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Baseball Babies
Its Expensive
Arms
ARENA | D1
* * * * * * FRIDAY, APRIL 1, 2016 ~ VOL. CCLXVII NO. 76 WSJ.com HHHH $3.00
DJIA 17685.09 g 31.57 0.2% NASDAQ 4869.85 À 0.01% STOXX 600 337.54 g 1.1% 10-YR. TREAS. À 13/32 , yield 1.784% OIL $38.34 À $0.02 GOLD $1,234.20 À $7.30 EURO $1.1381 YEN 112.58
Collapsed Overpass in India Kills More Than 20

Chinese
What’s
Insurer
News
Business & Finance
Drops Big
Hotel Bid
C hina’s Anbang walked
away from its $14 bil-
lion bid for Starwood, a BY CRAIG KARMIN
surprise move that caps AND DANA MATTIOLI
off a three-week bidding
war with Marriott. A1 Anbang Insurance Group
Co. walked away from its $14
Theranos blood-testing
billion bid to buy Starwood
devices often failed to meet
DIBYANGSHU SARKAR/AGENCE FRANCE-PRESSE/GETTY IMAGES
Hotels & Resorts Worldwide

the firm’s own accuracy
Inc., a surprise move that caps
requirements for a range
off a three-week bidding war
of tests, according to a
with Marriott International
federal inspection report. A1
Inc. and could put a dent in a
The FBI is testing the recent surge in overseas deal-
method used to crack a making by Chinese companies.
terrorist’s iPhone to see how Anbang and its partners—
many other versions of the private-equity firms J.C. Flow-
device it could open. B1 ers & Co. and Primavera Capi-
tal Group—said in a statement
The market for initial
late Thursday that they de-
public offerings is in its
cided to abandon their Star-
slowest period since the
wood bid “due to various mar-
first quarter of 2009. C1
ket considerations.” They
The Dow shed 31.57
didn’t elaborate in the state-
points to 17685.09, as U.S.
TRAPPED: Rescue workers and volunteers on Thursday tried to free dozens of people trapped beneath a bridge being built in Kolkata. A6 ment, which confirmed an ear-
stocks ended the first
lier report by The Wall Street
quarter slightly higher. C4
Journal.
Gold prices notched
Iran Nears Access to Dollars

The abrupt withdrawal ap-
their largest quarterly gain
pears to end a topsy-turvy bid-
in three decades. C1
ding war that highlights both
The Fed removed its su- the newfound muscle of Chi-
pervisors from MetLife of- nese companies in the high-
fices after a judge rescinded stakes global business of
oversight of the firm. C2 Obama administration congressional staff members any transactions with Iran due ment of American banks, ac- mergers and acquisitions, and
and a former American official to fears they might run afoul of cording to the congressional of- questions surrounding their
Boeing has opened a makes plans to set up briefed on the plans. the U.S. Treasury and its regu- ficials. The clearing houses, ability to close such deals. So
new chapter in its battle
with Airbus, with price offshore clearing The proposed move comes lations that ban dollar dealings likely involving select foreign far this year, there have been
amid rising Iranian criticism with Iranian firms. Most major banks, would conduct the dollar $92 billion of foreign take-
taking a larger role. B1 houses to help Tehran that the landmark nuclear international trade, particularly transactions instead, shielding overs announced by Chinese
Environmental groups agreement reached last year in oil and gas, is conducted in the U.S. financial system from companies, according to Dea-
sued the FDA over the BY JAY SOLOMON between global powers and U.S. dollars. any direct contact with Iran, logic, excluding the erstwhile
agency’s authority to ap- Tehran hasn’t provided the The Treasury is considering these officials said. Anbang bid for Starwood, a
prove genetically modified WASHINGTON—The Obama country with sufficient eco- how to issue licenses to off- “They are looking at a cou- pace that far exceeds that of
animals used for food. B3 administration is preparing to nomic benefits. shore dollar clearing houses for Please see IRAN page A6 any prior year.
give Iran limited access to U.S. Executives at European and specific Iranian financial insti- But U.S. regulators still
Two gauges of Chinese
dollars as part of looser sanc- Asian banks have said that they tutions, an approach that North Korea is top focus of must sign off on many of the
factory output registered a
tions on Tehran, according to remain reluctant to conduct wouldn’t require the involve- nuclear summit......................... A6 Please see ANBANG page A4
pickup in March. A6
DEUTSCHE BANK REVAMP Ups and Downs

World-Wide
The Obama administration
TESTS ITS LEADER

Some first-quarter winners and losers
is preparing to give Iran lim-
ited access to U.S. dollars as
part of looser sanctions on
Lean hogs 35.2%
Tehran, according to people
briefed on the plans. A1
Gold 16.5%
Amid stormy market, co-CEO tries to pare bloated costs and fix finances
Obama called for a stand Dow Jones Utility Average 15.7%
against the threat of a nu-
clear-armed North Korea, On his first day as co-chief At an investors conference in Bovespa (Brazil) 15.5%
as leaders gathered for a executive of Deutsche Bank AG, By Jenny Strasburg in early March, Mr. Cryan didn’t
nuclear security summit. A6 John Cryan sent a letter to em- London and Madeleine dispel the gloom. “Our problem S&P 500 Telecom 15.1%
ployees outlining what he said Nissen in Frankfurt as a bank was and remains, and
California lawmakers
approved lifting the mini- were the “tough challenges” the will be for a little while, a lack –12.0% Nikkei Stock Average (Japan)
mum wage to $15 an hour. company was facing. “I am not going to tell of profitability,” he said. “There’s a lot of
New York officials struck a you that all will be sweetness and light in the stuff we have to get done this year, so this –15.1% Shanghai Composite
deal on a similar move. A2 coming months,” he wrote. “There will be ups year is not going to be profitable.”
Five stars on the U.S.

and downs.” A state of malaise has descended over the –15.4% FTSE MIB (Italy)
Nine months later, employees and inves- European investment-banking industry. There
women’s soccer team actors have seen plenty of downs and not many are worries about the world economy tipping
cused the U.S. Soccer Federa-
–16.2% Natural gas
ups. into recession, declining commodity prices,
tion of pay discrimination. A2 In January, the Frankfurt-based bank said rock-bottom interest rates, stiffer regulations,
it lost €6.8 billion ($7.6 billion) last year, its continuing government investigations and
–18.1% Rough rice
Trump’s reversal on abor-
tion is buoying efforts by Re- first annual loss since 2008. A nasty selloff in doubts about banks’ ability to earn steady Source: FactSet THE WALL STREET JOURNAL.
publicans to block the party’s February compelled the bank to reassure profits.
presidential front-runner. A4 hedge funds it wasn’t going to miss payments For its part, Deutsche Bank is suffering WILD RIDE: Gold notched its largest quarterly gain in three decades in
on some of its debt. Its shares are down 34% from what investors, regulators, analysts and the first quarter, a turbulent period for global markets. Some investors
Iraq’s premier proposed this year, compared with 21% for the Stoxx even some bank insiders consider a delayed are bracing for more tumult. Markets Review & Outlook, C1, C8-11
replacing almost his entire Europe 600 Banks index. Please see CRYAN page A8
cabinet, leading a fire-
brand Shiite cleric to sus-
pend a weekslong protest. A5
The FCC approved a
plan to expand a phone sub-
Theranos Machines For Tar Heels Fans, There Are 50 Shades of Blue
sidy for low-income people to
include Internet service. A3
Cameron warned it
Failed Accuracy Test i i
UNC has a new color for basketball’s Final Four: Pantone 542
i
could be difficult to find a BY JOHN CARREYROU BY BEN COHEN Franklin Street in the old Carolina blue, except
buyer to save the U.K.’s AND CHRISTOPHER WEAVER inspection of the closely held Chapel Hill, N.C., when they are next to each
biggest steel plant. A7 company’s Newark, Calif., lab- What color is the college town other, in which case they are
Belgian authorities re- The blood-testing devices oratory last fall. A redacted Carolina blue? where he was born as much alike as black and
leased and later rearrested that Theranos Inc. touted as version of the report was re- For more than and raised and gold.
a nephew of two of the revolutionary often failed to leased late Thursday. A full two centuries, even where his family The newer, lighter hue is
Brussels suicide bombers. A7 meet the company’s own accu- version was reviewed by The before the Univer- has owned a cloth- slightly greener, which makes
racy requirements for a range Wall Street Journal. sity of North Caro- ing store for nearly it appear more yellow than
Died: Zaha Hadid, 65, of tests, including one to help For example, the inspection lina began playing 75 years, and he the previous shade, said Car-
renowned architect. A7 detect cancer, according to a report showed that 29% of the college basketball, knew Carolina blue mine Matarazzo, technical di-
federal inspection report. quality-control checks per- the school has asso- when he saw it. All rector of Pantone, the color
CONTENTS In the Markets....... C4 The findings include the formed on the company’s pro- ciated itself with a he had to do was authority with a standardized
Arts & Ent.......... D4-7 Opinion................. A9-11
Business News...... B2-4,6 Sports...................... D2,8 first outside glimpse of the prietary blood-testing devices specific color that look up. “A cloud- system of shades. “The 542 is
Crossword................. B6 Technology............... B5 performance records Theranos in October 2014 produced re- can safely be de- less day at noon,” definitely warmer,” he said.
Election 2016......... A4 U.S. News............. A2-3 compiled for its proprietary sults outside the range consid- scribed as blue. Ex- he said. “It’s that The Tar Heels will wear
Global Finance........ C3 Weather..................... B6
Heard on Street.. C12 World News........ A5-7
blood-testing devices, code- ered acceptable by Theranos. actly which blue Marcus Paige color.” that Carolina blue in the
named Edison. The technology In February 2015, an Edi- has been the ques- Now the school NCAA tournament’s Final Four
was the main basis for the $9 son-run test to measure a hor- tion. claims to have isolated a sin- this weekend. It won’t be the
> billion valuation attained by mone that affects testosterone Carolina blue isn’t like any gle, official Carolina blue. The shade of Carolina blue many
Theranos in a funding round levels failed 87% of quality- other blue, says fashion de- exact color is Pantone 542. of their fans are wearing in
in 2014. control checks, the report signer Alexander Julian. It’s This new Carolina blue, un- the crowd or the shade of Car-
The 121-page document de- said. not powder blue. It’s not baby veiled last year, matches the olina blue the team wore in
s Copyright 2016 Dow Jones &
tails deficiencies found by the Erratic quality-control re- blue, either. And it’s certainly Carolina blue of the basketball 1982 when someone named
Company. All Rights Reserved Centers for Medicare and sults for Edison-run tests were not aqua blue. uniforms. It is almost indistin- Michael Jordan won them the
Medicaid Services during its Please see TESTS page A2 Mr. Julian was standing on guishable from Pantone 278, Please see BLUE page A8
A2 | Friday, April 1, 2016 * ***** THE WALL STREET JOURNAL.
U.S. NEWS
$15 Minimum Women’s
Soccer
Gets a Push Stars Seek
Equal Pay
In Key States
California and New York are an hour. Last year, McDonald’s
BY JOSHUA ROBINSON
AND MATTHEW FUTTERMAN
moving to become the first said it would pay at least $1 an Five of the top stars on the
states to lift the minimum wage hour more than the local mini- world champion U.S. women’s
to $15 an hour, propelling a mum wage for employees at the national soccer team accused
wage target once focused on roughly 1,500 restaurants it the U.S. Soccer Federation of
major urban areas into every owns in the U.S. pay discrimination, despite the
corner of the economy from Yet increases in New York women’s team’s superior on-
farm communities to industrial and California could influence field achievements and higher
towns. other pending proposals as ap- anticipated revenue.
proval in those states could ul- The federal complaint, un-
By Eric Morath, timately subject 18% of the U.S. veiled Thursday, alleges that
ERIK MCGREGOR/PACIFIC PRESS/ZUMA PRESS
Erica Orden workforce to a $15 rate. When the players earn a fraction of
and Alejandro Lazo California and New York last their male counterparts for
approved minimum-wage in- national team appearances—
Lawmakers in California on creases in 2013, 14 states fol- sometimes as little as 38%.
Thursday passed a $15 pay lowed suit a year later and The players bringing the
floor for large businesses by most at least matched New complaint, which they say
2022 and all firms a year later. York’s current rate of $9 an comes on behalf of the whole
New York officials on Thursday hour. California’s current mini- team, are veterans who played
struck a deal to bring the $15- mum is $10 an hour. The fed- key roles in turning the U.S.
an-hour minimum to New York eral rate still prevails in 21 into the game’s most recogniz-
City by 2019 and the rest of the states. able women’s team: captain
state in subsequent years. “It’s going to add fuel to the New York officials on Thursday struck a deal to bring a $15-an-hour minimum wage to New York City Carli Lloyd, goalkeeper Hope
The push by two of the na- fire for other states looking to by 2019 and the rest of the state in subsequent years. Above, a rally in Albany in mid-March. Solo, midfielder Megan Rapi-
tion’s most populous states will raise the minimum wage and noe, defender Becky Sauerb-
widen a debate about the bene- potentially encourage them to Greenville, N.Y., called all varia- runn and striker Alex Morgan.
fits and risks of elevated mini- go higher than they were ini- tions of the minimum-wage Wage Floors In a statement, the U.S.
mum wages in an election sea- tially thinking,” said David Coo- proposal “ludicrous.” Average The minimum wage exceeds the federal rate of $7.25 an hour in 29 Soccer Federation said its sup-
son marked by voters’ concerns per, an economist at the left- wages last year in Greenville’s states. Several states are scheduled to have further increases in port of women’s soccer is “un-
about income inequality and leaning Economic Policy county were $674 a week, ac- coming years and lawmakers in California and New York are moving wavering.”
the government’s role in shap- Institute. cording to the U.S. Labor De- ahead with a $15 rate. The federation said negotia-
ing the economy. Democratic leaders in New partment. A full-time worker tions for a new collective bar-
Jersey introduced a $15 mini- earning $15 an hour would $7.25 (federal $7.50– $8.31– $9.00– gaining agreement that ad-
minimum wage) $8.25 $8.75 $10.00
mum-wage bill earlier this year, make $600 a week, or about dresses compensation are
Critics say job losses though it remains pending. $30,000 annually. N.H. continuing and will go into ef-
Wash.
could come from Campaigns are under way for A wage increase would Mont. N.D. Minn. Vt. Maine fect when the agreement ex-
ballot initiatives to raise the prompt layoffs and force GNH Ore. pires at the end of this year.
burdening employers minimum—though not to $15 to cut back on hiring high- Idaho S.D.
Wis. N.Y.
Mass.
Representatives of the team
Wyo. Mich.
with higher costs. an hour—in Colorado, Maine school and college students,
Neb. Iowa Pa. have argued that the agree-
and Washington. Ms. Hagan said. “Paying some- Nev. Ill. Ind. Ohio ment is actually already void.
Utah R.I.
Still, while the push for a $15 one that’s unskilled labor at $15 Colo. W.Va. Va. The players filed the com-
Kan. Mo. Ky.
Some policy makers see a minimum has advanced in New an hour is a very difficult un- Calif. Conn. plaint with the Equal Employ-
Tenn. N.C.
higher minimum wage as a tool York and California, players on dertaking for us.” Ariz. N.M. Okla. Ark. S.C.
N.J. ment Opportunity Commission
to address widening gap be- both sides of the debate are In California, Gov. Jerry Del. amid a legal dispute between
Miss. Ala. Ga.
tween rich and poor Americans mindful of the uneven impact. Brown moved quickly after a Texas Md. their union and the federation
and stoke stubbornly slow in- Both states have major cities union-sponsored initiative to La. over the validity of their col-
Alaska
come growth. Increased pay with high costs of living, like raise minimum wage for all Fla. lective bargaining agreement,
Hawaii
floors are especially popular San Francisco and New York workers qualified last week for which expires later this year.
among union workers and Dem- City, but they also have areas the November ballot. A key dif- Source: National Conference of State Legislatures THE WALL STREET JOURNAL. Those talks haven’t been
ocrats, with both presidential with much lower costs, like ference: The legislation in- productive, according to the
candidates in the party propos- Fresno, Calif., and Schenectady, cludes a provision allowing a losses. feeding her 5-month-old-son, players’ attorney Jeffrey Kes-
ing to boost the current federal N.Y. governor to suspend the UC Berkeley economist Mi- buying bus passes and paying sler. When their demand for
level of $7.25 an hour. New York officials agreed phased-in increases to a $15 chael Reich, a labor-market ex- rent. She, her boyfriend and her equal pay came up then, Mr.
Republicans and other oppo- Thursday to implement a $15 minimum in the event of a re- pert who has studied minimum- son share a room in a rented, Kessler said, the federation
nents warn against job losses hourly wage in New York City cession or budgetary downturn, wage increases, said reduced four-bedroom house with called it “an irrational request.”
from burdening businesses with by 2019 for businesses with 11 something also included in New worker turnover, improved pro- roommates. She makes $10 an U.S. Soccer leaders said
higher costs. or more employees and by York’s deal. ductivity, small price increases hour after working at Burger Thursday night that comparable
In recent years, several com- 2020 for others. Suburbs would American Action Forum, a and stronger spending by low- King since 2009, receives food revenues for the men’s team
panies have voluntarily in- reach $15 in 2022. Minimum right-leaning think tank, esti- income families will allow em- stamps and is on Medi-Cal, Cal- over a multiyear period were
creased starting pay, but few to pay in upstate New York would mates raising the minimum ployers to absorb higher wages. ifornia’s Medicaid program. nearly twice as much for the
$15 an hour. Starting pay at climb to $12.50 an hour in wage to $15 in both states will Holly Dias, 38 years old, of This is a “history-making men as they were for the
Wal-Mart Stores Inc. rose to 2021, then rise based on a for- eliminate more than 1 million Rio Linda, Calif., who works at day for all of us,” she said Mon- women. Federation President
$10 an hour earlier this year. mula until it reaches $15. jobs. But economists at the Uni- a Burger King in Sacramento, day after taking part in the Sunil Gulati said separating com-
Costco Wholesale Corp. in- Genn Hagan, co-owner of versity of California, Berkeley, said additional pay would allow press conference where Mr. pensation from revenues was
creased it lowest wage to $13 GNH Lumber Inc., based in predict no significant job her to avoid choosing among Brown announced his plan. impossible in a market economy.
TESTS phen Master, associate profes-

sor of pathology at Weill Cor-
nell Medical College in New
York. “Based on this data, it’s
port showed.
In April and May 2015, a
test to measure prostate-spe-
cific antigen, or PSA, failed
is, said Dr. Master of Weill Cor-
nell.
In comparison, a lab-proce-
dure manual for Vitamin B12
The inspection report said
Theranos didn’t notify doctors
treating patients potentially
affected by the erroneous re-
Continued from Page One hard for me to believe that quality-control checks 22% of testing written by a Centers sults until mid-November, or
frequent in July 2014 and from they went live with this instru- the time. The PSA test is used for Disease Control and Pre- seven weeks after the inspec-
February 2015 to June 2015. ment and tested patient speci- to help detect prostate cancer. vention official cites coeffi- tors first identified the prob-
Federal inspectors also cited mens on it.” Inspectors also found that cients of variation from 2.4% lems.
the Theranos lab for doing Ms. Buchanan, the Theranos Theranos sometimes released to 2.9% for quality-control re- The company has said it no-
ERIK MCGREGOR/PACIFIC PRESS/ZUMA PRESS
tests with unqualified person- spokeswoman, said it “proac- patients’ results even when the sults in a two-year period that tified all affected patients and
nel, for long delays in notifying tively suspended testing asso- Edison devices used to run ended in 2013. Lab directors that none of them were at risk.
patients of flawed test results ciated with any affected areas those tests produced erratic say levels above 10% are un- Theranos also changed its
and for storing blood samples last year upon learning of the results in quality-control usual. criteria for what was accept-
at the wrong temperatures. issues.” The company voided checks. The CMS inspectors also able “to match the data” in
Company records showed that “any findings that weren’t con- Federal inspectors also said said they found flaws in Thera- mid-September, without inves-
the lab ran about 890,000 tests sistent with the quality stan- the Edison devices produced nos’s conventional lab opera- tigating why the results were
a year. dards the lab holds itself to,” test results that differed tion. For example, the company erratic, according to the in-
The version of the report she added. widely from traditional lab ma- released 81 patient results for spection report.
released Thursday by CMS re- In a letter to the Journal, chines for the same blood sam- a coagulation test despite fre- “I can’t think of a circum-
dacted references to the Edi- Theranos said it asked CMS, ples. quent quality-control failures stance where you would do
son device, the types of tests Edison was a linchpin of the chief regulator of U.S. clini- For example, when mea- experienced while performing that” after the fact, said Adam
Theranos used it to perform Theranos founder and CEO cal labs, to redact parts of the suring Vitamin D, the gap be- the test on traditional lab ma- Seegmiller, executive medical
and the lab’s test volume. Elizabeth Holmes’s strategy. report before it is released, cit- tween Edisons and traditional chines, according to the report. director of clinical pathology
Theranos didn’t respond to ing trade secrets. machines ranged from 21% to The Journal described those at Vanderbilt University Medi-
specific questions from the pending or revoking the lab’s The agency’s inspection be- 130%, based on the inspectors’ problems in a March article. cal Center in Nashville, Tenn.
Journal about the performance certification to legally test hu- gan last September. The report review of nine samples ran-
of Edison machines as detailed man samples. includes details on whether domly selected from an inter-
CORRECTIONS AMPLIFICATIONS
in the inspection report. A CMS spokesman said the Theranos blood tests passed nal Theranos study.
Brooke Buchanan, a Thera- agency has no comment “at internal quality-control checks. Theranos’s own written pro-
nos spokeswoman, said the this time.” Such checks usually involve cedures stated that the differ-
company “made mistakes in Edison machines were de- performing a test on a sample ence should be “equal to or
the past in the Newark” lab but veloped as the linchpin of the of preserved blood plasma less than 20%.” Legal measures announced incorrectly said such searches
has “dedicated every resource strategy by Theranos founder with a predictable result to see When measuring a test to four months ago by the Bel- are now allowed between 9
to remedy those failures” since Elizabeth Holmes to upend the if it matches the expected out- assess thyroid function, the gian government to fight ter- a.m. and 5 p.m.
becoming aware of the prob- blood-testing industry in the come. gap between Edison devices rorism include allowing house
lems. U.S. Investor excitement about At most labs, including and the other machines ranged searches 24 hours a day, and Textron Inc.’s Bell 525 heli-
She said Theranos has sub- the company’s technology gave Theranos, quality-control from 21% to 39% The gap for a not just between 5 a.m. and 9 copter was incorrectly called the
mitted to regulators a “plan of Theranos the largest valuation checks were considered to testosterone test ranged from p.m., as under current law. A Bell 225 in some editions Thurs-
correction” and “related evi- of any venture-capital-backed have failed if they produced a 22% to 146%. World News article Thursday day in a Business News article
dence that addressed how the health company. result more than two standard In addition, Edison ma- about Belgium’s terror fight about the helicopter industry.
company has actively ensured At the end of 2014, the lab deviations away from the typi- chines often couldn’t repro-
that our lab operates at the instrument handled just a cal outcome. duce their own results on qual- Readers can alert The Wall Street Journal to any errors in news articles by
highest standard.” The actions small fraction of the tests then The inspection report re- ity-control samples, according emailing wsjcontact@wsj.com or by calling 888-410-2667.
include personnel changes at sold to consumers, according viewed by the Journal cited 13 to the report. Quality-control
the lab. to four former employees. tests done on Edison devices. checks done on one Edison de- THE WALL STREET JOURNAL (USPS 664-880)
“Theranos shares the same Since last fall, Theranos has It isn’t clear if Theranos was vice in January 2015 for a test (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935)
(Western Edition ISSN 0193-2241)
goal as CMS does, which is to been performing just a herpes running additional tests on the to measure Vitamin B12 had Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
provide best quality care to test using its proprietary Edi- devices at the time. “coefficients of variation,” a Published daily except Sundays and general legal holidays.
our customers,” she added. son device, people familiar The report confirmed that measurement of variability Periodicals postage paid at New York, N.Y., and other mailing offices.
POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.
“This has only made the com- with the matter said. Theranos ran many of its other from the average result, that All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which
pany stronger and we are bet- That test was approved by tests on traditional machines ranged from 34.3% to 48.5%. are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of the Americas,
New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication
ter for it today.” the Food and Drug Administra- purchased from companies Theranos’s written proto- of an advertisement shall constitute final acceptance of the advertiser’s order.
So far, though, CMS has tion last July. The company is such as Siemens AG. The “test cols required the coefficient of Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
deemed the company’s plan in- seeking approval for additional menu” on Theranos’s website variation “to be not more than
adequate and plans to impose tests. currently lists more than 200 15%,” according to the inspec- NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
sanctions against Theranos, ac- “This is the first time that blood tests. tion report. CONTACT CUSTOMER SUPPORT.
cording to people familiar with we’ve actually seen data from In October 2014, an Edison- “With this amount of vari- By web: customercenter.wsj.com
the matter. In January, the the Theranos instrument, and run test to measure the hor- ability, you get to a point By email: wsjsupport@wsj.com
agency said the punishment it’s as bad as one would have mone Prolactin, failed 47% of where you’re essentially guess- By phone: 1-800-JOURNAL (1-800-568-7625)
Or by live chat at wsj.com/livechat
could range from fines to sus- worried it would be,” said Ste- quality-control checks, the re- ing” about what the test result
THE WALL STREET JOURNAL. Friday, April 1, 2016 | A3
U.S. NEWS
Seniors Hit Hard by Hot Housing Market

More people 65 and
Mature Tenants
older are tenants and Households with renters
are feeling pinched by age 65 and older
increasing rents 7 million
6.1M
6
BY JENNIFER LEVITZ
AND LAURA KUSISTO
5
As young, high-earning work-
4
ers flock to the San Francisco
Bay Area, they are pushing up
3
housing costs for everyone. But
particularly hard-hit are people
2
like 80-year-old Lois Plymale.
A former state unemploy-
ment-insurance reviewer, Ms. 1
Plymale thought she would al-
ways have an affordable home 0
at the Pacifica apartment build- ’02 ’04 ’06 ’08 ’10 ’12 ’14
ing where she settled two de- Source: JCHS tabulations of U.S. Census
JASON HENRY FOR THE WALL STREET JOURNAL
cades ago. But after years of Bureau, American Community Surveys

paying modest rent increases, THE WALL STREET JOURNAL.
the widow saw the monthly rent
on her small one-bedroom money,” he said.
apartment rise nearly 20% to Zvi Rudawsky bought a small
$1,850 in October, roughly four complex in Denver, another hot
times the national average rate. housing market, that was home
“Being on a fixed income, to many seniors, and he in-
that just shocked me,” said Ms. vested $25,000 a unit, including
Plymale, who is cutting back on upgrading plumbing and win-
groceries and feeling anxious dows. Some tenants protested
about the prospect of more rent when he took rents to about
increases. Lois Plymale saw the monthly rent on her one-bedroom apartment in Pacifica, Calif., rise nearly 20% to $1,850 in October. $1,185 a unit last year from
More than 6.1 million house- $764, but he said a private land-
holds in 2014 were primary resi- demand areas. In San Mateo ally, about 40% less than the age of the consumer price index. but the market is now $1,800, lord who doesn’t receive a gov-
dences rented by people age 65 County, just south of San Fran- median renter household in- Deliberations are roiling com- you really can’t expect the prop- ernment subsidy has to raise
and older, up 29% from 2001, cisco, where Ms. Plymale lives, come for those ages 45 to 49, munities, and pitting those who erty owner to not ask for rents to bring buildings up to
according to Harvard Univer- more than 54,000 new jobs have according to an analysis of cen- believe governments should im- $1,800, because what you’re re- standard. “Displacing these folks
sity’s Joint Center for Housing been created since 2010, but sus data for 2014 by Enterprise pose new regulations on land- ally asking the landlord to do is is tough, but I wouldn’t have
Studies. While the 79% home- only about 2,100 new housing Community Partners, an af- lords against those who say to subsidize somebody,” wanted my mom living here,” he
ownership rate for people 65 units have been built in that fordable-housing non- such measures violate private- said Tom Bannon, chief execu- said.
and older is the highest of any time, according to the county. In profit. “You can’t really go and property rights. tive of the California Apartment A representative for Ms. Ply-
age group, the rate is down sig- the past four years, monthly renegotiate with Social Security Landlords in San Mateo Association, the largest state- male’s landlord, who bought the
nificantly since the housing rent for two-bedroom apart- about how much you’re getting County and other high-cost ar- wide association for rental- Pacifica apartment building in
boom, when it peaked at nearly ments in highly marketable mul- paid,” said Chris Herbert, man- eas often say many rent hikes property owners and managers. 2011, declined to comment.
82%. Many seniors who lost tifamily buildings surged nearly aging director of Harvard’s Joint are necessary to pay for over- The association encourages In late February, Ms. Plymale
homes in the housing crash will 52%, to an average top- Center for Housing Studies. hauls of aging buildings as well property owners to avoid rais- joined about 250 tenants, land-
be renting for the rest of their ping $2,800. Adding more housing is a as other escalating expenses like ing rent more than 10% annu- lords and local officials at a
lives, because they have less Of all renters, those age 75 daunting task in suburbs where property taxes. New owners can ally on existing residents, par- Catholic church for an often-
time than younger households and older have the greatest inci- locals are wary of more resi- face big tax increases because ticularly seniors, he said. heated “town hall on skyrocket-
to recover financially. dence of “severe” cost burdens, dents and traffic. Community California law generally allows Daniel Saver, a housing attor- ing rents.” Some renters wore
With fewer seniors owning meaning more than half of their Legal Services in East Palo Alto, for a jump in assessed values af- ney with Community Legal Ser- badges that said, “I rent. I be-
homes and having fixed mort- incomes go to rent, according to a nonprofit, is pressing several ter a property changes hands vices, countered that some rent long.” An opposing contingent
gage payments, they have be- Harvard research. The typical Bay Area jurisdictions to insti- from a longtime owner. hikes amount to “gouging.” hoisted signs: “Take care of
come susceptible to rent in- renter ages 65 to 69 has house- tute new tenant rules, including “If you’re paying rent of “No one is saying landlords strangers. Why? My aging par-
creases, particularly in high- hold income of $24,700 annu- capping rent hikes to a percent- $1,000 for a two-bedroom unit shouldn’t be able to make ents need help 2!”
Phone Mothers of Addicts Turn to New Networks

Subsidy BY JEANNE WHALEN whose son is in treatment after
years of heroin addiction. After
To Include When Kim Palmer learned

her son was addicted to heroin,
she told the pastor of her
she joined Soul Sisters, “All the
sudden I had other women,
other good moms all going
Internet church near Portland, Ore., and

then quickly regretted it. She
recalls him responding with lit-
through the same thing,” she
said.
Many families are also seek-
BY JOHN D. MCKINNON tle more than a pat on the ing help through more tradi-
hand and an offer to pray for tional organizations such as
Federal regulators approved her. Nar-Anon, but some say the
LEAH NASH FOR THE WALL STREET JOURNAL
a plan to expand a $9.25-a- “What that teaches you is, newer groups offer more flexi-
month phone subsidy for low- don’t tell anyone,” she said. bility and real-time support.
income people to include In- Ms. Palmer eventually found Ms. Worthen said she tried
ternet service, after a skirmish a support network in the form Nar-Anon meetings but found
over the provision delayed ac- of five other women also strug- them too “regimented,” with
tion by several hours. gling with addicted children. their focus on reading the pro-
The final vote by the Fed- The women, all strangers at gram’s 12 steps and other pre-
eral Communications Commis- first, met online and dubbed approved literature.
sion was 3-2, along party lines, their group Soul Sisters. “For me it didn’t work. I’m a
approving a plan advanced by Speaking largely by text talker, and it was too struc-
the panel’s Democrats. message from across North tured,” said Ms. Worthen. Nar-
The expansion of the Life- America, they have shared five Anon said the structure is Kim Palmer buys groceries for her 24-year-old son, Sam, who lives in a halfway house in Beaverton,
line subsidy is intended to help years’ worth of advice and there to protect attendees and Ore., and just marked one year of sobriety from his yearslong struggle with heroin addiction.
lower-income people who have sympathy, helping ease the their anonymity.
trouble affording broadband burden of a disease they feel is Ms. Worthen and others say sures to combat the epidemic,
©T&CO. 2016
on their own. Many experts still steeped in stigma. the newer Web-based groups saying it is “costing lives and
say a digital divide is emerging As more and more families are easier to access at any devastating communities.”
between lower-income and grapple with a widening epi- hour, and from rural regions— Advocacy groups and some
higher-income households, just demic of heroin and painkiller areas where the wave of addic- elected officials are making
as Internet service has become abuse in the U.S., a new gener- tion is hitting the hardest, but substance abuse a key topic for
important for everything from ation of support groups is pop- which may lack an in-person the 2016 presidential cam-
school work to job searches. ping up to offer help. They support group. paign, arranging forums in bat-
Democratic Commissioner range from the small and infor- Digital networks can also be tleground states to press can-
Jessica Rosenworcel said FCC
data suggest as many as one in
mal, such as Soul Sisters, to
large groups like The Addict’s
tailored for specific needs. The
Addict’s Mom, for instance, has
didates on specific policy
recommendations.
OUR APOLOGIES
three households don’t sub-
scribe to broadband service, in
Mom, or TAM, which has
amassed more than 70,000
subgroups for distinct audi-
ences, including grandparents
Many parents say they seek
help online because they are
TO THE OTHER
part because it isn’t affordable.
In negotiations in recent
members on Facebook, describ-
ing itself as a place to “share
raising grandchildren after the
death of an addicted parent.
too ashamed to discuss the
problem with friends or family. 99.96%
days, Republican commission- without shame.” Others, such More than 47,000 Americans The six women who eventually
ers pushed for tighter budget as Shatterproof, a nonprofit died of drug overdoses in formed Soul Sisters first en-
caps in the Democrats’ plan, whose founder lost his son to 2014—a record that exceeded countered each other in an ad-
saying higher costs for the addiction, hold events to com- the number killed in car acci- diction-themed chat room on
We reject 99.96% of the world’s finest diamonds
subsidy could fall on all con- bat stigma, and lobby for legis- dents, according to the Centers Daily Strength, a site for health because this isn’t just any setting.
sumers, as the program is lation to fight addiction. for Disease Control and Pre- and social problems.
funded by a Universal Service “For probably 10 years I had vention. The biggest drivers of Over time, the women, who
Fund tax on phone bills. no one to talk to about it. I had those deaths were prescription used pseudonyms online,
The FCC plan was expected my head down like a guilty painkillers and heroin. On started recognizing each
to boost the program’s annual parent,” said Margaret Tuesday President Barack other’s posts, and split off into
budget to about $2.25 billion Worthen of Raleigh, N.C., Obama announced new mea- their own group. Soon they
from more than $1.5 billion. were communicating every day,
About 12 million households largely via group texts on
have benefited from the pro- Rising Toll WhatsApp. They’ve advised
gram in recent years. The new Climbing rates of U.S. overdose 50,000 each other on the warning
plan could add about 5 million, deaths from opioid painkillers Drug overdose signs of relapse, helped each
officials say, prompting GOP and heroin have pushed the other deal with their children’s
worries that the new spending total number of drug overdose 40,000 prison sentences, and shared
cap could easily be exceeded. deaths above those from traffic tips on rehab centers. Scat-
accidents. THE TIFFANY® SETTING.
A deal GOP commissioners tered from the Pacific North-
reached with Commissioner west to Toronto to New York’s 130 YEARS OF EXTRAORDINARY.
Mignon Clyburn overnight on 30,000 30,000 Motor vehicle
Long Island, the women have
accidents
a tighter cap fell apart later never met in person, though
Thursday, after Ms. Clyburn they hope to this year.
decided the budget mechanism 20,000 20,000 Ms. Palmer said the group
Opioid painkillers*
Republicans wanted “could not has helped her most by re-
fully achieve my vision of a minding her not to work
21st century Lifeline program.” Heroin harder than her 24-year-old
10,000 10,000
GOP commissioners criti- son, Sam, does at his recovery.
cized the majority’s rejection Cocaine In years past “I would give him
of the last-minute bipartisan constant advice,” she said. “But
deal. “This agency and this 0 0 I can’t do it for him.”
proceeding represented the ’00 ’05 ’10 ’14 ’00 ’05 ’10 ’14 Sam just marked one year of 800 843 3269 | TIFFANY.COM
worst of government,” Com- *Includes hydrocodone, oxycodone, morphine, codeine and others sobriety and is living in a half-
missioner Ajit Pai said. Source: Centers for Disease Control and Prevention THE WALL STREET JOURNAL. way house.
A4 | Friday, April 1, 2016 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X **** THE WALL STREET JOURNAL.
Trump Abortion
Reversal Fails
To Quell Critics
BY BETH REINHARD Lewandowski, charged with
AND JANET HOOK battery for allegedly grabbing
a female reporter on the arm
DE PERE, Wis.—Donald as she tried to interview the
Trump’s recent reversal on candidate after an event in
abortion is buoying efforts by March.
Republicans to block the presi- Mr. Trump has also drawn
dential front-runner before he criticism from female support-
claims the nomination, even as ers—even loyal conservative
JEWEL SAMAD/AGENCE FRANCE-PRESSE/GETTY IMAGES
Democrats lay the groundwork commentator Ann Coulter—for

for attacks in the general elec- retweeting an unflattering pic-
tion aimed at gutting his sup- ture of Mr. Cruz’s wife.
port among female voters. Terese Davis, a 55-year-old
His leading GOP rival, Texas voter who attended a Trump
Sen. Ted Cruz, is redoubling event Wednesday in De Pere,
efforts to court female conser- left the event saying she was
vatives in the run-up to Tues- leaning toward the New York
day’s primary in Wisconsin. businessman. But just a few
His mother, Eleanor, made a hours later, she called his
rare campaign appear- equivocation on abortion “un-
ance Wednesday in Madison settling, for sure,” and said she
with her son, his wife Heidi, was backing away from sup-
and rival-turned-supporter porting him.
Bernie Sanders supporters in New York Thursday. He needs a win in the April 19 primary there to slow Hillary Clinton’s momentum. Carly Fiorina in an event that “I would think women alto-
he called a “celebration of gether should be considering
Key Test for Sanders Looms

women.” what all this means and its po-
Mr. Cruz sees an opening tential impact,” said Ms. Davis,
with female voters following who called punishing women
Mr. Trump’s state- for getting abortions “just
ment Wednesday that he fa- plain wrong.”
BY PETER NICHOLAS overcome the delegate edge,” New York for eight years in “Now I need some help as vors punishing women who Mr. Trump’s comments be-
AND ERICA ORDEN said Clinton spokesman Brian the Senate and owns a home to what else he’s made a prior- obtain abortions if the proce- came fodder for the first of
Fallon. in Chappaqua; Mr. Sanders ity,” Mr. Rangel said. dure was outlawed. what is likely to be a series of
NEW YORK—A New York Mindful of the stakes, each grew up in the state. Mr. Sanders was raised in a After an instant outcry from women-focused attack ads
primary that once looked like candidate figures to compete At a rally Thursday at the 3½ room apartment in Brook- abortion-rights opponents and from the Priorities super PAC
a sure thing for Hillary Clinton ahead of the April 19 contest State University of New York at lyn and despite having lived in backers alike, Mr. Trump re- backing Democratic front-run-
looms as a pivotal showdown in New York with an intensity Purchase, in the same county as Vermont for decades he has canted, saying only doctors ner Hillary Clinton and an arm
in the Democratic presidential not seen since Iowa and New her home, Mrs. Clinton, said: “It retained his New York accent. who perform such procedures of Planned Parenthood.
race, with rival Bernie Sanders Hampshire. Though the Wis- is so good to be His campaign is planning should be held accountable. In the 2012 election, Demo-
hoping to embarrass her in consin primary is Tuesday, home.…Westchester is more events that will highlight his The gaffe now sits at the crats similarly cast Republican
her adopted state with a Mrs. Clinton peeled away from than a county to me. It’s a com- origins, including trips to his forefront of the case that crit- Mitt Romney as hostile to
strong showing that would the Badger State for three munity where Bill and Chelsea old neighborhood and even the ics in both parties have been women by flagging his awk-
raise doubts about her elect- straight days of campaigning and I moved back in 1999,” she running tracks where he com- making for months: that Mr. ward reference to “binders full
ability. in New York that will culmi- said, rattling off some local res- peted as a high school athlete of women,” as well as his op-
Both campaigns see New nate Friday with a pair of taurants she enjoys. in the 1950s. position to Planned Parenthood
York as a prize with one of campaign stops in Syracuse. At the university event, she “It’s going to be difficult for
The candidate’s funding and birth-control cov-
two potential outcomes: A Her campaign rolled out a had a brief, tense conversation us to win in her home state. opponents in both erage under the Affordable
Clinton victory that deprives new 30-second TV spot that with a Greenpeace activist on But that’s what we’re going to Care Act.
Mr. Sanders of one of his best will air in New York and her the rope line who asked about try to do,” said Tad Devine, a
parties are seizing Wall Street Journal/NBC
remaining chances to cut into husband on Thursday held contributions she’s gotten from senior Sanders strategist. on the gaffe. polls show that women’s feel-
her delegate lead, or a Sanders several rallies in Manhattan. the fossil fuel industry. Mrs. “And I do think that if we can ings about Mr. Trump are
upset that would advance his Earlier in the week, Bill Clin- Clinton, pointing her finger at find a way to defeat her it much more negative than they
argument to superdelegates ton took part in private meet- the woman, said: “I am so sick, would be a gigantic signal that Trump’s attitudes toward were about Mr. Romney at this
that she is a risky bet in the ings with African-American I am so sick of the Sanders Hillary Clinton is a weak front- women and minorities make point in the campaign four
general election. and Hispanic leaders who campaign lying about this.” runner.” him a weak general election years ago. In March the poll
With 247 delegates up for could help boost turnout in “I was honestly surprised A Quinnipiac University poll contender. found 70% of women had nega-
grabs, New York carries the minority neighborhoods that by her reaction today. I wasn’t released Thursday showed Mr. Trump’s campaign on tive feelings about Mr. Trump,
largest cache of the conven- favor Mrs. Clinton. expecting that,” said 26-year- Mrs. Clinton beating Mr. Sand- Thursday didn’t respond to a up from 60% in July 2015 as
tion representatives of any One attendee was Bronx old Eva Resnick-Day, who said ers in the state 54% to 42%. request for comment about the his campaign began. In March
state left on the calendar save Borough President Ruben Diaz neither she nor Greenpeace Still, the poll offered some growing criticism of his state- 2012, Mr. Romney was viewed
for California. Mrs. Clinton Jr. In an interview, Mr. Diaz has any affiliation with the hopeful news for the Vermont ments and the conduct of his negatively by 39% of women.
now leads in pledged dele- said the meeting with a small Sanders campaign. senator: New Yorkers seem to campaign. Karen Gething, who at-
gates by 1,243 to 980. If Mr. group of elected officials and Appearing in Harlem on like him better. Mr. Trump met behind tended a Trump rally in Apple-
Sanders can’t come out New business leaders covered both Wednesday, Mrs. Clinton A total of 49% had an unfa- closed doors Thursday with ton Wednesday, said she wasn’t
York with a heavy majority of policy and political strategy. showcased her ties to New vorable view of Mrs. Clinton, Republican National Commit- concerned about Mr. Trump’s
the state’s delegates, the race “They’re taking New York York officials. She was accom- compared with 45% who tee Chairman Reince Priebus. “off-the-cuff” comments that
effectively would be over, Clin- state seriously. They’re not panied at a stop at a cake shop viewed her favorably. For Mr. Afterward, he said on Twitter some call misogynist. “I don’t
ton aides said. taking anything for granted,” by Rep. Charlie Rangel, who Sanders, 54% had a favorable that he had “a very nice meet- believe that is who he truly is,”
“There’s very little evidence he said. took aim at Mr. Sanders in a view, versus only 30% who had ing” with Mr. Priebus. she said. “He’s done a lot for
to date of their ability to win Both candidates boast ties conversation with reporters. a negative opinion of him. Criticism of Mr. Trump was women. That gets shoved off to
the big, diverse states like to the state that they will He congratulated the Vermont —Colleen McCain Nelson expanded further this week to the side.”
New York by the type of mar- highlight in the run-up to the senator on making income in- and Thomas MacMillan include his aggressive defense —Rebecca Ballhaus
gin they would truly need to vote. Mrs. Clinton represented equality a priority. contributed to this article. of campaign manager Corey contributed to this article.
POLITICS COUNTS | Natalie Andrews Engaged followers, by age

Age 18 or Age Age Age Age Age 43
The Race for Followers and ‘Influencers’ younger
Clinton 2.1% 19.2%

19–24 25–30
30.1%
31–36
27.8%
37–42
16.7%
or older
4.1%
An analysis of presidential candidates’ social-media accounts shows Republican front-runner Sanders 7.1 30.2 30.1 20.2 10.6 1.8
Donald Trump with the largest following, while Bernie Sanders is winning among young people
Trump 1.7 15.2 20.1 37.2 19.7 6.1
More so than any election following of the presidential is evenly split between men and tion, and links social-media ac-
before, the 2016 race for the candidates. An analysis by so- women, and her most-engaged counts to determine age, gender Cruz 0.9 14.5 21.2 21.7 29.4 12.3
White House is being fueled cial-media data company followers are 25-34 years old. and location information. The
by Twitter fights and Face- Captiv8 of Twitter, Facebook, Of Mr. Trump’s most-engaged firm says its analysis has a Kasich 0.5 13.5 21.2 22.3 29.7 12.8
book memes. An analysis of YouTube and Instagram follow- followers, by comparison, 62% 88%-90% accuracy rate. Captiv8 Methodology: Captiv8 uses image recognition and links social media accounts to determine
the presidential candidates’ ers of the candidates shows are male and 38% are female, doesn’t track private accounts. age, gender and location information. The firm says its analysis has a 88-90% accuracy rate.
social-media followers shows that Sen. Bernie Sanders has a and his most-engaged followers Some of Instagram’s most- Source: Captiv8 THE WALL STREET JOURNAL.
who they are reaching, and strong following from young are 30-39 years old. Most-en- followed accounts, including
suggests how social media people, while Republican candi- gaged is defined as followers singers Katy Perry and Miley
could be helping—or hurting— dates tend to have more follow- that have liked, commented, Cyrus, are following Mrs. Clin- new followers to her account, lowers and Ms. Cyrus’s 39.8
the contenders. ers over age 30. shared or retweeted a candi- ton. These so-called “influenc- says Captiv8 founder Krishna million followers are king-size
Businessman Donald Trump Democratic front-runner Hil- dates’s social posts. ers” can help Mrs. Clinton Subramanian. compared with the former sec-
has the largest social-media lary Clinton’s corps of followers Captiv8 uses image recogni- spread her message and draw Ms. Perry’s 44.4 million fol- retary of state’s one million.
FROM PAGE ONE
ANBANG dorf Astoria hotel in Manhat-

tan, could be straining its bal-
ance sheet, and it is unclear
whether Chinese authorities
rently worth $77.94 per share.
At the new price, Anbang ef-
fectively forced Marriott to
pay more than $1 billion extra
pursuing splashy takeovers of
rivals such as Starwood, with
its 11 brands.
Marriott Chief Executive
benefits from a combination of
the companies include $250
million in cost savings from
eliminating overlap.
ing to sales offers for months,
and a number of global play-
ers—including big Chinese
companies—considered a bid.
Continued from Page One approve of it. Asked for com- for Starwood. Arne Sorenson said in an in- Under the revised Marriott It later narrowed to a two-
deals, and there has been a ment for that earlier story, An- Marriott stock dropped 5% terview that he heard the news deal, Starwood shareholders horse race between Marriott
swirl of political opposition in bang said it is owned by more after its close of $71.18, signal- about Anbang’s withdrawal would receive $21 in cash and and Hyatt Hotels Corp., with
Washington. That Anbang than 30 corporate investors ing that some shareholders Thursday afternoon. “We’re 0.8 Marriott share for each Marriott emerging as the sur-
didn’t ultimately follow that don’t participate in the may have been happy for the thrilled,” he said. “And we’re Starwood share. Marriott and prise winner.
through after bidding aggres- daily operation of the com- company to lose the deal—and ready to go.” Starwood stockholders are Then in March, the Anbang
sively for Starwood is also pany. walk away with a breakup fee He declined to say whether scheduled to vote on the trans- group made a bid to break up
bound to reinforce concerns Starwood stock fell 4.5% af- exceeding $400 million. Marriott had been planning to action on April 8. If approved the deal, offering $76 a share
among U.S. companies that ter hours. The stock had closed Marriott executives and its raise its offer, but indicated by regulators and sharehold- in cash that it subsequently
Chinese counterparts still at $83.43 in New York. Some board, on the other hand, may the company felt it could ar- ers, the deal could close in bumped to $78.
aren’t ready for the big Starwood investors had wel- be breathing a sigh of relief. gue that even at the lower mid-2016, the companies have After Marriott raised its of-
leagues in M&A, and that comed the all-cash premium Some lodging analysts have price, its bid was superior. said. fer last week, Starwood an-
could hamper more such an- that Anbang offered at a time said that Marriott may have Marriott had said in a state- Last November, Marriott nounced this Monday that the
nouncements. when hotel shares have been run out of firepower with its ment Monday that Starwood signed a $12.2 billion deal for Anbang group raised its pro-
Anbang, an insurance com- volatile and recent terrorist at- last offer. Marriott’s counter- investors “should give serious Stamford, Conn.-based Star- posal again, to $82.75 a share
pany founded in 2004, has an tacks world-wide threaten to bid was an unusually aggres- consideration to the question wood, which has popular in cash. Starwood then said
opaque ownership structure, damp overseas travel, accord- sive move for a company that of whether the Anbang-led brands including W Hotels, St. the offer from the Chinese in-
with multiple layers of holding ing to some analysts. Should historically has been conserva- consortium will be able to Regis and Westin. The combi- surance giant was “reasonably
companies registered across Anbang have succeeded, the tive with its balance sheet. close the proposed transac- nation of Starwood and Mar- likely to lead to a superior pro-
China, the Journal reported takeover would have been the Chairman Bill Marriott typi- tion, with a particular focus on riott—the owner of Ritz Carl- posal.”
this week. Some insurance an- biggest Chinese purchase of a cally has had an aversion to the certainty of the consor- ton, Courtyard by Marriott and But Anbang never followed
alysts have warned that the U.S. company ever. taking on too much debt, and tium’s financing and the tim- the extended-stay Residence through to make the proposal
company’s recent acquisition Starwood now will stick the lodging company in the ing of any required regulatory Inn—would create the world’s binding, and it didn’t tell Star-
spree, which includes paying with Marriott’s most recent of- past has favored acquiring sin- approvals.” No. 1 hotel chain. wood why, according to people
nearly $2 billion for the Wal- fer, a cash-and-stock bid cur- gle-brand firms rather than Starwood and Marriott say Starwood had been listen- familiar with the matter.
WORLD NEWS
New Cabinet Wins Iraq Leader a Reprieve
Firebrand Shiite cleric bing for power, a move de-
signed to boost his image as a
and militia leader magnanimous leader, said
suspends protests Khadhum al-Moqdadi, profes-
sor of media and international
after proposed shuffle studies at Baghdad University.
Included on the list of po-
BY BEN KESLING tential ministers was Ali Al-
AND GHASSAN ADNAN lawi, a member of the transi-
tional Iraqi government
BAGHDAD—A weekslong following the ouster of dicta-
antigovernment protest in tor Saddam Hussein, and
Baghdad was called off Thurs- Sharif Ali bin al-Hussein, who
day after Prime Minister advocated Saddam Hussein’s
Haider al-Abadi proposed re- overthrow and claims to be
placing almost his entire cabi- heir to the last Iraqi king,
net, including his finance and Faisal II.
foreign ministers. Mr. Sadr previously re-
The move was largely leased a list of 90 names he
prompted by demands from said would make acceptable
firebrand Shiite cleric Moqtada cabinet ministers. He didn’t
al-Sadr, a fierce opponent of comment on whether he ap-
U.S. coalition forces in Iraq proved of Mr. Abadi’s choices.
who has in recent months The confrontation between
shifted his focus to campaign- Messrs. Sadr and Abadi has
ing for domestic reforms. been seen as a showdown be-
AGENCE FRANCE-PRESSE/GETTY IMAGES

In response to the prime min- tween Iraq’s wealthy political
ister’s proposals, Mr. Sadr sus- class and the masses, with Mr.
pended the antigovernment pro- Sadr leveraging popular griev-
tests that he had instigated, ances including unemployment
which began in February and and government corruption.
evolved into tent cities set up at “Abadi’s power is inside the
entrances to the capital’s so- Green Zone only, but Sadr’s
called Green Zone. The heavily power is both inside and out-
secured quarter houses parlia- side” it, said Mr. al-Moqdadi.
ment as well as embassies and “I believe that if politicians do
other international offices. A photo released by Iraqi Shiite cleric Moqtada al-Sadr shows him greeting Iraqi soldiers in the Green Zone in Baghdad on Thursday. not [approve] the reforms,
Mr. Abadi trimmed the size coming protests by Sadr will
of his cabinet from 22 minis- Mr. Sadr said that if parlia- of the strongest opponents of 2004 that lasted for months. Last weekend Mr. Sadr ap- be inside the Green Zone.”
ters to 16 and submitted a list ment didn’t approve the list, American influence in Iraq just The Baghdad tent cities be- peared himself at the protests The proposed new govern-
of 14 new names for parlia- he would press for a no-confi- as the U.S. plans to bring in gan in mid-March, snarling from his base in Najaf. Some ment measures are unlikely to
mentary approval. He kept dence vote in Mr. Abadi’s gov- more uniformed military per- traffic in the capital as crowds soldiers ostensibly on security take hold immediately, said
only his defense and interior ernment. sonnel to help fight the Sunni following his call erected or- detail rushed to take selfies Wathiq Al Hashimi, a political
ministers, citing security rea- Mr. Abadi’s decision amounts extremist group, Islamic State. derly rows of tents and medi- with him, illustrating his con- analyst at Baghdad’s Al-Nah-
sons. to a victory for Mr. Sadr, who Mr. Sadr came to promi- cal-aid and food stations. tinued popularity. rain University.
“I submit this list…you have rallied his massive populist fol- nence during the U.S.-led war The size of the crowds, and Protesters began breaking “The new ministers, if they
the right to accept, adjust or lowing among Iraq’s Shiite in Iraq in 2003, filling a politi- perceived threat to Green Zone down tents and cleaning up on get approved, don’t have a
refuse it,” Mr. Abadi told law- Muslim majority to agitate for cal vacuum and drumming up security led the government to Thursday, while others held magic wand to [perform] mira-
makers. anticorruption measures and popular support among Iraqis pull some of the Iraqi armed victory celebrations. cles,” he said.
Parliament will vote on the other changes that were prom- averse to the war. His militia forces, including special forces, Mr. Sadr had lobbied for a —Safa Majeed in Baghdad
names in 10 days, said Speaker ised almost a year ago. launched a major attack on back from the front lines fight- technocratic new slate of min- and Matt Bradley in Beirut
Salim al-Jabouri. It also risks empowering one U.S. and Iraqi forces in Najaf in ing Islamic State. isters instead of overtly grab- contributed to this article.
Libyan Oil
Ports Prepare
Egypt Antigraft Chief Put Under House Arrest
BY TAMER EL-GHOBASHY making the fight against cor- group. The group’s founder
AND DAHLIA KHOLAIF
To Reopen CAIRO—Egyptian authori-
ruption a signature policy
item after he took power in a
military coup in 2013.
and former head, Hossam
Bahgat, was recently hit with
a travel ban and had his as-
BY BENOIT FAUCON ties placed the country’s chief Mr. Sisi has called for sets frozen.
corruption watchdog under shrinking Egypt’s public sec- Mr. Geneina’s dismissal on
Three Libyan oil ports unofficial house arrest, his tor, which employs seven mil- Monday came after Mr. Sisi
closed for over a year are set lawyer said, days after he was lion people. But he has failed issued a decree in the summer
to reopen, now that a unity dismissed by the president to push a reform law through of last year—shortly after the
government has arrived in following his allegations of Parliament. watchdog started speaking
Tripoli, militia leaders said. widespread government graft. The Arabic Network for out—allowing the president
“It’s under the control of the A decree by President Ab- Human Rights Information for the first time to remove
unity government now,” said Ali del Fattah Al Sisi on Monday and others said Mr. Geneina’s the heads of independent
al-Hassi, a spokesman for the removed Hisham Geneina ouster is in direct opposition agencies if they pose a threat
militia protecting the facilities. from his post as head of the to the president’s stated goal to national security.
The ports have been shut for government’s Central Audit- of eradicating corruption. The CAA, created in 1942
ASSOCIATED PRESS
up to a year and a half, since ing Authority. It gave no ex- Several Egyptian rights to track municipal spending,
Libya split between two gov- planation for the move. groups and one political party had been immune from presi-
ernments in the east and west Mr. Geneina, a former po- sharply criticized Mr. Sisi’s dential control until Mr. Sisi’s
of the country. But on Wednes- lice officer and judge, now has move as unconstitutional and July 2015 decree.
day, Fayez Sarraj, the head of a plainclothes police officers said it was the latest develop- The use of the decree po-
U.N.-sponsored government en- stationed outside his home, Hisham Geneina says Egypt lost $76 billion through corruption. ment in a fierce crackdown on tentially exposes Mr. Geneina
dorsed by factions on both his attorney, Ali Taha, said in critics of his regime, including to criminal charges that could
sides, arrived in Tripoli to start an interview. The police con- nals that Mr. Geneina will face On Monday, Egypt’s home- Islamists, secular leaning ac- lead to life in prison, his at-
running the country. fiscated his phone, as well as prosecution for speaking out land security prosecutor ac- tivists, independent political torney said.
The reopening of the ports those of his family, and are against corruption and mov- cused Mr. Geneina of inflating figures and nongovernmental Mr. Sisi on Monday ap-
in Es Sider, Ras Lanuf and Zue- turning away any visitors, the ing to hold figures from the numbers on corruption organizations documenting pointed Hisham Badawy, the
itina raises hope that Libya can lawyer added. However, no Egypt’s executive, judiciary and abusing his power to se- police abuse. former prosecutor general of
increase oil exports, the main formal order for his house ar- and police accountable in cure documents to back up his “The late removal of the Egypt’s homeland security di-
source of revenue for a North rest has been issued. court for widespread graft claim. The accusations could head of the CAA is a massive vision, to succeed Mr. Ge-
African country that could The developments followed ranging from day-to-day be used to criminally charge blow to whatever little re- neina.
pump up to 1.5 million barrels months of political moves bribes to large-scale misap- the dismissed auditor, the mains of institutions and sep- Earlier this year, a commis-
a day. Recently, it has produced against Mr. Geneina that be- propriation of state land. prosecutor said. aration of powers in Egypt, sion formed by Mr. Sisi to in-
about 400,000 barrels a day. gan when he alleged last year Spokesmen for the Interior Mr. Geneina also said last and puts all the power in the vestigate Mr. Geneina’s claims
Separately, the European that from 2012-15, some $76 Ministry, which is investigat- year that fighting corruption hands of the executive and its said it found he had misstated
Union decided to move ahead billion was siphoned from ing Mr. Geneina, declined to was as important to Egypt’s president,” said Osama Diab, the breadth of corruption and
with sanctions on three leading Egypt’s coffers through perva- comment on Thursday. A stability as fighting terrorism. an anticorruption and trans- misled the public and “de-
Libyan politicians whom the sive corruption in the nation’s spokesman for Mr. Sisi didn’t He went on to allege that no parency researcher at the famed the state,” but the
bloc accuses of undermining the massive public sector. return a call and message political will existed for such Egyptian Initiative for Per- committee didn’t dispute the
peace process, diplomats said. Mr. Taha said all this sig- seeking comment. reforms, despite Mr. Sisi’s sonal Rights, an advocacy $76 billion figure.
WORLD NEWS
U.S., Allies Focus on North Korea Threat

Leaders discuss how
to denuclearize Korea Capital Scuffle
peninsula; Obama, Xi Points to Strains
to sign climate accord With Turkey
BY CAROL E. LEE WASHINGTON—Turkish
President Recep Tayyip Erdo-
WASHINGTON—President gan’s visit to the U.S., amid
Barack Obama called for the strained relations between the
U.S. and its allies to stand to- two allies, was marred on
gether against the threat of a Thursday as his entourage
nuclear-armed North Korea, as clashed with journalists and
more than 50 world leaders protesters on the street out-
gathered here for a two-day side a Washington think tank.
summit focused on stopping The U.S. has been voicing
nuclear proliferation. concern about Turkey’s crack-
Mr. Obama, at the start of a down on domestic critics and
meeting Thursday with Chi- press freedom, issues that
nese President Xi Jinping, said played out on the doorstep of
both countries “are committed the Brookings Institution, when
to denuclearization of the Ko- Mr. Erdogan’s security detail
rean Peninsula.” tussled with reporters and pro-
The increasing provocations Kurdish protesters. There were
JACQUELYN MARTIN/ASSOCIATED PRESS

from North Korea emerged as no arrests or injuries, police said.
a centerpiece of the Nuclear Ben Rhodes, a deputy na-
Security Summit. The meeting tional-security adviser to Presi-
also is marked by rising con- dent Barack Obama, said he
cern that terrorists, particu- had seen reports on the con-
larly Islamic State, are seeking frontations but didn’t know the
nuclear weapons or radioac- precise circumstances. “Obvi-
tive material. ously the United States
Mr. Obama also met with strongly supports freedom of
South Korean President Park the press and an independent
Geun-hye and Japanese Prime Barack Obama discussed North Korea with South Korean President Park Geun-hye, left, and Japanese Prime Minister Shinzo Abe. media,” he said.
Minister Shinzo Abe, saying The Turkish Embassy in
afterward that “security coop- with the front-runner’s state- a mixed legacy on the issue. threat, because Beijing is seen vene a meeting with world Washington didn’t respond to a
eration is essential to main- ments. “Nuclear proliferation, He secured a landmark deal as having the most influence leaders to address concerns request to comment.
taining peace and stability” in even among our close allies, is with Iran last year aimed at with Pyongyang’s leadership. that Islamic State militants Meanwhile, the White House
the region and to deterring never a desirable policy,” Mr. curtailing its nuclear program Ahead of the meeting, the could obtain nuclear weapons said Mr. Obama would meet in-
the “potential of nuclear pro- Cruz said Thursday. in exchange for the lifting of U.S. and China also said that or radioactive material to formally with Mr. Erdogan on
liferation as a consequence of White House officials said economic sanctions. But that on April 22 they would sign a make so-called dirty bombs the sidelines of a White House
North Korean activities.” Mr. Trump’s proposal wasn’t deal is controversial and could climate accord reached in Paris and use them in attacks. dinner for world leaders Thurs-
The president’s comments raised during Mr. Obama’s be derailed by a future Repub- in December by more than 190 The summit comes a week day. The administration had
come as nuclear proliferation meeting with the Japanese and lican administration. nations. Senior Obama admin- after bombings by Islamic turned down Mr. Erdogan’s re-
concerns have become part of South Korean leaders. Ben Meanwhile, the North Korea istration officials said the State followers in Brussels quest for a formal meeting. He
the 2016 presidential race. Don- Rhodes, a deputy national-se- threat has intensified after move should compel other killed 32 people and injured instead met with Vice Presi-
ald Trump, the leading Republi- curity adviser at the White several recent missile tests. countries to formally join the more than 300. Those attacks dent Joe Biden.
can candidate, has said some House, said Mr. Trump’s sug- And Russia, once seen as a agreement and proceed with followed the deadly attacks in Inside Brookings, Mr. Erdo-
U.S. allies, including South Ko- gestion “flies in the face of de- critical ally in reducing the steps to cut carbon emissions. Paris in November. gan acknowledged differences
rea and Japan, should feel free cades of bipartisan national- global nuclear-weapons stock- While the Nuclear Security Mr. Obama also met with between Washington and An-
to acquire nuclear weapons—a security doctrine.” pile, is boycotting the summit Summit, which will be Mr. French President François Hol- kara, but said the relationship
position that puts him at odds Reducing nuclear prolifera- after several years of strained Obama’s last before leaving of- lande, whom he praised for is “strong and deep enough” to
with longtime U.S. policy. tion was one of Mr. Obama’s relations with the U.S. fice in January, is intended to “galvanizing the European resolve them. He dismissed
Mr. Trump’s Republican pri- earliest goals in foreign policy. White House officials said address proliferation, it is likely community” in the fight charges his government has
mary opponents, Sen. Ted But his efforts have recently the president’s meeting with to be overshadowed on Friday against terror groups. suppressed political freedoms.
Cruz of Texas and Ohio Gov. faced significant tests and he Mr. Xi was critical to efforts in by the threat of terrorism. —Colleen McCain Nelson —Felicia Schwartz
John Kasich, have disagreed is on track to leave office with confronting the North Korea Mr. Obama plans to con- contributed to this article. and Carol E. Lee
IRAN Brazil Leader Seeks

Continued from Page One
ple mechanisms to allow for
this dollar trade, stopping short
Deals to Retain Rule
of normalizing banking transac-
tions,” said a congressional BY PAULO TREVISANI tions that could come into play
banking official briefed by the AND MARLA DICKERSON are the powerful Ministry of
IRANIAN SUPREME LEADER WEBSITE/EUROPEAN PRESSPHOTO AGENCY
administration on its plans, Health, with an annual budget

which haven’t been finalized. BRASÍLIA—With her admin- of more than 100 billion reais
Treasury action on Iran’s ac- istration on the ropes and ($27.5 billion), and the Ministry
cess to the dollar wouldn’t re- many here betting she will be of Mines and Energy, which
quire congressional approval. gone by May, Brazil’s President oversees Brazil’s petroleum and
American law still prohibits Dilma Rousseff is scrambling to iron-ore industries.
U.S. and foreign banks from rouse support in congress and Key to her efforts is the Pro-
dealing in dollars with Iran, de- on the streets to save her job. gressive Party or PP, the third-
spite the July nuclear agree- Following the exit of Brazil’s largest party in the lower
ment. The Treasury Depart- largest party, known as the house and a current ally. PP
ment designates Iran’s entire PMDB, from her ruling coalition Deputy Esperidião Amim said
financial system as a “primary on Tuesday, Ms. Rousseff and while most members are lean-
money laundering concern” due her advisers intensified negoti- ing toward impeachment, they
to Tehran’s nuclear and missile ations with smaller parties to were free to negotiate with the
programs and support for in- put together enough votes to administration for jobs. “The
ternational terrorist groups, block impeachment proceed- government is using guerrilla
such as Hezbollah in Lebanon ings fast bearing down on her, tactics,” he said.
and Hamas in the Palestinian according to people involved in The administration aims to
territories. Iranian Supreme leader Ayatollah Ali Khamenei speaking to a crowd during a ceremony in March. the talks. kill impeachment in the Cham-
The U.S. Treasury and State The lure: plum government ber of Deputies, whose mem-
departments declined to com- didn’t follow through and pro- rack Obama on Thursday, Rep. and funding for the Bashar al- posts and the resources that bers will decide, perhaps as
ment Thursday on preparations vide Iran with significant re- Brad Sherman (D., Calif.), said, Assad regime in Syria and the come with them. With the soon as mid-April, whether the
to allow Iran limited access to lief. “I believe this will set bad Houthi militia in Yemen. PMDB set to vacate several charges merit being sent on to
dollars. “The risk that sanctions precedent, and it will not be Since the agreement went prominent ministries, Ms. the Senate for a trial.
But Treasury Secretary Ja- overreach will ultimately drive the last time the Iranians and/ into force in January, Iran has Rousseff’s administration and Thousands of pro-Rousseff
cob Lew has stressed in recent business activity away from or their business partners re- scaled back its nuclear activi- her Workers’ Party, or PT, are protesters turned out in Brazil-
weeks the need for the U.S. to the U.S. financial system could ceive additional relief not con- ties. The U.S., however, has trying to shore up support from ian cities across the country on
comply with the “letter and become more acute if alterna- templated” under the nuclear maintained penalties on Iranian remaining allies and woo new- Thursday to denounce im-
spirit” of the nuclear agree- tives to the United States as a deal. defense and missile firms and comers to the fold. peachment as tantamount to an
ment and help Iran gain eco- center for financial activ- Senior members of Con- individuals allegedly involved Among the PMDB-held posi- overthrow of the government.
nomic relief. Congressional of- ity…assume a larger role,” Mr. gress on Thursday also rein human-rights abuses.
ficials following the Lew said. Iranian officials have in-
deliberations said they ex- The Treasury chief refused creasingly complained that the had flouted the country’s consti-
Most major
pected a Treasury action could
come within weeks, though
during a March congressional
hearing to answer a lawmaker’s international trade
ongoing U.S. penalties are pro-
hibiting Iran from conducting
World tution by ignoring a public cor-
ruption watchdog’s demand he
they acknowledged details of
the proposal were evolving.
questions about whether Iran
would be granted access to the
is conducted in U.S. normal business with a flood of
European, Asian and Middle Watch repay government funds spent
to remodel his private home.
Since 2006, the U.S. govern- dollar. The administration will dollars. East companies that have Constitutional Court Chief
ment has imposed an escalat- “make sure Iran gets relief,” he sought to enter the Iranian Justice Mogoeng Mogoeng or-
ing campaign to freeze Iran responded. markets. dered the scandal-plagued leader
out of the global banking sys- Members of Congress from leased statements voicing con- Iran’s Supreme Leader Aya- to repay within three months
tem in a bid to persuade Teh- both parties have rapped re- cern about the proposed tollah Ali Khamenei sharply INDIA some of the more than $20 mil-
ran to roll back its nuclear ports that the White House is arrangement. criticized the Obama adminis- lion spent on the compound. The
program. The sanctions crip- preparing to provide Iran with House Speaker Paul Ryan tration during a Persian New
Bridge’s Collapse government said Mr. Zuma
pled Iran’s economy and cut access to the U.S. dollar. said that the administration Year’s speech for allegedly mis- Kills at Least 23 would respect the court’s orders.
by more than half its oil ex- Lawmakers argued in let- should abandon the dollar-ac- leading Tehran’s nuclear nego- At least 23 people were killed —Patrick McGroarty
ports. Under the nuclear ters to the administration this cess idea. tiators during the talks. and dozens more remain trapped
agreement Iran consented to week that such a step risked And House Democratic “Our banking trade, our ef- after an overpass under con- CHINA
limit its nuclear aspirations in undermining U.S. sanctions Whip Steny Hoyer, who gave forts to return wealth from struction collapsed in the east-
exchange for the lifting of campaigns around the world, qualified support to ending their banks, various kinds of ern city of Kolkata, officials said.
Factory Output Rises
most international sanctions. which are predicated on using the sanctions regime during businesses that require finan- A police official Friday said the Two gauges of Chinese fac-
Treasury and State Depart- the heft of the U.S. financial congressional debates, said he cial services, all of these are number of dead had risen to 23 tory output registered a pickup
ment officials have traveled to system to punish America’s was opposed to granting Teh- still facing problems,” Mr. and 66 people were injured. Ma- in March on signs that policies
the Middle East, Europe and adversaries. ran any new relief “without a Khamenei said. “When we in- mata Banerjee, chief minister of aimed at boosting growth were
Asia in recent weeks to meet Iran, they stressed, contin- corresponding concession.” vestigate the issue, it becomes West Bengal, of which Kolkata is having some impact.
with foreign governments and ues to support terrorism and is “We lose leverage other- obvious that [the banks] are the capital, earlier said at least 78 China’s official manufacturing
private businesses to discuss developing ballistic-missile ca- wise, and Iran receives some- afraid of the United States.” people were trapped. The number purchasing managers index in-
ways to help Iranian com- pabilities, despite moving to thing for free,” he said. Mr. Lew and other U.S. offi- of casualties could rise as officials creased to 50.2 in March from
merce, according to U.S. offi- scale back its nuclear program. Iran has conducted a string cials said in the months after try to lift a large metal truss that 49.0 in February, according to
cials, who didn’t address the Republican Sens. Marco Ru- of ballistic-missile tests in re- the nuclear agreement that Iran fell on people, the police said. the National Bureau of Statistics.
proposed dollar arrangement. bio of Florida and Mark Kirk cent months that the Obama would continue to be denied —Kenan Machado This is the first time in eight
On Wednesday, Mr. Lew of Illinois wrote Mr. Lew on administration said were “in- any access to the U.S. financial months the figure has been at
gave an address on sanctions Wednesday seeking assurances consistent” with a United Na- system. This included blocking SOUTH AFRICA or above 50, the level dividing
policy at the Carnegie Endow- that Iran wouldn’t be granted tions Security Council resolu- Iranians from establishing ac- expansion from contraction. A
ment for International Peace, a dollar access. Their offices tion, though it stopped short of counts at American banks or
Court Finds Leader separate indicator, the private
Washington think tank, and said they haven’t received re- charging Tehran with a viola- conducting dollar trade Violated Constitution Caixin manufacturing PMI, rose
argued the U.S. risked losing sponses. tion. U.S. officials also believe through European or Asian South Africa’s highest court to 49.7 in March from 48.0 in
international credibility if it In a letter to President Ba- Iran is a major supplier of arms banks. ruled that President Jacob Zuma February. —Mark Magnier
THE WALL STREET JOURNAL. * * * * NY Friday, April 1, 2016 | A7
WORLD NEWS
Cameron Pushed to Avoid Plant Closure

BY NICHOLAS WINNING this is a difficult situation— based think tank, estimated as
AND ALEX MACDONALD there’s no guarantees of suc- many as 40,000 jobs could be
cess,” he said. lost in total if its steel plants
LONDON—Prime Minister A Tata Steel spokesman are closed.
David Cameron warned it confirmed that it is in talks Although the government
could be difficult to find a with several suitors interested has been in talks with the steel
buyer to save the U.K.’s biggest in parts of its U.K. business. industry for months in an ef-
steel plant because of prob- Mr. Cameron said his cen- fort to ease the current diffi-
lems the industry faces world- ter-right Conservative govern- culties, it looked slow to react
wide, but said nationalization ment wasn’t ruling anything after Tata Steel’s announce-
wasn’t the answer. out, but said he didn’t believe ment on Tuesday because Mr.
The Indian conglomerate nationalization was the answer. Cameron was on vacation
Tata Steel Ltd., Europe’s sec- The center-left opposition abroad and his secretary of
GEOFF CADDICK/AGENCE FRANCE-PRESSE/GETTY IMAGES

ond-largest steel producer, Labour Party and its union state for business was on an
said this week it was looking backers have urged the gov- official trip to Australia.
into selling its British plants, ernment to protect the domes- By contrast, Mr. Corbyn vis-
including the Port Talbot plant tic steelmaking industry, using ited Port Talbot on Wednesday
in Wales, due to their deterio- public funds if necessary, and to meet workers and urge the
rating financial performance. said that the government is government to do more to help
While steel production ac- “failing” thousands of steel- the industry.
counts for only a small portion workers whose jobs are at risk. Business Secretary Sajid
of the U.K. economy, the pros- “It’s not good enough for Javid’s office said he would
pect of significant job losses is David Cameron to stand by visit Port Talbot on Friday.
unwelcome for Mr. Cameron and say the situation is diffi- “Whilst we can’t change the
and his Treasury chief George cult,” said Labour leader Jer- status of the global steel mar-
Osborne, who won office on a emy Corbyn. “He must act now ket, we can and are playing a
promise to rebalance Britain’s to protect the heart of manu- positive role in securing a sus-
economy, including reviving facturing industry and take a The prime minister has promised to rebalance the U.K. economy, including reviving manufacturing. tainable future,” Mr. Javid said
manufacturing. public stake in steel.” in a statement.
After meeting with relevant The steel industry’s woes failed to sufficiently counter we might well find that it was ropean rivals due to U.K. Britain’s steel industry has
ministers Thursday to discuss also have become an issue ahead China’s alleged dumping of our steel that was having “green” taxes that add to pro- declined steadily since its
the situation, Mr. Cameron of the June 23 referendum on steel, or selling abroad at be- those tariffs and taxes put duction costs. 1970s heyday, now represent-
said the government was con- whether the British should leave low the cost of production. upon it,” Mr. Cameron said. Tata Steel is the largest ing just 0.1% of the annual na-
cerned that Tata Steel might the European Union. But the pro-EU camp, in- Chinese steel shipments producer in the U.K., account- tional output and employing
close Port Talbot outright, but Advocates of an exit argue cluding Mr. Cameron, notes into the EU have doubled during for 70% of domestic crude some 34,500 people, according
it had worked with the com- that EU membership has left more than half of U.K. steel ex- ing the past two years and steel production last year, ac- to official data.
pany to make sure there was a the U.K. government powerless ports go to the EU and says steel prices have collapsed, according to the bureau. —Jason Douglas
proper sale process. to support its domestic steel the U.K. would have less power cording to the International It employs some 14,000 contributed to this article.
“And we will be doing ev- industry and resulted in higher to tackle unfair trade practices Steel Statistics Bureau. British people in the U.K., and the In-
erything we can to encourage energy prices for manufactur- outside the bloc. steelmakers say they have suf- stitute for Public Policy Re- How steel’s global boom
people to come forward. But ers. They also say the EU had “If we were on the outside fered even more than their Eu- search, a center-left London- turned into a bubble.............. C1
Belgium Under Fire Money Launderers Seized in Germany

For Another Misstep BY ZEKE TURNER
BERLIN—A money-launder-
€2,500 and France to €1,000,
with an exception for tourists,
who are allowed to spend up
ing ring that recycled illicit MATTHIAS BALK/EUROPEAN PRESSPHOTO AGENCY to €10,000—about the price of
BY VALENTINA POP the laptop, investigators found proceeds worth at least €5 a Hermès Birkin handbag—in a
AND JULIAN E. BARNES the will of Ibrahim el-Bakraoui, million ($5.7 million) in Ger- single transaction. The ab-
one of the suicide bombers who many for heroin dealers across sence of such a limit in Ger-
BRUSSELS—Belgian authori- blew himself up at the Brussels Europe has been dismantled many makes the country an
ties said they released and later airport. Mr. Bakraoui had ad- after an international police increasingly notable exception.
rearrested a nephew of two of dressed the will to Mr. Attar. operation, authorities said on The government and the
the suicide bombers who car- A spokesman for the Belgian Thursday, highlighting the European Central Bank have
ried out last week’s terrorist at- prosecutor’s office confirmed country’s appeal as a place to floated ideas to limit cash
tacks in Brussels, the latest in a that Mr. Attar was again in cus- cleanse ill-gotten gains. transactions, only to face a
series of miscues by law-en- tody and charged with partici- Five Iraqi nationals were ar- powerful pushback.
forcement officials in the pation in a terrorist group. He rested on March 16 in Wiesba- Earlier this year Finance
deadly assaults’ aftermath. wouldn’t elaborate on why Mr. den and a small number of Minister Wolfgang Schäuble
Belgium’s handling of the Attar was arrested, released €500 notes seized in the raid, let it slip that he supported a
investigation into the Islamic and then arrested again. according to Europol, the Euro- Dropping the €500 bill won’t fly in a country where cash is king. ceiling on cash transactions in
State terror cell suspected of According to a Belgian offi- pean law-enforcement agency. principle, triggering immediate
plotting and carrying out both cial familiar with counterter- The raid marked a small were then exported for resale banks and fears that electronic protests from his fellow conser-
the Nov. 13 attacks in Paris rorism investigations, the re- victory against the money- to the Middle East, where the transactions could leave one vatives, libertarians of all hues,
and the March 22 attacks in lease with an ankle bracelet laundering industry that has proceeds could disappear more exposed to government and the opposition Greens party.
Brussels has triggered internal may have been a tactic to es- entrenched itself in Germany. without a trace through the surveillance or fraud, econo- “If a limit on cash transac-
and international criticism. tablish Mr. Attar’s contacts. Crime rings are drawn by the informal banking systems mists and historians say. tions were an effective means
U.S. officials expressed sur- A Belgian prosecutor went country’s openness to large common in the region. One consequence is a of fighting organized crime,
prise on learning that Yassin on Thursday to the high-secu- cash transactions, police and Some 79% of transactions money-laundering industry then there wouldn’t be a mafia
Attar, the nephew of the el- rity prison in Bruges to ques- underground-economy experts in Germany are settled in cash, that recycles as much as €100 in Italy anymore,” Hans Mi-
Bakraoui brothers who were tion Salah Abdeslam, the terror say, warning that their preva- according to the Bundesbank, billion annually, making it the chelbach, the chairman of par-
suicide bombers in the Brus- suspect who admitted being in lence makes it easy for crimi- the country’s central bank. largest in the eurozone, ac- liament’s finance committee,
sels attacks, had been released Paris for the attacks there and nal to evade detection while While bank transfers are pop- cording to a 2015 study for the told the tabloid Bild.
from custody and fitted with then hid for four months in cleaning vast amounts in bills. ular, checks are a curiosity and federal finance ministry by The ECB is considering
an electronic ankle bracelet by Brussels before being arrested The Wiesbaden group took credit cards aren’t widely money-laundering expert Kai whether to stop printing €500
Belgian authorities who had on March 18. According to one deliveries of cash from heroin used. Buyers who use cash in Bussmann, head of the Econ- bills, which studies show are
found traces of explosives in of his lawyers, Cédric Moisse, sales in countries as Spain, the large transactions, such as omy and Crime Research Cen- mainly popular among crimi-
his hair and clothes. He was Mr. Abdeslam “didn’t say any- Netherlands, Italy and the U.K. purchases of secondhand cars ter at the University of Halle. nals and terrorists.
rearrested Sunday. thing” except agreeing to be in batches of €70,000 to or new furniture, are often of- “Germany is one of the best In Germany the proposal
Mr. Attar, 29, was initially handed over to France. €700,000, officials said. fered discounts. countries for laundering money. has drawn vitriol from
detained after a laptop was The prosecutor’s office con- The group laundered the Explanations for Germans’ We’re financing criminality Bundesbank President Jens
found in a trash can outside the firmed that Mr. Abdeslam cash in Germany by purchas- fondness for cash range from here,” Mr. Bussmann said. Weidmann and the Bild tab-
bomb factory and hide-out used would be transferred to France, ing expensive used cars and widespread, low-level tax eva- Italy limits cash transac- loid, which has run a “Hands
by the Brussels attackers. On with timing still undetermined. farm equipment. The goods sion to a general distrust of tions to €3,000, Spain to off our cash” campaign.
Doyenne of Avant-Garde Architecture

BY ANNA RUSSELL
AND CHARLIE WELLS
Zaha Hadid, one of a hand-

ful of global architects whose
involvement on a project in-
stantly conveyed a sense of
prestige and cosmopolitan
flair, died on Thursday. She
was 65 years old.
Her death was confirmed by
Zaha Hadid Architects, a prac-
tice she established in London in
the late 1970s.
OBITUARY Ms. Hadid con-
ZAHA tracted bron-
HADID chitis earlier
1950-2016 this week and
JEFF J MITCHELL/GETTY IMAGES
died of a sud-
den heart at-
tack in the early morning during
treatment at a Miami hospital, a
statement said.
In an era defined by starchi-
tects, Ms. Hadid stood out for
her inventive, and often logis-
tically challenging, designs in Zaha Hadid standing outside the Riverside Museum in Glasgow in 2011, her first U.K. commission.
cities around the world. For
more than four decades, Ms. chitecture. Her breakout proj- made a Dame Commander of sued risk-taking designs for
Hadid’s work has questioned ect came in 2003 with the the Order of the British Empire. which funding was often scarce.
underlying assumptions of Rosenthal Contemporary Arts “She broke all the possible In 2004, Ms. Hadid became
what a building can be. “There Center in Cincinnati, a vast rules you can break,” said the first woman to win the
are 360 degrees,” she famously gallery of zigzagging ramps, Winka Dubbeldam, a friend of field’s highest award, the Pritz-
said. “So why stick to one?” praised by critics and de- Ms. Hadid’s and chair of grad- ker Architecture Prize—a rec-
In 1993, she completed her scribed by Ms. Hadid as an uate architecture at the Uni- ognition many felt overdue.
first major commission, the Vi- “urban carpet.” versity of Pennsylvania School Ms. Hadid seemed to take it
tra Fire Station in Weil Am High-profile projects since of Design. “She was not a con- in stride. “It’s very difficult for
Rhein, Germany. She devel- then include the coiled, multi- ventional person or architect.” a woman to survive in this pro-
oped a distinctive and power- layered National Museum of Born in Baghdad in 1950, she fession,” she told The Wall
ful design language in projects 21st Century Arts in Rome and studied mathematics at the Street Journal in 2000. “But it
that included a ski jump in the sinuous London Aquatic American University of Beirut was also liberating because
Innsbruck and a tram station Centre, built for the 2012 Olym- before attending the Architec- there were no stereotypes. I
in Strasbourg—creations that pic Games. Ms. Hadid was twice tural Association in London in didn’t need to become like any
helped shape her reputation as the recipient of the U.K.’s RIBA 1972. In 1979, she started her other woman architect because
the doyenne of avant-garde ar- Stirling Prize. In 2012, she was own practice, where she pur- there weren’t any.”
A8 | Friday, April 1, 2016 THE WALL STREET JOURNAL.
FROM PAGE ONE
CRYAN Former senior executives

who represent the bank on
foundation boards still can use
Deutsche Bank-funded chauf-
Continued from Page One feured cars and get offices in a
reaction to the dual U.S. and building near the bank’s head-
European financial crises of the quarters.
past decade. After a breakneck But broader economic cur-
expansion, they say, Deutsche rents have added to the chal-
Bank dragged its feet at fortify- lenge. Efforts by European cen-
ing its finances while U.S. ri- tral bankers to stimulate the
vals undertook painful restruc- economy by pushing interest
turings. rates into negative territory
Now it is playing catch-up. have made it even more diffi-
Regulators and investors want cult for Deutsche Bank and
the bank to thicken its capital others to boost revenue. Nega-
cushions, slim down its bulging tive rates create an upside-
balance sheet and move past down world where banks have
the government investigations to pay to leave money on de-
and lawsuits that are clouding posit at the central bank. At
its future. the same time, banks would
Other European banks also have difficulty passing on neg-
have seen their share prices ative rates to retail depositors.
hammered. Last week, for ex- The low rates also cut into
ample, shares of Credit Suisse profits in big lending busi-
KRISZTIAN BOCSI/BLOOMBERG NEWS

Group AG dropped after it said nesses.
trading revenue at its invest- The week of Feb. 8 was es-
ment bank was down sharply pecially bad for Deutsche Bank.
and that about 2,000 jobs Its shares were pummeled,
would be cut from its trading dropping 9.5% that Monday. In-
unit. vestors also were selling off
the new type of debt that
Deutsche Bank had issued—the
Regulatory pressure AT1s—worried the bank might
Regulators are forcing Euro- John Cryan, co-CEO of Deutsche Bank, has warned of two more lean years for the company before normalcy returns. not be able to keep up with
pean banks to increase their scheduled interest payments.
capital and reduce their reli- but what he needs is a market in 2013 and 2014. “We have Several billion dollars of
ance on borrowings, or lever- in which he can execute,” says taken decisive steps to protect Under Pressure cash and securities left the
age, to generate profits. Such James Chappell, European Deutsche Bank against known Deutsche Bank has underperformed its peers, and its executives bank’s prime-brokerage unit
belt-tightening would have banking analyst with Beren- capital challenges,” Messrs. have struggled to slash costs and boost capital cushions to absorb that week, according to people
been painful two or three years berg, a German bank. “The Fitschen and Jain said in a losses. familiar with the matter, a sign
ago, in steadier markets. Now, most levered banks, which in- written statement after the that hedge funds were worried
with a downturn in deal-mak- clude Deutsche, will struggle in second share sale. Stock performance Common Equity Tier 1 ratio*, a about the bank’s stability. El-
ing, weak trading revenues and this environment.” With regulatory capital re- measure of financial strength liott Management Corp. and
negative central-bank interest The problems at Deutsche quirements becoming more Lansdowne Partners LLP each
20% Dow Jones U.S. Bank 12%
rates, the exercise is proving to Bank, founded in 1870, date stringent, Deutsche Bank and pulled several hundred million
Stoxx Europe 600 Banks
be excruciating. back to decisions made before some of its European competi- dollars in assets from their
0 Deutsche Bank 10
Deutsche Bank is one of the the financial crisis. Under for- tors needed to boost their capi- prime-brokerage accounts,
world’s largest financial insti- mer Chief Executive Josef Ack- tal even more. The banks these people said. The total
tutions, and its capacity to fi- ermann and a top deputy, An- wanted to avoid issuing piles of –20 8 outflows were less than 1% of
nance companies and markets shu Jain, Deutsche Bank built new shares, which would dilute the division’s assets, but a wor-
has repercussions for all of Eu- up a giant operation, mostly in existing shareholders. So they –40 6 rying symptom of the week’s
rope’s economy. Its size and London and New York, which turned to a new type of finan- tumult. Mr. Cryan has said the
global breadth, its slow pace of revolved around trading securi- cial instrument known broadly –60 4 bank intends to expand its
internal changes and its multi- ties and other investment- as contingent convertible prime-brokerage business.
ple settlements with govern- banking activity. The goal was bonds, or CoCos. –80 2 Mr. Cryan called big asset
ment authorities over interest- to create a European franchise The bonds paid interest like managers to try to ease their
rate manipulation and other to rival the big Wall Street debt but would convert to eq- concerns. He said he never
–100 0
matters have made the com- firms. uity, or get wiped out alto- would have dabbled with the
pany a target of investor con- Deutsche Bank survived the gether, if a bank ran into trou- 2008 ’10 ’12 ’14 2012 ’13 ’14 ’15 ’18 debt securities he described as
cerns. first phase of the global finan- ble. Deutsche Bank sold about target a “menace” had he been in
*Core capital, including common stock, as a percentage of total risk-weighted assets
The 55-year-old Mr. Cryan, cial crisis. It didn’t take bailout $5 billion worth of its version Sources: FactSet (Deutsche, Stoxx 600 index); Thomson charge at the time. He an-
who is British and the former money from the German gov- of CoCos, called additional tier Reuters (US Bank index); the company (ratio) THE WALL STREET JOURNAL. nounced plans to buy back as
finance chief at Switzerland’s ernment. As its rivals teetered, 1 capital, or AT1. much as $5.4 billion
UBS Group AG, has tried to In September 2014, the ing in Frankfurt last May, only money. He suspended the of other bonds to prove that
calm jittery clients and take a bank’s supervisory board met 61% of shareholders present bank’s annual dividend. He the bank wasn’t in financial
hatchet to the bank’s cost base.
A state of malaise for an annual strategy meeting voted in approval of the execu- vowed to slash banker bonuses trouble.
He and his lieutenants have has descended over at a lakeside golf resort in the tive team’s work. Earlier that and supported eliminating Mr. Cryan and finance chief
told investors and employees Bavarian Alps. According to month, German banking regu- 2015 bonuses for the bank’s ex- Marcus Schenck have privately
that despite the turmoil,
European people familiar with the dis- lators had issued a confidential ecutive board. told investors and clients they
Deutsche Bank has a solid capi- investment banks. cussion, Mr. Cryan, who had report faulting Mr. Jain and He shrank the fleet of black view the recent market selloff
tal base and a workable plan to joined the board in 2013, asked several deputies for allegedly Mercedes-Benz S-class sedans as an unwarranted overreac-
shrink and stabilize its busi- a question: Did the bank really allowing misconduct to occur that shuttle senior executives tion. The bank produced a 13-
nesses, but that they should it tried to poach their business, have enough capital to pursue in connection with the London around Frankfurt, according to page presentation for its trad-
expect two more lean years be- boasting to prospective clients Mr. Jain’s strategy of staying interbank offered rate, or Libor. people familiar with the moves. ing partners that touted
fore normalcy returns. The about the bank’s superior fi- strong in trading businesses That June, the bank announced He canceled the bank’s NetJets Deutsche Bank as “a materially
bank has said it is cutting nances. that other banks were aban- that Mr. Cryan would replace private-jet contract. And he stronger organization than pre-
thousands of jobs. By the onset of the Euro- doning? Mr. Jain. Mr. Fitschen will step discontinued airport VIP ser- crisis.”
Before the financial crisis, pean financial maelstrom in Mr. Jain’s opinion was that down this May, leaving Mr. vices that for years had At the investor conference
Deutsche Bank was more lever- 2010, questions were swirling it did, if the bank executed Cryan as sole chief executive. whisked executives through se- in March, Mr. Cryan reiterated
aged than most competitors, about whether Deutsche Bank well, these people say. Deutsche Bank said in Feb- curity checks and onto the tar- his distaste for AT1s, calling
with about $61 of borrowings had enough capital to absorb Mr. Cryan said he wasn’t ruary that the German regula- mac in chauffeur-driven cars. them “bad products” that are
for every $1 of equity. That future losses—concerns that convinced. He figured stricter tor, citing steps the bank had “self-destructive” because
compared with a ratio of 39- weren’t afflicting rivals that regulations would cut into the taken to address problems, many investors don’t under-
to-1 for the average European accepted bailout capital. Never- bank’s ability to make money, doesn’t intend to take action ‘Mr. Grumpy’ stand the accounting rules be-
bank and 13-to-1 for the aver- theless, Deutsche Bank moved which could make its capital against the bank or current or Mr. Cryan’s dour demeanor hind them. Nevertheless, the
age U.S. bank, according to an to beef up its retail business at inadequate. former executives. earned him, among some col- bank has said it plans to sell
analysis by London-based Au- home by shelling out more Boardroom frustration with Mr. Cryan removed several leagues, the nickname “Mr. another €3 billion to €4 billion
tonomous Research LLP. than €6 billion for German Mr. Jain had been mounting, of Mr. Jain’s deputies, a num- Grumpy.” In the New York of- of AT1s.
Deutsche Bank has since re- lender Postbank, a deal fi- especially with his tendency to ber of whom had been criti- fice, some traders took to call- Deutsche Bank shares have
duced its leverage to $21 in nanced by issuing shares. accentuate positive news while cized in the German regulator’s ing him the “Bernie Sanders of rebounded 15% from their Feb.
borrowings for every $1 in eq- After Mr. Jain and Jürgen playing down significant bad report. He detailed plans to investment banking.” 9 nadir.
uity, which still exceeds the 18- Fitschen replaced Mr. Acker- news such as the bank’s high chisel away at big businesses, At a recent social gathering Now some board members
to-1 average for European mann as co-CEOs in May 2012, expenses, according to one per- including trying to sell the in Frankfurt, Mr. Cryan grum- have begun wondering whether
banks and the 12-to-1 average they bolstered the bank’s capi- son with knowledge of board Postbank business. He said the bled to a major investor about Mr. Cryan is overdoing it with
for U.S. banks, according to Au- tal enough to exceed regulatory deliberations. Board members bank would leave some coun- the bank’s wasteful culture, but the bad-news-first approach,
tonomous. That puts pressure minimums, but not enough to knew German regulators were tries and willingly relinquish said he can only tackle so according to a person familiar
on Deutsche Bank to cut more reassure many investors. growing exasperated, too, ac- certain clients. much, mentioning the chauf- with the board. Some wonder
costs, sell more assets or raise Eventually, the bank issued cording to other people famil- He set new targets to boost feured cars, according to one whether he should spend more
more capital. shares to raise more than €11 iar with the matter. the bank’s capital and reduce person familiar with the con- time emphasizing the progress
“Cryan’s doing all he can, billion in two separate moves At the bank’s annual meet- its reliance on borrowed versation. being made.
BLUE olina blue. In the 1960s, the

Tar Heels’ basketball games
were beginning to air on color
television, and that created an
lina’s newest alumni proudly
draped in these teal monstros-
ities, which was enough for
him to personally insist to the
logo, create a specific font for
uniforms and, as much as any-
thing else, settle on a stan-
dard Carolina blue. The whole
Continued from Page One unexpected problem: primitive university’s chancellor that he thing, said North Carolina ath-
national championship. technology was turning Caro- redesign them himself. He felt letic director Bubba Cunning-
“There are a gazillion lina blue gray. What happened the color had drifted over the ham, “was significantly more
shades of Carolina blue,” said next was one of the earliest years without people knowing challenging than I ever antici-
Chapel Hill Sportswear man- examples of television chang- the true blue. pated.”
ager Holly Dedmond. “I don’t ing college sports. The school “I went crazy,” he said. “It Carolina blue on printed
know that you’ll ever have intensified the color on its just drove me mad.” materials isn’t quite Carolina
only one.” basketball uniforms so it actu- Mr. Julian once asked Ka- blue on fabric or in LED
Carolina blue predates in- ally looked like the Carolina trina Ryan, the owner of Sug- lights. The color is especially
tercollegiate athletics at blue that everyone had come arland bakery in Chapel Hill, tricky in clothing. A sweaty
North Carolina. It was the to expect. for a batch of cookies in Caro- player’s jersey changes tones
color of the school’s debate The uniforms stayed that lina blue. She baked them and over the course of a game,
society, which was founded in way until the legendary Tar brought them across the while manufacturing difficul-
1795 when the school opened Heels coach Dean Smith asked street. He sent them back. ties can lead to more funda-
for enrollment, and adopted Mr. Julian to tweak North Car- There was too much butter, he mental problems. “It can be
by the Tar Heels’ football olina’s basketball threads in thought, for the cookies to be slightly off, and then it’ll start
team a century later. Only in 1990. Mr. Julian understood true Carolina blue. to look purple,” said athletic
the 1930s did the student the gravity of his responsibil- It turns out Carolina blue is department spokesman Kevin
newspaper start referring to ity. “The color was wrong,” he a high-maintenance color for Best. “That’s when it really
their hue as “Carolina blue,” said. “The first thing I did was kitchens. Ms. Ryan made them gets on my nerves.”
said Nicholas Graham, the uni- change the color back to real again. Mr. Julian sent them Carolina blue isn’t a color
JERRY WACHTER/SPORTS ILLUSTRATED/GETTY IMAGES
versity’s archivist. Carolina blue.” back again. It took four trips that the painter Donald Sultan
Since then few schools have Mr. Julian is as particular until he was satisfied. often sees on people who
become as closely tied to one as anyone on the planet about North Carolina’s process aren’t fellow Tar Heels.
color. Even the University of Carolina blue. A decade ago, for changing its Carolina blue “Maybe a polo shirt in the
Alabama, known as the Crim- for example, he was on cam- was almost as intense. The summer,” he said.
son Tide, shares a Pantone pus during graduation week- school’s officials understood On Saturday, when North
crimson with the University of end when he saw a woman in they needed to unify behind Carolina plays the Syracuse
Oklahoma and Indiana Univer- a teal graduation gown that one color when even people in University Orange in college
sity. Then there is that blue. he assumed was from another the athletic department were basketball’s national semifi-
“You look at that color,” school. “Gosh, poor thing,” he sporting slightly different nal, nearly all its fans will be
said Todd Van Horne, a Nike thought. “She just doesn’t shades. wearing the exact same inex-
Inc. vice president, “and you know any better.” They enlisted the help of act color, almost as if it were
can’t think of anything but But then he saw another Nike. The apparel company their religious custom.
Carolina.” one. And another one. Before spent more than a year inter- “If God wasn’t a Tar Heel,”
University of North Carolina unveiled a new blue last year. Carolina blue, however, long, to his horror, he had viewing athletes and alumni Mr. Julian said, “then why is
Michael Jordan, above, wore a different shade in this 1983 game. wasn’t always the current Car- seen thousands of North Caro- to re-evaluate the school’s the sky Carolina blue?”
OPINION
Trump’s Wisconsin Waterloo? BOOKSHELF | By Joseph C. Sternberg
Wisconsin
(Ripon, to be
exact) is the
of Mr. Trump, in the form of
heavy in-state advertising
and earned media.
a result made talk radio their
news hub, and learned to
communicate through online
Walker’s tax cuts was smart
politics. But the governor’s
approval with Republicans is
The Free Stuff
birthplace of
the Republi-
can Party. So
But it’s the in-state dy-
namics that are hurting him
most. Wisconsin has been in
and social media.
Four “talkers” in particu-
lar—Charlie Sykes, Vicki
significantly higher—likely in
the 70% to 80% range.
Mr. Ryan also is widely
Majority
POTOMAC perhaps it’s continuous political warfare McKenna, Jerry Bader and liked and admired among
WATCH fitting that
Wisconsin
for six years. Over that time,
Republicans lived through
Mark Belling—exercise enor-
mous influence, and cover
Republicans in the state, in
particular because he still
Conspiracies of the Ruling Class
By Kimberley
may be the Gov. Scott Walker’s epic bat- nearly every inch of the state actively engages in state bat- By Lawrence B. Lindsey
A. Strassel
state that tle for his Act 10 public-sec- media market. These days, tles. He regularly goes on (Simon & Schuster, 263 pages, $26)
A
takes back tor bargaining reform; judi- politicians routinely break talk radio; he has openly sup-
the Republican Party from cial races; a Senate recall ported Walker reforms; he nger is the emotion of the moment in American poli-
Donald Trump. effort; a gubernatorial recall helps out state legislative tics, and in an era of economic malaise at least pun-
The Badger State is gear- effort; a political assault in a The state’s political candidates. Mr. Cruz, by con- dits, pollsters and political scientists can look forward
ing up to hand the real-estate vicious John Doe probe; trast to Mr. Trump, clearly to many years of happy employment explaining exactly what
mogul a defeat, and in the another election cycle; cam- dynamics are hurting was well briefed on the we’re all so mad about this year. Job insecurity? Globaliza-
process potentially reroute, paign-finance reform; an the GOP front-runner, broader environment. His tion? ObamaCare? Cultural change amid new waves of immi-
yet again, the GOP primary. overhaul of the state’s ethics praise of Messrs. Walker and gration? Alarm at growing global instability? Take your pick.
Polls show Ted Cruz beating body; a right-to-work law; and the polls show it. Ryan earns him strong ap- In “Conspiracies of the Ruling Class,” Lawrence B. Lindsey
Mr. Trump, and some prog- and prevailing-wage reform. plause at events, and he’s suggests that we’re angry because of how badly we’re gov-
nosticators have gone so far To name a few. grasped the power of the erned. America has fallen captive to a “Ruling Class” (his
as to suggest the billionaire The state is also proudly their news on radio. Gov. state radio. capitalization throughout the book) concerned more with its
could place third—behind home to the speaker of the Walker announced his recent Wisconsin meanwhile could own power than with the welfare of the country. This will be
even John Kasich. The oppo- House, Paul Ryan, and a gov- endorsement of Ted Cruz on be huge. Mr. Trump—if he a familiar story to anyone who has studied the history of
sition to Mr. Trump is deep ernor (Scott Walker) who ran the Sykes show. The new loses badly enough—could progressivism and how over the past 120 years or so it has
and wide enough that he for his party's presidential chief justice of the state Su- come out of this primary with subverted the Founders’ promise of individual liberty with
could lose most districts. nomination. The result is a preme Court, Patience Rog- only a half-dozen delegates promises of free stuff.
This rebuke has taken a lot conservative electorate that gensack, granted her first in- out of 42. That would all but So it is that our mandarins
of the media and political is highly informed, highly en- terview to Mr. Sykes rather tank his ability to reach the now control what we can do on
class by surprise. They fig- ergized and highly involved. than to a newspaper. 1,237 mark for the nomina- our property (unless they’ve cho-
ured Mr. Trump would do in The fights so far have given Mr. Trump stumbled onto tion. Wisconsin could tip this sen to seize it for their own pur-
this upper Midwestern state voters an acute appreciation three of the four biggest into a contested convention. A poses via eminent domain). They
what he’d done in other of the conservative principles shows on Monday, seemingly bad enough Trump loss might restrict where we can send our
states with a moderate or at stake, and a pride in de- unaware that all the hosts also reset the views of voters children to school (and would like
purplish tint: win. What they feating union and liberal pri- are part of the “Never in the Northeast primaries to limit our choices far more).
missed is Wisconsin’s recent orities. They have radar sen- Trump” movement. Mr. Sykes coming next. They control how much employers
political history and changed sitive to “fake” Republicans, likened Mr. Trump to a “12- But perhaps the bigger po- must pay workers and even place
Republican culture—which and many aren’t keen on year-old bully” and insisted tential for Wisconsin is to re- arbitrary limits on the size and
have combined to make the what they are hearing from he was no conservative. Ms. inforce a growing view number of bank deposits we can
state fertile ground for a Mr. Trump. McKenna was similarly among organized Republicans make before being subject to extrajudicial
Trump takedown. Wisconsin’s recent political rough, though Mr. Trump did that Mr. Trump is indeed a civil-forfeiture proceedings. In return we’ve got worsened in-
Part of Mr. Trump’s prob- battles also resulted in a dra- himself no favors by hanging party usurper, and that they come inequality, lost educational opportunities, roads full of
lem is simple logistics. Wis- matic shift in the state’s com- up on her. have a duty to use an open potholes and ruined national finances.
consin was put on the cal- munications culture. Conser- He’s also won no votes by convention to stop him. The No wonder Americans are hopping mad. They’ve figured
endar as a stand-alone vative wariness of liberal, in- lambasting both Mr. Walker birthplace of the GOP—and out, as Mr. Lindsey, an economist who served in Republican
primary, with two clear state newspapers turned to and Paul Ryan. Mr. Trump the home of one of the na- administrations from Ronald Reagan to George W. Bush, puts
weeks before and after it. The outright loathing as the print might have been looking at tion’s most war-bloodied and it, “that government is taking more and more—more re-
field is now down to three media exhibited a continual Mr. Walker’s statewide ap- conservative crowds—looks sources, more freedom, and more power—and has strayed
candidates. All of this has al- bias against Mr. Walker and proval numbers (in the 40s) ready to tank Mr. Trump. from how it can best serve them. Public services are misplaced
lowed for far greater scrutiny Republicans. Conservatives as and figured that hitting Mr. Write to kim@wsj.com. and ineffective. The country is in retreat in the world arena.
Those in power seem to see government as a vehicle for them-
selves: an opportunity to make a personal mark in history.”
Crime, Justice and Mercy in Vatican City Mr. Lindsey (who, bear in mind, wrote most of this book
before Donald Trump proved to have staying power in the
Republican primaries) believes that voters are ready for a
HOUSES OF Mercy has the laws in 2013 to strengthen and received an 18-month sen- lic-relations expert and mar- change and sketches out a plausible way in which an angry
WORSHIP been the ani- punishments against child tence. A few weeks later, the ried woman, as a “seductive electorate can be persuaded to vote for politicians who will
By Javier mating force sexual abuse and leaking confi- pope pardoned Mr. Gabriele personality” that pushed her roll back the administrative state and restore constitutional,
Martínez- of Pope Fran- dential documents. and found him another job at client to leak. (Following the limited government. Voters routinely tell pollsters that they
Brocal and cis’ three- The 500-year-old Pontifical the Vatican—albeit one without arrests, an Italian magazine think increased government spending hurts the economy and
Adam O’Neal year pontifi- Swiss Guard—known for its tra- access to secret documents. ran the headline, “Una bomba that they would prefer “a smaller government with fewer ser-
cate. And the ditional, colorful uniforms— About a month before the sexy che imbarazza il Vati- vices and lower taxes.” From this Mr. Lindsey discerns a
Extraordi- provides security for the pope. Jubilee of Mercy began in De- cano,” or “A sexy bombshell “pro-liberty majority” just waiting for the right candidates.
nary Jubilee of Mercy, which Italian police patrol parts of the cember, the Vatican press embarrasses the Vatican.”) Once elected, such politicians could assert legislative con-
the Catholic Church has been city state. But the Vatican also office announced that a high- The trial is in recess until trol over the government. Progressivism places such demands
celebrating since December, is has its own 130-strong police ranking Holy See official had April 6, after the now-pregnant on the administrative machinery that 535 yokels in Congress
the greatest expression of the force, known as the Gendar- been arrested. Mr. Vallejo Ms. Chaouqui’s doctor ordered can’t keep up and have therefore delegated what amounts to
pope’s interest. Millions of merie. They spend most of their Balda, along with his aide and her to maintain “absolute bed lawmaking authority to the bureaucracy. Restoring to Congress
Catholics are taking the oppor- time monitoring the Vatican’s a consultant, was accused of rest” for 20 days. But with Mr. the responsibility for fine-tuning legislation might not lead to
tunity to renew their faith and walls and guiding traffic. They “forming a criminal organiza- Vallejo Balda’s cooperation, an better laws but it would introduce some accountability.
receive plenary indulgences pursue pickpockets in the Vati- tion and of procuring and acquittal is unlikely. Ms. Cha-
during what Francis has called can Museums and manuscript leaking confidential docu- ouqui says she is a scapegoat
“a true moment of encounter thieves at the Vatican Library. ments.” A pair of Italian jour- but will abide by the Vatican How can we believe most Americans want
with the mercy of God.” nalists who had published court’s ruling, and the other smaller government when even Tea Partiers
Vatican City’s judicial sys- books based on the leaks were defendants’ plans aren’t
tem, however, is not taking the A priest and a ‘sexy charged with “soliciting and known. It is unclear what will cling to Medicare and Social Security?
year off. Msgr. Lucio Ángel exercising pressure . . . to happen should they choose to
Vallejo Balda has spent the Ju- bombshell’ stand trial obtain the documents and defy the Vatican’s ruling.
bilee in a Vatican City jail cell, for leaking sensitive other reserved information.” Yet regardless of the court’s Another reform would be term limits, not necessarily for the
and he could face up to eight Amid documents about Vati- decision, the pope is the final House or Senate but rather for the judiciary and the upper ech-
years behind bars for crimes financial documents. can finances—which mostly arbiter. He rules as an absolute elons of the bureaucracy, which would limit the ability of bu-
against the Vatican City State. confirmed widespread suspi- monarch—with complete legis- reaucrats to wait out elected officials with whom they disagree.
He and his co-defendants won’t cions of financial bungling— lative, executive and judicial A third important step Mr. Lindsey suggests is to return to
be the first to be prosecuted by The Gendarmerie are also in came an audio recording of powers inside Vatican City. As Congress’s hands the budget authority that lawmakers handed
the world’s smallest state. charge of the city’s few jail Pope Francis urging officials to such, Francis will be forced to to the bureaucracy (or to fate) in the 1970s, so that the Ruling
There are two types of cells—longer sentences are be thriftier. “It’s no exaggera- make a decision when the trial Class could no longer benefit from fiscal autopilot on Capitol
courts within the Vatican: reli- served in Italian prisons— tion to say that most of our ends. Does he follow Benedict Hill. He has in his sights especially the government’s policy of
gious and civil. Religious which are said to comply with costs are out of control,” says a XVI’s path, pardoning pious but continuing to write entitlement checks even if the total spent
courts punish heretical priests, the Geneva Conventions. Every frustrated Holy Father. disloyal employees? Or will he comes in well above the estimate. A mechanism requiring
for example, and their jurisdic- so often, however, they investi- Although it involves a be stern, sending a message to Congress to make up the overrun in subsequent years would
tion extends beyond the Vati- gate crimes against the pope. priest, the case is not being unruly officials who believe force lawmakers to take up entitlement reform.
can’s walls. Penalties follow the The first documented case tried by a religious court but they can defy the pope? Unfortunately, there’s not a lot of evidence that a pro-liberty
principle of salus animarum, of a burglary in the papal by one of the Vatican City Francis personally approved electoral majority exists—even without pondering the 2016
the salvation of souls. They apartment came in 1968. While State’s civil courts. Led by the arrests and has so far Trump juggernaut. Consider 2012, which Mr. Lindsey acknowl-
come in the form of invitations Pope Paul VI was away, three respected Italian jurists, the shown no interest in a pardon. edges is a challenge to his hypothesis. Voters claimed to be
to repentance, expulsion from telephone technicians stole a trial began on Nov. 24, 2015, Perhaps the pope of mercy worried about government overreach and yet returned Barack
the priestly state or, in severe few gold medals. After a and is expected to be decided plans to prove he is no push- Obama to office. This despite the fact that Mitt Romney polled
cases, excommunication. lengthy trial, the pope par- in the coming months. over. well when voters were asked who they thought would be the
The Italian civil code of doned the guilty men. Mr. Vallejo Balda, who stronger leader and who had the best vision for the future.
1929, however, is the founda- In 2012, another thief hit confessed on March 14 to Mr. Martínez-Brocal is the The worrying sign here is the number of voters who say
tion of the Vatican City State’s the papal apartment—and this leaking the documents, has director of Rome Reports, a in polls that they want to elect a president who “cares about
civil law. Various popes have time, the butler did it. Pope turned on his former consul- television news agency that people like them”—around 20% in 2012, four out of five of
updated the code with prohibi- Benedict XVI’s butler, Paolo tant and fellow defendant, 34- specializes in coverage of the whom voted for Obama and were enough to swing the elec-
tions against new crimes like Gabriele, stole confidential year-old Francesca Chaouqui. Vatican. Mr. O’Neal is an tion. Mr. Lindsey recognizes this is as a signal that voters
drug trafficking and financing documents and leaked them to The priest’s attorney has de- assistant editorial features ed- deep down want candidates who are likely to direct govern-
terrorism. Francis overhauled the press. He was convicted scribed Ms. Chaouqui, a pub- itor at the Journal. ment favors toward them. Nonetheless he hopes that the
right kind of small-government message can persuade these
voters that constitutional order is good for them personally.
Notable & Quotable: Let Blockchain Flourish

He describes this political mode as “philosophically populist,
operationally libertarian.”
It’s hard to share his optimism when even Tea Partiers
From remarks by J. Christo- speed, linking recordkeeping the industry with little clarity. set forth uniform principles in cling to Medicare and Social Security. Most people seem to
pher Giancarlo, a commissioner networks, reducing transac- Yet, this investment faces an effort to encourage DLT view congressional stasis as a flaw in the system—the sub-
with the Commodity Futures tion costs and increasing mar- the danger that when regula- investment and innovation. I text being that inaction in Washington makes it hard for the
Trading Commission, at a ket access. It will broadly tion does come, it will come favor the latter approach. government to give us the things we really want—rather
March 29 symposium on block- impact financial markets in from a dozen different direc- Fortunately, there is a good than as one of the last lines of defense that we common folk
chain technology hosted by the payments, banking, securities tions with different restric- model for fostering the healthy have against the Ruling Class. We may think that govern-
Depository Trust & Clearing settlement, title recording, tions stifling crucial techno- development of DLT—the U.S. ment spending in general is bad for the country, but by golly
Corp. in New York City: cyber security and trade re- logical development before it approach to the early Internet. the spending that benefits us personally is indispensable.
porting and analysis. . . . reaches fruition. . . . The Telecommunications Act of Progressive governance has failed by just about every
The emergence of distrib- There is no doubt that DLT I believe that innovators 1996 and the ensuing Clinton practical measure that matters. But it has been a tremen-
uted ledger technology, which has sparked an incredible and investors should not have administration “Framework for dous political and philosophical success. The ways in which
all of you know is sometimes amount of interest within the to seek government’s permis- Global Electronic Commerce” the contemporary administrative state divides goodies
referred to simply as “DLT” or financial industry. Not a week sion, only its forbearance, to were clear: the private sector among voters create a complex web of interest groups to op-
“blockchain,” may revolution- goes by without several news develop DLT so they can do should lead. Governments and pose any attempt at reform. Donald Trump’s supporters
ize the world of finance. In articles, opinions and reports the work necessary to address regulators should avoid undue don’t want less government. They want a manager in chief
fact, the Bank of England has discussing the potential bene- the increased operational com- restrictions, support a predict- who will make the current system work better for them.
called DLT the “first attempt fits and challenges of the plexity and capital consump- able, consistent and simple
at an ‘Internet of finance.’ ” technology. Billions of dollars tion of modern financial mar- legal environment and respect Mr. Sternberg is editorial-page editor of The Wall Street Jour-
DLT has the potential to link are being invested in dozens of ket regulation. the “bottom-up” nature of the nal Europe in London.
networks of legal recordkeep- new ventures and innovations. Regulators have a choice in technology and its develop-
ing the same way the Internet Development is moving rapidly, this regard. I believe we can ment in a global marketplace.
connects networks of data and certainly faster than under- either follow a regulatory This model is well-recognized In BOOKS this weekend
information. It will have pro- lying legal and regulatory path that burdens the indus- as the enlightened regulatory A long history of retail therapy • The businessman poet •
found implications for global frameworks. Rules regarding try with multiple onerous reg- underpinning of the Internet The Great Society at 50 • Frederick of Prussia • The genius
financial markets by increas- DLT are currently unwritten ulatory frameworks or one that brought about profound and soul of James Brown • Negotiating with kids • & more
ing settlement efficiency and and likely years away, leaving where we come together and changes to human society.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Trump’s Nuclear World Trade, Sans Manufactures to Sell, Hurts U.S.
P
resident Obama hosted the fourth Nu- a nuclear race among historic enemies such as Regarding Frederick W. Smith’s eign shores. The economy as a whole
clear Security Summit in Washington China, Japan and the two Koreas would be in- “How Trade Made America Great” is also the loser. We produce little,
(op-ed, March 26): Trade made Amer- consume much and borrow to cover
on Thursday, and in an ordinary year herently treacherous and escalate the risks of
ica great—when it was in addition to the difference. However, this can’t go
the headline news might be a military mistake or a politi- production. And abandoning produc- on forever.
Vladimir Putin’s decision to The Pax Americana cal confrontation. tion to concentrate on consuming and LARRY EUBANK
skip the event, or Mr. Obama’s has prevented Also not clear is why the borrowing has made us debt-ridden, Bloomington, Ind.
decision to snub Turkish Pres- example of a nuclear arms weak and dependent. Producing
ident Recep Tayyip Erdogan. a darker nuclear age. race in Asia shouldn’t inspire things, which we then either con- If free trade is so great for Amer-
But this isn’t an ordinary other countries to get in the sumed or traded, made us prosper- ica, why did we have a trade deficit of
year. game. Mr. Cooper asked Mr. ous. Ceasing to produce, but paying $539 billion in 2015? You wonder why
So leave it to Donald Trump to crash this Trump whether he would favor Saudi Arabia other countries to produce things Donald Trump and Bernie Sanders are
nuclear party like Zach Galifianakis at an Eas- getting a nuclear weapon, presumably as a which we then import (now called getting such support? Working-class
ter sermon. Asked by CNN’s Anderson Cooper hedge against Iran getting the bomb. Mr. “trade”) brought poverty and debt. and many middle-class voters feel ne-
Divesting ourselves of factories has glected by the establishment politi-
earlier this week whether he favored Japan and Trump equivocated—“not nuclear weapons,
lifted hundreds of millions of Chinese cians of both parties who promise
South Korea developing nuclear weapons of but they have to protect themselves or they peasants out of poverty, while laying much and deliver nothing.
their own, the Republican front-runner said he have to pay us,” he said. But if the Trump Doc- waste to our manufacturing base. DICK SIMMONS
wouldn’t mind if they did, and that it’s proba- trine is to insist that our allies “protect them- Isn’t that special. Kingwood, Texas
bly only a matter of time before they did so selves,” why should they stop at conventional The be-all and end-all of a prosper-
anyway. weapons? ous economy is production (“Wealth Mr. Smith is correct about the mer-
“At some point we have to say—you know It’s for that reason that U.S. Presidents from of Nations,” Book IV, Chapter III, Part its of free trade, but where he falls
what?—we’re better off if Japan protects itself Harry Truman to George W. Bush have under- II). But in the modern pundit’s half- short is on the lack of efforts by in-
against this maniac in North Korea, we’re bet- stood that America’s security interests are bet- baked version of classic economic dustries and governments to provide
ter off, frankly, if South Korea is going to start ter served by extending the U.S. nuclear um- theory, the be-all and end-all of eco- training and opportunities for those
to protect itself,” he said. Pressed by Mr. Coo- brella to allies rather than encouraging them nomics is either “no tariffs” or “cheap displaced by free trade’s negative
consumer goods.” consequences in developed nations.
per whether there wasn’t a benefit to the U.S. to go nuclear themselves, lest multiple arms But the losers are the invisible Success in America shouldn’t only be
in providing (nuclear-backed) security guaran- races develop around the world, as it already masses of former and potential fac- for those who are highly educated,
tees to our allies in Asia or Europe, Mr. Trump has between India and Pakistan. It’s also why tory workers who are deprived of ad- but they are the only real winners in
acknowledged “there’s a benefit, but not big Mr. Obama’s efforts to shrink the U.S. nuclear equate employment by our reckless our globalized society.
enough to bankrupt and destroy the United arsenal are so dangerous, since it inevitably abandonment of factories, jobs, pro- CHRISTIAN TEETER
States, because that’s what’s happening.” shrinks the umbrella with it. ductive capital and technology to for- Los Angeles
For the record, Japan spends more than $2 Similarly, our failure to support Ukraine
billion a year for the privilege of hosting U.S. against Russian aggression after Kiev gave up
forces, while South Korea pays close to $900 its large nuclear arsenal in the 1990s in ex- The College Scorecard: A Government Failure
million, meaning it’s cheaper to the U.S. to keep change for U.S. guarantees of its territorial
Regarding Peter McPherson and tion rates for all students, etc.—still
our forces there than bring them home. Both sovereignty sends a dangerous signal that
Andrew P. Kelly’s “The College Score- would paint an inaccurate picture, be-
countries also field robust military forces of countries should hold on to their arsenals card Strikes Out” (op-ed, March 17): cause schools deal with students of
their own, with South Korea having more rather than trust in Washington’s promises. The Obama administration’s Scorecard widely varying preparation, family sit-
ground troops (495,000) than the U.S. Army The right response to Mr. Obama’s nuclear indeed deserves an “F.” But the ob- uations and so on. Failure to control
(475,000). As for Europe, we currently station naivete is to modernize America’s aging arse- struction wasn’t the Higher Education for such things—not to mention attri-
some 70,000 troops there, down from more nal and make good on our promises to aid our Opportunity Act of 2008, as the au- butes like grit and desire—can make
than 300,000 during the Reagan years. non-nuclear friends when they are threatened thors contend. It was politics. Aca- institutions look bad when they are
But facts aside—with Mr. Trump, that’s or invaded. Mr. Trump’s alternative is a nuclear demics and nonpolitical participants actually working with students facing
where the facts often are—there’s still his ar- free-for-all in which atomic weapons will inevi- on the drafting committee reported the greatest obstacles. And there al-
gument that the U.S. would be better served tably fall into ever more dubious hands. If the many instances of administration rep- ready is substantial information about
if some of our non-nuclear allies got bombs of thought of Pakistan having nuclear weapons in resentatives choosing political points schools and the economic prospects of
over meaningful student information. majors that often appears to go un-
their own. This is not an original idea, and its current political state makes you queasy,
Suggestions for Scorecard measures used. Empowering Washington to
some academics have gone as far as to suggest how will you feel should the Taliban come to important to prospective students gather more data on students—includ-
that wider nuclear proliferation might serve power in Islamabad? were frequently met with “we cannot ing those who get no federal aid—with
the cause of international peace, while allow- For all of his criticism of Mr. Obama, Mr. include that, it will make historically little confidence it would be used cor-
ing the U.S. to retreat to a classic balance-of- Trump largely shares the President’s disdain black colleges look bad” and “that rectly or widely is a dubious move.
power posture with allies and enemies alike. for the Pax Americana that succeeded in win- cannot be on the Scorecard, it will NEAL P. MCCLUSKEY, PH.D.
But the problem with a balance of power is ning the Cold War and preventing nuclear war. make for-profit schools look good.” Cato Institute
that power doesn’t like to stay balanced, as Eu- The next President should understand the les- Such political prioritizing produced a Washington
ropeans discovered in 1914. That’s especially sons of that peace rather than consign the failing grade and a missed opportu-
true in an area such as Northeast Asia, where world to a darker nuclear age. nity. Using politics to dictate out- If we were we educating our sec-
comes to students with a wide spec- ondary students to be the “informed
trum of priorities, abilities and citizenry that a democracy depends
GE Attempts a Great Escape opportunities destroys the possibili-

ties education can provide.
on,” high-school grads wouldn’t be
looking to the government for their in-
O
WILLIAM CALHOUN
formation. They would also know that
ne day after a federal judge rescinded adding them to their regulatory domain. Chapel Hill, N.C.
college scorecards are nowhere in the
the government’s designation of GE now presents a perfect opportunity for purview of constitutional government.
MetLife as a “systemically important regulators to show they are in the business of What the authors would add to the KAY BUCCOLA
financial institution,” General reducing financial risk, not Scorecard—earnings by major, gradua- Kenmore, Wash.
Electric applied for its own Will banking regulators Beltway empire-building.
release from too-big-to-fail allow the company to Since its finance unit was
status. GE isn’t going to slapped with the systemic la-
court. It is politely asking fed- flee their jurisdiction? bel in 2013, the industrial con- A GOP Predicament—With Any Candidate
eral regulators to recognize glomerate has gone to great The Journal’s description of John leaves Republicans not with a predic-
how little it now resembles a lengths to restructure its Kasich’s electoral prospects is as iso- ament, but with an opportunity.
Wall Street giant. The feds would be wise to business the way that regulators seem to want. lated from reality as Pauline Kael’s DIANE MERTENS
agree. Its GE Capital unit has reduced its assets by puzzlement at Richard Nixon’s 1972 Woodinville, Wash.
The Financial Stability Oversight Council more than half since the end of 2012. Address- victory (“The Republican Predica-
lost the MetLife case in part because it could ing gripes from the feds, it has eliminated U.S. ment,” Review & Outlook, March 24). Donald Trump is the only candi-
not provide a clear, consistent explanation for consumer loans from its portfolio and radically The general election predictions rely date who fully grasps the degree of
how the insurer could threaten the entire fi- reduced its reliance on short-term funding. GE on the same turnout model that disgust and anger that has been
nancial system. The council, created by the Capital’s commercial paper outstanding has promised us President Mitt Romney. building in American society for de-
2010 Dodd-Frank law, has also consistently fallen nearly 90%. Also, GE Capital is in the pro- The GOP base gave the party two cades. Mr. Trump is right about many
landslide off-year victories on the things—nothing works any more.
failed to tell companies exactly how to avoid cess of selling its one remaining bank insured
premise of repealing ObamaCare, and The fact that so many people are
the systemic tag, and all the compliance costs by the Federal Deposit Insurance Corporation. John Kasich is no more credible than shocked at Mr. Trump’s success is a
that come with it. This has naturally fed suspi- The company is giving up its explicit taxpayer Mitt Romney on this key issue. Mr. perfect example of the disconnect be-
cion that the stability bureaucrats are less in- backing, and the feds should now remove the Kasich is the fourth-place finisher tween how people actually live and
terested in eliminating systemic risks than in implicit backstop. with 13% of the popular vote. Nullify- those who erroneously believe that
ing 80% of the votes for three more they represent or understand their
popular candidates seems destined to constituents’ interests.
Ted Cruz’s Distortions render the GOP defunct, along with
the Whigs.
Can Mr. Trump win the presi-
dency? You bet he can, because he
T
ed Cruz keeps saying he wants to unite The Cruz ad is also counterproductive if he JOEL WEST has defined and exploited a long-ex-
Oceanside, Calif. posed nerve that no one else has
the Republican Party’s factions to defeat wants to win the nomination at the GOP con-
even considered. I certainly won’t
Donald Trump. But you wouldn’t know vention—or the Presidency in November. The The results of the March WSJ/NBC vote for him, but to dismiss him as
it from his campaign in Wis- Real Clear Politics average poll mentioned in your editorial show an aberration is a huge mistake.
consin, where his Super Pac is His campaign targets shows Mr. Cruz running three Gov. Kasich to be the only candidate STEVEN MORRIS
aiming its fire at John Kasich. Kasich with a smear, points ahead of Mr. Trump with a net positive rating. This fact Mount Pleasant, S.C.
Exhibit A is the false ad and leading Mr. Kasich by 14
that the Super Pac Trusted gives Trump a pass. points in Wisconsin. Instead
Leadership is running nonstop
in Wisconsin that accuses Mr.
of whacking Mr. Kasich, the
Texan should target Mr.
President Obama Visits the Land of the Unfree
Kasich of being funded by liberal baron George Trump so the New Yorker finishes third. This I find Mary Anastasia O’Grady’s con- a ceremony in Cuba standing in front
Soros. “Millionaires working side by side with would deny Mr. Trump more delegates and cise explanation of how economics of a large image of Che Guevara, and
works in Cuba in “Behind the Presi- then a few pages later reading the “No-
George Soros are bankrolling [Kasich’s] super would hurt his narrative that his nomination is
dent’s Visit to Havana” (Americas, table & Quotable: Che Guevara, Killing
PAC,” the ad says as the text “Hundreds of thou- inevitable. March 21) to echo Oskar Schindler’s ac- Machine” in the editorial section. As
sands of dollars from George Soros” flashes on Mr. Cruz also needs Mr. Kasich to peel away countant Itzhak Stern’s explication of Alvaro Vargas Llosa, the author of the
the screen. delegates from Mr. Trump in the eastern prima- how economics worked in Nazi-occu- quote documents, Guevara was an evil,
This claim is as dishonest as Mr. Trump’s ries later this month where the Texan is often pied Poland during World War II. In cruel, psychopathic killer who, for rea-
charge that the Texas Senator is owned by Gold- third in the polls. Mr. Cruz finished a distant Steven Spielberg’s excellent movie sons no rational person can under-
man Sachs because his wife worked for the New fourth behind Marco Rubio and Mr. Kasich in “Schindler’s List,” Schindler’s company stand, was revered as a hero by many
York bank. Mr. Soros hasn’t donated a penny to Massachusetts and Vermont, and outside the Deutsche Emailwarenfabrik (DEF) liberal ideologues after his death.
the Kasich campaign. The alleged “millionaires” Maine caucuses he hasn’t won more than 12% could “hire” Polish labor at a higher Did President Obama even notice
bankrolling the governor are Stanley Drucken- of the vote anywhere in the Northeast. rate or Jewish labor at a lower rate. the picture behind him? Given his pro-
miller, who helped manage Mr. Soros’s Quantum Mr. Cruz wants to force Mr. Kasich out of the The wages for the Jews would be paid gressive worldview, I’d like to know
directly to the Allegemeine Schutz- what he thought. He asked George-
Fund between 1988 and 2000, and former Soros race so the Texan is the only alternative to Mr.
staffel (SS). The Jews would get noth- town University to cover a Christian
Fund Management chief investment officer Trump. That’s also why he attacked Marco Ru- ing. Schindler, of course, “hired” the symbol behind the podium for a 2009
Scott Bessent, who left the fund last year. bio in Florida, where Mr. Cruz had no chance Jews. They were cheaper. speech in Gaston Hall, officially so
According to the Federal Election Commis- of winning. But he shouldn’t overestimate his Those who do trade with the Cas- only U.S. flags would be visible; so he
sion, Mr. Druckenmiller has contributed appeal. Wisconsin Republicans may give him a tros’ Cuba are of the same mind-set. understands backgrounds. Does he
$450,000 to the Kasich Super Pac New Day for victory to stop Mr. Trump, but millions are do- Many Jews’ lives were spared due to know the truth about Guevara? Does
America. Mr. Bessent has chipped in $200,000. ing it while holding their nose. The best argu- Schindler’s “benevolent” stewardship. he even care?
The implication of the ad is that both business- ment Mr. Trump still has, amid his many mis- Many more would have been helped if RYAN SEARLE
men are liberal by their Soros association, as takes, is that Mr. Cruz is emerging as his main the U.S. Army had purchased kitchen- Bonita Springs, Fla.
if all Americans should be accountable for their opponent. ware from DEF, thereby enabling an
even larger workforce to be saved.
employer’s politics. Mr. Cruz isn’t likely to get enough delegates Letters intended for publication should
GEOFFREY LAMPSHIRE be addressed to: The Editor, 1211 Avenue
Messrs. Druckenmiller and Bessent have do- to win the nomination on the first ballot at the Riva, Md. of the Americas, New York, NY 10036,
nated mainly to GOP candidates, reflecting their Cleveland convention, so he will need the help or emailed to wsj.ltrs@wsj.com. Please
belief in free-market policies. Mr. Druckenmiller of many of the Republicans his campaign has I suspect it was a coincidence, but I include your city and state. All letters
donated $103,375 to the Jeb Bush Super Pac done so much to alienate the last two years. His was really struck by the March 22 are subject to editing, and unpublished
Right to Rise USA and $123,000 to the National smear of John Kasich underscores the doubts World News photo of President Obama, letters can be neither acknowledged nor
returned.
Republican Congressional Committee last year. that he’s too divisive to win in November. with his hand over his heart, attending
OPINION
Lee Hsien Loong’s American Exceptionalism

By William McGurn ponents in the U.S. are hollering that on islands in the South China Sea
B
these deals are always stacked whose sovereignty is contested.
y any global measure, a against Uncle Sam, China’s leaders Though the islands are themselves
prime minister of Singapore fear the opposite is true with TPP. insignificant, major sea and air lines
presides over a minuscule They believe, Mr. Lee says, “that you of communication pass through this
patch of earth and speaks are trying to create rules which will area. Unfortunately, notes Mr. Lee,
for a tiny fraction of the favor you.” Washington does not always speak
world’s population. Yet notwith- Every one of America’s important with “one coherent voice”—such as
standing the city-state’s small size— trading partners in Asia, he points when the National Security Council
or maybe because of it—its prime out, now has China as its “biggest or the Defense Department give dif-
ministers often have a keener grasp trading partner.” These nations know ferent explanations when the U.S.
of American interests than Ameri- they will have a freer and more open sends a ship through the area in a
cans do. trading system if America, not freedom of navigation operation.
So it’s no surprise that Lee Hsien China, is writing the rules. They also Not to mention terrorism.
Loong, Singapore’s current prime know that, for all Donald Trump’s Squeezed in as it is between Malaysia
minister, would come right to the complaints that China is “beating and Indonesia—two Muslim-majority
point in a meeting with The Wall us” on trade, the view from Beijing is nations—Singapore probably feels a
Street Journal editorial board. hardly triumphant: Its leaders see a particular vulnerability to the ad-
BLOOMBERG
Chinese economy that is slowing vance of radical Islam. It’s getting
down and in need of major struc- worse, too, says the prime minister,
Singapore’s prime minister tural reform. because Islamic State, or ISIS, has
says the U.S. might be Nor is China the only one facing Singapore’s Prime Minister Lee Hsien Loong in 2015. proved far better at recruiting from
challenges. Though most know of his part of the world than al Qaeda
roiled by politics, but its Singapore’s storybook rise from are buffeted and to take advantage face a 40% tariff, Mr. Lee says Mr. Xi ever was.
leadership on trade and Third to First World status, Mr. Lee of the opportunities which are out would not go along. Instead, he In Singapore, he says, several
points out that the obvious gains there, rather than say ‘I don’t want would conclude that he couldn’t people have gone to the Middle
security is indispensable. have all been made. Given its limits the competition, I don’t want cars work with America. East, most of them “self-radical-
on manpower and resources, Singa- which are made overseas,’ and ‘I And if in the end the TPP were to ized” via the Internet. More than
pore’s only avenue for growth is by want to pull back and forget about die as a result of domestic American 100 from Malaysia and about 500
When asked for his take on the constantly boosting know-how and the rest of the world.’ ” politics? The likely fallback, says Mr. from Indonesia have made their way
Obama administration’s unratified productivity. As for the calls to renegotiate the Lee, is something called the Regional to the Middle East. In fact, such has
Trans-Pacific Partnership (TPP) “I don’t have farmers I can con- TPP from both Donald Trump and Comprehensive Economic Partner- been the recruitment success, says
trade deal, which neither the leading vert into factory workers,” he says. Hillary Clinton, he regards them as a ship that includes China but excludes Mr. Lee, that ISIS now has a battal-
Democratic nor Republican candi- In short, American “angst and dis- nonstarter. The only effect, he says, the U.S. To put it another way, an ion of Southeast Asian fighters
date for president supports, he an- quiet” over trade is by no means would be to undermine American American failure to ratify TPP would called the Katibah Nusantara, or
swered this way: unique these days, though Mr. Lee credibility. He cites Japanese Prime bring about the very thing critics of Malay Archipelago Combat Unit.
“You have an administration believes that in the U.S. the worries Minister Shinzo Abe, who has gone the trade deal complain about: a The worry is that ISIS might use
which understands America’s inter- have been exacerbated by the legacy out on a limb—further than other more empowered China and bad these fighters to set up a base in
national responsibilities and inter- of Occupy Wall Street. The “psycho- Japanese prime ministers dared—by terms for U.S. goods and services. some remote and ungoverned part
ests, but you have a population logical impact” of those protests, he agreeing to open domestic markets. What makes it all so twisted, of Southeast Asia.
which is anxious, tired, and doesn’t says, was to teach “a significant “If at the end of it all you let him says Mr. Lee, is that no one in Asia In the end, says Mr. Lee, the
want to bear any burden and pay any chunk” of the American population down,” says Mr. Lee, “which next is rooting for an American retreat. world simply has found no substitute
price. And that’s very difficult for to regard the economic status quo as Japanese prime minister is going to To the contrary, Asian leaders are for American leadership. So in the
whoever becomes president.” illegitimate. count on you—not just on trade but eager to make America great again, midst of a U.S. presidential campaign
The TPP is a trade deal with 11 His take is different. The pain on security? If you are not prepared however much they might disagree defined by anger and anxiety, he
other Pacific nations that would cut caused by trade and globalization is to deal when it comes to cars and with Mr. Trump about what this finds himself rooting for a recovery
tariffs on American goods and ser- very real. The failure is not to put it services and agriculture, can we de- means. If you held a “secret poll,” of America’s self-confidence and its
vices, improve intellectual property in perspective. pend on you when it comes to secu- Mr. Lee says, every nation would sense of American exceptionalism.
rights, and help write the trade and “There are downsides, there are rity and military arrangements?” vote for broader American engage- “Your role,” says Mr. Lee, “re-
investment rules for an area that is adjustment problems, you have Mr. Lee is equally skeptical about ment no matter what they might mains indispensable, whether you
home to about 40% of global eco- Michigan and Detroit and difficult Mr. Trump’s vow to make China cry say in public. are prepared to step up to it or
nomic output. places like that,” he says. “But over- “uncle.” It’s too big. Asked how Broader U.S. engagement would whether you decide to chuck it.”
The agreement notably does not all America has benefited and you Chinese President Xi Jinping would also leave America better placed to
include China. There’s an irony here, are wealthy enough and resilient respond to a Trumpian ultimatum to handle, say, the tensions raised by Mr. McGurn writes the Journal’s
because at a moment when trade op- enough to be able to help those who do what he demanded on trade or China’s habit of setting up outposts Main Street column.
Focusing on Bank Size, Missing the Real Problem

By Randal K. Quarles Substantial wholesale funding is growth and incomes. And for these cost of bank credit, meaning higher Second, adopt a monetary policy
And Lawrence Goodman necessary to sustain the current measures to be effective, the entire interest rates across the board. rule, such as the Taylor rule, that
T
level of financial-sector credit that lending market would need to be Those who favor much higher bank would normalize interest rates and
he new president of the Minne- supports the economy. And now this housed back inside the insured capital argue this would not happen, reduce the incentive for big banks
apolis Federal Reserve Bank, traditional source of systemic risk banking system. Given how unpopu- because investors would accept and even smaller institutions to
Neel Kashkari, recently made a has been joined by a new one: the lar this would be, populists from lower returns if the banks they put take dangerous risks.
stir by announcing that even after Federal Reserve’s unconventional both sides of the political aisle pre- their money in were safer. Lastly, fully measure and evaluate
Dodd-Frank and the other regulatory monetary policy. Years of near-zero fer to focus on intermediaries, with In the real world of capital mar- the impact of Dodd-Frank on the
responses to the financial crisis of interest rates have led to a rise in ideas such as breaking up the banks. kets, however, there are not enough financial system before arbitrarily
2008, the largest banks are still “too speculative positions across a wide This is treating the symptom rather natural investors in bank equity taking an ax to big banks and irrepa-
big to fail.” In his view, along with range of asset classes, as all finan- than the disease. seeking utility-like returns. Institu- rably damaging the economy.
that of Bernie Sanders, Elizabeth cial institutions find themselves Mr. Kashkari’s alternative pro- tions capitalized largely with debt
Warren, Sherrod Brown and other under intense pressure to seek ade- posal, promoted by academics in- would encounter similar con- Mr. Quarles is the managing part-
true believers, breaking up these quate returns. cluding most vocally Stanford econ- straints. ner of the Cynosure Group, a pri-
institutions or turning them into reg- These institutions, small and omist Anat Admati, is to ramp up Given these structural facts, the vate-equity firm, and a former un-
ulated utilities is the only way the large, tend to make the same risky bank capital to such a degree that job of the regulatory system is dersecretary of the U.S. Treasury.
country can be confident that the bets, what the market calls the possibility of failure would be clear. First, facilitate the realloca- Mr. Goodman is president of the
2008 bailouts won’t be repeated. “crowded trades.” For instance, remote to nonexistent. But the con- tion of capital during the inevitable Center for Financial Stability and a
energy markets and investments sequence of a dramatic increase in periodic crises through orderly liq- former director of quantitative pol-
became an increasingly central and bank capital is an increase in the uidation of failing or failed banks. icy analysis for the U.S. Treasury.
Populist ‘too big to fail’ concentrated part of many financial
institutions’ portfolios, not just
attacks don’t address the
real financial risk: not
those of the large banks. With the
swift decline in oil prices, they have
suffered losses.
The One Kind of Diversity Colleges Avoid
enough stable deposits. When losses grow large enough in By John Hasnas I doubt that my experience is backgrounds can achieve intellectual
M
an environment of crowded trades— unusual. According to data compiled excellence and are worthy of respect.
such as in housing in the last de- any universities are redou- by the Higher Education Research In- These are good arguments. But
Mr. Kashkari is a serious policy cade—large banks can fail, with bling their efforts to diver- stitute, only 12% of university faculty surely the robust exchange of ideas
maker, but these proposals are seri- devastating consequences. The fail- sify their faculties in re- identify as politically right of center, is enhanced by exposure to and
ously misguided. Focusing on bank ure of small institutions can lead to sponse to last fall’s wave of protests and these are mainly professors in interaction with people who have
size is politically appealing but the same results. The collapse of from student groups representing schools of engineering and other diverse political and philosophical
diverts attention from the major smaller unit trusts in the 1929 mar- women and minorities. Yale, for professional schools. Only 5% of pro- viewpoints, not only cultural or
source of systemic risk in the finan- ket crash ultimately escalated to example, has announced a $50 mil- fessors in the humanities and social- ethnic backgrounds. Actually engag-
cial sector: a shortage of stable threaten the nation’s largest finan- lion, five-year initiative to enhance science departments so identify. ing with those with whom one dis-
deposits. Banks are but one part of cial institutions. faculty diversity. Brown has commit- agrees can break down stereotypes
an interconnected financial sector Whether there are 10 big banks in ted $100 million to hire 60 addi- and promote understanding across
providing over $40 trillion of credit the country or 10,000 small ones, tional faculty members from histori- I’ve seen faculty searches ideological divides. And if students
to the economy, but that credit is there will still be insufficient stable cally underrepresented groups over see faculty members who share
supported by only about $11 trillion financing from deposits, and a the next five to seven years. Amer- up close. Somehow teachers their unpopular viewpoints, they
of bank deposits. resulting reliance on wholesale ica’s institutions of higher education with conservative views may be more inspired to pursue
The gap must be closed largely funds. And an artificially imposed seem committed to faculty diversity. intellectual excellence.
with professionally managed, “whole- cap on the size of bank intermediar- But are they really? just don’t make the cut. The relentless call to actively
sale” funding, such as short-term ies will do nothing to stop crowded In the more than 20 years that I recruit women and minority candi-
repurchase agreements. Wholesale trades, at least as long as interest have been a professor at Georgetown dates arises from the fear that if left
funders are quick to pull their sup- rates are held artificially low. University, I have been involved in A comprehensive study by James to their own devices, predominantly
port by not rolling over short-term If Mr. Kashkari wants to rid the many faculty searches. Every one Lindgren of Northwestern Univer- white male faculties will identify
credit if they perceive those funds financial system of liquidity risk and begins with a strong exhortation sity Law School shows that in a merit with those who look and think
are at risk. This leads to periodic a taxpayer backstop, he should be from the administration to recruit country fairly evenly divided be- like them, undervalue the contribu-
runs on financial institutions and clear about what it would require. more women and minority profes- tween Democrats and Republicans, tions of those from different back-
the resulting demand for govern- Reducing financial-sector assets to sors. We are explicitly reminded that only 13% of law professors identify grounds, and perpetuate a white
ment intervention to prevent the bring them in line with available every search is a diversity search. as Republican. And a recent study male stranglehold on the academy.
failure of those institutions. deposits means lower economic Administrators require submission of by Jonathan Haidt of New York Uni- Yet without an exhortation to
a plan to vigorously recruit applica- versity showed that 96% of social pursue viewpoint diversity, this is
tions from women and minority can- psychologists identify as left of cen- exactly what happens.
didates. ter, 3.7% as centrist/moderate and Predominantly liberal faculties
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Before we even begin our selection only 0.03% as right of center. identify merit with positions that
process, we must receive approval The advocates of diversity in are consistent with theirs, see little
Rupert Murdoch Robert Thomson
Executive Chairman, News Corp Chief Executive Officer, News Corp from the provost that our outreach higher education claim that learning value in conservative and libertarian
Gerard Baker William Lewis efforts have been vigorous enough. requires the robust exchange of scholarship, and perpetuate the left-
Editor in Chief Chief Executive Officer and Publisher The deans and deputy deans of each ideas, which is enhanced when wing stranglehold on the academy.
Rebecca Blumenstein, Matthew J. Murray DOW JONES MANAGEMENT:
school reinforce the message that no students and faculty have the great- Having a diverse faculty is a gen-
Deputy Editors in Chief Ashley Huston, Chief Communications Officer; expense should be spared to increase est possible variety of backgrounds. uine value for a university and its
DEPUTY MANAGING EDITORS: Paul Meller, Chief Technology Officer; the genetic diversity of our faculty. They argue that exposure to people students. Indeed, it may be valuable
Mark Musgrave, Chief People Officer;
Michael W. Miller, Senior Deputy;
Edward Roussel, Chief Innovation Officer;
Yet, in my experience, no search from different backgrounds breaks enough to justify spending $50 mil-
Thorold Barker, Europe; Paul Beckett, Asia;
Christine Glancey, Operations; Jennifer J. Hicks, Anna Sedgley, Chief Financial Officer; committee has ever been instructed down unfair stereotypes and pro- lion or $100 million to increase the
Digital; Neal Lipschutz, Standards; Alex Martin, Katie Vanneck-Smith, Chief Customer Officer to increase political or ideological di- motes understanding of those who percentage of women and minority
News; Ann Podd, Initiatives; Andrew Regal, Video;
OPERATING EXECUTIVES: versity. On the contrary, I have been come from different circumstances professors. But if diversity is really
Matthew Rose, Enterprise; Stephen Wisnefski,
Professional News; Jessica Yu, Visuals
Nancy McNeill, Corporate Sales; involved in searches in which the than oneself. such an important academic value,
Steve Grycuk, Customer Service; chairman of the selection committee It is also claimed that being in a then why are universities making
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International;
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: stated that no libertarian candidates diverse academic environment better no effort to increase the political
WALL STREET JOURNAL MANAGEMENT: Almar Latour, Publisher; Kenneth Breen, would be considered. Or the descrip- prepares students for an increasingly and ideological diversity of their
Trevor Fellows, Head of Global Sales; Commercial; Edwin A. Finn, Jr., Barron’s; tion of the position was changed diverse workforce, and that this faculties?
Chris Collins, Advertising; Jason P. Conti, Legal; Professional Information Business:
Suzi Watford, Marketing and Circulation; Christopher Lloyd, Head; when the best résumés appeared to preparation can only be developed
Joseph B. Vincent, Operations; Ingrid Verschuren, Deputy Head be coming from applicants with through exposure to people of Mr. Hasnas is a professor at
Larry L. Hoffman, Production right-of-center viewpoints. Or in diverse cultures, ideas and view- Georgetown University’s McDonough
EDITORIAL AND CORPORATE HEADQUARTERS: which candidates were dismissed points. And a diverse faculty pro- School of Business and executive
1211 Avenue of the Americas, New York, N.Y., 10036 because of their association with con- vides students with role models who director of the Georgetown Institute
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CITY NEWS A14, A15 | FEEDBACK & NEWS QUIZ A16 | HEARD & SCENE A17
World Theories
Our 2016 Mets season preview SPORTS | A18
WSJ.com/NY * * * * ** THE WALL STREET JOURNAL. Friday, April 1, 2016 | A13
N.Y. Reaches Budget Deal

Agreement includes tions, includes 12 weeks of passed a plan earlier Thursday the governor, who had pushed
paid family leave for people for the Golden State to reach for a more aggressive plan.
income-tax cuts as well employed for at least six that rate statewide in 2022. The plan still needs legisla-
as gradual increases months, as well as personal in- While the New York City tive approval, and lawmakers
come-tax cuts for households area will see raises first, other late Thursday said they were
in the minimum wage earning less than $300,000. parts of New York will reach a still reviewing the details.
The agreement lowers the $12.50 wage by 2020 and then Mr. Cuomo, a Democrat, an-
BY ERICA ORDEN personal income-tax rate over increase based on a formula, nounced the agreement at an
AND MIKE VILENSKY time, from 6.45% to 5.5% for set by the budget director and 8:30 p.m. news conference
some middle-income families state department of labor, un- alongside his aides. In a de-
ALBANY—New York Gov. by 2025. til it hits $15. parture from previous years,
Andrew Cuomo announced an The governor’s office said it New York’s current mini- legislative leaders didn’t at-
MIKE GROLL/ASSOCIATED PRESS

agreement Thursday with leg- would impact 6 million filers mum wage is $9 an hour. tend the news conference but
islative leaders to raise the total and is valued at $4.2 bil- “The concept was that we praised the plan in a news re-
hourly minimum wage to $15 lion. value work and if you work lease distributed by the gover-
in New York City and its sub- If passed by the Legislature, full-time then you should have nor’s office.
urbs by 2021 as part of the the minimum-wage plan would a decent living,” Mr. Cuomo In a statement, Republican
state’s $147.2 billion spending make New York one of the said. Senate Majority Leader John
plan. first two states in the U.S. to The agreement comes after Flanagan didn’t mention the
The deal, which came to- adopt a mechanism for reach- a pitched battle at the state minimum-wage plan, instead
gether at the end of a frantic ing a statewide $15 wage floor. Capitol over the issue and rep- praising the budget for its tax Assembly Speaker Carl Heastie, right, and aide Blake Washington
day of closed-door negotia- The California Legislature resents a partial victory for Please see BUDGET page A14 on their way to a meeting at the state Capitol on Thursday.
Manhattan Gets
Pricier as Wealth
Grows at Home
BY JOSH BARBANEL
Big Earners
A lot more has driven the New York City residents
soaring price of luxury Man- earning $1 million or more
hattan real-estate than wealthy
investors from abroad looking $10 million or more
for a place to park their $5.0-$9.9 million
money. The growing wealth of $2.0-$4.9 million
New York City’s homegrown $1.0-$1.9 million
JENNIFER MAY FOR THE WALL STREET JOURNAL (2)
millionaires played a large 22,500

role, too.
New data on income of New 20,000
York City residents show that
the numbers and incomes of 17,500
the wealthiest—those New
15,000
Yorkers earning $1 million or
more a year—rose signifi- 12,500
cantly in 2012 and far faster
than the incomes of other city 10,000
residents.
City officials say the num- 7,500
ber of these wealthy New 5,000
Joshua Applestone, right, plays a video game next to his vending machines, Meat-O-Mats. Samples of Mr. Applestone’s pork roll, below. Yorkers has probably risen fur-
ther after dipping slightly in 2,500
The Meat-O-Mat’s Artisanal Chops

2013 due to a change in federal
tax law. One indicator: Overall 0
city income-tax collections 2009 ’10 ’11 ’12 ’13
have increased significantly Source: New York City
BY PERVAIZ SHALLWANI he also sees it as a way of and considering offbeat distri- 4:30 a.m. wake-ups, long com- since, including a 11.1% rise in Independent Budget Office
adding a dash of convenience bution methods like the Meat- mutes and managing more the city’s fiscal year ended in THE WALL STREET JOURNAL.
ACCORD, N.Y.—Attached to and accessibility to the artisa- O-Mat. than 40 workers, Mr. and Ms. June 2015.
a laboratory-like plant in this nal-meat experience. “We’re going for a highway- Applestone walked away, sur- This in turn has boosted the the end of the last recession.
upstate community is a neon- “If people want food, roadside-attraction type of prising many in New York’s local economy, fueling the Total income for this group
lit vending machine dubbed and they don’t want to approach,” said Sa- food world. They sold off their sales of luxury products and rose 48.6% to $96 billion over
the Meat-O-Mat, where cus- be paying so much mantha Gloffke, the share of the shops in Brooklyn services, and pushing median the previous five years. Total
tomers can buy locally raised money at a company’s general and Kingston, N.Y., to two peo- condominium prices to a series income for taxpayers earning
meat whenever they like. butcher shop, I manager and a ple who had previously been of records. Lately, however, the less than $100,000 rose 6.1%,
If Joshua Applestone has totally get it,” he part owner. “The their butchery students. growth in incomes, especially according to tax return data.
his way, carnivores will flock said while assem- goal is to make But for Mr. Applestone, those tied to Wall Street, has About 45% of these million-
to it the way that banking cus- bling pork-roll sustainability re- whose grandfather and great- slowed, and along with it the aire earners made $2 million
tomers visit the ATM. sliders topped ally exciting.” grandfather were also butch- pace of apartment sales. or more.
His invention is stocked with American It is a departure ers, leaving the career behind “The importance of foreign Among this elite group of
with pork chops, dry-aged cheese and mayon- from Fleishers Craft wasn’t an option. “I’m a buyers has been wildly over- earners are 1,315 New Yorkers
burger patties, bratwurst naise, smashed between Butchery, the New York- butcher. This is what I do,” he hyped,” said Jonathan Miller, with reported incomes of $10
meatballs and his beloved slices of Martin’s potato rolls. based chain of butcher shops said. an appraiser and president of million or more—the top 2.4%
pork roll, a deli meat native to “There has to be some type of that Mr. Applestone founded Those who have worked Miller Samuel Inc., who has of the top 1% of New Yorkers
New Jersey. Customers swipe compromise.” with his wife, Jessica Apple- alongside Mr. Applestone saw tracked the Manhattan real-es- by income. The number of $10
their credit cards, push a but- Mr. Applestone and his part- stone, in 2004. a butcher who sought ways to tate market for three decades. million earners was up more
ton, slide the door open and ners at Applestone Meat Co., Fleishers is credited with bring meat to a wider audi- “The underlining driver of re- than 60% from the 817 taxpay-
retrieve their hormone- and the attached plant, are attempt- stoking interest in sustainably ence, talking about better sales and new development ers recorded in 2009. In 2013,
antibiotic-free selection. ing to develop a new, meat-cen- raised meats and whole animal choices for everyday foods like has been domestic purchases, they reported an average ad-
The Meat-O-Mat was in- tric business model. For the butchery, and inspired “Cleav- hot dogs and cold cuts. and largely from New York.” justed gross income of $35.3
spired by the Automats that past two years, they have been ing,” the salacious second “Sometimes it takes for you In 2013, 21,764 New York million.
Mr. Applestone, 46 years old, exploring ways of making high- book from “Julie and Julia” to be working inside your City taxpayers reported earn- The figures for city tax re-
fell in love with during visits quality cuts available at lower author Julie Powell. business to see what the big- ings of $1 million or more, up turns filed in 2012 and 2013,
to Manhattan in the 1970s. But prices by slashing labor costs In 2013, burned out from Please turn to page A14 47% from the 14,795 in 2009 at Please see WEALTH page A14
70°
TODAY’S
Weather
Real Feel
Suspensions Drop in NYC Schools An Ultimatum Over Atlantic City
9 a.m. 53° BY LESLIE BRODY nationwide that excessive sus- ited, because it didn’t include
HIGH
5 p.m. 66° pensions for minor offenses the racial backgrounds of stu-
Student suspensions in New deprived too many students of dents, which officials said will
Record High
York City public schools fell by instruction, and disproportion- be released later. The decline
83° (1917)
nearly a third in the last six ately hurt poor minorities and was “certainly an indication
P.M. STORM Sunrise/Sunset months of 2015, compared special education students. we’re moving in the right di-
6:38 a.m./7:22 p.m. with the same period the year Some said undue suspensions rection,” she said.
before. exacerbated the dropout prob- Some experts expressed
Saturday’s High City officials credit the 32% lem and the so-called school- caution, saying it takes time
drop to efforts by Mayor Bill to-prison pipeline. to improve school cultures
55° de Blasio’s administration to The city’s data said there and that such a steep drop in
avoid overly punitive disci- were about 12,700 suspensions suspensions didn’t necessarily
pline and keep more students from July through December. suggest better student con-
N.Y. Sports Lineup in class. The biggest contributor to duct.
JOHN MOORE/GETTY IMAGES
Initiatives include training the drop was an 81% decrease “When the chancellor or
7:30 p.m. Friday school staff in how to defuse in suspensions for insubordi- superintendent says we want
Nets @ Knicks conflicts, adding mental-health nation, a category that critics the number of suspensions to
counseling to resolve underly- saw as being particularly sub- go down, they can go down
ing problems and using “reject to inconsistent applica- immediately, but that doesn’t
storative justice” practices in tion, with some students sent mean the negative behaviors
1 p.m. Saturday which students try to reflect home for being sassy or refus- go down,” said Kenneth
Penguins on the harm they caused and ing to close a book. Trump, president of National THE BOARDWALK: Gov. Chris Christie vowed Thursday to campaign
@ Islanders repair it. Donna Lieberman, executive School Safety and Security against a referendum to allow casinos in northern New Jersey if
The changes followed years director of the New York Civil Services, a consultant for dis- the Legislature doesn’t OK a state takeover of Atlantic City. A15
of complaints by civil-rights Liberties Union, said the new tricts.
For N.Y. sports coverage, see A18 groups in New York City and data was encouraging but lim- Please see SCHOOL page A14
CITY NEWS
New Testing
Shows Worse
Lead Problem
BY KATE KING
A new round of testing

found elevated lead levels in
the drinking water of eight ad-
ditional Newark school build-
ings that weren’t previously
tested for contamination, the
school district said Thursday.
About 5% of the 324 sam-
ples tested at the buildings,
which included charter
schools, a transportation hub,
JENNIFER MAY FOR THE WALL STREET JOURNAL (2)
student center and athletic fa-

cilities, contained lead levels
above the recommended
threshold of 15 parts per bil-
lion, a schools spokeswoman
said.
Three of the eight buildings
are currently used as schools,
the spokeswoman said.
Many of the water samples
that tested positive for high
lead levels were taken from
bathroom faucets or other lo-
cations not normally used for
Meet the Meat-O-Mat, Offering Fresh Cuts

drinking, according to results
posted on the district’s web-
site.
Some water fountains
Continued from page A13 Germantown, N.Y., farm, was fresh. He now owns five tested positive for elevated
ger picture is,” said David one of Mr. Applestone’s first Meat-O-Mats, with two in op- lead levels, the results show.
McMillan, owner of the Mon- clients. Thanks to him, she eration, and he has 10 more In one building, samples from
treal restaurant Joe Beef. can sell pork and lamb chops, on the way. 10 water fountains and coolers
“High-end meats can get very bacon and a variety of sau- Mr. Applestone envisions contained lead in levels ex-
elitist.” sages through a meat share. them stationed at supermar- ceeding the recommended
Seeking a smaller-scale op- “They spent a lot of time kets, football stadiums and limit.
eration, in December 2013 Mr. with me,” she said. “There picnic sites, places where you The state Department of
Applestone leased a former aren’t that many options. And might welcome the conve- Environmental Protection
furniture shop about 5 miles there aren’t that many butch- nience of buying something to oversaw the most recent
from his Stone Ridge, N.Y., ers who will do custom toss on the grill. round of testing, which began
home. He turned it into Ap- work.” “Think about it at any mu- March 19 after tests per-
plestone Meat Co., a USDA-li- The Meat-O-Mat came into sic festival,” he said. “Any- formed by a private contractor
censed plant where he and play as Applestone Meat Co.’s where someone brings a between December and Febru-
two employees could process walk-in traffic began to in- cooler, you no longer have to ary found high lead levels in
raw meat as well as hot dogs, crease. Mr. Applestone real- bring fresh meat. How much the drinking water of about
“because I love hot dogs,” he ized he needed to beef up his is peace of mind worth?” half the city’s schools.
said, “and I can’t stop.” retail presence and began “We are committed to com-
A year later, Mr. Apple- speaking to people in coun- prehensive testing of all sites
stone began taking online de- A slicer at Applestone Meat Co., top, and Joshua Applestone, above. tries where it is common to We Want to Hear and full remediation of these
livery orders within a 90-mile see food being sold out of From You issues,” state-appointed Su-
radius, while catering to render slabs of meat into that label, so in order to get vending machines. They told Have something to say about perintendent Christopher Cerf
walk-in customers and offer- sandwich filler at 600 slices a that label, you have to spend him that “Americans love an article in Greater New said on Thursday in an
ing a service to hunters in minute—a task that would that much more money, do bashing things,” he said, York? Email us, along with emailed statement, which out-
which he would process meat take a high-end butcher that many more things, so warning him that he would your contact information, at lined the district’s new poli-
from their kill. So far he has hours. you don’t kill them.” spend much of his time on re- gnyltrs@wsj.com. Your letter cies for testing its drinking
only had one taker. He has also set up an ultra- Along with his own line of pairs. could be published in our water.
He has since added two ad- violet-sterilization room, a meats, he is soliciting area A year ago, he found a ma- weekly Feedback column on State environmental offi-
joining storefronts, tripling requirement for selling un- farmers who need processing chine that would work and Friday. Letters will be edited cials and the Newark’s mayor’s
his space, and has invested in cured, nitrate-free meat. help. has spent the past year tin- for brevity and clarity. Please office didn’t return requests
such industrial equipment as “It’s marketing,” Mr. Ap- Leanna Mulvihill, who kering, aiming to make it easy include your city and state. for comment Thursday eve-
a $90,000 auto-slicer that can plestone said. “People want raises sheep and pigs on her to use while keeping the meat ning.
BUDGET New York City, led by Mr.

Cuomo’s political foe Mayor
Bill de Blasio, also dodged
some bullets. The governor
WEALTH both new and resale condo-
miniums, according to market
reports released Thursday.
Brown Harris Stevens and Hal-
city taxpayers understated the
economic strength of the city
because many wealthy subur-
banites in the tri-state region
Continued from page A13 backed off a plan to shift costs Continued from page A13 stead Property said the median also make their living in the
cuts. of the City University of New the most recent years avail- price of a Manhattan apart- city, but don’t pay city income
The agreement also enacts York and Medicaid spending to able, were published this week ment in the first quarter of taxes.
a 12-week paid-family-leave the city, after an outcry from by the city’s Independent Bud- 2016 was $1.175 million, and He said the large class of
plan for individuals caring for city officials and advocates get Office, based on a sample the average price was $2.08 millionaire earners in the city
a baby, a family member with over the issue. of tax-return data provided by million. and the state makes govern-
a serious health condition or Mr. Cuomo kept an intense the New York State Depart- But for the even more ex- ments overly dependent on in-
“to relieve family pressures” focus this budget season on ment of Taxation and Finance. pensive apartments, there are comes of the wealthy that are
when a family member is his proposed statewide $15 The growth in local wealth signs of weakness. highly variable from year to
called to active military ser- minimum wage, a topic that in recent years corresponded Donna Olshan, a broker who year, due to fluctuating income
vice. The plan, which grants dominated talks between the with leaps in Manhattan con- tracks the luxury market, said from realized capital gains on
the longest leave in the U.S., governor and legislative lead- dominium prices, including a the number of new contracts the sales of stocks and other
MIKE GROLL/ASSOCIATED PRESS
would be available to employers in the final days before 47% increase from the first signed for properties listed for assets.
they struck an agreement. The quarter of 2012 to the first $4 million or more fell during The number of millionaire
governor had originally pro- quarter of 2016, according to the first quarter of 2015 to the earners was slightly higher in
‘It’s basic and posed phasing in the increase data from Miller Samuel Inc. lowest level since 2012. 2012 than 2013, Mr. McMahon
simple: We don’t live in New York City beginning in and Douglas Elliman, based on The tax data show that New noted, because taxpayers sold
2019, and in the rest of the a market report released York City is home to just over assets in 2012, to recognize cap-
at work, we live at state by 2021. Thursday. half, or 52.9%, of millionaire ital gains before higher federal
home with families.’ The final agreement in- Some clouds are, however, earners in New York state. The capital-gains tax rates for higher
cludes both the state formula New York Gov. Andrew Cuomo on the horizon. Weakness on state ranks second among the earners took effect in 2013.
to increase the wage upstate Wall Street cut bonuses in states with 12% of the nation’s The city data showed that
ees who have worked for their and a “safety valve” that al- On Thursday night, asked to 2015 to the lowest level in millionaire earners, according 1.43 million tax filers, those
employer for at least six lows the governor to pull the compare the deal struck with three years, according to a re- to Internal Revenue Service with incomes under $20,000,
months. plug on the phase-in if the his original plan, Mr. Cuomo port by the New York State data. California has 15.6% of on average owed no income
“It’s basic and simple: We economy doesn’t support it. said he counted the final ver- Comptroller. And city budget million-dollar earners, though taxes. This group included
don’t live at work, we live at Liberal advocates praised sion as superior. forecasts are predicting a its population is much larger. 54,398 taxpayers who filed re-
home with families,” Mr. the plan Thursday night but “I think this is a proposal slowdown in the strong job E.J. McMahon, president of turns with overall losses but
Cuomo said, “and we should said they would push for a that can pass,” he said, growth of recent years. the Empire Center for Public listed a total of $1.4 billion in
have the capacity to be there higher wage sooner in upstate “which, by definition, makes it So far median sale prices Policy, a fiscally conservative earnings from interest, divi-
when the family needs you.” New York. a better proposal.” are still at or near highs for think tank, said the figures on dends and capital gains.
SCHOOL strict approach to discipline to

maintain order, though tried
some other avenues as well,
such as peer mediation.
group, Families for Excellent
Schools, released a report in
February challenging the
mayor’s assertion that crime in
Continued from page A13 The administration of Mr. city schools dropped 29% since
He said that due to the pen- de Blasio, who campaigned on the 2011-12 school year.
dulum swings of politics, dis- themes of social justice, re- The group said its analysis
tricts often go from zero-toler- vised the school discipline of state Violent and Disruptive
ance policies to the other code in February 2014 and re- Incident Reporting data
extreme, rather than finding a quired principals to get ap- showed that in the 11 catego-
balanced middle ground. proval from the central office ries used to determine
Mayor Michael Bloomberg’s before suspending a student whether schools are persis-
administration pursued a for insubordination. tently dangerous, the number
At the time, the department of incidents citywide rose dur-
said it sought to eliminate dis- ing that period. That state
CORRECTIONS parities that hurt African-
American and special-educa-
data included a much broader
definition of infractions than
AMPLIFICATIONS tion students, who were four
times more likely to be sus-
the mayor’s.
Schools Chancellor Carmen
pended than their peers. Fariña said she was encour-
The first name and com- The city said that as of aged by the drop in suspen-
pany affiliation of Joel Lan- March 15—or after 113 days of sions “but we have a lot more
dau, an executive with the Al- school in this academic year— work to do to expand best
lure Group, was omitted in an there were 23,028 suspen- practices and further support
article Thursday about the lift- sions, down 23% from the all students and staff” in safe
ing of deed restrictions on a same time the previous year. environments.
Manhattan building. Suspensions fell in the last Department of Education
school year as well. officials said $47 million in
Readers can alert The Wall Street The new data follows a re- the city’s preliminary budget
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or cent dispute over the city’s for 2016-17 would expand staff
by calling 888-410-2667. claims that schools have got- training, conflict-resolution
ten safer under Mr. de Blasio’s programs and mental-health
DBOX
QUIZ ANSWERS: 1. A; 2. C; 3. watch. services, especially at high-

B; 4. D; 5. D A pro-charter advocacy need schools. A rendering of the bathroom of Penthouse 88, at 432 Park Ave. The unit is listed at $76.5 million.
THE WALL STREET JOURNAL. * * * * Friday, April 1, 2016 | A15
CITY NEWS
Officials Zero In
On Subway Stop
Stench Source
BY ANDREW TANGEL Crews were at the site on
31st Street Thursday afternoon.
New York City inspectors be- The building owner said late
lieve they have pinpointed the Thursday the sewer line repair
source of a sewage leak that hadn’t yet been completed.
has been stinking up a busy A corner store, 876 Market
subway station at Herald Deli, is on the ground floor of
Square. the building. The business’s
On Wednesday they identi- owner said the deli wasn’t re-
fied a sewer line that had sponsible and he hasn’t noticed
somehow been cut at Sixth Av- any plumbing issues.
enue and West 31st Street in Corey Johnson, the local city
Manhattan, a few blocks south councilman, said he noticed the
of the subway stop. stench at the station about
JOHN KELLY III FOR FRESHDIRECT

After inspectors found a three weeks ago, asking an
“strong odor” at the cut sewer aide: “What is this smell?”
line, the city’s Department of “It sounds like it took quite
Environmental Protection or- a while” to discover the source
dered the owner of the prop- of the odor, Mr. Johnson said.
erty at 876 Sixth Ave. to repair “This should have been fixed
it, an agency spokesman said. right away.”
An MTA spokesman said
earlier this week the authority FreshDirect promoted a new ‘space salt’ with a billboard in Queens, but shoppers will find it hard to get their hands on the product.
For weeks, people had received seven complaints
Take This Deal With Grain of Salt

have complained about the odor so far this year.
The Department of Environ-
of an odor of rotten mental Protection spokesman
eggs or sulfur. said the agency first received a
report of a possible sewage BY CHARLES PASSY in an online campaign launch- least enough to click the on- rants, is using the day to pro-
leak at the location at the end ing Friday. line ads. In 2015, the cheese mote a new “OpenTable Taste”
The agency spokesman said of last week. With its latest product, the But those who click through cleanse resulted in a 20% traf- feature on its mobile app that
it is the responsibility of prop- As part their investigation, online grocery FreshDirect the offer will find the real- fic spike for FreshDirect.com. theoretically lets users sample
erty owners to maintain and re- the agency’s inspectors put dye promises something out of world truth: “Space salt” is FreshDirect isn’t the only restaurant dishes by licking
pair such service lines, which into the building’s drainage sys- this world. nothing more than an April business playing pranks on their screen.
connect to the city’s sewer tem, the spokesman said. That Namely, salt from outer Fools’ Day hoax. April Fools’ Day. The tech sec- Scott Jampol, OpenTable’s
pipes. dye showed up on the subway space, according to a digital This is the third year that tor has long used the day as senior vice president of mar-
For weeks, riders of the F, M, tracks, indicating the leak was billboard that went live in FreshDirect has pulled such a an opportunity to have fun, keting, expects customers will
D and B subway lines that run in the sewer service line. Queens on Thursday. “We’re prank. In 2015, it tried to trick and food companies aside catch on long before the two-
along Sixth Avenue have com- A smell of rotten eggs is working with 153 meteorite- shoppers with a “cheese from FreshDirect are getting minute promotional video
plained of smelling rotten eggs likely a sign of hydrogen sulfide gathering companies from all cleanse” program, and in 2014, in on the act. touting the new feature con-
or sulfur at the 34th Street sta- gas, a byproduct of sewage, ac- over the world to bring cus- “eagle-caught” salmon. For example, OpenTable, cludes, so he’s not concerned
tion. cording to health experts. In tomers the best the universe Company executives say the dining-reservation service about people licking their cell-
Metropolitan Transportation high concentrations, such gas has to offer,” FreshDirect, that many an online shopper that works with more than phones.
Authority officials have said could potentially be poisonous based in Long Island City, says has been fooled before, at 8,000 New York-area restau- “It’s all in good fun,” he said.
trains appeared to be drawing or even explosive, but an MTA
the stench into the station, and spokesman has said there was
that there wasn’t a sewage leak
at the stop.
It remained unclear Thurs-
no safety issue in this case.
The Herald Square station is
among the city’s busiest. In
Questions Raised Over Postal Worker’s Arrest
day what led to the sewer line 2014, about 125,000 subway BY PERVAIZ SHALLWANI
being cut. The building’s owner riders entered the transit sys-
said in an interview he sus- tem there on an average week- The viral video of New York
pected a utility company or day, according to MTA data. Police Department officers’
other contractor had sawed In addition to the Sixth Ave- controversial arrest of a U.S.
into the sewer line, without his nue lines, the N, R and Q sub- postal worker delivering mail
knowledge. way lines that run along Broad- in Brooklyn has put a spotlight
The building owner said he way stop at Herald Square. The on a specialized unit of offi-
didn’t know how much repairs station also serves as a termi- cers assigned to deal with
OFFICE OF BROOKLYN BOROUGH PRESIDENT ERIC L. ADAMS
would cost, adding that he may nus for a PATH train line be- quality-of-life conditions.
have to take legal action “to tween New York and New Jer- Three officers in the condi-
find out who the culprit is.” sey. tions unit in a Crown Heights
KEVIN HAGEN FOR THE WALL STREET JOURNAL
precinct have been removed

from their assignment, but re-
Christie Links Takeover main on duty, while they are

under investigation by the de-
partment for actions that Police
And Casino Expansion Commissioner William Bratton

said have him “very concerned.”
The lieutenant who was su-
BY KATE KING casino expansion when Atlan- pervising the officers, Lt.
tic City “is ready to go down Louis Machado, was placed on
New Jersey Gov. Chris the toilet.” modified duty and stripped of
Christie said Thursday he In response, Mr. Prieto his badge and gun, police said
would campaign against a ref- said the governor’s threat to Thursday. The officers’ names A video of the arrest of Glen Grays, in striped pants, went viral on the Internet. The actions of the
erendum to legalize casinos in lobby against the referen- weren’t released. three officers and their supervisor are being scrutinized by Police Commissioner William Bratton.
northern New Jersey if the dum’s approval “wouldn’t be Lou Turco, president of the
Legislature doesn’t approve a his first flip-flop” on an issue. Lieutenants Benevolent Asso- who are located in the major- spokesman said. shows plainclothes officers
state takeover of Atlantic City. Mr. Prieto and other north- ciation, said the union would ity of precincts throughout the The union that represents coming up to Mr. Grays at the
Mr. Christie, a Republican, ern lawmakers have long lob- defend Lt. Machado and “wait city, are handpicked to work the officers defended them door of an apartment building
has been locked in a public bied for a constitutional for all the facts to come out.” on quality-of-life issues that Wednesday, saying Mr. Bratton and asking for ID before plac-
battle with Assembly Speaker amendment to allow casinos The officers, who were in range from homeless encamp- “should withhold public coming him under arrest.
Vincent Prieto, a Democrat outside of Atlantic City, which plainclothes, approached 27- ments to locations where car ment until all the facts are in.” “My ID right there on the
from Hudson County, over leg- has a statewide gambling mo- year-old postal worker Glen accidents frequently occur. “Videotaping police encoun- side of the truck,” Mr. Grays
islation that would give the nopoly. Grays after he shouted at them They are required to be in uni- ters usually results in a rush to says. One the officers re-
state control over cash- Mr. Christie also has en- because they almost ran into form, though commanders judgment by people who have sponds, “Let’s go get your ID.”
strapped Atlantic City’s gov- dorsed the proposal to build him with their unmarked vehi- sometimes don’t enforce that no firsthand information about “I’m not going nowhere. I’m
ernment and assets. two casinos across the Hud- cle earlier this month, Mr. requirement, officials said. what transpired,” said Patrick delivering my postal route,”
The Senate voted in March son River from New York City. Grays said. A bystander’s cell- Mr. Bratton said investiga- Lynch, president of the Patrol- Mr. Grays is heard responding.
to approve the takeover, but In January, Mr. Christie phone video shows the officers tors will look at why the offi- men’s Benevolent Association. In the video, officers re-
Mr. Prieto has declined to per- brokered an agreement be- arresting him on a charge of cers were in plainclothes, “for In an interview Wednesday, peatedly tell Mr. Grays to stop
mit a vote on the bill in his tween Mr. Prieto and the Sen- disorderly conduct following a what purpose, who authorized Mr. Grays said he was in the resisting arrest, though he
chamber because he doesn’t ate president to put the mea- brief exchange, leaving his it.” middle of his shift on St. Pat- doesn’t appear to be resisting
support a provision that sure on the November ballot. postal truck double-parked and A law-enforcement official rick’s Day when he shouted at and can be heard shouting
would allow the state to alter Atlantic City is poised to abandoned on a busy street. said the Brooklyn district attor- what turned out to be an un- back, “I’m not resisting.”
the resort city’s union con- run out of money in April. “I’m very concerned about ney’s office has been in touch marked police car that almost Mr. Grays is handcuffed,
tracts. In March, Republican the performance of the officers, with the NYPD’s internal affairs ran him over. The officers placed in a car and charged
On Thursday afternoon, the Mayor Don Guardian said the about the leadership role of the investigators, which is protocol stopped, got out and ap- with disorderly conduct, a
governor said unless Mr. Pri- city would be forced to sus- lieutenant involved and about in such cases. Prosecutors typi- proached him, asking for iden- criminal summons.
eto advances the legislation, pend nonessential government the processing of the arrest at cally wait until an internal in- tification, he said. Mr. Grays, who has retained
“I will oppose North Jersey services on April 8 without a the precinct station house,” Mr. vestigation is finished before “They reversed and got out an attorney, said he thought
gaming and I will use every state bailout. Bratton said Tuesday, adding determining if a criminal inves- and that’s when the officers the officers should face disci-
bit of influence I have to en- Mr. Christie has declined to that he has reviewed the video tigation is warranted. walked toward me very ag- pline but didn’t want them to
sure that the referendum is sign legislation that would that has been made public The U.S. Postal Service’s Of- gressively,” he said. be fired.
defeated.” send the city $33.5 million along with other videos gath- fice of Inspector General is The bystander’s video, which “Honestly, people have fam-
Mr. Christie said New Jer- without approval of the take- ered by investigators. aware of the incident and was released by Brooklyn Bor- ilies. I don’t want them to take
sey voters wouldn’t approve a over bill. Conditions unit officers, looking into the matter, a ough President Eric Adams, meals off kids’ plates,” he said.
Mark Peters, the Department action against the Allure Group The suspect fled the scene
Greater of Investigation commissioner,
issued the subpoenas Thursday,
because they say the firm prom-
ised in an email to keep the
and victim was taken to Belle-
vue Hospital Center in stable
New York this person said, requesting doc-
uments and correspondence
property as a nursing home.
Joel Landau, an executive at
condition, the spokeswoman
said.
Watch from the Allure Group and the
Department of Citywide Admin-
the Allure Group, couldn’t be
reached for comment Thursday.
—Zolan Kanno-Youngs
KENA BETANCUR/AGENCE FRANCE-PRESSE/GETTY IMAGES
istrative Services in connection —Josh Dawsey NEW YORK

with the Rivington House land
deal. MANHATTAN
High Court Upholds
The Department of Investiga-
Woman Is Slashed Park Smoking Ban
MANHATTAN tion is probing why a deed re- The state’s highest court has
Documents Sought striction was lifted on the nurs- In Financial District upheld smoking restrictions in
ing-home property with little A woman was slashed in the state parks, including an outright
In Land Deed Probe public notice. After the restric- face Thursday in the Financial ban at seven smaller parks in
New York City’s Department tion was lifted for a $16 million District, a New York Police De- New York City.
of Investigation has subpoenaed payment to the city, the Allure partment spokeswoman said. In a decision released Thurs-
documents from a nursing-home Group sold the property to a The 20-year-old was walking day, the Court of Appeals unani-
company and a city agency as luxury developer for $116 million, on Broadway toward Rector mously rejected arguments from
part of a probe into the city’s indicating a $72 million profit. street at 5:20 p.m. when a man a smokers’ rights group that
decision to remove a deed re- The deal is also being exam- grabbed her arm from behind, parks officials exceeded their au-
striction on a Lower East Side ined by City Comptroller Scott spun her around and cut her thority and smoking limits
ON STRIKE: Workers at Newark Liberty International called building, a person familiar with Stringer’s office. City officials face, leaving a 2-inch laceration, should be left to the Legislature.
Thursday for better emergency training and higher wages. the matter said. said they are considering legal the spokeswoman said. —Associated Press
A16 | Friday, April 1, 2016 * * THE WALL STREET JOURNAL.
FEEDBACK FRIDAY
Different Takes: Water, Hot Dogs and More
The Food War of 1976
CASSANDRA GIRALDO FOR THE WALL STREET JOURNAL

Was Fought Uptown
This year, it’s coffee;
40 years ago, it was hot
dogs (“A Clash of the Cof-
fee Shop Titans Brews on
a Chelsea Block,” March
26).
In 1976, a Nathan’s
opened beside the Papaya
King on Third Avenue at
86th Street in Manhattan,
both well-known New
York hot-dog hot spots.
An intense price-and-
product war ensued. The
Papaya King reigned su-
GREATER NEW YORK NEWS QUIZ
preme. Nathan’s closed. 1. Restaurants are seeing a drone industry
Gianni Magnani boom in their breakfast trade.
Pelham, N.Y. How much more business has
the morning meal generated 4. New York City’s public-
Play Fair! Chewers in the past three years? health network is struggling.
How is it planning to become
Don’t Hurt Others
New York City is plac-
A. 30% financially stable?
ing an undue burden upon B. 25%
the players who are ad- C. 50% A. Shift to a new elec-
dicted to a product that is D. 10% tronic medical-records sys-
legal (“City Council Votes tem
to Ban Tobacco at Stadi- B. Treat more patients
ums,” March 23). 2. Mets pitching ace Matt who have insurance
No one other than Harvey had a ‘mystery ail- C. Increase the number of
players and fans at tick- ment’ that put his Opening patients treated annually
eted sporting events are Day start briefly in doubt. D. All of the above
banned from using smoke- What was his condition?
Water, a Vital Resource The MDC cannot sell what his administration aid private less tobacco in the city.
Control of “blue gold” it doesn’t own, and it doesn’t development (“City Didn’t This product doesn’t
is becoming a global war own Connecticut water. The Know About Land Deal Before harm anyone other than
A. A pulled groin muscle 5. The Naked Cowboy rallied
being fought ferociously MDC has a simple job of Deed Shift,” March 26). the person using it, so B. Rotator cuff tendinitis with New York City Council
by the common people managing resources to en- The removal of a prop- this ban seems closer to C. A bladder infection members in support of a bill
around the planet whose sure the sustainable delivery erty’s deed restriction cre- Mayor Bloomberg’s at- D. Food poisoning that would change Times
water is being taken by of potable water to the peo- ated increased property tempt to ban super-sized Square. What would the mea-
big business for commodi- ple of Connecticut at an af- value for its new owners. sugary soft drinks rather sure do?
fication to only those who fordable cost. This is true capitalism. It than a ban on smoking, 3. New York
will be able to afford to Once Niagara is allowed proves that the mayor is which affects everyone in lawmakers A. Create a celeb-
buy it (“Water Bottler to tap our water supply, we about money and power and the stadium. were arguing rity sightings zone
Makes Waves,” March 26). may likely never be able to will do what is necessary to Kris LaGrange over a plank B. Offer free
The Metropolitan Dis- get them out. The selling of get re-elected—even to the Bay Shore, N.Y. in the state Broadway tickets
trict was established in our water must be stopped. level of returning the 2013
budget when through a monthly
1929 to ensure clean, fresh Susan Yurasevecz campaign contribution by an
STEVE REMICH FOR THE WALL STREET JOURNAL

water for Connecticut resi- Bloomfield, Conn. Allure Group executive in an
Letters intended for publi- they learned lottery
cation in the Greater New California had C. Improve the
dents and to ensure its de- attempt to cover his trail and York section of The Wall
livery. pander to voters that he is Street Journal should be already approved traffic flow of tourist
Niagara will generate Land Deed Deal Shows for the underdog. sent to: it. What was topic of buses
profits for itself while The Real Bill de Blasio This act is good for busi- gnyltrs@wsj.com. Please debate? D. Restrict costumed char-
nearly 700 million gallons Mayor Bill de Blasio has ness and in the long run include contact informa- acters and topless women to
tion, including your ad-
of clean, potable water are earned my vote. Who knew he good for all. An increased dress and phone number. A. Public pension cuts certain areas
exported out of our state was a capitalist? real estate tax base even Letters should be a maxi- B. A higher hourly mini-
boundaries and forever Mr. de Blasio has played helps the little guy. mum of 300 words, and are mum wage
lost to our surface waters populist and champion for in- Hal A. Dorfman subject to editing. C. Tighter ethics rules To see answers, please
and aquifers. come equality, but he also lets Riverdale, N.Y. D. Tax incentives for the turn to page A14.
WHAT YOU NEED TO READ THIS WEEKEND

Unwind with WSJ and feed your curious mind. Read more in tomorrow’s paper
and get expanded arts and life coverage on WSJ.com and our mobile app.
© 2016 Dow Jones & Company, Inc. All rights reserved. 6DJ3508
REVIEW OFF DUTY REVIEW

Why Chinese Philosophy The Off Duty 50 When Liars Feel Dirty
Is Superior Dive into spring with a preview of the season’s splashiest looks, most ingenious
gadgets and tasty recipes for renewal. Plus: Drop-everything trips and hanging
Research shows that our brains can’t
always separate figures of speech from
Telling young people to discover chairs that let you swing from the rafters. the bodily feelings they activate, writes
their true selves causes confusion Credit: F. Martin Ramin/The Wall Street Journal, Styling by Anne Cardenas columnist Robert M. Sapolsky.
and anxiety. Better to follow
Credit: iStock
Confucius, who knew the power
of being inauthentic and insincere.
Credit: iStock
THE WALL STREET JOURNAL. * * Friday, April 1, 2016 | A17
HEARD & SCENE
TV Screenings Are Front and Center in New York City

The cable upfronts took
place this week, when net-
works meet with advertisers
for their coming seasons.
This means that Wednesday
night was heavy on TV par-
ties for which the networks
appeared to spend a lot of
moola.
We started the evening at
the AMC Empire 25, where
FX showed the final episode
of its current hit “The People
v. O.J. Simp-
son,” which
airs next Tues-
day. Press, ad-
vertisers and
some of the
MARSHALL cast, including
HEYMAN Sarah Paulson,
Courtney B.
Vance and
John Travolta, came out for
the screening, as well as
other members of the FX
family, like Louie Anderson
and Danny DeVito. Ted Sarandos, left, and Jane Krakowski at the ‘Unbreakable Kimmy
The screening—a satisfy- Schmidt’ premiere. Tina Fey, Tituss Burgess and Ellie Kemper, right.
ing and even moving wrap-
up to a very satisfying sea- high-end escort (played by complete with lots of pink
son—was followed by a Riley Keough) and features “Unbreakable Kimmy
huge, very of-the-people the kind of explicit content Schmidt” ping pong balls; a
party at the Lucky Strike for which cable networks candy buffet with sour
bowling alley. The FX up- have always been known. grapefruit slices and gummi
SYLVAIN GABOURY/PMC (3)

front bowling party is appar- The network took over all alligators; huge smiley face
ently an annual tradition of Nobu 57 and filled it—no balloons and cheeseburgers,
where the actors are encour- mean feat—with Mr. Soder- chicken sandwiches and
aged to knock down a few bergh, Ms. Keough, her co- milkshakes from the Shake
pins. stars like Paul Sparks, a hand- Shack.
“We know they can make ful of indie actors, including The club wasn’t especially
good television, but how are Brady Corbet, and many other crowded. Maybe it was the
they at bowling?” asked unrecognizables. Sushi plat- time of night, or maybe it
John Landgraf, the president ters abounded, as did rock was the vastness of this noto-
of the network. shrimp tempura and spicy rious den of iniquity devoted
For the most part, though, tuna with crispy rice. Drinks to table tennis. But it was fun
it seemed like it was the ad- were mostly made with Mr. and inclusive, with Carol
vertisers—including a group Soderbergh’s brand of sake. Kane, Robert Carlock, Queen
from Travelocity carrying Who knew the director Latifah, character actors who
the Travelocity gnome—who had a sake? Then again, who have bit parts in the show
put on their bowling shoes knew he had a movie called and even creator Tina Fey’s
and ate fried shrimp, chicken “The Girlfriend Experience”? daughter throwing down at
fingers and not great pizza. The best party of the the Netflix-emblazoned ping
The creative folk hung out in night was thrown by Netflix pong tables. Other celebs
a roped-off bar area. in celebration of the second hanging around included Ms.
Next up was another ex- season of that very kooky Fey, stars Ellie Kemper and
pensive shindig, this one New York show “Unbreak- Tituss Burgess, Josh Charles
JIMI CELESTE/PMC (2)

thrown by Starz, following able Kimmy Schmidt,” out on and Zosia Mamet.
the showing of two episodes April 15. At around midnight, even
of Steven Soderbergh’s new This was at another lei- the Spin employees started
series “The Girlfriend Expe- sure sport location, namely doing some variation on “the
rience.” This series of 13 Spin, for ping pong, on East Dougie.” That’s one way to
half-hours, based on the di- 23rd Street. The event was tell you’re at a pretty good Sarah Paulson and Courtney B. Vance, left, at a FX party, which featured a screening of the
rector’s 2009 film, is about a as colorful as the series, party. final episode of ‘The People v. O.J. Simpson.’ John Travolta with his wife, Kelly Preston, right.
ARTS & ENTERTAINMENT

AUCTIONS
Music to See: Upstarts to Legends AND EVENTS
BY ANDY BETA darker, introspective “Post Pop
Depression,” made together with
AT BO N H A M S
580 Madison Avenue at 56th Street
When it comes to music this Josh Homme from Queens of
April, New York offers every- the Stone Age. AN EXEMPLARY
thing from upstart acts to late DECORATIVE ANTIQUE
bloomers to music legends still Duran Duran/Chic/ AND VINTAGE CARPET
COLLECTION BY
going strong 50—or even 60— Shamir NAZMIYAL
years on. Here, a selection: Barclays Center Monday April 4, 1pm
April 12 Preview April 1-4
Pharoah Sanders Dismissed by many as new- AN ART DECO CARPET
Birdland Jazz Club wave pretty boys in the early INSPIRED BY FRANK
LLOYD WRIGHT
April 5 to 9 ’80s, Duran Duran has turned
POLINA YAMSHCHIKOV FOR THE WALL STREET JOURNAL
India
Known as John Coltrane’s fire- out to be perhaps the most re- approx. 12ft 7in x 18ft 7in
breathing sideman when the silient of that era’s synth-pop $70,000 - 100,000
jazz titan moved toward free acts. Last year the group re-
jazz, Mr. Sanders has carried the leased its vibrant 14th album, FINE LITERATURE
Monday April 11, 10am
torch of spiritual jazz since Col- “Paper Gods,” working with gui- Preview April 7-10
trane’s death in 1967. His run of tarist and dance-music-wizard
SIR ARTHUR CONAN DOYLE
albums for Impulse in the late Nile Rodgers, who is having a Original manuscript leaf from
’60s and early ’70s embraced late-career renaissance with The Hound of the Baskervilles.
not just jazz but also R&B, high- Chic. $100,000 - 150,000
life, soul and world-music forms,
TREASURES FROM
combining them all to ecstatic Ween THE CAREN ARCHIVE II
effect. Now an elder statesman, Terminal 5 How History Unfolds on Paper
Mr. Sanders wields his saxo- April 14 to 16 Monday April 11, 1pm
Preview April 7-11
phone with more nuance, though One of the strangest bands to
he remains a force even on bal- come out of the ’80s under- Soul singer Charles Bradley will play the Beacon Theatre in April. GEORGE WASHINGTON’S
JOURNAL TO THE RIVER OHIO
lads. ground, the duo of Dean and In The Maryland Gazette.
Gene Ween survived one-hit- February. Steeped in the late- Charles Bradley took a long road Annapolis: Jonas Green,
Iggy Pop wonder status with humorous, ’60s Chicago blues and jazz to becoming a singer himself, March 21-28, 1754.
United Palace Theatre smartly crafted eclectic-rock al- worlds, he channeled those be- working odd jobs for over 20 $60,000 - 90,000
April 12 bums like “Chocolate and ginnings into funk, soul, disco years, including performing as a
FINE JEWELRY
Over his five decades in music, Cheese” and “The Mollusk.” But and pop when he started Earth, James Brown impersonator Monday April 18, 3pm
Iggy Pop has had more lives their prowess as a live act gave Wind & Fire. The band’s multi- named “Black Velvet.” Connect- Preview April 14-18
than an alley cat, surviving the them longevity on the festival platinum catalog—including ing with Brooklyn’s soul purvey- RUSER EMERALD AND
end of his band the Stooges, circuit. They broke up in 2011 megahits such as “September” ors Daptone Records back in DIAMOND EARRINGS
heroin addiction and more. His but are reunited here. and “Shining Star”—brims with 2002, Mr. Bradley finally re- $40,000 - 60,000
career was first resurrected in funky guitars, crisp horns and leased his first album in 2011.
PHOTOGRAPHS
the ’70s by his friend, musician- Chicago and Earth, Wind smooth falsettos. For this tour, His newly released album Tuesday April 26, 1pm
producer David Bowie, and again & Fire they team up with Chicago, an- “Changes” features a stunning Preview April 23-26
in the ’80s with MTV hit Madison Square Garden other ’70s brass-heavy band. cover of Black Sabbath’s song HIROSHI SUGIMOTO
“Candy.” The Stooges success- April 18 of the same name that should Bay of Sagami, Atami, 1997
fully reunited in the aughts and The music world lost a luminary Caetano Veloso & convince anyone of the 67-year- Gelatin silver print
$18,000 - 25,000
in mid-March Pop released when Maurice White died in Gilberto Gil old soul singer’s redemptive
Brooklyn Academy power. 19TH CENTURY
of Music EUROPEAN PAINTINGS
April 20 and 21 Jai Wolf Wednesday May 4, 2pm
Preview April 30 - May 4
Excited by both bossa nova and Music Hall of
the Beatles’ psychedelia, teenage Williamsburg EDWIN LORD WEEKS
Start for the Hunt at Gwalior
singers Caetano Veloso and Gil- April 22 oil on canvas (detail)
berto Gil formed a musical For musicians, the gap between $400,000 - 600,000
friendship that went on to revo- uploading demos to a Sound-
lutionize Brazilian pop music in Cloud page and playing for sta-
the 1960s. Their careers and dium crowds is narrowing these
SAMIR HUSSEIN/REDFERNS/GETTY IMAGES
PREVIEW HOURS AUCTION APPRAISAL EVENTS

friendship span a half-century, days. Take New York University For complete preview hours First Wednesday of the month
which they celebrate with the student-turned-beatmaker Sa- visit bonhams.com/ny 9:30am to 12:30pm
release of “Dois Amigos,” a live jeeb Saha, who as Jai Wolf up-
album and tour that finds the loaded an Eastern-flavored remix
two regarding their long musical of Skrillex’s “Ease My Mind” to
history. his page. After it was added to
Skrillex’s own DJ sets, Mr. Saha
Charles Bradley was signed to his label. Jai Wolf
The Beacon Theatre has since played Coachella and
International Auctioneers and Appraisers – bonhams.com/ny
April 23 Bonnaroo and tours solo now.
© 2016 Bonhams. Principal Auctioneer: Patrick Meade. NYC License No. 1183066-DCA
Struck by seeing James Brown He also plays April 23 at Bowery
Simon Le Bon, John Taylor and Dom Brown of Duran Duran. at the Apollo as a young boy, Ballroom.
A18 | Friday, April 1, 2016 * * THE WALL STREET JOURNAL.
SPORTS
World Series or Bust: The 2016 Mets

BY ANDREW BEATON goes according to plan, the fun has no reason not to Steven Matz—could very How many games will David
should just be starting. return to the World well blossom into the great- Wright lose to his spinal stenosis?
Before the Mets even played a For years, “fun” wasn’t in the Series. est rotation baseball has ever How will Cespedes fare as a full-
spring-training game this year, Mets’ dictionary; it was missing There’s a po- seen. But the quartet has made time center fielder? Will Lucas
manager Terry Collins made a somewhere between frustration tent pressure just 147 combined regular-sea- Duda go homerless in June? Can
declaration: “Fun time is over.” and futility. But the team’s me- that comes with son starts. (Fifth starter Bar- Michael Conforto hit left-handed
He was referring to the side- thodical (some would say parsi- that kind of fore- tolo Colon has made 467 by pitching?
show of cars and horses belong- monious) construction of a flo- cast. The team’s himself.) Is it too soon to crown As the team gets set to open
ing to star outfielder Yoenis Ces- tilla of flame-throwing young four young aces— them kings? The Washington Na- its season Sunday night in Kan-
pedes, which stole eyeballs starters led to a National League Matt Harvey, Ja- tionals probably think so. sas City, here’s a look at the 2016
during the early weeks of train- pennant last season, and now, an cob deGrom, Noah Off the mound, many things Mets, with an important number
ing camp. But if the 2016 season expectation that this year’s squad Syndergaard and could derail the Mets in 2016. to watch for each player.
YOENIS CESPEDES | CF
Age: 30
2015 (DET/NYM): 159 G, .291 BA, 35 HR, 105 RBI
.328 OBP, .870 OPS
The real length of Cespedes’s contract. The return of the
best hitter in the lineup this winter was a boon for the
team, but his 3-year, $75 million deal includes an
1 opt-out after 2016. So if he mashes in 2016,
then fans can expect him to test free agency
once again. That means the Mets’ window for
winning with a true five-tool player on the field
may last all of one full season. Even if Cespedes can’t replicate the
production he brought over the final two months of 2015 (17 home
runs and a .942 OPS), a fraction of that will help return the Mets to
the playoffs. But can he be trusted in center field for an entire season? CURTIS
GRANDERSON | RF
Age: 35
2015: 157 G, .259 BA
26 HR, 70 RBI
.364 OBP, .821 OPS
MICHAEL CONFORTO | LF Walks in 2015.
Age: 23 Granderson did everything
for the Mets last year, hitting 26 home runs
2015: 56 G, .270 BA, 9 HR, 26 RBI, .335 OBP, .841 OPS
Games Conforto has played in his professional career,
133 of which were in the minors. He’s entering his first
91 and playing in a team-high 157 games. But
what made him a uniquely talented leadoff
option was his combination of power and patience.
full season in the majors after coming up
189 last July and quickly thriving with nine
home runs and an .841 OPS in 56 regular-
season games. But some growing pains are inevitable.
His 91 walks were 25 more than any other Met,
ninth in all of baseball and tops among leadoff
hitters. For stretches last season—with Wright
For one, the lefty hit all those homers against righties,
NEIL WALKER | 2B injured, Duda slumping, and Cespedes still in a Tigers
Age: 30 uniform—the lineup depended on Granderson’s power.
batting .214 against southpaws. But if he just repeats Now with a deeper lineup behind him, continuing to
last year’s production, he still profiles as one of the 2015 (PIT): 151 G, .269 BA
16 HR, 71 RBI, .328 OBP, .756 OPS set the table for the middle of the order becomes
Mets’ best hitters. When he struggles, it will the most critical part of his game.
demonstrate the importance of having two starting- Home runs versus lefties in 2015. Walker, the switch-
caliber outfielders (Juan Lagares and Alejandro De Aza) hitting second baseman acquired during the off-season to
ready on the bench. replace Daniel Murphy, has been one of baseball’s
0 best-hitting middle infielders, averaging more than
15 home runs over the past six seasons. He hit 16
last year—but all against right-handed pitching. In 836
ASDRUBAL CABRERA | SS career games, he has hit .260 against southpaws, but
that fell to .237 in 2015. The question will be how often
Age: 30 Walker (who played in 151 games for Pittsburgh last
2015 (TB): 143 G, .265 BA, 15 HR, 58 RBI year) actually plays against lefties, considering that
.315 OBP, .744 OPS utility bench man Wilmer Flores smoked lefties with a
Home runs the Mets should expect from .310 batting average and .955 OPS a year ago.
their new shortstop. Cabrera, another
switch-hitter added to the lineup,
15 is a known quantity. He’s sure-
handed in the field but lacks
great range. To make up for that, he’s a
rare shortstop who hits with power, with
14 to 16 home runs in each of the past
four years. The Mets signed Cabrera
because of this consistency at the plate,
and if he hits the 15-home run mark, they
will have gotten what they paid for. This
power is a plus: Teams across baseball
averaged just 12 home runs from their
shortstops in 2015, with the Mets hitting LUCAS DUDA | 1B
exactly 15.
Age: 30
2015: 135 G, .244 BA, 27 HR, 73 RBI, .352 OBP, .838 OPS
Duda’s batting average from May 31 to July 22 last year.
DAVID WRIGHT | 3B The 30-year-old lefty finished 2015 with impressive totals
Age: 33 for the second straight season, hitting 27
2015: 38 G, .289 BA, 5 HR, 17 RBI
.379 OBP, .814 OPS TRAVIS D’ARNAUD | C
.160 home runs and getting on base more than
35% of the time. But Duda’s immense
power can be maddening because it often vanishes for
Games Wright should target to Age: 27
play, after losing most of last longer stretches than with most other boppers. When the
2015: 67 G, .268 BA, 12 HR, 41 RBI, .340 OBP, .825 OPS Mets’ offense disappeared before last year’s trade
season to his chronic
130 back condition He has
declined to project an
exact number, but 130 games would
Stints on the disabled list the past two seasons.
D’Arnaud is one of the best hitting catchers in baseball—
when he’s healthy. His .825 OPS ranked second
deadline, Duda was the main offender, hitting .187 in
June and .178 in July. But with nine home runs in eight
games from July 25 to Aug. 2, he reminded fans how he
mean that he avoided any extended
absences and gave the Mets the 3 among backstops with at least 250 plate
appearances last year, behind only the sport’s best
catcher, Buster Posey. The problem is Posey had 623
earned the first base job in the first place.
consistency they need at third base.

His spinal stenosis will never go plate appearances, versus d’Arnaud’s 268. D’Arnaud’s
away, so he can’t play every day, ability to stay healthy over a full season will help
something he has finally come to determine how much production the Mets get from the
terms with. With regular days off, bottom of their order. The good news is, most of his
his goal should be to skip roughly a injuries have been fluky, not the types of things that
game during every week of the should recur. But it happened during his minor-league
season, plus a few more. With that, career, too, so it’s a worrisome trend.
the Mets hope Wright can pull his
batting average and power numbers
back to his mid-career levels.
BENCH
Wilmer Flores has been replaced
by Asdrubal Cabrera at shortstop,
but he could still wind up
starting half the Mets’ games,
since he might be the primary
backup at every infield position.
Lucas Duda and Neil Walker
could sit against some left-
handed pitchers, Cabrera has a
sore knee, (though he will be
ready for opening day) and David
Wright needs regular days off to
Noah Syndergaard RHP rest his back. With Juan Lagares
Matt Harvey RHP Jacob deGrom RHP Steven Matz LHP Bartolo Colon RHP set to slot into the outfield
ROTATION
Age: 27 Age: 27 Age: 23 Age: 24 Age: 42 against lefties, the rest of the
GETTY IMAGES (CONFORTO, GRANDERSON); ZUMA PRESS (CESPEDES); ASSOCIATED PRESS (10)
2015: 29 GS, 189.1 IP, 13-8, 2015: 30 GS, 191 IP, 14-8, 2015: 24 GS, 150 IP, 9-7, 2015: 6 GS, 35.2 IP, 4-0, 2015: 31 GS, 194.2 IP, 14-13, bench—Alejandro De Aza, Matt
2.71 ERA, 5.08 SO/BB 2.54 ERA, 5.39 SO/BB 3.24 ERA, 5.35 SO/BB 2.27 ERA, 3.40 SO/BB 4.16 ERA, 5.57 SO/BB Reynolds and Eric Campbell—
Percentage of sliders he threw Percentage of deGrom’s His average fastball velocity in Total starts, in the minors and Walks per nine innings in will have to stay ready for pinch-
last year, his first season back pitches that batters swung at 2015, the second-fastest majors, in 2015. This was his 2015, the second-best rate in hitting duties.
from Tommy and missed in among starters most ever, after he baseball among
15.2 John elbow
surgery, after
throwing them 18.7% of the
12.7 2015—the ninth-
best rate in
baseball among pitchers with
96.5 in baseball last
year. As a
rookie during the playoffs, he
27 started his Mets
career with Tommy
John surgery and didn’t make
1.11 pitchers with at
least 150 innings.
This is especially important
BULLPEN
If much about the Mets’ bullpen
was turbulent last season, Jeurys
time in 2013. Harvey has said at least 150 innings, and the threw 16 pitches of 100 mph his professional debut until because, unlike his rotation- Familia was a rock, posting a 1.85
that for whatever reason— best on the Mets’ staff. or more—the only starting 2012 after being selected in mates, Colon isn’t a big ERA with 86 strikeouts in 78
whether it was rust or forearm DeGrom’s credentials as a pitcher in the postseason to the 2009 draft. Last year, he strikeout pitcher at this stage innings, saving 43 games. But who
strength—he just didn’t have a bona fide ace are clear: He had throw even one. So it’s missed more time with a back of his career—his 6.3 will serve as the bridge? Free-
strong feel for the pitch until the lowest ERA among the understandable when even injury. So for Matz, who punchouts per nine innings agent signee Antonio Bastardo
the end of the 2015 season. starters in 2015, and may Terry Collins acknowledges retains his rookie status last year ranked 75th out of and Addison Reed will likely start
Now he says the slider is back, have been the opening-day that Syndergaard may heading into the 2016 season 89 pitchers. Guys like Colon the season handling the eighth-
and that should make him starter this year if his wife ultimately be the best of the (despite starting Game 4 of who don’t induce whiffs—his inning duties, but don’t be
even more dangerous than he weren’t due to give birth in Mets’ pitchers. Add to that a the World Series), the key is swing-and-miss rate of 6.4% surprised if Hansel Robles wins
was last season. A 7.50 ERA the next week. The Mets’ lone devastating mix of off-speed pacing himself over a long was seventh-lowest in the the role by year’s end. Jerry
in 12 spring-training innings All-Star last season, he threw pitches, and Syndergaard has year. His 2015 stats show how league—can’t afford to put Blevins, injured last year and
may seem alarming, but 50 more innings than he did the ability to both blow past well he can pitch, but he has extra runners on base, because resigned this winter, will be called
there’s little doubting Harvey in 2014, so his ability to hitters and keep them off never thrown a full big-league- when batters make contact, upon to get a single lefty out,
after he pitched so well, even generate whiffs on this scale balance. He’ll start the second season, so his health, not his hits will fall in. To remain a while Sean Gilmartin projects as
without his most trusted should help get him through game the season against skill, will be the biggest factor viable starter, he must keep the long man after posting a 2.67
weapon, in 2015. his third season. Kansas City. in his 2016 success. this walk rate low. ERA as a rookie in 2015.
WSJ.D B5 | CROSSWORD B6
BUSINESS & TECH.

FDA Faces Lawsuit Video Makers Gripe
Over GMO Animals About Facebook Clips
REGULATION | B3 COPYRIGHT| B5
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, April 1, 2016 | B1
Hospitals Brace for New Rules

BY MELINDA BECK stays in a rehab facility, hospi- 430,000 hip and knee replace- to get a grip on their costs, ex-
tals could owe Medicare in- ments Medicare covers annu- perts say.
Starting Friday, sweeping stead. ally. The Centers for Medicare “We’re concerned that very
changes in Medicare payments The so-called bundled-pay- and Medicaid Services, or few hospitals and physicians
could affect nearly 800 U.S. ment initiative is the first CMS, estimates the program have developed the infrastruc-
hospitals’ bottom lines, but mandatory program under the will save $343 million on the ture necessary to meet this
not everyone is ready for the Obama administration’s plan $12.2 billion that Medicare deadline,” said Thomas Bar-
STEPHEN BRASHEAR/GETTY IMAGES

switch. to shift at least 50% of Medi- will spend on the procedures ber, chief of the council on ad-
The new rules will hold care spending to alternative- over the next five years. vocacy of the American Acad-
hospitals accountable for all payment models by 2018. Some top hospital systems emy of Orthopedic Surgeons.
the costs of hip and knee re- All hospitals in 67 randomly have offered fixed-price pack- Last week, two U.S. repre-
placements for 90 days. If pa- selected metropolitan areas, ages for heart surgeries and sentatives from Georgia intro-
tients recover and go home including New York and Los joint replacements for years, duced a last-ditch bill in Con-
quickly, hospitals could reap Angeles, are required to par- or are already working with gress to delay the bundled-
savings. If patients have com- ticipate. Together, they per- Medicare bundles volun- payment mandate, saying it
plications or need lengthy form about one-third of the tarily. Other hospitals have yet Please see RULES page B4
Boeing will cut 4,500 jobs from its workforce of 161,000 by June.
Web Boom Roils Trucking Industry Jet Prices Take

Center Stage in
Big-rig drivers increasingly make home deliveries of large, heavy items bought online
Boeing Job Cuts

BY JON OSTROWER campaigns,” according to an
internal message to employees
Boeing Co. has opened a last week.
new chapter in its battle with Thursday, a Boeing spokes-
Airbus Group SE, with price man pointed to February com-
taking a larger role alongside ments by Chief Executive Den-
the performance of their spar- nis Muilenburg, who asked
DUSTIN THOMAS CHAMBERS FOR THE WALL STREET JOURNAL
ring jetliners. investors to view its cost cut-

The U.S. company wants to ting as “playing offense in a
boost productivity and effi- competitive marketplace.”
ciencies at its jet plants, with Boeing in recent years
plans to cut 4,500 positions has invested heavily in auto-
from its 161,000-strong work- mated manufacturing equip-
force by June, as part of its ment, in addition to incremen-
strategy to offer airlines and tal moves to trim development
lessors the lowest price, ac- costs, while aggressively re-
cording to one of its most se- negotiating supplier contracts
nior executives. to lower expenses under a
The staff reductions would program it calls Partnering for
include 4,000 employees—or Success.
roughly 5%—from a commer- In recent weeks, however,
cial unit that has a $431 billion Boeing executives have sig-
backlog of about 5,800 aircraft naled that won’t be enough.
Tractor-trailer driver Mark Eaves estimates residential deliveries take 35 to 40 minutes, compared with 10 to 15 minutes at businesses. as of the end of 2015. Mr. Conner in February laid
The unprecedented order out the urgency of cutting
He pulls a 238-pound gun RV bathroom boom only has intensified the more internal costs. He said
Delivery Boom safe up a hill and gets stuck fittings competition with Airbus, jetliner competition has be-
Semi-trucks increasingly drive into in the mud. prompting a shift by Boe- come increasingly fierce with
residential neighborhoods to deliver ing, which has long sought a Airbus and Bombardier Inc.
bigger and heavier online orders. price premium over Airbus for Boeing also faces an im-
A typical day’s cargo in the its high-performance jetliners. proved slate of Airbus jets that
greater Atlanta area: The jetliner unit’s chief ex- Boeing believes have narrowed
ecutive, Ray Conner, said its its performance advantage,
Commercial cargo is relatively focus on costs was coming “at particularly for its highest vol-
quick and easy to drop at a time when price carries ume product—the single-aisle
loading docks with fork lifts. more weight than ever in sales Please see BOEING page B4
He stops on a
A forklift
FBI Tests Its Ability

In a tight neighborhood, the busy street in
driver dodges low-hanging utility unloads 877
rush hour to
pounds of
wires to pick up 291 pounds of unload a
fireplace
To Unlock More Devices

camera gear. He can barely turn 138-pound load The driver
his truck to exit a narrow road. inserts.
of chairs. carries a 59-pound
Source: staff reports
mirror to a garage. THE WALL STREET JOURNAL.
BY DEVLIN BARRETT lance needs, or does it priori-
A continuing series on how of Gwinnett County, Ga., sub- it up a hill and around back which is caught in a tug of tize cybersecurity.’’
changes in shopping habits divisions, avoiding yard of the house where his hand- war with shippers and parcel WASHINGTON—The Federal The longer the FBI keeps
are forcing big shifts across crews and children on bikes, powered forklift (called a carriers over who should pay Bureau of Investigation is test- the security flaw to itself, he
retail and other industries. until he reached the delivery pallet jack) got stuck in mud. for the true price of delivering the method used to crack a said, “the more they are gam-
he dreaded At that point, Mr. Eaves ing e-commerce, especially terrorist’s iPhone to see how bling that no other entity will
BY BETSY MORRIS HOW WE most: a 238- tipped the box on its end and the ever-bigger items con- many other versions of the de- discover this flaw.’’ The ACLU
SHOP pound gun cabi- muscled it the rest of the sumers are ordering. vice it could open, but it could had criticized the FBI’s efforts
ATLANTA—Mark Eaves net ordered on- way to her patio. As they struggle with un- take officials many more to force Apple to help unlock
has been a tractor-trailer line from A seismic change in the anticipated costs, truckers months to decide what to do the phone.
truck driver for 13 years. Gander Mountain. way Americans are shopping are considering whether to with their newfound ability. The process federal intelli-
Lately, though, he is more He parked on the street is affecting everything from specialize, partner or ratchet The showdown between the gence and law-enforcement
like your UPS man on ste- and single-handedly got the how, when and where they up prices, which would pres- FBI and Apple Inc. over the agencies use for deciding
roids. load out of his truck, balanc- make purchases to whether sure shippers and maybe locked iPhone of San Bernar- whether and how to disclose a
On a typical recent day, ing it while lowering by hy- they pay with credit cards or consumers. dino, Calif., gunman Syed Riz-
he throttled his semi-truck draulic lift. Then—per his mobile clicks. E-commerce comprises wan Farook came to a halt this
through the narrow streets customer’s wishes—he pulled It also is roiling trucking, Please see TRUCKS page B2 week when officials an-
The government
nounced that an undisclosed hasn’t revealed how it
third party had shown the
BP’s Azerbaijan Push Comes at a Cost

government a technique for
gained access to a
decrypting the phone’s data. terrorist’s iPhone.
The FBI hasn’t disclosed the
technique or what it found on
BY ROBBIE WHELAN jan’s government. Their work the phone. The government security gap can take months,
AND SARAH KENT was plagued by bloated costs, did, however, drop a high- even when events are moving
according to documents seen stakes legal bid to force Apple quickly, according to current
BP PLC has bet billions of by The Wall Street Journal and to help investigators breach and former officials.
dollars on Azerbaijan, a re- people familiar with the mat- the device’s security features. The White House oversees
source-rich country sand- ter. The issues prompted at Apple hasn’t identified the the deliberations over whether
wiched between Russia and least one written complaint to security flaw that let the FBI the newly discovered fault
AGENCE FRANCE-PRESSE/GETTY IMAGES
Iran whose giant reserves BP’s ethics department. access Mr. Farook’s iPhone 5C, should be publicly disclosed,
could help reduce Europe’s re- BP said it investigated the or determined how many of its flagged to the affected com-
liance on Russian gas. issues related to Panalpina but other devices might be vulner- pany, or kept secret so govern-
But in order to extract “did not establish any miscon- able. The 5C wasn’t a particu- ment agents can keep using it.
those resources, BP has had to duct with regard to BP nor any larly big seller for Apple, lim- In recent days, several cur-
wage a battle to control in- impact on our business.” iting the technique’s value rent and former government
flated costs and root out On Shah Deniz, BP said, unless it works on other mod- officials have suggested that
fraud, internal documents and “We take concerns raised with els. Still, it could have conse- the process could be more
interviews with former em- us seriously and investigate quences for the broader de- complicated in Apple’s case,
ployees of BP and its contrac- serious breaches of our code bate between Washington and because the company has
tors show. Oil giant BP is the biggest foreign investor in Azerbaijan, a of conduct.” Silicon Valley over encryption, taken the position that it will
In 2013, BP’s board of direc- resource-rich country situated on the Caspian Sea. The incidents highlighted a privacy and security. fight government efforts to
tors learned that an employee struggle faced by many large Chris Soghoian, principal make it help unlock phones.
of its main logistics contrac- billed by a shell company for on Azerbaijan’s giant Shah energy companies: how to pull technologist at the American While the government says
tor, a subsidiary of Switzer- transportation services that it Deniz natural-gas project off large projects in countries Civil Liberties Union, said the it needs to be able to look in-
land’s Panalpina World didn’t provide, according to in- awarded contracts worth $2.5 with lax corruption controls. FBI is facing “a million-dollar side such devices when it has
Transport Holding Ltd., had ternal communications viewed billion to a consortium of oil- BP is the biggest foreign inves- question, and really what it a warrant, Apple and other
allegedly approved roughly by The Wall Street Journal. services companies, including tor in Azerbaijan, which ranks comes down to is, does the tech companies argue that it is
$16 million worth of invoices In 2014, BP and its partners firms controlled by Azerbai- Please see BP page B2 FBI prioritize its own surveil- Please see APPLE page B5
B2 | Friday, April 1, 2016 * *** THE WALL STREET JOURNAL.
INDEX TO BUSINESSES BUSINESS NEWS

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Airbus Group...............B1
Albertsons...................C2
Allergan.......................B3
Diageo ......................... B6
E
Elliott Management...A8
Micron Technology....C12
Morgan Stanley .......... C2
N
China to Tax Overseas Purchases
Endo International......B3 Navistar InternationalB2 China is tightening its grip sold on their websites, be-
Amazon.com..........B2,B5 EQT............................C10 Newmont Mining......C11 on cross-border e-commerce, cause of product-safety con-
American International Etsy..............................C2 P imposing a new tax system on cerns in China. Alibaba and
Group.........................C2
F Panalpina Welttransport overseas purchases that form JD.com said they expected ro-
Anadarko Petroleum.C10
Fidelity Investments .. C2 .....................................B1 a growing business catering to bust demand from Chinese
Anbang Insurance
Fosun Group................C3 Prudential Financial....C2 Chinese consumers with an consumers for overseas prod-
Group...................A1,C3
Apple......................B1,B5 FujiFilm Holdings........B5 R appetite for foreign goods. ucts, to continue, even with
Aqua Bounty G Randgold & Exploration The changes, announced by the changes in policy.
Technologies.............B3 General Electric...........C2 ................................... C11 the Finance Ministry last The changes in taxes come
ZHANG PENG/LIGHTROCKET/GETTY IMAGES

Astellas Pharma ....... C12 Goldman Sachs Group C2 S week, include raising the so- as the Chinese economy is
Atlassian ..................... C2 I Saipem ........................ B2 called parcel tax that is im- slowing and the deceleration is
B Impax Laboratories.....B3 Siemens ...................... A2 posed on foreign retail prod- crimping tax revenues. Tax rev-
Bank of America.........C2 Intrexon.......................B3 Socar............................B2 ucts that e-commerce firms enues grew 4.8% last year, com-
Barrick Gold...............C11 Square ......................... C2 ship into China. pared with 7.8% in 2014. Beijing
J
Bats Global Markets .. C2 Starbucks....................B6
Janus Capital Group ... C4 Starwood Hotels &
Moreover, such goods sent is looking for new sources of
Boeing ......................... B1
K Resorts Worldwide directly to consumers will now growth and revenue, and is try-
Bos Shelf.....................B2
Box...............................C2 Keurig Green ............................... A1,C3 be treated as imports and will ing to guide the economy to
BP................................B1 Mountain .................. C4 Syndax Pharmaceuticals be subject to tariffs and value- rely more on consumption and
British American Kleiner Perkins Caufield ..................................... C1 added and consumption taxes, less on investment and indus-
Tobacco....................C10 & Byers ..................... B5 T whose rates vary depending try. At the same time, China is
C L Textron........................A2 on the type and value of A new Chinese tax on foreign goods targets cross-border e-commerce. anxious to build up domestic
Club Méditerranée......C3 Lansdowne Partners .. A8 Theranos..................... A1 goods. The ministry said the businesses to provide jobs.
Continental Resources Linn Energy.................C1 U changes, which become effec- other baby and maternal prod- pany that helps international The lower taxes have given
................................... C10 M UBS Group...................C2 tive April 8, are intended to ucts. They form a slice of the 5 retailers sync their e-com- e-commerce businesses an
Corvus Pharmaceuticals
Marriott International US Foods Holding ....... C2 put foreign and domestic trillion yuan ($773 billion) in merce websites across lan- edge over ordinary importers
..................................... C2 W products on an equal footing. sales by e-commerce firms in guages and currencies. “In- in China and domestic compa-
.....................................A1
Credit Suisse .............. A8 Industry analysts said the China last year, double the creases in prices always have nies that make similar prod-
McDonald's..................B6 Whiting Petroleum...C12
D Medivation ................ C12 Wilson Trucking..........B2 move seems designed to give a level of 2012, according to Bei- the effect of driving demand ucts, the Finance Ministry said.
Deutsche Bank............A1 MetLife........................C2 WPX Energy..............C12 boost to “made-in-China” prod- jing-based research firm down,” but the effect will be “As consumption plays a
ucts and could dent a small, Analysys International. “modest,” Mr. Whiteman said. bigger role in the economy,
INDEX TO PEOPLE but growing, market for foreign

goods sold by Alibaba Group
Holding Ltd., JD.com Inc. and
The new levies could
dampen some demand, just as
an increasing number of re-
“It probably won’t be too no-
ticeable for branded prod-
ucts,” for which consumers are
the government prefers to see
outbound consumption flow
back,” especially for medium-
A G Paolini, Luca..............C11 other e-commerce players. tailers world-wide are hoping willing to pay a premium. and high-end goods, said Tan
Ablin, Jack...................C1 Geneina, Hisham........A5 Paulson, John............C11 Those marketplaces feature to sell into China, said Charles Chinese e-commerce com- Naixun, an analyst at research
Ackermann, Josef.......A8 Gero, George.............C11 R nutritional supplements and Whiteman, senior vice presi- panies have said that such firm Analysys International.
Auffret, Carl..............C10 Gomes, Jonh ............... C3 Rahman, Rashique....C11 food by brands such as Ocean dent of client services for Mo- products form the vast major- —Liyan Qi in Beijing and
B Goncalves, George....C10 Ritter, Jay ................... C2 Spray, as well as diapers and tionPoint, a technology com- ity of the imported products Loretta Chao in New York
Gout, Cyril...................B5 Rosenbluth, Todd........C4
Bacay-Abad, Julia.......C3
Greenwald, Michael....C2
TRUCKS
Barber, Thomas .......... B1
Gross, Bill....................C4
S
minutes. cel carrier, estimates SJ Con- ering it, you’re pulling your
Best, Logan.................C4 Groton, John ............. C10 Sarni, James ............. C10 “Have you ever tried to lift sulting Group, a hair out,” he said.
Brill, Matthew...........C10 Guo Guangchang.........C3 Schenck, Marcus.........A8 a 2,000-pound pallet [of transportation consultancy. Amazon.com Inc. raised
C H Sharps, Rob.................C9
paver stones] with a pallet That has helped residential consumer expectations. Now,
Campbell-Roddis, Mark Shu Gao Hua...............C3
Housseinov, Murad.....B2 Continued from the prior page jack?” Paul J. Dugent, a vice shipments in the LTL segment shippers like Home Depot Inc.
.....................................B2 Skyrm, Scott...............C4
J 10% to 20% of deliveries in president of Estes Express grow at a compound annual oblige, mixing big and heavy
Carignan, Charles........C2 Soghoian, Chris...........B1
the $35 billion trucking in- Lines asked while speaking rate of 6.9% compared with residential shipments in with
Jain, Anshu.................A8 Sullivan, Christopher C10
Coard, David................C9 dustry segment called LTL or about industry changes at a commercial shipments’ 1.2% its commercial ones because
Collyer, Rosemary.......C2 K U “less than truckload,” esti- recent supply-chain confer- over six years through 2015. it makes shipping simpler. So
Colvin, Simon..............C4 Kimbrell, George.........B3 Ustian, Daniel.............B2 mates Kevin Zweier, a vice ence. For anybody trying to Some industry players are firms like Wilson are “kind of
Cryan, John.................A1 Kunibe, Takeshi...........C2 president at supply-chain get a big truck into a cul-de- charging extra for the last forced to take it all if they
V
Custis, Alan...............C10 L consultancy Chainalytics. sac, “chances are we’re going time-consuming leg of an want to do business with that
Vance, Cyrus ............... B5
D Levine, Robert.............C4 LTLs pack loads from multi- to take out a mailbox,” he item’s transport, and also of- shipper,” said Mr. Zweier of
W ple customers into a single said. Home deliveries are fering specialty “white glove” Chainalytics.
Deignan, Mary Ann.....C2 Loughney, Daniel ...... C10
Ludwig, David ............. C2 Whiteman, Charles.....B2 truck. “the biggest thing this indus- services such as installation The $25 minimum fee of-
Donahue, Paul.............C2
Lynch, Sean.................C9 Willens, Robert...........C1 Big rigs like the one Mr. try is dealing with right or assembly. ten charged by trucking firms
Dowd, John ............... C10
Wong, Kim...................C3 Eaves drives for Fishersville, now.” But many traditional truck- for a home delivery probably
Dugent, Paul J............B2 M
E Marriott, Bill...............A4
X Va.-based Wilson Trucking UPS and FedEx Corp. are ing companies like Wilson, isn’t covering the extra labor,
Minack, Gerard............C1 Xu Ming.......................C3 Corp. are increasingly haul- raising prices for delivering which provides LTL and other equipment and time, he said.
Eaves, Mark................B1
Y ing consumer goods they big, heavy items such as kay- transportation services Drivers, for instance, are of-
Epstein, Ira..................C1 N
weren’t designed for into aks and picnic tables that mostly throughout the South- ten paid $18 to $25 an hour.
F Nappier, Denise.........C11 Yellen, Janet ............... C9
neighborhoods, bumping tree don’t fit their automated sys- east, are caught in the mid- Mr. Gast said Wilson is
Ferrer, Inocencio ......... C3 Northey, Bill................C4 Z branches and utility wires. tems and cut into profit mar- dle. The Internet “is creating working with customers to
Fitschen, Jürgen.........A8 P Zhi Ding Ze ................. C3 Truck drivers, used to mov- gins. Both nearly doubled to all this activity,” said Wilson’s figure out fair pricing and is
Fitzpatrick, William....C9 Palmer, James.............C2 Zweier, Kevin..............B2 ing efficiently from one load- $110 the extra fee on oversize president, Steven D. Gast, as evaluating partnerships that
ing dock to another, must items in their parcel ground he walked his Conley, Ga., would allow it to focus on
now juggle big, often heavy networks. FedEx said soon it loading dock recently, point- business deliveries. “Nobody’s
Navistar Agrees to Settle and more time-consuming

home deliveries, too.
Mr. Eaves estimates resi-
would assess a special han-
dling surcharge to even more
packages.
ing out oddly shaped outdoor
fireplaces, a Chevy Silverado
hood, boxed mirrors marked
figured out the cost side,” he
said. “Everybody is scram-
bling.”
Charges From SEC dential deliveries take him 35

to 40 minutes, compared
with 10 to 15 minutes at busi-
Shipping by truck instead
of parcel van can be cheaper.
A retailer might pay $104 for
“fragile” and spa covers from
Florida-based Prestige Spa.
All require extra space or spe-
Mr. Eaves’s truck trailer is
45 feet long and 96 inches
wide, with room for a single
BY EZEQUIEL MINAYA Navistar and Mr. Ustian failed nesses. A typical United Par- truck delivery of a 110-pound cial handling. layer of 22 standard pallets
to fully disclose the company’s cel Service Inc. delivery, by clothes dryer in a metropoli- “If you’re the seller, you’re which can be double-stacked
Navistar International difficulties in obtaining Envi- contrast, averages about four tan area versus $234 by par- happy. If you’re the guy deliv- if items aren’t fragile or oddly
Corp. agreed to pay $7.5 mil- ronmental Protection Agency shaped. But circular dining
lion to settle charges from the approval of a truck engine tables and fireplaces don’t fit
Securities and Exchange Com- able to meet stricter emission well with industrial cargo.
mission that the truck maker standards that took effect in Heavy gun cabinets require
misled investors about the 2010. According to the SEC, expensive hydraulic lift gates,
ability of a new truck engine the EPA repeatedly raised such or elevators.
in development to meet U.S. concerns in 2011 and 2012. Mr. Eaves can zip in
emission standards. In 2012, Navistar aban- quickly to execute his busi-
Navistar didn’t admit or doned the effort to develop its ness drop-offs, but gated resi-
deny the charges, the SEC exhaust treatment technology dential communities have
said. Separately, the agency after spending hundreds of dead ends and too-tight cul-
DUSTIN THOMAS CHAMBERS FOR THE WALL STREET JOURNAL
charged former Navistar Chief millions of dollars on it. Mr. de-sacs. So he studies Google
Executive Daniel Ustian of Ustian, who had scoffed at the Earth and calls ahead. Techni-
misleading investors and aid- doubts about the company’s cally, he is only required to
ing in the company’s viola- propriety approach to the EPA deposit loads on sidewalks.
tions. That case against Mr. regulation, resigned as CEO a Customers don’t know that.
Ustian is continuing. short time later. It once took an hour to de-
“We believe that it was Navistar has endured heavy liver two 2,500-pound pallets
time to put this matter behind losses in recent years as it of flooring to a house, he
us and that this settlement tries to recover from the said. He got them off his
was in the best interests of costly switch in treatment sys- truck, but to get them up the
Navistar and its stockholders,” tems and widespread perfor- driveway he had to chain
said Lyndi McMillan, a spokes- mance problems with Navistar them to a sport-utility vehi-
woman for Navistar. A repre- engines built from 2010 to cle. He drew the line at deliv-
sentative for Mr. Ustian didn’t 2012. Navistar’s share of the ering 5,000 pounds of tile.
immediately respond to a re- North America heavy-duty The customer’s driveway
quest for comment. truck market has fallen by “was straight uphill,” he re-
The SEC alleged that about half since 2012. Mark Eaves has been delivering more bulk orders to personal residences, including this load of tires. called.
BP prices also is increasing pres-

sure on the industry to control
costs and bring down spend-
ing, ratcheting up the scrutiny
form the work that was billed
to Panalpina. In several in-
stances, it sent invoices for
cargo-handling services at a
parties.” The company fired
the manager of its Azerbaijan
office after an internal investi-
gation, but kept him on as a
about $236 million by the U.S.
Justice Department for bribing
officials in seven countries, in-
cluding Azerbaijan. A Panal-
In May 2014, BP’s ethics de-
partment received a complaint
from Mark Campbell-Roddis, a
BP contractor on the Shah
Continued from the prior page on contracts between oil com- Georgian seaport that other consultant for several months, pina spokeswoman said the Deniz project who had re-
119th out of 168 in Transpar- panies and their service pro- companies had already pro- according to a person familiar company has since hired a new cently resigned. Among other
ency International’s corruption viders. vided, according to the docu- with the matter. Panalpina CEO and chairman and “suc- things, he raised concerns
perceptions index. Over the past 20 years BP ments and people familiar also reported several people to cessfully implemented a new about “blatant attempts at
“Oil companies have for a and its partners—including with the matter. local law enforcement and is corporate culture that empha- profiteering.” When the local
long time showed a willing- Azerbaijan’s state-owned oil The payments raised red sizes compliance.” companies came on board,
ness to operate in environ- company, Socar, and several flags for BP’s compliance de- Infrastructure projects are “that’s when costs went
ments where there is a lot of Western firms—have pumped partment, which worried that
BP has said Shah another source of cost infla- through the roof,” he said.
corruption or conflict or weak around 3 billion barrels of oil money siphoned off from its Deniz’s expansion tion for BP in Azerbaijan, BP has said Shah Deniz’s ex-
institutions,” said Alexandra from Azerbaijan’s Azeri-Chi- logistics operation might be where imports tend to be cost- pansion remains on time and
Gillies, director of governance rag-Deepwater Gunashli field. used to pay bribes, a former
remains on time lier than average due to the on budget.
programs at the Natural Re- BP also is helming a $28 bil- BP manager who worked on its and on budget. country’s landlocked position. Socar referred questions to
source Governance Institute, a lion project to increase pro- projects in the Caucasus told Foreign companies often part- its subsidiaries. Bos Shelf de-
group that advocates for duction from Shah Deniz. the Journal. ner with state-controlled firms clined to comment on behalf of
transparency in commodity in- To keep the oil and gas “You can’t get anything auditing its Bull Equipment to gain access to construction itself and Star Gulf.
dustries. “The profits available flowing, BP frequently imports through customs [in Azerbai- Trading invoices to determine yards and other infrastructure. Saipem is facing a court
seem to outweigh the risks.” pipes, equipment and other jan] without paying off some- whether it owes BP, the person In April 2014, a consortium case in Italy for alleged cor-
Global energy companies supplies. Since 2012, Panalpina one,” the former BP manager said. that included Bos Shelf LLC ruption in Algeria and a sepa-
are facing pressure from has arranged thousands of said. A BP representative said The senior manager, Murad and Star Gulf FZCO—both con- rate Italian investigation into
strengthened anticorruption these shipments. this doesn’t reflect the com- Housseinov, denied any trolled by Socar—and Italian its operations in Brazil.
regulations and stepped-up Documents reviewed by the pany’s position. wrongdoing. He said Bull firm Saipem SpA was tasked Saipem said independent au-
enforcement of bribery stat- Journal show the manager of Azerbaijan’s State Customs Equipment Trading was a le- to build and install two mas- dits found no evidence of cor-
utes, such as the U.S. Foreign Panalpina’s Azerbaijan office Committee denied allegations gitimate subcontractor which sive supports and other infra- ruption in Algeria, and that an
Corrupt Practices Act and the approved hundreds of bills of requiring bribes, and said was regularly audited by structure for Shah Deniz. The internal investigation is under
U.K.’s Bribery Act. Other coun- sent by Bull Equipment Trad- BP and its partners have never Panalpina’s head office. He dis- consortium routinely charged way into the Brazil allegations.
tries have cracked down on ing. People familiar with the complained about illegal fees. puted that he was fired and BP well over the market rate It said its Shah Deniz work “is
once-tolerated practices like situation said Bull Equipment In a statement, Panalpina said he resigned to take the for basic services and key con- delivered under a fully trans-
paying local officials to expe- Trading, which has a Dubai said it was a victim of fraud consulting role. struction work, according to parent contract structure
dite imports of key equipment. bank account and address, is a “conducted by a former sub- In 2010, Panalpina and documents and people familiar where costs are visible to, and
A two-year slump in oil shell company that didn’t per- contractor and other third other companies were fined with the matter. approved by, the client.”
THE WALL STREET JOURNAL. Friday, April 1, 2016 | B3
BUSINESS NEWS
FTC Says Endo

Paid Off Rivals
BY JOSEPH WALKER sidiary of Allergan PLC, to de-
AND AUSTEN HUFFORD lay selling a lower-cost copy of
Endo’s Lidoderm painkiller
The Federal Trade Com- patch.
mission said Thursday it sued As part of these alleged ar-
drugmaker Endo Interna- rangements, Endo paid more
tional PLC, alleging the com- than $112 million to Impax and
pany violated federal antitrust “hundreds of millions” to Wat-
laws by paying hundreds of son, the FTC said. According
millions of dollars to delay ge- to a redacted copy of the com-
neric competition against two plaint posted online on Thurs-
of its biggest drugs. day, “Endo knew that generic
MICHAEL CONROY/ASSOCIATED PRESS

The suit, filed under seal on competition would decimate
Wednesday in U.S. District its sales of the corresponding
Court for the Eastern District branded product and that any
of Pennsylvania, is the latest delay in generic competition
by the FTC to target alleged would be highly profitable for
“pay-for-delay” agreements. In Endo, but very costly for con-
these deals, generic-drug com- sumers.” In 2009, the drugs
panies typically agree to drop generated nearly two-thirds of
patent challenges against Endo’s revenue, the FTC said.
Endo said in a statement A lawsuit seeks to block the FDA’s jurisdiction over a range of new biotech animals under development, such as hornless dairy cows.
that both agreements were
$3.5B
FDA Challenged on GMO Animals
“supportive of a competitive
environment” because they al-
Annual amount the FTC alleges lowed the launch of the ge-
the pacts affecting drug prices neric drugs before the expira-
cost consumers and taxpayers. tion date of Endo’s patents. Environmentalists sue Inc., a unit of Intrexon Corp. crops resistant to bugs and modified trout that adds
“Endo is disappointed by the The fish was the first geneti- herbicides, major food compa- weight faster than conven-
FTC’s decision to initiate litiga- to overturn approval cally modified animal cleared nies are beginning to roll out tional rainbow trout, and is
brand-name drugs and to re- tion,” the company said in a of modified salmon for human consumption. labels denoting GMO ingredi- preparing studies for regula-
frain from launching cheaper statement. “Because the settle- The groups said the FDA’s ents, in response to a Vermont tory review.
knockoffs before a certain date ments complied with all appli- and block jurisdiction regulation of such technology law set to take effect in July. Minnesota-based Recom-
in exchange for payments from cable laws, we believe the FTC’s under the Federal Food, Drug Proponents of the technol- binetics Inc. has been using
the manufacturer of the case is without merit, and Endo BY JACOB BUNGE and Cosmetic Act—overseeing ogy say that adding non-native gene-editing technology to de-
brand-name drugs. intends to vigorously defend it- genetic modification under genes to plants helps farmers velop dairy cattle that don’t
The FTC contends such self in the litigation.” Environmental groups filed provisions covering animal raise sturdier crops using less grow horns, which typically
agreements cost consumers Impax and Allergan are also a lawsuit against the U.S. Food drugs—goes beyond the law’s pesticides. are cut off to ensure the ani-
and taxpayers $3.5 billion an- named as defendants in the and Drug Administration late scope. In the case of the salmon, mals don’t injure workers or
nually by keeping drug prices complaint. Impax declined to Wednesday, challenging the “Congress never intended backers argue that genetic en- one another, a process that
higher than they would be comment. Allergan didn’t re- agency’s authority to approve that law to cover these novel, gineering can help produce fi- has drawn criticism from ani-
otherwise. The suit against spond to requests for com- genetically modified animals man-made, genetically engi- lets using 20%-25% less feed. mal welfare groups.
Endo signals that the FTC con- ment. used for food. neered animals,” said George Critics say that GMO crops The FDA has jurisdiction
tinues to scrutinize pay-for- News of the suit weighed The lawsuit is seeking to Kimbrell, senior attorney for rely on weedkillers that, when over animals genetically engi-
delay agreements amid inten- on shares of Endo, which fell overturn the FDA’s November the Center for Food Safety, used heavily, contribute to the neered for other purposes.
sifying public and political as much as 8.7% on Thursday approval of a modified salmon which filed the lawsuit along development of herbicide-re- The agency in March sought
debate over rising U.S. drug before paring losses to close that grows twice as fast as with Friends of the Earth, the sistant weeds that can choke public comment on a plan by
costs. down 1.5% at $28.15. The com- wild versions, and block its ju- Center for Biological Diversity, out GMO and organic crops Oxitec Ltd., another Intrexon
The FTC alleges that Endo, pany’s stock has fallen 54% risdiction over a range of new and other groups. alike. The groups behind the subsidiary, to test genetically
which is domiciled in Dublin this year amid concerns about biotech animals under devel- An FDA spokeswoman said lawsuit involving the modified mosquitoes in Flor-
and has U.S. headquarters in the impact of debt, legal costs opment, such as a fast-grow- the agency doesn’t comment AquaBounty salmon warn that ida as a pesticide-free way to
Malvern, Pa., agreed in 2010 to and pricing pressure on its ing trout and hornless dairy on pending litigation. GMO salmon could escape and cull populations that could
pay Impax Laboratories Inc. business model, said Liav cows. The legal challenge is the threaten wild salmon popula- carry the Zika virus.
to drop a patent-challenge Abraham, a Citi analyst. The lawsuit, filed in U.S. latest front in an expanding tions, a risk AquaBounty offi- Mr. Kimbrell said the
lawsuit and to delay launching If the FTC wins the suit, District Court for the Northern debate about the use of genet- cials have downplayed. groups’ lawsuit is aimed at
a generic version of Endo’s Endo could be required to pay District of California, accuses ically modified organisms, or Other GMO food animals GMO animals raised for food
opioid painkiller Opana ER. monetary damages and agree the FDA of overstepping its GMOs, in food production. are in the works. production, though it could
The agency also alleges that to restrictions on deals it can authority in approving the In the U.S., where more AquaBounty officials said in “indirectly affect” the FDA’s
Endo agreed in 2012 to pay make with generics companies salmon, developed by than 90% of corn and soybean a February regulatory filing jurisdiction over other modi-
Watson Laboratories, a sub- in the future, analysts said. AquaBounty Technologies acres are sown with biotech that the firm is working on a fied animals.
Effort Launched to Fix Satellites

BY ANDY PASZTOR ient to possible internal mal- on more than a decade of be serviceable,” David Mark-
functions, solar storms and cy- technology development spon- ham, a senior Lockheed Martin
The Pentagon’s research berattacks. The program, sored by the Pentagon and the Corp. space official, told an in-
arm has kicked off a major ef- which revives and expands an National Aeronautics and dustry conference in Pasadena,
fort to partner with industry earlier Pentagon research ini- Space Administration. Calif., last September.
to repair spacecraft in high- tiative dubbed Phoenix, seeks The push reflects growing The most obvious commer-
earth orbit, highlighting esca- to handle commercial and na- concerns among senior White cial benefits will come from
lating worries about potential tional-security satellites. House and Pentagon officials assisting ailing telecommuni-
cyberattacks targeting both that U.S. satellites are vulnera- cations satellites on which so-
military and commercial satel- ble to damage—or could be lar arrays or antennas have
lites.
The plan is for a knocked out of commission al- failed to deploy.
With a projected federal in- robotic arm attached together—as a result of hack- But since announcing the
vestment of about $500 mil- ers, cyberattacks or other hos- program in March, agency of-
lion over the next few years,
to a space tug to tile acts. Darpa’s current ficials have stressed the repair
slated to be matched by hun- make service calls. concept, dubbed the Robotic vehicles also could be used to
dreds of millions of dollars in Servicing Vehicle, could pro- swap out modular payloads, or
corporate funding, it repre- vide an insurance policy to install cameras and sensors
sents the most ambitious bid No corporate partners have keep satellite constellations designed to monitor solar
yet to develop and deploy a been picked yet, and the first functioning. But the ultimate flares, space debris or other
fleet of unmanned space vehi- hardware test in space is still goal, Mr. Roesler said in an in- nearby objects.
cles capable of inspecting, fix- five years away. But the plan terview, is to change the way For commercial satellite op-
ing and even repurposing sat- is to select an industry team satellites are designed and erators and their insurers, the
ellites as they circle Earth. that eventually will build, own flown “to take advantage of program could create an en-
NASA/GETTY IMAGES
Using a federally developed and operate a fleet of servic- this brand-new capability.” tirely new market. Another an-
robotic arm attached to an au- ing vehicles, according to Gor- In the long run, such sys- ticipated result is reduced in-
tonomous space tug proposed don Roesler, who runs the pro- tems could transform strategy surance claims from
to be funded by industry, the gram for the Defense and tactics of military space commercial operators, who
effort aims to perform emer- Advanced Research Projects operations. The central issue would have the opportunity to
gency service calls as a way to Agency, or Darpa. The is how to “design [space] ar- rescue satellites that are now A crew member makes a fix at the international space station.
ensure satellites remain resil- agency’s latest initiative builds chitectures and spacecraft to written off as irreparable. The Pentagon hopes to repair satellites with autonomous vehicles.
Consumers to Take On Cost of Power Plants in Ohio

BY CASSANDRA SWEET jobs, the company’s chief exec-
utive Nicholas Akins said.
Two of the nation’s largest FirstEnergy and AEP have
electricity producers, Ameri- argued that while the utilities
can Electric Power Co., Inc. may lose money on the deals
and FirstEnergy Corp., on now, customers will get money
Thursday won regulatory ap- back on their bills if wholesale
proval in their home state of prices rise in the future and
Ohio to shift the financial bur- the power sales make money.
den of unprofitable power Under the plans, if utilities
plants to consumers. can later fetch certain higher
The Public Utilities Com- prices on the wholesale mar-
mission of Ohio voted unani- ket, they would pass some of
mously to approve plans to the profit on to customers in
have consumers pay extra to the form of rebates.
keep the plants running, over Rival power plant owners
objections from rival power- such as Dynegy Inc. and Ex-
plant owners and consumer elon Corp., however, opposed
TY WRIGHT/BLOOMBERG NEWS
groups, who said the moves the plans. “This is a clear ex-
would raise utility bills and ample of state intervention
hurt competition. that hurts competition, hurts
“The electricity industry as prices and hurts citizens,”
a whole is in a period of tran- Dynegy CEO Bob Flexon said.
sition,” commission chairman He added that Dynegy,
Andre Porter said. “Ohioans which owns several Ohio
should not be alarmed by the power plants, including some
transition.” Ohio regulators agreed to charge customers extra to keep AEP and FirstEnergy plants running. An AEP coal plant in West Virginia. it co-owns with AEP, could
Under the plans, FirstEn- provide Ohioans the same
ergy, based in Akron, and AEP, regulated businesses. cally low levels, the companies erating, Ohio regulators can fetch on the wholesale power for much less money.
based in Columbus, would The utilities will then sell argued that they won’t gener- agreed to allow the companies market. The arrangements will He said Dynegy would con-
have their regulated Ohio utili- that electricity on the whole- ate enough money from ordi- to charge utility customers for run from June this year to tinue fighting the plans
ties buy power from seven old sale market. Because there is a nary electricity sales to keep the shortfall between what the May 2024. AEP’s plan will ben- through state and federal reg-
coal-fired plants and one nu- surplus of electricity in the re- the plants running. companies say it costs to pro- efit consumers, support the ulators and in court, if neces-
clear plant owned by their un- gion and prices are at histori- So to keep the facilities op- duce the power and what they state’s economy and preserve sary.
B4 | Friday, April 1, 2016 THE WALL STREET JOURNAL.
BUSINESS NEWS
BOEING
Continued from page B1
Mexico Unleashes Filling Stations
737 and rival A320 jetliners. Starting Friday, state- plement that of Pemex will
“This should concern us prove crucial for investors ea-
all,” Mr. Conner wrote. “Be- owned Pemex loses ger to get into gasoline retail-
cause if our costs are high, it its exclusive domain, ing, industry officials say.
gives us less pricing flexibility, That will require some $5 bil-
and customers will be forced freeing gas retailers. lion in new investment within
by their own competitive pres- the next five years, said Ms.
sures to take their business BY AMY GUTHRIE Melgar.
elsewhere.” AND JUAN MONTES Three Mexican companies
The aerospace giant’s re- and an American one—whose
newed push on costs starts MEXICO CITY—For the past names haven’t been dis-
with trimming the ranks of eight decades, Mexican drivers closed—have already shown
managers and executives, of- have had only one choice of interest in building fuel pipe-
fering voluntary layoffs, leav- filling stations: state oil firm lines and another three intend
ing open positions unfilled and Petróleos Mexicanos. But to build fuel storage facilities
scaling back business travel. that is going to change in in central Mexico, she said. If
Involuntary layoffs would be a coming months as the coun- the plans work out, private
last resort, if its cost targets try’s first privately branded companies could be responsi-
aren’t achieved, Boeing said. gasoline stations open for ble for about a quarter of
Large cuts to Boeing’s business. Mexico’s refined fuel im-
workforce historically have Starting Friday, Mexico will ports within five years.
come during times of industry allow private companies to Femsa said it would con-
downturn. The company laid import gasoline for the first sider buying gasoline from
off 30,000 in the year that fol- time since the late 1930s, suppliers other than Pemex as
lowed the September 11, 2001, which had since been the ex- the fuel becomes available.
SUSANA GONZALEZ/BLOOMBERG
terror attacks and cut about clusive domain of Pemex. The “We expect that this will be
7,000 jobs during the global fi- market opening paves the way gradual as new infrastructure
nancial crisis. for the country’s existing is developed to import and
In 2016, however, global 11,400 filling stations—which distribute gasoline efficiently
commercial aviation is boom- are all Pemex franchises but into the country,” said Ro-
ing. Airbus and Boeing both independently owned—to link lando Vázquez, director of
delivered record numbers of up with another company. Oxxo Gas.
jets last year, and assembly The changes are part of a The initial focus will be on
lines are preparing for fresh sweeping 2014 overhaul that The shift on fuel retailers will be the most visible result of the country’s energy-sector overhaul. wooing away Pemex franchi-
increases on both single-aisle ended Mexico’s state monop- sees with enticing interna-
and twin-aisle products. oly of the energy sector, al- as Oxxo Gas, named after its agency has fined hundreds of the maximum price. tional brands and additional
Boeing ended 2015 deliver- lowing oil-and-gas firms to ex- chain of ubiquitous conve- stations across the country in There are still big chal- sources of revenue like me-
ing more jets than Airbus, but plore and produce oil directly. nience stores. recent years for shortchanging lenges to overcome. Mexico chanics shops and conve-
the European jet maker cap- But new oil is still years away, Another group of investors customers by pumping less imports from the U.S. more nience stores. Three-quarters
tured 57% of the orders. Air- and low prices have sapped plans to sell gasoline under li- gasoline than what was than half of the 33 million gal- of income at Mexican gas sta-
bus also holds roughly 1,400 some of the initial enthusi- cense from London-based Gulf charged. Pemex has said it is lons of gasoline that it con- tions stems from fuel sales
more orders than Boeing on asm. That leaves gas stations Oil International. Gulf de Méx- working with Mexico’s con- sumes each day. The country whereas in the U.S., three-
its newest single-aisle jets. as a place where drivers can ico will slap the iconic logo on sumer-protection agency to has just six refineries, com- quarters of income comes
While the company sounds notice the changes first. a handful of existing stations inspect stations for violations. pared with 27 in Texas alone, from sales of complementary
the alarm about its market “This is absolutely the most in Mexico’s four largest cities “They never sell you the services such as carwashes.
11,400
share to its employees, it is visible piece of the energy rein coming months and hopes full liter,” complained Elsa Though the Pemex brand
telling investors there is noth- form,” said John Padilla, man- to eventually brand nearly a Herrera, a 50-year-old who has been monolithic, the ser-
ing to worry about. Boeing sent aging director of energy con- quarter of the country’s ser- drives a Mazda SUV around vice station industry itself is
a note to the investment com- sultancy IPD Latin America. vice stations, said Sergio de la Mexico City, and said she no- Number of existing stations in highly fragmented. Two-thirds
munity earlier this week rebut- No oil major has yet said it Vega, Gulf de México’s manag- ticed because at some stations Mexico that will be able to link of Pemex franchisees operate
ting a Goldman Sachs research would enter the Mexican ser- ing partner. it would cost less money to fill up with another company. only one or two stations each,
report that signaled concerns vice-station market, although “Mexico presents a tremen- the tank. She said she is look- potentially putting them at a
about falling prices and declin- Lourdes Melgar, the deputy dous opportunity,” said Mr. de ing forward to being able to disadvantage to negotiate
ing company market share for energy minister for hydrocar- la Vega, 48, who spent de- “choose among more gas sta- and Pemex controls virtually wholesale prices with Pemex
its workhorse 737. bons, said in an interview that cades working as an executive tions and decide who to stick all of the oil and gas infra- or private competitors. In re-
“As clearly indicated by de- at least one was planning to. in Mexico with Glencore PLC, with.” structure like pipelines and sponse, hundreds of station
liveries, the current 737/A320 She declined to identify the the Swiss commodities trader, Motorists could eventually storage facilities. owners have formed regional
market is 50-50.” Demand and company. and with Pemex’s trading arm. see price competition at the The government wants to alliances to become “some-
deliveries for “737 is the least Mexican beverage and retail The competition will be a pump, as the government see investment in new infra- body interesting to flirt with,”
of our worries,” according to company Fomento Económico welcome sight for most Mexi- plans to free up retail prices structure, including more ser- said José Ángel García, presi-
the note reviewed by The Wall Mexicano, known as Femsa, can motorists, who for years in 2018. At present, the gov- vice stations. Locking in a dent of gas station owners’ as-
Street Journal. has rented more than 300 Pe- have struggled with often ernment sets a maximum steady supply of imports and sociation Onexpo.
—Robert Wall mex-franchised gasoline sta- poor facilities and service. amount that stations can setting up a private storage —Dudley Althaus
contributed to this article. tions that it plans to rebrand Mexico’s consumer protection charge per liter, and all charge and distribution grid to com- contributed to this article.
RULES There's No Place Like Home

New Medicare rules will hold some hospitals accountable for the
bundled cost of hip and knee replacements for 90 days. With a
Continued from page B1 typical bundled payment of $27,870, hospitals would lose money if
“comes with tremendous risk patients go anywhere but home.
and complexity for patients
and health-care providers.” Average cost of hip or knee Where patients typically go
Amy Bassano, incoming replacement-surgery package first after the surgery
deputy director of the CMS In- Home Health Skilled-Nursing
Long-Term Care Hospital
novation Center, said, “We feel $74,000 Care Facility
good that hospitals are ready 33% 40%
Inpatient Rehab Facility
to start on April 1.” $41,000
Unlike in some bundle pro-
grams with private insurers, Skilled-Nursing Facility
$36,000
hospitals won’t receive a lump
sum from Medicare to divide Home Health Care
among the participating pro- $20,000
CHARLIZE THERON
viders. Medicare will continue Home
$17,000 Other*
to pay surgeons, physical ther-
2%
apists, rehabilitation hospitals Other
Inpatient Rehab Home
and others involved in hip and $32,000
Facility 9% 16%
knee replacements separately Note: All costs include $12,267 for surgery
on a fee-for-service basis. and inpatient hospital stay *Includes Long-Term Care Hospital
At the end of the year, if all Source: Remedy Partners THE WALL STREET JOURNAL.
those payments average less
than a target price CMS sets make sure the incentives on each hospital’s historic
for each hospital, CMS will aren’t so strong that it comes costs. By the fifth year, how-
pay the hospital the differ- at the expense of patient ever, the targets will be based
ence, provided certain quality care.” on regional averages.
standards are met. If the pay- “It’s very clear. If you can “That could be very tough
ments average more than the go home, you’re better off go- for some hospitals,” said Jo-
target price, the hospital will ing home, and if you can’t go anna Hiatt Kim, vice president
owe Medicare the difference, home, we can say, these for payment policy at the
starting in the program’s sec- skilled-nursing facilities do a American Hospital Associa-
ond year. good job and follow our dis- tion.
Experts say hospitals’ best charge protocols,” said Lou Hospitals that have experi-
chance to stay below the tar- Shapiro, chief executive of the ence with bundled payments
get is to minimize the need for Hospital for Special Surgery in say managing internal costs
postoperative care and dis- New York City, which has been and patients’ expectations is
charge patients directly home participating in a voluntary critical. University of Pitts-
whenever possible. bundled-payment program burgh Medical Center cut its
Currently, about half of hip with Medicare for two years. costs by 2% over two years in
and knee-replacement patients Starting next year, hospitals its hip and knee-replacement
spend time in skilled-nursing can move patients to skilled- bundles, in part, by reducing
homes, rehab hospitals or nursing facilities faster, with- variations in surgical prac-
other “post-acute care facili- out keeping them for three tices and getting patients into
ties,” which adds substantially nights first as Medicare rules “pre-hab” programs to im-
to the cost. Another 33% of now require. prove strength before surgery.
patients get care from home- Only nursing homes with a UPMC’s bundle under the
CLEAN health agencies. Post-acute three-star rating or higher Medicare program will in-
SLATE care makes up more than a

third of Medicare spending on
from CMS will be eligible.
That requirement could dis-
clude post-acute care for the
first time. UPMC has three
joint replacements, studies qualify a substantial number skilled-nursing facilities in its
charlize theron
starts fresh
show. in some areas, the AHCA says. system and five more in a
Officially, hospitals have lit- Some hospitals are con- preferred network. “We be-
tle control over such facilities cerned that the target prices— lieve they’ll be good partners
and patients can choose where which range from about for the future,” said UPMC
to go. But hospital discharge $16,000 to $35,000—don’t chief quality officer Tami
teams can steer patients to fa- take into account the varying Minnier.
cilities that give high-quality, severity of patient conditions The new payment system
WITH THE WALL STREET JOURNAL cost-effective care and keep or socioeconomic factors that could spur more hospitals to
TOMORROW. lengths of stays low.
“The financial incentive will
can affect patients’ ability to
recover at home.
buy up post-acute care facili-
ties or to avoid patients need-
be very strong to shift pa- CMS has set a higher tar- ing longer rehab stays, some
tients into lower-cost set- get—up to $60,000—for hip- observers say.
tings,” said James Michel, se- fracture patients getting joint CMS officials say they will
nior director of Medicare replacements. These patients be watching for such issues,
reimbursement at the Ameri- tend to be older and frailer. as well as signs that provid-
can Home Care Association, Otherwise, officials say the ers are pushing needed fol-
©2016 Dow Jones & Company, Inc. All rights reserved. 3DJ3596
which represents 12,000 post- target prices should account low-up care past 90 days to
acute care facilities. “We’re for most other variables be- fall outside of the time frame
going to watch very closely to cause they are based largely for the payment bundle.
THE WALL STREET JOURNAL. * * * * Friday, April 1, 2016 | B5
TECHNOLOGY @wsjd | wsjd.com
Video Creators Frustrated by Facebook Doerr

They want site to
Gives
Up Kleiner
better restrict clips
re-uploaded from
Perkins
other sources
Partnership
BY STEVEN PERLBERG BY DOUGLAS MACMILLAN
AND DEEPA SEETHARAMAN
Legendary Silicon Valley in-
Filmmaker Brady Haran up- vestor John Doerr is relin-
loaded a video to his science-fo- quishing his partner role at
cused YouTube channel showing Kleiner Perkins Caufield &
what happens when you drop Byers, the venture-capital firm
lithium metal into 7 Up soda. that helped usher in the Inter-
The video, which explains net boom largely because of
the chemistry behind why the his early bets on Google Inc.
liquid fizzes and turns brown, and Amazon.com Inc.
quickly gained steam on Face- Mr. Doerr will take on a
book, accumulating hundreds of new role as chairman of the
thousands of views and reach- firm, focused on recruiting
ing a list of trending topics and coaching its next genera-
alongside Kanye West and Don- tion of leaders, he said Thurs-
ald Trump. The only problem: day. Mr. Doerr will step away
It wasn’t Mr. Haran’s version. from day-to-day management
Mr. Haran and other video of the firm but said he would
makers are growing increas- remain involved with investing
BRADY HARAN
ingly impatient with Facebook in future funds.

concerning “freebooting”— Mr. Doerr can help find new
when clips are taken from You- investments, but he will not
Tube and re-uploaded without Brady Haran has posted videos on YouTube showing what happens when lithium metal is placed in soda. Clips turned up on Facebook. have a vote on the investment
permission from the creator. committee that decides on
The creators, who make fraudulent views potentially needs, and we’re committed to By all accounts, Facebook is ting might affect their bottom deals in any future Kleiner
money when YouTube sells could dilute the money they providing a comprehensive responding, but the issue is line. “Why would anyone go to funds, people familiar with the
ads against their work, say draw from viewers who see video management system,” a that it can take hours or days, YouTube at all if they’re get- matter said. He will also no
this copyright infringement advertising on YouTube. Facebook spokeswoman said. and by then a viral video typi- ting their fill of great videos in longer be legally beholden to
hits them in the pocketbook. Mr. Haran said when he Facebook uses a third-party cally has run its course. their Facebook feed with no the same fiduciary duties as
They have been bombarding files removal requests, “invari- technology called Audible Magic Google’s YouTube, for its idea of where that came partners at the firm, the peo-
Facebook with requests to ably it will be taken down, but that “listens” to videos up- part, faced similar challenges from?” asked Hank Green, a ple said.
take down the offending mate- by then it’s too late.” He said loaded to the site and checks for nearly a decade ago, and popular YouTube creator Kleiner Perkins’ three most
rial, and are tired of the he views freebooting as “the matches against its database, squared off against media giant YouTube creators can earn veteran partners, Ted Schlein,
Whac-A-Mole game. cost of doing business.” but it still misses a lot of con- Viacom Inc. in a seminal 2007 anywhere from hundreds of Beth Seidenberg and Mary
“I have become so jaded by Facebok says it is ramping tent. The rights-management online video case that was set- dollars to millions, depending Meeker, will share leadership
it and exhausted by it,” Mr. up anti-freebooting efforts. It system under development aims tled in 2014. The terms of the on the number of views their of the firm’s investments, he
Haran said. “It’s a bit like your has been testing new rights- to keep up with Facebook’s scale settlement weren’t disclosed. videos receive and the demo- said. Kleiner Perkins currently
house is being robbed and management technology since and pace of sharing. YouTube’s technology is pro- graphics of their audience, is raising a new fund, people
you’re on holiday. You’d al- August with dozens of part- “They are certainly showing prietary, so Facebook engineers among other things. The Wall familiar with the matter say.
most wish you didn’t know so ners, including individual good-faith efforts in terms of are building its rights-manage- Street Journal reported in Mr. Doerr, 64 years old,
you could enjoy your holiday.” video creators and distributors trying to create software to ment system from scratch and 2014 that PewDiePie, the most made himself and Kleiner a
Facebook’s staggering such as Fullscreen and Jukin try to deal with the freeboot- are tailoring it to Facebook’s popular YouTuber, can pull in fortune as one of the first in-
growth in video—users now Media. Those partners can flag ing issue,” said Lee Essner, scale and sharing options, the $4 million in ad sales a year. stitutional investors in Google
watch them about eight billion videos they want to monitor president and chief operating Facebook spokeswoman said. Facebook last year started and Amazon during the dot-
times a day across the social through a Facebook-built dash- officer of Jukin. Facebook also is expanding sharing ad revenue with a few com era. But in the ensuing
network—has made the issue board. Facebook’s system then Under the Digital Millen- the team that responds to take- video companies through a decade, his firm also lost
more pressing for content cre- scours all uploaded videos on nium Copyright Act, the onus down notices, and is removing video-only feed called Sug- money on massive bets in
ators. Though the financial toll the service to find matches. is on creators to flag infring- pages and profiles that repeat- gested Videos, where ads are clean-technology companies
freebooting has taken on cre- “Feedback from our part- ing content to companies, who edly upload pirated content. inserted between videos. Face- such as solar-panel producer
ators is unclear and impossi- ners is essential to creating a are obligated to respond to Some creators, however, are book keeps 45% of the revenue MiaSolé and electric-car
ble to measure, they fear that robust solution that fits their those “take-down requests.” concerned about how freeboo- as is the case on YouTube. maker Fisker Automotive.
Kleiner largely missed the
rise of social media and mo-
Encryption Battle Is Heating Up in Europe

bile technology and had to
play catch-up with later-stage
investments in companies such
as Facebook Inc., Snapchat Inc.
Apple Inc.’s biggest le- They also include a phone has thrown the encryption clash and Uber Technologies Inc.
gal battle with the U.S. gov- used by a man who allegedly into sharp relief. The firm’s early investments
ernment ended abruptly this plotted to attack a church out- Apple used to routinely as- in startups currently valued at
week, but in Europe the fight side Paris last spring, he said. sist U.S. law-enforcement offi- $1 billion or more include
ERIC FEFERBERG/AGENCE FRANCE-PRESSE/GETTY IMAGE
between law-enforcement au- The vast majority of the 40- cials with legal requests to ex- data-storage company Sim-
plus phones are iPhones run- tract data from locked pliVity Corp. and mixed-reality
By Sam Schechner ning newer operating software iPhones. But with the launch startup Magic Leap Inc.
in Paris and that Apple says it doesn’t have a of its iOS 8 operating software In an interview, Mr. Doerr
Daisuke Wakabayashi way to breach, and against in 2014, Apple began encrypt- said he has worked to build a
in San Francisco which police hacking methods ing data on iPhones in a way team of investors at Kleiner
have proved ineffective, accord- that it says it can’t penetrate. Perkins who are well-equipped
thorities and technology firms ing to several European law-en- European police had previ- to lead the firm at a time
over encryption, privacy and forcement officials. ously funneled requests for when the venture business is
security is heating up. “It’s a widespread prob- Apple’s help via the U.S. gov- more competitive than ever.
European police haven’t lem,” said Mr. Gout. ernment, or used hacking tools “It’s easier now than ever
been able to break into more The locked phones in Eu- to open older phones them- to start a new venture and
than 40 encrypted phones in- rope join hundreds of others selves. In emergencies, they harder than ever to build a du-
volved in recent investiga- that federal officials and local appealed to Apple directly, of- rable company,” Mr. Doerr
tions, said a senior law-en- prosecutors in the U.S. say Investigators near Paris after last year’s terrorist attacks. Police ficials said. said. “There is more capital,
forcement official. Some they are trying to access. haven’t been able to unlock an iPhone seized in the French probe. “When authorities asked us entrepreneurs are more dis-
legislators in Europe are push- In at least 63 instances, the for data related to an investi- cerning, more demanding and
ing to compel companies to U.S. government has tried to ment officials say tech compa- privacy and collective security. gation into the Paris attacks, that all makes for more effi-
cooperate with authorities in force Apple and Alphabet nies should have a built-in way The fight has taken on par- we immediately helped and cient, more effective markets.”
unlocking their devices. Inc.’s Google to extract data to retrieve information on ticular urgency in Europe after gave them all the information Mr. Doerr is changing roles
According to another offi- from locked smartphones. their devices, if facing a valid recent terrorist attacks in we had, as we’ve done in many at a time of uncertainty in
cial—Cyril Gout, head of the Manhattan District Attorney legal order to do so, much as France and Belgium, including cases throughout Europe,” tech-startup investing. Ven-
technology-forensics unit of Cyrus Vance Jr. has said his telecom companies do for bombings last week that killed said an Apple spokes- ture-capital funds in the first
France’s national police—the office had 175 iPhones it wiretaps. The tech industry 32 in Brussels. In some cases it woman. She said Apple hasn’t quarter have raised money at
locked devices include an Ap- couldn’t unlock. says that building such a back appears attackers used prepaid received any requests to un- the highest rate in more than
ple iPhone seized in the probe The cases expose a stub- door into tools like the iPhone phones that are relatively easy lock or extract data from 15 years, according to Dow
of the Nov. 13 terrorist attacks born rift in Europe, the U.S. would open them to hackers, to open, police say. But the sei- iPhone related to the Paris or Jones VentureSource, even as
in Paris that killed 130 people. and elsewhere. Law-enforce- endangering both personal zure of some encrypted phones Brussels attacks. some investors have grown
more cautious and marked
down the value of some prom-
Fujifilm’s Instax Camera Is Back in the Picture
APPLE
fails to account for the fact inent companies.
that technological advances Mr. Doerr will keep his
outpace the government’s ef- board seats, which include
forts to stay on top of them. Google, gaming company
Continued from page B1 The FBI’s success in crack- Zynga Inc. and renewable en-
wrong to force them to create ing the phone “is going to last ergy firm Amyris Inc.
new weaknesses in their sys- for about 30 seconds in the “Usually in a tech company
tems that could expose mil- cyberworld…and we’ll be right when someone becomes chair
lions of customers to hacking back to square one,’’ Mr. An- they are kicked upstairs and
or snooping. derson said. that is an exit,” Mr. Doerr said.
If the government ends up He said Washington and Sil- “One thing I hope is very clear
giving Apple the details of the icon Valley needed to avoid is I’m going to spend more
security flaw, the company fighting about specific techni- time on the people and the
could potentially update its cal features that will be out- work I love because my daugh-
software to close off access. dated in weeks or months. ters are off to college.”
The government also will have “Our structure in the govern-
to decide what, if anything, to ment is not designed for to-
tell local law-enforcement au- day’s world,’’ said Mr. Ander-
thorities about the new en- son. “We need to strive to
cryption-cracking technique. have better processes so that
Many local prosecutors say we can communicate faster
they are locked out of phones and more accurately with each
that could hold evidence of other, ’’ he added.
criminal offenses. While federal officials have
Robert Anderson, a former said the review process is de-
DAVID PAUL MORRIS/BLOOMBERG NEWS
GETTY IMAGES
senior FBI official who is now signed to favor disclosing se-

an executive at Navigant Con- curity flaws, the ACLU’s Mr
sulting Inc., said that the more Soghoian, said the process ap-
iPhones could be opened with pears to be skewed toward
the technique, the more likely holding on to secret vulnera-
Fujifilm’s Instax camera is film camera in the fiscal year aging-products division, said in the government would be to bilities for investigative or in-
back in the spotlight after ending March 31, compared an interview. disclose it to Apple. “I don’t telligence-gathering purposes,
nearly two decades, due to an with 1.4 million of its digital The Instax was a star Fujif- think they would hide it and rather than sharing them so
analog revival, especially cameras. ilm product before the rise of jeopardize millions of people’s the flaws can be fixed. That
among young buyers. “We aim to sell at least 6.5 digital cameras, and the com- safety and privacy,’’ he said. approach, he said, might pay
Fujifilm Holdings Corp. million instax cameras next fis- pany sees it as a way to help Mr. Anderson added, how- off for the government in the John Doerr will take on a new
said it expects to sell a record cal year,” Go Miyazaki, director keep film culture alive. ever, that much of the discus- short term but do more harm role as chairman, stepping away
5 million units of the instant- in charge of Fujifilm’s photo im- —Megumi Fujikawa sion of the Apple-FBI fight over time. from day-to-day management.
B6 | Friday, April 1, 2016 THE WALL STREET JOURNAL.
BUSINESS NEWS
McDonald’s to Expand Reach in China

Fast-food giant seeks gain consumers’ trust, industry needs. McDonald’s hopes to
watchers say. make China the company’s No.
investment partner “It isn’t getting back more 2 market, said Mr. Easter-
to help build out its loyal customers,” said James brook, up from the third-larg-
Roy, associate principal at the est now behind the U.S. and
franchise business Shanghai-based consultancy, Japan.
China Market Research. In the next five years,
BY LAURIE BURKITT McDonald’s said last year it McDonald’s will open at least
was closing 350 restaurants in 250 restaurants a year in the
BEIJING—McDonald’s Corp. China, Japan and the U.S. country and boost the rate of
is adding more than 1,000 res- Ninety of those were in China. its franchised outlets beyond
taurants in China despite a Chinese consumers are also 30%, closer to the U.S. rate of
rough recent history in the increasingly health-conscious 90%, he said.
country, joining a number of and skeptical of fast food. Outside its more mature
companies that have made In addition, Western chains markets, McDonald’s has
bullish bets on Chinese con- face more competition from largely relied on a costlier
sumers. Chinese fast-food rivals. In a model of operating its own
The Oak Brook, Ill., com- survey of 10,000 consumers restaurants to oversee their
KIN CHEUNG/ASSOCIATED PRESS

pany is hunting for an invest- across China, 51% said they quality and growth.
ment partner to help build out consumed Western fast food in McDonald’s operated all its
its franchise business in China, 2015, down from 67% in 2012, restaurants in China for more
and plans to add 1,300 restau- according to consultancy than two decades, but turned
rants to its current 2,200 over McKinsey & Co. to franchising in the
the next five years, it said McDonald’s is launching mid-2000s as China stream-
Thursday. healthy menu items in its lined franchising rights.
The fast-food company is China restaurants this year, Under Mr. Easterbrook,
betting that population growth McDonald’s is betting that population growth and urbanization rates will continue to propel sales. like apple slices, veggie cups McDonald’s has been overhaul-
and urbanization rates will and multigrain muffins, Mr. ing its U.S. business, selling
continue to propel sales even meals will stay strong. “For ev- casual-dining sectors. Star- McDonald’s expansion plans Easterbrook said. He said more restaurants to franchi-
as China’s economy slows, said eryday affordable spends like bucks Corp. aims to open 500 in China come after a bumpy McDonald’s has assured con- sees.
Chief Executive Steve Easter- us, we’re confident in the con- stores in China a year for the few years for its Chinese sales sumers of its quality and has Now it is turning to the in-
brook in an interview. sumer,” he said. next five years, while Adidas following problems with one of been regaining customers. ternational market, aiming for
He said that while larger McDonald’s expansion plans AG is planning to add 3,000 its suppliers in 2014 left some Compared with Chinese ri- 95% of its outlets world-wide
discretionary items are taking mirror those of several other stores in China over the same of its restaurants without vals, McDonald’s and Yum to be franchised, which would
a hit amid the slowdown, multinationals, especially in period for a total of 12,000 chicken or hamburgers. Brands Inc. have been slow to entail selling 4,000 restaurants
smaller splurges like fast-food the entertainment, sports and stores. It is still struggling to re- adapt to Chinese consumers’ to franchisees by 2018.
Diageo Yields to Scotch Group on India Whiskey Brands

BY SAABIRA CHAUDHURI body for Scotch. brand sells at far higher prices. keep selling McDowell’s and new name for McDowell’s world’s 11th-largest whiskey
The bulk of the two whiskey The deal comes as the SWA Bagpiper whiskeys under their would be. brand, according to IWSR.
LONDON—Diageo PLC has brands at issue is sold in India, has been cracking down on original names in India. “When you have a major The brand at first featured
succumbed to pressure from with just 2.6% of McDowell’s whiskey makers in India that “It is understood that Mc- member, you take what you a Scottish bagpiper on its la-
the Scotch Whisky Association No. 1 and 0.3% of Bagpiper sell whiskeys purporting to be Dowell’s and Bagpiper have a can get,” said one person who bel, but United Spirits eventu-
to change what its highest-vol- sold abroad, according to in- Scotch. reputation locally as Indian has been familiar with Diageo’s ally changed the drawing to
ume whiskey brand is called in dustry tracker IWSR. In response to a motion brands,” said a spokesman for interactions with the SWA one of an Indian bagpiper.
markets outside of India, be- Made by Diageo’s India from the Scotch body, an In- the SWA. “The situation is over the years. “It’s not double That was a partial concession
cause of concerns that custom- business, United Spirits Ltd., dian court late last year ruled clearly different in markets standards, it’s achieving what’s to the SWA, which was un-
ers could confuse the spirit McDowell’s No. 1 is the world’s that three Indian companies outside India where the brands possible.” happy with the Scottish associ-
with Scotch, according to peo- second-largest whiskey brand couldn’t label their locally aren’t well known.” The McDowell’s name traces ation evoked by the initial im-
ple familiar with the matter. by volume behind a rival In- made whiskeys as Scotch. The SWA spokesman added its roots back to Scotsman An- age, according to a person
Diageo will rename McDow- dian whiskey brand, Officer’s The court also prohibited that the body’s conversations gus McDowell, who in 1826 es- familiar with discussions at
ell’s No. 1 outside of India, in Choice, according to IWSR. them from using words, with Diageo on the matter had tablished a Chennai-based the time.
markets such as Abu Dhabi, Roughly 25 million 9-liter names, images or other de- been “helpful and positive.” trading company importing li- Diageo has previously indi-
Dubai and Nigeria. cases of McDowell’s No. 1 vices that could evoke Scot- Diageo confirmed the agree- quor and cigars that eventually cated it plans to distribute
The world’s largest spirits whiskey were sold in 2014. land or Scotch whisky unless ment with the SWA and said it became United Spirits. Mc- United Spirits’s brands more
maker has also agreed to end That compares with just under the spirit being sold is genuine would work through a transi- Dowell’s No. 1 whiskey was broadly internationally, and
exports of Indian whiskey 19 million cases of Johnnie Scotch. tion period to remove the launched in 1968. that it planned to use lessons
brand Bagpiper as part of its Walker, Diageo’s flagship But the SWA is allowing Scottish references outside In- Bagpiper has been sold in from United Spirits in other
deal with the SWA, the trade Scotch whisky, though that Diageo, its biggest member, to dia, but it didn’t say what the India since 1976 and is the emerging markets like Africa.
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.
0s 1 2 3 4 5 6 7 8 9 10 11 12 13 70 In ___ to the PUZZLE
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GLOBAL FINANCE C3 | IN THE MARKETS C4 | MARKETS DIGEST C5
MARK LENNIHAN/ASSOCIATED PRESS
Bank Squeeze
MetLife Fallout In Oil Patch
HEARD ON
Government officials weighing an appeal INSURANCE | C2 THE STREET | C12
© 2016 Dow Jones & Company. All Rights Reserved. * * * * THE WALL STREET JOURNAL. Friday, April 1, 2016 | C1
DJIA 17685.09 g 31.57 0.18% S&P 2059.74 g 0.20% NASDAQ 4869.85 À 0.01% 10–YR. TREAS. À 13/32, yield 1.784% OIL $38.34 À $0.02 EURO $1.1381 YEN 112.58 See more at WSJMarkets.com
IPO Market Hot Metal

Gold started 2016 with its
biggest gain in 30 years,
showing that concerns
Flashes Red persist about the economy

and markets.
Gold futures
$1,400 a troy ounce
For Stocks 1,300
1,200
First quarter was slowest period for initial 1,100

offerings, in deals and money raised, since 2009
1,000
BY CORRIE DRIEBUSCH but it’s hard to envision both 2016
AND MAUREEN FARRELL conditions peacefully coexist-
ing,” said Jack Ablin, chief in- Net bets that the price
The U.S. stock market has vestment officer at BMO Pri- of gold will rise or fall
taken off, but it has left be- vate Bank. 150,000 contracts
hind an important passenger: Meanwhile, the market en- WILL
the IPO. vironment could portend more 100,000 RISE
Major stock indexes have pain for investors in private
gained about 13% in the past technology companies who 50,000
seven weeks and are now in have bought in at valuations
positive territory after a that likely can’t be reached in 0
swoon early in the year. The the public markets in the near
WILL
market for initial public offer- term. FALL
50,000
ings, however, is in its slowest Nine deals raised a com-
period since the first quarter bined $1.2 billion in the quar- 2016 A mine worker stirs molten gold in a furnace
of 2009, both in terms of num- ter, the smallest amount since
ber of deals and total money two IPOs pulled in $830 mil- Sources: FactSet (prices); U.S. Commodity Futures Trading Commission (net bets) Photo: Simon Dawson/Bloomberg News THE WALL STREET JOURNAL.
raised, according to data pro- lion in the first quarter of
Gold’s Gain Is Biggest in Decades

vider Dealogic. 2009. Of the five companies
Analysts and traders warn that made their debuts after
that the second quarter may U.S. stocks hit their low for
not bring much relief. the year on Feb. 11, two ran
The sharp divergence is into trouble. The other three BY IRA IOSEBASHVILI 1986. Holdings at SPDR Gold up and the dollar surged. Even
puzzling investors, who figure were for blank-check, or shell, Shares, the world’s largest so, many investors remain Quarterly Report
the two should move in the companies, which typically use Gold prices notched their gold-focused exchange-traded skeptical that gold will go Only earnings growth can
same direction. They said if IPO proceeds to acquire assets largest quarterly gain in three fund, are approaching their much higher unless the global lift stocks now, but don’t
the pace of IPOs doesn’t accel- and aren’t seen as a barometer decades, showing that worries highest level since December outlook dims considerably. hold your breath................. C9
erate, it could be a warning of entrepreneurial risk. about the markets and econ- 2013, while traders are placing “This is one of the most
sign for the rally, a signal that Clinical stage cancer-treat- omy continue despite a six- more bets on rising prices. surprising gold rallies I have Cheap oil shifts investor
investors haven’t fully re- ment company Syndax Phar- week-long rally in stocks, The rally is a rare bit of ever seen,” said Ira Epstein, a favor toward the thriftiest
gained their appetite for risk. maceuticals Inc., priced its of- bonds and commodities. good news for a metal that has strategist at the Linn Group drillers.................................... C10
“Either the IPO market is fering below expectations at Gold prices rose 16.5% in been in retreat for much of the who has been trading gold for Emerging markets get a
going to pick up, or the stock $12 a share on March 2, rais- the first three months of the past five years, a period when 40 years. long-awaited break......... C11
market is going to pull back, Please see IPO page C2 year, the biggest leap since U.S. economic activity picked Please see GOLD page C11
15,000 Layoffs? How a Bust in China Became the West’s Suffering

On one level, explaining free money and misguided in- construction created what with the inevitable slowdown.
Diminishing Returns how the party of Margaret vestors. As the bubble now looked like a never-ending The result has been that
Emerging markets have had an investment boom, focused on China. Thatcher came to consider—if deflates, governments are do- source of demand for cement after-tax return on assets for
But the flood of new investment has driven down returns to match only for a day—nationalizing ing everything they can to and steel, in particular. listed emerging-market com-
developed countries. the country’s biggest steel shift the pain away from their Another wave of cash fol- panies has dropped to match
plant is easy. voters. Port Talbot may be lowed the 2008 recession. that of developed countries,
Investment as a Return on assets for About 15,000 one of the biggest examples China forced its banks to despite emerging markets
percentage of GDP nonfinancial listed companies
British jobs so far, but it surely won’t be lend, and the Federal Reserve having far higher institutional
40% 10.0%
are at risk if the last. started quantitative easing, and political risks, as Gerard
Tata Steel It started sensibly enough, spilling money into emerging Minack of Sydney, Australia-
can’t find a with China joining the World markets more widely. based Minack Advisors points
30 7.5
STREETWISE buyer for its Trade Organization on Dec. 11, The boom ended the way out. Emerging-market compa-
JAMES heavily 2001. Lower tariffs allowed investment booms usually do. nies are averaging 3.3%,
20 5.0 MACKINTOSH money-los- its exporters to take advan- The availability of easy against 3.4% for developed.
ing Port Tal- tage of the pool of educated money in a fast-growing While both are down amid
bot plant in but cheap local workers, economy meant almost any weak global growth, the fig-
10 2.5 South Wales. helped by a wave of new in- investment looked good—un- ure in emerging markets has
But this is really a markets frastructure and foreign cash. til suddenly it didn’t. As more slumped from almost 10% be-
story. And thus it begins with Global manufacturers rushed investment went in than fore Lehman Brothers col-
0 Annual data 0 Monthly data the boom in emerging mar- to shift production to China. China and other emerging lapsed, against a precrisis
kets during the 2000s. Heavy industry inside China economies could profitably peak of 6% for developed
’95 ’00 ’10 ’95 ’00 ’10
Sources: International Monetary Fund (investment); That boom was turned into attracted a flood of capital, deploy, much went to waste- markets.
Thomson Reuters Datastream (return on assets) THE WALL STREET JOURNAL. a bubble by the interplay of while housing, road and rail ful projects unable to cope Please see STEEL page C3
Jobs Picture Brightens for Now

BY STEVEN RUSSOLILLO around 5% if the participa-
Back to Work tion rate ticks up by another
First, the good news. Af- Civilian labor-force- half of a percentage point,
ter years of declines, more participation rate according to a model main-
Americans are finally getting tained by the Federal Re-
back to work. 68% serve Bank of Atlanta.
The bad news? The recent But if the participation
66
uptick in the labor-force-par- rate levels off—a more likely
ticipation rate 64 scenario as baby boomers
AHEAD OF isn’t expected age—the unemployment rate
THE TAPE to last. And 62 would fall to 4.2% in 12
that could put months. The economy hasn’t
additional pres- 60 witnessed that since the tech
sure on the Federal Reserve bubble in 2000.
LINN ENERGY
58
to tighten monetary policy And if the participation
faster than many anticipate. 1970 ’80 ’90 ’00 ’10 rate resumes its decadeslong
The participation rate Source: Labor Department descent by half of a percent-
measures the share of the ci- THE WALL STREET JOURNAL. age point, the unemployment Investors poured billions of dollars into energy MLPs like Linn Energy. Above, one of its operations.
vilian population 16 and rate would fall to 3.4%. That
older either working or look-
ing for a job.
After falling to 62.4% in
September, the lowest since
tion in Friday’s jobs report,
where economists estimate
213,000 nonfarm payrolls
were added in March, with
hasn’t happened since the
late 1960s.
Under the latter two sce-
narios, there would be much
Tax Pain From MLPs Worsens
the 1970s, the participation the unemployment rate hold- less slack in the labor mar- BY LAURA SAUNDERS they were getting into when parent.
rate has ticked higher, hit- ing at 4.9%. ket. Couple that with histori- they poured billions of dollars The swap will let those in-
ting 62.9% in February, the Consider three scenarios cally low interest rates and Investors learned the hard into master limited partner- vestors avoid a tax bill for
highest in a year. over the next 12 months in that means inflation fears way that energy MLPs—set up ships before the oil bust. their share of the forgiven
On the surface, an in- which the participation rate could become a reality. to shield companies from Un- The implications are getting debt, which counts as a gain.
crease of one half of a per- goes up, levels off or falls With the economy already cle Sam—could have unex- a test case in Linn Energy. But there is a catch. Investors
centage point doesn’t seem from today’s level, all assum- near full employment, partic- pected tax consequences when When the Houston-based oil- who exchange their Linn MLP
like much. But its impact on ing an average of about ipation arguably matters times get tough. and-gas producer announced units for shares could trigger
more widely known employ- 200,000 monthly job gains. more now than ever. Now, they are finding out plans to restructure its debt another tax hit, because the
ment measures is stark. And By March 2017, the unem- that efforts to escape those ef- on March 22, it offered its swap counts as a sale, accord-
it deserves plenty of atten- ployment rate would remain Email: tape@wsj.com fects could have tax conse- 350,000 investors a deal many ing to Robert Willens, an inde-
quences of their own. will likely jump to accept: pendent tax expert based in
INDEX Commodities.................................................... C7 Dividend News............................................. C12 Global Finance................................................. C3 Mutual Funds........................................... C6 Sound complicated? It is, swap their units in the MLP New York.
Bond Tables............................................. C12 Credit Markets............................................. C12 Exchange-Traded Funds......................... C6 Heard on the Street................................. C12 New Highs & Lows............................... C4 and it is another sign investors for an equal number of shares “The question is,” Mr. Wil-
Cash Prices................................................. C7 Currency Trading.......................................... C5 Finance Watch................................................ C2 Money Rates.................................................... C7 Stock Listings........................................... C6
didn’t fully understand what in LinnCo, the firm’s corporate Please see MLPS page C2
C2 | Friday, April 1, 2016 * *** THE WALL STREET JOURNAL.
MONEY & INVESTING
Fed Pulls MetLife Overseers

BY RYAN TRACY released from Fed supervision, Oversight Council, the body of no longer has legal grounds to
Deal Deficient
U.S. initial public offerings have slumped in the first quarter of this year.
IPO deal value Number of deals

saying it has sufficiently senior regulators that desig- regulate MetLife, the largest $40 billion 80
WASHINGTON—The Federal shrunk its financial-services nated MetLife for oversight, life insurer in the U.S. with
Reserve removed its supervi- arm so it would no longer should have considered the about $878 billion in assets,
sors from MetLife Inc. offices pose a systemic threat to the costs and benefits of subject- even though senior regulators 30 60
after a judge rescinded federal financial system. GE previ- ing MetLife to tighter rules had determined that its failure
oversight of the insurer the ously had said that it would before deciding to do so. could pose a threat to the 1Q:
day before, leaving the Obama try to appeal its designation The government has argued economy. 20 $1.2B 40 1Q: 9
administration scrambling to as systemically important in that it “appropriately de- The Federal Reserve Bank
salvage one of its key postcri- the first quarter. clined” to conduct an analysis of New York, whose team of
sis accomplishments. Meanwhile, new details because the 2010 Dodd-Frank MetLife supervisors had been 10 20
Administration officials are emerged of the ruling that U.S. law, which set up the council spending part of its time at a
weighing whether to appeal District Judge Rosemary Col- and gave it authority to desig- specially built office inside the
before a 60-day deadline and lyer placed under seal. While nate systemically important firm’s New York headquarters,
0 0
are widely expected to do so. only a two-page order was firms, doesn’t explicitly re- pulled its people from the
Some of MetLife’s rivals, in- made public, the sealed 33- quire it. firm. 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16
cluding American Interna- page document references a Financial regulators have Officials declined to com- Source: Dealogic THE WALL STREET JOURNAL.
tional Group Inc. and Pruden- June 2015 Supreme Court de- been criticized by the financial ment Thursday, but on
tial Financial Inc., are
discussing whether to seek to
remove themselves from Fed
oversight, according to people
cision on regulatory cost-ben-
efit analysis, according to a
person familiar with the mat-
ter.
industry for not considering
the cost of their rules. In gen-
eral, Obama administration of-
ficials have said the benefits
Wednesday a spokesman for
Treasury Secretary Jacob Lew,
who heads the council, prom-
ised that “we will continue to
IPO at Morgan Stanley.
While companies typically
debut at a price 10% to 15%
below their publicly traded
familiar with the matter. Part of the opinion cites the of preventing a future finan- defend the council’s designa- Continued from the prior page peers, the first companies out
The MetLife decision, and case of Michigan v. Environ- cial crisis are difficult to quan- tions process vigorously.” ing just under $60 million, and of the gate in this environ-
possible ripple effects, call mental Protection Agency, ac- tify, but substantial. The opinion includes “both fell below its offer price on its ment could be forced to take
into question the durability of cording to the person. That Wednesday’s order from procedural and substantive first day of trading, a sign of much steeper cuts of possibly
federal regulators’ moves in decision, penned by the late Judge Collyer surprised many components,” MetLife Chief lackluster investor demand. 25% to 30% and would likely
recent years to extend their Justice Antonin Scalia, found in the regulatory community, Executive Steve Kandarian Small biotechnology com- need to sell a smaller portion
supervision to the largest U.S. the EPA acted unreasonably who hadn’t expected the judge said in an interview Wednes- pany Corvus Pharmaceuticals of their shares, some bankers
insurance firms by labeling when it didn’t consider cost in would take such a drastic step day. Inc. priced at the low end of said.
them “systemically important making a regulatory decision. despite her tough questioning He declined to discuss fur- its range on March 22 and In the past 20 years, tech
financial institutions” subject By invoking the EPA case, of government lawyers at a ther details. closed below its offer price on companies have accounted for
to stricter oversight. the MetLife opinion portends hearing last month, people fa- —Ted Mann its debut and has remained about a fifth of the IPO mar-
On Thursday, General Elec- a battle over the extent to miliar with the matter said. and Emily Glazer there. On Wednesday, Syndax ket, according to Dealogic. Be-
tric Co. formally asked to be which the Financial Stability The ruling means the Fed contributed to this article. closed above its offer price, sides one small Chinese com-
while Corvus finished below. pany, no other tech company
Another sign of how bad has listed in the U.S. since At-
Climate Financial Risks Examined

the market has been: Issuers lassian Corp.’s IPO in mid-De-
withdrew more than twice as cember. It is trading 20%
many IPOs as they pulled off above its IPO price as of
during the quarter, according Thursday’s close. But Atlas-
BY GABRIELE STEINHAUSER to Dealogic. “It’s kind of un- sian, which makes software-
precedented for the general development tools, is one of
BRUSSELS—Regulators stock market to be so close to the rare tech firms that
around the globe are research- record highs and yet so little funded its growth largely
ing potential risks to financial IPO activity,” said Jay Ritter, through its own profits.
stability from a failure to con- professor of finance at the Some high-growth tech
tain climate change or a sud- University of Florida. startups, including Etsy Inc.
den collapse in the value of Markets had opened the and Box Inc., remain below
fossil-fuel assets. year with a rout amid con- their IPO prices.
Institutions such as the cerns about weakening growth The discount between the
Bank of England, Financial Sta- in China, the Federal Reserve’s private-market valuations and
bility Board and European Sys- decision to raise interest rates what public investors might
temic Risk Board are examin- and a sharp drop in oil prices. pay also has been weighing on
ing how banks, insurers and Issuers want to sell into rising tech firms. Some of the most
pension funds would cope if markets, and they and their high-profile IPOs that debuted
policies designed to reduce bankers shy away from volatil- in 2015, including Box and
JIM RICHARDSON/CORBIS
carbon-dioxide emissions led to ity that can make outcomes Square Inc., sold shares below
a sharp drop in the share price unpredictable. the valuations used to price
of oil, gas and coal companies. Several big-name compa- private fundraising rounds.
They are looking at new nies are waiting in the wings There have been some
rules to disclose exposures to to go public, including Bats hopeful signs. Market volatil-
both stocks and bonds in such Global Markets Inc., US ity has eased significantly,
companies, conducting “stress A strip mine in Arizona. Regulators are assessing financial risks from the fall in fossil-fuel prices. Foods Holding Corp. and which makes for a more at-
tests” based on different cli- Albertsons Cos. tractive environment for pub-
mate scenarios or even requir- fossil-fuel companies and nerabilities in the financial sys- risks associated with them. “There remains significant lic offerings. Ms. Deignan said
ing additional capital buffers. broader economic problems tem linked to climate change. Estimates used by the Euro- questions about the health of she has seen an increase in in-
The regulators’ concerns caused by energy shortages. In response, the FSB set up pean Systemic Risk Board sug- the economy and the equity vestors asking the bank about
rest on scientific assessments “A wholesale reassessment an industry task force that is gest that banks, pension funds market, and both are potential the status of companies in the
that much of the world’s of prospects, especially if it working out standards for and insurers based in the Eu- threats for the IPO market,” IPO pipeline.
known fossil-fuel reserves were to occur suddenly, could companies to disclose their ex- ropean Union hold more than said Mary Ann Deignan, co- In addition, this year’s IPOs
would have to stay under- potentially destabilize mar- posure to climate risks. Its first €1 trillion (about $1.13 trillion) head of global equity capital now are trading on average
ground if governments want kets, spark a procyclical crys- report will be published Friday. in equity and debt of fossil- markets at Bank of America 23% above their offer prices.
to limit global warming to tallization of losses and a per- “If we don’t get the policy fuel companies and that major Merrill Lynch. And there is scarcity value.
two-degrees Celsius above pre- sistent tightening of financial environment right today, it stock indexes could fall as What is needed to grease Any company that isn’t a bio-
industrial levels. conditions,” Mark Carney, gov- won’t just be the shareholder much as 20% if assets are re- the skids for the IPO market, tech firm or a blank-check ve-
If they aim to contain aver- ernor of the Bank of England, of insurance companies and valued in line with a two-de- bankers said, is the successful hicle would likely get signifi-
age temperature increases to said in a recent speech. banks who will regret this,” gree scenario. debut of a stable, mature and cant attention from IPO
1.5 degrees, as set out in an in- Mr. Carney, who also pre- said Steve Waygood, chief re- WSJ PROMOTION profitable company. investors, said James Palmer,
ternational climate deal sealed sides over the Financial Stabil- sponsible-investment officer “The companies that are head of equity capital markets
in Paris in December, the car- ity Board, an international at the investment arm of U.K. likely to test the strength of for the Americas at UBS
bon budget would shrink even
more.
body that monitors risk in the
global financial system, has
insurer Aviva PLC and one of
the task force’s members.
FINANCIAL REGULATION the market in the near term
will need to accept a slightly
Group AG.
The return to a normal IPO
That has triggered fears emerged as one of the leading Because there are no uni- In-depth news, analysis higher IPO discount than they market will be “evolutionary,
that a poorly managed switch voices in the debate on climate fied disclosure rules, it is diffi- and interactives otherwise would in a typical not revolutionary,” said David
to less-polluting energy risk. Last year, the Group of 20 cult to put a number on finan- new-issue market,” said Paul Ludwig, co-head of equity cap-
sources, such as solar or wind major economies asked the cial companies’ exposures to Subscribe at wsj.com/pro/finreg Donahue, head of equity capi- ital markets in the Americas
power, could cause selloffs of FSB to scope out potential vul- carbon-heavy assets—and the tal markets in the Americas for Goldman Sachs Group Inc.
MLPS The company said it be-

lieves many investors may
benefit from the swap. Other-
counts are expected to receive
offsets as a result of the Linn
deal that minimize or wipe out
Finance
with tough financial choices af-
ter three years of sliding crop
prices, will try to grow their way
REGULATION
Japanese Banks Hit
Continued from the prior page
wise, forgiveness of $1 billion,
$3 billion or $5 billion of debt
the ordinary income.
Investors holding Linn units Watch out of the industry’s slump.
Corn typically yields a bigger
Global Risk Rule
The head of Japan’s most
lens said, “which is worse?” would yield $2.83, $8.50 or in an individual retirement ac- crop per acre than soybeans and prominent banking association
Investors in other MLPs $14.17 of taxable income per count or Roth IRA also could wheat, so growing more would said global regulators’ proposal
soon could face similar unit. face tax bills on the exchange help counter some of the lower for a tougher, uniform method
choices. The energy partner- The rub is the exchange of of units for shares. To prevent crop prices that are expected to of assessing risk could limit
ships are structured to avoid units for shares counts as a abuses, the law imposes a spe- COMMODITIES more than halve U.S. farm in- banks’ lending capacity, hindering
corporate income taxes by sale, and the sale of partner- cial levy on certain partner- come this year from its peak in the efforts of governments and
passing much of their tax bur- ship units is far more complex ship income if the total in all
Plantings of Corn 2013. The U.S. Department of central banks to spur growth.
dens along with the bulk of than the sale of regular stock. IRAs exceeds $1,000 a year. To Top Expectations Agriculture estimated U.S. farm- Last week, the Basel Commit-
their earnings through to in- For example, it can trigger a Even if investors holding MLPs Struggling U.S. farmers this ers would sow 93.6 million corn tee on Banking Supervision pro-
vestors. That arrangement “recapture” of benefits that in- in an IRA haven’t owed this year will sow their fields with acres, up from about 88 million posed a plan to prohibit lenders
worked well when oil and gas vestors already have received levy on their annual payouts, a extra corn in a gamble to coun- last year and well above ana- from using internal models to
prices were rising. sale of units could come with a ter sliding prices by selling even lysts’ forecast of 90.05 million calculate credit risk toward fi-
But with prices low and tax, Mr. Greenwald said. Capi- more of the grain. acres. nancial firms, equities and large
some MLPs nearing a restruc-
Investors face being tal losses within an IRA aren’t Global grain bins already are The agency’s quarterly report corporations.
turing or bankruptcy, investors left with units that deductible, he said. brimming, but federal forecast- on U.S. grain inventory said The plan calls for banks to
face the possibility of being While many IRA owners are ers on Thursday projected corn stockpiles on March 1 to- adopt a standardized method
left with units that have lost
have lost value and unaware of these rules, IRA larger-than-expected plantings of taled 7.81 billion bushels, up set by the committee.
value and a tax bill as well, a a tax bill as well. custodians are charged with corn this spring. from 7.75 billion bushels a year Other areas in which banks
double hit that has surprised enforcing them—and some are The projections show that earlier. still would be allowed to use in-
many investors. watching more closely than many U.S. farmers, grappling —Jesse Newman ternal methods to calculate risk,
“MLP investors never had in their annual tax-deferred they have in the past. Last such as on residential mort-
any clue that events like payouts for things like deple- year, custodian firm Pershing gages, also would require higher
forced restructurings or can- tion and depreciation. Inves- filed tax forms for about 5,000 capital levels.
cellation of debt would trigger tors who exit from a partner- investors holding Kinder Mor- Takeshi Kunibe, newly ap-
taxes that would take away a ship also must take into gan Energy Partners in IRAs pointed chairman of the Japa-
chunk of their capital,” said account their units’ share of after its 2014 restructuring. nese Bankers Association, said
Charles Carignan, a retired in- its liabilities. Fidelity Investments has an- in a recent interview that Japa-
vestment broker and longtime At worst, an investor who nounced additional oversight nese banks could be among
MLP investor in Naples, Fla. opts for Linn’s offer could face of partnerships in IRAs for those hurt most by such rules
Mr. Carignan himself owed a both ordinary taxable income 2016. because they use internal meth-
hefty tax bill after the reorga- due to recapture and a capital “Each investor has a very ods to gauge credit risk more
nization of Kinder Morgan En- loss, because of a steep decline different situation, and decid- than most global lenders.
ergy Partners in 2014, though in the value of the units, that ing the best course can mean He said that the Basel
not from debt forgiveness. can’t be used to offset it, said consulting years of records method “could lead to excessive
SETH PERLMAN/ASSOCIATED PRESS
Linn’s MLP investors al- Michael Greenwald, a partner- and making complex calcula- capital requirements.”
ready are feeling the sting of ship tax expert with Friedman tions,” Mr. Greenwald said. “It depends on how it’s com-
debt forgiveness. LLP, a New York accounting The deadline for Linn’s ex- pleted….But I’m concerned about
The company negotiated $1 firm. change offer is April 18, which tighter regulations leading to an
billion worth of debt reduction Linn’s information for in- is also the income-tax deadline increase in banks’ risk assets
in November, and the gain was vestors acknowledges this pos- for most Americans this year. and therefore, boosting banks’
passed along to investors on sibility, though a person famil- So Linn investors who need cost of capital,” said Mr. Kunibe,
their K-1 tax statements for 2015. iar with the mechanics of the help will be seeking it when who also is the president of
The company’s current swap is deal said most investors hold- tax professionals already are Sumitomo Mitsui Banking Corp.
designed to avoid a repeat. ing Linn units in taxable ac- swamped. Farmers deposit corn outside a full grain elevator in Virginia, Ill. —Atsuko Fukase
THE WALL STREET JOURNAL. Friday, April 1, 2016 | C3
GLOBAL FINANCE
S&P Cuts China’s Rating Outlook STEEL
Continued from page C1
Firm says efforts to China’s official economic “Slower growth of China is The Chinese government
growth rate last year eased one of the major trends we’re has promised to cut 500,000
refocus economy on to 6.9%, the slowest pace in observing, but rating agen- jobs in state steel companies,
consumers are more than two decades. cies’ rating actions on China along with 1.3 million coal
JOHANNES EISELE/AGENCE FRANCE-PRESSE/GETTY IMAGES

Anemic demand has con- won’t immediately affect our workers. But while they wait
progressing slowly tinued this year, with facto- investment strategy,” said for the ax to fall, steel mills
ries and retailers in the Rosita Lee, director and head are exporting at below cost to
BY GREGOR STUART HUNTER country both putting in of investment-product busi- raise cash, and countries in-
AND MIA LAMAR weaker-than-expected perfor- ness at Hong Kong-based cluding India, the U.S. and the
mances in the first two Hang Seng Investment, which European Union have im-
HONG KONG—Standard & months of the year. manages a handful of funds posed antidumping tariffs.
Poor’s Ratings Services on Despite its increased con- that invest in China’s domes- And so we come to Port
Thursday cut its outlook for cerns, S&P was careful to tic stock and bond markets. Talbot, which has a proud
the Chinese government’s praise China’s far-reaching ef- “It’s not something which history of bankruptcy itself.
credit rating, marking the forts at change, such as crack- changes the equation dra- The first steelworks on the
second major ratings firm to ing down on government cor- matically to my mind,” said site failed less than a year af-
take a dimmer view of ruption, which it said appear Binay Chandgothia, a portfo- ter it opened. Its predecessor
China’s creditworthiness in to remain on track. lio manager at Multi-Asset up the road in Cwmavon was
the past month. A negative outlook typi- Advisors in Hong Kong, a run by the Bank of England
S&P kept its double-A-mi- The skyline of the Lujiazui Financial District in Shanghai cally indicates a higher unit of Principal Global In- for four years in the mid-19th
nus rating on China’s sover- chance of a rating change. vestors. “It’s just a confirma- century after defaulting on
eign debt but lowered the ket wider to foreign inves- gradually increasing,” the S&P said it could downgrade tion of what’s known about central-bank loans.
outlook to negative from sta- tors. firm said, citing expectations the debt within the next year China: The fact that growth Each failure led to the ca-
ble. S&P said the country’s at- for government and corpo- if it sees a higher likelihood is slowing down, and total pacity being bought on the
That is the same level the tempts to overhaul the rate debt metrics to worsen that China seeks to maintain debt in the system is increas- cheap by others, who tried
country’s debt is rated by fel- world’s second-largest econ- and its fears the country will growth at or above 6.5% by ing.” again—and in the process
low ratings firm Moody’s In- omy toward domestic-led rely too heavily on credit increasing credit at a signifi- Fitch Ratings rated China hurt competitors who hadn’t
vestors Service, which in economic growth is proceed- growth to jump-start a slug- cantly faster rate than eco- as A-plus with a stable out- had the advantage of picking
March also lowered its outing “more slowly than we gish economy. nomic growth. look, one notch lower than up below-cost assets.
look on China’s debt to nega- had expected.” “These expected trends Some investors said the Moody’s and S&P, as of its This time Port Talbot is on
tive. “Economic and financial could weaken the Chinese assessment merely confirms latest review in November. the receiving end. The Euro-
The moves come as China risks to the Chinese govern- economy’s resilience to widely held concerns about —Carol Chan pean Commission estimates
opens its massive bond mar- ment’s creditworthiness are shocks,” S&P said. the state of China’s economy. contributed to this article. China produces 325 million
metric tons of excess steel, al-
most twice the total steel
Fosun’s Interest
production of Europe.
This is the extraordinary
situation that pushed a Con-
servative minister to suggest
In Foreign Deals
the government might briefly
take ownership of Port Talbot
to assist in a sale, rather than
risk its liquidation.
Is on the Wane It is also a sign of what

might be coming in a range of
other industries plagued by
overcapacity, as global
BY WEI GU Investors were spooked by growth slows.
Mr. Guo’s vanishing act, as its The level of the renminbi is
HONG KONG—Billionaire shares plunged more than 10% one proxy for Beijing’s inten-
Guo Guangchang has spear- in December and are continuing tions this time. If China con-
headed some of China’s high- to languish at about half of the tinues to maintain a strong
est-profile overseas deals in re- level of their June high. Yields currency in the face of capital
cent years. But as Chinese for Fosun bonds also spiked af- flight, it suggests the govern-
companies go on a record for- ter the detention, though they ment is serious about shut-
eign buying spree, the founder have largely recovered now. ting at least some facilities,
and chairman of Fosun Group In the past, Chinese billion- rather than taking the easy
TU MEIFEI/MAGINECHINA
says he will pull back now. aires who were taken away for route of devaluation to im-
“This is our style: When ev- questioning rarely resurfaced. prove export competitiveness.
eryone gets excited, we become Xu Ming, founder of conglomer- One sign of progress: Steel
more cautious,” Mr. Guo said in ate Dalian Shide Group, died prices have recovered a little
an interview on Thursday, his late last year in a prison in the this year.
first since he disappeared central city of Wuhan at the age Investors have once again
briefly in December for ques- of 44, after being detained Billionaire Guo Guangchang of Fosun: ‘When everyone gets excited, we become more cautious.’ been taught how dangerous it
tioning by Chinese authorities without specified reason in is to be late to an investment
as part of a series of investiga- 2012. But temporary detention boom. The broader danger
tions that have shaken the is becoming more common. Ca- Going Out Reaching Out now is that government ef-
country’s business elite. sual-wear apparel maker Me- Fosun's overseas deals by Guo Guangchang has built up Fosun's investments around the world, forts to protect what remains
Fosun, whose marquee deals tersbonwe Group said in Janu- volume buying into brands including Club Med and Cirque du Soleil. of their industries result in
include buying resort operator ary its billionaire founder Zhou more damaging trade fric-
Club Méditerranée SA and a Chengjian couldn’t be contacted $5 billion tions. Already the antitrade
stake in avant-garde circus before he resurfaced about a 12 camp is finding a powerful
troupe Cirque du Soleil, termi- week later. 4 2 voice in Donald Trump’s
4
nated two potential foreign deals Mr. Guo—who initially made 3 promise to impose hefty du-
after Mr. Guo’s disappearance. his money investing in China’s 13 10 ties on imports from China
Another Chinese firm, An- booming steel, property and fi- 3 11 7 5 8 and Mexico. Coming at a time
6 when global trade has been
bang Insurance Group Co., on nance sectors—was even able
Thursday informed Starwood to travel to the U.S. within a 2 weakening, this can’t be good
Hotels & Resorts Worldwide week of being released. His 9 for globalization.
Inc. that it was withdrawing its continued public profile since 1 In Britain, little enough
$14 billion bid for the hotelier, has helped ease investor con- 1 heavy industry is left. The
people familiar with the matter cerns that he had been caught country was the furnace of
YTD 1. Australia 9. Malaysia
said. up in President Xi Jinping’s an- 12 0 the industrial revolution, but
0 Roc Oil (energy) Secret Recipe (restaurant)
Fosun’s Mr. Guo, who has ticorruption drive. Britons today are more likely
emulated legendary U.S. inves- Even so, Fosun has been scal- 2010 ’11 ’12 ’13 ’14 ’15 ’16 2. Canada 10. Portugal to work in a call center than
tor Warren Buffett in using in- ing back its international deal Source: Dealogic Cirque du Soleil (entertainment) Fidelidade (insurance) what the Office for National
surance capital and value in- making. This year, it hasn’t THE WALL STREET JOURNAL.
3. France 11. Spain Statistics calls the “metal
vesting, wouldn’t discuss what made a foreign acquisition, ac- Club Med (tourism) Osborne (spirits and pork products) forming, welding and related
he had spoken to authorities cording to Dealogic, after spend- Mr. Guo, wearing a suit and tie trades.” Back in 2001, these
about. He insisted everything ing more than $10 billion over- from Fosun-backed Italian tailor 4. Germany 12. U.K. industries employed twice as
was back to normal for him at seas over the past two years. Raffaele Caruso SpA. “We want Hauck & Aufhaeuser Privatbankiers Resolution Property many as call centers.
the helm of Fosun. The pullback comes as other to spend more time on develop- (finance) Silver Cross (property) The Conservative govern-
Lloyd Chamber (office building)
“Since I am a Chinese citi- Chinese companies have ing markets, such as Russia, In- 5. Greece ment, heir to Mrs. Thatcher’s
zen, assisting investigation is splurged $107.3 billion on out- dia and Brazil.” Folli Follie (retail) 13. U.S. 1980s privatization drive, de-
my responsibility and is per- bound deals this year, already In February, Fosun termi- Meadowbrook Insurance Group cided not to take Port Talbot
6. Israel St. John Knits International (retail)
fectly normal,” Mr. Guo said in surpassing last year’s record an- nated its plan to buy 52% of Is- into public ownership. But
Alma Lasers (beauty) 28 Liberty (property)
Hong Kong where the company nual total, according to Dealogic. raeli insurer Phoenix Holdings with 15,000 of the country’s
held its annual meeting with “Asset prices in Europe and from Delek Group Ltd. for $461 7. Italy Studio 8 (film) remaining steel jobs on the
analysts and investors. “Every- America, especially in the U.S., million. Caruso (retail) Ironshore (insurance)* line, it is easy to see why it
thing is now very normal at Fo- are rising quite rapidly, so we Bankers said Mr. Guo’s dis- Ambrx (biotech) felt the need at least to con-
8. Japan
sun. What has happened hasn’t don’t think now is the best time appearance had added uncer- Idera Capital Management (finance) * In Bermuda sider jettisoning its ideology
affected Fosun’s development.” for overseas acquisitions,” said tainty for foreign partners. Source: the company THE WALL STREET JOURNAL. and nationalizing the plant.
Junket Operator Reimburses Bangladesh

BY CRIS LARANO to recoup more of the stolen early February to his junket against Mr. Wong, also
funds. “The whole world is account at the Solaire Resort known as Kam Sin Wong, ac-
MANILA—A casino-junket also looking upon Bangladesh and Casino, according to Mr. cusing him of breaking anti-
operator who said he un- and what we will do to re- Wong. Mr. Wong said the money-laundering laws. Mr.
knowingly moved funds sto- cover the funds,” he said. money was sitting in the jun- Wong has denied wrongdo-
len from the central bank of Julia Bacay-Abad, execu- ket account of Chinese high ing.
Bangladesh turned over to tive director of the secretar- rollers he identified as Gao “Today, Mr. Kim Wong
Bangladeshi and Philippine iat of the Anti-Money Laun- Shu Hua and Ding Zhi Ze. kept his promise to the Sen-
authorities on Thursday part dering Council, said the Mr. Wong also promised to ate Blue Ribbon Committee
ROMEO RANOCO/REUTERS
of the money that found its money has effectively been return 450 million pesos that to return the $4.63 million in
way into casinos in Manila. he said was payment by Mr. his casino to the Anti-Money
Lawyers for businessman Gao, a longtime client, for Laundering Council for later
Kim Wong brought $4.63 mil-
‘Today, Mr. Kim gambling debts. Mr. Wong transmittal to the Bangladesh
lion to the offices of the Phil- Wong kept his said it would take some time central bank,” Inocencio Fer-
ippines’s Anti-Money Laun- to return that money because rer Jr., one of Mr. Wong’s
dering Council at the
promise,’ says one of he already had paid out some lawyers, said Thursday. Lawyer Inocencio Ferrer shows document confirming the return
country’s central-bank head- his lawyers. to Mr. Gao’s creditors. Law-enforcement authori- of $4.63 million to Bangladesh by a gambling-junket operator.
quarters, after Mr. Wong had Ms. Abad told reporters ties have said that cyberat-
pledged to hand over the that the Anti-Money-Laun- tackers hijacked official mes- bank account in Sri Lanka, ited scope of the country’s
money at a hearing into the returned to Bangladesh Bank dering Council is coordinat- saging codes at Bangladesh’s officials have said. That $20 anti-money-laundering laws,
scandal at the Philippine Sen- and is only in the vaults of ing with the Chinese govern- central bank in February in million was returned to Ban- which don’t apply to its
ate on Tuesday. the Bangko Sentral ng Pilipi- ment to find Messrs. Gao and an attempt to steal nearly $1 gladesh after the bank to growing casino sector.
Ambassador John Gomes, nas while arrangements are Ding. She also said that the billion from its account at which it was sent reported Junket managers who ar-
Bangladesh’s envoy to Ma- made for its repatriation. return of the $4.63 million the Federal Reserve Bank of the unusual transaction to Sri range for high-stakes gam-
nila, watched the turnover of The money returned by doesn’t end the Philippines’s New York. The hackers man- Lanka’s central bank. blers to travel to casinos in
funds and told reporters af- Mr. Wong is what remains of pursuit of charges against aged to secure only $101 mil- The hunt for the $81 mil- the Philippines and elsewhere
terward that Bangladesh in- the $5 million and 400 mil- Mr. Wong. The Anti-Money lion. lion that officials say was di- have come under scrutiny as
vestigators would be coming lion pesos ($8.7 million) in Laundering Council filed a Of the $101 million, $20 verted to the Philippines is the search for the missing
to Manila to assist in efforts cash that was delivered in criminal complaint last week million was transferred to a being complicated by the lim- money continues.
C4 | Friday, April 1, 2016 * *** THE WALL STREET JOURNAL.
IN THE MARKETS
Gross Lands in the Black Repo Rates Soar to
Levels Seen in 2008
Risky bets, such as on
BY KATY BURNE cash at quarter-end amid reg-
Keurig and Brazil, pay ulations causing them to pare
off, putting Janus fund Rates on overnight cash risk taking and cushion their
loans known as repurchase operations.
up 2.1% for the year agreements rose sharply late “That implies there was
Thursday to their highest lev- less cash than the market ex-
BY CHELSEY DULANEY els since September 2008, the pected on quarter-end, and all
AND GREGORY ZUCKERMAN latest sign of funding squeezes that goes back to bank regula-
at quarter-end. tion and banks trending down
Bill Gross’s fund is up for Overnight repos between the size of their balance
the year—and he bet on some dealers backed by U.S. Trea- sheets for window dressing on
risky securities to get it there. surys hit a high of quarter-end,” said Mr. Skyrm.
The one-time bond guru has 1.75% Thursday just before the The new regulations re-
racked up disappointing re- close, said Scott Skyrm, a repo quire commercial banks to cal-
turns since an ugly power and securities-financing ex- culate snapshots of their
struggle prompted him to pert at Wedbush Securities. books at the end of every
leave Pacific In- That was well above the month, so at quarter-end
CREDIT vestment Man- March average rate of 0.44% when it comes time for them
MARKETS agement Co. for and the highest level since it to show their business mix to
JIM YOUNG/REUTERS
Janus Capital closed at 1.9% on Sept. 25, regulators in their snapshots,

Group. But his 2008, the day of the largest- they borrow less to make their
Janus Global Unconstrained ever U.S. bank failure, Wash- balance sheets look safer.
Bond fund is up 2.1% this year ington Mutual Inc. Mr. Skyrm said that on
through Wednesday, topping a Repos, short-term loans ex- Thursday, the repo market
slight decline for its peers and a In a reversal of fortune for Bill Gross, his fund’s return has now outperformed 89% of its peers. changed for bonds as collat- was illiquid and there were
loss of 0.6% for a rival at Pimco. eral, are an obscure but criti- banks that needed financing
The gains came via aggres- left the fund with $1.3 billion in fault swaps sold on Brazilian Selling swaps has been cru- cal way financial firms fund for their Treasury portfolios
sive bets on riskier securities assets in the year through Feb- debt at the end of last year. At cial to Mr. Gross’s strategy for themselves and their portfo- but had to pay much higher
than he could have made at the ruary, according to Morningstar. the end of February, two of the the Janus fund. He has said he lios of securities across Wall rates.
Pimco Total Return fund, which Mr. Gross will need a longer fund’s top 10 positions were believes investors often are Street. Banks cannot just turn
invests mostly in U.S. Trea- track record of success to sales of protection against Bra- willing to overpay for such The spike in the overnight around and sell their Trea-
surys and corporate bonds. stem the outflows, said Todd zilian debt maturing in March protection against emerging- general collateral rate in the surys because they need to
His third-largest holding at Rosenbluth, director of re- and June. Those swaps are es- market defaults, especially for roughly $3 trillion repo mar- hold them either for client
the end of February was search for exchange-traded sentially insurance policies oil-dependent countries. ket is another sign that firms business or for regulatory pur-
shares of Keurig Green Moun- funds and mutual funds at S&P Janus sold to investors to pro- Mr. Gross’s fund’s second- were less willing to lend out poses backing riskier trades.
tain Inc., which rose 2% this Capital IQ. “It’s a new fund tect them against a Brazilian de- biggest holding at the end of
year before the company was with a really high-profile man- fault. When Brazil is seen as less December—about 10% of the
taken private in early March.
Also in Mr. Gross’s top 10: big
bets selling credit-default pro-
ager who departed his prior
employer with questions about
his ability to pick securities,”
likely to default, the swaps get
cheaper, and the fund benefits.
Brazil suffered in recent
total—was credit-default swaps
sold on Mexican debt. At the
end of February, they re-
Asia’s March Rally
tection against Brazilian and
Mexican bonds, a wager that
investors were overestimating
Mr. Rosenbluth said.
Mr. Gross, through a spokes-
woman, declined to comment.
years from depressed oil and
commodity prices and soaring
inflation. But its financial mar-
mained in the top 10 holdings.
The price of a Mexican
credit-default swap is down
Doesn’t Erase Fears
the risks of that debt. Mr. Gross’s riskier emerg- kets have rallied this year 33% since Feb. 11, according to BY CHAO DENG Pacific Index was up 8.2% in
The fund’s return puts it ing-market bets still could alongside a commodity rebound data from Markit. Mexico has March.
ahead of 89% of its peers. It is turn against him. Brazil re- and a weaker dollar, which been benefiting from the rally Most Asian stock markets That followed three consec-
a much-needed reversal of for- mains in an economic down- helps many riskier assets and in crude oil and other com- ended March on a roll, lessen- utive down months. For the
tune for Mr. Gross, whose fund turn that by some indications makes it easier for foreign bor- modity prices since February, ing some of the damage from first quarter, however, it had
at Janus has logged positive re- is getting worse, and Brazil’s rowers to pay back dollar debt. according to Simon Colvin, a a tumultuous start to 2016. failed to recover losses from
turns in only two of its six quar- president might face impeach- The cost of insuring against research analyst at Markit. But many market watchers earlier in the year, and was
ters. The fund is up 1.2% since ment proceedings stemming a Brazilian default has fallen The Janus fund reports its say they are worried the tur- down 2.3%. In comparison, the
Mr. Gross took over in October from a corruption scandal. by 30% since peaking on Feb. full holdings at the close of ev- moil could return. S&P 500 was up 0.8% for the
2014, according to data from re- Mr. Gross has long been a 11, according to data from ery quarter, so it isn’t possible Performances differed quarter.
searcher Morningstar Inc. bull on emerging markets. He Markit. The Janus fund has to tell what positions it bought widely in the first quarter. Looking ahead, traders say
Withdrawals of $188 million had 11% of his fund in credit-de- gained 2.4% since that day. or sold during the period. The Shanghai Composite In- they are hopeful that more in-
dex was down vestors will return to Asia,
WORLD 15.1%, even after given the recent upswing. But
STOCKS
Stocks End Quarter With a Gain

an 11.8% gain dur- April is packed with scheduled
ing March. meetings of central banks
Japan’s Nikkei from the U.S. to Japan, whose
Stock Average lost 12% in the decisions on monetary policy
BY RIVA GOLD cause you have an improving 0.6% to $1,234.20 an ounce Composite lost 2.7%. quarter, despite a 4.6% jump potentially could stir up vola-
AND AARON KURILOFF economy or growing earnings,” Thursday. Prices rose 16% in the “If you came into the year in March. tility in global financial mar-
said Robert Pavlik, senior portfo- first quarter. bullish, you got off to a very Meanwhile, many smaller kets.
U.S. stocks ended the quarter lio manager at Boston Private The U.S. labor market has rough start; if you lost heart in markets in Southeast Asia “When you’re hanging on
slightly ahead of where they be- Wealth. Instead, low or even been a healthy spot for the U.S. January or February, you’re kick- surged during the quarter, every word of central bankers,
gan, after major indexes bounced negative interest-rate policies at economy this year, and investors ing yourself now because of the with Thailand and Indonesia it is a bit tougher to invest
back sharply from their bruising the Federal Reserve, Bank of will get an update Friday with recovery,” David Donabedian, up 9.3% and 5.5%, respec- with a clear direction,” said
start to the year. Japan and European Central the March jobs report. But global chief investment officer at Atlan- tively. Logan Best, a securities trader
A recovery Bank have driven yields around growth projections have been tic Trust Private Wealth Manage- “It has been a very volatile in the brokerage division of
THURSDAY’S in oil prices, the world lower, pushing inves- muted. ment, said. quarter, and many investors INTL FCStone Financial Inc.
MARKETS easy-money tors into riskier assets like U.S. Stock markets in Europe and Some investors said relatively are still sidelined, missing the “Investors are waiting to reas-
policy from stocks, he said. Asia have made up some ground high stock-market valuations and rally,” said Robert Levine, sess whether they want more
major central but are still sharply lower for the the risk of earnings downgrades head of Asia sales and trading exposure in the region.”
1.5%
banks and stable U.S. economic year. The Stoxx Europe 600 fell could hamper further gains. at brokerage CLSA. —Gregor Stuart Hunter
data helped lift the Dow Jones 7.7% in the first quarter, while “We’ve had a full round-trip Overall, the MSCI AC Asia contributed to this article.
Industrial Average 13% from its Japan’s Nikkei Stock Average fell through the course of this quar-
Feb. 11 trough, giving the index a Increase in Dow Jones 12% and the Shanghai Composite ter, and I think it’s important to
1.5% gain for the first three Industrial Average for the first lost 15%. understand this is a year in Movers and Shakers
months of the year. quarter Asian stocks fell early Friday. which the domestic equities Asian stock markets had widely differing first-quarter performances,
Stocks also have benefited the Nikkei was down 1.3%, Aus- markets are going to be earnings with China and Japan struggling but Southeast Asia outperforming.
from a weakening dollar, which tralia’s S&P ASX 200 was down driven,” said Bill Northey, chief
can help companies that sell That is a weak underpinning 1.4% and the Shanghai Compos- investment officer at the private Year-to-date performance
goods overseas. The WSJ Dollar for the market, he said. “At what ite was down 0.2%. client group at U.S. Bank.
Index, which measures the point does it break?” The S&P 500 rose 0.8% in the —Saumya Vaishampayan Thailand SET 9.3%
greenback against a basket of 16 On Thursday, the Dow Jones first quarter, while the Nasdaq contributed to this article.
currencies, has fallen 4% since Industrial Average dropped 31.57 Indonesia Jakarta Composite 5.5%
the start of the year—its biggest points, or 0.2%, to 17685.09. The
drop since the third quarter of S&P 500 fell 4.21, or 0.2%, to Treasury Sets Sales of $52 Billion in Bills Philippines PSE 4.5%
2010. 2059.74, while the Nasdaq Com-
U.S. oil prices have risen 46% posite rose 0.55, less than 0.1%, The Treasury Department will maturing July 7, 2016. Cusip Australia's S&P/ASX 200 –4.0%
from their 2016 lows, ending the to 4869.85. auction $52 billion in securities number is 912796HZ5.
quarter up 3.5% at $38.34 a bar- The yield on the 10-year Trea- next week, comprising $24 billion Also Monday, $24 billion in Hong Kong's Hang Seng –5.2%
rel. sury note remains below the 2% in new debt and $28 billion in 26-week bills, dated April 7,
However, some investors are mark, falling to 1.784% Thursday previously auctioned debt. Details 2016, maturing Oct. 6, 2016. Cu- Nikkei
–12.0%
bracing for more turbulence as from 1.830% on Wednesday and (all with minimum denominations sip: 912796JN0. 225
economies around the world re- compared with 2.273% at the of $100): Noncompetitive tenders for Shanghai Composite –15.1%
main sluggish and corporate end of 2015. Yields fall as prices Monday: $28 billion in 13- both issues must be received by
earnings sag. rise. week bills, a reopening of an is- 11 a.m. EDT Monday and com- Note: Performance as of March 31
“The market is not rising be- Gold for April delivery rose sue first sold on Jan. 7, 2016, petitive tenders, by 11:30 a.m. Source: FactSet THE WALL STREET JOURNAL.
New Highs and Lows | WSJ.com/stocks 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
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Invesco MIO OIA 7.73 ... Owens&Minor OMI 40.69 0.2 WestarEnergy WR 50.38 -0.4 VanguardUtilities VPU 107.63 0.5 Baylake BYLK 16.25 -0.1 PrincipalShrhldrYd PY 25.15 0.2
Market stocks that hit a new 52-week intraday high or low in the latest session. InvescoMuniTrust VKQ 13.32 1.0 PCG 59.88 0.5 WstAstMgdMuni MMU 14.94 0.1 WisdomTreeUSAggBd AGGY 50.59 0.4 BioPathHldgs BPTH 2.68
% CHG-Daily percentage change from the previous trading session.
PG&E 6.6 RofinSinar RSTI 32.50 -0.4
InvescoQtyInc IQI 13.23 0.7 PIMCOCAMuni PCQ 16.48 0.5 WstAstMuniHiInco MHF 8.20 0.1 Broadcom AVGO 157.37 -1.5 ShenandoahTelecom SHEN 27.53 -1.1
Thursday, March 31, 2016 InvescoInvGradeMun VGM 14.07 0.3 PPL PPL 38.09 1.0 XcelEnergy XEL 41.85 0.6 NYSE Arca lows - 8 BroadSoft BSFT 41.09 4.5 SmartFinancial SMBK 18.50 0.9
52-Wk % 52-Wk % 52-Wk % KinrossGold KGC 3.58 -1.2 PepsiCo PEP 103.45 -0.2 C-TRCKS ETN CVOL CVOL 0.34 0.7 CSG SysInt CSGS 45.96 0.4 Sonic SONC 35.29 1.7
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg LeggMason6.375Nt56 LMHA 25.47 1.1 PIMCO Muni PMF 16.06 0.1 NYSE lows - 7 DrxDayRE Bear 3x DRV 15.15 -1.8 ChembioDiagnostics CEMI 6.10 3.6 SummitFnlGp SMMF 16.14 -3.4
BlkRkMunivestFdII MVT 17.09 ... EtnVnc MIT EVN 14.54 0.3 MSCI MSCI 74.92 1.3 PIMCO MuniII PML 13.31 0.7 AzureMidstreamPtrs AZUR 1.16 -11.3 ProShrsSh RE REK 18.20 -0.5 ChildrensPlace PLCE 84.02 0.7 SurgicalCareAff SCAI 47.13 1.9
NYSE highs - 168 BlkrckMuniYldCAQlt MCA 16.17 0.2 EatonVanceMunInc28 ETX 19.78 1.4 ManitowocFoodsvc MFS 15.50 -1.7 PIMCO MuniIII PMX 12.26 -0.2 Danaos DAC 3.78 ... ProShrUSRlEst SRS 39.20 -1.2 CincinnatiFin CINF 65.99 -0.8 TakeTwoSoftware TTWO 37.95 1.2
ACCOBrands ACCO 9.05 1.6 BlkrckMunYdMIQlty MIY 14.65 0.1 Equifax EFX 114.67 0.3 Marsh&McLennan MMC 60.96 0.1 PinnacleWestCap PNW 75.15 0.5 Entergy5.50Bd66 ENO 25.40 -0.3 ProShsUltraShrt TPS 25.82 -0.7 CogentCommsHldgs CCOI 39.18 1.1 TetraTech TTEK 30.06 0.2
AllianceCal AKP 14.96 -0.3 BlkRkMuniyldNJ Fd MYJ 16.68 0.2 EquityCommonNt42 EQCO 25.22 -0.7 McDonalds MCD 126.96 -0.1 PowerSecureInt POWR 18.70 0.3 FibriaCelulose ADR FBR 8.35 -2.4 ProShrUSUtil SDP 35.06 -0.7 Coherent COHR 93.11 1.0 UnitedFire UFCS 44.43 -1.1
AlliantEnergy LNT 74.35 0.5 BlRkMuyldLQlty MFT 14.58 0.6 EthanAllen ETH 32.10 0.9 MidAmApt MAA 102.42 0.7 PublicServiceEnt PEG 47.22 1.3 FirstAcceptance FAC 1.79 -9.5 TeucriumCornFund CORN 20.00 -4.6 CondorHospltyPfdB CDORO 31.48 0.2 UniversalForest UFPI 87.12 1.5
Ameren AEE 50.16 0.7 BlkRkStrMuni Tr BSD 14.62 1.1 EvrstReGrp RE 197.99 0.3 MotorolaSolutions MSI 75.83 1.1 PublicStorage PSA 276.83 1.0 ScrippsEW SSP 15.55 -1.9 WisdomTreeUSDBull USDU 26.11 0.1 Copart CPRT 41.80 -2.0 VanguardShTmInfltn VTIP 49.15 0.2
AEP AEP 66.49 0.6 BostnProp5.25%.PfB BXPpB 26.25 0.6 Exelon EXC 35.95 1.2 NatlRetailPropPfE NNNpE 26.22 -0.1 PublicStoragePfdW PSApW 25.88 ... ValeantPharmIntl VRX 25.75 -2.8 CyrusOne CONE 45.92 0.9 VanguardTotIntlBd BNDX 54.61 -0.1
AmHomes4RentPfdB AMHpB 27.65
Aon AON 104.76
4.8
0.5
Brown&Brown BRO
CGI Gp A GIB
35.91
48.33
0.5
0.3
Express EXPR
ExtraSpaceStorage EXR
21.57
93.48
1.2
1.0
NatlStorage NSA 21.70
NeoPhotonics NPTN 14.12
-1.5
1.7
PutnmMgdMun PMM 7.65
PutnmMunOpp PMO 12.72
1.2
0.8 NYSE Arca highs - 28 NYSE MKT highs - 17 DeltaNaturalGas DGAS 23.70
BancorpOfNJ BKJ 12.80 0.7 eBay6%Nts2056 EBAYL 25.25
0.7
0.8
VeraBradley VRA 20.69 2.2
VictoryCEMPEMVol CEZ 25.72 0.8
ApartmtInv AIV 41.95 0.4 CMSEnergy CMS 42.49 0.5 GeneralElcCapNts GEK 26.25 ... NextEra5%PfdJrDebJ NEEpJ 25.63 -0.6 Qwest7%Nts2056 CTAA 25.79 0.5 S&P2xDivAristoETN SDYL 59.74 -0.5 BlkRkMuniInco Tr2 BLE 15.89 0.5 EnergyRecovery ERII 10.82 3.0 VictoryCEMPUSEQInc CDC 38.11 0.1
ArmstrongFlooring AFIw 13.71 -3.6 CharlesSchwabPfdD SCHWpD 26.05 1.3 GenElec GE 32.05 -0.1 NextEraEnergyUn NEEpQ 61.05 0.1 SAPADR SAP 81.24 -0.3 ETRACS2xLevUSHiDiv HDLV 31.02 0.4 BlkRkMunivestFd MVF 10.78 0.9 Equinix EQIX 331.80 0.8 VictoryCEMPUSSmCp CSB 34.91 ...
NielsenHoldings NLSN 53.08 -0.3 SCEV4.45%PfdK SCEpK 26.73 0.6 FidelityMSCICnStpl FSTA 31.84 -0.2 FEIC 89.76 0.3
ArmstrongWorldWi AWIw 42.50 4.4 CitigroupDep.Pfd.S CpS 26.03 0.5 GeneralMills GIS 63.73 0.1 DE InvNtlMunFd VFL 13.81 0.5 FEI WebMD Htlh WBMD 63.14 5.1
ArrowElec ARW 64.59 1.0 CLECO CNL 55.27 ... G 27.36 0.5 NiSource NI 23.74 0.7 STAGInd6.875%PfdC STAGpC 26.44 0.8 FidelityMSCITelSvs FCOM 30.15 ... FarmersNatlBanc FMNB 9.03 -0.9
Genpact DreyfusMuniIncome DMF 9.77 0.4
AspenInsHldgsPfd AHLpC 26.46 ... CocaCola KO 46.88 -0.4 GenuineParts GPC 99.59 0.2 NorthropGrumman NOC 199.50 -0.4 SCANA SCG 70.35 0.9 FidelityMSCIUtils FUTY 31.85 0.5
EtnVncMuni EIM 13.37 1.0
FirstTrCapStrength FTCS 39.57 -0.3 Nasdaq lows - 20
BB&TDepPfdSeriesH BBTpH 25.30 Northwestern NWE 62.22 0.5 SouthernNts2015A SOJA 27.70 -0.4 FstTrUtilAlpDX FXU 26.02 0.5 Fiserv FISV 102.88 0.5
0.5 ComcastHldg CCZ 57.00 9.6 GettyRealty GTY 19.97 -0.5 EtnVncNJ MIT EVJ 13.47 1.4 Achaogen AKAO 2.59 -1.1
BancofCalifornia BANC 17.62 NuvAMTFreeMuniIncm NEA 14.34 -0.5 Southern SO 51.73 1.0 FlexShiBoxx5YTIPS TDTF 25.30 0.2 FlexCredScoreUSLg LKOR 52.39 0.6
2.3 ConEd ED 77.02 0.2 GoldmanSachsPfdN GSpN 26.22 ... EtnVncNY ENX 13.45 0.4 Alcobra ADHD 3.15 4.7
NuvCT Prm NTC 13.27 0.3 SpectrumBrndsHldgs SPB 110.39 2.0 FlexiBx3YDurTIPS TDTT 24.75 0.2 GibraltarInds ROCK 28.75 1.1
BlackHills BKH 61.13 -1.0 Convergys CVG 27.84 1.0 GranitCnstr GVA 47.99 1.0 EtnVncNY II NYH 13.36 2.2 AmElecTch AETI 1.81 -8.6
NuvDivAdv NAD 14.83 0.1 SquareClA SQ 15.91 1.7 GuggenheimS&P500 RHS 122.57 -0.4 GoldenEnterprises GLDC 5.15 5.4
BlackRockIncmTr BKT 6.65 1.1 Corts PF KCC KCC 31.89 2.4 HnckJ PfdInco HPI 22.50 -0.9 EtnVncPA MIT EVP 13.04 1.4 ApricusBiosci APRI 0.58 -5.5
NuvInterDurQlty NIQ 13.89 0.7 Stryker SYK 107.95 0.2 GuggenheimS&P500 RYU 83.29 0.5 IRSAPropiedadesADR IRCP 40.00 ...
BlkRkLngTrm Muni BTA 11.92 0.6 Cott COT 14.26 0.8 HnckJ PfdInco II HPF 21.47 -0.4 InvescoAdvMuniII VKI 12.54 0.2 iPathUSTrea5YrBull DFVL 71.78 BioBlastPharma ORPN 2.30 2.9
NuvInvQual NQM 16.06 -0.1 Sysco SYY 46.90 0.2 GuggenS&P500RlEst EWRE 26.42 2.6 4.0
BlkRkMuniAssets MUA 14.95 0.3 CubeSmart CUBE 33.34 0.7 HnckJ PfdInco III HPS 19.20 -0.4 NuvDivAdv2 NXZ 14.94 0.1 iShIntlTreasuryBd IGOV 97.60 EagleBlkShip EGLE 0.35 -52.0
NuvMD Prm NMY 13.42 1.4 TJX TJX 79.20 -0.4 iShares0-5YTIPSBd STIP 100.70 ... 0.1
BlkRk MuniBnd BIE 16.07 1.5 DolbyLab A DLB 43.86 -0.1 HlthcrTrofAmerica HTA 29.42 1.7 NuvDivAdv 3 NZF 15.02 0.4 KellyServicesClA KELYA 19.73 EndoInternational ENDP 25.98 -1.1
NuvMuniAdv NMA 14.39 0.1 Tanger SKT 36.51 1.0 iShU.S.Utilities IDU 123.84 0.5 2.8
BlkRkMunQlty BAF 15.34 0.7 DreyfusMuniBdInfr DMB 13.25 0.1 HeartlandPayment HPY 96.73 1.8 NuvDivAdvMuniIncm NVG 15.19 0.5 M/A-COMTechSolns MTSI 44.81 Freeseas FREE 0.02 -8.9
NuvMuniMkt NMO 14.30 0.1 TimeWarnerCable TWC 206.00 -0.6 iShMSCIUSAMinVol USMV 44.10 -0.1 0.2
BlackRockMuni2030 BTT 23.00 0.9 DreyfStMnBd DSM 8.60 ... HerculesCapNts19 HTGZ 25.59 0.2 RichmontMines RIC 5.81 -1.7 MMACapitalMgmt MMAC 16.44 Gevo GEVO 0.23 3.8
NuvValue NUV 10.50 0.8 Trupanion TRUP 10.00 2.2 iShShortTreasuryBd SHV 110.39 ... 0.4
BlkrckMunHlCAQlty MUC 15.78 0.3 DreyfStrMuni LEO 9.04 ... HershaHospitalPfC HTpC 27.25 2.9 Skyline SKY 9.46 2.3 Macatawa HennessyCapAqnIIWt HCACW 0.13 -6.9
NuvAMTFreeMuniIncm NRK 13.47 0.3 UDR UDR 38.60 0.7 ProShrUlConsmrGd UGE 114.25 -0.9 MCBC 6.40 -0.6
BlkRkMuniHldgFd II MUH 16.30 0.3 DTFTxFrInco DTF 15.80 0.8 IDACORP IDA 74.96 -0.1 SupremeIndustries STS 9.19 -1.8 Markit ModusLink MLNK 1.45 -2.0
NuvNY NAN 14.79 0.4 UGI UGI 40.85 -0.4 ProShrUltraUtil UPW 120.03 0.7 MRKT 35.35 1.0
BlkRkMuniHldgFd MHD 18.18 -0.2 DukeEnergy DUK 80.71 0.4 ITCHoldings ITC 43.89 0.4 NakedBrandGroup NAKD 2.06 5.1
NuvPP NPP 15.75 ... USCellularNts2064 UZC 25.20 0.1 SPDRBclysIntlTrea BWX 55.80 0.4 MediciNova MNOV 8.34 -4.7
BlkRkMuniHldg MFL 15.23 0.3 ELLIEMAE ELLI 91.16 3.1 IllinoisToolWorks ITW 102.98 -0.2 NuvPremInco NPI 14.58 0.8 US Cellu USM 45.80 3.8 SPDRBarc1-10YTIPS TIPX 19.76 0.4
NYSE MKT lows - 2 MitekSystems MITK 6.70 0.6 OpGenWt OPGNW 0.18 -0.5
BlRkMunHldQltyII MUE 14.09 0.4 EPRProperties EPR 66.71 0.8 InterXionHolding INXN 34.70 0.6 NuvPremInco2 NPM 14.79 ... UniversalHealth UHT 57.02 0.2 SPDRFactSetInnTech XITK 53.05 0.1 OverseasShiphldgA OSG 1.85 -4.6 Morningstar MORN 88.66 0.5 ParagonShippingClA PRGN 0.53 -9.1
NuvQltyInco NQU 14.82 -0.5 Vantiv VNTV 54.50 ... SPDRGenderDivers SHE 62.10 -0.1 SparkNtwk LOV 2.18 -6.3 NaturalAlternative NAII 13.80 1.1 QuestResourceHldg QRHC 0.42 -4.5
Online>> NuveenQualMuniFd NQI 14.29
NuvSelQlty NQS 14.67
0.6
0.5
WECEnergyGroup WEC 60.16
Wash Reit WRE 29.52
0.8
...
SchwabUSREIT SCHH 41.48
SPDR S&P ConStpl IPS 43.41
0.6
-0.3
Nasdaq highs - 62 OFSCapital OFS 13.07
Oclaro OCLR 5.45
0.2
1.1
SPIEnergyADR SPI 5.02 -10.2
WSIIndustries WSCI 3.35 -0.4
During the trading day, 52-week highs and lows are updated hourly NuvSelTxF NXP 14.89 0.9 WellsFargoPfdA WFCpR 29.36 0.3 UtilitiesSelSector XLU 49.67 0.6 Alarm.ComHoldings ALRM 24.22 -0.3 Perficient PRFT 21.92 0.1 WowoADR WOWO 3.83 -3.4
at WSJMarkets.com. Lists for each market are available free, along NuvTX Qual NTX 14.97 0.5 WF5.7%NonCumPfdW WFCpW 25.93 0.6 VangdCnsmrStpls VDC 136.00 -0.3 AlignTechnology ALGN 73.55 0.9 PwrShSP InfTech PSCT 55.31 0.2 xGTechnologyWt XGTIW 0.01 -23.0
with easy access to charts and headlines. OmnicomGroup OMC 84.23 -0.1 WestPharmSvcs WST 69.59 1.3 VangdShrtTrm BSV 80.64 0.1 Amedisys AMED 48.48 1.4 PrimoWater PRMW 10.20 6.7 XploreTechnologies XPLR 3.36 1.0
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
17685.09 t 31.57, or 0.18% Trailing P/E ratio * 18.07 16.22 2059.74 t 4.21, or 0.20% Trailing P/E ratio * 23.53 20.25 4869.85 s 0.55, or 0.01% Trailing P/E ratio * 21.55 22.87
High, low, open and close for each P/E estimate * 16.50 16.08 High, low, open and close for each P/E estimate * 17.55 17.39 High, low, open and close for each P/E estimate * 18.15 18.72
trading day of the past three months. Dividend yield 2.56 2.31 trading day of the past three months. Dividend yield 2.23 2.01 trading day of the past three months. Dividend yield 1.27 1.22
All-time high 18312.39, 05/19/15 All-time high: 2130.82, 05/21/15 All-time high: 5218.86, 07/20/15
Current divisor 0.14602128057775

18000 2100 5080
65-day moving average 65-day moving average

17500 65-day moving average 2050 4930
17000 2000 4780
16500 1950 4630

Session high
DOWN UP
16000 1900 4480
t
Session open Close
Close Open
t
15500 1850 4330

Session low
Bars measure the point change from session's open
15000 1800 4180
Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar. Dec. Jan. Feb. Mar.
* P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE MKT Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE MKT
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 996,781,300 11,453,279
Industrial Average 17755.70 17669.72 17685.09 -31.57 -0.18 18312.39 15660.18 -0.4 1.5 6.7 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 489,733,015 5,874,294
Transportation Avg 7968.66 7914.63 7944.11 -21.08 -0.26 8904.68 6625.53 -7.7 5.8 8.3 Most-active issues in late trading Decl. volume* 483,826,859 5,536,122
Utility Average 669.46 663.37 668.57 3.25 0.49 668.57 541.97 13.3 15.7 9.6 Volume After Hours Issues traded 3,189 356
Company Symbol (000) Last Net chg % chg High Low Advances 1,696 175
Total Stock Market 21256.32 21155.74 21179.41 -21.59 -0.10 22287.78 18663.11 -2.4 0.4 8.9
SPDR S&P 500 SPY 15,108.9 205.68 0.16 0.08 206.37 203.15 Declines 1,387 169
Barron's 400 519.85 516.63 518.17 1.60 0.31 586.75 446.15 -9.2 0.3 8.2
iShares MSCI Emg Markets EEM 12,371.5 34.25 … unch. 34.40 33.35 Unchanged 106 12
Nasdaq Stock Market Mkt Vectors Gold Miners GDX 8,322.7 19.96 -0.01 -0.05 20.55 19.28 New highs 168 17
Nasdaq Composite 4891.30 4864.41 4869.85 0.55 0.01 5218.86 4266.84 -0.3 -2.7 14.2 Bank Of America BAC 4,173.4 13.52 … unch. 13.72 13.31 New lows 7 2
4504.24 4478.13 -7.22 4719.05 3947.80 -2.4 Closing tick 391 18
Nasdaq 100 4483.66 -0.16 3.9 16.7 Vonage Holdings VG 4,000.4 4.57 … unch. 4.60 4.40
Closing Arms† 1.16 1.44
iShares MSCI EAFE ETF EFA 3,687.6 57.10 -0.06 -0.10 57.83 56.34
Standard & Poor's Block trades* 5,528 98
Microsoft MSFT 2,648.0 55.23 … unch. 55.45 53.50
500 Index 2067.92 2057.46 2059.74 -4.21 -0.20 2130.82 1829.08 -0.3 0.8 9.5 Nasdaq NYSE Arca
General Electric GE 2,645.0 31.80 0.01 0.03 31.91 30.94
MidCap 400 1449.28 1442.11 1445.19 1.61 0.11 1549.44 1238.82 -5.2 3.3 7.8 Total volume* 1,736,118,830 306,921,307
SmallCap 600 688.97 685.18 686.97 0.85 0.12 742.13 588.26 -4.8 2.3 8.9 Percentage gainers… Adv. volume* 885,051,357 102,032,763
Decl. volume* 825,187,353 202,156,406
Other Indexes Covisint Corp. COVS 7.8 2.10 0.10 5.00 2.10 2.10
Issues traded 2,933 1,329
Russell 2000 1117.79 1109.53 1114.03 3.59 0.32 1295.80 953.72 -11.3 -1.9 5.4 NanoViricides NNVC 11.3 2.29 0.10 4.52 2.29 2.24
Advances 1,391 651
NYSE Composite 10248.82 10198.92 10207.37 -29.58 -0.29 11239.66 9029.88 -6.8 0.6 3.9 Gold Field ADR GFI 303.1 4.08 0.14 3.55 4.08 3.63 Declines 1,447 651
Value Line 454.32 452.42 453.17 0.50 0.11 522.42 383.82 -11.7 1.7 3.5 Urban Outfitters URBN 106.8 34.04 0.95 2.87 34.49 32.27 Unchanged 95 27
NYSE Arca Biotech 2999.52 2890.50 2959.00 90.52 3.16 4431.87 2642.53 -24.7 -22.4 17.4
U.S. Auto Parts Network PRTS 50.0 2.63 0.07 2.73 2.63 2.63 New highs 62 28
New lows 20 8
NYSE Arca Pharma 497.51 493.29 493.61 -2.47 -0.50 605.94 477.25 -13.2 -8.8 6.2 ...And losers
Closing tick 40 8
KBW Bank 64.87 64.00 64.23 -0.42 -0.64 80.41 56.51 -11.4 -12.1 4.5 42.9
PwrShs DB G10 Cur Harvest DBV 21.36 -2.01 -8.60 23.48 21.36 Closing Arms† 0.90 1.63
PHLX§ Gold/Silver 71.34 69.48 69.51 -0.82 -1.16 75.36 38.84 2.3 53.4 -20.0 Genocea Biosciences GNCA 1,639.6 7.13 -0.61 -7.88 8.45 3.82 Block trades* 6,619 1,432
PHLX§ Oil Service 160.75 158.06 158.98 0.34 0.22 224.32 128.61 -18.4 0.8 -13.5 Marriott Intl MAR 2,162.5 67.66 -3.52 -4.95 71.69 67.11 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 679.97 676.61 676.89 -3.90 -0.57 746.08 559.18 -1.8 2.0 15.7 Starwood Hotels HOT 1,588.0 80.01 -3.42 -4.10 84.18 79.00 †(TRIN) A comparison of the number of advancing and declining
14.28 13.49 0.39 40.74 11.95 -23.4 issues with the volume of shares rising and falling. An
CBOE Volatility 13.95 2.88 -4.9 3.2 Marvell Tech Group MRVL 359.6 10.06 -0.25 -2.42 10.39 8.75 Arms of less than 1 indicates buying demand; above 1
Philadelphia Stock Exchange Sources: SIX Financial Information; WSJ Market Data Group indicates selling pressure.
International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD Latest Session 52-Week Latest Session 52-Week
Region/Country Index Close Net chg % chg % chg Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2314.85 –8.48 –0.37 –0.9 Genocea Biosciences GNCA 7.74 3.77 94.96 16.18 2.56 -32.0 aTyr Pharma LIFE 3.94 -0.92 -18.93 28.29 3.50 ...
The Global Dow Euro 1912.74 –13.86 –0.72 –5.6 DragonWave DRWI 4.93 1.54 45.43 19.75 1.40 -65.4 Argos Therapeutics ARGS 6.40 -1.49 -18.88 9.64 1.61 -28.7
DJ Global Index 307.36 –0.61 –0.20 –0.2 ProQR Therapeutics PRQR 4.88 1.24 34.07 22.45 3.48 -76.2 NanoViricides NNVC 2.19 -0.40 -15.44 3.44 0.89 -2.7
World DJ Global ex U.S. 208.19 –0.57 –0.27 –1.0 Great Basin Scientific GBSN 7.17 1.49 26.30 12810.00 3.69 -99.9 Zosano Pharma ZSAN 2.30 -0.36 -13.53 10.99 1.95 -77.7
Medivation MDVN 45.98 8.59 22.97 67.67 26.41 -29.4 Lime Energy LIME 2.83 -0.42 -12.92 3.85 2.51 -8.1
Americas DJ Americas 494.27 –0.63 –0.13 1.4
Brazil Sao Paulo Bovespa 50055.27 –1193.65 –2.33 15.5 Aclaris Therapeutics ACRS 18.95 3.50 22.65 33.88 10.99 ... Wilhelmina International WHLM 6.11 -0.89 -12.71 7.63 5.05 17.5
13494.36 –0.07 3.7
Dynagas LNG Partners DLNG 11.40 1.78 18.50 20.83 6.70 -40.0 Mirna Therapeutics MIRN 4.37 -0.51 -10.45 11.01 3.57 ...
Canada S&P/TSX Comp –9.62
Nuvectra NVTR 5.41 0.83 18.12 11.64 4.02 ... SPI Energy ADR SPI 5.43 -0.62 -10.25 18.90 5.02 ...
Mexico IPC All-Share 45881.08 –310.43 –0.67 6.8
Santander Consumer USA SC 10.49 1.59 17.87 26.83 8.54 -54.6 Biostar Pharmaceuticals BSPM 1.91 -0.21 -9.91 12.88 1.40 -76.5
Chile Santiago IPSA 3127.67 –7.13 –0.23 6.2
Cidara Therapeutics CDTX 12.70 1.72 15.66 19.13 9.48 ... Movado Group MOV 27.53 -2.81 -9.26 32.21 21.18 -12.7
Europe Stoxx Europe 600 337.54 –3.64 –1.07 –7.7
Staffing 360 Solutions STAF 3.90 0.52 15.52 10.24 1.80 50.0 Direxion S&P Biotech Bear LABD 53.17 -5.40 -9.22 103.62 24.00 ...
Euro zone Euro Stoxx 321.54 –3.90 –1.20 –6.8
Par Technology PAR 6.63 0.88 15.30 7.53 3.71 58.2 MFC Bancorp MFCB 1.98 -0.20 -9.17 5.04 1.50 -49.0
Belgium Bel-20 3373.04 –46.34 –1.36 –8.8
SciClone Pharmaceuticals SCLN 11.00 1.33 13.75 11.71 6.47 22.6 Cartesian Inc. CRTN 2.03 -0.20 -8.97 4.40 1.81 -42.7
France CAC 40 4385.06 –59.36 –1.34 –5.4 Fitbit FIT 15.15 1.75 13.06 51.90 11.91 ... Vuzix VUZI 5.33 -0.52 -8.89 8.56 3.61 -7.5
Germany DAX 9965.51 –81.10 –0.81 –7.2 Venaxis APPY 2.70 0.30 12.50 5.60 1.60 -29.9 Anacor Pharmaceuticals ANAC 53.45 -5.21 -8.88 156.93 52.02 -6.3
Israel Tel Aviv 1450.39 –12.13 –0.83 –5.1
Italy FTSE MIB 18116.88 –258.44 –1.41 –15.4
Netherlands AEX 440.11 –6.13 –1.37 –0.4 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 8723.10 –147.10 –1.66 –8.6 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
Sweden SX All Share 483.41 –2.55 –0.52 –4.3
Switzerland Swiss Market 7807.89 –37.19 –0.47 –11.5 iShares MSCI Emg Markets EEM 97,224 42.9 34.25 -0.09 44.19 27.61 City Office REIT CIO 5,572 11487 11.40 -1.72 13.50 10.09
6174.90 –0.46 –1.1 SPDR S&P 500 SPY 79,352 -44.2 205.52 -0.24 213.78 181.02 WBI Tactical SMG Shares WBIA 1,097 8035 21.47 -0.10 26.46 20.25
U.K. FTSE 100 –28.27
Bank Of America BAC 75,386 -44.0 13.52 0.30 18.48 10.99 WBI Tactical Incm Shares WBII 2,342 5800 25.06 0.36 26.41 24.34
Asia-Pacific DJ Asia-Pacific TSM 1358.46 0.41 0.03 –2.3 iPath SP 500 VIX Sht Tm VXX 66,409 -14.8 17.62 0.63 31.48 15.48 WBI Tactical Hi Incm WBIH 1,699 5614 23.46 0.23 26.09 22.90
Australia S&P/ASX 200 5082.80 72.50 1.45 –4.0 Pfizer PFE 54,768 35.3 29.64 -1.43 36.46 28.25 WBI Tactical LCV Shares WBIF 742 5151 22.02 -0.41 25.12 21.37
China Shanghai Composite 3003.92 3.27 0.11 –15.1
Micron Technology MU 46,742 82.5 10.47 -0.10 29.78 9.31 WBI Tactical LCS Shares WBIL 628 4623 21.74 -0.44 24.78 21.19
Hong Kong Hang Seng 20776.70 –26.69 –0.13 –5.2
Valeant Pharm Intl VRX 44,380 166.4 26.30 -2.84 263.81 25.75 WBI Tactical SMV Shares WBIB 602 4417 21.54 -0.21 25.56 20.68
India S&P BSE Sensex 25341.86 3.28 0.01 –3.0
DXN DLY GLDMNR 3x BR DUST 40,176 18.0 3.23 3.86 40.00 2.79 WBI Tactical SMS Shares WBID 494 3390 20.49 -0.53 25.15 19.67
Japan Nikkei Stock Avg 16758.67 –120.29 –0.71 –12.0
Marathon Oil MRO 38,451 13.2 11.14 5.79 31.53 6.52 WBI Tactical LCY Shares WBIG 463 2665 20.77 -0.24 25.30 20.36
Singapore Straits Times 2840.90 –31.88 –1.11 –1.5 Mkt Vectors Gold Miners GDX 37,887 -52.6 19.97 -1.29 21.42 12.40 PBF Logistics PBFX 1,241 2174 18.84 -6.36 25.29 15.39
South Korea Kospi 1995.85 –6.29 –0.31 1.8 * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
* Volumes of 100,000 shares or more are rounded to the nearest thousand
Taiwan Weighted 8744.83 7.79 0.09 4.9 5,000 shares =Has traded fewer than 65 days
Sources: SIX Financial Information; WSJ Market Data Group
Consumer Rates and Returns to Investor Benchmark

Treasury Yields
yield curve Forex Race Currencies
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs.
U.S.-dollar foreign-exchange rates in late New York trading
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Home Equity US$vs, US$vs,
A consumer rate against its 8% Thurs YTDchg Thurs YTDchg
benchmark over the past year 5.00% Euro Country/currency in US$ per US$ (%) Country/currency in US$ per US$ (%)
s
6 Yen
s
Bankrate.com avg†: 4.56%

4.00 4 Americas Thailand baht .02848 35.110 –2.6
Bank of North Carolina 1.99% Vietnam dong .00004487 22286 0.6
Home equity loan 5.00% 2 Argentina peso .0680 14.6960 13.6
High Point, NC 877-842-4180 3.00 Europe
t 0 Brazil real .2784 3.5921 –9.3
South State Bank 1.99% –2 Canada dollar .7690 1.3005 –6.0 Czech Rep. koruna .04208 23.763 –4.5
4.00 2.00
Savannah, GA 912-629-6500 –4 Chile peso .001492 670.40 –5.4 Denmark krone .1527 6.5476 –4.7
One year ago
t
Watertown Savings Bank 2.75%

t
1.00 –6 s Colombia peso .0003333 3000.45 –5.5 Euro area euro 1.1381 .8787 –4.6
t 3.00
Thursday –8 WSJ Dollar index Ecuador US dollar 1 1 unch Hungary forint .003625 275.88 –5.0
Prime rate Watertown, NY 315-788-7100
0.00 Mexico peso .0579 17.2775 0.4 Iceland krona .008104 123.40 –5.2
2.00 Republic Bank Trust Company 2.99% –10
Peru new sol .3016 3.316 –2.9 Norway krone .1209 8.2696 –6.5
1 3 6 1 2 3 5 710 30 2015 2016
Louisville, KY 888-540-5363 Uruguay peso .03119 32.0600 7.2 Poland zloty .2682 3.7288 –5.0
1.00 month(s) years Venezuela b. fuerte .100125 9.9876 58.4 Russia ruble .01495 66.898 –7.0
AM J J A S O N D J FM The First, N.A. 2.99%
maturity Asia-Pacific Sweden krona .1232 8.1174 –3.9
2015 2016 Damariscotta, ME 800-564-3195 Switzerland franc 1.0398 .9617 –4.0
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Australian dollar .7657 1.3060 –4.8
Turkey lira .3550 2.8170 –3.5
China yuan .1551 6.4492 –0.7
Yield/Rate (%) 52-Week Range (%) 3-yr chg Ukraine hryvnia .0381 26.2680 9.5
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Hong Kong dollar .1289 7.7573 0.1
UK pound 1.4360 .6964 2.6
India rupee .01509 66.285 0.1
Federal-funds rate target 0.25-0.5 0.25-0.5 0.00 l 0.50 0.25 Corporate Borrowing Rates and Yields Indonesia rupiah .0000760 13162 –4.9 Middle East/Africa
Prime rate* 3.50 3.50 3.25 l 3.50 0.25 Yield (%) 52-Week Total Return (%) Japan yen .008882 112.58 –6.4 Bahrain dinar 2.6541 .3768 –0.1
Bond total return index Close Last Week ago High Low 52-wk 3-yr Kazakhstan tenge .002899 345.00 1.8 Egypt pound .1126 8.8796 13.4
Libor, 3-month 0.63 0.63 0.27 l 0.64 0.35
Macau pataca .1252 7.9855 –0.2 Israel shekel .2664 3.7539 –3.6
Money market, annual yield 0.26 0.26 0.22 l 0.42 -0.24 Treasury, Ryan ALM 1464.134 1.462 1.594 1.957 1.351 2.263 2.838
Malaysia ringgit .2580 3.8763 –9.9 Kuwait dinar 3.3131 .3018 –0.5
Five-year CD, annual yield 1.29 1.29 1.28 l 1.53 0.07 10-yr Treasury, Ryan ALM 1769.895 1.784 1.902 2.480 1.642 –2.270 3.273 New Zealand dollar .6909 1.4474 –1.1 Oman sul rial 2.5974 .3850 unch
30-year mortgage, fixed† 3.64 3.70 3.57 l 4.22 -0.21 DJ Corporate 357.919 2.910 3.036 3.462 2.641 1.954 3.616 Pakistan rupee .00955 104.755 –0.1 Qatar rial .2746 3.642 unch
15-year mortgage, fixed† 2.87 2.92 2.85 l 3.42 -0.21 Aggregate, Barclays Capital 1883.600 2.180 2.300 2.630 2.000 1.952 2.497 Philippines peso .0218 45.957 –1.9 Saudi Arabia riyal .2666 3.7506 –0.1
Jumbo mortgages, $417,000-plus† 4.21 4.23 4.00 l 4.97 0.10 Singapore dollar .7416 1.3484 –4.9 South Africa rand .0677 14.7671 –4.6
High Yield 100, Merrill Lynch n.a. n.a. 6.863 8.696 5.207 n.a. n.a. South Korea won .0008734 1144.97 –2.6
Five-year adj mortgage (ARM)† 3.35 3.39 3.14 l 3.86 0.41 Close Net Chg % Chg YTD%Chg
Fixed-Rate MBS, Barclays 1945.520 2.410 2.490 2.900 2.260 2.439 2.710 Sri Lanka rupee .0068503 145.98 1.2
New-car loan, 48-month 3.21 3.22 2.71 l 3.38 0.58 Taiwan dollar .03103 32.222 –2.1 WSJ Dollar Index 86.59 –0.11–0.12 –3.98
Muni Master, Merrill n.a. n.a. 1.644 2.099 1.440 n.a. n.a.
HELOC, $30,000 4.56 4.68 4.24 l 5.01 -0.32
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 705.692 6.126 6.274 7.128 5.679 3.469 2.431 Sources: Tullett Prebon, WSJ Market Data Group
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Commodities Thursday 52-Week YTD

Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
DJ Commodity 472.28 -0.63 -0.13 584.70 420.23 -13.26 4.07

ONLINE
WSJ
Reuters-Jefferies CRB 170.52 -0.45 -0.26 231.77 155.01 -21.09 -3.26
Crude oil, $ per barrel 38.34 0.02 0.05 61.43 26.21 -21.98 3.51
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and
.COM Natural gas, $/MMBtu 1.959 -0.037 -1.85 3.02 1.64 -27.79 -16.17
ETFs. Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at
Gold, $ per troy oz. 1234.20 7.30 0.59 1272.00 1050.80 2.77 16.40
WSJMarkets.com
C6 | Friday, April 1, 2016 THE WALL STREET JOURNAL.
BIGGEST 1,000 STOCKS

WSJ.com/stocks
How to Read the Stock Tables Net Net Net Net Net Net
The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
securities. Prices are composite quotations that include primary market trades as well as trades FirstDataClA FDC 12.94 0.48 LBrands LB 87.81 -0.56 PackCpAm PKG 60.40 0.96 STMicroelectronics STM 5.58 0.05 XL Group XL 36.80 -0.09 JetBlue JBLU 21.12 -0.16
reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock
Exchange, ISE and BATS. FirstRepublicBank FRC 66.64 -0.38 LGDisplayADR LPL 11.43 -0.18 PaloAltoNetworks PANW 163.14 1.15 s Stryker SYK 107.29 0.24 s XcelEnergy XEL 41.82 0.26 KLA Tencor KLAC 72.81 0.25
The list comprises the 1,000 largest companies based on market capitalization. FirstEnergy FE 35.97 0.18 L-3Communications LLL 118.50 -1.51 ParkerHannifin PH 111.08 0.09 SumitomoMitsADR SMFG 6.01 0.05 Xerox XRX 11.16 0.33 KraftHeinz KHC 78.56 -0.34
Underlined quotations are those stocks with large changes in volume compared with the issue’s FleetCorTechs FLT 148.75 0.99 LabCpAm LH 117.13 -0.72 PearsonADR PSO 12.54 -0.43 SunLifeFinancial SLF 32.27 0.14 Xylem Inc. XYL 40.90 -0.14 LKQ LKQ 31.93 0.81
average trading volume. Flowserve FLS 44.41 0.37 LasVegasSands LVS 51.68 -0.55 PembinaPipeline PBA 26.98 0.12 SuncorEnergy SU 27.81 0.29 YPFADR YPF 17.88 0.19 LamResearch LRCX 82.60 0.41
Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous
closing price was $2 or higher. Fluor FLR 53.70 -0.66 Lazard LAZ 38.80 -1.10 Pentair PNR 54.26 0.19 SunocoLogistics SXL 25.07 0.37 YanzhouCoalADR YZC 5.26 ... LamarAdvertisingA LAMR 61.50 1.07
FomentoEconMexADR FMX 96.31 -0.29 LearCorp LEA 111.17 -0.48 s PepsiCo PEP 102.48 -0.21 SunTrustBanks STI 36.08 -0.41 YoukuTudouADR YOKU 27.49 ... LibertyBroadbandA LBRDA 58.16 -0.45
Footnotes: listing standards vj-In bankruptcy or
s-New 52-week high. lf-Late filing receivership or being FootLocker FL 64.50 -1.24 Leggett&Platt LEG 48.40 0.45 PerkinElmer PKI 49.46 0.12 SynchronyFinancial SYF 28.66 0.28 YumBrands YUM 81.85 -0.40 LibertyBroadbandC LBRDK 57.95 -0.40
t-New 52-week low. q-Temporary exemption from reorganized under the FordMotor F 13.50 0.15 LennarClA LEN 48.36 0.55 Perrigo PRGO 127.93 -1.69 SyngentaADR SYT 82.82 -0.10 ZayoGroupHoldings ZAYO 24.24 -0.04 LibertyGlobalClA LBTYA 38.50 -0.19
dd-Indicates loss in the most Nasdaq requirements. Bankruptcy Code, or securities ForestCityRealtyA FCE/A 21.09 -0.05 LennarClB LEN/B 38.71 0.79 PetroChinaADR PTR 66.30 -0.22 s Sysco SYY 46.73 0.10 ZimmerBiomet ZBH 106.63 -0.07 LibertyGlobalClC LBTYK 37.56 -0.13
recent four quarters. t-NYSE bankruptcy assumed by such companies. FortBrandsHomeSec FBHS 56.04 0.24 LennoxIntl LII 135.19 -0.16 PetroleoBrasilADR PBR 5.84 -0.02 TEConnectivity TEL 61.92 0.74 Zoetis ZTS 44.33 0.31 LibertyGlbLiLACAWi LILA 35.06 -0.59
FD-First day of trading. v-Trading halted on primary
h-Does not meet continued market. Franco-Nevada FNV 61.38 -1.36 LeucadiaNational LUK 16.17 0.24 PetroleoBrasilADRA PBR/A 4.53 -0.08 TEGNA TGNA 23.46 -0.24 LibertyGlbLiLACClC LILAK 37.88 -0.50
FranklinResources BEN 39.05 -0.09 Level3Comm LVLT 52.85 0.01 Pfizer PFE 29.64 -0.43 TELUS TU 32.53 -0.25 NASDAQ LibertyInteractQVC QVCA 25.25 0.04
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and Freeport-McMoRan FCX 10.34 0.05 LibertyPropertyTr LPT 33.46 0.11 PhilipMorrisIntl PM 98.11 -0.58 TERNIUMADR TX 17.98 -0.21 AMCNetworks A AMCX 64.94 -0.19 LibertyVenturesB LVNTB 39.19 1.09
changes in the closing prices from 4 p.m. the previous day. FreseniusMedADR FMS 44.08 0.08 EliLilly LLY 72.01 0.23 PhilippineLgDisADR PHI 43.31 0.81 TIMPartADR TSU 11.06 -0.32 Ansys ANSS 89.46 0.89 LibertyVenturesA LVNTA 39.12 0.26
Thursday, March 31, 2016 Gallagr AJG 44.48 0.11 LincolnNational LNC 39.20 -0.77 Phillips66 PSX 86.59 -1.03 s TJX TJX 78.35 -0.33 LibertyMediaA LMCA 38.63 ...
Net Net ARMHoldingsADR ARMH 43.69 -0.41
Stock Sym Close Chg Stock Sym Close Chg Gap GPS 29.40 -0.26 LinkedInA LNKD 114.35 0.52 PiedmontNaturalGas PNY 59.83 0.03 TaiwanSemiconADR TSM 26.20 -0.26 ASMLHolding ASML 100.39 -0.76 LibertyMediaC LMCK 38.09 0.28
Net
Stock Sym Close Chg Gartner IT 89.35 1.05 LloydsBankingADR LYG 3.95 ... PinnacleFoods PF 44.68 0.22 TargaResources TRGP 29.86 0.77 AcadiaHealthcare ACHC 55.11 -0.33 LinearTechnology LLTC 44.56 -0.22
BancoSantanderADR SAN 4.36 -0.09 ColgatePalmolive CL 70.65 -0.07 Gazit-Globe GZT 9.10 0.07 LockheedMartin LMT 221.50 -1.46 s PinnacleWestCap PNW 75.07 0.38 Target TGT 82.28 -1.32 LinnEnergy LINE 0.36 -0.02
ActivisionBliz ATVI 33.84 -0.23
NYSE BanColombiaADR CIB 34.18 0.44
BankAm BAC 13.52 0.04
ColumbiaPipeline CPGX 25.10
Comerica CMA 37.87
-0.03
-0.36
GenDynam GD 131.37
s GenElec
-0.36 Loews L 38.26 -0.29 PioneerNaturalRscs PXD 140.74 0.33 TaroPharm TARO143.25 1.31 AdobeSystems ADBE 93.80 0.02 lululemonathletica LULU 67.71 -0.09
s Markit MRKT 35.35 0.34
GE 31.79 -0.04 Lowe's LOW 75.75 -0.27 PlainsAllAmPipe PAA 20.97 0.45 TataMotorsADR TTM 29.05 0.02 AkamaiTechnologies AKAM 55.57 0.47
ABBADR ABB 19.42 -0.16 BkMntrl BMO 60.69 -0.26 CSC CSC 34.39 0.36 GeneralGrowthProp GGP 29.73 0.22 LuxotticaGroupADR LUX 55.00 -1.23 PolarisIndustries PII 98.48 1.23 TeckResourcesB TCK 7.61 -0.21 MarriottInt A MAR 71.18 -0.37
AlexionPharm ALXN 139.22 4.40
ADTCorp. ADT 41.26 -0.04 BankNY Mellon BK 36.83 -0.31 ConAgraFoods CAG 44.62 -0.33 s GeneralMills GIS 63.35 0.04 LyondellBasell LYB 85.58 -0.32 PotashCp POT 17.02 -0.39 TecoEnergy TE 27.53 ... MarvellTch MRVL 10.31 -0.01
s AlignTechnology ALGN 72.69 0.68
AECOM ACM 30.79 -0.18 BkNovaScotia BNS 48.86 -0.16 ConchoResources CXO 101.04 -0.91 GeneralMotors GM 31.43 0.44 M&T Bnk MTB 111.00 -0.97 Praxair PX 114.45 -0.55 TelecomItaliaADR TI/A 8.82 -0.07 Mattel MAT 33.62 0.03
AES AES 11.80 Alkermes ALKS 34.19 1.98
0.18 BarclaysADR BCS 8.62 -0.09 ConocoPhillips COP 40.27 0.19 s Genpact G 27.19 0.13 MGMResortsIntl MGM 21.44 0.15 PrincipalFinancial PFG 39.45 -0.32 TelecomItaliaADR TI 10.79 -0.03 MaximIntProducts MXIM 36.78 0.24
Aflac AFL 63.14 -0.59 Bard CR BCR 202.67 -0.21 s ConEd ED 76.62 AlnylamPharm ALNY 62.77 3.69
0.14 s GenuineParts GPC 99.36 0.24 MPLX MPLX 29.69 1.93 Procter&Gamble PG 82.31 -0.37 Teleflex TFX 157.01 1.07 Medivation MDVN 45.98 8.59
AGLResources GAS 65.14 0.22 BarrickGold ABX 13.58 -0.16 ConstBrands A STZ 151.09 AlphabetClA GOOGL 762.90 -5.44
-0.51 Gildan GIL 30.51 0.40 s MSCI MSCI 74.08 0.93 ProgressiveCorp PGR 35.14 0.11 TelefonicaBrasADR VIV 12.49 -0.37 MelcoCrownEntADR MPEL 16.51 -0.44
AT&T T 39.17 -0.20 Baxalta BXLT 40.40 0.25 ConstBrands B STZ/B 151.59 AlphabetClC GOOG 744.95 -5.58
-0.10 GlaxoSmithKlineADR GSK 40.55 -0.15 MSCIndlDirect MSM 76.31 0.13 Prologis PLD 44.18 0.51 TelefonicaADR TEF 11.13 -0.22 MercadoLibre MELI 117.85 0.17
AbbottLabs ABT 41.83 0.18 BaxterIntl BAX 41.08 -0.18 ContinentalRscs CLR 30.36 Amazon.com AMZN 593.64 -5.05
0.61 GlblPymts GPN 65.30 2.52 Macerich MAC 79.24 0.20 PrudentialFin PRU 72.22 -0.73 TelekmIndonesiaADR TLK 50.85 0.08 MichaelsCos. MIK 27.97 0.50
AbbVie ABBV 57.12 0.12 BectonDickinson BDX 151.82 -0.72 Cooper COO 153.97 -2.08 Amdocs DOX 60.42 0.35
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4.29 -0.07
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Ashland ASH 109.96 -0.70 CencosudADR CNCO 7.68 0.16 EnersisAmericasADR ENI 13.90 0.08 JacobsEngineering JEC 43.55 -0.22 NorfolkSouthern NSC 83.25 -1.50 SimonPropertyGroup SPG 207.69 1.96 VMware VMW 52.31 0.22 ExpeditorsIntl EXPD 48.81 0.10 TRowePrice TROW 73.46 -0.44
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0.06
Avalonbay AVB 190.20 1.37 ChinaLifeInsADR LFC 12.29 -0.12 EssexProp ESS 233.86 1.51 JuniperNetworks JNPR 25.51 ONEOK OKE 29.86 0.82 SOQUIMICH ADR SQM 20.55 -0.32 Wabtec WAB 79.29 0.08 s Fiserv FISV 102.58 0.50 21stCenturyFoxClB FOX 28.20 ...
...
Avangrid AGR 40.11 -0.17 ChinaMobileADR CHL 55.45 0.64 EsteeLaudr A EL 94.31 -0.11 KARAuctionServices KAR 38.14 ONEOKPartners OKS 31.40 0.35 SonocoProducts SON 48.57 -0.13 WalMart WMT 68.49 -0.31 FlextronInt FLEX 12.06 0.12 UltaSalon ULTA 193.74 -0.37
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-0.24
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0.19 Och-ZiffCapMgmt OZM 4.35 0.27
Avnet AVT 44.30 0.06 ChinaTelecomADR CHA 52.51 -0.06 s Exelon EXC 35.86 SoCopper SCCO 27.71 Waters WAT 131.92 -0.24 FrontierComms FTR 5.59 -0.04 VCA WOOF 57.69 -0.04
0.43 KTADR KT 13.42 0.02 OldRepublic ORI 18.28 -0.02 -0.48
AxaltaCoatingSys AXTA 29.20 0.29 ChinaUnicomADR CHU 13.16 0.20 s ExtraSpaceStorage EXR 93.46 SowestAir LUV 44.80 Watsco WSO 134.74 1.17 Garmin GRMN 39.96 0.10 VeriSign VRSN 88.54 -1.05
0.95 KSCitySo KSU 85.45 -0.35 OmegaHealthcare OHI 35.30 0.59 -0.18
AxisCapital AXS 55.46 ChipotleMex CMG 470.97 4.82 ExxonMobil XOM 83.59 s OmnicomGroup OMC 83.23 -0.09 SpectraEnergy SE 30.60 WeatherfordIntl WFT 7.78 0.11 GileadSciences GILD 91.86 -0.11 VeriskAnalytics VRSK 79.92 1.19
0.47 -0.93 Kellogg K 76.55 -0.28 0.05
BB&T BBT 33.27 Chubb CB 119.15 -0.59 FMC SpectraEnergyPtrs SEP 48.12 WeingartenRealty WRI 37.52 ... Goodyear GT 32.98 0.21 VertxPharm VRTX 79.49 1.09
-0.26 FMC 40.37 -0.91 KeyCp KEY 11.04 -0.11 OpkoHealth OPK 10.39 0.49 -0.25
BCE ChunghwaTelecomADR CHT 33.76 -0.46 FMCTechnologies FTI 27.36 s SpectrumBrndsHldgs SPB 109.28 WellsFargo WFC 48.36 -0.29 Grifols ADR GRFS 15.47 -0.07 Viacom A VIA 45.30 1.06
BCE 45.54 -0.32 0.27 KeysightTechs KEYS 27.74 0.32 Oracle ORCL 40.91 -0.06 2.14
BHPBillitonADR BHP 25.90 Church&Dwight CHD 92.18 0.06 FactSetResearchSys FDS 151.53 Welltower HCN 69.34 0.46 HDSupplyHoldings HDS 33.07 -0.01 Viacom B VIAB 41.28 1.17
-0.40 -0.50 KilroyRealty KRC 61.87 0.70 OrangeADR ORAN 17.38 -0.17 SpiritAeroSystemsA SPR 45.36 -0.99
BHPBillitonADR BBL 22.73 -0.31 Cigna CI 137.24 -0.22 FedRlty FRT 156.05 0.11 KimberlyClark KMB 134.51 SpiritRealtyCap SRC 11.25 0.13 s WestPharmSvcs WST 69.32 0.86 Hasbro HAS 80.10 1.55 VimpelComADR VIP 4.26 0.32
-1.20 OrbitalATK OA 86.94 -0.83
BPADR BP 30.18 -0.75 CimarexEngy XEC 97.27 0.71 FedEx FDX 162.72 1.15 KimcoRealty KIM 28.78 OrixADR Sprint S 3.48 0.03 s WestarEnergy WR 49.61 -0.19 HenrySchein HSIC 172.63 -0.24 VodafoneGroupADR VOD 32.05 -0.05
0.12 IX 71.39 -0.87
BRFADR Citigroup C 41.75 -0.13 Ferrari RACE 41.70 s SquareClA SQ 15.28 WesternGasEquity WGP 35.64 0.56 Hologic HOLX 34.50 ... WPPADR WPPGY 116.43 -0.82
BRFS 14.22 -0.29 -0.61 KinderMorgan KMI 17.86 ... OwensCorning OC 47.28 -0.10 0.26
BTGroupADR BT 32.08 CitizensFinancial CFG 20.95 -0.30 FiatChryslerAutos FCAU 8.06 s KinrossGold KGC 3.40 s PG&E WesternGasPartners WES 43.41 0.95 JBHunt JBHT 84.24 0.10 WalgreensBootsAll WBA 84.24 0.61
-0.38 -0.09 -0.04 PCG 59.72 0.28 StJudeMedical STJ 55.00 -0.05
BakerHughes BHI 43.83 Clorox CLX 126.06 -1.91 t FibriaCelulose ADR FBR 8.48 WesternUnion WU 19.29 -0.04 HuntingtonBcshs HBAN 9.54 -0.05 WesternDigital WDC 47.24 1.10
0.46 -0.21 Kohl's KSS 46.61 0.56 PNC FnlSvcs PNC 84.57 -0.78 StanleyBlDck SWK 105.21 0.04
Ball Coach COH 40.09 -0.23 WestlakeChemical WLK 46.30 -0.62 IdexxLab IDXX 78.32 0.57 WholeFoods WFM 31.11 -0.76
BLL 71.29 0.39 FidNtlFnl FNF 33.90 -0.08 KoninklijkePhilADR PHG 28.55 -0.03 POSCOADR PKX 47.33 -0.28 StarwoodHotels HOT 83.43 -0.23
s CocaCola KO 46.39 -0.19 WestpacBankingADR WBK 23.26 0.06 IPG Photonics IPGP 96.08 -0.26 WillisTowersWatson WLTW 118.66 -0.08
BancoBilbaoVizADR BBVA 6.52 -0.10 FNFVGroup FNFV 10.85 0.07 KoreaElcPwrADR KEP 25.75 -0.02 PPG Ind PPG 111.49 -0.41 StateSt STT 58.52 ...
Coca-ColaFemsaADR KOF 83.05 -0.08 s PPL WestRock WRK 39.03 0.78 IcahnEnterprises IEP 63.05 0.58 WynnResorts WYNN 93.43 -0.56
BancodeChileADR BCH 64.45 -0.13 FidelityNtlInfo FIS 63.31 0.13 Kroger KR 38.25 0.16 PPL 38.07 0.37 StatoilADR STO 15.56 -0.12
Weyerhaeuser WY 30.98 -0.07 Illumina ILMN 162.11 4.68 Xilinx XLNX 47.43 -0.44
BcoSantChileADR BSAC 19.35 -0.11 CocaColaEnt CCE 50.74 -0.35 58.comADR WUBA 55.65 0.50 KyoceraADR KYO 44.16 0.11 PVH Corp. PVH 99.06 0.14 Steris STE 71.05 -0.69
Whirlpool WHR 180.34 2.99 Incyte INCY 72.47 4.12 Yahoo YHOO 36.81 0.25
WhiteWaveFoods WWAV 40.64 0.28 Intel INTC 32.35 -0.36 Yandex YNDX 15.32 -0.08
InteractiveBrokers IBKR 39.32 0.10 ZionsBancorp ZION 24.21 -0.42
Mutual Funds | WSJ.com/fundresearch
Williams WMB 16.07 0.41
Net YTD Net YTD Net YTD WilliamsPartners WPZ 20.45 Intuit INTU 104.01 0.83
0.72
Fund NAV Chg % Ret Fund NAV Chg % Ret Fund NAV Chg % Ret
WilliamsSonoma WSM 54.74 -0.99 IntuitiveSurgical ISRG 601.05 2.77 NYSE MKT
Net YTD ShtDurBnd 10.88 +0.01 0.8 Intl G&I 12.92 -0.07 -1.1 WelltnAdml 64.35 -0.07 1.9
Explanatory Notes Data provided by Fund NAV Chg % Ret USLgCpCorPls 26.23 -0.03 -2.2 IntlStk 15.24 -0.07 -0.3 WndsrAdml 63.27 -0.18 -2.0
WiproADR WIT 12.58 0.05 IonisPharma IONS 40.50 1.87 BritishAmTobADR BTI 116.91 -0.07
WooriBankADR WF 24.94 -0.04 JD.comADR JD 26.50 -0.74 CheniereEnergy LNG 33.83 0.12
Top 250 mutual-funds listings for Nasdaq-published share classes with MCapGro 73.01 +0.22 -0.4 VANGUARD FDS
GrowCoK 128.61 +0.16 -5.7 Workday WDAY 76.84 0.70 JackHenry JKHY 84.57 -1.39 CheniereEngyPtnr CQP 28.84 0.56
net assets of at least $500 million each. NAV is net asset value.
Percentage performance figures are total returns, assuming reinvestment InvGrBd 11.30 +0.02 3.1 L MCapVal 26.55 +0.06 6.5 DivdGro 22.98 -0.06 2.8 WyndhamWorldwide WYN 76.43 0.02 JazzPharma JAZZ 130.55 6.52 ImpOil IMO 33.40 0.06
of all distributions and after subtracting annual expenses. Figures don’t LowP r 48.22 -0.14 1.0 Lazard Instl N Horiz 40.72 +0.27 -4.1 GNMA 10.79 +0.02 1.9
reflect sales charges (“loads”) or redemption fees. NET CHG is change in LowPriStkK r 48.19 -0.13 1.0 EmgMktEq 14.61 +0.04 8.7 N Inc 9.55 +0.02 2.7 HlthCare r 195.95 -0.12 -8.8
NAV from previous trading day. YTD%RET is year-to-date return. 3-YR
Exchange-Traded Portfolios | WSJ.com/ETFresearch
MagIn 87.52 -0.12 -2.1 Loomis Sayles Fds OverS SF r 8.87 -0.05 -1.3 IntlVal 30.93 -0.21 -0.5
%RET is trailing three-year return annualized.
OTC 76.16 +0.42 -8.7 LSBondI 13.19 +0.01 2.8 R2015 13.95 ... 2.0 INSTTRF2020 19.53 -0.02 1.8
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. Puritn 20.17 -0.01 -0.8 R2020 19.98 -0.02 1.5 INSTTRF2025 19.37 -0.03 1.6
j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. Lord Abbett A Closing Chg YTD
Largest 100 exchange-traded funds, latest session
p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock SrsInvGrdF 11.31 +0.03 3.2 ShtDurIncmA p NA ... NA R2025 15.12 -0.02 1.1 INSTTRF2030 19.20 -0.03 1.4 ETF Symbol Price (%) (%)
split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. TotalBond 10.51 +0.03 3.2 Lord Abbett F R2030 21.98 -0.04 0.8 LifeCon 18.17 -0.01 2.3 Thursday, March 31, 2016
x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to iSharesUSPreferred PFF 39.03 0.10 0.5
incomplete price, performance or cost data. NE-Not released by Lipper; data
Fidelity Selects ShtDurIncm NA ... NA R2035 15.86 -0.03 0.4 LifeGro 27.57 -0.06 1.1 Closing Chg YTD
Biotech r 168.78 +4.97-28.5 R2040 22.61 -0.05 0.1 LifeMod 23.45 -0.03 1.7 ETF Symbol Price (%) (%) iShShortTreasuryBd SHV 110.36 –0.02 0.1
under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Health r 182.60 +0.38-12.3 M SmCapStk 38.55 +0.02 -0.2 Primcp r 97.74 -0.12 -2.0 AlerianMLPETF AMLP 10.92 1.96 –9.4
iSh1-3YTreasuryBd SHY 85.03
IEF 110.34
0.05 0.8
Thursday, March 31, 2016 Fidelity Spartan Value 31.43 -0.11 0.6 PrmcpCor 20.73 -0.03 -0.4 CnsmrDiscSelSector XLY 79.10 –0.11 1.2
iSh7-10YTreasuryBd 0.36 4.5
Metropolitan West TLT 130.61
Net YTD Net YTD 500IdxInv 72.75 -0.15 1.3 SelValu r 26.17 +0.01 1.2 iSh20+YTreasuryBd 0.71 8.3
Fund NAV Chg % Ret Fund NAV Chg % Ret 500IndInst 72.77 -0.15 1.3
TotRetBd NA ... NA S STAR 23.42 -0.01 0.6
CnsStapleSelSector
DBGoldDoubleLgETN
XLP 53.06
DGP 25.03
–0.52 5.1
1.82 38.0
iShRussellMCGrowth IWP 92.16 0.24 0.3
TotRetBdI NA ... NA
A EmgMktVa 22.16
EmMktCorEq 16.85
...
+0.04
8.9
7.3
Fidelity Spartan Adv
500IdxAd 72.77 -0.15 1.4
TRBdPlan NA ... NA Schwab Funds
S&P Sel 31.97 -0.07 1.3
STIGrade
TgtRe2015
10.69 +0.01
14.50 -0.01
1.7
1.9
DBGoldDoubleShrt DZZ 6.57 1.23–25.9
MktVectorsBiotech
MktVectorsGoldMin
BBH 103.68
GDX 19.97
2.57–18.3
–1.29 45.6
MFS Funds Class A DeutscheXMSCIEAFE DBEF 25.54 –1.08 –6.0
American Century Inv Fixd 10.31 ... 0.4 ExtMktAd r 49.77 +0.18 -0.9 TgtRe2020 27.62 -0.03 1.7 MktVectorsOilSvcs OIH 26.61 0.15 0.6
XLE 61.89 –0.05 2.6
Ultra 34.37 -0.08 -1.9 IntlCoreEq 11.24 -0.07 -0.9 IntAd r 34.96 -0.25 -2.7 ValueA p 33.39 -0.10 2.2
MFS Funds Class I
T TgtRe2025 15.86 -0.02 1.5
EnSelectSectorSPDR
FinSelSectorSPDR XLF 22.50 –0.22 –5.6 MktVectorsPharm PPH 57.50 –0.28 –5.0
American Funds Cl A IntSmCo 17.20 -0.09 0.4 TotMktAd r 59.21 -0.06 0.9 TgtRe2030 28.08 -0.05 1.3 MktVectorsRetail RTH 77.15 –0.37 –0.7
AmcpA p 26.07 -0.03 0.5 IntSmVa 18.45 -0.10 -0.8 First Eagle Funds ValueI 33.56 -0.11 2.2 TIAA/CREF Funds GuggenheimSP500EqW RSP 78.53 ... 2.5
EqIdxInst 15.22 -0.02 1.0 TgtRe2035 17.02 -0.03 1.1 XLV 67.78 MktVectorsSemi SMH 55.08 –0.56 3.4
AMutlA p 34.89 -0.09 3.6 Mutual Series HealthCareSelSect –0.31 –5.9
Dimensional Fds GlbA 53.14 -0.18 3.5 TgtRe2040 28.69 -0.07 0.8 PwrShrs QQQ QQQ 109.20 –0.15 –2.4
BalA p 24.15 -0.03 1.8 US CoreEq1 17.35 -0.01 1.5 FMI Funds GlbDiscA 28.43 -0.08 -1.5 Tweedy Browne Fds IndSelSectorSPDR XLI 55.47 –0.23 4.6
TgtRe2045 17.92 -0.05 0.8 PS SP500LoVoltlPrt SPLV 40.33 –0.17 4.6
BondA p 12.90 +0.03 2.9 US CoreEq2 16.51 -0.02 1.4 LgCap 19.24 -0.03 3.4 GlbDiscz 28.93 -0.08 -1.4 GblValue 23.89 -0.11 -2.3 iShIntermCredBd CIU 109.69 0.24 2.2
TgtRe2050 28.71 -0.07 0.8 SPDRBarclaysHiYdBd JNK 34.25 0.15 1.0
CSJ 105.42 0.09 0.8
CapIBA p 57.52 -0.11 3.9 US Small 28.81 +0.03 1.8 FPA Funds
O V TgtRetInc 12.70 ... 2.3
iSh1-3YCreditBond
iSharesTIPSBondETF TIP 114.64 0.10 4.5 SchwUS BrdMkt SCHB 49.28 –0.04 0.5
CapWGrA 43.27 -0.12 0.3 US SmCpVal 31.07 +0.06 2.1 FPACres 31.00 -0.03 -0.2 TotIntBdIxInv 10.88 -0.01 3.4 SchwUS LrgCap SCHX 48.84 –0.12 0.6
FrankTemp/Franklin A Oakmark Funds Cl I VANGUARD ADMIRAL iSh3-7YTreasuryBd IEI 125.95 0.22 2.7
EupacA p 44.28 -0.12 -2.4 USLgVa 30.68 -0.09 0.1 WellsI 25.28 ... 3.8 SPDR DJIA Tr DIA 176.64 –0.14 1.5
FdInvA p 50.81 -0.14 0.5 Dodge & Cox CA TF A p 7.59 +0.02 1.9 EqtyInc 28.79 +0.02 0.8 500Adml 189.98 -0.39 1.3
Welltn 37.26 -0.04 1.9
iShCoreMSCIEAFEETF IEFA 53.14 –0.77 –2.3
SPDR GldTr GLD 117.64 0.46 15.9
GwthA p 40.24 -0.04 -2.5 Balanced 92.84 -0.04 0.3 Fed TF A p 12.44 +0.02 1.5 Oakmark 62.47 -0.06 -0.6 BalAdml 29.65 +0.01 2.0
WndsrII 33.57 -0.06 0.2
iShCoreMSCIEmgMk IEMG 41.62 –0.14 5.7
CAITAdml 11.97 +0.03 1.7 iShCoreS&P500ETF IVV 206.65 –0.23 0.9 SPDR S&PMdCpTr MDY 262.72 0.05 3.4
HI TrA p 9.46 +0.01 2.7 Income 13.47 +0.03 2.4 Growth A p 73.52 -0.06 0.2 OakmrkInt 20.73 -0.05 -2.9 VANGUARD INDEX FDS
CapOpAdml r 114.84 +0.28 -3.2 iShCoreS&PMdCp IJH 144.19 0.11 3.5 SPDR S&P 500 SPY 205.52 –0.24 0.8
ICAA p 34.25 -0.08 3.1 Intl Stk 35.11 -0.13 -3.8 IncomeA p 2.11 -0.01 2.0 Old Westbury Fds 500 189.99 -0.38 1.3 SPDR S&P Div SDY 79.93 –0.22 8.6
IncoA p 20.67 -0.03 3.0 Stock 157.16 -0.27 -1.0 RisDv A p 49.99 -0.15 4.7 LrgCpStr 12.48 -0.05 0.1 EMAdmr 28.74 +0.06 5.3
ExtndIstPl 154.96 +0.58 -0.8 iShCoreS&PSmCpETF IJR 112.57 0.11 2.2
EqIncAdml 63.69 -0.15 3.5 iShCoreUSAggBd AGG 110.83 0.31 2.6 TechSelectSector XLK 44.36 –0.20 3.6
N PerA p 35.13 -0.09 -2.5 DoubleLine Funds FrankTemp/Franklin C Oppenheimer Y TotBd2 10.86 +0.02 3.1
ExtndAdml 62.80 +0.24 -0.9 iShSelectDividend DVY 81.67 0.17 8.7 UtilitiesSelSector XLU 49.62 0.59 14.6
NEcoA p 34.84 +0.03 -3.1 TotRetBdI NA ... NA Income C t 2.14 ... 2.3 DevMktY 30.91 -0.02 3.1 TotIntl 14.42 -0.08 -0.2
GNMAAdml 10.79 +0.02 1.9 iSharesGold IAU 11.88 0.42 16.1 VangdInfoTch VGT 109.53 –0.07 1.1
NwWrldA 50.07 -0.03 0.1 TotRetBdN NA ... NA FrankTemp/Temp A IntGrowY 36.27 -0.17 1.1 TotSt 51.01 -0.05 0.9
GlBond A p 11.49 +0.01 ... GrwthAdml 54.79 -0.06 0.3 iShiBoxx$InvGrCpBd LQD 118.82 0.40 4.2 VangdSmCapValue VBR 101.88 0.12 3.1
SmCpA p 42.38 +0.10 -2.9 VANGUARD INSTL FDS
TxExA p 13.19 +0.02 1.5 F Growth A p 21.57 -0.07 -1.6 P HlthCareAdml r 82.66
HYCorAdml r 5.59
-0.05
+0.01
-8.8
2.3 BalInst 29.65 +0.01 2.0 iShiBoxx$HYCpBd HYG 81.69 0.13 1.4 VangdHlthCr VHT 123.30 –0.06 –7.2
FrankTemp/Temp Adv iShMBSETF MBB 109.48 0.15 1.7 VangdDivApp VIG 81.25 –0.37 4.5
WshA p 38.95 -0.13 1.8 Fidelity Advisor A Parnassus Fds DevMktsIndInst 11.54 -0.08 -2.0
GlBondAdv p 11.44 ... 0.1 InfProAd 26.36 +0.04 4.6 iShMSCIACWIETF ACWI 56.06 –0.48 0.4 VanguardFTSEDevMk VEA 35.88 –0.88 –2.3
AMG Managers Funds NwInsghtA p 25.65 -0.05 -0.9 ParnEqFd 37.80 -0.25 2.6 IntlGrAdml ExtndInst 62.79 +0.23 -0.9
65.72 -0.34 -2.0 EFAV 66.44 VanguardFTSEEmgMk VWO 34.58 –0.12 5.7
YacktmanFd 21.72 -0.04 4.1 Fidelity Advisor I GrwthInst 54.79 -0.06 0.3 iShMSCIEAFEMinVol –0.73 2.4
AQR Funds NwInsghtI 26.15 -0.05 -0.8
H PIMCO Fds Instl
AllAsset NA
ITBondAdml
... NA ITIGradeAdml
11.64 +0.03 4.0
InPrSeIn 10.74 +0.02 4.6 iSharesMSCIEAFESC SCZ 49.80 –0.58 –0.3 VanguardFTSEEurope VGK 48.52 –0.80 –2.7
9.91 +0.03 3.6 EFA 57.16 VangdAllWldxUS VEU 43.15 –0.80 –0.6
MgdFutStrI 10.22 +0.04 0.4 Fidelity Freedom Harbor Funds ShortT NA ... NA LTGradeAdml 10.43 InstIdx 188.11 -0.39 1.3 iSharesMSCIEAFEETF –0.99 –2.7
+0.05 6.8 VangdGrowth VUG 106.45 –0.11 0.1
Artisan Funds iShMSCIEmgMarkets EEM 34.25 –0.09 6.4
FF2020 14.63 -0.01 0.7 CapApInst 57.47 -0.09 -5.5 TotRt 10.18 +0.02 1.8 MidCpAdml 150.10 +0.37 1.2 InstPlus 188.12 -0.39 1.3
Intl Inv 27.64 -0.10 -3.6 FF2025 iShMSCIEurozoneETF EZU 34.39 –1.35 –1.9 VangdHiDivYld VYM 69.04 –0.23 3.4
12.49 -0.01 0.4 IntlInst r 59.73 -0.41 0.5 PIMCO Funds A MuHYAdml 11.43 +0.02 1.9 InstTStPlus 46.16 -0.05 1.0
MidCpInst 33.16 +0.09 1.2 iShMSCIGermanyETF EWG 25.73 –0.77 –1.8 VngdInter-Term BIV 86.27 0.41 3.9
TotRetA 10.18 +0.02 1.7 MuIntAdml
B FF2030 15.20
FreedomK2020 13.62
-0.02 -0.1
-0.01 0.7 I PIMCO Funds D MuLTAdml
14.39
11.87
+0.03
+0.03
1.6
1.9 MidCpIstPl 163.53 +0.40 1.2 iShMSCIJapanETF EWJ 11.41 –1.64 –5.9 VangIntrCorpBd VCIT 86.93 0.36 3.4
Baird Funds SmCapInst 53.43 +0.16 1.0 iShMSCIUSAMinVol USMV 43.93 –0.14 5.0 VangdLgCap VV 94.01 –0.14 0.5
FreedomK2025 14.17 -0.01 0.5 Invesco Funds A IncomeFd NA ... NA MuLtdAdml 11.05 +0.01 0.7
CorBdInst 11.11 +0.02 3.1 FreedomK2030 14.33 PIMCO Funds Instl STIGradeInst 10.69 +0.01 1.8 iShNasdaqBiotech IBB 260.81 2.30–22.9 VangdMdCap VO 121.23 0.26 0.9
-0.01 ... EqIncA 9.48 -0.01 -1.0 MuShtAdml 15.82 ... 0.3
BlackRock Funds A IncomeFd NA ... NA PrmcpAdml r 101.26 TotBdInst 10.90 +0.02 3.1 iShNatlAMTFrMuniBd MUB 111.65 0.16 0.8 VangdReit VNQ 83.80 0.61 5.1
FreedomK2035 14.70 -0.03 -0.4 -0.12 -1.9
GlblAlloc p 17.74 -0.02 -0.6 FreedomK2040 14.74 -0.02 -0.3 J PIMCO Funds P REITAdml r 118.74 +0.76 6.3 TotBdInst2 10.86 +0.02 3.1 iShRussell1000Gwth IWF 99.78 –0.19 0.3 VanguardS&P500 VOO 188.56 –0.24 0.9
BlackRock Funds C Fidelity Invest IncomeP NA ... NA SmCapAdml TotBdInstPl 10.90 +0.02 3.1 iShRussell1000ETF IWB 114.07 –0.13 0.7 VangdShrtTrm BSV 80.63 0.12 1.3
John Hancock Class 1 53.43 +0.16 1.0
GlblAlloc t 16.14 -0.01 -0.7 AMgr50% 16.21 ... 1.1 LSBalncd Price Funds TotIntBdIdxInst 32.66 -0.03 3.5 iShRussell1000Val IWD 98.81 –0.21 1.0 VangShrtCorpBd VCSH 80.03 0.19 1.3
14.24 -0.04 0.4 STBondAdml 10.56 +0.01 1.6
BlackRock Funds Inst Balanc 21.24 ... 0.1 LSGwth BlChip 68.41 -0.15 -5.5 STIGradeAdml 10.69 TotIntlInstIdx r 96.48 -0.47 -0.1 iShRussell2000Gwth IWO 132.61 0.47 –4.8 VangdSmCap VB 111.49 0.27 0.8
14.74 -0.02 -0.6 +0.01 1.8
EqtyDivd 21.11 -0.08 0.5 BalancedK 21.24 -0.01 0.1 John Hancock Instl CapApp 25.56 ... 2.0 TotBdAdml 10.90 +0.02 3.1 TotItlInstPlId r 96.49 -0.48 -0.1 iShRussell2000ETF IWM 110.63 0.28 –1.8 VangdTtlBndMkt BND 82.81 0.19 2.5
GlblAlloc 17.85 -0.01 -0.4 BluCh 65.78 -0.03 -4.6 DispValMCI 19.14 +0.03 -0.1 EmMktS 30.03 +0.02 5.4 TotIntBdIdxAdm 21.76 -0.02 3.4 TotStInst 51.04 -0.05 0.9 iShRussell2000Val IWN 93.18 0.01 1.3 VanguardTotIntlBd BNDX 54.54 –0.07 3.1
HiYldBd 7.14 ... 1.6 Contra 96.66 -0.24 -1.6 JPMorgan Inst Class EqInc 29.14 -0.06 2.7 TotIntlAdmIdx r 24.12 -0.12 -0.2 VirtusFunds Cl I iShRussell3000ETF IWV 120.86 –0.12 0.5 VanguardTtlIntlStk VXUS 44.92 –0.77 –0.4
StratIncOpptyIns 9.66 ... -0.6 ContraK 96.61 -0.23 -1.5 MdCpVal 35.30 +0.06 3.9 EqIndex 55.41 -0.12 1.3 TotStAdml 51.03 -0.05 0.9 EmMktI 9.16 ... 2.2 iShRussellMid-Cap IWR 162.92 0.12 1.7 VangdTtlStock VTI 104.82 –0.11 0.5
CpInc r 9.11 +0.02 0.6 JPMorgan R Class Growth 50.78 -0.11 -5.4 TxMIn r 11.53 -0.08 -2.0 iShRussellMCValue IWS 70.93 0.14 3.3 VangdTotlWrld VT 57.69 –0.05 0.1
D DivIntl 34.03 -0.21 -2.9 CoreBond 11.81 +0.02 2.8 HelSci 60.49 +0.30-12.2 ValAdml 32.13 -0.07 1.6 W iShS&PMC400Growth IJK 162.61 0.22 1.0 VanguardValueETF VTV 82.39 –0.17 1.1
Dimensional Fds DivIntlK r 33.98 -0.20 -2.9 JPMorgan Select Cls HiYield 6.25 +0.01 2.7 WdsrllAdml 59.57 -0.11 0.2 Western Asset iShS&P500Growth IVW 115.89 –0.28 0.1 WisdomTreeEurope HEDJ 51.92 –1.44 –3.5
5GlbFxdInc 11.11 +0.02 2.3 GroCo 128.72 +0.16 -5.7 CoreBond 11.80 +0.03 2.8 InstlCapG 27.03 -0.07 -6.4 WellsIAdml 61.25 +0.02 3.8 CorePlusBdI NA ... NA iShS&P500ValueETF IVE 89.93 –0.21 1.6 WisdomTreeJapanHdg DXJ 43.71 –1.31–12.7
COMMODITIES & CREDIT MARKETS

Futures Contracts | WSJ.com/commodities Open
Contract
High hilo Low Settle Chg
Open
interest Open
Contract
High hilo Low Settle Chg
Open
interest
Contract Open Interest Rate Futures Swiss Franc (CME)-CHF 125,000; $ per CHF
Metal & Petroleum Futures Open High hilo Low Settle Chg interest June 1.0397 1.0481 s 1.0381 1.0444 .0037 36,228
Contract Open Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Open High hi lo Low Settle Chg interest Soybean Meal (CBT)-100 tons; $ per ton. June 163-190 164-240 163-100 164-140 31.0 503,086 Australian Dollar (CME)-AUD 100,000; $ per AUD
May 271.50 274.90 268.10 270.30 –1.60 148,734 Sept 162-090 163-120 162-090 163-050 30.0 38 June .7645 .7698 s .7609 .7650 .0004 122,170
Copper-High (CMX)-25,000 lbs.; $ per lb. Sept .7585 .7663 s .7578 .7618 .0005 171
July 274.10 277.00 270.70 273.10 –1.50 100,493 Treasury Notes (CBT)-$100,000; pts 32nds of 100%
April 2.1860 2.1955 2.1755 2.1815 –0.0055 2,086
May 2.1895 2.2010 2.1660 2.1830 –0.0070 97,720 Soybean Oil (CBT)-60,000 lbs.; cents per lb. June 130-015 130-170 129-305 130-125 12.0 2,653,782 Mexican Peso (CME)-MXN 500,000; $ per MXN
May 33.79 34.37 s 33.55 34.22 .43 206,020 Sept 130-020 130-020 130-020 130-090 13.0 563 June .05765 .05809 s .05717 .05749 –.00020 109,265
Gold (CMX)-100 troy oz.; $ per troy oz.
April 1225.60 1239.60 1224.50 1234.20 7.30 6,850 July 34.01 34.56 s 33.83 34.44 .43 120,636 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Euro (CME)-€125,000; $ per €
June 1227.00 1242.30 1225.10 1235.60 7.00 355,756 Rough Rice (CBT)-2,000 cwt.; $ per cwt. March 121-082 121-125 121-075 121-110 5.0 34,709 June 1.1360 1.1438 s 1.1335 1.1412 .0052 332,859
Aug 1228.90 1243.50 1228.00 1237.00 6.90 35,449 May 1006.00 1023.50 t 942.50 969.00 –34.00 10,214 June 120-312 121-085 120-287 121-052 7.0 2,439,237 Sept 1.1400 1.1474 s 1.1373 1.1450 .0052 1,813
Oct 1230.10 1243.80 1230.10 1238.30 6.90 19,845 July 1037.00 1050.00 t 970.00 996.50 –34.00 2,168 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec 1232.40 1245.70 1232.10 1239.60 6.90 22,196 Wheat (CBT)-5,000 bu.; cents per bu. March 109-140 109-140 109-117 109-132 … 10,423 Index Futures
June'17 1234.50 1242.70 1234.50 1243.60 6.80 5,731 May 464.00 475.00 455.25 473.50 9.50 202,738 June 109-110 109-130 109-095 109-120 1.2 947,918
Mini DJ Industrial Average (CBT)-$5 x index
Palladium (NYM) - 50 troy oz.; $ per troy oz. July 471.25 482.25 462.75 480.75 9.25 128,692 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. June 17625 17659 s 17564 17595 –27 103,321
April 566.85 566.85 566.85 563.05 –2.35 28 Wheat (KC)-5,000 bu.; cents per bu. March 99.638 99.638 99.638 99.637 –.001 79,151 Sept 17503 17560 s 17489 17510 –22 271
May 569.25 573.80 569.25 563.50 –2.40 3 May 466.00 479.25 459.00 476.25 10.50 85,308 May 99.620 99.630 99.620 99.625 … 198,436
June 565.25 575.90 562.00 564.00 –2.35 21,668 July 480.75 490.00 469.75 487.00 10.00 71,839 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
Sept 566.55 566.55 566.55 564.65 –2.25 568 June 2055.70 2059.50 s 2047.70 2051.50 –3.70 62,896
Wheat (MPLS)-5,000 bu.; cents per bu. June 104.984 105.297 s 104.859 105.188 .375 26,653
Platinum (NYM)-50 troy oz.; $ per troy oz. Sept 2051.20 s 2042.20 2043.60 –3.60 474
May 515.25 531.25 s 512.00 529.50 14.25 26,564 1 Month Libor (CME)-$3,000,000; pts of 100%
April 965.90 982.00 964.00 976.60 12.30 1,264 July 523.00 539.25 s 520.00 537.75 14.50 19,994 April 99.5100 99.5100 99.5100 99.5950 … 341
Mini S&P 500 (CME)-$50 x index
July 964.70 985.40 963.90 977.50 11.30 54,050 June 2055.50 2059.75 s 2047.25 2051.50 –3.75 2,857,423
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. May 99.5125 99.5125 99.5125 99.5875 … 416
Silver (CMX)-5,000 troy oz.; $ per troy oz. Sept 2046.75 2051.50 s 2039.50 2043.60 –3.75 8,683
April 152.575 157.075 151.450 157.075 4.500 6,118 Eurodollar (CME)-$1,000,000; pts of 100%
April 15.420 15.440 15.420 15.460 0.254 236 May 150.750 155.250 149.575 155.250 4.500 15,148 April 99.3700 99.3700 99.3650 99.3700 … 172,606 Mini S&P Midcap 400 (CME)-$100 x index
May 15.215 15.550 15.200 15.464 0.253 114,643 June 99.3100 99.3150 99.3000 99.3100 … 1,175,492 June 1440.30 1446.10 1435.80 1441.20 .40 86,396
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. April 132.325 133.375 131.025 132.925 .575 43,638 Sept 99.2400 99.2450 99.2300 99.2400 … 1,062,707 Mini Nasdaq 100 (CME)-$20 x index
May 38.30 39.04 37.57 38.34 0.02 548,529 Dec 99.1700 99.1850 99.1600 99.1750 .0050 1,184,258 June 4480.3 4495.5 s 4462.3 4476.3 –5.8 216,738
June 122.900 124.700 122.275 124.025 .950 130,186
June 39.55 40.41 38.99 39.75 0.09 240,124 Sept 4469.8 4486.5 s 4458.3 4469.3 –5.8 204
July 40.41 41.29 39.91 40.69 0.14 100,448 Hogs-Lean (CME)-40,000 lbs.; cents per lb.
April 69.275 69.525 67.950 68.350 –.575 21,022 Currency Futures Mini Russell 2000 (ICE-US)-$100 x index
Sept 41.50 42.44 41.14 41.90 0.16 108,150
June 81.675 82.025 80.100 80.850 –.700 91,112 June 1106.60 1114.80 s 1102.30 1109.60 2.60 379,964
Dec 42.65 43.56 42.33 43.02 0.12 195,273 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Sept 1106.10 1110.30 s 1106.10 1103.80 2.60 42
Dec'17 45.44 46.25 45.15 45.84 0.16 103,100 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. June .8937 .8892 .8904 .8912 –.0006 148,422
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. May 311.50 315.20 308.60 310.70 –1.60 3,753 Sept .8966 .8923 .8934 .8950 –.0006 263 Mini Russell 1000 (ICE-US)-$100 x index
April 1.1600 1.1905 1.1547 1.1848 .0251 5,804 July 312.70 315.70 310.00 312.60 –.70 1,041 June 1135.50 1138.40 1132.70 1133.80 –2.30 6,979
Canadian Dollar (CME)-CAD 100,000; $ per CAD
May 1.1733 1.2018 1.1605 1.1855 .0134 108,044 Milk (CME)-200,000 lbs., cents per lb. June .7714 .7798 s .7686 .7707 –.0007 101,826 U.S. Dollar Index (ICE-US)-$1,000 x index
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. April 13.72 13.88 13.72 13.78 .02 4,787 Sept .7710 .7778 s .7688 .7708 –.0008 1,538 June 94.85 95.02 t 94.30 94.58 –.24 54,135
April 1.4297 1.4381 1.4039 1.4265 –.0099 5,016 May 13.78 14.09 13.76 14.01 .14 4,760 British Pound (CME)-£62,500; $ per £ Sept 94.86 95.09 t 94.45 94.66 –.24 1,394
May 1.4600 1.4695 1.4342 1.4467 –.0194 130,493 Cocoa (ICE-US)-10 metric tons; $ per ton. June 1.4381 1.4428 1.4327 1.4373 –.0016 248,173
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. May 2,959 2,979 2,910 2,950 –24 69,430 Sept 1.4364 1.4435 1.4338 1.4382 –.0016 824 Source: SIX Financial Information
May 1.990 2.028 1.930 1.959 –.037 341,940 July 2,974 2,989 2,920 2,959 –26 63,484
June 2.106 2.132 2.032 2.054 –.056 90,244 Coffee (ICE-US)-37,500 lbs.; cents per lb.
July 2.221 2.238 2.138 2.153 –.071 119,298 May 127.45 128.15 125.20 127.45 .45 73,270
Sept 2.308 2.325 2.226 2.237 –.074 93,688 July 129.55 130.20 127.30 129.55 .50 49,466 Cash Prices | WSJ.com/commodities Thursday, March 31, 2016
Oct 2.360 2.379 2.280 2.289 –.076 79,206
Jan'17 2.948 2.952 2.865 2.868 –.074 68,067
Sugar-World (ICE-US)-112,000 lbs.; cents per lb. These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
May 15.9315.99 15.32 15.35 –.52 320,937
July 16.0016.04 15.42 15.45 –.51 257,707
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
Agriculture Futures months.
Corn (CBT)-5,000 bu.; cents per bu. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
May 27.99 27.99 27.99 27.53 .32 1,757 Thursday Thursday Thursday
May 366.75 367.25 t 347.50 351.50 –15.50 571,389
July 371.25 371.75 t 351.50 355.75 –15.75 338,791 July 27.65 27.65 s 27.65 27.02 –.09 2,064
Coins,wholesale $1,000 face-a 13652 Wheat,Spring14%-pro Mnpls-u 5.9950
Oats (CBT)-5,000 bu.; cents per bu. Cotton (ICE-US)-50,000 lbs.; cents per lb. Energy Other metals Wheat,No.2 soft red,St.Louis-bp,u 4.8150
May 185.00 188.00 182.25 185.50 .25 7,478 May 57.51 58.59 57.01 58.44 .77 109,277 Propane,tet,Mont Belvieu-g 0.4400 4.4875
LBMA Platinum Price PM *971.0 Wheat - Hard - KC (USDA) $ per bu-u
July 197.00 197.00 193.50 196.25 … 2,674 July 57.56 58.43 57.04 58.31 .59 55,317 Butane,normal,Mont Belvieu-g 0.5296 Platinum,Engelhard industrial 979.0 Wheat,No.1soft white,Portld,OR-u n.a.
Soybeans (CBT)-5,000 bu.; cents per bu. Orange Juice (ICE-US)-15,000 lbs.; cents per lb. NaturalGas,HenryHub-i 1.930 Platinum,Engelhard fabricated 1079.0
May 908.50 914.00 896.00 910.75 1.75 339,142 May 142.20 147.80 s 142.20 147.20 5.40 8,867 NaturalGas,TranscoZone3-i 1.910 Palladium,Engelhard industrial 573.0 Food
July 915.50 922.25 903.50 917.75 1.50 189,737 July 142.25 146.95 s 142.25 146.75 5.25 3,312 NaturalGas,TranscoZone6NY-i 1.290 Palladium,Engelhard fabricated 673.0 Beef,carcass equiv. index
NaturalGas,PanhandleEast-i 1.720 Aluminum, LME, $ per metric ton *1478.0 choice 1-3,600-900 lbs.-u 206.56
NaturalGas,Opal-i 1.740 Copper,Comex spot 2.1815 select 1-3,600-900 lbs.-u 196.11
NaturalGas,MarcellusNE PA-i 1.210
Borrowing Benchmarks | WSJ.com/bonds NaturalGas,HaynesvilleN.LA-i 1.820
Iron Ore, 62% Fe CFR China-s
Shredded Scrap, US Midwest-s,w
53.2
204
Broilers,dressed 'A'-u
Broilers, National comp wghtd-u,w
1.1150
0.8719
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 42.250 Steel, HRC USA, FOB Midwest Mill-s 443 Butter,AA Chicago 1.9550
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 9.450 Cheddar cheese,bbl,Chicago 145.25
Money Rates March 31, 2016
Metals
Fibers and Textiles Cheddar cheese,blk,Chicago 146.00
Burlap,10-oz,40-inch NY yd-n,w 0.5025 Milk,Nonfat dry,Chicago lb. 72
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Gold, per troy oz Cotton,1 1/16 std lw-mdMphs-u 0.5844 Cocoa,Ivory Coast-w 3302
Engelhard industrial 1241.76 Cotlook 'A' Index-t *65.45
guide to general levels but don’t always represent actual transactions. Engelhard fabricated 1334.89 Hides,hvy native steers piece fob-u n.a.
Coffee,Brazilian,Comp 1.3278
Week —52-WEEK— Week —52-WEEK— Handy & Harman base 1237.00
Coffee,Colombian, NY 1.4719
Inflation Wool,64s,staple,Terr del-u,w 3.92
Latest ago High Low Latest ago High Low
Handy & Harman fabricated 1373.07 Eggs,large white,Chicago-u 0.8650
Feb. index Chg From (%) LBMA Gold Price AM *1238.20 Grains and Feeds Flour,hard winter KC 13.80
Low 0.2300 0.2500 0.3500 0.0200 Six month n.q. n.q. 0.04 0.02
level Jan. '16 Feb. '15 LBMA Gold Price PM *1236.25 n.a.
Hams,17-20 lbs,Mid-US fob-u n.a.
Bid 0.2500 0.3700 0.5500 0.0400 Barley,top-quality Mnpls-u
Libor Krugerrand,wholesale-e 1283.31 Bran,wheat middlings, KC-u 58 Hogs,Iowa-So. Minnesota-u 64.01
U.S. consumer price index Offer 0.2900 0.4000 0.5600 0.0800
0.43300 0.44185 0.17850 Maple Leaf-e 1295.65 Corn,No. 2 yellow,Cent IL-bp,u 3.4150 Pork bellies,12-14 lb MidUS-u n.a.
One month 0.43725
All items 237.111 0.08 1.0 Treasury bill auction American Eagle-e 1295.65 Corn gluten feed,Midwest-u,w 86.8 Pork loins,13-19 lb MidUS-u 0.9109
Three month 0.62860 0.63010 0.64195 0.27120
Core 245.680 0.47 2.3 Mexican peso-e 1495.77 Corn gluten meal,Midwest-u,w 443.8 Steers,Tex.-Okla. Choice-u 134.00
4 weeks 0.200 0.270 0.295 0.000 Six month 0.89970 0.91310 0.91740 0.39840
Austria crown-e 1212.52 Cottonseed meal-u,w 208 Steers,feeder,Okla. City-u,w 182.32
13 weeks 0.300 0.300 0.350 0.000 One year 1.21040 1.23740 1.24470 0.68465
International rates Austria phil-e 1295.65 Hominy feed,Cent IL-u,w 92
26 weeks 0.475 0.440 0.585 0.065 Fats and Oils
Week 52-Week Euro Libor Silver, troy oz. Meat-bonemeal,50% pro Mnpls-u,w 303
Engelhard industrial 15.4700 Oats,No.2 milling,Mnpls-u 2.4050 Corn oil,crude wet/dry mill-u 41.5000
Latest ago High Low Secondary market One month -0.328 -0.330 -0.023 -0.330 Grease,choice white,Chicago-u 0.3100
Engelhard fabricated 18.5640 Rice, 5% Broken White, Thailand-l,w 365.00
Fannie Mae Three month -0.249 -0.249 0.010 -0.249 Lard,Chicago-u n.a.
Prime rates Handy & Harman base 15.4650 Rice, Long Grain Milled, No. 2 AR-u,w 22.75
Six month -0.137 -0.136 0.069 -0.140 Handy & Harman fabricated 19.3310 Sorghum,(Milo) No.2 Gulf-u 6.8563 Soybean oil,crude;Centl IL-u 0.3272
30-year mortgage yields
U.S. 3.50 3.50 3.50 3.25 One year -0.016 -0.015 0.195 -0.028 LBMA spot price £10.6791 SoybeanMeal,Cent IL,rail,ton48%-u 276.80 Tallow,bleach;Chicago-u 0.3200
Canada 2.70 2.70 2.85 2.70 30 days 3.149 3.239 3.750 2.979
(U.S.$ equivalent) 15.3800 Soybeans,No.1 yllw IL-bp,u 8.9150 Tallow,edible,Chicago-u 0.3700
Japan 1.475 1.475 1.475 1.475 60 days 3.183 3.270 3.788 2.998 Euro interbank offered rate (Euribor)
One month -0.334 -0.331 -0.019 -0.334
Policy Rates Other short-term rates Three month -0.244 -0.242 0.018 -0.244 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; I=Natural Gas Intelligence;
Euro zone 0.00 0.00 0.05 0.00 Call money Six month -0.132 -0.134 0.086 -0.141 L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted.
*Data as of 3/30
Switzerland 0.50 0.50 0.50 0.50 2.25 2.25 2.25 2.00 One year -0.005 -0.005 0.195 -0.028 Source: WSJ Market Data Group
Britain 0.50 0.50 0.50 0.50
Commercial paper Value 52-Week
Australia 2.00 2.00 2.25 2.00 Latest Traded High Low
30 to 270 days n.q. ... ... ...
Overnight repurchase DTCC GCF Repo Index
U.S. 0.54 0.37 0.54 0.07 Commercial paper (AA financial) Treasury 0.639 106.640 0.639 0.075
©2016 Dow Jones & Co. Inc. All rights reserved. 3DJ3312
90 days 0.58 0.57 0.64 0.06 MBS 0.622 78.000 0.705 0.087
U.S. government rates
Discount Euro commercial paper Open Implied
Federal funds
1.00 1.00 1.00 0.75 30 day
Two month
Three month
n.q.
n.q.
n.q.
n.q. -0.02 -0.14
n.q. -0.01 -0.09
n.q. -0.01 -0.08
Settle Change Interest Rate
DTCC GCF Repo Index Futures

Treasury Mar 99.562 -0.003 5697 0.438
If you can’t
Effective rate 0.2700 0.4000 0.4000 0.0600 Four month n.q. n.q. 0.02 0.00
Treasury Apr 99.550 0.000 3282 0.450
High
Notes on data:
0.5625 0.5625 0.5900 0.3100 Five month n.q. n.q. 0.03 0.01
Treasury May
Weekly survey
99.545 0.005 2920 0.455
find six more
U.S. prime rate is effective December 17, 2015. Discount rate is effective December 17, 2015. U.S.
prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; Latest Week ago Year ago
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF
Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable Freddie Mac
CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on
NYSE Liffe US. 30-year fixed 3.71 3.71 3.70
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; 15-year fixed 2.98 2.96 2.98
General Electric Capital Corp.; Tullett Prebon Information, Ltd. Five-year ARM 2.90 2.89 2.92
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MARKETS REVIEW & OUTLOOK: FIRST QUARTER MARKETS DIGEST

Scoreboard of Wall Street Underwriting: How the 30 Dow Jones Industrials Performed Country-by-Country Derby
First Three Months Percentage change in the first-quarter First-quarter stock-market performance, based on the S&P Dow Jones
Close ($) 1st-qtr Close ($) 1st-qtr Global Indices in U.S.-dollar and local-currency terms ranked by U.S.-
Quarterly Volume of New Global Stocks and Bonds, in billions Company 3/31/16 12/31/15 % chg Company 3/31/16 12/31/15 % chg dollar performance
116.71 112.86 3.4 Local Local
Stocks Bonds Verizon 54.08 46.22 17.0 Travelers
Country U.S. dollar currency Country U.S. dollar currency
$2,050 Caterpillar 76.54 67.96 12.6 General Electric 31.79 31.15 2.1
Wal-Mart Stores 68.49 61.30 11.7 Home Depot 133.43 132.25 0.9 Brazil 25.2% 12.2% Australia 1.6% –3.9%
3M 166.63 150.64 10.6 Merck 52.91 52.82 0.2 Peru 24.0 21.0 Macedonia 1.5 –2.9
1,640 IBM 151.45 137.62 10.1 Microsoft 55.23 55.48 –0.5 Colombia 20.9 14.4 Portugal 0.4 –4.3
UnitedHealth Group 128.90 117.64 9.6 Visa 76.48 77.55 –1.4 Turkey 20.3 16.0 U.S. 0.4 0.8
61.47 62.50 –1.7 Hungary 17.8 11.7 Bulgaria 0.1 –4.5
Coca-Cola 46.39 42.96 8.0 Nike
1,230 Russia 14.9 5.2 Argentina –0.02 12.4
Exxon Mobil 83.59 77.95 7.2 DuPont 63.32 66.60 –4.9
Estonia 13.8 8.5 Sweden –0.3 –4.1
McDonald's 125.68 118.14 6.4 Walt Disney 99.31 105.08 –5.5
South Africa 13.5 7.7 Austria –0.3 –5.0
820 Chevron 95.40 89.96 6.1 Intel 32.35 34.45 –6.1
Thailand 12.7 10.2 France –0.4 –5.1
Johnson & Johnson 108.20 102.72 5.3 Pfizer 29.64 32.28 –8.2
Poland 11.9 5.5 Oman –0.6 –0.6
Cisco Systems 28.47 27.16 4.8 J.P. Morgan Chase 59.22 66.03 –10.3
Chile 11.8 5.5 Qatar –0.9 –0.9
410 United Technologies 100.10 96.07 4.2 American Express 61.40 69.55 –11.7
Malaysia 11.3 1.1 Vietnam –1.1 –2.0
Procter & Gamble 82.31 79.41 3.65 Boeing 126.94 144.59 –12.2
Canada 11.1 3.5 Serbia –1.2 –4.7
Apple 108.99 105.26 3.5 Goldman Sachs 156.98 180.23 –12.9
0 Indonesia 10.5 6.3 Ireland –1.4 –6.0
2011 2012 2013 2014 2015 2016 Slovakia 9.7 4.6 Pakistan –1.5 –1.5
Source: WSJ Market Data Group
Source: Dealogic
Cyprus 9.1 4.0 Denmark –1.6 –6.3
Top Underwriters of Stocks and Bonds, Globally Luxembourg 9.0 3.9 Lebanon –1.8 –1.8
In the U.S. public, Rule 144a, domestic and international equity and Euro mar-
Biggest Percentage Gainers… Mexico 7.7 6.9 Jordan –2.1 –2.0
kets, ranked by first three months 2016 proceeds. Lithuania 7.7 2.6 Hong Kong –2.1 –2.1
1st Quarter 52-Week
Company Symbol Close Net chg % chg Low Close(l) High % chg Morocco 7.4 4.3 Germany –2.3 –6.9
First 3 Months 2016 First 3 Months 2015
Malta 7.3 2.3 Finland –2.5 –7.1
Proceeds Market No. of Proceeds Market Argos Therapeutics ARGS 6.40 4.09 177.1 1.61 l 9.64 –28.7
($billions) share (%) Issues ($billions) share (%) Rank Philippines 7.2 4.9 Belgium –2.5 –7.1
Skyline Corp SKY 9.26 5.70 160.4 2.17 l 9.46 155.8
New Zealand 6.9 5.4 Bahrain –3.0 –3.0
J.P. Morgan 117.7 6.8 521 148.9 7.2 1 Sibanye Gold ADR SBGL 15.17 9.08 149.1 4.07 l 16.00 73.2 Croatia 6.6 0.01 Kazakhstan –3.5 –2.2
BofA-Merrill Lynch 102.1 5.9 459 121.3 5.9 4 DXN DLY GLDMNR 3x BL NUGT 58.54 34.26 141.1 17.40 l 141.90 –44.5 Ukraine 6.6 16.2 U.K. –3.7 –1.2
Citi 100.6 5.8 451 128.0 6.2 2 Direxion Jr Gold Bull 3X JNUG 73.59 42.54 137.0 20.52 l 138.00 –22.7 Taiwan 6.4 4.3 Greece –4.2 –8.6
Barclays 95.6 5.5 318 126.3 6.1 3
Coeur Mining CDE 5.62 3.14 126.6 1.62 l 6.35 19.3 Iceland 6.2 0.6 Spain –4.2 –8.7
Goldman Sachs 88.2 5.1 317 102.7 5.0 6
MediciNova MNOV 7.34 3.79 106.8 2.62 l 8.34 112.8 Czech Republic 6.1 1.2 India –4.2 –4.1
Deutsche Bank 71.1 4.1 295 108.3 5.3 5
US Steel X 16.05 8.07 101.1 6.15 l 27.68 –34.9 Latvia 5.6 0.7 Bangladesh –4.8 –4.9
HSBC 70.3 4.0 285 80.5 3.9 9 0.7 –5.6
First Majestic Silver AG 6.48 3.21 98.2 2.40 l 7.05 18.0 Slovenia 5.6 Kuwait –5.2
Morgan Stanley 66.9 3.8 381 98.8 4.8 7 5.5 0.1 –5.2 –5.2
Teck Resources Cl B TCK 7.61 3.75 97.2 2.56 l 16.20 –44.3 Singapore China
BNP Paribas 53.7 3.1 174 50.4 2.4 12 Tunisia 5.3 4.1 Switzerland –5.8 –9.9
Wells Fargo Sec 52.6 3.0 356 62.6 3.0 10
ProShares Ult Gold Miners GDXX 40.80 20.05 96.6 17.19 l 58.20 –12.9
UAE 4.7 4.7 Egypt –6.4 6.2
EnerNOC ENOC 7.48 3.63 94.3 2.92 l 14.69 –34.8
Top 10 Totals 818.9 47.0 2,203 1,027.8 49.8 South Korea 4.1 1.6 Japan –6.4 –12.5
ProShares Ultra Jr Miners GDJJ 49.29 23.79 93.3 20.18 l 59.73 7.1
Romania 3.1 –2.9 Israel –6.5 –9.7
Industry Total 1,741.8 100.0 6,003 2,064.4 100.0 AngloGold Ashanti ADR AU 13.69 6.59 92.8 5.64 l 14.31 45.3
Netherlands 2.7 –2.1 Italy –11.1 –15.3
Editas Medicine EDIT 34.54 16.34 89.8 12.57 l 43.99 ...
Kenya 2.4 1.5 Sri Lanka –15.2 –14.2
Global Initial Public Offerings Fees1 From Stocks and Bonds
Underwriters of global IPOs by global Top underwriters for global stocks Mauritius 2.1 0.2 Nigeria –17.6 –17.7
issuers, first three months. and bonds, first three months. Biggest Percentage Losers Norway 2.0 –4.7
Amount Mkt Share (%) ($Millions) Source: S&P Dow Jones Indices
1st Quarter 52-Week
Manager ($millions) 2016 2015 Manager 2016 2015 Company Symbol Close Net chg % chg Low Close(l) High % chg
Morgan Stanley 752.6 5.6 9.3 J.P. Morgan 492.9 946.0 Eagle Bulk Shipping EGLE 0.36 –3.16 –89.8 0.35 l 11.58 –95.9 Market Boxscores
Goldman Sachs 676.5 5.0 4.4 BofA-Merrill Lynch 442.1 704.0 Eleven Biotherapeutics EBIO 0.32 –2.69 –89.4 0.25 l 13.78 –95.8 How the major indexes performed
Close % chg from
Haitong Securities 588.4 4.4 0.7 Goldman Sachs 401.4 674.6 SunEdison SUNE 0.54 –4.55 –89.4 0.45 l 33.45 –97.9 First-quarter performance 3/31/16 3/31/15
J.P. Morgan 565.3 4.2 6.9 Morgan Stanley 358.5 709.1 Carbylan Therapeutics CBYL 0.64 –2.98 –82.2 0.52 l 9.22 ...
Deutsche Bank 472.9 3.5 5.0 Citi 349.0 604.9 Dow Jones Industrial Average 1.5% 17685.09 -0.5
Stone Energy SGY 0.79 –3.50 –81.6 0.68 l 19.65 –94.7
Samba Capital 471.0 3.5 0.0 Deutsche Bank 274.8 561.1 DJ U.S. Total Stock Market 0.4 21179.41 -2.4
Direxion Jr Gold Bear 3X JDST 5.70 –24.04 –80.8 5.09 l 73.00 –86.4
Guotai Junan Securities 467.9 3.5 0.2 Barclays 258.4 516.5 DJ World (excl. U.S.) -1.0% 208.19 -10.3
DXN DLY GLDMNR 3x BR DUST 3.23 –13.29 –80.4 2.79 l 40.00 –80.6
China Construction Bank 388.6 2.9 0.0 Wells Fargo Sec 201.3 343.0 NYSE MKT Composite 4.4 2243.24 -5.7
PTC Therapeutics PTCT 6.44 –25.96 –80.1 5.27 l 78.72 –90.1
Nomura 383.1 2.8 1.0 RBC Capital Markets 188.1 291.6 Value Line (Geometric) 1.7 453.17 -11.4
Ultra Petroleum UPL 0.50 –2.00 –80.1 0.18 l 18.04 –96.9
Mizuho 370.6 2.7 0.1 UBS 186.0 344.8 S&P 500 0.8 2059.74 -0.4
Celldex Therapeutics CLDX 3.78 –11.90 –75.9 2.96 l 30.28 –85.7
NYSE Composite 0.6 10207.37 -6.3
Top 10 Totals 5,136.9 38.0 27.4 Top 10 Totals 3,152.4 5,695.7 Valeant Pharm Intl VRX 26.30 –75.35 –74.1 25.75 l 263.81 –86.7 Russell 2000 -1.9 1114.03 -11.1
Industry Total 13,517.0 100.0 100.0 Industry Total 7,275.5 11,359.0 BioCryst Pharm BCRX 2.83 –7.49 –72.6 1.63 l 16.83 –71.0 4869.85 -0.6
Nasdaq Composite -2.7
Vivint Solar VSLR 2.65 –6.91 –72.3 2.41 l 16.00 –78.3
Sources: WSJ Market Data Group; S&P Dow Jones Indices
Syndicated Loans Investment-Grade Bonds2 Southcross Engy Partners SXE 1.05 –2.51 –70.5 0.38 l 16.20 –92.5
Largest lead arrangers of syndicated Corporate investment-grade debt in C&J Energy Services CJES 1.41 –3.35 –70.4 0.80 l 18.45 –87.6
loans in the U.S., first three months. U.S. markets, first three months. Largest Announced Mergers
Amount Mkt Share (%) Amount Mkt Share (%) World-wide mergers and acquisitions, excluding debt.
Manager ($billions) 2016 2015 Manager ($billions) 2016 2015 Most Active Stocks Date
Deal
Value*
BofA-Merrill Lynch 74.84 18.9 16.1 J.P. Morgan 44.50 12.4 14.0 Most heavily traded issues in First quarter of 2016; composite volume, in Acquirer Target Announced ($ billions)
J.P. Morgan 68.66 17.3 16.6 BofA-Merrill Lynch 39.26 10.9 11.2 millions
China National Chemical (China) Syngenta (Switzerland) Feb. 3 44.13
Wells Fargo Sec 40.45 10.2 10.6 Citi 37.05 10.3 9.8 1st Quarter 52-Week Johnson Controls (US) Tyco International (US) Jan. 25 14.64
Citi 35.16 8.9 6.7 Wells Fargo Sec 27.20 7.6 7.1 Company Symbol Volume Close Net chg % chg High Low % chg Deutsche Boerse (Germany) London Stock Exchange (UK) Feb. 23 13.15
Barclays 19.19 4.8 3.6 Goldman Sachs 26.81 7.4 6.6 SPDR S&P 500 SPY 8,942 205.52 1.65 0.8 213.78 181.02 –0.4 TransCanada (Canada) Columbia Pipeline Group (US) March 17 10.29
Mitsubishi UFJ Fin 16.46 4.2 5.2 Morgan Stanley 22.46 6.2 7.8 Bank Of America BAC 8,632 13.52 –3.31 –19.7 18.48 10.99 –13.0 Sherwin-Williams (US) Valspar (US) March 20 9.40
Deutsche Bank 12.99 3.3 2.1 Barclays 21.23 5.9 6.3 Mkt Vectors Gold Miners GDX 5,061 19.97 6.25 45.6 21.42 12.40 5.2 Mylan (US) Meda (Sweden) Feb. 10 7.15
Mizuho 9.21 2.3 1.3 Deutsche Bank 18.69 5.2 4.5 iPath SP 500 VIX Sht Tm VXX 4,967 17.62 –2.48 –12.3 31.48 15.48 –29.7 Protection One (US) ADT (US) Feb. 16 7.06
Credit Suisse 8.64 2.2 2.9 HSBC 15.19 4.2 4.9 iSharesMSCIEmgMarkets EEM 4,320 34.25 2.06 6.4 44.19 27.61 –16.9 Fortis (Canada) ITC (US) Feb. 9 6.99
RBC Capital Markets 8.17 2.1 2.1 BNP Paribas 11.39 3.2 1.3 Tianjin Tianhai Investment
Ingram Micro (US) Feb. 17 6.06
Finl Select Sector SPDR XLF 4,052 22.50 –1.33 –5.6 25.62 18.52 –7.1 Development (China)
Top 10 Totals 293.76 74.1 67.2 Top 10 Totals 263.78 73.2 73.4 Freeport-McMoRan FCX 3,680 10.34 3.57 52.7 23.97 3.52 –45.6 Progressive Waste Solutions
Waste Connections (US) Jan. 19 6.04
Industry Total 396.59 100.0 100.0 Industry Total 360.35 100.0 100.0 iShares MSCI Japan ETF EWJ 3,133 11.41 –0.71 –5.9 13.35 10.18 –10.1 (Canada)
Apple AAPL 2,827 108.99 3.73 3.5 134.54 92.00 –13.0 Toshiba Medical Systems
Canon (Japan) March 17 5.87
(Japan)
High-Yield Bonds Ranking by Revenue General Electric GE 2,740 31.79 0.64 2.1 32.05 19.37 27.5
Thai Charoen (Thailand) Big C Supercenter (Thailand) Feb. 7 5.86
Top underwriters of corporate high- Includes fees from stock, bond and SunEdison SUNE 2,709 0.54 –4.55 –89.4 33.45 0.45 –97.9 CPPIB, GIP, CIC, BCIM, GIC
yield debt in U.S. markets, first three loan underwriting, merger-and-acqui- Asciano (87%) (Australia) March 15 5.85
PwrShrs QQQ Tr Series 1 QQQ 2,620 109.20 –2.66 –2.4 115.75 84.74 3.9 (Canada)
months. sitions advice, first three months. Ford Motor F 2,605 13.50 –0.59 –4.2 16.11 10.44 –15.8 Abbott Laboratories (US) Alere (US) Feb. 1 5.79
Amount Mkt Share (%) Amount Mkt Share (%) Pfizer PFE 2,596 29.64 –2.64 –8.2 36.46 28.25 –13.8 IHS (US) Markit (UK) March 21 5.56
Manager ($billions) 2016 2015 Manager ($billions) 2016 2015
iShares Russell 2000 ETF IWM 2,593 110.63 –1.99 –1.8 129.10 93.64 –11.2 General Electric's appliance
Qingdao Haier (China) Jan. 15 5.40
JPMorgan 1.18 8.2 8.3 business (US)
J.P. Morgan 4.82 11.7 9.2 Chesapeake Energy CHK 2,520 4.12 –0.38 –8.4 16.98 1.50 –71.8
Goldman Sachs 0.98 6.8 7.8 China Overseas Land &
Goldman Sachs 4.63 11.2 6.0 55.23 –0.25 56.85 39.72 37.1 CITIC property portfolio (China) March 14 4.78
Microsoft MSFT 2,381 –0.5 Investment (China)
BofA-Merrill Lynch 3.84 9.3 8.0 BankofAmericaMerrillLynch 0.93 6.5 6.4
VS 2x VIX Short Term TVIX 2,325 4.39 –1.87 –29.9 19.90 4.26 –73.1 Dominion Resources (US) Questar (US) Feb. 1 4.40
Citi 3.54 8.6 8.7 Morgan Stanley 0.89 6.2 6.1
DXN DLY GLDMNR 3x BR DUST 2,225 3.23 –13.29 –80.4 40.00 2.79 –80.6 CRED (China) Liaoning Zhongwang (China) March 22 4.35
Barclays 2.99 7.3 8.6 Citi 0.65 4.5 5.3 Lockheed Martin's Information
Marathon Oil MRO 2,202 11.14 –1.45 –11.5 31.53 6.52 –58.8 Leidos Holdings (US) Jan. 26 4.13
Wells Fargo Sec 2.59 6.3 5.1 Barclays 0.55 3.8 4.4 Systems & Global Solutions (US)
Credit Suisse 2.42 5.9 6.5 Deutsche Bank 0.52 3.6 4.6 Gainers and losers include common issues of $2 or more listed on NYSE, Nasdaq, NYSE MKT or NYSE Private Investor (Wang Jianlin) Dalian Wanda Commercial
Arca at the beginning of the quarter. March 30 4.04
Deutsche Bank 2.17 5.3 7.5 Credit Suisse 0.51 3.6 3.7 (China) Properties (14%) (China)
SunTrustRobinsonHumphreyInc 1.91 4.6 3.1 Wells Fargo Securities 0.36 2.5 2.7 Microchip Technology (US) Atmel (US) Jan. 13 3.57
HSBC 1.46 3.6 2.3 RBC Capital Markets 0.29 2.0 2.2 Industry Groups Dalian Wanda (US) Legendary Entertainment (US) Jan. 12 3.50
Best-performing and worst-performing DJ global industry groups in the Hon Hai Precision Industry, SIO
Top 10 Totals 30.38 73.7 65.1 Top 10 Totals 6.86 47.7 51.4 Sharp (66%) (Japan) Feb. 25 3.48
International (Taiwan)
past quarter Zoomlion Heavy Industry
Industry Total 41.22 100.0 100.0 Industry Total 14.39 100.0 100.0 Terex (US) Jan. 26 3.43
Best Performers Worst Performers Science & Technology (China)
1Dealogic Revenue analytics are employed
Note: Estimates, allocated according to % chg from % chg from Huntington Bancshares (US) FirstMerit (US) Jan. 26 3.37
participation in a deal Industry group prev qtr Industry group prev qtr
where fees aren't disclosed. 2Includes Toyota Motor (Japan) Daihatsu Motor (49%) (Japan) Jan. 29 3.13
government-guaranteed debt issuance. Source: Nippon Telegraph & Telephone Dell Systems, Dell Services, Dell
Source: Dealogic Gold Mining 50.2 Business Training & Employment Agencies –16.4 March 28 3.06
Dealogic (Japan) Technology & Solutions (US)
Platinum & Precious Metals 46.1 Biotechnology –15.1 China Greatwall Computer Greatwall Information Industry
Diamonds & Gemstones 26.5 Automobiles –10.1 Feb. 25 3.01
Shenzhen (China) (China)
Who's No. 1? Iron & Steel 13.3 Banks –9.1 Birra Peroni, Miller Brands,
Leading stock-and-bond underwriters, by volume, first-quarter 2016 Pipelines 11.6 Full Line Insurance –9.0 Asahi (Japan) Meantime Brewing, Koninklijke Feb. 10 2.86
Nonferrous Metals 11.6 Mortgage Finance –8.8 Grolsch (Italy)
First-qtr Change from General Mining 11.4 Life Insurance –8.4 Stryker (US) Sage Products (US) Feb. 1 2.78
market previous qtr Dalian Dayang Trands (China) YTO Express (China) March 23 2.70
Market Sector No. 1 Manager share (%) (pct. points) Farming & Fishing 10.6 Pharmaceuticals –8.3
Fixed Line Telecommunications 9.4 Investment Services –7.7 New World Development (Hong New World China Land (30%)
Jan. 6 2.63
Stocks and Bonds Kong) (China)
Conventional Electricity 9.4 Renewable Energy Equipment –6.7
Jaiprakash Associates' cement
Global Debt, Equity & Equity-linked J.P. Morgan 6.8% 0.8 Source: S&PDow Jones Indices Aditya Birla (India) Feb. 28 2.47
business (India)
Global Fees1 J.P. Morgan 6.8 0.4 Alabbar Enterprises (UAE) Kuwait Food (Kuwait) Feb. 4 2.46
12.7 2.9
U.S. Debt, Equity & Equity-linked
U.S. Fees1
J.P. Morgan
J.P. Morgan 12.6 2.5
IPO Scorecard Chongqing Wanli New Energy Five interent technology
(China) companies from SouFun (China)
Jan. 21 2.46
Best performing global public offerings of stock that came to market Beijing Iqiyi Technology (81%)
Stocks Existing Management (China) Feb. 12 2.25
(China)
during the period
OMERS, KIA, AIM, OTPP
Global Equity & Equity-linked J.P. Morgan 7.4% 0.5 Offer End-of-qtr % Chg from London City Airport (UK) Feb. 26 2.23
(Canada)
Global Common Stock Goldman Sachs 7.3 0.5 Company Symbol price close Offer IPO date*
McKesson (US) Rexall Pharma Plus (Canada) March 2 2.22
Global Initial Public Offerings Morgan Stanley 5.6 -3.5 Eoptolink Technology (China) 300502 RMB21.47 86.47 302.7 March 3 Qube, QIA, BIP, GIC, BCIM Asciano's Patrick container
March 15 2.20
Global Equity-linked J.P. Morgan 13.7 9.0 (Australia) terminal business (Australia)
Xiamen R&T Plumbing Technology (China) 2790 RMB16.58 42.14 154.2 March 8
Global Equity & Equity-linked (US Issuers) J.P. Morgan 18.7 8.5 Citigroup (US) SL Green Realty property (US) Jan. 27 2.00
Luyan (Fujian) Pharmaceutical (China) 2788 RMB18.65 47.18 153.0 Feb. 18 Fomento de Construcciones y
Global Common Stock (US Issuers) Goldman Sachs 18.2 6.8 Grupo Carso (Mexico) March 4 1.99
Global Initial Public Offerings (US Issuers) Goldman Sachs 21.4 12.9 Contratas (63%) (Spain)
Shenzhen Jianyi Decoration Group (China) 2789 RMB22.53 55.65 147.0 March 11
Seres Therapeutics drug rights
Global Equity-linked (US Issuers) J.P. Morgan 30.7 20.9 Eastern Pioneer Driving School Co Ltd (China) 603377 RMB16.4 40.00 143.9 Feb. 5 Nestle (Switzerland) Jan. 11 1.91
(Switzerland)
Bonds 2
Editas Medicine (United States) EDIT US$16 34.54 115.9 Feb. 3 *excludes spin-offs, repurchases, restructuring, joint ventures, privatisations and open market
purchases. Final stake 50%+. Source: Dealogic
Global Debt J.P. Morgan 6.7% 0.8 Tongyu Communication (China) 2792 RMB22.94 43.96 91.6 March 28
Global High Yield Debt J.P. Morgan 10.5 1.2 37.59 74.3 March 29
Global Investment Grade Debt J.P. Morgan 6.6 0.3
Guangdong KinLong Hardware Products (China) 2791 RMB21.57
World-Wide Merger Advisers
Akatsuki (Japan) 3932 YEN1930 3350 73.6 March 17
Global Asset-backed Securities BofA - Merrill Lynch 11.4 6.3 Advisers ranked by transaction values when announced, with credit
U.S. Debt J.P. Morgan 11.1 1.3 AveXis (United States) AVXS US$20 27.24 36.2 Feb. 11 given to both target and acquiring companies' advisers; includes net
U.S. Investment Grade Debt J.P. Morgan 12.4 0.0 Catena Media (Malta) CTM SKR33 42.10 27.6 Feb. 11 debt of target companies; first 3 months
U.S. High Yield Debt J.P. Morgan 11.7 2.3 First 3 Months 2016 First 3 Months 2015
BeiGene (China) BGNE US$24 29.31 22.1 Feb. 3 Value, No. of Value, No. of
U.S. Federal Credit Agency Debt Barclays 15.4 0.6 Adviser Rank ($) Billions Deals Rank ($) Billions Deals
Proteostasis Therapeutics (United States) PTI US$8 9.64 20.5 Feb. 11
U.S. Financial Institutions J.P. Morgan 12.1 -0.5
U.S. Mortgage-backed Securities BofA - Merrill Lynch 15.5 4.3 CYBG (United Kingdom) CYBG STG1.8 2.09 16.1 Feb. 3 Goldman Sachs 1 220.5 59 2 $188.3 93
JPMorgan 2 165.0 61 1 195.5 63
U.S. Asset-backed Securities BofA - Merrill Lynch 15.1 5.5 LeoVegas AB (Sweden) LEO SKR32 37.10 15.9 March 17
UBS 3 107.9 38 11 75.9 35
Syndicated Loans Syndax Pharmaceuticals (United States) SNDX US$12 13.32 11.0 March 3 Citi 4 101.2 47 9 92.5 50
Humana AB (Sweden) HUM SKR62 68.50 10.5 March 22 Bank of America Merrill Lynch 5 97.1 39 5 131.6 56
Global Syndicated Loans BofA - Merrill Lynch 11.9% 2.5 Morgan Stanley 6 96.3 62 3 158.3 76
Global Leveraged Loans BofA - Merrill Lynch 12.8 3.3 LaSalle Logiport REIT (Japan) 3466YEN100000 108700 8.7 Feb. 17 Barclays 7 84.5 38 12 70.6 36
U.S. Syndicated Loans BofA - Merrill Lynch 18.9 3.7 TeamLease Services (India) TEAMLEASE RUP850 895.90 5.4 Feb. 12 HSBC 8 83.6 19 8 99.5 24
U.S. Leveraged Loans BofA - Merrill Lynch 16.3 3.6 Lazard 9 71.6 49 4 151.8 57
1 Dealogic Revenue analytics are employed where fees are not disclosed2 Includes government Scandinavian Tobacco Group A/S (Denmark) STG DKR100 105.20 5.2 Feb. 10 Credit Suisse 10 64.1 49 10 79.2 39
guaranteed debt issuance Source: Dealogic *First trading day Source: Dealogic Source: Dealogic
MARKETS REVIEW & OUTLOOK First Quarter
More Tremors in Treasurys First Quarter's Winners and Losers

After a weak start to 2016 for stocks around the world and a host of
commodities, a broad slate of winners emerged. Lean hogs and gold
led the charge higher. On the losing side, rough rice came in last,
while natural gas continued a multiyear plummet.
Strong employment
and low yields give Commodity,
traded in U.S.
Stock
Index
Currency,
vs. U.S. dollar
Bonds, total return
as of Thursday
debt investors mixed Lean hogs 35.2%
message to untangle
ANDREW CABALLERO-REYNOLDS/AGENCE FRANCE-PRESSE/GETTY IMAGES
Gold 16.5
Dow Jones Utility Average 15.7
BY MIN ZENG Bovespa (Brazil) 15.5
S&P 500/Telecom 15.1
Bond investors are bracing
for a turbulent second quarter Gasoline 13.8
as they struggle to reconcile Silver 12.0
surging U.S. employment with Soybean oil 11.3
some of the lowest bond yields Malaysian Ringgit 11.0
in years. Brazilian Real 10.3
Long-term U.S. Treasury
Platinum 9.4
yields posted their steepest
quarterly decline in more than Spain 7-10 year 7.9
three years in the first quarter Russian Ruble 7.5
of 2016 and closed at their Norwegian Krone 6.9
lowest quarter-end level since Japanese Yen 6.9
the end of 2012. The yield on IPC All-Share (Mexico) 6.8
the 10-year Treasury note set-
Canadian Dollar 6.4
tled at 1.784% at the end of
March, down sharply from Long-term Treasury yields posted their steepest quarterly decline in more than three years. IPSA (Chile) 6.2
2.273% at the end of 2015, Croatian Kuna 6.1
which suggests buyers aren’t vid Coard, head of fixed-in- substantial on both sides, and age point at the end of 2013, as Romanian New Leu 5.8
concerned about the risks of come trading in New York at many analysts and traders hedge funds and money man- Dow Jones Transports 5.8
buying and holding bonds for Williams Capital Group. “Am I have resigned themselves to agers have been piling into
Chilean Peso 5.7
the long term. missing something?’’ large swings that they say long-Treasury trades.
Yet analysts broadly view Some investors say they be- aren’t necessarily driven by In addition, the term pre- Icelandic Krona 5.5
the domestic economic picture lieve the coming months could fundamental economic shifts. mium investors demand to Diesel 5.5
as more fraught with peril for bring an intense shakeout in Global demand for U.S. hold the 10-year note rather Soybean 5.4
bondholders than it has been the bond market, echoing the long-term bonds has been so than invest in a series of Hungarian Forint 5.3
since peak of the housing “taper tantrum” of mid-2013. strong recently that the pre- short-term securities tumbled Singapore Dollar 5.2
boom a decade ago. Jobless- Others predict Europe and mium of a 10-year note’s yield in mid-February to mi-
Indonesian Rupiah 5.1
ness has tumbled to levels last Japan will move deeper into over that of a two-year note nus-0.396%, the lowest level
seen in 2008 and wages are negative interest rates, spur- fell to an eight-year low at the since 1962. Australian Dollar 5.1
showing signs of picking up, ring greater demand for U.S. end of February. A larger pre- Stubbornly low yields have Danish Krone 5.0
potentially unleashing infla- securities even as the Federal mium means a flatter yield been partly driven by large Taiwan Weighted 4.9
tion, which hits bondholders Reserve prepares to raise curve, a warning in the eyes of bets by hedge funds and S&P 500/Consumer Staples 4.8
hard by reducing the purchas- short-term rates. many forecasters that a period money managers over major South African Rand 4.8
ing power of their fixed peri- Federal Reserve Chair- of weaker economic growth central banks’ monetary-policy
Euro 4.8
odic payments. woman Janet Yellen said Tues- could be ahead. Yields fall as outlooks over recent years, an-
These dynamics make pre- day that the central bank bond prices rise. alysts say. U.K. 7-10 year 4.4
dicting the next quarter’s ac- would be very slow in raising The yield premium on the While a flat yield curve and S&P 500/Industrials 4.3
tion especially difficult. rates given the uncertain global 10-year note over the two-year low term premium often signal U.S. 7-10 year 4.3
“It is hard to figure out growth outlook. Analysts say note tumbled to 0.95 percent- economic difficulty, there are France 7-10 year 4.2
what is really going on with the cautious stance may keep a age point on Feb. 29, the low- few signs of that now. The U.S.
Swiss Franc 4.2
the disconnect between data lid on U.S. bond yields. est since December 2007. That unemployment rate was 4.9%
and the bond market,’’ said Da- Nevertheless, the forces are was a fall from 2.62 percent- Please see DEBT page C10 Swedish Krona 4.0
Germany 7-10 year 3.9
S&P/TSX Composite (Canada) 3.7
Israeli Shekel 3.7
U.S. Corporate index 3.6
Turkish Lira 3.6
Crude oil 3.5
S&P Mid Cap 400 3.3
Australia 7-10 year 3.2
S&P 500/Energy 3.1
U.S. High Yield Index 3.1
Coffee 3.1
Italy 7-10 year 3.0
S&P 500/Materials 3.0
Japan 7-10 year 2.9
South Korean Won 2.7
Orange juice 2.7
Thai Baht 2.6
S&P Small Cap 600 2.3
Copper 2.2
S&P 500/I.T. 2.2
New Taiwan Dollar 2.2
Kospi Composite (S. Korea) 1.8
Milk 1.6
Municipal Bond index 1.5
Dow Jones Industrial Average 1.5
J. PAT CARTER/GETTY IMAGES
S&P 500/Consumer Discretionary 1.2

New Zealand Dollar 1.1
U.S. 1-3 year 0.8
S&P 500 0.8
Wheat 0.7
Chinese Yuan 0.7
U.K. 1-3 year 0.7
An Oklahoma gas station. A glutted oil market, a strong dollar and sluggish economic growth are keeping a lid on stock prices.
Australia 1-3 year 0.6
Japan 1-3 year 0.3
Stocks Need Earnings Growth to Climb France 1-3 year

Germany 1-3 year
Italy 1-3 year
0.2
0.2
0.1
BY SAUMYA VAISHAMPAYAN indexes are vulnerable to a drag on first-quarter earnings companies like oil and gas pro- –0.1 Indian Rupee
pullback. The S&P 500’s trail- in the S&P 500, according to ducers have now grappled
–0.4 Mexican Peso
Investors are counting on a ing price/earnings ratio is 18.2, FactSet. with low oil prices for more
return to earnings growth to according to FactSet, higher Oil prices aren’t likely to go than a year. –0.6 Vietnamese Dong
juice U.S. stocks, but they will than its 10-year average of 15.8. much higher from here be- Analysts polled by FactSet –1.1 FTSE 100 (U.K.)
likely have to wait a while. Some of the factors that cause any sustained rise could predict earnings at S&P 500 –1.9 Russell 2000
First-quarter earnings for have hampered earnings in re- encourage producers to ramp companies will rise 3.8% in the –2.4 Nasdaq 100
S&P 500 companies are fore- cent quarters—a strengthening up production, flooding mar- third quarter from the same
–2.6 British Pound
cast to slump 8.5% from the dollar, falling oil prices and kets with more supply. And a period of 2015. That would be
same period last year, accord- weak consumer spending—all tentative deal among major the first quarter of growth –2.7 Nasdaq Composite
ing to FactSet. That would seal are wild cards, casting doubt oil-producing countries to since last year’s first quarter. –3.0 S&P BSE Sensex (India)
the index’s first four-quarter about a stock rebound fueled freeze production, which has Revenues are forecast to ad- –4.0 S&P/ASX 200 (Australia)
streak of declines since the fi- by earnings. supported oil prices and en- vance 1.9% in the third quarter, –5.1 Tel Aviv 25
nancial crisis. Analysts don’t “Clearly, earnings are chal- ergy shares in recent months, which would be the first in- –5.2 Hang Seng (Hong Kong)
expect quarterly earnings to lenged,” said William Fitzpat- looks shaky. crease since the fourth quarter
–5.4 CAC-40 (France)
rise until the second half of rick, senior equity analyst at of 2014.
the year. Manulife Asset Management. Profits and revenues are ex- –5.6 S&P 500/Financials
Major U.S. indexes are up The WSJ Dollar Index,
Analysts don’t see pected to accelerate in the –5.9 S&P 500/Health Care
only slightly this year. Adding which measures the greenback quarterly earnings fourth quarter, with analysts –6.7 Uruguayan Peso
to stocks’ gloomy backdrop are against a basket of 16 curren- forecasting an 11% increase in
sluggish economic growth, a cies, has slipped 4% so far this
rising until the earnings and a 4.3% rise in
–6.8 Euro Stoxx
–7.2 DAX (Germany)
fragile oil-price recovery and year but still has a higher av- year’s second half. revenues for S&P 500 compa-
–7.7 Stoxx Europe 600
uncertain central-bank policy. erage level so far in 2016 than nies.
Those factors are making some in the previous two years. And Sean Lynch, co-head of –8.6 IBEX 35 (Spain)
investors reluctant to jump most investors expect the Fed- Although this has resulted global equity strategy for the –8.6 Cocoa
into stocks without a tailwind eral Reserve to raise rates in consumers saving money at Wells Fargo Investment Insti- –8.6 Cotton
like improved earnings. again in the coming months, the gas pump, their windfall tute, is among the investors –8.7 Ukrainian Hryvnia
“My view at the beginning which should boost the U.S. hasn’t carried over into corpo- who continue to bet on a re-
–8.8 BEL-20 (Belgium)
of the year was that we’d have currency. Stimulus measures rate revenues. Revenues at surgence in consumer and
positive returns from the eq- from Japanese and European S&P 500 companies are fore- business spending in the sec- –9.3 Live Cattle
uity markets this year, but it central banks could add up- cast to log a drop of 1.1% in ond half of this year. –11.5 Swiss Market
would be a struggle,” said Rob ward pressure to the dollar, the first quarter, according to “The consumer should feel –11.9 Argentinian Peso
Sharps, portfolio manager of too. FactSet, which would mark the pretty good,” Mr. Lynch said, –12.0 Nikkei Stock Average (Japan)
T. Rowe Price’s Institutional The energy sector is a spot fifth consecutive quarter of pointing to cheap gas prices, –15.1 Shanghai Composite
Large-Cap Growth strategy. of particular weakness. Al- declining revenues. an improvement in the hous-
–15.4 FTSE MIB (Italy)
Shares already are more ex- though crude prices have ral- Wall Street expects earning market and steady job
pensive than their historical lied 46% since their February ings to finally get some trac- gains. He likes stocks that will –16.2 Natural gas
averages after seven years of a trough, they still are off more tion in the year’s second half, benefit from a pickup in con- –18.1 Rough rice
bull market. Declines in earn- than 60% from highs hit in partly driven by favorable sumer and business spending,
ings have further stretched val- June 2014. The energy sector comparisons with the year-ago such as industrials, technology Sources: FactSet (indexes, commodities), Tullett Prebon (currencies), Barclays (bonds)
uations, raising concerns that is expected to be the biggest period, as commodity-sensitive and certain consumer shares. THE WALL STREET JOURNAL.
MARKETS REVIEW & OUTLOOK | FIRST QUARTER
Mostly Unfazed
Energy-production firms slashed spending in the first quarter,
in some cases spurring large share-price gains.
U.K. Vote Has EU on Edge
Companies*
Budget-cut announcement
Performance since announcement
Share price Benchmark†
‘Brexit’ is biggest wild year, while the large-cap FTSE lianceBernstein. vider Dealogic.
100 index is down 1.1%. Some believe the euro could Meanwhile, sales of new
0 50% 100% 150% card swaying Europe A British exit also could be affected, too. Brexit-related sterling-denominated corpo-
Sanchez Energy markets, driving many boost euroskeptic parties uncertainty won’t only affect rate bonds have had their the
across Europe, possibly en- the U.K. but the eurozone, said slowest start to a year since
Jan. 19 investors to sidelines couraging other nations, such currency strategists at Bank of 2003, according to Dealogic.
Continental
as the Netherlands, to leave America Corp., who suggested To be sure, investors say
Resources BY RIVA GOLD the EU, strategists say. shorting the euro as a hedge. the vote also is providing
Jan. 26 AND CHRISTOPHER WHITTALL The possibility of Brexit has U.K. government bonds, moneymaking opportunities.
been even more pronounced in usually viewed as a haven as- Betting against the pound was
Murphy Oil Politics have been a major currency markets. Investor set, haven’t been immune from a profitable trade for many in
Jan. 27 risk for European investors selling has pushed the pound anticipation of Brexit, either. early 2016.
over the past several years. 2.5% lower against the U.S. In January, foreign investors The weaker currency also
Memorial Production The U.K.’s coming vote on dollar and nearly 7% lower reduced their exposure to U.K. has been a boon for U.K. com-
Partners whether it should leave the against the euro since the gilts by £6.3 billion ($9.1 bil- panies that sell the bulk of
Jan. 27
European Union means 2016 start of the year. lion), the biggest monthly fall their goods abroad, as it
Callon Petroleum
will be no different. Many investors have turned in nearly two years, according makes their products more
Feb. 1 Uncertainty over the out- to options markets to guard to the Bank of England. competitive there.
come of the bitterly con- against a potential sharp fall Still, yields on 10-year gilts British American Tobacco
tested June 23 referendum has in the pound following the are down by more than half a PLC, for example, is one com-
Cabot Oil & Gas
investors on edge. That unease vote. The implied volatility of percentage point this year, as pany that benefits from a fall-
Feb. 2
is showing up in swooning three-month currency options domestic buying has more ing pound, said Carl Auffret, a
sterling markets, weakness in on the pound-dollar exchange than offset this outflow so far. portfolio manager at DNCA In-
Jones Energy U.K-focused stocks and a slow- rate—which is closely linked Yields fall as prices rise. vestments.
Feb. 11 down in companies raising to the price of such con- There are signs that the Currency moves knocked
money in capital markets. tracts—is hovering at nearly a coming vote has cast a chill 6.2% off the company’s earn-
Devon Energy The uncertainty also is de- six-year high of around 15%, over capital markets as well. ings in 2015 as the pound on
Feb. 16 terring some investors from according to Thomson Reu- Equity bankers say initial pub- average gained against the
making big bets on eurozone ters. That is up from around lic offerings, which have been currencies of the U.K.’s trading
Whiting stocks, as many remain cau- 8% in early January. depressed across developed partners. This year, as the
Petroleum tious about the potential im- “The general consensus is markets, have taken a knock in pound has fallen, shares in
Feb. 24
pact of a British exit, or “Br- that in the very near term a the U.K. because of the refer- British American Tobacco are
Southwestern exit,” on the rest of the vote to leave would create a endum. Year-to-date IPO vol- up 5.8%.
Energy trading bloc. fair degree of volatility, and ume in the U.K. is just $2.1 bil- Companies with a large cost
Feb. 25 “When we talk to compa- people want to do something lion, compared with $4.9 base in pounds and revenue in
*Companies cutting budgets from a year ago †SPDR S&P Oil & Gas Exploration & Production ETF nies, one of our first questions to hedge,” said Daniel Lough- billion for the same period last other currencies will be the
Source: FactSet THE WALL STREET JOURNAL. now is what plans are they ney, a portfolio manager at Al- year, according to data pro- winners, Mr. Auffret said.
making for a Brexit,” said Alan
Cheap Oil Shifts Custis, head of U.K. equities at

Lazard Asset Management.
Opinion polls have nar-
Getting Jittery
Uncertainty over the outcome of the U.K.'s vote on the EU
Investor Favor to
rowed in recent weeks but still is making waves in stocks and currency markets.
suggest Britons will vote to re-
main in the EU. Investors are Year-to-date Implied volatility on three-month
bracing for market volatility, index performance pound-dollar options contracts†
Thriftiest Drillers which they expect to rise as

the vote approaches. Many in-
vestors have scaled back bets
on small, domestically ori-
–2
0%
FTSE 100
16%
14
Sept. 18, 2014
Scottish
referendum
May 7, 2015
U.K. election
–4 12
BY TIMOTHY PUKO forming their peers despite ented U.K. companies, which
AND MIKE CHERNEY oil’s recent rally. they view as likely to suffer –6 10
Shareholders, especially the most in the immediate af-
Investors are sending a long-term investors, are tar- termath of a Brexit. –8 8
message to oil and gas compa- geting them as the most pre- Lazard, for example, has
–10 6
nies: Think less like wildcat- pared to pay off the heavy moved into more internation-
ters and more like accoun- debt rung up during the boom ally diverse U.K. businesses, –12 4
tants. times. such as food and tobacco com-
–14 FTSE AIM 100* 2
During the first quarter, “Equity investors are think- panies, which the firm be-
stocks of the oil and gas coming like bond investors,” said lieves should be comparatively
–16 0
panies that fared the best John Groton, equity research insulated.
were often those that prom- director at Thrivent Financial London’s FTSE AIM 100 in- J F M 2014 ’15 ’16
ised to rein in spending. This in Minneapolis, which man- dex, composed of small-cap *A U.K.-focused small-cap index †As of 2 p.m. GMT Thursday
approach marked a reversal ages $100 billion in assets. companies, has fallen 5.2% this Sources: FactSet (indexes); Thomson Reuters (volatility) THE WALL STREET JOURNAL.
from recent years, when inves- “We’re in a survival game
tors tended to reward compa- right now,” said Matthew Brill,
nies that pursued rapid a portfolio manager at Invesco
growth above all else. Ltd. who manages bond mu-
Exploration-and-produc- tual funds.
tion companies including EQT Mr. Groton’s preferred ex-
Corp., Continental Resources ploration-and-production com-
Inc. and Anadarko Petroleum pany is EQT, which is largely
Corp. cut their 2016 budgets focused on gas-rich shale for-
by 50% to 65% in recent mations in Appalachia.
months. Their share prices The company’s shares have
have risen 20% or more since risen 21% since it announced
their announcements, outper- in December that it would
forming many peers. halve its capital spending for
The SPDR S&P Oil & Gas Ex- this year.
ploration & Production ETF, a By comparison, the SPDR
common benchmark for the S&P Oil & Gas Exploration &
group, rose 0.4% in the first Production ETF is down 13%
quarter while U.S. oil prices over the same period.
ANDREW CABALLERO-REYNOLDS/AGENCE FRANCE-PRESSE/GETTY IMAGES
Only two years ago, EQT
0.4%
was rewarded for doing the
opposite: It raised capital
spending by 60% for 2014 and
Increase in the SPDR S&P Oil & its share price went up 20% in
Gas Exploration & Production the next three months, returns
ETF in the first quarter four times as much as the
benchmark.
Mr. Brill said Invesco in re-
rose 3.5% to $38.34 a barrel cent months has bought bonds
during the same period. from Anadarko that mature in
The emphasis on cost cut- 2016 and 2017.
ting has taken hold as a deep He said the firm’s recent
slump in oil and commodity moves to cut dividends and
prices nears its second year. capital expenditures and pur-
The plummet began in late sue asset sales will bolster its
2014 and early 2015, but com- ability to pay down its debt,
panies kept spending and rais- and that the company could
ing production as many ex- still raise cash through an eq-
pected a quick rebound for uity offering if necessary. London Mayor Boris Johnson supports an exit from the EU, but the idea has chilled market sentiment on U.K.-focused investments.
prices. In mid-February, Ana-
Instead, oil kept falling. darko’s 2017 bond fell to about
Now, investors are looking to
reward companies prepared to
withstand a bleak era of low
prices.
98 cents on the dollar and
yielded more than 7%. The
bond has rallied since then
and is now trading at about
DEBT to push long-term ones higher,
a situation that confounded
Alan Greenspan more than a
decade ago when he headed
from China and many other
large developing countries as a
way to recycle their dollar re-
serves were blamed as the fac-
year to raise cash and prevent
a deep fall in the value of the
yuan, a practice that few ana-
lysts expect to suddenly end.
The trend was the most 105 cents and yielding about Continued from page C9 the central bank. tor capping a lid on U.S. yields. The days of nonstop for-
pronounced at the year’s start. 3%. Bond yields fall when in February and some inflation Back then, U.S. long-term This time, support from eign-exchange-reserve accumu-
It waned slightly when oil prices rise. indicators have recently risen bond yields barely budged China, the largest foreign lation by developing countries
prices surged 50% during a “You [were] getting one- to above the Fed’s 2% target. even after a series of rate in- owner of U.S. government is over, said George Goncalves,
six-week span on hopes for a two-year bonds of a company Some investors are concerned creases by the Fed between debt, is no longer there. China head of U.S. rates strategy at
production freeze among ma- we felt were going to address that the sharp decline in the June 2004 and June 2006. Big has begun shedding Treasury Nomura. “That will add to vol-
jor producing nations and a all their issues, and you were 10-year note’s yield premium purchases by central banks debt holdings over the past atility,’’ in Treasurys, he said.
weaker dollar. getting high-yield pricing for may have overstated the
A weaker dollar makes oil, it,” Mr. Brill said. downside risk facing the U.S.
which is traded in the U.S. cur- Fidelity Investments’ John economy. The World Is Flat
rency, cheaper to many foreign Dowd said he has added “I don’t think the Treasury The yield curve has flattened as investors have continued snapping up
buyers. shares of some production yield curve is sending purely long-term U.S. Treasurys, boosting returns on the longest-lived securities.
But the rally in crude fu- companies that have cut back economic signals these days as
tures began to peter out by to the Fidelity Select Energy the U.S. economy is likely Yield spread, 10-year Treasury Flows into long-term U.S. Total return* on Treasurys,
the end of the first quarter on Portfolio that he manages, be- stronger than the curve sug- minus two-year government-bond funds first quarter, by maturity
renewed concerns about over- lieving that commodity prices gests,’’ said Christopher Sulli-
3 percentage points $2 billion 1-5 year
supply and dimming hopes for will rebound. van, who manages $2.3 billion
an agreement to cap output. It is just a matter of select- as chief investment officer at 1.5%
Stockpiles remain near records ing the companies with United Nations Federal Credit 1 5-7
and U.S. producers have been enough cash and financial dis- Union. 2 3.3%
slowing down less than ex- cipline to be ready when they James Sarni, senior manag-
pected, creating risk for any do, he said. ing partner at Payden & Rygel 0 7-10
energy company reliant on ex- “I don’t know the timing, in Los Angeles, which manages 4.3%
panding revenues to pay off but I do know [prices are] go- more than $95 billion, said 1
–1 10-20
past debts. ing to be higher in one to two that movements in long-dated
5.1%
That has caused growth to years,” said Mr. Dowd, who Treasury yields “are increas-
take a back seat to financial manages $1.9 billion. “And if I ingly disconnected from short- 0 –2 Monthly 20 plus
stability for many energy in- can find the companies that maturity yield movements.’’ 7.8%
2014 ’15 ’16 2014 ’15 ’16
vestors. can survive the downturn, in Some analysts even said the
Several of the companies one or two years those invest- Fed could face the paradox of *Includes bond price gains and interest payments. Data through March 30
that cut back are still outper- ments will look good.” rising short-term rates failing Sources: Tradeweb (yield spread); Morningstar (flows); Barclays (returns) THE WALL STREET JOURNAL.
MARKETS REVIEW & OUTLOOK | FIRST QUARTER
Emerging Markets Get a Respite GOLD

Continued from page C1
Long-awaited rebound dard & Poor’s and Fitch Rat- Net bets on higher gold
ings, according to the bank. prices by hedge funds and
arrives, but poor credit “I think we’re going to see a other speculative investors
offers reason to worry period of balance-sheet deteri- stood at 161,610 contracts in
oration across emerging mar- the week ending March 22,
BY CAROLYN CUI kets,” said Rashique Rahman, their highest level since Feb-
head of emerging markets at ruary 2015, data from the
Emerging markets bounced Invesco, which oversees $4 bil- Commodity Futures Trading
back in the first quarter after lion of emerging-market bonds. Commission showed.
three years of torpor, but the “We’re at the early stage of Jeffrey Gundlach, who runs
deteriorating credit quality for that.” Double Line Capital LP, said in
many government and corpo- Lower credit quality indi- January that gold could rise as
rate borrowers signals possible cates a higher probability of high as $1,400 a troy ounce
trouble ahead. default. this year. He repeated the call
Monetary easing by major A recent J.P. Morgan Chase again in March, but said he
central banks, as well as a firm- survey of clients showed that had become more nervous
DADO GALDIERI/BLOOMBERG NEWS
ing of oil prices and other com- nearly half of the respondents about the metal, given the
modities during much of the expected the default rate magnitude of its recent rally.
quarter, powered emerging- among speculative-grade Hedge-fund manager John
market stocks and bonds emerging-market corporate is- Paulson pared his long-held
higher. suers to exceed 5% in 2016, bet on gold by $400 million in
Brazil, Turkey and Mexico well above the bank’s forecast the fourth quarter of 2015
led the way, with their main at 3.5%. from $986.8 million, according
stock indexes climbing 15.5%, Some investors say the rat- to a 13F filing. A spokesman
16.1% and 6.8%, respectively, in ing actions may exaggerate de- for Mr. Paulson didn’t com-
the quarter, compared with a fault risk. Many emerging-mar- Brazil’s real and other emerging-market currencies strengthened against the dollar in the quarter. ment.
0.8% gain for the S&P 500. ket countries have ended their Gold-mining stocks also
Currencies also gained currency pegs to the dollar, economies are stronger than cause other reliable informa- Azerbaijan, an exporter of have racked up big gains, al-
ground against the dollar, with built up foreign reserves and people thought,” said Luca tion in the developing world oil and copper, lost its invest- though many have drifted off
the Brazilian real and Russian issued more debt in their own Paolini, chief strategist at Pic- can be harder to come by. ment-grade ratings from all their earlier highs. Newmont
ruble up 10.3% and 7.5%, re- currencies, making them less tet Asset Management, which A slip into junk territory three ratings firms during the Mining Corp is up 48% so far
spectively, in the year to date. vulnerable to the dollar’s has $185 billion of assets under also can trigger forced selling quarter. Its currency, the this year, Randgold Resources
Credit-rating firms, however, strength. management. “Downgrades of- from big investors like public manat, weakened 2% against has gained 54% and Barrick
have been looking beyond the “Given the weakness we ten come at the end of market pension funds and insurance the dollar, while its govern- Gold Corp., the world’s largest
recent emerging-markets rally have seen in commodity prices declines.” companies, which often have ment bonds edged up 0.8% in gold miner by output, is up
at more ominous signs for de- and the strength in the dollar, Still, rating actions can have guidelines mandating that a price. 72%.
veloping countries: weaker the fact that we haven’t seen a a bigger impact on emerging- certain percentage of their More rating cuts are ex- “People are reluctant to
global growth, commodity spike in default rate is probably market bonds than on debt holdings have an investment- pected to hit emerging markets take profits on their gold posi-
prices that remain well off an indication that emerging from Europe and the U.S. be- grade rating. in the coming months: 31.4% of tions because of all the insecu-
their recent peaks and the Brazilian debt was among issuers rated by S&P in devel- rity the world is facing,” said
prospect of a stronger dollar the latest downgrade victims oping countries currently have George Gero, managing direc-
that would raise the cost of re- Running Up Their Debts after falling below investment a negative outlook or are on tor at RBC Wealth Manage-
paying dollar-denominated Credit ratings for emerging-market countries have fallen grade. the watch list for potential ment.
debt. in recent months, putting pressure on bond prices. Fitch Ratings cut the sover- downgrades, the highest level To be sure, gold’s gains
The economic backdrop has eign to junk status on Dec. 16, in more than six years. Many of aren’t purely based on fear.
led credit-rating firms to cut Emerging-market debt Brazilian bond prices which followed a similar move the borrowers are in Brazil and Policy makers in Europe,
ratings on emerging-market ratings turn negative react to downgrades* by Standard & Poor’s. Brazil’s Russia. China and the U.S. all signaled
dollar-denominated bonds to 10 times $1.10 government bonds lost 4% in Some long-term institutional during the quarter that they
their lowest level in more than Rating agencies that price that day, according to investors say they are betting expect interest rates to stay
Upgrades
six years. cut their ratings to junk: MarketAxess. on emerging-market debt de- lower for longer, reflecting
Downgraded in the quarter 5 1.00 The downgrade led to the spite the uncertainty. The Con- soft growth and below-target
was the sovereign debt of more exclusion of Brazilian bonds necticut Retirement Plans and inflation. Lower rates tend to
than 10 emerging-market coun- S&P from the investment-grade Trust Funds allocate 4.8% of be associated with higher gold
Moody’s
tries including Azerbaijan, Bah- 0 0.90
bond indexes of Barclays PLC, their $27.9 billion under man- prices, because they lessen the
rain and Poland. Debt from causing forced selling of about agement to emerging-market advantage that yield-bearing
South Africa and Saudi Arabia $5.2 billion for Brazilian gov- bonds. instruments such as bonds and
was put under review for pos- ernment bonds, while high- “We believe emerging-mar- savings accounts carry in com-
–5 0.80
sible downgrades. yield funds bought only $1.4 ket economies have the capac- parison with gold.
The J.P. Morgan Emerging Fitch billion of these bonds, accord- ity to grow, and that as the The Federal Reserve’s sig-
Markets Bond Index Global Di- Downgrades ing to Barclays estimates. Bra- economies mature, credit qual- nals it will be slow to raise
versified, the most frequently –10 0.70 zilian bonds made back some ity ratings will likely improve,” rates this year also led to a
used index, has recently 2002 ’05 ’10 ’15 2015 ’16 of those losses during the first said Connecticut State Trea- weakening of the dollar, a shift
slipped below investment *Through March 30 quarter but remain below pre- surer Denise Nappier in a state- that tends to bolster the price
grade based on ratings of Stan- Sources: Standard & Poor’s (ratio); MarketAxess (prices) THE WALL STREET JOURNAL. downgrade levels. ment. of gold.
ALWAYS BE
CUTTING EDGE
& CUTTING COSTS
INDEPENDENT ANALYSIS
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Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
Banks Will Squeeze the Oil Patch OVERHEARD Size Is Part

Of Appeal
Bah, humbug. oped reserves. If it looks un- Investing in Micron Tech-
While it is the wrong sea-
son for “A Christmas Carol,”
U.S. energy companies are
Collateral Damaged
West Texas Intermediate
likely that oil or gas in the
ground will be extracted
then banks can’t count it as
nology has been a gamble
for a while. Now more are
choosing to sit out the game.
For Biotech
crude-oil price
bracing for words to that ef- $125 a barrel collateral for a loan. Two brokers downgraded Years of deal making have
fect from lenders. Redeter- Some companies already the memory-chip maker left high-quality biotechnol-
mination season, a twice- have delivered the bad news. Thursday after another weak ogy assets in short supply.
100
yearly ritual when banks WPX Energy said it had a quarterly report. Bernstein Given that, it is no surprise
reassess credit lines, is upon 30% reduction in its borrow- and Macquarie took their rat- Medivation is reportedly at-
75
us. They are likely to be ing base and Whiting Petro- ings from the equivalent of tracting takeover interest.
Scrooge-like. The result: leum estimated that its base “buy” to “neutral.” About 61% Shares of the cancer-drug
50
More companies using des- would be cut by 38%. Fur- of analysts still recommend developer surged 23% on
perate types of financing or thermore, covenants may be- buying Micron, but that is Thursday amid reports the
filing for bankruptcy. 25 come more serious and “an- down from 71% a month ago, company hired bankers to
U.S. oil and gas producers tihoarding clauses” according to FactSet. devise a takeover defense.
depend disproportionately 0 introduced. These prevent fi- The downgrades might The apparent interest in Me-
on bank credit to run their 2014 ’15 ’16 nancially troubled companies seem a bit late, considering divation reflects the lack of
businesses. In normal times Sources: FactSet; Zuma Press (photo) from drawing down unused Micron already had shed quality assets available for
redeterminations are a THE WALL STREET JOURNAL. Oil workers in Louisiana credit lines just to have the nearly two-thirds of its mar- large pharmaceutical and
pretty ho-hum affair, but the cash on their balance sheets. ket value in the past year and biotech companies to buy.
sharp swoon in commodities some 20% to 30% on aver- running out. A barrel fetch- The irony in redetermina- the stock was hovering Big pharma has a constant
since mid-2014 is spooking age. Part of that is because ing $38 but effectively sold tions is that, despite the around a three-year low. But need to replenish its product
banks. Even so, last spring’s banks have been lenient. For for $70 because its price was negative tone, energy com- Micron is a volatile business portfolios as old drugs lose
redetermination came after a example, Raymond James locked in with derivatives panies’ high-yield bonds by nature, and the stock has patent protection or face
brief rebound in prices and thinks banks valued the such as swaps can be valued have rallied in recent weeks been trading below its esti- competing drugs with stron-
successful stock and bond is- “strip”—all the futures at that higher price. But as oil prices recovered, mated book value since early ger clinical data. Buying
sues by many firms. And last prices for oil or natural prices have been low for vastly outperforming indus- this year. The prevailing view small companies won’t
fall banks were fairly gener- gas—at 87% to 95% of what long enough that few compa- tries such as technology and was that revenue would start meaningfully improve their
ous, cutting borrowing bases they fetched on markets. A nies have much of their pro- finance. picking up again in the latter growth profile.
by just 11% according to ana- more normal margin of duction covered. That is small solace, half of the fiscal year, which Although the start of 2016
lysts at Raymond James. safety is just 80%. Another issue is that, in though, as the ghost of en- has kept most analysts posi- has been relatively quiet,
Now, despite a 40% There are two other fac- their effort to save money, ergy booms past sends a tive on the shares. years of frenzied deal activ-
bounce since February’s low tors working against in- drilling has slowed. That has chill through the industry in Fewer are willing to stack ity—over $750 billion world-
in crude prices, estimated debted energy companies. an impact on how banks ac- coming weeks. more chips on Micron now. wide during 2014 and 2015,
reductions are sharper— One is that their hedges are count for proven, undevel- —Spencer Jakab according to Dealogic—has
depleted the ranks of pub-
licly traded small and mid-
Investors: Watch What Companies Want You to Ignore size biotechs. Within the
189-company Nasdaq Bio-
technology Index, Mediva-
When it comes to unveil- and Exchange Commission gap between GAAP and pro forma figures is a good view tion is one of just five firms
ing poor earnings, compa- Free Forma requires them to lay out forma earnings is due to rea- into how aggressively com- with a market value between
nies might be right in insist- Difference between pro forma why. The reason they gener- sonable exceptions and how panies are using pro forma. $5 billion and $10 billion.
ing each quarter that and operating earnings for the ally give is that the pro much isn’t. But how exactly In the fourth quarter, pro Medivation has more to
investors should look past S&P 500, quarterly forma figures provide a bet- can investors do that? forma earnings were 29% recommend it than just scar-
some of the bad stuff that ter view of underlying per- One approach is to use higher than the S&P operat- city. Prostate-cancer drug
has hit results lately. Just 30% formance. It isn’t hard to operating earnings figures ing figures, the biggest abso- Xtandi, which Medivation
not all of the bad stuff. 20
come up with examples for from S&P Dow Jones Indices. lute difference since the shares with Japanese part-
Over the past year there when that would be true. If a These differ from GAAP be- fourth quarter of 2008. And ner Astellas Pharma, is see-
has been a large, and grow- 10 natural disaster hit a con- cause they exclude items while the ailing energy sec- ing sales grow rapidly. While
ing, divergence between the 0.1 struction project, most in- such as discontinued operator was a big contributor to the high price of Xtandi re-
pro forma earnings—those 0 0 vestors would see some tions and extraordinary that, it wasn’t the only place cently sparked congressional
excluding items such as re- 2012 ’13 ’14 ’15 sense in looking at results items that S&P deems truly where pro forma was being scrutiny, bigger drugmakers
structuring charges account- Sources: FactSet; S&P Dow Jones Indices excluding that unanticipated extraordinary. But they in- used more aggressively. In- still need to bulk up their
ing rules require them to in- loss. If a restaurant chain exclude items like stock-based deed, excluding energy, the cancer businesses.
clude—that companies S&P 500 were 59% above cludes the cost of opening compensation. And because gap between the pro forma Whether a deal happens
emphasize and their results GAAP, according to figures new stores from pro forma S&P applies a consistent and operating figures was is unclear, but companies
under generally accepted ac- from FactSet and S&P Dow results (some really do this) methodology for what sort 14%, which also represented like Medivation are bound to
counting practices, or GAAP. Jones Indices. many investors might not be of charges it will allow, some a postfinancial-crisis high. attract interest in this mar-
In the fourth quarter of 2015, Companies say that non- so generous. write-offs don’t fly. So the The bad stuff is getting ket. That should be reflected
for example, pro forma earn- GAAP information is useful So the question is how difference between S&P’s op- harder to ignore. in their share prices.
ings for companies in the to investors. The Securities much of the widening in the erating figures and the pro —Justin Lahart —Charley Grant
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds
Total return Yield (%), 52-Week Range l Latest Total return Yield (%), 52-Week Range l Latest
close YTD total return (%) Index Latest Low 0 5 10 15 20 25 High close YTD total return (%) Index Latest Low 0 4 8 12 16 20 High
1883.60 3.0 Broad market Barclays Aggregate 2.180 2.000 l 2.630 n.a. n.a. 12-22 year n.a. n.a. n.a.
2571.78 4.0 U.S. Corporate Barclays Capital 3.210 2.830 l 3.710 n.a. n.a. 22-plus year n.a. n.a. n.a.
2486.36 2.8 Intermediate 2.610 2.230 l 3.120 2309.51 3.1 Yankee Barclays 2.710 2.430 l 3.110
3372.29 6.8 Long term 4.590 4.170 l 5.130 541.39 3.8 Global Government J.P. Morgan 1.140 1.140 l 1.780
540.59 3.6 Double-A-rated 2.300 2.070 l 2.700 764.82 1.2 Canada 1.540 1.360 l 1.970
641.85 4.1 Triple-B-rated 3.790 3.300 l 4.450 369.94 3.4 EMU 0.844 0.728 l 1.609
n.a. n.a. High Yield Constrained Merrill Lynch n.a. n.a. n.a. 710.06 4.1 France 0.630 0.490 l 1.360
n.a. n.a. Triple-C-rated n.a. n.a. n.a. 513.83 3.9 Germany 0.270 0.160 l 1.040
n.a. n.a. High Yield 100 n.a. n.a. n.a. 290.96 4.6 Japan 0.230 0.150 l 0.890
n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 564.53 4.0 Netherlands 0.410 0.240 l 1.130
n.a. n.a. Europe High Yield Constrained n.a. n.a. n.a. 868.47 5.2 U.K. 1.880 1.760 l 2.480
1614.29 2.0 U.S Agency Barclays 1.300 1.170 l 1.680 705.69 5.2 Emerging Markets ** 6.126 5.679 l 7.128
1451.32 1.5 10-20 years 1.100 0.980 l 1.480 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds In U.S. - dollar terms Euro-zone bonds
3201.41 6.4 20-plus years 2.850 2.700 l 3.370 ** EMBI Global Index Sources: S&P Dow Jones Indices; Merrill Lynch; Barclays Capital; J.P.Morgan
1945.52 2.0 Mortgage-Backed Barclays 2.410 2.260 l 2.900

1921.34 1.8 Ginnie Mae (GNMA) 2.320 2.180 l 2.860 Corporate Debt
1138.78 2.0 Fannie mae (FNMA) 2.430 2.270 l 2.910 Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in
1752.60 2.1 Freddie Mac (FHLMC) 2.460 2.300 l 2.930 that same company’s share price. Here’s a look at both for two companies in the news.
n.a. n.a. Muni Master Merrill Lynch n.a. n.a. n.a. Investment-grade spreads that tightened the most…
Spread*, in basis points Stock Performance
n.a. n.a. 7-12 year n.a. n.a. n.a. Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Talen Energy Supply TLN 4.600 Dec. 15, ’21 796 –52 n.a. … …
Global Government Bonds: Mapping Yields Freeport–Mcmoran Oil & Gas FCX 6.875 Feb. 15, ’23 960 –44 n.a. … …
Genworth Financial GNW 7.625 Sept. 24, ’21 951 –43 983 2.73 –0.36
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in Teck Resources TCKBCN 6.250 July 15, ’41 870 –39 924 ... ...
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Glencore Funding GLENLN 2.500 Jan. 15, ’19 497 –31 440 ... ...
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points Suncor Energy SUCN 6.100 June 1, ’18 200 –31 n.a. ... ...
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago BHP Billiton Finance USA BHP 2.050 Sept. 30, ’18 89 –28 115 … …
0.875 U.S. 2 0.721 t l 0.757 0.782 0.559 MPLX MPLX 4.875 June 1, ’25 425 –23 429 29.69 6.95
1.625 10 1.786 t l 1.826 1.737 1.925
5.500 Australia 2 1.903 t l 1.914 1.783 1.742 118.2 115.8 118.2
…And spreads that widened the most
4.250 10 2.501 t l 2.505 2.411 2.329 71.5 67.8 40.4 Paragon Offshore PGN 6.750 July 15, ’22 3727 30 3624 ... ...
ConocoPhillips COP 2.200 May 15, ’20 145 22 145 40.27 0.47
4.250 France 2 -0.444 t l -0.427 -0.445 -0.156 -116.5 -118.4 -71.5
Keybank NA KEY 2.350 March 8, ’19 115 20 114 … …
0.500 10 0.486 t l 0.495 0.466 0.477 -130.0 -133.2 -144.8
Chevron CVX 2.419 Nov. 17, ’20 78 18 70 95.40 0.16
0.500 Germany 2 -0.478 s l -0.482 -0.551 -0.248 -119.9 -123.9 -80.7
Ensco ESV 4.700 March 15, ’21 1197 17 1122 10.37 1.87
0.500 10 0.157 t l 0.159 0.110 0.156 -163.0 -166.7 -176.9 Energy Transfer Partners ETP 5.200 Feb. 1, ’22 505 16 n.a. 32.34 3.92
4.500 Italy 2 -0.014 t l 0.013 -0.005 0.135 -73.5 -74.4 -42.4 Kraft Heinz Foods KHC 3.500 June 6, ’22 136 15 140 78.56 –0.43
2.000 10 1.222 s l 1.220 1.413 1.238 -56.5 -60.6 -68.7 Royal Bank of Scotland RBS 7.500 Aug. 10, ’49 690 15 680 6.38 –0.78
0.100 Japan 2 -0.210 s l -0.226 -0.239 0.046 -93.1 -98.3 -51.3
High-yield issues with the biggest price increases…
0.100 10 -0.048 s l -0.092 -0.063 0.405 -183.4 -191.8 -152.0 Bond Price as % of face value Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
4.500 Spain 2 -0.013 t l 0.012 -0.006 0.079 -73.4 -74.5 -48.0
2.150 10 1.366 s l 1.362 1.517 1.214 -42.0 -46.4 -71.2 VRX Escrow VRXCN 6.125 April 15, ’25 82.500 4.75 76.940 ... ...
1.250 U.K. 2 0.454 t l 0.470 0.320 0.569 -28.7 1.0 BioMarin Pharmaceutical BMRN 0.750 Oct. 15, ’18 116.125 3.32 115.899 82.48 5.61
-26.7
Ahern Rentals AHEREN 7.375 May 15, ’23 69.250 2.75 66.375 ... ...
2.000 10 1.418 t l 1.433 1.338 1.606 -36.8 -39.3 -31.9
Noble Holding International NE 5.250 March 15, ’42 50.000 2.50 n.a. … …
Source: Tullett Prebon
United States Steel X 7.375 April 1, ’20 78.500 2.50 76.938 16.05 –2.49
DCP Midstream DCPMID 5.350 March 15, ’20 86.500 2.25 82.500 ... ...
Dish DBS 5.875 Nov. 15, ’24 93.250 2.25 92.687 … …
Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record Western Gas Partners
DISH
WES 5.450 April 1, ’44 79.682 2.15 n.a. 43.41 2.24
Dividend announcements from March 31. Highland HFR Event-Driven DRVN 5.6 .22717 Q Apr07 /Apr04
Highland HFR Global ETF HHFR 2.0 .09561 Q Apr07 /Apr04 …And with the biggest price decreases
Amount Payable / SPDR MFS Sys Core Equity SYE 1.9 .28155 Q Apr12 /Apr04
Company Symbol Yld % New/Old Frq Record SPDR MFS Sys Growth Equ SYG 1.1 .17018 Q Apr12 /Apr04 Genon Energy GENONE 7.875 June 15, ’17 75.250 –4.75 80.500 ... ...
Increased SPDR MFS Sys Value Equity SYV 2.2 .28236 Q Apr12 /Apr04 TRW Automotive TRW 4.500 March 1, ’21 99.000 –3.50 102.500 ... ...
SPDR SSgA Glbl Allocation GAL 1.5 .12172 Q Apr12 /Apr04 5.250 Jan. 15, ’24 –2.25 86.125 10.47
Banner BANR 2.0 .21 /.18 Q Apr20 /Apr11 Micron Technology MU 80.500 –0.10
Glacier Bancorp GBCI 3.1 .20 /.19 Q Apr21 /Apr12 SPDR SSgA Incm Allocation INKM 2.4 .1851 Q Apr12 /Apr04
SPDR SSgA Multi-Asset RR RLY 1.0 .05683 Q Apr12 /Apr04 E*Trade Financial ETFC 4.625 Sept. 15, ’23 100.500 –1.88 100.250 24.49 –0.69
Initial SPDR SSgA Risk Aware ETF RORO 1.9 .16564 Q Apr12 /Apr04 Iamgold IMGCN 6.750 Oct. 1, ’20 74.625 –1.63 n.a. ... ...
Janus SmCap Growth Alpha JSML .00618 Apr06 /Apr04
Janus SMidCp Growth Alpha JSMD .01134 Apr06 /Apr04
Foreign Claire's Stores CLE 9.000 March 15, ’19 71.500 –1.50 66.500 ... ...
China Petroleum ADR SNP 2.8 .9277 SA /Jun16 J. C. Penney JCP 6.375 Oct. 15, ’36 81.500 –1.50 83.000 11.06 –1.43
Funds and investment companies ENI ADR E 5.9 .89384 SA Jun07 /May24
Grupo Aval Acciones ADR AVAL 4.8 .03113 M Apr14 /Apr05 Acosta ACOSTA 7.750 Oct. 1, ’22 93.000 –1.25 93.000 ... ...
Dreyfus Municipal Income DMF 5.6 .045 M Apr29 /Apr13
Dreyfus Strat Muni Bond DSM 5.9 .0415 M Apr29 /Apr13 *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.
Dreyfus Strategic Munis LEO 5.8 .043 M Apr29 /Apr13 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
Note: Data are for the most active issue of bonds with maturities of two years or more
Franklin Shrt Duration US FTSD 2.0 .1626 M Apr06 /Apr04 semiannual; S2:1: stock split and ratio; SO: spin-off. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
MORGENSTERN ON FILM
Dazed and Enthused D3
PLUS A cartoonist with a flair for drama D5
MOVIES | TELEVISION
© 2016 Dow Jones & Company. All Rights Reserved.
| MUSIC | ART |
ARENA
BOOKS | COMEDY
THE WALL STREET JOURNAL.
| THEATER | WSJ BOOK CLUB | SPEAKEASY | SPORTS
Friday, April 1, 2016 | D1
BILL SIMAS FIRST REALIZED just how good top-ranked left-handed prospect. Even though
the 16-year-old prospect from Sinaloa, Mex-
ico was during an otherwise forgettable
2013 game in the lowest rung of minor BASEBALL coaches agree Urias has a major-league reper-
toire, he will begin the season in the minor
leagues. The Dodgers are doing whatever they
BABIES
league baseball. can to make sure he pitches as little as possi-
Julio Urias was one of the youngest ble. The goal is to have him avoid Tommy
players to ever earn a paycheck for the John surgery and save the team millions of
Great Lakes Loons of the Midwest League, dollars down the road.
the Dodgers’ affiliate in low Class A. Simas “It’s a little frustrating,” Urias said re-
ITS ARMS
was the Loons’ pitching coach, which put cently at the Dodgers spring-training com-
him on the front lines of baseball’s most ur- plex in Glendale, Ariz. “I just have to be-
gent obsession: How not to wreck its most lieve that the Dodgers have my best
valuable young arms. interests at heart.”
This particular arm belonged to a lumpy As the 2016 baseball season dawns, the
kid with a precociously fluid pitching mo- urgency to protect the youngest and best
tion who could hurl a fastball that was al- arms in the game has never been greater.
ready hitting the low 90s on the radar gun.
In Urias’s first inning of work that day, Simas watched a se-
To prevent elbow First, clubs put innings limits on their most precious pitchers, a
move that made national headlines in 2012 when the Washing-
ries of right-handed hitters knock around the slider from the surgery, teams ton Nationals shut down ace Stephen Strasburg during
left-handed Urias. In the dugout, Simas told Urias that if he
threw the righties his fastball off the outside half of home plate, are giving their the final month of the season. Superagent Scott Bo-
ras pressured the Mets not to overwork Matt
then followed it with a slider aimed at the back foot, they would valuable young Harvey down the stretch last year before the
ts?
swing and miss every time. Minutes later, Simas watched Urias two sides reached a compromise that alan
pitchers a message: i
G 6
USals? 201
strike out the first two batters doing exactly as he was told. He lowed Harvey to pitch through October.
got the third one on a change-up. Pitch less. For developing pitchers, the monitor- L
P Roy ing
? st
Urias has spent most of the next three years wowing everyone ing has become even more intense, with
else in the Dodgers organization. Now 19 years old, he’s the game’s By Matthew Futterman Please turn to the next page i e reca
s
bb o
Cu F
ILLUSTRATION BY BARRY BLITT; BELOW: SEAN PAVONE/ALAMY
THE CULTURAL TRAVELER
AN ART INSIDER’S GUIDE TO MADRID

tion of all the cultural treasures along the
BY ANNA RUSSELL
Paseo, and in greater Madrid, would take
years—not counting obligatory breaks for
MADRID LOCALS HAVE many names for a Rioja. So get walking, but don’t go too fast.
long walk. At night, it’s called la marcha, a This is Spain, after all.
heady parade through a string of watering
holes and nightclubs. At mealtime, it’s a
tapeo, a long, grazing stroll through the THE ESSENTIALS
city’s seething tapas bars. Among art lovers, Museo Nacional Centro de Arte Reina
it has another name: the Paseo del Prado. Sofía: Down a café con leche and head to the
All cultural travel in Madrid begins with Paseo’s trailhead, Atocha station. Your first
the Paseo del Prado. A broad boulevard just stop is the Reina Sofía, the heart of 20th-
under a mile in length, it cuts a swath century art in Spain. Take a glass elevator to
through the heart of the city, from the steel the second floor and find your way to room
arcs of Atocha train station northward to 206, where Picasso’s colossal rendering of
the imposing Cybele Palace. Along the way, the Spanish Civil War, “Guernica,” domi-
it hits the Golden Triangle of Art—three of nates. Look to the edges of the room for re-
the world’s top art museums in quick suc- vealing photographs of the work in progress
cession: the Prado, the Reina Sofía and the before the 1937 World’s Fair in Paris. Make
Thyssen-Bornemisza. time for surrealist masterpieces by Salvador
At a brisk pace, the entire street is walk- Dalí and Joan Miró, especially Dalí’s dream-
ART BEAT Spain’s capital is home to some of the world’s top museums—but there’s more to explore. able in 20 minutes. But a proper explora- Please turn to page D4
D2 | Friday, April 1, 2016 THE WALL STREET JOURNAL.
OPENING DAY
2016 BASEBALL FORECAST
Last Year’s Royal-ty

And Their Pursuers
Late October. Chicago. The best party since 1908 awaits.
That’s the basic script of the 2016 season. The dataheads
at Fangraphs.com have the Cubs winning 96 games and run-
ning away with the National League Central Division. An ace
like Jon Lester and a lineup stacked with young sluggers will
do that.
Of course, North Siders have heard this sort of happy talk
before and understand October is a long, long way away.
Plus, there will be five other division champs and four wild
card teams vying to make the Cubs miserable yet again.
—Matthew Futterman
FROM TOP: ASSOCIATED PRESS; GETTY IMAGES (2)
AL East
The Boston Red Sox have been terrible the past two seasons,
finishing in last place. Yet when you throw in new baseball
operations chief Dave Dombrowski, free agent star pitcher
David Price and Clay Buchholz returning from injury,
the Bosox suddenly are picked to win a
fairly weak division. David Ortiz is
still whacking the ball, too.
Boston will have to topple di-
vision champs the Toronto Blue
Jays and their hitters Josh Donald-
son, Jose Bautista, Edwin Encarnacion
STILL ON ICE After three years in the minors, the game’s top lefty prospect Julio Urias has yet to pitch in the big leagues and Troy Tulowitzki. No easy task. The
Yankees made it to a wild-card playoff
BASEBALL
game last season but have an aging, brit-
velocity, may be increasing elbow tle lineup, including Alex Rodriguez (really,
stress. Maybe pitchers are now so still), CC Sabathia and Masahiro Tanaka.
strong that the elbow ligaments can’t
take the increased torque and force
generated by the legs.
Continued from the prior page can remain healthy and blossom. He Like nearly everything about the
coaches and scouts tracking not just in- had Tommy John surgery just two health of the pitcher’s elbow, that’s just
nings, but also how many pitches are months after the Nationals drafted him a theory. The only surefire way to avoid
thrown. Then they classify those pitches in the first round in 2012 and gave him pitching injuries is to not pitch, which
AL
by how stressful each one might be by a $3 million signing bonus. The Yan- brings us back to Julio Urias and all the
Central
taking into account whether runners are kees’ Masahiro Tanaka, who pitches Dodgers’ coaches, scouts, trainers and
on base, the score and how many outs with a partial UCL tear, is considered a executives fixated on when his arm will
there are. time bomb. be ready to safely endure the big
When Dwight Gooden was 19 years The financial costs are enormous. leagues.
The Royals won the World Series last year and nearly won it
old in 1984, he pitched 218 innings. Urias In total, baseball teams spend $1.5 bil- Physically Urias is hardly a model of
in 2014, so of course the computer systems project them to
might throw a little more than 100 in- lion on pitchers each season. Last sea- the modern pitcher. He is just a shade
win a mere 77 games this season. That’s silly. The Royals are
nings this season. The idea is to increase son they spent nearly $700 million, or over 6-feet tall at a time when pitchers
young, fast and confident. Go ahead, plunk down your money
the workload each year by about 25%, about $3.8 million a day, paying and re- a half-foot taller are in favor. His phy-
at the Las Vegas sportsbook on the idea that a team with
roughly the same rate at which Dodgers placing players on the disabled list. El- sique is still adolescent. He lacks mus-
proven winners like Eric Hosmer and Lorenzo Cain will tank.
Cy Young winner Clayton Kershaw was bow injuries, many of which involve or culature and definition. Also, a benign
If the Royals should stumble, the Cleveland Indians are the
allowed to develop a few years ago. will eventually involve UCL tears, ac- mass behind his left eye causes his eye-
fashionable pick to reign in the Midwest. Baseball folks are in
(That calculation included the innings counted for 28% of those days, mean- lid to droop nearly shut, though that
a lather over flashy young shortstop Francisco Lindor and
Kershaw pitched his senior year in high ing roughly $1.09 million a day. doesn’t appear to affect his pitching.
the team’s improving pitching staff.
school.) The most surprising thing is, no Also last season, 116 major-league He likes to joke that God gave him a
one knows if this strategy will actually pitchers landed on the disabled list bad left eye but a great left arm.
work or prevent Urias’s arm from get- with elbow injuries, the second-highest Matt Herges, the pitching coach
ting stronger. number since 1998 and 68% more than who handled Urias at Class A Rancho AL West
It’s not that Urias shows any symp- in 2005. When it was over, five teams Cucamonga in 2014 and in Class AA The Astros crashed October a year
toms of needing the surgery. It’s that decided to overhaul their training Tulsa last year, said the teenager has ahead of schedule in 2015, and there
more young guns are going down. A re- staffs, but was it their fault? come a long way emotionally in two is no reason to believe they won’t
cent study of Major League Baseball’s “Strength and conditioning coaches years. After a rough outing in 2014, get there again. They have Cy
injury trends found that 400 Herges found the youngster Young winner Dallas Keuchel
players underwent Tommy John crying in the clubhouse. “He on the mound and more home-
surgery from 1974-2015, and one- was bawling, I mean really,” run hitters than most people
third of those procedures oc- Herges recalled. realize, including Evan Gattis,
curred during the past five years. Last season, when opposing Carlos Correa, Colby Rasmus
Across the 30 organizations in teams occasionally hit Urias and Luis Valbuena.
the game, 25% of major-league hard, he’d glare at them on the The Angels’ Mike Trout is
pitchers and 15% of minor league base paths, with a how-dare- baseball’s best player but he has
ones have had the operation. you-get-a-hit-off-me look. He a middling supporting cast and prob-
Tommy John surgery is a talked down to umpires when ably won’t overtake Houston. The
procedure named after another he disagreed with ball-strike big question may be whether Cole
Dodger left-hander, who had his calls. Herges told him to knock Hamels and the Texas Rangers are
elbow’s medial ulnar collateral it off. Urias did. as good as they seemed when their
ligament (UCL) replaced in 1974. Dodgers pitching coach Rick hot finish led to a stunning division
He wasn’t expected ever to Honeycutt likes what he has championship last season.
pitch again, but after missing a seen so far. Honeycutt pitched
year, John went on to earn 164 for the Dodgers in the 1980s,
of his 288 total victories. when Gooden burst onto the NL East
The process involves remov- scene, and was the Dodgers Can the New York Mets
ing the ligament that essentially pitching coach in 2008, when deal with prosperity? Probably.
binds the upper and lower arm, Kershaw made his debut at 20, The young arms—Jacob de-
drilling holes in the bones, then but he isn’t in any rush to over- Grom, Matt Harvey, Noah Syn-
tying them together using a ten- Lucas Giolito, the top right-handed minor-league load Urias. “You’ve got to think dergaard and Steven Matz—make
don from the wrist, leg or a ca- prospect in the game, had Tommy John surgery in 2012 of him like he’s just coming out that a lot easier. The Phillies and
daver. of high school,” Honeycutt said Braves are still in rebuilding mode.
The surgery only takes about of Urias. The Marlins have hitting coach Barry
75 minutes, but it often requires When Honeycutt first saw Bonds and manager Don Mattingly.
18 months for a full recovery, Urias pitch, he was stunned at Too bad they can’t play.
which is hardly guaranteed. how Urias’s pitching motion The Mets should duke it out with the
About 80% of major-league looked the same on every throw. Nationals, who underperformed last sea-
pitchers who have Tommy John Urias explained that his father, a son but still have Max Scherzer and Ste-
surgery make it back to the big longtime Mexican League phen Strasburg at the top of the rota-
leagues, but just 67% returned catcher, had worked with him tion, plus star Bryce Harper in right field.
to play at least 10 games in a closely. Every time Honeycutt
season. And in 2014 alone, 11 told Urias to throw a particular
players who had undergone the pitch in a particular location—a
operation needed a dreaded sec- curveball on the outside part of NL Central
ond procedure, known as the the plate or an inside change- Like the Astros, the Cubs bloomed a
“revision,” less than three years up—he hit the spot. year early and they should be better
later. At the start of last season, this year as corner infielders Kris
Glenn Fleisig, a biomedical the Dodgers thought Urias Bryant and Anthony Rizzo improve
engineer who works closely might be ready to help them and newly arrived right fielder Jason
with renowned sports surgeon down the stretch. So they came Heyward brings improved defense and a
James Andrews at the American up with a novel way of resting solid bat. Many fingers are crossed that
Sports Medicine Institute in Al- his arm for that possibility. pitcher Jake Arrieta remains as good as he
abama and is one of the leading Urias had plastic surgery in late has been (36-13) since he arrived from
researchers in the science of May to improve the condition of Baltimore in 2013.
pitching, describes limited prog- his eyelid. As always, the Cardinals, who get
ress: “We have a lot more to It helped his eye but not his ace Adam Wainwright back from
learn.” arm. Urias wasn’t as sharp after injury, should be lurking in what
A sign that the problem is the surgery, struggling to regain was baseball’s toughest divi-
growing more serious is that the early-season form that saw sion last season. The Cubs,
last year Major League Baseball Stephen Strasburg’s surgery helped turn the issue of him pitch to a 2.77 earned-run Cards and Pirates com-
and its players union agreed to limited innings into a contentious one in 2012 average through 68 innings at bined for 295
allow ASMI to begin tracking Class AA Tulsa. wins in 2015.
what will be hundreds of pitchers from and trainers and pro athletes have Rick Knapp, who oversees minor-
their first moments as professionals. never been better, but we have more league pitching development for the
The idea is to test their biomechanics injuries now than in 1993, so what’s go- Dodgers, was putting his pitchers
through physical exams and magnetic ing on?” said Stan Conte, a co-author through drills in Arizona one recent day. NL West
resonance imaging to try to understand of the injury trends study and a long- He defended the gentle approach the Perhaps Commissioner Rob Manfred ought to
the relationship between workload and time Dodgers trainer who now runs his Dodgers have used with Urias. Innings just hand the World Series trophy to the San
injury. In the past the union probably own health consulting firm. limits have been getting a bad rap lately, Francisco Giants now. They won in 2010, 2012
would have resisted such a study for Theories for the epidemic abound. but there was no reason to risk Urias’s and 2014, so surely the Giants will maintain the
fear that teams might use the informa- Youth baseball is now a 12-month sea- long-term future by rushing his develop- every-other-year pattern. Not so fast. After
FROM TOP: ASSOCIATED PRESS; GETTY IMAGES (5)
tion to value players. However, the risks son for the best players, whose arms are ment, he said. catcher Buster Posey and ace Madison Bumgar-
of arm injuries and their toll are now being taxed as never before. The sport “There is no question that the work ner, the Giants don’t have many great
taking precedent over those concerns. has become ever more obsessed with is harmful,” he said. “We have to try players, though new arrivals Jeff Sa-
Elbow health will likely play a major pitching velocity, which makes kids and control the intensity and make mardzija and Johnny Cueto will help.
role in who wins this season. Will want to throw as hard as possible to get sure these guys can withstand it.” The Dodgers look loaded, with the
Mets ace Harvey stay healthy despite noticed. Higher velocity correlates with Since the Dodgers have had Urias outstanding Clayton Kershaw and 21-
all the work in October during what a higher risk of injury, Fleisig said. since he was 16, they can’t blame his year-old shortstop Corey Seager
was his first season back from UCL re- Still, there have been reasonably high school or college coaches for over- whose name is usually followed by the
placement? The Washington Nationals’ healthy flamethrowers. “Aroldis Chap- using him. If he breaks down, it’s on words “next Derek Jeter.” Don’t dismiss
battle to regain supremacy in the Na- man throws 104 miles per hour, so why them. the Arizona Diamondbacks, who added
tional League East may hinge on isn’t he dead?” Conte asked. He hy- So Urias waits. “It’s up to the Dodg- pitchers Zack Greinke and Shelby Miller to a lineup
whether 21-year-old Lucas Giolito, the pothesizes that the proliferation of leg- ers,” he said during spring training, led by Paul Goldschmidt.
top right-handed prospect in the game, strength training, which helps improve “but I am ready.”
THE WALL STREET JOURNAL. Friday, April 1, 2016 | D3
MORGENSTERN ON FILM
‘EVERYBODY’: Blake Jenner
Dazed and
and Zoey
Deutch
Enthused
REVIEW
JOE MORGENSTERN
FROM TOP: PARAMOUNT PICTURES; BROAD GREEN PICTURES

RICHARD LINKLATER is his car to take up residence
America’s poet of the pres- in one of two houses reserved
ent tense, whether his pres- for baseball players. Jake is a
ent be the last day of high pitcher, a position his team-
school in 1976, as it was in mates-to-be consider a neces-
“Dazed and Confused,” or, sary evil; they see themselves
as in “Everybody Wants as the real athletes of the
Some!!,” the weekend before game. Jake can take their
college classes start in the cheerful scorn, though. He is
fall of 1980. His infallibly modest and graceful, with a
likable characters live in a winning serenity that attracts
succession of intense nows, the attention of a singular
not so much seizing the mo- someone, even though his
ments but embracing and first lame attempts at hitting with a vaporous belief that his buds crash a series of Jake meets, not for the first on the phone, with exquisite
rejoicing in them with a fer- on coeds get him nowhere. life is about finding out who parties and venues that func- time, Beverly (Zoey Deutch), intimacy. Beverly, an aspiring
vor that still leaves room for (“I like your dress. Blue. Like you are “between the notes.” tion as a compendium of the the radiant freshman who actress, refers to Jake’s base-
savoring their significance. your eyes.” Girl rolls eyes, “Everybody Wants decade’s musical modes: speaks of the beauty of pas- ball practice as rehearsal,
Toward the end of this walks away.) Some!!,” which takes its title disco, rock, country, funk and sion. She and Jake occupy a but she isn’t wrong. Every-
loose-jointed and endearing The cast of characters from the Van Halen anthem, punk, with a sweetly inno- special and leisurely place in thing these enchanted kids
new film, a freshman says to around Jake is mostly male places itself within specific cent take on Bohemianism the film, a split-screen inter- do is a rehearsal for lives yet
her boyfriend, “It’s kind of and charmingly fatuous, a notes of the period. Jake and thrown in at a party where lude during which they talk, to be lived.
beautiful that we get to feel prize collection of primpers,
passion in this world—about preeners, swaggerers and
anything.” She and he, and rawboned Peter Pans who
everyone around them, have see the looming academic
passion to burn, and we get year as the end of pleasure,
to feel great about them.
By the filmmaker’s ac-
count, this is a “spiritual se-
rather than the beginning of
wisdom. (And college as the
end of whatever dominance
“A MOVIE THAT AMERICA NEEDS TO TALK ABOUT.” THINK PROGRESS
quel” to his 1993 “Dazed and they may have enjoyed at
Confused” and a significantly the top of the heap as high-
autobiographical ramble school seniors.) Jake’s team
through recollections of mu-
sic, parties, mating rituals,
includes the fast-talking—
and, in fairness, fast-think-
“CRITICS’ PICK “A TAUT NAIL-BITER. “HOLDS US IN A VISE
parties, prickly friendships, ing—Finnegan (Glen Powell); A RIVETING THRILLER. SUPERBLY ACTED. AND KEEPS SQUEEZING.
parties, drug trips, parties the aptly named Coma (For- Helen Mirren in one of her
and baseball. Our guide into rest Vickery); reliably sensi- THOUGHTFUL, PIERCING. THE SUSPENSE IS KILLER.
and through the memory ble Douglas (J. Quinton fiercest screen performances. Director Gavin Hood Helen Mirren is dynamite.
maze is Jake Bradford (Blake Johnson); reliably delusional Alan Rickman’s final screen deftly churns up Alan Rickman takes on the issues
Jenner), a freshman—and Niles (Juston Street), a self- performance, and it is a great one.” the suspense.” with brilliance and bracing humanity.”
presumably Mr. Linklater’s styled pro prospect who
fictionally altered ego—who pitches the undeliverable
arrives on campus in Texas promise of a 95-mph fast-
with a crate of LPs and a ball; and Willoughby (Wyatt
turntable in the back seat of Russell), a California stoner
“GRIPPING. AN UNSETTLING “RIVETING. PUTS THE “A TENSE, ALL-STAR
THRILLER ABOUT THE MORALITY OF DRONE WARFARE THRILLER. A
WAR ON TERROR.” IN ITS CROSSHAIRS.” PHENOMENAL CAST.”
“JAW-DROPPING. “GRIPPING.
A STATE-OF-THE-ART EXEMPLIFIES A NEW
THRILLER.” KIND OF WAR PICTURE.”
“####. “####.
EXCITING. A TAUT AN EDUCATION
From left. Te Rua Rehu-Martin, Cliff Curtis, Te Ahorangi
Retimana-Martin and Lyel Timu THRILLER. HELEN MIRREN IN MODERN
IS TERRIFIC.” WARFARE.”
‘The Dark Horse’
“The Dark Horse” brings Gen, can be off-putting,
Cliff Curtis back home, and what with his chronic confu-
he gives a performance sion, his scary desperation, “A TENSE, “A TICKTOCK
that’s transcendent in more
ways than one.
his terrible teeth and his
beer-belly bloat. (The actor
TIMELY DRAMA.” THRILLER.”
A New Zealander of bulked up spectacularly for
Maori descent, this superb the role.) But Gen is a bright
actor has had a thriving in- spirit struggling to break
ternational career—you may free of frightening darkness.
know him as the English The script gives him flights ACADEMY AWARD WINNER
®
ACADEMY AWARD NOMINEE

®
teacher Travis Manawa on of startling eloquence and

the TV series “Fear the
Walking Dead”—but never,
flashes of beguiling humor
during increasingly long peri-
HELEN MIRREN AARON PAUL ALAN RICKMAN BARKHAD ABDI
until now, a starring role ods of clarity, while Mr. Cur-
that’s fully worthy of his tis takes him on a heart-
gifts. Here, in a film written stopping journey from
and directed by James Na- solitude to fulfillment.
pier Robertson, he is Genesis And “The Dark Horse,”
Potini, a Maori chess prodigy, shot with unassuming ele-
brought down by mental ill- gance by Denson Baker, sur-
ness, who teaches underpriv- rounds its star with a strong
ileged kids how to play supporting cast. Wayne Hapi
chess, pulls them together is Gen’s brother, Ariki, the
into a competitive team and leader of a scruffy local gang
turns his own life around in called the Vagrants. James
the process. Rolleston is Mana, Ariki’s
“The Dark Horse” was in- son, who seems doomed to
spired by Jim Marbrook’s join the gang unless Gen can
documentary of the same save him. In a film that’s
name about the real-life Po- very good at depicting a
tini, who died in 2011. Inspi- poverty culture without con-
ration is also the goal of Mr. descension, both Genesis
Robertson’s feature, which and Mana are souls hanging
combines fine craftsmanship in the balance.
with many familiar conven- One caveat should be
tions of the triumph-and-re- noted. The accents can be
BLEECKERSTREET AND ENTERTAINMENTONEFEATURES PRESENT A RAINDOGFILMS/ENTERTAINMENTONEFEATURES PRODUCTION
A GAVIN HOOD FILM HELENMIRREN AARONPAUL ALANRICKMAN “EYEIN THESKY” BARKHADABDI JEREMYNORTHAM AND IAIN GLEN
demption genre. Yet the ma- hard to decode, and I say
jestic gravity of Mr. Curtis’s this as someone who has
BY DEBORAHAQUILA TRICIA WOOD KATEDOWD BY PAULHEPKER AND MARKKILIAN DESIGNER RUYFILIPE EDITOR MEGANGILL DESIGNER JOHNNYBREEDT
portrayal transcends them spent a fair amount of time CASTING MUSIC COSTUME PRODUCTION
all, and does so from the in New Zealand in recent
PHOTOGRAPHY HARIS ZAMBARLOUKOS BSC PRODUCERS CLAUDIA BLUEMHUBER ANNESHEEHAN GUYHIBBERT STEPHENWRIGHT XAVIERMARCHAND BENEDICTCARVER
very first shot—a massive years. At certain points I DIRECTOROF EXECUTIVE
man, seen from behind, would have been grateful for
BY GUYHIBBERT BY GEDDOHERTY COLIN FIRTH DAVID LANCASTER BY GAVIN HOOD
walking in the rain with a subtitles, but they’re pro- WRITTEN PRODUCED DIRECTED
quilt draped over his shoul- vided only for brief passages EyeInTheSkyTheMovie.com ARTWORK © 2015 BLEECKER STREET MEDIA LLC.
MOTION PICTURE © 2015 EONE FILMS (EITS) LIMITED. ALL RIGHTS RESERVED.
ders and his hands upraised of Maori dialogue. Still, see
in supplication, expectation the movie and tune in
or maybe just pleasure.
Seen head on, Genesis, or
closely. Your efforts will be
rewarded.
NOW PLAYING IN THEATERS EVERYWHERE
Email Joe at joe.morgenstern@wsj.com and
CHECK LOCAL LISTINGS FOR THEATER LOCATIONS AND SHOWTIMES
follow him on Twitter: @JoeMorgenstern.
MADRID
Continued from page D1
like ant-and-eyelash-heavy work
from 1929, “The Great Masturba-
tor.” €8 (about $9); 10 a.m.-9 p.m.
Mon., Wed.-Sun.; Calle de Santa Is-
abel 52, museoreinasofia.es
Museo del Prado: Experts have

suggested Dalí owes something to
an early predecessor, Hieronymus
Bosch, whose famous 16th-century
triptych “The Garden of Earthly
Delights” is housed at your next
stop, the Prado. Take a
close look and you’ll find
owl-headed creatures, tiny
mermaids and half-animal,
half-object demons. You’ll
also find a crowd—the
Prado is one of the world’s
most-visited museums and
“Earthly Delights” is among
its most popular works.
Other key works include Ve-
lázquez’s influential 1656 Clockwise from top left, find earthly delights at the
painting “Las Meninas” and Prado; take in sunset at the Temple of Debod; enjoy
works by Titian, El Greco, drinks at Círculo de Bellas Arte; notice the salmon-pink
Rubens and Goya, whose walls at the Thyssen-Bornemisza; ride the glass elevator
mysterious “Black Paint- at the Reina Sofía; sit in Sorolla’s tiled gardens.
ings” occupy a dimly lit
room on their own. Also
worth seeing are Goya’s
cartoons—fanciful studies
he made for tapestries—
tucked away upstairs. €14;
10 a.m.-8 p.m. Mon.-Sat., 10
a.m.-7 p.m. Sun.; Paseo del
Prado, museodelprado.es
CLOCKWISE FROM BOTTOM RIGHT: ALAMY; GETTY IMAGES (4); SHUTTERSTOCK

Museo Thyssen-Borne-
misza: Across the street from the
Prado, step inside the Thyssen-
Bornemisza, which houses the dual
collections of Baron Hans Heinrich
Thyssen-Bornemisza and his widow,
the former beauty queen Baroness
Carmen “Tita” Thyssen-Bornemisza.
See their wall-size double portraits
in the lobby and take note of the
salmon-pink walls, which Ms. Thys-
sen-Bornemisza herself requested.
Highlights from the broad collection
include Edward Hopper’s 1931 “Ho-
tel Room,” Paul Gauguin’s 1892
“Mata Mua (In Olden Times)” and
Jean-Baptiste-Camille Corot’s 1866
“Solitude.” €12; 10 a.m.-7 p.m. Tues.-
Sun., 12 p.m.-4 p.m. Mon.; Paseo del
Prado 8, museothyssen.org
Anyone on the Goya trail will juanadeaizpuru.es) and Helga de fictional mouse who leaves money
THE CONNOISSEUR find the often-overlooked Museo Alvear (Doctor Fourquet 12, hel- and sweets in exchange for chil- HAVE A DRINK WITH…
Outside of the big three, make Lázaro Galdiano, which contains gadealvear.com). The Matadero dren’s teeth. The Casita Museo de Hemingway at La Venencia, the
time for a few smaller museums. minor works by major artists, of Madrid, a repurposed slaughter- Ratón Pérez stands where the 1930s-era bar where legend has it
The Sorolla Museum, housed in interest. €6; 10 a.m.-4:30 p.m. house in the Arganzuela district, mouse is said to have lived in a “Don Ernesto” came to drink sherry
Joaquín Sorolla’s buttery-yellow Tues.-Sat.; 10 a.m.-3 p.m. Sun.; hosts contemporary exhibitions, cookie tin with his family and and soak up news from Republican
former home, has maintained the Calle de Serrano 122, flg.es concerts and events (Plaza de houses the fake baby teeth of fa- soldiers during the Spanish Civil
“painter of light’s” studio as it Between the Reina Sofía and Legazpi 8, mataderomadrid.org). mous figures, including Beethoven War. The bar, which serves only
was during his lifetime. The build- the Prado, stop at the CaixaFo- Get a cheap glass of wine and and Beatrix Potter. Calle del Are- sherry and small plates, retains
ing itself is charming, especially rum, or at least admire its impres- see a film at Cine Doré, an art nal 8, casamuseoratonperez.com much of its original décor, including
during the summer, with a tiled sive vertical garden by French bot- nouveau theater with screenings a sign asking patrons not to spit on
garden and outdoor fountain, but anist Patrick Blanc. €4; 10 a.m.-8 from the Spanish Film Library the floor. A short walk from the
linger in front of “El Baño del Ca- p.m. Mon.-Sun.; Paseo del Prado (Calle de Santa Isabel 3, THE OUTDOOR ART Paseo del Prado, it’s the perfect
ballo,” Sorolla’s 1909 sunlit depic- 36, obrasocial.lacaixa.es +34-913-69-32-25). For glitzy Two of Madrid’s most famous out- place to shake off museum fatigue.
tion of a boy and his horse by the views—and people watching— door sculptures, one of Neptune Calle Echegaray 7, +34 914 29 73 13
sea. €3; 9:30 a.m.-8 p.m. Tues.- visit the rooftop bar of the Cír- and one of Cybele on a grand char-
Sat., 10 a.m.-3 p.m. Sun.; Paseo THE SCENE culo de Bellas Artes, a popular iot, also call the Paseo home. Carved
del General Martínez Campos 37, Madrid’s contemporary gallery cultural center (Calle de Alcalá at the tail end of the 18th century, THE STAFF PICK
museosorolla.mcu.es scene began in Salamanca, a 42, circulobellasartes.com). the fountains have been adopted as Beatriz Mencos, ticket-taker at
The Museum of Romanticism, wealthy neighborhood studded unofficial mascots by rival soccer the Thyssen-Bornemisza: “La
down a side street in trendy with expensive shops. Visit teams Atlético Madrid and Real Ma- Rousse in a White Blouse” by
Chueca, is a quirky house museum Guillermo de Osma (Calle de Clau- THE DETOUR drid, respectively. Also worth a visit Toulouse-Lautrec. “I love por-
in an 18th-century mansion, with dio Coello 4, guillermodeosma.com) Just off Plaza Puerta del Sol is a is the incongruous Temple of De- traits and this one has something
free entry on Saturday afternoons and Parra & Romero (Calle de small museum dedicated to bod, one of the few ancient Egyp- special for me, I don’t know what
and Sundays. €3; 9:30 a.m.-6:30 Claudio Coello 14, parra-ro- Spain’s version of the tooth fairy, tian temples in Europe, donated to it is. I think maybe it’s the feeling
p.m. Tues.-Sat., 10 a.m.-3 p.m. mero.com), then move into Chueca El Ratón Pérez. Popularized by the city in 1968. Located in Western it transmits—the loneliness, and
Sun.; Calle San Mateo 13, museo- for two stellar galleries, Juana de Luis Coloma in the 19th century, Park, it’s a popular spot for selfies the color with the darkness of the
romanticismo.mcu.es Aizpuru (Calle del Barquillo 44, El Ratón (or Ratoncito) Pérez is a and picnics, especially at sunset. room.”
TELEVISION: ’THE GIRLFRIEND EXPERIENCE’
Steven Soderbergh’s TV Experience

BY JOHN JURGENSEN Riley Keough (“Magic Mike,” “Mad Max: Fury
Road”) stars as Christine, a driven but dispassion-
ate law student who follows a friend into a high-
“THE GIRLFRIEND EXPERIENCE” has all the end escort service. As Christine’s client relation-
hallmarks of a highbrow TV drama. The new se- ships grow complicated, troubles mount at the
ries on pay-cable channel Starz features a flawed law firm where she interns by day.
main character—a law-firm intern who moonlights Mr. Kerrigan, who directed such TV shows as
as an expensive escort. It was produced by an “The Killing,” met Mr. Soderbergh 22 years ago
Oscar winner, Steven Soderbergh, and “suggested when his debut feature film “Clean, Shaven” pre-
by” his feature film of the same name. Two inde- miered at Sundance. Ms. Seimetz, a filmmaker
pendent filmmakers, Lodge Kerrigan and Amy (the 2012 thriller “Sun Don’t Shine”) and actress,
Seimetz, wrote and directed all 13 episodes. The is starring in Ridley Scott’s “Alien” sequel. She
first four episodes pre- appears in “The Girlfriend Experience” as Chris-
miered at the Sundance tine’s sister.
Film Festival. Mr. Kerrigan and Ms. Seimetz wrote all the epi-
But the steely, sex-heavy sodes together, then alternated as directors. Fol-
drama also shares some- lowing Mr. Soderbergh’s lead on “The Knick,” the
thing with sitcoms going Cinemax series he directs, they saved time and
back to “I Love Lucy”—each money by shooting with almost all natural lighting.
episode is less than 30 min- Both say it was hard to adapt to the creative
utes long. Through the marriage Mr. Soderbergh arranged for them. Ms.
1950s, there were plenty of Seimetz went into the writing process thinking, “I
half-hour dramas on TV, in- really hope this person doesn’t want to make an-
cluding radio crossovers such other ‘Sex and the City.’ ”
STARZ (2)
as “Dragnet.” In the 1960s, Initially, they found common ground in what to

commercial breaks squeezed avoid, such as jokey portrayals of the sex trade or a
story lengths down to about In ‘The Girlfriend Experience,’ Riley Keough and Aidan Devine play a high-end escort and client. At heroic protagonist. “Neither Amy or I was inter-
20 minutes. Drama producers gravitated to hour- left, Ms. Keough with Lodge Kerrigan, left, and Amy Seimetz, who wrote and directed the series. ested in writing someone who was ‘likable,’ so it
long, multiple-act story arcs and largely surren- was liberating to just let that go,” Mr. Kerrigan says.
dered the 30-minute format to sitcoms. Mr. Soderbergh directed the original “Girlfriend hour that might overstay its welcome. In 2003, he The 30-minute span helped them portray a
Lately the half-hour has become a lively TV Experience” movie, which was released in 2009. It experimented with “K Street,” his news-driven, character who reveals herself through her actions,
testing ground. Series including Amazon’s “Trans- starred adult-film actress Sasha Grey as a high- half-hour HBO series about Washington lobbyists not her words, and wonders if she is a sociopath.
parent” and even the animated Netflix show “Bo- end prostitute with a sympathetic ear for her rich and politicians. Scenes with clients and colleagues are compact,
Jack Horseman” have equal measures of melan- clients walloped by the financial crisis. For the TV Binge viewing has made the shorter format en- playing out like snapshots of Christine’s experi-
choly and comedy. Online programs also have adaptation, Mr. Soderbergh chose a female and a ticing. “Chunks of narrative this size encourage the ences. “She’s compartmentalizing each part of her
chipped away at format rules. “Horace and Pete,” male filmmaker who hadn’t collaborated before ‘I-want-to-watch-one-more’ sensation,” Mr. Soder- life, so each episode acts as a phase that gets her
an often-grim series that comedian and star Louis and turned them loose with only the title and the bergh says. On April 10, Starz will make all 13 epi- closer to what she’ll become,” Ms. Seimetz says.
C.K. sells directly to viewers for about $5 a show, half-hour parameter. sodes of “The Girlfriend Experience” available on de- “With an hour-long, we might be mining the char-
has episodes that range in length from 30 min- Mr. Soderbergh says the goal was a short mand and on the network’s streaming platform, acter for more material than perhaps is necessary
utes to over an hour. “densely packed” show rather than a “leisurely” Starz Play. On TV, episodes will appear weekly. or fair to the audience.”
THE WALL STREET JOURNAL. NY Friday, April 1, 2016 | D5
An Iconic Cartoonist Geoff Manaugh
With a Flair For Drama

BY BRENDA CRONIN
Peter Arno, whose

cartoons skewered
SASHA MASLOV FOR THE WALL STREET JOURNAL

cafe society for more
than 40 years, was
driven more by ire
FROM TOP: FOX PHOTOS/GETTY IMAGES; ESTATE OF PETER ARNO (3)

than inspiration.
According to “Pe-
ter Arno: The Mad,
Mad World of The
New Yorker’s Greatest
Cartoonist,” a biogra-
phy by Michael Maslin out April 19, the
artist said, “You don’t do good work of
this sort unless you’re mad at some-
thing.” With dark strokes and spare
backgrounds, Arno created raffish BREAKING AND ENTERING
The Dying
scenes of potbellied plutocrats and
curvy chorus girls amid flowing marti-
nis and a racy ambience.
Art of Burglary
Born Curtis Arnoux Peters Jr. in Top drawer
1904, he adopted the “Arno” name with drawer
a drawing published in 1925. He
dropped out of Yale after his parents’
marriage failed and his father, fed up dressed man in America. He designed more than a year. He badgered Harold
with his high jinks, stopped paying the and drove a fancy convertible, fittingly Ross, the founder and editor, to print BY ELLEN GAMERMAN
tuition. Although a dismal student, the named the Albatross, that never was his cartoons on left-hand pages, con-
good-looking and glib Arno distin- mass produced. One Halloween, he was sidering the display preferable to IN A MEMORABLE PASSAGE in Geoff Manaugh’s new
guished himself with drawing and car- arrested after threatening an attendant right-hand ones. He also insisted on book, “A Burglar’s Guide to the City,” a suspect in a New
tooning. He played the banjo and accor- at the Drake Hotel on Park Avenue being paid if his captions were altered Zealand store heist hides from police inside an overhead
dion and started a band that performed with a .38 caliber pistol. (The third-de- without his permission. crawl space. The man might have gotten away if an officer
in supper clubs. In his early 20s, he gree assault charge was dropped the Many Arno drawings started as con- hadn’t spotted his toe sticking out of the ceiling.
was torn between music and art until next year.) cepts dreamed up by “gag men” who Buildings and burglars are intertwined in the mind of Mr.
the fledgling New Yorker bought one of “I would see fatuous, ridiculous peo- supplied cartoonists with ideas, Mr. Manaugh, whose nonfiction book arrives Tuesday from Far-
his sketches. ple in public places, in night clubs Maslin said. Among them were James rar, Straus and Giroux. Fascinated by bandits who smash
The magazine and Arno found their where I ran a band, on trains and Geraghty, hired by Ross in 1939 to run through walls, crawl up air ducts and tunnel through floors,
voices in tandem. Arno’s vivid personal beaches, in cafes, at parties, and I was the magazine’s art department, and the author wanted to explore their singular approach to ar-
life—two failed marriages, nightclub awfully annoyed by them, by the things Richard McCallister. Arno “got the chitecture as a force to be abused, outsmarted and escaped.
melees, Hollywood stints and romances they did and said,” Arno said. “That an- cream of the crop of the ideas” and “Architects tend to think that
with starlets—was grist for his art. Be- ger, if you like, gave my stuff punch and ones he rejected trickled down to other they’re the only people really con-
tween nicotine-fueled drawing jags, he made it live.” artists, said Mr. Maslin, who began his cerned about the built environ-
produced a Broadway flop, appeared in He directed some of his bile toward New Yorker career in 1977. ment, but when you read police
a movie and courted a debutante heir- the magazine, negotiating higher fees Below, Mr. Maslin on three full-page reports about burglaries or talk
ess. In 1941, he was named the best and at one point going on strike for Arno cartoons. Edited from an interview. to burglars or read FBI reports
about bank crimes, they’re dis-
cussing architecture in a really
unexpected and interesting way,”
Well, Back to the Old Drawing Board Mr. Manaugh said in an interview.
Published March 1, 1941 The 40-year-old freelance
It’s not Arno’s most famous drawing but the caption journalist, who is not trained as
lives on. I believe the idea came from a New Yorker car- an architect, has taken an out-
toonist named John Ruge. Arno was a master artist. At sider’s approach to the field with
this point in his career, he was at the top of his game his website, BLDGBLOG. A for-
and these are absolutely beautiful forms that he did. mer senior editor at Dwell maga-
Back in the ’20s he did a very similar drawing, without zine and author of “The BLDG- Thanks to new
these fellows in the forefront. It was a plane crash and BLOG Book,” Mr. Manaugh was technology,
the plane is actually tilted at the same angle. If you put inspired to write “Burglar’s
the two drawings side-by-side the horizon line is almost Guide” partly because heist mov- break-ins have
the same. I think he may have had that in the back of ies—his favorite genre—inevitably never been
his head. Also, the engineer is walking out of the frame included scenes of burglars por-
and that’s unusual because Arno loved to do boxes that ing over blueprints and 3-D mod- easier.
are very solid. He doesn’t do it here. He’s breaking that els of their targets. Burglary, he
wall a little tiny bit. realized, was the perfect melding
of crime and design.
During nearly three years of research, the author explored
burglary from good-guy and bad-guy perspectives. He trav-
eled to the scenes of historic bank heists and studied how
SWAT teams break down doors. He heard how citizens
feared home invasions while at the chariot races in ancient
Rome and visited a panic-room designer whose structures sit
in the mansions of CEOs. He read up on Stagehand—a code
name for the FBI’s program facilitating government-sanc-
tioned break-ins—and learned how agents hide behind fake
bushes that open like umbrellas, anesthetize barking dogs
and travel with vials of their own dust to cover their tracks.
Burglary, which does not involve physical violence against
a person, is easily romanticized on film with diamond vaults
and suitcases of cash. It is defined as the act of entering a
structure with the intent to commit a crime.
In some ways, a break-in is an old-fashioned crime. Peo-
ple who would have gotten their hands dirty with burglaries
a few decades ago now are stealing identities and hacking
into online accounts. In New York City alone, burglary com-
“Well, back to the old drawing board.” plaints dropped more than 56% between 2000 and 2014,
according to city crime statistics.
The shift has left some of these criminals in an existen-
tial funk, Mr. Manaugh writes. He interviews a self-de-
scribed former burglar who bemoans the shift to cyber-
crime. “He repeatedly claimed to feel that he was the last
of a dying breed,” Mr. Manaugh writes.
Though surveillance cameras complicate the life of the
burglar, in some ways break-ins have never been easier.
Home layouts are often displayed on real-estate sites like
Zillow. Google Street View allows burglars to case a house
in advance, looking for a drainpipe that would work as a
Man in the Shower handhold, an overhang that would offer safe passage to the
Published Aug. 28, 1943 ground, a bush that would provide cover.
This is Arno’s most reprinted drawing. When you Mr. Manaugh imagines a future where brick-and-mortar
look through a New Yorker from then and you come burglars and cybercriminals meet. He cites a 2014 experi-
on one of these drawings, they’re unlike anything ment by students at an Israeli research university who fig-
else graphically in the magazine. They stop you in ured out how to digitally fake a traffic jam by creating
your tracks and you have to look at it. We know phony accounts on the traffic and navigational app Waze,
that this idea came from the art department. Arno which he says promptly routed drivers out of the targeted
wasn’t quite sure how to draw it and his art editor, area. A criminal could similarly trick a traffic system to en-
James Geraghty, told him what he thought it should gineer an escape, he adds, or fool a delivery truck’s GPS to
look like. That’s very unusual. It’s the only docu- head straight to a thief’s warehouse.
mented case I know of where somebody actually
guided him. Normally, almost 100% of the time, he 323 SIXTH AVENUE AT SHOWTIMES, TICKETS
guided himself. Arno’s very clever here. He had to WEST THIRD STREET & MORE INFO AT
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Published May 7, 1949 MY GOLDEN DAYS TUE-THU: 11:05am, 1:35pm, 4:15, 7:00, 9:30pm
*NO 11:05am SUN
This is an example of that cafe life which I be- CITY OF GOLD •

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lieve was one of the things that propelled Arno FRI-SAT, MON-THU: 12:20, 2:10, 4:10, 6:15, 8:20, 10:20pm
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FRI-THU: 10:30am
to the fame he had early on. This is later, from “Valerie won’t be around for several days. She backed into a sizzling platter.” BASKIN
1949, but it could have been in the ’30s or the
ENDS SAT FRI-SAT: 11:25pm
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late ’20s. The idea for this drawing came from THEATRE LIVE
RALPH FIENNES
IN MAN & SUPERMAN SUN: 11:00am
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STRANGER
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FICTION PRE-SEASON SPECIAL! DIR. IN PERSON!
every idea but he was really responsible for his most classic period, the ’50s and ’60s, with those great drawings. And then WEEKEND
there’s a very simple background. James Geraghty said Arno hated doing backgrounds. That explains why a lot of these CLASSICS WILLY WONKA & THE CHOCOLATE FACTORY FRI-SUN: 11:00 am
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drawings are very simple. You’ll just see these beautiful stripes. Arno actually went and photographed while he was in night- MIDNIGHTS THE HOLY11:45MOUNTAIN FIGHT
pm 12:00
CLUB CARRIE
12:05
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FRI-SAT
clubs. I would love to have seen his reference work for this. I think he just was thrilled to be drawing those three women.
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THE WALL STREET JOURNAL. NY Friday, April 1, 2016 | D7
The Crucible
Walter Kerr Theatre, 219 W. 48th St. ($42-$139)
877-250-2929, closes July 17
It’s amazing how much damage prize goes to Tom Gibbons, the
Ivo van Hove, the most pretentious sound designer, who fills the Walter
stage director of our time, can do to Kerr Theatre with low-pitched
a good play when he puts his mind scary-movie drones and rumbles
to it. He took a baseball bat to Ar- that are not only wrist-slittingly
thur Miller’s “A View From the boring but not infrequently drown
Bridge” last fall, and now he’s at- out the actors.
tacked “The Crucible” with a steam- The time, of course, is now, which
roller, turning Miller’s 1953 history completely misses the point of “The
play about the Salem witch trials Crucible,” a shadeless political para-
into a slow-moving study in extreme ble in which Miller turned the Salem
tedium. witch trials into an all-purpose blunt
Directorial miscalculations instrument with which to clobber
abound, starting with the setting, a Joe McCarthy, the House Un-Ameri-
two-story-high classroom/prison de- can Activities Committee and Eisen-
signed by Jan Versweyveld in hower-era sexual repression. To do
whose vast gray expanses the ac- such a play in modern dress is to
Joey Parsons tors roam around ineffectually. The take its already over-obvious sym-
and Joe Paulik institutional lighting, also by Mr. bolism and make it clownishly bla-
Versweyveld, flattens out the act- tant. It is to Miller’s credit that “The
ing, some of which was dull enough Crucible” works anyway, but Mr. Van
Dude, I’m in Mourning

to begin with. Not all of it—Bill Hove’s staging of the first act is so
Camp, Sophie Okonedo and Brenda unvaried in pace that he manages to
Wehle manage to make strong im- make it boring. As usual, he’s come
pressions in spite of everything— up with a sensational post-intermis-
For My Life
but Ciarán Hinds and Saoirse Ronan sion coup de théâtre (yes, it comes
give Johnny-One-Note performances when the wicked little girls pretend
that are as paralyzingly minimal as to be possessed by demons) that
Philip Glass’s incidental music. For serves, like all his Eurotrashy stunt-
once, though, Mr. Glass is not the work, to divert attention from the
REVIEW who dresses in black because “I’m
in mourning for my life,” into
Davis McCallum has given “Stu-
pid Fu**ing Bird” a lively staging
sonic offender-in-chief: That booby play itself.
TERRY TEACHOUT Mash, a ukulele-strumming singer- that underlines the comedy with-
songwriter (“You’re hot, you rot, out undercutting the emotion, and
and then you’re done / So where’s everyone in the seven-person cast
Stupid Fu**ing Bird the part of this that’s fun?”) who is adept at balancing laughter and
Pearl Theatre Company, 555 W. wears black, lipstick included, be- anguish. Best of all are Joey Par-
42nd St., New York ($65-$85), cause “it’s slimming.” sons, who is vivid and true as
212-563-9261 “Stupid Fu**ing Bird” has been Mash, and Bianca Amato, who is
making the regional rounds ever daringly bold as Emma (Chekhov’s
since it was first seen three years Irina), a great stage actress and
New York ago in Washington, D.C. Now the sometime movie star who never
It’s become fashionable of late Pearl Theatre Company, which bills succeeded in mastering the real-
to perform updated versions of the itself as “New York’s only classical life role of mother to Conrad
melancholy comedies of Anton resident company,” has given the (Chekhov’s Konstantin, played by
Chekhov, which took place in a play its local premiere, and I was— Christopher Sears). Ms. Amato is
czarist Russia that was teetering rather to my surprise—impressed. so fine, in fact, that I occasionally
on the razor’s edge of modernity. To be sure, the title is off-put- found myself wishing that I were
Bedlam’s 2014 staging of “The tingly dumb, and Mr. Posner sticks seeing her in “The Seagull” instead
Seagull,” for instance, was done in so closely to Chekhov’s familiar of “Stupid Fu**ing Bird.” Not of-
casually contemporary dress and plot that it felt at first as though ten, though: Mr. Posner’s play is
FROM TOP: RUSS ROWLAND; JAN VERSWEYVELD

made use of Anya Reiss’s purpose- he were skating on the surface of derivative by definition, but it’s
fully colloquial English-language a beloved masterpiece instead of more than just a commentary on
adaptation. “Stupid Fu**ing Bird,” breaking through the ice and going Chekhov, and Mr. McCallum’s pro-
Aaron Posner’s “sort of” adapta- his own way. But it wasn’t long be- duction lifts it far above the com-
tion (Mr. Posner’s phrase) of the fore I found my way onto his mon run.
same play, goes even further: It’s a wavelength, and though the Piran-
top-to-bottom postmodern rewrite, dellian play-within-a-play trickery Mr. Teachout, the Journal’s drama
complete with nudity, lots and lots isn’t quite as clever (or up to date) critic, is the author of “Satchmo at
of four-letter words and a setting as he seems to think, most of “Stu- the Waldorf,” which opens at Palm
best described as downtownish. pid Fu**ing Bird” is at once Beach Dramaworks on May 15.
Among other things, Mr. Posner bluntly funny and, like “The Write to him at Saoirse Ronan (center)
has turned the unhappy Masha, Seagull,” unnervingly bleak. tteachout@wsj.com.
Pilgrimage, Sans Destination

REVIEW Morgan Freeman
JOHN ANDERSON
MILLER MOBLEY/NAT GEO CHANNEL
The Story of God With

Morgan Freeman
Sundays at 9 p.m., Nat Geo
Taking second billing to the Almighty, the actor

Morgan Freeman proves a genial, inquisitive host
for what is something of a divinely inspired bait-
and-switch operation: “The Story of God,” Nat
Geo’s globe-trotting six-part series, might better riences—were ever Jewish, Muslim or Hindu. But
have been called “The Story of Man”—a pan-cul- don’t expect that level of inquiry from “The Story
tural account of how humans have defined their of God.”
place in the universe by imagining gods, rationaliz- No, it’s a pretty soft probe of God’s place in
ing their most primal fears and responding with man’s mind, with a rather insistent flurry of visu-
belief systems and architecture. If you’re looking als, including time-lapse skies, Buddhas, basilicas
for a character study of the Creator Himself, and bathers in the Ganges. When Mr. Freeman
you’re out of luck. Or karma. Or grace. Or the spir- expounds on how certain civilizations came to be-
itual advantage of Mayan blood sacrifice. lieve that only human sacrifice enabled the world
That said, “The Story of God” offers up some to continue to turn and the sun to rise, more than
fascinating and sure-to-be provocative insights one viewer will be asking what seems like the ob-
into the interrelationships of various world reli- vious question: How does a civilization arrive at
gions, the uncanny commonalities of creation such a desperate conclusion?
myths, and the way modern theology has recon- Along with George Burns and Alanis Morissette,
ciled itself to the big-bang theory. Mr. Freeman is among the few actors who’ve actu-
The premiere episode is “Beyond Death,” about ally played God (in “Bruce Almighty” and “Evan Al-
the afterlife; the finale is “Miracles.” In between, mighty”), so there’s a kind of joke built into the se-
the series has Mr. Freeman jetting from his birth- ries, which makes effective use of his sonorous
place in Mississippi to Cairo, from New York to voice and easy-but-earnest style. Unfortunately, Mr.
Rome, from the sandblasted Pyramid of Djoser in Freeman is also saddled with dialogue that may
Saqqara, Egypt, to ruined Aztec temples, and back cause some to lose their faith. During a chapter ti-
to the Church of the Holy Sepulchre in Jerusa- tled “Apocalypse,” he notes, “Something about the
lem—which tradition says is the site not just of drama of annihilation seems to grip us.” Well, yeah,
Jesus’ tomb, but of Adam’s. you would hope so. But probably the most inadver-
“You can feel the energy here,” Mr. Freeman tently apt comment comes from one of Tibetan
says, attributing that energy to all the “devotion” Buddhism’s leading lights, His Holiness the 17th
expended in the spot. It’s one of his few depar- Gyalwang Karmapa. How does one attain enlight-
tures from a kind of ecumenical evenhandedness, enment? he is asked. “Wow,” says the holy man, at
though a viewer might wonder if those people Mr. a loss for a more tidy explanation.
Freeman talks about earlier—the ones who claim —Mr. Anderson is a critic in New York.
to have seen Jesus during their near-death expe- Nancy deWolf Smith is on vacation.
Mapplethorpe: Look at the Pictures tional mastery, their originality, their beauty.
Monday, 9 p.m., HBO The directors succumb to what can be an art-
film trap, the urge to emulate the style of the
Flowers were a recurring subject in Robert subject. It works, though, from the way charac-
Mapplethorpe’s photography. But so were ters are introduced through the horizontal view-
hard-core gay sex and the male member. When finder of a medium-format Hasselblad (Mr. Map-
the artist’s show “The Perfect Moment” went plethorpe’s camera) to the fashion-shoot
on tour in 1989, it caused a furor that extended aesthetic of the interviews themselves. And
to the floor of the U.S. Senate. “Look at the pic- there’s also the story: of Mr. Mapplethorpe’s child-
tures,” North Carolina’s Jesse Helms urged his hood in Queens; of the link between his early Ca-
colleagues, as if that would settle the issue. tholicism and the gothic nature of his most fa-
It doesn’t—not the way Mr. Helms intended. mous photos; and of his early death from AIDS.
As directors Fenton Bailey and Randy Barbato “Mapplethorpe: Look at the Pictures” coin-
so eloquently demonstrate in their biography/ cides with the double retrospective now in Los
social critique of Mr. Mapplethorpe, his art tran- Angeles at the Getty and LACMA, and among
scends the controversy. One of the more impor- the many amusing/shocking things in the film
tant aspects of this documentary—which are the museums’ young curators and their
includes interviews with Mapplethorpe family bashful attitude toward Mr. Mapplethorpe’s
members and various survivors of ’70s and photos. The pictures still make people uncom-
’80s downtown Manhattan, including Patti fortable. Watching it together could make
Smith—is the way the filmmakers make sure friends squirm. But it’s not a very high price to
we really do see the pictures: their composi- pay for an evening of art and truth.
SPORTS
Better stats, concerns

In 162 Games, 151 Lineups that only one player appeared in ev-
ery regular-season game. Managers
about player fatigue are increasingly resting players not
prod MLB teams to mix in response to fatigue but as a pre-
ventive measure.
things up more often “That’s changed, too,” Yankees
manager Joe Girardi said. “With this
club, you have to really proactive
BY BRIAN COSTA
about it. Guys used to play 155, 160
AND JARED DIAMOND
games. I never really thought about
it a whole lot. Guys expected to be
AS MANAGER of the Houston Astros out there.”
last season, A.J. Hinch oversaw one The use of platoons, popularized
of the most dramatic turnarounds in by the Oakland Athletics in recent
baseball history. He guided Houston years, has added to the instability.
to the playoffs just two years after it At certain positions, teams start one
lost 111 games. player against right-handed pitchers
Less well known was another bit and another against lefties, based on
of history Hinch approached along their individual tendencies. But even
the way: He used 151 different start- teams who trot out the same posi-
ing lineup combinations during the tion players in consecutive games
regular season, 11 short of becoming are more prone to juggle the batting
the first manager to use a different order.
lineup for every game. With the proliferation of ad-
The reason had nothing to do vanced statistics, general theories
with injuries, since the Astros were about lineup construction have given
among the healthiest teams in the way to a daily calculus that takes
game. It had everything to do with a into account the opposing pitcher,
change in managerial strategy that is ballpark, player tendencies and re-
sweeping over Major League Base- cent performance.
ball: The idea of having a set, regu- Last season, the New York Mets
lar lineup is rapidly going the way of front office began providing man-
flannel jerseys and stirrups. ager Terry Collins with a chart be-
“I don’t mind switching it up ev- fore every series that rated each of
ery day,” Hinch said. the team’s hitters based on how they
For the past six weeks, as spring Houston Astros manager A.J. Hinch used 151 different starting lineup combinations during the regular season last year. projected to perform against every
training unfolded across Florida and opposing pitcher.
Arizona, fans have pondered what and 162 games, a consistent lineup the sport. at the opposition, look at our guys, Those kinds of projections are
their teams’ lineups will look like has always been somewhat elusive. The Astros led the majors in that see who matches up better.” becoming more important than tra-
when the regular season begins Sun- What looks like an ideal batting or- category, never using the same Managers aren't merely channel- ditional beliefs—that a contact hitter
day. But for managers, the question der in April gets scrambled by inju- lineup more than twice. That was ing their inner Billy Martin, the for- should bat second, for instance, or
of which players to bat in which or- ries, roster changes, slumps and partly because of the promotion of mer New York Yankees manager who that the best power hitter should bat
der on opening day has never been players who simply need a day off. rookies such as shortstop Carlos famously once picked his lineup by fourth. And managers are becoming
less consequential, as a predictor of But increasingly, teams aren’t even Correa, who initially batted sixth be- pulling names out of a hat. They are less and less swayed by players’
things to come. The time for tinker- necessarily aiming for lineup stabil- fore his torrid start earned him the responding to one of MLB’s funda- preference for consistent roles.
ing usually begins with the next ity. No. 3 spot in the order. But it largely mental problems: The season is too “I don’t have any fixed criteria or
day’s sunrise. The average MLB team used 128 reflected an industrywide shift to- long for players to start every game absolutes other than you want your
“I want a lineup for one game,” different starting lineup combina- ward designing teams as a collection without injuries or fatigue sapping best hitters to get the most at-bats,”
St. Louis Cardinals manager Mike tions in 2015, excluding the pitcher’s of interchangeable parts. their production. Hinch said. “My job with lineup con-
Matheny said. “And after that one, I spot in National League parks, ac- “I don’t think we necessarily Last year, the only player to ap- struction has always been to find the
want another lineup for the next cording to Stats LLC. It was the think of it as, ‘These are the starters pear in 162 regular-season games most runs. And continuing to try to
one. That’s how we’re going to do highest such figure on records that and these are the backups,’” Astros was Baltimore Orioles third baseman tweak that—the goal never changes.”
it.” date to 1974 and likely the highest general manager Jeff Luhnow said. Manny Machado. It was just the Even if the lineup card always
In a season that spans six months ever, given the prevailing trends in “It really has become more of a look third time in major-league history does.
U.S. Women Can Strike Hard

In Their Fight for Equal Pay
As the stars of the U.S. Women’s support for the women’s game has fourth consecutive gold medal in Rio
National Team went on the offensive been deep and enduring. “We are com- and then go on a victory tour that will
Thursday, railing against the U.S. Soc- mitted to and engaged in negotiating a bring in a projected $8 million. A strike
cer Federation for paying them a frac- new collective bargaining agreement by the women would also be a huge
tion of what the U.S. that addresses compensation,” the fed- black eye for U.S. Soccer as it prepares
men get, no one eration statement said. That came af- to bid for the 2026 World Cup.
wanted to talk ter the federation stated it was “disap- Much of world soccer governing
about the big ele- pointed” in the players’ actions. body FIFA’s power structure is already
phant in the room. Paternalistic tone noted. That says a sore at the U.S. for the Loretta Lynch-
If U.S. Soccer lot about how the federation ended up led investigation that led to the effec-
MATTHEW doesn’t equalize pay, in this mess in the first place. tive end of the careers of the three
FUTTERMAN will the women boy- Still, the ugly truth about the most powerful people in the sport, in-
cott the Olympic roughly 50-year fight for athlete rights cluding former FIFA president Sepp
Games? Just how is that little happens until the players Blatter and former FIFA secretary gen-
much are they willing to give up? An refuse to play. Baseball players finally eral Jérôme Valcke. U.S. Soccer Federa-
Olympics? That may be the price of started to be taken seriously when tion President Sunil Gulati doesn’t
dignity. they went on strike in 1972. By show- want to explain an Olympic strike to
These are fair questions to ask ing they were willing to sit out the his pals in Zurich.
given the stark numbers the women season in 2011, NFL players avoided Once the Olympics are over, the
put forth in a complaint to the Equal the $1 billion pay cut owners wanted. women won’t hold a hammer again un-
Employment Opportunity Commission. The people who run sports largely til 2019, when the next World Cup rolls
Women on the U.S. national team can operate on the “make me” principle. around. So are they willing to give up
max out at $99,000, according to the “Want me to treat you better? one of two chances they get every
filing. Men get $5,000 per game, re- Make me.” four years to play in the spotlight? The
gardless of the outcome, but wins can The U.S. women, led by captain Carli old adage in negotiations is don’t show
push the haul to $17,625. The men get Lloyd, and lawyer Jeff Kessler know a gun unless you are willing to fire it.
$68,750 for making the World Cup ros- they will never have more leverage The women aren’t flaunting a weapon
ter. The women get $15,000. than they have now. U.S. Soccer is yet. To get what they want, they may
Alex Morgan, left, and Carli Lloyd celebrate during a game in October. In a statement, U.S. Soccer said its banking on the world champs to win a very well have to.
How Much Is Your College-Basketball Team Worth?

It was a season that the Louis-
ville men’s basketball team likely
wants to forget, as the school self-
Nothing but Net (Revenue)
imposed a postseason ban amid a The 50 most valuable college-basketball programs (figures in millions):
recruiting scandal in which a former SCHOOL VALUATION SCHOOL VALUATION SCHOOL VALUATION
escort said she had sex with bas- 1. Louisville $301.3 18. N.C. State $85.2 35. Marquette $59.6
ketball players and recruits in ex- 2. Kansas $258.2 19. Tennessee $84.5 36. Missouri $58.3
change for money. When the team 3. Kentucky $244.3 20. Alabama $83.4 37. St. John’s $55.0
4. Indiana $243.8 21. Michigan $82.1 38. Oklahoma State $54.0
5. Ohio State $240.4 22. UCLA $81.7 39. Oklahoma $51.2
6. Arizona $235.4 23. Northwestern $81.5 40. VCU $50.1
7. North Carolina $221.6 24. Dayton $80.6 41. Florida $49.6
announced the ban, Louisville presi- 8. Wisconsin $206.9 25. Virginia $79.2 42. Gonzaga $48.6
dent James Ramsey declined to 9. Syracuse $203.9 26. Xavier $78.1 43. Auburn $46.7
comment until the investigation 10. Duke $203.9 27. Pittsburgh $77.2 44. Washington $46.5
was complete, but said it was “rea-
11. Connecticut $137.9 28. Texas $77.1 45. Virginia Tech $46.4
sonable to conclude that violations
had occurred in the men’s basket- 12. Michigan State $126.6 29. Kansas State $76.7 46. UNLV $46.0
ball program in the past.” 13. Maryland $123.9 30. Penn State $68.7 47. South Carolina $45.6
Despite the controversy, Louis- 14. Purdue $109.6 31. South Florida $66.8 48. Miami $44.2
ville remains college basketball’s 15. Illinois $109.1 32. Iowa $62.9 49. Florida State $43.8
(T-B) ASSOCIATED PRESS; GETTY IMAGES; ZUMA PRESS
most valuable team. The bad news 16. Minnesota $99.7 33. Iowa State $62.7 50. Arizona State $43.1
is their $301.3 million valuation is 17. Arkansas $97.4 34. California $59.7
down $66.1 million from last year’s
Source: Ryan Brewer, IU-Purdue Columbus The Wall Street Journal.
ranking, according to an annual
study by Ryan Brewer, an assistant North Carolina men’s basketball coach Roy Williams
professor of finance at Indiana Uni-
versity-Purdue University Columbus. ket, if it could be bought and sold like Kansas moved into second place Brewer, who studied 175 of Division I’s enth-most valuable team, followed
Brewer analyzed each program’s a professional franchise. this year at $258.2 million despite an 351 teams, accounting for those in ma- closely by Syracuse ($203.9 million,
revenues and expenses and made Louisville is the only team worth 11.4% decline of their own. Virginia, jor conferences and others that have up 0.5%) in ninth place. Oklahoma
cash-flow adjustments, risk assess- more than $300 million after last worth $79.2 million, was among the made the tournament in recent years. ($51.2 million, up 8.3%) and Vil-
ments and growth projections to year’s No. 2 team, Arizona, fell more biggest gainers, shooting up 84% year- As for the Final Four teams, North lanova ($40.4 million, down 12.9%)
calculate what a college team than 25% from $315 million to $235.4 over-year. Overall, values are up a small Carolina ($221.6 million, up 39.8%) ranked 39th and 54th, respectively.
would be worth on the open mar- million. 1.9% from a year ago, according to leads the pack as the country’s sev- —Andrew Beaton
MANSION
A waterfront Tahoe ‘Parts are not to be examined till

estate with horse barn
hits the market the whole has been surveyed.’
for $59 million M2 —Samuel Johnson
HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES | FIXTURES | BROKERS
© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, April 1, 2016 | M1
NEED A HOUSE? BUY A BUILDING

Intrepid buyers looking to stay in the city—but determined to get more space—
are turning multiunit apartment buildings into single-family homes.
The hurdles: tenants, local laws, layouts and massive renovation bills.
PETER AARON/OTTO FOR ROBERT A.M. STERN ARCHITECTS (2)
YEARS LATER Nick Stern, head of a residential construction management and general contracting firm and son of architect Robert A.M. Stern, bought a four-unit apartment building in New York’s West
Village with three tenants who had two-year leases in place. He eventually turned it into this roughly 6,000-square-foot, six-story townhome for his family. The conversion took years to complete.
started to show her something different: entire are converting multiunit buildings into gener-
BY CANDACE JACKSON
apartment buildings. ously sized single-family homes. With inventory
In September, Ms. Painvin bought a three-unit tight in many cities—and sales prices that now
PREGNANT WITH her third child and living in a townhouse in Brooklyn with plans to convert it surpass those seen in the previous boom cycle—
two-bedroom apartment in Brooklyn, public-re- into a 3,000-square-foot home. “We were kind of some homeowners say buying and converting an
lations executive Morgan Painvin started search- floored at the amount of space you could get,” apartment building, condo or multifamily town-
ing for a bigger place last year. With few three- she says. home can be the best way to get the kind of
bedroom options available, her real-estate agent In search of more space, more homeowners Please turn to page M8
ALL IN THE FAMILY INSIDE
When real-estate agencies employ children, in-laws and extended family members,
generational differences come into play; one brother mediates his siblings’ disputes.
BY ALINA DIZIK
WHEN DANIEL DE LA VEGA,

president of One Sotheby’s
International Realty in Mi-
ami, confers with his com- GREEN SPACE
pany’s CEO, he’s always care- Inside a $228,000
ful to call her Mayi—but bonsai house M9
never “mom.”
At work, the 33-year-old
Mr. de la Vega and his
mother, Mayi de la Vega,
have equal footing in over-
seeing 55 employees and 550
independent agents. Ms. de la
Vega focuses on growth and
JOE SCHMELZER FOR THE WALL STREET JOURNAL; ASSOCIATED PRESS (LAVER)
networking, and her son

manages business operations.
“We’re partners,” says Mr. de
la Vega, who founded the
firm with his mother in 2008. ON THE RISE
“During the day we’re pretty Garage doors take on
serious about what we do.” decorative uses M5
Residential real-estate has
long been a family business.
In some cases, a single agency
may include spouses, children,
in-laws and extended family
members. The structure al-
lows younger brokers to pig-
gyback on their parents’ repu-
tation and begin their careers
with a built-in clientele.
Still, the dynamic has
changed slightly in recent
FAMILY TOGETHERNESS Real-estate agent Jade Mills, foreground, with her husband, Adam Mills, seated, daughter, Tiffany Barcena, years, with generational dif- HOLDING COURT
and son, Zachary Quittman, who work together at Coldwell Banker in Beverly Hills. Jade typically handles high-net-worth and celebrity ferences coming into play. In Rod Laver’s childhood
clients, while Zachary works with the children of his mother’s clients and those looking for less-expensive apartments and condos. Please turn to page M6 in Australia M14
M2 | Friday, April 1, 2016 THE WALL STREET JOURNAL.
MANSION
PRIVATE PROPERTIES | CANDACE TAYLOR
Waterfront Tahoe Estate Hits Market for $59 Million
SIERRA SOTHEBY’S INTERNATIONAL REALTY (2)

George and Clare Schmitt built the roughly 18,000-square-
raise thoroughbred racehorses, foot main house from Montana
so their waterfront Tahoe es- fieldstone, completing it in 2004.
tate includes not only an eight- With lake and mountain
bedroom house and a two-bed- views, the house has a game
room guest house, but also a room with a bar, and there’s a
15-stall barn. Now the entire gym with a steam room and
estate is going on the market sauna adjacent to the master
for $59 million. suite.
Encompassing about 31 acres A wine room with a tasting
in Zephyr Cove, Nev., the gated area fits about 3,500 bottles.
estate includes a roughly 380- There’s also a home theater, ad- caretaker’s house and a roughly Stream Wireless. The couple California, and “having two big is unique because of its wide,
foot sandy beach on Lake Tahoe joining his-and-hers offices and a 13-acre meadow for horses. has used this property as their places is just too difficult,” Mr. sandy beach, and because of
and a private pier with a boat lift, craft room, Ms. Cerretti said. The Schmitts bought the primary residence, although Schmitt, 72, said. “We have to the size of the parcel. An In-
according to listing agent Lexi The barn has an office, a property in 2001, after Mr. they have another home in the do something to make life sim- cline Village home on about 3
Cerretti of Sierra Sotheby’s Inter- wash rack and a grooming area, Schmitt’s wireless company Bay Area. They are selling be- pler.” acres sold in January for
national Realty. The Schmitts and the property also contains a Omnipoint was sold to Voice- cause their grandchildren are in Ms. Cerretti said the estate $25.25 million, she said.
HEDGE FUND FOUNDER SELLS IN CONNECTICUT FOR $13.6 MILLION

BarbadosAuctions.com After several years on the
market, an estate in Redding,
heated pools.
Ms. Tullo declined to identify
The Gavel Drops April 19th Conn., has sold for $13.6 mil-
lion, setting a record for this
the seller but said he expanded
the property by combining ad-
rural town about an hour out- jacent parcels, and wanted to
CHI CHI UDINA/GRAYSON DE VERE DESIGN

side New York City. find a buyer who would keep
Known as Deer Run, the the land as open space rather
property first went on the mar- than develop it. According to
ket in 2012 for $27.5 million, public records, the sellers were
and after several price cuts was Jerrold and Sally Fine. Mr. Fine
most recently listed for $19.5 was a founding managing part-
million, according to Jane Tullo ner of the hedge fund Stein-
of Neumann Real Estate, who hardt, Fine & Berkowitz in the
listed the property with col- 1960s before leaving to start
league Karla Murtaugh and Da- Westport, Conn.-based hedge
vid Ogilvy of David Ogilvy & fund Charter Oak Partners.
Associates. vately owned parcels in Fairfield sures about 16,000 square feet. The property was marketed
With roughly 300 acres, Deer County, Ms. Tullo said. Its home It has an indoor half-basketball internationally by Christie’s In-
Run is one of the largest pri- has seven bedrooms and mea- court, and indoor and outdoor ternational Real Estate.
BASEBALL’S CHIPPER JONES

LISTS SPRAWLING TEXAS RANCH
LUXURY VILLA “When people ask me strip. The property also has a
ABSOLUTE AUCTION where I live, I say Northern gym, several guest cottages
No Minimum / No Reserve Mexico,” quips retired Atlanta and about 40 lakes and
Brave Larry “Chipper” Jones, ponds.
whose Texas ranch is about Mr. Jones, 43, said his par-
20 miles from the Mexico ents have lived at the ranch for
border. Now that the former over a decade, while he used it
third baseman has been hired primarily for hunting trips until
JASON AGRON
as a special assistant for the retiring from baseball.

Braves, he is putting the About a year ago, he moved
roughly 9,100-acre ranch on there full-time. But now that
the market for $20.77 million. he has rejoined the Braves,
presented by Known as Double Dime
Ranch, the property has two
and with his parents “getting
up there in age,” he said his
‘GLEE’ ACTRESS DIANNA AGRON
main houses—a 5,260- family is returning to the At- LISTS LOS ANGELES HOME
(800) 552-8120 square-foot renovated home lanta area.
for Mr. Jones, and a roughly The listing agent is Robert Former “Glee” actress Di- The house has a steeply
6,400-square-foot home for Dullnig of Kuper Sotheby’s In- anna Agron is listing her 1920s pitched hip roof and a turret,
FOUR LUXURY AUCTIONS
SM
his parents—as well as a ternational Realty, who is list- home in Los Angeles for which contains the dining
nine-bedroom hunting lodge, ing the ranch with Whitetail $1.595 million, according to room. Ms. Agron traveled in
a riding arena and an air Properties. listing agent Patricia Ruben of France while shooting the 2013
Sotheby’s International Realty. film “The Family” and fell in
The French Normandy-style love with the style, according
estate in the Hollywood Hills to Ms. Ruben. The actress up-
includes a three-bedroom dated the bathrooms and
house measuring about 2,200 kitchen, and revamped the
square feet, Ms. Ruben said. pool area and backyard.
KUPER SOTHEBY’S INTERNATIONAL REALTY
There’s a guest house and an Ms. Agron, 29, didn’t re-

outdoor swimming pool sur- spond to requests for com-
rounded by cypress trees. ment. Known for her role as
APRIL 30 | CABO SAN LUCAS, MEXICO Ms. Agron purchased the Quinn Fabray on the TV show
Recently $10 Million. Now Selling At or Above $5 Million. gated estate in 2012 for $1.05 “Glee,” she will be playing a
million, according to public re- nun in the coming movie “No-
cords. She renovated the vitiate.” She is selling because
APRIL 16 house but retained details like she’s spending most of her
PA N A M A N I A N H I GH L A N D S
hardwood floors and stained time in New York and London,
glass, Ms. Ruben said. according to Ms. Ruben.
Previously $2.3 Million.
Now Selling Absolute!
LA JOLLA HOME
APRIL 23
C H AT TA NO O G A , T N
SEEKS NEARLY
$27 MILLION
Recently $3 Million. Now
Selling Above $1.25 Million.
In La Jolla, Calif., a beach-
RANCHO PHOTOS (2)
front home asking $26.588

million has circles throughout,
MAY 6 from a blue dome to a rounded
M I A M I B E AC H , F L kitchen.
The property is the highest
Previously $9.825 Million. priced home currently on the
Now Selling Above $3.9 Million.
market in La Jolla, according from nearly every room, Ms. Inside, the home has spiral her husband used the La Jolla
PAN property offered by Panama Advisory International
to Brenda Wyatt of Coldwell Wyatt said. staircases, and the rounded property as a “beach getaway.”
Group. Listing agent Thomas H. Brymer, II. MEX property
offered by Snell Real Estate | Engel & Völkers, of Cabo San
Banker Residential Brokerage, The seller is the family of kitchen has an oval island. The Mr. Londen died last year at
Lucas, Mexico. Listing agent Cindy Stanford. FL property
offered by EWM International Reatly. Listing agent Nelson who is listing the property the late Jack Londen, a Phoe- house also has about 2,000 age 85, and Ms. Londen said
Gonzalez. TN property offered by Alliance Sotheby’s
International Realty of Knoxville, TN (Lic#259402). with Amber Anderson of Pa- nix businessman who paid square feet of patios, decks, she is selling because she
Listing agent Sandra H. Poe (Lic#259494). Platinum
Luxury Auctions LLC is performing auction-marketing cific Sotheby’s International $12.125 million for the newly balconies and terraces. wants to preserve the memo-
and auction services as part of these transactions, where
Realty. With about 100 feet on built house in 2004, according Ms. Londen, who lives pri- ries she has of her husband in
800.2 6 2 . 5 1 32
applicable and not prohibited. Sotheby’s International
Realty, the Sotheby’s International Realty logo and
affiliate logos are registered (or unregistered) service Marine Street Beach, the to his widow, Lynn Londen. marily in Phoenix, said she and the home.
PlatinumLuxuryAuctions.com marks used with permission. Neither Sotheby’s, Sotheby’s
roughly 8,300-square-foot, The home is topped with a
International Realty Affiliates LLC, nor any of their affiliated
companies provided any product or service in connection
with this event other than as required by applicable law. three-level house has seven blue dome reminiscent of the See more photos of notable homes at WSJ.com/Mansion.
bedrooms and ocean views Greek Islands, Ms. London said. Email: privateproperties@wsj.com
THE WALL STREET JOURNAL. Friday, April 1, 2016 | M3
MANSION
BALANCE SHEET
An Architect’s ‘Brady Bunch’ Challenge

Glen Coben has spent years changing the look and feel of his 1950s ranch house
BY NANCY KEATES
COSTS
AMID THE IMPOSING Colonials
and Tudors in the wealthy town of Permits
Harrison, N.Y., this home was an
outlier: a long, skinny, 1950s ranch $1,000
house that vaguely recalled “The
Brady Bunch.” Inside, the floors Kitchen
were stained brown and the inte-
rior had a dank, cramped feel. $160,000
It was an unlikely choice for ar-
chitect Glen Coben, whose designs Plumbing
include some of New York’s most
upscale restaurants and hotels. But $10,000
ERICA GANNETT FOR THE WALL STREET JOURNAL (4)
in 1997, he and his wife, Caren Low,

a mortgage banker, brushed aside HVAC
the concerns of some friends and
family members and bought the $20,000
house, for $625,000.
“People said, ‘How will you ever Fixtures
sell it?’ ” recalls Mr. Coben.
The house, he adds, did have $8,000
some positives: a low roof line,
floor-to-ceiling glass in the back Appliances
and more than an acre of land.
Mr. Coben and Ms. Low, now $15,000
both 53, lived in the house, about
22 miles northeast of Manhattan, FIFTIES UPDATE The renovated Coben home in Harri- Painting
for three years without changing son, N.Y., in February, above. Clockwise from below,
anything structural, just painting Maya and Glen Coben and Caren Low with pet, PJ; the $15,000
the walls white and getting rid of family room; the kitchen made from a screened-in porch.
the brown stain on the floors. Glass
Then, after their daughter Maya,
now 16, was born, they set out on a $20,000
renovation that they say is still un-
finished. Furniture
To date, they estimate they’ve
spent $284,000. “There’s always $15,000
more to do. Where do you stop?”
asks Mr. Coben. Flooring
First, they cut down about 30
trees in their yard to let in more $20,000
light. Then, in 2000, they spent
about $20,000 redoing all 4½ Architect
bathrooms. Mr. Coben did the
drawings and acted as the general $0
contractor, hiring subcontractors
to do much of the work and getting TOTAL
materials at cost from his contacts To ensure
on previous projects. maximum light, $284,000
Six years later, they tackled the they added
kitchen, which was small and dark. floor-to ceiling and Mr. Coben overseeing the de- taurant Gabriel Kreuther, for exam-
They made the old kitchen a dining glass walls and sign of Niketown retail stores. ple, he evoked the town squares
room and transformed their large, put most of the Missing family and friends, they found in Mr. Kreuther’s hometown
screened-in porch into the new kitchen cabinets returned to New York four years near Strasbourg, using pathways to
kitchen, creating an open space below the later, and Mr. Coben went to work divide the bar and dining room,
with windows facing the yard. For counter line. as a director for the Rockwell and installing reclaimed beams
maximum light, they added floor- Group, an architecture and design similar to those used in old Alsa-
to ceiling glass walls and put al- firm. tian homes.
most all the cabinets below the Mr. Coben started his own firm, While he has worked on a few
counter line. Glen & Company, in 2000. Its proj- residential projects, he says he
The most important goal was to the 4,500-square-foot home; now hide sits near a carpet that the ar- ects include Manhattan restaurants stays away from them because
have an area where people could there are five. chitect designed for the Time Ho- Gabriel Kreuther, Dovetail, Batard, they are more psychologically com-
“hang out,” says Mr. Coben. To Mr. Coben designed much of the tel, featuring skulls in a Carbone, Brother Jimmy’s, Rare plicated. “There’s no opening day,”
that end, they put a long stainless- furniture in the house, often as traditional-style Persian motif. Bar and Grill and Mario Batali’s Del he says.
steel island with a Carrara marble prototypes for his professional After graduating from Cornell’s Posto. He also is the designer be- Still, Mr. Coben has found that
top in the middle of the new projects. An upstairs den has a vel- architecture school in 1985, Mr. Co- hind such varied projects as a the narrative of his own house
kitchen. A breakfast area, delin- vet-covered ottoman—an early ver- ben did a five-year stint at the penthouse on Front Street, Zini helps him convince commercial cli-
eated by a stone floor and a round sion of the ones he created for the nonprofit SITE Projects Inc., a pub- Boutique in Greenwich Village, the ents that he won’t spend a lot of
table, went next to a two-sided lobby of the Edison Ballroom, an lic artworks design group. In 1992, Archer Hotel, EVEN Times Square money imposing his aesthetic on
desk that Mr. Coben designed. event space in New York’s Times he and Ms. Low moved to Portland, South—all in Manhattan—plus the their projects. “I show them a pic-
They also opened up the bed- Square that Mr. Coben renovated Ore., where they worked for Nike: new Time hotel in Nyack, N.Y. ture of my kitchen and say, ‘This is
room spaces. Previously, there in 2008. In a downstairs den, a Le Ms. Low as a director of merchan- Mr. Coben says he tries to tell a how I live.’ I tell them I’ll spend
were six bedrooms squeezed into Corbusier chaise longue with cow- dise planning in the retail division story through design. For the res- their money as if it is my own.”
M4 | Friday, April 1, 2016 NY THE WALL STREET JOURNAL.
MANSION
JUMBO JUNGLE | ANYA MARTIN
FOR BORROWERS, A PROPERTY-TAX TRAP

Lenders include property taxes when calculating a borrower’s ability to repay; so in places with high taxes, some may have trouble qualifying
Some home lenders know that the prop-

buyers erty-tax assessment can jump
OLIVIER KONING FOR THE WALL STREET JOURNAL

should significantly after a purchase.
JESSE NEIDER FOR THE WALL STREET JOURNAL

brace them- Here are a few more prop-
selves for erty-related tax considerations
sticker for high-end home buyers.
shock: not • Other property-related
from the price of the house, taxes. Some states, such as
but from the property-taxes New York and Florida, levy
they’ll pay when the deal additional real-estate-related
closes. taxes on home buyers that
New Jersey, Illinois and must be paid at closing. For
New Hampshire have the example, New York mortgage
highest property tax rates in tax rates vary from 0.75% in
the country, according to a NEW JERSEY A house in Pompton Plains, N.J., the state with HAWAII A house in Paia, Hawaii, a state where property taxes are some rural counties to 2.175%
recent study by credit-moni- the highest property taxes in the country. low but home prices are high. for all mortgages of $500,000
toring website Wal- or more in New York City, but
letHub.com. Property taxes markets, sale prices are rising 0.25% is typically paid by the
on a home valued at
$175,700, the national me-
What’s the Tax Impact? so rapidly that tax assess-
ments may eventually rise as
lender. New York City also has
a one-time 1% “mansion tax”
States with the highest and lowest property-tax rates. Annual payments are based on median
dian, will set a New Jersey values in the state and U.S. overall. well. For example, in the Den- on properties over $1 million.
homeowner back $4,029 a ver metro area, home values Some municipalities also levy
Effective Annual taxes on State median Annual taxes on home
year, according to the Wal- real-estate tax $176,000 home home value at state’s median value are 45.29% above peak prere- one-time taxes on the trans-
letHub analysis, based on cession prices, according to action, Mr. Walsh says.
HIGHEST
Census Bureau data on rates the latest Home Price Recov- • Taxes are just one
and median home values. New Jersey 2.29% $4,029 $319,900 $7,335 ery Index by mortgage-rate homeowner expense. Don’t
When lenders calculate the Illinois 2.25 $3,959 $175,700 $3,959 tracking website HSH.com. let low property taxes tanta-
monthly mortgage payment Since there is typically a lize you or high property
New Hampshire 2.10 $3,698 $237,400 $4,996
to determine a borrower’s lag between a sale and the taxes necessarily scare you
ability to pay, they include Wisconsin 1.97 $3.459 $165,900 $3,266 updated assessment, home away from buying where you
not just principal and inter- Texas 1.93 $3,392 $131,400 $2,537 buyers for the most part want to live, says Ms. Gonza-
est, but also property taxes don’t have to worry about it lez, of WalletHub. Hawaii has
LOWEST
and homeowners’ insurance affecting their ability to one of the lowest property-
prorated across 12 months. District of Columbia 0.57 $1,005 $454,500 $2,601 qualify for a home loan. tax rates in the country, ac-
For jumbo mortgages—those Delaware 0.53 $929 $232,999 $1,231 Lenders typically use the cording to the company’s
above government-backed current assessed value and analysis. But with a median
loan limits of $417,000 in Louisiana 0.48 $841 $140,400 $672 tax amount when a borrower home value of $504,500, it
most areas and $625,500 in Alabama 0.43 $764 $123,800 $538 is buying or refinancing a has some of the highest real-
some high-priced places— Hawaii 0.28 $489 $504,500 $1,405 home, Mr. Ciardelli says. estate prices in the U.S., she
property taxes can be a hefty However, there are a few adds. Conversely, Chicago
Source: WalletHub *$175,700 is the median home value in the U.S.
addition to monthly pay- exceptions. In Florida, for ex- may have the second-highest
ments, says John Walsh, CEO ample, the lender will esti- property-tax rates, but oth-
of Milford, Conn.-based Total mate and base loan approval erwise is pretty affordable
Mortgage Services. come (even if they have have to make a higher down lion home in Stamford, on anticipated tax rates in the compared with other major
“The amount of taxes can substantial assets) may be payment, he adds. Conn., will set back a home- future, says Mark Shulman, U.S. cities, Mr. Ciardelli says.
have a huge impact on your particularly vulnerable, says Northeastern states typi- owner $74,695 a year in chief credit officer for Sun- • When to consider an
buying power and your abil- Victor Ciardelli, CEO of Chi- cally have the highest tax property taxes, while the Trust Mortgage. In Florida, appeal. If an assessment
ity to qualify,” Mr. Walsh cago, Ill.-based Guaranteed rates and Southern states same home in Greenwich, when a primary residence seems high, a homeowner has
says. “People are very wor- Rate. If property taxes put a the lowest, but rates can Conn., costs just $29,655, Mr. qualifies for the homestead little to lose in trying to ap-
ried about interest rates but borrower’s debt-to-income vary widely locally by coun- Walsh says. “That’s an addi- exemption, annual increases peal the amount, Mr. Ciardelli
forget about taxes.” ratio above lender-accept- ties and municipalities tional $3,752 per month to in property taxes are limited says. Lowering the amount
Borrowers who are self- able levels, usually 43% for within a state, says Jill Gon- own the same $4.5 million to a small percentage rather one pays in property taxes
employed or who can’t docu- jumbo mortgages, a bor- zalez, a WalletHub analyst. house in Stamford,” he says. than following home sales may help one qualify for a fu-
ment a regular stream of in- rower may still qualify but For example, a $4.5 mil- In competitive housing trends, he adds. Therefore, ture refinance, he adds.
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interpretation, proposed only and merely intended as illustration. No guarantee is made that the described
Over $1.3 BilliOn in SaleS · ranked #11 in new YOrk CitY in the Wall Street Journal features, services, amenities or facilities will be available or built. Developer reserves the right to
make any modifications, revisions or withdrawals in its sole discretion and without prior notice. All
improvements, design and construction are subject to first obtaining permits and approvals for same by
the relevant authorities. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING
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TO THE DOCUMENTS THAT ARE REQUIRED BY ARIZONA REVISED STATUTES, 32-2181, et seq,. TO BE
Phone + 212.956.4823 FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. This is not an offer of real estate for sale or
HowardMorrelTeam@evusa.com solicitation of an offer to buy, to residents of any state, province or other jurisdiction where the
project is not registered in accordance with applicable law or where such offering or solicitation would
Licensed Real Estate Broker otherwise be prohibited by law. Void where prohibited. No sales will occur until permitted by the
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THE WALL STREET JOURNAL. NY Friday, April 1, 2016 | M5
MANSION
ELEMENTS
GARAGE SALE
The size and opening mechanism of garage doors
make them desirable for home uses, too;
dividing rooms and creating gates to outside spaces
GARAGE DOORS are leaving cars maker Entrematic, based in Win-

in the dust. ston-Salem, N.C. They “allow a
The big, sturdy doors that great deal of natural light to
once protected vehicles—and hid flood inside and they make a
clutter—are moving beyond the room seem bigger.”
garage. Designers and architects Using garage doors to open up
have brought the doors into the homes has been done in beach
home to serve as retractable houses for some time, but ga-
room dividers, separating kitch- rage-door makers such as En-
ens from patios or family rooms trematic and Clopay, of Mason,
from gardens. They also are be- Ohio, are now seeing wider de-
ing used as exterior walls that al- mand. Doors are made of insu-
low a full-room, remote-control lated and low-e (infrared-block-
opening to fresh air. “It’s about ing) glass, as well as frosted
bringing the outdoors inside, ” panes, to keep out sun and cold.
says Vickie Lents of garage-door —Aili McConnon TOO GOOD FOR A CAR
Sarah Schram, brand manager of Wayne Dalton garage doors, has noticed a change in clients’ perspective toward the ga-
rage door. “It has become a decorative feature in the home that’s very functional as well,” says Ms. Schram. The Lewis-
ville, Texas-based brand is seeing homeowners putting the door elsewhere, but also using it to transform the garage it-
self. One Colorado family, she says, used four glass doors to turn an RV garage into a sunroom with a hot tub.
Price: $4,000-$7,000 for each Wayne Dalton door with double-pane insulated glass
CLOCKWISE FROM TOP: WAYNE DALTON; ON TRAC OVERHEAD DOOR CO; BRIAN GASSEL/EPIC DEVELOPMENT; LUCAS HENNING
GLASS ACT
Garage-door maker
Entrematic has seen
demand for glass ga-
rage doors increase
by 75% in the past
three years, says
Vickie Lents, vice
president, marketing,
of Entrematic. Home-
INDUSTRIAL MODERN owners can customize
Epic Development started using glass the size of the door,
garage doors for its commercial cli- frame color and glass
ents when turning industrial buildings type to complement
into loft-like offices. Now the Atlanta- their homes. They
based company offers these doors to can also opt for
its residential clients looking for an frosted or tinted glass
“industrial modern” look, says Jim for privacy if they
LaVallee of Epic Development. He re- “want the light but
FLEXIBLE SPACES cently installed such a door in a home not the visibility,”
Architect Dan Nelson is one of the pioneers in using garage doors in homes. to connect the family room with the says Ms. Lents.
He has been customizing garage doors for clients in the Pacific Northwest deck and garden outside. “The glass Price: $24,000 for
for more than a decade. Having walls that slide open overhead helps create door really opened the house up to Entrematic’s Amarr
“flexible spaces” for entertaining, says Mr. Nelson. “When the doors are the old, mature trees outside.” Vista, with tempered
open, people can flow back and forth between the inside and outside very Price: $7,000 for Clopay’s Avante ga- clear glass and a dark
easily.” If it starts to drizzle, the doors can close in a hurry. rage door with a powder-coat finish bronze anodized
Price: $12,595 for three doors of insulated glass from Overhead Door on an aluminum frame frame
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MANSION
REAL ESTATE RUNS IN THE FAMILY

Continued from page M1
some family firms, older brokers
take a step back from technology
and rely on their kids for social
media and marketing.
And younger agents may have
different expectations regarding
work and family balance. After col-
lege, Jayme Fogel Slate, 34, says
she wasn’t willing to deal with the
24/7 demands of selling luxury real
estate and went into advertising. “I
spent most of my life frustrated
with my mom for being on the
phone,” says Ms. Fogel Slate, whose
mother Eudice Fogel, 66, started
selling homes in Chicago in 1980.
Ten years later Ms. Fogel Slate
changed her mind because she was
craving flexibility. But before giv-
ing her mother the official “yes”
three years ago, Ms. Fogel Slate
and her mother had lunch with an-
other mother-daughter real-estate
team to talk business. They asked
candid questions about what it felt
like to share clients and how to di-
vide the workload.
The closeness, they learned, can
be overwhelming. Ms. Fogel Slate
and her mother talk on the phone
more than 10 times a day and have
access to each other’s business
email accounts. Still, “you have to
find a way to separate from the
mother-daughter dynamic at
times,” said Ms. Fogel Slate. Rather
than a split commission structure,
Ms. Fogel Slate gets a monthly
paycheck from her mother to avoid
unexpected ups and downs.
Another mother-daughter team
MICHAL CZERWONKA FOR THE WALL STREET JOURNAL (3)

actively combines work with plea-
sure. Several times a month, Kim-
berly Gold, 45, and her mother,
Beverly Gold, 69, leave their Pacific
Palisades, Calif., office and take a
hike that doubles as a meeting to
discuss a property’s marketing plan
or to run through their negotiation
strategies on a deal. Even without
the early morning hikes, the
mother-daughter duo often chats
on the phone about work and other
topics at 6 a.m. “We’re not 9-
to-5ers,” the younger Ms. Gold says.
Gerard Liguori, 53, works with
his twin brother, Joseph, at Pre- CALIFORNIA DUO Kimberly Gold, left, and her mother, Beverly Gold, right, in the kitchen of a home they are listing in Pacific Palisades, Calif., for $6.1 million The
mier Estate Properties, a Christie’s six-bedroom, six-bathroom home, shown at top, measures 6,257 square feet. The business partners often go on 6 a.m. hikes to discuss the firm.
International Real Estate affiliate
that they started in 1993 in Boca
Raton, Fla. The brothers belong to
two local country clubs, allowing
each to meet different clients. Ge-
rard, who is married with kids,
works with other families, while
Joseph Liguori, who is single,
JOE SCHMELZER FOR THE WALL STREET JOURNAL (2)
takes on clients with grown chil-

dren. “Some relate to Joe better
than me,” he says. “We have the
luxury of fine-tuning which one of
us works best with which client.”
But the brothers’ relationship
has gotten more complicated as
more siblings have joined the busi-
ness. Another brother, Pascal, and
Pascal’s younger son, Antonio, now
work in their Delray Beach office.
And their sister, Laura, has joined
their Boca Raton offices in an ad-
ministrative role. In addition to L.A. LISTING A Beverly Hills home, above left, that’s listed for almost $23 million and is represented by broker Jade Mills. Two of her four children have joined
selling real estate, Gerard Liguori her in the real-estate business. Above right, the home’s pool and spa area.
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MANSION
helps mediate brother-sister dis-
agreements. “I’m usually the buf-
fer between the two of them,” said
Mr. Liguori of siblings Laura and
Joseph. “They are very high-
charged and very focused.”
Jade Mills, an agent with Cold-
well Banker in Beverly Hills, focuses
on high-end clients buying and sell-
ing multimillion-dollar homes. In
2007, her daughter Tiffany joined
the firm, followed by son Zachary
the next year. While Ms. Mills, a 30-
year real-estate veteran, typically
handles high-net-worth and celeb-
rity clients, Zachary has made in-
roads with the children of his
mother’s clients and those looking
for less-expensive apartments and
condos. It allows the firm “to work
at full spectrum,” said Ms. Mills.
“Family businesses can be the
best of all worlds and the worst of
all worlds,” says Joseph Astrachan,
chair of family business at Kenne-
saw State University in Georgia.
And when the second generation
starts to take over the business,
“the kids could pull together or
fight like crazy.” It helps when
family members fully understand
the business before signing on.
In New York, Meris Blumstein
works with her husband, Kenny, and
two children, Sydney, 31, and Cole,
28, as the Blumstein Team, at the
Corcoran Group. When the kids
turned 18, Ms. Blumstein asked
them to get their real-estate licenses
to help with the family business.
“They grew up going to open houses
on the weekends,” she said. “They
knew what they were getting into.”
The elder Blumsteins, who started
their business in 2000, oversee all
the listings and sales. The business
has grown and now has 11 young in-
BLASIUS ERLINGER FOR THE WALL STREET JOURNAL (4)
dependent contractors. When the

couple closes a deal, the children
and the other sales agents receive a
“generous” commission split.
The secret to a successful family
brokerage, says Mark Olesh, South
Florida regional director for Keller
Williams Realty in Palm Harbor,
Fla., is to treat even close relatives
as nonfamily hires. Rather than
simply “throwing them in a spot”
because of familiarity, the firm of-
fers training courses to allow
agents to objectively assess each
MIAMI LUXURY Mayi de la Vega, top center, with her business partner and son Daniel de la Vega, left, and daughter, Alina, who is also an agent at the family an incoming family member’s
firm, One Sotheby’s International Realty in Miami. Above, a $21 million, 9,000-square-foot home in Miami Beach that is listed by the firm. skills, he says. One person can be a
better manager while another can
excel at sales. Firing a family
member can be even more diffi-
cult. And a professional mistake
can easily seep into your personal
life. If family members, “are fight-
ing in the workplace, it’s not going
to be fun at home either,” he says.
Ms. de la Vega, the Miami agent,
BOB STEFKO FOR THE WALL STREET JOURNAL (3)
has two other children at the firm,

Alina, 30, and Camila, 27. Spending
time away from the office as a fam-
ily helps maintain strong relation-
ship despite the work hierarchy. In
the summer, the entire extended
family spends two weeks in Aspen,
Colo., where business talk is dis-
couraged. And Sundays are “family
day” where they sometimes spend
the day boating or visiting art fairs.
“I don’t want our personal relation-
CHICAGO TEAM A Chicago home that Eudice Fogel and her daughter, Jayme Fogel Slate, are listing for $1.825 million. ships to ever get ruined because of
Ms. Fogel Slate, pictured far right with her mother, left a career in advertising to join her mom’s business three years ago. the work,” she said.
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MANSION
NEED A HOUSE? WHY NOT BUY A BUILDING

Continued from page M1 erty management, and Ms. Martin,
space they want. who works in higher education,
Real-estate agents and apprais- paid $245,000 for the building in
ers say such projects can have a 2009 and about $430,000 on the
big upside when it comes to resale renovation, which was completed
value. Jonathan Miller, a New York in 2014. The couple says that on
appraiser, says the average price- their block alone there have been
per-square-foot in Manhattan for a three or four conversion projects
single-family home in 2015 was in the last couple of years.
$2,137, compared with $1,584 a Developers are also getting in
square foot for a two-family home, on the action. Greystone Develop-
and $1,371 for a three- to five-fam- ment paid $10.45 million for an
ily home. apartment building on a landmark
The headaches of such conver- street in New York’s West Village
sions can be numerous. In cities in 2012, according to public re-
where some housing is rent-regu- cords. It then spent two years
lated, buyers often focus on al- turning 10 apartments into a
ready vacant buildings, while oth- 7,000-square-foot, six-bedroom,
ers buy out tenants or wait for single-family home. Jeff Simpson,
them to either die or move out on head of Greystone Development,
their own. Even if the building is says the property sold the same
vacant, permit-approval processes day it was staged, for $21 million.
can delay construction for years. In some cases, homeowners are
In San Francisco, housing laws returning previously subdivided
make removing housing units from homes to their original states. Jer-
the market so difficult and contro- emy Flug paid under $100,000 for
versial that conversions are rare. a Victorian home in Granville, Ohio
Nick Stern, head of a residential that had been built for a family
construction management and but divided over the years into
general contracting firm and son several small apartments and stu-
of architect Robert A.M. Stern, dent rentals. E.J. Meade, his Boul-
PETER AARON/OTTO FOR ROBERT A.M. STERN ARCHITECTS (5)

purchased a four-unit apartment der-based architect of Arch11, says
building in New York’s West Vil- the property was in such poor con-
lage with three tenants who had dition they couldn’t even salvage
two-year leases in place. He did the hardwood floors. Mr. Flug, the
about 1½ years of the work with founder of a baseball fantasy camp
the tenants there, then moved into for children, says he loved the po-
the building’s owner’s unit with tential and the location of the
his wife, where they eventually home, across the street from his
had three children. He then spent alma mater, Denison University,
1½ years finishing the work while and adjacent to a wooded area.
living there with his family. His architect designed a new
“I put the tenants through hell, layout that included just one large
and then I put my family through bedroom on the upper level, 2½
hell,” he says. The end result, bathrooms and lots of entertaining
though, is a roughly 6,000-square- space on the main level. During
foot, six-story townhome designed WORK AT HOME When he bought the building, Nick Stern says it had two tenants in place—he did 1½ years of work construction they found a hidden
by Randy Correll at Robert A.M. with the tenants living there, and 1½ years of work after his family moved in. The completed six-bedroom home, above. lower-level room, which they
Stern’s architecture firm, with in- turned into a wine cellar. The proj-
put from the elder Mr. Stern. ect, completed last summer, cost
Apartment buildings have often under $1 million.
suffered more wear and tear than Anna Wilcoxson recently de-
single family homes, due to the ef- cided to convert her childhood
KATRINA WITTKAMP FOR THE WALL STREET JOURNAL (2)
fects of renters rotating in and home in the Mission Hills neigh-

out. Plus, you’re “talking about borhood of San Diego. Built as a
buildings that are in some cases single-family residence in 1912, the
nearly 200 years old, built at a home had been converted into
time when the amenities were apartments after World War II.
very different from what people Though her family has owned the
expect today,” says Ben Bischoff, home since the 1950s, and didn’t
an architect with Brooklyn-based share the house with another fam-
Made Architecture who has done ily, her architect, Kim Grant, says
five conversions in Greenwich Vil- ALTERED STATE Jenna and Jeremy the home still had some elements
lage in the last three years. Martin, right, in their 4,000-square- of a multifamily dwelling. An up-
Such projects typically require foot home, above, which was con- stairs kitchen had a hole in the
reimagining the layout entirely. To verted from a three-unit building. ceiling from the stove, and kitchen
renovate Ms. Painvin’s place, a cabinets had been used as storage.
crew is removing three small Such conversions have become homes,” he says. walls and reframing new ones, Ms. Grant says she spent about
kitchens and converting the main common in some neighborhoods in His clients Jeremy and Jenna adding new plumbing, electric, $600,000 on the renovation, which
level into an open concept space Chicago that have attractive, older Martin initially bought a circa-1921 bathrooms and building a new included restoring the exterior to
with exposed ceiling beams. Ms. apartment buildings and good two-story, three-unit building in kitchen. the original look. They also opened
Painvin planned to move in before schools. Don Higgins, a Chicago- Lincoln Square as an investment. Ms. Martin describes the 4,000- up a balcony that had been turned
the arrival of her baby in April, based architect, says he started When they couldn’t find a single- square-foot result as an “industrial into a small room with stucco
but delays securing a permit getting a handful of requests for family home they liked in a good loft” on the inside with a “classical walls Ms. Wilcoxon’s mother called
pushed back their expected com- such conversions about 13 years school district, they decided to Chicago look” on the outside, “the chapel,” added to make the
pletion until the fall. She says the ago. In the past two years, he says, convert their building. One of their though the exterior still betrays upstairs apartment larger.
renovation budget is double what demand has grown exponentially, leases was expiring, and they of- the home’s multifamily past. The project was completed last
she originally anticipated, but de- particularly for properties in Chi- fered the other tenants several “We’ve had people try to find our summer. “It’s just the way the
clines to say what she’s spending. cago’s Lincoln Square and North- months of free rent in exchange house and they say, ‘I’m here but house should have been and I’m
A three-bedroom single-family center neighborhoods. “There are for moving out. it looks like a two-family build- sure whoever built it would be
home in her neighborhood sold whole blocks being torn down, and Their conversion involved rip- ing,’” says Mr. Martin. thrilled with the way it looks
last year for $1.6 million. people are putting up single family ping down nearly all the interior Mr. Martin, who works in prop- now,” says Ms. Wilcoxson.
©2015 California Closet Company, Inc. All rights reserved. Franchises independently owned and operated.
A COMMUNITY EFFORT TOOK JAMAL

FROM INMATE TO GRADUATE.
Jamal could have been another statistic. But at Communities
In Schools, we showed him the way out of jail by helping him
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California Closets creates custom storage Working inside public schools and with community partners,
solutions for every room in your home. we assess the needs of at-risk students and remove barriers
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Visit our showroom or call today to arrange your
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MANSION
ANNOTATED ROOM
A Place to Bond With His Bonsai

A breakdown of a homeowner’s $228,000 bonsai house, a 700-square-foot glass structure
where miniature trees are watered, wired, pinched and pruned on mahogany worktables
FROM TOP: PETER VANDERWARKER; GREG SHUPE

3
BY AMY GAMERMAN
A BONSAI COLLECTOR lit potting room where the lin Flavin, who designed the
spent nearly $228,000 to miniature trees—a 400 glass house in collaboration
create a potting shed wor- year-old juniper and a Lilli- with landscape architect Pe-
thy of his 15 rare, miniature putian maple, among oth- ter White.
trees. The ethereal glass- ers—are watered, wired, The 69-year-old home-
and-steel pavilion seems to pinched, pruned and repot- owner, the co-founder of a
float above a rock garden at ted on mahogany workta- real-estate investment man-
his home on 16 acres near bles. The potting room’s agement company, enjoys
Boston. zen-like simplicity masks a reading and relaxing in the
The 700-square foot bon- sophisticated mechanical glass house with a cigar. He
sai house is divided into and drainage system. “You leaves the actual potting to
two distinct environments. can literally open up a hose an array of specialists, in-
One side has a fireplace, a on that floor, and all the cluding a bonsai master
table and comfortable seat- water will sink into the who occasionally flies in
ing. The other side is a sun- ground,” said architect Co- from Japan.
TWO SIDES Half of the bonsai house, top, is dedicated space for tending the tiny trees. The other
side of the structure has a fireplace and seating, above, for the homeowner and guests.
1. The custom skylight was designed to pro- Price: $1,850 for both cabinets
vide maximum light and winter warmth.
Price: Wasco Pinnacle Series 350 Skylight, 5. The galvanized steel and mahogany work
$50-$100 per square foot depending on glass benches, designed by project architect How-
type and finish ard Raley, are waterproof; there’s a discrete
hose bib on each bottom shelf.
2. 28 tons of crushed salt-and-pepper Price: $9,000 per bench
granite atop a concrete slab provide drainage
and comfortable footing. 6. A contemporary gas fireplace warms the
Price: $20 per ton from local gravel yard sitting room in winter; an automatic gas-
fired heater on the opposite side keeps the
3. A potting counter made of honed jet bonsais at a comfortable 50 degrees.
mist granite encases a cantilevered workta- Price: $3,620 for the Montigo L42DF direct-
ble with a sink. vent fireplace unit; $1,648 for the Modine Hot
Price: $31.87 per square foot from Walker Dawg HDS75 heater for the trees
Zanger
7. The bronze-colored steel-and-glass light
4. The cedar cabinets were designed to fixtures echo the architecture.
store tools, while concealing the electrical Price: $495 for the Bega LED 2453 ceiling
panel and access to mechanical equipment. and wall light
ADVERTISEMENT
JOHN’S ISLAND – VERO BEACH, FLORIDA BOCA/DELRAY BEACH, FLORIDA DULUTH, MINNESOTA
Located in the private seaside community of John’s Island and Incredible opportunity at Seven Bridges - brand new homes in a highly Kiviranta (the rock shore) is a small enclave of 8 luxury townhomes
showcasing breathtaking, fairway and lake views is this exquisite 3BR retreat. amenitized non-golf community in the Boca Raton / Delray Beach area. overlooking Lake Superior on the scenic drive just north of Duluth. Designed
Features include custom millwork, gourmet island kitchen, family room with Generous features include impact glass, marble countertops, gourmet by award-winning architect David Salmela, 1200-2400sf units offer the
wet bar, living room with fireplace, expansive lanai, and a large master suite kitchens and 30,000 sq. ft. club. Low HOA fees, close to world-class utmost in Scandinavian sophistication and shared interest in nearly 30
with office. Beautiful landscaping, a picturesque pool and a cozy outdoor living shopping, great schools. Inquire today! acres of private trails for outdoor activities. Close to quality healthcare and
area with fireplace complete the picture. international airport. Available Spring 2017.
$2,695,000 www.JohnsIslandRealEstate.com From the $700’s to $2 million glhomes.com From the $700s to $1.3 million kivirantaliving.com
Edina Realty Exceptional Properties

John’s Island Real Estate Company GL Homes Michael Nash
phone: 772.231.0900 e: wj@johnsislandrealestate.com phone: 800.875.2179 phone: 612.269.7107 e: mikenash@edinarealty.com
BLUE CREEK LAND COMPANY, NEBRASKA SANTA YNEZ VALLEY, CALIFORNIA LAKEWOOD RANCH, FLORIDA
“RANCH AUCTION” Invest in the world’s largest freshwater Aquifer! Spanish Colonial home on 5 acres, high quality construction. 3 bedrooms Build your dream estate in The Lake Club; a private community of custom
One of the finest showplace ranches in the nation, located in the heart of and 6 baths, office, exercise room, tech room, outdoor loggia with BBQ & luxury homes with scenic lakes, bridges, parks and a Grande Clubhouse. Live
the Ogallala Aquifer. 11,279 acres with 850 head feedlot. Highly profitable, fireplace, 2 walk in wine storage rooms, high ceilings, hand carved doors and minutes from the Sarasota Polo Club, 5 premier golf courses, the Lakewood
exemplary wildlife habitat, highest quality improvements,luxury lodges. more Extra room with a full bath could be used as a library, music or media Ranch Golf & Country Club, and the white sand beaches of the Gulf coast.
Fantastic hunting and trout fishing property. Auction April 22 in Ogallala NE. room or a 4th bedroom. Room for barn, grapes, etc. Choose your homesite and enjoy an extraordinary way of life.
Registered phone bidders accepted.
LashleyLand.com $3,395,000 http://bit.ly/1RLrqqV Lots from $200K to $800K+ TheLakeClubLWR.com
Lashley Land and Recreational Brokers The Lake Club
Scott Saults Santa Ynez Valley Real Estate Company Karen Lima
phone: 308.289.1383 scott@lashleyland.com phone: 805.688.5717 mail@santaynezvalley.com phone: 866.498.5253 karen.lima@lakewoodranch.com
NEWPORT, RHODE ISLAND BROOKINGS, OREGON LOS BANOS, CALIFORNIA

“Ocean Lawn” – OCEANFRONT The iconic Firestone estate situated on OCEANFRONT 1.2 Acre Beautiful Oregon Coast property, 3 bedroom, 2.5 Style describes this community of homes and neighborhood called
6.7 acres with access to Cliff Walk and 515’ of ocean frontage. Circa 1889 bath, 2863 sq. ft. home. Ocean views from every room, gated, private, end- Sandstone. Your choice of floor plan and interior finish will showcase your
mansion designed by Peabody & Stearns. Park-like grounds designed by of-street property, private path to secluded beach. Insulated concrete form signature style. The location is ideal…walking distance to a new Jr. High
Innocenti & Webel. Children’s playhouse, ocean-facing pool, garages and 3 construction, copper roof & gutters, granite countertops, custom Madrone School, proximity to Yosemite, Carmel, Sierra’s and just over an hour to Silicon
gated entries within private compound. Short walk to town. cabinets, vaulted cedar open beam ceilings, Myrtle wood and tile floors Valley. Call for more information or go online to view the floor plans designed
throughout. Redwood carriage house garage doors. for Sandstone with you in mind. 3-5 Bedrooms/2-3 Baths up to 2,785 sq ft.
$18,500,000 http://liladel.re/OceanLawn $1,350,000 From $300,000 www.StonefieldHome.com
Lila Delman Real Estate International For brochure email: Anthony Stonefield Home
phone: 401.284.4820 Melanie.Delman@LilaDelman.com phone: 541.813.1599 oceanfront300@yahoo.com phone: 209.710.9390
PALM BEACH, FLORIDA CHARLOTTESVILLE, VIRGINIA ANNA MARIA SOUND, FLORIDA

300’ Direct Ocean! Family retreat on excellent elevation with 2.3 acres. Crown Jewel of Albemarle - Private and pristine 4500 acre estate, New Waterfront Resort Homes! Harbour Isle unveils the latest addition to
Main house, 3 guest houses & pool house. Large pool w/ grotto & waterfall neighboring (2) World Heritage sites, the University of Virginia, and Thomas our award-winning waterfront resort community overlooking beautiful Anna
plus 3 car garage & generator. Priced at land value! Jefferson’s beloved home, Monticello. Historic manor homes, river frontage, Maria Sound. Tour 3 new model homes, beach club with private clubhouse,
lakes (one 40 acres), ponds, stables, vineyards, fiber optic, sparkling event fitness center, yoga lawn, resort pool & spa, cabana bar and sky bar, sandy
facility and awesome Blue Ridge Mountain views. The ideal self sustaining beach, kayak launch, and more. Don’t miss your chance to own a piece of
property. paradise - on Florida’s last private island!
Price Upon Request $60M luxurycharlottesville.com From the $500’s. mintofla.com
Linda A. Gary Real Estate Roy Wheeler Realty Co
Linda Gary Jim Bonner Minto Communities
phone: 561.346.5880 mobile www.LindaAGary.com phone: 434.951.5102 jim@jimbonner.com phone: 866.713.1319
To Advertise Call: 800-366-3975

Great Neck, NY | $13,750,000 Naples, Fl | $12,000,000 HarwicH port, cape cod, Ma | $9,950,000 truro, cape cod, Ma | $7,950,000 NortH palM BeacH, Fl | $7,495,000
WEB ID: CBJU4 WEB ID: VMRU4 WEB ID: YWUB4 WEB ID: SOGU4 WEB ID: DYMQ4
Premier Site, Kings Point Waterfront. Double estate site w/ guest house, magnifi- Significant Seaside Estate with breathtaking A Modern Masterpiece on Cape Cod Bay. Beautiful 6BR estate in prestigious Seminole
Magnificent Contemporary, Unique. Must see! cent lake views, 6BR/7.3BA/5 Car. 9,824 SF. views that extend to Nantucket Sound. Unparalleled luxury and craftsmanship. Landing. First class details throughout.
Laffey Fine Homes John R. Wood Properties Robert Paul Properties Robert Paul Properties Lost Tree Realty
Diane Leyden — 917.270.0216 Larry Lappin — 239.571.8247 Cindy Houlihan — 508.523.8829 F. Schofield/ P. Grover — 508.237.0006 Denice Sexton — 561.662.8344
BerNardsville Boro, NJ | $6,450,000 catHeYs valleY, ca | $5,900,000 MeNdHaM Boro, NJ | $5,500,000 sHort Hills, NJ | $4,995,000 MeNdHaM Boro, NJ | $4,695,000
WEB ID: ENVU4 WEB ID: LTOZ4 WEB ID: SSJU4 WEB ID: OXNQ4 WEB ID: IVSU4
French Norman-style estate on 32 ac w/pool, Private Estate, multiple residences – ideal Exquisite French-style country manor. Pool, An updated signature home. 1.7 acres, Extraordinary estate on glorious setting with
cottage, pavilion. Approx. 1 hr to NYC. family compound – corporate ranch retreat. cabana, walk-out lower level & staff apt. 7bed/baths, 2-car garage. Showings start 4/4. pool. Stunning architectural details.
Turpin Real Estate, Inc. Lyon Real Estate Turpin Real Estate, Inc. Turpin Real Estate, Inc. Turpin Real Estate, Inc.
Gerry-Jo Cranmer — 908.234.9100 x220 Manuel E. Prado — 510.301.4355 Gerry-Jo Cranmer — 908.234.9100 x220 Aimee Bloom — 973.635.5555 x322 Holly Suminski — 973.543.7400 x639
Far Hills Boro, NJ | $3,995,000 truro, cape cod, Ma | $3,195,000 Bellport, NY | $2,999,500 MarsHall, va | $2,800,000 NortH palM BeacH, Fl | $2,625,000
WEB ID: MKZU4 WEB ID: HRGW4 WEB ID: PQKU4 WEB ID: SBDU4 WEB ID: FIHW4
Stunning 2007 Georgian Colonial on 18± Striking Shingle-Style Contemporary with Masterfully renovated and restored, grand Exceptional architecture, 118 ac, vineyard Harbour Isles. Stunning and elegant 4BR,
acres. Barn, pool, tennis court and cottage. exceptional privacy, exclusive beach. residence less than 90 minutes from NYC. possibilities, mountain views, 1 hr to DC. 70’ dock. His & hers sep. baths, luxurious!
Turpin Real Estate, Inc. Robert Paul Properties Coach Real Estate Associates, Inc. McEnearney Associates, Inc. Illustrated Properties-Luxury Collection
Gerry-Jo Cranmer — 908.234.9100 x220 F. Schofield/ P. Grover — 508.237.0006 Tracy L Boucher — 631.766.3861 Lynn Hoover — 703.517.3570 Robert Lynch — 561.236.6900
BerNardsville, NJ | $2,495,000 spriNG islaNd, sc | $2,449,000 NortH palM BeacH, Fl | $2,399,000 HutcHiNsoN islaNd, Fl | $2,249,000 westerlY, ri | $1,948,000
WEB ID: QIEU4 WEB ID: HYLB4 WEB ID: FRCU4 WEB ID: SGJV4 WEB ID: AJMU4
Exceptional French Country Manor with Deep water compound, walk to amenities, 5BD, 3BR/3BA condo with spectacular ocean/lake Oceanfront. Amazing ocean 162’ frontage, Villa by the Sea Estate 6 bedroom w/2,000sf
beautiful views. Gated entry on 5+ acres. 5+BTH, 4,478sf, 1.03A, dock, guest house. views in prestigious gated golf community. 2 acres, Built ‘08, 6,200sf, great buy! luxury apartment and carriage house.
Turpin Real Estate, Inc. Lowcountry Real Estate Lost Tree Realty Illustrated Properties-Luxury Collection Lila Delman Real Estate International
Ashley Christus — 908.234.9100 x214 Edward Dukes — 843.812.5000 Denice Sexton — 561.662.8344 Robert Lynch — 561.236.6900 Lori Joyal — 401.348.1999
xyf. m
cold spriNG, NY | $1,795,000 Fort MYers, Fl | $1,600,000 Naples, Fl | $1,599,000 NarraGaNsett, ri | $1,595,000 GarrisoN, NY | $1,499,000
WEB ID: KUPZ4 WEB ID: WOVW4 WEB ID: CYGU4 WEB ID: FRLU4 WEB ID: IHPC4
Stunning Hudson River views, this 4 BD home A truly unique & magnificent waterfront pool Panoramic golf and lake view w/ 4,379sf of Enjoy the beachside lifestyle & sounds of Stunning contemporary masterpiece boasts
offers peace and privacy on 9+ acres. home. Custom designed home. Must see! quality construction and luxury design. the surf in this custom ocean view home. breathtaking mountain and river views.
Robert A. McCaffrey Realty VIP Realty Group, Inc. John R. Wood Properties Lila Delman Real Estate International Robert A. McCaffrey Realty
Bob McCaffrey — 845.265.4113 Gordon Corey — 239.243.4589 Bobbie Dusek — 239.564.6137 Dan Harding — 401.789.6666 Bob McCaffrey — 845.265.4113
lakewood raNcH, Fl | $1,450,000 upper saddle river, NJ | $1,350,000 upper saddle river, NJ | $1,325,000 BradeNtoN, Fl | $1,099,000 victor, NY | $894,000
WEB ID: WQVW4 WEB ID: TMQU4 WEB ID: ANGZ4 WEB ID: DTDW4 WEB ID: CORU4
Exquisite in every detail the residence Perfect 5 bdrm, 5 bth colonial. Wine closet. Elegant 4 bdrm, 3.5 bth colonial. Great Extraordinary waterfront home in exclusive Builder’s Home.1.9 wooded acres in golf
offers the best in Country Club living. Hardi-plank exterior. Newer gunite pool. room/fpl. Beautiful private country lane. golfing enclave. community, A steal!
Michael Saunders & Company Terrie O’Connor Realtors Terrie O’Connor Realtors Michael Saunders & Company Nothnagle Realtors
Deborah O’Mara — 941.730.0777 201.825.0500 201.327.7100 Deborah O’Mara — 941.730.0777 Robin St George — 585.606.2436
®
© 2016 Luxury Portfolio International. Offering is subject to errors, omissions, change of price, or withdrawal without notice. Prices may have been converted from original currency at time of printing and may differ from current rates. All information considered reliable; however, it has been
supplied by third parties and should not be relied on as accurate or complete. Equal Housing Opportunity.
MANSION
RELATIVE VALUES
HOMES IN CACTUS LEAGUE TOWNS

Three homes on the market in Arizona in areas that host baseball teams for spring training
FROM LEFT: HIGH RESOLUTION MEDIA (2); JESSICA WELLS (2)
DIANE BURNETT (2)

$5.3 million $4.29 million $3.5 million
Mesa, Ariz. Scottsdale, Ariz. Surprise, Ariz.
Six bedrooms, eight bathrooms, 11,685 square feet Three bedrooms, 4½ bathrooms, 4,653 square feet Five bedrooms, 3½ bathrooms, 4,500 square feet
The 4.4-acre property has an elaborate porte cochère, a water This contemporary home by architect Gordon Rogers is on a Jack The property includes the main home and a 1,400-square-foot,
fountain and a Venetian-tile pool. There also is a citrus grove with Nicklaus-designed golf course. A negative-edge swimming pool two-bedroom guesthouse. Also on the 13.99 acres is a pool with a
about 220 lemon, orange, grapefruit and key lime trees. The main wraps around the main living area, with views of the desert and waterfall, a spa, a volleyball court, a custom horse barn, a foaling
home has a cinema and a full second kitchen. The residence can mountains. Solar panels and an HVAC system help make the resi- stall and a barn office. Horses are negotiable.
be rented for $10,000 a night during spring training. dence energy-efficient. The garage can fit eight cars. Agent: Frank Aazami, Russ Lyon Sotheby’s International Realty
Agent: Shanna Day, Keller Williams Realty East Valley Agent: Tami Henderson, Mountain & Desert Properties of Arizona —Aili McConnon
ADVERTISEMENT
Distinctive Properties & Estates

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

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MANSION
HOUSE CALL | ROD LAVER
Growing Up With Tennis and Potluck Socials

The champion looks back on a 1950s childhood in Australia, where everyone had a backyard court
be better players than me. I won my

My father was a cat- under-14 tournaments, but Charlie
tleman who loved to complained I took too long to win,
that I didn’t have the drive to put
play tennis. I know opponents away faster, increasing
that sounds strange, my risk of losing. I told him I just
enjoyed playing and didn’t want the
but in Australia in the match to end so quickly.
1940s and 1950s, ru- Little by little, though, I became
more focused and competitive.
ral areas didn’t have Charlie soon realized I had enor-
team sports. mous talent, and I liked when he
was tough on me.
Tennis courts were like Ameri- Coach Harry Hopman and the
can swimming pools. Everyone many great Australian champions
built a homemade court and of the ’50s and ’60s contributed to
played on the weekends. It was a my success as an amateur and a
BRAD SWONETZ FOR THE WALL STREET JOURNAL (PORTRAIT); LAVER FAMILY (2, VINTAGE)
social event. pro, including Frank Sedgman, Lew

My father, Roy, had eight broth- Hoad and Ken Rosewall.
ers and four sisters and grew up in By the late 1960s, I was at the
Gippsland, a region in southeast top of my career. In 1969, my wife,
Victoria. When the brothers left Mary, was due to give birth on
home, they all relocated to Queens- Sept. 9—the day of the final match
land about 1,500 miles north and at the U.S. Open in Forest Hills,
bought land in the same area. N.Y. She was at our house in New-
My parents bought a 23,000-acre port Beach, Calif. Our son Rick was
cattle property. To get the cattle to born Sept. 27. Mary said she was
the meat works, they would drive hanging on so I would have a
the herd 60 miles on horseback. It chance to win and return home.
took them about 10 days. My mom, Today, I live in Carlsbad, Calif.,
Melba, was only 5-foot-2, but she in a two-story, 3,500-square-foot
was tough and strong. home. It’s really too big for me
We weren’t wealthy. Land was THE ROCKET Rod Laver, left, at his now, but I enjoy my neighbors and
cheap because no one wanted to home in Carlsbad, Calif., in March; do- I’m about 5 miles from the Pacific,
live out there. When I was little, ing practice drills around 1952 in a so I’m not about to leave.
the nearest town was Marlborough, Brisbane, Australia, tennis camp, top; In 2014, I rallied with Roger
an hour’s drive on unpaved roads. at his family’s cattle ranch in Queens- Federer before his charity match at
Our wooden farmhouse had a land around 1943, above. the Australian Open. We had fun.
wide veranda that wrapped around Arthritis in my left wrist prevents
three sides. We were in the tropics, To build a court, you knocked dad an opportunity to work as a Fitzroy River nearby. We spread it me from playing the way I used to.
so houses needed as much air as over anthills and crushed the peb- local butcher. Two years later we and then rolled it flat. My father I miss it.
possible. On especially hot nights, bles into smooth grit and spread it moved to Rockhampton, a larger even installed four 1,000-watt bulbs —As told to Marc Myers
my older brothers, Trevor and Bob, evenly. Then you drove in posts, put town about an hour south. at the court so we could play after
and I would sleep on the veranda. up a homemade net, added fencing Our house there was a typical dark. Sometimes he rented it out. Rod Laver, 77, won the most sin-
On the weekends, my parents around the perimeter and there you Queenslander—set off the ground That’s where I met Charlie Hollis, gles titles in tennis history and was
went off to friends’ homes to play had it. The surface played like clay. about 7 feet on stilts. The space a friend of my father and a tennis ranked No. 1 from 1964 to 1970. He
tennis on courts they had built. When I was 8, we moved to below kept the house cool and pro- coach. He rented our court. He was is the only player to have com-
Other than church, that’s where Marlborough. I think the hard land tected it from termites and snakes. tall, well-dressed and perfectly pleted the Grand Slam twice, win-
friends caught up on the latest local and the trips back and forth to My father chose the house be- groomed. He urged my dad to let ning all four majors in 1962 and
news. Women would bring cakes town had become a bit much, and cause there was room out back for me go on the road with him to com- 1969. He is author, with Larry
and men socialized and talked about my parents wanted us closer to the a tennis court. My brothers and I pete in preteen tournaments. At Writer, of “Rod Laver: An Autobi-
the weather, cattle and crops. schools. The move also gave my helped him transport silt from the first, he thought my brothers would ography” (Triumph).
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