For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 19819.78 g 13.90 0.1%
What’s
News
Business & Finance
nap will seek to portray
S itself as one of the next
tech titans when the com-
pany goes on the road next
year to market its IPO. A1
 China enhanced its ability
to stabilize its currency, as the
rising dollar threatens to un-
dermine its economy by ac-
celerating capital outflows. B8
 The U.S. job market ended
the year on solid footing as
an important indicator of
layoffs continued to hover
near historic lows. A3
 Investors are recalibrat-
ing their conviction in the
Trump trade, buying bonds
and selling stocks. B10
 U.S. stocks slipped as the
postelection rally contin-
ued to fade. The Dow shed
13.90 points to 19819.78. B9
 An end-of-year rally in
European bonds is con-
founding expectations that
the era of low global interest
rates would end in 2017. B9
 Analysts’ forecasts for
the Japanese yen suggest
more volatility for the cur-
rency next year. B8
 Chinese authorities are
proposing tighter rules on
investments in insurers,
aiming to reduce risks. B2
 Brazil’s Petrobras an-
nounced a flurry of asset
sales but fell short of its $15.1
billion divestment target. B3
 Indian officials will likely
meet early next week to
evaluate incentives sought
by Apple to manufacture its
products in their country. B4
 Sears shares rose 10%
as the cash-strapped com-
pany secured a $200 mil-
lion line of credit. B2
World-Wide
 Obama issued a dramatic
response to Russia’s alleged
use of cyberattacks to inter-
fere with the presidential
election, including imposing
sanctions on Russian agencies
and firms and expelling sus-
pected intelligence operatives
from the U.S. The Kremlin
promised retaliation. A1, A4
 The diplomatic crisis
will test Trump’s vision of
an enduring detente be-
tween the two nations. A1
 One of Syria’s most pow-
erful rebel groups rejected
a cease-fire brokered by
Russia and Turkey, upend-
ing the latest effort to end
the nearly six-year war. A6
 Kerry’s speech on the
Mideast peace process drew
a sharp reaction in the U.S.,
with lawmakers in both
parties voicing concerns. A6
 Iraqi security forces
began a dramatic shift in
tactics in their stalled of-
fensive to retake Mosul
from Islamic State. A7
 An Argentine court re-
opened an inquiry into claims
that ex-President Kirchner
plotted to cover up Iran’s al-
leged role in a 1994 attack. A8
 German authorities re-
leased a man mistakenly
arrested in connection
with the truck attack on a
Berlin Christmas market. A8
 The Gates Foundation is
investing up to $140 million
to support an implantable
drug pump that could help
prevent HIV infection. B2
 Officials fired four Beijing
police officers and disci-
plined seven others over a
man’s death in custody. A8
CONTENTS
Business News. B2-3
Credit Markets...... B9
Crossword............... A11
Equities....................... B9
Heard on Street. B10
Life & Arts....... A10-11
s Copyright 2016 Dow Jones &
Company. All Rights Reserved
* * * * FRIDAY, DECEMBER 30, 2016 ~ VOL. CCLXVIII NO. 153
NASDAQ 5432.09 g 0.1% STOXX 600 360.26 g 0.4% 10-YR. TREAS. À 9/32 , yield 2.477%
Obama Sanctions Russia, Expels 35
MICHAEL KLIMENTYEV/PRESS POOL
Russian President Vladimir Putin with his Defense Minister Sergei Shoigu, right, and Foreign Minister Sergei Lavrov at the Kremlin on Thursday
Showdown Poses Challenge to Trump
BY PETER NICHOLAS
A central promise of Presi-
dent-elect Donald Trump’s for-
eign policy is that he will forge
a working partnership with
Russia, turning
ANALYSIS an adversary
NA-CN008EVAN VUCCI/ASSOCIATED PRESS
into an ally in
combating ter-
rorists overseas and other
global threats that bedeviled
President Barack Obama.
Now, that vision of an en-
during detente will be tested
when Mr. Trump takes office
Jan. 20 amid one of the worst
diplomatic crises between the
President-elect Trump has been two nations since the end of
skeptical of the hacking claims. the Cold War.
Snap’s Pitch to Investors:
We Are the Next Facebook
BY MAUREEN FARRELL early as March, in a class with
AND CORRIE DRIEBUSCH Apple Inc. and Facebook, whose
shares are up sharply in recent
When Snap Inc. goes on the years, while differentiating it
road next year to market its ini- from Twitter, whose stock has
tial public offering, the virtual- languished since its 2013 IPO.
messaging company will seek to Evan Spiegel, the company’s
portray itself as one of the next 26-year-old founder, is expected
tech titans, more likely to track to figure prominently into the
the trajectory of Facebook Inc. company’s arguments for why
than of Twitter Inc. investors should take that bet.
The pitch, according to peo- In conversations with investors
ple familiar with it, is designed during the marketing process,
to convince investors that the known as a roadshow, Snap’s
young company can evolve from IPO bankers and executives are
a messaging platform into a planning to portray Mr. Spiegel
content and media powerhouse as a visionary who knows how
that could one day eclipse its to create products for his cov-
hoped-for $20 billion to $25 bil- eted millennial peer group, ac-
lion IPO valuation. The idea is to cording to the people.
put Snap, which is expected to Snap also is expected to fo-
debut as a public company as cus on its “stickiness,” or time
INSIDE
THE MYSTERY REBUILDING
OF RONDA AFTER A
ROUSEY DISASTER
JASON GAY, A12 MANSION, M1
Vineyard Gets Its Ducks in a Row and Visitors Flock In
i i i injuries in Afghanistan, says
Quacking staff eat snails, parade for tourists and revive a winery
BY ALEXANDRA WEXLER had for decades employed a col-
Markets............... B8,10 ony of flightless Indian Runner
Opinion.............. A13-15
Sports........................ A12 STELLENBOSCH, South Af- ducks to eat them. The flock
Technology............... B4 rica—Wine drinkers’ palates had worked the vineyards by day,
U.S. News............. A2-4 drifted away from the heavy largely hidden from wine-tasting
Weather................... A12
World News....... A6-8
reds that Vergenoegd Wine Es- visitors.
tate produces here, and the 320- When the new owner, a pri-
year-old vineyard needed some- vate investment firm, took over
> thing to revitalize interest. in 2015, it put the roughly 1,000
So it deployed the ducks. ducks at the top of the bill. The
While many of the roughly winery began scheduling duck
300 wine producers around parades for visitors, added the
Cape Town rely on chemicals to birds to the farm’s logo and
keep snails and other pests from highlighted them on its website.
damaging vines, Vergenoegd The result has been a media
OIL $53.77 g $0.29
Much as he wants to renew
ties to Russia, Mr. Trump will
inherit a bilateral relationship
indelibly shaped by Mr.
Obama’s move Thursday to
punish Russia for its alleged
attempts to influence the 2016
presidential election. He might
not have the free hand he once
envisioned.
Congressional leaders from
Mr. Trump’s own party en-
dorsed the sanctions imposed
by Mr. Obama, and two influ-
ential GOP senators, John Mc-
Cain of Arizona and Lindsey
Graham of South Carolina, say
they will push for even
harsher measures. Lawmakers
seem determined to hold hear-
spent on Snapchat—its phone
app that lets users send mes-
sages that erase themselves—
and its share of the highly cov-
eted 18-to-34 demographic,
according to people familiar
with the pitch, which echoes a
message the company has deliv-
ered to potential investors in
meetings that began in Novem-
ber.
But the story isn’t necessarily
an easy sell, bankers and inves-
tors say. In the expected pricing
range, Snap would be valued at
a far higher multiple of market
capitalization to advertising rev-
enue than other social-media
companies, including Facebook
and Twitter.
Based on estimates that Snap
Please see SNAP page A2
KNOW YOUR
NEWS? TAKE
THE QUIZ
BUSINESS & FINANCE, B1
sensation the vineyard said
helped double its sales in under
a year and reinvigorate interest
in its old-fashioned style of
wine, which isn’t for everyone.
Many who are used to a lighter,
more-modern style of wine need
to pair the Vergenoegd wines
with food, said Marlize Jacobs,
the estate’s winemaker.
“I think people are more
likely to buy the wine,” she said,
“if there’s a sustainable story at-
tached.”
Please see DUCKS page A9
WSJ.com
GOLD $1,156.40 À $17.20
ings to investigate Russian
hacking, potentially tipping
U.S. public opinion more deci-
sively against a Russian lead-
ership that Mr. Trump is
courting.
“I’m plenty concerned
about it and upset about it,
and we’re going to get to the
bottom of it,” Senate Majority
Leader Mitch McConnell (R.,
Ky.) told Kentucky public tele-
vision.
Russia has already prom-
ised to retaliate. Kremlin
spokesman Dmitry Peskov said
Thursday that Mr. Obama was
attempting “to strike a blow
against the foreign-policy
Please see TRUMP page A4
China Boosts Control Over Yuan
China’s central bank is adjusting the basket of foreign currencies used
to set the yuan’s official rate—diluting the dollar’s share—in a move
analysts said will give it more room to support the weakening yuan. B8
CFETS RMB Index
Measures yuan vs. basket of currencies
102
100
98
96
94
92
2016
How many yuan one dollar buys*
6.40 yuan
6.60
6.80
7.00
2016
Note: All data are weekly *Scale inverted to show declining yuan
Sources: FactSet (index); Tullett Prebon (currency) THE WALL STREET JOURNAL.
THE VA FUELED
ADDICTION CRISIS,
THEN FAILED AGAIN
Agency overprescribed painkillers to returning
veterans; now treatment options are scarce
BY VALERIE BAUERLEIN
AND ARIAN CAMPO-FLORES
FAYETTEVILLE, N.C.—Rob-
ert Deatherage, a 30-year-old
Army veteran who has battled
addiction to pain pills and
heroin since suffering severe
he reached rock bottom a
year ago when he holed up in
an empty church and tried to
kill himself. Twice.
“I was just so sick of being
as sick as I was,” he says. He
put a gun in his mouth and
pulled the trigger, but it
didn’t fire. He says he then
used two syringes to shoot all
the drugs he had, but didn’t
overdose.
Mr. Deatherage took the
failure as a spiritual sign and
walked to the nearby Veter-
ans Affairs Medical Center.
The facility didn’t have any
space and turned him away,
HHHH $3.00
EURO $1.0492 YEN 116.54
BY CAROL E. LEE
AND PAUL SONNE
President Barack Obama on
Thursday issued a dramatic re-
sponse to Russia’s alleged use
of cyberattacks to interfere with
the 2016 presidential election,
including imposing sanctions on
Russian agencies and compa-
nies and expelling dozens of
suspected intelligence opera-
tives from the U.S., in one of the
biggest diplomatic confronta-
tions between Washington and
Moscow since the end of the
Cold War.
Russia threatened to retali-
ate, while U.S. lawmakers called
for even stiffer measures and a
deeper investigation into Mos-
cow’s hacks, suggesting a fur-
ther escalation of hostilities
looms just weeks before a new
U.S. administration takes office.
“The principle of reciprocity
applies here,” Russian govern-
ment spokesman Dmitry Peskov
said according to the Interfax
news agency. He said Russian
President Vladimir Putin would
formulate a response that
would create “considerable dis-
comfort in the same areas” for
the U.S.
President-elect Donald
Trump, who has expressed a de-
sire to improve relations with
Moscow, issued a statement
that didn’t directly address the
punishments meted out by the
Obama White House. He said he
will review the situation next
week in a meeting with U.S. in-
telligence officials.
Mr. Obama, in a statement
on what he called a partial re-
sponse to Russia’s alleged
hacks, said the cyberattacks
“could only have been directed
by the highest levels of the Rus-
sian government.” He said his
Please see RUSSIA page A4
 Kremlin vows retaliation over
U.S. move..................................... A4
offering only a jacket from
the lost and found and a
phone number for a homeless
veterans coordinator. After he
picked up his disability check
a few days later, he checked
into a hotel where he knew
other addicts, including veter-
ans.
“It gets discouraging,” Mr.
Deatherage says. “It makes it
easier to just say, ‘F--- it, I’ll
just keep doing what I’m do-
ing.’ ”
The U.S. Department of
Veterans Affairs acknowl-
edges its role in creating a
large population of opioid-ad-
dicted veterans by overpre-
scribing painkillers for inju-
ries and post-traumatic stress
disorder. After the agency
tightened prescribing prac-
tices in 2013, many veterans
bought pain pills sold illicitly
on the streets. When those
Please see DRUGS page A9
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

U.S. NEWS
Land-Donation Deals Face IRS Scrutiny
BY RICHARD RUBIN flated appraisals and sell tax Syndicated deals are usually between 2000 and 2015.
breaks reminiscent of abusive How Conservation value before and after the re- secret, but a pending Securi- Several local real-estate
The Internal Revenue Ser- 1980s tax shelters. strictions. The landowner ties and Exchange Commission agents said the valuation of
vice is clamping down on a To combat the tactic, the Easements Work counts the diminution in value case placed rare details, docu- over $20,000an acre sounded
tax-avoidance technique that IRS last week labeled the most as a charitable contribution and ments and communications extraordinarily high. “I don’t
turns charitable land-conser- aggressive deals as “listed takes a deduction. The tax into the public record. The know what it would be unless
vation donations into money- transactions,” requiring syndi- For decades, conservation breaks are more valuable to SEC case is about how the they found gold,” said agent
making opportunities. cators and taxpayers to red- easements have been a popular top-bracket taxpayers, who are transaction was structured, Tom Foster of nearby McMin-
Investor solicitations for flag their tax returns for deals tax-saving strategy for wealthy able to maximize them. not the tax law itself. nville, Tenn.
what are known as syndicated since 2009. That is creating landowners. Enter syndicators, who Documents show a Char- Mr. Levitt, whose firm
conservation easements promise uncertainty this week for They work like this: A land- scout properties, assemble lotte, N.C., accountant, Ed helped structure the transac-
to turn $100,000 into $400,000 transactions structured to owner whose property contains deals, and pitch investors on Lloyd, working with Shawn tion, said he didn’t recall de-
or more in tax deductions, mak- meet the year-end tax deadline. important ecological features do- multitiered structures that ulti- Hooks, a Georgia woman. tails of the deal but added that
ing them attractive to house- Syndicated conservation nates an easement to a non- mately give them partial own- A co-worker connected Ms. valuations aren’t always black
holds in the top tax bracket. easements remain legal, but profit land trust, permanently re- ership in the underlying prop- Hooks with Mr. Lloyd, who of- and white. Rick Sharpless, Mr.
Such transactions are popu- the IRS notice flagged deals stricting development. erty—and a tax break. fered a solution he pitched to Lloyd’s attorney, said as far as
lar in Georgia and neighboring with a deduction-to-invest- An appraiser estimates the —Richard Rubin other clients. Make a $35,000 he knows, the IRS never chal-
states, where teams of invest- ment ratio of 2.5 to 1 or more “contribution into the land lenged any easement his client
ment advisers, lawyers, ap- as questionable tax-avoidance trust,” he told Ms. Hooks in an was involved in.
praisers and land trusts lever- techniques. The agency can tificially inflated tax deduction.” field, legal committee co-chair email, and reap enough deduc- Bill Clabough, executive di-
age land-rights donations into deny tax deductions, impose Ron Levitt, an Alabama at- of Partnership for Conserva- tions to save $53,000 in taxes. rector of the Foothills Land
business deals offering speedy penalties on appraisers for torney who defends easement tion, an industry group formed Ms. Hooks’s contribution Conservancy, which accepted
profits. They say such transac- overstating land values and donations against audits, called in August as the IRS was scru- bought part of a Wyoming LLC that easement, said his group
tions protect land and effi- penalize people who don’t re- the IRS action a holiday-season tinizing syndicators. “Partner- investing in a deal involving doesn’t second-guess apprais-
ciently spread tax deductions, port their involvement as “stink bomb” requiring people ships provide an important land in rural Van Buren als.
from landowners who don’t much as $100,000. to disclose information the gov- source of private funding to fi- County, in Tennessee. Ms. Hooks didn’t respond to
have enough income to use A Treasury Department ernment already largely has. nance needed conservation To justify a donation ex- a request for comment.
them to taxpayers who do. spokeswoman said the govern- The IRS action last week is projects, especially when the ceeding $10 million on a 440- In an affidavit, Ms. Hooks
The syndicates’ recent ment’s move would “support” unfair, arbitrary and overly current owner is land-rich but acre parcel, the 2012 plan en- said she was “very satisfied”
growth alarm many tax law- the partnerships as a way to broad, and the next adminis- cash-poor and might other- visioned a maximum use of 116 with Mr. Lloyd and made an-
yers and land trusts, who say preserve land “while preventing tration and Congress should wise be forced to sell to a de- residential lots, in a county other conservation easement
the transactions rely on in- bad actors from receiving an ar- review it, said Randy Bamp- veloper,” he said. whose population rose by 169 investment the next year.

Winter Inversion Lingers in Salt Lake City U.S. WATCH

ENVIRONMENT
Mining Limits Urged
To Save Sage Grouse
The Obama administration of-
fered five possible plans Thurs-
day for limiting mining on federal
land in the West to protect the
vulnerable greater sage grouse,
but didn’t say which it prefers.
The options range from ban-
JEFFREY D. ALLRED/THE DESERET NEWS/ASSOCIATED PRESS
one of two soldiers killed when a
Texas Army National Guard heli-
copter broke apart on a routine
training mission and crashed into
Galveston Bay about 25 miles
southeast of Houston.
Maj. Gen. John Nichols said
an Army investigative team from
Fort Rucker, Ala., will work to de-
termine what happened and if
Wednesday afternoon’s crash
was preventable.

ning new mining activity on The Army has identified the

about 15,000 square miles for up
to 20 years to imposing no addi-
tional restrictions on mine loca-
tions. The rules would affect
sage grouse habitats on federal
land in Idaho, Montana, Nevada,
Oregon, Utah and Wyoming.
Under all the options, mining
projects already approved or un-
der way could proceed. Energy
companies could still extract oil
and gas from any restricted
lands, but they would have to
use directional drilling from some
A MURKY MESS: The skyline of Salt Lake City was shrouded in haze on Wednesday during an inversion, when cold, stagnant air distance away to avoid disturb-
settles in the bowl-shaped mountain basins, trapping emissions. State officials said the air-quality issues persisted Thursday. ing the surface.
After a public comment pe-
riod ends in March, President-
elect Donald Trump’s administra-
men killed as 32-year-old Army
Chief Warrant Officer 3 Dustin
Lee Mortenson and 33-year-old
Chief Warrant Officer 2 Lucas
Maurice Lowe.
—Associated Press
COLORADO
One Dead, Two Hurt
In Fall From Ski Lift
A woman died and two chil-
dren were injured after falling
from a chair lift at a small Colo-
rado ski area on Thursday.
Police said the three people,
who were visiting from out of
state, fell from a lift at Ski

SNAP tion will decide which option to

choose, if any.
An estimated 200,000 to
500,000 sage grouse remain in
Granby Ranch about 90 miles
west of Denver. Police said one
child was hospitalized in stable
condition and the other was
Continued from Page One 11 Western states, but they are flown to Children’s Hospital in
will generate roughly $940 mil- losing habitats to development. suburban Denver for treatment.
lion in advertising revenue in —Associated Press Police spokeswoman Schelly
2017, a valuation of $25 billion Olson said resort officials said
would give Snap a multiple of TEXAS they fell about 20 feet on to
26.7 times ad sales, according to snow. State regulators who over-
Dan Morgan, a senior portfolio One Body Recovered see chair lifts were helping to in-
manager at Synovus Trust Co., In Helicopter Crash vestigate, she said. The death
which manages about $12 bil- comes during one of the busiest
lion, who calculated the metric Army officials said Thursday weeks for Colorado ski resorts.
using data from eMarketer. At they had recovered the body of —Associated Press
the time of their IPOs, Facebook
and Twitter traded at 19.4 times
and 13 times their respective ad- CORRECTIONS  AMPLIFICATIONS
JAE C. HONG/ASSOCIATED PRESS

vertising revenue, he calculated

using research estimates.
“It’s not cheap,” Mr. Morgan European Union sanctions Grace.” In some editions Thurs-
said. “I’m probably going to be against Russia expire in July, day, an obituary for Ms. Reyn-
cautious going into the IPO. We when the EU has the choice to olds in the Life & Arts pages in-
do own Facebook and Google, so renew them. A World News ar- correctly said she won an Emmy.
the question is, ‘Is there a place ticle Thursday about the oppo-
at the table for Snap, or is it go- sition of France’s two leading University of Pennsylvania
ing to go the way of Twitter?’ Evan Spiegel, the founder and CEO of Snap, will play a key role in the company’s IPO roadshow. presidential candidates to sanc- Prof. Cade Massey said that
Because we don’t want that.” tions against Moscow incor- many National Football League
Twitter is currently trading IPOs in 2016, down from $9.9 that a higher proportion of its rectly said the sanctions expire coaches habitually choose to
about 37% below its IPO price billion raised by 31 tech compa- Different Paths users are in lucrative areas. in June. postpone the certainty of losing
after an unsuccessful attempt to nies in 2015, according to data Monthly closing market cap Facebook’s U.S., Canadian even though doing so actually
sell itself this year. provider Dealogic. But shares of since initial public offerings and European users generate Italian investigators deter- lowers the likelihood of win-
Snap executives are also the 2016 class of tech IPOs by most of the company’s revenue mined part of the route taken ning. A Sports article Wednes-
$400 billion
wary of encountering the pric- and large have performed well. but make up about one-third of by suspected terrorist Anis day about the conservative na-
ing issues that plagued Face- After filing confidentially for Facebook its total user base. A much Amri from Germany to Italy by ture of NFL coaches incorrectly
book in its early days as a public an IPO under the 2012 Jump- higher share of Snap’s users, viewing closed-circuit television said that coaches often make
company, according to people start Our Business Startups Act 300 around 73%, are concentrated in images. A World News article decisions to postpone losing
familiar with the company’s just ahead of the November U.S. those regions. Thursday about Wednesday’s even if doing so lowers the odds
plans. Facebook’s bankers, seek- presidential election, Snap be- Snap’s revenue per user, at arrest of a Tunisian man in con- of losing. Separately, NFL teams
ing to seize on perceived de- gan laying the groundwork for 200 less than $5, is still far below nection with the Dec. 19 Berlin have punted 80% of the time in
its pitch in private talks with in- that of Facebook. But it only truck attack incorrectly said in- the fourth quarter when a team
vestors. started running ads in 2014 and vestigators had used closed- is losing by two possessions
The recent scarcity Snap is also making its IPO
case in a less traditional way.
100 revenue has grown quickly
since. Analysts and investors ex-
caption television. with more than four minutes re-
maining. In some editions, the
of tech offerings is After releasing Spectacles, Twitter pect Snap to generate revenue Debbie Reynolds was nomi- article incorrectly gave the per-
likely to work in Snap’s camera-equipped sun-
glasses, the company opened
0
of just over $350 million in 2016
and $1 billion in 2017. Facebook
nated for an Emmy Award for
her work on the series “Will &
centage of teams punting under
the stated conditions as 75%.
Snap’s favor. pop-up retail stores in the U.S. 2012 ’13 ’14 ’15 ’16 generated $3.7 billion in revenue
The stores drew long lines, and Source: Thomson Reuters and a $1 billion profit and in Readers can alert The Wall Street Journal to any errors in news articles by
some were located conspicu- THE WALL STREET JOURNAL. 2011, the year before its May emailing wsjcontact@wsj.com or by calling 888-410-2667.
ously close to Apple retail 2012 IPO.
mand, initially put a hefty price stores. tout is the company’s daily ac- Snap’s bankers also are ex- THE WALL STREET JOURNAL (USPS 664-880)
on the stock, only to see it fall This proximity wasn’t a coin- tive user rate, people familiar pected to draw parallels be- (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935)
once it began trading. The stock cidence. During the roadshow, with the deal said. More than tween Mr. Spiegel and Facebook (Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
took more than a year to regain Snap’s bankers and executives 150 million users access Snap- founder Mark Zuckerberg, who Published daily except Sundays and general legal holidays.
its ground. Separately, Snap is are expected to liken Mr. Spiegel chat at least once a day, the started their companies as un- Periodicals postage paid at New York, N.Y., and other mailing offices.
likely to sell roughly 10% to 20% to late Apple co-founder Steve company has said during recent dergraduates at Stanford Uni- POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020.
All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of
of the company, people familiar Jobs, who was instrumental in presentations, more than some versity and Harvard University, which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1155 Avenue of
with the deal said. creating Apple’s cultlike follow- recent estimates of Twitter’s respectively. Mr. Spiegel con- the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
The recent scarcity of tech ing, said people familiar with daily active users. They also ceived Snap—formerly known Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
offerings is likely to work in the process. To that end, Snap’s plan to highlight the roughly 25 as Snapchat—as an alternative
Snap’s favor. If it proceeds as IPO team plans to highlight met- to 30 minutes a day users spend to Facebook, which left a web NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
planned, Snap’s debut would rics they believe show Mr. Spie- on Snap, company executives trail that haunted some of his CONTACT CUSTOMER SUPPORT.
come after the slowest year for gel can design breakthrough said in these presentations. friends as they searched for By web: customercenter.wsj.com
U.S. tech IPOs since 2009. products that attract a loyal While Facebook has far more jobs. In 2013, he turned down a By email: wsjsupport@wsj.com
Twenty-six U.S.-listed tech com- customer base. daily active users—1.18 billion in $3 billion cash offer from Face- By phone: 1-800-JOURNAL (1-800-568-7625)
Or by live chat at wsj.com/livechat
panies raised $4.3 billion in One measure they plan to September—Snap plans to argue book.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Friday, December 30, 2016 | A3

U.S. NEWS

Job Trend
On Healthy
Track at
Year’s End
BY BEN LEUBSDORF

The U.S. job market ended

the year on solid footing as an
important indicator of layoffs
continued to hover near his-
torically low levels.
The Labor Department re-
ported Thursday that applica-
tions for new unemployment
benefits fell by 10,000 to a
seasonally adjusted 265,000 in
the week ended Dec. 24, par-
tially reversing a jump in the
prior week.
Even accounting for short-
term volatility, which can be
especially pronounced around
holidays, the trend appears

BESS ADLER FOR THE WALL STREET JOURNAL

healthy. Initial jobless claims
have now been below 300,000
for 95 consecutive weeks, the
longest such streak since
1970—when the U.S. workforce
and population were far
smaller than they are today.
Economic conditions vary
widely, though, from region to
region. In a separate report,
the Labor Department said un-
employment rates across U.S. Argentina-born Brian Aguilar, a beneficiary of a federal plan to help young people stay in America, was accepted in a program to study in Mexico for 15 days in January.
metro areas ranged in Novem-

Some Leave U.S. to Find Way Back

ber from a low of 1.7% in
Ames, Iowa, to a high of 20.3%
in El Centro, Calif.
Among large metro areas,
jobless rates ranged from 2.4%
in Boston and Salt Lake City to Returning legally can at the City University of New because authorities cannot their last chance to leave the zenship and Immigration Ser-
5.5% in Riverside-San Bernar- York. “Most of these people remove them from the U.S. as country legally.” vices said processing time for
dino-Ontario, Calif. help some immigrants are of marrying age.” long as their application is Brian Aguilar, an Argentina- advance-parole applications
At the national level, the become eligible for a Without a legal entry in moving through the yearslong born DACA recipient, feels this remained within the “goal of
U.S. labor market posted solid their passport, those unlaw- adjudication process. way. He was accepted in the 90 days.”
gains in 2016. The unemploy- coveted green card fully in the U.S. who marry an During his campaign, Mr. fall for a program to study in Processing delays
ment rate in November was American must return to their Trump took a tough line on il- Mexico for 15 days in January. prompted attorneys for
4.6%, its lowest level since Au- BY MIRIAM JORDAN country of origin and apply for legal immigration, saying he “No one knows what Trump CUNY’s Citizenship Now! pro-
gust 2007. Growth in nonfarm a special waiver at a U.S. con- would deport millions of peo- will do,” said Mr. Aguilar, a 22- gram, which offers students
payrolls averaged 180,000 a Uncertain of their fate un- sulate—a process that can ple and eliminate DACA. More year-old biomedical engineer- free legal help, to contact the
month during the first 11 der President-elect Donald strand them for several recently, he struck a softer ing major at City University of USCIS to secure special ap-
months of the year, a step Trump, illegal immigrants who months or longer. tone on DACA, saying he would New York. “Some are panicked pointments for students like
down from 2015’s monthly av- benefit from an Obama ad- “They are converting their “work something out.” But he because the doors could be Mr. Aguilar. He arrived in
erage of 229,000. ministration program to help original illegal entry as a kid hasn’t provided details, and closing.” America legally as a child, but
The broader U.S. economy young people stay in the coun- into a legal entry,” said Ran- has selected a DACA opponent, He and other advance-pa- his family overstayed their vi-
remained on track for steady, try have been applying for per- dall Caudle, a San Francisco Sen. Jeff Sessions (R., Ala.), to role applicants as well as edu- sas.
though unspectacular, growth mission to leave it. immigration attorney who said be attorney general. Mr. cators and immigration attor- When he arrived at the
as 2016 draws to a close. The reason: By leaving and he is trying to get advance pa- Trump’s team didn’t respond neys reported a longer wait agency’s New York office on
After a weak start to the then returning legally, the im- role for several DACA clients to requests to comment. than expected for the docu- Dec. 22, the massive waiting
year, gross domestic product, migrants can more easily be- before Jan. 20, when Mr. “Because of the possibility ment. area was “jam-packed,” re-
a broad measure of the goods come eligible for a green Trump takes office. of DACA’s cancellation I have “We were very concerned it called the student. With Mr.
and services produced across card, or permanent legal resi- Since DACA was launched in presented the option of travel was taking so long for our stu- Lavetsky beside him, Mr. Agui-
the economy, expanded at an dence, if they marry an Ameri- 2012, about 740,000 immi- to many clients,” said Ana dents to hear back compared lar submitted his paperwork,
inflation- and seasonally ad- can. grants have received protec- Schwartz, an immigration at- to last year,” said Tatyana including passport, work per-
justed rate of 3.5% in the third The recipients of Deferred- tion from deportation and a torney in Houston. In addition Kleyn, the CUNY professor mit, fingerprints, study-abroad
quarter. That was the stron- Action for Childhood Arrivals work permit, which they re- to giving them a legal entry, who runs the Mexico program. letter and a copy of the appli-
gest growth rate in two years. are typically immigrants in new every two years. she said, “it also might be A spokesman for U.S. Citi- cation he had filed in the fall.
But many forecasters ex- their teens to 30s who were Groups that favor curbing “I’m so excited,” he said, after
pect somewhat slower growth brought to the U.S. illegally immigration to the U.S. oppose getting approval.
in the final three months of when they were children. Un- the program, which they say Surge in Requests said about 22,500 DACA bene- He and another participant
2016. der DACA, they have permis- unfairly offers protection and ficiaries received advance parole who visited the office, Areli
Continued growth, along- sion to remain in the U.S. at employment authorization to Slows Applications between the program’s incep- Morales, said that they had
side low unemployment and least temporarily. DACA bene- those here illegally at the ex- tion in 2012 and December struggled to focus on final ex-
signs of firming inflation, ficiaries also are allowed to pense of American workers. 2015, the latest data available. ams as their travel date ap-
would likely reinforce the Fed- travel abroad for humanitar- Others among the 11 million Amid longer processing Joe Lavetsky, an attorney proached with their applica-
eral Reserve’s plan to gradually ian, educational or employ- people living unlawfully in the times for advance parole, the assisting DACA students at tions pending. Ms. Morales, 20,
raise short-term interest rates. ment purposes and legally re- U.S. also have been seeking U.S. Citizenship and Immigra- CUNY, said three times more was approved just hours be-
The U.S. central bank in mid- enter the country, as long as ways to immunize themselves tion Services is urging people to DACA students had applied for fore her flight.
December raised its benchmark they first obtain a document against a possible crackdown apply as soon as possible “to advance parole through the uni- “I can’t begin to describe
federal-funds rate for just the called advance parole. under Mr. Trump. minimize the chances that their versity’s Citizenship Now! pro- how I feel,” said the DACA re-
second time since the financial “It creates a certain oppor- Attorneys report a surge in advance parole request will not gram in 2016 than in the previ- cipient, who was brought to
crisis, and policy makers pen- tunity to adjust their status,” the number of immigrants ap- be processed in time for their ous three years combined. the U.S. from Mexico when she
ciled in three quarter-point said Allan Wernick, an attor- plying for asylum—despite be- intended travel.” A spokesman —Miriam Jordan was 6 and had never been
rate increases in 2017. ney that assists DACA students ing unlikely to win approval— back.

Giant Sinkhole Damages 22 Homes

BY DOUGLAS BELKIN

At 6 a.m. last Saturday

Jerry Albu was asleep in his
bed in a Detroit suburb when
he was awakened by the
sounds of crackling that kept
getting louder and louder.
When he looked up, he saw the
ceiling splitting.
Mr. Albu, 60 years old, got
his wife and dog and escaped
the house as soon as he could.
The noise turned out to be
TODD MCINTURF/DETROIT NEWS/ASSOCIATED PRESS

the beginnings of a massive

sinkhole opening up under his
home. It is 60 feet deep and
has since spread to nearly the
length of a football field
prompting the evacuation
of residents from 22 homes.
“I was thinking this isn’t
California, the house shouldn’t
be moving, this is the Mid-
west,” said Mr. Albu, who has
lived there for 17 years.
The sinkhole, in the city of
Fraser about 15 miles north of A sinkhole in Fraser, Mich., near Detroit, is 60 feet deep and nearly the length of a football field.
downtown Detroit, was caused
by a rupture in a massive con- massive backlog of infrastruc- residents back in their homes But a thaw this week, com-
crete sewer pipe that runs 45 ture repair the nation faces. A by Jan. 9, but three homes are bined with heavy rains over-
feet below 15 Mile Road, a ma- 2013 report card by the Ameri- being condemned and may whelmed the pumps. Raw sew-
jor thoroughfare. The pipe, can Society of Civil Engineers, need to be torn down. Resi- age had to be diverted into the
which is 11 feet in diameter, which is issued every four dents are staying with family nearby Clinton River for about
was installed about 1970. At years, estimates the invest- or in a nearby hotel. 24 hours, Fraser Mayor Joe
least two other ruptures under ment needed by 2020 to mod- Mr. Albu said as he got out Nichols said.
the same road have cost tax- ernize the country’s infrastruc- of the house he saw that the Mr. Nichols commended the
payers tens of millions of dol- ture, including energy, levees living-room floor was slanted work of “some amazing profes-
lars in repairs including one in and dams, school and roads and he wasn’t sure whether sionals” who have been work-
2004. It isn’t clear if the rup- and parks and drinking water, the house would collapse. Now ing around the clock to stabi-
tures are related. at $3.6 trillion. the entire house is sinking and lize the disaster but said the
Sewer-line and water-main Shane Slanec, a spokesman crumbling. He has retained a bill for 40 years of deferred
breaks are growing problems for Macomb County Public lawyer to review his options. maintenance across that na-
around the country. Works Department, said offi- Pumps were set up to divert tion’s infrastructure was com-
The disaster highlights the cials hope to have most of the the sewage around the break. ing due.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Friday, December 30, 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.

U.S. NEWS

Kremlin Vows Retaliation to U.S. Move

BY NATHAN HODGE tion in Washington that may
move to end them entirely.
MOSCOW—The sanctions Kremlin spokesman Dmitry
imposed by Washington on Peskov said the White House
Moscow’s top intelligence ser- had two aims: “to ruin once
vices has sharpened the focus and for all Russian-American
on the links between Russia’s relations, which were already
security services and the at rock bottom and, appar-
world of black-hat hacking. ently, to strike a blow against
The Kremlin, which has the foreign-policy plans of the
consistently denied any gov- future administration and the
ernment involvement in the new U.S. president.”
cyberattacks, promised a retal- Russian President Vladimir
iation. Though it isn’t clear Putin, Mr. Peskov added,
whether the Russians will re- would formulate Russia’s reac-
spond with tit-for-tat diplo- tion. “The principle of reci-
matic expulsions, Russian offi- procity applies here absolutely
cials have repeatedly said they without alternative,” he said.
would have no other response The steady drumbeat of
to such measures by the U.S. hacking revelations over the
“Tomorrow there will be past year has prompted seri-
official statements, counter- ous concerns about high-end
measures and much more,” Russian capabilities for hack-
Russian Foreign Ministry ing, with calls growing on
spokeswoman Maria Zakharova Capitol Hill for a fuller probe
said Thursday. of the Kremlin’s involvement
The U.S. measures also in electronic intrusions of the
stand to test the limit of sanc- Democratic National Commit-
tions: The U.S. and Europe tee and the email account of
originally imposed sanctions Hillary Clinton’s campaign
in 2014 to punish Russia eco- chairman, John Podesta.
nomically for the annexation Russia has long had a rich
of the Black Sea peninsula of talent pool of scientific and
Crimea from Ukraine, but the technical expertise, a legacy of
Kremlin now predicts a return Cold War-era competition be-
to growth in 2017—and is tween the U.S. and the Soviet
counting on a new administra- Union. The U.S. spent heavily
on so-called threat-reduction to change Russian behavior.
programs designed in part to U.S. Says Moscow has also forced the closure of Russia’s economy has seen
provide work to scientists who 28 “American corners,” or pro- two years of negative eco-
were once part of the Soviet Mistreats Officials motional information displays nomic growth, a result both of
nuclear-weapons complex— about the U.S., blocked U.S. ef- sanctions and the drop in
and to keep them from selling forts to construct a new and global prices for oil, Russia’s
their expertise abroad. President Barack Obama’s safer consulate in St. Peters- main export. The Russian gov-
But those institutes estab- retaliation for alleged Russian burg and rejected U.S. efforts to ernment now predicts that the
lished to serve the military-in- hacking also aimed to settle an- shore up security outside of its recession will end in 2017, in
dustrial complex have created other score with Moscow: what current St. Petersburg outpost. part as oil prices recover.
a pool of freelancers with ex- Washington says is the persis- In June, the State Depart- But some critics of the
pertise in cryptography, math- tent mistreatment of U.S. diplo- ment expelled two Russian offi- Obama administration say the
ematics and physics, experts mats and officials. cials from the U.S., citing Rus- sanctions have thus far been
say. Technical universities Russia’s harassment of U.S. sian mistreatment of U.S. insufficiently strong. “While
“have special relations with diplomats overseas has in- diplomats and after the release today’s action by the adminis-
the security services, because creased over the past four years of a video on Russian national tration is overdue, it is an ap-
they were built to support the and Washington has seen a sig- TV that appeared to show a propriate way to end eight
military-industrial complex,” nificant uptick over the past year, Russian police officer tackling a years of failed policy with
said Andrei Soldatov, an ex- State Department spokesman U.S. official outside the U.S. Russia,” House Speaker Paul
pert on Russia’s efforts to con- Mark Toner said Thursday. Embassy in Moscow. Ryan (R., Wis) said Thursday.
trol the internet. The gradu- “This harassment has in- According to a recently re- The EU also imposed sev-
ates “all had respect for volved arbitrary police stops, moved “diplomatic list” on the eral rounds of sanctions on
security services and narrow physical assault and the broad- Russian embassy’s website, Moscow since 2014, but Rus-
technical educations.” cast on state TV of personal there were 225 Russian officials sian officials now openly talk
After the annexation of Cri- details about our personnel and spouses at the facility in of hopes that EU members will
mea, he said, Russia’s IT in- that put them at risk,” he said. Washington as of this month. eventually lose the resolve to
dustry wasn’t in a position to Mr. Toner added that Russia —Felicia Schwartz keep renewing them.
turn down requests from the More important for Russia,
security services. “They have a new administration is taking
been extremely loyal,” he said. forcement agencies from a between 2012 and 2015. Calls office in Washington that is
The bulk of hacking that number of different countries, to the Russia’s Federal Secu- expected to be more Moscow-
originates in Russia is carried including the U.S., Russia and rity Service, one of the main friendly, and Russian officials
out for criminal—not politi- European Union nations ar- targets of the U.S. sanctions, expect a possible sea change
cal—ends, cybersecurity ex- rested more than 160 Russian- weren’t returned. in U.S. relations.
perts say. A 2015 report on speaking cybercriminals who The allegations have also —James Marson
Russian financial cybercrime belonged to small, medium- raised questions about the ef- and Olga Razumovskaya
by Kaspersky Lab said law-en- size and large criminal groups fectiveness of Western efforts contributed to this article.

RUSSIA TRUMP
MARK WILSON/GETTY IMAGES; MOLLY RILEY/ASSOCIATED PRESS; MELISSA GOLDEN FOR THE WALL STREET JOURNAL

Continued from Page One Continued from Page One

actions Thursday weren’t the plans of the future administra-
sum total of the U.S. response. tion and the new U.S. presi-
“We will continue to take a va- dent,” according to the Rus-
riety of actions at a time and sian news agency Interfax.
place of our choosing, some of Still, Mr. Trump isn’t en-
which will not be publicized,” tirely boxed in. Senior Obama
he said. administration officials said
Russia has denied involve- the incoming president could
ment in the election-related undo the sanctions after he
hacks. takes office. “When the new
The sanctions target Russia’s administration takes office it’s
military intelligence agency, the entirely their judgment
Main Intelligence Directorate, or whether or not they continue
GRU, for “tampering, altering or on the course that we set,” an
causing the misappropriation of Obama administration official
information” with the purpose said.
or effect of interfering with the Andy Card, a White House
election. The measures also cite chief of staff under George W.
Russia’s main security agency, Bush, faulted the Obama White
the Federal Security Service, for House for taking such conse-
assisting the GRU in the activi-
‘Russia does not share ‘We need to punch back ‘Retaliatory measures by quential action so soon before
ties. America’s interests. In against Russia, and the Obama administra- leaving office.
Also sanctioned were three “I tend to believe that out-
Russian companies top Russian
fact, it has consistently punch back hard.’ tion...are long overdue.’ going presidents should be as
officials who run the military sought to undermine them.’ respectful of the burden of the
intelligence agency. SEN. CHUCK SCHUMER (D., N.Y.) SENS. JOHN MCCAIN (R., ARIZ.) AND incoming president as they
The sanctions impose asset LINDSEY GRAHAM (R., S.C.) can be, and not try to saddle
freezes and travel bans on the SPEAKER PAUL RYAN (R., WIS.) the incoming president with
individuals and prohibit U.S. cit- obligations that weren’t read-
izens and companies from do- ily anticipated. And so I do
ing business with them. But The State Department also Federal Bureau of Investigation. feel there’s a little blindsiding
they are largely symbolic, be- notified Moscow that, as of The largest before that was by The U.S. Sanctions Russia that as of noon on Friday, going on,” Mr. Card said.
cause Russian intelligence agen- noon on Friday, it would be de- President Ronald Reagan, who it will lose access to Russian Mr. Obama should have
cies and officials have limited nied access to two Russian gov- ordered 55 Soviet diplomats to Here’s a rundown of the steps government-owned recreational shared information with Mr.
official interaction with the U.S. ernment-owned compounds in leave the country. In 2010, the the Obama administration is compounds, one in Maryland and Trump but not taken steps
or its businesses. the U.S. U.S. traded 10 long-term Rus- taking against Russia. one in New York. A U.S. official that would burden Mr. Trump
At the same time, the State The administration’s actions sian sleeper agents for four said one of those is a dacha, or with the “fallout,” he said.
Department expelled what it Thursday appeared to be the prisoners being held in Russia. summer home, for Russian diplo- Some senior Republican
said were 35 intelligence opera- largest bulk expulsion of foreign The Department of Home- Sanctioning Russian entities mats on the Eastern shore of lawmakers similarly used the
tives allegedly serving under officials since March 2001, land Security and the FBI re- and individuals Maryland and the other was a occasion to take a swipe at Mr.
diplomatic cover from the Rus- when President George W. Bush leased a joint analysis report, ti- Two Russian intelligence ser- dacha on Long Island. Obama’s foreign policy.
sian embassy in Washington ordered 51 Russian diplomats to tled “Grizzly Steppe,” giving vices, the GRU and FSB; four “While today’s action by the
and the Russian consulate in leave in retaliation for Russia additional technical details GRU officers; three companies Releasing information on cy- administration is overdue, it is
San Francisco. planting a suspected spy at the about the election hacking, in- that supported the GRU’s cyber ber activity an appropriate way to end
cluding implicated IP ad- operations; and two Russian indi- The Department of Homeland eight years of failed policy
dresses, virus signatures and viduals who misappropriated Security and the Federal Bureau with Russia,” said House
file hashes. funds and personal identifying of Investigation are releasing a Speaker Paul Ryan (R., Wis.).
The report confirmed that info. report with declassified infor- “And it serves as a prime ex-
the hacking group known as mation on Russia’s malicious ample of this administration’s

HOLIDAY UPDATE
Cozy Bear, or APT 29, pene-
trated the network of a U.S. po-
litical party in the summer of
2015, while a second group
The Wall Street Journal will not be printed on known as Fancy Bear, or APT
28, penetrated the network last
Monday, Jan. 2 in observance of New Year's Day spring.
Russian Foreign Ministry
public holiday. spokeswoman Maria Zakharova
said on her Facebook page that
the Russian Foreign Ministry
would make an official an-
nouncement regarding counter-
measures against the U.S. on
Friday.
Mr. Obama, who has strongly
suggested Mr. Putin would have
had knowledge of the hacks,
had promised to respond after
U.S. intelligence agencies deter-
mined that Russia hacked the
Democratic National Committee
and the email account of Hillary
Clinton’s campaign chairman,
John Podesta.
U.S. officials said Thursday’s
actions were in response both
to Russia’s interference in the
election and to its meddling in
But you can still get all the latest news. American foreign policy broadly
Log on to WSJ.com or download the WSJ app on and its harassment of U.S. dip-
your tablet. lomats in Moscow over the past
year.
Download at WSJ.com/mobile While a sharp response to
Russia garnered bipartisan sup-
port, many Republican lawmak-
To contact customer service, please ers said Mr. Obama had taken
visit WSJ.com/CustomerService too long to push back after
years of Russian aggression.
One of the most forceful state-
ments came from Senate Major-
ity Leader Mitch McConnell (R.,
Ky.), who said the next Congress
© 2016 Dow Jones & Co., Inc. All rights reserved. 2DJ4734 should take tougher actions.
Senate Democrats praised
the Obama administration’s de-
Expelling diplomats and clos- cyber activity. ineffective foreign policy that
ing compounds has left America weaker in the
The State Department expelled Taking covert steps eyes of the world.”
35 Russian officials operating in President Obama said the U.S. A deal-maker to the core,
Washington and San Francisco. will continue to “take a variety Mr. Trump could offer to ease
They gave the officials and their of actions at a time and place the sanctions as a carrot to
families 72 hours to leave the of our choosing, some of which win more cooperation from
country. The department told will not be publicized.” Russia in fighting Islamic State
and ending the conflict in
Syria. At the same time, he
cision to target new Russian of- The administration’s an- could threaten to escalate the
ficials and entities with sanc- nouncement could reignite the conflict even further in hopes
tions—but said Mr. Trump debate between the White of deterring Russia from more
would need to enforce the pol- House and Mr. Trump, who has aggressive moves.
icy. challenged the accuracy of the Beginning in the campaign
“I hope the incoming Trump U.S. intelligence assessment at- and spilling into the transition,
administration, which has been tributing the hacks to Russia Mr. Trump has played down
far too close to Russia through- and called it “ridiculous.” It also the specter of Russian hacking.
out the campaign and transi- sets Mr. Trump on a potential He has speculated that Russia
tion, won’t think for one second collision course with lawmakers might not have been involved.
about weakening these new in his own Republican Party. Before the election he said
sanctions or our existing re- On Thursday Mr. Trump— that Democratic National Com-
gime,” incoming Senate Minor- who said a day earlier that “we mittee computers could have
ity Leader Chuck Schumer (D., ought to get on with our lives” been hacked by Russia, China
N.Y.) said in a statement. when asked about retaliatory or even “somebody sitting on
Sen. Ben Cardin (D., Md.), moves against Russia—ap- their bed that weighs 400
the top Democrat on the Senate peared open to accepting the pounds.”
Foreign Relations Committee, U.S. intelligence assessment. His aides have questioned
said Washington needed to go White House officials said the motives of people pointing
even further. the steps Mr. Obama took could to Russia as the culprits, warn-
In a statement, Mr. Cardin be undone by Mr. Trump but ing that they might want to
said he planned to introduce said such a move would essen- delegitimize a Trump presi-
legislation to establish an inde- tially allow Russia to continue dency.
pendent, nonpartisan commis- trying to intervene in U.S. elec- More recently, Mr. Trump
sion to investigate hacking con- tions and let intelligence opera- and his team have shown they
nected to the U.S. elections. He tives back inside the U.S. are more willing to accept the
also said he would offer legisla- Mr. Obama called Mr. Trump verdict that Russia was behind
tion to apply “enhanced sanc- on Wednesday, and the White the cyberattacks.
tions” to Russia in response to House notified the president- In a statement Thursday,
its role in the U.S. election, as elect’s team Thursday before Mr. Trump said, “In the inter-
well as its military engagement the announcement. Administra- est of our country and its
in Syria and its role in a crisis tion officials said they didn’t great people, I will meet with
in Ukraine. give Russia advance notice. leaders of the intelligence
Mr. Obama, signed off on the —Felicia Schwartz, James community next week in order
response while on vacation in Marson and Siobhan Hughes to be updated on the facts of
Hawaii. contributed to this article. this situation.”
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A6 | Friday, December 30, 2016
AMMAR ABDULLAH/REUTERS
People fleeing formerly rebel-held areas of Aleppo on Thursday carried mattresses they received at a refugee camp in Syria’s Idlib province.
Syrian Rebels Upend Cease-Fire
Major faction rejects
truce engineered by
Russia and Turkey
hours before its start
Hours before a Russian and
Turkish-brokered cease-fire
was to take effect across Syria
early Friday, one of the coun-
try’s most powerful rebel
groups rejected the deal, up-
ending the latest effort to end
the nearly six-year war.
By Maria Abi-Habib in
Beirut, Olga
Razumovskaya in
Moscow and Margaret
Coker in London
The rebel group Ahrar al-
Sham said late Thursday that
it had unspecified reservations
over the cease-fire, hammered
out by Turkey and Russia as
part of a road map to peace
talks between the Syrian gov-
Read it in print, on the WSJ app
or at wsj.com/innovationparadox.
ernment and the opposition.
Though the cease-fire offi-
cially began at midnight,
clashes broke out between
rebels and government forces
less than two hours afterward,
according to reports.
Moscow and Ankara had
lauded their Syria peace plan
as the best solution to ending
the war, part of warming rela-
tions between the capitals as
they sideline the U.S. from ne-
gotiations.
Earlier in the day, Russia’s
defense ministry said Ahrar al-
Sham was one of seven groups
representing some of Syria’s
strongest rebel factions that
were included in the truce.
The truce was intended to
prompt smaller groups to join
the cease-fire and lend mo-
mentum to the peace process.
Those prospects now ap-
pear dim without Ahrar al-
Sham’s participation. Syria has
seen two nationwide cease-
fires in 2016, only to have
them break down after viola-
T H E I N N O VAT I O N PA R A D O X
A puzzling slump in innovation is slowing global
economic growth. A five-part series explains why
and looks at new efforts to push the frontiers of
WORLD NEWS
tions by both rebels and gov-
ernment forces.
Still, the diplomatic effort
to suspend the fighting sig-
naled the willingness of two of
the region’s power brokers to
work without the U.S. to find a
way out of the Syrian conflict.
Those efforts come after Rus-
sia helped the Assad regime
crush rebel groups and retake
the commercial hub of Aleppo
earlier in December.
“It looks like Turkey and
Russia are serious about a
cease-fire and achieving prog-
ress on the political track,
both to build on their latest
rapprochement and, in Rus-
sia’s case, give themselves a
political out from the con-
flict,” said Sam Heller, a fellow
at the Century Foundation.
Yet Thursday’s confusion
underlined one of the biggest
challenges to securing a cease-
fire and pursuing Moscow-
sponsored peace talks: How to
get Syria’s disparate armed
groups to sign on. During the
Reinventing
the big idea.
science, technology and medicine.
war, the rebels have often
turned their guns on each
other and continue to compete
for power and resources as the
government makes gains
throughout the country.
Ahrar al-Sham, a hard-line
Islamist faction, is considered
the strongest armed group af-
ter Islamic State and Syrian
Conquest Front, which has
links to al Qaeda. Islamic State
and Syrian Conquest Front,
both of which are designated
terror organizations by the
United Nations, were excluded
from the truce, which went
into effect midnight, local
time.
Ahrar al-Sham’s last-minute
rejection of the truce also
brought into question Turkey’s
influence over rebels. Turkey
claimed earlier this week to be
negotiating on behalf of the
opposition in talks in Ankara,
where Russia is representing
the government of Syrian
President Bashar al-Assad. The
draft accord omitted key con-
Sponsored by
* *** THE WALL STREET JOURNAL.
cerns, such as how the two
guarantors would enforce the
truce or increase the delivery
of aid to hard-hit areas.
Speaking earlier Thursday,
Russian President Vladimir
Putin acknowledged that the
agreements on a cease-fire
and a mechanism to monitor it
were very fragile. But, he said,
there was consensus among
the parties over their readi-
ness for peace talks to resolve
the conflict in Syria.
As Thursday went on, Syr-
ian Foreign Minister Walid al-
Moallem took a swipe at Tur-
key. “We trust the Russian
guarantor of the cease-fire be-
cause they are our partners in
the war on terrorism. We
don’t trust the Turkish role,”
Mr. Moallem said in comments
carried by the government-run
news agency SANA. He added
that Ankara was involved in
backing armed groups.
—Noam Raydan in Beirut
and Emre Peker in Istanbul
contributed to this article.
© 2016 Dow Jones & Co., Inc. All rights reserved. 6DJ4295
Kerry’s
Israel View
Gets Sharp
Reactions
BY FELICIA SCHWARTZ
WASHINGTON—Secretary
of State John Kerry’s speech
on the Middle East peace pro-
cess drew a sharp reaction in
the U.S., with lawmakers in
both parties warning it could
further inflame the fraught re-
lations between Israel and the
Palestinians.
Some Democrats said the
remarks, which attempted to
defend and preserve President
Barack Obama’s approach to
resolving the conflict, could
have the opposite effect, lead-
ing to an unraveling of the
push for a two-state solution.
“While he may not have in-
tended it, I fear Secretary
Kerry, in his speech and action
at the United Nations, has em-
boldened extremists on both
sides,” said incoming Senate
Minority Leader Chuck
Schumer of New York.
In his remarks on Wednes-
day Mr. Kerry criticized Is-
rael’s settlement policy and
defended the U.S. decision last
week not to use its veto in the
Security Council to quash a
resolution critical of Israeli
settlements in East Jerusalem
and the West Bank.
Aaron David Miller, a for-
mer adviser to Republican and
Democratic secretaries of
state, said “the Obama admin-
istration is going to produce
the opposite of what they in-
tended,” including spurring
more settlement building and
driving the peace process into
the international arena.
Sen. John McCain (R., Ariz.)
said Mr. Kerry’s speech “was
at best a pointless tirade in
the waning days of an outgo-
ing administration. At worst,
it was another dangerous out-
burst that will further Israel’s
diplomatic isolation and em-
bolden its enemies.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Iraqi Forces Push on Mosul as Tactics Shift
Federal police joining
fight after attacks by
Islamic State inflict
heavy casualties
BY TAMER EL-GHOBASHY
AND ALI A. NABHAN
BARTELLA, Iraq—Iraqi secu-
rity forces began a dramatic
shift in tactics Thursday in their
stalled offensive to retake Mosul,
Islamic State’s last major strong-
hold, advancing on new fronts
and bringing federal police into
the battle after counterattacks
inflicted heavy casualties.
Iraq’s military announced a
multisided offensive on the
city’s northern, eastern and
southeastern neighborhoods in
an attempt to choke off supplies
of weapons and new fighters.
In the past week, Iraq’s mil-
itary has begun using heavy
artillery in the crowded city,
in spite of the risk to civilians,
and has moved forces from
Baghdad and other areas to
support the Counter Terrorism
Forces. Some 4,000 federal po-
lice have been shifted from the
capital and south of Mosul to
support the fight in the east.
The changes follow a series
of devastating counterattacks
by Islamic State that have
KHALID AL-MOUSILY/REUTERS
Members of the Shiite Badr organization rode a truck during a battle with Islamic State in November.
Will Iraq’s Shiite Militias
Cross Into Syria Next?
MIDDLE EAST CROSSROADS
YAROSLAV TROFIMOV
W
HEN Islamic State
collapses in Iraq, a
lot rides on whether
the Iraqi Shiite militias taking
part in that campaign will
stop at the
international
border or will
cross into
Syria and
open a new
phase of that
country’s war.
The Hashed al-Shaabi, or
Popular Mobilization Forces,
which unite several of Iraq’s
powerful Shiite militias, were
established to combat Islamic
State in mid-2014. At the
time, the regular Iraqi army
collapsed as the extremist
group seized Mosul and ad-
vanced all the way to the out-
skirts of Baghdad.
While technically under
the control of the central
government in Baghdad, most
of these militias have been
trained and armed by Iran
and don’t hide their close
links with Iran’s Revolution-
ary Guard Corps. On their
tanks and armored vehicles,
they often fly banners with
portraits of the Islamic Re-
public’s Supreme Leader Aya-
tollah Ali Khamenei.
The current campaign to re-
take Mosul is led by the rebuilt
Iraqi army and the federal po-
lice. The Shiite militias have
deployed to areas west of the
city, cutting off Islamic State
from its remaining territory in
Syria and taking a string of
towns along the Syrian border.
Some officials of the Popu-
lar Mobilization Forces have
already said that they won’t
* * * *
Iraqi army personnel reloaded ammunition on Thursday during clashes with Islamic State militants north of Mosul.
raised questions about the
battle plan and even the mili-
tary’s capacity to secure other
urban centers.
“The current Mosul fight
has turned into a war of attri-
tion,” said Iskandar Witwit, a
lawmaker on the security and
defense committee and a for-
mer army general. “This will
negatively affect security in
stop at the border and that
they received the blessing of
Syrian President Bashar al-
Assad to go after his enemies
across the frontier.
“We say clearly, if there is
a necessity to secure the
Iraqi-Syrian border and to
prevent terrorists from com-
ing to Iraq, then we may go
to Syria to do so,” said
Moeen al-Kadhimi, a senior
leader of Badr, the most
prominent Iraqi Shiite militia,
and former chairman of the
Baghdad provincial council.
H
e cautioned, however,
that any such cross-
border operation
would have to be approved
by both the Syrian and Iraqi
governments, and that the
Iraqi militias’ target would
be Islamic State and not the
other opponents of the
Assad regime or the Syrian
Kurdish forces.
“They are not our busi-
ness. The Syrian Arab Army
has proved that it is able to
defend Syria.”
In Syria, these militias
would find a very different
demographic makeup. While
Iraq is majority Shiite, some
74% of Syria’s population is
Sunni, according to Central
Intelligence Agency esti-
mates. Islamic State follows
an extreme form of Sunni Is-
lam and has driven non-Sun-
nis from the lands it controls.
“The entrance of tens of
thousands of Popular Mobili-
zation Forces fighters in
Syria will have a deep impact
and will cause a sectarian ig-
nition,” said Riad Hijab, a for-
mer Syrian prime minister
who now heads the High Ne-
gotiations Committee, an um-
brella body representing the
mostly Sunni opposition and
rebel groups backed by Saudi
Arabia, Turkey and Qatar.
Shiite militias from abroad
already play a major role in
the Syrian conflict. The most
important of them is Leba-
non’s Hezbollah, which has
WORLD NEWS
Iraq for sure.”
For more than two weeks,
Iraqi troops have largely stood
pat to resupply, repair vehicles
and rotate forces. They have
also tried to secure the areas
they have retaken while defend-
ing against militant attacks.
Much of the tactical reas-
sessment has revolved around
the Counter Terrorism Forces.
become indispensable for the
survival of the Assad regime.
Thousands of fighters from
Iraqi Shiite militias such as
Al Nujaba and Asaib Ahl al
Haq—both part of the Popu-
lar Mobilization Forces—have
also been flown in recent
months to regime-held parts
of Syria.
There, they have taken
part in the takeover of the
rebel half of the Syrian city
of Aleppo, more than 300
miles from Iraq.
An independent overland
entry of much larger Iraqi mili-
tia units would, however, be
cardinally different from an ex-
peditionary mission to assist
Syrian regime forces in Aleppo.
W
hile the Assad re-
gime holds large ter-
ritory encompassing
major population centers of
western Syria, there is no
contiguity between that terri-
tory and Iraq. In eastern Syr-
ian regions abutting Iraq,
there are only isolated en-
claves of regime control that
have to be resupplied by air.
Most of eastern Syria is
currently held either by Is-
lamic State, also known as
Daesh, or by the Kurdish-
dominated alliance known as
the Syrian Democratic Forces.
Sunni Syrian rebels backed
by Turkey and Kurdish-led
forces backed by the U.S. are
separately advancing toward
the biggest city in eastern
Syria, Raqqa, Islamic State’s
de facto capital.
Injecting Iraq’s Shiite mili-
tias into this overwhelmingly
Sunni region would be a rec-
ipe for disaster, cautioned
Monzer Akbik, a senior mem-
ber of the Tayar al-Ghad Syr-
ian opposition group that is
allied with the Kurdish forces.
“Sectarian Shiite militias
coming into a Sunni area will
ruin everything,” he said. “If
that happens, maybe people
in the area will join Daesh so
they can go and fight against
the Hashed al-Shaabi.”
The elite U.S.-trained forces
are spearheading the drive to
reclaim the eastern half of the
city and have led nearly every
successful effort to win back
territory from Islamic State.
The units—about one-fifth the
total involved in the offen-
sive—have taken unusually
heavy losses in Mosul.
Lt. Gen. Abdel Ghani al-As-
Fearing Islamic State,
A Seer Falls Silent
Refugee keeps visions to herself, saying militants would kill her over them
BY MICHAEL M. PHILLIPS
AND ZALALA ALI
HASSAN SHAMI, Iraq—Sa-
naa Jawadia says she can
look into the future, but she
doesn’t dare tell anyone
what she sees.
The visions that built Mrs.
Jawadia’s reputation as a
seer back home in Mosul still
come to her here in the refu-
gee camp. The distant thud
of artillery, however, reminds
her she still isn’t safe from
Islamic State militants who
would kill her for telling for-
tunes. “We feel like that’s
the voice of Islamic State
talking to us,” she says.
In October, Iraqi and
Kurdish troops, backed by
U.S. and allied warplanes,
launched a bloody offensive
to retake Mosul, Iraq’s sec-
ond city. Elite Iraqi counter-
terrorism troops pushed into
the city from the east, reach-
ing Mrs. Jawadia’s neighbor-
hood last month, and the
family fled through govern-
ment lines to safety.
Mrs. Jawadia and 12 fam-
ily members arrived Nov. 29
at the camp in Hassan
Shami, where orderly rows
of white and blue tents fill
an expanse of once-desolate
land. There are 16,000 living
in the camp out of 114,000
who have fled fighting in and
around Mosul.
For the most part, the ref-
ugees aren’t allowed to leave
the camps once they arrive.
It is near Kurdish territory,
and Kurdish authorities
don’t want Iraqi Arabs set-
tling on their turf. Mean-
while, the Iraqi army is wor-
ried Islamic State infiltrators
among the refugees will
leave the camps to conduct
attacks.
In early 2014, back in Mo-
sul, Mrs. Jawadia was known
as someone who could offer
a glimpse of things yet to
come. That was before Is-
lamic State militants swept
into the city, before they
forced her nephew to his
knees and shot him in the
head, and before she found
herself running for her own
life.
She says she recognized
her gift at the age of 10.
Sometimes the insights came
as a rush of feeling, some-
times as images in her mind.
“I can’t control it,” says Mrs.
Jawadia, now 56 years old.
In Mosul, she had lived in
an apartment with her hus-
band, Ali Al Luhaibi, a 62-
year-old retired civil servant.
People would call for ap-
pointments, sometimes doz-
ens a day. She would stay up
past midnight fielding their
requests and, future permit-
ting, assuaging their con-
cerns.
She recalls one friend
coming to her desperate to
find a lost gold bracelet.
Mrs. Jawadia says she told
Friday, December 30, 2016 | A7
officials have said the death
toll among security forces has
far exceeded previous battles
against Islamic State.
“I know they’re taking a lot
of casualties; it’s been tough
on them,” a U.S. official said.
Since the start of the Mosul
operation on Oct. 17, the U.S.-
led coalition has struck Islamic
State with more than 7,650 mu-
nitions in support of the Iraqi
Security Forces, according to a
coalition statement Thursday.
Col. Arkan Fadhil, a senior
officer who coordinates air-
strikes with American forces,
said the losses in personnel
and equipment have been “in
KHALID AL-MOUSILY/REUTERS
an acceptable range consider-
ing the rate of the battle.”
Prime Minister Haider al-
Abadi initially said the redeploy-
ments are part of an evolving
battle plan, but some military
commanders and politicians say
he was overconfident of a swift
victory. The prime minister ini-
sadi, the commander of the tially predicted victory by the
forces, said this week his units end of 2016. On Tuesday, he said
have begun using artillery in evicting Islamic State from all of
eastern Mosul for the first time Iraq would take three more
after the government dropped months, an assessment com-
its initial objections when the manders and analysts said is still
offensive bogged down. unrealistic given the size of Mo-
Iraq’s military and govern- sul and the intensity of the fight.
ment don’t release casualty —Ghassan Adnan
figures. But medical workers, in Baghdad
Iraqi politicians and American contributed to this article.
her to look in a corner of the well.
second-floor bathroom. It At first, she scaled back
was there, she says. her practice to a little fortu-
When three Kurdish fight- netelling for family and close
ers visited, she says she friends. Still people came,
warned one of them he the Islamic State takeover in-
would go on a mission, but creasing their worries. One
never return. “I didn’t want woman arrived frantic about
to tell him that, but I had a son taken by militants.
to,” she says. The other two “Don’t worry,” Mrs. Jawadia
fighters reported later that told her. “Your son will be
their friend had been killed, back by this evening.”
she says. The grateful woman gave
“I’m not a magician—it’s her a silver-and-turquoise ring.
not like I’m practicing When her own nephew dis-
magic,” she says as she fin- appeared two months ago,
gers deep-blue prayer beads. detained for using a cell-
“It’s just a gift from God.” phone, Mrs. Jawadia said
She says she never asked there was no point in hoping;
for payment. Grateful clients he was already dead. Her
offered jewelry, however. grandson says he later saw
Shortly before Islamic the video of his execution.
State seized Mosul in June At the camp in Hassan
2014, Mrs. Jawadia remem- Shami, the jarring transition
bers waking in alarm at 3 from respected seer to fear-
a.m. She saw a vision of men ful refugee stripped Mrs.
and women running through Jawadia of her sense of self.
the streets, screaming. She spends days sitting on a
gray cushion, warmed by a
kerosene heater and lighting
a new Akhtamar cigarette as
When her nephew soon as the previous
vanished, she said there one burns down.
“Since I was a child there
was no point in hoping; have been times when I can
he was already dead. see the future,” she says in
her gravelly voice. “But in
this tent, nobody knows who
I am. I’m lost here.”
When the militants did ar- Some other refugees from
rive, Mrs. Jawadia panicked. Mosul come by her tent
She knew they would con- seeking advice, but she is too
sider her practice witchcraft, frightened to reveal her in-
a charge the group often lev- sights. There have been re-
els against anyone who prac- ports of Islamic State spies
tices alternative medicine or infiltrating the refugee
spiritual healing in territo- camps.
ries they control in Iraq, “People are still scared, so
Syria and Libya. I can’t trust them,” she says.
“If they had known, they “That’s why I’m not doing
wouldn’t have asked me any fortunetelling yet.”
about what I do,” she says. In private, she admits that
“They would have just cut she sees brighter days ahead
my head off.” for herself. “I sense that
She had long dressed con- someone will come and take
servatively in public, with a me away from this camp,”
full, black head-covering that she says. “Not Mosul—some-
exposed only her eyes. Now where safe.”
she began covering her eyes —Tamer El-Ghobashy
with translucent fabric as contributed to this article.
MICHAEL M. PHILLIPS/THE WALL STREET JOURNAL
Sanaa Jawadia, who practiced fortunetelling, at a refugee camp in Iraq.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Friday, December 30, 2016 * *** THE WALL STREET JOURNAL.

WORLD NEWS

Colombia Takes Cautious Approach on Zika

Country confirms brain defects only after weeks of research; health workers visit remote areas for blood tests, genetic screenings
BY SARA SCHAEFER MUÑOZ
NEIVA, Colombia—Cases
of brain abnormalities in ba-
bies linked to the mosquito-
borne Zika virus have been
revised lower in Brazil, but
are on the rise in neighbor-
ing Colombia.
The divergent figures in
the countries, both of which
nitely to Zika.
The result is that Colom- Different Methods
bia has confirmed propor- Colombia, which has a more
tionally far fewer cases of conservative way of diagnosing
brain defects linked to the Zika-associated microcephaly, is
disease, even though it had now seeing a faster rise than
the second-largest Zika out- Brazil since early July.
break after Brazil.
Colombia found 67 cases 300 percent change
of abnormally developed
brains in babies caused by Colombia
Zika this year through early Brazil

SARA SCHAEFER MUÑOZ/THE WALL STREET JOURNAL

recorded high numbers of in-
fections, underscore the dif-
ferent approaches health au-
thorities have taken to get a
handle on a public-health cri-
sis after Zika hit the region
this past year and led to a
rash of babies born with ab-
normally small heads and
other defects.
Brazil initially counted
cases where it suspected the
virus had led to microceph-
aly in babies, racking up
more than 10,000 suspected
cases after it started tracking
in October 2015. Through
further testing, however, that
figure came down sharply to
2,228 confirmed cases, with
3,173 still under investiga-
tion, the health ministry
said.
Colombia took a far more
cautious approach—report-
ing cases only after weeks or
months of painstaking re-
search to confirm that a re-
ported birth defect was in-
deed an abnormality, and
then to link the defect defi-
December—but the trend is 200
growing. The vast majority
of those cases—49—have
been recorded since July.
In coming months, Colom- 100
bia’s number of confirmed
cases of Zika-linked micro-
cephaly is expected to rise
sharply, even if it doesn’t hit 0
an infection rate as high as J A S O N D
Brazil’s.
Sources: Brazil's Health Ministry;
Reported cases of micro- Colombian National Institute of Health
cephaly, though not con- Epidemiological Bulletins
firmed as having been caused THE WALL STREET JOURNAL. Colombian state epidemiologist Hernan Quijada checks a month-old baby during a home visit.
by Zika, are running high in
Colombia: There were 476 tional Institute of Health. ogists and geneticists de- On a recent day, Mr. Qui- report, parents’ blood sam-
cases reported by local doc- “But we have to do our scended on the state, only to jada traveled into the moun- ples, and keep looking.”
tors from Jan. 31 through homework diligently.” discover that two of the 12 tains of southern Colombia Colombia uses an in-
Nov. 12, compared with 110 Ms. Ospina has consis- reported actually had the de- before sitting down with depth process that involves a
cases reported in the period tently urged a studious, if fect. “We have to purge [sus- Yudi Guaca, 18 years old, battery of tests for infants,
in 2015, according to a recent time-consuming approach. pected] cases, one by one,” who gave birth to a baby girl home visits, genetic screen-
report by Colombian health As Colombia braced for a Ms. Ospina said. in July with brain damage so ings, and blood tests for
officials and the U.S. Centers wave of birth defects after That means sending epide- severe she died just hours pathogens other than Zika—
for Disease Control and Pre- the Zika virus spread here miologists such as Hernan later. such as toxoplasmosis, a par-
vention. earlier this year, officials Quijada deep into remote re- “This case could be re- asitic disease that cats can
“We see an excess of cases from the remote state of gions, where he and his team lated to the virus, but it transmit. It can take months
and, of course, logically our Casanare reported 12 cases travel by bus, horse or even could also be related to mal- and cost $1,000 to confirm
working hypothesis is that it of microcephaly in newborn dugout canoe. He examines nutrition, or both could be or discard each case.
is Zika,” said Martha Ospina, babies—high for the state’s each infant reported to have involved,” Mr. Quijada said. —Rogerio Jelmayer
director of Colombia’s Na- small population. Epidemiol- microcephaly. “We have to get the autopsy contributed to this article.

Argentina Reopens Beijing Fires Police

Kirchner Inquiry
BY RYAN DUBE
An Argentine appeals court
reopened an investigation into
allegations that former President
In Man’s Death
central bank to illegally trade BY CHUN HAN WONG stances of the crime were mi-
derivatives, perhaps costing the nor” and the officers showed
country billions of dollars. BEIJING—Authorities fired remorse.
Mrs. Kirchner has denied four Beijing police officers and The Beijing Public Security
wrongdoing, saying the cases disciplined seven others for Bureau said four of the arrest-
RODRIGO ABD/ASSOCIATED PRESS

Cristina Kirchner and other offi-
cials plotted with Iran to cover
up that nation’s alleged role in a
1994 bombing of a Jewish center.
The federal court’s decision,
published online Thursday, came
in response to an appeal from a
Jewish community institution in
Buenos Aires known as DAIA, al-
most two years after the prose-
cutor who filed the original crim-
inal complaint, Alberto Nisman,
was found dead in his apartment
from a gunshot wound.
“This is a significant day,”
Waldo Wolff, a congressman
and former vice president of
DAIA, told the TN Noticias TV
channel. “The only thing we
ask is that it is investigated.”
Mrs. Kirchner left office late
last year. On Tuesday, she was
indicted on allegations of cor-
ruption tied to public-works
projects in her home province of
Santa Cruz. Earlier in the year,
she was indicted in a case alleg-
ing that she ordered Argentina’s
are politically motivated. In the their roles in a Chinese man’s ing officers had been dis-
past, Iran has also denied in- death in police custody, in an missed and the fifth had been
volvement in the Buenos Aires incident that sparked protests reassigned from law-enforce-
bombing of the Argentine Isra- over a perceived lack of official ment duties.
elite Mutual Association, or accountability. Six of their superiors—in-
AMIA, which killed 85 people Thursday’s action came a cluding a deputy district chief—
and injured hundreds. week after Beijing prosecutors were disciplined through demo-
“Now they accuse me of decided not to pursue criminal tion, administrative censure or
covering up the AMIA attack The 1994 bombing of a Jewish center killed 85 people. charges against the arresting removal from their leadership
that occurred...22 and a half officers, triggering a fresh posts, Beijing police said.
years ago!” Mrs. Kirchner said Foreign Minister Héctor Tim- clared it unconstitutional. backlash. Lei Yang, a 29-year- The statement said the 11 of-
Thursday on Twitter. “The erman and others conspired An Argentine federal judge old environmental researcher, ficers were punished in accor-
only thing left to accuse me of with Iran to shield those re- halted investigations last year, died May 7 after being ar- dance with internal disciplinary
is Kennedy’s death.” sponsible for the bombing in saying there was no evidence of rested by five plainclothes offi- regulations but didn’t elabo-
Mr. Nisman, the former exchange for Iranian oil. a crime. DAIA appealed that de- cers during a prostitution raid rate. The officers couldn’t be
prosecutor, was found dead in The two countries signed a cision, saying there is new evi- at a foot-massage parlor. reached to comment.
his apartment in January 2015, memorandum of understand- dence from a recording between Prosecutors concluded in News of the disciplinary ac-
a day before he was scheduled ing in 2013 to create a Truth Mr. Timerman and the former December that the five arrest- tion came hours after the law-
to testify in Congress concern- Commission to probe the at- head of the AMIA center. ing officers had exceeded rea- yer representing Mr. Lei’s fam-
ing the allegations contained tack, which the Argentine Jew- The federal judge will be re- sonable limits in their efforts ily said his relatives had given
in his complaint. Investigators ish community said was an at- placed, the appeals court said to subdue Mr. Lei—who up all legal actions against the
have yet to determine if he tempt to whitewash Iran’s Thursday, and a new one will choked on his own vomit— five arresting officers, after
was murdered or committed involvement in the bombing. take over the case. Efforts to and contributed to his death talks with officials.
suicide, although many in Ar- The countries never followed contact Mrs. Kirchner and her with “improper” actions Discussions of Mr. Lei’s case
gentina believe he was killed. through on the joint investiga- lawyer weren’t successful. Mr. amounting to criminal negli- have been censored on the
The former prosecutor said tion, as Iran’s parliament Timerman’s lawyer, Alejandro gence. Weibo social-media platform.
in the complaint that he be- didn’t ratify the memorandum Rua, said he would appeal the They declined to press —Kersten Zhang
lieved Mrs. Kirchner, former and an Argentine court de- court’s decision. charges, saying the “circum- contributed to this article.

WORLD WATCH
GERMANY INDONESIA

Officials Free Man President Vows

Mistakenly Arrested
German authorities freed a man
mistakenly arrested in connection
with the truck attack on a Berlin
Christmas market, marking the
second high-profile release of a
misidentified suspect and leaving
questions about whether the at-
$
24999
www.zvoxaudio.com
tacker had accomplices. The 40-
year-old Tunisian arrested Wednes-
day based on information found in
the suspected attacker’s cellphone
To Fight Fake News
President Joko Widodo an-
nounced a push to rein in fake
news, which has raised ethnic
and sectarian tensions in Indone-
sia and strained ties with China.
The government will evaluate
websites and social-media ac-
counts for fake news and push for
social-media literacy, officials said.
Fake news has risen in tan-
dem with a hard-line Islamist

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THE WALL STREET JOURNAL.
DUCKS
Continued from Page One
That story was on parade one
recent Monday as a winding col-
umn of fast-walking ducks came
around the corner by the vine-
yard’s parking lot and visitors
started snapping away. The
birds made a beeline for a pond,
herded by flag-waving helpers.
Visitors wanting to follow them
had to move fast.
“It was one of the most un-
usual things I’ve ever witnessed
in my life,” said Ned Sturgeon, a
Cape Town retiree who came af-
ter a friend in New Zealand sent
him a video of the parade. He
made an unimpressed face at his
glass of Merlot and didn’t buy
any wine. “Wine you can get in
DRUGS
Continued from Page One
became too expensive, they
sought heroin and fentanyl, a
potent synthetic narcotic.
The VA is now struggling to
undo the damage. Hampered by
budgetary and bureaucratic ob-
stacles, it has failed to build a
rehabilitation program robust
enough to meet the overwhelm-
ing demand for treatment from
the tens of thousands of veter-
ans with opioid addiction, say
analysts who have studied the
issue. That has left many veter-
ans to fend for themselves, tap-
ping whatever resources they
can find to battle a chronic,
complex—and frequently fatal—
condition.
In Fayetteville—home to
Fort Bragg, the largest military
installation in the U.S.—47% of
opioid prescriptions are
abused, according to an April
study by Castlight Health Inc., a
health enterprise-software
company. Yet the VA health sys-
tem here has no residential ad-
diction-treatment program, no
inpatient opioid detoxification
facility and only five doctors in
a 21-county area able to dis-
pense medications like bu-
prenorphine, used to treat opi-
oid-use disorder.
“The Fayetteville VA is one
of the worst in the country,”
says Justin Minyard, a retired
Army first sergeant who has
battled opioid addiction and
testified before Congress about
the issue. “There’s no help for
veterans dealing with the ad-
diction they now have.”
Elizabeth Goolsby, director
of the Fayetteville VA Medical
Center, says Mr. Deatherage’s
“is not a typical story.” He
should have been sent to the lo-
cal hospital emergency room if
the VA’s crisis mental health
unit was full, she says.
The Fayetteville VA serves
the fastest-growing veteran
population in the nation, with
70,000 patients last year, up
from 42,000 in 2010. It is mov-
ing quickly to meet demand,
Ms. Goolsby says. It has added
facilities and reduced wait
times for primary care to four
days, from 29 days in 2014,
when an audit found the hospi-
tal had among the longest wait
times of 700 VA facilities in the
country.
Seeking alternatives
The VA is working to in-
crease treatment capacity na-
tionwide and expand alterna-
tives to the use of painkillers,
such as acupuncture, says Caro-
lyn Clancy, deputy undersecre-
tary for health for organiza-
tional excellence at the
Veterans Health Administra-
tion. The department also is ag-
gressively addressing the sup-
ply of prescription opioids.
Since 2012, the peak of opioid
prescribing, the VA has reduced
the number of its patients on
long-term or high-dose painkill-
ers by about a third.
“We owe it to the nation’s
veterans to help them end their
dependence on opioids,” said
Aftershocks
Substance abuse is higher among newer veterans, and the
Veterans Health Administration is treating a growing number
for opioid problems.
Substance-use disorder among veterans by service era
0 3
September 2001 or later
August 1990 to August 2001
(including Persian Gulf War)
May 1975 to July 1990
August 1964 to April 1975
(Vietnam era)
July 1964 or earlier
(pre-Vietnam era)
Source: Department of Veterans Affairs
* *
Cape Town. You can’t get those
sort of ducks.”
Thrice-daily duck parades
have helped goose Vergenoegd’s
visitor numbers to over 3,000 a
month from about 400 in late
2015. In January, the estate
hired a full-time social-media
manager, who works alongside a
duck breeder and duck master—
or “flock flagman”—who tend to
the duck dynasty.
Before the new owner took
over, it had “never been a super
trendy kind of property,” said
Cathy van Zyl, who has tasted
Vergenoegd wines for Platter’s
South African Wine Guide—the
country’s pre-eminent publica-
tion—and rates some highly.
Now the vineyard acts as “kind
of a bridge between the old
world and the new world.”
Vergenoegd’s “slow” style of
Robert Deatherage, a 30-year-old Army veteran who was injured in Afghanistan, stands outside a halfway house in Fayetteville, N.C.
Veterans Affairs Secretary Rob-
ert McDonald in a September
speech, “and break the down-
ward spiral that all too often
ends in homelessness, prison or
suicide.”
More than a decade of war
in Afghanistan and Iraq pro-
duced a flood of veterans with
severe physical and mental con-
ditions. Because of advances in
battlefield armor and combat
care, serious injuries now have
In Fayetteville, 47%
of opioid prescriptions
are abused, according
to an April study.
90% survival rates, compared
with 40% in the Vietnam War,
according to Rollin Gallagher,
director of the national pain
management program at the
VHA. Yet many survivors are
returning with permanent dam-
age, such as amputations and
spinal-cord injuries.
While many injured veterans
required opioids, VA medical
centers prescribed the drugs in
too many cases, and often for
months instead of days or
weeks, department officials
now say.
The VA’s Mr. McDonald said
veterans are 10 times as likely
as the average American to
abuse opioids and that such
abuse is the leading factor con-
tributing to veteran homeless-
ness.
Military communities are
magnets for veterans seeking
camaraderie. In Fayetteville, the
metropolitan population of
349,000 people includes 77,000
soldiers and civilians working
at Fort Bragg, 63,000 active-
duty family members and
98,000 veterans and their fam-
ily members. Units based here,
including the 82nd Airborne Di-
6 9 12 15%
12.7%
FROM PAGE ONE
old-world winemaking—mainly
Merlot, Cabernet Sauvignon and
Shiraz aged in oak barrels—
needs more time to mature in
the bottle because the estate’s
older, low-yielding vines pro-
duce very concentrated wines.
The winery’s tasting notes de-
scribe “subtle hints of vanilla
and cigar box” for its 2011 Cab-
ernet Sauvignon, as well as
“hints of cassis and lead pencil.”
It’s the ducks that attract
flocks of visitors such as Antoi-
nette Kidson, who came from a
nearby town to watch the morn-
ing waddle. “It’s a brilliant idea,
because they’re working and
getting rid of insects without
having to pay them,” she said.
“They don’t need a pension fund
or medical aid or sick leave.”
The winery years ago chose
the Indian Runner duck as most
IN DEPTH
vision, have deployed repeat-
edly to the Middle East since
9/11, sending home a steady
stream of severely injured sol-
diers.
Air Force veteran Ken Grady,
45, says the local VA prescribed
him OxyContin, Percocet, Vico-
din and fentanyl patches in the
2000s because of a series of
surgeries for back injuries. “The
VA made it so easy,” he says. “It
was endless, and I abused it.”
When he couldn’t get pre-
scriptions, Mr. Grady says he
could easily obtain opioids on
the street. He has been strug-
gling to get clean, and has
spent all but 65 days of the
past 2-½ years in VA-funded
treatment or in jail, as he is
currently.
During one stay at the VA’s
crisis mental health unit, a doc-
tor in another section pre-
scribed him Percocet for his
chronic back pain, he says.
“Please don’t give me that,” he
says he told the doctor. Mr.
Grady says he has sometimes
bought drugs from veterans
selling just-filled narcotic pre-
scriptions outside VA facilities.
Last month, Mr. Grady had
several teeth pulled by a VA
contractor, who prescribed him
Vicodin for the pain. Mr. Grady
says he protested, but “you
don’t have to twist my arm too
much.” He relapsed, bought
more pills on the street and
landed back in jail. He hoped to
be out by Christmas but his
mother says it is taking longer
than expected to find treatment
and a place to stay.
Ms. Goolsby, director of the
Fayetteville center, says VA fa-
cilities are sprawling public
places, and it would be regret-
table but not unheard of for
veterans to sell pills on campus.
She also says the VA has im-
proved its record-keeping to
better track prescriptions for
veterans with substance-use
disorder.
The VA system’s treatment
Number of patients seen by the
VHA for an opioid-use disorder
(fiscal years)
70 thousand
60
50
40
30
20
10
0 dispenses medication to 600
2006 ’16
THE WALL STREET JOURNAL.
suited to farm labor. Its upright
walk, slender build and herd
mentality make it more agile
and able to efficiently cover the
farm than other breeds, said
Vergenoegd breeder John Faure.
The new owner, Livia Group,
the private investment firm of
German businessman Peter Löw,
got the flock with the winery
and “we agreed on the ‘duck ap-
proach’ immediately,” said Dr.
Löw. “The Runner Ducks repre-
sent tradition, sustainability and
quality, since it is a very old
technique to combat pests while
not affecting the crops,” he said.
The ducks needed a month’s
training to learn the new rou-
tine. “In the beginning,” said
Denzel Matthys, the flock flag-
man, “they’d run inside the gar-
den and destroy all the vegeta-
bles.”
The Surge
Painkiller prescriptions from the Department of Veterans Affairs
soared as troops returned from Afghanistan and Iraq, then declined
after the agency sought to taper their use in 2013.
Opioid prescriptions from the VA, by drug type
7 million prescriptions
6
5
4 Oxycodone
3 Morphine
2 Oxycodone
1
0 Hydrocodone
FY 2000
Note: Codeine and hydrocodone are not charted.
Source: Department of Veterans Affairs
options are limited. The Fay-
etteville VA has an outpatient
alcohol detox unit but no opioid
detox unit. It refers veterans to
other local facilities for detox,
the initial period of up to about
a week when an addict comes
off drugs, endures withdrawal
and is stabilized. The VA then
refers them to its outpatient
substance-abuse treatment pro-
gram, the much longer process
of overcoming addiction and
underlying issues through ther-
apy, group programs and medi-
cation. The outpatient program
has 1,000 visits a month, and
saw a total of 2,800 new pa-
tients from January to October
of this year.
Addicted veterans can be re-
ferred to one of the VA’s 43 in-
patient rehab centers around
the country, which combined
have 906 beds, according to a
2014 VA audit. Waits are usu-
ally longer than 30 days,
though, which deters referrals,
and beds often stay empty be-
cause of lack of staffing, the au-
dit said.
The nearest inpatient VA fa-
cility to Fayetteville is in Salis-
bury, N.C., nearly three hours
away.
Given the scarcity of VA ser-
vices, addicted veterans often
turn to public and private pro-
viders, which typically are also
overwhelmed by demand. Cape
Fear Valley Health System has a
contract to provide mental-
health services for the county,
and has 16 detox beds, which
stay full.
Users seeking methadone or
other medication to treat their
addiction mainly rely on a
handful of private clinics. The
largest is the Carolina Treat-
ment Center, in an office park
behind the hospital. The clinic
patients each day, with lines
forming before the clinic opens
Friday, December 30, 2016 | A9
These days, the ducks waddle
into the vineyard at about 6 a.m.
to eat snails, slugs and other de-
lectable pests, returning to their
as much as snails.
Managers are still working on
how to convert visitors, who
don’t pay to see the parade, into
quarters about three hours later. spenders. The vineyard has
Around 10 a.m., they parade added activities such as olive-oil
to the dam to bathe and relax. blending. A gift shop offers
They march back just after stuffed duck toys, duck cookies
noon, parading again at 3:30. and fresh duck eggs.
“This is a very funny type of The restaurant stopped serv-
duck,” said Johan van den Broek, ing duck, said Ms. Jacobs, the
a Johannesburg retiree who winemaker, because visitors
came for the morning parade. were appalled they might be
That afternoon, the ducks re- eating the parading ducks’ old
quired more coaxing, with some mates. “People don’t believe you
needing to be chased from the if you say, ‘It’s not our ducks.’ ”
pond by canoe. Once the ducks
were gathered, the flock flag- ONLINE
man led and his helpers with
white flags shooed ducks into Watch a video of
line at the back and sides.
During harvest, the ducks
take mandatory time off be-
WSJ
.COM
the parade of
ducks at
wsj.com/
cause they like grapes about ahedvideo.
there was a four-month wait
for residential treatment. The
VA continued to prescribe opi-
oids for his injuries.
He overdosed six times, once
at his mother’s house in Okla-
homa. She has trained as an
emergency medical technician
and revived him. “That’s how
my family found out,” he says.
“They thought I was just de-
pressed.”
His mother, Louise Johnson,
54, says her son had been fool-
ing no one since he came home
with a blank stare and a gallon-
sized Ziploc bag full of VA pre-
scriptions.
Mr. Deatherage would call
home during his 18 months in
Afghanistan and tell her horror
stories, like cleaning up after a
TRAVIS DOVE FOR THE WALL STREET JOURNAL
bomb severed his buddy’s leg
and fatally shooting a civilian
whom he feared was carrying a
bomb. “The things that he saw
and the things that he did hurt
him deep,” she says.
She says she was close to
finding a VA facility for him to
check into when he left town.
Mr. Deatherage says he
bounced around Texas awhile
before heading to his brother’s
house west of Fayetteville in
early 2015. By then he could no
longer get pills from the VA be-
cause of tighter prescribing
policies. He got kicked out of
his brother’s house after steal-
ing his nephew’s prescription
cough syrup and replacing it
with Robitussin. He started us-
ing heroin, which was cheap
and plentiful.
Fentanyl
An arrest
Mr. Deatherage was arrested
for theft and other charges, and
spent stretches of the past two
Acetaminophen/ years homeless or in jail. He was
referred earlier this year to one
Acetaminophen/ of two area veterans treatment
courts, which allow low-level of-
fenders to avoid prison by com-
’16 pleting programs that address
their underlying conditions.
THE WALL STREET JOURNAL. In court this fall, Mr. Death-
erage, looking thin and dishev-
at 5 a.m. eled, told the judge he was
Alan Shay Davis, a moon- sleeping in his car and spend-
lighting obstetrician, started ing half of his $3,000 monthly
filling in as the medical director disability check on child sup-
three years ago after a loved port for his two sons, and the
one became addicted to opi- other half on heroin. Court staff
oids. “I’ve been a part of the arranged for him to start medi-
problem for some patients,” he cation at Carolina Treatment
says, by prescribing opioids in Center, and to stay at a local
his obstetric practice. “Hope- halfway house that has a fed-
fully now I’m part of the solu- eral contract to serve up to 18
tion.” homeless veterans at a time.
One of Dr. Davis’s patients at There, he made friends with
the clinic is Mr. Deatherage, another veteran in the court
who is taking Vivitrol, a long- program, Reggie Scott. In an in-
acting drug that attaches to re- terview in the fall, Mr. Scott
ceptors in the body and blocks said he was grateful for the
the effects of opioids. VA’s help connecting him to
Shortly after enlisting in treatment. “I’d be dead without
2006, Mr. Deatherage was pre- them,” he said. But he still felt
scribed Percocet for a back in- unmoored and prone to relapse.
jury from paratrooper training. In October, Mr. Deatherage
He says he took pills during and Mr. Scott used heroin to-
most of his deployment in Af- gether, and both went to jail
ghanistan in 2009 and 2010. under the terms of the court
His armored vehicle was program.
bombed repeatedly while clear- Mr. Scott got out in October
ing roads in remote areas. He and kept using. He overdosed
suffered back, neck, facial and on heroin on Dec. 9 and went
shoulder injuries, and cracked back to jail. He says he’s going
his skull in an explosion that he to drop out of the veterans
later learned caused a trau- treatment program and serve
matic brain injury. his original sentence.
“I got blown up seven In court last week, Mr. Scott
times,” he says. “I would go see shuffled out of a holding cell in
my medic, get bandaged, get shackles to address other ad-
Percs and get on with it.” dicted veterans, his father and
Back home, he was pre- his mother, who was crying in
scribed opioids for his injuries the front row. “I want to give
while stationed on the West up. I’m done,” Mr. Scott said. “I
Coast and in Hawaii. As his tol- don’t know if I’ll ever quit using
erance increased, he started drugs. But I do love y’all, I do.”
buying pills from other soldiers. “Love you, Reggie!” several
He lost his marriage, his sav- veterans said.
ings and his job, and was medi- Mr. Deatherage was in the
cally discharged for substance courtroom. He got out of jail in
use in February 2014. November and has been sober
“They threw me out there more than two months. He
and said, ‘Take care of your- starts a 10-week training pro-
self,’ ” he says. “So I did.” gram in January to be a fore-
Mr. Deatherage says he man at a natural-gas company.
sought substance-abuse treat- He is optimistic that he will
ment from the VA over the finally get clean. “I can’t worry
years, including the spring of about Reggie,” he says. “I’ve
2014 when he says he was told got to focus on me.”
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A9A | Friday, December 30, 2016
GREATER NEW YORK
MTA Drills Down
On Subway Costs
BY MIKE VILENSKY
Gov. Andrew Cuomo said
earlier this month that opening
the first phase of the Second
Avenue subway on Jan. 1 will
help reaffirm confidence in gov-
ernment. For skeptics, the
roughly $4 billion in public
costs and decades of delays
make the project a symbol of
government’s shortcomings.
Now the Metropolitan
Transportation Authority is re-
assessing how it will develop
the final 13 stations of the proj-
ect amid criticism that its con-
struction costs exceeded those
of comparable undertakings
around the world and that the
first phase took too long.
MTA Chairman Thomas
Prendergast said in an inter-
view that for the second phase
he is aiming to use a “design-
build” model, a process that is
intended to save time by rely-
ing on a single firm to design
and construct a project. He is
also planning to negotiate with
labor unions, and MTA officials
said engineers will explore new
and more efficient techniques
in tunneling.
“We always do a looking-
back exercise to see, could we
have done something better,
and we’re certainly doing that
now,” said Mr. Prendergast, who
has been chairman since 2013.
He wouldn’t say if the $4 bil-
lion price tag on the first phase
was too high. “You’re never go-
ing to hear me say I’m comfort-
able with a cost,” he said.
City Ruling
Lets Work
Resume at
Tower Site
BY JOSH BARBANEL
A stop-work order has been
lifted on a 521-foot-tall condo-
minium tower at East 88th
Street and Third Avenue in
Manhattan, allowing construc-
tion to restart despite efforts by
local elected officials and com-
munity groups to halt it.
Work on the building, known
as 180 East 88th Street, was
stopped almost as soon as it be-
gan in May. The move followed
complaints that the developer
created a separate 4-foot-wide
lot in order to sidestep zoning
rules that would have limited
the height of the building.
The city found that the lot
was improper. But the devel-
oper, DDG, then submitted re-
vised plans, changing the 4-
foot-wide lot to a 10-foot-wide
lot. The city ruled that the new
plans passed muster, despite a
protest filed by opponents.
Carnegie Hill Neighbors, a
preservation group said it
planned to file an administra-
tive appeal, and is preparing to
go to court if necessary to stop
the project.
“I am not sure what kind of
building you can build on a 10-
by-22-foot lot but I sure
wouldn’t want to live there,’
said Council member Ben Kal-
los, a Manhattan Democrat,
who is opposing the project.
Michele de Milly, a spokes-
woman for DDG, said the com-
pany now hoped to complete
construction in 2018, as it had
long planned. “We are pleased
that the stop-work order has
been lifted following the De-
partment of Building’s com-
prehensive audit,” she said.
ALEXANDER COHN/THE WALL STREET JOURNAL
The construction site at 180
East 88th Street in Manhattan.
Policy makers, transit advo-
cates and researchers aren’t op-
timistic. The MTA estimates the
second phase, an additional
three stations, will cost $6 bil-
lion. The agency hasn’t broken
ground on it yet.
The MTA needs to go “top to
bottom on why construction
costs are so high,” said Jon Or-
cutt, a spokesman for the New
York transit advocacy group
TransitCenter. Mr. Orcutt said
the lag between the first and
second phases bodes ill for the
rest of the project.
$6b
Estimated cost of the next phase
of the Second Avenue subway
Mr. Prendergast said he
hopes to bring down the esti-
mate on phase two, and that
he regretted that the second
phase wasn’t under way. “Ide-
ally we’d like to be in a posi-
tion where if we’re building
something in phases, we have
the money lined up, and the
political support…to just con-
tinue on,” he said.
A series of essays by re-
searcher Alon Levy recently cir-
culated within transit circles
highlighted the cost difference
between the Second Avenue
subway and similar projects. In
the essays, which have been
Confetti rained down on the Marching Cobras band in Times Square on Thursday, in a test run for New Year’s Eve. Below, NYPD counterterrorism officers on patrol.
Police Amp Up Security for New Year’s Eve
BY MELANIE GRAYCE WEST
Security for the New Year’s
Eve celebration in Times Square
will be the most extensive ever,
with some 7,000 police officers
assigned and 65 sand-filled gar-
bage trucks stationed to block
city streets, New York City offi-
cials said Thursday.
The enhanced security—and
specifically the placement of
sanitation trucks and about 100
other vehicles around Times
Square to close off streets and
serve as bomb barriers—are
largely in response to recent
terrorist attacks in Berlin and
Nice, France. In those attacks,
terrorists used large trucks to
drive into crowded areas, killing
dozens.
“We are going to have one of
the most well-policed, best-pro-
tected events in one of the saf-
est venues in the entire world,”
Police Commissioner James
O’Neill said.
At this time, there are “no
direct concerns related to ter-
rorism, to Times Square specifi-
cally or New Year’s Eve in gen-
eral,” Mr. O’Neill said.
NY
cited by politicians and non-
profits, Mr. Levy notes that the
Second Avenue project’s first
phase cost $1.7 billion per kilo-
meter for its roughly 3-kilome-
ter stretch.
The price tag for perhaps the
most comparable contemporary
project, the Crossrail metro in
London still under construction,
is $1 billion a kilometer for its
more than 20 kilometers, and a
9-kilometer metro line in Paris
completed in 2003 cost $230
million a kilometer, according
to the analysis.
In the interview, Mr. Pren-
dergast questioned cost-per-ki-
lometer comparisons. He said
one track mile in New York car-
ries more people than it does in
other cities, increasing the proj-
ect’s return on investment.
He also said labor costs are
higher in New York, pointing to
worker health-care costs that
aren’t an issue in countries
where the national government
covers them. He also cited col-
lective-bargaining agreements
with strict rules about worker
hours and pay and said he
hopes there will be some rule
changes for the next phases.
“Labor is not the problem,”
said Rich Fitzsimmons, a
spokesman for the “Sandhogs,”
the subway construction worker
union. He said costs could have
been cut if the subway had been
dug deeper so laborers weren’t
working around utility lines and
other obstacles overseen by
various government agencies
that added time and complexi-
Still, there are extra precau-
tions this year, both for Times
Square and elsewhere. Festivi-
ties in Central Park and the Co-
ney Island boardwalk will have
additional police presence and
street closures, officials said.
Highly visible heavy-weap-
ons teams will be deployed in
A sign is installed at the 86th Street station of the Second Avenue subway line, which opens Sunday.
The Prendergast
Perspective
MTA Chairman Thomas
Prendergast on the Second
Avenue subway project
WSJ: Why haven’t you
started phase two yet, and
did you hope to overlap the
phases rather than work in
piecemeal?
The primary reason is do-
ing all that is needed to
get the funding together.
Ideally we’d like to be in a
position where if we’re
building something in
phases, we have the money
lined up.
ties to the project.
For his part, Mr. Cuomo, who
oversees the MTA, has said that
he pushed to keep the agency to
a tight schedule since taking of-
fice in 2011 and that if he could
Times Square, as will counter-
terrorism officers equipped
with long guns and bomb-sniff-
ing dogs. Throughout Saturday
and into the night, detailed per-
sonnel will sweep hotels, the-
aters and parking garages for
threats and suspicious pack-
ages, according to authorities.
* * THE WALL STREET JOURNAL.
The figure $6 billion has been
thrown out by federal offi-
cials. Is that an accurate esti-
mate for phase two, and are
you comfortable with that
number?
Is it an estimate at this
time? Yes. Is it an accurate
estimate? As we do prelimi-
nary designs and engineer-
ing, those
numbers get
refined.
You’re never
going to hear
me say pub-
licly I’m com-
fortable with Thomas
any price, be- Prendergast
cause that
tells the contractors what
they can bid to...we need to
go back and redo the project, “I
wouldn’t have done it the way
we did it.”
David Gunn, a transit expert
who ran the New York City sub-
ways in the late 1980s, said he
5THINGS
To Buy in the City
For the Celebration
The official price of admission
to the Times Square New
Year’s Eve ball-drop festivities
is free. But the expected two
million revelers will have other
things to spend their money on.
$4 for a pair of 2017 nov-
1 elty glasses from a Times
Square street vendor. Partying
with friends? The vendor
is happy to cut a deal—three
pairs for 10 bucks.
$10 for a bottle of Bare-
2 foot Bubbly, the “official”
sparkling wine of the Times
Square festivities. But you
might want to toast before or
after hitting the streets. Public
drinking can result in a sum-
mons, and public officials say
any alcohol will be confiscated.
Barefoot Bubbly nevertheless
hopes to benefit from the expo-
JOHN TAGGART/BLOOMBERG NEWS; ANDREW LAMBERSON FOR WSJ )BELOW)
get that figure as low as
possible.
U.S. Rep. Carolyn Maloney
gives the project periodic let-
ter grades. What grade would
you give it?
It’s a conflict for the person
being graded to grade them-
selves. I’ll let, over a period
of time, the elected officials
and our customers give us
the grade they think we de-
serve, but that’s more than
just in the first six months.
We don’t have to wait five
years for it, but I think a
year into this...has it pro-
vided a benefit and made a
difference in New York? I
think there will be a strong
response that it has.
recalled planning the project
when he was in charge. “I can’t
tell you what’s happened since
then,” he said this week, “but it
shouldn’t have taken 30 more
years.”
ALBA VIGARAY/EUROPEAN PRESSPHOTO AGENCY; ANDREW KELLY/REUTERS (BELOW)
sure that comes with being a
sponsor, via the Times Square
Alliance, of the ball-drop event.
$19.99 for a package of 17
3 adult disposable diapers at
a Times Square Duane Reade.
The item is a popular seller on
the big night since revelers are
often stuck in place for hours
waiting for midnight. And there
are no portable toilets in the
“pens” where they must gather,
police officials note.
$375 to attend the party,
4 with unlimited food and
drink, at either of the two Times
Square Applebee’s locations. The
restaurants say they expect to
sell out of their combined 800
spots. The price for kids: $250.
$8,000 for a minimum
5 three-night stay for one of
the “ball-drop rooms” at the
New York Marriott Marquis in
Times Square. The rooms are so
named because they offer a di-
rect view of the festivities.
—Charles Passy
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * NY Friday, December 30, 2016 | A9B

GREATER NEW YORK

After ‘Raw’
Confusion,
Restaurant
Rebrands
BY CHARLES PASSY

What’s in a name? For one

Manhattan restaurateur, the an-
swer is a costly lesson in
branding.
Vincent Chirico is spending
$20,000 to make name changes
to the signage, menus and web-
site for his one-month-old

AGATON STROM FOR THE WALL STREET JOURNAL (3)

Greenwich Village restaurant.
When it opened, Mr. Chirico
called it Raw New York. Now,
he is in the process of re-chris-
tening it as Coarse.
Mr. Chirico says confusion
with the original name reigned:
Customers assumed his restau-
rant specialized in raw food, a
growing culinary movement
that emphasizes noncooked
fare. But the restaurant serves
plenty of cooked dishes.
“I realized very quickly this Fatima Almonle picks up orders from the kitchen at Evergreen Diner, which is closing on Saturday. Owner Ilias Argenas, behind the counter, with his customers.
name could be suicidal,” said

Diners Struggle for Spot in NYC Food Scene

Mr. Chirico, adding that pa-
trons also wrongly thought the
restaurant focused primarily on
seafood, as in a raw bar.
Mr. Chirico said he had orig-
inally used the name “Raw” to
Evergreen on West 47th is latest establishment to close its doors as rents rise and tastes change
signal a less-is-more concept—
the restaurant has simple décor BY CHARLES PASSY New York restaurant pa-
and its cooks double as waiters. trons are seeking out fast-ca-
“I love the word ‘raw’,” he said. It’s lights out for another sual chain establishments
Mr. Chirico said the new New York diner. both for their on-the-go con-
name still conveys the essence Evergreen Diner, a 92-seat venience and quality of food.
of his concept, plus he liked fixture on West 47th Street By contrast, mom-and-pop
the play on words, since for nearly 25 years, will shut diners, with their lengthy
“coarse” sounds like “course,” its doors for good on Satur- menus of comfort-minded fa-
as in a portion of a meal. day, marking vorites, are increasingly seen
“I wanted to lose the name FOOD & the latest in a as a dated concept.
‘Raw’ but I wanted to keep CULTURE series of recent Adding to the challenge:
some connection to it,” said Mr. diner demises As much as diners would like
Chirico, who is also the chef throughout the to boost their menu prices to
and owner of Vai, a Mediterra- metropolitan area. Other clo- mitigate rising costs, includ-
nean restaurant on the Upper sures of note since 2015 have ing rent, patrons have a limit
West Side. Mr. Chirico added included the Market Diner, a for what they’re willing to
he came up with the new name Hell’s Kitchen favorite since pay at such homey spots.
after consulting a friend who the early ’60s, and the Del “If I charge $20 [for an
works in branding. Rio Diner, a popular Brooklyn ker who works in Midtown, entree], it’s not a diner,” said
It is too early to tell if the hangout that dated to 1976. praised the restaurant as a Mr. Argenas, who said he
switch will result in more busi- The New York City De- place that offers good food hopes to find another loca-
ness. Still, Mr. Chirico is far partment of Health & Mental at a reasonable price (most tion and relaunch Evergreen.
from the only restaurateur who Hygiene, the agency that items are under $15) in a Still, some diners in the
has changed the name of an es- monitors dining spots in the convivial atmosphere. metropolitan area find a way
tablishment. five boroughs, said there are “There’s nothing stuffy to buck the trend. A case in
Fast-food giant Kentucky 378 restaurants that identify about it,” said Mr. Pellittieri point: the Park Wood Diner
Fried Chicken rebranded itself themselves as a diner or cof- as he polished off his usual Restaurant in Maplewood,
as KFC more than two decades fee shop. While the city can’t lunchtime order—a bacon- N.J., says it has been able to
ago. But examples abound on provide historical compari- and-onion omelet paired stay busy by innovating—in
the New York independent din- sons, at least one published with a vanilla shake—during particular, the diner now of-
ing scene, too. Moonstruck, a report said the number was one of the restaurant’s final fers a full slate of gourmet
popular Chelsea restaurant, about 1,000 a couple of de- days. salads.
changed its name to the Rail cades ago. Evergreen owners say the Ultimately, say some diner
Line Diner after an extensive The situation, which owes closure wasn’t their decision, fans, diners deserve to sur-
renovation in 2013. The new to both changing dining hab- explaining that the building’s vive, if not prosper, on their
moniker played off the dining its and rising rents, has owner wouldn’t continue own old-fashioned merits.
spot’s proximity to the High diner fans crying in their their lease. The owners add Celebrity chef Bobby Flay, a
Line park, which opened in 2009 split-pea soup, to name one that they were open to nego- New York native, said he ap-
on the site of a former rail line. of the most popular items at tiating an increase to their LLC, the property that incor- Given New York’s redevel- preciates the fact that diners
Name changes can work if a the Evergreen. True to the current rent, which is nearly porates Evergreen, said the opment fervor, Evergreen is serve just about anything at
restaurant doesn’t have too diner ethos, Evergreen offers $25,000 a month. overall parcel is slated for far from the only restaurant any time of the day, from
much invested in its current a voluminous menu that in- “We have loyal customers. redevelopment. The decision to be forced to close for such spaghetti and meatballs to
branding and feels it needs to cludes breakfast fare, sand- It’s going to kill me,” said Il- not to renew Evergreen’s reasons. Still, restaurant-in- “the most perfect” plate of
reposition itself, says Bret wiches of all kinds and Ital- ias Argenas, one of the own- lease wasn’t intended as a dustry observers and insid- sunny-side-up eggs.
Thorn, a senior editor with Na- ian and Greek specialties. ers, of the closure. slight on the restaurant or ers say a host of other chal- Diners, said Mr. Flay, are
tion’s Restaurant News, an in- Evergreen regular Michael David Wrobel, an attorney on diners in general, Mr. lenges are hastening the “the reliable, good friend” of
dustry publication. Pellittieri, an insurance bro- who represents Capital 47 Wrobel added. diner’s demise. the restaurant business.

GREATER NEW YORK WATCH

Investors in Public Housing to Speed Repairs
BY LAURA KUSISTO NEW YORK NEW JERSEY

New York City’s housing au- Crime Increased 32% Shooting of Suspect
thority is bringing in private in- In Parks Over Summer Justified: Authorities
vestors to repair some 1,400
units of public housing in the Crime in New York City parks A Hackensack police officer
Far Rockaways, the first step in was up 32% in the third quarter, was justified in shooting a knife-
what the agency hopes will be a according to NYC Park Advocates, wielding murder suspect last year,
program to attract hundreds of a watchdog group. an investigation by county and
millions of dollars in invest- The number of murders, rapes, state authorities has concluded.
ment in its aging housing stock. robberies, burglaries, felony assaults According to a report released
Under the deal, the New and other serious crimes rose by Thursday by the Bergen County
York City Housing Authority more than 104 incidents to 495 to- prosecutor’s office, the unnamed
will join with three private tal crimes, NYPD data showed. officer was justified in using
companies, which will take over There were six homicides in the pe- deadly force against Jose San-
the daily management and riod from July through September. tos-Alvarez after confronting him
ownership of the buildings in The statistics don’t include in a house in Hackensack on Oct.
Ocean Bay, a sprawling public- crimes in Manhattan’s Central 15, 2015.
MARIO TAMA/GETTY IMAGES

housing complex near the Park, which has its own precinct. The state attorney general’s
beach. As of Dec. 25, there were 78 seri- office concurred with the report’s
NYCHA will continue to own ous crimes in Central Park. conclusion.
the land, a stake in the build- —Melanie Grayce West —Associated Press
ings, and retain oversight of the
buildings’ management, ensur-
ing the units remain affordable
to low-income families. Anna Jones and her granddaughter in an unheated apartment in Ocean Bay after superstorm Sandy in 2012.
The private partnership of
RDC Construction, which con- building. developments it owns, but whims of private management
sists of MDG Design + Con- Kitchens and bathrooms in faces a $17 billion repair back- companies, which have less ac-
struction and Wavecrest Man- the residents’ units will be log, according to Ms. Ferreira. countability than public-hous-
agement and a couple of completely redone, as will the Officials said attracting private ing authorities.
nonprofits that will provide so- lobbies, hallways and building assistance is the only way to San Francisco’s housing au-
cial services to residents, will exteriors. New elevators and begin to tackle the repairs, thority has done so many deals
convert the buildings to the
Section 8 federal rent-subsidy
security cameras will be in-
stalled.
which including aging roofs,
boilers and elevators.
that it will own just 60 units
when all of the transactions are
Peace on Earth
program. “This is a level of repair to The federal government finished, down from 6,500 sev-
The partners will pay NY-
CHA $43 million for the prop-
residents that they would not
be able to receive through nor-
launched the so-called Rental
Assistance Demonstration Pro-
eral years ago.
Ms. Ferreira said last year
and Goodwill
erties, which will be applied to-
ward the housing authority’s
mal [channels]. We wouldn’t be
able to do this [using public
gram in 2012. A recent report
found it had attracted $2.5 bil-
HUD made changes to the pro-
gram that improved protection
Toward Everyone
operating deficit, the agency dollars] within 200 years,” said lion of financing for repairs to for residents and made the city
said. Nicole Ferreira, vice president 19,000 public-housing units as more comfortable with the pro-
In all, NYCHA said the deal for development at NYCHA. of October 2015. gram.
will attract a total of $325 mil- The authority receives $300 New York was slow to par- The authority has applied to ®
lion of badly needed invest- million from the federal De- ticipate in the program, which the federal government to join
ment in the properties, includ- partment of Housing and Urban critics say amounts to the pri- with private developers on an Guided Tours Since 1952
ing $190 million of funds Development for long-term vatization of public housing additional 5,200 units of hous-
related to superstorm Sandy re- maintenance of all of the 328 and subjects tenants to the ing under the program.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Friday, December 30, 2016
‘Erdmann’: Pricelessly Preposterous
Parental Guidance
FOR A WORKING description of
“Toni Erdmann,” let’s say it’s
about a father, played by Peter Si-
monischek, who stalks his daugh-
ter, Ines (Sandra Hüller), in order
to save her. That doesn’t begin to
do justice to Maren Ade’s bril-
liantly funny and moving comedy,
in German with English subtitles,
but this is a story whose dramatic
wellsprings are as inexplicable as
they are original. There’s never
been anything quite like the bor-
derline-surreal intersections be-
tween the father, a towering ec-
centric—though he isn’t all that
tall—and the scarily rigid daugh-
ter, a terrific comic invention in
her own right.
One thing that can and should
be explained at the outset is the ti-
tle. The father is Winfried, not
Toni; that is, he doesn’t become
Toni until he reinvents himself an
hour or so into the action, which
held me in a state of delight and
expectation throughout its 162
minutes. Our first encounter with
Winfried, a retired music teacher,
is at the door of his pleasant
house in Germany. He’s pleasant
too, an aging man living with an
old blind dog he loves passion-
ately, though he does have a pen-
chant for putting people on by
wearing celluloid teeth, tossing off
bizarre jokes and playing with
handcuffs. And Ines seems close
enough to the parameters of nor-
mality when she shows up for a
brief visit en route from Shanghai
to Romania, where she works as a
corporate consultant.
But Winfried sees in her what
we see—a thoroughly globalized,
strikingly chic woman with ro-
botic tics who is wed to her mo-
bile phone and so tightly wound
that she looks like she might
break at any moment. Concerned
as any good father might be, but
indifferent to conventional bound-
aries, he follows her to Bucharest
and settles in as her extremely un-
welcome house guest. Still, Win-
fried is on his relatively good be-
havior until he understands the
extent to which Ines’s work is de-
vouring her life and destroying
her humanity. That’s when he un-
leashes the only weapon he has—
magisterial zaniness in the person
of Toni Erdmann, an alter ego
with a fright wig and a mad glint
in his eye, who appears out of no-
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LIFE&ARTS
Above, Peter Simonischek; right, Mr. Simonischek and
Sandra Hüller in Maren Ade’s German comedy
where to his all-too-knowing
daughter’s dismay. Passing himself
off to Ines’s associates as the life
trainer of the CEO she is working
with, Toni alternately horrifies
and mesmerizes his poor daughter
with outlandish tales and gro-
tesque charm—which many of
those around her, including the
CEO, find genuinely charming.
The filmmaker, Ms. Ade, has
said she based Toni loosely on her
father, who liked to stick false
teeth in his mouth for comic ef-
fect. But Toni could just as well be
the spiritual descendant of Boudu,
the proto-hippie, played by Michel
Simon, who scandalizes a bour-
geois Parisian family in Jean
Renoir’s 1932 comedy “Boudu
Saved From Drowning.” (Or of
Clare Quilty as played, in several
malign manifestations, by Peter
Sellers in Stanley Kubrick’s “Lol-
ita.”) And loose is the byword in
this film, even though its structure
juxtaposes Toni’s unchained—or
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NY THE WALL STREET JOURNAL.
FILM REVIEW | Joe Morgenstern
uncuffed—spirit with
the repressions of cor-
porate life. The es-
sence of “Toni Erd-
mann” lies in the ebb
and flow of the father-
daughter relationship,
which must have been
a trial when Ines was a
child—practical-joker
dads being deep em- SONY PICTURES CLASSICS (2)
barrassments—and is
sorely tested now.
But the relationship
also strengthens in the
course of the test. It’s
such lovely fun to see
Ines, the perfect team
player, struggling against, yet wailer “The Greatest Love of All.” But Ms. Hüller’s performance is
learning from, her father’s anar- In a film defined by surpassing equally remarkable, and consis-
chic example. Her struggles yield performances, Mr. Simonischek’s tently brave. Ines, too, becomes a
two of the movie’s most hilarious Toni is inevitably the dominant commanding figure, in her tor-
scenes—meaning two of the most presence, whether he’s recounting tured way. She’s funny because she
hilarious scenes I’ve seen in a very the absurdist details of a turtle dy- doesn’t dare laugh at her father’s
long while. One involves a naked ing of a heart attack or encased in lunacy. Trying desperately to tran-
birthday party, the other a rendi- an enormous Bulgarian costume scend her taut self, she explores
tion of the Whitney Houston meant to scare evil spirits away. abandon without abandon.
TELEVISION REVIEW | Dorothy Rabinowitz
Sidney Lumet and Al Pacino, the film provides, with anchor movie was based on the real-
during the filming of ‘Dog Day Walter Cronkite, in classic life case of a married Vietnam
Afternoon’ form, crisply announcing that War veteran with a taste for
we were about to be taken to extramarital sex with men,
of the City” and “The Verdict” the trial of Socrates. who tried to rob a bank to fi-
was not surprisingly a man Next to the character of nance a sex-change operation
concerned with moral com- its subject and the story he for his boyfriend. He didn’t
plexity. One, also, whose atti- tells, nothing in this film by want somebody in the bal-
tudes mirrored those of the Nancy Buirski is more rivet- cony of a movie theater
world that had formed him. ing than its abundance of shouting “hey you fags!” at
There, talking to the police clips from Lumet movies, the screen, Lumet recalls, and
was not popular—“in my usually the best scenes and in this effort at humanizing
bringing-up, a rat is a rat”— all the more seductive in this the character the film had
which fact caused him to feel context. Not that Paul New- succeeded, thanks to Al Pa-
ambivalence about the lead man’s final address to the cino’s performance.
character of his film “Prince jury in “The Verdict” Like other filmmakers, Lu-
of the City” (1981), based on (1982)—in his role as the met had had encounters with
the actual story of police lieu- ambulance-chasing attorney the political terrors of the
tenant Robert Leuci, who had who has recovered his sense 1950s, been fingered—
collected and revealed evi- of purpose though his deter- falsely—in the American Le-
dence of police corruption in mined effort to win justice gion Magazine as having at-
New York City. He wasn’t for a client—ever needed any tended Communist meetings.
WITHIN MOMENTS of this quite certain how he felt improving on. Here it is Under threats that the spon-
film’s beginning, its subject about this character, Lumet again, smashing as ever. So sors of one of his shows
describes in terrifying detail a says, until he had seen the are scenes from the memora- might be forced to drop him,
crime that took place on a rushes and realized that he ble if didactic “12 Angry he agreed to meet with the
passenger train carrying had made a hero of him. Men” (1957), about a jury accusers—who quickly backed
American servicemen like
himself in wartime India—the
In the Lower East Side im-
migrant world that formed
swayed by a single man of
conscience: a film whose
down. But walking to the
meeting, he had felt the full
first taste of this biography’s him, no one had money—but cast included, in addition to force of the threat that con-
probing complexity. He had young Sidney Lumet, whose star Henry Fonda, some of fronted anyone accused—not
done nothing about this crime father acted in Yiddish the- the nation’s best-known and only would you lose the job
he witnessed when he was a
young soldier in 1943, Sidney
ater, managed to become a
regular earner as a child ac-
future best-known character
actors—Lee J. Cobb, Jack
you had, you wouldn’t work
anywhere, your career was
Lumet tells his interviewer—a tor. He had, he says in this in- Klugman, Martin Balsam and over. From that experience, he
subject he returns to near the terview filmed in 2008 (three E.G. Marshall among them. had come to understand how
film’s end. He had thought to years before his death), per- He never deliberately set some in Hollywood had ended
try, to interfere. But he could haps acquired his taste for the out to deliver a particular so- up cooperating with investiga-
not, he knew, without losing operatic evident in some of cial message or call for justice tors and giving them names.
his life. And so the event had his work by hearing “Madame in his films, Lumet asserts— A characteristically blunt as-
haunted him through the Butterfly” sung in Yiddish. that drive, he maintains, came sessment of reality—a kind of
years—an act of incompre- Lumet made his early ca- from his unconscious. Still, in which this portrait is full, as it
hensible brutality committed reer as a director of television filming “Dog Day Afternoon” is of warmth and wit.
by ordinary people. shows in the 1950s, among (1975) he was above all deter-
The director of “12 Angry them the impressive “You Are mined that the main charac- American Masters:
Men,” “Serpico,” “Dog Day Af- There” series, a product of ter in the story emerge as a By Sidney Lumet
ternoon,” “Network,” “Prince CBS News—a clip of which sympathetic figure. The Tuesday, 8 p.m., PBS
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, December 30, 2016 | A11

LIFE & ARTS

WHAT’S IN YOUR BAG?

A MODERN SPICE
MERCHANT

DAVID WALTER BANKS FOR THE WALL STREET JOURNAL (2)

Above: A detail of a gift set prepared by Peter Bahlawanian
(below), owner of the Spice Station chain of spice shops.

peppers—to avoid burning

BY HILARY POTKEWITZ
PETER BAHLAWANIAN
understands why his lug-
gage could raise eyebrows.
It’s full of small plastic bag-
gies, an electronic scale and
packages of white powder
and rock crystals. “I know
it looks bad, believe me,”
he says.
WARNER BROS. (3)
himself with a careless rub
of the eye. Lightproof con-
tainers protect vanilla
beans. “The sun dries them
out, and you want the pods
to be a little plump and
juicy,” he says.
Visiting the farmers and
suppliers he works with is
important, because he
wants to be able to tell his

If he’s on his way back customers that he’s “seen

from Europe, the white
stuff will be fleur de sel or
Cyprus flake sea salt. From
South America, it will be
slightly pink
FILM REVIEW | Joe Morgenstern Peruvian salt.
the operation, it’s clean,
they don’t have kids work-
ing there,” he says.
Mr. Bahlawanian started
learning about
spices as a

‘Live by Night’:
Sometimes the child in Mon-
powder will be treal. His par-
red, (paprika), ents are from
yellow (tur- Lebanon, mem-
meric) or bers of the Ar-
brown (cumin). menian

Emotional Absence
There’s something missing from Ben Affleck’s prohibition-era gangster film
THE SHORT OF IT is that
“Live by Night” looks im-
pressive, if nothing else. The
long of it is a story about
another movie that will
bring us back to Ben Af-
fleck’s Prohibition-era gang-
ster flick in a couple of para-
graphs.
One evening in March
2010 I went off to see an
Irish ghost story called “The
Eclipse.” During the screen-
ing I took unusually detailed
notes because the film
wasn’t scheduled to open for
another month and I knew
I’d need to refresh my recol-
lections before writing about
it. When I finally sat down
to write the review, I felt a
cold chill rising on my back
as I scanned my notes. It
wasn’t the ghosts, but a fail-
ure of memory. I recalled
nothing about the film, apart
from having been there to
watch it. My notes had
clearly been written by me,
but they didn’t summon up
so much as a single visual
image, let alone specifics of
the plot.
My computer calendar re-
vealed the explanation. Ear-
lier in the screening day I’d
had dental surgery that re-
quired anesthesia—a little
blue tablet under my tongue
followed by an injection. I’d
asked the dentist if I’d be
able to drive to the screen-
ing, and all he said was
“Sure.” What he didn’t say
was that I wouldn’t remem-
ber anything about the
movie, since the tablet in-
“When I diaspora from
first started, southern Tur-
customs key. Family
agents had a meals usually
field day with revolved
my bags,” he says. “Now around traditional recipes.
they know me as the guy He moved to Los Angeles
who brings in spices.” in 1994 to work in the mu-
Mr. Bahlawanian, 44 sic industry. When he
his scruffy beginnings in years old, is owner and started cooking for himself,
Boston to his ascension, in master blender of Spice he grew frustrated search-
Florida, as a reigning mob Station, a small chain of ing for pantry staples like
boss. What I couldn’t recall gourmet spice shops in Los Aleppo pepper or urfa
was the slightest trace of Angeles and Montreal. biber, a Turkish chili.
emotional resonance. Mr. Bahlawanian regu- Soon he found himself
That’s because, in this larly shuttles inventory be- shopping for spices while
case, none is there. The tween the two cities and on vacation.
production is handsome travels overseas on spice- He started the Spice Sta-
enough. Mr. Affleck’s direc- buying trips. tion in 2009 with about 120
tion is expert. So are sev- Regardless of the jour- items on the shelves. Now
eral performances: Brendan ney, he packs no more than he sells more than 550
Gleeson as Joe’s father, two days’ worth of cloth- spices and teas.
Thomas Coughlin, a Boston ing, preferring to leave He discovered growers in
police captain; Zoe Saldana space for merchandise. Lebanon producing items
as the love of Joe’s later His work tools go in a like Aleppo pepper, sumac
life (an earlier love, Emma small duffel that he carries and mint. “The Lebanese
Top: Ben Affleck as Joe Coughlin and Chris Messina as Gould, is played by Sienna over his shoulder. Along make saffron now! It’s not
Dion Bartolo; above: Elle Fanning as Loretta Figgis Miller), and Chris Cooper with the portable scale, he as good as Spanish or Per-
and Chris Cooper as Irving Figgis. as the police chief, Irving brings a mortar and pestle, sian, but it competes with
Figgis. But expertise with- and metal scoops for bulk the Moroccan one,” he says.
collaborated with Dennis Le- (by Jess Gonchor); many of out feeling doesn’t carry spices. “I’d rather use my His current obsession is
hane on the screen adapta- the spectacular—though the day. For all its sporadic own. That way I know finding a supplier of the
tion of the latter’s novel.) I sometimes interminable— philosophizing and belated they’re clean and there will Carolina reaper—a hybrid
remembered vividly the shootouts and assassinations stabs at romance, “Live by be no flavor contamina- of the five-alarm ghost pep-
stunning cinematography (by (by Tommy gun, shotgun and Night” is cold and inert at tion,” he says. per—named the world’s
Robert Richardson); the revolver); and the narrative its core. That’s really the He uses thick plastic hottest chili pepper in 2013.
evocative production design arc, which follows Joe from long and short of it. bags that seal in most of “Chilies were always my
the heavy scents and plas- favorite. It’s what drives
tic gloves to handle chili me,” he says.
The WSJ Daily Crossword | Edited by Mike Shenk
1 2 3 4 5 6 7 8 9 10 65 Becomes bitter
11 12
PUZZLE
13 14 15 66 Sale stipulation CONTEST
67 Caustic stuff
16 17 18
Down 26 Karate levels
19 20 21 1 Faye’s “Mommie
30 Charlize’s
Dearest” role
22 23 24 25 26 “Sweet
2 Mete out November”
27 28 29
co-star
3 Consider
carefully
30 31 32 33 34 31 Hard wear
4 Connection 32 Sea plea
35 36 37 38 39
problem
34 Puts the pedal
40 41 42 43 5 Particle in a
to the metal
charged state
44 45 46 47 48 35 Amoeba’s shape

our
duced temporary amnesia. 6 Gramercy Five
49 50 51 52 53 37 School group
I thought of “The Eclipse” leader Shaw
38 Pinball propellers

RUSH HOUR
after going through my notes 54 55 56 7 Decrees from
mullahs 41 Heels
for “Live by Night,” in which 57 58 59 60 61
8 Frederick the 43 Fielding stat
Mr. Affleck plays, rather
blankly, a Boston gangster 62 63 64 Great’s kingdom 46 Jewish
named Joe Coughlin. (He 9 ___ libre Community Ctr.
65 66 67
(Mexican forerunner
also directed the film, and
wrestling) 47 Romeo’s
FINAL EXAM | By Marie Kelly 10 Incense remnant follower
The answer to 17 •Words from a 39 Calls on 11 Political ideology 50 Region of
this week’s contest not-ready-to- southern
40 Debussy work 12 Forest female
crossword is a make-up spouse Mesopotamia
five-word phrase. 42 Most of D.W. 14 Parting words
19 Gourd 51 Samples
Griffith’s oeuvre 18 “Old MacDonald” 52 Car sticker
Across 21 “Wouldn’t that 44 Noted Dakota sound
1 Haymaker be great!” resident 53 Other side
20 Farmers’
target 22 •Protein-rich 56 Hit the sauce
45 Yiddish plaints association
4 Marion Cotillard’s side dish 57 “Elementary”
48 Quaint salutation 23 Humanitarian
Oscar-winning 27 Manual rocker airer
•
49 Kvell
role counterpart 58 Aussie animal ALL-INCLUSIVE RESORTS
54 Arthur’s father 24 Minimum
8 Checks on one’s 28 Enjoy Alta amount 59 One of us CANCUN | CABO | MONTEGO BAY
clothing 29 One for the 55 Packing a wallop
25 Sign ruled by 60 Rock guitarist PLAYA DEL CARMEN | PUERTO VALLARTA
13 Ring shout history books 57 •1955 hit for Mars Steve
30 Pat Roberts’s Julie London
14 Now, in
Nicaragua constituency 61 Corp. bigwig Previous Puzzle’s Solution
15 De Niro’s love 33 Fresh 62 Rude spectator C U P S E E K E R A B I T SAVE UP TO 55%
O N A I R V I N E C O R A
interest in 35 Shipping 63 Brings up M R T G R E A T A P E X E S

“The Intern” menace 64 Fender

P I T C H I N
O P E R N I A
S R A I N K
A T O N E S
PLAYARESORTS.COM
S P R I N G F L E X I N G
16 Ring great 36 •Explode connection T E N T O I N L E T
S D S R M N D E N B E L
Email your answer—in the subject line—to crosswordcontest@wsj.com ©2016 Playa Resorts Management is the exclusive operator for Hyatt
s

A Q A B A C E E L O
C R U N C H Y T E X A C O Zilara™ and Hyatt Ziva™ Resorts, The Royal and Gran Resorts. See website
by 11:59 p.m. Eastern Time Sunday, Jan. 1. A solver selected at random will A C A C I A S A Y E R A S for full terms and conditions. Restrictions apply. All rights reserved.
Zoe Saldana as Graciela in the win a WSJ mug. Last week’s winner: Melanie Frost, Colorado Springs, CO. T OM S S N P R E S U M E
S WE E T S E X P O T P I N
movie, which was directed by Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. E L L A A V E E N O O N E
Mr. Affleck Void where prohibited. U.S. residents 18 and over only.) A S S T S A D D E N N O D
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A12 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

SPORTS
MMA | Jason Gay NFL

The Mystery of Ronda Rousey

It wasn’t long
ago that the case
standard media obligations
before Friday’s fight, a deci-
Behind the Raiders Revival
could be made sion White said he had no
that Ronda qualms about.
BY MATTHEW FUTTERMAN
Rousey—the 29- “You look at the last three
year-old mixed or four years…every time I
martial arts fighter in the needed something, I’d pick THE NFL’S comeback player
UFC—was one of the most im- up the phone and Ronda of the year might be a 61-
portant athletes on the planet. Rousey would deliver for year-old bachelor with a
Here was a talented female me,” White said. “For the chili-bowl haircut.
athlete who’d not only been a first time, she came to me Mark Davis, who has been
gender pioneer in her sport, and asked for something. running the Oakland Raiders
but had gone on to become There’s no way I’d say no.” since his father died in 2011,
the UFC’s biggest financial Rousey will get no mercy wasn't so long ago consid-
draw, a one-woman economic with her opponent. Nunes is ered the league’s most feck-
engine who headlined events the current women’s bantam- less owner. He was outma-
above the sport’s top male weight champion, having neuvered in his quest to
fighters. It was a revolution- taken the belt in July with a move the franchise back to
ary accomplishment, and devastating victory over Mie- Los Angeles, and the team’s
helped make the charismatic sha Tate, who’d beaten Holm roster was stocked with
former Olympic judoka a com- in the spring. “Ronda’s going squandered talent and bad
pelling story and superstar. up against a straight ba- contracts. Many assumed
Then came Nov. 15, 2015. dass,” White said. that a group of hedge-fund
At a UFC fight in Mel- Only a few years ago, White heavyweights, who his father
bourne, Australia, the then- had scoffed at the notion of brought in as minority own-
undefeated Rousey was women fighting in the UFC. ers in 2007 with the league’s
stunned by challenger Holly Then in Rousey’s absence, enthusiastic blessing, would
Holm, an ex-boxer who domi- fighters like Nunes, Holm and take over when Davis even-
nated Rousey from the start Michelle Waterson have tually ran out of money.
and finished her with a leg shown a foundation beyond Yet through a series of
kick in the second round. It just one name, White said. surprisingly canny moves,
was a stunning finish that But Rousey is unquestion- Davis is now on the precipice
left Rousey in pain physi- ably the draw Friday. The of uprooting the team to Las
cally, and appearing vulnera- arena is a sellout. One of the Vegas to snag one of the
ble for what seemed to be few UFC stars who has most lucrative stadium deals

MARCIO JOSE SANCHEZ/ASSOCIATED PRESS

the first time in her MMA ca- branched into movies and in history. The move would
reer. In a memorable inter- the mainstream, Rousey re- likely make the former ca-
view with ESPN a month af- mains an hugely important rouser a billionaire on paper
ter the fight, a recovering figure in the sport. She’s rep- and lock up his long-term
Rousey said she was “just re- resented by WME-IMG, the control of one of the NFL’s
ally [expletive] sad.” talent agency which pur- most storied franchises.
On Friday night at UFC 207 chased the UFC over the Suddenly blessed with a
in Las Vegas, Rousey fights summer for $4 billion. bevy of young stars, the
for the first time since that It will be a big night, for Raiders even enjoyed their
knockout, against the Brazil- the fighter and the UFC. De- best season on the field in
ian jiu-jitsu black belt spite the long wait—and the more than a decade, though
Amanda Nunes. What version questions—White didn’t the team’s playoff chances Mark Davis, shown in 2015, has engineered a surprising turnaround for a long-suffering franchise.
of Rousey enters the Octa- sound concerned Rousey took a blow when quarter-
gon—the merciless wrecking would be unprepared. back Derek Carr suffered a top league official of the proaching his 80th birthday, Dean Spanos, whose fam-
machine of her win streak, or “Ronda was dominating broken fibula in Saturday’s Vegas plan. “He has a lot of hedge-fund investors David ily has owned the Chargers
somebody different—is un- everyone, breaking records, win over the Colts. momentum.” Abrams, Paul Leff and Dan since 1984, had the deepest
known. But from a public fas- beating everyone in seconds, Even after that setback, Davis still has to gain the Goldring bought 20% of the relationships within the
cination standpoint, UFC boss and she loses once and it’s 2016 marked a dramatic support of 24 of the NFL’s 32 Raiders for $150 million. NFL’s ownership.
Dana White believes that ‘Everything is wrong,’” He turnaround for the son of owners to relocate. He has to Two people involved with After seven years of his
Rousey is as powerful as ever. laughed. “Everyone’s a the NFL’s original renegade present a detailed budget, as the transaction said both the family trying to negotiate a
“When she goes in on Fri- trainer when [someone] owner, Al Davis. well as construction and NFL and the investment deal for a stadium to replace
day, she’s one of the highest- loses, you know? What I say “I’ve become a big fan of business plans to the league. group believed the purchase the dilapidated Oakland Coli-
paid athletes in sports—and is: you guys sit on the couch, Mark’s,” said New England Through a spokesman, put the investors in a strong seum, Davis left Houston with
the highest paid fighter in the mind your business and leave Patriots owner Robert Kraft, Mark Davis declined to com- position to take over the no stadium plan, little money,
UFC,” White said in an inter- it to the professionals.” who earlier in the year was ment. team eventually. and no discernible strategy.
view Thursday. The UFC among the owners who re- In NFL circles, the turn- Abrams, Leff and Goldring Then Davis proceeded to
doesn't disclose what its fight- jected the Raiders’ request around is nothing less than didn’t return requests for methodically secure more than
ers are paid, but in describing to relocate to Los Angeles, a stunning. Commissioner comment. $1 billion in public and private
Rousey’s clout in the sport, move that appeared to jeop- Roger Goodell gave Davis In 2013, the group bought funding for a new football pal-
White said: “It’s unheard of.” ardize Davis’s chances of re- credit for not complaining additional shares. However, ace in Las Vegas, including
White admitted he worried taining the franchise. “He’s when owners rejected his plan Mark Davis was able to se- considerable help from billion-
about Rousey in the wake of become a good partner of to relocate to Los Angeles. In cure enough of the available aire Sheldon Adelson.
her loss to Holm. He isn't the league.” a statement, Goodell affirmed shares to prevent the hedge- Davis has said the fran-
alone. Once UFC’s most-visi- Kraft, who supports the the league’s policy to “look fund group from gaining a chise will spend $500 mil-
ble fighter, Rousey spent move to Las Vegas, said for solutions first in our exist- 30% stake, which is the mini- lion—but a naming-rights
most of 2016 off the owners started to shift their ing markets, because that’s mum amount an owner must deal and club-seat fees could
grid. And her 13- view of Davis shortly after what we want for fans and we own initially to gain control allow him to avoid a per-
month layoff is un- his father died, when he set- know that relocations are of a franchise. sonal expenditure.
usual in a sport tled a debt of about $50 mil- painful. But in the absence of In January, however, at an Meanwhile on the field
where it is not lion the Raiders owed to the an acceptable solution in Oak- owners meeting in Houston, the Raiders are the hottest
uncommon for league. Now owners and land, he is well within his Davis finished third in the young team in the league.
fighters to tangle league officials are poised to rights” to pursue Las Vegas. sweepstakes to get a team to Not coincidentally, unlike his
several times a year. approve Davis’s controversial The relationship between Los Angeles. father, Mark Davis has
“But she’s always move to the country’s bet- the Raiders and the NFL had Rams owner Stan largely left personnel deci-
been different than any- ting capital, which just been fraught for decades, as Kroenke, who won the con- sions to general manager
body else,” White said. months ago the NFL viewed Al Davis sued the league test, had the most money Reggie McKenzie. “Life is
The UFC gave Rousey a with a jaundiced eye. twice. and an approved plan for a about execution,” Kraft said
reprieve on much of the “It’s very real,” said a In 2007, with Davis ap- privately financed stadium. of Davis. “He has executed.”
ISAAC BREKKEN/ASSOCIATED PRESS

Weather
CYCLING
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.

WIGGINS MAKES A QUIET EXIT

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20s 20s
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Montreal BY JOSHUA ROBINSON
Bismarckk
20s 40s Bradley Wiggins
30s A g
Augusta
Eugene Boise
Billings
30s 50s won the Tour de
pls / . Paul
Mpls./St. T
Toronto A b y
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Boston
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Pierre Sioux
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Austin
Houston
bil
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10s l d
Orlando Snow
30s Newew Orleans road. That winter, he received
70s an Antonio
San Tampa
60s
10s Honolulu
l l Miami Showers Flurries a knighthood from the Queen.
A h g
Anchorage 60s 70s On Wednesday, without
60s
Ice notice or celebration, Wiggins
announced his retirement
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
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Hi Lo W
from pro cycling. His muted BRYN LENNON/GETTY IMAGES

s...sunny; pc... partly cloudy; c...cloudy; sh...showers;

Omaha 47 27 s 35 21 pc Frankfurt 37 27 pc 34 30 pc
exit at age 36 came amid in- were required to treat Wig- the concern,” Brailsford said
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice tense scrutiny of his career gins’s asthma and allergies. before the Parliament com-
Orlando 61 41 s 73 55 s Geneva 40 28 pc 40 28 pc
Today Tomorrow Philadelphia 41 28 sf 41 38 pc Havana 76 60 pc 82 63 s and questions over his use of The second source of in- mittee this month. “But that
City Hi Lo W Hi Lo W Phoenix 71 53 pc 64 52 pc Hong Kong 68 60 c 71 67 pc
Anchorage 23 16 sn 22 13 pc Pittsburgh 30 24 sf 42 32 r Istanbul 40 35 sn 42 34 sn
special exemptions that al- trigue was the disclosure wasn’t the case.”
Atlanta 50 31 s 51 41 r Portland, Maine 39 17 sf 30 26 pc Jakarta 87 77 t 87 77 t lowed him to use banned sub- that Wiggins’s Team Sky or- Wiggins has always denied
Austin 59 50 c 71 50 r Portland, Ore. 45 28 c 40 30 r Jerusalem 54 39 s 50 39 pc stances for medical reasons dered him a mysterious med- using any performance-en-
Baltimore 42 24 c 45 35 pc Sacramento 58 39 pc 55 36 c Johannesburg 76 57 pc 78 57 t at the peak of his career. ical package at the end of the hancing drugs. In his 2012
Boise 25 9 pc 20 7 pc St. Louis 46 39 s 50 30 pc London 44 42 pc 49 42 pc
Boston 42 26 sf 37 34 pc Salt Lake City 30 20 pc 28 19 c Madrid 55 24 s 49 26 s Wiggins bows out more 2011 Criterium du Dauphiné, autobiography he said that he
Burlington 35 16 sf 30 27 sn San Francisco 57 44 pc 54 41 pc Manila 91 76 pc 89 77 pc decorated than any British right before the Tour de had never received any kind
Charlotte 48 25 s 51 41 pc Santa Fe 46 29 pc 46 25 pc Melbourne 82 59 pc 78 60 s athlete in Olympic history. France. No one affiliated with of shot, citing British Cy-
Chicago 32 28 pc 39 22 c Seattle 43 32 c 41 32 pc Mexico City 67 46 pc 73 48 pc
Cleveland 31 27 sf 40 27 c Sioux Falls 38 19 s 28 22 c Milan 40 28 pc 41 28 pc But his legacy appears to be the program was able to say cling’s “no-needle policy.” Yet
Dallas 60 49 c 69 47 c Wash., D.C. 43 29 c 47 39 pc Moscow 31 28 c 35 34 sn in danger, though he has not what it contained until Team the Fancy Bears leaks showed
Denver 55 20 s 40 26 pc Mumbai 91 63 pc 89 63 pc been accused of wrongdoing. Sky director Dave Brailsford that Wiggins had received
Detroit
Honolulu
32 26 sf 41 25 c
76 67 c 77 66 s
International Paris
Rio de Janeiro
38
96
25 pc
81 s
36 29 pc
97 81 s The questions around him appeared before the UK Par- asthma treatments through
Houston 59 53 pc 68 60 r Today Tomorrow Riyadh 81 51 s 83 53 s center on two revelations liament’s Culture, Media and intramuscular injections.
Indianapolis 35 28 pc 41 27 r City Hi Lo W Hi Lo W Rome 50 29 s 52 33 s about his medical history. Sport Committee earlier this A spokesperson for Wig-
Kansas City 50 35 s 40 24 pc Amsterdam 41 36 pc 44 37 pc San Juan 87 75 pc 85 76 pc
Las Vegas 54 43 sh 52 40 pc Athens 43 36 pc 44 36 pc Seoul 37 27 pc 44 31 pc The first, brought to light by month. He explained that gins said in a statement this
Little Rock 55 39 s 50 45 sh Baghdad 67 46 s 64 44 pc Shanghai 51 40 pc 57 46 pc a group of Russian hackers Wiggins was sent a drug fall that the cyclist stood by
Los Angeles 63 53 sh 57 44 sh Bangkok 85 74 s 87 75 pc Singapore 90 75 t 88 75 c known as the Fancy Bears, called fluimucil, designed to his “no-needle” assertion,
Miami 71 60 pc 77 71 pc Beijing 35 14 pc 39 17 s Sydney 93 74 pc 82 70 pc
Milwaukee 30 27 pc 37 20 c Berlin 39 29 pc 38 31 pc Taipei 70 65 c 75 67 pc was that Wiggins received break up mucus in the lungs, because he was referring to
Minneapolis 29 24 c 25 20 c Brussels 39 30 pc 38 32 pc Tokyo 49 38 s 50 41 s therapeutic-use exemptions but offered no further proof. “the historic (illegal) prac-
Nashville 48 33 s 48 44 r Buenos Aires 88 70 s 91 70 pc Toronto 28 21 pc 37 25 sn for otherwise banned sub- “If he’d been a mid-pack tice of intravenous injections
New Orleans 58 49 s 69 62 sh Dubai 81 66 s 81 66 s Vancouver 40 29 s 38 29 c
New York City 41 30 sf 39 38 pc Dublin 53 43 c 51 35 c Warsaw 35 27 pc 36 28 s stances in 2011 and 2012. The rider and had started win- of performance-enhancing
Oklahoma City 56 41 s 56 32 pc Edinburgh 52 45 c 51 34 r Zurich 35 23 pc 36 24 pc TUE forms say that the drugs ning races, then I understand substances.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Free Speech and Anti-Semitism
By Ruth R. Wisse
D
ecember began with
the passage by the Sen-
ate of the Anti-Semi-
tism Awareness Act and ended
with President Obama’s be-
trayal of the Jewish state. In a
reversal of policy, the U.S.
failed to block a United Na-
tions Security Council mea-
sure that is arguably the most
prejudicial U.N. pronounce-
ment since the 1975 resolution
declaring that “Zionism is a
form of racism and racial dis-
crimination.” The president’s
abstention aligns America
with the malefactors against
whom the Senate is trying to
raise awareness.
Let us take this step by
step. The Senate passed the
triple-A act in response to the
escalation of anti-Jewish hos-
tility in America, especially on
the fringes of politics and in
institutions of higher learning.
University administrators pro-
tested that the legislation
would stifle “freedom of
speech.” Treating anti-Semi-
tism as a problem of free
speech is like treating an out-
break of mumps as a problem
of cosmetics. Responsible au-
thorities are required to check
injurious epidemics.
The Senate bill itself under-
states the problem by treating
anti-Semitism under Title VI
of the Civil Rights Act of 1964,
which prohibits discrimination
on the basis of race, color or
national origin. Were anti-
Semitism historically a matter
of discrimination alone, it
could not have generated the
extermination of the Jews of
Europe or the perpetual Arab
war against Israel. Discrimina-
tion is merely one byproduct
of anti-Semitism, which in
Faith That Upholds Humanity—and Liberty
HOUSES OF The Obama this argument simply by ask- “I think our behavior is the Materialism is a fine idea, but
WORSHIP administra- ing, “But what created the product of physical processes what’s it made of? An idea is
By Andrew tion’s failure
Klavan to beat back
the rise of
radical Islam
reflects a greater failure of
thinking elites. Steeped in an
intellectual culture of secular-
ism, Western leaders have
consistently denied both the
Koranic motives of America’s
enemies, and the Christian un-
derpinnings of the U.S. system
of values. They look for eco-
nomic and social reasons for
this clash of cultures and dis-
miss the far more terrible pos-
sibility that humanity is actu-
ally at war over the nature of
God.
This estrangement from the
sacred continues a trend be-
gun during the Enlightenment
of the 18th century. But its
roots are in the 17th century’s
rise of science. The scientific
method transformed a world
of miracles into a world of ma-
terial. Its successes, in time,
made atheism seem the de-
fault setting of true reason.
But is it?
The physicist Stephen
Hawking, who publicly con-
firmed his atheism in 2014,
doesn’t believe that God is
needed to explain creation.
“The laws of gravity and
quantum theory allow uni-
verses to appear spontane-
ously from nothing,” he ex-
plained. The philosopher
Roger Scruton, writing in this
newspaper, thoroughly undid
The ‘Labor Secretary’ Needs a Promotion
By Gary E. MacDougal
T
he first thing Andrew
Puzder should do once
confirmed as the next la-
bor secretary is ask President
Trump to change his job title.
The anachronistic Labor De-
partment needs to be brought
into the 21st century. A small
symbolic step would be to re-
name it the Workforce Depart-
ment—and make Mr. Puzder
the workforce secretary.
This re-christening would
set the stage for a new com-
prehensive workforce strategy
to improve the competitive-
ness of American companies
and help frustrated workers
find jobs and get ahead. The
Labor Department name is a
relic of the era when union
leaders felt entitled to a seat
at the cabinet table. Its tradi-
tional role was telling employ-
ers what to do and implement-
ing union wish lists.
But today union member-
ship in the private economy is
modernity is a political strat-
egy, ideology and movement
forged in 19th-century Europe,
adapted by 20th-century Ar-
abs, and now spreading in our
midst.
Decades after World War II,
the U.S. established the Holo-
caust Memorial Museum pre-
sumably to warn against geno-
cides like the mass murder of
European Jewry. But the mu-
seum inadvertently subverted
its purpose. The League for
Obama’s anti-Israel
politics show the need
for the Anti-Semitism
Awareness Act.
Anti-Semitism was founded in
Germany in the 1870s to op-
pose liberal democracy, which
it called a Jewish plot “to con-
quer Germany from within.”
Tsarist Russia added “The Pro-
tocols of the Elders of Zion”
and accused Jews of wanting
to conquer the world. Nazism
added the feature of Aryan su-
premacy. Nationalist move-
ments adapted it to their spec-
ificities, and so did
internationalist movements,
which is why one of their lead-
ers called anti-Semitism the
“socialism of fools.”
Protean anti-Semitism
spans the political spectrum
and blames Jews for whatever
they are said to represent.
Long before the Holocaust,
anti-Semitism spawned its
successor anti-Zionism. When
the mufti of Jerusalem insti-
gated massacres of the Jews
of Palestine in 1929, the So-
viet leader Joseph Stalin
hailed them as harbingers of a
laws of physics?” Such an ob-
vious flaw in Mr. Hawking’s
reasoning should have been
clear to anyone who wasn’t
being carried off on the skep-
tical tide of the times.
As a former secular Jew
who converted to Christianity,
I understand the temptation of
such skepticism. My baptism
in 2004 was an act of trans-
gression. I sensed it at the
time and know it all the more
certainly today. I was nearly
50 then. I had lived my adult-
hood as a postmodern man, a
worldling of the coasts and
cities. For me to accept the
truth of God and his incarna-
tion in Jesus Christ was to
defy the culture of the age.
Perhaps instead of dismiss-
ing the religious beliefs of
those who oppose liberty,
more elites should reconsider
the faith that upholds it.
Thinkers from John Adams to
Marcello Pera have cited spe-
cifically Christian principles as
the foundation of the West’s
freedoms. A materialist world-
view leaves formerly Christian
cultures philosophically weak
when those freedoms come
under attack. Materialism
strips humans of the logic of
their humanity—the whole
point of Western liberty.
“I don’t believe there’s such
a thing as free will in the sense
of a ghost in the machine, a
spirit or soul,” says the
psychologist Steven Pinker.
down to 6.7%. Competition for
talent is the norm. Most em-
ployers are smart enough to
realize that turnover is an en-
emy that hurts productivity
and raises costs. Employees
vote with their feet and CEOs
know it. Creating an attractive,
safe working environment is
enlightened self-interest.
What the Labor Department
should do is help businesses
create and then fill jobs. A ma-
jor first step would be weeding
out unnecessary regulations,
many of which originate in its
Wage and Hour Division or in
OSHA, the Occupation Safety
and Health Administration.
But the biggest payoff lies
in fixing the mismatch be-
tween the needs of employers
and the skills of job seekers. By
the end of this decade, Ameri-
can firms could face a shortage
of three million workers with
some higher education, ac-
cording to a 2011 report by the
McKinsey Global Institute.
At the same time, a high-
OPINION
Communist revolution, charg-
ing Palestinian Jews with im-
perialism and laying the
groundwork for the Soviet-
Arab alliance that later domi-
nated the U.N. Thus was a
form of politics designed in
Europe and organized against
Jews in their dispersion reor-
ganized against Jews gathered
in their homeland.
The Arab League’s war
against Israel opposed the
principle of coexistence. Arab
leaders, having failed in their
vow to push Israel into the
sea, adopted the inverted tac-
tics of anti-Semitism by accus-
ing Israel of displacing the
Palestinians. Much of the sub-
sequent convulsion and vio-
lence in the Arab world can be
traced to that original political
sin of refusing coexistence.
Turning back to America,
no one familiar with President
Obama’s biography can be sur-
prised by his acquiescence in
the anti-Jewish politics of
grievance and blame. Raised
in, educated by, and exposed
to the major forms of contem-
porary anti-Semitism, he
would have been remarkable
to have escaped its effects. He
attended school in Indonesia
where, according to Pew sur-
veys, unfavorable views of the
Jews are among the highest in
the Muslim world.
This is the most obvious
connection between his up-
bringing and his membership
in the Chicago church of Jere-
miah Wright, the pastor whose
anti-Semitism he had to repu-
diate in order to win the White
House. No less important than
either of these influences were
his college years at Columbia
in the early 1980s—when Prof.
Edward Said was sounding the
pro-PLO drumbeat against
in the brain.”
Such increasingly common
dismissals of spiritual exis-
tence trickle into popular
thought and even into every-
day language. People say they
experienced an “adrenaline
rush,” not that they were ex-
cited. Affirmation does not in-
vigorate, it creates a “dop-
amine high.” People say they
If a person is simply a
chemistry set crossed
with a computer, then
morals are empty.
are “hard-wired” for certain
behaviors and “programmed”
for others. The underlying
message? A human being is a
cross between a chemistry set
and a computer, his actions
governed solely by a series of
discharges and sparks.
This implies that there is no
authority to man’s moral
sense, no objective reality un-
derneath subjective experi-
ences like faith and love. Emo-
tional states are not to be
examined for truth content,
merely adjusted to taste with
various medications.
To break this materialist
spell and set oneself free for
faith requires rebelling not “The Great Good Thing: A Sec-
against scientific facts but ular Jew Comes to Faith in
against flawed scientistic logic. Christ” (HarperCollins, 2016).
school graduate in Ohio or
Pennsylvania knows that he
can’t count on a job in the
steel mill to provide a nice
house and a boat on the lake.
To succeed, he needs some
training and may have to
move. The new Workforce De-
partment could help with both.
About half of the jobs gap
will be in the skilled trades—
for instance, commercial driv-
ers, sales reps and technicians,
none of whom needs a four-
year degree. A logical step
might be a two-year associate
degree, but only about 10% of
American workers earn one, a
percentage much lower than in
other advanced economies.
Mr. Puzder could work with
the Education Department, to
energize and refocus the na-
tion’s community colleges on
teaching what employers actu-
ally need. A good model would
be Chicago, where Mayor
Rahm Emmanuel has given
each community college an
employment specialty, such as
Israel—and his association
with the anti-Zionist hard left
in Chicago.
In this respect the president
is a faithful product of his edu-
cation. His ruinous legacy un-
derscores the importance of
“Anti-Semitism Awareness,”
whether or not passage of the
Senate’s act will be enough to
arrest it. The current adminis-
tration has courted the favor
of Israel’s pursuers in the hope
of averting their enmity to-
ward the U.S.
In so doing, it has licensed
an anti-Israel assault on the
part of some Americans be-
guiled by a similar fantasy and
comforted by the knowledge
that Israel, because it can least
afford to relax its military de-
fenses against their common
enemies, serves as the West’s
fighting front line. In like fash-
ion, college administrators
may be glad to have Jews ab-
sorb campus discontent that
might otherwise be directed at
them.
These dodges failed before
and will fail again. The Jewish
people has proven its ability to
remain morally intact—some
say exceptional—through sev-
eral millennia. America’s ex-
ceptionalism is still being
tested, and its submission to
anti-Semitism is not a good
sign. In failing to stand up to
Israel’s and America’s common
foes, President Obama has
failed the country that elected
him its leader.
Ms. Wisse, a former profes-
sor of Yiddish and compara-
tive literature at Harvard, is
the author of “Jews and
Power” (Schocken, 2007).
Kimberley Strassel is away.
neither the words that express
it nor the brainwork that con-
ceives it: These are only the
vehicles that transport the im-
material thought into the ma-
terial world.
So it is with the human
spirit. It is not a ghost in a
machine. It is an idea ex-
pressed in the medium of mat-
ter. A person doesn’t make a
choice because of processes in
the brain. Those processes
simply express the choice in
the material world. That’s true
across the spectrum of human
experience: Even if every im-
pulse and every emotion is
eventually mapped in the
brain, there will still be not
one iota of evidence that they
originated there. It seems far
more in keeping with what we
know to assume that experi-
ence is spiritual and that the
body expresses it the same
way words express, but do not
constitute, ideas.
Whether it is true that each
of us is an idea of God’s ex-
pressed in flesh, and whether
God once expressed himself in
flesh as well, these are ques-
tions of faith. But we should
not allow them to be decided
by cultural fiat. In more ways
than one, our lives depend on
getting the answers right.
Mr. Klavan is the author of
health care, IT, or logistics.
The Workforce Department
could also help alleviate the
geographic mismatch. Online
talent platforms such as
LinkedIn, which work well for
educated professionals, could
be better utilized by less-edu-
cated workers. These job seek-
ers could even be provided aid
in relocating—offered as a loan,
or perhaps in lieu of extending
unemployment benefits.
Mr. Puzder should be Presi-
dent Trump’s point man, mar-
shaling the forces of change
throughout the government.
By removing barriers and cre-
ating new paths toward mean-
ingful jobs, a new workforce
secretary could make an enor-
mous difference.
Mr. MacDougal, formerly the
CEO of Mark Controls Corp. and
a partner of McKinsey & Co.,
was a member of the Commis-
sion on Workforce Quality and
Labor Market Efficiency during
the Reagan administration.
Friday, December 30, 2016 | A13
BOOKSHELF | By Aifric Campbell
Guardians
Of the 1%
Capital Without Borders
By Brooke Harrington
(Harvard, 381 pages, $29.95)
O
n April 3, global news outlets simultaneously released
11.5 million confidential documents from a Panama law
firm that exposed how the rich and powerful conceal
wealth and evade taxes. The dump, described by Edward
Snowden as the “biggest leak in the history of data journal-
ism,” name-checked politicians, plutocrats and sports stars
and highlighted the urgent need for regulatory reform of the
secretive offshore financial world.
“Capital Without Borders” was written before the Panama
Papers leak, but it offers a timely account of how the 1%
holds on to their wealth. The author is a sociologist and aca-
demic who took the unconventional step of training to be-
come a wealth manager in order to write this book. Brooke
Harrington’s immersive approach was motivated by her con-
viction that a two-year training program would provide ac-
cess to groups that are “secretive” and “defensive.”
She directs an anthropolog-
ical gaze on the methods, tac-
tics and behaviors of the pro-
fessionals who provide creative
solutions to the legal and fi-
nancial problems of the rich,
and she particularly emphasizes
the 167,669 ultra-high-net-worth
individuals who have “at least
$30 million in investable assets.”
Ms. Harrington explains how the
“feudal custom of trusteeship,”
which for centuries protected the
assets of the wealthy, has evolved
into a “global profession” that
wields “significant influence on social
institutions—including families and markets.”
Much of the book is taken up with an examination of how
assets are hidden and taxes dodged in an offshore world
that, the author writes, creates “zones of lawlessness” and
acts as “a parasitic twin” on nation states, extracting “re-
sources through organized, systemic thievery.” Her book
ought to keep wealth managers awake at night, since Ms.
Harrington’s thesis is that they “nurture and expand wealth
inequality” with consequences that include “$200 billion in
lost tax revenues globally each year.”
Yet a taxonomic confusion immediately arises in her ac-
count thanks to her decision to use “wealth manager” as an
umbrella term for a fragmented industry that includes, for
example, fee-based trust managers who have a fiduciary rela-
tionship with their clients and private bankers and invest-
ment managers who earn commission. A failure to consis-
tently distinguish between different roles and relationships
leads Ms. Harrington to make assertions that misrepresent
reality or are quite simply incorrect. At one point, she claims
that “wealth management suffers from a prestige problem
within financial services,” citing an organization in which
“wealth managers were mocked as the ‘Business Prevention
Unit’ because of the concerns they voiced about staying on
the right side of the law.” In fact, this study specifically re-
fers to compliance departments.
Assets are hidden and taxes dodged in an
offshore world that creates ‘zones of lawlessness’
and acts as a ‘parasitic twin’ on nation-states.
“Capital Without Borders” fails to deliver on its promise
of insight. Much of the data and anecdote gleaned from 65
interviews in 18 different countries will be familiar in con-
cept to professionals in finance, law and accountancy. Inves-
tigative journalists, filmmakers and novelists have success-
fully penetrated the closed world of finance (Joseph O’Neill’s
novel “The Dog” offers an excellent portrait of a lawyer
trapped in conflict with his billionaire client in Dubai.) My
sense is that the author’s own steep learning curve has led
her to rely excessively on the testimony of the Society of
Trust & Estate Practitioners, whose training methods and
journals are frequently invoked. My own sources—senior in-
siders in the wealth management industry—tell me that
STEP certification is the “exception” and that “CFA [char-
tered financial analyst] training is more usual.”
More troubling is that the truly big players are absent
from the narrative. Ms. Harrington’s quest to “follow the
money” ought to have lead her to some of the world’s top
10 banks, such as UBS, Morgan Stanley and Bank of America
Merrill Lynch, who together have a 47% market share of the
$20 trillion wealth-management industry. Absent also are
the voices of the rich, some of whom—including Warren
Buffett and Bill Gates—have publicly expressed their con-
cern about growing income inequality. One “ultra” I con-
sulted called for “an aggressive redistribution of wealth—
public finances are a trainwreck and unless something is
done civil unrest and violence will force us into even worse
solutions.” That’s not a point of view you see in “Capital
Without Borders.”
But despite its flaws, Ms. Harrington’s book ought to make
professionals involved in wealth management aware that
they are operating in an “ethical gray area” and engage in
the national discourse on inequality that has been gathering
momentum since Thomas Piketty’s “Capital in the Twenty-
First Century.” One new initiative, Unlimited, was recently
launched by Stephen Hawking, who warns that wealth in-
equality represents a threat to “the long term outlook for
our species.” Its elegant website, featuring a video of cute
kids asking Oxford academics tricky questions, has a sleek
look—perhaps not surprisingly since the enterprise is “pow-
ered” (i.e. funded) by UBS, the world’s largest wealth man-
ager, whose innovative marketing department invites us all
to an online hangout for philosophical inquiry. Unlimited pre-
dicts a future where the ultra-rich will “covet less tangible
lifestyle assets such as time, health, data, reputation and
wisdom.” This sounds remarkably similar to what Sir
Thomas More envisioned back in 1516 for the island of Uto-
pia, “where nobody owns anything but everyone is rich—for
what greater wealth can there be than cheerfulness, peace of
mind, and freedom from anxiety?”
Ms. Campbell is a former managing director at Morgan
Stanley and the author of “On the Floor.”
Coming in BOOKS this weekend
Sugar: a matter of life and death • Why Homo sapiens?
• Controversial kids books • The best of all possible worlds
• France in agony • Alan Sillitoe in full • The American
taste for Provence • Joan Rivers, trailblazer • & more
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Obama’s Late Cyber Defense U.N. Vote Was a Stab in the Back for Israel

P
resident Obama promised retaliation A better response would begin by exposing In abstaining from vetoing a ing legacy such as the abysmal fail-
against Russia’s cyber-meddling in this the embarrassing financial details of senior grossly one-sided U.N. Security ures of the U.N. and the U.S. in
Council resolution, President Barack Syria—430,000 dead, a staggering
year’s U.S. elections “at a time and place Russian officials—of which, as April’s Panama
Obama spitefully stabbed Israel in number injured and millions of refu-
of our choosing,” and on Papers’ disclosure suggested, the back (“Obama’s Anti-Israel Tan- gees. It wasn’t merely U.S. inaction
Thursday he followed through He finally sanctions there are plenty. That would trum,” Review & Outlook, Dec. 24) and disregard for red lines that al-
with an order to expel Russian Russia, and Trump get the attention of Vladimir by breaking more than a half-cen- lowed this massive tragedy, it was
agents and sanction Russian Putin’s political and financial tury of U.S. commitment, under giving huge sums in cash and con-
intelligence agencies. That’s a should get the message. courtiers. Democrat and Republican presidents tracts to Iran, which was then able
start, but the pity is that it Further up the retaliatory alike, not to abandon Israel to the to bolster Bashar al-Assad’s killing
comes at the end of a Presi- chain, the U.S. and its allies U.N. jackals. Mr. Obama has now machine.
dency that held on to its Kremlin illusions for could deploy offensive cyber-capabilities to dis- gratuitously handed a potent sword LYNN C. KOSS
too long—and on the eve of another Presidency rupt or cripple sensitive Russian computer net- to Israel’s enemies. Now, every Fayetteville, N.Y.
that risks making the same mistake. works, expand the 2012 Magnitsky Act to im- square foot of the territories cap-
tured by Israel in its defensive Six So at long last the U.S. allowed
Mr. Obama ordered that 35 Russian opera- pose travel bans and asset seizures on Russians
Day War has been declared illegiti- the U.N. to do its job. That being to
tives be expelled and Russian intelligence com- involved in hacking, and even cut off Russian mately gained. While the U.N. very condemn the illegal colonization of
pounds in Maryland and New York shut down. banks from the Swift financial network. selectively admonishes the “inad- Palestinian land and the discrimina-
Nine Russian entities and individuals have been The Obama Administration has fretted that missibility of territory gained by tion against its residents. But there
sanctioned, including four Russian military in- the U.S. must maintain “escalation dominance” war,” it virtually twists that princi- are calls that the measure is an im-
telligence officers. against Russia, which may explain why even ple for the Palestinians into “the in- balanced approach to the matter. I
More important, technical data on Russian Thursday’s steps were so modest. But Mr. admissibility of aggressors to lose guess they should have included lan-
hacking methods will be declassified to help Obama’s timid responses so far to Moscow— any territory by war.” guage to the effect that the Palestin-
network experts “identify, detect and disrupt and to attacks from China and North Korea— RICHARD D. WILKINS ians should stop building Arab-only
Russia’s global campaign of malicious cyber ac- have emboldened its hackers to meddle in the Syracuse, N.Y. settlements in Israel and stop con-
structing Arab-only bypass roads
tivities.” Mr. Obama also promised that he U.S. political process. The Russian regime is
A peaceful resolution to the Is- preventing Israelis’ access. Also,
would take other steps, “some of which will not nothing if not a respecter of power, and only raeli-Palestinian conflict can only be they shouldn’t patrol the sea access
be publicized.” a U.S. President willing to exercise it will get achieved by direct negotiations be- to Israel, preventing Israeli fisher-
Let’s hope so, because efforts to sanction the Kremlin to stop. tween Israeli and Palestinian leader- men from fishing more than three
Russia’s powerful FSB and GRU intelligence Which brings us to Donald Trump, who told ship, without outside interface. By miles offshore. Also there’s the mat-
agencies won’t carry much sting with the offi- reporters who asked about Kremlin hacking on allowing the U.N. Security Council to ter of setting up checkpoints
cials and hired hackers who carried out the cy- Wednesday that the U.S. should “get on with condemn Israel, America has under- throughout Israel and restricting Is-
berattacks. Identities can always be changed our lives” and that “the whole age of the com- mined Israel and legitimized harmful raeli access to many Arab areas. Yep,
and fake documents issued. The Kremlin has al- puter has made it where nobody knows exactly boycotts and other commercial pred- a bit more balance and we might
ready promised that it will retaliate in kind, what’s going on.” Lord knows what the Presi- atory practices against Israel. then sign on.
probably by expelling a similar number of U.S. dent-elect means by that, but it seems to ex- JACK ROSEN MIKE CAGGIANO
President San Mateo, Calif.
diplomats from Moscow and stepping up its ha- tend his strange and dangerous habit of making
American Jewish Congress
rassment of those who remain, washing out the excuses for Mr. Putin and treating hacking as New York What is especially noxious about
impact of Mr. Obama’s order. a nuisance, not a threat to U.S. national and last week’s U.N. vote on Israel is the
The larger flaw is that Mr. Obama’s order economic security. The shameful abstention reversing hypocrisy of the Obama administra-
amounts to a far too late signalling exercise to On Thursday the transition released a more the 68-year traditional support for tion and the U.N. Iran is now ethni-
underscore U.S. displeasure, rather than a seri- considered statement from Mr. Trump repeat- our only democratic ally in the Mid- cally cleansing Sunnis from Syria
ous retaliatory strike that imposes real costs ing that it’s time to “move on” but that “in the dle East drives the final nail in the and replacing them with Shiites from
on responsible Russian officials. House Speaker interest of our country” he’d meet with U.S. in- coffin of Middle East peace. It sup- outside of Syria. This is the type of
Paul Ryan was right to support Mr. Obama’s ac- telligence officials next week “in order to be up- ports the intransigence of the Pales- settlement activity that is forbidden
tions, but he was also right to add with no small dated on the facts of this situation.” He’s wise tine Liberation Organization. Israel’s by international law. Israel has never
irony that they are “an appropriate way to end to do so lest Mr. Putin treat him as a cyber- only option is to fully exercise its moved Palestinians out of the West
sovereignty, and to defend itself Bank to build homes for Jews. Thus,
eight years of failed policy with Russia.” patsy the way he has Mr. Obama.
against its declared enemies. The Israeli homes in the West Bank do
U.S. forced Israel into this position. not violate any law.

North Carolina’s Iron Curtain MILFORD B. REIMAN The Obama administration and
Sharon, Mass. the international community are

G
complicit in Iran’s illegal Syria policy
eorge Orwell said, probably apocry- a 100-point scale, which Mr. Reynolds says Your editorial astutely points out (and the Syrian genocide) because
phally, that some ideas are so absurd “places us alongside authoritarian states and that President Obama’s decision to their nuclear-surrender deal with
that only intellectuals believe them, and pseudo-democracies like Cuba, Indonesia and abstain from, rather than veto, an Iran provided billions of dollars to
maybe there’s a 2016 election Sierra Leone.” anti-Israel U.N. resolution defines Iran to continue its destruction of
corollary. Witness the uncriti- A Harvard index says If the readout of your the international left’s implacable Syria and its destabilization and
cal ovation for a new study opposition to the Israeli state. Mr. domination of the region.
the state’s elections model is that North Carolina is
Obama’s petulant policy diverts an JOSH BAKER
that claims elections in North as repressive as Cuba, maybe end-of-term focus on his disappoint- Birmingham, Mich.
Carolina are less free and fair are akin to Cuba’s. the problem is your model
than the likes of Cuba. rather than North Carolina.
Progressives are enraged The state is peacefully trans-
that the Republican-controlled Tar Heel legisla- ferring power to a Democratic attorney general
ture recently transferred some powers to the from a former Republican mayor of Charlotte,
Coverage Denial for Therapy Unconscionable
legislature from the Governor, who will be a not deputizing the secret police. Cuba, which In regard to your Dec. 23 editorial investigational drug therapy that
Democrat come January. We thought the move jails political dissidents, hasn’t transferred “The FDA Empire Strikes Back”: has received the stringent FDA ap-
was politically dumb, though debates about uni- power since 1959, unless the 2008 presidential The FDA process for drug evalua- proval to begin clinical trials. This
versity trustee appointments and Senate confir- handoff to Raúl Castro from Fidel Castro counts. tion and approval, as exhibited in would provide the significant benefit
the saga of the new drug eteplirsen of supporting and accelerating ad-
mation for executive branch positions aren’t Yet Cuba rates a 56.
for Duchenne muscular dystrophy, is vances in clinical care and pharma-
close to a democratic “crisis.” But don’t tell the More remarkable still is that North Carolina beyond dysfunctional. After years of ceutical development. It would also
academics who run the Electoral Integrity Proj- isn’t the worst preforming state on the Elec- passionate advocacy for the unfortu- remove the onerous delay and ob-
ect, a joint venture of Harvard and the Univer- toral Integrity Project’s scoring system. Some nate victims of this terrible disease struction that results from the insur-
sity of Sydney. 11 states are allegedly less free. Democracy in finally leading to FDA approval, the ance companies’ denial of coverage
“Our state government can no longer be clas- New York (which scored a 61) and Virginia (60) insurance companies’ denial of drug at the expense of the patient’s
sified as a full democracy,” announced the Cha- is supposedly more imperiled than in Rwanda coverage for a promising therapy is health or finances. With this new
pel Hill political scientist Andrew Reynolds in (64), though Rwanda is controlled by an auto- disheartening and unconscionable. approach, drugs will be evaluated
the Charlotte News & Observer last week. The crat. The worst-performing state, Arizona (53), Insurance companies have often de- more rapidly, and either meet ap-
professor helped design the Electoral Integrity is outranked by Kuwait (55), Ivory Coast (59) layed coverage until repetitive stud- proval or disapproval based on sci-
Project’s index, which ranks state and interna- and Kyrgyzstan (54). ies have determined that an effec- ence and not economics. After drug
tive therapy can no longer be approval, the marketplace and insur-
tional elections on measures like the rule of law, That so many progressives are taking such
administratively denied. ance regulators will determine how
voter registration and honest counting of the results as academic gospel shows that the real A more enlightened approach economics factors into the equation.
ballots. For 2016 North Carolina scored 58 on crisis isn’t democracy but common sense. would require insurance coverage of Neither the insurance companies nor
the FDA should be allowed to play

Obama’s Political Monuments Larry Kudlow Is Vindicated

God.
JOSEPH WEISS, M.D.
NANCY CETEL, M.D.

P
resident Obama is settling accounts be- environmentalists, ranchers and other private in-
By Good Financial Analysis Rancho Santa Fe, Calif.
fore leaving office, and then some. This terests. Perhaps Mr. Obama wanted to repay Mr. Regarding the media’s complaint
week he delivered a parting gift to Demo- Reid for blocking so much GOP legislation. that Larry Kudlow lacks a doctorate in
cratic Senator Harry Reid and Utah Republicans, led by economics (“The Keynesians vs. Kud- No Matter What Your Job,
He stretches the low,” Review & Outlook Dec. 22), the
parting shot at Utah Republi- Natural Resources Chairman real question is why we don’t value a
We’ve Got a Town for You
cans by designating two new Antiquities Act as a Rob Bishop, backed legislation degree in finance and accounting for I cracked up at David H. Burke’s
national monuments in their informed by public and local our government economists. Macro- Dec. 22 letter “Deadwood, S.D., Might
respective states. gift to Harry Reid. participation to protect 1.4 economics in the end is simply an ag- Host Several Bureaucracies.” Mr.
Desert and canyon land- million acres in the Bears Ears gregate of the income statements and Burke overlooked a few excellent re-
scapes in the West are among region. Mr. Bishop’s Public balance sheets of companies, house- locations: Health and Human Services
the most majestic in America, and Mr. Obama Lands Initiative was a middle-ground between holds and governments. Financial an- should be moved to Intercourse, Pa.,
has cited cultural treasures as a pretext for con- Native American tribes who sought expansive alysts can extrapolate knowledge the National Transportation Safety
secrating 1.3 million acres in southeastern Utah federal protections and Utah legislators who about the broader economy directly Board should be moved to Accident,
(Bears Ears) and 300,000 acres in southern Ne- preferred state management. from observations of individual com- Md., the Federal Emergency Manage-
panies. Far more wisdom is gained ment Agency should go to Hurricane,
vada (Gold Butte). The real goal is to shield land- Mr. Obama has again thumbed his nose at
doing that than relying on question- Ala., and the Environmental Protec-
use decisions from public input. Congress and the law. The monument designa- able econometric models that econo- tion Agency to Badwater, Calif.
Sixteen presidents have invoked the Antiqui- tions circumvent procedures in the Federal Land mists use that show coincidences but STEVE JOHNSON
ties Act to establish 152 national monuments, Policy and Management Act of 1976 and the Na- not causality. Monkton, Md.
though rarely in defiance of state and local law- tional Environmental Policy Act for environmen- Take the multiplier impact of gov-
makers as President Obama has now done. The tal review and public comment. These laws are ernment spending. Macroeconomists
1906 law was intended to let Presidents act expe- intended to ensure due process in executive de- conclude that today’s multiplier is 1.7. Pepper ...
ditiously to protect national treasures from des- cision-making. In contrast, any financial analyst can
ecration. Mr. Obama has used it to wall off more Yet the White House declares that the Antiq- tell you the multiplier for reductions in
And Salt
land than any of his predecessors. uities Act gives the President wide latitude to the corporate tax rate is 18. That’s the THE WALL STREET JOURNAL

The Antiquities Act instructs the President to block off public land and doesn’t allow future PE of the stock market. In other words,
the amount of value created by every
designate “the smallest area compatible with the Presidents to undo its designations. Utah Attor-
dollar of indefinitely repetitive im-
proper care and management of the objects to ney General Sean Reyes plans to challenge Bears provement in profits is $18. That’s not
be protected,” yet Bears Ears is nearly twice the Ears, but courts have deferred to Presidents in just a simpler calculation, it is more in-
size of Rhode Island and one million acres bigger prior Antiquities Act cases. tuitive and likely more accurate. Mr.
than Utah’s largest national park. Most desert Reining in Mr. Obama’s executive abuses will Kudlow has been the leading voice on
land around Gold Butte is already protected, but likely fall to Congress, which can change monu- reductions in the corporate tax rate. Fi-
the Obama Administration says the national ment boundaries or abolish them. In 1950 Con- nancial analysis vindicates him.
monument is needed as a wildlife corridor for gress prohibited national monuments in Wyo- STEVEN E. CONNELL
desert bighorn sheep and the Mojave Desert tor- ming without Congressional consent. Senators Honolulu
toise. Don’t expect predator species to respect Orrin Hatch and Mike Lee have introduced simi-
the sanctuary habitat. lar legislation for Utah, adding to the nearly two Letters intended for publication should
Mr. Reid pressed for executive action after dozen bills this session that would limit execu- be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
Congressional Republicans in 2013 blocked his tive authority under the Antiquities Act. or emailed to wsj.ltrs@wsj.com. Please
attempt to proclaim Gold Butte a National Con- A Trump Administration might ponder how include your city and state. All letters
servation Area, which is akin to a national monu- federal overreach over the last eight years has are subject to editing, and unpublished
ment. Local officials in Nevada favored a negoti- undercut conservation by stirring a public back- letters can be neither acknowledged nor “It’s lonely at the top. That’s why
returned.
ated settlement among recreation groups, lash in the provinces. I’m proposing a merger.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Obama’s Regulations Aren’t the Only Target
By John Berlau
And Daniel Cody
P
resident-Elect Donald
Trump and Republican
leaders in Congress have
pledged to repeal many
regulations put in place by
President Obama. This would be a
good start, but they need to go fur-
ther. Overregulation didn’t start
during the Obama administration.
In the spirit of bipartisanship
and fostering economic and job
growth, Mr. Trump and Congress
should remove all regulatory barri-
ers needlessly obstructing America’s
The Sarbanes-Oxley Act
has multiplied audit costs
for small firms and slowed
IPOs—for what benefit?
entrepreneurs, consumers or inves-
tors, regardless of which party im-
plemented them. They can start
with a law signed and implemented
by President George W. Bush.
In 2002 the Sarbanes-Oxley Act,
or Sarbox, was rammed through
Congress and signed by President
Bush in response to the Enron and
WorldCom accounting scandals. But
its regulatory burden has fallen
heaviest on small and midsize public
companies. As noted in a 2011 report
from President Obama’s Council on
Jobs and Competitiveness, “Regula-
tions aimed at protecting the public
from the misrepresentations of a
small number of large companies
have unintentionally placed signifi-
cant burdens on the large number of
smaller companies.”
What 1917 Set In Motion, We’re Still Playing Out Today
By David M. Shribman
N
ow begins a new year, with a
new president, a new ap-
proach to government and a
new diplomatic philosophy. But the
great irony of the new year is that
for all the fresh elements at play in
politics, and the new personalities at
the center of political life, 2017 is
shaped by factors set in motion 100
years before, in 1917.
In that year the U.S. made three
vital decisions that, from Woodrow
Wilson to Barack Obama, have
guided the nation’s way: to enter
World War I and thus abandon U.S.
isolation from global affairs; to em-
ploy the notion of human rights to
justify American intervention in far-
away conflicts; and to fight danger
on foreign soil to prevent threats
from reaching our continental home.
The key to making sense of 2017 is
understanding that many of the
events of 1917 are still at play today.
The American entry into World
War I—urged by former President
Theodore Roosevelt, resisted until
1917 by President Wilson—was more
Ukraine Must Make Painful Compromises for Peace With Russia
By Victor Pinchuk
M
any Ukrainians are worried
about the new U.S. adminis-
tration because it has prom-
ised a different approach to Russia—
which invaded and forcibly annexed
Ukraine’s Crimean peninsula in 2014
and then initiated and supported a
so-called “separatist” movement to
also gain control over parts of east-
ern Ukraine. We additionally worry
that amid anti-establishment cur-
rents in Europe, coming elections
across the Continent will usher in
leaders who will want to make a
deal with the Kremlin.
There will not be a solution over
the heads of the more than 40 mil-
lion Ukrainians. Our citizens have
demonstrated since the end of 2013
that they will fight if the prospect of
living in a free, democratic, tolerant
and fair country is taken away.
Those looking for a “realist” solution
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
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Editor in Chief
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Deputy Editors in Chief
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One of Sarbox’s most onerous
mandates stems from two brief para-
graphs that comprise Section 404,
which requires that public firms have
effective “internal controls.” The sec-
tion itself mandates merely an “attes-
tation” by the outside accounting
firm that these controls are effective
in preventing fraud.
The law was implemented by the
Public Company Accounting Over-
sight Board, a quasi-public account-
ing rule-making agency created by
Sarbox. Under the PCAOB’s bound-
less interpretation, Section 404 re-
quires full-blown audits of “internal
controls” of any company processes
that could potentially enable “a rea-
sonable possibility of a material
misstatement in the financial state-
ments.” This extremely broad stan-
dard may encompass all manner of
company operations.
Academic studies and annual re-
ports reveal that Sarbox has caused
auditing costs to double, triple and
even quadruple for many companies.
A 2009 study by the Securities and
Exchange Commission found that
smaller public firms have a Sarbox
cost burden more than seven times
those of large public companies.
Since Sarbanes-Oxley’s enact-
ment, there has been a rush to the
exits from U.S. exchanges, and very
slow traffic for initial public offer-
ings. Yet Sarbox failed to catch sub-
prime mortgage shenanigans that
led to the financial crisis, prompting
analysts to question the law’s worth
even in its stated purpose of pre-
venting financial fraud.
The recent stock-market surge
obscures that over the past decade
the number of firms listed on U.S.
exchanges has dropped dramatically.
In 2001, the year before Sarbox be-
came law, there were more than
than a response to German subma-
rine warfare in the Atlantic. It was a
change in how the U.S. conducted
global affairs.
With American involvement in the
Great War, the U.S. abandoned an
isolationist tradition that dated to
its earliest days. In his farewell ad-
dress, George Washington set out
the “great rule of conduct for us in
regard to foreign nations,” which
was “to have with them as little po-
litical connection as possible.” Four
years later in his inaugural address,
Thomas Jefferson described the
goals of U.S. international relations
as “peace, commerce, and honest
friendship with all nations, entangl-
ing alliances with none.” John
Quincy Adams reinforced the Ameri-
can impulse for isolationism in his
July 4, 1821, address, saying America
“goes not abroad in search of mon-
sters to destroy.”
But since 1917 America has gone
abroad, in large measure to keep
danger far from American shores.
Will Englund writes in the forthcom-
ing book “March 1917” that World
War I “gave rise to the idea that it
would be well advised to take this
into account.
But the instinctive response of
many Ukrainians to the new circum-
stances—to demand the same as be-
fore, but with greater intensity and
urgency—may not work. Instead of
issuing ever-shriller appeals, we
must also adapt to the new reality,
and help our international friends
help us.
The new administration in Wash-
ington can be an opportunity for
Ukraine to contribute to the solution
of Russia’s intervention.
Yes, we must stand up for the
fundamental principles of our strug-
gle—Ukraine’s right to choose its
own way, safeguard its territorial in-
tegrity and build a successful coun-
try. Moscow must implement its ob-
ligations under the 2014 and 2015
Minsk agreements to end the con-
flict in eastern Ukraine. It must en-
sure enforcement of the cease-fire
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Ashley Huston, Chief Communications Officer;
Paul Meller, Chief Technology Officer;
Mark Musgrave, Chief People Officer;
Edward Roussel, Chief Innovation Officer;
Anna Sedgley, Chief Financial Officer;
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OPERATING EXECUTIVES:
Jason P. Conti, General Counsel;
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Steve Grycuk, Customer Service;
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DJ Media Group:
Almar Latour, Publisher; Kenneth Breen,
Commercial; Edwin A. Finn, Jr., Barron’s;
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
President George W. Bush with the co-sponsors of the Sarbanes-Oxley Act,
Sen. Paul Sarbanes (right) and Rep. Mike Oxley, in 2002.
5,100 companies that investors
could purchase on exchanges such
as Nasdaq and the New York Stock
Exchange. By 2015 there were just
3,700—fewer than during the “bear
market” year of 1975, when publicly
traded stocks numbered more than
4,700. Meanwhile, non-U.S. stock
listings rose 28% from 1996 to 2012,
according to the National Bureau of
Economic Research.
Another worrying sign is the bal-
looning size of IPOs in the U.S. In
the early 1990s, Starbucks and Cisco
Systems had IPOs raising less than
was better to fight the enemy
abroad than wait for him to attack
at home.” This philosophy motivated
U.S. entry into war with Korea, Viet-
nam, Afghanistan, and, twice, Iraq.
The nation’s coming of age as a
global power reshaped the Western
calculus by pushing the European
powers into secondary roles.
Three events resonate: the
U.S. entry into world war,
Russian revolution and
creation of a Jewish state.
So, too, would questions raised
nearly 5,000 miles away in Russia.
The Russian Revoution of 1917 top-
pled the czar, sent tremors of social-
ist rebellion throughout Europe and
drove Vladimir Lenin into power by
year’s end. That year Russia simulta-
neously became a beacon of socialist
hope and a global outlaw by publish-
ing, under Leon Trotsky’s leadership
as commissioner of foreign affairs,
and the withdrawal of its fighters
and heavy weapons, which it has
failed to do.
But this can be part of a larger
picture in which we make painful
compromises for peace. Consider the
following ideas.
• Ukraine should consider tempo-
rarily eliminating European Union
membership from our stated goals
for the near future. We can build a
European country, be a privileged
partner, and later discuss joining.
• While we maintain our position
that Crimea is part of Ukraine and
must be returned, Crimea must not
get in the way of a deal that ends the
war in the east on an equitable basis.
It will take Ukraine 15 to 20 years to
generate enough economic growth
and stabilize our infrastructure, so-
cial safety net and financial system.
Everyone from Crimea will then want
to live in this future Ukraine—just as
East Germans wanted to become part
of West Germany.
• Conflict in the east was initiated
from abroad and is not a genuine
Notable & Quotable: No History
From the Twitter feed of Sen.
Chuck Grassley (R., Iowa):
Feb. 1, 2012: I turn to History
channel frequently bc I like history.
There is nevr any history unless u r
an antique dealer. Change name!
Feb. 25, 2012: Just love history. So
occasionally I turn to history channel.
“mud cats” when wi they put history
back on the channel
March 18, 2012: History. No his-
tory. Axe man Timber Nothing histor-
ical. Back to FOX. Sigh. Suggest name
to change channel name
March 25, 2012: Since History
channel doesnt hv history anymore i
advise National Geographic channel.
Friday, December 30, 2016 | A15
ALAMY STOCK PHOTO
$50 million, as did 80% of compa-
nies launching IPOs at the time.
Both firms’ market valuations were
less than $250 million when they
went public. Entrepreneurs were
able to get public capital to grow
their firms, and average investors
were able to grow wealthy with the
firms they invested in.
A few years after Sarbox, how-
ever, 80% of firms launched IPOs
greater than $50 million, according to
the Obama Jobs Council report, and
IPOs of greater than $1 billion have
since become a normal occurrence.
the secret treaties between the czar
and the European allies during the
war and, with Lenin’s urging, making
a controversial separate peace with
Germany.
Russia established the first truly
revolutionary power since the U.S.
and France of the late 18th century,
and set up the world order that
Tocqueville forecast some 180 years
ago when he wrote of Russia and the
U.S. growing “in obscurity, and while
the world’s attention was occupied
elsewhere.” It would not surprise the
French diplomat and writer to learn
that these two powers clashed in the
long, bitter Cold War and that more
recently the two have collided with
different objectives in Syria and,
perhaps, a slowly unfolding cyber
war.
The year 1917 also brought the
Balfour Declaration, the fateful letter
setting forth the British govern-
ment’s notion that it viewed “with
favour the establishment in Palestine
of a national home for the Jewish
people.” Much of the strife in the
Middle East—some of it taking form
in this week’s contention between
autonomy movement or civil war.
There will not be conditions for fair
elections until Ukraine has full con-
trol over its territory. But we may
Crimea should not get in
the way of a deal that ends
the war. The lives that will
be saved are worth it.
have to overlook this truth and ac-
cept local elections. Such compro-
mises may mean letting down Ukrai-
nians from the east who have
suffered enormously. But if this is
what it takes to demonstrate
Ukraine’s commitment to peaceful re-
unification, then we may have to
make this compromise to save thou-
sands of lives.
We must focus on helping those
who had to leave their hometowns,
and cannot return to live under re-
pressive and unsafe conditions, by
At least that channel has some history
June 23, 2012: I’ve turned to his-
tory. Channel. Several times this wk-
end always Pawn Shop. No history.
Change nAme of channel to no history
June 28, 2013: History on the his-
tory channel. Yes history. Attila the
Hun Rite now
June 27, 2014: There is history on
the History Channel rite now Tune in
before they go to swamp man
Dec. 25, 2016: Hurry Hurry watch
some history on History Channel be-
fore it disappears for something not
so historical
Dec. 29, 2016: If u don’t like history
now is time to go HISTORY CHANNEL
and u can watch PAWN STARS
Facebook waited until it could
launch an IPO of $16 billion and had
an $80 billion market valuation be-
fore it went public in 2012. Many
speculate that Uber may not go pub-
lic until it is worth more than $100
billion.
Yet there are two reasons for opti-
mism. First, prominent Democrats, as
well as Republicans, have recognized
the burden imposed by Sarbox and
have expressed a willingness to
tackle the problem. In 2012 President
Barack Obama signed the Jumpstart
Our Business Startups (JOBS) Act,
which exempts newly listed small
and midsize public companies from
Sarbox’s internal control audits for
five years after they are listed.
Second, Mr. Trump can do a lot
administratively, thanks to a 2010
Supreme Court decision. In Free En-
terprise Fund v. Public Company Ac-
counting Oversight Board, the court
ruled that members of the PCAOB
are subject to at-will removal by a
majority of members of the SEC. If
the existing oversight board refuses
to revise its accounting standard to
be in line with the statute and call
for a simple “attestation” of internal
controls, instead of a full-blown au-
dit, a 3-2 majority of SEC commis-
sioners could fire current members
of the board and appoint replace-
ments.
By saying his trademark phrase
“you’re fired” to the PCAOB, Mr.
Trump’s SEC could clear a path of
growth for U.S. firms to expand and
tell thousands of workers, “You’re
hired.”
Mr. Berlau is a senior fellow at
the Competitive Enterprise Institute
(CEI), a Washington-based free-mar-
ket think tank. Mr. Cody is a former
CEI research associate.
President Obama and Prime Minister
Benjamin Netanyahu over new Jew-
ish settlements—grew out of that
document and its vow that “nothing
shall be done which may prejudice
the civil and religious rights of exist-
ing non-Jewish communities in Pal-
estine.”
And so the world as we know it
today began a century ago. This re-
alization might prompt President-
elect Trump to be at once conserva-
tive and radical: careful of changing
national traditions confirmed by the
decades, but willing to break from a
discredited and hurtful past.
Mr. Trump’s most critical consid-
eration may not be whether to build
a wall on the southern border, or
how to approach immigration, or
even how to confront global terror-
ism. Instead, it is most critical for
Mr. Trump to reflect on how the
events of 1917 have affected history
since, and to decide what to con-
serve and observe—and what to de-
stroy and how to deploy his powers.
Mr. Shribman is executive editor
of the Pittsburgh Post-Gazette.
offering them all possible support
to rebuild their lives in a new real-
ity.
• Finally, let’s accept that Ukraine
will not join NATO in the near- or
midterm. The offer is not on the ta-
ble, and if it were, it could lead to an
international crisis of unprecedented
scope. For now, we should pursue an
alternative security arrangement
and accept neutrality as our near-
term vision for the future.
Ukraine will need security guar-
antees. In the 1994 Budapest Memo-
randum the U.S., Russia, Britain,
France and China gave security as-
surances in exchange for Ukraine
giving up its nuclear arsenal. We
trusted this agreement but learned
painfully when Russia invaded Cri-
mea that assurances are not guaran-
tees.
Ukraine must offer realistic, de-
tailed proposals on all of these
points. We should also make clear
that we are ready to accept an incre-
mental rollback of sanctions on Rus-
sia as we move toward a solution for
a free, united, peaceful and secure
Ukraine.
The Ukrainian lives that will be
saved are worth the painful compro-
mises I have proposed. We must re-
iterate that Ukraine can be part of
solving its own problems and ad-
dressing global challenges as part of
a broad international coalition.
When I hosted Donald Trump as a
speaker by video link at the 2015
Yalta European Strategy annual
meeting, he expressed great respect
for Ukraine and the belief that we
were not getting the support we de-
served. I am hopeful that his sympa-
thy for Ukraine can be the basis for
meaningful negotiations, agreements
and eventually a peaceful settle-
ment.
Mr. Pinchuk is a Ukrainian indus-
trialist and philanthropist.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A16 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

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Was It for Real?

1. Which phone model did Samsung 19. Bayer AG struck a roughly $57
Electronics Co. recall after reports billion deal in September to ac-
the devices were catching fire? quire which company after many
A. Galaxy S7 months of haggling?
B. Galaxy S7 Edge A. Syngenta AG

A Year of Big News:

C. Galaxy Note 7 B. Monsanto Co.
D. Galaxy J7 C. BASF SE
D. DuPont Co.
2. General Electric Co. is spinning
off which of its businesses? 20. Oklahoma wildcatter Aubrey
A. Oil and gas McClendon, who helped pioneer

Take the Quiz

B. Aviation
C. Health care
D. Transportation
3. Boeing Co. in December clinched
a deal to sell 80 jetliners for $16.6
billion to what country?
A. Iran
B. North Korea
C. Syria
D. Myanmar
4. Facebook Inc. denied that fake
news on its site affected U.S. presi-
dential election results. CEO Mark
Zuckerberg said what amount of
the site’s world-wide content could
be classified as fake?
A. 10-20%
B. 4-8%
C. 1-3%
D. Less than 1%
5. Which drugmaker was at the
center of a firestorm over hefty
price increases on its EpiPen al-
lergy treatment?
A. Mylan NV
B. Turing
Pharmaceuticals AG
C. AbbVie Inc.
D. Gilead Sciences Inc.
6. U.S. crude-oil prices on Feb.
11 settled at their lowest level
since 2003. What price per bar-
rel did light, sweet crude hit
that day?
A. $32.87
B. $29.28
C. $26.21
D. $23.79
7. Airbnb Inc. agreed for the
first time to limit the number
of nights a year a host can
rent out a home in which two
of the home-sharing site’s big-
gest European markets?
A. Paris and Madrid
B. Paris and Berlin
C. London and Rome
D. London and Amsterdam
8. Alleged abuse of this busi-
ness practice put Wells Fargo
& Co. in the crosshairs of
regulators, and federal and
local officials.
A. Cross-selling
B. Cycle-billing
C. Credit-scoring
D. Capping
9. The U.S. dollar rose to a 14-year
high against an index of major
peers. Against which G-10 cur-
rency did the dollar rise the most?
A. Euro
B. British pound
C. Japanese yen
D. Canadian dollar
10. National Amusements Inc. is
the holding company through
which Sumner Redstone controls
what two media companies?
A. Viacom Inc. and CBS Corp.
B. Viacom Inc. and
Walt Disney Co.
C. CBS Corp. and Univision Com-
munications Inc.
D. Comcast Corp. and iHeartMedia
Inc.
11. General Motors Co. in January
made a $500 million investment in
which ride-hailing service?
A. Lyft Inc.
B. Uber Technologies Inc.
C. Didi Chuxing Technology Co.
D. GT Forge Inc.
12. Hedge funds faced a year of
withdrawals. Which of the follow-
ing states lowered allocations to
hedge funds in 2016?
A. Kentucky
B. New York
C. Rhode Island
D. All of the above
Nothing fake about it. It was a year of tortured takeover deals, boardroom
battles, self-driving-car one-upmanship and U.S. stock-index records. Test your
knowledge of 2016’s top news in business, finance and tech. Answers on B2.
FAMOUS FACES: The names of these newsmakers, plus answers to the quiz, appear on B2.
15. Volkswagen AG received final
court approval of a settlement
with consumers and government
agencies that could get nearly half
a million diesel-powered cars off
U.S. roads. How much was the set-
tlement?
A. $1.4 billion
B. $6.5 billion
C. $14.7 billion
D. $22.3 billion
16. Google parent Alphabet Inc.
and ride-sharing company Uber
the shale energy boom, died in
March. He was the co-founder and
former chief executive of which
energy company?
A. Chesapeake Energy Corp.
B. XTO Energy Inc.
C. Devon Energy Corp.
D. EOG Resources Inc.
21. The Wall Street Journal ex-
amined the rise of passive, or in-
dex, investing in America. Out of
the stocks in the S&P 500 today,
how many are more than 10%-
owned by U.S.-based passive mu-
tual and exchange-traded
funds?
A. 176
B. 227
C. 334
D. 458
22. Telsa Motors Inc. CEO
Elon Musk said the com-
pany expects to demon-
strate a vehicle traveling in
fully autonomous mode from
Los Angeles to New York by
the end of what year?
A. 2017
B. 2018
C. 2019
D. 2020
23. Apple Inc. delayed shipment
of which product this year?
A. MacBook Pro
B. AirPods
C. iPad Pro
D. None of the above
24. Yahoo Inc. disclosed a
data breach in December
that dwarfed the scope of a
2014 hack reported earlier
this year. About how many
users were affected in the
newly discovered breach?
A. 500 million
B. 750 million
C. 1 billion
D. 1.5 billion
25. This container-ship-
ping company’s col-
lapse in late August
stranded billions
of dollars in cargo
at sea and dis-
rupted supply
chains world-wide.
A. Hanjin Ship-
ping Co.
B. CMA CGM Group
C. Hyundai Merchant
Marine Co.
D. China Shipping Con-
tainer Lines Co.
26. Microsoft Corp. made
the largest acquisition in
its history in June, paying
about $26 billion for which
company?
A. NXP Semiconductors NV
B. Nokia Corp.
C. Twitter Inc.
D. LinkedIn Corp.
27. In its quest to grow
ever-bigger chickens, the
poultry industry is seeing a
ILLUSTRATION BY STEVE BRODNER muscle condition in broilers
that can make meat harder to
chew. What is the condition
Technologies Inc. chose Pittsburgh U.S. stock indexes reached records called?
to begin testing an autonomous on the same day? A. Gummy nuggets
taxi fleet. Why? A. Dec. 31, 1999 B. Woody breast
A. Proximity to Carnegie Mellon B. July 31, 2007 C. Tough thighs
University C. Sept. 28, 2012 D. Wobbly wings
B. Varying weather conditions D. May 21, 2015
C. Steep hills and winding streets 28. Facebook Inc. apologized in
D. All of the above 18. Which new body type did Mat- September for overestimating a
tel Inc. introduce to its Barbie key metric over the course of two
17. The DJIA, S&P 500 and the Nas- dolls? years. What was it?
daq Composite all closed at record A. Curvy A. The average time users spent
highs on the same day several B. Tall watching videos
times in 2016. Before Aug. 11, when C. Petite B. The average time users spent
was the last time the three major D. All of the above with Instant Articles
C. The average time users spent
with trending topics

13. Valeant Pharmaceuticals Inter-

national Inc. had another rough
INSIDE D. The average time users spent
on Messenger

year despite replacing its chief ex- 29. How much money have foreign
ecutive and making other changes investors pulled from emerging-
to its business. How did its stock market stocks and bonds since the
perform in 2016? U.S. election?
A. Down 10% A. $7 billion
B. Down 25% B. $13 billion
C. Down 65% C. $20 billion
D. Down 85% D. $29 billion

14. When mobile game “Pokémon 30. Fox News star Megyn Kelly
Go” launched in July, it gave released her memoir in Novem-
many smartphone users their
first taste of what kind of tech-
GATES FOUNDATION THE NUCLEAR CORE CHINA ASSERTS ber, and it quickly climbed best-
seller lists. What is the book’s ti-
nology? BACKS DEVICE THAT FUELED CONTROL OVER tle?
A. Virtual reality
B. Augmented reality
TO HEAD OFF HIV TOSHIBA’S CRISIS ITS CURRENCY A. “Hard Choices”
B. “Lean In”
C. Pikachu reality C. “Settle for More”
D. Immersive reality HEALTH, B2 ENERGY, B3 FOREIGN EXCHANGE, B8 D. “Trump and Me”
B2 | Friday, December 30, 2016
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Abbott Laboratories.B10
Alere..........................B10
Amazon.com..........B4,B9
Apple ................ A1,B4,B9
ARM Holdings...........B10
AT&T..........................B10
B SunEdison ................. B10
Baker Hughes ........... B10
Best Buy ..................... B9
C
Caterpillar ................... B9
Chesapeake Energy .. B10
Chevron ....................... B8
Citigroup......................B9
comScore...................B10
Concordia International
...................................B10
D
DirecTV......................B10
E The matchstick-size pump
eBay.............................B9
ESL Investments........B2
Exxon Mobil................B8
F R-S
Facebook ..................... A1
INDEX TO PEOPLE
B H
Bahlawanian, Peter..A11
Bartels, Andrew..........B3
Benioff, Marc..............B3
Benjamin, Jeff............B3
Brien, Lou..................B10
C nounced the launch of a global
Cecilia, Ernie...............B9
E eight weeks of an experimen-
Emini, Emilio...............B2
F Michaels, Greg............B8
Farnum, Andrew.........B2
G O
Galdi, Pedro.................B3
Sears Gets Line of Credit
Totaling $200 Million
BY IMANI MOISE
Shares of Sears Holdings
Corp. rose Thursday as the
cash-strapped company se-
cured a $200 million line of
credit.
The new credit facility was
provided by affiliates of ESL
Investments, a hedge fund
founded by Sears Chief Execu-
tive Edward Lampert, and can
be expanded to total up to
$500 million. Mr. Lampert for
years has pumped money into
Sears to help keep it afloat.
The company, which had
just $258 million in cash on
hand as of October, said it
would use the new liquidity to
fund its operations.
Sears shares moved 10%
higher to $9 on Thursday.
As of October, Sears had
Question 1. C. Samsung
Electronics Co. recalled its
Galaxy Note 7 smartphone.
Question 2. A. General
Electric Co. agreed in October
to combine its oil-and-gas
business with Baker Hughes
Inc.
Question 3. A. Boeing Co.
clinched a deal to sell 80 jet-
liners to Iran, completing the
first major agreement between
a U.S. company and the Is-
lamic Republic.
Question 4. D. CEO Mark
Zuckerberg said less than 1%
of Facebook’s global content
could be classified as fake.
Question 5. A. Mylan NV
faced scrutiny over price in-
creases for the EpiPen emer-
gency allergy treatment.
Question 6. C. Light, sweet
crude on Feb. 11 settled down
$1.24, or 4.5%, at $26.21 a bar-
rel on the New York Mercan-
tile Exchange.
Question 7. D. Airbnb Inc.
agreed to limit the number of
nights a year a host can rent
out a home in London and
Amsterdam.
Question 8. A. Wells Fargo
& Co. settled with regulators
over cross-selling practices, a
widely used technique in
which companies pitch con-
sumers multiple products.
Question 9. B. The British
pound tumbled against the
U.S. dollar.
Question 10. A. National
Amusements Inc. is the hold-
ing company for Viacom Inc.
and CBS Corp.
 LEGAL
Question 11. A. General
Motors Co. made a $500 mil-
* ***** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
Fitbit..........................B10
G
Gilead Sciences...........B2
Salesforce ................... B3
SAP..............................B3
Sears Holdings............B2
Gates Foundation Backs HIV Drug Pump
Goldman Sachs Group B9
Snap............................A1 Up to $140 million will
SoftBank Group........B10
Google.........................A2
Soochow Life Insurance
be invested in device
GoPro.........................B10
Guarani........................B3
.....................................B2 to prevent infections
H
T
in Africa and elsewhere
Huaxia Life Insurance B2
Taiyo Oil......................B3 BY RON WINSLOW
I Tereos Internacional...B3
Intarcia Therapeutics . B2 TerraForm Global......B10 The Bill & Melinda Gates
M TerraForm Power......B10 Foundation is investing up to
Toshiba........................B3 $140 million to support devel-
Microsoft.....................B3
Total ............................ B3 opment of a tiny implantable
Morgan Stanley..........B9
Twitter........................A1 drug pump it believes could
N
V help prevent people in sub-Sa-
NXP SemiconductorsB10
Valeant Pharmaceuticals haran Africa and elsewhere
O International...........B10 from becoming infected with
Oracle .......................... B3 ViiV Healthcare...........B2 HIV, the virus that causes
JASON HENRY FOR THE WALL STREET JOURNAL
P W AIDS.
Petrobras.....................B3 Wal-Mart Stores.........B4
is being developed by Intarcia
Q Walt Disney................B9
Therapeutics Inc., a closely
Westinghouse Electric
Qualcomm.................B10 held Boston-based biotechnol-
.....................................B3
WisdomTree ogy company. It can hold six
Royal Dutch Shell.......B8 Investments............B10 or 12 months’ supply of medi-
cine and is designed to deliver
micro doses continuously to
patients, ensuring they stay on
the treatment for up to a year.
P The new investment comes
Hawkins, Mark............B3 Patel, Mitul.................B9 amid a flurry of fresh efforts Intarcia Therapeutics makes an implantable pump designed to deliver micro doses of medicine.
to develop HIV prevention
I R
strategies. Foundation. other financing that advance and that was potent enough to
Ineson, Robert............B8 Roderick, Danny..........B3 Last week, for instance, the Using the pump in this the foundation’s charitable be effective at the micro doses
Rousseff, Dilma..........B3 National Institute of Allergy manner would fit a prevention mission, Andrew Farnum, the delivered by the pump. The
J
S and Infectious Diseases an- strategy called pre-exposure foundation’s director of pro- company mounted several
Jobs, Steve.................A2
prophylaxis, or PrEP. Gilead gram-related investments, said phase 3 clinical trials, which
L Spiegel, Evan..............A1 4,500-patient clinical trial to Sciences Inc.’s daily pill Tru- in an interview. demonstrated its efficacy in
test whether injections every vada, the only drug regulators The Intarcia deal is one of controlling blood sugar.
Lampert, Edward........B2 T
have approved for PrEP, has about 50 such investments the “We’re going to basically
M Tannuzzo, Gene.........B10
tal HIV drug, cabotegravir, been shown in clinical trials to foundation has made since take that same approach” with
Manning, Tom...........B10 W from U.K.-based ViiV Health- reduce risk of HIV infection by 2009. The pump would likely an HIV drug, said Kurt Graves,
Warren, Mitchell.........B3 care is effective in preventing more than 90%. find a market in the U.S. and Intarcia’s chairman, president
Morgan, Dan...............A2 Weitz, Stefan..............B4 HIV infection. In November, It is becoming available in other wealthy countries, but and chief executive officer.
the first efficacy study of an generic versions in some Afri- “the ultimate goal is develop- The $50 million in equity is
Z HIV vaccine in seven years can countries. ing an HIV prophylaxis device part of a larger round of new
Outwater, Chris .......... B4 Zuckerberg, Mark.......A2 was launched in South Africa. But “its real-world effec- that will save lives in the de- financing for Intarcia totaling
This is “one of the most ex- tiveness is much lower than veloping world,” Mr. Farnum $206 million, Mr. Graves said.
citing years ever in HIV pre- that because you have to take said. The foundation, which con-
vention,” said Mitchell War- a pill” every day and getting
ren, executive director of
AVAC, a global HIV advocacy
healthy people to do so is dif-
ficult, Dr. Emini said. That’s
siders prevention a critical
component of its efforts to
combat HIV, first heard about
$618 million of short-term
borrowings and $3.09 billion
organization supported by the
Gates Foundation.
Progress is needed. Despite
major gains against HIV and
what makes Intarcia’s pump so
attractive, he said.
“You put it in and you for-
get it,” he said, likening it to
1.9M
How many people become
the Intarcia pump about a year
ago while searching for tech-
nologies with the potential to
provide long-term protection
of long-term debt and capital- AIDS in the past two decades, long-acting forms of contra- infected with HIV each year. against the virus.
ized lease obligations. Its total some 1.9 million people be- ception. “You can immediately As part of the due diligence,
balance-sheet liabilities of come infected with the virus imagine how it could be appli- Bill Gates visited Intarcia’s
$14.24 billion outpaced its to- each year, the Joint United Na- cable.” Boston headquarters in June,
tal assets of $10.87 billion. tions Programme on HIV/AIDS Under terms of the agree- Intarcia has already devel- where he and Mr. Graves dis-
The retailer has posted an- estimates. The majority are in ment, the foundation will take oped a version of the pump cussed the technology for
nual losses in each of the past resource-poor regions such as a $50 million equity stake in loaded with the diabetes drug nearly two hours.
six fiscal years as it copes sub-Saharan Africa, where the the company and provide up exenatide as a treatment for The company and the foun-
with shoppers opting for on- epidemic’s toll has been espe- to $90 million more in grants, patients with Type 2 diabetes. dation haven’t decided which
line choices over traditional cially severe. pegged to certain research The company filed an applica- HIV drug to put in the pump,
brick-and-mortar stores. Its Experts worry that without milestones toward develop- tion with the U.S. Food and but Mr. Graves said initial
shares have dropped by more effective prevention efforts, an ment of the device. Drug Administration in No- tests indicate “we have a very
than half so far this year. emerging generation of young The money comes from a vember to market the device, good probability of success” in
As it works to return to people are at risk of becoming $1.5 billion fund the founda- called the ITCA650. If all goes coming up with an effective
profitability, the department- infected. tion has set aside apart from well, it could be on the market formulation. It will likely take
store company has said it is “If we don’t find a way to its larger grant-funding opera- by the end of 2017. several years before the pump
exploring potential deals for prevent infection, we’re going tion to make investments in It took a decade to develop. reaches the market.
its Kenmore, Craftsman and to wind up with more people technologies being developed The challenge the company If they are successful, the
DieHard brands, its Sears infected in that part of the in the private sector. The goal faced was to come up with a agreement is intended to make
Home Services business, and world than we have now,” said of the fund isn’t to generate a formulation of exenatide that sure the pump available and
the company’s real-estate Emilio Emini, director of the financial return but to back would remain stable at body affordable to poor populations
portfolio. HIV program at the Gates ideas with equity, loans and temperature for at least a year in the developing world.
Answers to the Business & Finance News Quiz
problems and investigations
China Tightens Reins
For Insurer Investing
by Congress and federal regu- 4
lators over drug prices. 1
Question 14. B. “Pokémon 2
Go” uses augmented reality, BY CHAO DENG market, prompting stepped up
which displays digital images scrutiny by authorities.
on a view of the real world. Chinese authorities are pro- They worry that insurers
Question 15. C. Volkswagen posing tighter rules on invest- are putting broader financial
AG received final court ap- 3 ments in insurers, in an effort stability at risk by issuing in-
proval of a $14.7 billion settle- to keep a check on practices vestment-life products and us-
ment. they believe put the country’s ing the proceeds to snap up
Question 16. D. Uber Tech- financial system at risk. large stakes in listed firms.
nologies Inc. said it chose 7 Proposals released by the The move to restrict insurers’
Pittsburgh partly because the country’s insurance regulator shareholding structure is
city is home to Carnegie Mel- comprise two key changes. aimed at curbing their invest-
lon University. The city also is First, a single shareholder ment activity. Other moves by
difficult to drive through with 6 would be able to have a maxi- the insurance regulator to
steep hills and three rivers 5 mum 33% stake in an insurer, clamp down on insurers in-
that make streets twist and down from 51%. Second, insur- clude publicly warning and
turn unpredictably. Lush ers shouldn’t be able to invest punishing specific firms for
weeds tend to obscure land- 8 with money raised from their products and activity in
marks in summer; ice makes 9 wealth-management products. the stock market in December.
hills tricky in winter. “This is the insurance com- Among its recent targets
Question 17. A. The three mission doing basic work to have been Huaxia Life Insur-
major U.S. stock indexes strengthen the oversight of in- ance Co. and Soochow Life
closed at a record on Dec. 31, surance firms, as well as an Insurance Co. Both firms have
1999. important measure to do ‘real been banned from selling in-
Question 18. D. Mattel Inc. insurance’ work,” said a state- surance products on the inter-
said in January it would add ment late Thursday posted on net and prohibited from sub-
three new Barbie body types: 11 the website of the China Insur- mitting new products for
curvy, tall and petite. ance Regulatory Commission. regulatory approval for three
Question 19 B. Monsanto 12 Chinese insurers have been months, according to a state-
10
Co. agreed in September to bidding up assets in the stock ment Wednesday.
sell itself to Bayer AG after
months of haggling over the
price. 1 Sumner Redstone, 2 Shari Redstone, 3 Jeff Bewkes, 4 Elizabeth ADVERTISEMENT
Question 20. A. Aubrey Holmes, 5 Jack Dorsey, 6 Megyn Kelly, 7 Elon Musk, 8 Martin
McClendon was co-founder
and former CEO of Chesapeake
Shkreli, 9 Marissa Mayer, 10 Mark Zuckerberg, 11 Randall
Stephenson, 12 Satya Nadella
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Energy Corp.
Question 21. D. Some 458 discovered data breach ex- Question 28. A. Facebook
of the 500 stocks in the S&P posed the private information Inc. in September apologized BANKRUPTCIES
500 today are more than 10% of more than 1 billion Yahoo for overestimating a key
owned by U.S.-based passive
mutual and exchange-traded
Inc. users.
Question 25. A. South Ko-
video metric for two years, a
miscalculation that irked ad-

funds.
Question 22. A. Telsa Mo-
rea’s Hanjin Shipping Co., one
of the world’s largest shipping
vertisers and media compa-
nies.

 
  

 



    

  
NOTICES
lion investment in Lyft Inc. tors Inc. expects to demon- lines, filed for receivership in Question 29. C. Foreign in-  
  
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Question 12. D. Pension strate a vehicle traveling in August. vestors have pulled some $20  !

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funds in California, Kentucky, fully autonomous mode from Question 26. D. Microsoft billion from emerging-market   
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(800) 366-3975
Rhode Island, New Jersey and Los Angeles to New York by Corp. closed its roughly $26 stocks and bonds since the     
  sales.legalnotices
New York all have pulled the end of 2017. billion deal to buy profes- election, according to the In-   
  "  
    $   "
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money from the $2.9 trillion Question 23. B. Apple Inc. sional-networking site stitute of International Fi-    %    
hedge-fund industry. delayed the shipment of its LinkedIn Corp. nance.  #    "

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Question 13. D. Valeant AirPod wireless headphones, Question 27. B. A rising Question 30. C. Megyn self-service tool at:
&'' """' 
Pharmaceuticals International saying it needed more time to number of chicken fillets are Kelly’s memoir is titled “Settle wsj.com/classifieds
   #   #
Inc.’s stock has lost 85% of its deliver the product to consum- laced with hard fibers in a for More.” 

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1 © 2016 Dow Jones & Company, Inc.
value this year amid a slate of ers. condition the industry calls —Compiled by All Rights Reserved.
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THE WALL STREET JOURNAL.
A China Plant Reflects Toshiba’s Crisis
New nuclear reactor,
showcase of latest
technology, has been
marred by delays
BY BRIAN SPEGELE
SANMEN, China—Toshiba
Corp.’s ambitions to make nu-
clear power a centerpiece of
its future have instead led to
an accounting scandal and bil-
lions of dollars in potential
losses.
For clues to what happened,
the reactor being built by its
Westinghouse Electric Co. di-
vision in this seaside town
south of Shanghai offers an il-
luminating Exhibit A.
The Sanmen reactor was
meant to be the showcase of a
new technology that Westing-
house hopes will revolutionize
the nuclear industry by mak-
ing power plants safer, less la-
bor-intensive and quicker to
build.
Instead, the first so-called
AP1000 reactor has been be-
deviled by delays. In one in-
stance, a critical component in
its cooling system failed, slow-
ing work by more than two
years. Meanwhile, Westing-
house struggled for years to
complete its design work for
the AP1000, adding to delays
and angering its Chinese state-
owned customer. The reactor
is now at least three years be-
hind schedule.
Westinghouse said Thurs-
day it aims to load enriched
uranium fuel in the reactor
early next year, pushing back
its previous year-end goal.
The troubles in Sanmen
mirror those at nuclear proj-
ects around the world—includ-
ing four by Westinghouse in
the U.S.—that led to this
week’s announcement by
Toshiba that it is looking at
billions of dollars in potential
losses, triggering a massive
selloff by investors.
Engineers are now pushing
to complete final work for the
first Sanmen AP1000 reactor
to start up by spring. Even if
all goes smoothly, the com-
pany’s failure to deliver on
schedule has undermined its
standing.
Jeff Benjamin is well aware
of the problems at Sanmen. He
was hired as Westinghouse’s
senior vice president for new
plants in 2013 as problems in
China multiplied.
Although an experienced
nuclear engineer, Mr. Benja-
min had never actually over-
Salesforce’s Ambitions Face Test
BY RACHAEL KING
Salesforce.com has set a
goal of doubling its annual
revenue.
But the business-software
company faces a big obstacle in
making the leap from $10 bil-
lion, which it expects to hit in
its next fiscal year, to $20 bil-
lion: intensifying competition.
The San Francisco firm
holds the biggest slice of the
market for software that helps
salespeople track their inter-
actions with customers and
prospects. But companies such
as Microsoft Corp., SAP SE
and Oracle Corp. are en-
croaching on its turf.
Adding to the pressure is
some analysts’ skepticism that
the company can maintain its
rapid growth even as the over-
all market expands at a steady
clip. Investors may press Sales-
force, which has posted losses
for the past five years, to start
turning a profit if revenue
growth slows, analysts say.
That doesn’t appear to faze
Salesforce Chief Executive
Marc Benioff, who disclosed
the $20 billion goal in a No-
vember conference call with-
out putting a time frame on it.
As companies interact more
with their customers online, the
global market for sales, market-
ing and customer-service soft-
ware and related tools is ex-
pected to grow at a compound
annual rate of 14% from 2015 to
2020, reaching $51.55 billion,
according to Gartner estimates.
Salesforce aims to post an-
nual revenue growth of be-
tween 20% and 30%, Chief Fi-
nancial Officer Mark Hawkins
told investors in October. At
that rate, its revenue would
reach $20 billion—from the
projected $10 billion in fiscal
2018—in 2021 or 2022.
Maintaining that kind of
growth will be difficult, said
Andrew Bartels, a research ana-
* *
BUSINESS NEWS
Jeff Benjamin was hired by Westinghouse in 2013 as problems multiplied at the company’s reactor in Sanmen, south of Shanghai.
seen construction of a new nu- passed two checkpoints of
clear-power plant. A day spent heavily armed Chinese police,
with Mr. Benjamin at the plant and crawled on hands and
this fall offered a window into knees deep into a narrow
the sheer complexity of build- opening of the AP1000. He
ing a new reactor. peered up at the mess caused
Even though the Sanmen by the swollen substance.
reactor was nearing comple- “It’s disappointing,” he said.
tion, engineers were still grap- Company officials said they
pling with a number of techni- fixed the problem in recent
cal problems. One was weeks by changing the shield-
particularly vexing: Why a ing material.
layer of shielding that sur- Under a deal with China to
rounds the reactor pressure build four AP1000 reactors in
vessel—which houses the reac- the country, Westinghouse
tor’s nuclear core—had ex- agreed to provide the designs
panded far more than ex- for the AP1000 to its Chinese
pected during testing. That partner, State Nuclear Power
had caused some of the shield- Technology. In return, it hoped
ing material to seep out. to win lucrative fuel and main-
Mr. Benjamin wanted a tenance contracts for dozens
closer look. The 54-year-old of plants it envisioned would
executive grabbed a flashlight, be built in China based on its
BLOOMBERG NEWS
CEO Marc Benioff has set a goal of $20 billion in annual revenue.
in 2012. Expansion in its core
Aiming High market—software that helps
Salesforce wants to maintain salespeople track their inter-
rapid revenue growth as it actions with customers and
forgoes big profits. prospects—was 13% in the
Revenue Net income most recent quarter.
After its consecutive annual
$8 billion
losses, Salesforce is moving
7 toward profitability.
It significantly narrowed its
6
loss in fiscal 2016 to $47.43
5 million from $262.69 million a
year earlier. It expects in 2017
4
to turn a per-share profit of
3 24 cents to 25 cents, making
for a net profit margin of
2
about 2%.
1 Sizable sales and marketing
expenses, which for Salesforce
0
have helped drive revenue, are
2012 ’13 ’14 ’15 ’16 ’17* a challenge. Those expenses
*Estimated amounted to nearly 47% of
Source: Thomson Reuters revenue in the most recent
THE WALL STREET JOURNAL. quarter, down slightly from
48% of revenue in the year-
lyst at Forrester Research Inc. earlier period.
“Twenty percent is reasonable. So far, investors have been
Thirty percent is a stretch.” willing to forgo profits in ex-
Salesforce’s revenue growth change for growth. But their
slowed to 24% in fiscal 2016, patience could have its limits,
which ended Jan. 31, from 37% especially if growth continues
Reactor Action
China is building far more reactors than any other country,
representing one-third of all construction globally.
Operating reactors
U.S.
France
58
Japan
43
Russia
36
China
36
Other
Source: International Atomic Energy Agency
technology—becoming the
backbone of the country’s re-
actor fleet for decades to
come.
Toshiba’s stock dropped by
more than 40% in a three-day
span this week after the com-
pany announced it was looking
at billions of dollars in losses
related to its nuclear division.
The stock however, remains at
levels similar to that of a year
ago: Before this week’s plunge,
Toshiba’s shares had risen
steadily in 2016, as investors
cheered an aggressive turn-
around plan.
Toshiba’s disclosure this
week comes as the Tokyo-
based company tries to move
past its 2015 accounting scan-
dal. An investigation by
Toshiba found executives had
to decelerate.
“At some point, you’d ex-
pect investors to say, ‘Where’s
the money?’” Mr. Bartels said.
Salesforce executives say
they are pursuing rapid reve-
nue growth to fund expansion
efforts in areas such as analyt-
ics, artificial intelligence and
the so-called Internet of
Things, in which myriad de-
vices are connected to the in-
ternet. The cash flow and
share-price increases that of-
ten accompany revenue growth
can help pay for acquisitions
and top engineering talent.
Salesforce holds the great-
est share of the market for so-
called customer relationship
management software, nearly
20% last year, according to
Gartner. But it must fend off
challenges from SAP, which
held around 10%, and Oracle,
which had nearly 8%. Oracle is
pushing into Salesforce’s tra-
ditional stronghold of applica-
tions delivered via the web.
Microsoft, in particular, has
set its sights on sales software,
where it held a 4.3% share last
year. The software giant re-
cently revamped its Dynamics
software for web delivery. Dy-
namics 365 carries a lower
price tag than the comparable
Salesforce offering and is gain-
ing traction in the price-sensi-
tive midmarket, which includes
companies with between 100
and 1,000 employees, according
to field surveys conducted by
Jefferies Group, said John Di-
Fucci, managing director at the
investment bank.
Salesforce’s shares have
lagged behind many of its
competitors due to concerns
about slowing sales growth
and the battle for market
share. The stock is down 11%
in the past 52 weeks, closing
at $69.15 on Thursday. In the
same period, Oracle shares are
up 4.5% and Microsoft stock
has risen 13%
Friday, December 30, 2016 | B3
by French competitor Areva
SA rely more heavily on hu-
man operators or computer
systems to intervene in an
emergency.
Safety is one of the many
factors contributing to delays
at Sanmen. After Japan’s
Fukushima disaster in March
2011, China halted new plant
approvals pending a broad
safety review, slowing work at
Sanmen, according to West-
inghouse.
A more fundamental chal-
lenge later emerged: construc-
tion at Sanmen was moving
TIM FRANCO FOR THE WALL STREET JOURNAL(2)
ahead faster than the company
was completing its engineer-
ing work.
By January 2013, Westing-
house then-CEO Danny Roder-
ick had lost patience. He
reached out to Mr. Benjamin,
an old acquaintance who at
the time was leading the nu-
clear-services unit of Rolls-
Royce Holdings PLC.
When he first toured San-
men in 2013, Mr. Benjamin re-
calls being shocked to see con-
struction workers chiseling up
newly poured concrete. Engi-
neers had discovered that the
steel supports for the plant’s
pressurizer—a 50-foot-tall,
Under construction 115-ton apparatus which helps
China control pressure levels—
99 20 weren’t strong enough, so
Russia they had to be replaced.
7 As a new design, the
AP1000 includes many first-of-
India
a-kind components. One of the
5 most important is the reactor
U.S. coolant pump, which rises 20
4 feet high inside the AP1000
Other and weighs more than 200,000
24 pounds. The four pumps es-
sentially serve as the reactor’s
heart, circulating coolant to
178 regulate temperature around
THE WALL STREET JOURNAL. the reactor core.
In early 2013, the company
tried to play down tens of mil- found that an internal blade—
lions of dollars in rising costs whose rotation helps to circu-
at Westinghouse. late the reactor coolant—had
On paper, the AP1000 is cracked during testing. That
revolutionary, offering a dra- forced an examination of the
matic rethink of how nuclear- entire pump to determine
power plants should work. It what went wrong. Ultimately,
cuts the numbers of valves, it led to design changes and
pumps and other components fixes that took two years to
needed to operate, and the complete.
simpler design was supposed The company says the re-
to make it easier and quicker engineered pumps, which were
to build. shipped back to China in late
Westinghouse also inno- 2015, are working well at the
vated on safety. The AP1000 Sanmen unit and another Chi-
uses safety systems that rely nese plant under construction.
on natural forces like gravity None have yet been installed
to keep the reactor safe, such at the U.S. plants.
as the giant tanks that can re- —Rebecca Smith contributed
lease water automatically in to this article.
an emergency to keep the
plant cool.  Glut of natural gas prompts
By contrast, nuclear plants a shift in China......................... B8
Petrobras Attacks Debt
With More Asset Sales
BY ROGERIO JELMAYER certainty surrounding the
global economy and oil
SÃO PAULO—State-con- prices.”
trolled Petróleo Brasileiro SA Petrobras’s preferred shares
announced a flurry of asset closed up 0.6% at 14.87 reais
sales as the year wound down, ($4.57) Thursday. Mr. Galdi
but still fell short of its $15.1 said he expects the share price
billion divestment target for to reach 20 reais at the end of
the 2015-2016 period. 2017.
The oil company commonly The company completed
known as Petrobras faces simi- $752 million in asset sales this
lar challenges in the year week, including a Japanese re-
ahead but its management has finery bought by Taiyo Oil Co.
made progress in restoring in- for $165 million, as announced
vestor confidence and cutting Thursday. On Wednesday,
a huge debt load, analysts say. Petrobras said it would sell its
Petrobras said Thursday it stake in Brazilian sugar-and-
has sold assets with a total ethanol producer Guarani SA
value of $13.6 billion last year to France’s Tereos Internacio-
and this year. The company at- nal for $202 million and an-
tributed the shortfall to a court nounced the sale of some pet-
order that blocked the sale of rochemical assets to Mexico’s
various oil fields in Brazil. Alpek for $385 million.
In light of the missed tar- Petrobras last week entered
get, Petrobras said it decided a strategic alliance with
to raise its 2017-2018 divest- France’s Total SA that in-
ment goal to $21 billion from cludes the sale of oil conces-
$19.5 billion, as it tackles $123 sions and other assets that the
billion in debt. Brazilian company said will
“The question will be if bring in $1.6 billion in the next
Petrobras will be able to find two months.
buyers,” said Pedro Galdi, an The sales, as well as recent
investment analyst at Upside management changes, are in
Investor, based in São Paulo. response to various develop-
“The scenario will remain ments that left the company
challenging because of the un- among the most-leveraged oil
producers in the world.
The government of former
President Dilma Rousseff
forced the state-controlled
company to sell gasoline be-
low cost for several years
leading up to her 2014 re-elec-
tion campaign as part of an ef-
fort to rein in inflation.
Ms. Rousseff was ousted af-
ter an impeachment process
earlier this year for violating
BLOOMBERG NEWS
budget laws. Her approval
ratings had dropped to
around 10% before leaving
office, partly because of a
mammoth anticorruption in-
A Guarani farm in 2013. vestigation of bid rigging and
Petrobras is selling its stake. bribery at Petrobras.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B4 | Friday, December 30, 2016
ACKERMAN + GRUBER FOR THE WALL STREET JOURNAL
Meg Hoehn, a Minneapolis resident and former Amazon Prime member, shops in her neighborhood.
Plenty of Shoppers Don’t Use Amazon
BY SARA GERMANO
AND LAURA STEVENS
As a 26-year-old assistant
brand manager living in Brook-
lyn, Chris Outwater leads a
comfortable life.
He doesn’t need cable to
keep up with his favorite
shows, like “The Walking
Dead,” which he watches on
Netflix. When he needs a taxi,
he uses his smartphone to
fetch an Uber. He books his
travel on Google Flights.
One modern convenience
that Mr. Outwater doesn’t use
is Amazon, since he has plenty
of stores near his home and of-
fice and no easy way of receiv-
ing packages at his apartment.
“I live by myself, with no
roommate and no doorman,”
he said. “If I need something,
I’d rather just go get it myself.”
Mr. Outwater is among the
17% of U.S. primary household
shoppers who say they never
shop on Amazon, according to
data from Kantar Retail Shop-
perScape. While the percentage
has steadily declined over the
past five years, roughly 22 mil-
lion American households
didn’t use the retailer this year.
Those Amazon holdouts
THIS IS A
BRAIN ON
DRUGS.
WEED’S
LEGAL,
ISN’T
IT?
The Partnership is a nonprofit, 501(c)(3) charitable organization.
tend to be older than U.S.
shoppers overall, with an aver-
age age of 57 versus 49, re-
spectively, according to Kantar,
and they tend to earn less—
$45,700 in annual income,
compared with $62,800 among
all shoppers. They are less
likely to have or live with chil-
dren.
In interviews, shoppers
across the U.S. who abstain
from Amazon gave a variety of
reasons. For some it was their
income or living situation, for
others it was simply their pref-
erence or convictions.
But whatever their reason,
they are part of a shrinking
minority. Amazon’s global e-
commerce sales are greater
than the combined e-com-
merce sales of the next 20 U.S.
retailers, according to eMar-
keter. In addition, Amazon’s
revenue is forecast to surge
28% this year to $137 billion,
according to analysts surveyed
by Thomson Reuters.
Amazon didn’t respond to
requests for comment.
Some 80% of U.S. adults had
either a smartphone or a home
broadband subscription in
2015, according to Pew Re-
search. Lack of access to web-
KIDS HAVE QUESTIONS.
PARENTS NEED ANSWERS.
FIND THEM AT DRUGFREE.ORG
TECHNOLOGY
enabled devices, or living in
places where it is difficult to
receive packages, are key rea-
sons people avoid e-commerce,
said Stefan Weitz, chief strat-
egy officer at retail technology
provider Radial.
“There’s still a decent
amount of fear and mistrust
with the web,” Mr. Weitz said.
“And 80% of consumers still
want to go to browse and shop
in-store.”
That includes people like Eb
Richardson, 28, a Los Angeles
resident who prefers shopping
for books—the product cate-
gory where Amazon first made
its name—in stores rather than
online. Even though the re-
tailer now has a much wider
selection, Amazon still rarely
crosses her mind.
“I never think of Amazon if
I have to buy something,” she
said. “I’m in my car so much in
L.A. anyway that if I have to
pick up something, then I get
it on my way home.”
Mary Gay Sims, 75, has up-
graded to texting from email.
She’s on Facebook, too. But she
isn’t much of an online shop-
per. The retired elementary-
school teacher in Panama City,
Fla., said she shopped on Ama-
ANY
QUESTIONS?
PRESCRIPTION
DRUGS
AREN’T
AS BAD
AS STREET
DRUGS,
RIGHT?
Steering Clear
Although their numbers are
falling, 47% of shoppers surveyed
in 2016 said they never or rarely
make purchases on Amazon.
Shopping frequency at Amazon
100%
2016
Weekly
28%
75
1-3 times
a month
50 25%
Less than
once a
25 month
30%
Never
0 17%
2011 ’12 ’13 ’14 ’15 ’16
Source: Kantar Retail ShopperScape
THE WALL STREET JOURNAL.
zon once to buy a book written
by a friend. “It was a long time
ago, and it was quick and
easy,” she said.
“I guess at my age, I just
like to go to the store and pick
out my stuff. That’s why, if I’m
so inclined to get something,
that’s the first place I go,” Ms.
Sims added.
In recent years, both Ama-
zon and its competitors, like
Wal-Mart Stores Inc., have
worked to bring more shop-
pers online and boost sales
with membership programs,
like Amazon Prime, which pro-
vides perks like video stream-
ing and free, fast shipping for
an annual fee of $99.
Although Amazon hasn’t re-
ported how many customers
are Prime members, analysts
estimate there are more than
50 million.
Meg Hoehn, a mother of
two and teacher in Minneapo-
lis, said she and her husband
used to have a student mem-
bership to Amazon Prime but
decided against renewing it, in
part to become more finan-
cially responsible.
“We bought a ton of stuff
on there… It was too conve-
nient and too easy,” she said.
THE WALL STREET JOURNAL.
India to Take Up
Apple’s Request
For Incentives
BY RAJESH ROY
NEW DELHI—Indian gov-
ernment officials will likely
meet early next week to evalu-
ate the incentives sought by
Apple Inc. to manufacture its
products in the country, two
people familiar with the mat-
ter said.
In a letter to New Delhi in
November, the Cupertino, Ca-
lif., firm sought financial in-
centives to firm up its plans to
manufacture in India, officials
said, as the company looks to
expand its sales and presence
in the South Asian nation.
Senior officials from the
ministries of trade, finance,
electronics and information
technology, forests and envi-
ronment are expected to par-
ticipate in the meeting, one of
the people said.
The Indian government has
incentives to promote local
manufacturing under Prime
Minister Narendra Modi’s
“Make in India” campaign, and
it remains to be seen whether
they would agree to more con-
cessions for Apple.
The country has a program
that provides capital subsidies
for companies manufacturing
electronics in India. Another
program provides subsidies
for investments in special eco-
nomic zones and allows tax-
Apple has a less than 5% slice of India’s booming smartphone market.
WHAT MAKES
HEROIN SO
ADDICTIVE?
MOM,
DID YOU
EVER
TRY
DRUGS?
WSJ.com/Tech
free imports of some compo-
nents used to make mobile
handsets.
Apple didn’t respond to a
request to comment.
Making goods such as
iPhones locally would allow
Apple to open its own stores
in India, helping it build its
brand in a country where it
has a less than 5% slice of a
booming smartphone market.
India’s smartphone market
is expected to overtake that of
the U.S. next year as the
world’s second-largest behind
China, according to research
firm IDC.
Under Mr. Modi, India has
been eager to attract foreign
investment and boost local
manufacturing to generate
employment.
Apple said in early 2016
that it had sought government
permission to open its own
stores in India. India loosened
restrictions in several sectors
in June, saying foreign-owned
single-brand retailers such as
Apple could open stores, pro-
vided they purchase at least
30% of their manufacturing
materials from Indian vendors
after three years.
Absent adding a manufac-
turing base, that could prove a
challenge to Apple since there
aren’t many high-end phone-
part suppliers in India.
PRASHANTH VISHWANATHAN/BLOOMBERG NEWS
© Partnership for Drug-Free Kids
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, December 30, 2016 | B5

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
19819.78 t 13.90, or 0.07% Trailing P/E ratio * 21.61 16.52 2249.26 t 0.66, or 0.03% Trailing P/E ratio * 24.95 22.95 5432.09 t 6.47, or 0.12% Trailing P/E ratio * 24.45 23.25
High, low, open and close for each P/E estimate * 18.72 16.10 High, low, open and close for each P/E estimate * 19.04 17.44 High, low, open and close for each P/E estimate * 19.54 20.04
trading day of the past three months. Dividend yield 2.41 2.55 trading day of the past three months. Dividend yield 2.07 2.14 trading day of the past three months. Dividend yield 1.23 1.17
All-time high 19974.62, 12/20/16 All-time high: 2271.72, 12/13/16 All-time high: 5487.44, 12/27/16

Current divisor 0.14602128057775

20000 2260 5480
Session high
DOWN UP
19600 2230 65-day moving average
t

Session open Close 5400

Close Open
t

19200 2200 5320

Session low 65-day moving average

18800 2170 5240

65-day moving average

18400 2140 5160

18000 2110 5080

Bars measure the point change from session's open

17600 2080 5000
Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec. Sept. Oct. Nov. Dec.
* 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* 593,014,694 12,137,854
Industrial Average 19878.44 19788.94 19819.78 -13.90 -0.07 19974.62 15660.18 13.7 13.7 6.3 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 312,915,290 7,931,465
Transportation Avg 9141.48 9052.55 9085.14 -3.35 -0.04 9421.08 6625.53 21.0 21.0 7.3 Most-active issues in late trading Decl. volume* 262,815,229 3,913,718
Utility Average 664.11 655.55 662.93 8.31 1.27 723.51 577.48 14.7 14.7 10.8 Volume After Hours Issues traded 3,120 338
Company Symbol (000) Last Net chg % chg High Low Advances 1,782 178
Total Stock Market 23436.09 23326.57 23380.53 -0.59 -0.003 23620.57 18663.11 10.8 10.8 6.5
VanEck Vectors Gold Miner GDX 26,645.9 21.70 -0.05 -0.23 21.82 21.35 Declines 1,217 140
Barron's 400 607.07 602.04 604.44 0.27 0.05 611.12 446.15 17.0 17.0 5.8
VanEck Vectors Jr Gold GDXJ 10,245.7 33.46 -0.02 -0.06 33.50 32.88 Unchanged 121 20
Nasdaq Stock Market SPDR S&P 500 SPY 3,291.6 224.48 0.13 0.06 224.52 224.25 New highs 50 9
Nasdaq Composite 5450.63 5415.18 5432.09 -6.47 -0.12 5487.44 4266.84 8.5 8.5 9.3 Finl Select Sector SPDR XLF 3,235.2 23.17 -0.03 -0.13 23.22 21.56 New lows 18 2
4933.71 4903.28 -8.00 4965.81 3947.80 7.1 Closing tick 121 9
Nasdaq 100 4918.28 -0.16 7.1 11.2 iShares MSCI Emg Markets EEM 2,620.4 35.24 -0.02 -0.06 35.29 35.18
Closing Arms† 1.33 0.66
Vanguard Total World Stk VT 1,765.5 61.12 … unch. 61.15 61.06
Standard & Poor's Block trades* 5,016 142
-0.03
iShares Core S&P 500 ETF IVV 1,677.2 225.90 0.15 0.07 225.90 225.66
500 Index 2254.51 2244.56 2249.26 -0.66 2271.72 1829.08 10.0 10.0 6.9 Nasdaq NYSE Arca
iShares China Large-Cap FXI 1,519.5 34.63 -0.18 -0.52 34.86 34.63
MidCap 400 1669.66 1661.10 1667.18 4.67 0.28 1696.12 1238.82 19.2 19.2 7.7 Total volume*1,257,519,474 276,298,239
SmallCap 600 844.70 837.34 841.52 1.91 0.23 857.50 588.26 25.3 25.3 8.2 Percentage gainers… Adv. volume* 591,467,622 215,797,502
Decl. volume* 640,421,116 58,723,381
Other Indexes SunTrust Banks STI 111.3 56.50 1.81 3.31 56.50 54.65
Issues traded 3,005 1,333
Russell 2000 1367.45 1357.39 1363.18 2.35 0.17 1388.07 953.72 20.0 20.0 5.5 Bazaarvoice BV 26.4 5.00 0.15 3.09 5.00 4.74
Advances 1,408 857
NYSE Composite 11092.48 11057.67 11074.33 15.45 0.14 11237.17 9029.88 9.2 9.2 2.3 Mylan MYL 56.9 38.30 0.92 2.46 38.55 37.38 Declines 1,451 442
Value Line 510.18 507.36 508.92 0.73 0.14 518.98 383.82 14.2 14.2 1.5 California Resources CRC 5.3 20.80 0.41 2.01 20.80 20.29 Unchanged 146 34
NYSE Arca Biotech 3125.77 3081.99 3094.66 -19.91 -0.64 3813.96 2642.53 -18.9 -18.9 9.7
Consol Energy CNX 13.0 19.00 0.29 1.55 19.00 18.35 New highs 86 10
New lows 57 6
NYSE Arca Pharma 481.70 480.01 480.64 2.71 0.57 554.66 463.78 -11.2 -11.2 1.0 ...And losers
Closing tick 30 8
KBW Bank 92.48 90.85 91.34 -0.98 -1.06 93.38 56.51 25.0 25.0 9.8 Matls Select Sector SPDR XLB 326.1 48.32 -1.71 -3.42 50.03 48.32 Closing Arms† 1.05 0.61
PHLX§ Gold/Silver 82.10 78.11 82.04 4.74 6.13 112.86 38.84 81.1 81.1 -0.9 LSC Communications LKSD 83.7 29.87 -0.64 -2.09 30.51 29.87 Block trades* 5,390 1,211
PHLX§ Oil Service 184.92 183.57 184.22 -0.42 -0.23 192.50 128.61 16.8 16.8 -13.0 InfuSystems Holdings INFU 262.0 2.35 -0.05 -2.08 2.35 2.35 * Primary market NYSE, NYSE MKT NYSE Arca only.
PHLX§ Semiconductor 921.23 911.46 921.20 0.11 0.01 939.21 559.18 38.8 38.8 20.2 Cempra CEMP 71.7 2.55 -0.05 -1.92 2.72 2.55 †(TRIN) A comparison of the number of advancing and declining
13.71 12.95 0.42 issues with the volume of shares rising and falling. An
CBOE Volatility 13.37 3.24 28.14 11.27 -26.6 -26.6 2.4 Progenics Pharmaceuticals PGNX 10.1 8.67 -0.16 -1.81 8.83 8.67 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2529.83 2.01 0.08 8.3 Cesca Therapeutics KOOL 3.74 0.99 36.00 7.39 1.64 2.7 Cempra CEMP 2.60 -3.50 -57.38 32.00 2.55 -91.6
The Global Dow Euro 2270.93 –19.04 –0.83 12.1 Siebert Financial SIEB 2.62 0.57 27.80 2.65 1.00 103.1 Direxion Jr Gold Bear 3X JDST 30.50 -11.42 -27.24 2085.00 18.21 -97.9
DJ Global Index 326.11 0.77 0.24 5.9 Direxion Jr Gold Bull 3X JNUG 6.68 1.44 27.48 33.29 2.05 115.1 Interpace Diagnostics IDXG 5.50 -2.00 -26.67 13.50 0.80 18.3
World DJ Global ex U.S. 213.00 1.05 0.50 1.3 DXN DLY GLDMNR 3x BL NUGT 8.76 1.65 23.21 35.80 3.48 80.4 DXN DLY GLDMNR 3x BR DUST 43.35 -12.65 -22.59 1048.00 22.80 -94.8
Americas DJ Americas 542.75 0.51 0.09 11.4 Fortress Biotech FBIO 2.77 0.48 20.96 4.66 1.88 -0.7 Monster Digital MSDI 1.71 -0.44 -20.66 4.15 0.95 ...
Brazil Sao Paulo Bovespa 60227.29 445.66 0.75 38.9 CompX IntlA CIX 16.25 2.70 19.93 16.25 8.46 42.5 Function(x) FNCX 2.50 -0.55 -18.03 16.48 2.09 -64.6
Canada S&P/TSX Comp 15422.12 61.02 0.40 18.5 Gold Resource GORO 4.98 0.78 18.57 8.22 1.14 200.0 ProShr UltSht Gold Miners GDXS 19.58 -3.62 -15.60 127.32 11.93 -81.9
Mexico IPC All-Share 45909.31 346.13 0.76 6.8 ProShares Ultra Jr Miners GDJJ 58.18 8.19 16.38 152.62 20.18 128.2 Galena Biopharma GALE 2.05 -0.33 -13.87 49.80 1.84 -93.0
Chile Santiago IPSA 3204.61 22.72 0.71 8.9 Cemtrex CETX 7.02 0.95 15.65 7.20 1.56 197.5 Live Ventures LIVE 23.92 -3.76 -13.58 32.98 6.00 173.1
ProShares Ult Gold Miners GDXX 40.24 5.35 15.33 93.85 17.19 93.9 VisionChina Media ADR VISN 4.20 -0.66 -13.58 11.29 3.95 -56.7
Europe Stoxx Europe 600 360.26 –1.27 –0.35 –1.5
Euro zone Euro Stoxx 349.22 –0.62 –0.18 1.2 Myovant Sciences MYOV 12.61 1.62 14.74 15.50 10.25 ... Health Ins Innovations A HIIQ 16.05 -2.20 -12.05 19.30 3.72 139.6
Belgium Bel-20 3601.09 –7.80 –0.22 –2.7 Avalon Holdings AWX 3.15 0.40 14.53 3.41 1.60 66.7 Pro-Dex PDEX 4.65 -0.61 -11.51 6.68 2.23 92.5
France CAC 40 4838.47 –9.54 –0.20 4.3 Sonic Foundry SOFO 4.98 0.63 14.41 8.51 3.75 -5.2 Beasley Broadcast Cl A BBGI 5.85 -0.75 -11.36 7.70 3.05 63.0
Germany DAX 11451.05 –23.94 –0.21 6.6 Richmont Mines RIC 6.95 0.85 13.93 11.66 3.01 116.5 PhotoMedex PHMD 1.97 -0.24 -10.86 5.60 0.90 -12.4
1470.78 –0.55 –3.8 Direxion Silver Min Bl 2X SHNY 11.50 1.33 13.08 30.47 8.97 ... ContraFect CFRX 1.90 -0.20 -9.52 4.75 1.35 -60.0
Israel Tel Aviv –8.18
Italy FTSE MIB 19203.94 –35.45 –0.18 –10.3
Netherlands AEX 482.46 –1.74 –0.36 9.2 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 9327.10 –17.80 –0.19 –2.3
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 533.99 –2.20 –0.41 5.7 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 8251.13 –5.48 –0.07 –6.4
VanEck Vectors Gold Miner GDX 113,628 41.8 21.75 7.46 31.79 12.40 FlexShares Dividend Dyn IQDY 373 3290 23.93 0.61 24.39 19.24
U.K. FTSE 100 7120.26 14.18 0.20 14.1
DXN DLY GLDMNR 3x BL NUGT 88,249 108.6 8.76 23.21 35.80 3.48 Hartford Mult Dev xUS RODM 185 2769 23.83 0.85 25.20 20.95
Asia-Pacific DJ Asia-Pacific TSM 1419.05 2.69 0.19 2.1 Bank of America BAC 78,624 -31.7 22.00 -1.48 23.39 10.99 Electrum Special Acqn ELEC 115 1697 9.90 0.00 9.92 9.50
Australia S&P/ASX 200 5699.10 14.10 0.25 7.6 Direxion Jr Gold Bull 3X JNUG 68,613 126.4 6.68 27.48 33.29 2.05 PwShs VRDO Tax-Free WklyPVI 403 1574 24.94 0.00 25.01 24.89
China Shanghai Composite 3096.10 –6.14 –0.20 –12.5 NVIDIA NVDA 53,824 294.2 111.43 2.00 119.93 24.75 SPDR MSCI ACWI IMI ACIM 79 960 65.19 -0.40 75.00 53.57
Hong Kong Hang Seng 21790.91 36.17 0.17 –0.6 VelocityShares 3x DGAZ 52,133 149.8 2.90 4.32 32.28 2.70 Cempra CEMP 21,256 889 2.60 -57.38 32.00 2.55
India S&P BSE Sensex 26366.15 155.47 0.59 1.0 Advanced Micro Devices AMD 49,856 6.0 11.59 0.35 12.42 1.75 Wisdom Tree Mngd Fut Str WDTI 475 842 41.56 0.05 43.27 40.73
Japan Nikkei Stock Avg 19145.14 –256.58 –1.32 0.6 iShares MSCI Emg Markets EEM 45,845 -31.2 35.26 1.64 38.32 27.61 Deutsche X USD Hi Yld HYLB 53 841 50.39 0.00 50.57 50.13
Singapore Straits Times 2889.15 –9.15 –0.32 0.2 SPDR S&P 500 SPY 45,344 -49.8 224.35 -0.02 228.34 181.02 First Community FCCO 69 802 17.50 -2.23 18.95 12.66
South Korea Kospi 2026.46 1.97 0.10 3.3 ProSharesUltVIXST UVXY 39,094 6.0 8.38 2.70 309.60 7.50 FlexShs Credit-Scored US SKOR 48 779 49.97 0.26 52.23 49.57
Taiwan Weighted 9153.09 –48.31 –0.53 9.8 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS Currencies CURRENCIES

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Thurs YTDchg
in US$ per US$ (%) Country/currency
Thurs YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .02786 35.900 –0.4
A consumer rate against its Home Equity Vietnam dong .00004390 22778 2.8
5.00% Argentina peso .0628 15.9155 23.0
benchmark over the past year 18% Brazil real .3073 3.2545 –17.8 Europe
Bankrate.com avg†: 4.60%
4.00 Canada dollar .7406 1.3503 –2.4 Czech Rep. koruna .03883 25.754 3.5
First Citizens Bank 1.99% 12
Chile peso .001499 666.90 –5.9 Denmark krone .1411 7.0849 3.1
Home equity loan s
5.00% Raleigh, NC 800-367-0995 Yen Euro .0003338 2995.48 –5.6 1.0492 .9532 3.5
t 3.00 6 Colombia peso Euro area euro
s
Salem Five 3.00% Ecuador US dollar 1 1 unch Hungary forint .003378 296.00 1.9
4.00 Thursday 2.00
t

Salem, MA 978-745-5555 0 Mexico peso .0483 20.7247 20.5 Iceland krona .008749 114.30 –12.2
t Peru new sol .2979 3.357 –1.7 Norway krone .1157 8.6451 –2.2
3.00 FirstNorthernBankandTrustCompany 3.20% 1.00 –6 Uruguay peso .03435 29.1100 –2.7 Poland zloty .2381 4.2008 7.1
Prime rate s
Palmerton, PA One year ago
t

800-242-4671 WSJ Dollar index Venezuela b. fuerte .100050 9.9951 58.5 Russia ruble .01659 60.266 –16.2
2.00 0.00 –12
First National Bank of Pennsylvania 3.24% Asia-Pacific Sweden krona .1096 9.1205 8.0
1 3 6 1 2 3 5 710 30 2016 Switzerland franc .9775 1.0230 2.1
Pittsburgh, PA 412-264-7151 Australian dollar .7219 1.3852 0.9
1.00 month(s) years Turkey lira .2838 3.5230 20.7
Third Federal S&LA 3.24% China yuan .1438 6.9557 7.1
J F M A M J J A S O ND maturity Ukraine hryvnia .0367 27.2190 13.4
Hong Kong dollar .1289 7.7550 0.1
2016 Fort Lauderdale, FL 888-THIRDFED UK pound 1.2263 .8155 20.2
India rupee .01472 67.936 2.6
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000742 13473 –2.6
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008581 116.54 –3.1 Bahrain dinar 2.6535 .3769 –0.1
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003001 333.19 –1.6 Egypt pound .0540 18.5185 136.5
Federal-funds rate target 0.50-0.75 0.50-0.75 0.25 l 0.75 0.50 Corporate Borrowing Rates and Yields Macau pataca .1252 7.9873 –0.2 Israel shekel .2600 3.8457 –1.2
Malaysia ringgit .2230 4.4850 4.2 Kuwait dinar 3.2694 .3059 0.8
Prime rate* 3.75 3.75 3.50 l 3.75 0.50 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6962 1.4364 –1.9 Oman sul rial 2.5967 .3851 0.04
Libor, 3-month 1.00 1.00 0.61 l 1.00 0.75 Pakistan rupee .00954 104.800 –0.1 Qatar rial .2746 3.642 –0.02
Money market, annual yield 0.29 0.26 0.22 l 0.29 -0.14 Treasury, Ryan ALM 1420.004 2.075 2.133 2.186 1.141 0.851 3.326 Philippines peso .0202 49.554 5.8 Saudi Arabia riyal .2666 3.7509 –0.1
Five-year CD, annual yield 1.22 1.19 1.17 l 1.41 -0.14 10-yr Treasury, Ryan ALM 1682.628 2.477 2.550 2.600 1.366 –3.961 3.830 Singapore dollar .6905 1.4482 2.1 South Africa rand .0735 13.6106 –12.1
30-year mortgage, fixed† 4.28 4.28 3.43 l 4.29 -0.41 South Korea won .0008289 1206.40 2.6
DJ Corporate 360.330 3.174 3.250 3.426 2.460 5.545 4.373 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0066769 149.77 3.8
15-year mortgage, fixed† 3.48 3.46 2.70 l 3.50 -0.23 Aggregate, Barclays Capital 1871.300 2.660 2.720 2.770 1.820 2.625 2.973 Taiwan dollar .03100 32.258 –2.0 WSJ Dollar Index 93.00 –0.50–0.53 3.14
Jumbo mortgages, $417,000-plus† 4.68 4.72 4.02 l 4.88 -0.10 High Yield 100, Merrill Lynch 2683.017 5.511 5.563 8.696 5.248 13.014 3.245 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.91 3.93 2.97 l 4.03 -0.02
Fixed-Rate MBS, Barclays 1932.950 2.960 3.000 3.070 1.930 1.601 3.041
New-car loan, 48-month 3.00 3.02 2.87 l 3.38 0.02
HELOC, $30,000 4.60 4.69 4.29 l 5.01 -0.62
Muni Master, Merrill 498.518 2.318 2.363 2.516 1.297 –0.224 3.527 COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 738.791 6.073 6.123 7.128 5.134 10.150 5.601 Commodities Thursday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 567.91 -1.65 -0.29 573.28 420.23 25.15 25.15

ONLINE 192.90 -0.07 195.82 9.43

WSJ
TR/CC CRB Index -0.14 155.01 9.43
Crude oil, $ per barrel 53.77 -0.29 -0.54 54.06 26.21 45.17 45.17
Real-time U.S. stock quotes are available on WSJ.com. Track most-active stocks, new highs/lows, mutual funds and ETFs. Natural gas, $/MMBtu 3.802 -0.096 -2.46 3.93 1.64 62.69 62.69
.COM
Plus, get deeper money-flows data and email delivery of key stock-market data. All are available free at WSJMarkets.com Gold, $ per troy oz. 1156.40 17.20 1.51 1364.90 1060.30 9.06 9.06
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B6 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

COMMODITIES | WSJ.com/commodities

Futures Contracts Open

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

Metal & Petroleum Futures July 3.617 3.638 s 3.586 3.610 –.022 56,503 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Contract Open
Oct 3.607 3.619 s 3.570 3.592 –.022 91,150 Jan 312.50 313.10 308.70 311.70 1.70 955 Currency Futures
March 324.40 325.30 320.70 324.50 2.00 2,958
Open High hi lo Low Settle Chg interest
Agriculture Futures Milk (CME)-200,000 lbs., cents per lb. Japanese Yen (CME)-¥12,500,000; $ per 100¥
Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 17.39 17.44 s 17.38 17.38 … 5,830 March .8569 .8632 .8561 .8601 .0034 221,608
Jan 2.4980 2.5090 2.4790 2.4790 –0.0145 2,950 Corn (CBT)-5,000 bu.; cents per bu. Jan'17 16.57 16.62 16.45 16.46 –.15 4,501 June .8609 .8672 .8604 .8643 .0035 299
March 2.5060 2.5260 2.4840 2.4880 –0.0125 144,770 March 348.25 351.00 347.50 349.75 1.50 690,078 Cocoa (ICE-US)-10 metric tons; $ per ton. Canadian Dollar (CME)-CAD 100,000; $ per CAD
Gold (CMX)-100 troy oz.; $ per troy oz. July 362.00 364.00 360.75 363.00 1.00 174,021 March 2,205 2,208 t 2,142 2,165 –40 124,856 March .7384 .7426 .7382 .7418 .0033 93,327
Jan 1143.80 1158.80 s 1143.60 1156.40 17.20 1,284 Oats (CBT)-5,000 bu.; cents per bu. May 2,196 2,199 t 2,139 2,159 –38 54,007 June .7419 .7434 .7393 .7427 .0034 1,855
Feb 1143.10 1160.60 1142.60 1158.10 17.20 272,718 March 227.75 230.75 223.50 226.50 –1.25 5,074 Coffee (ICE-US)-37,500 lbs.; cents per lb. British Pound (CME)-£62,500; $ per £
April 1145.50 1163.10 1145.50 1160.70 17.10 47,759 May 225.00 229.75 222.25 227.25 –1.25 1,139 March 133.50 138.35 133.15 135.45 1.95 99,264 March 1.2245 1.2293 1.2228 1.2274 .0026 217,522
June 1149.80 1165.90 1149.80 1163.50 17.20 36,327 Soybeans (CBT)-5,000 bu.; cents per bu. May 135.60 140.65 135.50 137.75 1.90 40,676 June 1.2278 1.2321 1.2259 1.2304 .0027 784
Aug 1153.40 1165.90 1153.40 1166.30 17.20 11,331 Jan 1006.50 1014.25 1002.00 1003.25 –3.50 30,010 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Swiss Franc (CME)-CHF 125,000; $ per CHF
Dec 1159.30 1174.20 1159.30 1172.30 17.20 21,889 March 1016.25 1024.25 1011.50 1012.75 –3.75 323,426 March 19.04 19.72 19.01 19.49 .50 356,200 March .9769 .9838 .9764 .9808 .0034 54,365
Palladium (NYM) - 50 troy oz.; $ per troy oz. Soybean Meal (CBT)-100 tons; $ per ton. May 18.80 19.35 18.77 19.22 .48 166,464 Australian Dollar (CME)-AUD 100,000; $ per AUD
March 668.90 676.50 667.50 675.65 8.80 23,543 Jan 316.40 319.70 314.00 314.80 –1.40 11,217 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March .7169 .7211 .7165 .7195 .0024 94,864
June 674.95 674.95 674.15 676.55 8.75 670 March 320.60 323.90 318.10 319.00 –1.30 173,947 March 29.25 29.25 29.25 29.30 .10 1,054 June .7161 .7194 .7151 .7179 .0024 470
Platinum (NYM)-50 troy oz.; $ per troy oz. Soybean Oil (CBT)-60,000 lbs.; cents per lb. May 29.44 29.44 29.44 29.44 .10 1,749 Mexican Peso (CME)-MXN 500,000; $ per MXN
Jan 900.70 907.40 896.00 897.80 –1.80 4,932 Jan 34.80 34.92 34.48 34.52 –.34 13,668 Cotton (ICE-US)-50,000 lbs.; cents per lb. March .04771 .04800 .04771 .04787 .00014 145,935
April 901.60 910.20 899.80 902.40 0.20 54,719 March 35.03 35.19 34.75 34.79 –.33 195,692 March 69.75 71.14 69.64 70.50 .75 161,896 Euro (CME)-€125,000; $ per €
Silver (CMX)-5,000 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. May 70.10 71.35 70.05 70.90 .75 40,771 March 1.0457 1.0531 1.0451 1.0521 .0063 400,836
Jan 15.995 16.225 15.995 16.163 0.179 758 Jan 922.50 t 914.50
927.50 924.00 –1.00 959 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. June 1.0510 1.0582 1.0504 1.0574 .0064 8,662
March 16.080 16.310 16.040 16.218 0.180 133,387 March 948.00 t 940.50
953.00 950.50 … 10,060 Jan 188.00 193.95 186.00 194.35 6.55 687
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Wheat (CBT)-5,000 bu.; cents per bu. March 187.05 191.00 186.10 190.50 3.05 11,296 Index Futures
Feb 53.66 54.21 53.46 53.77 –0.29 458,989 March 402.50 406.75 402.50 404.75 3.25 261,636
March 54.53 55.15 54.39 54.72 –0.23 331,517 May 415.50 419.50 415.25 417.75 3.25 70,156 Mini DJ Industrial Average (CBT)-$5 x index
Interest Rate Futures March 19779 19817 19729 19759 –16 132,797
April 55.26 55.91 55.11 55.49 –0.18 140,549 Wheat (KC)-5,000 bu.; cents per bu.
March 411.50 416.00 410.25 415.25 5.75 122,598 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% June 19733 19745 19675 19699 –14 187
May 55.77 56.49 55.77 56.11 –0.14 111,370
June 56.28 56.94 56.28 56.55 –0.10 227,320 July 432.00 438.50 432.00 438.25 6.25 62,052 March 149-210 150-120 149-170 149-290 6.0 596,400 S&P 500 Index (CME)-$250 x index
Wheat (MPLS)-5,000 bu.; cents per bu. Treasury Notes (CBT)-$100,000; pts 32nds of 100% March 2246.00 2249.30 2239.50 2245.10 –0.20 55,980
Dec 56.91 57.44 s 56.89 57.11 –0.01 205,028
530.75 537.25 530.75 535.50 4.75 33,436 March 123-205 124-025 123-195 123-300 9.5 3,047,269 June ... 2244.80 2234.80 2239.50 –0.30 1,890
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. March
Mini S&P 500 (CME)-$50 x index
Jan 1.6990 1.7170 s 1.6965 1.7037 .0044 13,741 May 529.75 533.25 527.75 531.75 3.75 13,562 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec 118-007 118-007 117-317 118-042 7.5 18,725 March 2245.50 2250.00 2239.50 2245.00 –0.25 2,758,174
Feb 1.7144 1.7359 s 1.7118 1.7200 .0029 120,717
131.725 132.000 130.975 131.925 .200 9,701 March'17 117-087 117-182 117-080 117-160 7.7 2,962,062 June 2241.50 2244.25 2234.00 2239.50 –0.25 10,794
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Jan
Mini S&P Midcap 400 (CME)-$100 x index
Jan 1.6791 1.7038 s 1.6667 1.6820 .0074 11,126 March 127.075 127.150 125.875 126.800 –.150 19,931 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 108-192 108-202 108-192 108-207 2.7 2,301 March 1662.00 1670.60 1659.20 1666.00 4.70 96,321
Feb 1.6768 1.7026 s 1.6644 1.6798 .0041 131,043
116.350 118.975 116.300 118.700 2.725 591 March'17 108-075 108-102 108-072 108-100 2.7 1,127,058 June ... 1662.40 s ... 1658.00 4.70 1
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec
Mini Nasdaq 100 (CME)-$20 x index
Feb 3.872 3.884 3.754 3.802 –.096 180,753 Feb'17 117.650 118.050 116.775 117.950 .575 124,456 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 99.465 99.465 99.463 99.465 … 75,903 March 4923.8 4933.5 4901.3 4918.5 –5.3 224,720
March 3.800 3.809 3.706 3.754 –.071 262,913
Feb 65.575 65.950 64.150 64.650 –.450 81,057 April'17 99.290 99.295 99.290 99.290 … 216,357 June 4918.0 4932.0 4901.0 4917.0 –5.3 251
April … 3.645 3.574 3.605 –.043 124,166
May 3.582 3.603 s 3.542 3.572 –.026 108,441 April 66.050 66.400 65.425 66.225 .150 49,868 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini Russell 2000 (ICE-US)-$100 x index
March 93.594 93.828 93.531 93.688 .328 31,706 March 1361.20 1371.70 1355.80 1362.60 2.30 674,780
1 Month Libor (CME)-$3,000,000; pts of 100% June 1354.40 1354.40 1354.40 1359.60 2.30 370
Jan 99.2250 99.2250 t 99.2250 99.2225 –.0025 1,305 Mini Russell 1000 (ICE-US)-$100 x index
Bonds | WSJ.com/bonds Feb 99.2250 99.2275 s 99.2250 99.2225 –.0050
Eurodollar (CME)-$1,000,000; pts of 100%
3,085 March 1248.30 1248.30
U.S. Dollar Index (ICE-US)-$1,000 x index
1243.00 1245.80 .30 8,226

Jan 98.9975 99.0025 98.9950 99.0025 .0075 192,878 March 103.20 103.21 102.65 102.71 –.53 85,174
Tracking Bond Benchmarks March 98.9400 98.9550 98.9400 98.9550 .0150 1,422,320 June 103.14 103.19 102.61 102.69 –.53 1,454
June 98.7650 98.7850 98.7600 98.7850 .0200 1,305,786
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week Dec 98.4350 98.4750 98.4350 98.4700 .0400 1,319,030 Source: SIX Financial Information
highs and lows for different types of bonds
Total Total
return
close
YTD total
return (%) Index
Yield (%)
Latest Low High
return
close
YTD total
return (%) Index
Yield (%)
Latest Low High Cash Prices | WSJ.com/commodities Thursday, December 29, 2016
Mortgage-Backed Bloomberg Barclays These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Broad Market Bloomberg Barclays
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
1871.30 2.4 U.S. Aggregate 2.660 1.820 2.770 1932.95 1.4 Mortgage-Backed 2.960 1.930 3.070
months.
U.S. Corporate Indexes Bloomberg Barclays 1914.49 1.4 Ginnie Mae (GNMA) 2.890 1.850 2.990 Thursday Thursday Thursday

2619.18 5.8 U.S. Corporate 3.400 2.750 3.710 1129.72 1.3 Fannie mae (FNMA) 2.980 1.950 3.090 Coins,wholesale $1,000 face-a 12767 Soybeans,No.1 yllw IL-bp,u 9.8400
Energy
Other metals Wheat,Spring14%-pro Mnpls-u 6.8050
2514.51 3.9 Intermediate 2.880 2.190 3.110 1739.28 1.4 Freddie Mac (FHLMC) 3.010 1.980 3.110 Propane,tet,Mont Belvieu-g 0.7142 LBMA Platinum Price PM *899.0 Wheat,No.2 soft red,St.Louis-bp,u 3.9300
498.52 -0.2 Muni Master 2.318 1.297 2.516 Butane,normal,Mont Belvieu-g 1.2552 Platinum,Engelhard industrial 900.0 Wheat - Hard - KC (USDA) $ per bu-u 3.4825
3487.48 10.4 Long term 4.570 3.960 5.130 NaturalGas,HenryHub-i 3.680 Platinum,Engelhard fabricated 1000.0 Wheat,No.1soft white,Portld,OR-u 4.5050
539.20 3.4 Double-A-rated 2.760 1.980 2.870 346.96 -0.4 7-12 year 2.388 1.300 2.618 NaturalGas,TranscoZone3-i 3.620 Palladium,Engelhard industrial 673.0
NaturalGas,TranscoZone6NY-i 4.030
Food
667.63 7.7 Triple-B-rated 3.750 3.180 4.450 385.42 -0.2 12-22 year 2.796 1.610 3.047 Palladium,Engelhard fabricated 773.0
NaturalGas,PanhandleEast-i 3.520 Aluminum, LME, $ per metric ton *1726.5 Beef,carcass equiv. index
High Yield Bonds Merrill Lynch 370.93 1.1 22-plus year 3.343 2.027 3.622 NaturalGas,Opal-i 3.540 Copper,Comex spot 2.4790
choice 1-3,600-900 lbs.-u 180.98
NaturalGas,MarcellusNE PA-i 3.150 select 1-3,600-900 lbs.-u 168.18
388.41 17.4 High Yield Constrained 6.141 5.953 10.099 Global Government J.P. Morgan† Iron Ore, 62% Fe CFR China-s 80.0
NaturalGas,HaynesvilleN.LA-i 3.570 Broilers,dressed 'A'-u n.a.
Shredded Scrap, US Midwest-s,w 286
384.06 37.5 Triple-C-rated 11.395 11.395 21.753 536.99 2.9 Global Government 1.360 0.750 1.580 Coal,C.Aplc.,12500Btu,1.2SO2-r,w 48.050 Broilers, National comp wghtd-u,w 0.8365
Steel, HRC USA, FOB Midwest Mill-s 588
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.000 Butter,AA Chicago 2.2675
2683.02 13.0 High Yield 100 5.511 5.248 8.696 752.53 -0.4 Canada 1.880 0.770 1.960 Fibers and Textiles
Metals Cheddar cheese,bbl,Chicago 155.75
352.03 15.8 Global High Yield Constrained 5.813 5.661 9.437 n.a. n.a. EMU§ n.a. n.a. n.a. Cheddar cheese,blk,Chicago 165.50
Burlap,10-oz,40-inch NY yd-n,w 0.5400
Gold, per troy oz Milk,Nonfat dry,Chicago lb. 102.00
286.98 9.1 Europe High Yield Constrained 3.277 3.223 6.500 709.33 4.0 France 0.710 0.270 1.090 Cotton,1 1/16 std lw-mdMphs-u 0.7100 n.a.
Engelhard industrial 1148.60 Cocoa,Ivory Coast-w
Cotlook 'A' Index-t *78.55 n.a.
U.S Agency Bloomberg Barclays 516.21 4.4 Germany 0.220 -0.100 0.740 Engelhard fabricated 1234.75 Coffee,Brazilian,Comp
Handy & Harman base 1146.80
Hides,hvy native steers piece fob-u 77.250 Coffee,Colombian, NY n.a.
1601.58 1.3 U.S Agency 1.810 1.150 1.910 288.13 3.6 Japan 0.350 -0.120 0.670 Handy & Harman fabricated 1272.95 Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u 1.3250
1444.28 1.1 10-20 years 1.600 0.960 1.710 568.39 4.7 Netherlands 0.360 0.020 0.880 LBMA Gold Price AM *1139.75 Grains and Feeds Flour,hard winter KC 12.95
LBMA Gold Price PM *1134.60 Hams,17-20 lbs,Mid-US fob-u 0.74
3107.45 3.4 20-plus years 3.340 2.390 3.460 914.45 10.8 U.K. 1.530 0.960 2.290 Krugerrand,wholesale-e 1203.90 Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 56.47
Maple Leaf-e 1215.48 Bran,wheat middlings, KC-u 110 Pork bellies,12-14 lb MidUS-u n.a.
2335.10 4.2 Yankee 2.980 2.320 3.100 738.79 10.2 Emerging Markets ** 6.073 5.134 7.128
American Eagle-e 1215.48 Corn,No. 2 yellow,Cent IL-bp,u 3.3400 Pork loins,13-19 lb MidUS-u 0.9395
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds Mexican peso-e 1403.72 Corn gluten feed,Midwest-u,w n.a. Steers,Tex.-Okla. Choice-u 116.75
** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Austria crown-e 1137.68 Corn gluten meal,Midwest-u,w n.a. Steers,feeder,Okla. City-u,w n.a.
Austria phil-e 1215.48 Cottonseed meal-u,w n.a.
n.a. Fats and Oils
Global Government Bonds: Mapping Yields Silver, troy oz.
Engelhard industrial 16.0500
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w n.a. Corn oil,crude wet/dry mill-u,w 38.0000
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in Engelhard fabricated 19.2600 Oats,No.2 milling,Mnpls-u 2.9150 Grease,choice white,Chicago-u 0.2750
Handy & Harman base 16.2400 Rice, 5% Broken White, Thailand-l,w 354.00 Lard,Chicago-u 0.3100
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Handy & Harman fabricated 20.3000 Rice, Long Grain Milled, No. 2 AR-u,w n.a. Soybean oil,crude;Centl IL-u 0.3302
Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points LBMA spot price £13.1049 Sorghum,(Milo) No.2 Gulf-u 6.8700 Tallow,bleach;Chicago-u 0.3150
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago (U.S.$ equivalent) 16.0600 SoybeanMeal,Cent IL,rail,ton48%-u 322.30 Tallow,edible,Chicago-u 0.3400
1.250 U.S. 2 1.230 t l 1.258 1.087 1.095
2.000 10 2.472 t l 2.510 2.291 2.307 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;
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.
3.250 Australia 2 1.864 t l 1.917 1.768 1.993 63.4 65.9 89.8 *Data as of 12/28
Source: WSJ Market Data Group
4.750 10 2.793 t l 2.862 2.714 2.696 32.1 35.2 39.0
1.000 France 2 -0.704 s l -0.708 -0.681 -0.282 -193.4 -196.6 -137.7
0.250 10 0.649 t l 0.681 0.710 0.998 -182.3 -182.9 -130.9 Macro & Market Economics: Energy Report
0.000 Germany 2 -0.794 s l -0.823 -0.748 -0.328 -202.4 -208.1 -142.3
0.000 10 0.174 t l 0.195 0.218 0.631 -229.8 -231.5 -167.6
Watching the Gauges: U.S. Supply and Demand
0.250 Italy 2 -0.181 s l -0.195 0.077 0.045 -141.2 -145.3 -105.0 Inventories, imports and demand for the week ended December 23. Current figures are in thousands of barrels
1.250 10 1.795 t l 1.833 1.974 1.635 -67.7 -67.2
or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas
-67.6
import Natural-gas import and demand data are available monthly only.
0.100 Japan 2 -0.178 t l -0.161 -0.165 -0.010 -140.8 -141.9 -110.4
0.100 10 0.041 t l 0.061 0.018 0.270 -243.1 -244.9 -203.6 Inventories, 000s barrels Imports, 000s barrels per day
0.250 Spain 2 -0.304 t l -0.294 -0.091 0.023 -153.4 -155.2 -107.2 Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year
1.300 10 1.334 t l 1.353 1.537 1.801 -113.8 -115.7 -50.5 Current change week ago avg avg Current change week ago avg avg

1.250 U.K. 2 0.061 s l 0.050 0.086 0.626 -116.9 -120.8 -46.9 Crude oil and
2.000 10 1.091 t l 1.151 1.233 1.905 -138.0 -135.9 -40.2 petroleum prod 1,315,821 ... 1,329 1,305 1,332 1,135 9,876 ... 10,225 9,462 9,990 10,030
Source: Tullett Prebon
Crude oil
excluding SPR 486,063 -1,400 485 487 485 384 ... 8,471 7,892 8,075 8,115
Corporate Debt Gasoline 227,143 ... 229 221 229 231
8,167
434 ... 447 487 539 526
Price moves by a company’s debt in the credit markets sometimes mirror and sometimes anticipate moves in
Finished gasoline 27,122 400 26 27 26 44 9 ... 8 95 53 95
that same company’s share price. Here’s a look at both for two companies in the news.
Reformulated 47 ... 0 0 0 0 0 ... 0 0 0 0
Investment-grade spreads that tightened the most… Conventional 27,075 ... 26 27 26 44 9 ... 8 95 53 95
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg Blend. components 200,021 ... 202 194 203 186 425 ... 439 391 486 431

JPMorgan Chase JPM 7.900 April 30, ’49 50 –123 196 85.89 –0.71 Natural gas (bcf) 3,360 ... 4 4 4 3 ... ... ... ... ... ...
Hess HES 4.300 April 1, ’27 187 –11 197 62.90 –0.91 Kerosene-type
Allstate ALL 4.500 June 15, ’43 99 –9 n.a. 74.28 –0.09 jet fuel 42,017 ... 43 41 43 39 26 ... 186 34 176 71
Visa V 2.200 Dec. 14, ’20 18 –9 29 78.33 0.04 Distillates 151,634 300 154 153 154 140 157 ... 211 167 177 181
BB&T BBT 2.450 Jan. 15, ’20 24 –7 34 46.72 –1.02 Heating oil 13,249 ... 14 16 14 22 68 ... 21 70 30 69
Newell Brands NWL 2.600 March 29, ’19 56 –7 n.a. 45.30 –0.15 Diesel 138,385 ... 140 137 140 118 90 ... 190 97 147 111
U.S. Bancorp* USB 2.200 April 25, ’19 34 –6 40 51.30 –0.93 Residual fuel oil 42,210 ... 41 42 42 37 16 ... 144 92 170 216
Citigroup C 2.900 Dec. 8, ’21 102 –5 105 59.38 –1.10 Other oils 261,202 ... 265 242 266 218 896 ... 610 672 682 786

…And spreads that widened the most Net crude, petroleum

products, incl. SPR 2,010,903 ... 2,024 2,000 2,027 1,829 3,382 ... 4,794 5,119 4,256 6,517
Lloyds Banking LLOYDS 7.500 June 27, ’49 408 20 388 ... ...
Cooperatieve Rabobank UA RABOBK 4.625 Dec. 1, ’23 133 6 128 ... ...
Anheuser–Busch Inbev Finance ABIBB 3.650 Feb. 1, ’26 104 5 108 ... ...
Weekly Demand, 000s barrels per day Natural gas storage
21St Century Fox America FOXA 3.375 Nov. 15, ’26 118 5 120 28.28 –0.60 Expected Previous Year 4-week 5-year Billions of cubic feet; weekly totals
Current change week ago avg avg
Microsoft MSFT 4.000 Feb. 12, ’55 121 5 119 62.90 –0.14
Pfizer 4.125 Dec. 15, ’46 96 5 95 32.49 0.43 Total petroleum
PFE Natural gas, 4250
Wells Fargo WFC 5.875 June 15, ’49 212 5 212 54.84 –0.87
product 20,159 ... 21,409 20,478 19,887 18,286 lower 48 states
Apple AAPL 3.250 Feb. 23, ’26 81 4 79 116.73 –0.03 Finished t 3250
motor gasoline 9,278 ... 9,269 9,395 9,045 8,286
High-yield issues with the biggest price increases… Kerosene-type 2250
Bond Price as % of face value Stock Performance t
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg jet fuel 1,703 ... 1,673 1,396 1,659 1,511
Distillates 3,967 ... 4,549 3,633 4,063 3,057 Five-year average 1250
Navient NAVI 5.875 Oct. 25, ’24 96.000 1.97 94.750 16.38 –0.43 for each week
Residual fuel oil 102 ... 344 297 266 348
International Game Technology IGT 6.250 Feb. 15, ’22 107.750 1.88 107.000 25.30 –1.21 250
Propane/propylene 1,360 ... 1,453 1,034 1,448 ...
Peabody Energy BTU 6.000 Nov. 15, ’18 64.250 1.75 66.938 ... ... J F M A M J J A S O N D
Other oils 3,750 ... 4,122 4,723 3,408 ...
Antero Resources AR 5.625 June 1, ’23 102.625 1.14 102.250 23.96 0.04 2016
Bombardier BBDBCN 7.500 March 15, ’25 98.875 1.06 96.650 ... ... Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Caesars Entertainment Operating CZR 10.000 Dec. 15, ’18 71.750 1.00 68.250 … … Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Sprint S 7.125 June 15, ’24 103.250 0.87 101.772 8.81 1.03
Communications Sales & Leasing CSAL 8.250 Oct. 15, ’23 106.500 0.75 105.628 25.66 0.47
Dividend Changes
…And with the biggest price decreases
Dividend announcements from December 29. Amount Payable /
Rent–A–Center RCII 6.625 Nov. 15, ’20 91.000 –1.50 91.375 11.26 –1.92 Company Symbol Yld % New/Old Frq Record
Amount Payable /
Noble Holding International NE 7.750 Jan. 15, ’24 95.250 –1.25 96.000 … … Company Symbol Yld % New/Old Frq Record Victory CEMP EM Vol Wtd CEZ 0.4 .00895 M Jan03 /Dec30
SM Energy SM 6.125 Nov. 15, ’22 101.250 –0.97 101.250 34.71 –1.17 Victory CEMP US Discovery CSF 0.2 .00733 M Jan03 /Dec30
Initial Victory CEMP US EQ Incm CDC 0.5 .01555 M Jan03 /Dec30
Concho Resources CXO 4.375 Jan. 15, ’25 100.000 –0.95 100.250 134.14 –0.67 Gl X Internet of Things SNSR .04868 Jan06 /Dec30 Victory CEMP US SmCp CSA 0.2 .00813 M Jan03 /Dec30
Gl X Millennials Thematic MILN .04965 Jan06 /Dec30
Frontier Communications FTR 9.000 Aug. 15, ’31 84.578 –0.92 84.469 3.36 0.30 Global X Conscious Cos KRMA .15272 Jan06 /Dec30 Foreign
Dollar Tree DLTR 5.750 March 1, ’23 105.750 –0.81 105.563 77.34 –0.42 Global X Health & Well BFIT .07508 Jan06 /Dec30 Diana Ship 8.875 Pfd B DSXpB 13.8 .55469 Q Jan16 /Jan13
Global X Robotics & AI BOTZ .00853 Jan06 /Dec30 LATAM Airlines Grp ADR LFL .00025 Jan17 /Jan09
Envision Healthcare EVHC 5.625 July 15, ’22 103.100 –0.78 102.990 64.31 –0.46
Global X S&P 500 Catholic CATH .13299 Jan06 /Dec30
Chesapeake Energy CHK 8.000 Dec. 15, ’22 108.250 –0.63 107.625 7.16 –0.97 Special
Funds and investment companies Glacier Bancorp GBCI 2.2 .30 Jan19 /Jan10
*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. Gl X MSCI SuperDivi EFAS 2.2 .02837 M Jan06 /Dec30
Note: Data are for the most active issue of bonds with maturities of two years or more Global X Longevity Them LNGR .06832 Jan06 /Dec30 KEY: A: annual; c: corrected; M: monthly; Q: quarterly; r: revised; SA:
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group Global X S&P 500 Catholic CATH .00176 Jan06 /Dec30 semiannual; S2:1: stock split and ratio; SO: spin-off.
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THE WALL STREET JOURNAL. Friday, December 30, 2016 | B7

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low. Endurance ENH 92.42 0.04 ICE ICE 56.49 -0.16 MurphyOil MUR 31.47 -0.56 RoperTech ROP 183.13 -0.68 TurkcellIletism TKC 6.86 0.13 AppliedMaterials AMAT 32.66 -0.24 MarketAxess MKTX 145.53 -2.90
Market listed securities. Prices are composite dd-Indicates loss in the most recent EnelAmericas ENIA 8.21 0.25 InterContinentl IHG 43.94 0.35 NCR NCR 40.90 -0.07 RoyalBkCanada RY 67.68 -0.03 TurquoiseHill TRQ 3.22 0.07 ArchCapital ACGL 86.09 0.09 Marriott MAR 83.32 -0.04
quotations that include primary market trades four quarters. EnelGenChile EOCC 19.52 0.25 IBM IBM 166.60 0.41 NTTDoCoMo DCM 22.88 0.12 RoyalBkScotland RBS 5.47 0.01 Twitter TWTR 16.39 ... Atlassian TEAM 24.26 0.01 MarvellTech MRVL 14.11 -0.03
as well as trades reported by Nasdaq OMX FD-First day of trading. Energen EGN 59.24 ... IntlFlavors IFF 118.90 0.10 NVR NVR 1680.00 1.00 RoyalCaribbean RCL 82.96 -0.06 TylerTech TYL 143.38 0.22 Autodesk ADSK 74.98 -0.04 Mattel MAT 27.63 0.04
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing EnergyTrfrEquity ETE 19.38 0.13 IntlGameTech IGT 25.30 -0.31 NationalGrid NGG 58.66 0.84 RoyalDutchA RDS/A 54.56 0.34 TysonFoods TSN 62.15 0.50 ADP ADP 103.45 0.40 MaximIntProducts MXIM 39.02 0.06
Exchange, CBOE, National Stock Exchange, ISE standards EnergyTrfrPtrs ETP 35.71 -0.21 IntlPaper IP 53.37 -0.01 NatlOilwell NOV 37.83 -0.13 s RoyalDutchB RDS/B 58.15 0.49 UBS Group UBS 15.48 -0.08 B/EAerospace BEAV 60.19 0.12 MelcoCrownEnt MPEL 15.83 0.06
and BATS. lf-Late filing Enerplus ERF 9.43 ... Interpublic IPG 23.64 0.11 NatlRetailProp NNN 43.59 0.86 SAP SAP 86.51 0.83 UDR UDR 35.82 0.33 BOK Fin BOKF 82.76 -0.54 MercadoLibre MELI 158.51 2.89
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq EnLinkMidPtrs ENLK 18.61 -0.01 IronMountain IRM 32.38 0.26 NewOrientalEduc EDU 42.53 -0.35 S&P Global SPGI 108.61 -0.07 UGI UGI 46.48 0.51 Baidu BIDU 166.50 0.96 MicrochipTech MCHP 64.76 0.09
companies based on market capitalization. requirements. Entergy ETR 73.50 1.51 IsraelChemicals ICL 4.09 0.04 NY CmntyBcp NYCB 15.78 -0.07 SINOPECShanghai SHI 53.77 0.53 s US Foods USFD 27.25 0.30 BankofOzarks OZRK 52.50 -0.57 MicronTech MU 22.27 -0.51
Underlined quotations are those stocks with t-NYSE bankruptcy EnterpriseProd EPD 26.87 0.02 ItauUnibanco ITUB 10.35 0.16 NewellBrands NWL 45.30 -0.07 SK Telecom SKM 20.97 0.12 UltraparPart UGP 20.84 0.43 BedBath BBBY 40.87 0.29 Microsemi MSCC 55.29 0.05
large changes in volume compared with the v-Trading halted on primary market. EnvisionHlthcr EVHC 64.31 -0.30 JPMorganChase JPM 85.89 -0.61 NewfieldExpln NFX 41.24 -0.42 SLGreenRealty SLG 105.10 0.78 UnderArmour A UAA 29.23 -0.19 Biogen BIIB 287.03 -2.22 Microsoft MSFT 62.90 -0.09
issue’s average trading volume. vj-In bankruptcy or receivership or Equifax EFX 118.67 0.19 JacobsEngineering JEC 57.28 -0.21 NewmontMining NEM 35.27 2.49 Salesforce.com CRM 69.15 0.06 UnderArmour C UA 25.12 -0.11 BioMarinPharm BMRN 83.35 -0.80 Middleby MIDD 128.83 -0.04
Boldfaced quotations highlight those issues being reorganized under the EquityLife ELS 71.33 1.02 JamesHardie JHX 15.98 0.10 NextEraEnergy NEE 120.18 1.53 Sanofi SNY 39.71 0.45 Unilever UN 40.83 0.37 BlackBerry BBRY 6.95 -0.05 Mondelez MDLZ 44.84 0.12
whose price changed by 5% or more if their Bankruptcy Code, or securities EquityResdntl EQR 63.68 0.76 J&J JNJ 115.49 0.39 NielsenHoldings NLSN 42.10 -0.14 Sasol SSL 28.97 0.44 Unilever UL 40.52 0.25 Broadcom AVGO 179.87 -0.32 MonsterBeverage MNST 45.03 0.12
previous closing price was $2 or higher. assumed by such companies. EssexProp ESS 229.52 1.97 JohnsonControls JCI 41.68 -0.18 Nike NKE 51.06 0.04 Scana SCG 73.61 0.69 UnionPacific UNP 104.42 -0.34 s BrocadeComm BRCD 12.51 0.01 Mylan MYL 37.38 0.17
EsteeLauder EL 77.27 0.05 JoyGlobal JOY 28.01 -0.01 NipponTelegraph NTT 42.21 0.08 Schlumberger SLB 84.20 -0.43 UnitedContinental UAL 73.28 -0.25 CA CA 32.14 0.17 NXP Semi NXPI 98.10 -0.29
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and EverestRe RE 216.12 0.54 JuniperNetworks JNPR 28.37 -0.06 NiSource NI 22.24 0.29 SchwabC SCHW 39.58 -0.31 UPS B UPS 114.98 -0.22 CBOE Holdings CBOE 73.67 0.36 Nasdaq NDAQ 67.01 -0.33
changes in the closing prices from 4 p.m. the previous day. EversourceEner ES 55.57 0.85 KAR Auction KAR 42.58 0.01 NobleEnergy NBL 38.27 -0.53 ScottsMiracleGro SMG 94.75 -0.11 UnitedRentals URI 106.70 0.49 CDK Global CDK 60.65 0.40 NetApp NTAP 35.68 -0.15
Exelon EXC 35.72 0.52 KB Fin KB 35.18 -0.71 Nokia NOK 4.83 0.03 SealedAir SEE 45.51 -0.20 US Bancorp USB 51.30 -0.48 CDW CDW 52.69 -0.07 Netease NTES 223.00 -0.92
ExtraSpaceSt EXR 75.59 1.25 KKR KKR 15.47 -0.14 NomuraHoldings NMR 5.87 -0.07 s SemicondctrMfg SMI 7.56 0.55 US Steel X 34.87 -0.21 CH Robinson CHRW 73.73 0.26 Netflix NFLX 125.33 -0.56
Thursday, December 29, 2016 Net Net ExxonMobil XOM 90.35 0.05 KT Nordstrom JWN 48.29 -0.12 CME Group CME 115.59 -0.37
KT 14.11 0.12 SempraEnergy SRE 100.99 1.07 UnitedTech UTX 110.55 0.36 NewsCorp A NWSA 11.66 -0.03
Net Stock Sym Close Chg Stock Sym Close Chg FMC FMC 56.76 0.10 KSCitySouthern KSU 84.46 -0.07 NorfolkSouthern NSC 108.82 0.10 SensataTech ST 39.05 -0.32 UnitedHealth UNH 161.04 -0.40 CSX CSX 36.23 -0.29 NewsCorp B NWS 12.05 ...
Stock Sym Close Chg BCE BCE 43.19 0.39 CenturyLink CTL 24.03 ... FMC Tech FTI 35.55 0.36 Kellogg K 73.96 0.53 NorthropGrumman NOC 232.63 0.68 ServiceCorp SCI 28.56 0.05 UniversalHealthB UHS 106.40 0.26 CadenceDesign CDNS 25.52 0.13 Nordson NDSN 112.91 0.39
BHPBilliton BHP 36.27 0.05 ChesapeakeEner CHK 7.16 -0.07 FactSet FDS 161.94 -0.78 KeyCorp KEY 18.11 -0.15 Novartis NVS 72.44 0.82 ServiceNow NOW 74.94 -0.28 UnumGroup UNM 43.81 -0.15 Celgene CELG 116.93 -0.36 NorthernTrust NTRS 88.63 -0.58
NYSE BHPBilliton BBL 31.86 0.01 Chevron CVX 117.82 -0.09 FederalRealty FRT 140.05 2.10 KeysightTechs KEYS 36.63 0.17 NovoNordisk NVO 35.82 0.39 ShawComm B SJR 20.04 0.11 VEREIT VER 8.33 0.12 Cerner CERN 47.92 0.45 NorwegianCruise NCLH 42.66 -0.27
s BP BP 37.40 0.15 ChinaEastrnAir CEA 22.92 0.40 FedEx FDX 186.95 -1.50 KilroyRealty KRC 71.48 1.06 Nucor NUE 60.93 0.01 SherwinWilliams SHW 271.13 0.83 VF VFC 53.63 -0.18 s CharterComms CHTR 292.19 1.07 NVIDIA NVDA111.43 2.18
ABB ABB 21.08 0.04
BRF BRFS 14.75 0.22 ChinaLifeIns LFC 12.84 ... Ferrari RACE 57.79 0.04 KimberlyClark KMB 115.08 0.93 NuSTAREnergy NS 49.51 -0.68 ShinhanFin SHG 37.40 -1.01 Visa V 78.33 0.03 CheckPointSftw CHKP 85.05 -0.13 OPKOHealth OPK 11.46 0.12
AECOM ACM 36.37 -0.54
AES AES 11.70 0.06
BT Group BT 23.06 0.48 ChinaMobile CHL 52.53 0.35 FiatChrysler FCAU 9.06 0.07 t KimcoRealty KIM 24.78 0.34 OGE Energy OGE 33.64 0.39 Shopify SHOP 43.10 -0.12 VailResorts MTN 162.09 0.25 CincinnatiFin CINF 75.87 -0.09 OReillyAuto ORLY 281.64 0.97
BakerHughes BHI 64.72 0.01 ChinaPetrol SNP 70.98 0.10 FibriaCelulose FBR 9.60 0.05 KinderMorgan KMI 20.76 0.03 ONEOK OKE 57.98 0.31 SignetJewelers SIG 93.95 0.25 Vale VALE 7.91 -0.11 Cintas CTAS 116.32 0.72 OldDomFreight ODFL 86.23 0.55
Aflac AFL 69.83 0.03 FidelityNatlFin FNF 33.65 -0.14 KinrossGold KGC 3.27 0.16 ONEOK Partners OKS 43.74 -0.76 SilverWheaton SLW 20.22 1.74 ValeantPharm VRX 14.15 -0.08 CiscoSystems CSCO 30.46 0.04
Ball BLL 75.69 -0.32 ChinaSoAirlines ZNH 25.95 0.03 ON Semi ON 12.97 -0.10
AT&T T 42.66 0.14 FNFV Group FNFV 13.80 0.10 Kohl's OccidentalPetrol OXY 71.60 -0.27 CitrixSystems CTXS 90.02 -0.06
BancoBilbaoViz BBVA 6.68 0.02 ChinaTelecom CHA 46.35 0.37 KSS 50.06 0.25 SimonProperty SPG 175.98 1.78 ValeroEnergy VLO 68.63 -0.04 OpenText OTEX 62.05 0.53
AXIS Capital AXS 65.21 0.24
BancodeChile BCH 70.53 1.41 ChinaUnicom CHU 11.59 0.04 FidelityNtlInfo FIS 77.00 0.42 KoninklijkePhil PHG 30.33 0.16 Och-Ziff OZM 3.26 0.06 SixFlags SIX 60.30 0.10 Valspar VAL 103.72 0.21 Cognex CGNX 64.06 0.28 PTC PTC 46.55 0.20
AbbottLabs ABT 38.31 0.09 FirstData FDC 14.28 -0.44 KoreaElcPwr KEP 18.63 0.13 OmegaHealthcare OHI 30.93 0.40 SmithAO CognizantTech CTSH 56.18 0.03
BcoSantChile BSAC 21.91 0.05 Chipotle CMG 376.61 -8.76 AOS 47.66 0.07 Vantiv VNTV 59.40 0.10 Paccar PCAR 64.37 -0.59
AbbVie ABBV 62.73 0.46 s FirstRepBank FRC 91.48
Accenture ACN 117.01 0.40
BancoSantander SAN 5.06 0.02 Chubb CB 132.24 0.08 -0.39 Kroger KR 34.59 -0.09 Omnicom OMC 85.68 -0.28 Smith&Nephew SNN 29.96 0.12 VarianMed VAR 90.24 -0.41 Comcast A CMCSA 70.09 -0.36 PacWestBancorp PACW 54.40 -0.03
BanColombia CIB 36.43 0.43 ChunghwaTelecom CHT 31.54 -0.04 FirstEnergy FE 31.12 0.28 Kyocera KYO 49.87 -0.18 Oracle ORCL 38.69 0.01 Smucker SJM 129.15 1.19 Vedanta VEDL 12.73 0.37 CommerceBcshrs CBSH 57.73 -0.26 Paychex PAYX 61.40 0.06
AcuityBrands AYI 232.79 1.99
Adient ADNT 57.87 0.11
BankofAmerica BAC 22.00 -0.33 Church&Dwight CHD 44.82 0.67 FleetCorTech FLT 142.13 0.27 L Brands LB 66.29 0.18 Orange ORAN 15.00 0.32 SnapOn SNA 172.15 0.41 VeevaSystems VEEV 41.08 -0.22 CommScope COMM 36.96 0.22 PayPal PYPL 39.96 0.39
BankofMontreal BMO 71.82 0.12 Cigna CI 135.50 -1.50 Flowserve FLS 48.05 -0.27 LGDisplay LPL 12.97 -0.04 OrbitalATK OA 88.46 0.62 SOQUIMICH SQM
28.50 0.24 Ventas VTR 61.73 0.57 Copart CPRT 55.53 -0.02 People'sUtdFin PBCT 19.37 -0.12
AdvanceAuto AAP 170.28 -0.14
BankNY Mellon BK 47.34 -0.31 CimarexEnergy XEC 136.32 -0.12 Fluor FLR 52.47 -0.54 LINE LN 33.71 -0.11 Orix IX 78.12 -0.66 SonocoProducts SON 53.35 0.02 Verizon VZ 53.74 0.30 CoStarGroup CSGP 187.94 -2.69 Priceline PCLN 1480.16 -0.30
AdvSemiEngg ASX 5.08 -0.01
Aegon AEG 5.47 0.01 BkNovaScotia BNS 55.83 0.16 Citigroup C 59.38 -0.66 FomentoEconMex FMX 76.86 0.78 L-3 Comm LLL 152.97 1.26 OwensCorning OC 52.09 0.06
Sony SNE 28.15 -0.13 VermilionEnergy VET 41.79 -0.06 Costco COST 161.13 0.12 Qiagen QGEN 28.03 0.29
Barclays BCS 10.85 -0.04 CitizensFin CFG 35.28 -0.72 FootLocker FL 70.89 -0.25
LabCpAm LH 128.17 0.61 PG&E PCG 61.09 1.01 Southern SO 49.37 0.47 Vipshop VIPS 11.07 -0.04 Ctrip.com CTRP 39.99 0.02 Qorvo QRVO 53.61 -1.09
AerCap AER 41.57 -0.22
Bard CR BCR 224.13 1.68 Clorox CLX 121.36 1.04 FordMotor F 12.23 -0.02 s
LambWeston LW 37.77 0.54 PLDT PHI 27.53 0.46 SoCopper SCCO 32.03 -0.22 VMware VMW 79.11 -0.36 DISH Network DISH 58.40 -0.55 Qualcomm QCOM 66.04 0.29
Aetna AET 124.45 -0.13 ForestCIty A FCE/A 20.34 0.18 PNC 116.10 -0.96 SouthwestAirlines LUV 50.20 0.03 VornadoRealty VNO 102.85 0.53 DentsplySirona XRAY 58.25 0.10
AffiliatedMgrs AMG 143.93 0.26 BarrickGold ABX 16.39 1.11 Coach COH 35.01 -0.13 LasVegasSands LVS 54.06 0.19 PNC Fin RandgoldRscs GOLD 79.08 3.52
BaxterIntl BAX 44.26 0.07 Coca-Cola KO 41.60 0.21 ForestCity B FCE/B 26.12 0.40
Lazard LAZ 40.99 0.18 POSCO PKX 53.22 -0.35 SouthwesternEner SWN 10.70 -0.19 VoyaFinancial VOYA 39.39 -0.39 DexCom DXCM 60.64 -0.37 RegenPharm REGN 373.72 -5.03
AgilentTechs A 45.64 0.05 Fortis FTS 30.85 0.40 PPG Ind PPG 95.31 0.64 SpectraEnergy SE 41.16 0.16 VulcanMaterials VMC 127.25 0.40 DiamondbackEner FANG 102.05 -0.89
BectonDickinson BDX 166.15 0.28 Coca-Cola Femsa KOF 64.47 1.24 Lear LEA 132.70 0.07 RossStores ROST 66.37 -0.15
AgnicoEagle AEM 43.40 2.90 Fortive FTV 54.01 0.26 PPL PPL 34.26 0.40 WABCO WBC 106.13 -0.56 DiscoveryComm A DISCA 27.69 -0.20 Ryanair RYAAY 83.26
Berkley WRB 66.65 0.25 Colgate-Palmolive CL 65.89 0.28 Leggett&Platt LEG 49.60 0.09 SpectraEnerPtrs SEP 45.50 -0.15 -0.53
Agrium AGU 100.92 0.74 FortBrandsHome FBHS 54.05 -0.13 DiscoveryComm C DISCK 27.01 -0.26
AirProducts APD 144.37 0.11 BerkHathwy A BRK/A 244500-830.00 Comerica CMA 67.92 -0.71 Leidos LDOS 51.39 0.49 PVH PVH 90.87 0.86
SpectrumBrands SPB 123.18 1.43 EWEC Energy WEC 58.85 0.95 SBA Comm SBAC 103.95 -0.15
Franco-Nevada FNV 61.39 1.94 DollarTree DLTR 77.34 -0.33
AlaskaAir ALK 88.53 -0.16 BerkHathwy B BRK/B 163.05 -0.70 SABESP SBS 8.71 0.23 Lennar A LEN 42.90 -0.26 PackagingCpAm PKG 85.06 -0.13 SpiritAeroSys SPR 58.61 -0.03 W.P.Carey WPC 58.39 0.46 SEI Investments SEIC 49.40 0.06
FranklinRscs BEN 39.41 -0.06 Dunkin' DNKN 53.23 0.09
Albemarle ALB 87.07 0.49 BerryPlastics BERY 49.24 -0.35 CSC CSC 59.73 0.11 Lennar B LEN/B 34.50 -0.18 PaloAltoNtwks PANW 125.13 0.16 Sprint S 8.81 0.09 WPX Energy WPX 14.55 -0.25 SS&C Tech SSNC 28.96 0.17
BestBuy BBY 43.07 -0.64 ConagraBrands CAG 39.78 0.24
Freeport-McMoRan FCX 13.48 -0.09
LennoxIntl LII 155.39 0.45
ParkHotels PKw 29.75 0.85
StJudeMedical STJ 79.83 0.02 Wabtec WAB 83.54 -0.01 E*TRADE ETFC 34.59 -0.25 SVB Fin SIVB 170.38 -2.30
Alcoa AA 28.89 -0.54 FreseniusMed FMS 42.50 0.44 ParkerHannifin PH 140.26 -0.61 Wal-Mart EastWestBancorp EWBC 50.80 -0.20
Bio-RadLab A BIO 183.23 -0.23 ConchoRscs CXO 134.14 -0.90 LeucadiaNatl LUK 23.20 -0.02 StanleyBlackDck SWK 115.24 0.15 WMT 69.26 -0.05 Sabre SABR 25.00 0.10
AlexandriaRealEst ARE 110.45 1.91 Gallagher AJG 51.84 0.22 ParsleyEnergy PE 35.38 -0.28 eBay EBAY 29.98 -0.03
Alibaba BABA 87.33 -0.04 BlackRock BLK 379.00 -2.03 ConocoPhillips COP 50.54 -0.23 Level3Comm LVLT 56.83 -0.07 StarwoodProp STWD 22.04 0.27 WasteConnections WCN 78.78 0.22 ScrippsNetworks SNI 71.79 -0.24
Gap GPS 22.73 0.03 Pearson PSO 9.98 0.10 ElectronicArts EA 80.16 -0.22
Alleghany Y 609.19 3.76 BlackstoneGroup BX 27.15 -0.18 ConEd ED 74.07 1.00 LibertyProperty LPT 39.02 0.58 StateStreet STT 77.66 -0.36 WasteMgt WM 71.01 0.05 Seagate STX 38.02 -0.77
Gartner IT 101.38 -0.09 PembinaPipeline PBA 31.27 0.26 Equinix EQIX 357.09 3.23
Allegion ALLE 64.77 -0.03 BoardwalkPipe BWP 17.57 -0.34 ConstBrands A STZ 153.74 1.35 EliLilly LLY 73.56 0.50 Statoil STO 18.37 0.19 Waters WAT 134.50 -0.16 SeattleGenetics SGEN 53.39 0.31
Boeing BA 155.69 -0.41 ConstBrands B STZ/B 153.17 2.17
Gazit-Globe GZT 8.59 -0.11
LincolnNational LNC 66.12 -0.48
Pentair PNR 56.51 0.25
Steris STE 67.54 -0.22 Watsco WSO 148.99 0.86 Ericsson ERIC 5.76 -0.02 Shire SHPG 169.71 1.87
Allergan AGN 207.21 3.15 GeneralDynamics GD 173.21 0.16 PepsiCo PEP 104.99 0.37 ErieIndemnity A ERIE 113.47 0.89
AllianceData ADS 229.25 0.68 BoozAllen BAH 36.25 0.24 ContinentalRscs CLR 51.40 -0.32
GeneralElec GE 31.71 0.01
LiveNationEnt LYV 26.81 -0.06 STMicroelec STM 11.22 0.06 WellCareHealth WCG 137.10 -0.51 Expedia EXPE 113.97 0.50
SignatureBank SBNY 149.36 -0.24
PerkinElmer PKI 52.18 -0.01
AllianceBernstein AB 23.70 0.20 BorgWarner BWA 39.49 0.16 Cooper COO 175.49 0.15
GeneralGrowthProp GGP 24.51 0.10
LloydsBanking LYG 3.09 ... Stryker SYK 120.52 0.64 WellsFargo WFC 54.84 -0.48 ExpeditorsIntl EXPD 53.08 -0.03 SiriusXM SIRI 4.47 -0.03
Perrigo PRGO 82.31 -0.53 Welltower HCN 65.77 0.37 Skyworks SWKS 76.56 -0.47
AlliantEnergy LNT 38.19 0.65 BostonProperties BXP 123.67 1.21 CoreLabs CLB 119.17 0.38 LockheedMartin LMT 250.59 1.01 SumitomoMits SMFG 7.62 -0.13
GeneralMills GIS 62.36 0.47 PetroChina PTR 74.19 -0.57 ExpressScripts ESRX 69.39 -0.11
AllisonTransm ALSN 33.90 0.01 BostonScientific BSX 21.70 0.08 Corning GLW 24.44 -0.01
GeneralMotors GM 35.14 -0.01
Loews L 46.95 -0.24 SunCommunities SUI 75.86 0.83 WestPharmSvcs WST 85.23 0.48 F5Networks FFIV 144.92 0.86 Splunk SPLK 51.81 -0.25
PetroleoBrasil PBR 10.33 ... WestarEnergy WR 56.25 0.09 Staples SPLS 9.18 0.08
s Braskem BAK 21.10 0.19 Coty COTY 18.41 -0.08 Lowe's LOW 71.34 -0.23
Allstate ALL 74.28 -0.07 GenuineParts GPC 96.45 0.08 PetroleoBrasilA PBR/A 9.02 0.10 SunLifeFinancial SLF 38.12 0.19 WestAllianceBcp WAL 48.91 -0.30 Facebook FB 116.35 -0.57 Starbucks SBUX 56.32 -0.03
Bristol-Myers BMY 58.90 0.29 Credicorp BAP 157.65 -0.46
AllyFinancial ALLY 19.20 -0.24 Gerdau GGB 3.22 -0.02 Luxottica LUX 53.49 0.19
Pfizer PFE 32.49 0.14 SuncorEnergy SU 32.77 0.26 WesternGasEquity WGP 42.25 -0.34 Fastenal FAST 47.21 -0.17 SteelDynamics STLD 36.26 -0.15
BrixmorProperty BRX 24.20 0.22 CreditSuisse CS 14.18 -0.35
Altria MO 67.85 0.34 Gildan GIL 25.54 0.09 LyondellBasell LYB 86.01 -0.37 PhilipMorris PM 91.73 0.79 SunocoLogistics SXL 24.00 -0.21 s WesternGasPtrs WES 60.13 -0.09 FifthThirdBncp FITB 26.73 -0.53 Stericycle SRCL 76.86 0.75
BroadridgeFinl BR 66.85 0.33 CrescentPoint CPG 13.62 0.04 M&T Bank MTB
AlumofChina ACH 9.95 -0.02 GlaxoSmithKline GSK 38.44 0.28 155.63 -1.02
Phillips66 PSX 86.65 -0.47 SunTrustBanks STI 54.69 -0.79 WesternUnion WU 21.83 0.10 Fiserv FISV 107.28 0.08 Symantec SYMC 24.23 0.08
Ambev ABEV 4.95 0.04 BrookfieldMgt BAM 32.97 0.14 CrestwoodEquity CEQP 24.75 0.45
GlobalPayments GPN 69.82 0.15 MDU Rscs MDU 29.05 0.15 s PinnacleFoods PF 53.68 0.25 SynchronyFin SYF 36.09 -0.15 WestlakeChem WLK 56.47 -0.43 Flex FLEX 14.40 0.05
BrookfieldInfr BIP 33.36 0.20 CrownCastle CCI 87.01 0.24 MGM Resorts MGM 28.50 -0.22 PinnacleWest PNW 78.25 1.32 Syngenta SYT 79.29 -0.03 Synopsys SNPS 59.42 0.20
Ameren AEE 52.56 0.74 Goldcorp GG 13.87 0.71 Fortinet FTNT 30.30 -0.05
AmericaMovil AMX 12.63 0.12 Brown&Brown BRO 44.79 0.20 CrownHoldings CCK 52.92 -0.25
GoldmanSachs GS 238.18 -2.47
MPLX MPLX 34.03 0.49 PioneerNatRscs PXD 181.65 -0.16 SynovusFin SNV 41.06 -0.31 WestpacBanking WBK 23.65 0.09 Gaming&Leisure GLPI 30.31 0.26 TD Ameritrade AMTD 43.53 -0.32
Brown-Forman A BF/A 46.58 0.07 Cullen/Frost CFR 87.31 -0.36 WestRock WRK 51.61 0.08 TESARO TSRO 135.06 0.20
AmericaMovil A AMOV 12.50 0.18 Grainger GWW 233.54 -0.38 MSCI MSCI 78.57 0.21 PlainsAllAmPipe PAA 32.47 -0.58 Sysco SYY 55.92 0.19
Weyerhaeuser WY 30.35 0.46 Garmin GRMN 49.01 -0.21 TFS Fin TFSL 19.09 -0.06
AmCampus ACC 49.13 0.83 Brown-Forman B BF/B 45.13 0.28 Cummins CMI 136.42 -0.04
0.34 MSC Industrial MSM 93.34 -0.25 PolarisIndustries PII 81.37 0.55 TAL Education TAL 71.12 0.67 Whirlpool
BuckeyePtrs BPL 65.96 -0.23 DDR DDR 15.07 0.26
GreatPlainsEner GXP 27.60
Macerich MAC 69.25 0.24 TE Connectivity TEL 70.05 0.05 WHR 183.19 0.37 Gentex GNTX 19.96 0.04 T-MobileUS TMUS 58.05 0.05
AEP AEP 63.28 0.89 GpoAvalAcciones AVAL 8.08 0.09 PostHoldings POST 80.58 0.39 GileadSciences GILD 72.13 -0.64
AmericanExpress AXP 73.92 -0.45 Bunge BG 70.83 -0.18 Danaher DHR 78.22 0.09 GpFinSantandMex BSMX 7.13 0.12 MacquarieInfr MIC 81.73 0.17 Potash POT 18.19 0.10 Telus TU 31.84 0.31 WhiteWaveFoods WWAV 55.55 -0.03 Goodyear GT 31.13 -0.07 TRowePrice TROW 75.54 -0.53
BurlingtonStores BURL 85.35 0.03 Darden DRI 73.78 0.10 Macy's M Ternium Williams WMB 31.01 -0.03 TeslaMotors TSLA 214.68 -5.06
s AmericanFin AFG 88.05 0.37 GrupoTelevisa TV 21.13 -0.02 36.29 0.01 Praxair PX 117.41 -0.07 TX 24.67 -0.23 Grifols GRFS 15.86 -0.06
AIG AIG 65.50 -0.38 CBRE Group CBG 31.15 -0.07 DaVita DVA 64.36 0.05 GuangshenRail GSH 29.55 0.05 MagellanMid MMP 74.95 -0.07 PrincipalFin PFG 57.85 -0.15 TIM Part TSU 12.00 0.28 WilliamsPartners WPZ 38.09 0.23 HDSupply HDS 42.74 -0.21 TexasInstruments TXN 74.15 0.10
AmerTowerREIT AMT 106.39 0.55 CBS A CBS/A 65.60 -0.05 Deere DE 103.21 -0.20 HCAHoldings HCA 73.89 0.33 MagnaIntl MGA 43.65 0.08 Procter&Gamble PG 84.35 0.28 TJX TJX 75.71 0.40 Wipro WIT 9.60 0.07
Hasbro HAS 77.93 0.31
TractorSupply TSCO 76.02 0.29
WooriBank WF 32.67 -0.33 Trimble TRMB 30.22 0.05
AmerWaterWorks AWK 72.72 0.74 CBS B CBS 64.50 ... DelphiAutomotive DLPH 67.36 0.05 HCP HCP 29.36 0.35 t Mallinckrodt MNK 49.51 -0.18 Progressive PGR 35.51 0.04 TaiwanSemicon TSM 29.13 0.01 Workday WDAY 67.04 0.11 HenrySchein HSIC 153.12 0.87 TripAdvisor TRIP 46.95 0.10
Amerigas APU 47.83 0.06 CF Industries CF 31.90 0.27 DeltaAir DAL 49.31 -0.20 HDFC Bank HDB 60.83 0.21 Manpower MAN 89.22 -0.38 Prologis PLD 52.27 0.72 TargaResources TRGP 56.67 -0.41 Wyndham WYN 76.72 0.17 Hologic HOLX 40.08 0.19
CGI Group GIB 47.72 0.32 DeutscheBank DB 17.82 21stCenturyFoxA FOXA 28.28 -0.17
Ameriprise AMP 109.92 -0.90 -0.10 HP HPQ 14.94 ... ManulifeFin MFC 17.77 -0.05 PrudentialFin PRU 103.92 -1.04 Target TGT 72.62 -0.21
XcelEnergy XEL 40.94 0.65 HospitalityProp HPT 31.55 0.59 21stCenturyFoxB FOX 27.48 -0.18
AmerisourceBrgn ABC 79.34 0.99 CIT Group CIT 42.70 -0.46 DevonEnergy DVN 45.95 -0.29 HSBCHoldings HSBC 39.77 ... MarathonOil MRO 17.57 -0.28 Prudential PUK 39.44 0.44 TataMotors TTM 34.24 0.76 Xerox JBHunt JBHT 97.34 0.26
CMS Energy CMS 41.77 0.47 Diageo DEO 103.46 XRX 8.72 -0.04 UltaSalon ULTA 257.34 1.59
Ametek AME 48.66 -0.09 0.70 Halliburton HAL 54.04 -0.26 MarathonPetrol MPC 50.45 0.12 PublicServiceEnt PEG 44.05 0.64 TeckRscsB TECK 20.32 -0.54 Xylem XYL 49.77 -0.17 HuntingtonBcshs HBAN 13.08 -0.17 UltimateSoftware ULTI 181.81 -0.23
Amphenol APH 67.60 0.03 CNA Fin CNA 41.50 ... Dick's DKS 52.38 0.09 t Hanesbrands HBI 21.65 0.12 MarineHarvest MHG 18.15 0.12 PublicStorage PSA 220.40 2.12 TelecomItalia TI 8.88 0.09 IAC/InterActive IAC 65.67 0.01
AnadarkoPetrol APC 70.11 -0.53 CNOOC CEO 123.94 -0.50 DigitalRealty DLR 98.41 2.39 HarleyDavidson HOG 58.16 0.25 Markel MKL 903.58 -2.33 PulteGroup PHM 18.50 0.05 TelecomItalia A TI/A 7.27 0.11 YPF YPF 15.99 -0.01
IdexxLab IDXX 118.08 0.33
UnitedTherap UTHR 143.94 0.97
ABInBev BUD 104.89 0.99 CPFLEnergia CPL 15.46 0.21 DiscoverFinSvcs DFS 71.85 -0.06 HarmanIntlInds HAR 111.06 -0.09 Marsh&McLennan MMC 67.75 0.03 QuestDiag DGX 91.87 0.11 Teleflex TFX 161.58 1.59 YanzhouCoal YZC 6.69 0.09 IHSMarkit INFO 35.11 -0.15 VCA WOOF 68.74 0.51
CRH Disney DIS 104.56 YumBrands YUM 63.63 -0.09 VeriSign VRSN 75.98 -1.01
AnnalyCap NLY 10.04 0.08 CRH 33.86 0.39 0.26 Harris HRS 103.11 -0.23 MartinMarietta MLM 224.84 -1.33 QuintilesIMS Q 75.88 -0.08 TelefonicaBras VIV 13.52 0.38 YumChina YUMC 26.00 0.01 IPG Photonics IPGP 99.60 0.08 VeriskAnalytics VRSK 81.70 0.05
AnteroMidstream AM 30.95 0.08 CSRA CSRA 31.94 0.35 DollarGeneral DG 74.13 0.11 HartfordFinl HIG 47.72 -0.01 Masco MAS 31.89 0.06 RELX RENX 16.66 0.14 Telefonica TEF 9.13 0.10 ZTO Express ZTO 12.44 0.13 IcahnEnterprises IEP 60.21 -1.75
CVS Health CVS 79.00 -0.04 DominionRscs D VertxPharm VRTX 74.44 -0.15
AnteroResources AR 23.96 0.01 76.99 0.66 Helmerich&Payne HP 78.17 -0.22 Mastercard MA 103.77 0.09 RELX RELX 17.88 0.18 TelekmIndonesia TLK 28.89 0.79 ZayoGroup ZAYO 33.34 ... Illumina ILMN 128.72 0.79 Viacom A VIA 38.85 -0.10
Anthem ANTM 144.76 0.50 CabotOil COG 22.74 -0.18 Domino's DPZ 162.36 1.11 McCormick MKC 93.67 0.88 RPM 53.97 -0.05 Tenaris TS 35.62 0.18
CAE Donaldson DCI 42.41
Hershey HSY 103.99 0.84 RPM ZimmerBiomet ZBH 103.50 0.44 Incyte INCY 101.96 0.86 Viacom B VIAB 35.28 -0.24
Aon AON 111.42 -0.30 CAE 13.91 -0.03 0.15 Hess HES 62.90 -0.58 McCormickVtg MKC/V 93.50 0.55 RSP Permian RSPP 44.72 -0.44 Teradyne TER 25.57 -0.06
Zoetis ZTS 53.62 0.18 Intel INTC 36.66 0.03 VimpelCom VIP 3.78 -0.06
Apache APA 63.87 -0.72 CamdenProperty CPT 83.30 0.61 DouglasEmmett DEI 35.97 0.52 HewlettPackard HPE 23.34 0.04 McDonalds MCD 122.79 0.11 RalphLauren RL 90.74 0.76 Tesoro TSO 88.55 -0.14 Intuit INTU 114.92 -0.54
Cameco Dover Vodafone VOD 24.53 0.14
ApartmtInv AIV 44.70 0.47 CCJ 10.33 0.09 DOV 75.19 -0.12 HiltonWorldwide HLT 27.25 0.20 McKesson MCK 141.78 0.25 RangeResources RRC 34.26 -0.06 TesoroLogistics TLLP 51.09 -0.14 NASDAQ
IntuitiveSurgical ISRG 636.55 1.00 WPP WPPGY 110.35 -0.07
AquaAmerica WTR 30.07 0.30 CampbellSoup CPB 60.95 0.42 DowChemical DOW 57.42 -0.48 HollyFrontier HFC 33.16 -0.08 MeadJohnson MJN 70.85 0.09 RaymondJames RJF 69.35 -0.55 TevaPharm TEVA 36.08 0.15 IonisPharma IONS 48.62 -2.92
DrPepperSnap DPS 90.96 WalgreensBoots WBA 83.48 -0.11
Aramark ARMK 35.87 -0.06 CIBC CM 81.81 0.06 0.50 HomeDepot HD 135.10 0.03 Mednax MD 66.93 0.34 Raytheon RTN 143.39 1.57 Textron TXT 48.58 0.06 AGNC Invt AGNC 18.16 0.25 JD.com JD 25.64 -0.10 Weibo WB 41.14 -0.32
ArcelorMittal MT 7.35 -0.01 CanNtlRlwy CNI 67.99 0.34 DrReddy'sLab RDY 44.78 -0.03 HondaMotor HMC 29.28 -0.29 Medtronic MDT 71.54 -0.27 RealtyIncome O 56.63 0.74 ThermoFisherSci TMO 141.48 0.26 Ansys ANSS 92.66 0.09 JackHenry JKHY 89.18 0.29
WesternDigital WDC 68.43 -0.78
ArcherDaniels ADM 45.36 0.02 CanNaturalRes CNQ 31.97 -0.24 DuPont DD 73.81 -0.57 Honeywell HON 116.00 0.25 Merck MRK 59.04 -0.23 RedHat RHT 69.65 -0.37 ThomsonReuters TRI 43.84 0.14 ARRIS Intl ARRS 30.11 0.19 JazzPharma JAZZ 107.54 -0.82 WholeFoods WFM 31.01 -0.21
Arconic ARNC 18.70 -0.55 CanPacRlwy CP 143.04 0.84 DukeEnergy DUK 78.02 0.99 HormelFoods HRL 35.24 0.39 MetLife MET 53.80 -0.17 RegencyCtrs REG 68.00 1.23 ThorIndustries THO 100.73 -0.08 ASML ASML 111.16 0.38 JetBlue JBLU 22.14 0.11 WillisTwrsWatson WLTW 122.17 -0.21
AristaNetworks ANET 96.73 -0.52 Canon CAJ 27.78 -0.35 DukeRealty DRE 26.10 0.44 DR Horton DHI 27.53 -0.08 MettlerToledo MTD 420.32 -0.26 RegionsFin RF 14.17 -0.26 3M MMM 178.41 0.33 ActivisionBliz ATVI 36.48 0.05 KLA Tencor KLAC 79.29 -0.47
WynnResorts WYNN 87.17 0.09
ArrowElec ARW 72.16 0.16 CapitalOne COF 87.11 -1.08 ENI E 32.12 0.42 HostHotels HST 18.75 0.18 MichaelKors KORS 42.84 -0.30 ReinsuranceGrp RGA 125.94 -0.27 Tiffany TIF 77.40 0.02 AdobeSystems ADBE 103.68 -0.09 KraftHeinz KHC 87.93 0.62
Xilinx XLNX 60.74 0.11
AshlandGlobal ASH 110.10 0.69 CardinalHealth CAH 72.35 0.25 EOG Rscs EOG 101.28 -0.37 HuanengPower HNP 25.97 0.75 MidAmApt MAA 96.59 0.70 RelianceSteel RS 80.75 -0.28 TimeWarner TWX 96.69 0.47 AkamaiTech AKAM 67.04 -0.23 LKQ LKQ 30.88 ...
Yahoo YHOO 38.64 -0.09
Assurant AIZ 92.67 -0.52 Carlisle CSL 110.36 -0.59 EQT EQT 65.62 -0.63 Hubbell HUBB 117.36 0.23 MitsubishiUFJ MTU 6.10 -0.10 RenaissanceRe RNR 135.89 0.56 Toll Bros TOL 31.38 -0.15 AlexionPharm ALXN 123.63 -0.10 LamResearch LRCX 107.15 -0.42
Yandex YNDX 20.35 0.12
AstraZeneca AZN 27.36 0.15 CarMax KMX 63.90 0.11 EQT Midstream EQM 75.26 0.17 Humana HUM 202.92 -1.68 MizuhoFin MFG 3.54 -0.07 RepublicServices RSG 57.15 0.15 Torchmark TMK 73.63 -0.25 AlignTech ALGN 96.96 0.16 LamarAdvertising LAMR 67.50 0.05
Zillow A ZG 37.05 -0.10
Athene ATH 47.11 0.28 Carnival CCL 51.99 -0.20 EastmanChem EMN 75.52 -0.06 HuntingtonIngalls HII 184.65 0.54 MobileTeleSys MBT 9.13 0.10 ResMed RMD 62.44 0.76 Toro TTC 56.44 0.60 Alkermes ALKS 55.30 0.11 LibertyBroadbandA LBRDA 73.24 0.23
Zillow C Z 36.98 -0.20
AtmosEnergy ATO 74.65 0.96 Carnival CUK 51.06 -0.17 Eaton ETN 67.61 -0.09 HyattHotels H 56.14 0.14 Mobileye MBLY 38.44 3.42 RestaurantBrands QSR 47.92 0.37 TorontoDomBk TD 49.42 -0.08 Alphabet A GOOGL 802.88 -1.69 LibertyBroadbandC LBRDK 74.84 0.19
ZionsBancorp ZION 42.79 -0.49
Autoliv ALV 113.41 0.98 Caterpillar CAT 93.29 0.14 Ecolab ECL 117.71 -0.29 ICICI Bank IBN 7.40 -0.02 MohawkIndustries MHK 202.14 0.37 ReynoldsAmer RAI 56.10 0.16 Total TOT 50.62 0.34 Alphabet C GOOG 782.79 -2.26 LibertyGlobal A LBTYA 30.80 -0.22
AutoZone AZO 798.49
Avalonbay AVB 175.60
2.60
1.66
Celanese A CE 79.28 0.12
Cemex CX 7.95 -0.04
Ecopetrol
EdisonInt
EC 9.08
EIX 72.28
-0.02
1.13
ING Groep ING 13.94
Invesco IVZ 30.10
-0.06 MolsonCoors A TAP/A 97.94 1.19 RioTinto
-0.25 MolsonCoors B TAP 98.02 1.06 RiteAid
RIO 38.90 0.03 TotalSystem TSS 49.25 -0.05 Amazon.com AMZN 765.15 -6.98 LibertyGlobal C LBTYK 29.84 -0.15
RAD 8.25 ... ToyotaMotor TM 117.04 -1.38 Amdocs DOX 58.31 0.19 LibertyLiLAC A LILA 22.26 -0.34
NYSE MKT
Avangrid AGR 37.89 0.64 Cencosud CNCO 8.55 0.35 EdwardsLife EW 93.71 1.00 IDEX IEX 89.92 0.28 Monsanto MON 105.10 -0.10 RobertHalf RHI 48.85 0.02 TransCanada TRP 45.22 0.23 Amerco UHAL 370.36 1.19 LibertyLiLAC C LILAK 21.38 -0.30 BritishAmTob BTI 112.37 1.00
AveryDennison AVY 70.62 -0.17 CenovusEnergy CVE 15.18 0.06 EmersonElectric EMR 56.20 -0.10 IllinoisToolWks ITW 122.49 -0.15 Moody's MCO 94.29 -0.40 Rockwell ROK 134.85 0.11 TransDigm TDG 249.82 0.32 AmericanAirlines AAL 47.25 -0.42 LibertyQVC A QVCA 19.99 0.14 CheniereEnergy LNG 41.99 -0.28
Avnet AVT 47.98 0.13 Centene CNC 56.83 -0.64 EnbridgeEnPtrs EEP 25.54 0.09 Infosys INFY 14.74 0.01 MorganStanley MS 42.15 -0.47 RockwellCollins COL 93.45 -0.04 Transocean RIG 14.71 -0.20 Amgen AMGN 147.78 0.11 LibertyVenturesA LVNTA 37.47 0.13 CheniereEnerPtrs CQP 28.95 -0.17
AxaltaCoating AXTA 27.29 0.28 CenterPointEner CNP 24.73 0.29 Enbridge ENB 42.22 0.17 Ingersoll-Rand IR 75.57 -0.34 Mosaic MOS 29.33 0.27 RogersComm B RCI 38.76 0.47 TransUnion TRU 30.75 0.24 AnalogDevices ADI 73.58 0.02 LinearTech LLTC 62.57 0.06 CheniereEnHldgs CQH 22.75 0.69
BB&T BBT 46.72 -0.48 CentraisElBras EBR 6.94 0.04 Encana ECA 11.83 -0.27 Ingredion INGR 125.68 1.05 MotorolaSolutions MSI 82.87 0.01 Rollins ROL 33.94 0.18 Travelers TRV 122.29 0.21 Apple AAPL 116.73 -0.03 lululemon LULU 64.39 -0.09 ImperialOil IMO 34.94 0.10

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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
WisTreeJpnRealEst DXJR 13.75 0.1 DSP Group DSPG 13.03 0.4 NicoletBankshares NCBS 47.98 0.5 SiebertFin SIEB 2.65 27.8 CareDx CDNA 2.50 -0.9 GlobalXHealth BFIT 14.49 -1.0 OHAInvestment OHAI 1.65 -0.6
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE EnterpriseBncp EBTC 38.96 2.2 OldPointFinl OPOF 26.00 1.3 SotherlyHotels SOHO 7.11 -0.1 CascadianTherap CASC 4.35 -0.9 GreatElmCap GEC 3.45 -5.2 OptimumBank OPHC 3.25 3.5
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
in the latest session. % CHG-Daily percentage change from the previous trading
NYSE MKT highs - 9 EquitableFin EQFN 9.75
32.83
0.5
0.4
OrigoAcqnRt
OxbridgeRe
OACQR
OXBR
0.50
5.95
1.2
3.5
TriumphBancorp TBK 25.85 1.4 Celsion
Cempra
CLSN
CEMP
0.30 -9.1 Gridsum
2.55 -57.4 HebronTech
GSUM 9.90 -1.9 ParnellPharm PARN
PERF
0.65 1.8
1.40 -6.7
FirstBancorp FNLC UnitedFinBncp UBNK 18.49 -0.1 HEBT 5.19 -4.9 Perfumania
session. Amcon DIT 115.70 3.2 PacificPremBncp PPBI 36.15 -1.1 ChinaFinance JRJC 3.60 -2.7 IdealPower 1.78 -5.1
1stConstBncp FCCY 20.85 -1.1 WesBanco WSBC 43.77 -0.6 IPWR 3.03 -4.3 ProteonTherap PRTO
AcmeUnited ACU 25.23 5.2 FIBK 43.10 -0.4 ParagonCommercial PBNC 44.30 3.5 ChipMOSTechs IMOS 13.95 -2.1 Innocoll RLJ Ent RLJE 1.09 6.7
FirstInterBanc WinsFinance WINS 206.02 9.6 INNL 1.54 -1.7
BowlAmerica BWL/A 16.50 1.7 FRME 38.02 -0.6 PeapackGladFinl PGC 31.98 -1.4 ClevelandBioLabs CBLI 1.22 -10.5 SecureWorks SCWX 10.18 2.5
Thursday, December 29, 2016 FirstMerchants WisdomTreeKoreaHdg DXKW 22.01 0.6 InspiredEnt INSE 7.50 -4.1
CompX Intl CIX 16.25 19.9 FirstSavingsFin FSFG 48.49 1.6 PeoplesFinSvcs PFIS 50.54 2.1 DarioHealthWt DRIOW 0.39 1.2 SensusHealthWt SRTSW 0.45 -41.0
52-Wk % 52-Wk % 52-Wk % JA Solar JASO 4.72 -1.8
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
DGSE
Goldfield
DGSE
GV
1.37 -20.0
5.40 -3.9
1stSource
FirstSouthBancorp
SRCE
FSBK
45.52
11.95
1.4
2.3
PreferredBankLA PFBC
ProfDiversity IPDN
53.10
11.98
0.1
-0.6
Nasdaq lows - 57 DelcathSystems DCTH
DestMaternity DEST
0.90 -5.3
4.83 -0.8
KemPharm KMPH 2.95 -1.6
StrongbridgeBio SBBP
SyndaxPharm SNDX
2.05 ...
6.69 -3.5
HC2Holdings HCHC 6.07 -0.3 ProgressSoftware PRGS 32.47 0.5 AkariTherap AKTX 6.73 -5.7 DexteraSurgical DXTR 0.90 3.2
LibertyExpediaA LEXEA 39.05 0.4 TapImmune TPIV 3.73 -6.4
NexPointResidentl NXRT 22.00 1.1 Hanesbrands HBI 21.40 0.6 FT NasdaqBank FTXO 26.78 -1.2
NYSE highs - 50 NuSTAR EnPfdA NSpA
NuveenCreditStrt JQC
26.94
8.83
0.2
0.5
KimcoRealty KIM
LaSalleHotelPfJ LHOpJ
24.35
23.21
1.4
0.1
ParkNational
WirelessTel
PRK
WTT
122.88 -1.2
1.98 2.2
FirstUnited FUNC 16.75 5.1 RCI Hospitality RICK
ResourcesConnect RECN
17.97
19.75
6.1
2.3
AppliedDNASci APDN
Aradigm ARDM
1.73
1.47
2.9
-1.2
DifferentialBrds DFBG
Dynatronics DYNT
2.40 -5.9 MYOSRENSTech MYOS
2.29 ... MaysJW
1.16 -8.3 VeraBradley
MAYS 42.50 -1.2 vTvTherap
VRA
VTVT
11.29 -0.8
4.67 -8.2
FlushingFin FFIC 29.90 -0.5
AdvancePierre APFH 29.56 1.2 NuveenSeniorIncmFd NSL 6.82 -0.3 LionsGate B LGF/B 24.82 -0.8 RoyalBcshsPA A RBPAA 3.88 9.0 ArcadiaBiosci RKDA 1.00 -2.9 EcoStimEnergy ESES 1.02 -6.4 MemorialProd MEMP 0.13 -12.3 WestportFuelSys WPRT 1.12 -0.9
FullHouse FLL 2.33 2.7
AlamoGroup
AmericanFin
ALG
AFG
78.91 -0.5
88.09 0.4
PJT Partners PJT 32.35 -0.1 Mallinckrodt MNK 48.61 -0.4 NYSE MKT lows - 2 GencorIndustries GENC 16.25 4.9 S&T Bancorp STBA 39.65 -0.3 BioScrip BIOS 0.98 -1.0 FXCM FXCM 7.10 -0.7 MerrimackPharm MACK
MOSY
4.04 -2.9 WindtreeTherap WINT
0.23 -29.4 XOMA
1.23 -6.1
PinnacleFoods PF 53.85 0.5 NuveenHiIncmNov21 JHB 9.76 -0.3 GladstoneComm GOOD 19.84 1.8 SabanCapWt SCACW 0.91 19.8 CaladriusBiosci CLBS 2.76 -3.1 FalconStorSftw FALC 0.45 -3.2 MoSys XOMA 4.58 -6.3
BP BP 37.53 0.4 AdCareHealth ADK 1.43 -0.7
RAIT Financial RAS 3.45 1.5 OaktreeCapital OAK 37.10 -0.7 GlobalIndemnity GBLI 38.97 2.3 SevernBancorp SVBI 8.07 4.8 CapstoneTurbine CPST 0.71 -3.2 FuelCell FCEL 1.80 -1.4 NeuroMetrixWt NUROW 0.01 -48.8 xGTechnology XGTI 1.17 10.1
BancSanBrasil BSBR 9.12 1.8 EtnVncNJ EMJ 12.53 0.2
RoyalDutchB RDS/B 58.42 0.8 PhoenixNewMedia FENG 3.20 -2.7 GolarLNGPartners GMLP 23.96 2.5
BankofHawaii BOH 89.72 -0.6 SaratogaInvt SAR 20.95 -0.4
BaringsGlbShtDurHY BGH 19.19 0.1 SemicondctrMfg SMI 7.63 7.8
voxeljet
XeroxWi
VJET
XRXw
2.88
5.73
-2.4
-0.7 Nasdaq highs - 86 GuarFedBcsh
HMN Fin
GFED
HMNF
21.20
18.55
7.1
6.6
BlckstnGSOStratCrd BGB
Braskem BAK
15.46 -0.2
21.26 0.9
SpragueRscs SRLP
THLCreditSrLoan TSLF
28.00
18.76
3.7
-0.4
YingliGreenEner YGE 2.50 -4.2 AmericanCapital ACAS
ArtWayMfg ARTW
17.87
3.35
1.1
8.2
HennessyCapWt
HeritageCommerce
HCACW
HTBK
0.91
14.55
...
-0.6
Mutual Funds | WSJ.com/fundresearch Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
Culp
CushingTotRetFd SRV
CFI 37.80 1.2
13.83 -0.2
TimeInc.
UCP
TIME
UCP
18.10
12.13
0.8
0.9
NYSE Arca highs - 10 BSB Bancorp BLMT 30.05 0.2 HookerFurniture HOFT 38.05 2.8
OakmrkInt 22.62 -0.01 7.5 MuIntAdml 13.88 +0.01 0.1
BMOElkhornDWAMLP BMLP 52.34 2.4 HorizonBancorp HBNC 28.55 -1.4
ETFSZacksEarnLCUS ZLRG 27.17 8.6
DouglasDynamics PLOW 34.75 -0.9 UMH Prop
Unitil
UMH
UTL
14.89
45.47
2.1
1.4 ETRACSAlerianMLP AMUB 19.87 1.2
Banner BANR 56.50 -0.2 IndepBankMI IBCP 22.25 -0.2 Explanatory Notes Data provided by Old Westbury Fds MuLTAdml 11.37 +0.01 0.6
EmployersHldgs EIG 39.65 0.6 BlueHillsBancorp BHBK 18.95 0.8 Intevac IVAC 8.35 11.3 LrgCpStr 12.85 +0.01 4.9 MuLtdAdml 10.84 +0.01 -0.1
EraGroup ERA 17.16 -0.2 US Foods USFD 27.35 1.1 GlblXJrMLPETF MLPJ 8.63 0.3 Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of MuShtAdml 15.72 +0.01 0.4
BrocadeComm BRCD 12.53 0.1 Investar ISTR 19.60 7.1 Oppenheimer Y
Exar EXAR 11.04 5.8 Univar UNVR 28.87 ... iPat PBCrudeOil OLEM 18.17 ... at least $500 million each. NAV is net asset value. Percentage performance figures
OppenheimerGlbGwth RGRO 47.68 0.8
CF Wt CFCOW 1.20 1.1 JM Global Un WYIGU 10.15 1.2 DevMktY 31.89 +0.25 6.9 PrmcpAdml r 109.55 -0.0611.4
FB Financial FBK 26.45 0.3 VectorGroup VGR 22.87 0.8 CapitolAcqnIIIWt CLACW 0.87 2.3 are total returns, assuming reinvestment of all distributions and after subtracting
JM Global Wt WYIGW 0.33 15.8 IntGrowY 34.54 +0.25 -2.5 REITAdml r 115.48 +1.39 7.2
WeisMarkets WMK 68.40 -1.1 PwrShsDBComTr DBC 15.89 0.1
FirstRepBank FRC 92.35 -0.4 CapitolFedFin CFFN 17.04 -1.4 KinsaleCapital KNSL 34.91 -0.6 annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. SmCapAdml 62.00 +0.1118.7
WesternAsstCpLoan TLI 11.26 0.4 PowerSharesDBEnFd DBE 13.89 -0.1
FranklinFin
GEO Group
FSB
GEO
42.80 -1.3
35.73 1.4 WesternGasPtrs WES 60.44 -0.1 ETRACS2xBDC BDCL 19.75 1.8
CarrolsRestr TAST 15.30 0.3 LandcadiaWt LCAHW 0.75 15.9 NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date P STBondAdml 10.42 +0.01 1.4
USGasolineFd UGA 31.87 -0.3
CathayGenBncp CATY 38.73 -0.3 LeMaitreVascular LMAT 25.52 1.4 return. 3-YR%RET is trailing three-year return annualized. STIGradeAdml 10.63 +0.02 2.8
Griffon GFF 26.95 -1.1 Cemtrex CETX 7.20 15.7 LMNR 20.89 0.1 Parnassus Fds
InvescoCreditOpps VTA 12.25 0.1 NYSE lows - 18 US12moOilFd USL 20.50 ...
CentrueFin CFCB 22.57 -0.3
Limoneira
MI Acqns Wt MACQW 0.29 10.7 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e ParnEqFd 39.48 -0.0110.9 TotBdAdml 10.63 +0.02 2.3
InvescoSeniorIncm VVR 4.64 0.4 and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, PIMCO Fds Instl TotIntBdIdxAdm 21.69 +0.03 4.8
IvyHiIncomeOppsFd IVH 14.84 0.7
AL Power Pfd O ALPpO
AmplifySnack BETR
25.30
8.78
-3.0
0.5
NYSE Arca lows - 6 CharterComms CHTR
CharterFin CHFN
294.87
16.69
0.4
1.8
Macatawa
MagellanPetrol
MCBC
MPET
10.67
11.95
-0.7
-6.6 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r AllAsset NA ... NA TotIntlAdmIdx r 24.58 +0.14 4.5
LambWeston LW 37.96 1.5 BlkRkMuni20 BKK 15.23 -0.4 FranklinIntlEquity FLQH 23.49 -0.1 Citizens&Northern CZNC 26.57 0.7 MelroseBancorp MELR 17.05 1.5 apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not HiYld 8.81 ...12.6 TotStAdml 56.33 ...13.2
ManitowocFood MFS 18.97 5.2 BlkRkNY MT Tr BLH 14.72 -0.3 iPathBloomCocoaTR NIB 26.95 -2.8 ColonyBankcorp CBAN 13.04 1.9 MerchantsBcshsVT MBVT 54.75 ... available due to incomplete price, performance or cost data. NE-Not released by Lipper; TotRt 10.01 +0.02 2.4 TxMIn r 11.71 +0.05 2.2
MonmouthRealEst MNR 14.99 1.7 EtnVnTaxAdvBd&Opt EXD 11.23 -0.9 ProShUlt Euro ULE 13.54 1.5 CmntyTrBcp CTBI 49.70 -0.1 Misonix MSON 11.20 7.5 data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. ValAdml 36.34 -0.0217.2
PIMCO Funds A
NatlPrestoInds NPK 108.75 -0.6 EnvisionPfdA-1 EVHCp 120.76 -0.4 VanEckChinaBond CBON 21.89 ... CountyBancorp ICBK 26.80 4.3 MutualFirstFin MFSF 36.75 -1.9
Natuzzi NTZ 2.38 12.2 58.com WUBA 27.72 -0.9 WisTreeChineseYuan CYB 22.89 0.5 Cutera CUTR 17.95 1.7 NVE NVEC 71.35 0.3
IncomeFd NA ... NA WdsrllAdml 62.53 -0.0613.8
PIMCO Funds D WellsIAdml 61.72 +0.14 8.2
Thursday, December 29, 2016
Net YTD Net YTD Net YTD IncomeFd NA ... NA WelltnAdml 67.54 +0.0211.2
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret PIMCO Funds Instl WndsrAdml 69.46 -0.1313.0
Borrowing Benchmarks | WSJ.com/bonds A Stock 184.97 -0.5721.7 RisDv A p 52.84 +0.0514.9
IncomeFd
PIMCO Funds P
NA ... NA VANGUARD FDS
DivdGro 23.51 +0.02 7.9
DoubleLine Funds FrankTemp/Franklin C
American Funds Cl A TotRetBdI
IncomeP NA ... NA GNMA 10.51 +0.03 1.5
NA ... NA Income C t 2.34 +0.0116.0 HlthCare r 185.10 +0.31 -8.8
Money Rates December 29, 2016 AmcpA p
AMutlA p
27.35 -0.02 9.5
36.97 +0.0514.6
TotRetBdN NA ... NA FrankTemp/Temp A
GlBond A p 12.02 -0.03 6.4
Price Funds
BlChip 73.14 -0.11 1.7 INSTTRF2020 20.15 +0.04 7.1
BalA p 24.87 ... 8.9 F CapApp 26.27 +0.02 8.6 INSTTRF2025 20.12 +0.04 7.6
Growth A p 23.53 -0.02 8.9
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a BondA p 12.71 +0.03 2.6 Federated Instl FrankTemp/Temp Adv
EqInc 31.58 -0.0219.7 INSTTRF2030 20.07 +0.05 8.1
EqIndex 60.37 -0.0212.2 INSTTRF2035 20.02 +0.04 8.5
guide to general levels but don’t always represent actual transactions. CapIBA p 57.72 +0.31 7.0 StraValDivIS 5.92 +0.0410.6 GlBondAdv p 11.97 -0.04 6.7
Growth 53.64 -0.06 2.2 INSTTRF2040 19.97 +0.05 9.0
CapWGrA 43.91 +0.21 6.7 Fidelity
EupacA p 45.09 +0.26 0.6 H HelSci 59.31 -0.03-10.0 LifeCon 18.45 +0.04 6.0
Week —52-WEEK— Week —52-WEEK— 500IdxInst 78.71 -0.0212.4
Inflation FdInvA p 54.73 -0.0613.1 InstlCapG 29.44 -0.06 3.6 LifeGro 28.91 +0.07 8.5
Latest ago High Low Latest ago High Low 500IdxInstPrem 78.70 -0.0212.5 Harbor Funds LifeMod 24.17 +0.05 7.2
GwthA p 42.30 -0.08 9.1 Intl G&I 12.78 +0.06 0.4
500IdxPrem 78.70 -0.0212.4 CapApInst 57.10 +0.03 -0.3
Nov. index Chg From (%) Low 0.5000 0.5000 0.6500 0.0800 Four month n.q. n.q. n.q. n.q. HI TrA p 10.26 ...16.3 IntlStk 15.26 +0.08 2.1 PrmcpCor 22.30 ...13.0
ExtMktIdxPrem r 55.74 +0.0716.5 IntlInst r 58.24 +0.24 ... SelValu r 29.69 +0.0116.8
level Oct. '16 Nov. '15 Bid 0.6600 0.6600 0.6600 0.0800 Five month n.q. n.q. n.q. n.q. ICAA p 36.41 +0.0115.2 MCapGro 75.63 ... 6.7
TMktIdxF r 64.81 ...13.2 STAR 23.70 +0.03 6.6
IncoA p I MCapVal 29.16 +0.0324.8
Offer 0.6900 0.6900 0.7500 0.2500 Six month n.q. n.q. n.q. n.q. 21.72 +0.0510.8 TMktIdxPrem 64.81 ...13.2 STIGrade 10.63 +0.02 2.7
U.S. consumer price index N PerA p 35.48 +0.08 2.3 USBdIdxPrem 11.48 +0.03 2.4 Invesco Funds A
N Horiz 43.51 +0.03 8.3
TgtRe2015 14.52 +0.03 6.2
Treasury bill auction Libor NEcoA p 36.08 +0.04 2.6 N Inc 9.36 +0.02 2.5
All items 241.353 –0.16 1.7 USBdIdxInstPrem 11.48 +0.03 2.4 EqIncA 10.58 -0.0215.1 TgtRe2020 28.28 +0.07 7.0
NwWrldA 51.46 +0.36 3.9 OverS SF r 9.05 +0.03 2.7
Core 249.227 0.004 2.1 4 weeks 0.485 0.490 0.490 0.160 One month 0.77111 0.75500 0.77111 0.42200 Fidelity Advisor I
R2015 14.19 +0.03 7.4
TgtRe2025 16.36 +0.04 7.5
13 weeks 0.555 0.515 0.555 0.215 Three month 0.99789 0.99761 0.99817 0.61170
SmCpA p 46.03 +0.17 5.9 NwInsghtI 27.12 -0.02 7.2 J R2020 20.44 +0.04 7.6
TgtRe2030 29.23 +0.06 8.0
TxExA p 12.73 +0.01 0.2
International rates 26 weeks 0.660 0.645 0.660 0.340 Six month 1.31767 1.31600 1.32267 0.84225 WshA p 41.12 -0.0313.9
Fidelity Freedom John Hancock Class 1 R2025 15.53 +0.03 7.8
TgtRe2035 17.76 +0.04 8.4
FF2020 15.01 +0.03 7.4 LSBalncd 14.25 +0.02 1.1 TgtRe2040 30.25 +0.07 8.9
One year 1.68733 1.68956 1.69956 1.11560 AMG Managers Funds FF2025 12.87 +0.03 7.6 LSGwth
R2030 22.57 +0.04 7.9
TgtRe2045 18.92 +0.04 9.0
Week 52-Week Secondary market 14.73 +0.03 -0.7 R2035 16.33 +0.03 7.9
YacktmanFd I 21.48 +0.0211.7 FF2030 15.82 +0.03 8.3 John Hancock Instl TgtRe2050 30.44 +0.07 9.0
Latest ago High Low Euro Libor R2040 23.26 +0.04 7.9
AQR Funds FreedomK2020 13.97 +0.02 7.5 DispValMCI TgtRetInc 12.80 +0.02 5.2
Fannie Mae MgdFutStrI 9.35 -0.02 -8.1 21.54 ...15.6 SmCapStk 45.16 +0.1019.2
Prime rates One month -0.378 -0.380 -0.204 -0.386 FreedomK2025 14.61 +0.03 7.7 JPMorgan Funds TotIntBdIxInv 10.85 +0.02 4.8
30-year mortgage yields SmCapVal 45.26 +0.0529.3
Three month -0.336 -0.334 -0.128 -0.337 B FreedomK2030 14.91 +0.02 8.5
MdCpVal L 36.51 +0.0315.0 Value 33.73 -0.0211.2
WellsI 25.48 +0.06 8.1
U.S. 3.75 3.75 3.75 3.50 3.708 3.767 3.828 2.806 -0.227 -0.039 -0.227 FreedomK2035 15.45 +0.02 8.9 Welltn 39.11 +0.0111.2
30 days Six month -0.227 JPMorgan R Class Prudential Cl Z & I
Canada 2.70 2.70 2.70 2.70 3.741 3.801 3.862 2.832 -0.086 0.059
Baird Funds
-0.086 AggBdInst FreedomK2040 15.48 +0.03 9.0 WndsrII 35.24 -0.0413.7
60 days One year -0.086 CoreBond 11.48 +0.02 2.3 TRBdZ 14.04 +0.02 4.5
Japan 1.475 1.475 1.475 1.475 10.67 +0.02 3.2 Fidelity Invest
JPMorgan Select Cls VANGUARD INDEX FDS
CorBdInst 11.00 +0.02 4.4
Other short-term rates Euro interbank offered rate (Euribor) BlackRock Funds A
Balanc 22.08 ... 7.3
CoreBond 11.47 +0.02 2.2 S 500 207.53 -0.0512.3
Policy Rates BluCh 67.93 -0.13 2.4
USLgCpCorPls 28.28 -0.0410.4
ExtndIstPl 180.11 +0.2316.6
One month -0.368 -0.369 -0.205 -0.374 GlblAlloc p 18.18 ... 3.7 Contra 99.18 -0.13 4.1 Schwab Funds SmValAdml 52.17 +0.0925.3
Euro zone 0.00 0.00 0.05 0.00 Week 52-Week S&P Sel 34.58 -0.0112.3 TotBd2
Latest high low Three month -0.319 -0.316 -0.131 -0.319 BlackRock Funds C ContraK 99.10 -0.13 4.2 L 10.59 +0.02 2.2
Switzerland 0.50 0.50 0.50 0.50 ago GlblAlloc t 16.55 ... 3.0
Six month -0.221 -0.216 -0.040 -0.221 CpInc r 9.72 ...10.8
T TotIntl 14.70 +0.09 4.4
Britain 0.25 0.25 0.50 0.25 BlackRock Funds Inst DivIntl 33.23 +0.15 -3.9
Lazard Instl
TotSt 56.31 ...13.0
Call money One year -0.081 -0.082 0.060 -0.082 EmgMktEq 16.00 +0.1920.8
Australia 1.50 1.50 2.00 1.50 EqtyDivd 22.59 -0.0216.4 DivIntlK r 33.15 +0.15 -3.8 TIAA/CREF Funds VANGUARD INSTL FDS
Loomis Sayles Fds
2.50 2.50 2.50 2.25 Value 52-Week GlblAlloc 18.28 +0.01 4.1 GroCo 138.09 -0.05 7.0 EqIdxInst 16.66 ...13.2 BalInst 31.18 +0.03 9.0
LSBondI 13.56 +0.02 8.6 Tweedy Browne Fds
Overnight repurchase Latest Traded High Low HiYldBd 7.64 ...13.9 GrowCoK 137.94 -0.05 7.1 DevMktsIndInst 11.73 +0.05 2.3
Commercial paper StratIncOpptyIns 9.83 ... 3.6 InvGB 7.78 +0.02 5.2 Lord Abbett A GblValue 24.99 +0.05 5.4 ExtndInst 72.98 +0.0916.6
U.S. 0.56 0.52 1.30 0.15
n.q. ... ... ... DTCC GCF Repo Index InvGrBd 11.08 +0.03 4.2 ShtDurIncmA p 4.31 +0.01 4.0 GrwthInst 57.67 +0.01 6.8
30 to 270 days
79.150 1.266 0.244
D LowP r 49.59 +0.04 9.0 Lord Abbett F V InPrSeIn 10.35 +0.01 4.3
U.S. government rates Treasury 0.564
LowPriStkK r 49.54 +0.04 9.1 ShtDurIncm 4.30 ... 3.8 VANGUARD ADMIRAL InstIdx 204.77 -0.0512.4
Commercial paper (AA financial) MBS 0.605 89.660 1.328 0.257 Del Invest Instl
Value 19.73 +0.0115.1 MagIn 91.79 -0.18 5.7 500Adml 207.52 -0.0512.4 InstPlus 204.78 -0.0512.5
Discount 90 days 0.91 0.98 1.03 0.45 Open Implied Dimensional Fds OTC 83.90 -0.37 3.8
M BalAdml 31.17 +0.03 9.0 InstTStPlus 50.57 ...13.3
1.25 1.25 1.25 1.00 Settle Change Interest Rate 5GlbFxdInc 10.86 +0.02 1.7 Puritn 20.64 +0.01 5.3 Metropolitan West CAITAdml 11.52 +0.01 -0.2 MidCpInst 36.12 +0.0411.6
Euro commercial paper EmgMktVa 23.94 +0.2119.8 SrsEmrgMktF 15.75 +0.1711.2 TotRetBd 10.51 +0.01 2.0 CapOpAdml r 125.01 -0.0411.3 MidCpIstPl 178.11 +0.1511.6
Federal funds 30 day n.q. n.q. -0.08 -0.14 DTCC GCF Repo Index Futures EmMktCorEq 17.36 +0.2112.4 SrsInvGrdF 11.08 +0.02 4.2 TotRetBdI 10.51 +0.02 2.2 EMAdmr 29.74 +0.3711.6 SmCapInst 62.00 +0.1218.8
Effective rate 0.6800 0.6800 0.6900 0.2400 Two month n.q. n.q. n.q. n.q. IntlCoreEq 11.64 +0.04 5.2 TotalBond 10.50 +0.02 5.6 TRBdPlan 9.89 +0.01 2.3 EqIncAdml 68.61 +0.0715.2 STIGradeInst 10.63 +0.02 2.8
Treasury Dec 99.540 0.035 5796 0.460
IntSmCo 17.22 +0.09 5.5 Fidelity Selects MFS Funds Class A ExtndAdml 72.99 +0.1016.6 TotBdInst 10.63 +0.02 2.4
High 0.8125 0.8125 0.8125 0.5600 Three month n.q. n.q. n.q. n.q. Treasury Jan 99.380 0.020 3793 0.620
IntSmVa 18.98 +0.09 7.8 Biotech r 175.24 -1.13-23.2 ValueA p 36.12 -0.0214.1 GNMAAdml 10.51 +0.03 1.6 TotBdInst2 10.59 +0.02 2.3
Treasury Feb 99.385 0.025 4960 0.615 US CoreEq1 19.37 ...15.4 First Eagle Funds MFS Funds Class I GrwthAdml 57.67 +0.01 6.8 TotBdInstPl 10.63 +0.02 2.4
Notes on data: US CoreEq2 18.71 ...17.2 GlbA 54.35 +0.2210.8 ValueI 36.31 -0.0214.4 HlthCareAdml r 78.07 +0.13 -8.8 TotIntBdIdxInst 32.55 +0.05 4.8
U.S. prime rate is effective December 15, 2016. Discount rate is effective December 17, 2015. U.S.
Weekly survey US Small 34.03 +0.0524.2 FPA Funds Mutual Series HYCorAdml r 5.83 +0.0111.2 TotIntlInstIdx r 98.30 +0.58 4.5
prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks; US SmCpVal 37.65 -0.0329.2 FPACres 32.72 -0.0510.6 GlbDiscA 30.60 -0.0112.7 InfProAd 25.41 +0.04 4.3 TotItlInstPlId r 98.32 +0.58 4.5
Latest Week ago Year ago
Other prime rates aren’t directly comparable; lending practices vary widely by location; DTCC GCF US TgdVal 24.14 -0.0227.6 FrankTemp/Frank Adv GlbDiscz 31.15 -0.0212.9 IntlGrAdml 67.30 +0.34 1.8 TotStInst 56.34 +0.0113.2
Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable USLgVa 35.24 -0.0619.4 IncomeAdv 2.29 +0.0116.6 ITBondAdml 11.22 +0.03 2.2 ValueInst 36.34 -0.0217.2
CUSIPs. Value traded is in billions of U.S. dollars. Futures on the DTCC GCF Repo Index are traded on
Freddie Mac O
Dodge & Cox FrankTemp/Franklin A ITIGradeAdml 9.62 +0.02 3.7
NYSE Liffe US. 30-year fixed 4.32 4.30 4.01 Balanced 103.58 -0.1616.8 CA TF A p 7.31 +0.01 0.7 Oakmark Funds Cl I LTGradeAdml 10.03 +0.03 7.6 W
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; 15-year fixed 3.55 3.52 3.24 Income 13.58 +0.03 5.5 Fed TF A p 12.01 +0.02 0.7 EqtyInc r 30.45 -0.0311.1 MidCpAdml 163.49 +0.1411.6 Western Asset
General Electric Capital Corp.; Tullett Prebon Information, Ltd. Five-year ARM 3.30 3.32 3.08 Intl Stk 38.14 +0.21 8.4 IncomeA p 2.31 +0.0116.3 Oakmark 72.70 -0.1818.7 MuHYAdml 11.01 +0.02 0.9 CorePlusBdI NA ... NA
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B8 | Friday, December 30, 2016 * **** THE WALL STREET JOURNAL.

MARKETS

China Retools to Stabilize Yuan Euro’s Rise

Perplexes
Country adjusts mix
of currencies used to
set daily rate, diluting
Traders
BY JAMES GLYNN
the dollar’s influence
SYDNEY—The euro rallied
BY LINGLING WEI sharply in Asia trading Friday,
climbing more than two U.S.
BEIJING—China enhanced cents in a move that had trad-
its ability to stabilize its cur- ers scratching their heads.
rency, as the rising dollar The euro jumped from
threatens to undermine its around $1.0490 to briefly
economy by accelerating the trade above US$1.0700 in a
flow of capital out of the matter of moments—its high-
ZHANG PENG/LIGHTROCKET/GETTY IMAGES

country. est level in two weeks—

China’s central bank is ad- against a backdrop of thin
justing the mix of foreign cur- year-end markets.
rencies used in setting the The euro’s short-lived surge
yuan’s official daily value—a also lifted the U.K. pound and
change analysts said should the Australian and New Zea-
help support the weakening land dollars, traders said.
currency. At 0310 GMT, the euro was
The move, which goes into trading at $1.0531. The British
effect on Jan. 1, reflects the pound jumped from $1.2250 to
delicate dance Chinese policy $1.2309, before pulling back to
makers face with the yuan. The move by China’s central bank is the latest by global policy makers to adjust to a rally that has lifted the U.S. dollar to a 14-year high. around $1.2278.
China wants a slightly weaker Before the spike in the
currency to help exporters and important seven-yuan-per-dol- the country and managing the month, Chinese leaders said come more stable—potentially euro, the pound was part of
maintain competitiveness with lar level as soon as next pace of depreciation. maintaining the yuan’s “basic making the yuan’s official broad market strength
other economies as the dollar month. So far this year the The central bank controls stability” would be a main eco- value against the dollar less against the U.S. dollar, which
rises. But it also worries that a yuan has dropped 7% against the mainland trading of the nomic task for 2017. volatile. was under pressure amid
sharp decline in the yuan’s the dollar, nearly double the yuan by specifying an official Starting in January, the cen- However, most investors end-of-year book squaring
value would raise fears the decline from the year before. rate against the dollar and tral bank will expand the num- still focus on the yuan’s perfor- and profit-taking.
central bank is losing control, China’s move is the latest by then allowing the currency to ber of currencies in the basket mance against the dollar. The Overnight, the WSJ Dollar
undermine the public’s trust global policy makers trying to move 2% above or below the it uses to calibrate the yuan’s fresh mix in the currency Index, which measures the
and trigger excessive capital adjust to a powerful dollar so-called daily fix. Since the value to 24 from 13 and reduce group, therefore, likely won’t U.S. currency against 16 oth-
outflows. rally that has recently lifted the weighting given to the U.S. change many investors’ pessi- ers, fell 0.5% to 93.06. De-
By diluting the dollar’s the U.S. currency to a 14-year dollar to 22.4%, from 26.4%, mistic outlook for the yuan, spite the overnight slide, the
share and bringing in curren- high. In emerging markets, a according to an announcement analysts say. dollar is on track to end
cies from the Korean won to stronger dollar makes it more
The move reflects by the central bank’s China The new basket will include 2016 with a gain of more
the Saudi riyal and Swedish expensive for governments and the delicate dance Foreign Exchange Trade Sys- the currencies of almost all of than 3%.
krona, the People’s Bank of companies to pay back their tem late Thursday. China’s trading partners and Ray Attrill, global head of
China is giving itself more dollar-denominated loans.
Chinese policy makers Expanding the currency bas- therefore will be more repre- currency strategy at National
room to maneuver to keep the Mexico raised interest rates face with the yuan. ket and reducing the dollar’s sentative of the yuan’s perfor- Australia Bank, said that try-
yuan from falling too fast, ana- this month, looking to head off weighting could help “reduce mance against its peers, the ing to explain the move would
lysts said. inflation as the peso tumbled fluctuations of the daily fix and announcement said. be folly.
In recent weeks, the yuan against the dollar. Central stabilize market expectations” Many analysts and investors “Whether somebody acci-
has buckled under uncertainty banks in other developing beginning of this year, the cen- for the yuan, said Zhu Chaop- said the basket can play only a dentally pressed a button or
about China’s economic perfor- countries, including Indonesia tral bank has been taking into ing, China economist at UOB limited role in steadying ex- algo trades were triggered, no-
mance, a surging U.S. dollar and Malaysia, have also taken account the yuan’s perfor- Kay Hian Holdings Ltd., a Sing- pectations for the yuan. A big- body knows,” Mr. Attrill said.
following Donald Trump’s steps to support their curren- mance against both the dollar apore-based investment bank. ger issue, they said, is how to “If they tell us anything
presidential-election victory cies against the dollar. and a wider selection of cur- When calculating the yuan’s break the cycle of greater de- about what January has in
and escalating flows of Chinese In China, how to manage rencies when determining the daily fix against the dollar, the preciation leading to more out- store, it may be that it’s going
currency moving offshore. the yuan’s value has become a daily fix. That move has paved central bank considers both flows and more stress. to be a choppier ride for the
The potential for faster U.S. hot topic in official circles the way for the yuan’s gradual the yuan’s previous close ver- “The one-way depreciation dollar relative to the cozy dol-
interest-rate increases could since a nearly 2% devaluation deprecation. sus the greenback and the has led to rising depreciation lar-bullish consensus that pre-
add even more downward 16 months ago shocked global With the pressure building overnight changes in the value expectations, resulting in huge vailed in the run up to Christ-
pressure on the yuan, with markets. In the past year the for further depreciation, Chi- of the currency basket against capital outflow pressure,” said mas,” he added.
some analysts and investors central bank has sought a less nese leaders have been trying the dollar. As more currencies China economist Larry Hu at Asian currencies largely es-
predicting that the currency abrupt path, constricting chan- to assert greater control. At a are included in the basket, the Macquarie Securities, a Syd- caped the volatility and were
could break the psychologically nels for moving money out of top-level meeting earlier this currency group likely will be- ney-based investment bank. little changed.

Energy Business Shifts in China For Yen, More Volatility

Looks Like Sole Certainty
BY BRIAN SPEGELE
BEIJING—A glut of natural
gas is prompting global en-
ergy companies to court
smaller Chinese customers, BY SAUMYA VAISHAMPAYAN U.S. interest rates, making the driven by a view that inflation
bypassing state giants such as dollar more appealing. And in will pick up in the U.S., accel-
PetroChina Co. that have con- The yen is ending 2016 November came Donald erating the rise in rates and
trolled imports. about where it began, but only Trump’s victory in the U.S. yields.
Several recent deals reflect after some thrills along the presidential election, which On the other end of the
ZHONG MIN/XINHUA/ZUMA PRESS

a fundamental change in way—and a wide range of kicked off a broad dollar rally spectrum, J.P. Morgan strate-
China’s energy sector: The forecasts suggests next year as investors bet Mr. Trump’s gists expect ¥99 to the dollar
government’s goal of boosting could offer another roller- promises to slash taxes would at the end of 2017—one of the
competition to facilitate a coaster ride. bolster economic growth and most bullish yen calls. The
shift from coal to cleaner fu- Some 81 outlooks for the allow the Fed to raise interest bank’s strategists argue that
els has opened a window for end of 2017 put the yen from rates more quickly. The yen the dollar’s postelection surge
private players. ¥97 to ¥128 per dollar, accord- has slumped roughly 10% since was driven by a focus on po-
Western companies need ing to data collector Consen- the election. tential tax cuts and infrastruc-
all the buyers they can get. In A natural-gas-purification plant in China’s Sichuan province. sus Economics. “We had so many shocking, ture spending—the “positive
anticipation of booming It took ¥116.52 to buy a dol- surprising events,” said Yuno- aspects” of Mr. Trump’s likely
global gas demand in recent lar at around midday Thurs- suke Ikeda, head of foreign-ex- policies. But as the dust settles,
years, Royal Dutch Shell PLC, Gas Guzzlers day in New York, not far from change strategy for Japan at they say, U.S. foreign policy is
Chevron Corp., Exxon Mobil Global gas giants are looking to smaller Chinese firms to help drive the ¥120 at the start of 2016. Nomura. likely to become more protec-
Corp. and others built export demand amid a glut of natural gas. But the yen made big moves Some of the yen’s most tionist, which could spur risk
terminals to liquefy gas during the year, surging more bullish investors have aversion and boost the yen.
through refrigeration, and China’s LNG imports, China’s gas demand, switched sides as the currency Nomura’s Mr. Ikeda, who
than 16% against the dollar
then send it around the world in millions of metric tons in billions of cubic meters
from January to late June, as dropped. expects the dollar to finish
on tankers—the way oil has 25 500 concerns about China’s eco- Leveraged funds, a group 2017 slightly stronger, at ¥120,
been exported for decades. Other nomic growth and the U.K.’s that includes some hedge said interest-rate divergence
The aim was to connect 20 400 surprise vote to leave the Eu- funds, in aggregate started has been the key driver of yen
huge supplies in the U.S., Transport ropean Union pushed investors betting on a decline in the yen weakness in recent months.
Australia and elsewhere with 15 300 Residential into assets considered safe. late in November for the first While the Fed raised U.S. rates
the big demand centers of Also encouraging yen buying time since the start of the in December and is poised for
Asia. The slowdown of 10 200 Power was the idea that the Bank of year, according to data from more in 2017, the BOJ has
China’s economy struck just Japan’s aggressive easing— the U.S. Commodity Futures pledged to keep Japan’s
as the new supplies came on- 5 100 which had been keeping the Trading Commission. benchmark 10-year yield near
line. Markets for liquefied Industrial currency weak—was running Deutsche Bank analysts, 0%, curbing rate rises there.
natural gas, or LNG, will 0 0
out of steam. who as recently as Nov. 1 saw The postelection dollar-yen
likely be oversupplied Then in late summer the the yen ending 2017 as strong move has been driven by a
2012 ’13 ’14 ’15 ’16* 2000 ’10 ’15 ’20† ’30†
through at least the end of yen began to depreciate, as as ¥90 to the dollar, now fore- perception that the global
*First 11 months †Forecasts
the decade, those in the in- Sources: China General Administration of Customs (imports); Federal Reserve policy makers cast ¥120 to ¥125. The most economy is in better shape
dustry say. China National Petroleum Corporation (demand) THE WALL STREET JOURNAL. suggested they might raise recent change, from ¥115, was than feared, he said.
“We need to get some new
demand,” Robert Ineson, company, and BP PLC has agreement with Guangzhou-
managing director for global agreed to sell it to power pro- based JOVO in 2016 for long- Exchange-Traded Portfolios | WSJ.com/ETFresearch
LNG at consultancy IHS ducer China Huadian Corp. term supplies from Louisiana.
Markit, told a gathering of for as much as half a billion JOVO, which declined to Closing Chg YTD
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
Chinese energy executives in dollars a year over the next make executives available for
TechSelectSector XLK 48.74 0.02 13.8
December. “Now we’re look- two decades. questions, has already been Thursday, December 29, 2016 Closing Chg YTD
UtilitiesSelSector XLU 48.84 1.35 12.8
ETF Symbol Price (%) (%)
ing at much smaller players.” To sustain the U.S. shale buying LNG from Malaysia. Closing Chg YTD VanEckVectBiotech BBH 108.04 –0.14 –14.9
ETF Symbol Price (%) (%) iShMSCIEmgMarkets EEM 35.26 1.64 9.5 VanEckGoldMiner GDX 21.75 7.46 58.5
Despite the gas glut, pri- boom, companies must open Chevron says that JOVO AlerianMLPETF AMLP 12.61 –0.32 4.6 iShMSCIEurozoneETF EZU 34.39 0.81 –1.9 VanEckVctrOilSvcs OIH 33.53 0.27 26.8
vate companies in China are new export markets, and tap- will also begin importing its CnsmrDiscSelSector XLY 82.09 –0.13 5.0 iShMSCIJapanETF EWJ 48.88 –1.01 0.8 VanEckVectorsPharm PPH 52.35 0.52 –19.8
CnsStapleSelSector 51.97 0.46 2.9 iShNasdaqBiotech IBB 267.11 –0.36 –21.1 76.53 –0.19 –1.5
in competition for resources ping demand in China beyond gas in 2018. DBGoldDoubleLgETN
XLP
DGP 20.38 2.89 12.3 iShNatlAMTFrMuniBd MUB 108.25 0.17 –2.2
VanEckVctrRetail
VanEckSemiconduc
RTH
SMH 72.56 0.03 36.2
with the state behemoths, the state-owned energy giants New importers from China DBGoldDoubleShrt DZZ 6.78 –2.59 –23.6 iShRussell1000Gwth IWF 105.57 0.03 6.1 VanguardInfoTech VGT 122.62 0.06 13.2
DeutscheXMSCIEAFE DBEF 28.03 –0.28 3.2 iShRussell1000ETF IWB 124.96 0.02 10.3
and are happy to scoop up will be critical, investors say. have already shaken up oil EnSelectSectorSPDR XLE 75.54 –0.20 25.2 iShRussell1000Val IWD 112.12 –0.07 14.6
VanguardSCVal VBR 121.47 0.16 23.0
VangdDivApp VIG 85.52 0.20 10.0
supplies on a bet that the day U.S. entrepreneurs are tak- markets. Looking to boost FinSelSectorSPDR XLF 23.20 –0.73 19.9 iShRussell2000Gwth IWO 154.62 0.20 11.0 VanguardFTSEDevMk VEA 36.47 0.36 –0.7
GuggenheimSP500EqW RSP 86.89 0.03 13.4 iShRussell2000ETF IWM 135.37 0.09 20.2
for natural gas in China is ing note. In the Gulf of Mex- competition in the state-dom- HealthCareSelSect XLV 69.19 0.17 –3.9 iShRussell2000Val IWN 119.41 0.09 29.9
VanguardFTSEEmgMk VWO 35.97 1.55 10.0
VanguardFTSEEurope VGK 47.68 0.70 –4.4
bound to come. ico town of Cameron Parish, inated sector, China’s govern- IndSelSectorSPDR XLI 62.44 –0.03 17.8 iShRussell3000ETF IWV 133.49 0.01 11.0
VanguardAWxUS VEU 44.16 0.57 1.7
iShIntermCredBd CIU 108.08 0.20 0.7 iShRussellMid-Cap IWR 179.52 0.16 12.1
Both Chevron and France’s La., Greg Michaels plans to ment recently started allow- iSh1-3YCreditBond CSJ 104.81 0.09 0.2 iShRussellMCValue IWS 80.63 0.17 17.4
VanguardGrwth VUG 112.07 0.04 5.3
VanguardHiDiv VYM 75.98 0.12 13.8
Total SA reached agreements build an export terminal to ing private refiners to import iSharesTIPSBondETF TIP 112.80 0.12 2.8 iShS&P500Growth IVW 122.57 0.07 5.8
VanguardIntrm BIV 82.80 0.31 –0.3
iSh3-7YTreasuryBd IEI 122.33 0.24 –0.2 iShS&P500ValueETF IVE 101.53 –0.10 14.7
in 2016 to supply LNG to ship U.S. natural gas to China. crude. That helped boost de- iShCoreHiDividend HDV 82.53 0.29 12.4 iShUSPfdStk PFF 37.14 0.05 –4.4
VangIntrCorpBd VCIT 85.42 0.26 1.6
VanguardLC VV 102.77 0.02 9.9
Hong Kong-listed gas com- He said that for a smaller mand in 2016. iShCoreMSCIEAFEETF IEFA 53.48 0.28 –1.7 iShrSilverTr SLV 15.32 0.79 16.1
VanguardMC VO 132.04 0.10 9.9
iShCoreMSCIEmgMk IEMG 42.69 1.57 8.4 iSh1-3YTreasuryBd SHY 84.42 0.11 0.1
pany ENN Energy Holdings company, securing deals with The global energy industry iShCoreS&P500ETF IVV 225.75 –0.01 10.2 iSh7-10YTreasuryBd IEF 104.51 0.31 –1.0 VanguardMCVal VOE 97.49 0.10 13.4
VanguardReit VNQ 81.50 1.24 2.2
Ltd. The Chinese gas company China’s state-owned energy is hoping natural gas is next. iShCoreS&PMdCp IJH 166.00 0.27 19.2 iShRussellMCGrowth IWP 97.94 0.15 6.5
VanguardS&P500 VOO 206.02 –0.02 10.2
iShCoreS&PSmCpETF IJR 138.06 0.22 25.4 PwrShrs QQQ QQQ 119.71 –0.14 7.0
has nearly $5 billion in an- giants is a challenge. “We’ve But despite the Chinese iShCoreUSAggBd AGG 107.84 0.31 –0.2 PS SP500LoVoltlPrt SPLV 41.75 0.65 8.2 VanguardSTBd BSV 79.44 0.19 –0.2
VanguardSTCpBd VCSH 79.25 0.16 0.3
nual sales and is erecting an approached the market quite government’s pledge to cut iShSelectDividend DVY 88.88 0.38 18.3 PowerSharesLoan BKLN 23.35 ... 4.2
VanguardSC VB 129.47 0.26 17.0
iShEdgeMSCIMinEAFE EFAV 61.02 0.58 –5.9 SPDRBloomBarcHYBd JNK 36.40 0.14 7.3
import terminal in the east- differently in looking at other smog and carbon emissions, iShEdgeMSCIMinUSA USMV 45.37 0.49 8.5 SchwIntlEqty SCHF 27.62 0.25 0.2 VanguardTotBd BND 80.62 0.27 –0.2
VanguardTotIntlBd BNDX 54.34 0.18 2.8
ern manufacturing hub of folks who are in need of LNG it has been tough to persuade iSharesGold IAU 11.14 1.36 8.9 SchwUS BrdMkt SCHB 54.37 –0.02 10.9
VanguardTtlIntlStk VXUS 45.80 0.55 1.5
iShiBoxx$InvGrCpBd LQD 117.00 0.39 2.6 SchwUS LrgCap SCHX 53.48 –0.06 10.1
Zhejiang. and who will actually be the businesses to switch to gas— iShiBoxx$HYCpBd HYG 86.52 0.14 7.4 SPDR DJIA Tr DIA 197.99 –0.05 13.8 VanguardTotStk VTI 115.75 0.01 11.0
In other deals, Chevron end users,” he said. which emits roughly half as iSharesJPMUSDEmgBd EMB 110.40 0.24 4.4 SPDR GldTr GLD 110.29 1.31 8.7 VangdTotlWrld VT 61.12 0.11 6.1
iShMBSETF MBB 106.15 0.32 –1.4 SPDR S&PMdCpTr MDY 302.91 0.29 19.2 VanguardValue VTV 93.19 –0.04 14.3
will sell LNG to JOVO Group, Mr. Michaels’s company, much carbon as coal but can iSharesMSCIEAFESC SCZ 49.62 0.32 –0.7 SPDR S&P 500 SPY 224.35 –0.02 10.0 WisdomTreeEurope HEDJ 57.15 –0.05 6.2
a South China private-energy SCT&E LNG Inc., signed an be more expensive to use. iSharesMSCIEAFEETF EFA 57.53 0.24 –2.0 SPDR S&P Div SDY 85.71 0.28 16.5 WisdomTreeJapanHdg DXJ 49.42 –1.73 –1.3
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
LONG WEI/ZUMA PRESS
China’s stock market has risen about 20% since hitting its low for the year in early January, disrupting a tendency for large swings.
China Markets Grow Tame
BY ANJIE ZHENG
Chinese stock regulators
seem to have achieved one big
goal in 2016: Curbing the mar-
kets’ famous roller-coaster
trading. But many global in-
vestors say that still hasn’t
made China an attractive place
to put their money in 2017.
Chinese stocks have been
docile this year, aside from a
volatile January, when China’s
benchmark Shanghai index
plunged as much as 25%, set-
ting off a global markets rout.
On more than three-quarters
of all trading days, the Shang-
hai index moved less than
1%—a far cry from 2015, when
calm days accounted for less
than half of trading time, and
the index plunged as much as
43% in the summer.
The placid trading has gen-
erally been accompanied a
gradual climb, following steps
by Chinese authorities to bol-
ster shares, including clamp-
ing down on using borrowed
money to buy stocks and spec-
ulative trading. The state has
also continued to directly buy
stocks to prop up prices.
The Shanghai Composite
has gained about 20% since its
Jan. 28 low, although it is still
down about 11% for the year.
Huge swings used to be a
hallmark of the $6.4 trillion
Chinese stock market, but this
year’s gains have been slow-
brewing. Shanghai’s bench-
mark took 10 months to reach
European Bond Yields Tell a Different Tale
BY JON SINDREU
AND MIKE BIRD
An end-of-year rally in Eu-
ropean bonds is confounding
expectations that the era of
low global interest rates would
end in 2017.
Yields on 10-year German
sovereign bonds fell to 0.183%
Thursday, according to
Tradeweb, the lowest since the
U.S. election on Nov. 8. The
move was mirrored by U.K. 10-
year gilts, which traded at
1.240%, also edging down to
their level before Donald
Trump’s victory. Falling yields
mean rising prices.
Mr. Trump’s win—and the
promise of greater govern-
ment spending in the U.S.—
has helped drive U.S. bond
yields up, though the rout has
eased off in the past two
CHRIS RATCLIFFE/BLOOMBERG NEWS
The Bank of England has signaled it will slow its bond buying.
* * * *
Calmer Waters
China’s stock markets have crept
up steadily in 2016, following a
crash early in the year.
China markets
125%
Shenzhen
100 Composite Index
Shanghai
75 Composite Index
50
25
0 –6
–25
2015 ’16
Note: 1 trillion yuan = $144 billion
a bull market—a 20% rise
from a low-point—this year. In
contrast, in the six months af-
ter the 2015 summer crash, it
entered a bear market twice
and a bull market once.
Beijing has been eager to
tame the market in part to at-
tract foreign investors, who
currently make up roughly 2%
of the overall market. In early
December, it launched a trad-
ing link connecting the Shen-
zhen and Hong Kong stock
markets, which allows inves-
tors on both sides to trade the
other’s shares. Takeup by
global funds has so far been
slow due to Shenzhen shares’
sky-high valuations and rela-
CREDIT MARKETS
weeks. For much of November
and December, global bonds
followed, on the theory that a
rise in economic growth and
inflation in the U.S. would spill
over into the rest of the world.
Stocks also plowed higher.
But now, a reversal of the
bond selloff may signal that
expectations of more fiscal
spending have been over-
done. That could keep bonds
strong in 2017, and weigh on
riskier assets like stocks. In-
deed, stocks have stagnated
in the closing two weeks of
the year.
“A large part of the Trump
expectations have been priced
in” already, said Gilles
Pradère, a fixed-income port-
folio manager at Swiss asset
manager RAM Active Invest-
ments, who sold Treasurys ag-
gressively after the election
EQUITIES
Shanghai's benchmark moved
in a narrow range most days of
the year.
Shanghai Composite daily change
4%
2 2.5
0 2.0
–2
–4
–8
J F M A MJ J A S O N D
Source: Wind Info.
tive newness, they say.
Trading volumes and mar-
gin loans are a fraction of
what they were during the
peak before last summer’s
crash, one reason for this
year’s narrow band of trading.
Beijing has continued to prop
up share prices directly. The
so-called national team of gov-
ernment-backed financial
firms hold as much as 1.03
trillion yuan of A-shares, or
2.7% of the market as of Sep-
tember, according to estimates
from Guolian Securities Co.
One major risk next year is
the pace of the devaluing Chi-
nese yuan, which hit an eight-
year low against the U.S. dol-
but recently started purchas-
ing some of them back.
To be sure, thin end-of-year
holiday trading may be a fac-
tor: Part of the reason Mr.
Pradère bought Treasurys
0.183%
Germany’s 10-year bond yield on
Thursday, the lowest on record
again, he added, was “to play
the potential Christmas rally
that we were expecting.”
Mitul Patel, head of interest
rates at Henderson Global In-
vestors, also said that the re-
cent bond rally is likely “a
Christmas thing,” but noted
Trading volumes remain a fraction
of what they were last year.
China A-shares trading volume
3.0 trillion yuan
1.5
1.0
0.5
0
2015 ’16
THE WALL STREET JOURNAL.
lar this year.
“Tighter capital controls
against outflows would send a
message to the market that we
are in trouble,” said Vincent
Chen, head of exchange-traded
funds business for China Asset
Management (Hong Kong) Ltd.
To be sure, some investors
are sanguine on A-shares. The
Shenzhen-Hong Kong trading
link has raised expectations
that A-shares may finally be
included in the leading inter-
national index tracker MSCI’s
benchmarks, tracked by some
$1.5 trillion of global funds.
MSCI declined to comment
on possible inclusion in the in-
dex next year.
that “the scope for disappoint-
ment is relatively high” if
looser fiscal policy fails to
make an appearance in 2017.
Indeed, analysts fear that
many political constraints will
stand in the way of govern-
ment spending, especially in
Europe, where debt piles re-
main high. There, short-dated
bonds have joined the recent
rally even though they never
sold off in the first place.
On Thursday, the yield on
the U.K.’s two-year bonds fell
to 0.036%, a record low. At
the start of 2016, the same
bond had a yield of 0.89%.
Germany’s two-year bond
yield hit a low of minus 0.83%
Thursday, tied for its lowest
ever.
This could be a signal that
European assets are unlikely to
join any inflation-driven trade
even if the U.S. engages in more
government spending, analysts
point out, which may further
strengthen the dollar against
the euro and the pound.
“We would expect consider-
able divergence to continue,”
said Arnab Das, head of
emerging-markets economic
research at Invesco.
While the European Central
Bank and the Bank of England
have signaled that the pace of
their bond-buying policies will
slow next year—in the euro-
zone, the ECB’s self-imposed
rules mean officials are run-
ning out of bonds to buy—in-
terest rates are expected to re-
main pegged to record lows
for the foreseeable future. By
contrast, the U.S. Federal Re-
serve recently raised rates by
a quarter of a percentage
point and is expected to do so
three more times in 2017.
The divergence could ripple
through currency markets, as
capital chases higher rates.
Since the U.S. election, the dol-
lar is up 5.4% against the euro
and 1.1% against the pound.
Friday, December 30, 2016 | B9
Dow Slips Again
As Rally Falters
BY RIVA GOLD AND AKANE OTANI
U.S. stocks slipped Thurs-
day, as the postelection rally
continued to fade at the end of
the year.
Moves have been fairly
muted in light trading around
the holidays, but recent de-
clines have put the Dow Jones
Industrial Average on track for
its first weekly loss since the
election in early November
and wiped out three weeks of
gains for the S&P 500.
The losses have also damp-
ened the gains of the best per-
formers and lifted some lag-
gards. Investors had picked up
shares of financial and indus-
trial companies while dumping
bondlike stocks, expecting the
new administration’s potential
policies to improve corporate
profits and U.S. economic
growth.
On Thursday, dividend-
heavy sectors, which have un-
derperformed since Nov. 8,
posted some of the biggest
gains. The S&P 500 utilities
sector rose 1.3% and the real-
estate sector added 0.9%.
Meanwhile, financials—
which have surged since Novem-
ber as investors bet on looser
regulations and higher rates—
cooled. The S&P 500 financial
sector fell 0.7%, with shares of
Citigroup, Morgan Stanley and
Goldman Sachs Group each
AHEAD OF THE TAPE | Steven Russolillo
Winner and Loser
Apple and Disney share-price performance this year
15%
May 9, 2016
10 Disney shares haven’t
found a happy ending.
5
0
–5
–10
–15
–20
J F M A M J
Source: FactSet
The Hits and Misses
Of Ahead of the Tape
Predict-
ing the fu-
ture is typi-
cally a fool’s
game. Just
ask any
Wall Street
strategist about their year-
end price targets. And fore-
casting the reaction to cor-
porate earnings or economic
indicators is a tough ask.
But that is the job de-
scription for Ahead of the
Tape. With a mandate to an-
alyze the investment implica-
tions of the most prominent
corporate, financial and eco-
nomic developments before
they happen, we have many
ideas. Some are spot on; oth-
ers don’t work out so well.
Here are some of this col-
umnist’s best and worst calls
in 2016.
Winners
Apple
In the first half of the
year, Apple Inc. couldn’t get
any respect on Wall Street.
Slowing iPhone sales pushed
the stock down more than
30% from last year’s record.
On July 24 before an earn-
ings report, we highlighted
how investors were punish-
ing Apple more than it de-
served and that the stock
was ripe for a rally. Shares
have risen 18% since.
eBay
In July, one year after
eBay Inc. parted ways with
payments subsidiary PayPal,
we noted that eBay deserved
another look. At the time,
eBay had significantly under-
performed PayPal Holdings
Inc. even as it was refashion-
ing itself as more of an on-
line marketplace. Since eBay
was always a great place to
find bargains, we argued its
stock could turn out to be
one, too. Shares have risen
13% since then.
Gold
Gold prices surged 16.5%
in the first quarter, the big-
gest quarterly rally in three
falling more than 1%.
The Dow Jones Industrial
Average shed 13.90 points, or
less than 0.1%, to 19819.78. The
S&P 500 slipped 0.66 point, or
less than 0.1%, to 2249.26, its
lowest close since Dec. 8. The
Nasdaq Composite lost 6.47
points, or 0.1%, to 5432.09.
With few catalysts left to
guide trading this year, some
investors are waiting for more
clarity from the new U.S. ad-
ministration in early 2017 be-
fore adding to their positions.
Still, many investors say
they believe U.S. stocks are
poised to continue their run in
the new year. Economic
growth in the U.S. has acceler-
ated, corporate earnings have
begun to grow again after sev-
eral quarters of contraction
and many analysts and inves-
tors expect President-elect
Donald Trump’s administra-
tion to implement business-
friendly policies like tax cuts
and looser regulations.
“You’re in the holidays, vol-
ume is low, and we’ve had a
good run here,” said Ernie Ce-
cilia, chief investment officer
at Bryn Mawr Trust. “But our
view would be that stocks still
look like the place to be, at
least in 2017,” he said.
Elsewhere, the Stoxx Europe
600 slipped 0.4%. At midday
Friday, Japan’s Nikkei Stock
Average was down 0.40%.
Apple
Disney
July 24
Apple really was
ripe for a rally.
J A S O N D
THE WALL STREET JOURNAL.
decades. Nearly everyone
was bullish, except us. We
said gold investors should
enjoy the party while they
could because it wasn’t going
to last. While early, that call
was ultimately accurate. Gold
kept gaining through July,
but has fallen ever since and
is now down 7% since that
April 3 column.
Losers
Best Buy
On Aug. 22, we were skep-
tical of Best Buy Co.’s turn-
around story and said trou-
bles were mounting, thanks
to a difficult macroeconomic
backdrop. That didn’t pan
out. What we failed to ac-
count for was how success-
fully Best Buy has fought off
an attack from Amazon.com.
Shares have risen 33% since
our piece.
Walt Disney
In May, we projected that
concerns about sports pow-
erhouse ESPN losing sub-
scribers had been priced into
Walt Disney Co.’s slumping
stock price. That failed to
materialize, as cord-cutting
overshadowed the other,
brighter aspects of the Dis-
ney empire. Disney’s stock is
down 1% in 2016 and is one
of only three Dow compo-
nents in the red for the year.
Caterpillar
In January, we described
Caterpillar Inc. as a company
that epitomized the indus-
trial slowdown gripping the
world. We weren’t wrong,
per se. The world’s largest
maker of mining and con-
struction equipment had a
brutal year, slashed jobs and
warned repeatedly about dif-
ficult times ahead. And yet
Caterpillar’s stock has
jumped 37% this year, recov-
ering after losing roughly
half its value over the prior
18 months. But even Cater-
pillar itself warned earlier
this month that Wall Street
was “too optimistic consider-
ing expected headwinds.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B10 | Friday, December 30, 2016
Investors Rethink Crowded Trump Trade
Bonds, beaten down
after election, get new Signs of Reversal
life as exuberance in Investors have pulled back from some postelection trades, stalling gains in stocks and sparking a bond rally.
stock market wanes Stocks, including those that led the rally, have leveled off... ...Government bond yields have come down...
BY AARON KURILOFF
AND MIN ZENG
Investors are recalibrating
their conviction in the Trump
trade, buying bonds and sell-
ing stocks.
Government bonds
strengthened again Thursday,
sending the yield on the
benchmark 10-year Treasury
note down to 2.477% from its
postelection peak of 2.6% hit
Dec. 16, while 10-year German
yields fell to 0.174%, according
to Tradeweb, the lowest level
since the U.S. vote. The S&P
500 fell less than 0.1% to
2249.26, its lowest close in
three weeks.
After Donald Trump’s elec-
tion victory on Nov. 8, inves-
tors bet heavily that tax cuts,
deregulation and fiscal spend-
ing would kick-start growth
and inflation that have been
tepid since the financial crisis.
They dumped government
bonds, which tend to lose
value as inflation erodes their
fixed payments, sending yields
higher. They piled into finan-
cial stocks on expectations
that higher rates would boost
lenders’ profits. They pushed
the dollar up to a 14-year high.
But lately investors have
been dialing back their enthu-
siasm amid concern that prior
moves had stretched too far.
Myriad other factors could be
exacerbating the shift, includ-
ing light holiday trading and
year-end positioning.
Financial shares in the S&P
500 have slipped 1.9% since a
recent high on Dec. 9 after
soaring 19% from Nov. 8 until
then. Industrial shares, having
gained 9.5% from Election Day
through Dec. 9 largely on
hopes of increased infrastruc-
ture spending, have lost 1.8%
since then.
The WSJ Dollar Index,
Email: heard@wsj.com
Heard on the Street’s Best and Worst Calls of 2016
Every day, Heard on the
Street makes calls on mar-
kets, corporate strategy and
economy policy. The writ-
ers—based in New York, Lon-
don, Hong Kong and San
Francisco—try to explain
what is going on and provide
useful advice for readers.
The columns are deeply
reported with a point of
view. Sometimes they are
prescient, sometimes wrong,
but should always be well ar-
gued. Today, we take a look
back through the 1,247 pieces
the writers produced in 2016.
Financials—Aaron Back
Heard on the Street has
been positive on U.S. banks
since June 29, when the Fed-
eral Reserve approved higher
capital payouts for major
lenders, with the column
“Patience Finally Pays Off for
Bank Investors.”
This bullish stance was re-
iterated in columns on Aug.
18 and Oct. 14. Finally, the
Nov. 4 column “Bank Stocks
Still Have Lots of Room to
Run” said rising interest
rates would prompt a rota-
tion out of defensive sectors
and into financials. The sur-
prise election outcome threw
this trade into overdrive. The
KBW Nasdaq Bank Index is
up around 45% since June
29, making this one of Heard
on the Street’s best calls of
the year.
Postelection market action
worked out less well for an-
other call: The July 29 col-
umn “WisdomTree Stumped
by Global Turbulence” was
negative on the asset man-
ager, pointing out that
strength in the yen and euro
against the dollar had less-
ened the appeal of their cur-
rency-hedged funds.
When the dollar soared
following the election, stock
investors bet that Wis-
domTree’s currency-hedged
funds would again become
popular. WisdomTree In-
vestments has risen 15%
since the column.
S&P 500 performance
20%
18 S&P 500 FINANCIALS
▲18.5% from Nov. 8
Financial shares hit a
16 peak Dec. 9 and have
pulled back since then
14
12
10
8
6 0
4 –30
2 –50
0 from Dec. 9
Nov. 8
Note: Yields fall as prices rise
Sources: FactSet; Ryan ALM (Treasurys); TD Securities (futures)
which measures the U.S. cur-
rency against 16 others, fell
Thursday. The move moder-
ated a postelection surge that
carried it to its highest level
since 2002. Gold, which strug-
gles to compete with yield-
bearing assets when rates rise,
rose 1.5% to $1,156.40 an
ounce.
Hedge funds and money
managers have begun backing
off bearish wagers on Trea-
surys. They have accumulated
a net $66.7 billion in Treasury
futures contracts betting bond
prices will fall for the week
ended Dec. 20, down from a
recent peak of $71.9 billion
earlier in the month—the most
on a weekly basis since 2008,
HEARD ON THE STREET
Energy—Spencer Jakab
It was an up-and-down
year for Heard calls in a
down-and-up year for energy.
When oil prices and stocks
were at their nadir in Febru-
ary, Heard made its boldest
call of the year, pounding the
table on Chesapeake Energy
Corp.: “The End Isn’t So
Near.” The stock has pro-
duced a nearly 300% annual-
ized gain since then. A rec-
ommendation a week later to
buy beaten-down master lim-
ited partnerships and in
April to pounce on Baker-
Hughes Inc. also paid off
handsomely.
Heard warned investors to
stay away from renewable
energy developers with
“yieldcos” in 2015 and SunE-
dison Inc. specifically in
early 2016. It went bust, but
Heard saw value in its two
yieldcos, as noted in “Flame-
out Can Yield Opportu-
nity.” One, TerraForm
Power Inc., did fine with a
46% annualized gain, but its
peer TerraForm Global Inc.
barely recovered. Neither in-
vestment was really worth
the risk.
The year’s worst call was
on oil itself. Heard was skep-
tical ahead of a pivotal pro-
ducers’ meeting in Algeria in
September. Their plan
worked, and a subsequent
Organization of the Petro-
leum Exporting Countries
meeting has helped crude fu-
tures to a 27% annualized
gain.
Technology—Dan Gal-
lagher
The year 2015 saw a surge
in semiconductor M&A activ-
ity—more than the previous
three years combined in
terms of dollar value. Heard
on the Street made the risky
call that the party would
rage on in 2016. As it turns
out, this year’s deal activity
broke last year’s record,
thanks in large part to Qual-
comm Inc.’s record-setting
buy of NXP Semiconductors
MARKETS
▼1.9%
from Dec. 9
S&P 500 INDUSTRIALS
▲9.5% from Nov. 8
▼1.8%
from Dec. 9
S&P 500
▲5.6% from Nov. 8
▼0.5%
Dec.
when TD Securities began
tracking the data.
Gene Tannuzzo, senior port-
folio manager at Columbia
Threadneedle, said he has cut
holdings of junk bonds—debt
sold by companies with lower-
rated debt—in recent weeks
and scooped up Treasury
bonds, reflecting concerns that
economic-growth expectations
had become too optimistic.
Mr. Tannuzzo said details
and implementation of Mr.
Trump’s expansive fiscal policy
plans may fail to live up to in-
vestors’ expectations in 2017.
He also is concerned that
higher Treasury yields are
pushing up mortgage rates and
other borrowing costs for con-
FINANCIAL ANALYSIS & COMMENTARY
Heard on the Street's Winners and Losers for 2016
A selection of the best and worst calls by Heard on the Street's writers
WINNERS
KBW NASDAQ BANK INDEX
100
90
80
70
60
50
J F M A M J
CHESAPEAKE ENERGY SHARE PRICE
$10
Feb. 8
8 ‘The end isn't so near’ was spot on
6
4
2 Prices have risen despite
0 20
J F M A M J
PHLX SEMICONDUCTOR INDEX
1000 Jan. 1
Chip party was correctly
900 just getting started
800
700
600
500
J F M A M J
Source: WSJ Market Data Group
NV for $39 billion and Soft-
Bank Group Corp.’s opportu-
nistic pickup of ARM Hold-
ings PLC for $32 billion. By
late November, more than
$130 billion in chip M&A ac-
tivity had been inked, ac-
cording to Dealogic.
We were much less pre-
scient on the consumer-elec-
tronic arena. Fitbit Inc. and
GoPro Inc. started the year
under a cloud, with investors
questioning whether each
could successfully expand.
Heard thought that was too
pessimistic, but those fears
turned out to be well
grounded. Fitbit reported a
“softening in demand” head-
ing into the fourth quarter,
THE WALL STREET JOURNAL.
2016, the Year
of Busted Bets
U.S. 10-year Treasury yield German 10-year yield If bets on higher growth,
2.8% 0.4% inflation and interest rates
don’t pan out, it wouldn’t be
2.6 the first time Wall Street was
wrong in 2016.
0.3
Stocks tumbled to start
2.4
the year, with investors brac-
ing for a global slowdown to
2.2 0.3
tip the U.S. into recession. A
U.S. economic downturn didn’t
2.0 Dec. 16 Dec. 29 materialize. Stocks rallied on
Highest yield since 0.2 Lowest yield expectations that U.K. voters
September 2014 since U.S. would choose to remain in
1.8
election the European Union. The U.K.
voted to leave. Shares surged
1.6 0.1 again when it appeared Hillary
Nov. 8 D Nov. 8 D Clinton would win the presi-
dency. She didn’t.
...and investors have begun to back off bearish bets on Treasurys. Even the market reaction
Net value of Treasury futures contracts, weekly to those surprises was sur-
$10 billion Dec. 20 prising. Brexit pummeled U.S.
Bets on higher stocks—for two days. The
yields have eased selloff in the wake of Mr.
–10
in recent weeks Trump’s victory lasted just a
–20
few hours, confined to the fu-
–40
tures market.
The S&P 500 fell 5.3% in
the two sessions after the
–60
U.K. vote, before rebounding
–70 to record highs two weeks
–80
later. S&P 500 futures fell 5%
J F M A M J J A S O N D in overnight trading as the re-
sults of the Nov. 8 U.S. presi-
THE WALL STREET JOURNAL. dential election came in, then
the index gained 1.1% on Nov.
sumers and businesses, which have staying power. 9 and continued to climb.
could be a drag on the U.S. “Valuations are high, so we The so-called Trump trade
growth outlook. may be in for a little bit of a could be setting up investors
While inflation and growth bumpy road if some expected for their latest whiplash.
have been picking up recently, things like infrastructure Higher inflation “is getting
they have remained stubbornly spending, corporate-tax reform baked into the cake now and
low since the financial crisis. and deregulation don’t occur if it doesn’t pan out, the cake
The Federal Reserve’s pre- or have early momentum,” will fall flat,’’ said Lou Brien,
ferred measure of inflation, said Tom Manning, chief exec- market strategist at DRW
the personal-consumption ex- utive at F.L. Putnam Invest- Trading in Chicago.
penditures price index, has run ment Management. —Aaron Kuriloff
below the central bank’s 2% “We’re seeing speculation and Min Zeng
annual target for more than by the market that many
four years. Gross domestic things they’re interested in do-
product has grown at 2.1% an- ing will come to fruition in
nually since the recession, 2017,” he said.
Notice to Readers
compared with 2.8% between —Riva Gold The U.S. bond market closes
2001 and 2007, according to contributed to this article. at 2 p.m. Friday, and all U.S.
the Commerce Department. markets will be shut Monday
It is still early to conclude  European bond yields tell a for the New Year’s holiday.
whether the markets’ reversals different tale.............................. B9
WSJ.com/Heard
Things didn’t go as well
for our call on AT&T Inc.:
Heard had already warned
that its dividend looked in-
LOSERS
creasingly at risk from a cash
YEAR-TO-DATE PERCENTAGE CHANGE crunch exacerbated by
50% Feb. 1 mounting industry competi-
Abbott's deal for Alere has tion. We also criticized
June 29
25 sputtered from the start AT&T’s July 2015 purchase of
A timely bullish Alere
take on banks DirecTV as strategically
0 flawed. But while the deal’s
strategic merits remain un-
–25
proven, the renewed safety
–50 Abbott Laboratories of AT&T’s chunky dividend
and a postelection boost on
J A S O N D J F M A M J J A S O N D
hopes of a sympathetic
NYMEX CRUDE-OIL PRICE, FRONT-MONTH CONTRACT Trump administration helped
$60 a barrel drive its shares up 24% in
2016.
50
Health Care —Charley
40 Grant
Sept. 26 Heard repeatedly warned
30 that the business model of
oil's grim fundamentals using cheap debt to buy up
old drugs and sharply raise
J A S O N D J F M A M J J A S O N D the prices thereafter was un-
sustainable. The share-price
YEAR-TO-DATE PERCENTAGE CHANGE collapse of Valeant Pharma-
40% June 18 Aug. 9 ceuticals International Inc.
Fitbit was GoPro's valuation wasn't and Concordia International
too stretched compelling enough
0
Corp. has borne that thesis
out.
GoPro Drug-price worries did
–40 less stock price damage for
pharma companies with
–80 Fitbit more manageable balance
sheets, but companies were
J A S O N D J F M A M J J A S O N D less willing to raise prices as
THE WALL STREET JOURNAL. regularly and as sharply as
had become normal in recent
and GoPro’s first drone lem related to its accounting. years. The NYSE Arca Phar-
crashed just weeks after its As the company’s internal maceuticals index has lost
launch. Both companies have audit dragged on, Heard on more than 11% this year, in
shed more than half their the Street revealed that non- an otherwise good year for
market value this year. monetary revenue had the stock market.
helped comScore’s top execu- Less accurately, Heard was
Media and Telecom—Mir- tives reap lucrative incen- bullish on the planned acqui-
iam Gottfried tives. The investigation even- sition of Alere Inc. for $56 a
Last year, Heard on the tually determined that both share by Abbott Laborato-
Street first pointed out an nonmonetary and some mon- ries, which Abbott an-
unusual accounting practice etary transactions were im- nounced in January.
at comScore Inc.: The me- properly recorded. Com- That thesis sputtered right
dia-measurement firm was Score’s chief executive, chief from the start: Abbott sued
recording “nonmonetary” financial officer and chair- to get out of the transaction
revenue, which came from man were all forced to re- after Alere encountered a lit-
barter deals and had no cash sign, and the company will any of woes, including a late
attached. The problems restate three years of finan- filing of 2015 financial re-
played out this year. On Mar. cial results.By June 29, sults, run-ins with the gov-
7, comScore said it would be shares had fallen as much as ernment and a product re-
unable to file its annual re- 56% from our initial call and call. Alere shares now trade
port after learning of a prob- are still down 40%. below $40.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

MANSION
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com

One woman’s two-story ‘I beg you to take courage; the brave

wall of shoes soul can mend even disaster.’
M3 —Catherine the Great

HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES | FIXTURES | BROKERS

© 2016 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, December 30, 2016 | M1

DISASTER RECOVERY PLAN

Catastrophic events can wreak havoc on a home, but owners with the resources
and the fortitude to rebuild can end up with an even better house than before.

WILL FIGG FOR THE WALL STREET JOURNAL (6); JOE SCHMELZER FOR THE WALL STREET JOURNAL (SHOES)

MODERN REMAKE Stephanie Lofgren and her husband, Craig, built this vacation home on New Jersey’s Long Beach Island after superstorm Sandy struck in 2012. Clockwise from top left: the kitchen
opens up onto the dining room; the exterior is made from stucco, concrete and steel; the couple with kids Jackson, Kyra and Patrick; and the second-floor living room.

who is 54 years old.
BY NANCY KEATES
Instead, friends, neighbors and a cousin who
is a contractor all stepped up to help them re-
WHEN A 6.0-MAGNITUDE earthquake struck build their home even better than before. This
Napa, Calif., on Aug. 24, 2014, it pushed Jill one is bolted to its foundation with steel struc-
and Steve Matthiasson’s 110-year-old farmhouse tural beams that can withstand seismic shaking
off its foundation. The couple was unhurt, but and has an electrical system upgraded to meet
their home—set on 5 acres of vineyards for code and new plumbing with flexible pipes in-
their winery —suffered significant damage. stead of rigid pipes that could snap off in an
“We thought it was the end of our house and earthquake.
the end of our business,” says Ms. Matthiasson, The home also got a nicer kitchen, designed
for Mr. Matthiasson as the “ultimate kitchen for
cooking.” In all, the project took about six
months and cost $350,000.
“We are ready for the next earthquake,” she
says.
Hurricanes, wildfires, earthquakes, floods. An
average of 120 major disasters have struck
somewhere in the U.S. every year since 1996, ac-
cording to the Federal Emergency Management
Agency. Catastrophic events can wipe out entire
Please turn to page M5

HIGH HOPES IN SCOTLAND’S LOWLANDS INSIDE

The outlook is bright in Edinburgh’s city center, where prices of prime real estate have returned to prerecession levels.
KIERAN DODDS FOR THE WALL STREET JOURNAL (EDINBURGH); BRAD TRENT FOR THE WALL STREET JOURNAL (MONK); BIRDS EYE OF BIGSKY

BY RUTH BLOOMFIELD

THEY TAKE the new year

seriously in Edinburgh, with
a three-day street party,
torch-lit parades and a $26.7 MILLION
morning-after plunge into Investor lists his
the ice-cold River Forth. Montana ranch M2
Perhaps 2017 will bring
the same level of excitement
to prime real estate in the
Scottish capital after some
dismal years. The recession
was followed by the 2014 in-
dependence referendum and
this year’s Brexit vote to
leave the European Union,
all of which rattled confi-
dence in the housing mar-
ket. But prices are finally
creeping upward. HAMBURG HAUS
The average price for a A duplex with skyline
home in Edinburgh is and sunset views M4
£231,103, or $283,855, up
1.9% compared with the pre-
vious year, according to No-
vember data from Britain’s
leading house-price monitor,
the Land Registry.
The outlook is brighter in
Edinburgh’s city center,
where prices of prime real
estate have already returned SCOTTISH STREETSCAPE Princes Street in the heart of Edinburgh, where home prices were up 1.9% compared with the previous
to prerecession levels, said year, according to data released last month. New Town is the capital’s most desirable city-center neighborhood among luxury buyers.
Ben Fox, director of Savills
Edinburgh. ter rather than the suburbs,” to invest, and people like to By comparison, grand urban areas—are still as RAISED HER VOICE
“People are looking pre- Mr. Fox said. “I think there be close to work and all the homes in the “wrong loca- much as 30% below peak Meredith Monk’s
dominantly in the city cen- is a feeling it is a safer place amenities of the city center.” tions”—meaning more sub- Please turn to page M8 musical memories M6
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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M2 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

MANSION

BIRDS EYE OF BIGSKY

PRIVATE PROPERTIES | STEFANOS CHEN

NHL Investor Bill Foley Lists Montana Ranch

Bill Foley, the longtime deal maker
and an investor in the NHL’s newest
franchise, has listed his 21-acre Mon-
tana ranch for $26.7 million, said
listing agent Ross Pickert with Gla-
cier Sotheby’s International Realty.
In Whitefish, a northwestern ski
town near the Canadian border, the
forested property includes an 11,500-
square-foot lodge-style home, three
roughly 1,200-square-foot guest cab-
ins and a day cabin with more than
1,260 feet of lake frontage.
The main home, built in 2006, in-
cludes five fireplaces, stone patios, an
in-ground hot tub, a screened porch
and a great room with a roughly 20-
foot-tall ceiling. The grounds include
hiking trails and a creek, said Mr.
Pickert. There is ample wildlife, in-
cluding deer, waterfowl, and trout
and whitefish in the lake.
Mr. Foley, 71, is the chairman of
the board of Fidelity National Finan-
cial and Black Knight Financial Ser-
vices. In June, the NHL announced it
would expand to Las Vegas for the
2017-18 season, with Mr. Foley as the
lead investor for the new team,
dubbed the Vegas Golden Knights.
Mr. Foley was expected to pay $500
million to the league’s other owners
in expansion fees, according to the
Journal. In an interview, he said he is
also the majority owner of the
Whitefish Mountain Resort, the ski
resort near his ranch, and owns a
stake in several restaurants and
about 20 vineyards.
Mr. Foley and his wife, Carol, pur-
chased the property—including addi-
tional land—in 2005 for $26.6 mil-
lion, according to public records. He
said that he is selling because he is
splitting most of his time between a
Montana cattle ranch he owns and
business commitments in Las Vegas.
He said he plans to keep a large
swath of adjacent land and a vaca-
tion home nearby.

FREDERIC FEKKAI’S HOME SEEKS BUYER

Frederic Fekkai, the celebrity hair-
stylist who has coiffed the likes of
Hillary Clinton and Meryl Streep, is
listing his Upper East Side duplex co-
op for $8.5 million.
Located on Fifth Avenue, overlook-
ing the trees of Central Park, the
3,500-square-foot, third- and fourth-
floor duplex has nine rooms, includ-
ing four bedrooms and 4½ baths.
Built in 1926, the 14-story tower has
just seven units, according to real-es-
tate data site StreetEasy. It was put
on the market in October.
Mr. Fekkai bought the unit for $7.4
million in 2006 from the late billion-
aire John Kluge, according to public
records. The apartment, seen below,
has several gas fireplaces and “a very
European feeling, obviously French,”
said interior designer Robert Coutu-
rier, who said he designed the space
FROM LEFT: DOUGLAS ELLIMAN (FEKKAI); EVAN JOSEPH; BETTMANN ARCHIVE/GETTY IMAGES (PORTRAIT)
around 2009. There is a wood-pan-
eled library with 18th-century wood
sourced from a home in France, Mr.
Couturier said. Monthly common
charges are roughly $11,700.
Mr. Fekkai, 58, rose to prominence
in 1989, when he took over the salon
above the high-end department store
Bergdorf Goodman. He made head-
lines in 1993, when he was charging
$275 for haircuts to clients, including
then-First Lady Hillary Clinton. He
currently owns salons in New York,
Greenwich, Conn., Palm Beach, Fla.,
and Dallas. Mr. Fekkai couldn’t be
reached for comment.
Listing agent Leonel Piraino of
Douglas Elliman declined to com-
ment. He shares the listing with Ser-
ena Boardman of Sotheby’s Interna-
tional Realty, who also declined to
comment.

ARTIST’S NEW YORK CO-OP FOR SALE

The Upper West Side home of the
late artist Aaron Shikler, known for his
iconic portraiture of John F. Kennedy
and Ronald Reagan, will list for $7 mil-
lion, according to his daughter.
The roughly 3,500-square-foot co-
op, located in the neo-Gothic style
Studio Building, is where the artist
completed some of his best known
commissions, including paintings of
Jacqueline Kennedy Onassis, said his
daughter, Cathy Shikler-van Ingen.
The home, above, includes three
bedrooms, 2½ bathrooms and an art
studio with a roughly 14½-foot ceiling,
said listing agent Monica Luque of
Douglas Elliman. It overlooks the
American Museum of Natural History.
Ms. Shikler-van Ingen, who grew up
in the apartment, said her father
bought the unit for roughly $27,000 in
1971. “It was a time when you could
walk outside by yourself as a kid,” said
Ms. Shikler-van Ingen, 61, who said
some of her fondest memories were of
watching the Thanksgiving Day parade
floats get inflated late into the night.
Mr. Shikler rose to fame when he
was commissioned to create a posthu-
mous portrait of President Kennedy.
Mr. Shikler would later paint a lasting
image of President Reagan that ran on
the cover of Time Magazine’s Man of
the Year issue in 1981. He died in 2015
at the age of 93.
Ms. Shikler-van Ingen, a faculty
member at the New School in New
York, said she is selling the apartment,  See more photos of notable
along with her younger brother, be- homes at WSJ.com/Mansion.
cause “it’s time to move on.” Email: privateproperties@wsj.com

On WSJ.com: Vote for the House of the Year

FROM LEFT: CONCIERGE AUCTIONS; ENGEL & VÖLKERS; KNIGHT FRANK

Santa Barbara, Calif., compound Modern villa in Mallorca, Spain
Owned by the former CEO of Raytheon, this Mediterranean-style
compound has 13,000 square feet spread over 13 buildings. The
property comes with a vineyard, tree house, fort and zip line. The
owners paid $1.46 million in 1997 for the home, known as Deer
Lodge. The seller was Caryn Johnson, better known as actress
and comedian Whoopi Goldberg. The compound and the other
homes featured here are in the running to be the House of the
Year, as chosen by readers.
Built on about 40,000 square feet of land, the property is located
in the Son Vida residential area, a few minutes’ drive from Palma.
The 13,993-square-foot villa has six bedrooms and six bath-
rooms. Amenities include an infinity pool that is about 65-feet
long. There is also an indoor pool and gym. The kitchen is all-
German, with Siematic fittings and appliances from Gaggenau.
The house is clad in material designed to match the local mares
stone, which gives it a warm, honey-gold hue.
Chalet near Chamonix, France
This five-bedroom chalet is set high in a forest overlooking the
Mont-Blanc mountain range. The 2,303-square-foot house has
five bedrooms and two bathrooms across six half-levels. The en-
trance is on the second floor. The home sits on almost half an
acre. “In the summer, our sons spend most of their time round
the pool and the Jacuzzi, when they’re not out walking,” says the
owner, the chief executive of a biotechnology-consulting firm.
Pick your favorite at WSJ.com/realestate
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
Shoe Storage Fit for an Art Gallery
In Newport Beach, Calif., a luxurious ‘shoe wall’ shows off a collection of fancy footwear.
PAIGE HILL’S SHOE closet is an illuminated display case, 17
feet tall by 8 feet wide, just off the master bedroom suite of
her glass-and-concrete house in Newport Beach, Calif.
Ms. Hill, owner of Ultra-Mod Home Concepts, an inte-
rior-design company, spent more than $20,000 to create
the gallery-worthy shoe wall, which spans two stories of
the 1,940-square-foot home she and her husband, Michael,
built in 2013.
“My mom said, ‘You spend so much money on shoes, you
should put those on the wall instead of art,’ ” said Ms. Hill,
1. Cabinetry: Carpenter Ricky Reedy, working
with Patterson Custom Homes, used com-
puter-assisted design software to design the
shoe wall. Built from engineered wood, the
cubbies are deep enough to provide proper
shoe storage for Ms. Hill’s wide-ranging collec-
tion without crowding the atrium’s walkways.
Price: Andrew Patterson, Ms. Hill’s builder, esti-
mates that a similar cabinetry piece would cost
$30,000 today
2. Lacquered look: Painters in body suits and
face masks spray-painted the wall with multiple
coats of high-gloss paint to achieve a seamless
lacquered look. “They had to get upside down
and right and left to get in those cubbies—it
wasn’t an easy job,” said Mr. Reedy.
3 night,” said Ms. Hill, who adjusts the lights
NY
MANSION
ANNOTATED ROOM
44, who collaborated on the design with her architect Chris
Brandon. “Lightbulb!”
Seventy-five pairs of shoes glow under concealed lights
inside glossy display cubbies. Ms. Hill climbs a library
ladder that slides along an 8-foot track mounted high
on the wall to reach all 19 cubbies, which are individually
sized for every type of fancy footwear, from silver heels
with spikes to her current favorite: a pair of black lace
thigh-high boots with gold heels—hand-stitched with
ostrich feathers.
1
4 turned a pair of red suede shoes brown, she
5 5. Library ladder: The rolling ladder was cus-
6 other,” says Mafi ambassador-in-charge Walter
Friday, December 30, 2016 | M3
The Tom Ford boots were a gift from Mr. Hill, a
developer and former options trader who selects and
buys all his wife’s shoes. “I went into the wrong profes-
sion,” he said.
Ms. Hill, who sends the overflow from her ever-expand-
ing collection to the couple’s other homes in Chicago and
Vail, Colo., keeps the shoes she wears most often on the
wall’s lower level, just outside her master suite.
“I used to give shoes away, but now they go to the top
of the shoe wall,” she said. —Amy Gamerman
Price: Valspar lacquer high gloss paint and
labor, about $4,000 at current rates, accord-
ing to Mr. Patterson
3. Skylights: A bank of rectangular skylights
on the sloped ceiling bathes the wall in natural
light. After Ms. Hill noticed that the sun had
fitted the skylights with custom-made trans-
parent solar screens.
Price: Velux fixed curb mounted skylight with
tempered glass, $336 per skylight; custom
window treatments by Solar Shading Systems,
2 about $600 per shade
4. Lighting system: Approximately 80 feet
of tiny warm-white LED lights on flexible
copper strips are threaded inside the cub-
bies, hidden behind narrow cabinetry reveals
with self-adhesive tape. “It’s pretty cool at
through a home-automation system.
FROM LEFT: JOE SCHMELZER FOR THE WALL STREET JOURNAL; JERI KOEGEL
Price: SSC7C soft strip 7W commercial tape
light from Lightology, $82 per foot
tom-built with chrome hardware from Putnam
Rolling Ladder Company.
Price: #270 Old Style chrome hardware kit
with 8 feet of track, about $790
6. Flooring: The kiln-baked ash flooring, by
Mafi in Austria, has a natural oil finish; no
chemicals or plastic coating were used to seal
its surface. “Mafi believes human skin and
wood should be in communion with each
Lourie.
Price: Mafi ash vulcano medium flooring,
7.25 inches wide, is $18.79 per foot
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M4 | Friday, December 30, 2016
High Over the Hamburg Harbor
Elmar and Barbara Meier bought a luxury HafenCity duplex that overlooks the changing city skyline; a
customized sauna and a warm-hued kitchen with leather-covered cabinets
BY J.S. MARCUS
ELMAR AND BARBARA Meier
will have prime seats for the offi-
cial inaugural concert next month
of the new Elbphilharmonie con-
cert hall in Hamburg, Germany.
The Meiers won’t be in the audi-
ence, but their home high above
the harbor gives them sweeping
views of the flashy new venue and
buzzing activity surrounding it.
The couple moved last year
into the 10th and 11th floors of a
recently completed 14-story lux-
ury tower in HafenCity, Ham-
burg’s redeveloped harbor area.
Their new one-bedroom, 1½-bath-
room home has 360-degree views
of the city, including the curves of
the Elbphilharmonie’s sculptural
roof, which they also can see from
their bathtub.
The 2,045-square-foot duplex is
a short walk from their previous
home in the same area: a 1,290-
square-foot penthouse where they
lived for seven years.
“I only want to live in Hafen-
City. There is always something
happening, and people are moving
here from everywhere,” says
Mr. Meier, who first moved to
Hamburg with his wife from their
native Paderborn in north-central
Germany in 2008, using the pent-
house as a pied-à-terre.
Mr. Meier, a 59-year-old entre-
preneur, and Ms. Meier, a 51-year-
old technology specialist who of-
ten works with her husband, paid
$2.9 million for their home, which
they bought in 2014 while the
building was under construction.
They then spent about $260,000
on the interior. The two divide
their time between their city
home and their 7½-acre estate in
Spain on the southeast coast of
Mallorca.
The couple worked with local
architect Ulrike Krages to fine-
tune the space. The apartment’s
main entrance is on the duplex’s
top floor, which has an open-plan
layout and 12½-foot ceilings. The
lower floor includes the master
bedroom and bathroom, two in-
formal sitting areas and a sauna.
The sitting areas—especially a
windowed corner with two classic
Le Corbusier armchairs—are used
to cool down after a sauna or just
as a spot to relax after dinner.
The sauna was the couple’s big
splurge—a $52,250 customized
Klafs unit designed by Matteo
Thun and Antonio Rodriguez. But
the two indulged in many design
splurges to suit their distinctive
tastes and lifestyle, such as a
$26,120 rotating Bang & Olufsen
television set and Boffi lights
over the bar off the kitchen.
A pair of bedroom dressers
with goat-parchment finishing, a
technique associated with the Art
Deco period, were brought over
from the earlier penthouse.
LUXE DUPLEX Elmar and Barbara
Meier, right, bought a one-bedroom
home in a 14-story luxury tower,
above, in HafenCity, Hamburg’s rede-
veloped harbor area. They paid $2.9
million for their home, then spent
nearly $260,000 on the interior.
For outdoor space, the home
has two corner terraces: one off
the kitchen that gets the morning
sun, making it well-placed for al
fresco breakfasts; the other off
the living area that has a view of
the Elbe River and is used for
watching sunsets over cocktails.
HafenCity takes up some 390
acres of docklands and former in-
dustrial areas just south of Ham-
burg’s historic center. Construc-
tion on new buildings started in
2001, and the entire neighbor-
hood is set for completion around
2030.
The new Elbphilharmonie, by
Swiss architects Jacques Herzog
and Pierre de Meuron, is the cen-
terpiece of the redevelopment. It
rests atop a massive, 1960s red-
brick warehouse and includes a
hotel and 44 luxury apartments.
The Meiers said they consid-
ered buying an Elbphilharmonie
apartment, but preferred the
wide-open feeling of their duplex,
and having a view of the Elbphi-
harmonie rather than living in it.
Hamburg is Germany’s old-
money capital. Until HafenCity,
its most expensive homes were
largely clustered above the
Elbe, which connects the city to
the North Sea, or around the
Alster lakes.
MANSION
BALANCE SHEET
LIGHT AND DARK The home’s living area, with Minotti sofa, has city views,
top. The kitchen’s black granite counter and leather-covered cabinets, above.
The wardrobe is decorated with wallpaper by Osborne & Little, top left.
The city has some of Germany’s
most expensive residential real-
estate. In 2015, only Munich sold
more homes at or above €1 mil-
lion—and prices for high-end
homes in the area are soaring. Mr.
Meier bought his previous Hafen-
HOT SEAT The Meiers installed a customized sauna on the lower floor, near their bedroom and two sitting areas.
City apartment in June 2007 for
about $800,000 and now rents it
out for $2,300 a month. Premium
HafenCity apartments now gener-
ally sell for $971 a square foot.
In their new home, the Meiers
aimed to avoid the usual choices.
THE WALL STREET JOURNAL.
COSTS
Kitchen
$115,000
Sauna
$52,250
Minotti sofa
$16,700
TV set
$26,120
Architect’s fee
$31,000
Le Corbusier
chairs
$10,400
Bathroom
lighting
$7,200
TOTAL
$258,670
“We didn’t want a white kitchen,”
says Mr. Meier.
Instead, they spent $115,000 on
a dark-hue, customized kitchen
from their architect’s UK4 brand.
The counters are black textured
granite, and the cabinets are cov-
ered in brown leather.
Elsewhere, they wanted to
lighten things up, rejecting Ms.
Krages’s suggestion of dark oak
floors in favor of a lighter, oiled
version.
Mr. Meier has one regret: the
$16,700 beige Minotti sofa in the
living area. “Looking back, I
should have been more adventur-
ous,” he says, reaching for some-
thing purple by way of example.
The two were, however, adven-
turous in their downstairs space.
The couple opted for the custom-
ized sauna in lieu of a potential
guest bedroom.
“We made the apartment for
us,” says Mr. Meier of himself and
his wife. “Our guests,” he adds
with a laugh, “can go to a hotel.”
TORBEN CONRAD FOR THE WALL STREET JOURNAL (6)
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Friday, December 30, 2016 | M5

MANSION

DISASTER RECOVERY PLANS

Continued from page M1
neighborhoods and cost millions of
dollars in property damage. But
those with the resources and the
fortitude to rebuild can end up
with an even better house, one
that has stronger defenses against

CARMEL ZUCKER FOR THE WALL STREET JOURNAL (4); STASZ FAMILY (FIRE DAMAGE)
acts of nature and is more suited
to families’ changed needs.
The Memorial Day Flood of 2015
dumped more than a foot of water
into Jennifer and Ben Deneen’s one-
story home in the Meyerland neigh-
borhood of Houston. The couple
and their two young children spent
eight hours atop the kitchen coun-
ters until floodwaters receded. They
used their swimming-pool raft to
float their kids to a friend’s house
around the corner. Meanwhile, their
furniture, carpets and anything else
on the floor were ruined.
The Deneens considered repairs
to the damaged floors and cabinets,
but quickly realized they wanted a
house that could withstand future
floods. They also felt it was the
right time to tear down the house
and build a new one with the extra
space they’d long wanted. The next
week, work started on a house with
two stories, five bedrooms and a
price tag of around $1 million. Af-
ter a week in a hotel and a year
and a half in a two-bedroom, one-
bathroom rental apartment, the
family is back home.
“We decided if we were going to
do it, we were going to do it
right,” says Ms. Deneen, 39, a hos-
pital administrator.
The flood inundated 800 of the
2,400 homes in Meyerland and led
to the construction of 150 new FROM THE ASHES In Boulder, Colo., John and Lynn Stasz built a new house, top and at right, on the foundation of
homes, according to Ed Wolff, their old home, which was destroyed in a wildfire. Above left and center, the living room and the couple in a foyer.
president of Beth Wolff Realtors
who lives around the corner from
Ms. Deneen. A study his firm did
of the effects of the 2001 tropical
storm Allison in Southeast Texas
found that the values of homes in
the affected neighborhoods dipped
sharply initially, but after two

CASEY WOODS FOR THE WALL STREET JOURNAL (3); DEENEN FAMILY (FLOOD DAMAGE)
years were substantially higher
than before the flooding, with the
square footage of the homes up
significantly.
Based on that, Mr. Wolff de-
cided to renovate his damaged
house, a three-bedroom, 3,600-
square-foot, ranch he and his wife
bought for $389,000 in 2005. Re-
moval of the damaged sheetrock
and cabinets allowed them access
to update electrical and plumbing
systems. The newly configured
kitchen got new cabinetry and
flooring, as well as a pantry. They
added drainage around the exte-
rior of the home (about $10,000)
to help guard against future water
penetration in the home.
Initial improvements cost about
$30,000. Then, with the $175,000
they got from insurance, plus an- WATERY After a storm dumped over a foot of water into Jennifer and Ben Deneen’s Houston home, shown at left, the
other $70,000 of their own money, couple built a new home, above, in its place. At left, the Deneens with kids Ben and Madelyn, and the living room.
they undertook larger projects. To-
day, Mr. Wolff estimates his home
is worth $700,000.
“We took advantage of the op-
portunity,” he says.
ALLIE FORAKER FOR THE WALL STREET JOURNAL (3); MATTHIASSON FAMILY (EARTHQUAKE DAMAGE)

Emergency assistance and insur-

ance payouts typically require ex-
tensive paperwork that can delay
reconstruction. And new building
codes implemented after a natural
disaster can further complicate re-
building efforts. FEMA assistance
is generally no more than a few
thousand dollars and is just for ini-
tial help, not to “make people
whole again,” says Rafael Lemaitre,
the agency’s head of public affairs.
“We’re not going to redo a rec
room,” he adds. As a result, home-
owners planning sweeping renova-
tions know they’ll need to person-
ally finance many of the upgrades.
FEMA’s goal is to transfer the
risk of natural disasters away from
taxpayers and toward the private
sector, so it urges everyone to get
insurance. That’s not always so QUAKE REMAKE A 6.0-magnitude earthquake pushed Jill and Steve Matthiasson’s Napa, Calif.,
easy, says Tom Larsen, chief prod- home off its foundation, far right. Above and right, the home was rebuilt and updated. Top right, the
uct architect for CoreLogic, a data- Matthiassons with their kids, Kai and Harry, outside their home.
analytics company. While fires and
tornadoes are usually covered un- New structural and flood-level permitting. materials, and the different zoning advantage of the expansive moun-
der standard homeowner’s poli- requirements enacted after the Superstorm Sandy also drasti- and environmental clearances tain and city views that resulted
cies, earthquakes, mudslides and storm meant starting from scratch cally changed Bill Meyer’s 2,000- made the house a challenge. Mr. after the fire wiped out the trees
flooding from extreme weather are with the design. Instead of what square-foot ranch home in Mon- Meyer collected various forms of on their 35-acre lot. There is no
generally not. These separate poli- architect Scott Specht calls a mouth Beach, N.J., when it split assistance, including federal and wood on the exterior (it’s all stone,
cies are often exorbitant and pro- “pristine white modern” home, the the foundation in two. It was de- local grants that totaled more than stucco and metal) and no fire-
vide minimal payouts, Mr. Larsen second design of the house, clared beyond rehabilitation by $150,000. The new house cost places; instead there’s a courtyard
says. though still decidedly modern, has FEMA. So Mr. Meyer, a 73-year-old about $1 million to build. with a water feature at the center.
Stephanie Lofgren, 53, a retired more beach-durable cedar cladding marketing entrepreneur, hired ar- Lynn and John Stasz had only The fire changed more than just
college professor, and her hus- and incorporates boat-building chitect Michael Graves to design minutes to evacuate the home the architecture of their house: It
band, Craig, a management consul- materials like a fiberglass roof. Ex- something completely different: a they’d lived in for almost 30 years transformed the dynamic of the
tant, had to wait 18 months before terior materials include stainless 6,000-square-foot contemporary in the foothills of Boulder, Colo., neighborhood, says Ms. Stasz, a 70
they could start construction on steel, stucco and concrete. What home with two master bedrooms during the Fourmile Canyon Fire year-old business consultant. Be-
their new vacation home on New were three levels of living space and several decks. The design of September 2010. The fire de- fore, the couple barely knew the
Jersey’s Long Beach Island after became two, the media room made it handicapped accessible in stroyed 70 homes, including their names of their neighbors because
superstorm Sandy struck in 2012. shrunk and the swimming pool got case the need arose in the future, 1970s-era, 3,000-square-foot tradi- the trees kept them isolated. After
At the time of the storm, they had scratched. “It forces you to reflect Mr. Meyer says. tional home. The new house they the fire, nearby families bonded
just razed the $1.1 million home and prioritize,” says Ms. Lofgren. Architect Bernice Chen of Mi- built two years later, which cost over recovery efforts, going to com-
there they purchased in 2010, and The final square footage was 2,400 chael Graves Architecture, who about $1 million, is completely dif- munity meetings about filing insur-
construction was about to begin square feet instead of 2,900, and took over the project after Mr. ferent. Architect Mark Alan Ger- ance claims and building codes.
on their new home. The storm left the cost went down about two- Graves died in 2015, says the need wing created a single-level, mod- Now they have lifelong friends.
them with what Ms. Lofgren calls thirds, despite having to pay about to protect against future storms, ern home with lots of floor-to- “We lost our home but we discov-
“an expensive sandbox.” $40,000 for redesigning and re- which required researching new ceiling glass and patios to take ered community,” says Ms. Stasz.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M6 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

MANSION
HOUSE CALL | MEREDITH MONK

Out on a Limb
In Connecticut
The avant-garde singer recalls
her mother’s voice, a film witch
and climbing backyard trees

Even as a child, I knew I wanted to create

rather than interpret. But it wasn’t until
Sarah Lawrence College in the early 1960s
that I began to envision how to combine sing-
ing, theater and dance.
My family first lived in the For-
est Hills section of Queens, N.Y., on
Queens Boulevard. We lived in a
corner apartment on the sixth
floor of a large redbrick building.
The first sound I remember as a
child was a garbage truck. I was
lying on my parents’ bed and
heard the loud clattering of metal
cans and the whine of the motor
processing what had just been
dumped into it.
Across the boulevard was the
Trylon movie theater, where I saw
“The Wizard of Oz” in the mid-40s.
After that, I was afraid Margaret
Hamilton, the Wicked Witch, would
come up my fire escape to get me.
I believed the people I saw on the
screen lived in the theater.
My mother, Audrey Marsh, was
a radio singer and recording artist.
She had a wide vocal range and
could croon popular songs or sing
in a light operatic style.
At a certain point, she was very
much in demand as a jingle singer
for major advertisers. When I was
little, she’d take me to CBS and
NBC and park me in the control
room while she sang them live.
There was no tape then.
Being around music all the time
was normal for me. I could sing
before I could talk. When I was 3,
my mother began taking me by
subway into Manhattan for weekly
piano lessons. I also took Dalcroze
Eurhythmics, which taught music
through physical movement.
I loved classical music. Chil-
dren’s records then taught the mu-
sic through wonderfully narrated
stories. The first song I learned off
the radio was Nat King Cole’s “Na-
ture Boy.” The song wasn’t easy,
given the unusual melody, but I
loved the challenge.
During World War II, my father,
Theodore, was a Navy Seabee sta-
tioned in Guam. After, he went
into business with his two broth-
ers. They owned Square Lumber &
COMPOSED Meredith Monk in her Manhattan loft, above, and at about age 3, left, in her home in Queens, N.Y.
Supply Co. in the Bronx. Both of
my parents worked, so they had an
older woman look after me.
My sister, Tracy, was born in
1948, and we shared a room for a
year. Then my family moved to
Stamford, Conn. My parents
wanted to raise us in the country.
They commuted to New York.
My father designed our home—
a ranch-style, L-shaped house on
an acre. There were trees out back
and I liked hanging upside down
from the branches. But as more
houses went up, trees came down.
I grieved for the woods.
In high school, I attended the
George School, a Quaker boarding
school in Bucks County, Pa. I loved
it there. I sang, acted in plays and
choreographed shows.
Later, at Sarah Lawrence Col-
lege in 1960, I began to imagine
how I might combine singing,
movement and theater into a sin-
gle art form. I came alive there,
artistically, and had enormous sup-
port from my teachers. I earned
money by singing folk songs at
children’s birthday parties. I had
been playing guitar since I was 13.
In 1964, I began to perform my
work in galleries and other alter-
native spaces in New York. One
day at the piano, about a year
later, I realized I could use my
voice as a multifaceted instrument
and build a vocabulary of vocal
sounds. I discovered that the voice
itself is a powerful and eloquent
language that doesn’t need words.
Today, I live in a fifth-floor,
2,000-square-foot loft in Tribeca
in Manhattan. The apartment has
an “L” shape—the long part is my
studio and the small part is my
BRAD TRENT FOR THE WALL STREET JOURNAL; THEODORE MONK (HISTORICAL)
living space. I love how it’s laid
out—allowing me to work and
then leave work behind.
When I’m working on a new
piece, I don’t often listen to other
artists’ music. It’s too distracting.
But when I’m not working, I listen
mostly to Brazilian music. It’s so
lyrical and complex.
In the early ’80s, I had a chance
to meet Margaret Hamilton. She
was working with my mother in
the Veterans Bedside Network pro-
gram at a hospital in New York.
We spoke, and she turned out to
be the sweetest person.
—As told to Marc Myers
Meredith Monk, 74, is a composer,
singer and director who in 2015 was
awarded the National Medal of Arts.
She recently released her 16th al-
bum, “On Behalf of Nature” (ECM).

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THE WALL STREET JOURNAL. Friday, December 30, 2016 | M7

MANSION
IN THE TRENCHES

Where the Fur Was Flying

California agents tell about less-than-welcoming house tours

ers. It was extremely cold. On the
BY STEFANOS CHEN
bed were at least two big comfort-
ers—and people!
Q. Who was your This had never happened be-
fore. The covers flew back and
most unusual client? there were the two homeowners—
in fur coats.
Jade Mills, Coldwell Banker Everybody was shocked. The
showing, the house was vacant.
Matt Berkley, an agent with
Crosby Doe Associates in Bev-
erly Hills:
I was listing a beautiful Span-
ish-style house—six bedrooms,
five bathrooms, at least 4,000

Previews International agent in
Beverly Hills, Calif., and co-
chair of its International Luxury
Alliance:
I had a showing in 2014 at a
20,000-square-foot villa in Bel Air,
listed for $38 million. It was sort
of normal that the homeowners
slept late because they worked
overseas. It was also normal that
they kept their master bedroom
very cold—it was like they had re-
frigeration in their bedroom, not
air conditioning. The woman was
always trying to preserve her skin,
and thought the cold helped.
I walked into the master bed-
room with some prospective buy-
homeowners screamed, jumped
out of bed and ran into the bath-
room. The prospective buyers and
I turned and ran out the door.
I was embarrassed for everyone.
In the end, the homeowners came
down to the kitchen in their fur
coats. The prospects and I toured
the rest of the house and the
homeowners kept out of our way
from that point on.
The prospects didn’t buy that
house, but they did buy a home for
a little less than $38 million.
My clients, the fur-coat home-
owners, eventually sold the home
for something in the $20 million-
range to another buyer. At that
square feet—in Pasadena, Calif.,
around 2006. It was on the market
for about $1.5 million. When I was
preparing to have photography
done for the home, I noticed that
the house smelled like cats.
I very carefully explained to the
owner that we should probably do
something about the smell. The
owner, who had hidden most of
her pets that day, said her house
didn’t smell. I said, OK.
But the smell got worse as we
got closer to listing the home. I
knew she had at least one dog and
one cat, but those are the only
ones I had seen.
On the day of the brokers’ open
VICTORIA TENTLER-KRYLOV
house, she told me to lock the Within a week, I had severe bron-
doors, because she didn’t want the chitis. I wound up with pneumonia
cats and dogs—plural—to get out. after that.
That day, the smell was so bad It was the first time that I ever
that some visitors couldn’t even let a client go. The owner was ex-
get past the driveway, which was a tremely upset. She told me I
good 75 feet from the house. wasn’t letting her go, she was let-
That’s when I finally saw how ting me go. Besides a number of
many pets she had: 11 cats and expletive-filled texts, I never heard
seven dogs! The memory is seared from the homeowner again.
into my brain and into my sinuses. The home eventually did sell,
I am definitely allergic to cats. for nowhere near my listing price.

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For more information on advertising opportunities,

FLORIDA
please contact: sales.realestate@wsj.com | 800.366.3975
 
NEW HAMPSHIRE



    
  


  
  
     
 
   

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M8 | Friday, December 30, 2016 THE WALL STREET JOURNAL.

MANSION

HIGH HOPES IN SCOTLAND’S LOWLANDS

BUILT TO LAST A classic townhouse, above, on India Street, one of the most prestigious streets in New Town, is on the market for offers over $2.76 million. The five-bedroom Georgian property mea-
sures 4,469 square feet and a two-bedroom apartment sits over the garage. Below left, a four-bedroom, three-bathroom apartment in Drummond Place is listed for offers over $1.1 million. The 4,034-
square-foot property features a sauna and wine cellar, and has a large private backyard. Below right, a view of the city from Calton Hill at the eastern end of Princes Street.

CLOCKWISE FROM TOP: KNIGHT FRANK; KIERAN DODDS FOR THE WALL STREET JOURNAL; STRUTT & PARKER

Continued from page M1 free to view. Then the property is

levels, said Andrew Riddell, asso- listed, usually at 5% to 10% below
ciate at Strutt & Parker. the valuation price, with the ex-
Edinburgh’s most desirable pectation that offers would exceed
city-center neighborhood is New that list price. Buyers register
Town. This is the historic heart of their interest in a property, and
the city, a picturesque network of the selling agent sets a closing
Georgian streets and squares, with date. The buyers make sealed-bid
some of the city’s best pubs, offers by this date, then the
shops, bars and restaurants. homeowner chooses the winner. that sell for more than £750,000, transaction costs, real-estate ex- tic buyers, including a burgeoning
Currently on the market is a As well as paying for their or about $925,000. The formula perts say prices will increase in community of tech entrepreneurs,
classic townhouse on India Street, property the winner will also have by which the LBTT is calculated is prime Edinburgh in the short to will be drawn to its sheer beauty
one of the most prestigious to pay a hefty tax. In April 2015, complex, but the purchase of a $1 medium term. This is partly be- and comfortable lifestyle.
streets in New Town for offers the Land and Buildings Transac- million property would carry a tax cause homes in the city center are “There are still a lot of ques-
over $2.76 million. The five-bed- tion Tax was introduced by the liability of around $67,500. in short supply—many owners tions over Brexit, but once those
room Georgian property measures Scottish government to replace For buyers looking for a second have simply decided to sit tight things are a little clearer I think
4,469 square feet, and has a the Stamp Duty, a buyers’ tax lev- home or investment property, an and ride out the uncertainties of there will be a lot of investment
walled backyard, plus a double ga- ied in England and Wales. extra 3% is added to the LBTT, in- recent year. in Edinburgh,” said Mr. Riddell.
rage with a self-contained two- The LBTT is a bone of conten- creasing the tax on that $1 million Mr. Fox says Edinburgh will “Companies which find London
bedroom apartment above it, ac- tion among agents, since it has in- property to nearly $100,000. also tempt investors with its value too expensive will relocate to Ed-
cording to the Knight Frank creased the tax burden on homes Despite these new, higher for money, while affluent domes- inburgh.”
listing.
Many of New Town’s town-
houses have been converted to
apartments, and a large two-bed-
room apartment in New Town Edinburgh Estates for Sale
would cost $500,000 to $600,000,
said James Whitson, director of
Edinburgh sales for Rettie estate
agents.
For buyers in need of a larger
home in New Town, Strutt &
Parker is listing a four-bedroom,
three-bathroom apartment in
Drummond Place for offers over
$1.1 million. The 4,034-square-foot
property features a sauna and
wine cellar, and has a large pri-
SOTHEBY’S INTERNATIONAL REALTY

vate backyard.
Buyers based in other European
capital cities will likely note how
reasonable these prices are by
STRUTT & PARKER

comparison. But despite Edin-

burgh’s relative affordability,
around 80% of Mr. Whitsun’s sales
are to local buyers.
The rest come from England
and beyond, or are returning ex- $7.37 million Offers over $2.4 million
pats. Craigcrook Castle Windmill House
Those few outsiders who do
buy in Edinburgh have to negoti- This 16th-century castle is only 3 miles northwest of Edinburgh’s city center. It This detached Georgian-style villa is located 1.7 miles west of the center of Ed-
ate a system that is unique to sits on 4.4 acres, and the property includes outbuildings and a gate house. The inburgh, in the Murrayfield neighborhood. The four-story mansion measures
Scotland. Before a home is listed, 6,701-square-foot castle has been used as offices in recent years, but has the 9,863 square feet and has 10 bedrooms. It was built in 1997 in period style in-
an independent surveyor draws up potential to be converted into a magnificent six-bedroom home. cluding cornice work, ceiling roses and parquet floors.
a valuation report that buyers are Agent: Sotheby’s International Realty Agent: Strutt & Parker