dant who had asked to pump
Partners....................B6 Rastegar Property......B6
milk during flights and was told
H-I RXR Realty..................B6
Hudson's Bay..............B5 S in her family at the time, she
Saudi Arabian Oil ....... B8
Imperial Brands ........ B14 couldn’t afford to lose her in-
Sherwin-Williams.....B13
J-K come if she requested permis-
Société Générale.......B12
Johnson & Johnson....A6 sion and was denied, then
Sonder.........................B6
J.P. Morgan...............B12
Starboard Value........B12
forced to choose whether to
Steel Dynamics...........A6 quit or take unpaid leave.
L Sun Life Financial.......B1 Instead she pumped in air-
BLOOMBERG NEWS
Lineage Logistics Synovus Trust...........B13 plane lavatories during or be-
Holdings....................B6 T tween flights, worried her milk
Lyric Hospitality.........B6 was unsanitary or had spoiled
Tenneco .......................B3
M Tyson Foods...........A6,B6
while in storage, she said. The
McAfee......................B13 process was so stressful, she
W
McDonald's................B14 stopped after a few months. “I The carrier denied accusations it discriminated against pregnant pilots and flight attendants.
Walmart......................B6
Mednax......................B12 was nervous and scared that
WeWork Companies...B6
MetLife........................B1 someone might turn me in to lege, were penalties for ab- is Frontier Group Holdings reau of Labor Statistics. Three-
WPP Global.................B4
Morgan Stanley........B12 the company, that I’d get fired sences related to pregnancy, re- Inc. “Frontier offers a number quarters of the 104,000 flight
Y or get in trouble,” the 35-year- quirements to take unpaid leave of accommodations for preg- attendants were women.
N
You & Mr Jones........B12 old said. before their due dates, and nant and lactating pilots and For many years, airlines
Nationwide Mutual
Insurance .................. B2 Z Ms. Schwartzkopf is among Frontier’s refusal to honor re- flight attendants within the subjected flight attendants to
Netflix.......................B13 Zeus Living..................B6 eight women who sued Fron- quests for temporary ground as- bounds of protecting public weight restrictions and forced
tier on Tuesday in two lawsuits signments or other accommoda- safety, which is always our top them to resign if they got mar-
alleging pregnancy discrimina-
tion, one on behalf of pilots
and one on behalf of flight at-
tions so they could continue
breast-feeding after returning to
work, though employees with
priority. Frontier denies the al-
legations and will defend vig-
orously against these law-
ried or pregnant. Airlines
maintained height require-
ments for pilots, effectively ex-
Normand, John ......... B12 tendants. In complaints that other medical conditions re- suits.” cluding many women from the
could have broader implica- ceived such accommodations. The airline industry has profession.
Gordon, Julia...............B1 R
tions for the airline industry, “Frontier Airlines has long struggled with gender The Affordable Care Act re-
I Reinhart, Vincent.......A2 the women say they faced strong policies in place in sup- discrimination, and its labor quires U.S. workplaces to offer
Icahn, Carl...................B3 S “mounting obstacles once they port of pregnant and lactating force remains one of the most break time for expressing
Sewing, Christian.....B12 became pregnant that forced mothers and remains commit- segregated along gender lines. breast milk along with private,
Sikaria, Khushbu.........B6 them to make impossible ted to treating all of its team Of the 119,000 aircraft pilots non-bathroom spaces for that
.
Levkovich, Tobias......B12
Singh, Sumi...............B14 choices between their families members equally and fairly,” and flight engineers employed purpose, but the federal rules
ly
M-N Stoeckle, Mark..........B13 and their livelihood.” said a spokeswoman for the in the U.S. in 2018, 9% were created several exemptions, in-
Malik, Hasnain............B8 Sullivan, Jay ............... A2 Among the obstacles, they al- airline, whose parent company women, according to the Bu- cluding for airlines.
said.
During the trial’s closing ar-
on suit in state court in Massa-
chusetts, whose attorney gen- New York newal, generally every one to
five years. That provides an op-
ployers, one of its main opera-
tions outside of property-
guments, the attorney gen- eral’s office has accused the portunity for insurers to react casualty insurance.
eral’s office dropped two of company of deceiving inves-
Life Eyes to the market and to changing This month, MetLife agreed
us l,
the four fraud counts from its tors about climate-change circumstances and protect to purchase pet-insurance
case. costs. themselves from inflation. company PetFirst Healthcare
al a
e
Lawyers for Exxon argued
the office shouldn’t be allowed
to drop those counts and that
The Massachusetts suit also
accuses Exxon of violating a
state consumer-protection law
Cigna Unit Group products also gener-
ally need less capital to back
them up, compared with life
LLC, expanding into a growing
industry.
In an August note, analyst
ci on
the company deserved a rul- by conducting a deceptive insurance and annuities sold Matthew Borsch of BMO Capi-
ing. marketing campaign. Continued from page B1 to consumers that carry life- tal Markets suggested that
Justice Ostrager said by The company also faces maintained a strong overseas time income or other decades- Cigna’s divestiture of the busi-
finding the attorney general shareholder lawsuits in federal presence. long guarantees. ness would be viewed posi-
hadn’t proved the Martin Act- courts in Texas and New Jer- U.S. insurers have been ea- In 2017, Aetna Inc., now tively, as it is “only marginally
er rs
related counts, his ruling also sey that allege violations of ger to enlarge their group- part of CVS Health Corp., synergistic with the rest of
established the company federal securities law and ac- benefits businesses. agreed to sell a similar busi- [the company], yet slower
wasn’t liable on the other cuse the company of deceiving In contrast to many products ness unit. In that deal, Hart- growing and recently more
fraud counts, which carry a investors. sold by life insurers to consum- ford Financial Services Group volatile.”
m e
higher burden of proof. In all those cases, Exxon ers, group policies can be re- Inc. nearly doubled its busi- —Vipal Monga
Exxon faces a similar law- has denied wrongdoing. priced when they are up for re- ness of selling benefits to em- contributed to this article.
m rp
Annuities Popular
In 403(b) Plans
$1.06 trillion in assets at the
end of the second quarter, ac-
rangement constituted an in-
centive for SchoolsFirst to
steer clients to invest in
Buy Pure U.S. Government Gold
And Silver Coins At Spot prices!
cording to ICI. How this large ProAccount, saying it is there
co Fo
chunk of retirement money is to defray SchoolsFirst’s costs
invested has implications for in administering ProAccount. 1OZ $50 Gold Eagle
According to a report from
the Investment Company Insti-
postwork life for teachers and
other school workers, and it is
“Our salaried retirement ad-
visers are not compensated for $1461. 00
tute, a mutual-fund trade increasingly drawing scrutiny. suggesting this option,” Mr. 1OZ $1 Silver Eagle
group, more than half of the In addition to the SEC Meltzer said.
assets in 403(b) plans are in- probe, New York state’s De- Managed mutual-fund ac- $17. 00
vested in annuities—insurance partment of Financial Services counts such as ProAccount Limited Quantity
contracts that often provide is investigating a dozen life in- layer annual fees on top of
monthly income for a lifetime.
Though teachers and others
value annuities for their guar-
surers to determine whether
they or their agents are selling
teachers potentially high-cost
money-management fees. An-
nual costs in ProAccount begin
with a 0.6% program fee for Gold Depot Store Inc.
1-866-920-1287
anteed payouts, many annui- and inappropriate investments, portfolio management. When 7491 N. Federal Hwy www.golddepotstore.com
ties carry high costs that con- the Journal previously reported. mutual-fund expenses are fac- Suite 206 Member ANA PCGS NGC EBAY ID
n-
sume a significant portion of Like a 401(k) plan, a 403(b) tored in, that brings the total Boca Raton, FL 33487 Freedomcoin500 100% pos feedback
an investor’s returns over time. is voluntary and allows work- cost to between 1% and 1.2%,
Annuity buyers can pay as ers to contribute up to depending on the fund, a Na-
much as 3% of invested assets $19,000 a year, or $25,000 if tionwide spokesman said.
no
in fees each year. In contrast,
fees on 401(k) accounts aver-
50 or older, to tax-advantaged
investment accounts. School
Mr. Meltzer said less than
5% of SchoolsFirst participants
The Ultimate Reading Light
age less than 1% annually, ac- districts often require teachers use ProAccount, which entails
cording to BrightScope Inc., a to meet with 403(b) or other the investors being placed into Often imitated. Never equaled.
firm that tracks retirement- benefit program administrators funds based on age and risk
plan data. For $100,000 in- to verify personal information. tolerance. He adds that advis-
vested for 25 years at 6%, an The meetings can become an ers sell it only to teachers who "I love my new lamp.
extra 2 percentage points in opportunity for the administra- specify they want the option. Nothing has ever given
fees would cut 38% from the tor or investment-company Tom Baumgarten, the su-
account value. Across the representatives to sell other perintendent of Mr. Reed’s me the excellent light
country, 403(b) plans held products. school district, the Morongo this lamp provides."
Unified School District in - Anne G.
Twentynine Palms, Calif., said
As a result, some third say. The administrator’s web- in an email that SchoolsFirst
party administrators offer site doesn’t disclose the pay- officials have told the district
teachers investment options ments; the administrator tells that “they openly discuss all
mainly from companies willing teachers about the fee ar- options to participants.”
to pay them to promote their rangement if they ask, Mr. On its website, SchoolsFirst Our hybrid technology
products, including by defray- Meltzer said. lauds Nationwide, saying:
ing some or all of a plan’s ad- Nationwide pays Schools- “Their experience, expertise delivers over 8K lumens of
ministration costs. First 0.05% of the assets and performance with mutual crisp, clear, healthy light.
More than 200 school dis- teachers invest in ProAccount, funds and other retirement
tricts in California have re- Mr. Meltzer said. SchoolsFirst products is considered out-
tained SchoolsFirst Plan Ad- doesn’t receive commensurate standing.”
Eliminates fatigue, tension,
ministration to administer SchoolsFirst, however, eye strain, headaches, and
workers’ 403(b) plans. The doesn’t note that the all-in bleary eyes.
200
districts don’t pay it for those costs of the main Nationwide
services, said Mr. Meltzer, the offering—averaging $141 a
SchoolsFirst spokesman. year per $10,000 invested, ac-
Rather, SchoolsFirst is paid by
the companies approved by Districts in California that use
cording to data website
403bCompare.com—are dou- SAVE 25%*
school districts to provide in- SchoolsFirst services ble those of some other in- Promo Code WS19D
vestments to workers. vestment companies.
Middlemen like Schools- Nationwide regulatory fil- 888-328-8701
First routinely help teachers ings describe the company’s
and other school employees compensation for investment practice of paying third-party
microsun.com
choose investments. That is in other options. administrators fees for assets
where the possible conflicts The arrangement repre- placed in ProAccount. These
can arise. sents an undisclosed conflict, can be as much as 0.25% of as- The professional's choice
In Mr. Reed’s California said Dan Alexander, founder of sets annually, the filings say. since 1995.
school district, a unit of Na- RetireAware, a company that Low-cost investment pro-
tionwide Mutual Insurance analyzes plans for risks and viders such as Vanguard Group
Co. makes additional pay- conflicts of interest. “If you’re and Fidelity Investments say
ments to SchoolsFirst when a third-party administrator, they don’t pay fees to third-
teachers invest in a higher- you should not be paid off by party administrators to pro-
cost Nationwide program an asset manager,” he said. mote their products as other
called ProAccount, both Both Nationwide and Mr. higher-cost providers some-
SchoolsFirst and Nationwide Meltzer disputed that the ar- times do.
 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.
Apollo Bids for Tenneco Powertrain Division
Offer of an adjusted
$4.3 billion likely to
be rejected by the
auto-parts maker
BY BEN DUMMETT
AND MIRIAM GOTTFRIED
Apollo Global Management
Inc. has made an offer to ac-
quire auto-parts supplier Ten-
neco Inc.’s powertrain division,
according to people familiar
with the matter.
Apollo’s bid is valued at
$4.3 billion, the people said.
However, it includes several
adjustments and doesn’t as-
sume pension and other liabili-
ties linked to the powertrain
division, significantly lowering
Chinese Auto Sales Extend Their Slump, but Pace Eases
BEIJING—Chinese auto
sales fell for the 17th straight
month in November, though
the pace of decline eased, as
the world’s biggest auto mar-
ket becomes more saturated
and a slowing economy sees
buyers cut spending.
Auto sales fell 3.6% last
month from a year earlier to
2.46 million vehicles, the gov-
ernment-backed China Associ-
ation of Automobile Manufac-
turers said Tuesday, an
improvement from October’s
4.0% year-over-year drop.
The prolonged slump in auto
sales underscores a new reality
in a market where car sales
grew constantly for nearly
three decades—at times by
double-digit percentages from
the year before. Industry exec-
utives, analysts and dealers
have cited various factors for
the doldrums, including a satu-
ration of cars in the market,
policy changes such as a recent
shift to tougher emissions
standards, and a sluggish econ-
omy in which consumers have
less to spend on cars.
The pain has been pro-
nounced for U.S. auto makers.
Through the first 11 months of
alexa
the year, the combined market
FREE INSIDE THE
no
THE MENS ISSUE
’Tis the season for Rodrigo Santoro,
star of ‘Westworld’ and ‘Love Actually’
3NYP101
the bid’s overall value, accord-
ing to some of the people. For
that reason, Tenneco is likely
to reject the bid, some of the
people said.
Tenneco’s stock price has
sunk more than 50% this year
as its heavy debt load and a
global slowdown in the auto
sector have hamstrung its ef-
forts to split itself into two
publicly traded entities. Shares
of Tenneco rose nearly 8% to
$14.27.
The auto-parts supplier,
which counts activist investor
Carl Icahn as its largest share-
holder with a nearly 10% stake,
announced its plan to split in
2018. In February, the company
said it expected to complete
the effort in the second half of
this year. Then in October it
on
us l,
Beijing’s halt in subsidies for electric vehicles is a factor in the decline. A GM electric-car dealership.
al a
e
share for American compa-
nies—most notably Ford Mo-
ci on
tor Co. and General Motors
Co.—shrank by 1.5 percentage
points, while those of German
and Japanese car makers
grew, CAAM data showed. Chi-
er rs
nese auto makers’ combined
share fell 3 points during the
period.
m e
m rp
co Fo
n-
NY
BUSINESS NEWS
said it may struggle to finalize
the split by mid-2020 and that
it was evaluating “multiple
strategic options to deleverage
and facilitate the separation.”
Tenneco’s challenge in part
is figuring out how to divide
its debt between the power-
train business, which Apollo is
pursuing, and its DriV auto-
parts unit. At the end of Sep-
tember, Tenneco’s long-term
debt stood at $5.41 billion.
That compares with a market
value of about $1.1 billion for
the company’s stock.
Mr. Icahn acquired his posi-
tion in 2018 after selling auto
supplier Federal-Mogul to Ten-
neco in a deal that valued the
target at $5.4 billion, including
debt.
The Lake Forest, Ill.-based
Chen Shihua, deputy secre-
tary-general of the auto indus-
try association, said the recent
easing in the pace of the sales
decline is a sign that car mak-
ers have been able to adjust
production to meet a tougher
emissions standard that was
introduced in many areas
across the country in July.
OUT
TODAY
Wednesday, December 11, 2019 | B3
auto-parts maker operates two electric motors instead of gas- ness to existing shareholders.
key businesses. One supplies oline or diesel engines and At the end of October, Ten-
products such as chassis parts, transmissions. neco forecast a 6% year-over-
shocks, emission-control sys- Internal-combustion engines year drop in light-vehicle pro-
tems and brakes used in cars are expected to remain the duction for the fourth quarter.
and other light and commer- dominant powertrain in vehi- It also indicated then that the
cial vehicles. The second builds cles globally for a decade or commercial-truck market is
and distributes powertrain more, analysts say. But many showing signs of slowing.
equipment—the propulsion car companies are sharply cur- Apollo’s offer fits with the
technology that runs cars. tailing investment in that area buyout firm’s strategy of ac-
Car makers from Ford Mo- while steering capital toward quiring out-of-favor businesses
tor Co. in the U.S. to Germany’s the development of electric ve- that other bidders consider too
Daimler AG and their suppliers hicles, hurting the growth complex to turn around. Ten-
face shrinking customer de- prospects for legacy power- neco’s powertrain business
mand amid slowing economic train businesses. also is taking steps to address
growth and the U.S.-China In October, Germany’s Con- growing demand for cleaner
trade war. tinental AG shelved plans for cars, developing systems
Suppliers of traditional an initial public offering that aimed at lowering harmful
powertrain components also would have sold part of its emissions to take advantage of
are scrambling to adapt as powertrain division, which greater demand for hybrid ve-
auto makers pour money into holds most of its legacy, pre- hicles.
the development of electric ve- electric technology. Instead, it —Mike Colias
hicles, which use batteries and decided to spin off the busi- contributed to this article.
Auto sales in China have fallen sell off its stake in a joint ven-
for 17 straight months. ture with one of its Chinese
partners, Chongqing Changan
Change from previous year in Automobile Co. Changan is
vehicle sales also planning to exit from the
November venture, according to a recent
25% 2.46 million vehicles filing by the Shenzhen-listed
t3.6% company.
20
Another factor behind the
15 continued decline is weak
sales of new-energy vehicles, a
10 category that includes electric
5 cars, after the government
halted most subsidies in June.
.
0 Sales of new-energy vehicles
ly
GILLES SABRIE/BLOOMBERG NEWS
dropped for the fifth consecu-
–5 tive month, by 43.7% to 95,000
–10 vehicles, in November.
While January-November
–15 new-energy-vehicle sales rose
1.3% from the same period last
–20
year, CAAM’s Mr. Chen said
2017 ’18 ’19 full-year sales are likely to be
Source: China Association of Automobile lower compared with 2018.
Manufacturers via Haver In a signal China isn’t giv-
ing up on electric-vehicle
The shift to the new stan- economy, and next year it will adoption in its broader battle
dard was a messy transition continue to face pressure. against pollution, the govern-
for auto manufacturers and Many analysts expect flat or ment said this month it hopes
caused confusion for dealers, negligible growth for overall new-energy vehicles will ac-
many of whom tried to sell off auto sales in China next year. count for about a quarter of
vehicles that didn’t meet the Some foreign auto makers all new vehicle sales by 2025.
new standards. have been particularly hard The target was raised from an
Mr. Chen said the overall hit. France’s PSA Group, which earlier goal of 20% or more.
market is still far from recov- makes Peugeot-brand cars, re- —Raffaele Huang
ery considering the macro- cently said it is preparing to and Yoko Kubota
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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, December 11, 2019 * * THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Facebook Amazon Retrains

Argument More of Its Staff
Resonates
Continued from page B1
on Facebook’s privacy policies
For Digital Future
disputed her premise. BY CHIP CUTTER Still, Amazon has made
“The trend runs directly missteps in its retraining ef-
counter to what Dina is argu- WASHINGTON—When Am- forts, Ms. Galetti said.
ing,” the person said, citing the azon.com Inc.’s top human-re- A program called Amazon
company’s release of a feature sources executive considers Career Choice pays 95% of tu-
allowing users to review and the skills the retail giant ition and fees for certificates
block ads, based on their inter- might need in its workforce and degrees in high-demand
net activity. “We haven’t de- going forward, she has a quick fields such as nursing, work
graded privacy protection; answer. that could take staffers out-
we’ve increased it.” “The most consistent thing side of Amazon.
Facebook, Alphabet Inc.’s we see that’s changing is the Early in the program, the
Google and Amazon.com Inc. need for some level of techni- company offered to pay for
built empires based on free or cal skills in any job,” Beth Gal- training in professions such as
near-free products and ser- etti, the company’s senior vice aircraft mechanics even when
vices, remaking the economy in president of world-wide HR, workers would have had to
sometimes controversial ways said Tuesday at The Wall change cities to find work in
without raising prices and Street Journal CEO Council the field.
sometimes lowering them. gathering. Amazon has since had to
Ms. Srinivasan published Amazon is in the midst of “curate our programs down,”
her paper just months before retraining a third of its U.S. matching education with jobs
the Federal Trade Commission workforce, spending $700 mil- available in the existing com-
and a coalition of state attor- lion over roughly six years to munity, she said.
neys general said that they help everyone from fulfill- To unearth insights about
were weighing potential anti- ment-center workers to soft- its workforce, Amazon now
IAN BATES FOR THE WALL STREET JOURNAL

trust cases against Facebook ware engineers prepare for has more than 600 engineers
Ms. Srinivasan consults on new types of work. But one of and developers building tools
the digital ad market and is the challenges for companies
currently working with The in helping workers gain skills,
Wall Street Journal’s parent management experts say, is Beth Galetti,
company, News Corp. The determining the needs of an the company’s
Journal separately has a com- organization years in advance. senior vice
mercial agreement to supply Ms. Galetti said the trend is president of
news through Facebook. clear: More jobs now involve human
While Ms. Srinivasan’s argu- working with advanced soft- resources
ment has been well received on ware or machines, even in
the legal-conference circuit, Dina Srinivasan says Facebook harmed consumers by demanding ever-increasing amounts of data. fields that might not have tra-

.
some believe it would face a ditionally required such digital

chillier reception in court. third child and chose not to sit
“You’re facing a case in for the bar exam. Instead, she
which there is no precedent, co-founded a digital ad tech-
you have no pricing and you nology company while raising onpromised to put prospective
can’t look at the normal fac- her four children. She sold its
tors,” said Clark Waddoups, a technology to a division of
federal judge in Utah and a for- WPP Global, took a job with
mer antitrust litigator at an its then-subsidiary Kantar Me-
us l,
Some early efforts were
turned back after user protest,
and in 2009 Facebook even
change to its terms of service
up for a user vote. By Ms.
Srinivasan’s thinking, these
concessions were driven at
measurement of ad effective-
ness, even though many users
had said they objected to being
tracked.
Ms. Srinivasan isn’t advo-
cating a breakup of Facebook
or forcing it to unwind some of
its major acquisitions, such as
ly
acumen. Fulfillment-center
workers in warehouses must
understand how to work
alongside automated tools, she
said. Software engineers will
need a deeper understanding
of more advanced skills, such
as machine learning.
for the company’s HR team.
Those employees work on
projects for employees, such
as giving the company a sense
of what motivates staffers.
One recent takeaway? Ms. Gal-
etti said Amazon’s data has
shown that employees don’t

October antitrust conference at dia, then quit in 2017.
which Ms. Srinivasan gave a Her paper draws on her own
al a
e
presentation. history: She recalls signing up
Born in Seattle but raised as a Facebook user while a law
mostly in Lebanon, Ms. Srini- student because it seemed to
ci on
least in part by competition.
But as Facebook’s market
share grew, the company re-
scinded users’ prospective veto
power. In 2014, Facebook an-
WhatsApp or Instagram.
Instead, she would prefer
that Facebook be forced to
change certain business prac-
tices, including how it tracks
In the past five years, Ama-
zon has seen a 500% growth in
roles such as data scientists
and networking and security
engineers, she said.
leave a job because of a man-
ager, as many might expect.
“The No. 1 thing that causes
our employees to stay or leave
is whether they have access to

vasan moved back to the U.S. be a less rapacious form of so-
alone at the age of 16 to finish cial media than competitors.
high school. She founded an Later, as a specialist in the
early text-messaging startup in structure of the digital ad mar-
college, then went to law ket, she watched as Facebook
er rs
nounced it would track users
through the login and like but-
tons embedded in millions of
news sites, online retailers and
games.
users when they are off the
company’s platforms.
“It would be a mistake to go
after Facebook and not include
the pattern and practice of de-
“It’s just explosive from the
technical side,” Ms. Galetti
said. “So we need to find ways
to give those skills to
the…breadth of employees
do meaningful work,” she said.
“Are they actually able to see
the impact they’re having? We
will lose employees if we don’t
satisfy that need much faster

school. By the time Ms. Srini- increasingly tried to track its The expansion benefited ceptive conduct which allowed that we have, in ways that will than if they’re working for a
vasan graduated from Yale in users elsewhere on the inter- Facebook and advertisers it to track users across the allow them to evolve as the manager they may not get
2006, she was expecting her net. through better targeting and web,” she said. environment evolves.” along with as well.”
m e
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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.
Boeing’s Plane Deliveries Lag as MAX Idles
BY DOUG CAMERON
Boeing Co. said it delivered
24 jets in November, a modest
improvement from a month
earlier that still leaves the
plane maker likely to hand
over less than half as many air-
craft in 2019 as last year.
The company said Tuesday
that it has delivered 345 com-
Luxury Weakness
Brings Down Sales
For Owner of Saks
BY DAVE SEBASTIAN
AND SUZANNE KAPNER
Hudson’s Bay Co. reported
wider losses and lower de-
mand, especially for luxury
goods, as the department-
store operator faces compet-
ing bids to take the company
private.
The owner of Saks Fifth Av-
enue on Tuesday reported rev-
enue of 1.84 billion Canadian
dollars (US$1.39 billion) for
the three months ended Nov.
2, down from C$1.89 billion in
the year-earlier quarter.
Sales at stores operating for
at least 13 months declined
1.7%. Digital sales rose 15%
from a year earlier.
Hudson’s Bay Chief Execu-
tive Helena Foulkes said luxury
shoppers took a pause across
the industry beginning in Au-
gust, which depressed sales for
the latest period. She said busi-
ness has picked up in the past
eight weeks, boding well for
the holiday season and the cur-
rent quarter’s results.
The company posted a
C$226 million loss for its just-
NY Wednesday, December 11, 2019 | B5
BUSINESS NEWS
mercial jets and military vari- vices to bolster its balance say next week that it will wide-body jets in November, Boeing’s final 2019 tally
ants of its jetliners so far this sheet. The MAX, which has freeze its dividend for 2020, two more than the same month hinges on whether the com-
year. That puts Boeing on pace been grounded globally, has yet ending an eight-year run of in- last year, though its dozen 787 pany can resume MAX deliver-
to deliver well below half the to be recertified by regulators. creases. Its 2019 payout of Dreamliner handovers still trail ies by year-end. The Wall
806 planes delivered in 2018. The big swing in deliveries about $1.2 billion a quarter the 14-a-month production Street Journal reported the
The freeze on deliveries of has pressured the company’s li- represented a 20% rise. rate. company hoped to secure regu-
MAX aircraft following two fa- quidity, even after Boeing sus- Boeing’s 24 deliveries for In addition to the Dreamlin- latory approval to hand over
tal crashes has left the com- pended its stock-buyback pro- November compare with 79 ers, Boeing last month handed some jets this month, though
pany relying more on hand- gram that consumed $4 billion jets a year earlier and 20 in over two 737 NG aircraft, five new pilot training would pre-
overs of twin-aisle planes, in cash last year. October. 767s, four 777s and a 747 vent them from restarting pas-
defense equipment and ser- Analysts expect Boeing to Boeing said it delivered 22 jumbo. senger service until 2020.
ended fiscal third quarter, com-
pared with a year-earlier loss
of C$161 million.
Hudson’s Bay sold its re-
maining stakes in a European
real-estate and retail joint ven-
ture for C$1.5 billion during the
quarter, a move the company
said weighed on its bottom
line. Strategic changes in ven-
dor relationships also hurt
profit, it said.
Ms. Foulkes is eliminating
MARY ALTAFFER/ASSOCIATED PRESS
some 600 brands, while adding
75 new labels, at the company’s
Hudson’s Bay chain in Canada
in an effort to make its assort-
ment more upscale.
.
In October, an investor
ly
group led by Hudson’s Bay Ex-
ecutive Chairman Richard
Baker agreed to pay C$10.30 a
share in cash for the 43% stake on Hudson’s Bay, which is in the middle of a takeover battle, posted a wider quarterly loss. Saks Fifth Avenue shoppers in New York.
in the retailer that it didn’t al-
ready own. The offer, which C$11 a share, to take over the of votes cast by independent startup Le Tote Inc. Ms. Foulkes said the pull-
was increased from earlier in retailer. The Canadian private- shareholders to proceed. For the latest quarter, Saks back in spending by high-in-
the year, valued the company at equity firm said the tentative The company has struggled Fifth Avenue’s comparable sales come shoppers led to mark-
us l,
roughly $1.4 billion. agreement undervalued Hud- with problems that have af- fell 2.3%; a year earlier, they downs, but that promotions
Last month, however, Cata- son’s Bay. fected many retailers, includ- were up 7.3%. Comparable sales have returned to a more nor-
al a
e
lyst Capital Group, a major in- Hudson’s Bay has scheduled ing the shift to e-commerce at the Hudson’s Bay chain fell mal level in the current quarter.
vestor in Hudson’s Bay, moved a shareholder vote on Mr. and the rise of new online 3.9%, while discount chain Saks The company’s shares fell
to derail the management-led Baker’s proposal for Tuesday. It competitors. It recently sold Off 5th notched 4.9% growth, 2.9% to C$8.78 on the Toronto
ci on
buyout, offering $1.5 billion, or needs the support of a majority the Lord & Taylor chain to driven by strong digital sales. Stock Exchange.
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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, December 11, 2019
Landlords Are the New Hoteliers
Apartment operators
embrace short-term
rentals to cash in
on the rise of Airbnb
BY KONRAD PUTZIER
Property owners once saw
short-term rental listing sites
like Airbnb Inc. as a threat.
Now, some are embracing
them.
Startups such as Sonder
Corp., Domio Inc. and Lyric
Hospitality Inc. typically lease
blocks of furnished apartments
on the same floor or even en-
tire buildings under long-term
deals. Then they turn around
and rent them out to travelers
for stays of a few weeks or as
short as one night.
These apartment operators
aim to appeal to travelers who
prefer larger accommodations
than a standard hotel room
but want a more predictable
experience than renting from
an amateur host. For property
owners, these firms offer the
prospect of renting out a large
number of units at once, as
opposed to waiting until a new
development gradually fills up
with individual tenants.
Property developer Grey-
star Real Estate Partners re-
cently agreed to lease 100
units in a San Diego develop-
ment to Lyric, part of the 26-
year-old firm’s recent push
into the short-term rental
market, said Greystar’s chief
executive, Bob Faith.
“We could have just contin-
ued to put our head in the
sand and say ‘it’s not happen-
ing,’ ” he said of the growing
popularity of Airbnb and other
short-term rentals. “Or we
could really try to more deeply
understand what’s driving this
and how we might be able to
respond to this need.”
The Charleston, S.C.,-based
company, which owns more
than 167,000 rental units and
manages 525,000, also plans to
ADVERTISEMENT
Business Real Estate & Services
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
 
THE PROPERTY REPORT
Renderings of the lobby and lounge of Domio Wynwood, an apartment development in Miami
manage its own short-term
apartments. The firm would
also make it easier for tenants
to sublet their units via listing
sites. In return, Greystar
us l,
would take a commission.
Developer RXR Realty is
al a
e
converting several floors in
two of its New York City office
buildings into hotel suites in
ci on
partnership with Airbnb and
managed by hospitality com-
pany AKA. It is a model RXR
hopes to expand to other
er rs
m e
m rp
co Fo
on buildings.
Domio recently agreed to
lease a 175-unit apartment de-
velopment in Miami’s Wyn-
wood area, while Rastegar
Property Co. in October leased
all of a 26-story Dallas apart-
ment building to Sonder.
Local regulatory issues are
a sticking point. Airbnb has
run into increasing trouble as
local governments in New
York, San Francisco and Miami
Beach, Fla., take action against
THE WALL STREET JOURNAL.
local laws, but property own-
ers acknowledge that regula-
tions could become stricter in
the future.
“Regulatory risk is abso-
lutely something that we need
to pay attention to,” Mr. Faith
said.
Many landlords ban their
tenants from subletting via
Airbnb, a practice they worry
could bring in unscreened visi-
tors or run afoul of local laws
in some cities. Some are bet-
ting that teaming with profes-
sional operators offers the
benefits of short-term rent-
als—potentially higher income
and more diverse sources of
revenue—without the risks.
Most short-term rental opera-
tors say they do background
checks on anyone who books
one of their apartments.
“It’s not just opening the
doors wide and having zero
accountability,” said David Ab-
benante, president of the
property management division
at developer HRI Properties.
When HRI leased units in a
New Orleans apartment build-
ing to short-term rental opera-
tor Stay Alfred in 2017, the
company restricted the lease
to less than a year in case the
business wasn’t a success.
THE RELATED GROUP (2) The growing interest from
landlords comes as venture
capital continues to pour into
the short-term rental manage-
ment industry.
.
Sonder and Lyric, which
ly
rent out furnished apartments
by the night, have raised $210
million and $80 million in
these rentals, placing limits on funding rounds this year, re-
apartment rentals for less than spectively. Zeus Living and
30 days, and others could fol- Blueground, which rent out
low suit. furnished apartments for 30-
These actions followed day-plus stays, raised $55 mil-
complaints from neighbors lion and $50 million in two re-
who object to hordes of tour- cent funding rounds.
ists, and housing advocates “There’s a huge financial
who say short-term rentals are appeal to incorporating this
limiting the available rental model,” said Khushbu Sikaria,
stock. vice president of innovation
Startups such as Lyric and and product development at
Domio say they make sure development and property
their apartments comply with management firm Bozzuto.
High Rise
Soaring property prices in large Chinese cities
are squeezing people into smaller spaces.
Beijing
Shanghai
New-home price Rental price index
40,000 yuan per square meter 300
30,000 250
20,000 200
10,000 150
Investors
Warm Up
To Cold
Storage
BY ESTHER FUNG
With the booming growth of
online grocery sales and rising
consumer demand for fresh
produce, property investors
are trying to cash in on the
places where grocers and de-
livery companies store all their
food.
Customers of these cold-
storage warehouses are some
of the biggest names in the
food business, from manufac-
turers like Tyson Foods Inc. to
grocery chains such as Kroger
Co. and big food sellers like
Walmart Inc. Online grocers
such as FreshDirect LLC also
use temperature-controlled
spaces.
Now—similar to the way
real-estate investors flocked to
distribution centers to profit
from the rise of online shop-
ping—investors are starting to
pile into cold-storage ware-
houses.
Analysts say it is a business
poised for rapid growth but
one that involves more risks
than owning other real estate,
including typical industrial
warehouses that hold books,
mobile phones or sweaters.
During the first three quar-
ters this year, investors bought
$1.9 billion of refrigerated
warehouses, up from $1.77 bil-
lion for all of 2018, and higher
than any year in the past de-
cade, according to data firm
Real Capital Analytics.
While there are hundreds of
companies that own refriger-
ated warehouses in the U.S.,
the sector is consolidating as
the biggest players buy up
smaller competitors.
Just two firms—Lineage
Logistics LLC and Americold
Realty Trust—control 63% of
the cold-storage warehouses
held by the top 25 owners in
North America, according to
the International Association
of Refrigerated Warehouses.
Last month, Americold said
it would acquire Canada-based
Nova Cold Logistics, which
owns three locations, for 337
million Canadian dollars
(US$254.7 million). It also
completed the purchase of two
facilities in Maryland and
Pennsylvania.
Shares of Americold, the
only publicly listed real-estate
investment trust focused on
cold storage, have been on a
tear.


The stock’s total returns are
up 42% this year, compared
0 100 with the broader MSCI U.S.



 

2009 ’11 ’13 ’15 ’17 2009 ’11 ’13 ’15 ’17 ’19 REIT Index, which rose 26%.
Note: 10,000 yuan=$1,418 Having a big portfolio
Source: Wind shields the firm from fluctua-
tions in the agriculture or sea-

 
   
    Chinese Housing Gets food businesses, said Fred Boe-
hler, chief executive officer of
n-

Americold.
  
     


 
      
A WeWork Renovation “Whether there is a bad
harvest or cattle shortages, we
as consumers, are still going to
no

In China, a crowd of start- cost is borne by the apartment eat,” he said. “If beef is down,


     
     ups is looking to cash in on a operators, who also guarantee you’re going to eat chicken or
hot real-estate market by dis- the loans. pork.”
   !" #!"!$  rupting the way apartments
are rented.
These companies have
found a niche in part because
The push for more cold
storage is also going global.
As property prices have rent in China is often due Lineage, the world’s largest re-
!
"    

 # $ soared in Beijing, Shanghai quarterly rather than monthly. frigerated-storage company by
and other large cities in recent Rent-installment loans ease storage capacity, last month
years, many young workers the burden on young people said it would pay more than
and new graduates have been who would have a hard time $900 million to acquire Emer-
% &"&"   
   squeezed into renting spaces forking out three months’ rent gent Cold to expand in Asia.
within apartments—and that at one go, said Irwin Liu, a Lineage bought rival Preferred
%&&"% '  is where “apartment opera-
tors” have stepped in. These
Shanghai-based director at
Colliers International Group
Freezer Services LLC for more
than $1 billion this year.
       
' &  companies sign long-term Inc., a real-estate services “Cold-storage used to be a
leases with landlords and sub- firm. cottage industry where a com-
       
(   lease to individuals, typically
after renovating and partition-
One potential pitfall of
working through a middleman:
pany would own three or four
buildings,” said Greg Lehmkul,
ing, though they also sublet Financial trouble for the Lineage’s chief executive, in an
(
 
  

 entire apartments. apartment operator can mean interview last month.
In some ways, the business eviction for the tenant. Young Despite shifting consumer
model resembles that of U.S. people forced out of their tastes toward fresher foods
office-space startup WeWork, apartments have held protests and delivery convenience, the
applied to residential housing, in cities including Hangzhou, business of storing food comes
said James MacDonald, head Nanjing and Xi’an over the with plenty of risks that own-
of Savills China research: Sign past 18 months, but have ers of distribution centers for
a multiyear lease on an apart- mostly had little recourse. nonperishables don’t face.
ment—generally bare and un- There is no data on the to- In the 1990s, real-estate
furnished—transform it into tal amount of rent-installment companies like Vornado Realty
livable spaces and hope to loans outstanding or the num- Trust and Crescent Real Estate
sublet at a higher rate. ber of apartment operators in Equities Co. suffered from
Also like WeWork, many China. But Hu Jinghui, chair- greater-than-expected capital
present themselves as technol- man of the China Alliance of and labor costs associated with
ogy companies, the argument Real Estate Agencies, an in- cold storage and exited from
being that they use mobile dustry organization, estimates the business in the 2000s.
apps to manage their dealings that more than 70 Chinese Operators of cold-storage
with tenants and partners. apartment operators that facilities generally have to hire
Apartment operators also managed more than 500,000 more staff to manage the facil-
commonly arrange loans to apartment units have run into ities and handle services such
help tenants pay the rent. The financial trouble since 2017. as packing and unpacking food
money is typically lent by When apartment operators for distribution.
banks or online lenders for 12 fail, the losses are largely Cold-storage warehouses
or 24 months, and goes to the borne by tenants and land- can also cost three times more
startup, which uses it to cover lords, said Mr. Hu, referring to to build than those for dry
renovations, marketing and the companies’ widespread goods, according to real-estate
 %     
  
  ) '*  &"+   , 
 

  --. -$
-$  
 
 *  ) '/
) '/
/ &"
&"+
+ other business needs. Individ- use of rent-installment loans firm CBRE Group Inc.
ual renters repay the lender, to fund themselves. —Jennifer Smith
usually with no interest—that —Zhou Wei 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, December 11, 2019 | B7

        
    


    


  
 


 


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on
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ci on
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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.

B8 | Wednesday, December 11, 2019 THE WALL STREET JOURNAL.

BUSINESS NEWS

Aramco Sounds Out

Investors on Asia IPO
Saudi officials have held
meetings in recent weeks with
international investors to
gauge their views on a possi-
ble listing of Aramco’s shares
in Asia, according to people
familiar with the matter, a
sign Saudi Arabia still hopes
to attract the foreign capital it
failed to draw with its record-
breaking domestic IPO.
By Benoit Faucon,
Summer Said
and Rory Jones
Saudi Arabian Oil Co.’s
shares will begin trading on
the domestic Saudi exchange
on Wednesday, after the initial
public offering’s pricing last
week valued the company at
$1.7 trillion. The firm said it
would sell a 1.5% stake for a
SAUDI ARAMCO/EPA/SHUTTERSTOCK
The officials signaled they
would only begin a formal
pursuit of an international
listing next year, which would
likely take place in Japan or
China, the people said.
While Aramco’s domestic
stock-market debut attracted
more than $106 billion in in-
stitutional orders, demand has
come largely from Saudi and
Mideast investors, rather than
foreign buyers in the U.S., Eu-
rope and Asia.
Non-Saudi institutional in-
vestors were allocated about
23% of the total 2 billion
shares available for profes-
sional buyers, or roughly $3.94
billion, according to a state-
ment Tuesday from the lead
underwriter. Saudi regional al-
lies Abu Dhabi and Kuwait had
committed roughly $2.5 billion
vestors would buy into an
Aramco listing staged outside
Saudi Arabia, according to
Saudi officials and financial
professionals in contact with
the company. Many interna-
tional banks had raised con-
cerns about the $1.7 trillion
valuation and the regulatory
standards in Saudi Arabia.
One of Saudi Arabia’s origi-
nal goals from a share sale had
been to draw capital that
would boost the government
purse. The current IPO is
drawing little international
cash and falls short of Crown
Prince Mohammed bin Sal-
man’s initial aim to generate
$100 billion by selling more of
the company.
“It’s a missed opportunity,”
Hasnain Malik, head of equity
strategy at London-based fi-

total of $25.6 billion, making it
the world’s largest ever IPO.
As the company filled its
order book for the domestic
IPO in November, Aramco offi-
cials held meetings with finan-
cial professionals to discuss
how it might lure foreign in-
vestors to an international
Saudi Arabia still hopes to attract the foreign capital it failed to draw with Aramco’s domestic IPO. share sale, the people said.
to the listing, according to
people familiar with the pro-
cess, indicating about $1.5 bil-
lion in total came from the re-
gion and overseas.
The lukewarm global re-
sponse has led Aramco execu-
tives to initiate conversations
in recent weeks with financial
institutions about whether in-
nancial bank Tellimer, said of
the Saudi decision to price the
IPO at $1.7 trillion.
Pricing Aramco based on
global market sentiment
would have boosted the pro-
ceeds and sent a message that
Saudi Arabia is “interested to
engage active institutional in-
vestors,” Mr. Malik said.

Borrowing Benchmarks | WSJ.com/bonds

.
Money Rates December 10, 2019

ly
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions.
Week —52-WEEK— Week —52-WEEK— Week —52-WEEK— Week —52-WEEK—
Inflation Latest ago High Lowon Latest ago High Low Latest ago High Low Latest ago High Low Notes on data:
Oct. index Chg From (%) U.S. prime rate is the base rate on
Policy Rates High 1.6000 1.6200 3.0000 1.5200 60 days 3.318 3.309 4.338 2.890 Six month 1.87863 1.89538 2.90788 1.87863
level Sept. '19 Oct. '18 corporate loans posted by at least 70% of
Euro zone 0.00 0.00 0.00 0.00 Low 1.4500 1.4500 2.4400 1.4000 One year 1.93288 1.93663 3.11238 1.85313 the 10 largest U.S. banks, and is effective
U.S. consumer price index Switzerland 0.50 0.50 0.50 0.50 Bid 1.5300 1.5300 2.4400 1.5200 Other short-term rates October 31, 2019. Other prime rates aren’t
All items 257.346 0.23 1.8 Britain 0.75 0.75 0.75 0.75 Offer 1.5500 1.5500 2.5000 1.5400 Euro Libor directly comparable; lending practices
us l,

Australia 0.75 0.75 1.50 0.75 Week 52-Week

Core 265.059 0.20 2.3 Latest high low One month -0.513 -0.520 -0.407 -0.522 vary widely by location; Discount rate is
Treasury bill auction ago
effective October 31, 2019. DTCC GCF Repo
Overnight repurchase Three month -0.437 -0.452 -0.324 -0.482
International rates 4 weeks 1.500 1.620 2.470 1.500 Call money Index is Depository Trust & Clearing
al a

Six month -0.388 -0.393 -0.288 -0.474

e
U.S. 1.56 1.59 3.40 1.50 13 weeks 1.520 1.560 2.465 1.520 Corp.'s weighted average for overnight
3.50 3.50 4.25 3.50 One year -0.290 -0.290 -0.159 -0.428
Week 52-Week
U.S. government rates 26 weeks 1.520 1.565 2.505 1.520 trades in applicable CUSIPs. Value traded
Latest ago High Low Commercial paper (AA financial) Value 52-Week is in billions of U.S. dollars. Federal-funds
ci on

Discount Secondary market Latest Traded High Low rates are Tullett Prebon rates as of 5:30
90 days 1.75 1.81 2.78 1.63
Prime rates 2.25 2.25 3.00 2.25 p.m. ET.
U.S. 4.75 4.75 5.50 4.75 Fannie Mae Libor DTCC GCF Repo Index
Sources: Federal Reserve; Bureau of
Canada 3.95 3.95 3.95 3.95 Federal funds 30-year mortgage yields One month 1.73563 1.70363 2.52238 1.69113 Treasury 1.589 45.150 6.007 1.588 Labor Statistics; DTCC; FactSet;
Japan 1.475 1.475 1.475 1.475 Effective rate 1.5500 1.5700 2.4800 1.5500 30 days 3.306 3.302 4.319 2.871 Three month 1.88725 1.89150 2.82375 1.88500 MBS 1.608 77.750 6.699 1.592 Tullett Prebon Information, Ltd.
er rs

ADVERTISEMENT

Business Real Estate & Services

m e

To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds

m rp
co Fo
n-
no
 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, December 11, 2019 | B9

COMMODITIES WSJ.com/commodities BONDS WSJ.com/bonds

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest Tracking Bond Benchmarks
Metal & Petroleum Futures Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
March 13.38 13.49 13.31 13.46 .08 459,931
Contract Open May 13.42 13.54 13.37 13.51 .08 202,463
highs and lows for different types of bonds
Open High hi lo Low Settle Chg interest Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Total Total
Copper-High (CMX)-25,000 lbs.; $ per lb. March 26.41 26.41 26.35 26.36 .05 2,427 return YTD total Yield (%) return YTD total Yield (%)
Dec 2.7500 2.7570 2.7460 2.7555 0.0090 3,141 May 26.66 26.66 26.66 26.66 … 1,526 close return (%) Index Latest Low High close return (%) Index Latest Low High
March'20 2.7535 2.7700 2.7485 2.7655 0.0070 143,882 Cotton (ICE-US)-50,000 lbs.; cents per lb.
Gold (CMX)-100 troy oz.; $ per troy oz. March 65.74 66.23 64.88 65.93 .55 118,618 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Dec 1460.70 1467.20 1460.70 1462.60 3.30 1,407 May 66.68 67.22 65.92 66.90 .50 34,130
Feb'20 1466.30 1473.70 1464.20 1468.10 3.20 497,085 2124.14 8.7 U.S. Aggregate 2.340 2.060 3.470 2138.27 6.1 Mortgage-Backed 2.570 2.200 3.550
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
April 1471.60 1478.90 1469.70 1473.70 3.20 88,275 97.55 99.05 97.15 98.85 1.70 13,099 5.6
Jan U.S. Corporate Indexes Bloomberg Barclays 2092.61 Ginnie Mae (GNMA) 2.540 2.090 3.510
June 1475.60 1483.70 1475.10 1478.80 3.20 64,407 March 100.25 101.80 99.90 101.65 1.60 4,386
Aug 1481.40 1488.60 1481.20 1484.10 3.30 14,223 14.2 1259.49 6.2 Fannie mae (FNMA) 2.580 2.250 3.560
3131.55 U.S. Corporate 2.890 2.770 4.320
Dec 1490.60 1496.50 1489.70 1493.20 3.40 10,414 Interest Rate Futures
Palladium (NYM) - 50 troy oz.; $ per troy oz. 2878.38 9.7 Intermediate 2.500 2.360 4.050 1936.44 6.3 Freddie Mac (FHLMC) 2.590 2.230 3.590
Dec 1861.00 1870.00 s 1852.00 1871.30 12.50 45 Ultra Treasury Bonds (CBT) - $100,000; pts 32nds of 100%
Jan'20 … … … 1871.20 12.50 n.a. Dec 186-110 187-160 186-040 186-280 16.0 6,433 4545.24 23.9 Long term 3.590 3.480 4.930 565.24 6.9 Muni Master 1.620 1.459 2.637
March 1853.40 1875.00 s 1851.40 1869.10 12.50 23,543 March'20 185-280 186-230 185-040 186-010 15.0 1,202,606
June 1849.20 1868.40 s 1849.20 1863.50 11.70 2,170 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 637.02 10.5 Double-A-rated 2.390 2.190 3.660 398.30 7.6 7-12 year 1.589 1.386 2.632
Sept 1828.20 1857.10 s 1857.10 1856.70 11.50 135 Dec 158-310 159-140 158-140 158-280 3.0 12,619
Platinum (NYM)-50 troy oz.; $ per troy oz. March'20 158-030 158-170 157-190 158-020 3.0 962,069 826.59 15.7 Triple-B-rated 3.180 3.110 4.690 452.47 8.8 12-22 year 1.923 1.741 3.054
Dec 892.00 893.00 886.50 920.50 24.10 23 Treasury Notes (CBT)-$100,000; pts 32nds of 100% High Yield Bonds ICE Data Services 440.58 9.8 22-plus year 2.404 2.185 3.548
Jan'20 897.20 926.70 895.70 922.60 24.10 67,193 Dec 129-025 129-075 128-270 128-300 –2.0 24,630
Silver (CMX)-5,000 troy oz.; $ per troy oz. March'20 129-015 129-070 128-255 128-295 –1.5 3,596,230 460.30 12.8 High Yield Constrained 5.691 5.681 8.107 Global Government J.P. Morgan†
Dec 16.555 16.610 16.555 16.596 0.064 919 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March'20 16.655 16.770 16.625 16.702 0.060 159,468 Dec 118-155 118-180 118-100 118-115 –2.0 35,451 422.22 5.7 Triple-C-rated 12.194 10.558 13.784 584.79 6.4 Global Government 1.020 0.690 1.680
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March'20 118-235 118-267 118-180 118-195 –2.2 4,144,956
Jan 58.92 59.52 58.52 59.24 0.22 338,500 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% 3148.50 12.5 High Yield 100 4.853 4.853 7.825 806.53 4.2 Canada 1.670 1.260 2.210
Feb 58.80 59.40 58.46 59.14 0.22 298,719 Dec 107-180 107-186 107-156 107-157 –1.5 46,493
March 58.51 59.13 58.18 58.88 0.24 243,826 416.01 12.5 Global High Yield Constrained 5.437 5.437 7.561 402.12 7.5 EMU§ 0.479 0.109 1.261
March'20 107-232 107-244 107-207 107-210 –1.6 3,501,924
April 58.10 58.75 57.85 58.53 0.25 120,508 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 6.4
326.28 10.5 Europe High Yield Constrained 2.861 2.749 4.869 765.03 France 0.240 -0.160 0.880
June 57.20 57.92 57.00 57.72 0.29 204,916 Dec 98.4425 98.4475 98.4400 98.4400 –.0025 232,259
Dec 54.87 55.53 54.65 55.42 0.42 204,824 Jan'20 98.4450 98.4450 98.4400 98.4400 .0000 442,281 U.S Agency Bloomberg Barclays 539.81 4.0 Germany -0.170 -0.590 0.340
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Jan 1.9431 1.9693 1.9300 1.9655 .0213 106,647 Dec 97-230 97-235 97-110 97-165 1.0 90,787 1766.33 5.9 U.S Agency 1.900 1.700 2.990 297.87 2.0 Japan 0.190 -0.070 0.420
March 1.9326 1.9600 1.9229 1.9556 .0193 69,108 March'20 102-020 102-110 101-315 102-045 1.0 9,357
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Eurodollar (CME)-$1,000,000; pts of 100% 1556.37 4.3 10-20 years 1.800 1.620 2.900 600.31 4.7 Netherlands -0.050 -0.490 0.460
Jan 1.6529 1.6668 1.6408 1.6525 –.0023 123,726 Dec 98.1150 98.1150 98.1050 98.1050 –.0100 1,552,831
Feb 1.6552 1.6690 1.6436 1.6560 –.0009 65,243 3843.73 13.6 20-plus years 2.350 2.010 3.440 1009.65 7.8 U.K. 1.100 0.730 1.650
March'20 98.2950 98.3000 98.2750 98.2800 –.0150 1,595,210
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 98.3800 98.3950 98.3550 98.3600 –.0200 1,316,626 2718.71 10.8 2.690 2.470 3.990
Jan 2.253 2.289 2.216 2.264 .032 334,991
June Yankee 869.63 12.8 Emerging Markets ** 4.941 4.941 7.127
Dec 98.4400 98.4600 98.4000 98.4050 –.0300 1,245,342
Feb 2.258 2.279 2.219 2.263 .029 179,689 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
March 2.208 2.227 2.178 2.218 .025 217,936
April 2.149 2.170 2.133 2.165 .020 117,230
Currency Futures ** EMBI Global Index Sources: ICE Data Services; Bloomberg Barclays; J.P.Morgan
May 2.165 2.189 2.153 2.186 .021 100,180 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Oct 2.297 2.319 2.287 2.317 .014 71,024 Dec .9212 .9219 .9197 .9201 –.0009 131,704
March'20 .9268 .9273 .9252 .9256 –.0008 66,065 Global Government Bonds: Mapping Yields
Agriculture Futures Canadian Dollar (CME)-CAD 100,000; $ per CAD
Dec .7553 .7562 .7548 .7558 –.0001 129,623 Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Corn (CBT)-5,000 bu.; cents per bu. March'20 .7557 .7566 .7552 .7563 … 39,221
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Dec 365.75 367.00 362.50 363.25 –2.50 1,286 British Pound (CME)-£62,500; $ per £
March'20 376.00 378.00 375.00 377.00 1.25 790,678 Dec 1.3148 1.3218 1.3135 1.3207 .0056 186,613 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Oats (CBT)-5,000 bu.; cents per bu. March'20 1.3186 1.3258 1.3175 1.3248 .0058 55,620 Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
March 295.25 297.00 290.75 294.75 –.50 5,472 Swiss Franc (CME)-CHF 125,000; $ per CHF 1.500 U.S. 2 1.662 s l 1.621 1.670 2.729
May 288.50 293.00 288.50 292.00 … 249 Dec 1.0127 1.0174 1.0123 1.0172 .0046 63,637
Soybeans (CBT)-5,000 bu.; cents per bu. March'20 1.0198 1.0245 1.0194 1.0244 .0048 11,067 1.750 10 1.842 s l 1.821 1.942 2.861
Jan 897.50 902.25 896.25 901.25 4.00 294,225 Australian Dollar (CME)-AUD 100,000; $ per AUD
March 912.00 916.75 911.00 915.50 3.75 262,040 Dec .6825 .6838 .6801 .6816 –.0017 139,905
5.750 Australia 2 0.765 t l 0.770 0.902 1.932 -89.6 -85.2 -79.7
Soybean Meal (CBT)-100 tons; $ per ton. March'20 .6839 .6852 .6815 .6830 –.0017 39,532 2.750 10 1.117 t l 1.162 1.302 2.450 -72.4 -65.9 -41.1
Dec 296.40 297.50 295.60 296.90 .20 1,246 Mexican Peso (CME)-MXN 500,000; $ per MXN
March'20 302.00 303.80 301.00 302.40 .20 142,165 Dec .05197 .05205 .05186 .05196 –.00001 227,944 0.000 France 2 -0.595 t l -0.581 -0.577 -0.435 -225.7 -220.2 -316.4
Soybean Oil (CBT)-60,000 lbs.; cents per lb. March'20 .05133 .05144 .05125 .05134 –.00001 61,141
0.000 10 0.020 s l 0.014 0.023 0.694 -180.7 -216.7
Dec 31.17 31.54 31.17 31.47 .11 811 Euro (CME)-€125,000; $ per € -182.2
March'20 31.86 32.06 31.64 31.95 .09 190,457 Dec 1.1068 1.1102 1.1067 1.1101 .0031 485,650 0.000 Germany 2 -0.624 s l -0.632 -0.612 -0.572 -228.5 -225.3 -330.1
Rough Rice (CBT)-2,000 cwt.; $ per cwt. March'20 1.1137 1.1172 1.1136 1.1170 .0032 171,964
Jan 1243.50 1249.00 1241.50 1245.00 … 6,586 0.000 10 -0.292 s l -0.305 -0.260 0.246 -213.4 -212.6 -261.4

.
March 1265.50 1269.00 1262.50 1264.50 –2.50 2,867 Index Futures 0.050 Italy 2 -0.145 t l -0.106 -0.109 1.012 -180.7 -172.7 -171.8
Wheat (CBT)-5,000 bu.; cents per bu.

ly
Dec 532.25 537.50 529.75 534.75 2.75 485 Mini DJ Industrial Average (CBT)-$5 x index 3.000 10 1.253 t l 1.286 1.182 3.097 -58.8 -53.5 23.7
March'20 522.75 528.00 519.25 523.75 1.00 205,163 Dec 27901 27959 27726 27921 19 96,687
Wheat (KC)-5,000 bu.; cents per bu. March'20 27891 27955 27715 27914 19 9,622 0.100 Japan 2 -0.117 s l -0.118 -0.178 -0.145 -177.9 -173.9 -287.4
Dec ... ... ... 416.00 4.50 12 S&P 500 Index (CME)-$250 x index
Dec 3122.80 3142.50 3116.80 3136.00 1.50 27,665 0.100 10 -0.022 t l -0.005 -0.060 0.041 -186.3 -182.6 -281.9
March'20 426.25 434.75 423.50 431.25 5.25 162,464
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Jan
March
141.425 142.500
142.275 143.300
140.925 141.650
141.675 142.525
.125
.250
20,108
14,569 Dec
on
March'20 3140.50 3142.00
Mini S&P 500 (CME)-$50 x index
3133.50 3143.00
March'20 3135.50 3145.25
3128.00 3138.30

3116.25 3136.00
3118.25 3138.25
1.60

1.50 2,560,706
1.50 373,030
204 0.050
0.600
Spain 2 -0.378 s
10 0.460 s
l
l
-0.379
0.456
-0.381
0.388
-0.104
1.441
-204.0
-138.2
-200.0
-136.5
-283.3
-141.9
Cattle-Live (CME)-40,000 lbs.; cents per lb. 3.750 U.K. 2 0.596 s l 0.591 0.556 0.683 -106.6 -103.0 -204.7
Dec 120.375 120.550 119.825 119.875 –.300 15,304 Mini S&P Midcap 400 (CME)-$100 x index
us l,

Feb'20 125.025 125.175 124.350 124.575 –.175 169,028 Dec 2012.80 2016.80 1999.60 2012.60 –.80 76,165 1.625 10 0.802 s l 0.766 0.794 1.061 -104.0 -105.5 -179.9
Hogs-Lean (CME)-40,000 lbs.; cents per lb. March'20 2008.50 2018.50 2002.50 2015.00 –.50 126
Dec 60.175 60.750 59.925 60.475 .475 15,721 Mini Nasdaq 100 (CME)-$20 x index Source: Tullett Prebon
Feb'20 67.050 68.375 66.700 67.975 1.275 118,374 Dec 8354.50 8398.00 8297.00 8363.75 7.75 202,233
al a
e
March'20 8376.30 8420.80 8319.30 8386.75 9.25 8,580
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Jan 397.10 399.20 391.00 392.70 –6.70 2,200 Mini Russell 2000 (CME)-$50 x index Corporate Debt
March 404.70 406.70 399.00 400.30 –7.00 703 Dec 1630.00 1636.00 1619.10 1633.50 3.10 477,301 Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
ci on

Milk (CME)-200,000 lbs., cents per lb. March'20 1633.60 1638.30 1621.50 1635.90 3.20 16,675
Dec 19.45 19.52 19.35 19.43 –.08 4,563 Mini Russell 1000 (CME)-$50 x index that same company’s share price.
1733.80 1736.60 1728.00 1731.30 –2.20 7,232
Jan'20 18.64 18.64 18.32 18.40 –.24 4,430 Dec
March'20 … 1627.90 1627.90 1732.90 –2.30 915
Investment-grade spreads that tightened the most…
Cocoa (ICE-US)-10 metric tons; $ per ton. Spread*, in basis points Stock Performance
Dec 2,646 2,646 2,629 2,673 27 51 U.S. Dollar Index (ICE-US)-$1,000 x index
Dec 97.62 97.63 97.37 97.39 –.22 35,343 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
March'20 2,604 2,615 2,572 2,585 –16 127,567
Coffee (ICE-US)-37,500 lbs.; cents per lb. March'20 97.20 97.20 96.94 96.95 –.23 10,725
Apache APA 4.375 Oct. 15, ’28 248 –22 278 20.93 1.45
Dec 129.60 130.85 s 129.60 132.05 4.75 343
er rs

UBS AG UBS 7.625 Aug. 17, ’22 114 –21 103 11.94 –0.67
March'20 128.85 134.40 s 128.40 133.30 4.90 124,197 Source: FactSet
Morgan Stanley Finance MS 0.250 Oct. 25, ’24 –108 –16 n.a. … …
International Flavors & Fragrances IFF 4.450 Sept. 26, ’28 122 –12 n.a. 133.99 0.13
Cash Prices | WSJ.com/commodities Tuesday, December 10, 2019 Kohls KSS 4.250 July 17, ’25 137 –11 n.a. 48.04 ...
Bank of Montreal* BMO 2.550 Nov. 6, ’22 25 –10 34 75.53 0.19
m e

These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— HSBC Holdings HSBC 4.000 March 30, ’22 41 –10 n.a. 36.71 –0.33
separate from the futures price on an exchange, which reflects what the commodity might be worth in future SunTrust Bank STI 2.450 Aug. 1, ’22 38 –10 54 ... ...
months.
m rp

Tuesday Tuesday Tuesday …And spreads that widened the most

Platinum,Engelhard fabricated n.a. Wheat,No.2 soft red,St.Louis-bp,u 5.8500 Ford Motor Credit F 4.140 Feb. 15, ’23 167 24 185 … …
Energy Palladium,Engelhard industrial 1903.0 Wheat - Hard - KC (USDA) $ per bu-u 4.2875 Toyota Motor Credit TOYOTA 2.625 Jan. 10, ’23 32 14 n.a. ... ...
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 61.900 Palladium,Engelhard fabricated n.a. Wheat,No.1soft white,Portld,OR-u 5.9100
Aluminum, LME, $ per metric ton *1766.0 Walgreens Boots Alliance WBA 3.800 Nov. 18, ’24 125 12 122 58.41 –0.51
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.800 Food
Copper,Comex spot 2.7555 Pitney Bowes PBI 4.700 April 1, ’23 384 11 n.a. 4.86 ...
Metals Iron Ore, 62% Fe CFR China-s 93.2 Beef,carcass equiv. index Lloyds Bank 2.250 Aug. 14, ’22 52 10 54 ... ...
co Fo

LLOYDS
Shredded Scrap, US Midwest-s,m 271 choice 1-3,600-900 lbs.-u 195.38
Gold, per troy oz Steel, HRC USA, FOB Midwest Mill-s 557
Republic Services RSG 3.550 June 1, ’22 41 10 n.a. 88.54 –0.16
select 1-3,600-900 lbs.-u 177.27
Engelhard industrial 1468.00 Bristol–Myers Squibb BMY 3.250 Feb. 20, ’23 46 8 46 62.09 1.32
Fibers and Textiles Broilers, National comp wtd. avg.-u,w 0.8259
Engelhard fabricated n.a. Butter,AA Chicago 1.9400 Costco Wholesale COST 2.750 May 18, ’24 27 8 31 295.78 0.21
Handy & Harman base 1464.95 Burlap,10-oz,40-inch NY yd-n,w 0.5200 Cheddar cheese,bbl,Chicago 194.75
Handy & Harman fabricated 1626.10 Cotton,1 1/16 std lw-mdMphs-u 0.6343 Cheddar cheese,blk,Chicago 194.75 High-yield issues with the biggest price increases…
LBMA Gold Price AM *1463.60 Cotlook 'A' Index-t *75.35 Milk,Nonfat dry,Chicago lb. 126.25 Bond Price as % of face value Stock Performance
LBMA Gold Price PM *1461.70 Hides,hvy native steers piece fob-u 38.000 Coffee,Brazilian,Comp 1.2521 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Krugerrand,wholesale-e 1522.30 Wool,64s,staple,Terr del-u,w n.a. Coffee,Colombian, NY 1.6069
Maple Leaf-e 1536.94 Eggs,large white,Chicago-u 1.3250 FTS International FTSINT 6.250 May 1, ’22 64.250 4.25 50.250 ... ...
American Eagle-e 1536.94 Grains and Feeds Flour,hard winter KC 13.45 EnLink Midstream ENLC 5.375 June 1, ’29 92.250 4.00 85.250 5.62 14.46
Mexican peso-e 1772.84 Barley,top-quality Mnpls-u n.a. Hams,17-20 lbs,Mid-US fob-u 0.89 Genworth Holdings GNW 4.800 Feb. 15, ’24 97.250 3.29 93.500 4.35 4.57
Austria crown-e 1437.77 Bran,wheat middlings, KC-u 134 Hogs,Iowa-So. Minnesota-u 61.67
Austria phil-e 1536.94 Antero Resources AR 5.625 June 1, ’23 78.000 3.25 67.375 2.68 4.28
Corn,No. 2 yellow,Cent IL-bp,u 3.6600 Pork bellies,12-14 lb MidUS-u n.a.
Silver, troy oz. Corn gluten feed,Midwest-u,w 129.0 Pork loins,13-19 lb MidUS-u 0.8702 Tenneco TEN 5.000 July 15, ’26 89.875 3.22 85.220 14.28 7.77
Engelhard industrial 16.7000 Corn gluten meal,Midwest-u,w 398.1 Steers,Tex.-Okla. Choice-u n.a. Antero Midstream Partners AM 5.375 Sept. 15, ’24 88.750 2.75 85.000 5.55 7.98
Engelhard fabricated n.a. Cottonseed meal-u,w 253 Steers,feeder,Okla. City-u,w 158.00 Vertiv Intermediate Holding CORTNP 12.000 Feb. 15, ’22 104.000 2.75 95.250 ... ...
Handy & Harman base 16.6750 Hominy feed,Cent IL-u,w 112
Fats and Oils 6.250 May 1, ’26 74.750 2.72 70.313 2.75 0.36
n-

Handy & Harman fabricated 20.8440

Oasis Petroleum OAS
Meat-bonemeal,50% pro Mnpls-u,w 173
LBMA spot price *£12.6100 Oats,No.2 milling,Mnpls-u 3.1225 Corn oil,crude wet/dry mill wtd. avg.-u,w 30.5000
(U.S.$ equivalent) *16.6200 Rice, Long Grain Milled, No. 2 AR-u,w 25.25 Grease,choice white,Chicago-h 0.2300
…And with the biggest price decreases
Coins,wholesale $1,000 face-a 12281 Sorghum,(Milo) No.2 Gulf-u 7.2013 Lard,Chicago-u n.a. Ahern Rentals AHEREN 7.375 May 15, ’23 71.000 –5.75 n.a. ... ...
Other metals SoybeanMeal,Cent IL,rail,ton48%-u 299.70 Soybean oil,crude;Centl IL-u 0.3101 Tullow Oil TLWLN 6.250 April 15, ’22 83.250 –3.75 100.250 ... ...
*898.0 8.8450 0.2400
no

LBMA Platinum Price PM Soybeans,No.1 yllw IL-bp,u Tallow,bleach;Chicago-h

Platinum,Engelhard industrial 921.0 Wheat,Spring14%-pro Mnpls-u 6.6650 Tallow,edible,Chicago-u n.a.
Mallinckrodt Fin* MNK 4.750 April 15, ’23 37.500 –1.50 36.500 … …
Teva Pharmaceutical Finance Netherlands Iii TEVA 3.150 Oct. 1, ’26 81.750 –1.48 80.700 … …
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=American Commodities Brokerage Co; CBL & Associates CBL 5.250 Dec. 1, ’23 72.000 –1.00 73.250 1.05 –5.41
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 12/9 Vector VGR 10.500 Nov. 1, ’26 102.550 –0.91 102.250 13.05 2.43
Source: WSJ Market Data Group
Iron Mountain IRM 4.875 Sept. 15, ’29 102.125 –0.86 100.732 32.90 –0.30
Teck Resources TCKBCN 6.000 Aug. 15, ’40 109.624 –0.73 110.371 ... ...
Dividend Changes *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Dividend announcements from December 10. Sources: MarketAxess Corporate BondTicker; Dow Jones Market Data
Amount Payable / Amount Payable /
Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
STRATS Tr Allstate 2006-3 GJT 3.6 .0498 /.05113 M Jan02 /Dec31 ADVERTISEMENT
Increased
Initial
Business Real Estate & Auctions
Cmnty Bankers Acqu ESXB 1.3 .04 /.03 Q Jan02 /Dec20
Graco Inc GGG 1.3 .175 /.16 Q Feb05 /Jan21 Broadmark Realty Capital BRMK ... .12 M Jan15 /Dec31
Morningstar MORN 0.7 .30 /.28 Q Jan31 /Jan03 Stocks
Park Hotels & Resorts PK 7.4 .55 /.45 Q Jan15 /Dec31 Protalix BioTherapeutics PLX 1:10 /Dec20
To advertise: email sales.realestate@wsj.com or WSJ.com/classifieds
PNM Resources PNM 2.4 .3075 /.29 Q Feb14 /Feb03
Foreign
Reduced Global Indemnity GBLI 3.5 .25 Q Dec31 /Dec24 CALIFORNIA CALIFORNIA AUCTIONS
FR STRATSs 2006-2 GS Grp GJS 3.7 .052 /.05362 M Dec16 /Dec13 Watford 8.5% Pfd. WTREP 8.1 .55245 Q Dec31 /Dec15
STRATS Sers 2006-1 P&G GJR 3.3 .047 /.05432 M Dec16 /Dec13 Xinyuan Real Estate ADR XIN 10.5 .10 Q Jan16 /Dec18
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; Special
S2:1: stock split and ratio; SO: spin-off. support.com SPRT ... 1.00 Dec26 /Dec17

Exchange-Traded Portfolios | WSJ.com/ETFresearch    

Closing Chg YTD   

 
 
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
  
  

SchwabUS LC SCHX 74.92 –0.15 25.5
Tuesday, December 10, 2019 Closing Chg YTD
SPDR DJIA Tr DIA 279.46 –0.11 19.8  
ETF Symbol Price (%) (%)
Closing Chg YTD SPDR S&PMdCpTr MDY 367.30 –0.06 21.4

 

 
ETF
CnsmrDiscSelSector
Symbol Price (%) (%)
XLY 121.68 –0.17 22.9
iShMSCIBrazil
iShMSCI EAFE
EWZ
EFA
44.41
68.36
–0.40
0.04
16.3
16.3
SPDR S&P 500
SPDR S&P Div
SPY
SDY
313.53
106.48
–0.11
–0.30
25.5
18.9
 
  ! 
"
    
iShMSCI EAFE SC 61.80 0.05 19.3 TechSelectSector XLK 87.37 0.08 41.0   ! 
"
 
CnsStapleSelSector XLP 62.52 –0.32 23.1 SCZ
iShMSCIEmgMarkets EEM 43.05 0.35 10.2 UtilitiesSelSector XLU 62.98 –0.02 19.0
EnSelectSectorSPDR XLE 59.77 0.20 4.2
iShMSCIJapan EWJ 60.29 –0.05 18.9 VanEckGoldMiner GDX 27.13 0.78 28.6
FinSelSectorSPDR XLF 30.30 0.03 27.2  
   
iShNatlMuniBd MUB 113.99 0.02 4.5 VangdInfoTech VGT 233.60 –0.04 40.0
HealthCareSelSect XLV 99.93 0.22 15.5
iShPfd&Incm PFF 36.95 0.19 7.9 VangdSC Val VBR 134.68 –0.01 18.1
IndSelSectorSPDR XLI 80.70 –0.12 25.3
iShRussell1000Gwth IWF 170.25 –0.11 30.1 VangdSC Grwth VBK 194.45 –0.24 29.1 !'# 
InvscQQQI QQQ 203.90 –0.08 32.2     !"
iShRussell1000 IWB 173.90 –0.09 25.4 VangdDivApp VIG 122.09 –0.30 24.6
InvscS&P500EW RSP 112.84 –0.11 23.5

NOTABLE
InvscS&P500LowVol SPLV 57.39 –0.21 23.0
iShRussell1000Val IWD 134.22 –0.07 20.9 VangdFTSEDevMk VEA 43.13 0.09 16.3 #*+ , 
-./ 0-0
iShRussell2000Gwth IWO 210.48 0.09 25.3 VangdFTSE EM VWO 42.58 0.21 11.8
iSh3-7YTreasuryBd IEI 125.81 –0.10 3.6
162.61 21.4 56.56 0.09 16.3
-1 0.
-./ 203 ,
 -.
iShRussell2000 IWM 0.06 VangdFTSE Europe VGK
41.24 –0.10 24.3
0/ 4.056 75/ !6
0/--.
COMMERCIAL
iShCoreDivGrowth DGRO iShRussell2000Val IWN 126.29 0.15 17.4 VangdFTSEAWxUS VEU 52.46 0.13 15.1
iShCoreMSCIEAFE IEFA 64.38 0.09 17.1 iShRussell3000 IWV 183.68 –0.11 25.0 VangdGrowth VUG 176.22 –0.14 31.2 48-
0 -1.
5.

iShCoreMSCIEmgMk IEMG 51.70 0.25 9.7 iShRussellMid-Cap IWR 58.33 –0.12 25.5 VangdHlthCr VHT 186.94 0.16 16.4 !# 8# 19 :
0 ; 0

PROPERTIES
iShCoreMSCITotInt IXUS 60.62 0.08 15.4 iShRussellMCValue IWS 92.72 –0.01 21.4 VangdHiDiv VYM 91.99 –0.15 18.0
iShCoreS&P500 IVV 315.37 –0.10 25.3 iShS&P500Growth IVW 188.43 –0.17 25.1 VangdIntermBd BIV 87.31 –0.06 7.4 -. 5 </ 2. ,5
061.5.
-
iShCoreS&P MC IJH 201.43 –0.08 21.3 iShS&P500Value IVE 127.07 –0.04 25.6 VangdIntrCorpBd VCIT 91.12 –0.07 10.0 0.-5= 
iShCoreS&P SC IJR 82.37 –0.02 18.8 iShShortCpBd IGSB 53.56 –0.04 3.7 VangdLC VV 144.08 –0.07 25.4
70.91 –0.17 24.9
EVERY WEDNESDAY
iShS&PTotlUSStkMkt ITOT iShShortTreaBd SHV 110.50 ... 0.2 VangdMC VO 174.20 –0.07 26.1
iShCoreUSAggBd AGG 112.54 –0.04 5.7 iShTIPSBondETF TIP 116.50 –0.03 6.4 VangdMC Val VOE 116.84 0.05 22.7
iShSelectDividend DVY 103.60 –0.02 16.0 iSh1-3YTreasuryBd SHY 84.58 –0.05 1.1 VangdMBS VMBS 53.13 –0.21 3.2
iShEdgeMSCIMinEAFE EFAV 75.08 –0.11 12.6 iSh7-10YTreasuryBd IEF 110.93 –0.12 6.5 VangdRealEst VNQ 92.51 –0.58 24.1
iShEdgeMSCIMinUSA USMV 64.70
98.70
–0.11 23.5
28.6
iSh20+YTreasuryBd TLT 138.66 0.01 14.1 VangdS&P500ETF VOO 288.04 –0.09 25.3 (800) 366-3975
iShEdgeMSCIUSAQual QUAL –0.13
iShFloatingRateBd FLOT 50.94 0.02 1.2
iShRussellMCGrowth
iShUSTreasuryBdETF
IWP
GOVT
149.19
26.04
–0.15
–0.06
31.2
5.6
VangdST Bond
VangdSTCpBd
BSV
VCSH
80.52
80.88
–0.09
–0.05
2.5
3.8 sales.realestate@wsj.com 
iShGoldTr IAU 14.00 0.21 13.9 JPM UltShtIncm JPST 50.45 –0.01 0.6 VangdSC VB 162.52 –0.13 23.1 For more information visit:  
 
iShiBoxx$InvGrCpBd LQD 127.65 ... 13.1 PIMCOEnhShMaturity MINT 101.64 0.01 0.7 VangdTotalBd BND 83.93 –0.07 6.0
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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.

B10 | Wednesday, December 11, 2019 THE WALL STREET JOURNAL.

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
27881.72 t 27.88, or 0.10% Trailing P/E ratio 20.75 20.30 3132.52 t 3.44, or 0.11% Trailing P/E ratio * 24.36 21.33 8616.18 t 5.64, or 0.07% Trailing P/E ratio *† 26.15 21.17
High, low, open and close for each P/E estimate * 18.65 15.52 High, low, open and close for each P/E estimate * 19.18 16.45 High, low, open and close for each P/E estimate *† 23.15 18.65
trading day of the past three months. Dividend yield 2.25 2.32 trading day of the past three months. Dividend yield * 1.85 2.01 trading day of the past three months. Dividend yield *† 0.99 1.11
All-time high 28164.00, 11/27/19 All-time high 3153.63, 11/27/19 All-time high: 8705.18, 11/27/19

Current divisor 0.14744568353097

28000 3150 8750

65-day moving average

27500 3075 8550

27000 3000 8350

26500 2925 8150

Session high
DOWN UP
65-day moving average
t

Session open Close 26000 65-day moving average 2850 7950

Close Open
t

25500 2775 7750

Session low
Bars measure the point change from session's open
25000 2700 7550
Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec.
* Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.; † Based on Nasdaq-100 Index

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* 779,811,552 12,196,176
Industrial Average 27949.02 27804.00 27881.72 -27.88 -0.10 28164.00 21792.20 14.4 19.5 12.2 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 401,055,224 5,663,243
Transportation Avg 10696.52 10615.20 10629.87 -46.64 -0.44 11098.99 8637.15 8.1 15.9 4.2 Most-active issues in late trading Decl. volume* 364,448,415 6,254,660
Utility Average 854.86 850.59 852.58 0.80 0.09 880.50 692.00 12.6 19.6 9.7 Volume After Hours Issues traded 3,048 282
Company Symbol (000) Last Net chg % chg High Low
Total Stock Market 32157.21 32002.67 32062.89 -32.61 -0.10 32305.18 24126.04 18.3 24.6 10.8 Advances 1,496 138
VanEck Vectors Gold Miner GDX 9,258.9 27.11 -0.02 -0.07 27.14 27.08
Barron's 400 716.57 712.87 714.59 0.65 0.09 720.53 571.68 11.4 17.2 5.4 Declines 1,454 127
Yamana Gold AUY 8,452.5 3.54 ... unch. 3.55 3.53
Unchanged 98 17
Nasdaq Stock Market SPDR S&P 500 SPY 7,517.6 313.70 0.17 0.05 313.99 313.53 New highs 98 4
Nasdaq Composite 8650.76 8600.82 8616.18 -5.64 -0.07 8705.18 6192.92 22.5 29.9 16.5 Caesars Entertainment CZR 5,702.3 13.05 0.03 0.23 13.05 12.75 New lows 21 8
Nasdaq 100 8392.89 8339.37 8354.29 -8.45 -0.10 8444.71 5899.35 24.6 32.0 19.5 Finl Select Sector SPDR XLF 5,095.5 30.30 ... unch. 30.32 30.28 Closing Arms† 0.91 1.67
Danaher DHR 4,737.4 148.84 ... unch. 149.13 145.64 Block trades* 4,597 133
S&P
PG&E PCG 4,156.1 12.50 0.18 1.46 12.52 12.28

.
500 Index 3142.12 3126.09 3132.52 -3.44 -0.11 3153.63 2351.10 18.8 25.0 11.5 Nasdaq NYSE Arca
AXA Equitable Holdings EQH 3,830.7 24.21 -0.24 -0.98 24.45 24.21
2016.06 2007.54 -1.73 2030.78 1567.40 21.0

ly
MidCap 400 2011.75 -0.09 14.1 5.9 Total volume*2,080,918,335 167,614,988
SmallCap 600 1001.44 996.15 998.87 -0.19 -0.02 1002.13 793.86 11.3 18.2 5.2 Percentage gainers… Adv. volume*1,082,795,106 111,658,306
Ollie's Bargain Outlet OLLI 637.3 66.95 6.65 11.03 69.57 60.30 Decl. volume* 978,128,539 53,216,397
Other Indexes on Choice Hotels Intl CHH 651.8 101.18 3.90 4.01 109.79 97.28 Issues traded 3,285 1,620
Russell 2000 1633.74 1626.37 1631.71 2.10 0.13 1634.10 1266.93 13.3 21.0 5.5
Advances 1,652 728
NYSE Composite 13574.22 13521.24 13545.31 -9.77 -0.07 13607.62 10769.83 14.2 19.1 6.6 Baker Hughes BKR 309.2 23.00 0.66 2.95 23.00 22.34
Declines 1,518 842
Value Line 538.11 535.74 536.62 -0.56 -0.10 552.12 446.06 6.9 13.6 1.1 Plains All Amer Pipeline PAA 90.8 18.50 0.49 2.72 18.50 18.01
Unchanged 115 50
NYSE Arca Biotech 5100.39 5020.99 5089.81 48.50 0.96 5261.79 3890.37 12.8 20.6 17.4
Vera Bradley VRA 276.7 12.35 0.32 2.66 12.45 11.90
New highs 86 26
us l,

NYSE Arca Pharma 633.55 628.79 632.85 4.06 0.65 632.85 535.91 7.9 11.3 10.2 ...And losers New lows 61 5
KBW Bank 111.42 110.38 111.08 0.24 0.22 111.08 80.78 23.2 29.5 6.1 Iterum Therapeutics ITRM 121.2 2.85 -2.00 -41.24 5.04 2.14 Closing Arms† 0.98 0.45
al a
e
PHLX§ Gold/Silver 96.85 95.98 96.79 0.94 0.98 101.76 66.14 44.3 37.0 6.5 GameStop Cl A GME 2,689.9 5.50 -1.01 -15.51 6.70 5.00 Block trades* 10,621 927
PHLX§ Oil Service 72.61 70.98 71.53 0.06 0.09 102.39 59.66 -23.6 -11.3 -27.7 Aquestive Therapeutics AQST 60.9 6.42 -1.09 -14.51 7.51 5.99 * Primary market NYSE, NYSE American NYSE Arca only.
ci on

PHLX§ Semiconductor 1733.15 1715.96 1720.90 5.92 0.35 1742.93 1069.39 45.7 49.0 24.5 First BanCorp Puerto Rico FBP 399.1 10.17 -0.40 -3.78 10.57 10.17 †(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Cboe Volatility 16.90 14.93 15.68 -0.18 -1.13 36.07 11.54 -27.9 -38.3 10.1 Momenta Pharm MNTA 134.2 17.45 -0.62 -3.43 18.07 17.45 Arms of less than 1 indicates buying demand; above 1

Nasdaq PHLX Sources: FactSet; 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 3156.42 –4.77 –0.15 15.4 LMP Automotive Holdings LMPX 13.92 5.99 75.54 15.65 4.90 ... Francesca's Holdings FRAN 12.44 -7.39 -37.27 21.95 2.78 -30.9
m e

DJ Global Index 420.04 –0.57 –0.13 19.7 Venus Concept VERO 5.21 2.21 73.67 23.25 2.63 -66.3 Conn's CONN 13.65 -6.85 -33.41 27.57 13.45 -40.4
DJ Global ex U.S. 254.32 –0.40 –0.16 14.2 Eloxx Pharmaceuticals ELOX 6.92 1.48 27.21 14.74 2.87 -47.0 Chimerix CMRX 2.02 -0.51 -20.16 4.40 1.25 -41.1
Neoleukin Therapeutics NLTX 7.96 1.68 26.75 8.55 2.00 243.1 Construction Ptrs Cl A ROAD 16.73 -3.86 -18.75 20.79 7.70 91.0
m rp

Americas DJ Americas 737.83 –0.78 –0.11 24.3

Brazil Sao Paulo Bovespa 110672.01 –305.22 –0.28 25.9 Iterum Therapeutics ITRM 4.85 0.87 21.86 9.30 1.68 -34.5 Designer Brands DBI 14.23 -2.77 -16.29 30.73 13.88 -43.1
Canada S&P/TSX Comp 16950.70 –0.15 –0.001 18.3 Gritstone Oncology GRTS 10.87 1.66 18.02 27.28 7.00 -56.8 DarioHealth DRIO 7.11 -1.19 -14.34 18.60 3.44 -49.3
Mexico S&P/BMV IPC 42633.43 681.84 1.63 2.4 Alpine Immune Sciences ALPN 3.82 0.57 17.54 8.24 2.25 -22.2 Mohawk Group MWK 4.43 -0.69 -13.48 10.74 4.42 ...
Chile Santiago IPSA 3403.53 8.25 0.24 –9.5 Equillium EQ 4.75 0.70 17.28 15.50 2.56 -67.0 Weidai ADR WEI 3.33 -0.51 -13.28 13.63 3.21 -66.7
Boxwood Merger Cl A BWMC 10.08 1.48 17.20 10.43 8.42 ... Celyad ADR CYAD 10.45 -1.55 -12.92 25.36 8.10 -54.6
EMEA Stoxx Europe 600 405.34 –1.05 –0.26 20.0
co Fo

Sundance Energy SNDE 15.61 2.25 16.84 36.70 7.50 -51.2 Beyond Air XAIR 3.57 -0.50 -12.29 6.25 3.11 -12.9
Eurozone Euro Stoxx 396.54 –0.38 –0.09 20.7
Belgium Bel-20 3927.63 –14.88 –0.38 21.1 Microbot Medical MBOT 6.50 0.93 16.70 19.40 1.38 226.6 Sangamo Therapeutics SGMO 9.06 -1.26 -12.17 13.91 6.26 -22.9
Denmark OMX Copenhagen 20 1118.72 –1.73 –0.15 25.5 Avid Bioservices CDMO 6.82 0.97 16.58 7.15 3.37 34.3 DermTech DMTK 13.00 -1.77 -11.98 23.24 4.52 -36.3
France CAC 40 5848.03 10.78 0.18 23.6 Principia Biopharma PRNB 48.90 6.92 16.48 49.74 22.03 66.4 TuanChe ADR TC 1.99 -0.27 -11.81 7.80 1.90 -71.1
Germany DAX 13070.72 –34.89 –0.27 23.8 KLX Energy Services Hldgs KLXE 6.96 0.98 16.39 30.11 4.12 -72.2 Cabaletta Bio CABA 8.21 -0.90 -9.88 18.28 8.09 ...
15.3 Motus GI Holdings MOTS 2.35 0.33 16.34 4.99 1.43 -30.3 Molecular Templates MTEM 11.28 -1.21 -9.69 14.05 3.19 163.6
Israel Tel Aviv 1687.89 –0.25 –0.01
Italy FTSE MIB 23122.82 165.93 0.72 26.2
Netherlands AEX 599.93 –2.33 –0.39 23.0
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1454.23 –2.56 –0.18 36.1 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 55417.93 148.73 0.27 5.1
Spain IBEX 35 9321.10 –33.50 –0.36 9.1 Chesapeake Energy CHK 83,908 6.1 0.78 -1.82 3.57 0.55 GS Acquisition Holdings GSAH 20,959 9883 10.62 1.63 11.05 9.70
Sweden OMX Stockholm 661.27 –1.93 –0.29 25.9 Alerian MLP ETF AMLP 64,566 200.8 8.19 2.89 10.25 7.65 Principal US Mega-Cap USMC 1,992 8691 30.62 -0.13 30.80 23.78
Switzerland Swiss Market 10390.53 –44.36 –0.43 23.3 SPDR S&P 500 SPY 52,242 -12.0 313.53 -0.11 315.48 233.76 John Hancock Multi Finls JHMF 475 6694 40.90 -0.22 41.14 29.12
n-

18.3 Naked Brand Group NAKD 49,414 147.6 0.03 -1.01 1.20 0.03 Global X Health Well BFIT 320 5779 21.35 -0.65 21.65 16.81
Turkey BIST 100 108011.45 –774.61 –0.71
7.2
PG&E PCG 48,570 144.3 12.32 10.20 27.38 3.55 IQ 500 International ETF IQIN 2,123 4272 28.10 0.07 28.26 23.96
U.K. FTSE 100 7213.76 –20.14 –0.28
U.K. FTSE 250 20781.09 –141.55 –0.68 18.7 Bank of America BAC 41,579 -18.8 33.53 0.06 33.80 22.66 IQ S&P Hi Yd Low Vol Bd HYLV 239 3004 25.41 0.06 25.54 23.02
Danaher DHR 39,195 793.5 148.84 0.89 149.61 94.59 iSh Currency Hdg MSCI Cda HEWC 188 2750 27.07 -0.06 27.73 22.00
no

Asia-Pacific
VanEck Vectors Gold Miner GDX 36,299 -39.0 27.13 0.78 30.96 19.90 Neoleukin Therapeutics NLTX 3,333 2025 7.96 26.75 8.55 2.00
Australia S&P/ASX 200 6706.90 –23.13 –0.34 18.8
iShares MSCI Emg Markets EEM 34,791 -36.9 43.05 0.35 44.84 38.04 IQ Enhanced Core Bd US AGGE 900 1999 19.44 -0.05 19.60 18.36
China Shanghai Composite 2917.32 2.84 0.10 17.0
Ford Motor F 34,188 -3.2 9.07 0.67 10.56 7.41 Conn's CONN 9,333 1929 13.65 -33.41 27.57 13.45
Hong Kong Hang Seng 26436.62 –58.11 –0.22 2.3
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 40239.88 –247.55 –0.61 11.6 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 23410.19 –20.51 –0.09 17.0
Singapore Straits Times 3162.89 –16.93 –0.53 3.1 Track the Markets
South Korea Kospi 2098.00 9.35 0.45 2.8 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 11627.84 –32.93 –0.28 19.5 global stock indexes, bond ETFs,
Thailand SET 1552.96 … Closed –0.7
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: FactSet; Dow Jones Market Data
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Tues YTDchg Tues YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004315 23173 –0.1
Americas
Argentina peso .0167 59.7554 58.7 Europe
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2411 4.1470 6.8 Czech Rep. koruna .04344 23.020 2.7

U.S. consumer rates Selected rates and

Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar
Chile peso
.7558 1.3232
.001282 780.10
–3.0
12.4
Denmark krone
Euro area euro
.1484 6.7370 3.5
1.1094 .9014 3.4
notes and bonds major U.S. trading partners .000294 3406.50 Hungary forint .003350 298.50 6.6
Money market accounts Colombiapeso 4.9
A consumer rate against its
Ecuador US dollar 1 1 unch Iceland krona .008235 121.43 4.5
benchmark over the past year 4.00% Mexico peso .0519 19.2579 –2.0 Norway krone .1090 9.1778 6.2
Bankrate.com avg†: 0.57% 8%
Uruguay peso .02651 37.7200 16.5 Poland zloty .2586 3.8675 3.4
Rising Bank 2.00% One year ago Russia ruble .01575 63.493 –8.3
t
t 3.00
s
Yen Asia-Pacific
2.00% St. Louis, MO 888-222-9484 4 Sweden krona .1053 9.4990 7.3
Federal-funds WSJ Dollar index Australian dollar .6811 1.4682 3.5
UFB Direct 2.00% Switzerland franc 1.0160 .9843 0.3
.1422 7.0343
s
target rate 2.00 China yuan 2.3
1.50 0 Turkey lira .1722 5.8059 9.8
San Diego, CA 844-678-2718 Hong Kong dollar .1278 7.8271 –0.1
Money market Ukraine hryvnia .0423 23.6583 –14.7
t India rupee .01413 70.785 1.7
account yields 1.00 Vio Bank 2.02% 1.00 –4 s Euro UK pound 1.3155 .7602 –3.0
Tradeweb ICE Tuesday Close Indonesia rupiah .0000714 14010 –2.6
t Phoenix, AZ 888-999-9170 Japan yen .009198 108.71 –0.8 Middle East/Africa
0.50 HSBC Direct Savings 2.05% 0.00 –8 Kazakhstan tenge .002586 386.73 0.6 Bahrain dinar 2.6518 .3771 0.04
Blue Bell, PA 800-975-4722 1 3 6 1 2 3 5 710 30 Macau pataca .1240 8.0628 –0.1 Egypt pound .0619 16.1636 –9.8
0.00 2019 2 Malaysia ringgit .2401 4.1645 0.8 Israel shekel .2878 3.4751 –7.1
TAB Bank 2.10% month(s) years
J F M A M J J A S O ND New Zealand dollar .6545 1.5279 2.7 Kuwait dinar 3.2938 .3036 0.1
Ogden, UT 800-355-3063 maturity Pakistan rupee .00645 155.000 10.9 Oman sul rial 2.5976 .3850 –0.01
2019
Sources: Tradeweb ICE U.S. Treasury Close; Tullett Prebon; Dow Jones Market Data Philippines peso .0197 50.730 –3.4 Qatar rial .2747 3.640 0.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg Singapore dollar .7362 1.3584 –0.3 Saudi Arabia riyal .2667 3.7500 –0.04
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields South Korea won .0008400 1190.49 6.8 South Africa rand .0676 14.7913 3.0
Federal-funds rate target 1.50-1.75 1.50-1.75 1.75 l 2.25 1.25 Sri Lanka rupee .0055197 181.17 –0.9
Yield (%) 52-Week Total Return (%) Taiwan dollar .03283 30.459 –0.4 Close Net Chg % Chg YTD%Chg
Prime rate* 4.75 4.75 4.75 l 5.50 1.25 Bond total return index Close Last Week ago High Low 52-wk 3-yr Thailand baht .03298 30.320 –6.2 WSJ Dollar Index 90.56 –0.06–0.07 0.99
Libor, 3-month 1.89 1.89 1.89 l 2.82 0.93
U.S. Treasury, Barclays 2276.720 1.810 1.690 2.850 1.510 8.40 3.54 Sources: Tullett Prebon, Dow Jones Market Data
Money market, annual yield 0.57 0.57 0.53 l 0.78 0.31
2.220 19.72
Five-year CD, annual yield 1.41 1.42 1.41 l 2.07 0.19 U.S. Treasury Long, Barclays 4084.040 2.130 3.140 1.880 8.31
Commodities
30-year mortgage, fixed† 3.83 3.89 3.60 l 4.70 -0.30 Aggregate, Barclays 2124.140 2.340 2.240 3.470 2.060 9.72 4.19 Tuesday 52-Week YTD
Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 3.30 3.31 3.14 l 4.04 -0.01 Fixed-Rate MBS, Barclays 2138.270 2.570 2.460 3.550 2.200 7.07 3.23
Jumbo mortgages, $484,350-plus† 4.24 4.22 4.15 l 4.72 -0.35 DJ Commodity 624.37 2.88 0.46 639.65 572.87 1.89 8.99
High Yield 100, ICE BofAML 3148.500 4.853 5.176 7.825 4.853 10.25 5.63
Five-year adj mortgage (ARM)† 4.37 4.40 3.94 l 4.78 0.79 TR/CC CRB Index 182.17 0.99 0.55 189.66 167.89 0.20 7.28
Muni Master, ICE BofAML 565.235 1.620 1.639 2.637 1.459 7.55 4.31 Crude oil, $ per barrel 59.24 0.22 0.37 66.30 42.53 14.70 30.46
New-car loan, 48-month 4.44 4.42 4.41 l 4.81 1.43
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 869.625 4.941 5.367 7.127 4.941 13.55 5.84 Natural gas, $/MMBtu 2.264 0.032 1.43 4.407 2.070 -48.63 -22.99
banks.† Excludes closing costs.
Sources: FactSet; Dow Jones Market Data; Bankrate.com Sources: J.P. Morgan; S&P Dow Jones Indices; Bloomberg Barclays; ICE BofAML Gold, $ per troy oz. 1462.60 3.30 0.23 1550.30 1237.00 17.77 14.42

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.

THE WALL STREET JOURNAL. Wednesday, December 11, 2019 | B11

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. GenuineParts GPC 103.65 -0.23 MDU Rscs MDU 29.07 0.11 Proofpoint PFPT 113.78 -1.34 Tradeweb TW 45.40 0.08 ValeroEnergy VLO 94.57 2.05 WestPharmSvcs WST 145.36 0.63
Arca, NYSE American and Nasdaq Stock Market t-New 52-week low. Gildan GIL 28.51 -0.84 MGM Resorts MGM 31.99 0.13 ProsperityBcshs PB 70.36 -0.30 TransDigm TDG 569.25 5.24 VarianMed VAR 139.01 0.02 WesternDigital WDC 49.24 1.18
listed securities. Prices are composite quotations dd-Indicates loss in the most recent four GileadSciences GILD 67.08 0.15 MPLX MPLX 25.23 0.52 PrudentialFin PRU 92.45 -0.35 TransUnion TRU 84.57 -0.77 Vedanta VEDL 8.09 -0.05 WesternMidstrm WES 19.50 0.93
that include primary market trades as well as quarters. s GSK GSK 46.15 0.52 MSCI MSCI 261.50 -2.03 Prudential PUK 34.62 0.16 Travelers TRV 135.54 0.09 VeevaSystems VEEV 142.90 -0.65 WesternUnion WU 26.81 -0.12
trades reported by Nasdaq BX (formerly Boston), FD-First day of trading. GlobalPayments GPN 173.98 -1.20 MadisonSquGarden MSG 274.66 -1.45 PublicServiceEnt PEG 57.69 -0.20 Trimble TRMB 39.95 -0.68 t Ventas VTR 56.67 -0.83 WestlakeChem WLK 68.54 -0.33
Chicago Stock Exchange, Cboe, NYSE National and h-Does not meet continued listing s GlobeLife GL 104.35 0.44 MagellanMid MMP 60.55 0.39 PublicStorage PSA 211.35 -2.01 Trip.com TCOM 31.85 -0.22 VeriSign VRSN 188.14 -0.42 WestpacBanking WBK 16.40 -0.10
Nasdaq ISE. standards GoDaddy GDDY 66.02 -0.78 MagnaIntl MGA 53.65 0.39 PulteGroup PHM 40.27 0.11 TruistFinl TFC 55.12 0.40 VeriskAnalytics VRSK 147.28 -0.19 WestRock WRK 40.07 -0.82
The list comprises the 1,000 largest companies lf-Late filing GoldmanSachs GS 221.88 0.07 ManulifeFin MFC 19.27 0.06 Qiagen QGEN 41.68 0.16 Twilio TWLO 97.36 -1.63 Verizon VZ 61.23 0.22 Weyerhaeuser WY 29.00 -0.38
based on market capitalization. q-Temporary exemption from Nasdaq Graco GGG 49.20 0.28 MarathonOil MRO 12.59 ... Qorvo QRVO 109.86 1.42 Twitter TWTR 29.84 -0.37 VertxPharm VRTX 220.27 0.90 WheatonPrecMet WPM 27.50 0.40
Underlined quotations are those stocks with requirements. Grainger GWW 323.57 -0.74 MarathonPetrol MPC 58.67 0.24 Qualcomm QCOM 84.12 -0.81 TylerTech TYL 280.87 -4.48 ViacomCBS B VIAC 37.62 -1.02 Whirlpool WHR 144.47 -1.75
large changes in volume compared with the t-NYSE bankruptcy Grifols GRFS 22.94 0.31 Markel MKL 1137.00 5.32 QuantaServices PWR 39.91 -0.58 TysonFoods TSN 88.61 -1.06 ViacomCBS A VIACA 40.55 -0.86 Williams WMB 22.94 0.04
issue’s average trading volume. v-Trading halted on primary market. GuardantHealth GH 73.34 1.19 MarketAxess MKTX 370.00 2.98 QuestDiag DGX 104.94 -0.29 UBS Group UBS 11.94 -0.08 s Vipshop VIPS 13.76 0.46 WillisTowers WLTW 194.59 -0.20
Boldfaced quotations highlight those issues vj-In bankruptcy or receivership or being Guidewire GWRE 106.54 -1.65 Marriott MAR 140.57 -0.78 UDR UDR 47.73 -0.12 Visa V 182.26 -0.66 Wipro WIT 3.67 0.04
whose price changed by 5% or more if their reorganized under the Bankruptcy Code, HCA Healthcare HCA 142.44 -0.40 s Marsh&McLen MMC 108.70 0.36 R S UGI UGI 43.47 0.07 VistraEnergy VST 23.84 0.17 Wix.com WIX 119.05 0.41
HDFC Bank HDB 62.98 0.68 MartinMarietta MLM 268.84 -2.00 US Foods USFD 40.08 -0.08 VMware VMW 148.73 -0.70 Woodward WWD 121.80 -0.06
previous closing price was $2 or higher. or securities assumed by such companies. HD Supply 0.16 RELX RELX 24.20 0.18 Uber UBER 27.89 0.21 Vodafone
HDS 39.08 -0.92 MarvellTech MRVL 23.68 VOD 18.79 -0.08 WooriFin WF 28.75 -0.25
HP HPQ 20.20 -0.09 Masco MAS 45.84 -0.14 RPM RPM 74.39 -0.02 Ubiquiti UI 192.39 -0.18 VornadoRealty VNO 66.65 0.70 Workday WDAY 163.22 -0.41
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and HSBC HSBC 36.71 -0.12 Masimo MASI 152.69 0.48 RalphLauren RL 114.00 0.75 UltaBeauty ULTA 250.37 -2.27 VoyaFinancial VOYA 57.88 -0.33 WynnResorts WYNN 119.41 -0.98
changes in the closing prices from 4 p.m. the previous day. Haemonetic HAE 117.54 0.04 Mastercard MA 288.61 -0.45 RaymondJames RJF 89.48 0.01 UnderArmour C UA 17.69 ... VulcanMatls VMC 140.06 -2.40 XPO Logistics XPO 81.00 -1.55
Halliburton HAL 22.79 0.22 MatchGroup MTCH 68.25 0.44 Raytheon RTN 216.53 ... UnderArmour A UAA 19.24 -0.03 XcelEnergy XEL 61.80 0.07
Tuesday, December 10, 2019 Net Net
HartfordFinl HIG 61.17 0.13 MaximIntProducts MXIM 56.81 -0.37 RealtyIncome O 75.61 -0.14 Unilever UN 60.18 -0.30 W X Y Z Xerox XRX 36.76 -0.55
Hasbro HAS 99.93 -0.77 McCormickVtg MKC.V 171.00 -1.73 ReataPharm RETA 205.12 2.31 Unilever UL 59.96 -0.26 Xilinx XLNX 91.24 0.16
Net Stock Sym Close Chg Stock Sym Close Chg HealthcareAmer HTA 30.65 -0.35 McCormick MKC 171.36 -1.38 RegencyCtrs REG 64.25 -0.35 UnionPacific UNP 171.85 0.49 WABCO WBC 135.17 0.42 Xylem XYL 75.81 0.41
Stock Sym Close Chg HealthpeakProp PEAK 33.65 -0.54 McDonalds MCD 194.95 0.27 RegenPharm REGN 367.67 2.04 UnitedAirlines UAL 86.51 -1.10 WEC Energy WEC 89.19 0.42 Yandex YNDX 40.46 0.13
Berkley WRB 69.92 -0.23 CypressSemi CY 23.38 0.02 Heico A HEI.A 96.48 1.43 McKesson MCK 142.75 -0.13 RegionsFin RF 17.00 -0.07 UnitedMicro UMC 2.67 0.02 WEX WEX 196.59 -0.78 YumBrands YUM 99.24 0.26
BerkHathwy A BRK.A 332120216.00 CyrusOne CONE 63.30 -0.18 Heico HEI 124.31 1.33 s MedicalProp MPW 21.49 0.10 ReinsGrp RGA 163.93 -0.49 UPS B UPS 118.54 0.40 W.P.Carey WPC 81.62 -0.18 YumChina YUMC 45.16 -0.12
A B C BerkHathwy B BRK.B 221.26 -0.12 HenrySchein HSIC 68.33 -0.35 s Medicines MDCO 84.22 0.07 RelianceSteel RS 120.33 -0.21 UnitedRentals URI 153.78 -2.08 WPP WPP 63.09 -0.42 ZTO Express ZTO 20.89 0.05
s ABB ABB 22.68 ...
BerryGlobal BERY 46.53 -0.67 D E F Herbalife HLF 45.08 0.19 Medtronic MDT 111.04 -0.09 RenaissanceRe RNR 191.27 -1.32 US Bancorp USB 59.95 -0.05 Wabtec WAB 74.48 -0.53 ZayoGroup ZAYO 34.30 0.04
ACADIA Pharm ACAD 46.26 -1.68
BestBuy BBY 82.88 0.31 Hershey HSY 149.40 -0.14 MelcoResorts MLCO 20.90 -0.24 RepublicSvcs RSG 88.54 -0.14 UnitedTech UTX 145.37 -0.85 WalgreensBoots WBA 58.41 -0.30 ZebraTech ZBRA 256.81 3.02
DISH Network DISH 33.53 0.02
ADT ADT 9.26 0.14
Bio-Techne TECH 219.97 0.71 Hess HES 61.73 -0.02 MellanoxTech MLNX 114.49 0.37 ResMed RMD 148.98 -0.34 UnitedHealth UNH 279.52 1.98 Walmart WMT 119.14 -0.22 Zendesk ZEN 73.97 -1.11
DTE Energy DTE 124.92 -0.38
AECOM ACM 42.69 0.39
Bio-RadLab A BIO 353.94 -3.67 HewlettPackard HPE 15.84 0.07 MercadoLibre MELI 586.69 2.13 RestaurantBrands QSR 67.16 1.18 UnivDisplay OLED 189.07 0.12 WasteConnections WCN 90.18 -0.21 Zillow C Z 41.52 0.74
DXC Tech DXC 35.86 -0.50
s AES AES 19.13 0.34
Bio-RadLab B BIO.B 342.98 -4.22 Hexcel HXL 79.49 0.23 s Merck MRK 89.10 0.38 RingCentral RNG 165.56 -0.26 UniversalHealthB UHS 144.58 0.86 WasteMgt WM 111.26 -0.51 Zillow A ZG 41.01 0.66
Danaher DHR 148.84 1.31
Aflac AFL 53.16 0.11
Biogen BIIB 297.20 1.65 Hill-Rom HRC 107.34 0.77 MetLife MET 49.29 -0.28 RioTinto RIO 56.06 0.15 UnumGroup UNM 29.95 0.34 Waters WAT 227.93 1.30 ZimmerBiomet ZBH 145.23 -1.49
Darden DRI 118.58 0.48
AGNC Invt AGNC 17.31 -0.02
BioMarinPharm BMRN 79.43 0.53 Hilton HLT 104.70 -0.05 MettlerToledo MTD 754.22 -2.76 RobertHalf RHI 59.91 -0.12 VEREIT VER 9.59 -0.04 Watsco WSO 178.77 -1.30 ZionsBancorp ZION 49.91 0.25
Datadog DDOG 34.81 -0.35
Ansys ANSS 252.57 -2.51
BlackKnight BKI 62.65 -0.43 HollyFrontier HFC 50.06 0.65 MicrochipTech MCHP 98.46 -0.56 Rockwell ROK 199.75 0.99 VF VFC 90.27 -0.58 Wayfair W 87.89 -0.29 Zoetis ZTS 122.78 1.55
DaVita DVA 72.31 0.20 47.62 -0.34 s VICI Prop
ASETech ASX 5.26 0.01
BlackRock BLK 494.03 -3.04 Hologic HOLX 52.20 0.10 MicronTech MU 47.46 1.01 RogersComm B RCI VICI 24.90 -0.02 WellCareHealth WCG 319.57 1.83 ZoomVideo ZM 64.57 -1.37
Deere DE 169.90 2.00
ASML ASML 279.11 1.59
Blackstone BX 54.41 0.27 HomeDepot HD 215.90 -0.63 Microsoft MSFT 151.13 -0.23 Roku ROKU 147.09 1.55 VailResorts MTN 232.96 2.13 WellsFargo WFC 53.69 -0.23 Zscaler ZS 46.13 -1.17
DellTechC DELL 47.36 -0.29
AT&T T 38.06 0.02
Boeing BA 347.90 -3.31 HondaMotor HMC 28.76 0.01 MidAmApt MAA 133.43 -1.57 Rollins ROL 33.68 -0.93 Vale VALE 12.30 -0.08 Welltower WELL 82.69 -0.45 Zynga ZNGA 6.13 -0.03
DeltaAir DAL 55.53 -0.27
AXA Equitable EQH 24.45 -0.07
BookingHldgs BKNG 1904.63 -1.16 Honeywell HON 174.04 -0.45 Middleby MIDD 109.68 -0.94 RoperTech ROP 343.30 -1.03
DentsplySirona XRAY 57.37 0.05
AbbottLabs ABT 84.56 0.69
BoozAllen BAH 70.60 -0.34 HorizonTherap HZNP 31.97 0.08 MitsubishiUFJ MUFG 5.44 -0.01 RossStores ROST 114.95 -0.11
DeutscheBank DB 7.19 -0.02
BorgWarner BWA 43.47 0.12 HormelFoods HRL 45.60 0.24 MizuhoFin -0.02 RoyalBkCanada RY 78.50 -0.45
AbbVie
Abiomed
ABBV 86.56 0.12
ABMD 179.75 -1.94 s
BostonProps BXP 139.61 -0.26
BostonSci BSX 44.01 0.30
DevonEnergy DVN 23.42
DexCom DXCM 215.53
0.27
-5.47
DR Horton DHI 55.13
HostHotels HST 17.90
0.24
-0.05 Moderna
MFG 3.16
MobileTeleSys MBT 9.48
MRNA 18.87
0.07 RoyalBkScotland RBS 6.05 -0.02
0.09 RoyalCaribbean RCL 121.59 -0.23
BANKRATE.COM® MMA, Savings and CDs
Accenture ACN 201.88 -0.15 BrightHorizons BFAM 151.23 1.39 Diageo DEO 161.50 -0.29 Huazhu HTHT 34.40 0.51 RoyalDutchA RDS.A 57.36 0.09
ActivisionBliz ATVI 55.94 1.55 DiamondbkEner FANG 83.46 -0.32
MohawkInds MHK 133.54 -5.34
Adobe ADBE 304.17 -2.88
s Bristol-Myers BMY 62.09 0.81
BritishAmTob BTI 39.31 -0.29 DigitalRealty DLR 117.59 -1.13
Hubbell
HubSpot
HUBB 146.54
HUBS 152.64
-0.78
-0.91
MolinaHealthcare MOH 130.01
MolsonCoors B TAP 51.21
0.38 RoyalDutchB RDS.B 57.34 0.04
-0.32 RoyalGold RGLD 113.57 -0.23
Average Yields of Major Banks Tuesday, December 10, 2019
AdvanceAuto AAP 156.17 4.60 BrixmorProp BRX 21.77 -0.11 DiscoverFinSvcs DFS 84.86 0.65
AdvMicroDevices AMD 39.44 0.51 DiscoveryB DISCB 37.75 0.49
Humana HUM 344.56 2.28 Momo MOMO 36.17 0.02 Ryanair RYAAY 83.92 -0.31 Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
Broadcom AVGO 315.06 0.68 JBHunt JBHT 112.97 -1.52 Mondelez MDLZ 54.06 -0.11 SAP SAP 134.70 -0.16
Aegon AEG 4.44 -0.03 BroadridgeFinl BR 121.40 0.21 DiscoveryA DISCA 32.24 0.22 s National average
AerCap AER 60.69 -0.03 DiscoveryC DISCK 29.99 0.06
HuntingtonBcshs HBAN 15.37 0.09 MongoDB MDB 129.18 -1.83 S&P Global SPGI 271.66 -0.40
BrookfieldMgt BAM 57.92 ... HuntingIngalls HII 251.78 -1.45 MonolithicPower MPWR 165.12 0.81 SBA Comm SBAC 235.60 -2.15 Savings
s AgilentTechs A 82.93 1.31 BrookfieldInfr BIP Disney DIS 146.10 -0.11 HyattHotels H 0.24 0.13 0.10 0.26 0.43 0.62 0.72 0.63 1.03
51.75 -0.06 79.96 -0.16 MonsterBev MNST 61.51 1.02 SEI Investments SEIC 64.63 0.20
AgnicoEagle AEM 59.21 -0.09 Brown&Brown BRO 37.96 -0.26 DocuSign DOCU 72.79 -2.67 IAA IAA 44.61 -1.34 Moody's MCO 231.05 0.50 SK Telecom SKM 22.22 -0.02 Jumbos 0.48 0.13 0.10 0.28 0.48 0.71 0.77 0.66 1.08
AirProducts APD 229.50 -1.32 DolbyLab DLB 66.65 -0.34
AkamaiTech AKAM 84.09 -0.02
Brown-Forman B BF.B 63.50 -0.25
Brown-Forman A BF.A 58.85 -0.42 DollarGeneral DG 154.37 -0.45 s
IAC/InterActive IAC 215.95
ICICI Bank IBN 14.92
0.65
0.16
MorganStanley MS 49.67 0.07 SLGreenRealty SLG 89.94 1.34 Weekly change
AlaskaAir ALK 67.24 -0.75 DollarTree DLTR 91.55 -1.65 Morningstar MORN 151.92 -1.51 SS&C Tech SSNC 58.59 -0.59
Bruker BRKR 50.11 0.44 IdexxLab IDXX 252.84 3.82 Mosaic MOS 18.25 -0.49 StoreCapital STOR 39.42 -0.09 Savings 0.00 0.00 0.00 0.00 0.00 0.01 0.02 -0.01 0.01
Albemarle ALB 65.30 0.58 DominionEner D 80.09 0.17
Alcon ALC 55.04 -0.40
Bunge BG 54.71 1.31
Domino's DPZ 285.24 -1.13
IHS Markit INFO 73.33 0.22 MotorolaSol MSI 160.92 -0.58 SVB Fin SIVB 238.63 2.27 Jumbos 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.00 0.00
BurlingtonStrs BURL 224.47 0.82 ING Groep ING 11.53 -0.10 Mylan MYL 18.70 -0.32 Sabre SABR 22.17 -0.26
AlexandriaRlEst ARE 162.04 -0.36 CACI Intl CACI 236.38 -0.22 Donaldson DCI 55.90 0.53 Invesco IVZ 16.85 0.19
AlexionPharm ALXN 111.20 -1.28 s DouglasEmmett DEI 44.65 -0.15 NICE NICE 151.02 1.47 Salesforce.com CRM 156.40 -1.08
CBRE Group CBRE 58.48 0.20 IPG Photonics IPGP 136.81 -0.57 -0.18 s Sanofi SNY 48.09 2.79
Alibaba
AlignTech
BABA 200.45 1.71
ALGN 273.65 0.19
CDK Global CDK 53.46 -0.55
CDW CDW 135.75 1.41
s Dover
Dow
DOV 112.86
DOW 53.13
0.36
-0.14
IQVIA
ITT
IQV 146.12
ITT 71.29
-0.28
0.49
NRG Energy NRG 38.38
NVR NVR 3820.00 15.90 SantanderCons SC 23.22 0.31 Consumer Savings Rates
Allakos ALLK 120.89 -0.18 DrReddy'sLab RDY 41.08 0.58 NXP Semi NXPI 119.10 1.25 SareptaTherap SRPT 106.17 0.42
CF Industries CF 44.02 -1.38 IcahnEnterprises IEP 59.63 -0.57 Nasdaq NDAQ 104.61 -0.03 Sasol SSL 18.25 0.16 Explanation of ratings: Bankrate.com (855) 733-0700, evaluates the financial condition of feder-
Alleghany Y 790.20 -1.89 CGI GIB 82.63 0.26 Dropbox DBX 17.81 -0.28 Icon ICLR 162.20 0.97
s Allegion ALLE 124.09 ... DukeEnergy DUK 89.05 -0.23 NationalGrid NGG 58.43 -0.04 Schlumberger SLB 37.34 0.18 ally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from federal regulators. 5:
CH Robinson CHRW 75.80 -0.47 IDEX IEX 163.13 0.31 NatlOilwell NOV 23.42 0.37 SchwabC SCHW 49.19 0.24
36.63 -0.11 most desirable performance; NR: institution is too new to rate, not an indication of financial
Allergan AGN 185.61 0.34 CME Group CME 205.10 0.11 DukeRealty DRE 35.16 0.01 IllinoisToolWks ITW 174.45 0.02
AlliantEnergy LNT 52.95 0.07 Dunkin' DNKN 76.22 0.04 NatlRetailProp NNN 54.24 -0.35 Sea SE
CMS Energy CMS 61.44 0.16
DuPont DD 64.04 0.20
Illumina ILMN 326.94 0.35 NetApp NTAP 60.36 -0.17 Seagate STX 57.62 0.50 strength or weakness. Information is believed to be reliable, but not guaranteed.
Allstate ALL 110.74 -0.58 CNA Fin CNA 43.83 -0.23 ImperialOil IMO 25.23 0.15 Netease NTES 309.24 1.20 SealedAir SEE 38.82 -0.11
AllyFinancial ALLY 31.38 -0.22
AlnylamPharm ALNY 121.84 1.13
CNH Indl CNHI 10.47 -0.03 Dynatrace
ENI
DT
E
24.35
30.19
-0.08
0.23
s Incyte
Infosys
INCY 95.72 0.93 Netflix NFLX 293.12 -9.38 SeattleGenetics SGEN 113.98 -0.15 High yield savings
CNOOC CEO 145.55 0.19 INFY 10.04 0.10 Neurocrine NBIX 113.65 -0.10 SempraEnergy SRE 147.48 1.65
Alphabet A GOOGL 1342.89 -0.10 EOG Rscs EOG 74.84 0.33 Yield
CPFLEnergia CPL 15.57 -0.06 Ingersoll-Rand IR 131.10 -0.21 NewOrientalEduc EDU 120.42 -0.52 SensataTechs ST 51.24 -0.12 Bank/rank Bank/rank Yield
Alphabet C GOOG 1344.66 1.10 EPAM Systems EPAM 208.53 -0.28
CRH CRH 38.77 0.01 Ingredion INGR 86.82 0.44 NewResidInvt NRZ 15.75 -0.06 ServiceCorp SCI 44.36 0.57 Phone number Minimum (%) Phone number Minimum (%)
Alteryx AYX 107.61 -0.40 CSX CSX 70.40 -0.01 E*TRADE ETFC 45.37 -0.17 Insulet PODD 178.20 -2.46 NewellBrands NWL 18.83 -0.30 ServiceNow NOW 266.78 -2.92
AlticeUSA
Altria
ATUS 25.41 -0.31
MO 50.05 -0.48
CVS Health CVS 73.18 -1.81 EastWestBncp EWBC 46.18
EastmanChem EMN 76.25
-0.01
-1.16
Intel INTC 56.59 0.06 NewmontGold NEM 39.99 0.27 ShawComm B SJR 20.27 -0.09 Money market and savings account Six-month CD
CableOne CABO 1526.06 -6.24 ICE ICE 92.33 -0.55 -0.04 SherwinWilliams SHW 570.85 -5.72 TAB Bank /5
Amarin AMRN 23.23 0.66 CabotOil COG 16.19 0.08 Eaton ETN 92.68 -0.08 InterContinentl IHG 63.06 -0.09
NewsCorp B NWS 13.45 $0 2.10 Goldwater Bank /3 $5,000 1.85
NewsCorp A NWSA 13.21 -0.02 ShinhanFin SHG 37.01 -0.13
SHOP 368.00 -1.79 (800) 355-3063 (480) 281-8200
Amazon.com AMZN 1739.21 -10.30 CadenceDesign CDNS 65.85 -0.18 eBay EBAY 34.72 0.15 IBM IBM 133.91 -0.01
Ambev ABEV 4.40 -0.03 Ecolab ECL 185.15 -0.05 NextEraEnergy NEE 234.45 0.18 Shopify
Amcor AMCR 10.35 -0.08
CAE CAE 25.75 -0.11
Ecopetrol EC 19.12 -0.11
IntlFlavors IFF 133.99 0.18 NielsenHoldings NLSN 19.74 -0.25 SignatureBank SBNY 126.06 -0.08 HSBC Direct Savings /3 $1 2.05 Merrick Bank /5 $25,000 1.85
CaesarsEnt CZR 13.02 0.05 IntlPaper IP 46.25 -1.17 0.38 SimonProperty SPG 149.04 -0.75 (800) 975-4722
Nike NKE 97.01 (866) 638-6851

.
s Amdocs DOX 69.53 -0.54 CamdenProperty CPT 110.01 -0.48 EdisonInt EIX 71.28 0.27 Interpublic IPG 22.39 ... NiSource NI 27.00 0.28 SiriusXM SIRI 6.89 0.02
Amerco UHAL 358.45 0.65 CampbellSoup CPB 48.39 0.15 EdwardsLife EW 229.16 -5.13 InterXion INXN 82.44 -0.64 NobleEnergy NBL 21.79 -0.02 SkechersUSA SKX 40.45 -0.10 Vio Bank /4 $100 2.02 ableBanking,adivisionofNortheastBank/5 $1,000 1.80

ly
Ameren AEE 74.59 0.14 ElancoAnimal ELAN 26.46 -0.39
CIBC CM 82.36 -0.36
ElbitSystems ESLT 164.78 0.65
Intuit INTU 252.32 -3.45 Nokia NOK 3.42 ... Skyworks SWKS 104.39 1.16 (888) 999-9170 (888) 426-2253
AmericaMovil AMX 15.14 0.15 CanNtlRlwy CNI 89.57 0.55 IntuitiveSurgical ISRG 575.37 2.20
ElectronicArts EA 101.84 -0.20 NomuraHoldings NMR 5.22 0.05 SlackTech WORK 22.25 -0.75
AmerAirlines AAL 27.00 -0.49 CanNaturalRes CNQ 29.52 0.19 InvitatHomes INVH 29.87 -0.27 One-month CD One-year CD
EmersonElec EMR 74.55 -0.61 Nordson NDSN 165.63 -0.62 SmithAO AOS 45.39 0.01
AmCampus ACC 47.98 -0.33 CanPacRlwy CP 245.03 -0.33 IonisPharma IONS 62.91 -0.33
s Enbridge ENB 38.71 -0.09 Nordstrom JWN 39.03 0.12 Smith&Nephew SNN 44.37 0.31 EH National Bank /4 $1,000 0.58 Live Oak Bank /5 $2,500 2.15
AEP AEP 91.94 0.08 Canon CAJ 28.11 -0.03 iQIYI IQ 19.87 -0.33
EncompassHealth EHC 71.79 0.20 NorfolkSouthern NSC 188.68 -0.28 Smucker SJM 106.06 -0.47
AmerExpress AXP 120.90 0.44 CanopyGrowth CGC 20.09 -1.20
EnelAmericas ENIA 10.27 -0.09
IronMountain IRM 32.90 -0.10 s NorthernTrust NTRS 108.76 -0.38 Snap SNAP 14.09 -0.14 (888) 392-5265 (866) 656-0286
AmericanFin AFG 110.75 -0.04
AmHomes4Rent AMH 26.14 -0.27
AIG AIG 51.08 -0.50
AmerTowerREIT AMT 210.00 -2.65
AmerWaterWorks AWK 122.35 -0.13
s CapitalOne COF 102.42 0.21
Capri CPRI 37.88 -0.61
CardinalHealth CAH 53.82 -0.52
Carlisle
CarMax
CSL 155.73 -1.54
KMX 96.94 0.25
EnelChile
EnergyTransfer ET
Entegris
Entergy
on
ENIC 4.53
12.04
ENTG 47.41
ETR 117.67
0.07
0.25
0.62
-0.51
IsraelChemicals ICL
ItauUnibanco ITUB 8.65

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4.47 -0.10
-0.15 s
NorthropGrum NOC 344.48
NortonLifeLock NLOK 26.28
NorwegCruise NCLH 54.78
Novartis NVS 92.80
1.43 SnapOn

-0.08 s Sony
0.27 Southern
SNA 165.16 -0.58 Colorado Federal Savings Bank /4 $5,000
0.88 SonocoProducts SON 60.52 -0.62 (877) 484-2372
SNE 66.31 0.38
SO 60.33 -1.11 Citizens Trust Bank /4
SCCO 39.64 0.26 (404) 659-5959
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0.01
Colorado Federal Savings Bank /4 $5,000
(877) 484-2372
Capital One /5 $0
2.13

2.10
AmericoldRealty COLD 35.67 -0.50 EnterpriseProd EPD 27.17 0.45 JD.com JD 33.26 0.01 NovoNordisk NVO 56.94 0.25 SoCopper (800) 289-1992
Carnival CCL 45.32 -0.09 Novocure NVCR 79.28 -2.03 SouthwestAir LUV 54.91 -0.38
Ameriprise AMP 165.21 0.39 Equifax EFX 136.52 -1.14 JPMorganChase JPM 134.50 0.09
Carnival CUK 42.76 -0.27 -0.01 SpiritAeroSys SPR 82.41 -1.47 Two-month CD Two-year CD
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AmerisourceBrgn ABC 86.76 0.37 Equinix EQIX 557.73 -2.99 Jabil JBL 39.20 0.45 Nucor NUE 57.74
CaseysGenStores CASY 158.72 -16.60 Nutanix NTNX 32.98 -0.90 Splunk SPLK 149.08 -0.67
SPOT 145.97 -0.34 Colorado Federal Savings Bank /4 $5,000 0.45 Connexus Credit Union /5 $5,000 2.21
Ametek AME 98.08 -0.25 Catalent CTLT 53.09 1.03 Equinor EQNR 18.28 -0.38 JackHenry JKHY 148.71 -0.16
EquityLife ELS 71.78 -0.77 JacobsEngg J 87.13 1.29 Nutrien NTR 46.36 -0.58 Spotify
Amgen AMGN 233.84 1.02 Caterpillar CAT 142.87 0.04 5.34 -0.06 (877) 484-2372 (800) 845-5025
EquityResdntl EQR 84.14 -0.41 JamesHardie JHX 19.42 -0.09 NVIDIA NVDA 213.98 1.81 Sprint S
Amphenol APH 105.12 0.66 Celanese CE 120.95 -2.91 Square SQ 65.84 -1.22 Applied Bank /5 $1,000 0.05 Live Oak Bank /5 $2,500 2.15
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AnalogDevices ADI 114.41 -0.21 ErieIndemnity A ERIE 167.26 -1.37 JazzPharma JAZZ 150.06 -1.28
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CenovusEnergy CVE 9.40 0.19 StanleyBlackDck SWK 157.26 -1.33
SBUX 86.04 -0.24 (800) 616-4605 (866) 656-0286
Anaplan PLAN 51.53 -0.46 Centene CNC 59.62 0.45 EssexProp ESS 309.57 -1.64 JefferiesFin JEF 21.00 ...
EsteeLauder EL 197.92 -0.78 J&J JNJ 139.99 -0.51 Starbucks
AngloGoldAsh AU 19.27 0.53 CenterPointEner CNP 24.96 -0.08 OGE Energy OGE 42.72 0.19 StarsGroup TSG 24.19 0.19 Sallie Mae /5 $2,500 2.15
AB InBev BUD 78.15 -0.75 CentraisElBras EBR 8.62 ...
EuronetWorldwide EEFT 154.28 -1.47 JohnsonControls JCI 42.09 0.09 ONEOK OKE 72.50 0.30 StarwoodProp STWD 24.87 -0.07
(877) 346-2756
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AnnalyCap NLY 9.38 -0.05 CenturyLink CTL 14.14 -0.03 EverestRe RE 270.30 -1.26 JonesLang JLL 168.74 -0.24 OReillyAuto ORLY 441.90 2.17 s StateStreet STT 77.83 0.16
Anthem ANTM 283.85 1.52 CeridianHCM CDAY 61.98 0.23 Evergy EVRG 62.66 0.40 JuniperNetworks JNPR 23.74 -0.18 t OccidentalPetrol OXY 37.57 0.23 SteelDynamics STLD 34.88 -0.19
Aon AON 205.20 -0.31 Cerner CERN 71.71 0.27 EversourceEner ES 80.98 0.26 KB Fin KB 40.22 0.14 Okta OKTA 119.61 -1.41 s Stericycle SRCL 66.05 0.18
Three-month CD Five-year CD
ExactSciences EXAS 85.30 1.11 KKR KKR 29.13 0.14
Apache APA 20.93 0.30 CharlesRiverLabs CRL 146.23 1.52
Exelon EXC 44.72 -0.21 KLA KLAC 162.37 1.49
OldDomFreight ODFL 187.52 0.66 Steris STE 153.94 1.40 First Internet Bank of Indiana /4 $1,000 1.46 Connexus Credit Union /5 $5,000 2.41
ApartmtInv AIV 52.12 -0.53 CharterComms CHTR 461.71 -6.95 OldRepublic ORI 22.77 0.02 s STMicroelec STM 25.82 0.43 (888) 873-3424 (800) 845-5025
ApolloGlbMgmt APO 44.29 0.46 CheckPoint CHKP 112.39 -1.08 Expedia EXPE 111.85 3.05 KSCitySouthern KSU 151.16 -0.21 OmegaHealthcare OHI 42.89 0.17 StoneCo
ExpeditorsIntl EXPD 74.12 -0.26 s Kellogg K 66.64 0.10 STNE 37.91 -0.82 Goldwater Bank /3 $5,000 1.45 Live Oak Bank /5 $2,500 2.25
Apple AAPL 268.48 1.56 Chemed CHE 432.20 2.11 Omnicom OMC 80.39 0.33 Stryker SYK 198.13 -2.27
ExtraSpaceSt EXR 105.42 -1.21 KeurigDrPepper KDP 29.16 -0.03
ApplMaterials AMAT 56.62 0.02 CheniereEnergy LNG 60.23 0.21
ExxonMobil XOM 69.06 -0.60 s KeyCorp KEY 19.71 0.07
ON Semi ON 21.98 0.15 SumitomoMits SMFG 7.39 ... (480) 281-8200 (866) 656-0286
Aptargroup ATR 111.94 -0.69 CheniereEnerPtrs CQP 39.04 -0.50 OneMain OMF 43.12 -0.19 SunComms SUI 158.39 -1.02 Luana Savings Bank /5
F5Networks FFIV 137.88 0.60 KeysightTechs KEYS 101.60 -0.12 $1,000 1.31 Citizens Access /5 $5,000 2.25
er rs

Aptiv APTV 92.77 -0.19 Chevron CVX 117.89 0.59 OpenText OTEX 42.50 0.04 SunLifeFinancial SLF 44.78 0.31 (800) 666-2012
AquaAmerica WTR 45.49 0.12 s FMC FMC 97.83 -1.36 s KilroyRealty KRC 84.12 -0.21 (888) 201-6505
Chewy CHWY 25.50 1.32 Oracle ORCL 55.82 0.51 SuncorEnergy SU 31.82 0.05
Aramark ARMK 42.62 0.34 Facebook FB 200.87 -0.47 KimberlyClark KMB 136.12 -0.86
Orange ORAN 14.72 -0.13 Suzano
ChinaLifeIns LFC 12.85 0.09 FactSet FDS 270.38 0.53 KimcoRealty KIM 21.17 SUZ 9.25 0.15
-0.06
ArcelorMittal MT 17.66 -0.06
ArchCapital ACGL 41.16 -0.29
ChinaMobile CHL 38.09 0.02
ChinaPetrol SNP 55.67 -0.31
FairIsaac FICO 354.18 -3.53 KinderMorgan KMI 20.12 0.18
Orix
Oshkosh
IX 85.16
OSK 91.67
0.09 SynchronyFin SYF 37.42 -0.14
0.15 SyneosHealth SYNH 56.24 0.93
High yield jumbos - Minimum is $100,000
ArcherDaniels ADM 44.00 -0.07 Fastenal FAST 35.94 -0.17 KirklandLakeGold KL 41.16 0.49
OwensCorning OC 65.08 0.02 Synnex
ChinaUnicom CHU 8.67 0.02 FederalRealty FRT 131.62 -1.31 Knight-Swift KNX 37.33 -0.43 SNX 125.84 0.22 Money market and savings account Six-month CD
Arconic ARNC 31.01 0.22 Chipotle CMG 817.73 -9.30 OwlRock ORCC 17.98 -0.05 Synopsys SNPS 131.61 -0.63
s arGEN-X FedEx FDX 157.00 0.49 Kohl's KSS 48.04 ...
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ARGX 155.52 2.76 Chubb PG&E PCG 12.32 1.14 Sysco

CB 152.96 -0.04 Ferrari RACE 164.84 1.16 KoninklijkePhil PHG 47.27 -0.01 SYY 82.53 -0.60 First Internet Bank of Indiana /4 1.92 ableBanking,adivisionofNortheastBank/5 1.80
AristaNetworks ANET 192.14 1.82 ChunghwaTel CHT 36.85 0.01 s PNC Fin PNC 155.60 1.90
FiatChrysler FCAU 14.41 -0.10 KoreaElcPwr KEP 11.82 -0.14 (888) 873-3424 (888) 426-2253
ArrowElec ARW 82.50 0.32
ArrowheadPharm ARWR 70.86 3.09
Church&Dwight CHD 69.35 -1.00 FidNatlFin FNF 47.43 0.01 KraftHeinz KHC 31.88 -0.05
POSCO
PPG Ind
PKX 48.34
PPG 132.47
-0.15
-0.51
T U V ableBanking,adivisionofNortheastBank/5 1.85 Live Oak Bank /5 1.75
Cigna CI 191.71 -4.24 FidNatlInfo FIS 135.53 -1.43 Kroger KR 27.87 0.03
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AspenTech AZPN 118.26 -1.71 CincinnatiFin CINF 105.71 -0.55 PPL PPL 33.80 0.09 TAL Education TAL 45.27 -0.20 (877) 505-1933 (866) 656-0286
Assurant AIZ 130.04 -0.89 FifthThirdBncp FITB 30.44 0.21 LATAMAirlines LTM 11.11 -0.02
Cintas CTAS 255.90 2.09 PRA HealthSci PRAH 107.38 0.32 TC Energy TRP 51.45 0.39
AstraZeneca AZN 47.98 0.21 CiscoSystems CSCO 44.10 0.20
58.com WUBA 58.89 0.07 LINE LN 47.62 0.32
PTC PTC 74.90 -1.19 TCF Financial TCF 43.69 0.12 Sallie Mae /5 1.75 TAB Bank /5 1.71
FirstAmerFin FAF 62.37 -0.01 LKQ LKQ 35.48 -0.14
Athene ATH 44.12 -0.10 Citigroup C 75.78 0.45 s PVH PVH 101.36 -0.91 TD Ameritrade AMTD 51.33 0.24 (877) 346-2756 (800) 355-3063
Atlassian TEAM 120.80 -2.00 FirstRepBank FRC 113.18 0.40 LPL Financial LPLA 91.96 0.25
CitizensFin CFG 39.33 0.38 Paccar PCAR 81.20 0.13 TE Connectivity TEL 91.53 -0.03
FirstEnergy FE 47.99 -0.13 L3HarrisTech LHX 196.96 3.34
AtmosEnergy ATO 106.75 0.44 CitrixSystems CTXS 109.68 -0.65 Fiserv FISV 113.84 -0.91 LabCpAm LH 167.54 -1.54
PackagingCpAm PKG 111.36 -2.18 Telus TU 37.92 -0.46 One-month CD One-year CD
Autodesk ADSK 178.46 -0.37 Clorox CLX 152.43 -0.32 PagSeguroDig PAGS 27.96 -0.54 TIM Part TSU 17.02 -0.29
Autohome ATHM 70.01 0.07 Coca-Cola KO 53.77 -0.30
FiveBelow FIVE 119.03 -1.52 LamResearch LRCX 268.99 2.12
PaloAltoNtwks PANW 225.29 -0.57 TJX TJX 60.24 -0.12 EH National Bank /4 0.60 Capital One /5 2.20
FleetCorTech FLT 302.54 -0.08 s LamarAdv LAMR 87.10 -0.35
Autoliv ALV 82.37 0.50 Coca-Cola Euro CCEP 49.59 0.02 FlirSystems FLIR 52.33 ParkHotels PK 24.41 -0.07 T-MobileUS TMUS 75.02 -0.85 (888) 392-5265 (800) 289-1992
-0.85 LambWeston LW 84.02 -0.14
ADP ADP 168.43 -0.64 Cognex CGNX 50.91 0.76 s ParkerHannifin PH 202.38 0.91 TRowePrice TROW 122.35 -2.15 Colorado Federal Savings Bank /4 0.25 Live Oak Bank /5 2.15
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s AutoZone AZO 1250.00 81.00 Flowserve FLS 47.94 0.09 LasVegasSands LVS 64.15 -0.02
CognizantTech CTSH 61.10 -0.78 Paychex PAYX 84.51 -0.18 TaiwanSemi TSM 54.52 0.06
Avalonbay AVB 215.28 -0.63 FomentoEconMex FMX 92.62 0.82 Lear LEA 125.00 -0.40
PaycomSoftware PAYC 265.50 -3.30 TakeTwoSoftware TTWO 122.29 2.23
(877) 484-2372 (866) 656-0286
ColgatePalm CL 67.93 -0.67 FordMotor F 9.07 0.06 Leggett&Platt LEG 51.37 -0.78
Avangrid AGR 48.97 0.27 ColumbiaSportswr COLM 91.98 0.07 Paylocity PCTY 120.43 -0.62 TakedaPharm TAK 20.25 0.20 USAA /NR 0.15 Colorado Federal Savings Bank /4 2.13
Fortinet FTNT 103.55 -0.30 Leidos LDOS 89.64 -0.46
Avantor AVTR 18.50 0.38 Comcast A CMCSA 42.77 -1.12 PayPal PYPL 103.62 -0.16 Tapestry TPR 25.53 -0.27 (800) 583-8295 (877) 484-2372
AveryDennison AVY 129.77 -0.32 Fortis FTS 40.15 0.02 Lennar B LEN.B 46.99 -0.20
Comerica CMA 69.91 -0.84 Fortive FTV 73.84 -0.30 Lennar A LEN 59.13 -0.27 Pearson PSO 8.29 -0.07 TargaResources TRGP 37.08 0.69
AxaltaCoating AXTA 29.65 -0.57 s CommerceBcshrs CBSH 65.17 0.32 FortBrandsHome FBHS 64.00 -0.10 LennoxIntl LII 258.19 -2.40 Pegasystems PEGA 75.44 -0.68 Target TGT 125.77 -0.68 Two-month CD Two-year CD
BCE BCE 48.66 -0.08 SABESP SBS 14.37 0.08 Peloton PTON 32.78 -1.99 TataMotors TTM 11.20 -0.09
BHP Group BHP 52.59 0.32 ConagraBrands CAG 29.22 -0.08
FoxA FOXA 35.81 0.19 LeviStrauss LEVI 17.97 0.56
PembinaPipeline PBA 35.40 0.04 TechnipFMC FTI 19.10 0.25 Colorado Federal Savings Bank /4 0.45 Live Oak Bank /5 2.15
FoxB FOX 34.92 0.13 LibertyBroadbandA LBRDA 117.09 -1.62
BHP Group BBL 45.25 0.24 ConchoRscs CXO 76.67 0.09 Pentair PNR 45.16 0.11 TeckRscsB TECK 15.74 ... (877) 484-2372 (866) 656-0286
Franco-Nevada FNV 98.76 1.68 LibertyBroadbandC LBRDK 118.43 -1.62
BOK Fin BOKF 84.59 -0.02 ConocoPhillips COP 61.76 -0.07 FranklinRscs BEN 25.84 -1.18 LibertyGlobal A LBTYA 22.18 0.60 People'sUtdFin PBCT 16.54 0.04 TeledyneTech TDY 344.89 2.50 Applied Bank /5 0.05 Sallie Mae /5 2.15
BP BP 37.01 -0.09 ConEd ED 86.80 0.24 PepsiCo PEP 136.27 -0.89 Teleflex TFX 353.92 -3.09
ERIC 9.07 -0.09 (800) 616-4605 (877) 346-2756
FreeportMcM FCX 12.28 0.18 LibertyGlobal C LBTYK 21.00 0.40
BRF BRFS 8.82 -0.03 ConstBrands B STZ.B 180.86 -3.07 FreseniusMed FMS 36.50 0.60 LibertyFormOne C FWONK 44.96 0.16 PerkinElmer PKI 94.37 0.71 Ericsson
BWX Tech BWXT 60.28 -0.25 ConstBrands A STZ 180.93 -0.34 LibertyFormOne A FWONA 42.61 0.19 Perrigo PRGO 53.69 0.70 TelefonicaBras VIV 13.68 -0.05 Citizens Trust Bank /4 0.01 Synchrony Bank /5 2.10
Baidu BIDU 114.78 -0.28
BakerHughes BKR 22.34 0.09
ContinentalRscs CLR 33.05 -0.12
Cooper COO 304.54 2.28
G H I LibertySirius A LSXMA 47.39 -0.03 PetroChina PTR 45.87
PetroleoBrasil PBR 15.59
-0.26 Telefonica TEF 7.43 -0.03 (404) 659-5959
0.03 TelekmIndonesia TLK 28.62 -0.17
(800) 903-8154
LibertySirius B LSXMB 48.30 ...
Ball BLL 63.91 -0.22
BancoBilbaoViz BBVA 5.22
Copart CPRT 88.38 0.17 GCI LibertyA GLIBA 67.80 -1.10 LibertySirius C LSXMK 47.13 -0.16 PetroleoBrasilA PBR.A 14.66 0.10 10xGenomics TXG 65.95 2.75 Three-month CD Five-year CD
... Corning GLW 28.00 -0.51 GDS Holdings GDS 48.11 0.96 LibertyProperty LPT 61.49 -0.06 Pfizer PFE 38.48 0.16 Tenaris TS 21.90 0.04
BancoBradesco BBDO 7.67 -0.06 Corteva CTVA 25.87 0.10 s Galapagos GLPG 215.40 -0.42 PhilipMorris PM 83.90 0.31 Teradyne TER 64.07 0.55 Luana Savings Bank /5 1.51 Live Oak Bank /5 2.25
EliLilly LLY 120.65 0.41
BancodeChile BCH 21.80 0.04 CoStar CSGP 581.69 -13.23 s Gallagher AJG 93.88 -0.27 LincolnNational LNC 57.88 -0.04 Phillips66 PSX 111.93 -0.03 Tesla TSLA 348.84 9.31 (800) 666-2012 (866) 656-0286
BancSanBrasil BSBR 10.69 -0.02 Costco COST 295.78 0.62 Gaming&Leisure GLPI 42.98 0.19 Linde LIN 203.95 -1.38 PilgrimPride PPC 31.70 -0.50 TevaPharm TEVA 9.49 -0.33 First Internet Bank of Indiana /4 1.46 Synchrony Bank /5 2.25
BcoSantChile BSAC 22.43 -0.07 Coty COTY 11.62 -0.20 Gap GPS 16.63 0.25 LiveNationEnt LYV 69.60 0.55 Pinduoduo PDD 38.13 0.61 TexasInstruments TXN 121.37 -0.63
BancoSantander SAN 3.88 -0.05 CoupaSoftware COUP 148.53 -1.99 GardnerDenver GDI 33.44 -0.41 LloydsBanking LYG 3.19 -0.03 PinnacleWest PNW 85.21 -0.34 Textron TXT 44.14 -0.27 (888) 873-3424 (800) 903-8154
BanColombia CIB 50.94 -0.07 CousinsProperties CUZ 40.47 -0.11 Garmin GRMN 96.71 -0.29 t Pinterest PINS 17.99 -0.22 ThermoFisherSci TMO 317.09 0.66 Colorado Federal Savings Bank /4 0.95 First Internet Bank of Indiana /4 2.17
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LockheedMartin LMT 384.44 1.10

BankofAmerica BAC 33.53 0.02 Credicorp BAP 203.89 -3.69 Gartner IT 156.69 -0.87 Loews L 50.07 -0.26 PioneerNatRscs PXD 134.55 1.36 ThomsonReuters TRI 71.04 0.14
(877) 484-2372 (888) 873-3424
BankofMontreal BMO 75.53 0.14 CreditAcceptance CACC 431.60 3.33 Generac GNRC 100.51 1.45 LogitechIntl LOGI 43.46 0.21 PlainsAllAmPipe PAA 18.01 0.45 3M MMM 167.66 -2.17
BankNY Mellon BK 49.84 0.14 CreditSuisse CS 13.06 -0.06 GeneralDynamics GD 180.48 -2.69 Lowe's LOW 116.48 -1.39 PlanetFitness PLNT 73.99 -0.11 Tiffany TIF 133.46 -0.02 Notes: Accounts are federally insured up to $250,000 per person. Yields are based on method of
BkNovaScotia BNS 56.37 -0.30 CrowdStrike CRWD 47.55 -1.45 GeneralElec GE 11.01 0.02 lululemon LULU 229.65 -1.23 Polaris PII 96.98 0.68 Toll Bros TOL 39.40 -2.02
Barclays BCS 8.93 -0.05 CrownCastle CCI 134.00 -1.88 GeneralMills GIS 53.24 0.08 Lyft LYFT 45.26 -0.16 Pool POOL 207.35 -1.26 Toro TTC 79.16 0.26 compounding and rate stated for the lowest required opening deposit to earn interest. CD
BarrickGold GOLD 17.14 0.29 CrownHoldings CCK 72.72 -1.10 GeneralMotors GM 35.11 -0.27 LyondellBasell LYB 90.58 -1.44 PostHoldings POST 107.30 -0.41 TorontoDomBk TD 55.11 -0.02 figures are for fixed rates only. MMA: Allows six (6) third-party transfers per month, three (3) of
s BauschHealth BHC 29.24 0.03 CubeSmart CUBE 31.00 -0.25 Genesee&Wyoming GWR 110.69 0.53 PrincipalFin PFG 53.24 -0.01 Total TOT 52.54 -0.09 which may be checks. Rates are subject to change.
no

BaxterIntl BAX 82.29 0.74

BectonDicknsn BDX 257.24 -0.66
Cullen/Frost CFR 95.30 0.32
Cummins CMI 179.65 -1.39
Genmab
Genpact
GMAB 23.07
G 40.59
-0.94
0.10
M N Procter&Gamble PG 124.27
Progressive PGR 72.85
-0.60 ToyotaMotor TM 141.18 -0.71
-0.49 TractorSupply TSCO 97.20 -0.33 Source: Bankrate.com, a publication of Bankrate, Inc., Palm Beach Gardens, FL 33410
BeiGene BGNE 182.38 -0.17 CurtissWright CW 141.35 0.43 Gentex GNTX 28.12 0.01 M&T Bank MTB 167.04 0.30 Prologis PLD 91.14 -0.24 TradeDesk TTD 250.07 0.58 Internet: www.bankrate.com

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
Express EXPR 6.24 2.7 HlthSciencesAcq HSAC 11.00 3.0 NortonLifeLock NLOK 26.63 3.5 Stantec STN 27.42 -0.2
Arcimoto FUV 1.53 -3.1 IderaPharm IDRA 1.65 -4.5 QurateRetailA QRTEA 8.04 -5.4
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE FFBW FFBW 11.73 1.0 HudsonPacProp HPP 36.85 0.1 NuanceComms NUAN 18.22 0.5 StateStreet STT 78.72 0.2
Argan AGX 33.92 -1.3 IturanLocation ITRN 22.45 -2.0 Qutoutiao QTT 2.56 4.6
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low FMC FMC 99.60 -1.4 HuntingtonBcshs HBAN 15.43 0.6 PNC Fin PNC 156.83 1.2 Stericycle SRCL 66.34 0.3
BK Tech BKTI 2.87 -6.2 J.Jill JILL 1.03 -7.9 RISE Education REDU 6.54 ...
in the latest session. % CHG-Daily percentage change from the previous trading session. FS Bancorp FSBW 63.10 1.6 ICICI Bank IBN 14.95 1.1 PacGE pfI PCGpI 20.60 7.0 STMicroelec STM 25.92 1.7
Benefitfocus BNFT 20.42 -2.2 Jiayin JFIN 6.41 -7.3 RTW Retail RTW 0.93 -5.1
FangddNetwork DUO 15.91 9.6 IVERICbio ISEE 5.42 3.6 ParkerHannifin PH 205.47 0.5 Strats Dom GJP GJP 22.91 ...
BlueHatInt BHAT 2.27 -8.5 JumeiIntl JMEI 1.72 -3.4 RaMedicalSys RMED 0.99 -6.6
FarmersNatlBanc FMNB 15.79 1.3 Immunomedics IMMU 21.49 0.6 Pennant PNTG 28.21 6.5 SurgeryPartners SGRY 15.49 -1.2
BrighamMin MNRL 17.51 0.4 Kopin KOPN 0.45 -4.0 SIGA Tech SIGA 4.28 -0.5
Tuesday, December 10, 2019 FarmlandPtrsPfdB FPIpB 25.35 0.1 Incyte INCY 96.59 1.0 PensareAcqn WRLS 11.21 8.8 TG Therap TGTX 9.78 1.5
Bristol-MyersRt CELGr 0.41 -2.7 LSC Comm LKSD 0.32 -5.0 SRAX SRAX 1.05 14.8
52-Wk % 52-Wk % 52-Wk % FinServAcqnUn FSRVU 10.64 0.2 InglesMarkets IMKTA 45.19 3.8 PerformanceFood PFGC 47.72 ... TechnicalComms TCCO 10.49 308.2
CNS Pharm CNSP 3.65 -4.1 LonestarRscs LONE 1.80 -1.0 SanchezMidstrm SNMP 0.23 -4.6
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg FirstRepBank FRC 113.53 0.4 Intellicheck IDN 8.34 -7.8 Perma-Fix PESI 7.69 3.5 TenetHealthcare THC 37.37 0.5
CabalettaBio CABA 8.09 -9.9 LoralSpace LORL 30.77 -3.0 SparkNetworks LOV 4.40 0.7
FirstUS Bcshs FUSB 10.81 0.1 IntlSeaways INSW 28.16 0.4 PreformedLine PLPC 76.60 1.9 TheBancorp TBBK 11.98 2.2
Canaan CAN 6.46 -9.4 MarinSoftware MRIN 1.28 -11.0 SteelConnect STCN 1.19 -2.4
Arvinas ARVN 42.63 9.5 CapitalOne COF 102.57 0.2 FlexionTherap FLXN 21.05 3.9 iStar STAR 13.81 -0.1 PrestigeCnsHlth PBH 39.22 1.5 Tiptree TIPT 8.21 4.5
Cemtrex CETX 1.11 -5.3 MereoBioPharma MREO 1.75 -8.4 Synalloy SYNL 11.55 -0.7
Highs AudentesTherap BOLD 59.51
AuriniaPharm AUPH 18.49
0.3
12.2
CarriageSvcs CSV
CirrusLogic CRUS
27.53
74.57
0.3
0.5
FortySeven
Franchise
FTSV
FRG
35.00
14.99
13.9
0.7
JuniperIndustrial JIH.U
Kellogg K
10.04
66.87
...
0.2
PrincipiaBio
ProvidentFin
PRNB
PROV
49.74
22.74
16.5
0.9
TottenhamAcqnI TOTA
TrancntlRlty TCI
10.49 0.3
Cerus
39.28 -0.5
CERS
CheckpointTherap CKPT
3.70 -0.8
1.12 -2.4
MohawkGroup MWK
NV5Global NVEE
4.42 -13.5
44.58 -3.2
TabulaRasaHlth TRHC 39.55 -1.3
Tengasco TGC 0.47 -0.5
ABB ABB 22.75 ... AutoZone AZO 1274.41 6.9 CommerceBcshrs CBSH 65.33 0.5 GS Acquisition GSAH.U 11.73 3.9 KeyCorp KEY 19.80 0.4 RandolphBancorp RNDB 18.34 4.3 Tredegar TG 22.82 1.3
ChinaRapidFin XRF 1.41 -1.7 NakedBrand NAKD 0.03 -1.0 TetraphasePharm TTPH 2.07 -8.8
AES AES 19.23 1.8 AvadelPharm AVDL 7.93 4.9 CommsSystems JCS 8.87 4.3 GSAcquisitionWt GSAH.WS 2.20 29.2 KilroyRealty KRC 85.29 -0.2 Repay RPAY 14.98 0.5 Tricida TCDA 43.72 5.6
Conn's CONN 13.45 -33.4 NamTaiProperty NTP 7.89 -1.2 TonixPharm TNXP 0.88 -6.9
AK Steel AKS 3.47 2.7 AxsomeTherap AXSM 49.30 8.0 CmntyTrBcp CTBI 45.52 0.7 GSAcquisition GSAH 11.05 1.6 LMP Auto LMPX 15.65 75.5 ReproMedSys KRMD 6.30 6.1 TriStateCapital TSC 25.11 0.6
ContinentalMatls CUO 7.48 -6.4 NewAgeBev NBEV 1.81 -6.6 TransEnterix TRXC 0.17 2.1
AccelEnt ACEL 11.78 2.6 B.RileyPrMerg BRPM.U 10.28 0.3 CompassDiversif CODI 24.95 -0.6 Galapagos GLPG 217.29 -0.2 LamarAdv LAMR 87.60 -0.4 RyersonHolding RYI 12.11 0.3 UnvlTechInst UTI 8.00 -7.2
CrossTimbers CRT 7.69 -2.4 9F JFU 8.41 -9.1 TravelCenters TA 8.95 -3.2
AcceleronPharma XLRN 50.50 1.1 BancoSantPfd6 SANpB 23.96 0.9 Cosan CZZ 19.30 1.9 GalileoAcquisition GLEO.U 10.18 0.1 MI Homes MHO 46.57 -0.7 SPX SPXC 50.70 1.4 UrstadtProp A UBA 24.84 -0.1
DesignerBrands DBI 13.88 -16.3 NovaLifestyle NVFY 0.39 -0.5 TrinityPlace TPHS 2.81 2.1
Adecoagro AGRO 8.05 3.6 BankofAmNt66 MERpK 26.94 -0.1 CountyBancorp ICBK 25.80 ... Gallagher AJG 94.52 -0.3 Marsh&McLen MMC 108.80 0.3 Sanofi SNY 48.41 6.2 UrstadtBiddle UBP 19.55 1.5
Dynatronics DYNT 0.64 -4.4 OccidentalPetrol OXY 37.25 0.6 Tuniu TOUR 2.18 -2.2
AgilentTechs A 83.80 1.6 BankofAmPfdL BMLpL 23.80 0.4 DecipheraPharm DCPH 56.50 2.7 Genesco GCO 53.20 2.2 MedicalProp MPW 21.63 0.5 ScorpioTankers STNG 37.41 -0.7 VICI Prop VICI 25.02 -0.1
Endologix ELGX 2.12 -2.7 OceanPwrTech OPTT 0.74 -7.3 Tupperware TUP 7.28 -2.6
AimmuneTherap AIMT 31.90 5.9 BankofCommerce BOCH 11.87 1.7 Dick's DKS 48.40 1.2 GSK GSK 46.18 1.1 Medicines MDCO 84.48 0.1 Seaspan SSW 13.83 2.4 VictoryCapital VCTR 21.60 1.6
Euroseas ESEA 0.33 -20.0 Orgenesis ORGS 2.35 1.9 TwinDisc TWIN 9.50 -4.8
Alico ALCO 35.68 2.6 BauschHealth BHC 29.47 0.1 DorianLPG LPG 15.07 1.1 GlobalMedREIT GMRE 14.26 -0.1 Merck MRK 89.53 0.4 SecurityNatFin SNFCA 5.74 1.7 Vipshop VIPS 13.88 3.5
Farmmi FAMI 1.01 1.9 Overstock OSTK 7.00 -1.8 UnumTherapeutics UMRX 0.52 -10.3
Allegion ALLE 124.57 ... BellRingBrands BRBR 21.49 -1.1 DouglasEmmett DEI 45.08 -0.3 GlShipLeasePfdB GSLpB 25.92 2.0 Meridian MRBK 19.66 1.4 Sony SNE 66.70 0.6 WestBancorp WTBA 24.88 0.9
FrequencyElec FEIM 9.39 -4.7 PingtanMarineEnt PME 1.21 -4.9 UpFintech TIGR 3.25 -1.2
Amdocs DOX 70.20 -0.8 BlackstoneMtg BXMT 37.02 -0.1 Dover DOV 113.51 0.3 GlobeLife GL 104.43 0.4 MorphoSys MOR 34.69 1.4 SouthPlainsFin SPFI 19.92 2.4 XenonPharms XENE 14.95 5.6
FutureFinTech FTFT 0.46 -1.2 Pinterest PINS 17.65 -1.2 Upwork UPWK 9.35 -4.4
Amedisys AMED 167.93 0.5 BostonSci BSX 44.31 0.7 EagleBncpMT EBMT 22.25 2.5 GoldmanSachsBDC GSBD 21.94 2.2 NatlGeneralPfdB NGHCO 25.50 -0.5 SoCA Ed pfB SCEpB 22.25 -1.1 GalectinTherap GALT 2.74 -3.8 PivotalAcqnA PVT 8.92 -1.8 Ventas VTR 56.20 -1.4
AmerFinl5.125%Deb AFGC
ApolloInv AINV
25.72
17.23
0.2
-0.1
BridgeBioPharma BBIO 39.64
Bristol-Myers BMY 62.37
1.8
1.3
EaglePointNts28 ECCX
EidosTherap EIDX
26.15
61.94
-0.1
0.9
GossamerBio GOSS
GuarFedBcsh GFED
26.90
26.93
5.2
2.2
NatlSecurity NSEC
NeoleukinTherap NLTX
15.50
8.55
13.7
26.8
SpiritRealtyCap SRC
SpringWorks SWTX
53.23
30.42
...
7.2
Lows Gannett GCI
GreenlandTech GTEC
5.85 -3.6
6.06 -5.2
Plantronics
PolymetMining PLM
PLT 22.80 -1.9
0.28 ...
Weidai
WestwaterRscs WWR
WEI 3.21 -13.3
2.30 ...
arGEN-X ARGX 156.22 1.8 BroadmarkRealty BRMK 12.75 -2.9 8iEntsAcqnWt JFKKW 0.60 ... HanoverIns THG 139.84 0.7 NewFrontier NFC 10.83 -0.6 St.Joe JOE 20.39 1.9 AMC Networks AMCX 35.60 -5.5 Greenlane GNLN 2.55 -3.2 PyxusIntl PYX 6.81 -8.7 XpresSpa XSPA 0.57 -8.2
ArQule ARQL 20.10 1.3 BrookfieldRenew BEP 48.72 1.0 Enbridge ENB 39.25 -0.2 Headhunter HHR 22.75 4.2 NorthernTrust NTRS 109.53 -0.3 StageStores SSI 7.60 -5.2 AchieveLifeSci ACHV 0.83 -15.4 IZEA IZEA 0.21 -3.7 QurateRetailB QRTEB 8.05 -6.7 YatraOnline YTRA 3.27 1.5

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 Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
Edgewood Growth Instituti Puritn 22.43 -0.01 18.2 JPMorgan I Class IncomeFd NA ... NA BalAdml 38.80 -0.02 19.6 USGroAdml 111.87 -0.19 28.7 WndsrII 38.58 -0.02 25.3
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. EdgewoodGrInst 37.14 -0.11 29.0 SAIUSQtyIdx 14.55 ... 30.3 EqInc 19.22 -0.01 23.3 PIMCO Funds I2 CAITAdml 12.09 ... 6.7 ValAdml 45.91 -0.03 22.6 VANGUARD INDEX FDS
Fidelity SrsEmrgMkt 19.78 -0.01 20.5 JPMorgan R Class Income NA ... NA CapOpAdml r162.50 +0.07 23.1 WdsrllAdml 68.47 -0.04 25.4 MdCpVlAdml 60.50 -0.01 24.4
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
500IdxInstPrem109.26 -0.12 27.4 SrsGlobal 12.97 -0.01 17.1 CoreBond 11.94 ... 8.7 PIMCO Funds Instl DivAppIdxAdm 33.13 -0.10 26.4 WellsIAdml 66.67 -0.04 15.1 SmValAdml 57.82 -0.02 19.6
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, CorePlusBd 8.48
Contrafund K6 14.00 -0.02 26.4 SrsGroCoRetail 18.99 ... 34.4 ... 9.0 IncomeFd NA ... NA EMAdmr 35.35 -0.01 13.7 WelltnAdml 75.60 -0.07 20.3 TotBd2 11.03 ... 8.6
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r ExtMktIdxInstPre 65.20 -0.04 24.7 SrsIntlGrw TotIntl
17.62 -0.03 31.5 Lord Abbett A Price Funds EqIncAdml 79.32 -0.08 21.8 WndsrAdml 76.58 -0.09 26.1 17.42 ... 17.1
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not IntlIdxInstPrem 43.07 -0.03 18.8 SrsIntlVal 10.02 +0.01 16.5 ShtDurIncmA p 4.21 ... 5.2 BlChip 120.35 -0.29 25.3 ExplrAdml 99.54 -0.09 28.0 TotSt 77.65 -0.08 26.7
available due to incomplete price, performance or cost data. NE-Not released by Lipper; VANGUARD FDS
MidCpInxInstPrem 23.59 -0.03 27.1 TotalBond 10.90 ... 9.6 Lord Abbett F EqInc 32.96 -0.06 22.8 ExtndAdml 93.63 -0.05 24.7 DivdGro 30.97 -0.03 27.6 VANGUARD INSTL FDS
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. SAIUSLgCpIndxFd 16.90 -0.02 27.3 Fidelity SAI ShtDurIncm 4.20 -0.01 5.1 EqIndex 83.71 -0.09 27.1 GNMAAdml 10.55 ... 5.8 BalInst 38.80 -0.03 19.5
INSTTRF2020
24.33 ... 15.7
SmCpIdxInstPrem 21.09 +0.03 22.8 TotalBd 10.50 ... 9.6 Lord Abbett I Growth 71.96 -0.21 26.0 GrwthAdml 90.68 -0.15 32.2 INSTTRF2025
24.84 -0.01 17.3 DevMktsIndInst 13.88 ... 18.5
Tuesday, December 10, 2019 TMktIdxInstPrem 89.20 -0.09 26.9 First Eagle Funds ShtDurInc p 4.20 ... 5.2 HelSci 83.73 +0.33 25.0 HlthCareAdml r 92.54 +0.35 20.4 INSTTRF2030
25.16 -0.01 18.5 DevMktsInxInst 21.69 ... 18.5
Net YTD Net YTD Net YTD USBdIdxInstPrem 11.93 -0.01 8.5 GlbA 59.78 +0.03 17.5 Metropolitan West InstlCapG 44.34 -0.10 24.2 HYCorAdml r 5.93 ... 15.0 INSTTRF2035
25.46 -0.01 19.5 ExtndInst 93.63 -0.05 24.8
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret Fidelity Advisor I FPA Funds TotRetBd 10.95 -0.09 8.0 IntlStk 18.25 ... 21.9 InfProAd 26.14 -0.01 8.0 INSTTRF2040
25.77 -0.02 20.6 GrwthInst 90.68 -0.15 32.3
NwInsghtI 33.87 -0.07 25.5 FPACres 34.09 -0.04 17.6 TotRetBdI 10.94 -0.10 8.1 MidCap 97.45 -0.22 27.6 IntlGrAdml 99.30 +0.12 25.3 INSTTRF2045
26.00 -0.01 21.4 InPrSeIn 10.65 ... 8.0
American Century Inv Baird Funds EmMktCorEq 20.63 +0.01 9.4 Fidelity Freedom Franklin A1 TRBdPlan 10.30 -0.09 8.2 N Inc 9.71 ... 9.1 ITBondAdml 11.83 -0.01 10.2 InstIdx 284.58 -0.30 27.4
Ultra 52.45 -0.07 29.7 AggBdInst 11.24 +0.01 9.4 IntlCoreEq 13.52 ... 18.2 INSTTRF2050
26.03 -0.02 21.4
FF2020 16.51 ... 15.7 CA TF A1 p 7.65 +0.01 9.2 MFS Funds Class I NHoriz 65.00 -0.28 34.9 ITIGradeAdml 10.04 -0.01 10.2 InstPlus 284.60 -0.30 27.4
American Funds Cl A CorBdInst 11.58 ... 9.9 IntSmCo 18.95 +0.02 20.1 IntlVal 37.31 +0.08 16.2
FF2025 14.46 -0.01 16.8 IncomeA1 p 2.29 ... 12.8 ValueI 44.20 -0.08 26.6 OverS SF r 11.08 +0.01 19.1 LTGradeAdml 11.18 +0.01 21.2 InstTStPlus 67.51 -0.07 26.9
AmcpA p 33.78 -0.02 21.8 BlackRock Funds IntSmVa 19.23 +0.02 16.9 LifeCon 20.99 ... 14.2
FF2030 17.99 ... 18.7 FrankTemp/Frank Adv MFS Funds Instl R2020 22.80 -0.01 16.7 MidCpAdml 215.72 -0.27 27.4 MidCpInst 47.66 -0.05 27.4
AMutlA p 43.92 -0.02 18.8 HiYldBd Inst 7.71 +0.01 13.9 LgCo 24.28 -0.02 27.3 IncomeAdv 2.27 IntlEq 27.86 -0.05 24.4 R2025 LifeGro 35.68 -0.02 19.9
Freedom2020 K 16.50 ... 15.8 ... 13.0 18.21 -0.01 18.0 MuHYAdml 11.78 +0.01 9.1 MidCpIstPl 235.03 -0.29 27.4
BalA p 28.62 -0.03 16.6 BlackRock Funds A TAUSCoreEq2 19.96 -0.01 25.6 Freedom2025 K 14.45 ... 17.0 FrankTemp/Franklin A Northern Funds R2030 26.59 -0.02 19.2 MuIntAdml 14.47 +0.01 6.7
LifeMod 28.73 -0.01 17.1
RealEstaInstl 20.29 -0.12 27.1
BondA p 13.25 -0.01 7.7 GlblAlloc p 19.49 -0.01 14.5 US CoreEq1 25.62 -0.02 26.2 Freedom2030 K 17.98 ... 18.9 RisDv A p 67.58 -0.12 26.0 StkIdx 36.33 -0.04 27.2 R2035 19.54 -0.01 20.2 MuLTAdml 11.96 ... 8.4 PrmcpCor 28.97 ... 23.8 SmCapInst 77.84 -0.08 24.3
CapIBA p 62.96 -0.04 14.6 BlackRock Funds Inst US CoreEq2 23.52 -0.01 25.4 Freedom2035 K 15.08 ... 20.9 FrankTemp/Franklin C Nuveen Cl I R2040 27.85 -0.03 20.9 MuLtdAdml 11.08 ... 3.9 STAR 28.16 +0.01 19.6 STIGradeInst 10.72 ... 5.6
CapWGrA 50.88 -0.03 20.7 EqtyDivd 20.29 ... 23.9 US Small 34.98 -0.01 18.5 Freedom2040 K 10.54 ... 21.6 Income C t 2.33 ... 12.5 HYMunBd 17.99 +0.02 11.8 Value 37.37 -0.02 22.2 MuShtAdml 15.85 ... 2.4 TgtRe2015 15.72 ... 13.4 STIPSIxins 24.77 ... 4.4
EupacA p 55.18 +0.01 22.5 MultiAstIncome 10.88 +0.01 12.5 US SmCpVal 34.19 ... 14.9 Fidelity Invest FrankTemp/Temp Adv Oakmark Funds Invest PRIMECAP Odyssey Fds PrmcpAdml r149.08 +0.02 23.3 TgtRe2020 33.11 -0.01 15.6 TotBdInst 11.07 ... 8.8
FdInvA p 63.23 -0.06 23.1 StratIncOpptyIns 9.91 ... 6.6 US TgdVal 23.13 ... 17.9 Balanc 24.58 ... 21.2 GlBondAdv p 10.60 -0.02 -0.8 OakmrkInt 24.39 -0.11 19.2 AggGrowth r 46.21 -0.05 20.7 RealEstatAdml131.11 -0.76 27.1 TgtRe2025 19.95 -0.01 17.3 TotBdInst2 11.03 ... 8.7
GwthA p 52.83 -0.10 23.6 Bridge Builder Trust USLgVa 38.47 -0.07 21.7 BluCh 103.44 +0.03 27.7 Guggenheim Funds Tru Old Westbury Fds Growth r 41.69 -0.03 20.0 SmCapAdml 77.84 -0.08 24.2 TgtRe2030 36.49 -0.02 18.4 TotBdInstPl 11.07 ... 8.8
HI TrA p 9.93 +0.01 9.8 CoreBond 10.47 ... 9.1 Dodge & Cox Contra 13.68 -0.02 25.4 TotRtnBdFdClInst 27.22 ... 4.9 LrgCpStr NA ... NA Stock r 35.46 ... 23.3 SmGthAdml 68.38 -0.12 29.6 TgtRe2035 22.48 -0.01 19.4 TotIntBdIdxInst 34.80 +0.01 8.0
ICAA p 40.12 -0.04 20.2 CorePlusBond 10.33 ... 9.1 Balanced 104.51 +0.01 16.9 ContraK 13.70 -0.02 25.5 Harbor Funds Parnassus Fds Schwab Funds STBondAdml 10.56 -0.01 4.6 TgtRe2040 38.94 -0.02 20.5 TotIntlInstIdx r116.53 +0.01 17.2
IncoA p 23.49 -0.01 16.4 Intl Eq 11.84 ... 18.9 GblStock 13.11 ... 18.9 CpInc r 10.09 ... 16.8 CapApInst 79.46 -0.16 28.2 ParnEqFd 46.06 -0.05 27.7 1000 Inv r 71.05 -0.08 27.4 STIGradeAdml 10.72 ... 5.6 TgtRe2045 24.52 -0.01 21.3 TotItlInstPlId r116.56 +0.01 17.2
N PerA p 47.18 -0.04 25.2 Del Invest Instl Income 14.17 ... 9.4 GroCo 21.33 ... 33.1 Harding Loevner PGIM Funds Cl Z S&P Sel 48.78 -0.05 27.3 TotBdAdml 11.07 ... 8.7 TgtRe2050 39.46 -0.02 21.3 TotStInst 77.70 -0.08 26.8
NEcoA p 47.22 +0.01 21.6 Value 22.53 -0.03 16.7 Intl Stk 43.46 +0.03 17.7 GrowCoK 21.36 ... 33.3 IntlEq NA ... NA TotalReturnBond NA ... NA TSM Sel r 55.30 -0.05 26.9 TotIntBdIdxAdm 23.19 +0.01 8.0 TgtRet205542.83 -0.03 21.3 ValueInst 45.91 -0.03 22.6
NwWrldA 70.34 -0.08 22.6 Dimensional Fds Stock 198.69 +0.01 20.7 InvGrBd 11.58 ... 9.6 Invesco Funds A PIMCO Fds Instl TIAA/CREF Funds TotIntlAdmIdx r 29.14 ... 17.2 TgtRetInc 14.06 ... 12.0 WCM Focus Funds
SmCpA p 59.49 -0.02 26.8 5GlbFxdInc 10.97 ... 4.0 DoubleLine Funds LowP r 48.96 +0.10 21.9 EqIncA 10.58 -0.01 17.3 AllAsset NA ... NA BdIdxInst 11.12 -0.01 8.3 TotStAdml 77.69 -0.08 26.8 TotIntBdIxInv
11.60 ... 7.9 WCMFocIntlGrwIns 18.24 +0.01 30.4
TxExA p 13.33 ... 7.0 DFARlEst 40.93 -0.24 26.5 CoreFxdIncmI 11.08 ... 7.7 Magin 11.29 -0.02 27.2 Invesco Funds Y TotRt 10.43 ... 8.4 VANGUARD ADMIRAL TxMCapAdml161.63 -0.16 27.5 WellsI 27.52 -0.02 15.1 Western Asset
WshA p 48.51 -0.04 22.0 EmgMktVa 27.55 +0.05 4.2 TotRetBdI 10.67 -0.01 5.9 OTC 12.40 ... 33.6 DevMktY 44.39 -0.05 18.1 PIMCO Funds A 500Adml 290.21 -0.31 27.3 TxMIn r 13.86 ... 18.4 Welltn 43.78 -0.03 20.2 CorePlusBdI NA ... NA
 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, December 11, 2019
STREETWISE By James Mackintosh
Many Factors Go Into Market Forecasts
Is it better
to be lucky or
right? This
time last year,
both Citi-
group and
J.P. Morgan had what
looked like outlandishly bull-
ish forecasts for where the
S&P 500 would end 2019,
and, barring a major upset in
the next few weeks, are the
closest among the major
Wall Street banks to being
right.
Both were right because
they thought the big selloff
at the end of 2018—down
more than 20% on an intra-
day basis—was excessive.
Other forecasters were too
cautious, in part because
they thought the market was
right to brace for recession.
The year’s best forecasts
show both where forecasting
can work and why it is possi-
ble to make money even
while getting many major
predictions entirely wrong.
They also show why some-
times it is best not to look at
the market too often.
Start with what they got
right in producing their 3100
target for the S&P. (It closed
at 3132.52 on Tuesday.) To-
bias Levkovich, chief U.S. eq-
uity strategist at Citigroup,
correctly put a lot of weight
on his measure of market
panic. He thought the
chances were that the selloff
was overdone.
“Luck, it’s called luck,” Mr.
Levkovich said, before ex-
plaining that his “panic-eu-
phoria” model was one of
the primary contributors to
his prediction.
John Normand, head of
cross-asset fundamental
strategy at J.P. Morgan, com-
pared past recessions with
the 2018 stock fall and con-
cluded investors were pre-
paring for an imminent re-
cession, which he didn’t
expect.
Marketing Startup
Raises $200 Million
BY NAT IVES
You & Mr Jones Inc., a pro-
vider of digital and mobile-
technology services for mar-
keters, said it raised $200
million in a funding round that
gives it a valuation of $1.3 bil-
lion.
The valuation suggests in-
vestors are optimistic the
company can use technology
to help brands more than
holding companies that domi-
nate advertising and market-
ing.
You & Mr Jones is also a
big player in helping market-
ers take control of digital mar-
keting duties they once out-
sourced to ad agencies.
“We are starting to see the
no
disrupters in this industry get
to values that mean they’re
starting to be significant com-
panies,” said David Jones,
founder and chief executive of
You & Mr Jones.
An ad-industry veteran and
a former chief executive of
French ad holding company
Havas, Mr. Jones formed You
& Mr Jones in 2015 with the
help of $350 million from in-
vestors. The company pitched
itself as a “brandtech” firm,
trying to signal mastery of
branding and technology, a
combination that Mr. Jones
calls rare.
The term hasn’t caught on.
“The way people understand
fintech or biotech, they will
understand what brandtech is
in a few years,” he said.
Mortgage
Giants Curb
Some Loans
Continued from page B1
are worth. Mr. Calabria said
the change would focus the
programs on the people they
are meant to serve.
As a result, these mort-
gages made up a shrinking
share of Fannie- and Freddie-
eligible loans in the third
quarter for the first time in
years, according to CoreLogic
Inc.
“When they plan ahead for
Upwardly Inclined
Wall Street almost always expects Treasury yields to rise.
10-year U.S. Treasury yields
4%
3
2 harder this year. That is be-
1 cautious nor wildly bullish.
0 hold and geopolitical risk
2009
Sources: Consensus Economics via FactSet (forecasts); Refinitiv (actual)
B
oth approaches should
be a standard part of
every investor’s tool
kit. Sentiment matters, and
when markets are panick-
ing—or excessively optimis-
tic—they offer great money-
making opportunities. Those
able to take a coldblooded
view of what stocks are pric-
ing in and compare it with
what is likely to happen
should also do well, avoiding
being drawn into the waves
of greed and fear that wash
over other investors.
But it is also important to
be humble. This year, stocks
soared in part because they
had fallen so much. But it
was also because the Federal
Reserve reversed course and
bond yields plummeted. Mr.
Levkovich had expected the
opposite, thinking that rising
us l,
wages would feed through to
inflation and higher bond
al a
e
yields. Mr. Normand was
more cautious on the Fed
but didn’t expect it to rush
ci on
into easing the way it did.
Getting such a crucial ele-
ment of a financial forecast
er rs
m e
m rp
You & Mr Jones’s services
are in step with industry
trends, including marketers’
building in-house efforts. A
co Fo
2018 survey from the Associa-
tion of National Advertisers
found 78% of the group’s
members had an in-house
agency, up from 58% in 2013.
The marketing industry is
seeing a crop of new players
rise to try to take business
from established powers by
promising lower costs, faster
project turnarounds and
more expertise with digital
and data. Former WPP chief
Martin Sorrell is steadily
n-
building his own new ad
holding company, S4 Capital,
which says it will help mar-
keters take back control from
agencies.
Since its launch, You & Mr
Jones has acquired eight com-
panies and invested in others,
including Pinterest Inc. and
Niantic Inc., which developed
the videogame “Pokémon Go.”
You & Mr Jones says it has
grown to 3,000 employees in
40 countries and its clients in-
clude Unilever PLC, Microsoft
Corp., Hertz Global Holdings
Inc. and Adidas AG. Unilever
used Oliver, a company that
helps marketers develop in-
house marketing units and
that You & Mr Jones bought in
January, to build its internal
agency, U-Studio.
You & Mr Jones plans to use
its new funds to expand geo-
graphically and to strengthen
its current offerings.
this future private world, they
don’t want to be viewed as
having a high-risk portfolio,”
said David Battany, executive
vice president for capital mar-
kets for Guild Mortgage Co., a
San Diego-based lender.
Mr. Battany said Fannie and
Freddie are rejecting some of
his firm’s loans that they once
would have agreed to back.
Fannie and Freddie don’t
make loans. Instead, they pur-
chase loans from banks and
other lenders and package
them to sell to investors, then
guarantee payments on them.
Fannie and Freddie im-
ploded during the financial
crisis after backing loans to
borrowers who couldn’t pay
them. The government seized
the companies and beefed up
BANKING & FINANCE
Consensus forecast
Actual
’15
as the Fed wrong and yet
getting the stock market
right shows just how impor-
tant it was to spot that re-
cession fears were overdone.
A merely stable economy, as
Mr. Normand expected, was
enough to send stocks soar-
ing when investors were
readying for something
much worse.
It was hard to stick with a
forecast made in November
when markets fell so much
in the following month. Mr.
Levkovich’s win comes with
an asterisk. Just before the
year ended, he trimmed his
initial prediction for 2020
stock gains to reflect the
on lower starting point.
Y
et, he remained bull-
ish. Most of Wall
Street was far too cau-
tious. Goldman Sachs ex-
pected the S&P to hit 3000,
although said this forecast
came with deep uncertainty.
Bank of America Merrill
Lynch thought there would
be four Fed rate rises and
expected the end-2018 selloff
‘We are in line with our plan and even ahead in several areas,’ says CEO Christian Sewing.
Deutsche Bank Cites Headway
On Cost Cuts, Stabilization
BY JENNY STRASBURG
FRANKFURT—Deutsche
Bank AG said it is making
progress cutting costs and sta-
bilizing businesses weakened
from revenue declines in its
effort to convince investors
that an ambitious five-month-
old reorganization is on track.
Germany’s biggest lender
on Tuesday kicked off a day of
presentations for investors
with a statement from Chief
Executive Christian Sewing
that the bank has made head-
way, despite economic and
other challenges.
“We are in line with our
their affordability mandates.
Now, the Trump adminis-
tration wants to return Fannie
and Freddie to private hands.
Mr. Calabria, who was in-
stalled as head of the FHFA
this year, has long been criti-
cal of Fannie and Freddie.
Banks and investors could
reap big financial rewards if
the companies return to pri-
vate-sector ownership—
though skeptics say that won’t
eliminate the risk that taxpay-
ers could someday end up
footing the bill in another cri-
sis.
The administration still
needs to answer important
questions about how it would
privatize the companies. But
in a September report laying
out its plans, the Treasury De-
to worsen before a V-shaped
rebound to just 2900 on the
S&P. In fact, the index fell
below where it started the
year on just one day in early
January. Morgan Stanley
pegged the S&P at 2750,
while French banks were
even more bearish, with So-
ciété Générale predicting
the S&P at 2400, almost 25%
below where it stands now.
Predictions will be even
cause market sentiment
gauges offer little to go on,
being neither excessively
Mr. Normand argues that
stable economic environ-
ments with central banks on
ebbing should also allow for
’20
sensible forecasting, as there
is less chance of extreme
market swings.
H
e is forecasting ex-
actly this next year,
with a better econ-
omy and rising stocks: Re-
turns won’t be as good as
this year as much of the eco-
nomic improvement has al-
ready been anticipated, he
thinks.
This looks like a perfectly
sensible view, but it is easy
enough to build a bear case
involving electoral upsets, a
recession, the return of
Brexit risk and trade fights.
A bull case could be based
on a lending boom in the
wake of the Fed’s rate cuts,
helping bank profits and
pushing up stock valuations;
or the European economy
might return to life. Even
working out the odds the
market is putting on each of
these and many other sce-
narios is hard, let alone de-
ciding where those probabili-
ties are out of line with what
is likely to happen.
It is easier to be both
lucky and right when the
market is at an extreme.
plan and even ahead in several
areas,” he said.
Deutsche Bank said fourth-
quarter fixed-income reve-
nue—closely watched as a ba-
rometer for the investment
bank and broader group per-
formance—is up from a year
earlier. The bank didn’t pro-
vide numbers.
The stronger showing in
the securities and trading
business led executives to
boost projected revenue
growth in the investment bank
between now and 2022.
And Deutsche Bank will
need that growth. On Tuesday,
it cut revenue-growth projec-
partment warned against loos-
ening underwriting standards.
Mr. Calabria said he wants
to make sure the companies
won’t require another bailout.
He said he also wants Fannie
and Freddie to avoid making
loans that may go bad during
a downturn.
“I think there’s a lot of evi-
dence that we’re near the top
of this cycle,” Mr. Calabria
said. “It would be counter to
their mission where we get
borrowers into loan products
that would leave them vulner-
able in a downturn.”
Fannie’s and Freddie’s af-
fordability mandates remain in
place, and Mr. Calabria said
the recent changes are a joint
effort between the companies
and the FHFA. Mr. Calabria
THE WALL STREET JOURNAL.
Activist
Takes Aim
At Mednax
Starboard Value physician services, including
anesthesia and newborn and
nominates board pediatric-cardiology care.
slate, pushes for The company has been
taking steps to refocus the
partial or full sale business on its physician ser-
vices and flatten its organi-
BY CARA LOMBARDO zational structure.
AND CORRIE DRIEBUSCH It sold its management-
service business, MedData,
Activist investor Star- to Frazier Healthcare Part-
board Value LP has privately ners in October after starting
nominated a majority slate a sale process roughly a year
of directors at Mednax Inc. earlier.
and is pushing the health- Mednax’s stock has fallen
care-services company to sell 25% this year, continuing a
all or part of itself, people four-year slide, as it has
familiar with the matter been buffeted by factors in-
said. cluding higher expenses and
Starboard, which has a big goodwill-impairment
taken a sizable stake in Med- charge in the recent quarter.
nax, submitted the slate The S&P 500 has risen 25%
ahead of the company’s nom- this year.
ination deadline a little over Mednax drew buyout in-
a week ago, the people said. terest last spring but never
The two sides are in dis- struck a deal.
cussions, and should they Various parties are still
come to an agreement, Star- interested in parts or all of
board could withdraw the the business, some of the
slate. people said.
If not, it plans to push Among activists, Star-
forward with a proxy fight at board is known as one of the
Mednax’s annual meeting more aggressive and it is
.
next year. willing to nominate majority
ly
“We are aware that Star- director slates that could
board has made an invest- hand it control of a company
ment in the company and should it prevail in a proxy
have met with them as a new fight. It replaced the entire
shareholder,” Mednax. board of Darden Restau-
“The Mednax board and rants Inc. several years ago.
leadership team value the Still, activists sometimes
views of all of its sharehold- privately nominate big slates
ers and welcome a construc- and later scale them back to
tive dialogue with Star- win support from other
board,” Mednax said. shareholders and proxy ad-
Based in Sunrise, Fla., visers.
Mednax, which had a market Another activist hedge
value of $2.1 billion as of fund, Elliott Management
Tuesday’s close, owns medi- Corp., previously took a large
cal practices and provides stake in Mednax in 2017.
AutoZone
Shares Set
Record
BY DAVE SEBASTIAN
AND KAREN LANGLEY
Shares of AutoZone Inc.
surged to a record after the dis-
tributor of automotive replace-
ment parts and accessories re-
ported higher-than-expected
ALEX KRAUS/BLOOMBERG NEWS
sales and profit.
The 6.9% jump in share
price, AutoZone’s largest sin-
gle-session gain since March
2009, was only the latest ad-
vance for a company whose
shares have more than doubled
since July 2017.
Over the past two years, Au-
toZone has benefited from sev-
eral factors boosting the do-it-
yourself auto-repair industry,
such as a healthy U.S. con-
sumer, more older vehicles on
the road and harsher winter
weather in the U.S., said Zach-
ary Fadem, senior analyst at
tions in its retail- and private- Wells Fargo Securities.
banking division and asset Commercial sales, which
management, making it more comprised 22% of total sales,
reliant on corporate and in- also are a strong point for the
vestment-banking perfor- company. AutoZone reported
mance than previously stated. that commercial sales grew by
Interest-rate cuts and other 14% for the quarter ended Nov.
factors have frustrated 23 to post a fifth consecutive
Deutsche Bank’s efforts to rely quarter of double-digit growth.
less on trading revenue. AutoZone reported that
Many analysts consider the sales rose 5.7% to $2.79 billion,
bank’s financial targets unreal- beating the $2.77 billion ana-
istic, a view that permeated lysts polled by FactSet antici-
questions to executives in pated. The parts distributor re-
Frankfurt. Deutsche Bank al- ported net income of $350.3
ready has dialed back its reve- million, or $14.30 a share, com-
nue goals for the next few pared with $351.4 million, or
years since unveiling its reor- $13.47. Analysts were expecting
ganization in July. earnings of $13.81 a share.
has been especially hands-on
when accepting or rejecting
new initiatives, rather than
loans, and these mortgages
can help borrowers who are
struggling with high home
delegating such decisions back
to Fannie and Freddie, people
familiar with the matter said.
prices. But they are also con-
sidered riskier because home-
owners who lose a job or go
That has extended to all
facets of the two entities’
businesses. For example, the
through a divorce have less
breathing room to keep mak-
ing payments.
FHFA ended a pilot program in Fannie backed a higher vol-
September by which Fannie ume of these loans last year,
and Freddie had agreed to accelerating a multiyear rise,
provide financing to nonbank but the company pulled back
mortgage servicers. in early 2019, according to
Fannie and Freddie have people familiar with the mat-
also been tapping the brakes ter. Freddie took those actions
on loans made to borrowers as well. Fannie and Freddie
who devote more than 43% of have now shrunk the share of
their monthly incomes to these loans in their businesses
mortgage payments and other for three straight quarters, ac-
debt. cording to industry research
The companies have tempo- group Inside Mortgage Fi-
rary permission to back these nance.
 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.
BlackRock
Picks U.S.
Debt Over
Others
BY DANIEL KRUGER
The world’s largest money
manager is favoring U.S. Trea-
surys over other sovereign
bonds because it expects
yields outside the U.S. to lin-
ger near recent lows.
Treasurys yield more than
government debt from other
developed markets, which
should support their value if
the pace of global growth
picks up next year, BlackRock
Inc. asset managers said Tues-
day at a media
CREDIT presentation.
MARKETS Global growth
could accelerate
next year after central banks
around the world—including
in the Federal Reserve, Euro-
pean Central Bank and Peo-
ple’s Bank of China—took
steps to lower rates and boost
growth amid a world-wide
slowdown, BlackRock manag-
ers said.
BlackRock prefers short-
term Treasurys over longer-
term U.S. government debt be-
cause investors often seek
higher returns in riskier assets
when economic prospects are
improving, leading them to
sell longer-term Treasurys.
The firm, which had $6.84
trillion in assets under manage-
ment at June 30, is also invest-
ing more in Treasury inflation-
protected securities because its
asset managers think prices
could rise more next year as
growth speeds up and as busi-
nesses pass on some of their
cost increases from U.S. tariffs.
Yields on European debt
may climb if governments in
the region, such as Germany,
increase spending to stimulate
growth and inflation. Those
have disappointed investors
and policy makers in recent
years. Inflation represents a
threat to the value of a bond’s
fixed interest and principal
payments and can spur central
banks to raise rates.
The yield on the benchmark
10-year U.S. Treasury note
rose for the seventh time in
the past nine trading sessions,
settling at 1.833%, versus
1.829% Monday. That com-
pares with a yield of nega-
tive-0.298% on 10-year Ger-
man government debt,
according to Tradeweb. Bond
yields rise as their prices fall.
BlackRock also expects Fed
officials to keep interest-rate
policy on hold next year and a
rise in partisan gridlock in
Washington, predictions
widely shared by a large num-
ber of institutional investors.
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.
NINE-YEAR, 11-MONTH NOTES
Applications $58,379,472,100
Accepted bids $24,000,048,400
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Interest rate
Bids at clearing yield accepted
Cusip number
The notes, dated Dec. 16, 2019, mature on Nov. 15,
2029.
Trade-Sensitive Materials Stocks Lag Behind Broader Market
BY KAREN LANGLEY
The materials sector has
lagged behind the broader S&P
500 this year, and some inves-
tors fear that will continue be-
cause of trade tensions with
China.
The segment, which includes
chemicals, construction materi-
als, packaging
ABREAST OF and metals
THE MARKET companies, is
particularly ex-
posed to the global economy.
While some companies have
grappled with weather and
other individual problems, the
continuing uncertainty over
the trade war is damping ex-
pectations for the world-wide
growth that drives much of the
sector.
The sector has gained 18%
this year, versus the 25% climb
by the S&P 500. Only the en-
ergy and health-care sectors
have performed worse.
Among the stocks contribut-
ing to the underperformance:
Mosaic Co., which said wet
weather in the Midwest
crimped its North American
spring fertilizer sales, and
Eastman Chemical Co., which
cited worsening conditions due
* * * *
Indexes Slip as Downgrade Hits Netflix
BY ANNA ISAAC
AND AKANE OTANI
Stocks inched lower, paring
early declines after Democratic
lawmakers reached an agree-
ment with the Trump adminis-
tration to support a trade deal
with Mexico and Canada.
The trading
TUESDAY’S day unfolded
MARKETS quietly, even as
a flurry of
news caught traders’ and ana-
lysts’ attention. Stock futures
had initially climbed after The
Wall Street Journal reported
that U.S. and Chinese trade ne-
gotiators were looking to delay
a new round of tariffs. They
then erased some of their gains
heading into the opening bell
after House Democrats an-
nounced two articles of im-
peachment against President
Trump.
Markets then drifted off
their lows after House Demo-
crats said they reached an
agreement with the administra-
on
us l,
al a
e
ci on
er rs
m e
m rp
Copper prices rose for a fifth consecutive session Tuesday, a sign of cautious optimism about global economic growth. Rolls of the metal at a Chinese factory.
Futures Traders Hang on Tariff Negotiations
co Fo
BY AMRITH RAMKUMAR
Commodity investors are
closely watching trade devel-
opments between the U.S. and
China, hoping that a resolu-
tion to their trade war will re-
lieve pressure on a host of ma-
terials.
COMMODITIES U.S. and
Chinese trade
negotiators are laying the
groundwork for a delay of a
n-
new round of tariffs set to kick
in on Sunday, The Wall Street
Journal reported Tuesday. The
$6,417,100
duties on Chinese consumer
no
$0 goods ranging from smart-
99.168608
(1.842%)
phones to clothing were wor-
1.750% rying some analysts who ex-
74.25%
912828YS3
pected them to further slow
world trade and global
growth.
to trade tensions when it cut
its outlook in October.
Mosaic has dropped 38% in
2019, while Eastman Chemical
has risen 4.3%.
“It hinges on what happens
with trade policy,” said Chris
Zaccarelli, chief investment of-
ficer for Independent Advisor
Alliance. “That will be the real
catalyst, one way or the other,
for whether you get some re-
covery in the materials sector
versus whether it continues to
be a laggard.”
Investors are particularly
focused on trade negotiations
ahead of a Dec. 15 deadline for
new U.S. tariffs on consumer
goods.
U.S. and Chinese trade ne-
gotiators are laying the
groundwork for a delay of the
tariffs, The Wall Street Journal
reported Tuesday.
The trade war between the
U.S. and China has been
blamed for contributing to a
slowdown in global economic
growth.
World output of goods and
services is expected to increase
this year at the slowest pace
since the financial crisis, with
no increase in global economic
growth expected next year, the
MARKETS
tion on a trade deal with Mex-
ico and Canada.
The Dow Jones Industrial
Average ended the day down
27.88 points, or 0.1%, to
27881.72. The S&P 500 lost 3.44
points, or 0.1%, to 3132.52, and
the Nasdaq Composite edged
down 5.64 points, or 0.1%, to
8616.18.
Developments from Wash-
ington as well as news on trade
could spur further market vola-
tility heading into year-end.
Chinese and U.S. officials in-
volved in the talks to postpone
tariffs on $165 billion of Chi-
nese goods set to kick in on
Dec. 15 say they don’t have a
hard deadline for an initial
deal. “A lot of different options
are still on the table. We just
don’t know what’s going to
happen,” said Oliver Jones,
market economist at Capital
Economics. “At one end of the
spectrum, there’s a deal and
the tariffs rollback. But just last
week we had Trump’s remarks
that there might not be a deal
In one sign that analysts
are hoping for more clarity in
the trade negotiations beyond
a delay, most risky areas of
the market including stocks
and commodities were little
changed. U.S. crude-oil futures
edged up 0.4% to $59.24 a bar-
rel. Brent crude, the global
benchmark of prices, added
0.1% to $64.34 a barrel.
U.S. futures are at their
highest level since mid-Sep-
tember, with some analysts
hoping that better-than-feared
fuel demand and lower supply
around the world will keep oil
stable entering 2020.
In another recent sign of
cautious optimism about trade
and global growth, most-ac-
tive copper futures rose 0.3%
to $2.7655 a pound Tuesday,
Fund and index performance this year
30%
20
10
0 expect
Feb.
Source: FactSet
Organization for Economic Co-
operation and Development
said in November.
The companies in the seg-
ment have already felt the ef-
fects of the long-simmering
trade dispute.
Earnings in the sector de-
clined 9.6% in the third quar-
ter, the most of any group in
the S&P 500 except for energy,
which declined 40%.
That compared with a 2.2%
drop across the broad index of
Share-price and index performance Tuesday
0%
S&P 500
–0.5
–1.0
–1.5
–2.0
–2.5
–3.0
–3.5
10 a.m. 11 noon
Source: FactSet
until after the election.”
Declines among technology
companies weighed on major
indexes, with Netflix down
$9.38, or 3.1%, to $293.12 after
Needham analysts downgraded
rallying for the fifth consecu-
tive session.
They are at their highest
level since mid-May. The in-
dustrial metal is closely tied to
the world economy because it
is vital for construction and
manufacturing and heavily
used in China, which accounts
for roughly half of global con-
sumption.
Still, both oil and copper
remain well below their peaks
hit in mid-April, a sign that in-
vestors remain skeptical about
demand without an overarch-
ing trade agreement.
“Commodities will continue
to be at the whim of trade-talk
negotiations in 2020 unless
we get some major break-
through,” ING analysts said in
a note to clients. “It’s been dif-
S&P 500
Materials Select
Sector SPDR ETF
iShares U.S. Basic
Materials ETF
Dec.
U.S. large-cap stocks.
Meanwhile, 39% of compa-
nies in the materials segment
missed consensus earnings es-
timates, the highest percent-
age among the 11 sectors in the
index, FactSet says.
Despite its underperfor-
mance, the materials sector
still looks relatively expensive.
Its shares are trading at 19.7
times earnings over the past 12
months, compared with 19.2
times for the S&P 500.
Wednesday, December 11, 2019 | B13
Netflix
1 p.m. 2 3 4
the stock to underperform from
hold.
Deal news also drove swings
among individual stocks.
Shares of NortonLifeLock
climbed 88 cents, or 3.5%, to
.
ly
ficult to take a view in 2019
without second-guessing what
the next step might be, and
prices are likely to continue to
whipsaw until we get that
clarity.”
The direction of trade talks
is expected to affect projec-
tions for the world economy in
2020 following a stretch of
middling economic data.
Growth figures have shown
signs of stabilizing lately, but
some analysts are hesitant to
wager on a rebound next year
without the removal of tariff
uncertainty.
Oil investors were looking
ahead to weekly U.S. inventory
figures slated for Wednesday,
with plentiful stockpiles keep-
ing a lid on the recent crude-
price rally. Inventories were
Over the five years through
2018, the sector has traded on
average at 18.4 times the past
year’s earnings, compared with
19.4 for the broader index, ac-
cording to FactSet.
Analysts and investors con-
tinue to be cautious about the
companies in the group.
When Natixis Investment
Managers’ 2019 Global Survey
of Institutional Investors asked
about views on sector perfor-
mance in 2020, materials got
the gloomiest response. The
sector received both the high-
est share of respondents who
underperformance
(36%) and the lowest share
who expect outperformance
(14%).
BofA Global Research in
September cut its rating on the
sector to underweight, sug-
gesting investors hold a lower
weight than the S&P 500
benchmark, due to trade ten-
sions, weak manufacturing
data and a negative long-term
outlook for the steel industry.
RBC Capital Markets down-
graded materials to under-
weight in May, demonstrating
risks from the trade war with
China and weak earnings and
sales revision trends, among
$26.28 after the Journal re-
ported that the consumer-soft-
ware company has attracted
deal interest from several com-
panies, including rival McAfee.
Federal Reserve officials
kicked off their final two-day
policy meeting of the year
Tuesday. Officials are expected
to decide to hold steady on in-
terest rates after lowering their
benchmark rate three times
since July to try to cushion the
U.S. economy against a slow-
down in global growth.
The Stoxx Europe 600
dropped 0.3%, while the U.K.’s
FTSE 100 index dropped 0.3%.
Britain is preparing to head to
the polls Thursday for a general
election.
The WSJ Dollar Index, which
compares the currency with 16
others, fell 0.1% to 90.56.
At midday Wednesday in To-
kyo, the Nikkei 225 Stock Aver-
age was down 0.2%, Hong
Kong’s Hang Seng Index was up
0.2% and South Korea’s Kospi
was up 0.3%.
ASSOCIATED PRESS
3% above their five-year aver-
age for this time of year dur-
ing the week ended Nov. 29,
Energy Information Adminis-
tration figures show.
Stockpiles are expected to
have fallen 2.8 million barrels
during the week ended Dec. 6,
according to the average tar-
get of 10 analysts and traders
surveyed by The Wall Street
Journal.
The Organization of the Pe-
troleum Exporting Countries
and its allies announced
deeper cuts to supply last
week to support prices, but
some analysts still expect
steady U.S. output and produc-
tion from smaller suppliers
such as Norway and Brazil to
keep oil in its current trading
range.
other factors.
The volatility of trade senti-
ment has created opportuni-
ties. Synovus Trust Co. sold
shares of agricultural-product
company Corteva Inc. over the
summer after they rallied on
optimism that China would be
purchasing U.S. farm goods,
said Wade Fowler, senior port-
folio manager at Synovus.
Although the materials sec-
tor has underperformed, nu-
merous companies within the
group have posted standout re-
turns for 2019.
“To us, one of the really at-
tractive parts of the materials
sector is the really idiosyn-
cratic nature of the names,”
said Mark Stoeckle, chief exec-
utive and senior portfolio man-
ager at Adams Funds. “They’re
very different. We have specifi-
cally stayed away from paper—
the outlook for paper is very
difficult—but in the same sec-
tor, you can have something
like a Ball or like a Sherwin,
where things are going incredi-
bly well.”
Shares of packaging com-
pany Ball Corp. have jumped
39% in 2019, while paint maker
Sherwin-Williams Co. has
surged 45%.
 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.

B14 | Wednesday, December 11, 2019 THE WALL STREET JOURNAL.

HEARD STREET FINANCIAL ANALYSIS & COMMENTARY

ON
THE

Cigarette Stocks Try a New Sales Pitch

The swelling volume of investor cash avoiding tobacco companies is leading sector bosses to try an ethics-friendly rebranding

Tobacco-free investing is an old U.S. institutional assets under

story, dating back to at least the management that exclude tobacco
1980s. But the volume of cash ac- $2.5 trillion
tively avoiding the industry is be-
coming harder for cigarette bosses
to ignore.
Almost 130 companies from the
banking and insurance sectors have 2.0
signed the United Nations Tobacco-
Free Finance Pledge since its launch
late last year. The signatories man-
age $8 trillion of assets—around 1.5
10% of the funds managed by the
global asset management industry.
And in a sign that tobacco aversion
is spreading beyond the public mar-
1.0
kets, French bank BNP Paribas
promised to withdraw all corporate
MARK LENNIHAN/ASSOCIATED PRESS

lending to the big cigarette manu-

facturers. AXA, one of the world’s
largest insurers, will no longer un- 0.5
derwrite them.
The U.N. list is dominated by Eu-
ropean names for now, but the ethi-
cal-investing trend is also taking 0
hold stateside. In 2018, U.S.-domi- 2005 ’07 ’10 ’12 ’14 ’16 ’18
ciled institutional investors applied
tobacco exclusions to assets valued Some tobacco companies say their vaping and heated products can put an end to smoking-related diseases. Source: USSIF
at $2.6 trillion, according to US-
SIF—more than double the figure hawkish U.S. regulation. now four times the S&P 500 aver- The weighting of cigarette stocks in are responding to pressure by talk-
recorded when the sustainable-in- Plummeting stocks have made it age, mean that income funds, in the S&P 500 is 0.85% today, down ing up their own sustainability cre-

.
vesting forum carried out its previ- easier for investors to sign up for particular, are reluctant to sell from 1.31% at the end of 2017. dentials. To persuade investors not

ous biennial survey in 2016. To-
bacco screens are now the top
ethical focus for philanthropic foun-
dations, insurance and health-care
institutions.
The sector has performed badly
over the past two years, led by Im-
perial Brands, whose stock is down
initiatives such as the Tobacco-Free
Finance Pledge. The California Pub-
lic Employees’ Retirement System,
the largest pension fund in the U.S.,
on
has been criticized for missing out
on returns estimated at $3.6 billion
since it implemented a self-imposed
ban on investing in the tobacco in-
us l,
ly
down their holdings. Others see op- Cigarette executives are alert to
portunity in the sector’s cheap valu- the risk that social sellers could fur-
ations—funds such as Vitium Global ther depress their valuations, not
like tobacco precisely because it has least because c-suite pay is linked
become a less crowded bet. to share-price performance. Diverg-
Passive investors also provide ing market values could also be-
virtually support via the funds they come more important if there is
run that track market indexes: Van- further consolidation in what re-
to impose a blanket ban, tobacco
bosses are trying out the argument
that their vaping and heated to-
bacco products are the best way to
put an end to smoking-related dis-
eases. Philip Morris recently hired a
well-known communications expert
to sell that line to global health reg-

around 50%. Profits remain resil-
ient, but investors put a much
lower value on them. Ethical invest-
ing may have played a small role in
this, though shareholders have had
dustry in 2001. Had it bought into
the sector when the policy came up
al a
e
for review in 2016, though, it would
have lost money on the position.
Some investors will still find it
ci on
guard owns tobacco assets worth mains a structurally declining in- ulators, having launched an anti-
more than $60 billion, according to dustry. Philip Morris International smoking ad campaign last year.
investor information service To- used its relatively strong share As more money avoids the sec-
bacco Free Funds. That tailwind has price as currency in unsuccessful tor, it could be the cigarette indus-
faded with the sector’s valuations merger talks with Altria this year. try’s most ambitious rebrand yet.

other reasons to sell—notably more hard to quit. High dividend yields, over the past two years, though: Ironically, cigarette companies —Carol Ryan

OPEC Cuts Alone Won’t Sustain Oil Rally Chewy

er rs

Finally
m e

Fortunately for those producers, constraints on U.S. output are likely to support crude prices
Looks
m rp

Appetizing
The direction of oil prices in rise. November projections from
2020 and 2021 may be decided the U.S. Energy Information Admin-
over spreadsheets in Midland, istration foresee average U.S. crude
Texas, rather than over Sacher production rising by one million
co Fo

torte in Vienna. barrels a day in 2020 compared

Last week’s meeting of the Or- with 2019. Some analysts may be Online pet retailer Chewy surged
ganization of the Petroleum Ex- taking false solace from the number 64% on its first day of trading after
porting Countries plus its noncar- of drilled but uncompleted wells. its June public offering. After giving
tel allies lighted a temporary fire TS Lombard points out that the up nearly all those initial gains, it is
STEFAN WERMUTH/BLOOMBERG NEWS

under crude prices. It didn’t take EIA’s forecast calls for a more mod- beginning to look like good value.
long for analysts to poke holes in est rise of around 300,000 barrels a Chewy reported third-quarter re-
the agreement. Fortunately for day from the end of 2019 to the end sults Monday evening that were ba-
major oil exporters though, market of 2020. Given the sharp contrac- sically in line with estimates. Reve-
forces in the U.S. may ride to the tion in drilling activity—the Baker nue rose 40% from a year earlier to
rescue to support prices. Hughes U.S. oil rig count just fell to $1.23 billion, while its net loss came
On the face of it, the decision to its lowest since the spring of 2017— in at $79 million, little changed
remove an additional half million that can only happen at signifi- from a year earlier. Shares were up
daily barrels from the market in the cantly higher prices, say analysts at 5% Tuesday, but at around $25, they
n-

first quarter of 2020 for a cumula-
tive 1.7 million barrels seems signif-
icant. In practice, it may not be all
that different from the status quo.
no
Raymond James. They say it will aren’t far off their initial-public-of-
Last week’s meeting of OPEC and allies temporarily gave crude prices a boost. take a 30% increase in the U.S. rig fering price of $22.
count to balance the market by That walk around the block re-
tional 170,000 barrels a day. Iraq, 70,000 barrels of cuts but changed 2021, which would in turn require a flects general investor disillusion-

Those cuts are measured rela- the cartel’s No. 2 producer, the baseline it uses to exclude Brent oil price of $80 a barrel in ment with this year’s crop of IPOs,
tive to baseline output levels pre- pledged 50,000 barrels but has crude-like condensates. 2021 compared with $64 today. as well as nervousness over the
vailing before the existing agree- been one of the main free riders Counterbalancing these actual That scenario would delight oil share lockup for insiders, which
ment was signed. In practice, during the current agreement. Fac- and theoretical output cuts has ministers in Riyadh and Moscow, ends Wednesday. But Chewy’s
though, output was off by nearly ing internal unrest, its compliance been a resurgent U.S. shale patch. but they will have hard-nosed eco- growth story remains intact, and a
that much in October. is questionable. Nigeria also has But two forces—a decline in crude nomic decisions taken in the shale path to profitability is becoming
Saudi Arabia is set to take a dis- flouted the current pact. Finally, prices and financial pressure from patch to thank, rather than last clearer.
proportionate share of the pain in Russia, not the most conscientious lenders and shareholders—may week’s deal making. Chewy raised guidance slightly
the new cuts, slashing an addi- partner to begin with, pledged squeeze U.S. output unless prices —Spencer Jakab for its full fiscal year, which ends on
Feb. 1. It now expects sales growth
of around 40%, adjusted for the fact
that there is one fewer week this

OVERHEARD China’s Yuan Punches Below Its Weight
China’s yuan is on the rise: a fu-
Former Federal Reserve ture challenger to the global su-
Chairman Paul Volcker is no lon- premacy of the dollar—or so we’re
ger with us, but his legacy will told. But a look at the data on the
endure even if the inflationary actual international use of the yuan
dragon he slew returns. is a sobering experience.
That legacy is bad spelling: Data highlighted by the Bank for
Several tributes in the news International Settlements this week
media Monday, including from are the latest to show that relative
Axios, NBC and Yahoo Finance, to its size as the world’s largest
spelled his name as “Volker.” trading nation, China’s currency
The dropped “c” could be punches far below its weight.
chalked up to copy editors who Total yuan foreign-exchange
weren’t even born at the time turnover runs to around 14 times
of the Saturday Night Massacre, the value of China’s imports and ex-
but perhaps it is just sloppiness ports. That compares with nearly
when it comes to a less-usual 40 times for the euro—in a bloc
version of a common surname. where much trade is done between
A quick search of articles com- countries that use the same cur-
piled by Factiva show even rency—160 times for the Japanese
more misspellings of Warren yen and around 273 times for
Buffett in the past year that the dollar.
omit the final “t” and of recently International Monetary Fund
controversial exercise-equipment data produced earlier this year
company Peloton, which was of- showed that China ranks above all
ten spelled “Peleton.” other assessed countries in terms of
Perhaps copydesks should do the share of its trade invoiced
mandatory double-checks. in dollars.
They could call it the “Volker True believers might assert that
Rule.” the yuan’s influence is small but
growing. But the data doesn’t bear
Market value of the FTSE Dim
Sum Index
300 billion yuan
200
100
0
2012 ’15
Note: 100 billion yuan=$14.2 billion
Source: FactSet
that out much either: Offshore trad-
ing in the yuan—conducted in juris-
dictions where both sides of the
transaction are outside China—rose
25.3% between April 2016 and April
2019. That is less than the growth
of the Indian rupee, Brazilian real,
Korean won or Russian ruble, albeit
from a higher base.
Almost a decade ago, the big de-
velopment was the dim-sum bond
market—yuan-denominated debt is-
sued offshore. U.S. companies in-
cluding McDonalds and Caterpillar
dipped their toes into the market.
By the end of 2014, the FTSE Dim
Sum bond index had burgeoned in
size to over 280 billion yuan
($39.78 billion).
Today, the novelty has worn off
and the index is valued at less than
115 billion yuan. It shrank in 2016
and 2017, and has ossified since.
McDonalds and Caterpillar no lon-
ger have any outstanding yuan
bonds. Almost two-thirds of the
bonds included in the index cur-
’19 rently were issued either by the
Chinese government or by major
state-owned banking institutions.
The strength of a currency for in-
ternational use rests on what hold-
ers can do with it. In the case of the
yuan, a largely closed capital ac-
count and speculative asset markets
are relatively uninviting.
Unless that changes, take any
pronouncements of the yuan’s com-
ing role in global finance with a
pinch of salt.
—Mike Bird
fiscal year. That compares with ear-
lier guidance of 38% to 39%. Per-
haps most encouraging is the com-
pany’s margin expansion, which
suggests it can scale into profitabil-
ity as sales keep growing. Gross
margins in the third quarter were
23.7%, up from 19.6% a year earlier.
The company also raised its full-
year guidance for adjusted earnings
before interest, taxes, depreciation
and amortization.
Chewy is making progress devel-
oping in-house capabilities that dif-
ferentiate it from potential e-com-
merce competition, including
private-label merchandise and a
pet-pharmacy business. Its in-house
brands logged 60% growth in the
third quarter and now account for a
double-digit share of its sales of
categories such as frozen foods,
jerky treats and natural bones and
chews, and over a 30% share in
poop bags, apparel and leashes, said
Chief Executive Sumi Singh on a
conference call.
After their precarious fall, Chewy
shares trade at 1.7 times forward
sales, according to FactSet—not an
unreasonable multiple for a rapidly
growing company. That compares
with 2.7 times for Amazon.com.
Investors who weren’t able to in-
vest in the IPO may want to take a
bite. —Aaron Back