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 23563.36 À 6.13 0.03%
What’s
News
Business & Finance
T he Justice Department
is pressing for changes
to AT&T’s proposed deal for
Time Warner, raising the
prospect AT&T would have
to sell either Turner, which
includes CNN, or DirecTV. A1
 China’s Tencent is prov-
ing a welcome source of cap-
ital to fledgling American
companies, with Snap be-
ing the latest beneficiary. A1
 Federal prosecutors are
investigating Icahn’s former
role advising Trump and the
investor’s attempts to change
an environmental rule. B1
 An alleged operative for
Weinstein was identified as
the same woman who had
sought information from a
critic of insurer AmTrust. B1
 A former New York state
pension fund executive ac-
cused of taking bribes from
Wall Street salespeople
pleaded guilty to fraud. B1
 Equifax’s interim CEO
told lawmakers he wasn’t
sure if the firm was encrypt-
ing consumer data in the
wake of its data breach. B6
 Outcome Health fired
back at investors suing the
firm, saying their accusations
of fraud are baseless. B4
 Apple became the first
U.S. company to reach a mar-
ket value of $900 billion. B3
 U.S. stocks continued to
set records. The Dow rose
6.13 points to 23563.36. B12
 Fox’s revenue rose as
higher cable fees helped off-
set weakness at local TV sta-
tions and its film studio. B2
 Dior’s CEO plans to step
aside after 20 years running
the LVMH fashion brand. B6
World-Wide
 Republicans scrambled to
prevent a potential Demo-
cratic wave in next year’s mid-
term elections after a politi-
cal shellacking Tuesday fueled
by opposition to Trump. A1
 Outcomes of some of
Tuesday’s votes heartened
backers of gun curbs. A4
 Xi welcomed Trump with a
series of business deals, even
as the U.S. president pres-
sured China to curb finan-
cial ties with North Korea. A1
 House lawmakers pre-
pared changes to the GOP
tax bill to fill a revenue hole
of at least $74 billion. A3
 Trump told Democratic
senators that the Senate
version of the tax bill will
be more to their liking. A3
 Israel, moving to counter
Iran and its Lebanese ally
Hezbollah, is aligning poli-
cies with Saudi Arabia. A8
 Video of the Texas church
attack is said to show the
gunman methodically exe-
cuting his victims. A3
 The U.S. administration
tightened rules on travel to
Cuba and financial transac-
tions with the island. A6
 A Mexican deportee who
sued the Trump administra-
tion was arrested for ille-
gally re-entering the U.S. A6
 Researchers reported a
big advance in gene therapy,
creating new skin for a boy
with a severe disorder. A10
 China detained three
UCLA basketball players
for alleged shoplifting. A10
 The EU proposed extend-
ing its natural-gas regula-
tion to offshore pipelines. A8
CONTENTS
Business News B3,6-7
Crossword.............. A14
Heard on Street.. B13
Life & Arts....... A11-13
Management.......... B5
Markets............. B12-13
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * * THURSDAY, NOVEMBER 9, 2017 ~ VOL. CCLXX NO. 111 WSJ.com HHHH $4.00
NASDAQ 6789.12 À 0.3% STOXX 600 394.45 g 0.1% 10-YR. TREAS. g 5/32 , yield 2.325% OIL $56.81 g $0.39 GOLD $1,281.60 À $7.90 EURO $1.1596 YEN 113.87
U.S. Threatens to Derail AT&T Deal
Antitrust regulators
are pressing AT&T to
gest media deals ever, people
familiar with the matter said.
The Justice Department has
same corporate roof as satel-
lite broadcaster DirecTV and
more than 100 million wireless
In a statement Wednesday,
AT&T CEO Randall Stephenson
said, “Throughout this pro-
chief, Makan Delrahim, has
pledged that politics wouldn’t
play a role in enforcement de-
sell either DirecTV or raised the prospect that the users. cess, I have never offered to cisions.
telecom giant would have to AT&T and the Justice De- sell CNN and have no intention “The department is commit-
TV unit including CNN divest either the Turner televi- partment are far apart, and of doing so.” ted to carrying out its duties
sion unit, which includes CNN people involved in the discus- Rather than a major divest- in accordance with the laws
along with other cable chan- sions have differing views on ment, AT&T is preparing to and the facts,” a spokesman
By Keach Hagey,
Brent Kendall
nels, or the satellite DirecTV
business, the people said.
the exchange of proposals.
AT&T offered to sell the CNN
fight any potential legal chal-
lenge in court, arguing the op-
said, declining to comment
further on the investigation.
and Drew FitzGerald The two sides have engaged business, but the agency re- position is politically moti- The agency is laying the
in recent tense settlement dis- jected the idea, one person vated since there is no overlap Please see DEAL page A6
U.S. antitrust regulators are cussions to address the close to the negotiations said. between the two companies’
pressing for major changes to agency’s concerns about the AT&T denied it offered to sell business lines, some of the  Behind Disney’s Fox play: the
AT&T Inc.’s proposed takeover transaction, which would put the news network, which Pres- people said. rise of Netflix............................. B4
of Time Warner Inc., demands CNN, HBO and the Warner ident Donald Trump has criti- The Justice Department’s  Fox profit grows on cable-
that threaten one of the big- Bros. film studio under the cized as unfair to him. recently confirmed antitrust network fees.............................. B2
Republicans Take Stock After Election Losses
BY JANET HOOK
AND KRISTINA PETERSON Democrats matched or exceeded Hillary Clinton’s 2016 margin And in Virginia legislative races, voters
Republicans scrambled
in states electing governors Tuesday. shifted left compared with 2015.
Wednesday to prevent a poten- Virginia New Jersey Margin of victory, in percentage points*
tial Democratic wave in next 2016 president 5 pts. 14
2017 2015
year’s midterm elections after
2017 governor
a political shellacking Tuesday 9 14
fueled by opposition to Presi- Democrat win Republican win
dent Donald Trump. 40 30 20 10 10 20 30
Gubernatorial races the year before midterm elections have foretold
The results of elections from
Virginia to Washington state
the last three times control of the U.S. House changed hands.
produced Democratic victories Gubernatorial results and net change in Congressional seats the following year
up and down the ballot,
Year Virginia New Jersey U.S. House U.S. Senate
prompting both parties to take
fresh looks at their plans for
House and Senate campaigns 1989 D D 9 1
next year.
For Republicans in swing 1993 R R 52 8
districts, the failed campaign of
GOP gubernatorial candidate 1997 R R 5 unch.
Ed Gillespie in Virginia was a
reminder of the complex land-
scape ahead of them. Mr. Gil-
2001 D D 8 1
Races too
lespie tried to walk a line by close to
embracing Mr. Trump’s agenda 2005 D D 31 6 call
but not campaigning alongside
the GOP president. 2009 R R 63 6
He lost to Ralph Northam by
Please see VOTE page A4 2013 D R 13 9
Circles indicate
 Gerald F. Seib: Anti-Trump party control
coalition takes shape............ A4
2017 D D changed hands
 Efforts to flip statehouses
get a lift........................................ A4 *Only includes contests with both a Democrat and Republican running in each year.
 Results hearten backers of Sources: Dave Leip's Atlas of U.S. Presidential Elections; Associated Press; Virginia Dept. of Elections; Vital Statistics on Congress THE WALL STREET JOURNAL.
gun curbs..................................... A4
Business Contracts
Kick Off China Visit
BY EVA DOU performance and a dinner.
AND JEREMY PAGE Mr. Trump arrived in Beijing
from South Korea, where he
BEIJING—Xi Jinping wel- took direct aim at North Ko-
comed Donald Trump to China rean leader Kim Jong Un in a
with a series of business deals speech that both opened a path
and a private tour of the For- to negotiation and warned of
bidden City, seeking to im- the potential consequences of
press the U.S. president even Pyongyang’s nuclear-weapons
as he stepped up pressure on program.
Beijing to curb financial ties Mr. Trump also put Beijing
with North Korea. on notice ahead of his talks with
The deals, valued at an esti- Mr. Xi, again calling on China to
mated $9 billion, were de- do more to pressure Pyongyang
signed to set a positive tone to change course. China is by far
ANDREW HARNIK/ASSOCIATED PRESS
for Mr. Trump’s 1½-day visit. North Korea’s top trading part-
Hours before Mr. Trump ner, but is also the U.S.’s largest.
landed, China reported an al- “Why would China feel an
most $27 billion trade surplus obligation to help North Ko-
with the U.S. in October. rea?” Mr. Trump said in his 35-
On Wednesday afternoon, minute address to the South
the presidents and their wives Please see TRUMP page A9
toured the former imperial
palace off Beijing’s Tiananmen  Nations seek new Pacific
Chinese President Xi Jinping and President Donald Trump at a ceremony in Beijing on Thursday. Square before a Peking opera trade pact, minus the U.S....A9
T-Mobile’s CEO Has a Side Gig: Tencent
Hosting an Online Cooking Show
i i i
Invests in World’s First
“Self-Driving”
John Legere’s ‘Slow Cooker Sunday’ Fledgling
videos draw millions of viewers U.S. Firms Database
BY DREW FITZGERALD tive, Twitter troll and, on Sun- BY STEVEN RUSSOLILLO
days, celebrity chef. His AND WAYNE MA
T-Mobile US Inc. boss John weekly “Slow Cooker Sunday”
Legere flew to Tokyo last videos on Facebook and Twit- Tencent Holdings Ltd., the
weekend to salvage a merger ter Inc.’s Periscope attract a rapidly growing Chinese inter-
with Sprint Corp. but failed. cult following among T-Mobile
Then he hopped customers, employ-
net giant, is proving a wel-
come source of capital to
Oracle
on one flight Sun-
day morning to
ees and some view-
ers who are there
America’s fledgling companies,
with Snap Inc. the latest bene- Autonomous
Database
Los Angeles and just for the recipes, ficiary of its deep pockets.
another to Seattle, gathered from on- Tencent, one of the world’s
landing just in line cookbooks and most valuable technology com-
Middle Seat.......... A12 time to put on his employee sugges- panies and best known in
Opinion.............. A15-17
Sports....................... A14 cat apron and tions. Mr. Legere China for its WeChat messag-
Technology............... B4 start cooking. usually gets more ing app, recently purchased a No Human Labor – Half the Cost
U.S. News............. A2-7 “It’s the longest than a million view- 12% stake in Snap in the open
Weather................... A14
Sunday of my life, ers a week. market, becoming one of its No Human Error – 100x More Reliable
World News A8-10,18
but I made it!” he “Slow Cooker largest shareholders, Snap re-
said in a Facebook John Legere Sunday” is decid- vealed Wednesday.
> video, standing in edly low-fi. It’s usu- Meanwhile, in Hong Kong,
his kitchen with the ingredi- ally streamed from Mr. shares of a Tencent unit that
ents for Maine corn chowder. Legere’s apartment in Belle- operates an online library oracle.com/selfdrivingdb
“Holy shit, it’s Sunday! It’s vue, Wash., or New York with Please see STAKE page A10
been Sunday for a long time.” no special lighting or cameras Human labor refers to tuning, patching, updating, and maintenance of database.
Mr. Legere, 59 years old, while T-Mobile Executive Vice  Heard on the Street: Tencent Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
wears many hats: chief execu- Please see LEGERE page A10 finds surprise windfall........ B13
 A2 | Thursday, November 9, 2017
CAPITAL ACCOUNT | By Greg Ip
Trump Should Give Thanks for Solid Economy
In the year ulations and headwinds that
since Donald followed the U.S. financial cri-
Trump was sis in 2008 and Europe’s sov-
elected presi- ereign-debt crisis in 2012.
dent, the Central bankers responded
economy and with bond buying and zero in-
markets have been on a roll. terest rates.
Stocks have set one record af- That monetary medicine
ter another, unemployment circulated slowly because
has dropped sharply and the banks were focused on work-
U.S. enjoyed its strongest six ing through bad loans and
months of growth since 2014. complying with new rules
Mr. Trump thinks he rather than lending. The pro-
knows why: “The reason our cess was over in the U.S. and
stock market is so successful still under way in Europe
is because of me,” he declared when another shock hit in
this week. 2015: an oil-price collapse and
But Mr. Trump should be an abrupt slowing in China.
giving thanks, not taking
B M
credit. The entire global econ- y last year, most of
omy is picking up steam, and those shocks had re-
foreign stocks are outper- ceded. Oil recovered,
forming American ones. This especially after production
suggests the U.S.’s good for- cuts by OPEC and Russia
tune is due less to Mr. shortly after Mr. Trump’s
Trump’s presence than to a election. China reopened the
broader, global trend. Years of credit taps.
highly stimulative monetary Ethan Harris of Bank of
policies by central banks have America Merrill Lynch notes
finally overcome various post- that growth in China, the eu-
crisis headwinds. rozone and Japan this year
So Mr. Trump is a lucky has exceeded both econo-
man. But can he make it last? mists’ expectations and those
That will require translating countries’ long-term potential
what may be a short-lived up- growth rates.
swing into permanently faster The markets mirror this.
growth, and as the fight over Blue-chip shares are up 21%
U.S. tax cuts demonstrates, in the U.S. since Election Day
that is no easy task. last year, 22% in France, 28%
The disappointing pace of in Germany, 33% in Japan and
global growth over the past 26% in emerging markets.
decade reflects both struc- Of course, global growth
tural drags such as aging pop- and markets have always
Soldier Killed in Afghanistan Is Mourned
JOSE LUIS MAGANA/ASSOCIATED PRESS
SOLEMN MOMENT: The remains of Sgt. First Class Stephen B. Cribben, of Simi Valley, Calif., arrived Wednesday at Dover Air Force
Base in Delaware. The Pentagon said Sgt. Cribben died on Saturday from wounds sustained during an operation in Afghanistan.
BALL Watch is thrilled to announce its partnership
with Ducks Unlimited, world leader in wetlands and
waterfowl conservation. To commemorate the year DU
was established, we have produced a limited quantity
of 1937 Limited Edition Engineer Master II Sportsman
watches. RESERVE YOURS TODAY!
US Retail Price $1,999.
If you are a current Ducks Unlimited Member or join
Ducks Unlimited for $35 the price is $1,299.
  
U.S. NEWS
The U.S. Catches a Global Tailwind
Growth and stock prices in other major economies have outperformed the U.S. since last fall.
Major stock indexes
Change since Nov. 8, 2016
Nikkei 225 MSCI EM
S&P 500 FTSE 100
30%
U.S. presidential election
20
10
0 90
–10
2016 ’17
Sources: FactSet (stock indexes, dollar); Markit (PMI)
been linked, through trade
and investor attitudes. Some-
times that’s because the rest
of the world is hitching a ride
on a U.S. boom.
This time, though, there’s a
better case the reverse is
happening. Japanese and Eu-
ropean growth this year has
been driven heavily by con-
sumer spending and business
investment, not exports.
By contrast, U.S. exports
have grown faster than im-
ports, with that gap contrib-
uting on average a quarter of
a percentage point to growth
Democratic Wins Cloud ACA Repeal
BY STEPHANIE ARMOUR
AND KRISTINA PETERSON
Democratic wins in Tues-
day’s elections make it less
likely that Republicans, as
part of their tax package, will
seek to repeal the Affordable
Care Act’s requirement that
most people have health cov-
erage, according to congres-
sional aides.
Voters in Maine this week
decisively backed a referen-
dum to expand Medicaid un-
der the ACA, and exit polls
showed health care was a cen-
tral issue for Virginians who
elected Democrat Ralph
Northam as their state’s gov-
ernor.
Democrats say those re-
sults are a rebuke to the on-
going Republican goal of re-
pealing the ACA after
repeatedly failing to undo the
law earlier this year. Some
Republican leaders want to
push harder to overturn the
law in hopes of delivering on
a long-held promise to GOP
voters, while others say it
makes more sense to pause in
that effort.
Republicans had been dis-
cussing for weeks whether to
erase the ACA’s individual
Dollar
Performance since Jan. 1, 2015
CAC 40
105
100
95
U.S. presidential
election
85
2015 ’16 ’17
each quarter this year. The
dollar rallied after the elec-
tion and then slid as investors
upgraded prospects for the
rest of the world faster than
for the U.S. and reallocated
capital accordingly.
The stock market initially
soared after Mr. Trump’s elec-
tion as investors justifiably
anticipated looser regulation,
especially of banks, and lower
taxes. Yet with time, the
“Trump trade” has faded.
A basket of stocks tracked
by Goldman Sachs of the
highest-taxed companies out-
highlighted the prospect that
centrist Republicans would
balk if the tax package in-
cluded such a measure.
Inclusion of the mandate
repeal “would make it more
difficult to pass a tax relief
bill,” Sen. Susan Collins (R.,
Maine) said in a statement
Wednesday.
Democrats sought to press
their advantage, arguing that
Republicans would regret
pushing ahead with ACA re-
peal efforts given the Virginia
CORRECTIONS  AMPLIFICATIONS
The founders of Outcome
Health say that the company
didn’t move $225 million in
capital out of a subsidiary, con-
tradicting claims in an investor
lawsuit that Rishi Shah, co-
founder and CEO, took steps to
move funds. In some editions
Wednesday, a Business & Fi-
nance article about a lawsuit
filed by Outcome investors con-
tained language that implied
the founders had moved the
funds out of the company. The
article also incorrectly referred
to Outcome co-founder Shradha
Agarwal as Mr. Agarwal instead
THE WALL STREET JOURNAL.
Purchasing managers indexes
(manufacturing and services)
Eurozone U.S.
Japan China
60
55
50
45
U.S. presidential
election
40
2015 ’16 ’17
THE WALL STREET JOURNAL.
paced the overall market for
the first month after the elec-
tion and has since underper-
formed; it’s up 17% in the past
year, less than the total mar-
ket. Goldman says that’s be-
cause multinationals, which
tend to have the lowest tax
rates, also benefit most from
the lower dollar.
So why is the market up so
much? The economy “was
better than markets realized
this time last year,” says
Charles Himmelberg, Gold-
man’s co-chief markets econo-
mist. “It was a little bit of a
U.S. WATCH
FEDERAL RESERVE
Yellen Is Undecided
On Staying on Board
Federal Reserve Chairwoman
Janet Yellen hasn’t decided
whether to stay on the Fed
board when her term as chair-
woman ends next year, accord-
ing to Treasury Secretary Steven
Mnuchin.
President Donald Trump last
week said he was nominating
Fed governor Jerome Powell to
succeed Ms. Yellen at the end of
her four-year term as Fed chief,
which ends Feb. 3.
Ms. Yellen is also serving a
14-year term on the Fed’s board
of governors that doesn’t expire
until January 2024.
Mr. Mnuchin also said the ad-
ministration is moving ahead
with plans to fill several other
Fed vacancies.
A Fed spokeswoman declined
to comment. Ms. Yellen has pre-
viously declined to weigh in on
whether she would stay at the
Fed beyond her tenure as chair-
woman, though she acknowl-
edged in December that she had
the option to stay.
—Kate Davidson
outcome. “They’re going to
then suddenly try to jam in
health care...[when] the num-
ber one issue of those sup-
porting our candidate was
health care?” said Sen. Mark
Warner (D., Va.). “Bring it
on!”
GOP leaders haven’t
wanted to bog down the tax
bill with controversial health-
care provisions, but still
could end up including the
repeal if it generates revenue
needed to pay for tax cuts
counts of domestic assault on
his spouse and her child in
2012. Page One articles on
Tuesday and in some editions
Wednesday about Sunday’s
Texas church shootings as well
as a U.S. News article in some
editions Wednesday about Kel-
ley’s 2012 escape from a New
Mexico mental-health facility
incorrectly said the conviction
happened in 2013.
A late-September Republi-
can tax proposal called for
nearly doubling the basic stan-
dard deduction to $12,000 for
happy coincidence that mar-
kets started to fully price the
strength of that macro data
when Trump got elected.”
So Mr. Trump has been
lucky. Still, successful presi-
dents make their own luck,
which is why Mr. Trump last
week nominated Federal Re-
serve governor Jerome Powell
to take over from Janet Yellen
when her term as central
bank chairwoman ends in Feb-
ruary. Short of reappointing
Ms. Yellen, it was the closest
he could come to maintaining
her strategy of raising interest
rates gradually and cautiously.
r. Trump has prom-
ised to return the U.S.
to sustained 3%
growth through lighter regu-
lation and lower taxes, and
renegotiated trade pacts. His
officials were proud to note
the economy hit that annual-
ized rate in the second and
third quarters this year.
But that growth isn’t sus-
tainable. It required employ-
ers to add so many workers
that the jobless rate dropped
0.4 percentage point. Keep
that up and the labor market
is going to run out of people.
That would finally make
the Fed nervous enough
about inflationary pressure to
pick up the pace of interest-
rate increases, withdrawing
the medicine that got the cur-
rent global upswing started.
WISCONSIN
Development Board
Backs Foxconn Deal
Wisconsin’s efforts to bring a
Foxconn Technology Group plant
to the state surmounted a cru-
cial hurdle Wednesday, overcom-
ing recent concerns the deal
may be in trouble.
The board of the Wisconsin
Economic Development Corpora-
tion approved a contract that
would provide a $3 billion incen-
tive package to the Taiwanese
firm if it invests $10 billion to
create a 20-million square foot
campus in Racine County that
could ultimately employ up to
13,000 workers.
Wisconsin Republican Gov.
Scott Walker has argued that
the deal would transform the
state’s economy and is worth
the hefty tax breaks.
But some of his Democratic
opponents in the state legisla-
ture have questioned if the price
tag is too high. An independent
state fiscal analysis found that
taxpayers wouldn’t recoup their
investment until the 2042-43
fiscal year.
—Shayndi Raice
elsewhere. House Speaker
Paul Ryan (R., Wis.) said Re-
publicans remained commit-
ted to fulfilling President
Donald Trump’s agenda.
“We already made that
choice—we’re with Trump,”
Mr. Ryan said on a Fox News
radio show. “That’s a choice
we made at the beginning of
the year. We merged our agen-
das. We ran on a joint agenda
with Donald Trump.”
—Michelle Hackman
contributed to this article.
THE WALL STREET JOURNAL
(USPS 664-880)
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935)
(Western Edition ISSN 0193-2241)
Editorial and publication headquarters:
1211 Avenue of the Americas, New York, N.Y. 10036
Published daily except Sundays and general legal
holidays. Periodicals postage paid at
New York, N.Y., and other mailing offices.
Postmaster:
Send address changes to The Wall Street Journal,
200 Burnett Rd., Chicopee, MA 01020.
All Advertising published in The Wall Street Journal
is subject to the applicable rate card, copies of
which are available from the Advertising Services
Department, Dow Jones & Co. Inc., 1211 Avenue of
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.
Letters to the Editor:
Fax: 212-416-2891; email: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH
YOUR SUBSCRIPTION?
By web: customercenter.wsj.com;
By email: wsjsupport@wsj.com
 


 mandate, which they see as of Ms. Agarwal. individuals and $24,000 for
By phone: 1-800-JOURNAL (1-800-568-7625);
Or by live chat at wsj.com/livechat

all 727-896-4278 to order. the least popular element of married couples. A Page One ar-
the law often called Obama- Texas gunman Devin Patrick ticle on Sept. 28 about the pro- REPRINTS & LICENSING
care, as part of a tax overhaul Kelley was convicted in a gen- posal incorrectly said that the By email: customreprints@dowjones.com
By phone: 1-800-843-0008
they are now assembling. But eral court-martial on two deductions would be doubled.
http://www.ballwatch.com/campaign/DU/ that prospect dimmed GOT A TIP FOR US?
Wednesday, as House GOP Readers can alert The Wall Street Journal to any errors in news articles by SUBMIT IT AT WSJ.COM/TIPS
aides said the election results emailing wsjcontact@wsj.com or by calling 888-410-2667.
 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. * * * * * Thursday, November 9, 2017 | A3

U.S. NEWS

Video Shows
Shooter Acted
Methodically
Evidence supports
eyewitness accounts
of massacre in Texas;
Pence attends vigil
BY TAWNELL D. HOBBS
AND DEL QUENTIN WILBER
SUTHERLAND SPRINGS,
Texas—Video from inside the
Baptist church where a gun-
man massacred 26 people on
Sunday shows him methodi-
cally executing his victims, in-
cluding children, according to
a law-enforcement official.
The video, which is being
reviewed by investigators,
Bob” Holcombe, the unborn
baby of Crystal Holcombe.
Vice President Mike Pence
visited south Texas on Wednes-
day, where he attended a prayer
service and met with families of
victims and survivors.
“I offer the condolences of
the American people,” Mr.
Pence said at the vigil at a
school football stadium in Flo-
resville.
The vice president, joined
by his wife, Karen, told the au-
dience that President Donald
Trump asked them to come to
Texas “to tell all of you, we
are with you.”
Texas Gov. Greg Abbott at-
tended the prayer service
RICK WILKING/REUTERS

supports earlier eyewitness Wednesday night with the vice

accounts that the 26-year-old
gunman paced the aisles
shooting young and old con-
gregants at close range.
A law-enforcement official
on Wednesday described the
video as brutal to watch. The
content of the video was re-
ported earlier by the New York
Times.
First Baptist Church, where
the attack took place, rou-
tinely records videos of its
services and posts them on
YouTube.
Investigators also on
Wednesday released the offi-
cial list of the dead. Last on
the list is Carlin Brite “Billy
president.
Mr. Pence also visited
wounded victims at Brooke
Army Medical Center.
During his visit, Mr. Pence
met with law-enforcement of- South Texas pastors praying at the site of the First Baptist Church shooting in Sutherland Springs, Texas, on Wednesday. People are
ficials, who have collected a dealing with the shock of what happened in their small town—and at a church considered a vital part of the community.
substantial amount of evi-
dence, including hundreds of dent when they can’t make the the small town—and at a
shell casings from the church. trip. Mr. Trump is in Asia for a church considered a vital part
A law-enforcement official tour through the region. He of the community.
said Tuesday that they could tweeted earlier this week: “It’s a nice, quiet town,
finish processing the crime “May God be w/ the people of where everybody knows every-
scene as early as the following Sutherland Springs, Texas,” body,” said Margaret Vidal,
night. adding that he was monitoring whose aunt was shot in the
Presidents typically visit the situation from Japan. church. “Nothing happens
communities affected by mass People in Sutherland here.”
shootings and natural disas- Springs are still dealing with —Zusha Elinson
ters, or send their vice presi- the shock of what happened in contributed to this article.

House Tax Bill Faces Revenue Gap

BY RICHARD RUBIN
AND SIOBHAN HUGHES
WASHINGTON—House law-
makers on Wednesday pre-
pared changes to the GOP tax
bill to fill a revenue hole of at
least $74 billion, as Senate Re-
publicans were set to release
their own plan with significant
differences that the GOP will
eventually have to resolve to
complete its tax overhaul.
House Republicans plan to
make their changes Thursday
and push the bill toward a
vote by the full House as soon
as next week.
The Senate bill, expected to
be released Thursday, will
likely differ from the House
version by preserving the
medical-expense deduction,
fully repealing individual de-
ductions for state and local in-
come and property taxes, and
not repealing the estate tax.
“There are some areas
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
where we have a different ap- tional corporations proposed
proach,” said Sen. John Thune in the first version of the GOP
(R., S.D.) bill. The change removed 95%
The simultaneous negotia- of that key revenue-raising
tions in the House and Senate provision, leaving the bill out-
left the GOP tax bills in flux. side its budget target, accord-
Republicans remain confident ing to an estimate provided
they can deliver a sizable tax Tuesday by the Joint Commit-
tee on Taxation, the nonparti-
san scorekeeper for tax legis-
lation in Congress.
Republicans plan to The bill’s author, Rep. Kevin
push the bill toward a Brady (R., Texas), said it was
“not unusual” for amendments
vote by the full House to push a bill outside its reve-
as soon as next week. nue target. He said Republi-
cans are looking at options.
Those include repealing the
individual mandate to pur-
cut, but they have slim mar- chase health insurance.
gins in both chambers and are “We continue to weigh the
trying to squeeze their plans scores from the Joint Commit-
inside budgetary constraints. tee on Taxation and drive to-
The $74 billion gap in the ward that final amendment,”
House bill stems from an Mr. Brady told reporters late
amendment Republicans made Wednesday, offering no detail.
late Monday that would scale Rep. Vern Buchanan (R.,
back an excise tax on multina- Fla.) said Republicans were
talking about needed adjust-
ments. “They’ve got dials, and
they’re having to turn dials,”
he said.
Republicans also haven’t
said how they intend to ad-
dress concerns from life-insur-
ance companies and pass-
through businesses that pay
taxes through owners’ individ-
ual tax returns.
“We’re always looking to
improve on the small-business
side of things,” said Mr. Brady,
chairman of the House Ways
and Means Committee. “I’m
optimistic we’ll continue to
provide more relief.”
The committee plans to fin-
ish work on the bill Thursday.
Rep. Richard Neal (D.,
Mass.) and other Democrats
have pressed Mr. Brady to give
them time to review any major
changes in the works.
The problem, Mr. Neal said,
is that Republicans’ tax-cut
goals outpace their $1.5 tril-
lion budgetary limit, forcing
them to scramble when prob-
lems arise.
“The dilemma has been
clear. You can’t put a size 12
foot in a size 7 shoe,” he said.
“It appears to me as though
substantial change is coming
in their proposals.”
Democrats have been ham-
mering the GOP bill, arguing
that it benefits high-income
households and removes valu-
able deductions for items such
as medical expenses and stu-

dent loan interest.

The shape of a companion
Senate tax plan was in flux
Wednesday, and Republicans
on the tax-writing Finance
Committee held meetings late
into the day.

 Some munis’ tax-free status

is at risk...................................... B11
 Tax change unlikely to burden
The House Ways and Means Committee is hoping to finish work on the GOP tax bill Thursday. buyout companies................. B11

Trump Touts Senate Version of Proposal

BY ELI STOKOLS
WASHINGTON—President
Donald Trump moved to as-
suage centrist Democratic sen-
ators’ concerns about the
House Republican tax overhaul
by telling them the Senate
version will be more to their
liking, people familiar with the
matter said.
“You’re going to like it a
whole lot more,” said Mr.
Trump of the Senate version,
according to people who at-
tended a Tuesday gathering of
Democratic senators that the
GOP president addressed by
phone.
The comments risk compli-
cating Republican efforts to
present a united front on both ate bill would be the plan fully the House bill,” Mr. Cohn said,
the Senate and House versions backed by the administration, according to people in the
of the tax bill to keep it on Mr. Manchin said, “we haven’t room.
track. Publicly, Mr. Trump has seen it yet” to know. Asked about Mr. Cohn’s re-
praised the House plan, but Senate Republicans plan to mark, a White House official
Tuesday’s comments could release their own tax legisla- said that he was simply urging
fuel doubts among lawmakers tion Thursday and have said it senators who are concerned
about how wedded he is to would differ sharply from the about the House bill to focus
that version. House’s. on their own legislation. “It
Many GOP lawmakers in During the meeting Tues- was like: ‘Your bill doesn’t ex-
competitive districts already day, National Economic Coun- ist yet. Don’t get hung up on
have concerns about support- cil Director Gary Cohn echoed what you don’t like about their
ing the bill and could balk at Mr. Trump, these people said, bill and sink the entire pro-
being asked to cast a politi- leaving attendees with the im- cess,’ ” the official said.
cally risky vote on a plan that pression that the White House The official said the presi-
may never become law. isn’t as invested in the legisla- dent’s comment was “meant in
“I don’t think that’s the tion being considered this the same way” as Mr. Cohn’s
president’s bill,” said Sen. Joe week by the House Ways and comment and shouldn’t be
Manchin (D., W.Va.) about the Means Committee as it may be seen as a sign he doesn’t sup-
House tax bill, speaking after in the Senate tax package. port the House version of the
the meeting. Asked if the Sen- “Don’t get too hung up on bill.
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 | Thursday, November 9, 2017
Anti-Trump Coalition Takes Shape in Virginia
CAPITAL JOURNAL
By Gerald F. Seib
In their rousing election
victories in Virginia on Tues-
day, Democrats learned two
important things: They found
out what an anti-Trump coali-
tion looks like, and they dis-
covered it can
be a winning
one.
That coali-
tion combines
upper-scale
white voters,
millennials, minorities, subur-
ban women and single
women. Exit polling indicates
that those groups not only
went heavily for Democratic
victor Ralph Northam in the
governor’s race, but per-
formed better for him than
they did for Hillary Clinton in
the 2016 presidential election.
Election Buoys Efforts to Flip Statehouses
BY JOSHUA JAMERSON
WASHINGTON—The surpris-
ing ability of Democrats to pick
up Republican seats in the Vir-
ginia statehouse Tuesday gave
new life to a long-held party
goal: Clinching the power to
redraw state and U.S. legisla-
tive districts to be more favor-
able for Democratic candidates.
The state legislature and
Virginia’s newly elected Demo-
cratic governor, Ralph
Northam, will redraw the
boundaries for those districts
after the 2020 Census. Demo-
crats have been hoping to gain
the power to control a process
that Republicans used to favor
their own party after the 2010
Census.
The outcome of Tuesday’s
elections has bolstered a party
that has spent the last year
trying to regain its footing
since losing the White House
to President Donald Trump.
Progressive activists are now
targeting legislatures in states
such as Florida, Pennsylvania
and Minnesota, where they see
Republican state legislative
seats as vulnerable to the anti-
Trump sentiment that helped
energize voters in Virginia.
Others in the party warn
that a national wave will come
only by focusing on policies to
boost jobs and the economy,
rather than by expecting to
make electoral gains from Mr.
Trump’s weak job approval
rating, which is under 40% in
many surveys.
“What happened in Virginia
last night was historic, but it
VOTE
Continued from Page One
9 percentage points, the larg-
est victory margin for a Vir-
ginia Democratic gubernatorial
candidate since 1985. Mr.
Northam notched even wider
margins among women and
suburban voters who will be
central to key House battle-
ground districts.
“It was a referendum on the
president for many of them,”
said Rep. Ryan Costello, a Re-
publican who heard that mes-
sage even in local races in his
swing district in suburban Phil-
adelphia. “You had a lot more
people, a lot more people vote
Democrat than they ever had
before.”
Bryan Lanza, who worked
for Mr. Trump’s presidential
campaign, said in an interview
that the vote should be a wake-
up call for Republicans who
have not delivered on policy.
“Last night showed the vot-
ers are frustrated with the sta-
tus quo and inaction,” Mr.
Lanza said. “Republicans were
punished at the polls, and it’s
painful.”
House Republicans have
long said that passing a tax
overhaul was necessary for
them to retain their House ma-
jority, but after Tuesday’s loss
in Virginia some said that even
that might not be sufficient.
“This really is a sort of do-
or-die moment, in my view, in
terms of holding the majority,”
said Rep. Tom Cole (R., Okla.),
referring to the tax legislation.
“It doesn’t guarantee you suc-
That tide produced a stun-
ning nine-point victory for
Mr. Northam—almost twice
as large as the margin by
which Mrs. Clinton carried
the state—and it’s hard to in-
terpret it as anything other
than a reaction to President
Donald Trump. He is the big-
gest actor on every political
stage right now; almost ev-
erything happens in the
Trump context.
In fact, the best news for
Democrats may have been the
signs that their wave of en-
ergy carried beyond the top
race and down the ballot to
elections for the state House
of Delegates. Many thought
Mr. Northam could win at the
top of the ballot (though
most concluded only barely),
but nobody thought Demo-
crats would be on the verge
of turning the state legisla-
ture blue.
Still, there also are multi-
ple, less-obvious cautionary
notes for Democrats in Vir-
ginia, starting with the ten-
dency to over-interpret such
an off-off-year election.
Beyond that, this winning
coalition brought decisive
Virginia Democrats were energized by Ralph Northam’s gubernatorial win and results in other races.
wouldn’t have been enough to
swing Pennsylvania or Michi-
gan,” said Joseph Bandera-Du-
plantier, a co-founder of Flip-
pable, a progressive group
dedicated to state and local
races. “It’s more crucial now
than ever that we continue to
do that work to roll back ag-
gressive gerrymandering.”
In Virginia, Republicans
hold a 66-34 advantage in the
state House of Delegates. But
the 2016 presidential election
gave Democrats hope of mak-
ing gains. In 17 districts repre-
sented by Republican lawmak-
ers, Hillary Clinton won a
cess, but it’s a precondition for
success.”
Democrats were surprised
by the magnitude of their elec-
toral wins, which overshad-
owed for now intraparty dis-
agreements over how to
recover from their bitter loss
to Mr. Trump last year. Their
wins came in both marquee
races and more-obscure cor-
ners of the U.S. political map,
which underscored for them
the importance of fielding can-
didates even in long-shot dis-
tricts to catch whatever politi-
cal wave may form next year,
strategists said.
In Virginia, Democrats not
only swept the governor’s man-
sion and two other statewide
offices, they are tantalizingly
close to winning control of the
House of Delegates. Democrats
flipped at least 15 seats; if they
pick up one more of the yet-to-
be-settled races, Republicans
would lose their majority. The
last time Democrats ran the
chamber was 1999.
In New Jersey, a Democratic
victory in the gubernatorial
race means the party will con-
trol both chambers of the state
Legislature and the governor’s
mansion, beginning in January.
The election of one new
Democratic state senator in
Washington state flipped party
control of the chamber from
Republican to Democratic.
In Georgia, Democrats won
three state legislative special
elections, including two in dis-
tricts that were considered
safely GOP. That cost Republi-
cans their supermajority in the
state Senate.
Political analysts and opera-
P W L C 10 11
margins in blue parts of the
state—the Washington sub-
urbs, college towns and up-
per-scale coastal areas—but it
wasn’t enough to break into
the swath of red territory in
central and southern Virginia.
That part of the state contin-
ues to look and act a lot like
Trump country in the interior
of America.
Mrs. Clinton learned what
happens in a presidential race
when you run up victories,
even big ones, in areas Demo-
crats are strong but don’t
crack through in areas where
the party is weaker.
Moreover, Democratic suc-
cess in Virginia probably will
do more to paper over than
resolve the Democrats’ split
between establishment
groups and the party’s pro-
gressive wing. Liberals had
backed former Rep. Tom Per-
riello in the primary, were un-
der-enthused by Mr.
Northam, and thought he
should have stressed eco-
nomic issues more. They were
particularly unhappy when he
hedged his position support-
ing sanctuary cities that pro-
vide a haven for undocu-
majority of the vote last year.
Democrats need to flip the
same number—17 seats—to
win a majority. In Tuesday’s
elections, they took 14 seats
from Republicans, according to
the Associated Press, with five
races too close to call as of
Wednesday afternoon.
As few as a dozen votes
separated the candidates in
some races, leaving open the
door for recounts that could
drag on into early December.
But even if Democrats fail to
capture a majority, winning
the Virginia gubernatorial race
Tuesday strengthened their
Deeper Divide
How Virginia's vote shifted by party from 2013 gubernatorial
election to gubernatorial election Tuesday, in margin of victory by
percentage point.
More
Democratic
+10 +5 Same +5
Shift in Virginia vote by
party from 2016 presidential
election to Tuesday's
gubernatorial election
Source: Virginia Department of Elections
tives from both parties caution
against over reading the impli-
cations of one election for an-
other especially when the next
one is a year away.
Mr. Trump sought on Tues-
day to pre-empt suggestions
that the Virginia loss was a re-
flection on him, tweeting that
Mr. Gillespie “did not embrace
me or what I stand for.” The
president’s associates contin-
ued the damage control
Wednesday, with one calling
reporters in for a briefing to
say the result was “not about
the president.”
But the impact of the presi-
dent’s unpopularity was clear
12 H T G K B F A M 1 2 3 4
U.S. NEWS
mented aliens. In short, the
residual problem for Demo-
crats is that progressives
wanted a different kind of
candidate and a different kind
of campaign.
The good news for them,
of course, is that all signs
suggest that liberal activists
largely swallowed those mis-
givings and went to work,
Single women and
millennials fueled
Ralph Northam’s
decisive victory.
and to the polls, anyway.
We’ll see which side of the
coin—tensions at the begin-
ning or unity at the end—
proves to be the most impor-
tant dynamic elsewhere.
The underlying proposition
of the campaign of losing Re-
publican Ed Gillespie, mean-
while, was that he could win
by having, in the words of
populist political crusader
Stephen Bannon, “Trumpism
hand in redistricting after the
2020 census. With the state
Senate likely remaining under
Republican control, a victory
for Republican Ed Gillespie in
the governor’s race could have
given the GOP a virtual mo-
nopoly over drawing new dis-
trict lines.
“The races that we won last
night were redrawn to benefit
Republican incumbents,” Vir-
ginia House Democratic Leader
David Toscano said. “Now, with
us taking so many seats, [Re-
publicans] have to wonder
whether they can control the
legislature, and if we might do
More
Republican
+10
Charlottesville
Richmond
Roanoke
Lynchburg
Blacksburg
Charlottesville
Lynchburg
Richmond
Roanoke
Blacksburg
THE WALL STREET JOURNAL.
in the bitterly fought Virginia
race. According to exit polls,
57% of Virginia voters said they
disapproved of the job Mr.
Trump was doing. Of those vot-
ers, 87% voted for Mr.
Northam.
Asked what message they
were sending with their vote,
34% said they were voting to
express disapproval of the
president—twice as many as
said they were voting to ex-
press support for him.
“The level of intensity, the
level of antipathy to Trump is
so palpable,” said Rep. Gerry
Connolly (D., Va.). “The desire
of our base and independents
5 6 7 8 9 O I X X ** THE WALL STREET JOURNAL.
without Trump.” That is, that
Mr. Gillespie could embrace
Trump-like themes—the dan-
gers from violent immigrants,
the virtues of Confederate
monuments—without em-
bracing Mr. Trump himself
personally.
It didn’t work as hoped,
obviously. Why? For an an-
swer, look at how two partic-
ularly energized Democratic
groups performed Tuesday in
Virginia.
Single women, inspired by
Hillary Clinton and the
chance to elect the nation’s
first female president, were a
big part of the Clinton coali-
tion in 2016. But, one year af-
ter Mr. Trump became presi-
dent, they turned out to be an
even more-potent part of the
Ralph Northam coalition.
Exit polling by Edison Me-
dia Research for the Washing-
ton Post and other news or-
ganizations shows that
unmarried women went for
the Democrat by a stunning
77% to 22% margin. That is to
say, they went Democratic by
more than 3-to-1. The Demo-
cratic vote among single
women this time was 16 per-
to them what they did to us.”
Asked if Democrats would
draw up maps that over-
whelmingly favor their party,
Mr. Toscano replied: “I hope
not.” He said he favored form-
ing a nonpartisan committee
to handle redistricting, an idea
Mr. Northam supported as a
candidate.
John Whitbeck, the chair-
man of the Republican Party of
Virginia, declined a request for
comment.
Mr. Bandera-Duplantier said
the Democratic enthusiasm
shown in Virginia meant the
party now had hopes of find-
STEVE HELBER/ASSOCIATED PRESS
ing legislative majorities in
Pennsylvania, Michigan, Iowa,
Wisconsin, Florida and North
Carolina, which had seemed
out of reach. “Those are kind
of in play now,” he said.
Meanwhile, slim GOP ma-
jorities in states such as Maine
and Colorado mean those
states seem even more in
reach, he said.
Robby Mook, the campaign
manager in 2013 for Demo-
cratic Virginia Gov. Terry
McAuliffe and for Mrs. Clinton
in the 2016 presidential race,
said that Democrats should be
wary of trying to replicate the
results in Virginia. He credited
Mr. McAuliffe with helping to
create the conditions for a so-
called wave election by build-
ing a case for Democratic lead-
ership in the state.
“There was the rationale to
say, ‘If you elect a Democratic
legislature, you could continue
to do even more,’ ” Mr. Mook
said.
troubled by Trump is just red-
hot to do something.”
There is historical precedent
for the Virginia and New Jersey
gubernatorial races serving as
a bellwether for the first mid-
term election of a new presi-
Arlington
Alexandria dency. In 1994, 2006 and
2010—the last three times con-
trol of the House changed par-
ties—the midterm result was
foretold by the party that won
the Virginia and New Jersey
Newport
News gubernatorial races the year
Norfolk Va. Beach before.
Democrats need to flip 24
seats to take control of the
House. Key targets are the 23
Arlington Republican-held districts where
Alexandria Democratic presidential nomi-
nee Hillary Clinton beat Mr.
Trump in 2016. But the Demo-
cratic Congressional Campaign
Committee has said it aims to
Newport put 80 districts in play and has
News managed to recruit candidates
Norfolk Va. Beach in 75 of them so far.
“That strategy of building a
huge battlefield with great can-
didates, even in really tough
districts, is going to be cru-
cial,” said Tyler Law, the com-
mittee’s spokesman.
Jesse Hunt, a spokesman for
the National Republican Con-
gressional Committee, said that
GOP leaders will do their best
to arm incumbents for battle in
the face of political winds they
already knew were blowing
hard against them.
“I don’t think we needed
last night’s results to tell us
next year was going to be ex-
tremely competitive,” Mr.
Hunt said.
—Peter Nicholas
and Joshua Jamerson
contributed to this article.
centage points higher than
the vote they produced for
Mrs. Clinton in 2016.
There is little except the
arrival of a President Trump
to explain the difference. In
short, single women look an
awful lot like a constituency
that is newly energized.
Second, consider the per-
formance of millennials, a
core Democratic constituency,
on Tuesday. NextGen Amer-
ica, a liberal activist group,
chose nine precincts across
Virginia where millennials
make up a majority and mon-
itored them to determine en-
thusiasm among young vot-
ers.
In each precinct—most
around college campuses—
residents aged 18 to 40 made
up at least 60% of voters. In
all of them, voter turnout was
up over the totals seen in the
governor’s election four years
ago. In the area around Vir-
ginia Commonwealth Univer-
sity in Richmond, turnout
more than doubled.
Energy matters in politics.
And on Tuesday in Virginia,
at least, Democrats seemed to
capture it.
Results
Hearten
Backers of
Gun Curbs
BY NATALIE ANDREWS
WASHINGTON—Chris Hurst,
the boyfriend of a reporter who
was shot dead on live televi-
sion in 2015, beat a three-term
incumbent Virginia delegate
backed by the National Rifle
Association in a rural area.
First-time candidate Eliza-
beth Guzman defeated Scott
Lingamfelter, an eight-term
Virginia delegate and chairman
of the state assembly commit-
tee that shapes gun policy.
In Washington state, Manka
Dhingra, a state Senate candi-
date who campaigned on enact-
ing gun-safety measures, won
her race, helping Democrats
take control of the chamber.
Those outcomes in this
week’s elections represented
victories for Everytown for
Gun Safety, a gun-control ad-
vocacy group that invested
$2.2 million in Virginia races,
matching the NRA’s spending,
said John Feinblatt, president
of Everytown for Gun Safety.
The election was six weeks
after a mass shooting in Las
Vegas and days after another,
in Sutherland Springs, Texas.
A spokeswoman for the
NRA didn’t respond to a re-
quest for comment.
Gun policy has long been
considered a key issue driving
Republicans to the polls, and
defeating NRA-backed candi-
dates in rural areas has proven
to be a high hurdle for support-
ers of new firearms restrictions.
“The data is now telling us
that there is just as much in-
tensity on the anti-gun-vio-
lence side” as there is for
those who vote for pro-gun-
rights Republicans, said Sen.
Chris Murphy (D., Conn.).
Mr. Murphy has been an ad-
vocate of tougher gun-control
measures since the mass
shooting at Sandy Hook Ele-
mentary School in his home
state in 2012.
Republican lawmakers have
blocked measures that would
mandate universal background
checks ahead of firearm pur-
chases and limit the availabil-
ity of high-powered firearms.
A bipartisan measure that
would ban “bump stocks,” which
enable semiautomatic rifles to
mimic fully automatic weapons,
stalled in the House after the
NRA and GOP leaders advocated
instead for potential new safe-
guards instead of legislation.
Republicans in the Senate on
Tuesday, responding to Sunday’s
mass shooting at a Texas
church, pushed for legislation to
provide incentives for federal
agencies, including the military,
to submit criminal-conviction
records to the Federal Bureau of
Investigation and require the
military to report domestic-vio-
lence misdemeanors to the na-
tional background-check system.
The Air Force has acknowl-
edged it failed to submit to the
FBI the conviction record of the
man who killed 26 people in
the church, a move that would
likely have disqualified him
from possessing a weapon.
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. Thursday, November 9, 2017 | A5
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
A6 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

U.S. NEWS

Mexican Deportee Arrested ‘Dreamers’

BY ALICIA A. CALDWELL
Aren’t
Targets, Nielsen Says
LOS ANGELES—A Mexican BY LAURA MECKLER on the course of action she fa-
man who sued the Trump ad- vors for the Dreamers. About
ministration this year, alleging WASHINGTON—President 690,000 of them are now pro-
he had been unlawfully de- Donald Trump’s nominee to tected by the Deferred Action
ported, was arrested this week lead the Department of for Childhood Arrivals pro-
and charged with a felony for Homeland Security offered a gram, or DACA. Mr. Trump has
JUAN GASTELUM/NATIONAL IMMIGRATION LAW CENTER/ASSOCIATED PRESS

illegally re-entering the U.S. degree of assurance to Senate ordered an end to the pro-
Juan Manuel Montes Bo- Democrats critical of the ad- gram, deeming it unconstitu-
jorquez, 23 years old, was ar- ministration’s tough immigra- tional and challenging Con-
rested near Calexico, Calif., tion enforcement agenda dur- gress to enact legislation in its
along the Mexican border on ing a confirmation hearing place. The Dreamers’ protec-
Monday, according to federal Wednesday. tions begin expiring in March.
court records. Kirstjen Nielsen told mem- Sen. Kamala Harris (D., Ca-
Mr. Montes, who dropped bers of the Senate Homeland lif.) asked Ms. Nielsen if she
his lawsuit in October, will Security and Governmental Af- agrees that legislation should
likely be deported, and he fairs Committee she would be passed by the end of the
could face as long as two prioritize the arrest of undoc- year to replace the administra-
years in prison if found to umented immigrants who have tive protections.
have illegally re-entered the committed crimes, and said Ms. Nielsen didn’t reply di-
U.S. after initially being de- contact information about so- rectly but said, more generally,
ported earlier this year. He called Dreamers—young peo- “We owe it to them to find a
could also be barred from ple brought to the U.S. ille- permanent solution.”
coming back to the U.S. for gally as children—whose She said the Dreamers
years. protections from deportation wouldn’t be targets for depor-
The U.S. Border Patrol said are set to expire won’t be tation and that their personal
Mr. Montes was found about a Juan Manuel Montes Bojorquez, 23, was arrested and charged with illegally re-entering the U.S. shared routinely with immi- information would only be
mile north of the U.S.-Mex- gration enforcement officers. used for enforcement in “ex-
ico border in a scrub-covered February arrest and subse- and later was amended to in- aren’t involved in the criminal Ms. Nielsen also said she traordinarily limited circum-
stretch of desert. quent deportation. clude a challenge to his depor- case and couldn’t comment. doesn’t favor the construction stances” that involve public
The arresting agent wrote Mr. Montes was thought to tation. His lawyers asked that According to court records, of a wall along the entire safety threats. A spokesman
that Mr. Montes told officials be the first DACA recipient de- he be allowed to return to the Mr. Montes is being detained southern border, echoing re- for Ms. Harris said she was
he was planning to go to Sac- ported by the Trump adminis- U.S. while the case was pend- in the Imperial County cent statements by adminis- somewhat reassured by Ms.
ramento. tration. President Donald ing, and a federal judge in San jail, southeast of Los Angeles. tration officials and by Mr. Nielsen’s remarks on the
Mr. Montes sued the Trump Trump has made cracking Diego seemed amenable to the Federal court records don’t Trump himself, whose call for Dreamers.
administration in April, alleg- down on illegal immigration a request. list an attorney for Mr. Mon- a border-length barrier had If confirmed, Ms. Nielsen, 45
ing that Border Patrol agents priority of his administration. But the case was dropped tes. been a staple of his presiden- years old, would be the sixth
in Calexico arrested and de- In September the Trump in October at Mr. Montes’s re- Arrests at the Mexican bor- tial campaign. secretary of Homeland Security
ported him in February even administration announced quest. The National Immigra- der have plummeted since Mr. “There is no need for a wall and would enter the job with
though he was protected from plans to end the DACA pro- tion Law Center, which helped Trump took office. from sea to shining sea,” she by far the lowest profile.
deportation under the Obama- gram, which has protected represent Mr. Montes during As of the end of August, said, responding to questions Members of the committee
era Deferred Action for Child- from deportation hundreds of his civil case, said the “litiga- about 287,000 people were ar- from two Democrats on the didn’t say how they would
hood Arrivals program. thousands of young immi- tion has been a taxing experi- rested at the Mexican border panel. “Technology, as you vote, but it didn’t appear that
U.S. Homeland Security of- grants brought to the U.S. as ence” for Mr. Montes and he during the 2017 budget year, know, plays a key part and we her nomination, which needs
ficials said Mr. Montes re- children. decided to end the case and which ended in September. can’t forget it. There’s a lot we 51 yes votes in the Senate,
turned to Mexico voluntarily, Mr. Montes’s lawsuit ini- remain in Mexico. During the 2016 budget year, can do with technology to se- was in any jeopardy. A com-
which caused him to lose his tially sought public records The National Immigration agents made about 408,000 cure our border.” mittee vote is scheduled for
DACA privileges and led to the about the February incident Law Center said its lawyers arrests. Ms. Nielsen wasn’t specific Thursday.

Trump Administration Further Unwinds Cuba Opening

BY FELICIA SCHWARTZ be allowed to go to Cuba un-
AND LOUISE RADNOFSKY der a category that allows for
travel in support of the Cuban
WASHINGTON—The Trump people, but officials said trav-
administration continued to elers in that category will be
pare back rules intended to subject to stricter regulation.
normalize ties with Cuba, an- The tightening comes amid
nouncing regulations tighten- heightened tensions between
ing travel and financial trans- Washington and Havana, as of-
actions by Americans. ficials investigate health prob-
President Donald Trump lems suffered by at least 24
had said in June he would re- American officials and family
verse steps taken by predeces- members at the U.S. Embassy
sor Barack Obama to relax a in Havana, with symptoms in-
decades-old U.S. embargo cluding dizziness, hearing loss,
against the Castro regime, as and mild traumatic brain injury.
Mr. Trump had pledged to do U.S. officials have blamed the
on the campaign trail. symptoms on an undefined at-
The regulatory changes un- tack, possibly one using a sonic
veiled by the Treasury, State device.
and Commerce departments Officials said Wednesday
are to take effect Thursday. that the rule changes weren’t
While they will have an impact connected to the continuing
YAMIL LAGE/AGENCE FRANCE-PRESSE/GETTY IMAGES

on the ability of individuals to investigation into the illnesses

travel to Cuba and curtail in Havana. Mr. Trump an-
some business interactions, nounced the policy shift in
much of Mr. Obama’s program June, before his administra-
will remain in place. tion disclosed the illnesses in
“It wasn’t a full reversal, August.
but it’s not great news for “We have strengthened our
American travelers and, as a Cuba policies to channel eco-
resulting byproduct, this hurts nomic activity away from the
the Cuban private sector,” said Cuban military and to encour-
James Williams, president of age the government to move
pro-normalization group En- toward greater political and
gage Cuba. economic freedom for the Cu-
He added that the shift will The U.S. is steering American activity away from firms tied to the Cuban military. Above, a street in Havana on Wednesday. ban people,” Treasury Secre-
make it harder for American tary Steven Mnuchin said.
businesses to operate in Cuba. tion and be accompanied by a modation had been booked be- Similarly, commercial and posted a list of entities con- The U.S.-Cuban opening un-
“It doesn’t fully close the door, representative of a sponsoring fore June, because the Trump business transactions ar- nected with the Cuban mili- der Mr. Obama allowed several
but it’s a step backwards.” organization that is also sub- administration eliminated a ranged before the regulations tary, and Americans would be American companies to begin
Many Americans who want ject to U.S. jurisdiction. category of travel created un- are published on Thursday will forbidden from engaging in making inroads into travel,
to visit Cuba will have to do so Most individual travel will der the Obama administration be allowed to continue, admin- some financial transactions in telecommunications and other
by traveling through tour op- no longer be allowed, except in that essentially allowed for istration officials said. the future with them. sectors of the Cuban economy,
erators subject to U.S. jurisdic- cases where a flight or accom- tourist travel. But the administration Individual travelers still will including several hotel deals.

DEAL The review reached a new

level in recent weeks with the
involvement of Mr. Delrahim,
who received Senate confirma-
Continued from Page One tion in late September. Mr.
groundwork for a possible law- Trump nominated Mr. Delra-
suit to stop the deal while at him in April, but Senate delays
the same time negotiating in his confirmation left him on
with company executives, The the sidelines while others in
Wall Street Journal reported the Justice Department scruti-
last week. nized the transaction.
A top AT&T executive had Mr. Delrahim is a critic of
warned for the first time ear- so-called behavioral remedies
lier Wednesday that the com- to address concerns about a
pany was unsure about the merger, preferring that compa-
timing of the takeover, which nies be required to sell off as-
was valued at $85 billion when sets instead, a view he sig-
it was struck last year. naled last month in a public
“The timing of the closing appearance at New York Uni-
of the deal is now uncertain,” versity. Antitrust observers
John Stephens, AT&T’s chief took notice of the remarks and
financial officer, said Wednes- have wondered whether his
day at a Wells Fargo confer- views would make it harder
ence in New York. Just a few for AT&T to offer concessions
weeks ago, he told investors that the companies and the
the company still expected the Justice Department would
transaction to close later this each find acceptable.
year. During his presidential cam-
Shares of Time Warner fell paign, Mr. Trump had attacked
6% to $88.50 on Wednesday, the proposed deal. “AT&T is
while AT&T shares rose 1% to buying Time Warner, and thus
$33.44. AT&T shares have CNN, a deal we will not ap-
fallen sharply in recent weeks prove in my administration be-
and Time Warner shares are cause it’s too much concentra-
trading at a wide discount to tion of power in the hands of
the implied offer price, as in- too few,” he said. Mr. Trump
vestors worry about the deal. has since avoided talking pub-
Growing Rift
Time Warner shares are starting to trade further below AT&T's offer
price, as investors grow more skittish about the deal closing.
0%
Difference between Time Warner’s share price
and AT&T’s offer price
–5
–10
–15
–20
2016 ’17
Source: FactSet
licly about the transaction but
frequently complained on
Twitter about the way CNN
has reported on him. CNN
stood by its reporting.
AT&T executives previously
pledged not to sell CNN or in-
terfere with its editorial oper-
ations. The Dallas-based tele-
com giant is looking for the
deal to give it a bigger foray
into advertising and new
growth markets, as it strug-
Wednesday
Time Warner shares
closed 13.3% below
offer price
THE WALL STREET JOURNAL.
gles with increased competi-
tion in the mature wireless
business and shrinking pay-TV
market, especially in the Di-
recTV satellite service it
bought in 2015.
For Time Warner, the deal
with AT&T is the culmination
of years of moves by Chief Ex-
ecutive Jeff Bewkes, who spun
off underperforming assets,
leaving a media and entertain-
ment-focused firm that was
more appealing to an acquirer.
Mr. Bewkes has argued that
uniting content and distribu-
tion will help meet viewers’
ket,” AT&T said last week. “We
see no reason in the law or the
facts why this transaction
should be an exception.”
demands for more flexibility in Several competitors includ-
the TV packages they buy and ing the Lions Gate Entertain-
where they view content, with ment Corp.’s premium pro-
more video being watched on gramming service Starz, and
mobile devices. satellite broadcaster Dish Net-
As the media industry work Corp. have raised con-
evolves, even giant companies cerns about the deal, people
are looking to adapt. Rival familiar with the matter said.
Walt Disney Co. recently held If the Justice Department
talks to buy studios and other were to sue to block the deal,
entertainment assets from 21st that wouldn’t be the end of the
Century Fox Inc., seeking to matter unless the companies
gain more leverage in negotia- abandoned their plans. The de-
tions with distributors or to partment would have to pres-
have more content for its own ent its case to a federal judge
direct to consumer services. and prove that the deal would
Wall Street Journal parent likely harm competition.
company News Corp and 21st Such court battles remain
Century Fox share common rare, as the government and
ownership. merging parties often find
AT&T argues the deal would ways to settle their differ-
help consumers by making ences. There were, however,
film and TV more affordable. several major merger trials
AT&T points to its current during the Obama era of anti-
moves to lower prices for trust enforcement, including
video content, such as offering two recent cases in which the
discounts for DirecTV Now, an Justice Department won rul-
online pay-TV service. ings against a pair of major
“Vertical mergers like this proposed deals in the health
one have always been ap- insurance industry.
proved because they benefit —Joe Flint
consumers without removing and Thomas Gryta
any competitors from the mar- contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Thursday, November 9, 2017 | A7

U.S. NEWS

Many College Students Leave Puerto Rico

Young people finding it would take up to 58 students.
And the University of Flor-
spots at mainland ida is offering free online
universities add to a courses in the spring and sum-
mer to students who attended
growing exodus University of Puerto Rico or a
handful of private colleges on
BY MELISSA KORN Puerto Rico and the U.S. Virgin
Islands. It says it can accom-
Hundreds of Puerto Rican modate 1,000 students and as
students have resettled on col- of Friday had received more
lege campuses across the than 200 applications.
mainland U.S. in recent Between 17,250 and 32,721
weeks—and many more are adults ages 18 to 24 are ex-
considering leaving the island pected to leave Puerto Rico in
territory in the spring—grate- the year after Maria, according
ful for the opportunity to re- to the Center for Puerto Rican
sume their studies in the wake Studies at City University of
of Hurricane Maria. New York’s Hunter College,
But some worry the stu- compared with the 9,726 an-
dents won’t return to an island nual average from the prior
that is already suffering an ex- three years. The island has
odus of young people and their been in economic distress for
talents. years, with the local govern-
The University of Puerto ment struggling to make pay-
Rico, like the commonwealth ments on a staggering debt
government that provides load and residents looking for
roughly two-thirds of its an- better financial futures else-
nual operating budget, was in where.

JOSE JIMENEZ TIRADO/GETTY IMAGES

financial crisis when Hurricane
Maria hit seven weeks ago.
Last spring, student-led budget
protests shut down some cam-
puses for months, and eight
campuses were placed on pro-
bation by the university’s ac-
creditor in part because of fi-
nancial concerns.
The system is digesting an
18.8% cut to appropriations for
the current school year. Enroll-
ment was down by about 4% to
59,450 this fall. Then the storm
came.
The last of the system’s 11
campuses reopened on Mon-
day, despite damaged buildings
and spotty electricity.
Early tallies show that
about 95% of students returned
to class. But hundreds have
withdrawn from the largest
campuses and concern about
the loss of talent is growing as
more schools join the likes of
Brown University, Tulane Uni-
versity and the State Univer-
sity of New York in bringing
Puerto Rican students to their
campuses free of charge or at
in-state tuition rates.
More than 860 students dis-
placed by the storm in Puerto
Rico are now attending one of
University of Puerto Rico students helped with the storm cleanup on a campus in San Juan last month.
28 public colleges in Florida,
according to the Florida De-
partment of Education, though
schools haven’t finished re-
viewing the prior enrollment
records of those students.
“If I was a young person, I
can totally get wanting to go
study abroad or do an ex-
change program,” said Cathe-
rine Mazak, an English profes-
sor at the University of Puerto
Rico Mayagüez. “On the other
hand, so many people have
left.”
Brown now has about 30
University of Puerto Rico stu-
dents on campus. Central Con-
necticut State University has 21,
paying in-state tuition and earn-
ing nine credits in a condensed,
eight-week semester. More than
a dozen law students are at
Florida State University and
Hurricane Leaves
A Lasting Mark
Though the University of
Puerto Rico is holding classes,
some buildings’ roofs were dam-
aged and research equipment ru-
ined. Generators power some fa-
cilities. The library collection
at Mayagüez is closed because
of water damage to books.
Interim President Darrel Hill-
man Barrera, a professor at the
dental school, said the damage
totaled $119 million, about $100
Touro Law Center in New York.
More students are expected
to find spots at schools on the
mainland next semester.
million of which will be covered
by insurance. He said he is in
talks with Federal Emergency
Management Agency to cover
the rest.
Dr. Hillman said he is asking
the island’s central government
and its fiscal oversight board to
be more flexible on a mandate
that the system cut $500 million
from its budget over the next
five years, given the circum-
stances. The university has until
February to revise its fiscal plan
for the oversight board, in light
of the storm.
“It’s going to be a very differ-
Tulane has received about
500 applications so far for an
offer to host Puerto Rican stu-
dents in the spring, said Presi-
“What Maria has done is ag-
gravate a trend that was al-
ready in effect,” said Edwin
Meléndez, the center’s director.
“Families are in need of em-
ployment, and the economy has
pretty much collapsed.”
The mainland universities
say they intend to offer tempo-
rary help, not poach talent. “We
are strongly discouraging any
of these students from transfer-
ent University of Puerto Rico” af- ring,” Tulane’s Mr. Fitts said.
ter the storm, said Deepak Brown Provost Richard
Lamba-Nieves, research director Locke agreed, but said his
at the Center for a New Econ- school can’t bar students from
omy, a nonpartisan think tank in applying to transfer.
San Juan. Wilfredo García González,
Mr. Lamba-Nieves, who 30 years old, is in the final
teaches a graduate course on lo- year of his undergraduate com-
cal economic development at the puter-science degree at Poly-
University of Puerto technic University of Puerto
Rico Río Piedras, photocopied Rico in San Juan, and said if he
readings for students without wasn’t so close to finishing he
computer access, but wondered would leave now.
if that was enough. “It is very difficult to study
“Can I expect my students to since almost the whole country
do their weekly reading with lan- is without electric service and
terns and candle light?” he asked. without connection to wireless
internet,” he said. “My expec-
tation is to be able to finish my
dent Mike Fitts, and expects to degree and then move to the
enroll at least 50 once it reviews United States with my wife to
applicants for academic qualifi- find a good job and a better
cations. Cornell University said quality of life.”

THAN YOU EVER

THOUGHT POSSIBLE
Our members charter to major destinations worldwide and
enjoy never-before-seen low pricing, guaranteed availability,
zero upfront commitment, and year-round service reliability.

NEW YORK SOUTH FLORIDA FROM $1,990

NEW YORK CHICAGO FROM $3,980
NEW YORK LOS ANGELES FROM $7,950
AND MANY OTHER POPULAR ROUTES

CALL US TODAY Set it free at Drexel University. Our unique

+1 (866) 980-2758 academic design and cooperative education
program turn students into professionals
with real experience at the world’s leading
corporate, research and cultural institutions.

USE PROMO CODE JS17 Ordinary students take tests. At Drexel, you
will test the world.

drexel.edu/AmbitionCantWait
Purchase of membership is required. JetSmarter offers a number of programs including private charters, for
which JetSmarter acts solely as your agent in arranging the flight, and Public Charters, for which JetSmarter
acts as principal in buying and reselling the air transportation. JetSmarter does not own or operate any
aircraft. All flights are performed by FAA-licensed and DOT-registered air carriers. Prices displayed above are
for a select number of seats on a custom shared flight. Additional restrictions may apply.
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 | Thursday, November 9, 2017
Israel, Saudi Arabia Share Common Foes
Policies align as they
both strive to isolate
Iran and its Lebanese
ally Hezbollah
BY RORY JONES
TEL AVIV—Israel is moving
to counter Iran and its Leba-
nese ally Hezbollah with as-
sertive diplomacy, aligning its
policies with onetime foe
Saudi Arabia and signaling a
shift in the region’s power pol-
itics as the war in neighboring
Syria winds down.
Israel’s foreign ministry told
its envoys abroad in a cable on
Sunday to stress to host gov-
ernments that the resignation
of Lebanese Prime Minister
Saad Hariri shows that Iran and
Hezbollah, the dominant politi-
cal and military force in Leba-
non, control the country and
threaten Middle East stability.
“Hariri’s resignation proves
that the international argument
that Hezbollah’s inclusion in
the government is a source for
stability is basically wrong,”
the cable said, according to a
report by Israel’s Channel 10
broadcaster that Israeli offi-
cials confirmed. “The events in
Lebanon…require increased
pressure on Iran and Hezbollah
on a range of issues.”
Mr. Hariri, who is also the
political leader of Lebanon’s
Sunni Muslim population, re-
signed while in Sunni-led
Saudi Arabia on Saturday.
He criticized Iran and Hez-
bollah, which are both Shiite
powers, for fomenting violence.
The cable illustrates Israel’s
desire to make common cause,
unofficially, with Saudi Arabia
in its efforts to isolate their
mutual enemies even though
the two countries don’t have
diplomatic relations.
Israel has warned for
months about the role that Iran
and Hezbollah are playing in
Political Upheaval Poses Risk to Lebanon’s Finances
Sluggish Growth
Lebanon's GDP,
change from previous year
3%
Estimates
2 of capital that threatens to up-
1 Lebanon built its economy
0 The country in recent years has
2012 ’13 ’14 ’15 ’16
Source: International Monetary Fund
THE WALL STREET JOURNAL.
Israel says the resignation of Lebanon’s Prime Minister Saad Hariri, right, shows Iran’s threat to stability.
Riyadh Freezes
Former Crown
Prince’s Accounts
RIYADH—Saudi authorities
have frozen the bank accounts
of the kingdom’s former crown
prince, Mohammed bin Nayef,
the latest royal targeted in a
corruption crackdown carried out
by a leadership seeking to con-
Syria, where they have backed
Syrian President Bashar al-
Assad’s forces in that country’s
war and sought to fill a vacuum
left by the crumbling of Islamic
State’s self-declared caliphate.
Prime Minister Benjamin
Netanyahu has said he won’t
allow Israel’s enemies to es-
Investors worried about an
escalating crisis between Ri-
yadh and Beirut are selling Leb-
anese debt and equity, a flight
By Nikhil Lohade in
Dubai and Nazih
Osseiran in Beirut
end the precarious finances of
a country struggling with slow
growth and high debt.
on tourism and trade but those
businesses have suffered from
decades of political instability.
pitched itself as a technology
’17
and financial hub in its search
for new engines of growth.
But the sudden resignation
WORLD NEWS
solidate power.
Dozens of royals, current and
former officials, and prominent
businessmen were detained over
the weekend when the govern-
ment launched a corruption inves-
tigation. Those detained face alle-
gations that include money
laundering, bribery and procure-
ment fraud.
As of Wednesday, around
1,800 bank accounts had been
frozen in connection with the
tablish a permanent military
presence on Israel’s northern
border and is ready to take ac-
tion to avert that.
Hezbollah’s militia is already
stronger than the Lebanese
army. Now, Israel and Saudi
Arabia both fear Hezbollah is
gaining influence over the
over the weekend of Prime Min-
ister Saad Hariri has thrown a
wrench into the country’s poli-
tics and triggered worries
about it becoming another
front in the proxy war between
Sunni Riyadh and Shiite Tehran.
In his resignation, Saudi-backed
Mr. Hariri blamed Iran and its
Lebanese ally Hezbollah for de-
stabilizing the Middle East.
“People are afraid so there
is a demand on the dollar, fi-
nancial assets are being driven
down,” said a senior executive
in one of Lebanon’s top invest-
ment banks. “With all of this
talk of sanctions and wars,
there is an environment of un-
certainty and investors don’t
like uncertainty.”
In Beirut’s residential
EU Floats Rules for Offshore Pipelines
BY EMRE PEKER
BRUSSELS—The European
Union proposed to extend its
natural-gas regulations to off-
shore pipelines, marking the
latest effort to derail an energy
link between Russia and Ger-
many that is fueling tensions
within the bloc.
The European Commission,
the bloc’s executive, unveiled
an amendment Wednesday to
energy rules after a months-
long struggle to intervene in
the controversial Nord Stream
2 pipeline project.
The Baltic Sea link would en-
able Russia’s state-owned PAO
Gazprom to double its natural-
gas transit via Germany to Eu-
rope. That would strengthen
Moscow’s hand to bypass tran-
sit routes through Ukraine
without losing its dominant gas
market share in the EU, which
stood at 42% last year.
While the effort to regulate
the pipeline may enjoy support
in the European Parliament, it
is likely to face resistance from
some EU governments such as
Germany. The EU’s executive
wants to enact the amendment
by the end of 2018, before Nord
Stream 2 is operational.
Some EU members, led by
Poland, along with the U.S., ve-
hemently oppose the project,
arguing it poses security risks
and undermines the West’s ef-
forts to support Kiev in its con-
flict with Russia. In August, the
U.S. adopted a Russia sanctions
law that empowers the White
probe, according to people familiar
with the matter. Among them are
accounts linked to the former
crown prince and to some of his
relatives, the people said. The
prince was until recently one of
the most influential members of
the ruling family.
King Salman removed him
from the position of crown
prince in June and replaced him
with his own son, Prince Mo-
hammed bin Salman, who has
army and has built an arsenal
of weapons many times greater
than when Israeli forces last
fought the group, in 2006.
The U.S., Israel and Saudi
Arabia consider Hezbollah a
terrorist organization.
“The Hariri resignation rep-
resents in a very authentic way
neighborhood of Ras al Nabehl,
shopkeeper Wissam Abo-Abdo
shrugged off the economic fall-
out of a deepening crisis.
“They say this all the time,
every time something happens
they say the lira [Lebanese
pound] will collapse but that
never happened,” Mr. Abo-
Abdo said. “The foreigners al-
ways worry and run away, but
we’ve been through this before
and will go through this again.”
The economy has weath-
ered a number of significant
shocks over the years, includ-
ing the 1975-1990 civil war
that tore the country apart.
But a confrontation between
the two Middle East powers
via proxies on its soil will only
result in greater political in-
Pipes are loaded for stacking at the Nord Stream 2 facility on Ruegen Island in Sassnitz, Germany.
House to impose measures
against Nord Stream 2.
“Such an important pipeline
cannot be built in a legal void
or cannot be built just accord-
ing to Russian law,” European
Commission Vice President Ma-
ros Sefcovic said.
The EU proposal patches
regulatory shortcomings by
clarifying the framework appli-
cable to all gas pipelines to and
from third parties, he added.
EU officials said external pipe-
lines typically abide by the
bloc’s core principles, mostly
through international agree-
ments.
Nord Stream 2 AG is a
wholly owned subsidiary of
Gazprom that is also backed by
European energy firms. The
* *** THE WALL STREET JOURNAL.
state of war with the kingdom.
Riyadh has said it now plans to
isolate Lebanon, as it has
sought to do with its Gulf
neighbor, Qatar. Saudi Arabia,
the United Arab Emirates, Bah-
rain and Egypt in June cut dip-
lomatic ties with Qatar and
have since refused to trade with
the country, alleging it supports
Islamist and terror groups. Qa-
tar denies the allegations.
A Saudi-led coalition is also
fighting in neighboring Yemen
against Houthi rebels that Ri-
yadh sees as proxies of Iran.
DALATI AND NOHRA/AGENCE FRANCE-PRESSE/GETTY IMAGES
Saudi Arabia said it had inter-
cepted a missile fired by the
rebels on Saturday east of the
main Riyadh airport, and said
the missile attack could be con-
sidered an Iranian act of war.
Iran has long denied supply-
ing weapons to the Houthis, but
President Hassan Rouhani on
Wednesday defended the reb-
els’ missile attack. Saudi Arabia
was carrying out bombings in
Yemen regularly, he said, so it
should expect a response.
The White House on
Wednesday backed Saudi Ara-
bia’s criticism of Iran.
Despite tension with Iran
risen to a position of unrivaled and Hezbollah, Israeli officials
power since his father as- have said that neither side
sumed the throne nearly three currently wants a war.
years ago. Representatives for Israel has benefited from
the government didn’t respond more than a decade of relative
to requests for comment. calm on its northern border
The government is hoping while Iran and Hezbollah lost
to confiscate assets worth as thousands of fighters in the
much as $800 billion through Syrian war.
the investigation, according to Both sides also understand
people familiar with the matter. the cost of a conflict. An Israeli
—Summer Said and invasion of Lebanon in 1982
Margherita Stancati during the civil war there
helped spawn Hezbollah, which
then fought against Israeli
what’s happening in the Middle forces until they withdrew in
East,” Yoav Galant, construction 2000.
minister and member of Israel’s Israel estimates Hezbollah
security cabinet, said in an in- has more than 100,000 rockets
terview. “Iran is the danger.” and missiles in Lebanon that
Saudi Arabia this week said could heavily damage Israeli in-
Hezbollah’s dominance over the frastructure in a conflict.
Lebanese government effec- —Asa Fitch in Dubai
tively puts the country in a contributed to this article.
stability and further disrupt tackling high public debt.
its economy, analysts say. Lebanon relies heavily on
Lebanon’s unity govern- tourism revenue, portfolio in-
ment—a volatile mix of Sunni vestments and deposits, the
and Shia Muslims as well as bulk of which originate in the
Christians—was formed about neighboring Gulf countries,
a year ago after a nearly three- mostly from the large number
year political stalemate that of Lebanese living abroad, an-
had weighed on its economy. alysts say. These inflows have
Mr. Hariri was named prime helped boost the country’s for-
minister after a deal that saw eign exchange coffers, allow-
Hezbollah ally Michel Aoun, a ing it to service its debt obli-
Christian, elected as president. gations and maintain its
His resignation has yet to be currency peg to the U.S. dollar.
accepted by the president. If Saudi Arabia moves to
The International Monetary isolate Lebanon, those invest-
Fund has noted Lebanon’s po- ments and deposits will dry
litical progress in recent up, investors worry, forcing
months, but said there was an the government to dip into its
urgent need to boost growth, reserves to keep the Lebanese
in part by taking steps to im- economy running and, eventu-
prove the business climate and ally, drop its currency peg.
CARSTEN KOALL/GETTY IMAGES
Switzerland-based firm says it PLC, Uniper SE and Wintershall
is operating in full compliance Holding GmbH. Nord Stream 2
with EU laws and doesn’t need also has enjoyed strong support
an additional pact to realize the from the German government,
project. with Chancellor Angela Merkel
“This legislative proposal repeatedly saying the pipeline
seems to be a far-reaching is a commercial project.
change to the scope of applica- Amid political backlash over
tion of the EU’s energy laws,” the pipeline, the EU’s executive
said Sebastian Sass, Nord initially sought legal arguments
Stream 2’s representative to against Nord Stream 2. Faced
the EU. with competing opinions, the
The first Nord Stream pipe- commission asked the bloc’s
line, which has the capacity to governments for a mandate to
transit 55 billion cubic meters negotiate terms for the Russia-
of gas annually, started opera- Germany pipeline.
tions without any international With the prospects of the re-
agreements in November 2011. quest to draw up a legal frame-
Gazprom’s second project at- work through talks with Mos-
tracted more than $5 billion in cow looking unlikely, EU
long-term financing from Engie officials turned to a regulatory
SA, OMV AG, Royal Dutch Shell update.
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.
Nations TRUMP
Seek New
Pacific
Trade Pact
BY BEN OTTO
DANANG, Vietnam—Almost
10 months after President
Donald Trump pulled the U.S.
out of a sweeping Pacific
trade pact, the 11 countries
left behind are pushing for-
ward for an agreement with-
out Washington on the side-
lines of the Pacific Rim’s
biggest annual economic sum-
mit.
Led by Japan, trade negoti-
ators are meeting in this sea-
side town ahead of the Asia-
Pacific Economic Cooperation
summit, seeking a revised ver-
sion of the Trans-Pacific Part-
nership by suspending clauses
that the U.S. had backed for
years in negotiations under
former President Barack
Obama.
Paulina Nazal, Chile’s vice
minister of trade and TPP
chief, said on Wednesday that
the remaining countries hoped
to have a deal enter into force
next year. A Japanese foreign
ministry spokesman said on
Tuesday that the group hoped
to reach an “agreement in
principle” this week.
A new deal would bring to-
gether Japan, Canada, Austra-
lia, Mexico and a host of
smaller nations with a com-
bined GDP of more than $10
trillion.
It is a far cry from what the
pact would have been with the
U.S., but negotiators and trade
experts say the deal would
still wield strategic signifi-
cance and that by putting
some clauses on hold, they are
leaving the door open for the
U.S. to join later.
“We would like the U.S. to
join in the near future,” Ms.
Nazal said. “The new adminis-
tration has to know a little bit
more about the agreement,
has to make their own evalua-
tion [and see] why 11 econo-
mies are so engaged.”
Follow the markets in a whole new way.
From individual companies and industry sectors to asset values and
percentage change, experience the live U.S. stock market in augmented
reality. Available now in the AR/VR section of the WSJ iPhone app.
DOWNLOAD NOW
© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6157
* *
Continued from Page One
Korean National Assembly.
A senior White House official
told reporters en route to Bei-
jing that Mr. Trump would raise
those concerns directly with Mr.
Xi. There were still financial
links between the countries that
shouldn’t exist under United Na-
tions sanctions, the official said.
“We’re going to work
closely with the Chinese to
identify that activity and end
it,” the official said.
A Chinese Foreign Ministry
official said Beijing is faith-
fully abiding by U.N. sanctions
and will put an end to any vio-
lations it finds.
The White House official
also said Mr. Trump would
raise “severe imbalances in
the U.S.-China economic rela-
tionship,” including a “grossly
unlevel playing field.”
Among the deals announced
by U.S. Commerce Secretary
Wilbur Ross in Beijing were
agreements by General Electric
Co., DowDuPont Inc. and
Smithfield Foods Inc. with Chi-
nese counterparts. Mr. Ross
said more contracts between
U.S. and Chinese companies
would be unveiled on Thursday.
“Today’s signings are good
examples of how we can pro-
ductively build up our bilateral
trade,” Mr. Ross said.
The skew toward export con-
tracts in the deals reflects the
Trump administration’s difficult
progress on more fundamental
China trade issues, such as bar-
riers to entry for U.S. compa-
nies to key Chinese sectors.
“Achieving fair and recipro-
cal treatment for the compa-
Philippines’ President to Ask China About Sea Access
BY JAKE MAXWELL WATTS
Philippine President Rodrigo
Duterte said he would ask
China about navigation in dis-
puted waters of the South
China Sea during a trade sum-
mit this week, hours after his
defense minister said the coun-
try had scrapped a construc-
tion project in the area follow-
ing a complaint from Beijing.
The New WSJ iPhone App
WORLD NEWS
President Xi Jinping, right, greeted the president and first lady at Beijing’s Forbidden City on Wednesday.
nies is a shared objective,” Mr.
Ross said.
Mr. Xi, who last month was
granted political powers com-
parable to those once held by
Chairman Mao, is unlikely to
make major concessions on
trade without securing greater
access to the U.S. market,
some analysts and diplomats
said. China appears focused on
trying to flatter Mr. Trump
with hospitality and deals that
could play well with his politi-
cal base while doing little to
reduce trade tensions.
Economists said the deals
signed in Beijing won’t notice-
ably reduce the trade gap be-
tween the two countries. While
China’s trade surplus with the
U.S. narrowed somewhat in
October, to $26.62 billion from
$28.08 billion in September,
according to official figures, it
was the fifth straight monthly
surplus over $25 billion.
Louis Kuijs, an economist at
Since Mr. Duterte took of-
fice last year, the Philippines
has played down South China
Sea territorial disputes while
building closer diplomatic and
economic ties with China. But
Mr. Duterte also has faced
pressure at home to raise the
issue in public forums.
Mr. Duterte heads the Asso-
ciation of Southeast Asian Na-
tions this year. He left
’00 ’05
Growing Gap
U.S. trade balance with China,
in billions
Source: U.S. Census Bureau
Oxford Economics, estimates
the two countries’ trade gap
will widen to nearly $370 bil-
lion this year, from the $347
billion difference in 2016, ac-
cording to U.S. figures.
Some members of the U.S.
Wednesday for a summit in
Vietnam, which will be fol-
lowed by a gathering in Ma-
nila, where the region’s 10
countries and China are ex-
pected to announce progress
on negotiations for a long-
awaited code of conduct for
maritime behavior.
Phililppine Defense Secre-
tary Delfin Lorenzana de-
scribed a face-off with Beijing
Thursday, November 9, 2017 | A9
gional director of the U.S. Soy-
bean Export Council, said his
group was warned by China’s
agriculture and commerce
ministries in September.
“In both those meetings, the
Chinese government officials
said it would be really unfortu-
nate if there was some kind of
trade disruption,” he said. “Be-
cause soybeans, being so impor-
tant, would probably be a com-
modity that would be targeted.”
Among the deals signed on
Wednesday was a letter of in-
JONATHAN ERNST/REUTERS
tent to ship what executives
with the council said are “bil-
lions of dollars” of American-
grown soybeans to China. A
separate deal on soybeans was
expected to be signed on
Thursday by Archer Daniels
Midland Co. and China’s state-
owned Cofco Corp.
Executives in other sectors
’10 ’15 also said they hoped the U.S.
$0 administration wouldn’t esca-
late the trade tensions.
“We would prefer to see the
rhetoric be less strong,” said
–100 Tad Walker, chief executive of
Partner Reinsurance, on the
sidelines of the Beijing event.
His company has been waiting
–200 since 2015 on a license to op-
erate in China.
Many of the deals were al-
ready in the pipeline. The U.S.
–300 Embassy in Beijing in August
emailed American companies to
request submission of deals for
the trade mission, according to
THE WALL STREET JOURNAL. a copy of the email reviewed by
The Wall Street Journal.
Deals involving Qualcomm
trade delegation said they fear Inc., Boeing Co., Goldman Sachs
Chinese retaliation if the Trump Group Inc., Ford Motor Co.,
administration, which is inves- General Motors Co. and other
tigating China trade, follows U.S. companies are scheduled
through with threats to punish to be announced on Thursday,
Beijing over its trade practices. according to an itinerary re-
Paul Burke, North Asia re- viewed by the Journal.
a couple of months earlier Wednesday at a business con-
over the Philippines’ place- ference in Manila.
ment of structures on a dis- Several Southeast Asian
puted island feature in the countries, including the Philip-
contested Spratly Islands. pines and Vietnam, have com-
“We tried to put some peting claims with Beijing in
structures on one of the sand- the South China Sea. China
bars near our island, and the claims almost the entire re-
Chinese reacted. And so the source-rich strategic waterway
president came to know about as its own territory and has
this and he said, ‘Let’s pull built and militarized several
out,’ ” Mr. Lorenzana said islands to assert its presence.
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 | Thursday, November 9, 2017
UCLA Athletes Are Held in China New Skin for Boy
Three UCLA basketball
players, including high-profile
freshman LiAngelo Ball, were
detained in China for alleged
shoplifting, a person familiar
with the matter said.
By Andrew Beaton in
New York, James T.
Areddy in Shanghai
ASSOCIATED PRESS (3)
and Liza Lin in Beijing
The Bruins, ranked No. 21,
are in China to begin their col-
lege basketball season Satur-
day in Shanghai against Geor-
gia Tech. Mr. Ball is the
younger brother of Lonzo Ball,
who played for UCLA last year
and whose father, LaVar Ball,
has attracted attention for his
attempts to market his sons.
The other two players de-
tained were Cody Riley and
Jalen Hill, this person said.
“We are aware of a situa-
tion involving UCLA student-
athletes in Hangzhou, China,”
UCLA said. “The university is
cooperating fully with local
authorities on this matter, and
we have no further comment
at this time.”
Speaking from a hotel room
that the three are sharing in
Hangzhou, Mr. Riley said, “We
are not taking questions right
now.”
Details on the alleged shop-
lifting were unclear, though
ESPN reported that the inci-
dent occurred at a Louis Vuit-
ton store. A spokeswoman for
the luxury brand said by email:
“There is an investigation going
on at the moment and we are
not able to further comment.”
Hangzhou police have been
involved in an investigation
that began on Monday and in-
cluded the questioning of
three players at a station
house, but they, along with a
team staff member, are in their
hotel in the city as evidence is
being gathered, a person in the
STAKE
Continued from Page One
soared in an initial public of-
fering Wednesday that gave
the company, China Literature
Ltd., a market value of around
$12 billion. And Thursday, So-
gou, a search-engine company
in which Tencent owns a 44%
stake, is expected to start trad-
ing in New York, in a deal that
could value it at as much as $5
billion, or about 70 times its
past earnings.
“Companies like Tencent
are seen as unstoppable,” said
Joshua Crabb, head of Asian
equities at Old Mutual Global
Investors.
Tencent, an early pre-IPO
backer of Snap, acquired
roughly 146 million of its
shares in the public market,
Snap said in a filing Wednes-
day. The purchase adds to an
investment Tencent made in
Snap in 2013 during a fund-
raising round before the com-
pany’s initial public offering of
stock. Tencent’s current total
position in Snap wasn’t clear.
Snap’s announcement of the
investment came on the heels
of its report of disappointing fi-
nancial results for the third
straight quarter, sending its
shares plunging. The revelation
of Tencent’s investment did lit-
tle to cushion investors’ disap-
pointment with the Los Angeles
social-media company. Snap’s
LEGERE
Continued from Page One
President David Carey or one
of the CEO’s daughters holds a
smartphone to film the show.
“I know he’s using it as a
marketing tool, but it’s also
clear he likes to cook,” says
Susan Freeberg, 54, a Bellevue
homemaker who got hooked
on Mr. Legere’s videos in 2015
after her son interned at T-
Mobile. “It’s a fun and helpful,
quick show for me to watch
over my Sunday coffee.”
Mr. Legere says his culinary
roots reach back to his up-
bringing in Fitchburg, Mass.,
where his father once typed
up a list of recipes that be-
came known as “Pa’s Cook
Book.” The CEO says his skills
have gotten much sharper
since he first streamed his
dinner preparations in 2015.
“It was a total embarrass-
ment. The camera was side-
ways, but it got a lot of inter-
est,” he says. “So I decided to
do it consistently.”
From left, Jalen Hill, Cody Riley and LiAngelo Ball were detained in Hangzhou for alleged shoplifting.
news department of the local
Public Security Bureau said.
She said the three aren’t for-
mally under arrest. “We didn’t
limit their personal freedom.”
Three Georgia Tech players
were questioned by local au-
thorities at their hotel, a Geor-
gia Tech spokesman said, and
it was determined they “were
not involved in the activities
being investigated.” Those
players have resumed their ac-
Among the three
basketball players is a
younger brother of the
Lakers’ Lonzo Ball.
tivities with the team.
Speaking in Beijing, a Chi-
nese Foreign Ministry spokes-
woman, without confirming
details on the matter, said
“China will handle this case in
accordance with the law and
ensure the legitimate rights
and interests of the people in-
volved.”
In response to questions, a
U.S. State Department official
said by email: “We are aware
of reports of three U.S. citi-
shares on Wednesday lost 15%
after several analysts cut their
price targets for the stock.
Founded almost two decades
ago, Tencent stands with e-com-
merce titan Alibaba Group Hold-
ing Ltd. and search giant Baidu
Inc. as three of China’s biggest
internet companies. They have
diversified beyond their core
businesses in recent years, plac-
ing big bets on online video-
streaming services and other en-
tertainment plays.
Tencent is the largest video-
game publisher in the world by
revenue but is best known in
China for its WeChat and QQ
messaging and mobile-payment
apps, which are installed on al-
most every PC and smartphone
there. Tencent said in an Au-
gust filing that WeChat had
combined monthly active users
of 962.8 million as of June 30,
up 19% from a year ago.
Tencent in a statement
Thursday said it and Snap could
work together in areas such as
mobile games.
Tencent’s shares have more
than doubled this year as reve-
nue and profit have swelled.
Tencent registered $122 billion
in revenue through the first six
months of the year, up more
than 60% from the first half of
2016. For the full year analysts
expect $274 billion in revenue.
By 2020, that projection is ex-
pected to more than double,
according to FactSet.
That has helped make Ten-
cent one of the biggest compa-
Mr. Legere recently told
CNBC that his cooking show
“is worth billions.” He has
more than 4.6 million follow-
ers on Twitter, another point
of pride, and Mr. Legere
streams some of his fitness
workouts, like his Peloton cy-
cling class, also on Sundays.
In the past five years, Mr.
Legere has turned T-Mobile
from an also-ran into the
third-largest wireless provider
by subscribers, behind Verizon
and AT&T Inc. He is a telecom
veteran, though he portrays
himself as a long-haired, foul-
mouthed renegade, wearing
custom-made T-Mobile shirts,
pants, socks and sneakers.
Mr. Legere joined T-Mobile
after two decades at AT&T and
one decade leading scandal-
plagued fiber-optic network
operator Global Crossing Ltd.
out of bankruptcy court.
He rarely misses a Sunday
in the kitchen, even though
leading T-Mobile, which had
nearly $30 billion in revenue
in the first nine months of
2017, takes Mr. Legere to
meetings on three continents.
WORLD NEWS
zens arrested in China. We
stand ready to provide con-
sular assistance for U.S. citi-
zens. Due to privacy consider-
ations we have no further
comments.”
A representative of the
Hyatt Regency Hangzhou hotel
said the UCLA team had
stayed there and three players
were detained by local police.
She said she had no further in-
formation.
UCLA and Georgia Tech
were guests of Hangzhou-
based Alibaba Group Holding
Ltd. and its billionaire co-
founder, who recently bought
into the Brooklyn Nets profes-
sional basketball team.
The fact that the three
players appear to have stayed
behind in Hangzhou, even as
the rest of the group went on
to Shanghai, raised the possi-
bility that Chinese authorities
have limited their ability to
travel. Though if they were al-
lowed to remain at their hotel,
that indicates they aren’t for-
mally under arrest.
Chinese authorities often
say little publicly about an in-
vestigation—especially when
foreigners are involved—while
it is proceeding. Temporary
detention without charges is
common.
FROM PAGE ONE
Upward Mobility
Shares of Tencent, one of China’s internet giants, have more than doubled this year as revenue
and net income have swelled.
Revenue and net income, in billions
$25 billion
20
15
10
5
0 0
2007 ’08 ’09 ’10
Market capitalization
$726 $545.9
billion
Alphabet Amazon
Sources: S&P Capital IQ; FactSet (shares, market cap)
nies in the world, with a mar-
ket capitalization of around
$475 billion. If it were listed in
the U.S., Tencent would be the
sixth-largest company by mar-
ket value, according to FactSet.
But while its WeChat busi-
ness remains largely limited to
China, Tencent over the past
few years has lifted its interna-
T-Mobile’s John Legere rarely misses a Sunday in the kitchen.
He kept cooking through
months of fruitless merger
talks with Sprint.
Anthony Doria, 30, a spe-
cial-education teacher who
says he used to work at T-Mo-
bile, has watched “every sin-
gle” video by his old boss and
“made probably every one of
his meals.” Mr. Doria’s favor-
ite: jalapeño corn chowder.
A few of the CEO’s segues
to T-Mobile go over the heads
of slow-cooking buffs. “T-Mo-
bile cleaned up, like I’m gonna
LaVar Ball didn’t respond to
messages left at his Shanghai
hotel room.
UCLA and Georgia Tech are
in China as part of an agree-
ment with Alibaba, which
since 2015 has sponsored an
annual regular-season Pa-
cific-12 Conference basketball
game in Shanghai.
Alibaba, which has been ex-
panding into entertainment
and other content, is set to
hold its biggest shopping day
of the year on Saturday, an
event that is widely known as
Singles’ Day. An event at Ali-
baba’s headquarters in Hang-
zhou this week that included
the basketball players coin-
cided with the company’s mar-
keting blitz for Singles’ Day.
During that event in Hang-
zhou, Alibaba co-founder Joe
Tsai, the new Brooklyn Nets
investor, shot hoops with some
of the visiting collegiate stars.
Alibaba referred questions
on the incident in Hangzhou to
UCLA.
The two teams, who made a
visit to Shanghai Disneyland
on Wednesday as part of the
tour, will still go ahead with
their game on Saturday, a
Pac-12 spokesman said.
—Kersten Zhang in Beijing
contributed to this article.
Revenue Net income
’11 ’12 ’13 ’14 ’15 ’16
$521.8 $475.1
Facebook Alibaba
tional profile with several big
deals, including acquisitions of
the game developer Epic Games
Inc. and minority stakes in elec-
tric-vehicle maker Tesla Inc.
and videogame company Activi-
sion Blizzard Inc.
In a tweet March 28, Tesla
Chief Executive Elon Musk said
he was “glad to have Tencent as
T-MOBILE
have to here, in the auction for
low-band spectrum,” he said
while gesturing to his counter
and wearing gorilla slippers.
His constant online pres-
ence prompted T-Mobile law-
yers to tell investors long ago
that Mr. Legere uses his Face-
book, Twitter and Periscope
accounts “as means for per-
sonal communications and ob-
servations” and “for comply-
ing with its disclosure
obligations under Regulation
FD.” Such boilerplate language
* ****
Marks Advance
In Gene Therapy
BY AMY DOCKSER MARCUS
In a significant advance in
organ regeneration and gene
therapy, researchers have cre-
ated a new, healthy skin that
covers almost the entire body
of a 7-year-old boy with a life-
threatening genetic disorder
associated with skin blistering.
Twenty-one months after
the procedure, the new skin
remains functional and
doesn’t blister or require
ointment or medication, ac-
cording to the team of scien-
tists and doctors from Aus-
tria, Germany and Italy who
described the case in a paper
in the journal Nature.
The child in the study has
junctional epidermolysis
bullosa (JEB), part of a family
of rare, often lethal, skin-blis-
tering diseases. Epidermolysis
bullosa affects around one in
every 20,000 births in the
U.S.; JEB is a severe form of
the disease, often leading to
death in early childhood.
Epidermolysis bullosa is
caused by mutations in the
genes that produce proteins
essential to holding the skin’s
layers together. In patients
with the condition, the slight-
est contact can cause blisters,
excruciating pain and open
wounds that don’t heal. There
is no cure.
In the Nature study, scien-
tists took a piece of tissue
about the size of a postage
stamp from an unaffected
part of the boy’s skin and
grew cells in the lab. They
then used a deactivated retro-
virus to insert a correct copy
of the defective gene into the
Share price
400 Hong Kong dollars
300
200
100
1 HK dollar = $0.1281
’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17
$469.8
$83.7
Tencent Baidu
THE WALL STREET JOURNAL.
an investor and advisor to Tesla.”
Tencent has invested in
more than 40 tech startups in
the U.S. since 2011, joining
fundraising rounds valued at
$3.5 billion, the Journal re-
ported, excluding investments
in public companies. Recently,
it led a $10 million investment
round in Academia.edu, a San
helps companies ward off
shareholder lawsuits.
Mr. Legere’s videos usually
last about 15 minutes. Com-
ments pour in while he is
cooking. Some critics suggest
their own recipes or poke
holes in the ones Mr. Legere’s
staff has chosen for him.
“It was traditionally a tech-
nique that wasn’t considered
culinary,” says Andrew
Schloss, author of “The Art of
the Slow Cooker,” a cookbook
often doled out as a prize to
Mr. Legere’s fans. Mr. Schloss
says his cookbook includes
only about 70 recipes to avoid
foods “ruined by overcooking.”
While meeting with law-
makers last year, Mr. Legere
mentioned his cooking hobby
to Sen. Steve Daines (R.,
Mont.), who had a mule deer
trophy decorating his office.
Mr. Daines later shipped some
deer sausage to the CEO.
“We gave him a recipe,” Mr.
Daines says. He hasn’t seen
Mr. Legere make something
out of it on “Slow Cooker Sun-
day,” “but my understanding
is it’s kind of in the queue,”
THE WALL STREET JOURNAL.
patient’s skin cells and grew
sheets of new skin.
In three separate opera-
tions at the end of 2015 and
the beginning of 2016, they
transplanted the genetically
modified skin onto the boy’s
limbs, flanks and back. Over
time, the skin regenerated to
cover approximately 80% of
the boy’s epidermis.
Other patients with the
condition have been treated
with genetically modified
skin, but this case is unusual.
“We had never treated that
amount of skin,” says Michele
De Luca of the University of
Modena and Reggio Emilia in
Modena, Italy, and senior au-
thor of the Nature paper.
Paul Knoepfler, a professor
in the department of cell biol-
ogy and human anatomy in
the School of Medicine at the
University of California, Da-
vis, said doctors will need to
closely monitor the patient
for years, particularly be-
cause the virus used to de-
liver the correct gene to the
cell could cause other health
problems.
Gene therapy is viewed as
a promising area for treating
epidermolysis bullosa. Last
year, scientists at Stanford
University School of Medicine
reported they grafted geneti-
cally modified skin on open
wounds in four adult patients
with a different form of the
disease.
The grafts helped improve
wound healing. Abeona Thera-
peutics Inc. is collaborating
with Stanford to open a new
trial next year that will include
patients ages 13 and older.
Francisco-based platform for
scientists and academics to
publish and review papers on-
line, and it disclosed a $3 mil-
lion investment in Innovega
Inc., of Bellevue, Wash., which
is building an augmented real-
ity device into a contact lens.
People close to Tencent
have said its investment strat-
egy is driven by a desire to
stay current on the latest ideas
and products out of the U.S.
tech sector.
Snap’s relationship with Ten-
cent stretches back to 2013. Ten-
cent first invested in Snap when
it was still a small startup oper-
ating out of a house on the
boardwalk of Venice Beach.
When the Snapchat app was
first shown to Tencent’s execu-
tive team, Tencent’s founder,
Pony Ma, was bewildered as to
why it was a hit, according to
people who attended the meet-
ing. Mr. Ma joked that he
didn’t understand young peo-
ple, the people said. Nonethe-
less, Tencent later purchased a
small stake in Snapchat.
Snap Chief Executive Evan
Spiegel said at a conference in
2013 that he looked to Tencent
as a “role model.”
Tencent executives began dis-
cussing raising the company’s
stake in Snap in September, after
Snap’s shares touched a series of
lows in August, the person famil-
iar with the matter said.
—Saumya Vaishampayan
and Georgia Wells
contributed to this article.
the lawmaker says.
Jeremy Dilley’s internship
at T-Mobile hit a high note
when the company accepted
his submission for a special
Friday edition of Mr. Legere’s
cooking show. The North Caro-
linian joined Mr. Legere in
front of a crowd of T-Mobile
interns and helped him cook
Mr. Dilley’s own version of a
Southern-style brisket. The in-
gredients were measured and
ready when he got there.
“They had nicer quality
stuff than what I’m used to us-
ing,” says Mr. Dilley. “The
brisket was a nice, big size.”
They somehow forgot to eat
it. An assistant texted Mr. Dil-
ley the next day “and said it’s
still down there. John said you
could have it.”
Mr. Dilley went back to get
the brisket and shared it with
some fellow T-Mobile interns.
“It turned out great,” he says.
Mr. Legere says future
plans for “Slow Cooker Sun-
day” could even include a
cookbook. “I’ve got more than
enough recipes to outdo Tom
Brady for sure,” he says.
 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.
GREATER NEW YORK
City GOP Says It Needs a Reboot
BY MARA GAY
AND ZOLAN KANNO-YOUNGS
New York City Mayor Bill de
Blasio had won a second term,
and the mood at Republican
challenger Nicole Malliotakis’s
election headquarters quickly
turned to despair. “Boo!” one
man yelled when Mr. de Blasio
was pronounced the winner on
NY1, a local news station.
“Whole world upside down,”
said Ed Mullins, president of the
Sergeants Benevolent Associa-
tion, a police union. Before long,
Ms. Malliotakis, an Assembly-
woman, took the stage to Tom
Petty’s “I Won’t Back Down,”
before conceding.
While Republicans nation-
wide are taking stock after high-
profile wins by Democrats in
Virginia and New Jersey, the
mood among New York City’s
GOP is especially grim.
After holding the mayoralty
for the better part of two de-
cades, the party seems adrift,
many of its members said. Most
of its candidates are unable to
win major elections in an in-
creasingly diverse city where
Democrats outnumber Republi-
CAITLIN OCHS FOR THE WALL STREET JOURNAL
Nicole Malliotakis’s staff removed signage at a Brooklyn venue after she lost to Democratic Mayor Bill de Blasio on Tuesday.
Malliotakis Boosts Profile
Despite Mayoral Defeat
BY MIKE VILENSKY
Republican mayoral candi-
date Nicole Malliotakis lost
handily to Mayor Bill de Blasio
in the race for mayor on Tues-
day.
But in the process the
Staten Island state assembly-
woman has upped her name
recognition at home and may
have begun carving a path for
higher office.
“She has raised her profile
locally in a really big way,” said
Assemblyman Matthew Titone,
a Staten Island Democrat and
friend of Ms. Malliotakis. “If
she is looking for an exit strat-
egy [from the state legislature],
she has written her ticket.”
Ms. Malliotakis, 36 years old,
garnered 27% of the vote while
the mayor received 66%.
After eight months on the
campaign trail, she is heading
back to a lower-profile job as a
rank-and-file legislator in a
small Assembly minority con-
ference in Albany.
The session starts again in
January, and Ms. Malliotakis
said she is “ready to get back to
work.” Some of the issues she
highlighted during her cam-
paign, such as concerns about
OYSTER PERPETUAL
SUBMARINER DATE
* * * * * *
cans nearly 7 to 1.
“I certainly don’t think it’s
time to write off the Republican
Party in New York City,” former
Gov. George Pataki, a Republi-
can who campaigned with Ms.
Malliotakis, said in an interview.
“But being a Republican in New
York City is like being an ice-
berg in the Caribbean.”
Mr. de Blasio won re-election
with more than 62% of the vote
to Ms. Malliotakis’s 24%, an al-
most 40-point advantage, ac-
cording to the city’s Board of
Elections. The GOP lost the race
for comptroller by about 55 per-
centage points, and the election
for public advocate by 53 per-
centage points.
The mayor said Wednes-
day he hoped the 2017 election
would mark “the beginning of
an era of progressive, Demo-
cratic administrations in this
city.”
In a rare bright spot for Re-
publicans, candidate Robert
Holden may have unseated
Councilwoman Elizabeth Crow-
ley, a Queens Democrat, in a
close race still being tallied. Mr.
Holden is a Democrat who ran
on the Republican line after los-
the city’s property tax system
and subways, could translate
into state legislation, she said.
But she has an uphill climb
pushing for changes in Albany,
where much of the 150-person
Assembly is allied with Mr. de
Blasio, and Democrats hold vast
influence in her chamber.
Republicans said Ms. Mall-
iotakis ran a strong race under
difficult political circum-
stances in a city where the
GOP is outnumbered, and now
she should consider a run for
the House or U.S. Senate, or
borough president.
“Everyone knew winning the
mayoralty in this environment
is virtually impossible, but she
is instantly on the radar of ev-
eryone who was watching,”
said New York GOP strategist
William O’Reilly. “I hope and
expect she gets up quickly and
takes a leadership role in the
Republican Party.”
Ms. Malliotakis said she has
no immediate plans to run for
another office but has “no idea
about the future.” While she
fell short of becoming New
York City’s first female mayor,
she said she hopes “my race
encourages other young women
to get involved.”
NY
ing in the primary. Ms. Crowley
hasn’t conceded.
Some Republicans say they
are tired of losing, and believe
the city’s party needs a make-
over. “The Republican Party
needs to have a very long term
plan,” said Adele Malpass, who
served until recently as chair-
woman of the Manhattan GOP.
To win, Republicans
say they need to do
better with black and
Hispanic voters.
The party, she said, should form
campaign committees for may-
oral and council races. She said
it would take years for Republi-
cans to become competitive
again in the city.
Republicans once performed
fairly well in New York City
races, with candidates such as
former Mayor Rudy Giuliani
drawing at least some support
from Democrats. But the wins
by Mr. Giuliani and later, former
Democrats Ride Anti-Trump Wave to Victory
BY JOSEPH DE AVILA
AND MIKE VILENSKY
Turnout for Democratic can-
didates in New York City’s sub-
urbs surged in Tuesday’s elec-
tion as the party rode a swell
of renewed enthusiasm by ac-
tivists opposed to President
Donald Trump.
Democratic state Sen.
George Latimer soundly denied
Republican Rob Astorino a
third term as Westchester
County Executive. Mr. Latimer
won 57% of the vote to Mr. As-
torino’s 43% in what many had
anticipated to be a close race.
Mr. Latimer garnered about a
total of 117,000 votes—or about
46% more than the 2013 Demo-
cratic county executive candi-
date Noam Bramson.
Mr. Latimer’s large margin
of victory caught many people
off guard, including the win-
ning candidate. “We never
dreamed of being in double-
digit country,” Mr. Latimer
said.
He attributed the wide mar-
gin to growing anti-Trump sen-
timent in Westchester County
and a big turnout by organized
labor, which came out to vote
against a ballot measure that
would have convened a state
constitutional convention. New
Mayor Michael Bloomberg,
came at times of crises. Mr. Giu-
liani was elected when crime
rates were high, while Mr.
Bloomberg won in the uncertain
months after the Sept. 11,
2001, terrorist attacks. He gov-
erned as a moderate, and on
many issues, was socially lib-
eral. Mr. Bloomberg ran for his
third and final term in office as
an independent.
The city also is more heavily
Democratic than it was two de-
cades ago, and is now majority-
minority. To win, Republicans
say they need to perform better
with blacks and Hispanics. But
some Republicans say GOP Pres-
ident Donald Trump has made
that task far more difficult.
The president’s approval rat-
ing among likely Hispanic vot-
ers in New York City is 14%, ac-
cording to a Quinnipiac
University poll last month.
Among black voters in the city,
it is 3%. “He puts a lot of people
in a horrible situation right
now,” William F.B. O’Reilly, a
GOP strategist in New York, said
of Mr. Trump.
—Mike Vilensky
contributed to this article.
York voters rejected the consti-
tutional convention ballot mea-
sure.
In Long Island’s Nassau
County, Laura Curran, a Demo-
cratic county legislator, de-
feated her Republican oppo-
nent, former state Sen. Jack
Martins, in a tight race for
county executive, winning by a
51% to 48% margin. Ms. Cur-
ran drew a total of 147,000
votes, about 31% more than
the 2013 Democratic Nassau
county executive candidate,
Thomas Suozzi.
Ms. Curran, a former news-
paper reporter, said her win
was driven by voters fed up
with corruption on Long Is-
land. The incumbent County
Executive, Edward Mangano,
has been indicted on federal
corruption charges. He has
pleaded not guilty to the
charges.
This election “was about
who I can I trust,” Ms. Curran
said.
Larry Levy, director of the
National Center for Suburban
Studies at Long Island’s
Hofstra University, said Demo-
crats successfully capitalized
on national frustration with
the Trump administration in
what they hope to be a sign of
things to come for the 2018
Thursday, November 9, 2017 | A10A
Manhattan Retail
Landlords Sweeten
Offers for Tenants
BY KEIKO MORRIS to CBRE.
“There’s a lot more negotia-
Commercial real-estate tion going on between land-
owners usually cut rents only lords and tenants,” said Nicole
after exhausting a menu of LaRusso, director of research
other options, from months of and analysis for CBRE.
free rent to ten- New York is no longer im-
PROPERTY ant allowances mune to the forces battering
for construction the U.S. retail sector. While re-
and remodeling. tail rents in Manhattan soared
Retail landlords in Manhat- after the last decade’s reces-
tan are trying all of the above. sion, the momentum petered
Average asking rents for out as online shopping took a
ground-floor retail space fell heavier toll on big national
more than 13% to $711 a merchants.
square foot in the third quar- The number of Manhattan
ter from the same quarter a retail deals being completed
year earlier, according to has fallen significantly from
CBRE Group Inc., and were levels three years ago and isn’t
down 30% from their peak of at a point that would be con-
$1,020 a square foot in the sidered healthy flow of trans-
fourth quarter of 2014. actions, said David LaPierre,
The gap between asking vice chairman at CBRE. In
rents and the actual rent in the some deals, tenants have been
final lease deal has been wid- able to negotiate more flexible
ening. During the market’s terms, including the ability to
highs, the average actual rent, terminate leases early if sales
or taking rent, ranged from aren’t meeting expectations.
96% to 98% of the asking price Short-term deals—those
and in some cases closed at or less than three years—also are
above it, according to a CBRE increasing. They made up
index. In the third quarter, the about 20% of all Manhattan
average taking rent was 82% of retail lease transactions in the
the asking price. third quarter, compared with
Landlords also offered more less than 5% in the same pe-
concessions and embraced riod last year, according to
shorter-term deals, according CBRE.
New York Republican Party,
pointed to GOP victories
throughout central and upstate
New York and said the party
was still in a good position for
2018. He acknowledged there
may have been some national
sentiments at play in some
races such as in Westchester.
“Westchester is very blue so
I think there was a reaction by
frustrated Democrats coming
Democrats George Latimer and out and voting on the basis
Laura Curran won their elections. that Clinton lost and Trump
won,” Mr. Cox said.
T-B: MIKE GROLL/AP; BESS ADLER FOR WSJ
Hillary Clinton, a resident of
Chappaqua, N.Y., in
Westchester County, endorsed
Mr. Latimer on Friday.
Mr. Cox, however, played
down the results in Nassau
County, saying voters were re-
sponding to local corruption
scandals involving Mr. Man-
gano and former Nassau
County state Sen. Dean Skelos.
Nassau County Republican
midterm elections. Chairman Joseph Mondello
“The winds are clearly blow- said he expected the GOP to
ing for the Democrats in New bounce back.
York suburbs and across the “The Republican Party has
country,” Mr. Levy said. That is weathered storms in the past
a sign “of the kind of demo- and will certainly weather this
graphic and political changes one also.” Mr. Mondello said.
we’ve been seeing in suburban “Remember there was a Nassau
communities on Long Island County Republican Party yes-
and beyond.” terday, there is one today and
Ed Cox, the chairman of the there will be one tomorrow.”
rolex oyster perpetual and submariner
are ® trademarks.
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
A10B | Thursday, November 9, 2017 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

After Losses, Left Lean

Shift in New Jersey vote by party

N.J. Republicans
in Tuesday's gubernatorial election
from 2016 presidential race
More More
Democratic Republican

Vow to Fight On +10 +5 Same +5 +10

BY KATE KING tered voters in New Jersey.

After losing their eight-year
grip on New Jersey’s top office,
state Republicans were licking
their wounds Wednesday, while
vowing to push back against
Democratic Gov.-elect Phil
Murphy’s progressive agenda.
“It was a rough night, but
John Currie, chairman of Newark
Jersey City
New Jersey’s Democratic State
Committee, said dissatisfaction New Brunswick
with Republican President Don-
ald Trump mattered more than Trenton
voter registration numbers.
Camden
The election gives Democrats Toms River
control of the executive and leg-
islative branches of state gov-
LUCAS JACKSON/REUTERS

we’ve had rough nights before ernment, leaving Republicans Vineland

and come back, so I expect we
will do so again,” said Bill
Palatucci, a GOP insider and
longtime political adviser to
outgoing Republican Gov.
Chris Christie.
‘The face I’m going
to put forward is the
moderate face of the
Republican Party.’
Mr. Murphy won about 56%
of the vote compared with Lt.
Gov. Kim Guadagno’s 42%, ac-
cording to unofficial results
released Wednesday by state
Division of Elections officials.
Mr. Palatucci attributed
Tuesday’s loss to what he and
other Republicans in the state
described as the natural swing
of the political pendulum be-
tween parties and the fact that
Democrats outnumber Repub-
licans by nearly 900,000 regis-
with little leverage against Mr. Atlantic City
Murphy as he moves to carry
out his agenda, which includes
increasing spending and imple-
menting a millionaire’s tax. Source: New Jersey Division of Elections
The state Assembly’s Re- Phil Murphy and his family celebrated after he was elected governor of New Jersey on Tuesday. THE WALL STREET JOURNAL.
publican leader, Jon Bramnick,
who was re-elected Tuesday by Matthew Hale, a political- national Republican Party. April census. He said redistricting tive elections alone had
a narrower margin than years science professor at Seton Hall Huggler, a resident of Eaton- was partly to blame for long- topped $21 million by early
past, said he would “govern University, said it would take town, said she didn’t like Mr. time Republican state Sen. Jen November, a 33% increase
from the middle” after Mr. some time for Republicans to Christie and is angered by ef- Beck losing her seat on Tuesday. from the 2013 elections, ac-
Christie leaves office in Janu- regain political strength in New forts in the Republican-con- In Ms. Beck’s district, which cording to the state Election
ary and will work with Demo- Jersey. He assigned some blame trolled Congress to repeal the includes parts of Monmouth Law Enforcement Commission.
crats when possible to advo- to Mr. Christie, who he said Affordable Care Act. “I really County, registered Democrats Spending from independent
cate for the GOP’s priorities. didn’t do enough during his two wasn’t happy with our situation outnumber Republicans by groups tends to favor Demo-
“It was a longer night than terms to campaign for down- so I wanted a change,” she said. more than 13,000 voters, more cratic candidates in New Jer-
normal,” he said. “The face I’m ballot candidates or promote Republicans leaders sought than double the margin that sey, he noted. “Democrats have
going to put forward is the the state’s Republican brand. to minimize the effect Mr. existed in 2009, before the lat- a built-in base of support with
moderate face of the Republi- “In the past there were Christie’s unpopularity—his est legislative map was drawn, the unions, and the unions raise
can Party, but fiscally we’re people that you could easily job-approval rating is in the when the spread favored Dem- a lot of money and they make it
going to oppose making this identify or pick out that might teens—had on Tuesday’s ocrats by about 6,000 voters. readily available,” he said.
state unaffordable.” be next,” Mr. Hale said. “I losses. Mr. Palatucci said New “Redistricting is key and In an unusual turn of events
In southern New Jersey, the don’t know who’s next in the Jersey is “too blue a state” for that’s clearly something where this year, New Jersey’s teach-
Republican mayor of Atlantic Republican Party right now. Mr. Christie’s electoral wins to Republicans have to be on ers union spent millions back-
City was ousted by a Demo- Chris Christie did absolutely transfer to other candidates. their game,” Mr. Florio said. ing a Republican legislative
cratic councilman, and long- nothing to build the party.” Dale Florio, a Republican Election spending from in- candidate in an effort to un-
time Republican Congressman Several voters interviewed at strategist and lobbyist, said the dependent groups, such as su- seat an incumbent Democrat,
Frank LoBiondo said he the polls on Tuesday said they party will need to fight for bet- per PACs, also is an area Senate President Stephen
wouldn’t seek re-election in voted for Mr. Murphy because ter representation when New where Republicans have been Sweeney. He prevailed, but
2018, giving Democrats an op- they were unhappy with Mr. Jersey redraws its legislative outmatched, he said. Indepen- was forced to spend a signifi-
portunity to flip his seat. Christie and the direction of the districts after the 2020 U.S. dent expenditures for legisla- cant amount of money.

GREATER NEW YORK WATCH

MANHATTAN
Jury Weighs Fate
Of Ex-Union Head
A jury has begun delibera-
tions in the bribery trial of the
former head of New York City’s
correction officers’ union.
Jurors are deciding the fate
of 57-year-old Norman Seabrook
spired to pay Mr. Seabrook kick-
Milk Bar Dessert Chain Plans Expansion
backs or bribes in return for his BY CHARLES PASSY resents a 15% year-over-year
delivery of millions of dollars of increase.
union funds for investments in Crack pie is going global. A Milk Bar spokesperson
Mr. Huberfeld’s hedge fund. Milk Bar, the New York- also said the company has fans
They say he was given based dessert chain behind the overseas, so “we are strategiz-
$60,000 and was promised be- gooey treat, has received an ing how to reach them.”
tween $100,000 and $150,000 eight-figure investment from Milk Bar’s products go be-
annually. RSE Ventures, a venture-capi- yond crack pie. The company is
Lawyers for the men say tal firm, Milk Bar officials said. also known for its cereal-milk
their clients acted honestly and Milk Bar plans to use the ice cream and its “naked”
BRYAN DERBALLA FOR THE WALL STREET JOURNAL

as well as hedge fund financier
Murray Huberfeld.
Prosecutors say the men con-
CORRECTIONS 
AMPLIFICATIONS
An executive from Ernst &
Young LLP and one from
Brookfield Property Partners
LP were shown in a photo with
a story about EY’s plans to re-
locate its U.S. headquarters in
Manhattan. The caption incor-
rectly said the photo showed
two Ernst & Young executives.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
legally and that prosecutors re- funds to launch into other
lied on a dishonest star witness. markets.
—Associated Press In its nine-year history, the
company has grown from a
CONNECTICUT single location in Manhattan’s
City Sues Drugmaker
East Village neighborhood to a
dozen spots, spread through-
Over Opioid Crisis out New York; Las Vegas;
Washington, D.C.; and Toronto.
New Haven is suing the com- But Milk Bar, which was cre-
pany that manufactures Oxy- ated in partnership with David
Contin for alleged “deceptive Chang’s Momofuku group of
marketing” that is blamed for restaurants, is now looking at a
the city’s opioid crisis. more significant expansion.
The city filed a lawsuit A Los Angeles location and
against Purdue Pharma Tuesday two additional locations in
seeking compensation for costs Washington, D.C., are set to
faced by police, social services open in late 2017 and early
and first responders combating 2018. Plus, additional markets
the crisis. are being considered.
The company has denied the Milk Bar’s founder and chief
allegations. executive officer, Christina
—Associated Press Tosi, pointed to San Francisco,
Milk Bar is planning to launch in more markets. Founder Christina
Tosi doesn’t want its crack pie to seem exclusive to New York.
Seattle, Miami, Chicago and
Atlanta as some of her favorite
cities.
“It felt exclusive to say you
don’t get crack pie unless you
come to New York,” said Ms.
Tosi, a two-time James Beard
cakes: layer cakes with un-
frosted sides.
Milk Bar joins a growing list
of New York food and restau-
rant companies looking to ex-
pand. Magnolia Bakery, whose
cupcakes were made famous
by the television series “Sex
and the City,” has added loca-
tions everywhere from Chicago
to Dubai, and has plans to
open in Boston and Washing-
ton, D.C., in 2018, according to
company officials.
Still, Milk Bar could face
challenges as it looks to grow,
Award winner, of the inspira- said John Zolidis, a restaurant
tion to grow her company. Ms. analyst based in New York. He
Tosi also noted Milk Bar ships warns that its quirky desserts
its signature dessert nationally. may not play well in every
In all, the company says it market. “Some people will say
has sold 250,000 slices of the this doesn’t make any sense,”
pie to date in 2017, which rep- he said.

JOIN A GLOBAL DAY OF ACTION

©2017 CHANEL®, Inc.

®ROBERTOCOIN

TO ADVANCE WOMEN
to leadership parity by 2025 ROBERTO COIN BOUTIQUE
Westfield World Trade Center
NEW YORK CITY + WORLDWIDE Oculus | Main Level C2
New York, NY | 212.287.1299
Get Your Ticket Today
SYMPHONY COLLECTION | robertocoin.com

NOVEMBER 14, 2017

TAKETHELEADDAY.COM
 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.
BY JOHN JURGENSEN
‘SWITCHED FOR CHRISTMAS”
has all the ingredients for a Hall-
mark Channel holiday movie. A
small-town Christmas festival.
Flirtation and decorating. Snowy
epiphanies about what really mat-
ters. And Candace Cameron Bure,
a Hallmark audience favorite who
has starred in six Christmas mov-
ies for the network. This season
the network doubled the actor’s
presence: Ms. Bure plays identical
twins who temporarily trade lives
and stumble into romance.
The commitment to Christmas
is total in the TV world of Hall-
mark, with wall-to-wall program-
ming requiring year-round produc-
tion. Thirty-three new and original
holiday films are premiering on
two Hallmark channels between
Oct. 27 and Jan. 1—up from 28
new movies last year. That’s a to-
tal of 136 Christmas films pro-
duced by Crown Media Family Net-
works, which operates four
Hallmark-branded channels, since
the company ramped up its output
of original movies in 2008.
Hallmark’s go-to producers are
tasked with finding ultra-quaint
settings without recycling the
same charming inns, barns and
town halls in multiple films. Van-
couver-based Front Street Pictures
coordinated five Christmas movies
for Hallmark this year, the last of
which is shooting now.
Front Street production man-
ager Jamie Lake is accustomed to
shooting Christmas movies in
summer when actors sweat in
their parkas. His crews create
snowy landscapes with white drap-
ery and truckloads of ice used to
pack fish. In his office he has data-
bases of potential locations and he
spends days off driving around,
hunting for buildings that look like
they belong in a snow globe.
“Every movie wants that small,
cute town and there’s only so
many small, cute towns within
driving distance of the film zone,”
Mr. Lake says, referring to the
Vancouver area in which produc-
tions receive tax credits.
Fort Langley, a picturesque vil-
lage just east of Vancouver, is a
little too popular with camera
DECONSTRUCTING A ‘SIMPSONS’ STEREOTYPE
FOX/GETTY IMAGES
Apu, left, pictured in a January 2016 episode of ‘The Simpsons,’ speaks with an exaggerated Indian accent in the show.
* * * *
LIFE&ARTS
On Hallmark,
It’s Always Christmas
The channel’s sure-fire ingredients for a successful holiday show: quaint
small town, flirtatious tree decorating and, most importantly, snow
Snow and decorations abound in the Hallmark Channel’s holiday-movie lineup for this year, including, clockwise from
top left, ‘Switched for Christmas,’ ‘Enchanted Christmas,’ ‘Christmas Homecoming’ and ‘A Song for Christmas.’
crews. So this year Mr. Lake
pushed further east to Chilliwack,
a farming community surrounded
by mountains. He zeroed in on a
narrow block with a barbershop
and toy store, which he says was
“perfect for the little parade” in
“Rocky Mountain Christmas,” set
in a fictional hamlet in Colorado.
An all-out approach to the holi-
day season is common in other in-
dustries such as retailing and ra-
dio, where more than 500 stations
around the U.S. are expected to
switch to an all-Christmas format
this year, according to Nielsen.
Some cable TV networks—includ-
ing Disney’s Freeform, Ion, Life-
time and Up—roll out Christmas
countdowns, featuring familiar hits
and a handful of originals
During last year’s holiday take-
over, the size of the flagship Hall-
TELEVISION
mark Channel’s target audience—
women ages 25 to 54—more than
doubled the average of any previ-
ous month. In the first two week-
ends of this year’s Christmas blitz,
Hallmark had the biggest audience
of any cable network. The seasonal
strategy has helped drive overall
growth for the network, which saw
its ratings among adult viewers
under 50, the industry benchmark,
grow by 31% last year.
However, Hallmark faces a
unique challenge: producing three
dozen movies about the same holi-
day while avoiding “Groundhog
Day” repetition. Often there’s a
struggling family business that
needs saving, like the cozy inn in
“Christmas at Holly Lodge,” the
old-fashioned holiday shop in
“Sharing Christmas,” or the the-
ater that loses its lease in “Christ-
MOVIES
Thursday, November 9, 2017 | A11
mas Encore.” A big-time star en-
counters small-town romance in
“Marry Me at Christmas,” “A Song
for Christmas” and “Rocky Moun-
tain Christmas.” In “The Perfect
Christmas Present,” the hero is a
personal gift buyer known to his
clients as Mr. Christmas—not un-
like the nickname for the title
character in “Miss Christmas,”
whose job is finding the perfect
tree for Chicago.
Executives say it’s the charac-
ters that make each movie unique.
“Even if there’s a similar tradition
in one movie to the next, that
doesn’t mean the characters aren’t
going on different journeys,” says
Michelle Vicary, executive vice
president of programming and net-
work publicity for Crown Media
Family Networks. The company is
a division of the Kansas City, Mo.-
BY DON STEINBERG
HARI KONDABOLU never wanted
to find fault with “The Simpsons.”
Like most comedians, he grew up
worshiping the groundbreaking an-
imated sitcom.
But as an adult, the Indian-
American stand-up comic started
having second thoughts about one
of the show’s characters, Apu Na-
hasapeemapetilon, the hardwork-
ing, cheapskate owner of the Kwik-
E Mart.
Apu made his debut during the
first “Simpsons” season. In an
early 1990 episode, Apu warns Bart
and his delinquent pals not to steal
anything in the aisles of his conve-
nience store. He’s been selling stale
hot dogs and price-gouging the
residents of Springfield ever since.
Actor Hank Azaria voices Apu
with a mockingly heavy Indian ac-
cent. Or, as Mr. Kondabolu calls it
in his new documentary, “The
Problem with Apu”: “A white guy
doing an impression of a white guy
making fun of my father.”
CROWN MEDIA (4)
based Hallmark Cards, Inc.
In addition to a feel-good finale,
there’s an atmospheric checklist
for every movie. “Buying a Christ-
mas tree. Wrapping gifts. Thinking
of gifts. Baking and cooking meals.
Family gatherings. All of the
things that you think of as tradi-
tional,” says Randy Pope, senior
vice president of programming.
Snow is a dealbreaker. “Every
year we get scripts with some-
thing like, ‘It’s the first year in the
country’s snowiest city that they
had no snow.’ Nope. Not on Hall-
mark it’s not,” Ms. Vicary says.
Tradition extends to the stars
who return annually to Hallmark
movies, especially actresses famed
for TV roles in the 1980s and ’90s,
including Ms. Bure and Lori Lough-
lin (“Full House”), Lacey Chabert
(“Party of Five”) and Danica McK-
ellar (“The Wonder Years”).
Hallmark’s formula has resulted
in a certain sameness in casting. All
the romantic leading roles in this
year’s batch of 33 movies are played
by white actors, except for the His-
panic stars of “Enchanted Christ-
mas,” Alexa and Carlos PenaVega.
“We’re working on it and doing
everything we can to create the
best cast for each movie and also
look at diversity as part of our
strategy,” Ms. Vicary says, noting
an expanding roster of stars, such
as Holly Robinson Peete and Rod-
ney Peete, the African-American
couple whose family is at the cen-
ter of Hallmark’s first unscripted
series, premiering in February.
Inducing yuletide déjà vu is part
of the point for fans. Testimonials
on Twitter include “I’ve done
nothing but watch Hallmark
Christmas movies for the past 3
days” and “i am so beyond ready
to binge hallmark christmas mov-
ies nonstop for the next two
months.” The recognizable
rhythms also work for people who
enjoy them ironically. As one
viewer tweeted, they “may be
cheesy and predictable, but that
sure as hell isn’t stopping me from
watching them.”
Hallmark executives are now
picking scripts for 2018’s Christmas
lineup, and filling smaller orders
for other seasonal movie blocks
such as “Very Valentine’s,” “Sum-
mer Nights” and “Fall Harvest.”
Mr. Kondabolu’s documentary,
which debuts at the DOC NYC film
festival on Nov. 14 and airs on
truTV on Nov. 19, explores a ques-
tion at the heart of that comment:
What happens when a TV character
loved by millions just might deni-
grate millions of others?
But he didn’t want the film to be
a downer. “ ‘The Simpsons’ is an
institution. And I love that institu-
tion,” says the 35-year-old New
Yorker. “It had to be funny. If
you’re gonna be a killjoy, you have
to kill joy with joy.”
In the film, Mr. Kondabolu talks
with actors of South Asian ances-
try including Kal Penn (“Harold
and Kumar Go to White Castle”),
Aziz Ansari (“Master of None”),
Aasif Mandvi (“The Daily Show”),
Hasan Minaj (“The Daily Show”)
and Utkarsh Ambudkar (“Pitch Per-
fect”), as well as comedians
Aparna Nancherla and Russell Pe-
ters and former surgeon general
Vivek Murthy. They all discuss
varying levels of unease with Apu.
Some note that the problem
Please see APU page A12
A12 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

THE MIDDLE SEAT | By Scott McCartney

How Should a Holiday Inn Smell?

Budget hotel chains, emulating luxury brands, are adopting signature scents to create memorable experiences
WHAT DOES a cheap hotel smell sometimes sprayed in corridors and
like? These days, it may be notes elevator areas by housekeeping.
of jasmine mixed with wood and A few people do turn up their
honeysuckle. noses at scented hotels. MGallery
Luxury hotels have scented lob- by Sofitel, a collection of high-end
bies, hallways and other public hotels that uses a different scent
spaces with carefully crafted per- for each property, conducted a
fumes for several years to create a survey of 3,000 guests over the
memorable brand image and summer and found 78% of women
stealthily calm guests as they ar- and 74% of men generally like
rive. Now budget chains are spritz- scented spaces. There were differ-
ing, too. Hotels have arguably ent levels of acceptance in differ-
never paid so much attention to ent countries, however. In the
how they smell, employing expert United Kingdom, one-third of men
“noses” from leading perfume mak- disliked scent.
ers to entice travelers with just the MGallery has advised its U.K.
right amount of sandalwood. properties to select fragrances
The description of the Holiday that are not too strong, says Agnès
Inn Express Signature Scent tries Roquefort, senior vice president of
for a level of elegance not nor- luxury brand management.
mally found with a free breakfast A side benefit for hotels: Just
buffet: “Crisp lemon top notes ac- about every brand now sells its
cent a heart of watery green flo- scent in candles and other products
ILLUSTRATION BY JEAN TUTTLE; PHOTOS: CLOCKWISE FROM TOP LFFT: GETTY IMAGES/ISTOCKPHOTO (2); ALAMY; ACCORHOTELS

rals, sweet grass, a dash of exotic for home use. Marriott says sales
herbs, spicy perilla and a base of of all its scents, such as a room
sheer woods and musk.” spritzer to add the lemony, seduc-
Marriott International and In- tive W smell to your own bathroom
terContinental Hotels Group use or bedroom, are up 35% compared
scent in most of their brands, from with a year earlier. The Carlyle in
Best Western on up. The hip W New York, a Rosewood hotel, sells
sprays a floral scent with notes of more than 2,500 bars of its scented
jasmine and sandalwood. The Wes- soap each year at $6 a bar.
tin chain promotes wellness, so it Scent marketing has been
employs a white tea aroma that is around for several years. Retailers,
calming, says Tina Edmundson, medical facilities and entertain-
global brand officer for Marriott. ment venues routinely mix scent
“If you put the W scent in a with heating and air-conditioning
Westin environment, it would feel air flow, or deliver it more directly
odd. It would feel out of place,” through strategically placed diffus-
Ms. Edmundson says. Moxy Hotels, ers or candles. Realtors and devel-
Marriott’s newest budget brand opers use scent to sell homes and
targeted at younger travelers, has condos. Airlines including Delta
a scent to enhance the notion of and United are using scent in air-
fun experiences. The most impor- port lounges and even on airplanes
tant corporate rule guiding Moxy’s during takeoff and landing.
olfactory profile: It can’t smell ex- “Hotels want clean, crisp notes.
pensive like a Ritz Carlton. They don’t want it to be a perfum-
ScentAir, a Charlotte, N.C., com- ery, but they don’t want it to smell
pany that develops and delivers like a tea shop,” says Edward
scents for hotels and other indus- Burke, vice president of customer
tries, says its highest area of strategy and communications for
growth right now is in value hotels. ScentAir.
Hotels say the scent has to fit Though each brand has a scent,
the brand, and mixing the right it’s ultimately up to local hotel op-
fragrance is crucial to marketing. erators whether to use it. ScentAir
Experts say what we smell and says it costs a small hotel about
hear can create lasting impres- The ‘Essence de Sofitel,’ used at all its hotels including Paris, below, includes lemon, lily of the valley and sandalwood. $100 a month to scent a lobby and
sions stronger than visual cues. other public areas. A large hotel
Just as favorite songs get attached a sense of famil- marker for the might spend $2,000 a month on a
to memories, so, too, can pleasing iarity. It really brand,” he says. scent program, depending on size
smells link a certain brand or helps get transi- Sofitel now and desired effects, Mr. Burke says.
place with happy thoughts. tion from the out- uses Essence de Hotels say they don’t use scent in
“You can see beautiful flowers. side,” Mr. Rocco Sofitel, a fra- individual rooms, but companies like
When you go to the next hotel, says. grance developed ScentAir are working on technology
will you really remember the flow- Westin was by famous that could give guests the ability to
ers?” says Joao Rocco, Paris-based one of the first French “nose” control scent in their rooms.
vice president for luxury brand with a chain-wide Lucien Ferrero. Some hotels already have in-
management at Sofitel hotels. white tea scent it It’s a mix of stalled tablet computers in rooms
“With smell, you will remember.” began testing in lemon leaf, ber- with controls for TV, temperature,
It’s not that consumers are go- 2005. Westin has gamot and basil, window curtains and lighting.
ing to book Sofitel hotels for the stuck with the supported by lily Scent could be added, but the cost
smell. Price, location and service same scent, but of the valley, to deliver individually controlled
are still bigger drivers of repeat many brands are white rose and fragrance into rooms remains the
business, Mr. Rocco says. But when updating and shifting. Sofitel The regional strategy, launched in cardamom, with a complex bottom stumbling block.
you get to a Sofitel hotel, you’ll shifted its strategy last year from 2009, had worked, Mr. Rocco says– note of precious woods like white “That’s one of our main proj-
feel more comfortable because the having off-the-shelf scents selected people bought candles. sandalwood. ects. Hotels say they’d love to have
smell is familiar, he says. by local staff to a unique Sofitel “But we were missing an oppor- The scent is diffused in the that ability if we can do it at the
“It gives you a sense of arrival, scent common to all properties. tunity to really build a very unified lobby of Sofitel’s 120 hotels and right cost,” says Mr. Burke.

ADVERTISEMENT

Leisure Travel
To advertise: 800-366-3975 or WSJ.com/classifieds
APU
Continued from page A11
FRANCE with the character might
stem from his pioneering
role. In 1990, there weren’t
many South Asian charac-
ters on American TV or in
films. Early “Simpsons” epi-

 sodes reached as many as

30 million viewers, and Apu
became the most prominent
Indian-American presence

 
to many people.
“They didn’t mean for it

  to happen. The problem is
we didn’t have any other
representation in this coun-
try,” says Mr. Ambudkar in
the film. “This one character
created so many problems,
DAVID SCOTT HOLLOWAY/TRUTV

psychologically, emotionally,
for so many people.”
Dana Gould, a former
“Simpsons” writer and pro-
ducer, tells Mr. Kondabolu
that the bottom line for the
show is “funny,” and some
foreign accents simply

  


  
  
 sound funny to nonmultilin- In his film, comedian Hari Kondabolu, left, speaks with Whoopi Goldberg about racial stereotypes.
 gual Americans.
He suggests that “The
Simpsons” stereotypes—
and often humanizes—
pretty much everybody, so
Apu is no different from the
sitcom’s depiction of greedy
billionaires, Mr. Burns.
But for Mr. Kondabolu
and others, this racial stere-
otype is different. In the
film, he assembles a roomful
of young South Asian-Amer-
 
public or taunted by a
stranger with an Apu refer-
ence, such as his catchphrase:
“Thank you, come again.” All
the men raise their hands.
Throughout the documen-
tary, Mr. Kondabolu tries to
wrangle an interview with
Mr. Azaria, a master of over-
the-top vocal caricature. His
other “Simpsons” characters
include surly bartender Moe,
wasn’t able to preview the
documentary and didn’t
want to comment on it.
But Mr. Kondabolu does
meet with Whoopi Goldberg,
who owns a collection of
racist memorabilia, and the
two discuss how Apu com-
pares with the portrayal of
African-Americans in min-
strel shows. He also inter-
views his immigrant parents,
tion puts up with more than
their American-born children
are willing to tolerate. She
also tells Hari that he has
“Apu hair.”
Mr. Kondabolu under-
stands that not everyone will
appreciate his concern about
Apu. “I realize some of you
think I’m some annoying, PC,
social-justice warrior who’s
very sensitive and obsessed



 

 
ican entertainers whose donut-munching cop Clancy who are more accepting. with a 28-year-old cartoon

 
 

     

 
 faces are familiar from TV Wiggum, dweeby Professor “Hank Azaria is a talented character,” he says in the
    

 


  
  


   
!
"!#

  #
  
  $
 

%   
 #&
 
  
 and movies. He asks how Frink and smug, overweight guy,” his mother says. “They film. “You’re probably think-
'
   
 $ &  

 ! (  

# ) many of the men and Comic Book Guy. Mr. Azaria paid him, and he did it. And ing: ‘Come on, snowflake, let







   women have had to deal ultimately declined to partic- he did it great.” She ac- it go.’ Well, I have let it
with being called Apu in ipate in the documentary. He knowledges that her genera- go...for 28 years.”
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.
Taylor Swift’s ‘Reputation’ on CDs
The pop star’s new album, due Friday, is unlikely to be made available on streaming services
BY ANNE STEELE
TAYLOR SWIFT APPEARS to be
staking her reputation on CD sales.
While the music industry is
watching to see if the pop star’s
new album can match the sales of
her previous blockbuster, a bigger
question for many concerns how
her sixth studio effort, “Reputa-
tion,” will be made available when
it comes out Friday.
The album is unlikely to be
heard on streaming services when
it’s released, according to people
familiar with the matter. Initial
discussions indicated such a
streaming blackout could last as
little as a week or two after the
album’s release, according to one
of these people, who said the final
decision was up to Ms. Swift and
her inner circle. So far, that group
hasn’t shared its plans with many
business partners. Ms. Swift’s la-
bel, Big Machine Records, de-
clined to comment on plans for
the new album.
After releasing her previous al-
bum, “1989,” in 2014, Ms. Swift
PAINTING HIMSELF INTO THE SPANISH CANON
BY MARY TOMPKINS LEWIS
New York
IN THE LATE 17th century, the
city of Seville suffered pestilence,
famine and the loss of its presti-
gious position as the commercial
hub of the expansive Spanish Em-
pire. Though its population was
devastated by disease and starva-
tion, many reduced to living in
squalor, and its economy and fu-
ture lay in ruin, Seville miracu-
lously contributed some of the
most splendid late paintings of the
Spanish Golden Age.
Chief among these late baroque
works were the paintings of Barto-
lomé Esteban Murillo (1617-1682),
whose penchant for a graceful,
naturalist style made accessible
the religious art he produced for
the city’s churches and charitable
institutions. Murillo is likewise re-
membered for enigmatic scenes of
the streetwise denizens of
Seville—smiling, scruffy waifs in
threadbare clothing, veiled young
flower girls in provocative poses,
perhaps a courtesan and a duenna
gazing out at the viewer or client.
Such paintings’ intriguing, cryptic
content and their sophisticated ar-
tistic conceits made even these
humble images prized by Murillo’s
legions of collectors.
Although they have received lit-
tle critical attention, Murillo also
excelled at portrait paintings, and
at least two self-portraits figure
among the 15 or so surviving like-
nesses that can be attributed to
his hand. As beautifully argued in
the small but significant “Murillo:
The Self-Portraits,” organized by
Xavier F. Salomon, the chief cura-
tor of the Frick Collection, and by
Letizia Treves of the National Gal-
lery, London, these works, too, are
MUSIC
waited seven months before al-
lowing any streaming services to
carry it.
Three years later, however,
streaming has overtaken download
sales and CDs as the most popular
way to listen to music, and it’s un-
clear whether it will be feasible to
keep the new album off Spotify
AB, Apple Music and other ser-
vices for as long.
So far this year streaming is re-
sponsible for about 60% of music
consumption in the U.S., according
to Nielsen Music, which measures
Bartolomé Esteban Murillo’s ‘Self-Portrait’ (c. 1650-55)
essential to his oeuvre.
The exhibition marks the quad-
ricentennial of the painter’s birth
and was occasioned by the New
York museum’s recent acquisition
of Murillo’s “Self-Portrait” of
c.1650-55, a gift from heirs of the
Thursday, November 9, 2017 | A13
LIFE & ARTS
Taylor Swift, left, in Houston in
February, has pushed CD sales of her
new album using incentives including
special-edition magazines, below.
CLOCKWISE FROM TOP LEFT: JOHN SALANGSANG/INVISION/AP; MERT & MARCUS
music release of the season.
The chain’s biggest seller to
date is Adele’s “25,” which was
held from streaming for the better
part of the first year after it came
out in 2015, when streaming be-
came the biggest segment of the
U.S. music market.
Target is offering two different
72-page special-edition magazines
featuring portraits, personal pho-
tos as well as poetry and paintings
by Ms. Swift with each album pur-
chase. It expects many fans, who
call themselves “Swifties,” to pur-
chase two copies of the album to
have both magazines, said Lee
Henderson, a company spokesman.
“We look for a way to give fans
something they can’t get anywhere
else,” said Mr. Henderson.
Until the middle of this year,
none of Ms. Swift’s music was
available on Spotify, by far the
most popular streaming service,
with about twice as many users as
No. 2 Apple Music.
sales and streams in units, rather Last week, streaming accounted Ms. Swift wanted her music to
than in dollars, and treats 1,500 for 75% of total retail volume for be available only to paying sub-
streams as the equivalent of one “1989,” according to Nielsen. scribers; Spotify insisted that all
album sale. While the singles off of “Repu- its users—including those who use
All signs point to strong sales tation” so far haven’t had the its free, ad-supported option—be
momentum ahead of Friday’s re- same chart success as those on able to listen to it. In June, Ms.
lease. “1989,” that doesn’t appear to have Swift put her entire catalog on
“Reputation” has already gener- diminished demand for the album, Spotify, including its free tier. By
ated 400,000 preorders for digital said David Bakula, a Nielsen Enter- then, “1989” had sold 10 million
and physical copies—more than tainment analyst. copies world-wide, according to
double the figure for “1989,” ac- The first four singles on the al- her management team.
cording to Big Machine. That al- bum indicate a more synth-heavy It’s too soon to say what keep-
bum was released when sales still —and, at times, bass-heavy—brand ing “Reputation” off streaming ser-
generated more revenue than of pop, while the set list includes a vices would mean for its overall
streaming in the U.S., according to collaboration with singer-song- performance.
the Recording Industry Association writer Ed Sheeran and rapper Fu- “This was going to be heavily
of America. ture. Three of the same pop mas- purchased album anyway,” said
Sales remain a huge opportunity terminds who worked on “1989,” Nielsen’s Mr. Bakula.
for Ms. Swift. A superstar artist Jack Antonoff, Max Martin and Since Ms. Swift’s fan base is
can receive as much as 20% of the Shellback, are listed as producers. largely made up of younger con-
proceeds from album sales. Ms. Swift is using various incen- sumers who listen to music via
In the first weeks after the re- tives to encourage her loyal fan streaming, she could effectively
lease of a heavily promoted album base to buy the new album on CD. get paid twice for the same al-
like “Reputation,” that can make Ordering a copy from her website bum, as fans purchase a digital or
sales far more profitable than can boost a buyer’s chances of se- physical copy of “Reputation”
streaming, which generates royal- curing tickets to her coming con- then continue to listen to it on
ties worth tiny fractions of a cert tour. the subscription services they
penny per listen. Over the long Target Corp. says “Reputation” typically use.
term, those micropayments can has generated more preorders With or without streaming, says
add up to big money for hit songs than any album before it, and ex- Mr. Bakula, “it’s going to be a
and albums. pects the album to be its biggest blockbuster one way or another.”
ART REVIEW
enduring synopses of his art that The elaborate stone frame and
the painter intended. They lay format of Murillo’s “Self-Portrait”
claim not only to his likeness but of c. 1870 suggest its strikingly dif-
to his pre-eminent place in the ferent intent. Though his sagging
Spanish canon. face and neck are softened now by
The Frick’s recently acces- a lacy Northern (or Walloon) col-
sioned, half-length self-portrait de- lar, the painter has visibly aged;
picts Murillo in a three-quarters the tragic recent loss of his wife
pose, and dressed as a hidalgo, or and four of his nine children may
Spanish gentleman: A black jacket also have shaped his weary coun-
with fashionably slit sleeves re- tenance. The attributes of his pro-
veals his voluminous underlying fession are arrayed on a stone
white shirt. And, at the neck, the ledge before him: the tools of
stiffened, unembellished golilla drawing at left allude to Murillo’s
collar—an austere style favored by heralded skills as a draftsman,
Philip IV and delicately sketched in while the paintbrushes and palette
here with sheer, white strokes of at right establish him as a painter.
paint—sets off his sensitively ren- But it is the ingenious gesture
dered features. An inscription in he assumes, as his right hand
red at the base of the canvas, reaches through the painted frame
which identifies the subject and into the viewer’s space, that an-
his fame within his profession, was nounces Murillo’s brilliant origi-
added to the painted stone ledge nality. A marvel of trompe l’oeil
after Murillo’s death and appears painting that may have drawn
in subsequent graphic replicas that from countless works he knew
render such images encomiums. from prints (and Rembrandt in
Like many of Murillo’s portraits, particular), it extends the inven-
his image is inset within an illu- tive pictorial conceits that made
sionistic stone frame, but one far Murillo’s genre paintings—several
less decorative than those that en- of which are included in this
shrine his other sitters or even the show—so alluring. It would inspire
painter himself in the later self- countless later artists, notably the
portrait. Made up of a seemingly Englishman William Hogarth, to
rough and chipped stone block use it as models for their own
that appears to have been ravaged work. But it may have been
© THE FRICK COLLECTION
by time, it may recall, as the cura- painted as well to inspire his re-
tors argue (and as do his paintings maining sons. The touching in-
of urchins in vacant landscapes scription Murillo added, “Barto-
strewn with ancient ruins), Mu- lomé Murillo portraying himself to
rillo’s interest in the remnants of fulfill the wishes and prayers of
classical antiquity that filled the his children,” suggests his in-
Sevillian landscape. Built upon the tended audience was not just that
ancient Roman city of Hispalis, of posterity.
Frick family. When seen in the Seville enjoyed one of the closest
context of a handful of his related connections of any Spanish city Murillo: The Self-Portraits
portraits—including several newly with its antique past, and it is one The Frick Collection, through Feb. 4,
attributed here to the artist—and that Murillo knew well. An allusion 2018
amid graphic reproductions by to that legacy here may have “set
later artists, Murillo’s self-por- in stone” his image and achieve- Ms. Lewis teaches art history at
traits emerge as the cogent and ment for posterity. Trinity College, Hartford, Conn.
 A14 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

SPORTS
BASKETBALL

The NBA’s Bizarro Start

The Cavs stink and the Knicks might be good. Right now, the league makes no sense.
JAMES D SMITH/ASSOCIATED PRESS

BY BEN COHEN

most confusing
stretch of every NBA season.
Each team has played about
10 games—which is enough to
make impressions that might
be true and not enough to
Jerry Jones, left, with NFL commissioner Roger Goodell in 2014. know with any confidence
whether they actually will be.
NFL But there is already so much
that has happened in less than
a month that it can be hard to
JONES TRIES TO BLOCK keep track. Take the Cleveland
Cavaliers as an example.

GOODELL’S CONTRACT The latest twist in their

daily soap opera came on
Monday night when LeBron
James posted on Instagram
the issue. a cryptic image of the chil-
BY ANDREW BEATON
In a previous Oct. 26 call dren’s-book character Arthur
with at least 15 owners who clenching his fist with the
owner aren’t members of the com- caption “Mood…” It was only
Jerry Jones is trying to pensation committee, some natural that the NBA world
block NFL commissioner of those agreed with Jones’s spent most of Tuesday at-
Roger Goodell’s pending con- concerns about extending tempting to decipher the
tract extension, sparking a Goodell’s contract, according message.
feud among the ownership to a person familiar with the Here are some questions
ranks and intensifying his matter. that are easier to answer.
battle with the league. The Oct. 26 call came Are the Cavaliers really
The blowup is the latest shortly after the NFL’s own- this bad?
enmity for the league in a ers meetings in New York, Cleveland’s defense last
season already filled with in- where a focal point of dis- season was not quite the
ternal and external strife, cussions was the contentious worst of any team’s. It was

MICHAEL REYNOLDS/EPA/SHUTTERSTOCK
most prominently around national anthem protests by only the worst of any playoff
the players’ national anthem players that have roiled the team’s. But now it’s the
protests and how to handle league and its sponsors. Dur- worst of any team’s in the
them. Jones has been critical ing those meetings, the last five years.
of the league’s handling of league decided not to change The question surrounding
the issue as well as Goodell’s a rule to mandate that play- the Cavaliers is how much
decision to suspend Cowboys ers must stand during the anyone should care about
star running back Ezekiel El- anthem. their statistical ineptitude.
liott for six games, a penalty Jones has been one of the November is not their priority.
that remains under appeal. most outspoken owners Cleveland has played in June
In a call last Thursday against the protests, which the last three seasons, and it’s LeBron James and the Cleveland Cavaliers are off to a slow start this season.
with owners on the compen- have drawn ire from some even more important this year
sation committee, Jones ex- fans and President Donald for the league’s oldest team to game. It seemed like Bos- get another top draft pick to the Pistons that one of their
pressed concerns about ex- Trump, who have called the conserve its energy for when ton’s championship aspira- complement Kristaps Porzin- most important players
tending Goodell’s contract demonstrations unpatriotic. it counts. The team the Cavs tions would have to wait. gis. By that logic, what couldn’t stay on the court in
and the potential structure All the while, Jones has are now won’t be the team Except the Celtics have now they’re doing is extremely tight games because he
and compensation involved, assailed Goodell’s discipline the Cavs are six months from won nine straight on their way Knicks-y: This is a team that couldn’t be trusted to make
according to a person famil- for Elliott over violations of now, either, since they’re to the league’s best record. can’t even tank well. free throws. He was so des-
iar with the matter. Goodell the league’s personal con- waiting for Isaiah Thomas to Irving is a legitimate star. Why should I care about perate for solutions that
has reportedly made more duct policy related to alleged rehab an injury before making Al Horford is a reliable side- Andre Drummond’s free Drummond experimented
than $200 million since be- domestic violence. He and his Cleveland debut. kick. Boston’s defense is es- throws? with virtual reality before
coming commissioner in the NFL Players Association But the real reason it’s pecially feisty. Drummond came into this last season. When that didn’t
2006. have criticized the league’s not worth freaking about the Whether it’s sustainable season as the single worst work, he tried something
Jones declined to com- investigatory process and Cavaliers being 5-6 is pretty beyond the first month of free-throw shooter in the more conventional: He re-
ment through a team spokes- called the suspension unfair. obvious. They still have Le- the season is another issue history of the NBA. His ca- made his shooting mechanics
man. An NFL spokesman de- Elliott’s suspension has Bron James. altogether. But for now it’s a reer percentage from the line and rethought his free-throw
clined to comment, though become a protracted legal Are the Boston Celtics sight to behold. was 38.1%. Of all the players routine before this season.
in recent weeks the league battle, with a potential reso- really this good? Are the New York Knicks with at least 1,000 career The biggest increase in
has expressed confidence lution coming Thursday, The Celtics were the No. 1 really this competent? free-throw attempts, no one free-throw percentage from
that the owners would move when the Second U.S. Circuit seed in the East last season. Maybe! else was below 40%. one season to the next among
forward with a contract ex- Court of Appeals will hear They celebrated by overhaul- It’s time to acknowledge That’s what makes the De- players with enough attempts
tension for Goodell. the case. ing their roster before this that the circus in residence troit Pistons center’s improve- was Tim Duncan improving
The call, as first reported To press his argument season. They landed Gordon at Madison Square Garden ment the craziest story of this from 61.8% to 79.9% between
by the New York Times, re- against Goodell, Jones has Hayward in free agency, otherwise known as the New NBA season. Drummond is 2001 and 2002, according to
sulted in other members of hired high-profile litigator traded the No. 1 pick in the York Knicks finally resembles suddenly and improbably a Stats LLC. If he keeps shoot-
the committee revoking David Boies. A spokesman draft and dealt Thomas for a halfway decent profes- 75% shooter. And it doesn’t ing this way, Drummond
Jones’s status as an ad hoc for Boies’ law firm, Boies Kyrie Irving in a series of sional basketball team. appear to be a fluke that he’s would be in a class of his own.
member, a role that had Schiller Flexner, declined to moves that positioned Bos- Now let’s be clear: The made 30 of his 40 free Is there any reason to
given him a voice but no comment and referred ques- ton to compete for titles now Knicks are unlikely to make throws, either. He also made believe the Golden State
vote. The Times said Jones tions to the Cowboys. and in the future. And then the playoffs, and there’s still 16 of his 20 free throws in the Warriors aren’t winning
threatened to sue the league —Rebecca Davis O’Brien Hayward shattered his leg in an argument they should be pre-season. the championship?
and some of the owners over contributed to this article. the first quarter of the first losing as much as possible to It was a big problem for No.

Weather The WSJ Daily Crossword | Edited by Mike Shenk

Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
30s 20s d
Edmonton 20s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 70 Works with hides 29 Dance party
0s
V
Vancouver Caalgar
C ga y
Calgary
0s 14 15 16 71 Light course 30 Cargo unit
30s
10s
Seattle ip
Winnipeg 17 18 19 72 Broad players 34 Brittany, for one
10s 40s 20s
P d
Portland 20 21 22
Down 36 Brittany, for one
40s Montreal 30s
Bismarckk Ottawa 1 Emmy statuette
Helena Billings A g t
Augusta 40s 37 Playwright
23 24 25 26 27 part
Eugene Boise Ayckbourn
Mpls./St.. Paul
Pau T t
Toronto A b y
ban
Albany t
Boston 50s
50s Pierre 28 29 30 31 2 Rock in motion 38 “It was beauty
20s ff l
Buffalo rtford
Hartford 60s
30s k
Milwaukee Detroit
50s oux FFalls
Sioux ll Clevel d
Cleveland ew Y
New Yorkk 70s 32 33 34 35 36 37 38 3 Works out killed” him
60s Salt Lake
Lake Cit
C
City es Moines
Des
Reno Cheyenne
Ch Phhil d lph
hi
h
Omaha Ch g
Chicago
Pittsburgh
g 50s Philadelphia 80s
39 40 41 42 43 4 Alpha Canis 40 Small streams
Sacramento p gfi ld
Springfield
Denver40s Topeka d p
Indianapolis h
hi g
Washington on D C
D.C. 90s Majoris 42 Coxcomb
San Francisco Kansas
Cityy Ch l t
Charleston 44 45 46 47 48
LLas C d
Colorado h
Richmond d 100+ 5 It loops the Loop
p g
Springs St.. Louis Lou
LLouisville
ill 45 None too smart
70s Vega
Vegas l i h
Raleigh 49 50 51 52
hit
Wichita 6 Fluctuate
Los A
Ange l
Angeles h ill
Nashville C h l
Charlotte 47 The Brits call it
anta Fe
Santa 50s Memphis hi
C b
Columbia 53 54 55 56 57 a tipper
San Diego 80s PhPhoenix Albuquerque Oklahoma
klahoma City
City Warm Rain 7 With 8-Down,
Little Rock A
Atlanta
T c
Tucson Birmingh
Birmingham 58 59 60 61 62 63 “The Stars, Like 50 Satellite of
Worth D
Ft. Worth ll
Dallas Jack
Jackson 60s Dust” author
Cold T-storms Jupiter with an
El Paso 64 65 66
b
Mobile
60s A ti
Austin 70s Jacksonville 8 See 7-Down ice crust
10s t
Houston Stationary Snow
ew Orleans
New l d
Orlando 67 68 69
9 Possible answer 52 Turn upside
20s 10s 80s an Antonio
San Tampa
80s down
Honolulu
l l Showers Flurries 70 71 72 to “Parlez-vous
Miami
Anchorage
A h g 30s anglais?”
70s 53 Uniformed
40s
MERGING TRAFFIC | By Alice Long
Ice 10 1964 Beatles student
song
U.S. Forecasts City Hi
Today
Lo W
Tomorrow
Hi Lo W City Hi
Today
Lo W
Tomorrow
Hi Lo W
Across 25 Soft leather 49 Contemptible
11 Sienna or Sedona
54 Sotomayor’s
appointer
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
Omaha 37 18 s 41 33 c Frankfurt 48 37 sh 48 39 r 1 Saloon selection 28 Cut for yourself 51 Taking a break
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Orlando 84 66 pc 78 66 pc Geneva 48 35 r 47 40 c and two friends 12 Cinnabon stand 55 “The State and
Today Tomorrow 5 Brand with three 53 Capital that’s come-on Revolution”
Philadelphia 57 38 c 39 25 s Havana 86 70 pc 84 70 pc
City Hi Lo W Hi Lo W Phoenix 85 61 s 86 61 pc Hong Kong 83 73 pc 83 73 s peaks in its logo 31 Flying formations home to writer
Anchorage 28 22 sn 27 16 s Pittsburgh 50 25 s 32 18 pc Istanbul 63 51 s 60 50 pc Nationwide 13 Stroboscope gas
10 Company with 32 Holds 56 Galleria array
Atlanta 61 44 r 65 40 s Portland, Maine 47 34 s 36 20 s Jakarta 89 75 t 89 77 t 18 Salve targets
Austin 62 47 c 66 50 pc Portland, Ore. 55 44 r 52 45 r Jerusalem 67 48 s 66 50 s great projections 57 Fibbies
Baltimore 53 38 c 43 22 s Sacramento 66 51 sh 64 45 pc Johannesburg 80 55 pc 78 58 t 33 Fresh from the 60 Just
14 Leave the hangar, 24 Student driver?
Boise 54 40 c 54 37 c St. Louis 54 25 s 42 29 s London 56 44 pc 55 47 c farrier, say 58 Slain shepherd
e.g. 62 Soapy buildup
Boston 50 38 s 39 25 s Salt Lake City 64 42 pc 61 40 pc Madrid 56 34 pc 61 39 s 26 Sign of trouble
Burlington 49 24 pc 28 22 pc San Francisco 68 55 r 66 52 pc Manila 84 77 sh 86 78 t 35 “The Seven 59 P look-alike
15 Photo app tool 63 Squeezes (out)
Charlotte 55 39 r 59 29 s Santa Fe 60 34 s 63 37 s Melbourne 72 48 c 77 51 pc Spiritual Laws 27 River of
61 Behind the
Chicago 42 20 pc 34 26 pc Seattle 51 44 r 53 43 c Mexico City 74 47 pc 74 49 pc 16 Slushy earth of Success” Scotland 65 Name after
Cleveland 50 27 pc 33 22 sf Sioux Falls 27 15 pc 32 28 c Milan 54 40 pc 55 39 pc times
writer Chopra Fannie or Ginnie
Dallas 63 44 pc 65 48 pc Wash., D.C. 55 39 c 45 27 s Moscow 35 28 pc 37 35 c 17 Risk a 28 Bridge tally
64 Tennis’s Caroline heading 66 Salt source
Denver 49 27 s 60 31 pc Mumbai 94 73 pc 94 73 pc breakdown, in 39 At all times
Wozniacki, e.g.
Detroit
Honolulu
48 21 pc 32 21 pc
87 74 pc 86 75 pc
International Paris
Rio de Janeiro
51
84
43 c
71 pc
55 46 sh
85 71 t
a way 41 Switch type
Today Tomorrow 65 It won the Previous Puzzle’s Solution
Houston 68 50 pc 71 52 s Riyadh 89 61 s 89 60 pc 19 By and by A T E
A T T R E S C R A B
Indianapolis 50 23 s 35 23 s City Hi Lo W Hi Lo W Rome 63 50 t 62 45 t 43 Move, in real Best Original L E T
B E J E E P O B O E
Kansas City 46 20 s 42 35 pc Amsterdam 53 46 c 53 44 sh San Juan 86 78 sh 86 77 sh 20 Pudgy plumber estate jargon Screenplay Oscar A N D
R E M A G I C M I K E
Las Vegas 78 54 pc 76 53 pc Athens 69 54 pc 67 56 pc Seoul 57 45 s 62 37 sh of console fame in 1988 I T S
A T R A P T A P
Little Rock 62 36 pc 58 31 s Baghdad 85 62 s 81 58 s Shanghai 69 56 s 72 51 sh 44 Possible answer H O A X S C R E E D S
H E A T E X H A U S T I O N
Los Angeles 71 59 pc 69 57 pc Bangkok 91 78 pc 92 78 t Singapore 88 77 c 88 77 t 21 Starchy veggie to “Parlez-vous 67 Put out N O R M A O R R E T N A
Miami 88 75 pc 86 75 pc Beijing 59 42 pc 56 26 s Sydney 71 57 s 72 61 pc anglais?” I N B L I P B A L M H O G
Milwaukee 39 20 c 33 29 pc Berlin 46 40 c 47 39 sh Taipei 78 73 c 87 70 pc 22 Star vehicle 68 Tell tale target N C I S D U O R V E R S
Minneapolis 24 12 pc 29 26 pc Brussels 48 43 c 52 42 sh Tokyo 63 51 s 62 59 pc 46 Cause of a rush T H U N D E R S H OWE R S
Nashville 60 35 s 51 29 s Buenos Aires 78 58 s 80 54 pc Toronto 47 16 sn 28 17 c
23 Contemptible 69 Game played H OM E I C E A L A N
fellows 48 Grams with weapons E S L I N E R T G A S
New Orleans 68 53 sh 70 54 pc Dubai 92 77 s 90 75 s Vancouver 48 41 r 49 40 pc J A Z Z H A N D S MU N C H
New York City 53 37 pc 38 26 s Dublin 53 45 pc 51 44 r Warsaw 48 39 c 47 39 sh A L O E R O L E T R U C E
s

Oklahoma City 56 38 pc 59 42 pc Edinburgh 51 39 pc 48 36 sh Zurich 48 34 c 45 41 c Solve this puzzle online and discuss it at WSJ.com/Puzzles. I P O D E V E L H A S T A
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.
Ed Gillespie is
the canary in
the mine shaft
for Republi-
can politics.
We’ll push
that further:
WONDER
LAND Virginia is the
canary in the
By Daniel
mine shaft for
Henninger
all of Ameri-
can politics.
Years ago, coal miners who
worked down amid the dan-
gers of carbon monoxide
would keep a caged canary
nearby. If the canary looked
dead, the miners got out.
The big difference for our
comparison is that while min-
ers are smart enough to recog-
nize toxic gas, our two politi-
cal parties are not. The
American people are the ca-
naries.
For Democrats, political
identity is by now well-estab-
lished as a function of one’s
race, gender or sexual self-def-
inition. Refined further, a Dem-
ocrat is a “person of color” or
a “woman” or a “transgender”
person. Those who don’t qual-
ify for a category keep mum.
From these identities flow
many streams of potential vio-
lations, slights and transgres-
sions justifying political action
against “them.”
Democrats found validation
for the politics of identity in
the Virginia results. Some 77%
of unmarried women voted for
Ralph Northam. Ed Gillespie
was standing in front of an
anti-Trump train.
Voters in college towns,
where the politics of identity
was born, also voted over-
whelmingly for Mr. Northam.
A Mass Extinction for Virginia Republicans
By Karl Rove
T
he Republican defeat in
New Jersey is unsurpris-
ing. The deep-blue state
went for Hillary Clinton by 14
points, and on Tuesday the
next governor, Democrat Phil
Murphy, won by 13. The Re-
publican nominee, Lt. Gov. Kim
Guadagno, simply couldn’t es-
cape the gravitational pull of
her unpopular boss, Gov. Chris
Christie, whose favorability in
exit polls was a sad 22%.
The GOP’s loss in purple
Virginia is far more problem-
atic, with grave ramifications
for the 2018 midterms. Mrs.
Clinton carried the state by 5
points, but Democrat Ralph
Northam won the governor-
ship Tuesday by almost 9.
That’s hardly the worst
part. The Republican nominee,
Ed Gillespie, took about 11,000
more votes than former Gov.
Bob McDonnell did in 2009
when Mr. McDonnell won that
year’s race with 59%. In fact,
Mr. Gillespie won more votes
than any Virginia GOP guber-
natorial candidate in history,
yet he netted only 45%.
In 2013 the GOP’s nominee
for governor took 45.2%, even
though he collected 100,000
fewer votes than Mr. Gillespie
did. The difference is that turn-
out this year was up 16% from
2013. Most of the additional
voters were white independents
and Democrats in the suburbs
who wanted to send President
Trump a message.
Turnout in the Northern Vir-
ginia suburbs of Washington
Victory Against ISIS—in the Philippines
By Ian J. Storey
P
resident Trump’s visit to
Asia is designed to reas-
sure friends and allies
that America’s commitment to
regional security remains solid.
But the U.S. already demon-
strated that commitment in
the southern Philippines over
the past five months. The
Trump administration honored
the terms of America’s 66-year
alliance with the Philippines
and helped defeat Islamic mili-
tants occupying the city of
Marawi.
That is remarkable because
President Rodrigo Duterte
seems determined to down-
grade that alliance. Last year
he called President Obama a
“son of a whore.” A month
later, he visited Beijing and
declared his country would
move closer to China.
But when Islamic State took
over the city of Marawi and
encouraged jihadists from
around the region to join the
fight, the Philippine military
Selfie Politics
The Democrats’ not unrea-
sonable takeaway from Vir-
ginia will be that identity poli-
tics works, so do more of it.
The Republicans’ political
identity, if the media consen-
sus is to be believed, is almost
wholly a function of some in-
choate white anger also di-
rected at “them.” Donald
Trump won the presidency be-
cause he mined white anger at
the margins against a different
“them” of immigrants and
globalization, meaning the
whole wide world is arrayed
against whatever it means to
be a “white male” in 21st-cen-
tury America.
The Republicans’ logical
takeaway from Virginia
should be that in competitive
election venues—such as the
suburban counties and con-
gressional districts of Florida,
Ohio, North Carolina or Wis-
consin—their political anger
has bigger numbers than your
anger. Intensity is interesting
but irrelevant. In politics,
smaller numbers still mean
you lose.
We are in the era of selfie
politics. In Donald Trump, we
have a selfie president. After
the Virginia gubernatorial loss,
the first nine words of Mr.
Trump’s tweet from Asia were:
“Ed Gillespie worked hard but
did not embrace me . . .”
For all the antipathy di-
rected at Mr. Trump, he in fact
speaks as the Everyman of
America’s selfie politics: Em-
brace Me! Self-interest, the old
normal in politics, has been
subsumed by a new normal of
insistent self-regard.
Running in the background
of selfieism, like a cellphone’s
was way up from four years
ago—by 23% in Fairfax County,
26% in Alexandria and Arling-
ton County, and 31% in Loudoun
County. That tilted the state’s
electorate Democratic by 11 per-
centage points, compared with
7 last year and 5 in 2013.
Trump deflects blame,
but the GOP lost
because voters wanted
to send him a message.
Exit polls showed that only
22% of Virginia voters strongly
approved of Mr. Trump’s job
performance, versus 47% who
strongly disapproved. Just 17%
said their vote was meant to
express support for Mr. Trump,
versus 37% who wanted to sig-
nal opposition.
Yet on the issues, Virginians
don’t uniformly disagree with
the president. In the exit polls
57% said Confederate statues
should be left in place. Still, in-
dependents are weary of Mr.
Trump’s tweets, divisiveness
and unpresidential rhetoric.
Democrats just want to sock
him politically in the nose.
Mr. Trump responded to the
defeat by saying Mr. Gillespie
“did not embrace me or what I
stand for.” This is presidential
self-deception. Mr. Gillespie
won 95% of Republicans, 7
points more than Mr. Trump
last year.
The president is spurring
Democrats to the voting booth
immediately turned to the U.S.
for help—apparently without
seeking Mr. Duterte’s permis-
sion. Washington responded
immediately by delivering sev-
eral hundred rifles, pistols and
grenade launchers.
More important, the U.S.
provided the Philippine army
with the eyes and ears re-
quired for victory. American
drones and aircraft flew over
America’s alliance
with Manila is strong
despite Duterte.
the city, giving Filipino sol-
diers a real-time picture of the
battlespace. The U.S. supplied
vital intelligence on the mili-
tant leaders. And U.S. forces
passed on hard-won lessons
from urban warfare in Iraq
and Afghanistan.
According to the Philip-
pine military’s chief of staff,
Gen. Eduardo Ano, American
OPINION
unseen operating system,
there is in fact a U.S. presi-
dency and a politics inhabited
by serious people who are
conducting foreign policy,
such as North Korea’s ICBMs,
or domestic policy, such as a
rewrite of the tax code. But
who has time for that?
The only thing the Demo-
crats’ self-categorizers can see
staring back at them from
their screens is whatever aw-
ful thing Donald Trump has
tweeted about . . . Me!
Trump, in fact, tweets
as the Everyman
of America’s new
politics: Embrace Me!
Mr. Trump, meanwhile, be-
lieves that his tweets animate
his base, or as he wrote re-
cently when a Twitter facto-
tum shut down his account for
11 minutes, “the word must fi-
nally be getting out—and hav-
ing an impact.”
But in Virginia, the butter-
fly effect of Mr. Trump’s tiny
tweets appears to be that it
produced historically high
turnout for the opposing can-
didate. We’ll never know
whether Mr. Trump is right
that Ed Gillespie would have
won had he fully embraced
“me,” or instead would have
lost by another 9 points.
It is true that in 2016 Mr.
Trump tapped into a winning
vein of identity politics, but
one may wonder if that strat-
egy is already losing its utility.
Even aggrieved white males
while letting his own base drift
away. His job approval in the
Real Clear Politics average is
38%, 8 points below his share
of the vote last November. In
other words, 1 out of 6 people
who cast ballots for Mr. Trump
disapprove of his performance.
This showed up in Southwest
Virginia and the Shenandoah
Valley—the commonwealth’s
Trump Country. Mr. Gillespie
carried these areas by impres-
sive margins, but turnout was
either down or simply not up
as dramatically as in the anti-
Trump suburbs.
Consider, too, the GOP mass
extinction in the Virginia House
of Delegates. Before Tuesday,
Republicans held 66 of the
chamber’s 100 seats. Now the
most likely outcome is a 50-50
tie. As of Wednesday, Demo-
crats had won 48 seats and Re-
publicans 47, with five contests
being recounted. Among the
GOP casualties were many in-
cumbents who toed the Trump
line. Fortunately for Republi-
cans, the state Senate isn’t up
for election until 2019. The
GOP’s 21-19 majority there is
likely to be the party’s only
foothold in Richmond.
Mr. Gillespie did win inde-
pendents statewide, 50.5% to
48.9%. He also poached some
Democratic voters in the Rich-
mond area, across the state’s
Southside, and even in the
northern suburbs. But Mr.
Northam pilfered Republican
votes in Tidewater areas that he
previously represented in the
state Senate for six years.
Therein may be the only
support “tilted the balance”
against the Islamic extremists.
Even Mr. Duterte reluctantly
acknowledged America’s criti-
cal role in the fight to retake
Marawi, which claimed more
than 1,000 lives.
Assistance from China and
Russia was less than impres-
sive. At the height of the con-
flict, China donated 6,000 ri-
fles and nine million rounds of
ammunition worth $7.3 mil-
lion. But the Philippine mili-
tary prefers U.S.-manufac-
tured arms and immediately
turned over half the Chinese
weapons to the police.
In late October, Russia gave
the Philippine military 5,000
Kalashnikov rifles, four trucks
and a few thousand steel hel-
mets. These were of little value
because Mr. Duterte had de-
clared an end to hostilities in
Marawi a few days earlier.
Although Manila has estab-
lished tentative defense ties
with Beijing and Moscow, the
Philippine security establish-
ment clearly prefers to stay
don’t much care for being
someone’s identity group. You
don’t hear much about this
swath of Trumpian voters any-
more. Media anthropologists
have stopped visiting their
tribal villages in Pennsylvania
and Michigan.
But a Wall Street Journal/
NBC poll this week of “Trump
counties,” where collectively
Mr. Trump defeated Hillary
Clinton 57% to 37%, found his
disapproval rating touching
50% this month. That is an-
other sick canary.
Meanwhile, the anti-Trump
and Never-Trump factions re-
main in a state of 24/7 parox-
ysm. Democrats may conclude
that the path back to power is
with a coalition of people in a
lather over Mr. Trump, and
they may be right. The selfie
president’s angry tweets could
create a tsunami of even an-
grier selfie voters, like those
in Virginia, that will wash over
GOP candidates.
The Democrats can self-de-
struct. The identity politics in
which they’ve become mired is
neurotically combustible, with
the categories constantly de-
nouncing nominal friends for
arcane offenses such as “cul-
tural appropriation.” Late in
the Virginia campaign, when
Mr. Northam waffled on em-
bracing sanctuary cities, a ma-
jor progressive group branded
him a “racist.” The party’s iden-
tity police never sleep.
The Republicans have a
Twitter problem, but the Dem-
ocrats have a crazy-left prob-
lem. Voters will get more
chances to take their pick in
this race to the bottom.
Write henninger@wsj.com.
good news from Virginia for
the GOP. Mr. Northam is a Gulf
War veteran and pediatric neu-
rologist who voted for George
W. Bush twice and who once
toyed with becoming a Republi-
can. He appealed to indepen-
dents in a way that Trump-hat-
ing left-wing Democrats can’t.
As the campaign progressed,
Mr. Northam put aside attacks
on Mr. Trump and pledged to
work with the president on be-
half of Virginia. He flip-flopped
on sanctuary cities, abandoning
his support and coming out for
cooperation with federal immi-
gration authorities.
When Democrats pick their
candidates for the U.S. House
and Senate in 2018, they are
unlikely to choose many Ralph
Northams. Most Democratic
activists are insisting the party
nominate only ideologically
pure candidates in the mold of
Bernie Sanders and Elizabeth
Warren.
Nevertheless, the results
Tuesday from Virginia should
set off alarm bells for Republi-
cans. Mr. Trump’s poor stand-
ing threatens their congressio-
nal majorities. He must try to
improve his numbers, and the
GOP must prepare itself for an
extraordinarily tough battle.
For Republican officeholders,
this is life in the Trump presi-
dency’s shadow.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
close to the U.S. Most Filipi-
nos are wary of China because
of its bullying in the South
China Sea, where the two
countries have serious territo-
rial and maritime boundary
disputes. Chinese forces have
obstructed the resupply of
Philippine outposts and built
military bases on reclaimed
land.
Since Mr. Duterte shelved a
July 2016 legal judgment on
the dispute that favored Ma-
nila, tensions have been in
abeyance. But the conflict will
inevitably flare up again.
The Marawi siege showed
that the U.S.-Philippine alli-
ance remains strong despite
Mr. Duterte’s rhetoric. The
U.S. took a longer view of the
relationship and honored its
commitments. Mr. Trump can
point to that record to show
his commitment to America’s
security partners in Asia.
Mr. Storey is a senior fel-
low at the ISEAS-Yusof Ishak
Institute in Singapore.
Thursday, November 9, 2017 | A15
BOOKSHELF | By Andrew Stark
Awe in Search
Of Understanding
The Meaning of Belief
By Tim Crane
(Harvard, 207 pages, $24.95)
C
an atheists ever attain the kind of spiritual uplift that
religion provides? Can this mundane world ever
deliver the serenity offered by genuine belief in an
eternal world beyond?
Yes, say many nonbelievers. The atheist thinker Sam
Harris claims that he has attained (with intermittent boosts
from psychotropics) a “beatific” and “egoless communion”
with the “beauty of nature,” one that gives him a comfort
and joy akin to a certain kind of religious feeling. Perhaps
many of us—in moments when we are confronted with
profound beauty—experience an awe of the cosmos so
intense that we perceive ourselves merging into it, a part
of the whole. But it will probably be a fleeting moment;
most of us will find it difficult to achieve a steady sense of
egoless communion in the
drabness and drudgery of
everyday life.
In “The Meaning of Belief,”
the philosopher Tim Crane is
less eager to investigate the
religious-like feelings that
atheists may experience than to
challenge the assumption that
belief brings consolation, let
alone jubilation or rapture.
What defines religious belief?
For Mr. Crane, it’s the conviction
that (in William James’s words) an
“unseen order” governs the universe—
an order that is beyond cognition,
perception or any other human faculty to fully
grasp. This otherworldly aspect is one reason why belief
must be accepted in a leap of faith, however much reasoning
may be directed toward it afterward. An unseen order, Mr.
Crane says, is common to all religious traditions: It is
something beyond “what is encountered in experience and
science . . . beyond our finite human understanding.”
The believer thus experiences belief not so much as
truth but as meaning: an ultimate meaning that he can’t
specify because it is, by definition, beyond his ken. But a
belief in meaning, Mr. Crane says, “is not always something
that makes the world easier to understand,” though
atheists often attack religion for its anodyne simplicity and
easy comforts. “In fact,” Mr. Crane writes, belief “can make
the world harder to understand—this is one lesson we can
draw from the problem of inexplicable suffering and evil.”
Or, one might add, death, another aspect of reality that
may confound the capacities of even the most ardent
believer. Only the saintly, Mr. Crane implies, can manage
the religious struggle for comprehension successfully. For
the ordinary believer, recurrent doubt will prevent “the
kind of unproblematic solace in the face of death that many
atheists think is part of the point of religious belief.”
Though nonbelievers fault religion for its
comforting simplicities, belief doesn’t always
make the world easier to understand.
Mr. Crane has other sharp observations to make about
religion. Not for him the fashionable idea that one can mix
and match to taste—a pinch of Christianity with a dollop of
Judaism topped off with a drizzle of Mahayana Buddhism.
Religious belief, he says, requires the repeated performance
of rituals within an established communal setting. This
stricture and others—e.g., the need to stay loyal to one’s
faith in the way “a faithful friend sticks with you in good
times and bad”—seem to place religion out of the grasp of
many who, these days, think of themselves as believers.
Taking Mr. Crane’s eat-your-spinach view of religion in
the context of recent philosophical writing, you’d almost
think that the original question should be turned on its
head. Can believers, agonizingly wrestling with ultimate
meaning and the quest to understand it, ever achieve the
kind of Age of Aquarius uplift that atheists like Mr. Harris
access simply through the awe they feel in the presence of
natural beauty?
The answer would seem to be “no” or “only rarely,” but
there’s a missing middle between these poles undiscussed
by Mr. Crane: wonder. It is here that incongruent world-
views may overlap. As a noun, a wonder is something
worthy of awe. As a verb (“I wonder”) it signifies the quest
to understand. Both may be elements of religious experi-
ence, of course. But it’s precisely in taking the awe of which
Mr. Harris speaks, and marrying it to the quest to under-
stand that Mr. Crane discusses, that many scientists say
they experience a kind of religious exhilaration. Awe, as the
biologist Richard Dawkins tells us—whether provoked by
something beautiful like a rainbow or unnerving like a black
hole—is what instills in scientists their thirst to understand.
For scientists, Mr. Crane emphasizes, meaning follows
understanding, and not the other way around. They test
hypotheses and assumptions (whether empirically or
through mathematical reasoning) before accepting whatever
meaning they discover. And meaning, again, is the operative
word. As Mr. Crane notes, scientists are never quite sure that
they have hit on the truth. What they discover is, rather,
formulations that make ever better sense of reality—until
new formulations prove to be better still. Religion and
science, Mr. Crane argues, are fundamentally different
enterprises, so much so that, contrary to what some militant
atheists hope, science will never replace religion. Even so,
they need not be seen as utterly alien realms, without any
chance of rapport or mutual sympathy.
There’s another pertinent word that Mr. Crane neglects:
numinous. Rooted in the Latin “numen,” meaning divinity,
it refers to the halo of impenetrable meaning we sense
whenever we feel moved by nature, whether in its jaw-
droppingly awesome forms or in the quietly everyday.
Einstein spoke of “something we cannot penetrate.” What
is that ineffable “something”? It’s the conviction of an
ultimate meaning of the sort Mr. Crane discusses but not
one that abides in an inaccessible world beyond. Instead it
emerges, as a whole does from the sum of its parts, out of
the sun and stars and sea and sierra: the very things into
which Age of Aquarius types hope themselves to somehow
merge.
Scientists, and not just philosophers, are helping bring
nonbelievers closer to believers. And that’s a good thing.
After all, as Mr. Crane says, they’re going to be together for
a long time: perhaps an eternity.
Mr. Stark is the author of “The Consolations of
Mortality: Making Sense of Death.”
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
A16 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

The Anti-Trump Wave Is GOP Tax Trying to Change Demographics?

R
epublicans took a thorough beating in the polls. A Trump majority coalition doesn’t Regarding your editorial “Half a gages over $500,000 means that
Tuesday’s elections, and no one should seem to be forming. Tax Reform” (Nov. 3): The state and homes over $625,000 can no longer
local tax deduction (SALT) is a great, be purchased with 20% down and a
sugar coat the results because the voting Mr. Trump’s media allies are blaming Mr.
great feature of this tax bill. Making fully deductible mortgage. Do you
was confined to a few states. Gillespie for not being Trum- SALT nondeductible raises the total think your house is worth more than
Democrats came out in droves Democrats come out in pian enough, but days before marginal rate (federal plus state) on $625,000? Not anymore.
to send a message of opposi- droves and the GOP is the election former White high earners. Say the top federal rate JAMES TALEVICH, CPA
tion to Donald Trump, and GOP House aide Steve Bannon was remains at 39.6%. In California, where Los Gatos, Calif.
candidates were swamped in caught in the undertow. saying Mr. Gillespie might win the top state rate is a ridiculous
the undertow. While the cliché because he had endorsed 13.3%, the total rate will jump from Can Americans ever hope the tax
is not to read too much into an Trumpian themes of crime 47.6% (for those itemizing) to an ex- code will focus on its primary pur-
off-year election, this defeat was broad and deep and immigration. orbitant 52.9%. States like New York, pose—funding government—instead
enough to signal that Republicans will struggle The truth is that Mr. Gillespie tried to span the New Jersey and California will face of income redistribution and social
to hold Congress next year. GOP coalition by campaigning on traditional political pressure to lower their state engineering, with everyone contribut-
income taxes. States that refuse risk ing something, instead of nearly half
The Democratic sweep in New Jersey and es- themes of tax cuts and education reform while
losing their wealthiest residents to the filers paying nothing? Probably
pecially Virginia is in that sense a mirror image running against illegal immigration and sanctu- other states. Either way, there will be not, as long as power-hungry politi-
of what Republicans did in 2009 in opposition ary cities. The media portrayed the latter as divi- a downsizing of state government in cians are addicted to campaign dona-
to Barack Obama. Chris Christie won in the Gar- sive and racist, but note that Mr. Northam came places where it is now most bloated. tions from lobbyists supporting spe-
den State that year and after two mostly failed out against sanctuary cities late in the campaign. GEOFFREY NUNN cial tax breaks.
terms Democrats are taking Trenton back under Mr. Gillespie did the best he could to bridge the Palm Harbor, Fla. DONNA ROOK
public-union control. Governor-elect Phil Mur- GOP divide in a Democrat-leaning state, but he Colorado Springs, Colo.
phy, a former Goldman Sachs millionaire, is a couldn’t overcome the anti-Trump wave. It appears that many senior citi-
360-degree progressive who wants to raise The message for Republicans going into 2018 zens will be hit with higher income I haven’t seen the Journal give the
taxes, increase spending and in the process will is that they are in trouble in the swing suburban taxes. In 1983 Congress started taxing real reason for the bill at this time.
Social Security benefits of retirees The GOP correctly understands well-
drive even more taxpayers from the state. districts where the House will be won or lost.
whose income plus one-half of their heeled Republicans on the liberal
The more consequential message came from Republicans hold seats in 23 districts where Social Security benefits exceeded coasts are of little value to the party.
Virginia, where Democrats swept the major Mrs. Clinton also won. One is the 10th Congres- $32,000. The purpose was to tax The solution? Create significant in-
statewide offices and may have picked up the sional District in North Virginia held by the esti- those with generous pensions or large centives to force migration to those
17 seats they needed to take over the House of mable Barbara Comstock that includes much of investment income, i.e., the rich. It states or districts where a Republican
Delegates. Ralph Northam, the lieutenant gover- Loudoun County. Democrats will run as a check was estimated that about one in 10 vote actually counts.
nor who beat a Bernie Sanders acolyte in the on Mr. Trump, and Republicans need a response retirees would be affected by this tax. For the record, I am a coastal Re-
primary, spent most of his time and money beyond a Nancy Pelosi fright mask. Since they didn’t index the income publican who is caught squarely in
wrapping Donald Trump around Republican Another message is that the GOP success threshold, now more than one in the crosshairs of this tax increase.
candidate Ed Gillespie. down-ballot during the Obama years can go rap- three retirees have their benefits JOHN LEIBEE
Republicans can take little comfort that Hil- idly in reverse. That’s clear from the GOP rout taxed. Rumson, N.J.
I did a quick calculation using the
lary Clinton defeated Mr. Trump by five points in the Virginia House of Delegates. But there’s
proposed tax tables and found that I This bill is akin to the GOP’s Brexit
in 2016. Mr. Gillespie lost by nine and he badly also evidence from Rob Astorino’s defeat as ex- would owe almost five times what I from every blue state in the country.
underperformed in Northern Virginia, home ecutive of Westchester County in New York, a estimate my 2107 taxes will be if this It’s mean-spirited and intended to
to federal employees and white, college-edu- state Senate seat in Washington that gives Dem- plan were in effect this year. punish those of us with the misfor-
cated suburbanites who dislike Mr. Trump’s ocrats a majority, and a GOP incumbent mayoral BOB MORTON tune of living in high-tax-and-spend
polarizing politics by insult. In his 2014 near- loss in Manchester, N.H. American politics is Urbandale, Iowa states that didn’t vote for the
miss Senate race, Mr. Gillespie won pivotal more national than ever, and if Mr. Trump’s ap- Tweeter in Chief. After today there is
Loudoun County by 456 votes. On Tuesday he proval rating stays at 38% next year, the GOP’s You ask, “Does anyone think that a no longer any overlap in my values
lost it by 23,432. state gains could wash away. mid-level manager at J.P. Morgan de- and the Republican leadership’s. Want
Mr. Trump tried to distance himself from the i i i serves a subsidy to raise children?” to “pay” for tax cuts? Here’s a novel
defeat by tweeting from Asia that “Ed Gillespie Mr. Trump won’t change, so the only GOP an- Absolutely, when he or she loses their idea: Cut spending. That was the Re-
SALT deduction. Why is the editorial publican Party I was attracted to.
worked hard but did not embrace me or what tidote to a Democratic wave is legislative ac-
board so intent on punishing middle- HUTCH PEGLER
I stand for. Don’t forget, Republicans won 4 out complishment. Democrats will be motivated to class salarymen (and women) who re- Darien, Conn.
of 4 House seats, and with the economy doing vote no matter what Congress does. But Repub- side in places such as Long Island
record numbers, we will continue to win, even licans will stay home unless the House and Sen- and the San Francisco Bay area, so A question for Congress: With the
bigger than before!” Sometimes Mr. Trump’s ate fulfill their campaign promises. This means that the uberrich can avoid paying es- elimination of the medical-expense
comments are so transparently false you won- passing a pro-growth tax reform that will accel- tate taxes (on amounts exceeding $22 deduction, must we mortgage our
der if he’s laughing as he writes. erate the expansion. Republicans should also re- million) and the AMT? home to see some tax relief for the
Earlier on Election Day he tweeted support alize how much damage they have done to them- Yes sir, we blue states sure are cost of uninsured medical/dental/ex-
for Mr. Gillespie, whom he endorsed. The victo- selves by failing to repeal even a part of sucking poor Alabama, West Virginia pense and long-term-care insurance?
ries in GOP-leaning House districts Mr. Trump ObamaCare. and other red states dry. Enjoy the The proposed tax plan penalizes
More broadly, the election shows that the schadenfreude as some of this coun- the ordinary family, not to mention
cites were also far closer than they should have
try’s most productive workers might those facing catastrophic medical
been. Mr. Trump is motivating Democrats to American system of democratic checks and bal- have to pay for this absolutely stupid issues.
vote while his divisive style and rhetoric are di- ances is working. All the media and academic piece of proposed legislation. This JOANNE YENDLE
viding Republicans. A Trumpian candidate panic about looming fascism has been nonsense. isn’t your father’s GOP. Woodway, Texas
nearly beat Mr. Gillespie in the primary and re- The tides of politics ebb and flow, and Tuesday’s JAY BUKOWSKI
fused to endorse him until the end of the cam- results show that the Trump years are likely to Mill Valley, Calif. The Trump tax proposal would
paign as Mr. Gillespie appeared to be gaining in be good for Democrats. eliminate the itemized deduction
If there were ever a credit to sup- for medical expenses now set at

The College Tax-Reform Tantrum

port, it would be the child tax credit. over 7.5% of adjusted gross income.
It helps raise children out of poverty I am 90 and can’t walk, and my
and provides a well-deserved break medical expenses (helpers and

C
to hardworking parents. The time equipment) are tremendous. Talk
olleges have been rocked by student pro- borrowers who become government and non-
and resources parents pour into about mean-spirited.
tests, but now they’re launching a dem- profit workers. Cancelled debt under other loan- their children should be encouraged, HERMAN MORRIS
onstration of their own in Washington forgiveness programs is typically taxable, but so Republicans should keep it in the Plano, Texas
against reductions to their tax not for this privileged class. tax bill.
subsidies. They’re throwing a Higher ed howls at the All of these subsidies have CHRIS JEUB
tantrum because they may, at modest cut in subsidies failed to make college more af- Monument, Colo.
long last, have to rationalize fordable. Colleges instead The 702 Program Really
their spending. in the House bill. pocket the subsidies and jack The big losers in the GOP tax plan
Amounts to Bulk Snooping
The IRS code contains up tuition, which they steer are homeowners with big mortgage
about a dozen individual tax into bloated administration and property tax payments, mostly Regarding David Medine and Patri-
subsidies for higher education, all with disparate and facilities. Over the last decade, tuition has Republicans, and the winners are cia M. Wald’s “Reform Surveillance,
renters—disproportionately Demo- Don’t End It” (op-ed, Oct. 30): The au-
rules that the IRS describes in a 95-page bro- risen at an annual inflation-adjusted 2.4% at pri-
crats. Betraying your base is an odd thors’ argument falls apart almost im-
chure that makes academic prose look lucid. Par- vate, and 3.5% at public, four-year colleges. Soar- strategy. Nondeductibility of mort- mediately when they state that the
ents and students can claim three different tax ing college costs are the main reason student 702 program only has 100,000 “tar-
credits, deduct loan interest, and receive an ex- debt has doubled since 2009 to $1.3 trillion. Stu- gets” and doesn’t, therefore, consti-
emption for some discharged loans and tuition dents are also taking longer to finish, perhaps tute indiscriminate bulk surveillance.
assistance. in part because taxpayers are footing much of Remember Broken Promises However, if the 100,000 targets com-
These dispensations are layered on top of the tab. To Our Friends the Kurds municate with 30 others, who in turn
low-interest federal loans (4.45% for under- Government grants, loans and tax credits also communicate with 30 others, then you
grads), grants and loan-forgiveness programs. give students less reason to work during school. Regarding Ruth Wisse’s “When have potentially 90 million people un-
The Congressional Budget Office estimates that Alternatively, their parents can write off their Britain Renewed the Promise to the der surveillance. Face it, this is bulk
Jews” (op-ed, Nov. 2): Just as the surveillance.
the government will lose about 25 cents on every college costs. This may help explain why labor-
British started the process for the JAMES LOVELY
dollar of subsidized Stafford loans. force participation over the last decade has de- Jewish people to have their own Lakeland, Fla.
Colleges that have been riding this gravy clined by 5.4 percentage-points among Ameri- state with the Balfour Declaration,
train are howling that Republican House reforms cans age 16 to 24 compared to 1.6 percentage- the Kurdish people were also prom-
repealing and consolidating their tax carveouts points from 25 to 54. ised a home. The first was the Sykes- Sometimes Responsibility
will raise tuition. But stripping down the subsi- College leaders also complain that the House Picot Agreement in 1916. This prom-
dies might make students and parents more bill doubles the standard deduction, which ise was then confirmed with the
Belongs to the Afflicted
aware of costs and impel colleges to curb unnec- means fewer middle-income households will Treaty of Sevres in 1920. It didn’t In response to Dee Tezelli’s ques-
essary spending. itemize. They say this will reduce charitable giv- take long (1923 with the Treaty of tion: “Who will be deemed culpable if
Take the three tax credits, which the House ing and alumni donations. If that’s true, they re- Lucerne) for the western powers to the patient who is obese . . . ex-
bill proposes to combine into a partly refundable ally need to work on alumni enthusiasm. break their promise and place the pires?” (Letters, Nov. 1). That is easy:
Kurdish people in the hands of Tur- the patient. We shouldn’t live in a so-
$2,500 American Opportunity Tax Credit that Some public colleges have also groused that
key, Iraq and Syria. ciety where people do what seems
can be claimed for up to five years. This simplifi- the elimination of the state and local deduction The Kurdish people have been one right in their own eyes but point fin-
cation would yield about $17.5 billion in revenue could discourage tax increases in states like Con- of the mainstays in our fight against gers at others for the consequences
over 10 years and reduce the enticement for stu- necticut and New York. They’re worried that ISIS and all of its associated groups. of those choices.
dents to drag out their education. The Lifetime Democrats will instead cut funding for public The Kurds are one of the most orga- DAN MELSKI
Learning Credit, which is part of the consolida- colleges. nized and successful groups in the Princeton, N.J.
tion, can now be claimed indefinitely. They have a better point that the GOP’s 20% Middle Eastern world. Without the
Parents and students would also no longer be excise tax on compensation of nonprofit employ- Kurds we would have had to sacrifice
allowed to write off tuition (cost: $3.9 billion in ees that exceeds $1 million is arbitrary and med- many more men and would have had Pepper ...
2015) and interest on student loans ($13.6 bil- dles in wage-setting that Congress shouldn’t do. increased equipment costs. Instead of
support, we have barely provided
And Salt
lion), which receive singular treatment in the tax The House also slaps a 1.4% excise tax on invest-
them with proper weaponry for this THE WALL STREET JOURNAL
code. Interest on other non-mortgage personal ment income of private college endowments
current fight and have only rewarded
loans is subject to taxation. Individuals have also (which private foundations must also pay) that them with broken promises.
been able to claim these above-the-line deduc- exceed $250,000 a student. We’d prefer ending The future for the Kurdish people
tions even if they don’t itemize. the charitable deduction rather than taxing en- isn’t looking much better at present.
The GOP bill would also tax “tuition waivers” dowments, but as endowments grow so will po- If this is the way we treat our
that colleges often use to pay grad students in litical interest in taxing them. friends, is it any wonder we have so
kind. These effectively let colleges employ teach- i i i many enemies?
ing assistants as indentured servants and have If they’re really concerned about student wel- WILLIAM F. HINESER
contributed to a surfeit of graduate degrees in fare, colleges could make up for the decline in Arvada, Colo.
fields for which there are few jobs beyond aca- tax subsidies by scaling back spending and tu-
demia. Maybe colleges could try paying TAs a ition. Purdue University President Mitch Daniels Letters intended for publication should
better wage. has held tuition flat since 2012, so it can be done. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
The reforms would continue to encourage College leaders howl that Republicans are or emailed to wsj.ltrs@wsj.com. Please
thrift by letting parents sock up to $28,000 an- squeezing students to pay for corporate tax cuts. include your city and state. All letters
nually in 529 college savings accounts that grow But college graduates would benefit from a sim- are subject to editing, and unpublished
tax free. However, it’s unfortunate that the plan pler tax code with fewer distortions that pro- letters can be neither acknowledged nor “Thanks, but I’m trying to cut
returned.
retains a tax exemption for discharged debt of duces more growth and higher wages. back on personal crises.”
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.
Don’t Rebuild the Surveillance ‘Wall’
By Michael B. Mukasey
W
hat may be the U.S.
government’s most
valuable authority to
protect citizens from
terrorism and other
national-security threats is due to
expire at the end of the year—Sec-
tion 702 of the Foreign Intelligence
Surveillance Act. The good news is
that Congress is considering propos-
als to renew that law. The bad news
is that many of those proposals in-
clude burdens that would radically
diminish its effectiveness. Worse,
some of these ill-considered propos-
als come from people who claim to
support the law.
Proposals to amend FISA’s
Section 702 would tie the
hands of investigators, as
in the days before 9/11.
Section 702 of FISA allows the
government to monitor electronic
communications overseas between
foreigners. More than a dozen for-
mer top-ranking members of the
U.S. intelligence community—direc-
tors of national intelligence and
heads of the Central Intelligence
Agency, National Security Agency
and other agencies, from adminis-
trations of both parties—attest in an
October letter to Congress that Sec-
tion 702 “has helped save lives in
the U.S. and abroad by providing in-
formation to law enforcement that
was used to interdict planned ter-
rorist operations” and helped save
The Middle-Class Tax Cut That’s Really a Hike
By Jason Furman
L
ast week Speaker Paul Ryan
introduced the House GOP tax
bill, claiming it would “deliver
real relief for people in the middle.”
Specifically, he said a “typical fam-
ily of four would save $1,182 a year
on their taxes.” Mr. Ryan reiterated
the number four more times during
a three minute briefing. This is
true, but only for the first year of
the tax bill. After that the story gets
grimmer.
Under the House plan, a
family making $59,000
would pay more in 2024
than they did last year.
The cuts Mr. Ryan trumpeted
would phase out over time, as David
Kamin, a law professor at New York
University, has shown. By 2024 Mr.
Ryan’s hypothetical middle-class fam-
ily making $59,000 would actually
face a small tax increase. By 2027 that
increase would grow to more than
$450. Add in the effects of reducing
or eliminating tax benefits many mid-
dle-class families now claim—for child
care, major medical costs and higher
education—and the “real relief”
promised by Mr. Ryan starts looking
more like a burden. Using the Ameri-
can Enterprise Institute’s TaxBrain
My Grandparents Saw Light, Even After the Dark of Kristallnacht
By David Stras
T
his week marks a cruel yet
hopeful anniversary. On Nov.
9-10, 1938, a two-day period
now known as Kristallnacht, Nazis
plundered Jewish homes, schools
and businesses across Germany. My
grandfather, only 14 at the time, re-
called seeing Jewish stores looted,
books burned, and signs saying “kill
the Jews.” Two days later, he re-
ceived a letter from his family saying
that his father, my great-grandfa-
ther, had been taken to Dachau,
which we now know was the equiva-
lent of a death sentence.
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
Gerard Baker
Editor in Chief
Matthew J. Murray
Deputy Editor in Chief
DEPUTY MANAGING EDITORS:
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett,
Washington; Andrew Dowell, Asia;
Christine Glancey, Operations;
Jennifer J. Hicks, Digital;
Neal Lipschutz, Standards; Alex Martin, News;
Shazna Nessa, Visuals; Ann Podd, Initiatives;
Matthew Rose, Enterprise;
Stephen Wisnefski, Professional News
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
Suzi Watford, Marketing and Circulation;
Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
“U.S. and allied military lives by pro-
viding warning of impending at-
tacks, ambushes, and suicide bomb-
ers.” I was one of the signers.
Why the urge to limit Section 702?
The law focuses on obtaining the
email and voice communications of
foreigners—“non-U.S. persons,” in the
legal parlance—to gather information
relevant to foreign intelligence. But
those communications at times are
with U.S. persons, whose messages
thus will be captured incidentally. The
law bars the purposeful gathering of
information on U.S. persons in the
guise of trying to gather foreign intel-
ligence, known as “reverse targeting.”
Once in an intelligence agency’s data-
base, however, these incidentally
gathered messages of U.S. persons
may be included in searches as part
of another investigation.
Some describe such a query of
the database as a “backdoor search”
and believe that because it does not
require a warrant, it violates the
Fourth Amendment. Every court
that has examined the question has
disagreed.
Barring the use of these queries
in criminal investigations would
bring back the pre-9/11 “wall” be-
tween national-security and criminal
investigations, which the Clinton ad-
ministration put in place in the be-
lief that FISA required it. It was that
wall that kept FBI agents from get-
ting intelligence information that
would have helped them find Khalid
Al Mihdhar and Nawaf Al Hazmi,
two of the 9/11 hijackers, in August
2001. It turned out, based on a
post-9/11 ruling of the Foreign Intel-
ligence Surveillance Court of Review,
that the statute didn’t require the
wall. The bureaucrats who erected it
model, economist Ernie Tedeschi esti-
mates the plan would result in more
than 20 million households sending
larger checks to the Internal Revenue
Service in 2018. By 2027 more than
60 million households would be pay-
ing higher taxes.
This isn’t surprising given that, in
the aggregate, the House bill raises
taxes on individuals. Over 10 years
the plan cuts taxes by $1 trillion on
businesses, $230 billion on individu-
als and $170 billion on estates, ac-
cording to the Joint Committee on
Taxation. While the business- and es-
tate-tax cuts grow after that, the in-
dividual tax cuts shrink—disappear-
ing entirely in 2024 and transforming
into a net tax increase of $28 billion
in 2027.
This is partly due to the neces-
sity of holding down the bill’s head-
line costs by sunsetting the family
tax credit. This budget gimmick
means the ultimate cost of the
House plan would exceed the
claimed $1.4 trillion. But even if the
family tax credit were made perma-
nent, the net individual income tax
increase would only be delayed by a
few years. The number of house-
holds facing a tax increase would
fall only slightly.
As a matter of straightforward ac-
counting, this bill will not provide
middle-class families with the indi-
vidual income tax cut President
Trump and Speaker Ryan unambigu-
ously promised. A complete analysis
of the effect this bill would have on
It has never been easy to come to
grips with my family history. My
aunt recently completed a family
tree going back centuries; many of
its branches end abruptly in the late
1930s and early 1940s. These names,
no more than entries on a piece of
paper to me, represent my heritage,
my family—much of it lost in the
hollow corridors of concentration
camps. I can only imagine how my
life would have been different had
my grandparents, aunts, uncles and
cousins never experienced the merci-
less brutality of the Holocaust.
My grandparents shared bits and
pieces of their experiences with me
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
Anna Sedgley, Chief Operating Officer & CFO;
Katie Vanneck-Smith, President
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
thought mistakenly that they were
protecting civil liberties.
Still others would require a war-
rant from a FISA court before the
database is queried with the name of
a U.S. person in a criminal investiga-
tion. Writing on these pages re-
cently, David Medine and Patricia
Wald, who served on the Privacy and
Civil Liberties Oversight Board, cite
fears stemming from a newspaper
report that the Section 702 database
includes communications from which
it is possible to draw a personal por-
trait of innocent Americans. But they
concede that neither they nor the
Not the Kindest Cut
Tax change for a married couple with two children making $59,000
$600
400
200
0 press conference. Unfortunately, the
–200
–400
–600
–800
–1,000
–1,200
’18 ’19 ’20 ’21
Source: David Kamin, New York University Law School
middle-class households would also
incorporate the economic impact
and incidence of two other elements
of the House bill: a $1 trillion reduc-
tion in business taxes and the in-
crease in the debt needed to finance
the plan, which will likely be even
larger.
Proponents of the tax bill argue
that it will lead to dramatic increases
in wages. Such claims are dubious.
Mr. Trump’s Council of Economic Ad-
visers has claimed that a $4,000 per
household raise constituted the “very
conservative . . . lower bound” of the
wage effects stemming from the bill’s
corporate rate cut. This claim has
since been rejected by six of the
economists the council cited to make
as I grew up, careful to say only as
much as they thought I could handle.
One day, while riding around on my
grandfather’s lap in his electric
wheelchair, I asked him, “What is
that number on your arm?” Trans-
forming a physical characteristic de-
signed to make him less human into
a source of feigned pride, he told me
it was a number that made him
unique because he was the only per-
son in the world who had it. Only
later, as I approached my teenage
years, did my grandfather tell me
that a fellow prisoner tattooed the
number—117022—on his left forearm
when he arrived at Auschwitz.
Notable & Quotable
From “Bergdahl Was on Trial, but
So Were His Commanders” by
Thomas H. Lipscomb, RealClearPoli-
tics.com, Nov. 8:
[Bowe] Bergdahl’s defense coun-
sel, Eugene R. Fidell, noted the prej-
udicial remarks of President Trump,
the commander-in-chief at the time
of the Army sergeant’s trial for de-
serting his post in Afghanistan in
2009. But President Obama’s Rose
Garden ceremony with Bergdahl and
his parents after the soldier’s 2014
release by the Taliban—which fol-
lowed a prefatory statement by Na-
tional Security Adviser Susan Rice
lauding Bergdahl for serving his
country “with honor and distinc-
tion”—can be seen as just as prejudi-
cial in exoneration as Trump’s was in
condemnation.
Thursday, November 9, 2017 | A17
ISTOCK/GETTY IMAGES
oversight board have been able to
corroborate that claim.
These friends of the program over-
look the history of investigations con-
ducted since Section 702 went into
effect and seem to misunderstand the
very nature of investigations. There is
no evidence that there has ever been
a purposeful violation of Section
702’s terms, or any review of the kind
of detailed information that newspa-
per reports suggested.
Further, an investigation is a search
for information, not a search to con-
firm information already in hand. A
search for a “hit” on a database is
’22 ’23 ’24 ’25 ’26 ’27
THE WALL STREET JOURNAL.
its argument. Every specific analysis
by a right-leaning economist or think
tank that I am aware of has come in
below the CEA’s lower bound.
Beyond the wage claims, however,
projections from conservative econo-
mists either ignore or don’t address
adequately the macroeconomic ef-
fects of higher debt stemming from
the loss of revenue to the federal
government due to the tax cuts. The
costs of reduced capital accumulation
and increased foreign borrowing will
reduce national income over time.
The Penn Wharton Budget Model—
run by Kent Smetters, who helped
build the dynamic scoring models
used by the George W. Bush Trea-
sury—finds the small wage boosts
Four years ago, on the 75th anni-
versary of Kristallnacht, I spoke pub-
licly about my grandparents’ experi-
ence for the first time. Standing in
the rotunda of the Minnesota Capitol,
‘What is that number
on your arm?’ I asked
one day, too young to
have heard of Auschwitz.
I read my grandfather’s account of
being transported on a freight car to
Auschwitz, stripped of civilian clothes
upon arrival, and forced to run naked
through a cold April rain.
My grandfather had the uncom-
mon gift of being able to see the
light of human generosity in the
midst of near-total darkness. He re-
counted his experience at the camp
hospital, sick and malnourished:
German nurses reported to their
superiors that they had discharged
my grandfather when they in fact
transferred him to another room
until he was able to recover. Their
kindness, he said—which they un-
dertook at great risk to their own
lives—saved him from the gas
chamber.
My grandfather again saw the
best and worst in humanity after he
agreed to participate in an escape
plot. The guards captured three co-
conspirators, who were hanged in
the middle of the camp as a prisoner
orchestra played German songs to
accompany the spectacle. The men
among the least intrusive inquiries
possible, and is often made at the
outset of an investigation. A show-
ing of probable cause to believe that
evidence will be found, which is
what it takes to obtain a warrant, is
nearly impossible at that stage—or
would require more-intrusive tech-
niques to obtain facts, which would
compromise privacy much more
than a mere database search.
To the extent that any tightening
of procedures under Section 702 may
be useful, it would be to require per-
missions not when a database is
searched, but when evidence from in-
tercepted communications is to be
used—for example, as part of a pre-
sentation to a grand jury to secure an
indictment, or to a judge to get a
search warrant, or to a trial jury to
get an indictment. At that point, the
permission of a senior officer of the
Justice Department could be secured.
Such a requirement would ensure that
neither privacy interests nor sensitive
sources of intelligence-gathering are
needlessly compromised.
Returning to pre-9/11 procedures
by limiting Section 702 authority is
likely also to take America back to the
post-9/11 anguish of investigations
into why available intelligence was
not used, why dots were never con-
nected. This time the fault would lie
not with the intelligence community
but with lawmakers who exploited
mistrust of government to frustrate
the collection and use of intelligence
information—a function that only
government can perform, and that it
must perform, if we are to survive.
Mr. Mukasey served as U.S. attor-
ney general (2007-09) and a U.S.
district judge (1988-2006).
produced by the House bill could dis-
sipate over time, eventually becom-
ing small wage declines.
More important, the debt financing
will likely have to be paid for through
tax increases or benefit cuts on the
same middle-class families Mr. Ryan
surrounded himself with at last week’s
cost of this ill-advised reform will
eventually be paid by future genera-
tions of American taxpayers.
Winners and losers are inevitable
in any serious overhaul of the tax
code. The House plan contains some
commendable elements—like limiting
the mortgage-interest deduction—
that could be part of a sensible re-
form and spur economic growth. But
by raising taxes on middle-class fam-
ilies and delivering so many of the
long-run benefits to households mak-
ing more than $1 million, the House
plan as currently constructed will
not deliver the broad-based relief Mr.
Ryan is promising.
Reforming the tax code to foster
economic growth benefiting all
Americans will require a plan that is
less tilted toward large cuts for high-
income households, less likely to in-
crease the national debt, and less of
a burden on middle-class households.
Congress should go back to the
drawing board.
Mr. Furman, a professor of practice
at the Harvard Kennedy School, was
chairman of the White House Council
of Economic Advisers, 2013-17.
took the secret of my grandfather’s
involvement to their graves.
Only after years researching their
stories and reflecting on their lives
do I understand the message my
grandparents had tried to impart—
one of hope and gratitude, not bitter-
ness or pity. As my grandfather said
in a memorial service speech in 1979,
we remember those who “lost their
lives while fighting for their freedom,
the freedom of us and the freedom of
mankind.” He emphasized that “we,
the survivors, have to let the world
know that we will never again allow
another Holocaust” and told the audi-
ence that “you, and you alone, have
the responsibility to speak up for our
fallen relatives and friends.”
My grandparents always said they
were the lucky ones, and that they
were left on earth to speak for those
who had perished. Their guidepost
was humanity, not indulgence in
their own sorrow and suffering.
They spoke for their friends and
family members who were not
“lucky” enough to make it, and to en-
sure that the stories of those who
perished did not become footnotes in
a dusty history book in the library.
Theirs was a message of optimism,
intended to ensure that their chil-
dren and grandchildren were able to
lead a life free from the atrocities
that they had witnessed. I get it now,
grandma and grandpa, and I hope the
world gets it now too.
Justice Stras serves on the Minne-
sota Supreme Court and is a nomi-
nee for the Eighth U.S. Circuit Court
of Appeals.
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
A18 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

WORLD NEWS

U.K. Minister Quits Over Israel Meetings

Priti Patel's departure
adds to cabinet woes
facing Prime Minister
Theresa May
est in a quick succession of ing Corp. tracked the course of British woman detained in Iran
challenges for Mrs. May, who the plane bringing Ms. Patel to was training journalists, which
has struggled to contain politi- London from Nairobi. U.K. me- critics say could lengthen her
cal fires and rein in ministers dia converged on Heathrow sentence. Mr. Johnson, who
since losing her party’s major- Airport to await the plane’s undercut Mrs. May in Septem-
ity in a June election gamble. touchdown, and waited outside ber when he outlined his own

ROB PINNEY/LONDON NEWS PICTURES/ZUMA PRESS

BY JENNY GROSS
LONDON—The second min-
ister in just over a week re-
signed from Prime Minister
Theresa May’s government, as
the British leader tried to re-
gain command after a series of
blunders by members of her
cabinet.
Mrs. May summoned Priti
Patel, the international devel-
opment secretary, back to Lon-
don from an official trip to
Uganda after details emerged
about unauthorized meetings
Ms. Patel had in August and
September with Israeli offi-
cials, including Prime Minister
Benjamin Netanyahu. Mrs. May
said in a letter to Ms. Patel
that work with Israel should be
done “formally and through of-
ficial channels.”
The development is the lat-
The British leader is also
grappling with stalled talks on
Brexit, the country’s greatest
foreign-policy shift in decades,
and a wave of sexual-miscon-
duct allegations in Parliament.
Defense Secretary Michael
Fallon resigned last week fol-
lowing allegations of inappro-
priate conduct toward women,
saying that his past behavior
was below the “high standard”
of the armed forces.
Ms. Patel, a rising star who
was largely known for her
strong Brexit support, apolo-
gized this week for not inform-
ing the prime minister and for-
eign secretary about her
meetings in Israel, which she
said occurred during an Au-
gust family vacation.
Mrs. May wrote in a letter
to Ms. Patel that she had been
satisfied with the apology, but
had to take action after infor-
Mrs. May’s Downing Street
residence afterward as she met
with Ms. Patel.
Opposition politicians ar-
gued that the prime minister
had lost control of her party as
the U.K. navigates Brexit. “The-
resa May must get control of
her chaotic cabinet and decay-
ing government or step aside
for Labour to govern,” said La-
bour lawmaker Kate Osamor.
Andrew Rosindell, a Conser-
Priti Patel after meeting with Theresa May on Wednesday. vative lawmaker who voted for
Brexit, countered that he
mation had surfaced that Ms. openness that I have promoted thought the incident wasn’t a
Patel had also met Israeli offi- and advanced,” Ms. Patel wrote big issue for the prime minis-
cials in September in London in her resignation letter. The ter. “I think it’s all a storm in a
and New York. “Now that fur- international development de- teacup,” he said. “We just have
ther details have come to light, partment said the foreign of- to get on with bigger issues,
it is right that you have de- fice was aware of the Israel really.”
cided to resign,” she said. meetings while they were un- It has been a rough two
“While my actions were der way, but not in advance. weeks for Mrs. May and her
meant with the best intentions, The political drama played cabinet. Foreign Secretary Bo-
my actions also fell below the out before Britons on televi- ris Johnson has come under
standards of transparency and sion, as the British Broadcast- fire for incorrectly saying a
vision for Brexit in a newspa-
per piece, said later that he
could have been clearer when
he was discussing the case.
The British leader’s No. 2,
Damian Green, is under parlia-
mentary investigation for al-
legedly groping a journalist in
2014. Mr. Green denies the ac-
cusations.
Mrs. May is navigating
tricky terrain as British and
European officials prepare for
negotiations this week on the
thorniest issue so far: The bill
the U.K. must settle with the
EU over outstanding commit-
ments to the bloc before it
leaves. The two sides, meeting
in Brussels on Thursday and
Friday, must find a way to
move past the stalemate be-
fore negotiations can move to
discussions on the future trad-
ing relationship between the
U.K. and the EU.

GERMANY
Economic Council
Sees Faster Growth
Germany is enjoying a robust
economic upswing that could
last for some time and which of-
fers good conditions for growth-
friendly changes, the govern-
ment’s Council of Economic
Advisers said Wednesday, raising
its growth forecast.
In their annual report, the ad-
visers known as the “wise men”
predicted Germany’s gross do-
mestic product to accelerate by
2.0% this year and by 2.2% in
2018. In March, the government
advisers predicted growth of
helped to balance the country’s
budget, which has seen sur-
pluses since 2014.
With Germany’s upturn ex-
pected to last, the next govern-
ment is in a good position to im-
plement an overhaul, the report
said. The council called for
growth-friendly changes, such as
tax cuts that would address the
issue of bracket creep, whereby
workers whose pay barely tracks
the rate of inflation can slip into
higher tax brackets and end up
worse off.
—Andrea Thomas
ZIMBABWE
Mugabe Says Deputy
WORLD WATCH
merson Mnangagwa said he
had left the country after “in-
cessant threats” to him and his
family.
The demonization of the de-
posed vice president is the clear-
est sign yet that President Rob-
ert Mugabe, who at 93 years old
is the world’s oldest head of
state, is preparing his wife,
Grace, to succeed him.
Mr. Mnangagwa said he was
safe but didn’t mention his loca-
tion. “I will be communicating
with you soon and shall return
to Zimbabwe to lead you,” he
said.
Mr. Mugabe spoke publicly for
the first time since dismissing
Mr. Mnangagwa, who had been

1.4% for this year and 1.6% for
next.
Germany’s economy has been
enjoying years of steady growth,
making it one of the eurozone’s
most robust economies. The
strong labor market has also
Plotted Takeover
Zimbabwe’s president said
that he fired his deputy and
longtime ally for scheming to
take power, including by con-
sulting witch doctors, while Em-
ASSOCIATED PRESS
seen as the president’s potential
successor. Mr. Mugabe told
thousands of cheering support-
ers that Mr. Mnangagwa had
plotted to take over since be-
coming a vice president in 2014. Zimbabwe’s President Robert Mugabe, at left with his wife, Grace, at a rally in the capital of Harare
—Associated Press on Wednesday. ‘No one will remove the president except God,’ the first lady said.

Cory Gaines
The Face Head of Product,
Network Solutions

of Change San Francisco, CA

Cory is all about collaborating with customers to create a better user experience. He and
his team work tirelessly to develop smarter payment solutions that are technically feasible,
business viable, and loved by his customers. It’s one more way our people are helping
accelerate the transformation to a value-based healthcare system.
Change Healthcare. Inspiring a better healthcare system.

changehealthcare.com
©2017 Change Healthcare Operations, LLC. All rights reserved.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2594.38 À 0.14% S&P FIN g 0.60%
Weinstein Operative Played Another Role
Woman said to have
worked undercover for
film mogul also dogged
an insurer’s critic
BY MARK MAREMONT
“Diana Filip,” Israeli under-
cover operative, meet “Diana
Ilic.”
A private investigator re-
ported to be working under-
cover on behalf of film mogul
Harvey Weinstein was identi-
fied by two people as the same
KAREN PULFER FOCHT/REUTERS (2)
Arkansas farmer John Weiss in July in a soybean field he claims was damaged by dicamba that had drifted from neighboring fields.
Monsanto Argues for Its Herbicide
BY JACOB BUNGE
A fight over one of the most
powerful new weapons against
hard-to-kill weeds, developed
by agricultural giant Monsanto
Co., is spilling into the courts.
Monsanto’s new version of
the herbicide called dicamba is
part of a more than $1 billion
investment that pairs it with
new genetically engineered
seeds that are resistant to the
spray. But some farmers say
their nonresistant crops suf-
fered after neighbors’ dicamba
drifted onto their land.
The agricultural giant in Oc-
tober sued the Arkansas State
Plant Board following the
board’s decision to bar Mon-
santo’s new herbicide and pro-
pose tougher restrictions on
similar weed killers ahead of
the 2018 growing season. Mon-
santo says its herbicide is be-
ing held to an unfair standard.
Arkansas has been a flash-
point in the dispute: About
900,000 acres of crops were re-
ported damaged there, more
INTELLIGENT INVESTOR | By Jason Zweig
Isaac Newton Learned
About Markets’ Gravity
Was one of
the most im-
mortal scien-
tists in his-
tory also one
of the world’s
most mortal investors?
In a recent column on the
effort to predict stock-mar-
ket behavior with principles
from geophysics, I cited the
losses—reputed to exceed
$3.6 million in today’s
money—that Sir Isaac New-
ton incurred speculating on
London’s South Sea bubble
in 1720. I also cited the re-
mark, often attributed to
Newton, that he “could cal-
culate the motions of the
heavenly bodies, but not the
madness of the people.”
Andrew Odlyzko, a profes-
sor of mathematics at the
University of Minnesota who
has extensively studied the
history of stock-market ma-
PERSONAL TECHNOLOGY: HOW TO LIVE WITH FACEBOOK B4
* * * *
S&P IT À 0.49%
woman that The Wall Street
Journal reported over the
summer had used a different
alias to wring information out
of a critic of a large U.S. in-
surer.
The woman in the Journal
article had given her name as
“Diana Ilic.” The New Yorker,
in an article published Mon-
day about Mr. Weinstein’s use
of private investigators to
counter probes into his alleged
sexual abuse, named “Diana
Filip” as a pseudonym used by
an operative for Black Cube, an
Israeli investigative firm.
Weedkiller Worries
Farmers in 25 states have claimed damage to their fields due to
neighbors spraying the herbicide dicamba.
Dicamba-damaged acreage based on complaints
10 20
thousand acres
N.D.
S.D.
Neb.
Kan.
Okla.
Source: University of Missouri via
Environmental Protection Agency
THE WALL STREET JOURNAL.
than in any other state.
About 300 farmers, crop sci-
entists and other attendees
gathered in Little Rock on
Wednesday for a hearing on
Arkansas’s proposed stiffer di-
nias, has just released a re-
search paper that closely an-
alyzes Newton’s track record
as an investor.
It turns out that Newton
had invested prudently and
successfully for many years,
diversifying his portfolio
across stocks and govern-
ment bonds worth a total of
about £32,000 by the start of
1720 (roughly £4.4 million,
or $5.7 million, today.)
Newton was among the
earliest to spot the potential
in the South Sea Co., the
global trading firm that was
seeking to restructure the
growing debts of the British
government. Newton began
buying no later than June
1712, less than a year after
the company was set up, ac-
cording to Prof. Odlyzko.
That was almost eight
years before speculating in
Please see ZWEIG page B2
THE WALL STREET JOURNAL.
DJ TRANS g 0.42%
The Journal, in its August
article, published surveillance
photos of the mystery woman,
captured during a July dinner
near Philadelphia with an ana-
lyst for a research firm critical
of the New York-based insurer,
AmTrust Financial Services
Inc.
It’s “the same woman,” said
actress Rose McGowan,
through her publicist. Ms.
McGowan has said Mr. Wein-
stein raped her. According to
the New Yorker, Ms. McGowan
met multiple times with “Di-
ana Filip,” the Black Cube op-
40 80
Minn.
Wis.
Mich.
Iowa Pa.
Ill. Ind. Ohio
W.Va.
Mo. Va.
Ky.
N.C.
Tenn.
Ark. S.C.
Miss. Ala. Ga.
La.
Most complaints:
Arkansas
900,000 acres
camba controls, which Mon-
santo and some farmers are
fighting. The proposed restric-
tions are subject to the ap-
proval of a subcommittee of
state legislators.
Pension Fund Executive Pleads Guilty
BY JUSTIN BAER
Navnoor Kang, a former
New York state pension fund
executive accused of taking
bribes from Wall Street sales-
people, pleaded guilty on
Wednesday to two counts of
fraud.
Mr. Kang, who served as
head of fixed income at the
New York State Common Re-
tirement Fund until early
2016, appeared in federal
court and pleaded guilty to
conspiracy to commit securi-
ties fraud and honest-services
wires fraud, under a law that
makes it a crime to deprive
someone of “the intangible
right of honest services.”
Prosecutors agreed not to
pursue criminal charges stem-
ming from their allegations
that he accepted bribes in ex-
change for steering trading
business to certain brokers,
and later sought to obstruct
federal investigations.
“Kang sold himself and his
duty to safeguard public re-
tirement money for luxury va-
WSJ $ IDX g 0.11% LIBOR 3M 1.410
erative, who was posing as a
sympathetic London-based
women’s rights activist and
who secretly recorded the ac-
tress.
Ms. McGowan made the
identification after seeing pho-
tos of “Diana Ilic” obtained by
the Journal.
An AmTrust spokeswoman
didn’t respond to questions
sent Tuesday about Ms.
McGowan’s identifying “Diana
Ilic” as the same woman the
New Yorker said was operating
for Black Cube. AmTrust has
said it hired Black Cube to in-
Scott Partridge, Monsanto’s
head of strategy, spoke at the
hearing, as did proponents of
tighter restrictions. Monsanto
has criticized some Arkansas
state agricultural officials and
academics involved in re-
searching and regulating di-
camba, accusing them of bias
and overstepping their author-
ity.
“What the plant board did is
very unfortunate for growers in
Arkansas,” Mr. Partridge said.
An Arkansas State Plant
Board spokeswoman declined
to comment.
Farmers in 25 states submit-
ted more than 2,700 claims to
state agricultural agencies that
neighbors’ dicamba spraying
shriveled 3.6 million acres of
soybeans, according to the U.S.
Environmental Protection
Agency. The herbicide is also
blamed for damaging other
crops, such as cantaloupe and
pumpkins.
The complaints have farm-
ers and agricultural research-
Please see WEEDS page B2
Navnoor Kang, center, outside court on Wednesday
cations, jewelry, cash and
even drugs,” Joon Kim, the
acting U.S. attorney in down-
town Manhattan, said. “He has
now admitted to his crimes
and is a convicted felon.”
Tina Glandian, Mr. Kang’s
attorney, said: “Mr. Kang pled
guilty even though Mr. Kang’s
investments proved to be very
profitable for the New York
Thursday, November 9, 2017 | B1
NIKKEI (Midday) 23368.16 À 1.98% See more at WSJMarkets.com
vestigate a former Italian busi- business and litigation chal-
ness partner, but it has denied lenges.”
hiring the firm or any private A spokeswoman for Mr.
investigators to probe its U.S. Weinstein, who authorities say
critics. is the focus of criminal investi-
In a statement, Black Cube gations into his conduct, said
said it is company policy “to he “unequivocally” denies “al-
never discuss its clients with legations of nonconsensual
any third party,” adding that it sex.” As for the private investi-
“applies high moral standards gators, the spokeswoman said:
to its work” and operates “It is a fiction to suggest that
within the law. Launched in any individuals were targeted
2011, the firm describes itself or suppressed at any time.”
as “a select group of veterans A spokesman for Weinstein
from the Israeli elite intelli- Co. didn’t immediately re-
gence units that specializes in spond to a request for com-
tailored solutions to complex Please see DIANA page B2
Icahn Probed on Role
As Trump Adviser
BY DAVID BENOIT aligned itself too closely with
AND TED MANN business interests, especially
on matters of regulation.
Federal prosecutors are in- Mr. Icahn’s company, Icahn
vestigating Carl Icahn’s former Enterprises LP, said it re-
role advising President Donald ceived a subpoena from the
Trump and the activist inves- U.S. Attorney’s Office for the
tor’s attempts to change an Southern District of New York
environmental rule that he op- seeking information about ac-
posed. tivities related to his role as
Mr. Icahn, an early backer adviser to Mr. Trump and to
of Mr. Trump’s White House the Renewable Fuels Standard,
bid, was named special adviser the rule he opposed.
to the president on overhaul- Echoing Icahn Enterprises,
ing federal regulations in De- CVR said in a separate filing
cember 2016. Mr. Icahn didn’t that the U.S. attorney “has not
have an official government made any claims or allegations
role, both he and the White against us or Mr. Icahn” and
House have said, but the ap- the company doesn’t believe
pointment cemented his unof- the inquiry will have a mate-
ficial status as a sounding rial impact.
board for Mr. Trump. Mr. Icahn wasn’t available
The role had sparked criti- for further comment late
cism from Democrats and oth- Wednesday.
ers who alleged Mr. Icahn, a “I never had access to non-
billionaire investor, was con- public information or profited
flicted given his ownership in from my position, nor do I be-
various business entities that lieve that my role presented
are heavily regulated, includ- conflicts of interest,” Mr.
ing an oil refiner called CVR
Icahn wrote in his resignation
Energy Inc. Mr. Icahn resigned letter to Mr. Trump. “I never
from the role in August. sought any special benefit for
The inquiry into Mr. Icahn, any company with which I
disclosed by his holding com- have been involved, and have
pany and CVR Friday but only only expressed views that I
reported on Wednesday, could believed would benefit the re-
provide more fodder for critics fining industry as a whole.”
of the Trump administration The White House wasn’t
who contend that it has Please see ICAHN page B6
INSIDE
APPLE’S CAP SOME MUNIS’
HITS HISTORIC TAX-FREE
$900 BILLION STATUS AT RISK
TECH, B3 BONDS, B11
including a ski trip to Utah,
and a luxury watch in return
for Mr. Kang directing trades
their way. Mr. Kang pleaded
not guilty to those charges at
the time. Two salespeople—
Deborah Kelley and Gregg
STEVE REMICH FOR THE WALL STREET JOURNAL
Schonhorn—also were
charged in the alleged scheme
and ultimately pleaded guilty.
Mr. Schonhorn’s lawyer de-
clined to comment. Ms. Kel-
ley’s lawyer didn’t respond to
requests for comment.
Mr. Kang has denied taking
money for drugs and prosti-
tutes, according to a person
familiar with the matter.
In court, Mr. Kang admitted
he received some of the perks
including the Utah ski trip,
State Common Retirement the watch, dinners and con-
Fund and its members.” cert tickets. But he left out
She added, “He has ac- other bribery allegations from
cepted responsibility for his his statement, and the omis-
failure to disclose gifts during sions weren’t challenged by
his employment at the fund.” prosecutors in court.
Late last year, U.S. prosecu- The charges against Mr.
tors alleged that salespeople Kang exposed a practice many
lavished Mr. Kang with every- believed had been rooted out
thing from prostitutes and co- of the securities industry
caine to getaway weekends, Please see KANG page B7
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Thursday, November 9, 2017 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

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

A FedEx...........................B3 O
Airbus..........................B3 Ford Motor..................A9 Old Mutual Global
Alphabet......................B4 G Investors.................A10
Apple.........A2,B3,B4,B12 Gazprom......................A8 Oracle .......................... B5
Archers Daniel Midland General Electric..........A9 P
.....................................A9 General Motors...........A9 Petróleos de Venezuela
AT&T....................A1,A10 Goldman Sachs Group ...................................B12
B ........................A9,B4,B11
Guggenheim Partners.B7 Q
Baidu ......................... B13
Bank of America.......B11 H Qualcomm...................A9
Boeing....................A9,B3 Humana.......................B7 S
C I Sears Holdings............B7
CBS..............................B3 Smithfield Foods........A9
Icahn Enterprises........B1
China Literature A10,B13 Snap..............A1,B12,B13
Infor.............................B5
Cofco ........................... A9 Sogou ........................ B13
J Sprint..........................A1
Comcast.......................B3
Comerica....................B11 Juniper Networks.....B13 Symantec .................. B13
Creative Artists Agency K T
.....................................B3 Koch Industries...........B5 Tencent Holdings A1,B13
CVR Energy.................B1 L Time Warner...............A1
D LendingClub...............B13 T-Mobile US................A1
DirecTV........................A1 Leonardo......................B3 Twenty-First Century
DowDuPont.................A9 LVMH Moët Hennessy Fox ....................... B2,B4
E Louis Vuitton............B6 Twitter........................A1
M U

MATT ROURKE/ASSOCIATED PRESS

Equifax ........................ B6
F Monsanto....................B1 UBS............................B11
N Under Armour...........B13
Facebook ..................... A1
Federated Investors Nasdaq ...................... B12 W
...................................B13 Netflix.............B3,B4,B13 Walt Disney................B4

INDEX TO PEOPLE
Higher costs for sports programming, including additional NFL games, weighed on results from 21st Century Fox’s television segment.
A Duterte, Rodrigo.........A9 Milstein, Larry..........B12

Cable Helps Fox Return to Growth

Agarwal, Shradha..A2,B4
Arnault, Bernard.........B6
B Friedlander, George .. B11
Bannon, Stephen........A4
Barros Jr, Paulino do
Rego..........................B1
Beccari, Pietro ............ B6
Bryan, Jeremy...........B12
C-D
Carr, Muneera...........B11
Chin, David................B11
Clayton, Jay .............. B12
Cohen, Natalie .......... B11
Culverhouse, Stuart . B12
Daingerfield, Brian ... B13
Delrahim, Makan........A1
Dorsey, Jack................B4
E-F
Ellenberger, Donald .. B13
G Odlyzko, Andrew ........ B1
Gardner, Cory..............B1
Gillespie, Ed................A4
H Wednesday’s earnings call by
Heppenstall, Mark....B12
K-L
Kang, Navnoor............B1
Koch, David.................B5
Legere, John...............A1
LeRoy, Greg...............B11
M-N
Maduro, Nicolás........B12
Miller, John...............B11
Nieding, Klaus.............B7
Northam, Ralph..........A4
O
Oficialdegui, Javier...B11
S-T BY MARIA ARMENTAL Lachlan Murdoch, executive segment was an 11% increase in The television segment,
Sanborn, Scott..........B13 AND SARAH RABIL co-chairman of Fox, kicked off domestic affiliate fee revenue— which includes the Fox broad-
the money collected from pay- cast network and local TV sta-
Santini, Mike ............ B11
Shah, Rishi............A2,B4 21st Century Fox Inc. said saying executives wouldn’t TV distributors to carry Fox’s tions, posted a 36% decline in
Sieg, Andy.................B11
profit and revenue rose in the comment on the reports. channels. Advertising revenue operating profit. Higher costs
Simmer, Sarah Jones.B5
most recent quarter, as higher “Let me be very clear up- rose 3% in the U.S. and 10% for for sports programming, includ-
Smith, Richard............B1
Solca, Luca..................B6 fees for its cable networks front that we have a long- international channels. ing added college football and
Sosa, Juan I..............B12 helped offset continued weak- standing policy of not com- Fox said it maintained its do- National Football League
Stephens, John...........A6
Stephenson, Randall..A1
ness at local TV stations and its menting around corporate mestic television subscriber lev- games, more than offset higher
Swell, Mike...............B13 film studio. activity or transactions. We els, as growth from new revenue.
Toledano, Sidney.........B6 The results posted Wednes- will continue to adhere to the streaming services and newer Fox News, which wasn’t in-
day follow the news that Fox re- policy, meaning that we will channels offset declines in the cluded in the talks with Disney,
cently held talks about selling a not be responding, at all, to traditional pay-TV universe. had another strong quarter,

ZWEIG £26,000 into South Sea

shares on June 14, 1720, at a
price of about 700 per
share—twice what he had
large part of its entertainment
business to Walt Disney Co.
Those assets included the
Twentieth Century Fox studio,
questions or comments re-
garding recent press specula-
tion,” he said.
Wall Street Journal parent
Overall, Fox’s fiscal first-
quarter profit rose 4% to $855
million, or 46 cents a share.
Revenue rose 7.6% to $7 billion,
contributing to the revenue
and profit expansion at the ca-
ble unit despite turmoil over
accusations of sexual harass-
Continued from the prior page sold them for only a few international distribution oper- company News Corp and 21st topping analysts’ average esti- ment and racial and gender
the company’s shares be- weeks earlier. ations and some cable net- Century Fox share common mate of $6.81 billion. Excluding discrimination that led to sev-
came a mania that swept up Even worse, in late Au- works, The Wall Street Journal ownership. restructuring costs and other eral high-level departures. Fox
everyday investors and high gust, with the shares priced reported earlier this week. Fox’s cable networks unit, items, per-share profit was in has said it is cooperating with
society alike. about 750, Newton put an- The remaining Fox business, home to Fox News and the FS1 line with the projection from a federal probe related to the
The shares (quoted as a other £1,000 into a South as discussed, would have been sports network, drove results analysts surveyed by Thomson allegations.
percentage of their par, or Sea security that appears to focused on broadcast television for the company’s September- Reuters. Fox’s Class A shares closed
nominal, value) shot up from have been comparable to a as well as news and sports ca- ended fiscal first quarter with a Operating profit at the Wednesday at $28.09 and were
about 200 in March 1720 to call option giving him the ble channels such as Fox News. 9% rise in operating income be- filmed entertainment division, up 1.3% in after-hours trading.
nearly 1,000 in June and right to buy shares at a price The talks hit an impasse over fore depreciation and amortiza- which includes the Twentieth Before gaining this week on
July, then crashed back be- of 1,000 each. price and other key terms, tion, helping Fox post its first Century Fox studio, fell 18% the reports about discussions
low 200 in a few disastrous At this point, Newton had though they could be restarted, profit increase in three quar- from a year earlier, as last with Disney, the stock had de-
weeks later in 1720. shifted from a prudent inves- according to people familiar ters. year’s results were boosted by clined about 25% over the past
Prof. Odlyzko estimates tor with his money spread with the matter. Driving results in the cable licensing deals. three years.
that if Newton had bought across several securities to a
and held his South Sea speculator who had plunged
shares continuously from
early 1712 through 1723,
when the stock stabilized af-
ter the bursting of the bub-
essentially all of his capital
into a single stock.
The great scientist was
chasing hot performance as
DIANA
ble, he would have earned a desperately as a day trader Continued from the prior page
cumulative total return of in 1999 or many bitcoin buy- ment.
approximately 116%. That is ers in 2017. Separately, a writer for New
about 6.5% annually, not Newton appears to have York magazine viewed photos
counting dividends—a gener- lost as much as 77% on his and video footage of the
ous return at a time when worst purchases, or at least woman in the Journal’s
long-term government bonds £22,600, estimates Prof. Od- AmTrust piece and said “it
carried interest rates of 4% lyzko. That is the equivalent looks like the same woman”
to 5%. of £3.1 million, or nearly $4.1 who he said pumped him for
However, Newton didn’t million, in today’s purchas- information in late 2016 about
buy and hold continuously. ing power. Overall, he lost at Mr. Weinstein when he was
Instead, Newton—who held least a third of his account working on an article about
10,000 shares of South Sea value. Mr. Weinstein’s accusers. The
stock in early 1720—sold Prof. Odlyzko finds that woman had used the name,
8,000 shares in April and the words often attributed to “Anna,” according to the New
May at prices around 350, Newton were ascribed to York writer, Ben Wallace.
realizing profits of at least him years after his death, so The New Yorker published a
GEOINVESTING LLC

£20,000, Prof. Odlyzko finds. the great man might or copy of a contract between
That was equivalent to might not ever have said Black Cube and one of Mr.
nearly $4 million today. that he “could calculate the Weinstein’s lawyers, naming
But the price of the shares motions of the heavenly bod- an “Anna” as one of its opera-
went almost straight up im- ies, but not the madness of tives for the assignment.
mediately after Newton sold the people.” In an interview Tuesday, The mystery woman identifying herself here as Diana Ilic arrives for a meeting with an analyst.
them, brushing 800 in late But surely the author of Mr. Wallace said “Anna” pre-
May and early June of 1720. the law of universal gravita- tended to be a disgruntled for- with “an accent that was hard him with drinks during a July also reported mysterious con-
“As the bubble continued tion must have learned the mer mistress of Mr. Wein- to place, possibly German.” On dinner meeting. He also de- tacts, the Journal reported in
inflating, it appears that he First Law of Financial Grav- stein’s who heard he was a second meeting, he said she tected an accent; she claimed August.
panicked,” Prof. Odlyzko ity: What goes up must come working on an article. Claim- suggested a place that was to be from Zagreb, Croatia. The email address “Diana
writes of Newton. The great down, and what goes up the ing to be worried about her “mood lit,” already had a glass After the dinner, Mr. Irons Ilic” used with Mr. Irons linked
scientist, throwing his ratio- most will come down the career if she spoke out, she of wine, and motioned for him discovered his boss also had a to a domain name established
nality to the winds, plunked hardest. pushed for information about to sit next to her. mysterious meeting, with a a few days before the meeting.
other women he was talking That was a similar experi- man claiming to be French, The London address for her
with, he said. ence to that of Chris Irons, the who similarly pumped him for consulting firm turned out to
Mr. Wallace described the analyst with GeoInvesting LLC, information about AmTrust. be a mailbox drop. Calls and
woman as blonde, mid-30s, who said “Diana Ilic” had plied Two other critics of AmTrust emails to her weren’t returned.

WEEDS as $350 million in annual prof-

Continued from the prior page
ers racing to figure out how to
avoid more collateral damage
ahead of next summer, when
Monsanto projects the herbi-
cide will be used on twice the
U.S. farm acreage as this year.
Other states besides Arkan-
sas, including Minnesota, South
Dakota, North Dakota, Tennes-
see and Indiana, are discussing
additional limits and training
requirements for farmers
spraying dicamba.
Monsanto had pitched di-
UNIVERSAL HISTORY ARCHIVE/GETTY IMAGES
its for Monsanto. “It’s their big
moneymaker,” he said.
German chemical maker
BASF SA is also marketing a
new version of dicamba to pair
with the Monsanto-developed
crops.
While dicamba has proven
able to knock down tough
weeds, past versions of the
herbicide have been known for
evaporating from plants after
application, which can create a
mist prone to floating into
nearby fields.
Monsanto and BASF’s new
formulations are designed to
minimize that effect, the com-
Arkansas’s Plant Board has
proposed going further, possi-
bly by prohibiting dicamba use
from mid-April through the end
of October to safeguard grow-
ing plants. The state has also
refused to approve Monsanto’s
dicamba product for use in Ar-
kansas, saying it needs further
Some farmers have
joined class-action
lawsuits against
Monsanto and BASF.
thanks to good weather over
the latter half of the growing
season. The U.S. Department of
Agriculture is projecting a re-
cord U.S. soybean crop. The
outcome could have been
worse with drier weather, re-
searchers said.
Farmers are exploring their
own legal options. Some have
joined class-action lawsuits
against Monsanto and BASF,
seeking compensation for dam-
aged crops. The companies are
contesting those lawsuits.
For farmers, “it’s highly
emotional,” said Doug Goeh-
ring, North Dakota’s agriculture
commissioner.

camba, along with soybean and
cotton seeds engineered to sur-
vive it, to farmers struggling to
kill weeds such as palmer ama-
ranth that can grow so fast and
so big—developing stalks as
thick as baseball bats—that
they choke out crops.
Jonas Oxgaard, an analyst
with Bernstein, estimated that
the chemical and related seed
Artist’s impression of Isaac Newton thinking about gravity sales could generate as much
panies have said.
U.S. farmers planted about
25 million acres of dicamba-tol-
erant crops this year. Following
the damage complaints, the
companies in October agreed
with the EPA on tighter con-
trols for those products, in-
cluding training farmers on
how to manage the chemical
and barring application on
windy days.
analysis by University of Ar-
kansas researchers. Monsanto
argues that other herbicides
haven’t been subjected to the
sort of further analysis the
state wants to apply to Mon-
santo’s dicamba product.
Even with the reports of
widespread damage, farmers
and crop researchers say many
affected fields recovered,
Tom Burnham, who farms
11,000 acres near Blytheville,
Ark., said he hired a lawyer to
advise him on how to handle a
neighbor whose errant di-
camba spraying, Mr. Burnham
said, reduced some fields’ har-
vest by 5% to 20%.
Mr. Burnham said he didn’t
expect to make money on any
lawsuit he may file. “I’m doing
it just to make a point.”
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. Thursday, November 9, 2017 | B3

BUSINESS NEWS

Apple to Bankroll
News-Show Drama
BY JOE FLINT
Apple Inc. has struck a deal
for a new drama starring
Reese Witherspoon and Jenni-
fer Aniston and set in the
world of television morning-
news shows.
Terms of the deal weren’t
disclosed, but people familiar
with the matter said the cost
could reach beyond $10 mil-
lion an episode. Ms. Aniston’s
and Ms. Witherspoon’s sala-
plans to distribute its content.
In October, it struck a deal
with director Steven Spiel-
berg’s Amblin Television and
Comcast Corp.’s Universal
Television for a new version of
“Amazing Stories,” a science-
fiction anthology series that
ran on NBC in the 1980s. The
budget for that show is over
$5 million an episode, a per-
son familiar with the project
has said.
The deal for the morning-

DHIRAJ SINGH/BLOOMBERG NEWS

ries are expected to be over $1
million an episode, according
to a person who was pursuing
the show. Ms. Aniston and Ms.
Witherspoon are also execu-
tive producers of the show.
Both Ms. Aniston and Ms.
Witherspoon are represented
by Creative Artists Agency. A
spokeswoman for the agency
declined to comment on their
news show is an indicator that
Apple is prepared to spend
heavily on its television ven-
ture and get into bidding wars
with more established play-
ers—which is good news for
producers.
Apple’s programming ef-
forts are being overseen by
Zack Van Amburg and Jamie A turboprop flies over a neighborhood in Mumbai. These planes are slower and burn less fuel than their jet counterparts.
Erlicht, who joined the com-

FedEx Orders Turboprops

deals.
Other parties interested in
the as-yet-untitled, highly
sought-after show included
Netflix Inc. and CBS Corp.’s
Showtime.
For Apple, the deal for the
Witherspoon-Aniston project
is the second big programming
bet it has made in the past
several weeks—even though it
has yet to disclose how it
Apple Market Value
Tops $900 Billion
The world’s most valuable
public company just made
more history.
Apple Inc. shares rose 0.8%
Wednesday to close at a new
high of $176.24, giving the
iPhone maker a market value
of $904.9 billion.
That makes Apple the first
U.S. company to reach the
$900 billion threshold, having
already become the first to hit
$800 billion when it accom-
plished the feat in May. It
would need to increase its mar-
ket capitalization by 11% to be-
come the first to be worth $1
pany from Sony Corp. in June.
Apple is committing as much
as $1 billion on its program-
ming strategy.
The Witherspoon-Aniston
series is being produced
through Media Res, a produc-
tion company founded by for-
mer HBO programming execu-
tive Michael Ellenberg, who is
an executive producer on the
series.
trillion. Based on Apple’s share
count as of Oct. 20, that would
mean a share price of $194.77.
The milestone comes
shortly after Apple’s latest
iPhone model hit stores last
week. Shares also got a boost
after the tech giant delivered
its best quarterly growth in
two years, fueled by strong
sales in all of its key products
and a rebound in the China
market.
Positive reviews of the
company’s 10th-anniversary line
of iPhones have generally
boosted Apple shares recently.
For the year, they are up more
than 50%, part of this year’s
torrid rally for the biggest tech-
nology firms.
—Amrith Ramkumar
Delivery giant to buy
as many as 50 planes
from Europe’s ATR as
airfreight sector revives
BY ROBERT WALL
FedEx Corp. is modernizing
part of its fleet of smaller
cargo planes in a deal valued
at $1.3 billion at list price,
amid an improved outlook for
the global airfreight market.
FedEx will buy up to 50 tur-
boprop planes from European
aircraft maker ATR—a joint
venture between Airbus SE,
the world’s No. 2 plane maker
behind Boeing Co., and Italy’s
Leonardo SpA. The deal com-
prises a firm order for 30
planes and options for 20
more, and represents a boost
for ATR in the U.S., the world’s
largest single aviation market.
The delivery giant typically
uses such turboprop planes—
which are slower and burn
less fuel than their jet coun-
terparts—to transport pack-
ages between smaller cities
and larger airports where its
big Boeing and Airbus jets op-
erate.
The prospects for the air-
freight market have improved
in recent months after a pro-
longed slump. WorldACD,
which tracks the sector, said
air-cargo growth in Septem-
ber, the latest month for which
figures are available, grew
above 5% year over year for
the 13th consecutive month.
FedEx said in its latest
quarterly earnings that sales
at its air-shipping Express di-
vision benefited from higher
rates to ship U.S. domestic
packages and strong interna-
tional package growth.
Though turboprop freight
planes are typically modified
passenger models, FedEx in
this case opted for a new de-
sign. The plane is based on the
European plane maker’s 78-
seat ATR 72-600 model, which
features a new cockpit and
more powerful engines than
earlier versions.
FedEx Express Chief Execu-
tive David L. Cunningham said
Wednesday that the company
“worked with ATR to develop
this new aircraft, which in-
clude special features to help
us grow our business, espe-
cially in the airfreight market
where shipments are larger
and heavier.”
FedEx is expected to get the
first planes in 2020. The air-
craft typically can carry
around 8.3 tons of cargo,
though delivery companies are
usually more focused on vol-
ume than weight.
“Our bet is that the
freighter market is going to
become much more active
than it has been,” ATR Chief
Executive Christian Scherer
said in an interview. Though
much of the global demand
will likely remain for con-
verted planes, he said FedEx’s
endorsement could generate
greater appetite for new
planes as well as spur a gen-
eral increase in demand for
freight planes.
Toulouse, France-based ATR
and Canada’s Bombardier Inc.
are the world’s leading pro-
ducers of turboprop planes.
Brazilian plane maker Embraer
SA in September said it had
opened talks with potential
airline customers to gauge
whether to re-enter the mar-
ket for such planes, after exit-
ing it years ago to focus on
jet-powered regional planes
and private jets.
The FedEx deal also is an
important vote of confidence
for ATR in the U.S., which it
has coveted for years. Passen-
ger-carrying turboprops fell
out of favor in the U.S. be-
cause passengers generally
preferred jets they viewed as
more comfortable and modern.
But ATR is starting to see
demand rebound in the U.S. In
addition to the FedEx deal, the
plane maker has said it had
won a preliminary 20-passen-
ger-aircraft deal with Fort
Lauderdale, Fla.-based Silver
Airways Corp.
“We have been absent in
the U.S. for many, many years
and this marks our return,”
Mr. Scherer said.

You were looking to retire by the water.

Better yet, above it.
Captain of your own floating home.
That would be retiring like a boss.
That would also be tough without a plan.

U.S.
BONDS
AGG

INT’L
STOCKS
WHEN INSPIRATION HITS, IEFA
BUILD FOR WHAT’S NEXT.

U.S.
STOCKS
IVV

Build for your future with iShares Core ETFs.

At 1/10th the cost of typical mutual funds, iShares Core ETFs
can help you keep more of what you earn.1

INSPIRED TO BUILD. iShares.com/build

1. Source: BlackRock and Morningstar, as of 12/31/16. Comparison is between the average Prospectus Net Expense Ratio for the iShares Core Series ETFs (0.08%) and the
average Prospectus Net Expense Ratio of active open-end mutual funds (1.17%) available in the U.S. on 12/31/16. Visit www.iShares.com or www.BlackRock.com to
view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully
before investing. Investing involves risk, including possible loss of principal. Buying and selling shares of ETFs will result in brokerage commissions. TheiShares funds
are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). © 2017 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks
of BlackRock. All other marks are the property of their respective owners. 285131
 B4 | Thursday, November 9, 2017
GEORGE KRAYCHYK/HULU/EVERETT COLLECTION
Buying 30% of Hulu, whose shows include ‘The Handmaid’s Tale,’ would give Disney majority control of that streaming service.
Behind Disney’s Talks With Fox: Netflix
BY BEN FRITZ
Walt Disney Co.’s market
capitalization is almost twice
that of Netflix Inc. It operates
the most successful movie stu-
dio in Hollywood, one of the
most profitable channels on ca-
ble television and the biggest
theme-park business in the
world.
Yet its pursuit of 21st Cen-
tury Fox Inc.’s entertainment
assets indicates that reposition-
ing its television business to
Outcome Health Returns Fire in Investors Dispute
BY ROLFE WINKLER
Outcome Health on
Wednesday fired back at inves-
tors suing the prominent Chi-
cago advertising startup, saying
that their accusations of fraud
are baseless and that their ef-
fort to freeze $225 million in
funds controlled by the found-
ers was unfair and could finan-
cially damage the company.
On Tuesday, investors sued
Outcome and its founders, Ri-
shi Shah and Shradha Agarwal,
claiming the founders know-
ingly provided false data and
financial reports before a
funding round earlier this
year. The investors, which in-
clude funds managed by a unit
of Goldman Sachs Group Inc.
and Google parent Alphabet
Inc., invested $487.5 million
beginning in March.
The investors say they are
ADVERTISEMENT
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
AUCTION
7,!!
 8
! /
 Protect your CASH & RETIREMENT Accounts

compete in the streaming, a-la-
carte world that Netflix domi-
nates has become Disney’s pri-
ority.
Disney’s TV operation alone
is substantially larger than Net-
flix, but its growth has stalled
while its digital competitor is
booming. Netflix’s revenue in-
creased 32% in the first nine
months of its current fiscal year
to $8.4 billion, compared with a
year earlier, and its operating
income rose 163% to $593.4 mil-
lion. For the first nine months
entitled to get their money
back, citing an October Wall
Street Journal article that re-
ported how some Outcome em-
ployees had allegedly misled
customers about its advertising
services. Outcome, which said
it was valued at $5.5 billion by
investors, puts video screens in
doctors’ offices and streams
pharmaceutical ads to them.
In New York Supreme Court
in New York County on
Wednesday, the judge said she
would review both sides’ claims
and plans to hear further argu-
ments on Monday.
Outcome and its founders
denied wrongdoing in Wednes-
day’s filing and said there is no
evidence that Mr. Shah or Ms.
Agarwal engaged in any mis-
conduct.
Outcome’s attorney, Michael
Carlinsky of law firm Quinn
Emanuel Urquhart & Sullivan
BUSINESS OPPORTUNITIES
before the next market correction.
TECHNOLOGY
of its fiscal year, Disney’s televi-
sion revenue was flat at $18 bil-
lion and its operating income
declined 11% to $6 billion.
Recent talks for Disney to ac-
quire Fox’s entertainment cable
networks and film and TV stu-
dio, and stakes in European sat-
ellite broadcaster Sky and
streaming TV company Hulu,
have stalled, and it is unclear
whether they will restart, let
alone result in a deal, said peo-
ple close to the discussions. Fox
and Wall Street Journal parent
LLP, called investors “irrespon-
sible” for filing suit days after
they were briefed by an inde-
pendent counsel hired by Out-
come last month to investigate
the claims that some employees
misled advertising customers.
According to Outcome’s legal
filing, the independent counsel,
former U.S. attorney Dan Webb,
told investors during the brief-
ing that while his investigation
remains ongoing, he had “’not
come across any evidence that
senior management was in-
volved’ in any misconduct or
even possesses ‘relevant infor-
mation’ regarding the miscon-
duct that may have occurred at
Outcome Health.”
In response to Wednesday’s
comments from Outcome, a
Goldman Sachs spokesman
said, “We believe there is more
than enough evidence to sup-
port our case and we look for-
News Corp share common own-
ership.
In an interview before the
Fox talks were reported this
week, Disney Chief Strategy Of-
ficer Kevin Mayer said Disney
has in the past decade spent $15
billion buying “high quality” in-
tellectual property from Pixar
Animation Studios, Marvel En-
tertainment and “Star Wars”
producer Lucasfilm. “Now we’ve
turned our attention to the one
platform seeing growth chal-
lenges,” he said. “That’s the
ward to our chance to present
it to the court.” A spokesman
for Alphabet’s CapitalG didn’t
immediately respond to re-
quests for comment.
Outcome’s filing says Mr.
Webb interviewed “approxi-
mately 17 Outcome Health em-
ployees” as part of his investi-
gation. It does not state
whether he interviewed any
former employees, including
Sameer Kazi, a former chief op-
erating officer who the Journal
reported in October confronted
Mr. Shah with concerns about
business practices earlier this
year, people briefed on the dis-
cussion said.
Mr. Webb and Mr. Kazi
didn’t respond to requests for
comment on Wednesday. Mr.
Kazi in a brief phone conversa-
tion this summer said he was
at the company “two weeks
and three days” early this year
* ***
Size vs. Growth
Walt Disney’s biggest cable channels have lost subscribers in the past
few years, while Netflix’s subscribers have grown from a smaller base.
Domestic subscribers
100 million 2016 93
80
60
40
20
Disney Channel
0
2011 ’16 2011
*Streaming subscribers only Source: the companies
television platform.” That same
logic applies to its pursuit of
Fox’s assets, analysts and peo-
ple close to Disney said.
The company is already in
the midst of a multibillion-dol-
lar effort to launch direct-to-
consumer online video offer-
ings, an effort that could be the
final legacy of Chief Executive
Robert Iger, who is scheduled to
retire in 2019.
That same year, Disney has
said, it plans to launch a family-
entertainment service featuring
and declined to comment on
his departure.
The investors have asked the
court to freeze $225 million of
the total that had been placed
in a separate account to pay the
founders a distribution. They
allege Mr. Shah took steps to
take money out of the account
and can’t verify the total funds
are there.
The Outcome filing states
that while the founders have
the right to take this money out
per an agreement with inves-
tors, the funds remain in the
account for company use. “We
have been completely transpar-
ent with employees, customers
and investors, and always oper-
ated with complete integrity,”
the founders said in a state-
ment.
O u tc o m e ’s
THE WALL STREET JOURNAL.
WSJ.com/Tech
90
49
ESPN Netflix*
’16 2011 ’16
THE WALL STREET JOURNAL.
television shows and movies, in-
cluding recent theatrical re-
leases that currently stream on
Netflix under a deal that ends
next year and Mr. Iger intends
to not renew.
Next year, Disney aims to un-
veil an ESPN streaming service
featuring sports not currently
available on television.
Both will use technology
from the streaming company
BamTech, on which Disney this
year spent $1.58 billion for ma-
jority control.
legal filing says Mr. Shah and
Ms. Agarwal “have considered”
injecting the money allocated
for their distribution back into
Outcome. “Such an infusion of
cash could avoid a potential
debt default and give the com-
pany breathing room to regain
its footing amid the recent tur-
moil,” the filing said.
Mr. Carlinsky, Outcome’s at-
torney, added in an interview
that this was a “general” state-
ment about a debt default. “We
don’t want to give the lenders
reason to seek to declare a po-
tential default” and that an in-
fusion of cash back into the
company would mollify them.
A lawyer representing Out-
come’s creditors, Michael
Stamer of Akin Gump, didn’t
respond to a re-
quest for com-
ment.

  

 

 
  Invest in Physical GOLD/SILVER
  
!
""! "  Safe Haven • Asset Protection •


#! ! $ %!  Huge Profit Potential • Private Transaction
&! " %! 
' !
! ! Shipped directly to you or choose to store

!! "!
 
 ( 
 at fully insured depository.
 #$!! 
 $
' $! !
! 
)' "
' ! 
! 888-635-9889

 *!!&%! 
! + ,!
-
&!
 
 ! . -
!!
! 
 /$! 0!
! -

%!' BUSINESS OPPORTUNITY
  Short term business sales contracts
 
 
   
for sale. Contracts pay 28% interest
 ! 
"' 
 1$
! 

! 
 !!
 
with 12 monthly principal & interest
$
!  23 452 payments. ph-616-430-7987
! 
6!'
mondialinvestments@gmail.com
RICHARD BORGE

BUSINESS FOR SALE GLACIER VALLEY MINING AND

METALS IS FOR SALE - INVEST PERSONAL TECHNOLOGY | By Katherine Bindley
Included is a $47 million dollar tax shelter that
 

Tips to Tame Your Wild Facebook Feed
was created in 1984 via the IRS regulations of
the U.S. Treasury Dept. Never used, and intact.
 
    
gjdeden@aol.com
        www.gvmtaxshelter.com

       
  
  !  "#  
   Quick: to Settings. Tap News Feed Ditch the Duds Review Your Liked Pages
  $% !

 &'() *+    Shout out the Preferences, then “Prioritize You can go through and Facebook says its algo-
&, -./, "0 -1/+   first three who to see first.” On An- unfollow a bunch of people at rithm learns from all your
 !2 3 "4 566  !""" words that droid, the three lines are up once—without them finding past likes, comments and in-

    7 #$ ! come to mind top, and you just scroll down out. Go to News Feed Prefer- teractions. That is why you
,
8 ! 9!

 # !2 *
 %%%&'& when some- to News Feed Preferences. ences, tap “Unfollow people” should check up on old pages

!  .$9:   () **


 
   ;

one says “Facebook.” Select which friends you and select people whose you once liked.
        8 Co-Investment - Preferred Equity A few years ago, this exer- want to show up at the top of posts you don’t want to see. It is tricky from the app:
 "!8< $66 $600K total offering, including $100K from us cise was easy: Birthdays. your feed. If you prioritize In individual posts, click You either go into the Unfollow
 

Apt Renovation in Brooklyn Brides. Babies. Boom!
 

 
only five people out of, say, the three dots at the right- setting and tap the Sort button
(recent acquisition, tenants just removed, reno
starts this month). Accredited Investors Only. Now, inside the mindless, 700, you’ll probably still see hand corner to unfollow peo- at the top left and choose

www.firstrealfund.com
info@firstrealfund.com 888-673-7249
Securities Offered through North Capital
thankless news feed time
suck, you can find all that
Private Securities, Member FINRA/SIPC. plus political rants, stalker-y
BUSINESS OPPORTUNITIES ads, fake news, Russian pro-
CAPITAL WANTED paganda. It’s hard to keep it
to three words anymore.
The problem is, there’s no
12 y.o. IT Staffing CO / $100M+ better way to track someone
Govt contracts seek PRIVATE lender/ down, alert a network of
investor for $10M refinance loan paid people you know to big news
off through $5M annual ESOP tax and, yes, wish someone a
reimbursement for cost plus govt happy birthday.
contractors. No brokers. 530-307-0103 So how can we live with
Facebook—and with ourselves?
TRAVEL Take out your phone and
follow these steps to tame
that wild beast of a news feed.
Save Up To 60%
First & Business Prioritize People
INTERNATIONAL The first step is to impose
Major Airlines, Corporate Travel
Never Fly Coach Again!
some order on your friend
www.cooktravel.net list. In the iPhone app, tap
(800) 435-8776 the three horizontal lines at
the bottom and scroll down
too much noise. Unfortu-
nately, you can only prioritize
30, so…sorry, Cousin Rick!
ID Close Friends
There is actually a second
way to tell Facebook who you
care about, by marking peo-
ple as “close friends.” (Like-
wise, you can downgrade
someone with an “acquain-
tance” label.) Click through to
a friend’s profile page and hit
the blue “friends” icon. Tap
“edit friend lists” to add them
to “close friends” or “acquain-
tances”—or any other lists
that appear. People won’t be
able to see how you’ve classi-
fied them.
If you want to view a feed
consisting only of close
friends, click the three hori-
zontal lines and select Feeds.
ple piecemeal.
Hide and See Fewer
Even if you pare back
your people, your favorites
may post things you don’t
want to see.
On an annoying post, tap
the three dots, and then select
“Hide post.” You’ll notice it
also says, “See fewer posts
like this.”
A Facebook spokeswoman
said that when you tap this
option, an algorithm takes
different factors into account,
including whether the post
features photos, videos or
links to articles, what time of
day it is, and yes, what topics
it covers, including politics.
Unfortunately, you can’t
specify what it was about the
post you didn’t like.
Pages Only. If that is too con-
fusing, go to search and type
“Pages Liked By Me.” The first
result there is a liked page—
tap “see all” to get the rest.
Think about whether
those likes reflect your cur-
rent interests; if not, unlike.
If, after a few days, this
exercise brings you no joy,
maybe switch to Instagram.
Though that Facebook-
owned network was also hit
by Russian-backed ads—and
also has an algorithm decid-
ing what you see—it can still
feel more like what Facebook
used to be. You know, a
photo-heavy stream with
plenty of brides and babies.
For more Facebook tips, go
to wsj.com/tech. Write to
katie.bindley@wsj.com.
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. Thursday, November 9, 2017 | B5

MANAGEMENT

Maneuvering Through Career Changes WORKAROUND

Matchmaker
Former Marine Charles Phillips positions business-software provider Infor as a challenger to Oracle
Sets Up App
For Mentors
BY VANESSA FUHRMANS ing to buy something they
view as risky. They don’t re-
Charles Phillips is no ally understand technology. I
stranger to reinvention. A write it down on the back of Will a generation accus-
captain in the Marine Corps my card, say ‘Call me if you tomed to swiping right to
in his 20s, he went on to be- get nervous, anytime—24/7.’ find dates do the same to ex-
come one of the dot-com That goes a long way with pand its professional net-
boom’s most in- people. work?
BOSS fluential sages as That is the hope of the
TALK a technology an- WSJ: What lessons did you makers of Bumble, a dating
alyst for Morgan take from working with Larry app known for allowing
Stanley. In 2003, Ellison at Oracle? women to initiate contact
Larry Ellison plucked him to MR. PHILLIPS: The best with men. Bumble last
be Oracle Corp.’s president thing I learned at Oracle was month began allowing its
and lead a seven-year, $35- speed. Speed is better than more than 22 million regis-
billion acquisition spree. perfection. If you’re sitting tered users to search for
Mr. Phillips’s latest trans- around for six months debat- prospective mentors and col-
formation has him turning ing something, usually the leagues, in addition to ro-
the privately held business- thing you’re debating has mantic interests, using dif-

STEPHANIE AARONSON/THE WALL STREET JOURNAL

software provider he joined
as chief executive in 2010, In-
for Inc., into a formidable, al-
beit smaller, rival to Oracle, in
part by designing products
with a more intuitive feel and
building applications for in-
dustry-specific processes.
Infor, for instance, created
a software tool for brewers
that measures the quality of
hops and ensures vats are full
to maximize productivity. To
recruit more software-engi-
neering and design talent, he
relocated the company to
New York City from Al-
pharetta, Ga., in 2012.
Infor is now taking the ap-
proach to businesses at Koch
Industries Inc. Early this
year, the conglomerate—
widely known for the conser-
vative political agenda of the
brothers who control it,
Charles and David Koch—in-
vested more than $2 billion in
Infor, a stake that values the
software company at roughly
$10.5 billion. Infor is design-
ing and developing software
for the shareholder.
Mr. Phillips, who is active
in Democratic politics and
planning to start a nonparti-
san political-action commit-
tee with other African-Ameri-
can executives, says the
partnership doesn’t change
Infor’s strategy. “It just gives
us a lot more ways to get
there,” says Mr. Phillips, who
recently sat down with The
‘We move a lot faster than a normal company.’
Infor Chief Executive Charles Phillips
Wall Street Journal in New team have an unusual office
York. Here are edited ex- arrangement. How does that
cerpts: work?
MR. PHILLIPS: None of us
THE WALL STREET JOUR- have offices. We have basi-
NAL: Did the investment cally an oversize square table,
from Koch spur questions and the entire executive staff
from employees? sits around it. There are no
MR. PHILLIPS: Initially a secrets, if you’re sitting
couple customers and em- around each other every day.
ployees asked about that, but We move a lot faster than a
far less than I thought. I’ve normal company. We don’t
been active politically for so have to wait three weeks to
many years and supporting call a meeting for an hour.
many Democratic candidates We’re just doing it on the fly.
and other causes, I already
had a known view that people WSJ: You created an in-house
knew wasn’t going to change. design firm to make business
[The questions] went away software more elegant and in-
after the first couple of tuitive. What’s driving that?
weeks. MR. PHILLIPS: The users
who grew up using Apple de-
WSJ: You and your executive vices and smartphones—at
changed over that time.
You’re never going to get a
consensus, so let’s make a de-
cision and go and we’ll, of
course, correct it if we have
to.
WSJ: What did you decide to
do differently at Infor?
MR. PHILLIPS: I’m a bit
more hands on, engaging with
people at all levels of the
company, making people feel
a sense of purpose. The best
leaders in the Marine Corps
were the guys who created a
relationship with the people
in their unit so that those
people didn’t want to disap-
point them. That is hard to
some point, they are going to get in business, but the mili-
demand that. Your personal tary has that and I try to
computing devices are better draw from that more.
than what businesses build
and use, at least from the WSJ: You’ve switched careers
user standpoint. It’s a differ- several times. Take us into
ent type of person who un- your mind-set as you’ve made
derstands how to build appli- those big transitions.
cations that are beautiful and MR. PHILLIPS: One of the
exciting. That’s one of the things my father taught me
reasons we moved to New is: Do things that can be mea-
York—because a lot of people sured, because you can’t rely
come to New York to study on people liking you. You
and work in design. won’t have the same access as
maybe some other people, but
WSJ: As a technology ana- if you can perform and dem-
lyst, you used a toll-free num- onstrate that you can per-
ber to network with industry form, people will always take
executives. Does 1-800-MR- the next step with you. That’s
CHUCK still work? been instrumental for me be-
MR. PHILLIPS: I give it to cause I could always demon-
clients. A lot of these custom- strate numbers-wise or some-
ers, they’re CEOs or CFOs try- thing technical that worked.
ferent profiles.
It isn’t the first dating
service to do so. Matchmak-
ing website eHarmony Inc.
last year launched a job-
search tool called Elevated
Careers that connected users
with prospective employers.
It sold the business in Au-
gust to Candidate Guru, a
small recruiting startup. Tin-
der designed a networking
app for members of pub-
lisher Forbes Media’s “30
Under 30” lists in 2015.
Yet Bumble says its prod-
uct, dubbed Bumble Bizz, is
different. The company sees
a market opportunity in let-
ting women steer their ca-
reers in a safe, casual set-
ting, said Chief Operating
Officer Sarah Jones Simmer,
who declined to say how
much the company has spent
on its new business-focused
platform.
Bumble’s users can now
create separate professional
profiles and browse photos
and work samples of poten-
tial business connections on
their smartphones. When
two users of opposite gen-
ders swipe right on each
other’s profiles, it enables
the woman to strike up a
text chat. Either party can
initiate a conversation if the
users are the same gender.
Users swipe left on a profile
if they aren’t interested.
—Kelsey Gee

The New WSJ iPhone App

Save and Share

Easily share stories or save
them for offline reading.

Personalized News Feed

Discover articles through a
news feed built for you.

An enhanced reading experience.

Introducing our latest app feature—MyWSJ. Discover content through

a personalized news feed, save articles to read later and easily share
stories with others. Available now on the new WSJ iPhone app.

DOWNLOAD NOW

© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6158
B6 | Thursday, November 9, 2017
Christian Dior’s Chief to Depart
BY MATTHEW DALTON
PARIS—Sidney Toledano
plans to step aside after 20
years as chief executive of
Christian Dior Couture as cor-
porate parent LVMH Moët
Hennessy Louis Vuitton seeks
to inject new blood into its se-
nior ranks.
Wednesday’s announcement
marks the end of an era at
Dior, during which Mr. Tole-
dano, 66 years old, turned the
elite brand into a global fash-
ion powerhouse with annual
sales of more than €2 billion
($2.3 billion).
Pietro Beccari, the current
chief executive of Fendi, also
part of LVMH, was named to
succeed Mr. Toledano. Mr.
Beccari is highly regarded
within LVMH for having engi-
neered a turnaround at Fendi.
Under his tenure, sales grew
from an estimated €600 mil-
lion to €1 billion.
“Pietro has an excellent
track record,” said Bernard Ar-
nault, the French billionaire
who is chief executive and con-
trolling shareholder of LVMH.
Mr. Arnault gave Mr. Tole-
ICAHN
Continued from Page One
immediately available for com-
ment.
The activist investor had
long been publicly campaign-
ing to change the environmen-
tal rule, which governs how
renewable fuels can be added
to gasoline. Refiners either
have to add the renewable fuel
or buy credits from those who
do. Mr. Icahn argued the rule
put the burden on smaller re-
finers, like CVR, instead of big
oil companies. And he argued
the credits had become a sub-
ject of Wall Street speculation,
out of sync with the initial in-
ADVERTISEMENT
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds

  
  
* *** THE WALL STREET JOURNAL.
BUSINESS NEWS
Equifax CEO Unsure
sively under Mr. Arnault’s
control.
If Data Is Encrypted
When Mr. Toledano took
over at the brand in 1998, an- BY ROBERT MCMILLAN is now encrypting the con-
nual sales were around €200 AND ANNAMARIA ANDRIOTIS sumer data it stored on its
million. He embarked on a computers—a basic step in hid-
store-building spree and ex- Two months after Equifax ing sensitive information from
panded the business dramati- Inc. reported one of the worst hackers, and one the company
cally in Asia. He also anchored data breaches in history, its in- previously admitted it didn’t
the company as designers terim chief executive told a take before the breach.
came and went. He clashed congressional hearing Wednes- “I don’t know at this stage,”
with Hedi Slimane and fired day he wasn’t sure whether Mr. Barros said.
John Galliano after the de- the company was encrypting The answer was disappoint-
TORU HANAI/REUTERS
signer was recorded shouting consumer data. ing, said Avivah Litan, an ana-
anti-Semitic insults at a bar in Equifax announced Sept. 7 lyst with research firm Gartner
Paris. Mr. Galliano apologized it was breached and that hack- Inc. “He should have asked his
and said he was seeking help. ers accessed data including staff that the day he took
The move elevates Mr. Bec- names, dates of birth and So- over,” she said.
Sidney Toledano, exiting chief executive of Christian Dior Couture, cari to one of the top spots in cial Security numbers for 145.5 Mr. Barros has been Equifax’s
is seen at the luxury retailer’s Tokyo flagship store in April. the fashion world. Dior’s sales million U.S. consumers. Several chief executive since Sept. 26,
have surged in recent years, executives, including the CEO, when the company announced
dano a new job as head of want a new challenge.” propelled by strong demand in stepped aside in the wake of Richard Smith was retiring. Be-
LVMH Fashion Group, which Wednesday’s move is the Asia. The brand, however, is the disclosure. fore that, Mr. Barros was head
manages some of the brand’s first major shake-up at Dior significantly smaller than Equifax has quadrupled of the company’s Asia-Pacific
smaller fashion labels includ- since Mr. Arnault this year French rival Chanel and should spending on security, updated business.
ing Celine, Givenchy and Marc spent €12 billion to unite the have room to grow, said Luca its security tools and changed Equifax is in the process of
Jacobs. Mr. Arnault suggested fashion house with LVMH. Solca, analyst at Exane BNP its corporate structure since “either encrypting or deleting”
the move to Mr. Toledano, and Previously, the Arnault family Paribas. the breach, Paulino do Rego data stored on its computer
he agreed, Mr. Toledano said. owned part of Dior through a “The benchmark for Dior is Barros Jr., the interim chief, storage systems, an Equifax
He will start the new role early holding company that also Chanel,” Mr. Solca said. “It has said during a hearing by the spokeswoman said in an email.
next year. owned part of LVMH. But Dior a similar allure and sophistica- Senate Commerce Committee. Since the breach, “Equifax has
“He never imposed some- the brand was independent tion and it’s coming from the But Mr. Barros stumbled deployed multiple methodolo-
thing on me,” Mr. Toledano from LVMH, even though the same background, which is when asked by Sen. Cory Gard- gies to strengthen security and
said in an interview. “I said I companies cooperated exten- couture.” ner (R., Colo.) whether Equifax protect data,” she said.
tent of the law and costing his
company millions.
His relationship was seen
as so close to the new admin-
the EPA would move quickly.
CVR, meanwhile, slowed its
purchases of the credits, build-
ing up sizable obligations, a
Lipinski railed against the de-
cision on a conference call last
week.
“I am also surprised that
tion installed a longtime advo-
cate of offshore oil, Scott An-
gelle, as industry’s chief safety
regulator.
dozens of leaders of smaller
businesses as well. The White
House has described its out-
reach to business as a course
istration that other investors bet that the prices of the cred- the Trump administration The administration has correction from the Obama ad-
piled into CVR stock upon Mr. its would plunge before the caved and failed to drain the boasted about its achieve- ministration, which Republi-
Trump’s election, sending its swamp as promised,” he said. ments in reversing rules and cans blame for imposing ex-
stock and others soaring on CVR now expects to spend regulations opposed by busi- cessive regulations on
the belief the rule would be $235 million to $265 million nesses. Mr. Trump’s budget of- business.
changed.
The inquiry into Mr. on the credits this year, com- fice said this spring that it had But business leaders have
CVR stock is up 145% since Icahn provides fodder pared with an earlier estimate cut by 20% the amount of reg- sometimes recoiled, as they
the election, boosting Mr. of $170 million. ulatory activity across the en- did this summer. Then, two
Icahn’s 82% stake by $1.3 bil-
for critics of the Mr. Icahn isn’t the only tire federal government, in- councils of chief executives
lion. Trump White House. business ally of Mr. Trump to cluding proposed rules from formed to advise the president
Mr. Icahn played a role in draw criticism to the White the past administration that on business and economic pol-
helping Mr. Trump chose Scott House. Mr. Pruitt has drawn the White House halted. icy imploded after the presi-
Pruitt as head of the Environ- the ire of environmentalists Mr. Trump embraced corpo- dent defended some of the
mental Protection Agency, company needed them. and some congressional Demo- rate chieftains early on in his participants in a white su-
which was responsible for the Last month, Mr. Pruitt an- crats for his efforts to halt or first year in office, convening premacist demonstration in
rule. Mr. Icahn has previously nounced the rule wouldn’t roll back regulations on every- a series of task forces and Charlottesville, Va.
said he discussed his concerns change. thing from methane emissions public discussions at the —Austen Hufford
with Mr. Pruitt and had hoped CVR Chief Executive Jack to pesticides. The administra- White House that included contributed to this article.
BANKRUPTCIES

    

      7#'#% 
$ $#( &@# ' +A7#%
 # 7#'#%  <" ) " "1"8 )="6F  )"9 >1"<"% =<6 8 1  < 0

  



        !" 66  " 718 6 
" 9"8 ""8   < 661"  %
 " -"  ""%  )"96 +, "66 8
  "#$% &'(##'
"6
"6 " 8 >" !8   =< 8   "  !"1< !8 <  " 
   !" #$% $&#'  (&& )* * +, " +, .6%  6%  )"6% " 86 <  "  >" !" " 1 8  6
"  8
"6 " 8  8 >"1 *
-"  !.   !" #$% $&#'  /&& )* * +,
 !.   !" ##% $&#'  (&& )* * +,  67' $#( 44F * ?1)* >>9 6 > < >>9 %  > < ?1)
"6 6< <9 "
-"  "   !" $&% $&#'  #&&& * * +,      6#6$ =  +==6#3  6
$' =  $  &$$>' 67' $#( 1" 8 !8  8 " > 8  " 718
"6% < !"6B 66 " 8 6160
0  0  1"  * 0#2 ##(3$0&& #= % $$ 6#3 # =7$$ ' ?$ #=6# $( ' $ = ' # G6@ = 76 6" <"% " 8 <" )"8 +1 8 >- > 8 > < >", >"% " ! 61!. 
)&*
 
+*
* *) , ")
+ --+*
& 
) &$$>' 67' $#(   7 =  $$$ 67#@ 76 &$$>' 67' $#(H   8 "< >   "6) >% 8  "  66  " >" <
    " !>"

 )
+ -&))+* , )
+ A7$  44F =  (7 = 76 &$$>' 67' $#( '

##
 A7#'   < >>9    =<% " % " "6 1 > < <)" ## 66 " < 


 





 * ./0   & &-++ #' 7' 6# 04  =  :76% 'H 6 76  (  >#$$ ' 
$'
"6% 1 < >" 1%   ?1 > <
1"<6 " % <
&
 )
+ -&))+* , &
*
+
& , -
*-
+ * &**&1+-+) , = 76 &$$>' 67' $#( #(#'H  ' 76  (   >#6 
$' = 76 6 > < !"6B 666 )1"61  <
1"<6 " % ! !"00)6666

1 2
2 )

 &$$>' 67' $#(  @'  # >##@ -   =< < <)" ## 66  < 
"6% < >" 1%

  


   

  

 

 
 

 
##% )G $#( 44F   ?1 > <
 +1 <
 1)) ,% < 661"  %
 

  
 


 



 


 

  $  $' @   '#== (      6#6$ =  $ =  < 6 > 96 >"  < )1"61 > -"  > < % < 61  > <


  
 
  


 



 


  +==6#3    ' 
##% )G $#( 6(  &$$>'
##% )G $#( 6 % " <  6" > < %  < )")"8  ! 6"!1 1" < % 1
$' =  &$$>'
##% )G $#( $$ 6#3
%( # ,7$$ #  >#

##
  1 6 "8 <"%  66% 6% 6    " 60
    
   
4 1 " <"   )6) 96   < )" 1  -" 
   
  5   76  (  >#$$ '  &$$>'
##% )G $#( #(#'
 1$ 67' 44F > <  +1 8 <" )60)  A "    ! A   =<
 % ' '' 3(  4  5#6$7 ( '8 96:  ;<  "   ) > < "6"11" " 71 > < !"6,% ?)  6 > >"1% =0
#'  :76% 7 =  ##6 = $>  5 :76% 78 3'   $#(
>1 61% " "66  !8 61< ?1) "8 6 "  !8   "" >



  

  
!

"
" #  
 $$  % &" % " ' () )  G  $'%
#' # ,7$$  ># #?' #   +==6#3      
<
A"1)8 1" " <  1" +< >"% < C?1) 6D,* >>9
 " 
%*
" 
+ 96:  ;;<  # (%  ('' 7$('  ('#?' =( 6#6$ =  $ = #  +==6#3   ##  '  1$ 67' $#( 6(
6 > < >>9 %  "6 +1 < 71 "16, 6< <9 8 "< > %
#(  #(  5#6$7 (8  6##@ 'A7 #=(# >##  (#@ = 6  &$$>' 1$ 67' $#( 6 $' =  &$$>' 1$ 67' $#( $$ 6#3
# 0 = #$  =  #'  '   BB 4
 
&  5 :76% '8 <" " " "99 > < 66% 6 < ?1) "6 >" 8 ?1) 6%

%( # ,7$$ #  =  &$$>' (7 = # $#( ,  3#'6 = '7 $' =
)"9% <=9"% < =<6 8<  < ""8  < % < ?1) > <

5 
  
4 &$$>' 1$ 67' $#( $$  6#3

##
  667 = 76 &$$>'
!"6B ""6 " 61!.  6 (*#+$, > <  *
  6( 4 4  444 ( +)    =  67$ (%  '  1$ 67' $#(
*
.1* ) < 1"" > < >>9 %  "6 >  6  718
"0
C# #@  5?(# #@8 >#$$  $' =  $ !3# " % #'  ;
6(% $#( *#' 66  <" )"6  "6%  =< <" "6)9 )"6 " >" " >-6%  )86%
:76% "7'@ # 7( 0 0 ,$   #'  :76% 7 =  ##6   =  +==6#3  6
6(% $#( $$  *#' 7C6   #@ =
= $> /;  -:  2#$(#@ $> ./4  6#' 6?(# =  ! 6% "86% 96"6% >-"6% ""6% )""6 " )")6%  < ? 66 =<
$' = 1$ 67' $#( # $  7' 
$ #6$7'#@  1$$ $( ' < % 6< ! . >" A 8 6  ">" =< <  )  > < %


"
" #  
 $$  % &" % " ' ()  " 
%*
" 
+ 96:  && &3$ ' ' %   & =      A7#'   '##7'
 ;<  # (%  ('' 7$('  ('#?' =( #(  #( 77   (  " )" 8 .  >"9" !"" >" A 8  6 < ?1)
77  
$ #6$7'#@  *#' 7 = &6# ' #A7#'# )7 +G *3 "6% !" 66 " <"0 "8 66%  <" "6)9 666% < 6 66
=  5
$8 ' =  7$ "7#6 #%   / ,$ # 7# 7 $$  =' %      *@#I'
  # #=6# =  (
= "7#6 ((6#$ #  5'# 78 4 #3#% &37 ) # -01 * =< < " 6 > < % 1  .1 >" +,   " 1  8 "
>#  '# 7 6#'#@ #76 =  '  5&& &3$ '8 ==67#@  (7 = 76 $#6$
6(% $#( ' % 
6(% $#( $$ 6#3 76 8  " <" )" > 8 A  1 > "   =< " =< "6)  8

$ #  6'#@ '#@ =  '# 7  $#6$ ) ?(#
#@ ''##$  '#== (  >#$$   = # 
$ 7$(  6 " 718
"66F +!, >"% <% % " "9" !8 8 " " 6
(%  'C7'  ' =( #(  #( >#7 =7 #6  6'# $'  0
6(% +A7#% *#' 8 .1 % ="% "% " ""  1 > "   =< " =< "6)  8 61<
 # # #   %  76( = 76  'C7(  ( #
  6 " 718
"66F +, "% )">% " >" 8 1 !" > 8 A 
 67   ?(#
#@ )
$ (%  ('#?' # 66'6 >#  :76%   +==6#3  
$' = $ 0
6(% +A7#%
 # 6 7#'#%  1 > "   =< " =< "6)  8 61<  6 " 718
"66F +, 66"
'  ,'$ *7$ = :76%
6'7  ( = 
$ '  $#6$ $> ># $$ 6#3 76 (   = # 
$ 7$( 7C6   #@ =
$' = 8 "< > 6>>% 61!"% " "1)  > 8 A  1 > "   =< "
7 =7 #6 #     7$ =  ?(#
#@ 1$ 67' $#( # $  7' 
$ #6$7'#@  1$$ $( '  && =< "6)  8 61<  6 " 718
"66F  +,   " 1  8 "

5   
  &3$ ' 8  " <" )" > 8 A  1 > "   =< " =< "6)  8

 66'6 >#  ( = 
$ '  :76% ' $' = $#(   61<  6 " 718
"66 "6% ?1)% 6 " <"=6 "66 )1"61  <
7#(#' % 
$  '('  3 66' 
$ ' =   #$'  3   
  
4  
 
% ?)  " 6 66 =< <
*

$
$' =
 +A7#%
 ' $' = $#( @#     #(#'  6(  4  044 ( +)  5D#@ '$#8 # $#'   ''$# %  
  
:
  
 
% 
$ '  >#$$ 6#3  '##7#  667 = 76 $#(  #$'  3  
$ >#6 $$ 66#@  C6#@ 
$ (7  6#3' )  67'  #@#$ '7$% 6( / C6#  6?(# =  ' ('#?6#  
$ #= % (7 #  # >##@H
; 6 . 4   $#' %  :76% 7   6' '  5D#@ $' $$ (7 67$$%  6#3'   #   D#@ '$# %
#( $:   5$#( ##   ( ' '' =  C6#@ %H ###   (7 #= $#6$ ' 7
*6' 8 = '(##@  # #$'  6#3 $#6##  #6 (#$ # 66# ' $#6## &@8 #= # (#$' 
1 $$
6#@ 6E
#( $:  /4 )#' &37 =  $#( =  7( =
 +A7#%
 $' % 76 %H #3  ># #67$#% 
># 
$ '  3  
$ ' ,$ > K: K 44  ## '$#3' % '  3#@ 67# 
1 $$
6#@ 6E # ' 7 = % C6#   #6$7 ( 'E 
$ ' ' ('#?6
55    5  
5  
 
#( $:  /4 )#' &37 ' ,$ > K: K 44 '7#@ ($ 7# 7 $ #  
$  >7$' $3 76 C6#H ' 3  ?$' @ ># = = 3#6 >#
0 )
$   ('#=%  #@ = 6#
$' = $#( '
$' =
 +A7#% $ (%  7(#'   #   D#@ '$# 3#  $# $$#@ $ % 3###@ EE  :76% 7 ' 3'   %  6#3'  $  6(  4  ;44

 $#( ' +A7#%
  6$#?' = $$ 7 #6$7'#@ 3#@ 6?(# ' 6#(6$:6(E
1E 6$#6:#@  57(# + $$8 ' =$$>#@  #76#   ># ( +)  5?(# C6# '$#8 %  =$$>#@ # # 667$   
'##7# 77  
$  =$$> +G6 #  L '#6# '  3#'' 3 % $$ (#'   $#( ' $#6# 
7$ 2# *#=:#' 2 N 1# 
 /0 &37 =  &(#6 > K: > K:

 
$ $#( &@# ' +A7#%
 # $'
1 2#''> ' =E:E
= # &@ % =6#(#$   $6#6 ( $$   67' 44. & !$$% & # ' &$#6 $#$ + '  K7@ >% @ N )%$ 

(6  17 '
:
%    ;

 *'% A7 444  !#@  2#$(#@ $> ./4 &
7$# ! -@ 
66  " 718 6  9"8  )
$ 6# 6# #C76# $ ' G67$# 3## # &#6$ M = 
$ ) 16 ' "7#
 *76:#H ## 67$   +A7#% ((#  > *7'#6: 
 3

"6  = $>
#  67@'  3#> 
$ #6$7'#@ &#6$ M = 
$ # # #% )#( A7 > K: > K: 44 & * " : ' &'> - %  > *7'#6:
"  * " 66 !8 < !"6* =<6 8<   <
  < 
  ,#6#$   -& 4 & 3  3# '  -@(% -66:

 67' $#( 44F ""8% 6 > < >>9 %   < >16 ? 1<"@ !8 ))! =% >"  2$: N *' 
 40  -:  0 ,$ 2#$(#@ $> ./4 & -:
     6#6$ =  +==6#3  6
$' =  $
 &$$>' 67' $#(  91! 6"% < 718 > =<< 6 <"!8 -" % < !" 66 " & ,#:H ' ### 67$   '#L ((#  $: *( 
 4 -:  7#
#= % $$ 6#3 # =7$$ ' ?$ #=6# $( ' $ = ' # G6@ = 76   "6  6<" !8 < 71 "16% < !"6  < 66% >" 8  /44 2#$(#@ $> ./4 & $%  ) ' "= 2 -#I '  $: *( 

&$$>' 67' $#(   7 =  $$$ 67#@ 76 &$$>' 67' $#(H     6% !6% 616% .1 6%  6%  6% !6% " 6% 166 > % ) %$ 7#$'#@ ;40 G#@ &37 > K: > K: 4; & -#6$  6'$H #3
A7$  44F =  (7 = 76 &$$>' 67' $#( '

##
 A7#'   "<6 > 6>>% <" "<6%  !6 =<69"% 1 8 "99  6% 66"  =?6 =  #'  )7 /;; !#@  7# 4 2#$(#@ $> ./4 &
#' 7' 6# 04  =  :76% 'H 6 76  (  >#$$ ' 
$' " < 1 ! 66" "8 " "8  !<> > < 71 "16% < !"6% " < -:  !%H ' 3 67$   -# ) 17 ,##@ 
 44 2$$#@ 
= 76 &$$>' 67' $#( #(#'H  ' 76  (   >#6 
$' = 76 66% =<<" 71 " 171% -? " % 1" " 1 1"% A= " 2 7# 44 ) # -0! ! & * ) ' *6$ @# C6#
&$$>' 67' $#(  @'  # >##@ 1A=% >"6 " 1>"6% ?6 " <">" "6%  =% 718% " <"=6%  8    #($% ?$' ' 3' #  (  = 3 (%   6#'' %  :


##% )G $#( 44F   166 >  66" " < 1 )66!8 <9 ! 66"  !<> > < 710 76% 7
$ 
$' @   '#== (      6#6$ =  $ =   "16% < !"6% " < 66 +=<<" 918 " 98, !6 % "  " . C6#   && &3$ ' #= % (7 #  # >##@H ##   ( '
+==6#3    ' 
##% )G $#( 6(  &$$>'
##% )G $#( 6 "6 >" %  =< "  )"% < !"6% < 66 " < !"6B 61!6"6% < 1 > '' =  C6#@ %H ###  ># #67$#%  # ' 7 = % C6#  

$' =  &$$>'
##% )G $#( $$ 6#3
%( # ,7$$ #  >#

##
 < !"6B !16666% < 10>01" >>"6  "6"11" " 71 < !"6% < - 
$  && &3$ 'H #3 #6$7' % 3#'6  (#$   C6#@ % #'  $%
  76  (  >#$$ '  &$$>'
##% )G $#( #(#' )"61 > < <)" ## 66 " < 
"6% < )") "6  "0    ?(#
#@H ' 3  3'   %  6#3'  $  6( 

 + $#( 2#'> 6 =< 8 !" " 8 6%   < ? 61< 6 " 1"" A ) )""  < 4  044 ( +)  5'# C6# '$#8 %  =$$>#@ # # '# 67$
 &$#6$
  +98% < C6 !6D,*    #:( +$$# 
 044 ((6 7 2H .. %  ) # -0

; 1$ 67' 44F "8 > < -"  "" 6< 61 <
A"1)8 1"B6 ))"9% )1"61   . &

>' '  #6$ ## 67$   -# ) 17 ,##@ 

$#(
A"1)8 1 E&#E% > < "66 6 >"<  <6 " ;* % =<< 16 !8 ">" 44 2$$#@  2 7# 44 ) # -0! ! & * ) ' *6$
)  G  $'%
#' # ,7$$  ># #?' #   +==6#3       < > < " )"966  -6  <"%  >1"<"% 6< 61 < @# ### '# 67$   +A7#% ((# -6-#$$ 
H :?$'
$6 / % 
6#6$ =  $ = #  +==6#3   ##  '  1$ 67' $#( 6(
A"1)8 1"B6 - < 61< "6 6 +,  ?< >" <   91! 6"0 7# ;;44 ) # -0" ) & &'> ! ' #$# ,$$H #3 '# 67$  
 &$$>' 1$ 67' $#( 6
$' =  &$$>' 1$ 67' $#( $$ 6#3  )"9 !8 < !" 66F +!,   >< 6    )" 6 > <  6 '#L ((# $ 6: N $6:>$$ 
44 6#
$I ;4 !#@  2 )

%( # ,7$$ #  =  &$$>' (7 = # $#( ,  3#'6 = '7 # 66'6 "6 !8 <6 " ;* F +,  < !6 "66 > < !"6  <" 66F +, >"% 710 # -0
 & *% "6 ' % !7:7$>#6IH ' 3  #   3#6 #
>#  1$$ $(
$' = &$$>' 1$ 67' $#( $$  6#3

# !%  "6!F +, 9   >" 1   ))"18 >" <"F  +>,  !" =7'   -#L >#  >>>%6(E6E
1 ' 7A7$% ?$' >#  '# 7
#
  667 = 76 &$$>' 1$ 67' $#(  8
"6 66" 8  " 16 >  "6 !8 <6 " ;* * C6#    #($% ?$' ' 3' #  (  = 3 (%   6#'' %

0
6(% $#( *#'
* " 66 !8 "6 >  6* =<6 8<   <
 "  '# 7
  =  +==6#3  6
6(% $#( $$  *#' 7C6   #@ = < 661"    < ""8% 6 > < >>9 % < <"0
"8 66 6<
!    <9 ! 1698% !618% 18% ""9!8%  >"9" "6 

  
   
  5

$' = 1$ 67' $#( # $
; 7' 
$ #6$7'#@  1$$ $( ' 4 # =  #6$7 ( ' 
$  3#$$ = #6# '7#@ @7$
 && &3$ ' ' %   & =      A7#'   '##7'
"6 >" 8    6% !6% 616% .1 6%  0
77  
$ #6$7'#@  *#' 7 = &6# ' #A7#'# )7 +G *3
 6<" !8 < 6
6%  6% !6% " 6% 166 > % "<6 > 6>>% <" "<6%  !6 =<0 7# 7 -'% 7@ ,#'% /44 (  ;44 ( G6$7'#@ ='$ $#'%  
=?6 =  6$: =  :76% 7 ' ,$ /;  -:  2#$(#@ $>
$$  =' %      *@#I'
  # #=6# =  ( 69"% =<<" >" "% "% 96 > >"% )"9 " 6 61"6 =6% 9
6% 1 8 "99  6% 66" " < 1 )66!8 <9 ! 66" "8 ./4
 ''## 6# = 
$ '  #6$7 ( (%  #' % 3###@ 
(7 = 76 $#6$
6(% $#( '
6(% $#( $$ 6#3 76 ''# ># (##' %  L $#( ' $#6## &@ #     EE
#$  '#== (  >#$$   = # 
$ 7$( " "8  !<> > < 6
"6 " <" >-6% =<<" 71 " 171%
-? " % 1" " 1 1"% A= " 1A=% >"6 " 1>"6% ?6 " 6#(6$:6(E
1E '  ># (##' %  -# #  &&
6'#@

 67## $#( J0 (#$$# #  ' 7   ''##$ J0 (#$$# #   >>>%6(E6E
1H % 66#@  L $#( ' $#6## &@
#( $: 
=( 7 = &6# 
6' <">" "6%  =% 718% " <"=6%  8   166 >  66" " < 1
)66!8 <9 ! 66"  !<> > < 6
"6 " <" >-6 +=<<" 910 3# $  /00 00  3# (#$  @$$O#(6$:6(H  =(  :76%
& =  +==6#3   67## $#( $$  &$$>'
 =7$$ ' ?$ #=6# $ 7L ># >>>'767@3 =  = &
&+* $@# ' >'  A7#'  66
( '#6@ ' $ =  67## $#( ' %  $#(  67## $#( 8 " 98, "  !<> > < " > 8  % !6  "  8 =8 " % "  8
" "6 >" %  =< "  )"% < 71 "16% < !"6% < !"6B 66 " '67(   :76% 7L ># '  6  #' 7@ 
&+* 3#6
3 '  67$'  @#   # 6 =  67## $#( ' 67##   >>>66767@3 +$6#6 6# = 
$ '  #6$7 ( >#$$
##@#  $ $(  #'# ' $ $( ##@#
6' $$  < !"6B 61!6"6% < 1 > < !"6B !16666% < 01" " 10>01" >>"6
 "6"11" " 71 < !"6% < >" 1% )")"% 6% 66 %  3#$$ =$$>#@  ?(#
#@  +&*  >>>'6( '   +L >#
#'   $ $( +6> =  67## $#( 77  ' # 66'6 >#  >>>6@3
&#6$ D = 
$ '  ?(# '   $' # 6> = '##7# 77   $ % " - > < 661"   " <
 +1 <
 1)) ,% "
= $$6#   3' %  ##6 7 7C6  &#6$ D  ' = 
$ 8 "% 6"1 % "6% " <" "  " 1  " " "   0 ' 3(  4 2#$(#@ $>
,  3#'6 = '7  67## $#( >#$$  6#3 # ?6#$ )7
  =< " )1"61  < 661"  % <
 +1 <
 1)) ,% < #
-  )"61 > < <)" ## 66 " < 
"6% < )1"61 > -" % < !"6  <6 66%  =< < 6 >1" 6 > < !"B6 >" ? -0

 +A7#%
  >#$$ ?6#$ )7
 
 +A7#%
  '##7'  1 !"% " 


* +>GAG

  6
*, +3H/#,F 

* +>GAG
1"
 667 =  67## $#( 7'  77  
$   $
$##== #7$# < )1"61 > 61 % < 61!. " >% " < "66 " 96 9 "6 %
8  < 6 "  <
% < !1666 " "1 "" 6 != < 70 A8%
*, +H&E/,F  

* +>GAG 6
6! G >!
*, +(2'&,F 

* +>GAG


 +A7#%

 *  = $' ##7$ & >#6 # #6#
1" A8 
*, +222H,F 


* +>GAG
1"
">"  )"6 >" 6
*,
'   >##  @ = J40  J44   1 "16% < !"6% < !"6B 66 " < !"6B 61!6"6%  <  <% 
8 6
"6%  < <" <% )") "6  " 6 =< 8 !"% " +#&E(,F 
4
* +>GAG
">"  "66 4"1)
*, +/$&&,F 



* +>GAG



$' =
 +A7#%
 $$ 6#3 #
 *  =  $' ##7$   )"6
*, +(E&E,F 
4

* +>GAG
4
9
*, +E/&3,F 
 0=
& 7' ' 7C6  
$ #6$7'#@  1$$ $( '  && &3$ ' 8 <"  "  66% "6% " % 9% " <" 1"" A ) !>"
< >>9 % ?)  6 > >"1% =>1 61% " "66  !8  <"0
"8 ")* +>GAG
1" A8  ")*, +#3EE,F  
 0= ")* +>GAG 6
6! G
)
$ $$>
$' =
 +A7#%
  $6  6#3 6# = 76
$ 6#' >! ")*, +/&23,F 
4
0= ")* +>GAG
4
9 ")*, +$#2(,F 


# #  =( = # ?6#$ )7
 '  #@  6#3 #
 *  = % 6 6 "  !8   "" > <
A"1)8 1" " <  1"*
"8 > < -"  "" 6< 61 <
A"1)8 1"B6 ))"9% )1"61  0= ")* +>GAG

   )"6 ")*, +3&/E,F 

 0= ")* +>GAG
 $' ##7$ & # 66'6 ># 
$ # G6@ = #
 +A7#%
1"
">"  )"6 >" 6 ")*, +$$&H,F 
4 0= ")* +>GAG
">" 

   # #
 +A7#%

$' = ?6#$ )7
 '
$' =
A"1)8 1 E&#E% > < "66 6 >"<  <6 " ;*
% =<< 16 !8 ">" <
> < " )"966  -6  <"%  >1"<"% 6< 61 <
A0 "66 4"1) ")*, +#$/E,F  
4 0= * +>GAG
">"  )"6 4"1) *%

 +A7#%
 >#$$ 6#3 '##7# = A7$ (7 =  7' 
$ 
  6 ")"6 < 66 > < !"6 >" "8 A= 6 
 6 %
*%
+A7#%
  
* #   '#==6 #7$   '#==#@ G ( = "1)8 1"B6 - < 61< "6 6 +,  ?< >" <   91! 6"
)"9 !8 < <"0
"8 66F +!,   >< 6    )" 6 > <  6
1" A8 ")*% 

 
"  ")*% "6)98, +#(#/,* < !"6B 
 #A7#'# )7 '  *@#I'
   (% 6A7$% 7$ # (  $ "66 6 222
1""" "% 1 #'&&% 19"%
"6< 1 !% % 2 $;3*
=3$  63# 
$' =
 +A7#%
 = 6#'# =  #$$% '#= "6 !8 <6 " ;*
F +,  < !6 "66 > < !"6  <" 66F +, >"% 710

=#@  ' # = G# =  #'#3#'7$
$' &#6$ D  = 
$ =7 '6# !%  "6!F +, 9   >" 1   ))"18 >" <"F  +>,  !" &$$ 6#$#I' ( 7' # # #6 7  ># '?' # $$ 3  6#3
 '##7#  >#$$  (' 
$' =
 +A7#%
 ' ?6#$ )7
  8
"6 66" 8  " 16 >  "6 !8 <6 " ;*
* (#@ 6#'  76 ( #  #6$7 (  
$  $#6$
+6 $'   # = 6#3#@ #
$ 6#'# 7@ > # >#6  " < 9 > 1!% =<6 8<  < ""8   < 661"
'6#' # @ '#$ #  %
 " -"  ""%  )"96 6< )"1 <  "  >" >"
THE WALL STREET JOURNAL. * * * * * Thursday, November 9, 2017 | B7

BUSINESS WATCH BUSINESS NEWS

AUTOS
EU Calls for Cutting
Emissions by 30%
KANG Korn Ferry officials have
declined to comment.
Mr. Kang’s arrival was
hailed by his new boss as ul-
Continued from page B1 tralow interest rates crimped
The European Union proposed years earlier. This article is returns across the industry.
Wednesday a 30% cut in carbon- drawn from dozens of inter- The New York pension fund’s
dioxide emissions from cars and views, legal proceedings, investment chief and other
vans in the decade through emails and government docu- pension officials had a plan to
2030, seeking to prod auto mak- ments. become a more active trader
ers toward cleaner technologies Mr. Kang’s path to running to squeeze out a better return,
led by electric vehicles. bond investments for one of which meant getting more
Brussels’s move comes as ef- the largest pension funds in brokers to find buyers or sell-
forts to accelerate development the country passed through ers.
of electric cars and hybrid vehi- some of the best-known firms In October 2014, Mr. Kang
cles to replace conventional in- on Wall Street. Mr. Kang was wrote a memo to his boss rec-
ternal-combustion engines 26 years old when in March ommending the fund add
gather pace world-wide. 2007 he joined one of the eight firms to its list of ap-
With their revamped emis- world’s biggest bond manag- proved brokers, including
sions regime, EU officials sig- ers, Pacific Investment Man- Sterne Agee, then Ms. Kelley’s
naled their intention to force Eu- agement Co., where he got to firm, and FTN Financial,
ropean motor companies to step know many of the senior bond where Mr. Schonhorn worked.
on the gas, launch electric vehi- salespeople, including Ms. Following the recommenda-
cles and compete with China, Kelley and Mr. Schonhorn. tions, the pension’s bond-trad-
the world’s biggest car market Salespeople found Mr. Kang ing business with each of
SCOTT OLSON/GETTY IMAGES

by sales and largest market for an affable client. “It’s no se- these firms soon surged.
electric vehicles. cret Nav had a reputation as Not long after Mr. Kang
Erik Jonnaert, secretary-gen- someone who enjoyed being settled in his new job, prose-
eral of European Automobile entertained,” said Michael cutors alleged, Mr. Schonhorn,
Manufacturers’ Association, reit- Lauterbach, a former bond Ms. Kelley and others began
erated auto makers’ call for 20% salesman who has known Mr. to lavish him with gifts in ex-
emission cuts by 2030. Kang since his days at Pimco change for more trading busi-
Sales of electric vehicles and Sears said sales at its existing namesake domestic stores plunged 17% in the third quarter. and remains a friend. ness—and the commissions
hybrids rose 44% to 152,694 in Mr. Kang left Pimco in they stood to gain for making
the first nine months of the ing locations continue to decline. pening. The reason cuts to the improve by at least $100 million. summer 2010 for a higher- those deals happen, according
year, making up only 1.3% of to- On Wednesday, Sears said heart of some of Sears’ prob- But Sears is likely to shrink paying job at the asset-man- to court documents.
tal sales, according to ACEA. sales at its existing namesake lems. Its stores are rundown, its even further. It said it reached agement arm of Guggenheim A spokesman for Stifel Fi-
—Emre Peker domestic stores plunged 17% in merchandise selection is limited an agreement with the Pension Partners. nancial Corp., which acquired
and William Boston the third quarter, following a and sales associates are scarce, Benefit Guaranty Corp. to re- However, a December 2012
string of negative comparable- according to shoppers and ana- lease 140 Sears properties that trip to New York—where he
SEARS HOLDINGS store sales dating back to the lysts. had been held as a backstop to attended a Rolling Stones con-
third quarter of 2014. Sales at Sears said the closure of un- the company’s pension obliga- cert with a salesman—set off
The charges expose a
Store Sales Decline existing Kmart stores dropped profitable stores helped to im- tions in return for pumping $407 alarm bells at Guggenheim’s practice many
Despite Closings 13% in the third quarter. prove its bottom line. It expects a million into its pension plan. compliance department, ac-
Sears has said it is closing its third-quarter loss between $525 —Suzanne Kapner cording to people familiar
believed had been
Sears Holdings Corp. has weakest locations, which should million and $595 million, less with the matter. Guggenheim’s rooted out years ago.
closed hundreds of stores in re- boost overall productivity. Yet than the $748 million it lost a HUMANA compliance executives con-
cent years, but sales at remain- the opposite appears to be hap- year ago. It expects cash flow to fronted Mr. Kang with nearly
View for 2018 a dozen instances where the
Is Downbeat firm believed that he had Sterne Agee, has said the firm
ADVERTISEMENT failed to report entertainment inherited the problem. A
Humana Inc.’s third-quarter salespeople paid for him, the spokeswoman for FTN, a unit
results beat analysts’ expecta- people said. The firm fired of First Horizon National
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
tions, but the company gave a
downbeat initial view of its
him in January 2013, accord-
ing to the people.
Corp., has said the charges to
which Mr. Schonhorn pleaded
earnings for 2018, saying its for- Mr. Kang was out of work guilty “reflect a betrayal of
mal guidance would likely fall for about a year before land- FTN and its values.”
INTERNATIONAL NOTICES CLASS ACTIONS below its target range despite ing a senior role at the New A person familiar with Mr.
projected enrollment growth. York state pension fund, Kang’s thinking said he had

  
  
  
  

    
For the most recent quarter, which was eager to overhaul cleared the vacations with

  
 
 
    net income rose to $499 million, the way it managed its portfo- salespeople with at least one
   
 

   
   !"# or $3.44 a share, compared with lio of bonds. pension official. That official






  "$% &'($$'



 

 
  $450 million, or $2.98 a share, a The fund hired Korn/Ferry said the trips were fine be-

  


 

 



   
 
  
 year ago. Excluding one-time International to search for a cause Mr. Kang had known the
) &
*+ + *)
)
* , 
+ &* + ) *+,
* &-
+*
*+.+/&*
   

+) 0+
) // )!  ) * *, 1+! )! *2 &0* +
0 ) * items, including costs related to new fixed-income boss, with salespeople as friends before

   !"
*+
 .+/ "&&+1 3 43 ) +0 /&+ 5 4

6* ) * 7&8# recent job cuts, Humana earned the recruiting firm helping se- he joined the pension fund,

 

 

     
 
    
  
 
 
# $%&'      
 

 
   $3.39 a share, up from $3.20 a lect five applicants for a the person said.
( 1 &+* *+* 1 )
.
* 99   ' :  $'  ;9<% 9 share. Analysts had expected phone interview. One was Mr. A spokesman for the pen-
:  $$< : = ><;  5? :  ' (  '<$' (

   !" :9% = ' $ 
  7(8# :  < : : <$( @' % 
9( adjusted earnings per share of Kang, who met in person with sion fund said officials have

 )* )* )+  ), '
$@ $
$ .9'  <9$' ' $$:: 7'
$$::8# $ $3.27. Revenue slid 3% from a pension officials in December never heard this claim, and
  
 

  '$A < <$ $'
  
  
 
     
# )   -  63B0 , 1#  7<9$$ $$A$8# ) ( =$ C  <$( year ago to $13.3 billion. 2013. He said he had lost his that its policies are clear.
 C   <9'  ' A$  C<$' '  78#
 '
' $  $  <9$$ $$A$  7' $(8# :  %( : D3 For 2018, Humana said it ex- job at Guggenheim because By February 2016, pension

  

 


   


($$ $ < '  ''$$ 54E   F<' D3 ($$# :  9 : &<$  pected growth in its Medicare the firm had no position for officials had learned the Secu-

<' $: % <$C' %  +A$G'  9A <$ $$A$ 9H9 

   
  
  <@($ :     
  


       ! Advantage business. Enrollment him in New York, where he in- rities and Exchange Commis-
       "#
 ><;  5?  (%  (''  7
8#
 F<A   =$ in its individual Medicare plans tended to live, according to a sion was looking into Ms. Kel-
  ! "   <$C   '$<A ' $I9<$ $ $ :C =$ <   ' $(
"      " ) ( $ <'$$' 9 C %  ;9<% 9 ' <@($ :  will likely rise in the range of report by the New York pen- ley’s expenses on Mr. Kang,
"  #$   $%#&  !
 & $A =$  '  <( 4 4  444 ( * )$(# : 
 !C$ " %   $'  ;9<% 9 :  $$< : = 150,000 to 180,000, said Brian sion fund. people familiar with the mat-
 "   ' ! !   
     ( 
J5 /;  ,$($A = BJ4 .$: . 9( K3 #  '($ A. Kane, chief financial officer. In a Dec. 18 email to the ter said. The retirement fund
=  ' (   ( ' <'$$ C$'' : $  $9$
"    "    ' '
 $ :$  ' 'H9 ' 9'  C' %  9L #  '($ Pressure on drug plans was pension fund’s investment didn’t wait for a resolution.
   )  "*
 '  + 
( ,-
=  (  9'  <$@' =$ <   
: : $( :
( 9 %L <#  '($ =   %  (  : 
one factor in the company’s chief, a pension employee On Feb. 26, New York state
.'!  )  #$ /     : $  $9$ '
 9'  ''L '#  <$' <@($ warning that its earnings guid- wrote that a Korn/Ferry team Common Retirement Fund in-
$%#&  #%0%% (( ! "   : 
L ' #  9 9 9<  (   9 (% '( $
! ! "  ( $< '
$$::M
'$C$'9 ' 
: : $(   % $( @' A$ ance for 2018 will come in be- leader had said Mr. Kang’s de- vestment chief Vicki Fuller
/" 1
*  $%#&   $ 
0    $CC$A  ' $( %9 =$  <9''
:( $$A % <C% $'$C$'9% A$   $      
low its usual target range of 11% parture from Guggenheim “all called Mr. Kang to her office,
2  ) 3 to 15% growth, and its guidance checked out.” When asked people familiar with the mat-
9A  <' :  ( =$< <' =$  <' $  :99 99
    2   ' :  $$< 9 =  <9$$ $$A$ $ '$A   ;9<%
9 ) '$A <$( $  <9$$ $$A$ A$ <$  $'$C$'9 for margin on its individual later by the New York Comp- ter said. “Hey, this isn’t work-
':'  9::<' % $ ( Medicare Advantage plans will troller’s Office, the team ing out,” she told him. “We’re

  C  ( $ C' ' 
 $ <@(' %  ;9<% 9
%9 =$ $;% C  ('% A$   $: %9 I<   H9 F<9$ :(  also likely be lower than its typi- leader couldn’t remember who letting you go.” She didn’t
( 9  ' <@($A 
 $ %' '$A % 
: %9 I< 
 ( ' 
   <@(' =$  % : 
M ::<$C 
cal goal of 4.5% to 5%. she had spoken to at Guggen- mention there was a continu-
% 9< I<$ (%  '' ( '  ('% =$  C$ $ <<$ =$  —Anna Wilde Mathews heim, according to the state’s ing SEC probe, people familiar
 : % ' C$A  (

. 1 &+* & /*/ *+ . ) * *))*/*) & *+
* & 6* 1+ +
0 ) ,
 and Cara Lombardo April report. with the matter said.
* &..*)* 1 ) *
& & ) * *))*/*)

: %9   (( :  (  $ '   $% $A$   $ 
<' :  ( %9 '  ' %$A = 9 %9 =$  H9$'  9($ 
<$( :(    ' 9H9 $< =$ $9 =$  <$( :( ' $9<$ : Mutual Funds | WSJ.com/fundresearch Net YTD Net YTD

LEGAL
9$ :  ($$A <$( A$   ':' $  <9$$ $$A$ Fund NAV Chg %Ret Fund NAV Chg %Ret
19 (% I<   ( % @$A  =$ I<$  <@($ : 
 Oppenheimer Y REITAdml r 120.08 +0.53 5.6
$A =$ $<9$%  $ ' 9 : % I<$ =$< (9  @' A DevMktY NA ... NA SmCapAdml 68.54 +0.14 12.0
=$ : : C$< =$  ;9<% 9 ' C'   $ $ <$C'    Explanatory Notes Data provided by
IntGrowY 43.25 +0.03 24.7 STBondAdml 10.43 -0.01 1.4

NOTICES
<(  4  544 ( *)#  7( I<$ '$8# %  9'$A' Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of Parnassus Fds STIGradeAdml 10.68 ... 2.3
' 9 '  :=$A ''$$ $ $# <<9    #
9 ,$ at least $500 million each. NAV is net asset value. Percentage performance figures ParnEqFd 44.32 +0.13 13.7 TotBdAdml 10.79 -0.01 3.5
+$:;$' , N 0$ 
 J3 &C9 :  &($< = 1; = 1; 44B are total returns, assuming reinvestment of all distributions and after subtracting
& !% & $ ' &$< $ *# ' # 19A =% A N )% 
 PIMCO Fds Instl TotIntBdIdxAdm 22.00 -0.01 2.4
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. AllAsset NA ... NA TotIntlAdmIdx r 30.17 +0.11 24.9
+'% H9 444  !$A  ,$($A = BJ4 &
9$ ! /A
 ) 0< ' "9$  +9<;$#L $$# <9   *H9$% (($ # = +9'$<; NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date TotRt 10.30 -0.01 5.1 TotStAdml 64.76 +0.09 17.0

 C )$( H9 = 1; = 1; 44 & + " ; ' &'= / return. 3-YR%RET is trailing three-year return annualized. PIMCO Funds A TxMIn r 14.28 +0.05 24.0
NA ... NA ValAdml 39.79 -0.01 11.9
ADVERTISE TODAY
%# # = +9'$<; 
  .$<$   /& 4 & C  C$# e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e IncomeFd
' # /A(% /<<; ,; N +' 
 43  /;  3 . and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, PIMCO Funds D WdsrllAdml 69.22 +0.03 12.1
,$($A = BJ4 & /; & .$;#L $$$# <9   '$M (($ # 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r IncomeFd NA ... NA WellsIAdml 65.48 -0.02 8.4
; +( 
 4 /;  9$ J44 ,$($A = BJ4 & %  PIMCO Funds Instl WelltnAdml 74.01 +0.01 11.8
) ' ": , /$G# ' # ; +( 
 ) % 9$'$A 543 F$A &C9
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper; IncomeFd NA ... NA WndsrAdml 79.39 +0.10 15.6
= 1; = 1; 45 & /$<  <'#L $C#  :@< :  $'  PIMCO Funds P VANGUARD FDS
)9 J55 !$A  9$ 4 ,$($A = BJ4 & /;  !%#L C# data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
IncomeP NA ... NA DivdGro 26.45 +0.13 14.6
<9   /$ ) 09 .$$A 
 44 ,$A  , 9$ 44
) $ /3! ! & + ) ' +< A$#L ' C$# ;9<% Price Funds HlthCare r 210.73 +0.24 17.2
<9  '
$$:: ' 
9$C  =$ ' 
  =$ $C Wednesday, November 8, 2017 BlChip 97.62 +0.09 34.4 INSTTRF2020 22.61 +0.02 12.3
+' = "% 44J & /$<  *;$ ' &'= (# Net YTD Net YTD Net YTD CapApp 29.75 +0.01 13.6 INSTTRF2025 22.88 +0.02 13.8

*&*  ) )&) ) * +) + ) * *+!M ..
* +*0&+
0 )
 )
* Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret EqInc 34.80 +0.02 12.1 INSTTRF2030 23.08 +0.03 15.1

H9$$ (%  ('  ' 9 American Century Inv TotRetBdI NA ... NA IncomeAdv 2.34 -0.01 7.2 EqIndex 69.74 +0.10 17.6 INSTTRF2035 23.28 +0.04 16.4
 6 0$'  9A 9<  * /
)*
 **+ N )
 Ultra 45.25 +0.09 29.7 Edgewood Growth Instituti FrankTemp/Franklin A Growth 70.45 +0.08 32.3 INSTTRF2040 23.48 +0.05 17.8
B4 9   9$ 43 $<A
 44 # 344 American Funds Cl A EdgewoodGrInst NA ... NA CA TF A p 7.51 ... 6.1 HelSci 74.18 -0.48 25.6 INSTTRF2045 23.62 +0.04 18.3
% ' :  9 AmcpA p 31.99 +0.02 19.2 Federated Instl Fed TF A p 12.02 +0.01 3.6 InstlCapG 39.66 +0.01 35.6 IntlVal 39.60 +0.12 24.7
(800) 366-3975

 
 
 

    
  
    
   AMutlA p 41.29 +0.07
BalA p 27.56 ...
13.7
12.8
StraValDivIS 6.41 +0.02 11.6 IncomeA p 2.36 -0.01 7.0 IntlStk
IntlValEq
19.31 +0.03
15.30 +0.01
26.3 LifeGro
19.4 LifeMod
33.28 +0.05
27.03 +0.03
16.5
13.0
        ! " #$%$   
! "& #'()
&*   ! " Fidelity RisDv A p 61.09 +0.17 17.0
sales.legalnotices #$%$   %+ ! "& #(,-)&*  . ! " #$%$ .
 
 $  ! "& #/01,&* BondA p 12.96 -0.01 3.5 500IdxInst 90.83 +0.13 17.8 FrankTemp/Franklin C MCapGro
MCapVal
91.95 +0.08
31.26 +0.06
22.0 PrmcpCor
7.6 SelValu r
26.92 +0.03
33.30 +0.01
21.4
15.7
  2 ! " #$%$   %+ 2 ! "& #000(&*   ! " #$%$      CapIBA p 63.10 +0.08 12.2 500IdxInstPrem 90.83 +0.13 17.8 Income C t 2.39 -0.01 6.9
@wsj.com 3 
 
! "& #
,-/&*  45 ! " #$%$     4 

 5 3 ! "& #)6,,&* CapWGrA 52.59 +0.10 21.8 500IdxPrem 90.83 +0.14 17.8 FrankTemp/Temp A N Horiz 55.25 -0.25
9.51 -0.01
27.6 STAR
3.8 STIGrade
27.28 +0.01 16.0
 7! ! " #$%$   3 
! "& #/-,-&*  5! ! " #$%$ 5 !8 EupacA p 57.38 +0.02 29.9 ExtMktIdxPrem r 62.39 +0.09 13.7 GlBond A p 12.19 +0.01 3.9
N Inc 10.68 ... 2.2
! "& #-),'&*   2 9: 7 3" #$%$   %+ 2 7 3"& #
'--&*  . FdInvA p 63.97 +0.02 19.7 IntlIdxPrem r 43.45 +0.10 23.1 Growth A p 26.82 ... 13.8
OverS SF r 11.44 +0.03 26.1 TgtRe2015 15.97 ... 10.1
9: 7 3" #$%$ .
 
 $  7 3"& #),0'&*  5! 9: 7 3" GwthA p 51.83 +0.05 23.3 SAIUSLgCpIndxFd 13.92 +0.02 17.7 R2020 23.27 +0.01 14.0 TgtRe2020 31.72 +0.03 12.2
#$%$ 5 !8 7 3"& #6
0/&*   9: 7 3" #$%$   3 
FrankTemp/Temp Adv
HI TrA p 10.41 -0.04 6.2 TMktIdxF r 75.21 +0.11 17.1 R2025 17.95 +0.01 15.8 TgtRe2025 18.60 +0.02 13.8
7 3"& #',)-&*   9: 7 3" #$%$      3 
 
7 3"& GlBondAdv p 12.15 +0.02 4.2
ICAA p 41.39 +0.07 15.6 TMktIdxPrem 75.20 +0.12 17.0 R2030 26.46 +0.02 17.4 TgtRe2030 33.60 +0.04 15.1
#66,(&*  45 9: 7 3" #$%$     4 

 5 3 7 3"& #
6)-&*   Harbor Funds

IncoA p 23.51 +0.02 10.9 USBdIdxInstPrem 11.62 -0.01 3.4 R2035 19.35 +0.02 18.8 TgtRe2035 20.64 +0.03 16.3
5 9: 4" #$%$     3 
5 3 4"  
 3 
  

CapApInst 76.53 +0.23 35.1
N PerA p 45.23 +0.05 28.0 Fidelity Advisor I R2040 27.81 +0.03 19.8 TgtRe2040 35.56 +0.06 17.7
  
  + % 
;< 
7 ! "   %+ 7 3"   IntlInst r 70.13 +0.15 20.1
NEcoA p 47.81 +0.08 33.0 NwInsghtI 33.50 +0.02 25.4 Value 38.89 +0.02 15.6 TgtRe2045 22.34 +0.04 18.3
7 !  7 3" 
3 8+& #
/
)&"  
   


000    Harding Loevner
  
1,, = 8   
 7 7 =07 6>'" NwWrldA 66.83 +0.12 29.9 Fidelity Freedom PRIMECAP Odyssey Fds TgtRe2050 35.94 +0.07 18.3
IntlEq NA ... NA

$ : 
 '  '<9( :<' $ $ $<  C$  $%&& SmCpA p 56.44 -0.10 22.7 FF2020 16.76 ... 13.6 Growth r 36.03 +0.12 25.8 TgtRetInc 13.62 +0.01 7.6
Invesco Funds A
'
& $
. :( $$G' ( 9' 9  '@' $ $ $< Principal Investors TotIntBdIxInv 11.00 -0.01 2.3
For more information C  ($A A$C  $ 

TxExA p
WshA p
13.08 +0.01
45.58 +0.01
5.4
15.6
FF2025
FF2030
14.51 +0.01 14.6
18.18 +0.01 17.1
EqIncA 11.29 -0.02
John Hancock Class 1
8.1
DivIntlInst 14.05 +0.06 27.7 WellsI 27.03 -0.01 8.4

visit wsj.com/classifieds Baird Funds

AggBdInst 10.92 -0.01 4.2
Freedom2020 K 16.77 +0.01 NS
Freedom2025 K 14.51 +0.01 NS
LSBalncd 16.00 +0.01 13.3
Prudential Cl Z & I
TRBdZ 14.56 -0.03
Welltn
6.0 WndsrII
42.85 ...
39.00 +0.01
11.7
12.1
LSGwth 17.19 +0.02 16.9 Schwab Funds
CorBdInst 11.27 -0.02 4.5 Freedom2030 K 18.18 ... NS VANGUARD INDEX FDS
NOTICE OF SALE BlackRock Funds A Freedom2035 K 15.25 +0.01 NS
John Hancock Instl
S&P Sel 40.54 +0.06 17.8 500 239.80 +0.35 17.7
DispValMCI 24.07 +0.06 12.1
GlblAlloc p 20.37 +0.01 12.0 Freedom2040 K 10.72 +0.01 NS TIAA/CREF Funds ExtndIstPl 202.24 +0.31 13.7
JPMorgan Funds
BlackRock Funds Inst Fidelity Invest EqIdxInst 19.42 +0.03 17.1 SmValAdml 55.00 +0.05 7.1

  

   O
%   ' MdCpVal L 39.67 +0.03 9.0 IntlEqIdxInst 20.41 +0.08 23.3 TotBd2 10.75 -0.01 3.4
    
 EqtyDivd 23.06 -0.04 13.0 Balanc 23.73 ... 14.4 JPMorgan R Class

 !" #$%& '( )*+ , *"** $ -.,&! ,$/ GlblAlloc 20.50 +0.01 12.3 BluCh 88.19 +0.32 33.6 Tweedy Browne Fds TotIntl 18.03 +0.06 24.7
CoreBond 11.66 -0.01 3.8 28.52 +0.05 13.9 TotSt
0 
1

 23&,4 .2&5,! & ! 2 $3!,( 6 HiYldBd 7.82 -0.03 7.4 Contra 127.41 +0.26 30.3 GblValue 64.74 +0.10 17.0
Lazard Instl VANGUARD ADMIRAL
 44J3+54B &*

& )
0*) 6&*  44 B344 StratIncOpptyIns 9.95 -0.01 4.2 ContraK 127.41 +0.26 30.4 VANGUARD INSTL FDS
 44* . &*

& / *+, *.&) 44444444 EmgMktEq 19.79 +0.13 24.6 500Adml 239.83 +0.35 17.8 BalInst 34.17 +0.01 11.4
Bridge Builder Trust CpInc r 10.30 -0.01 10.7
 B5J54 ,*
+) ) +
6
. .) 44444 Loomis Sayles Fds 34.17 +0.02 11.5 DevMktsIndInst 14.30 +0.06
CoreBond NA ... NA DivIntl 41.57 +0.05 24.8 BalAdml 24.1
= ' (%  7=8#  : : ) ; : = 1; / )9 (% $ LSBondI 14.18 ... 7.0 CAITAdml 11.86 ... 5.2 DevMktsInxInst 22.34 +0.08 24.0
Dimensional Fds GroCo 182.88 +0.27 33.7
&<$$ $ $ <<$%  9  7)98# =$  <'9<$A  : <$ < Lord Abbett A CapOpAdml r155.31 +0.18 25.0 ExtndInst
5GlbFxdInc 11.04 ... 2.4 GrowCoK 182.84 +0.27 33.8 81.95 +0.13 13.7
'A'   )9 )   '@' $# =$  ::' ' ' %  )9 =$9 ShtDurIncmA p 4.27 ... 2.2 EMAdmr 37.37 +0.12 28.0 GrwthInst 71.11 +0.24 25.2
<9 $  <C F  $($' $A (' %  )9 =$ <  EmgMktVa 30.45 +0.03 28.9 InvGB 7.94 -0.01 3.7
Lord Abbett F EqIncAdml 76.55 +0.08 14.2 InPrSeIn 10.54 -0.01 2.5
  F<   $   #  =$ <  %  $:($  $  EmMktCorEq 22.60 +0.10 32.1 InvGrBd 11.31 -0.01 4.2
IntlCoreEq 14.31 +0.04 24.9 LowP r 52.75 -0.02 15.1
ShtDurIncm 4.27 ... 2.5 ExtndAdml 81.95 +0.12 13.6 InstIdx 236.62 +0.35 17.8
)9M $ $<9'$A =$9 $($$ % ::$A <$<9   @<$ $:($ Metropolitan West
2,! 7  )  =$  '  3BB F$A &C9  . = 1; = 1; 44 IntlVal 20.14 +0.06 23.0 LowPriStkK r 52.71 -0.03 15.2 GNMAAdml 10.52 -0.02 2.1 InstPlus 236.64 +0.35 17.8
,!
!7&$,!
  'C$'    :  <9$$ $' C (%  (' 21.57 +0.03 26.1 TotRetBd 10.68 -0.01 3.0 GrwthAdml 71.10 +0.24 25.2 InstTStPlus 58.09 +0.08 17.0
IntSmCo MagIn 106.44 +0.08 23.3
%    $'' = $   H9$@' $'' ' =$  9I<   C C . ''$$ IntSmVa 23.53 +0.04 24.4 OTC 109.38 +0.87 37.3 TotRetBdI 10.68 -0.01 3.3 HlthCareAdml r 88.90 +0.10 17.3 MidCpInst 40.90 +0.09 14.8
$:($ $<9'$A =$ <  H9$@' $'' 9 '  $ <$ : 
C US CoreEq1 22.06 +0.04 15.8 Puritn 23.25 ... 16.5 TRBdPlan 10.05 -0.01 3.3 HYCorAdml r 5.93 -0.02 6.5 MidCpIstPl 201.70 +0.44 14.8
+$ ' @'$$% &A( << "( 9; %   # 45J MFS Funds Class I InfProAd 25.88 -0.01 2.5 SmCapInst 68.54 +0.14
 % ($  I$(9;P<=<(  19$ 0$( %   # J45  % ($  US CoreEq2 20.90 +0.03 13.6 SrsEmrgMkt 21.63 +0.07 37.8 12.0
US Small 35.87 +0.07 6.7 SrsGroCoRetail 17.97 +0.03 34.5 ValueI 40.51 +0.02 13.0 IntlGrAdml 95.26 +0.02 41.5 STIGradeInst 10.68 ... 2.3
%9$A$(P<=<(  % :<$($  # J53BB4  % ($ '''  3BB F$A
&C9  . = 1; = 1; 44 .2$& ) )9 $ 9$G'  9<  $: US SmCpVal 38.27 -0.06 2.8 SrsIntlGrw 16.29 +0.02 27.3 MFS Funds Instl ITBondAdml 11.43 -0.02 4.0 TotBdInst 10.79 -0.01 3.5
 )9 '( $ 'C$  $ H9$' % $< =  '  $#  $<  <$C US TgdVal 24.81 +0.02 4.2 SrsIntlVal 10.87 +0.02 18.7 IntlEq 25.49 +0.02 25.8 ITIGradeAdml 9.82 -0.01 4.4 TotBdInst2 10.75 -0.01 3.5
$''   9< :  C $'$@' <9$%  78#   '   = =$ USLgVa 38.93 -0.05 12.5 TotalBond 10.69 -0.01 4.1 Mutual Series LTGradeAdml 10.67 -0.02 9.9 TotBdInstPl 10.79 -0.01 3.5
 ' A  %  9<$A : $ = <<9 : $C( '  =$  C$= Dodge & Cox Fidelity Selects GlbDiscA 32.34 -0.09 7.5 MidCpAdml 185.14 +0.41 14.8 TotIntBdIdxInst 33.01 -0.01 2.4
  '$$9$   : % : 9<  $$#  C$:%  < <$@< :  <9$%  Oakmark Funds Invest MuHYAdml 11.47 +0.01 7.6 TotIntlInstIdx r120.63 +0.41
 '   A' 9$%   ::<  9< <9$%    A$' 9'  Balanced 108.93 -0.15 8.9 Biotech r 216.38 -1.71 24.3 24.9
GblStock 13.93 ... 17.0 First Eagle Funds EqtyInc r NA ... NA MuIntAdml 14.23 ... 4.9 TotItlInstPlId r120.66 +0.42 24.9
© 2017 Dow Jones & Company, Inc. <9$$ &< : B  ('' ' (%   '$' : $ C$$ :  C$$ : $' &<
$$$#  '$<$( '  :9  A$C % =%     $# ' $C#  $( 9<  Income 13.84 -0.01 4.1 GlbA 60.90 +0.16 12.2 Oakmark NA ... NA MuLTAdml 11.75 +0.01 6.4 TotStInst 64.77 +0.09 17.0
All Rights Reserved. $($$  <'$$ $ <<$ =$ % 9<    )9 '( <%  'C$ Intl Stk 46.63 +0.09 22.4 FPA Funds OakmrkInt NA ... NA MuLtdAdml 10.97 ... 2.6 ValueInst 39.79 -0.01 11.9
Stock 201.23 -0.34 12.3 FPACres 35.17 -0.03 9.1 Old Westbury Fds MuShtAdml 15.78 ... 1.4 Western Asset
DoubleLine Funds FrankTemp/Frank Adv LrgCpStr 14.96 +0.02 16.6 PrmcpAdml r135.99 +0.17 25.0 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 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23563.36 s 6.13, or 0.03% Trailing P/E ratio 21.30 20.33 2594.38 s 3.74, or 0.14% Trailing P/E ratio 24.33 23.02 6789.12 s 21.34, or 0.32% Trailing P/E ratio * 16.10 23.75
High, low, open and close for each P/E estimate * 19.35 16.91 High, low, open and close for each P/E estimate * 19.39 17.78 High, low, open and close for each P/E estimate * 21.55 18.79
trading day of the past three months. Dividend yield 2.16 2.57 trading day of the past three months. Dividend yield 1.92 2.20 trading day of the past three months. Dividend yield 1.05 1.25
All-time high 23563.36, 11/08/17 All-time high: 2594.38, 11/08/17 All-time high: 6789.12, 11/08/17

Current divisor 0.14523396877348

23500 2580 6750
Session high
DOWN UP 23000 2550 6650
t

Session open Close

Close Open
t

22500 2520 6550

Session low

22000 2490 6450

21500 2460 6350

65-day moving average 65-day moving average 65-day moving average

21000 2430 6250

Bars measure the point change from session's open

20500 2400 6150
Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.

Major U.S. Stock-Market Indexes Late Trading Trading Diary

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 879,271,538 14,021,016
Industrial Average 23575.00 23510.56 23563.36 6.13 0.03 23563.36 18589.69 26.8 19.2 10.3 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 439,093,212 10,007,555
Transportation Avg 9652.94 9596.23 9630.77 -41.02 -0.42 10038.13 8397.31 14.7 6.5 2.5 Most-active issues in late trading Decl. volume* 423,215,508 3,855,195
Utility Average 761.54 754.42 759.59 0.67 0.09 759.59 625.44 17.6 15.2 8.0 Volume After Hours Issues traded 3,061 331
Company Symbol (000) Last Net chg % chg High Low Advances 1,495 146
Total Stock Market 26838.61 26725.07 26825.65 38.82 0.14 26830.60 22353.71 20.0 15.2 8.3
SPDR S&P 500 SPY 9,630.6 259.10 -0.01 unch. 259.15 258.74 Declines 1,439 171
Barron's 400 683.32 678.33 682.73 1.64 0.24 691.56 549.08 24.3 13.5 8.2
Verizon Communications VZ 5,428.2 45.49 0.03 0.07 45.49 45.33 Unchanged 127 14
Nasdaq Stock Market JPMorgan Chase JPM 4,603.5 97.70 0.06 0.06 97.85 97.45 New highs 123 6
Nasdaq Composite 6791.65 6753.34 6789.12 21.34 0.32 6789.12 5208.80 29.3 26.1 13.6 Otonomy OTIC 3,588.8 5.40 2.60 92.86 7.50 2.80 New lows 85 5
6346.98 6308.62 25.03 6345.81 4702.04 30.5 Closing tick 44 28
Nasdaq 100 6345.81 0.40 31.5 15.1 Wells Fargo WFC 3,567.2 54.26 ... unch. 54.42 54.17
Closing Arms† 1.12 0.21
VanEck Vectors Gold Miner GDX 3,351.7 22.88 -0.01 -0.04 22.91 22.85
Standard & Poor's Block trades* 7,048 152
0.14
General Electric GE 2,739.1 20.12 ... unch. 20.20 20.08
500 Index 2595.47 2585.02 2594.38 3.74 2594.38 2163.26 19.9 15.9 8.5 Nasdaq NYSE Arca
Comcast Cl A CMCSA 2,513.3 36.21 ... unch. 36.50 36.18
MidCap 400 1837.20 1824.87 1836.09 5.47 0.30 1843.36 1540.63 19.2 10.6 8.7 Total volume*2,072,201,865 201,129,198
SmallCap 600 898.08 888.23 896.98 3.91 0.44 918.72 748.27 19.9 7.0 9.7 Percentage gainers… Adv. volume*1,095,686,332 128,470,489
Decl. volume* 944,147,262 70,895,703
Other Indexes Otonomy OTIC 3,588.8 5.40 2.60 92.86 7.50 2.80
Issues traded 3,058 1,313
Russell 2000 1482.86 1469.34 1481.73 2.64 0.18 1512.09 1232.16 20.3 9.2 8.1 Roku Cl A ROKU 2,276.1 23.80 4.96 26.33 24.40 18.42
Advances 1,420 830
NYSE Composite 12390.53 12344.15 12384.72 13.47 0.11 12430.52 10643.41 16.4 12.0 4.5 SolarEdge Technologies SEDG 89.6 37.00 4.50 13.85 37.25 32.42 Declines 1,489 454
Value Line 539.78 536.03 539.39 1.18 0.22 545.98 476.17 13.3 6.6 2.8 Overstock.com OSTK 502.4 44.00 3.90 9.73 46.50 40.00 Unchanged 149 29
NYSE Arca Biotech 4186.39 4136.32 4144.74 0.36 0.01 4304.77 3075.02 24.8 34.8 8.1
Viking Therapeutics VKTX 5.6 2.30 0.15 6.98 2.49 2.17 New highs 124 149
New lows 95 24
NYSE Arca Pharma 539.92 533.80 538.95 4.78 0.90 560.52 463.78 8.4 11.9 0.6 ...And losers
Closing tick 30 84
KBW Bank 99.37 98.47 98.78 -0.91 -0.91 102.31 78.83 25.3 7.6 10.5 OPKO Health OPK 625.9 5.84 -0.61 -9.46 6.52 5.69 Closing Arms† 0.82 1.14
PHLX§ Gold/Silver 82.95 82.27 82.41 0.54 0.66 96.72 73.03 -8.3 4.5 6.1 Babcock Wilcox Ents BW 52.5 3.55 -0.36 -9.21 4.21 3.50 Block trades* 7,966 1,178
PHLX§ Oil Service 142.64 139.50 141.12 0.54 0.38 192.66 117.79 -9.5 -23.2 -17.2 Pegasystems PEGA 80.9 50.70 -4.45 -8.07 55.68 50.70 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1321.90 1310.36 1321.13 4.58 0.35 1321.13 806.09 60.4 45.7 27.5 Stericycle SRCL 42.1 61.70 -5.40 -8.05 67.11 60.25 †(TRIN) A comparison of the number of advancing and declining
10.27 9.50 -0.11 -1.11 16.04 9.14 -32.0 -30.3 issues with the volume of shares rising and falling. An
CBOE Volatility 9.78 -9.3 SRC Energy SRCI 106.5 8.40 -0.67 -7.39 9.10 8.25 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 2984.71 2.91 0.10 17.9 KBS Fashion Group KBSF 8.22 5.56 208.64 18.00 1.41 52.2 TOP Ships TOPS 0.90 -1.42 -61.21 151200.00 0.32 -99.9
DJ Global Index 386.89 0.65 0.17 18.7 Kingtone Wirelessinfo ADR KONE 5.59 2.33 71.47 8.00 2.63 21.5 Ceco Environmental CECE 5.70 -2.92 -33.87 14.88 5.66 -44.1
DJ Global ex U.S. 260.93 0.48 0.18 22.0 Forterra FRTA 7.67 2.61 51.58 22.76 3.02 -56.7 RedHill Biopharma ADR RDHL 5.28 -2.22 -29.60 12.65 5.17 -56.7
Americas DJ Americas 623.60 1.28 0.21 15.4 Container Store Group TCS 5.20 1.37 35.77 8.34 3.53 4.2 Myomo MYO 6.25 -2.60 -29.38 23.20 2.53 ...
Brazil Sao Paulo Bovespa 74363.13 1948.26 2.69 23.5 American Public Education APEI 25.15 5.60 28.64 27.20 15.50 39.0 Contango Oil Gas MCF 3.24 -1.21 -27.19 10.39 3.24 -61.8
Canada S&P/TSX Comp 16105.35 –26.44 –0.16 5.3 MBIA Inc MBI 8.89 1.96 28.28 11.65 6.04 7.1 Vitamin Shoppe VSI 3.45 -0.85 -19.77 26.60 2.95 -85.5
Mexico S&P/BMV IPC 48835.69 –168.83 –0.34 7.0 Cheetah Mobile ADR CMCM 11.40 2.38 26.39 13.79 7.54 13.4 Electromed ELMD 6.00 -1.34 -18.26 7.96 3.38 74.9
Chile Santiago IPSA 4160.57 –5.94 –0.14 29.1 IZEA IZEA 4.10 0.83 25.38 7.85 1.37 -18.0 Diana Containerships DCIX 11.71 -2.56 -17.94 1131015.06 1.56 -99.9
DepoMed DEPO 5.70 1.14 25.00 21.56 4.31 -71.2 Xenon Pharmaceuticals XENE 2.60 -0.55 -17.46 9.95 2.25 -68.1
EMEA Stoxx Europe 600 394.45 –0.20 –0.05 9.1
Borqs Technologies BRQS 5.05 0.91 21.98 13.00 4.00 -51.0 Fossil Group FOSL 5.67 -1.18 -17.23 36.87 5.50 -79.8
Eurozone Euro Stoxx 396.99 –0.30 –0.08 13.3
Belgium Bel-20 4085.49 –12.15 –0.30 13.3 Invacare Corp IVC 16.90 2.95 21.15 16.95 9.90 57.2 Liberty Tax TAX 11.00 -2.25 -16.98 16.20 10.80 -7.6
France CAC 40 5471.43 –9.21 –0.17 12.5 GenMark Diagnostics GNMK 4.93 0.83 20.24 13.67 3.63 -61.2 ITUS ITUS 2.35 -0.47 -16.67 6.25 0.60 -59.1
Germany DAX 13382.42 3.15 0.02 16.6 Fuwei Films FFHL 2.85 0.45 18.75 5.20 1.48 62.7 Flotek Industries FTK 4.28 -0.82 -16.08 14.51 4.14 -62.3
Israel Tel Aviv 1419.14 –4.22 –0.30 –3.5 Synaptics SYNA 42.95 6.73 18.58 64.54 33.73 -19.9 Endologix ELGX 4.84 -0.93 -16.06 10.36 4.08 -49.5
22831.30 –0.57 18.7 Five Prime Therapeutics FPRX 30.44 4.58 17.71 60.98 21.41 -44.0 LendingClub LC 4.59 -0.87 -15.93 6.79 4.20 -18.2
Italy FTSE MIB –131.29
Netherlands AEX 554.77 0.97 0.18 14.8
Russia RTS Index 1150.36 3.38 0.29 –0.2 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10228.70 –2.00 –0.02 9.4
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 592.44 –3.16 –0.53 10.8 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9265.83 45.67 0.50 12.7
Snap SNAP 161,925 483.4 12.91 -14.62 29.44 11.28 First Tr Tech AlphaDEX FXL 3,233 3796 52.22 1.30 52.31 35.68
U.K. FTSE 100 7529.72 16.61 0.22 5.4
AT&T T 87,043 197.0 33.44 1.12 43.03 32.55 First Tr Util AlphaDEX FXU 8,318 3269 27.18 -0.33 28.59 24.89
Asia-Pacific Bank of America BAC 81,242 27.0 26.79 -1.43 27.98 17.40 RedHill Biopharma ADR RDHL 2,256 2336 5.28 -29.60 12.65 5.17
Australia S&P/ASX 200 6016.30 2.00 0.03 6.2 Camber Energy CEI 68,680 2922.2 0.28 71.61 1.94 0.14 JPMorgan Div Return US MC JPME 180 1736 62.18 0.31 65.29 52.04
China Shanghai Composite 3415.46 1.89 0.06 10.0 Advanced Micro Devices AMD 58,609 0.5 11.71 -2.82 15.65 6.22 WisTree EM Qlty Div Grwth DGRE 199 1146 26.14 1.31 26.76 20.47
Hong Kong Hang Seng 28907.60 –86.74 –0.30 31.4 Time Warner TWX 55,728 1028.3 88.50 -6.51 103.90 85.22 SPDR Portfolio EM SPEM 1,353 1113 37.45 0.54 37.68 27.91
India S&P BSE Sensex 33218.81 –151.95 –0.46 24.8 SeaDrill SDRL 55,397 411.9 0.36 -11.85 4.59 0.15 iSh iBonds Mar 2020 Corp IBDC 127 1078 26.17 -0.02 26.40 25.90
Japan Nikkei Stock Avg 22913.82 –23.78 –0.10 19.9 Finl Select Sector SPDR XLF 54,853 6.9 26.25 -0.49 26.93 20.11 Voyager Therapeutics VYGR 4,728 1078 12.85 -3.96 25.99 8.10
Singapore Straits Times 3421.25 8.15 0.24 18.8 Ambev ADR ABEV 53,583 175.1 6.18 0.98 7.03 4.70 Time Warner TWX 55,728 1028 88.50 -6.51 103.90 85.22
South Korea Kospi 2552.40 6.96 0.27 26.0 OncoSec Medical ONCS 51,198 5944.4 2.00 60.00 2.55 0.88 Ceco Environmental CECE 1,587 1002 5.70 -33.87 14.88 5.66
Taiwan Weighted 10818.99 –21.35 –0.20 16.9 * 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
Wed YTDchg
in US$ per US$ (%) Country/currency
Wed YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .03020 33.110 –7.5
A consumer rate against its Five-year ARM, Rate Vietnam dong .00004403 22710 –0.3
3.75% Argentina peso .0571 17.5195 10.4
benchmark over the past year 10% Brazil real .3073 3.2545 –0.02 Europe
Bankrate.com avg†: 3.45% WSJ Dollar index
3.00 s Canada dollar .7856 1.2729 –5.3 Czech Rep. koruna .04532 22.066 –14.1
5-year adjustable- ThirdFederalSavingsandLoanAssociationofCleveland 2.69% 5
s Chile peso .001583 631.70 –5.7 Denmark krone .1558 6.4187 –9.2
rate mortgage 4.00% Cleveland, OH 866-627-1785 Euro
t (ARM) 2.25 0 Colombia peso .0003316 3015.70 0.5 Euro area euro 1.1596 .8624 –9.3
Foxboro Federal Savings 2.88% Ecuador US dollar 1 1 unch Hungary forint .003719 268.87 –8.6
Wednesday
t

3.00 1.50 Mexico peso .0524 19.0898 –7.9 Iceland krona .009567 104.53 –7.5
Foxboro, MA 877-369-3331 –5
Peru new sol .3080 3.246 –3.2 Norway krone .1225 8.1658 –5.5
2.00 Rosedale FS&LA 2.88% 0.75 –10 Uruguay peso .03423 29.2100 –0.5 Poland zloty .2738 3.6521 –12.8
t s
Baltimore, MD 410-668-4400 One year ago
t

Yen Venezuela b. fuerte .092407 10.8217 8.3 Russia ruble .01688 59.235 –3.3
5-year Treasury 1.00 0.00 –15
Your Equity Services 2.88% Asia-Pacific Sweden krona .1193 8.3807 –8.0
note yield 1 3 6 1 2 3 5 710 30 2017 Switzerland franc .9998 1.0002 –1.8
Sammamish, WA 425-392-2295 Australian dollar .7678 1.3024 –6.2
0.00 month(s) years Turkey lira .2586 3.8671 9.8
Langley Federal Credit Union 3.00% China yuan .1509 6.6286 –4.6
D J FMAM J J A S O N maturity Ukraine hryvnia .0375 26.6690 –1.5
Hong Kong dollar .1282 7.7979 0.5
2017 Newport News, VA 800-826-7490 UK pound 1.3117 .7624 –5.9
India rupee .01541 64.905 –4.5
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000740 13512 –0.1
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008782 113.87 –2.7 Bahrain dinar 2.6452 .3781 0.2
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .003000 333.32 –0.1 Egypt pound .0567 17.6445 –2.7
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields Macau pataca .1246 8.0275 1.4 Israel shekel .2848 3.5113 –8.8
Malaysia ringgit .2365 4.2290 –5.7 Kuwait dinar 3.3036 .3027 –1.0
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6966 1.4355 –0.6 Oman sul rial 2.5974 .3850 0.01
Libor, 3-month 1.41 1.38 0.89 l 1.41 1.18 Pakistan rupee .00951 105.200 0.8 Qatar rial .2608 3.835 5.3
Money market, annual yield 0.33 0.32 0.26 l 0.36 -0.09 Treasury, Ryan ALM 1464.303 2.117 2.143 2.237 1.710 –0.602 2.066 Philippines peso .0195 51.226 3.3 Saudi Arabia riyal .2667 3.7502 –0.01
Five-year CD, annual yield 1.48 1.47 1.19 l 1.48 -0.07 10-yr Treasury, Ryan ALM 1738.261 2.325 2.378 2.609 2.058 –0.071 1.900 Singapore dollar .7343 1.3618 –5.9 South Africa rand .0707 14.1531 3.4
30-year mortgage, fixed† 3.86 3.93 3.63 l 4.33 -0.16 South Korea won .0008974 1114.31 –7.8
DJ Corporate 379.136 3.095 3.059 3.390 2.879 4.215 3.899 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065202 153.37 3.3
15-year mortgage, fixed† 3.22 3.23 2.86 l 3.50 0.02 Aggregate, Barclays Capital 1944.200 2.600 2.620 2.790 2.300 1.256 2.449 Taiwan dollar .03313 30.183 –7.0 WSJ Dollar Index 87.83 –0.10–0.11 –5.49
Jumbo mortgages, $424,100-plus† 4.22 4.28 4.22 l 4.88 -0.08 High Yield 100, Merrill Lynch 2850.079 5.370 5.205 6.448 4.948 8.181 3.936 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.45 3.46 3.16 l 4.03 -0.16
Fixed-Rate MBS, Barclays 1989.290 2.820 2.870 3.120 2.490 0.760 2.120
New-car loan, 48-month 3.02 3.01 2.85 l 3.36 -0.22
HELOC, $30,000 5.06 5.18 4.57 l 5.30 0.70
Muni Master, Merrill 524.049 1.926 1.999 2.516 1.736 2.865 2.897 COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest EMBI Global, J.P. Morgan 796.369 5.632 5.457 6.290 5.279 5.476 5.532 Commodities Wednesday 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 615.74 1.86 0.30 616.46 532.01 14.57 8.55

Get real-time U.S. stock quotes and track most-active Track the Markets 191.89 0.02 195.14 4.29 -0.32

WSJ
TR/CC CRB Index 0.04 166.50
stocks, new highs/lows and mutual funds. Plus, Compare the performance of selected global stock Crude oil, $ per barrel 56.81 -0.39 -0.68 57.35 42.53 25.49 5.75
deeper money-flows data and email delivery of key indexes, bond ETFs, currencies and commodities at Natural gas, $/MMBtu 3.175 0.023 0.73 3.93 2.56 18.03 -14.74
.COM WSJ.com/TrackTheMarkets
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1281.60 7.90 0.62 1346.00 1127.80 0.71 11.44
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. Thursday, November 9, 2017 | B9

COMMODITIES WSJ.com/commodities

Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest
Cash Prices Wednesday, November 08, 2017
Metal & Petroleum Futures Coffee (ICE-US)-37,500 lbs.; cents per lb. These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Contract Open
Dec 125.05 125.90 124.20 125.75 1.05 97,890 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
March'18 128.50 129.40 127.65 129.20 1.00 78,426
Open High hi lo Low Settle Chg interest Sugar-World (ICE-US)-112,000 lbs.; cents per lb. months.
Copper-High (CMX)-25,000 lbs.; $ per lb. March 14.70 14.86 14.62 14.84 .12 407,379 Wednesday Wednesday Wednesday
Nov 3.0925 3.0985 3.0925 3.0930 0.0105 741 May 14.76 14.93 14.69 14.91 .15 137,397 (U.S.$ equivalent) 16.9950 SoybeanMeal,Cent IL,rail,ton48%-u 311.20
Dec 3.0875 3.1115 3.0665 3.0995 0.0105 143,514 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Energy Coins,wholesale $1,000 face-a 12401 Soybeans,No.1 yllw IL-bp,u 9.4900
Gold (CMX)-100 troy oz.; $ per troy oz. March 27.22 27.22 27.22 27.22 .22 2,801 Propane,tet,Mont Belvieu-g 0.9325 Other metals Wheat,Spring14%-pro Mnpls-u 7.8100
Nov 1275.90 1284.90 1274.70 1281.60 7.90 84 May 27.10 27.10 27.10 27.10 –.05 1,808
Butane,normal,Mont Belvieu-g 0.9850 LBMA Platinum Price PM *926.0 Wheat,No.2 soft red,St.Louis-bp,u 4.3850
Dec 1276.40 1288.10 1276.10 1283.70 7.90 345,546 Cotton (ICE-US)-50,000 lbs.; cents per lb.
Dec 68.07 69.15 68.06 68.63 .56 84,588 NaturalGas,HenryHub-i 3.150 Platinum,Engelhard industrial 931.0 Wheat - Hard - KC (USDA) $ per bu-u 3.7750
Feb'18 1281.40 1292.20 1281.00 1288.00 7.90 125,397
April 1287.00 1296.30 1287.00 1292.20 8.00 18,347 March'18 68.46 69.32 68.36 68.86 .40 104,326 NaturalGas,TranscoZone3-i 3.130 Platinum,Engelhard fabricated 1031.0 Wheat,No.1soft white,Portld,OR-u 5.2838
June 1290.00 1300.40 1289.50 1296.40 8.10 15,879 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. NaturalGas,TranscoZone6NY-i 3.190 Palladium,Engelhard industrial 1011.0 Food
Dec 1307.40 1313.00 1306.20 1309.00 8.40 11,076 Nov 162.00 162.00 162.00 161.30 1.25 40 NaturalGas,PanhandleEast-i 2.840 Palladium,Engelhard fabricated 1111.0
Palladium (NYM) - 50 troy oz.; $ per troy oz. Jan'18 159.45 161.10 159.00 160.75 .65 5,985 NaturalGas,Opal-i 2.960 Aluminum, LME, $ per metric ton *2131.0 Beef,carcass equiv. index
Dec 993.00 1017.35 s 992.10 1015.80 21.70 29,340 NaturalGas,MarcellusNE PA-i 2.360 Copper,Comex spot 3.0930 choice 1-3,600-900 lbs.-u 193.06
March'18 989.00 1009.25 s 986.85 1008.15 21.60 6,014 Interest Rate Futures NaturalGas,HaynesvilleN.LA-i 3.020 Iron Ore, 62% Fe CFR China-s 62.5 select 1-3,600-900 lbs.-u 179.70
June 982.00 999.75 s 982.00 998.65 18.20 211 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Coal,C.Aplc.,12500Btu,1.2SO2-r,w 57.850 Shredded Scrap, US Midwest-s,w n.a.
Broilers, National comp wghtd-u,w 0.8635
Platinum (NYM)-50 troy oz.; $ per troy oz. Dec 154-170 154-260 154-040 154-110 –11.0 751,740 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.750 Steel, HRC USA, FOB Midwest Mill-s 615
Butter,AA Chicago 2.1800
Nov 928.30 928.70 928.30 934.60 12.50 12 March'18 153-160 153-210 153-000 153-060 –11.0 12,567 Cheddar cheese,bbl,Chicago 170.00
Jan'18 925.20 939.30 925.20 937.90 12.60 70,865 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Metals Fibers and Textiles Cheddar cheese,blk,Chicago 160.25
Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 125-120 125-150 125-050 125-080 –5.5 3,152,465 Milk,Nonfat dry,Chicago lb. 71.50
Nov 16.925 16.925 16.925 17.106 0.201 3 March'18 125-055 125-065 124-290 124-310 –5.5 38,633 Gold, per troy oz Burlap,10-oz,40-inch NY yd-n,w 0.6150 Cocoa,Ivory Coast-w n.a.
Dec 16.950 17.265 16.950 17.138 0.198 131,204 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Engelhard industrial 1286.33 Cotton,1 1/16 std lw-mdMphs-u 0.6788 Coffee,Brazilian,Comp 1.2373
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Dec 117-080 117-095 117-045 117-062 –2.7 3,094,822 Engelhard fabricated 1382.80 Cotlook 'A' Index-t *79.70 Coffee,Colombian, NY 1.4404
Dec 56.96 57.92 56.41 56.81 –0.39 473,708 March'18 117-017 117-020 116-305 116-315 –2.7 55,748 Handy & Harman base 1284.00 Hides,hvy native steers piece fob-u 68.500 Eggs,large white,Chicago-u 1.0150
Jan'18 57.22 58.14 56.65 57.05 –0.38 423,202 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Handy & Harman fabricated 1425.24 Wool,64s,staple,Terr del-u,w n.a.
Feb 57.33 58.27 s 56.83 57.22 –0.37 166,767 Dec 107-197 107-205 107-190 107-195 –.7 1,743,218
Flour,hard winter KC 15.80
LBMA Gold Price AM *1276.35 Hams,17-20 lbs,Mid-US fob-u 0.79
March 57.43 58.34 s 56.98 57.32 –0.31 249,168 March'18 107-157 107-160 107-150 107-152 –.2 59,983 LBMA Gold Price PM *1275.60
Grains and Feeds
June 57.10 57.94 s 56.73 57.05 –0.16 226,759 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Hogs,Iowa-So. Minnesota-u 65.85
Nov 98.843 98.843 98.843 98.843 … 210,813
Krugerrand,wholesale-e 1334.63 Barley,top-quality Mnpls-u n.a. Pork bellies,12-14 lb MidUS-u n.a.
Dec 54.96 55.80 54.79 55.18 0.06 267,416
Jan'18 98.615 98.615 t 98.610 98.615 –.005 348,014 Maple Leaf-e 1347.47 Bran,wheat middlings, KC-u 75 Pork loins,13-19 lb MidUS-u 0.9155
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Dec 1.9215 1.9438 1.9041 1.9216 –.0003 114,836 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% American Eagle-e 1347.47 Corn,No. 2 yellow,Cent IL-bp,u 3.1700 Steers,Tex.-Okla. Choice-u 124.00
Jan'18 1.9279 1.9481 1.9093 1.9251 –.0022 95,229 Dec 101.500 101.531 101.297 101.391 –.125 29,219 Mexican peso-e 1555.27 Corn gluten feed,Midwest-u,w 91.0 Steers,feeder,Okla. City-u,w 172.13
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1 Month Libor (CME)-$3,000,000; pts of 100% Austria crown-e 1260.89 Corn gluten meal,Midwest-u,w 492.9
Dec 1.8060 1.8402 s 1.7963 1.8213 .0060 139,092 Nov ... ... ... 98.7475 –.0025 928 Austria phil-e 1347.47 Cottonseed meal-u,w 225 Fats and Oils
Jan'18 1.7838 1.8151 s 1.7749 1.7968 .0035 107,933 Eurodollar (CME)-$1,000,000; pts of 100% Silver, troy oz. Hominy feed,Cent IL-u,w 88
Nov 98.5800 98.5825 98.5775 98.5775 –.0025 96,175
Corn oil,crude wet/dry mill-u,w 34.5000
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Engelhard industrial 17.1000 Meat-bonemeal,50% pro Mnpls-u,w 220 Grease,choice white,Chicago-h 0.2500
Dec 98.4650 98.4700 98.4600 98.4600 –.0050 1,696,177
Dec 3.151 3.190 3.114 3.175 .023 228,571 Engelhard fabricated 20.5200 Oats,No.2 milling,Mnpls-u 2.9950 Lard,Chicago-u n.a.
March'18 98.3200 98.3250 98.3150 98.3200 … 1,286,038
Jan'18 3.250 3.285 3.213 3.272 .021 243,683 17.1900 370.00
Dec 98.0550 98.0700 98.0500 98.0600 –.0050 1,614,229 Handy & Harman base Rice, 5% Broken White, Thailand-l,w Soybean oil,crude;Centl IL-u 0.3450
Feb 3.250 3.284 3.216 3.275 .023 90,123
Handy & Harman fabricated 21.4880 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Tallow,bleach;Chicago-h 0.2650
March 3.211 3.240 3.178 3.231 .019 172,331
April 2.959 2.984 2.946 2.975 .010 122,645
Currency Futures LBMA spot price £12.9600 Sorghum,(Milo) No.2 Gulf-u 7.6913 Tallow,edible,Chicago-u n.a.
May 2.934 2.956 2.921 2.949 .011 80,829 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov .8785 .8820 .8784 .8791 .0006 2,488 KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
Agriculture Futures Dec .8799 .8833 .8792 .8803 .0006 278,105 L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
Canadian Dollar (CME)-CAD 100,000; $ per CAD as of 11/7
Corn (CBT)-5,000 bu.; cents per bu. Nov .7855 .7856 .7853 .7859 .0036 1,255 Source: WSJ Market Data Group
Dec 347.50 349.00 345.75 348.25 .50 696,704 Dec .7833 .7867 .7830 .7861 .0036 141,573
March'18 360.75 361.75 359.00 361.25 .25 414,347 British Pound (CME)-£62,500; $ per £
Oats (CBT)-5,000 bu.; cents per bu.
Dec 269.75 270.75 264.50 269.50 –1.00 4,418
Nov
Dec
1.3146
1.3183
1.3170
1.3190
1.3095
1.3100
1.3114 –.0055 769
1.3126 –.0055 171,506 Bonds | WSJ.com/bonds
March'18 272.50 276.00 270.75 275.75 3.00 2,928 Swiss Franc (CME)-CHF 125,000; $ per CHF
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov 985.25 988.75 984.25 988.00 2.00 3,163
Dec
March'18
1.0029
1.0111
1.0044
1.0113
1.0018
1.0091
1.0023 –.0005
1.0093 –.0005
78,859
217
Tracking Bond Benchmarks
Jan'18 996.00 999.50 994.75 998.50 2.50 323,172 Australian Dollar (CME)-AUD 100,000; $ per AUD Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Soybean Meal (CBT)-100 tons; $ per ton. Nov .7643 .7683 .7643 .7676 .0035 1,358
Dec .7646 .7682 .7641 .7674 .0035 121,426
highs and lows for different types of bonds
Dec 315.70 316.50 314.20 315.20 –.30 105,922
Jan'18 .7648 .7679 .7648 .7672 .0035 744 Total Total
Jan'18 317.90 318.60 316.30 317.40 –.30 101,406
Feb .7647 .7678 .7647 .7671 .0035 453 return YTD total Yield (%) return YTD total Yield (%)
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
March .7647 .7677 .7646 .7670 .0035 907 close return (%) Index Latest Low High close return (%) Index Latest Low High
Dec 34.97 35.40 34.92 35.37 .35 132,055
Jan'18 35.13 35.57 35.07 35.53 .35 115,939 June .7667 .7667 .7667 .7667 .0035 244
Mexican Peso (CME)-MXN 500,000; $ per MXN Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
... ... ... 1114.00 –10.00 22 Dec .05183 .05214 .05183 .05196 .00025 176,815 1989.29 2.4 Mortgage-Backed 2.820 2.490 3.120
Nov
March'18 .05109 .05135 .05107 .05118 .00024 561 1944.20 3.4 U.S. Aggregate 2.600 2.300 2.790
Jan'18 1153.50 1156.00 1137.00 1141.00 –10.50 9,355
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per € U.S. Corporate Indexes Bloomberg Barclays 1955.04 1.9 Ginnie Mae (GNMA) 2.770 2.420 3.090
Nov 1.1599 1.1611 1.1583 1.1598 .0007 5,257
Dec 427.25 427.50 419.00 426.75 –.50 250,981 2.6
Dec 1.1616 1.1636 1.1603 1.1620 .0008 429,096 2783.29 5.7 U.S. Corporate 3.180 3.030 3.520 1167.01 Fannie mae (FNMA) 2.830 2.520 3.120
March'18 445.25 445.25 436.75 443.75 –1.00 157,491
Wheat (KC)-5,000 bu.; cents per bu. Index Futures 2621.64 3.9 Intermediate 2.740 2.530 3.010 1797.28 2.7 Freddie Mac (FHLMC) 2.840 2.530 3.130
Dec 426.75 428.00 419.00 427.50 1.00 140,784
March'18 443.75 445.25 436.50 445.00 1.25 110,968 Mini DJ Industrial Average (CBT)-$5 x index 3862.90 9.9 Long term 4.110 4.100 4.710 524.05 5.0 Muni Master 1.926 1.736 2.516
Wheat (MPLS)-5,000 bu.; cents per bu. Dec 23461 23507 s 23434 23491 3 154,485
Dec 633.50 649.00 632.00 643.50 8.75 34,145 March'18 23462 23497 s 23428 23484 3 1,724 568.04 4.3 Double-A-rated 2.660 2.470 2.870 366.75 5.6 7-12 year 1.928 1.744 2.618
March'18 644.00 658.25 642.75 654.50 8.50 27,235 S&P 500 Index (CME)-$250 x index 412.31 6.9 12-22 year 2.337 2.213 3.047
2582.20 2592.20 s 2580.00 2590.90 4.10 62,200
718.79 6.4 Triple-B-rated 3.460 3.340 3.870
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec
Nov 159.575 159.775 157.125 157.325 –2.550 6,884 Mini S&P 500 (CME)-$50 x index High Yield Bonds Merrill Lynch 398.56 7.4 22-plus year 2.770 2.742 3.622
Jan'18 160.025 160.575 156.650 156.900 –3.625 30,129 Dec 2584.00 2592.50 s 2579.75 2591.00 4.25 3,167,322
Cattle-Live (CME)-40,000 lbs.; cents per lb. March'18 2584.75 2593.00 s 2580.25 2591.50 4.25 73,873 415.76 7.0 High Yield Constrained 5.697 5.373 6.858 Global Government J.P. Morgan†
Dec 124.550 124.575 122.150 122.925 –1.700 116,496 Mini S&P Midcap 400 (CME)-$100 x index
Dec 1828.20 1836.60 1823.30 1835.30 5.40 92,869 416.52 8.3 Triple-C-rated 10.685 9.584 13.189 545.76 1.6 Global Government 1.390 1.170 1.560
Feb'18 130.300 130.300 127.975 128.575 –1.800 116,448
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Mini Nasdaq 100 (CME)-$20 x index 6.2 758.60 0.7 Canada 1.970 1.560 2.190
Dec 6310.5 6345.5 s 6301.5 6341.5 25.5 273,642
2850.08 High Yield 100 5.370 4.948 6.448
Dec 64.125 64.250 63.350 63.550 –.375 86,981
Feb'18 70.850 70.975 69.550 69.750 –1.125 74,321
March'18 6320.3 6360.3 s 6316.3 6356.3 25.3 1,939 377.94 7.3 Global High Yield Constrained 5.156 4.934 6.450 373.65 1.3 EMU§ 1.008 0.869 1.363
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Mini Russell 2000 (ICE-US)-$100 x index
Dec 1474.90 1483.10 1466.90 1482.40 4.80 67,805 308.19 7.4 Europe High Yield Constrained 1.982 1.897 3.814 715.67 1.3 France 0.760 0.590 1.210
Nov 464.00 467.00 459.40 461.80 –3.00 422
March'18 1470.00 1477.80 1470.00 1483.30 4.20 84
Jan'18 455.70 459.00 451.60 455.80 –1.30 5,430 U.S Agency Bloomberg Barclays 511.37 -0.6 Germany 0.400 0.210 0.620
Mini Russell 1000 (ICE-US)-$100 x index
Milk (CME)-200,000 lbs., cents per lb. Dec 1432.20 1436.20 1430.60 1435.70 2.70 278
Nov 16.46 16.63 16.46 16.50 .03 4,458 1641.07 2.2 U.S Agency 2.000 1.470 2.010 288.78 0.2 Japan 0.380 0.170 0.460
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec 15.44 15.44 t 15.21 15.28 –.14 4,338 94.77 94.87 94.68 94.77 –.03 48,818
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec 1466.52 1.4 10-20 years 1.840 1.270 1.840 564.45 -0.3 Netherlands 0.520 0.340 0.760
March'18 94.45 94.53 94.39 94.46 –.04 2,460
Dec 2,179 2,228 2,164 2,216 53 44,293 8.0
3375.79 20-plus years 2.900 2.730 3.460 926.82 1.5 U.K. 1.530 1.340 1.790
March'18 2,154 2,197 2,144 2,188 49 129,115 Source: SIX Financial Information
2460.87 4.9 Yankee 2.830 2.610 3.090 796.37 7.8 Emerging Markets ** 5.632 5.279 6.290

Macro & Market Economics *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Watching the Gauges: U.S. Supply and Demand
Inventories, imports and demand for the week ended November 3. Current figures are in thousands of barrels Global Government Bonds: Mapping Yields
or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas
import Natural-gas import and demand data are available monthly only. Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Inventories, 000s barrels Imports, 000s barrels per day Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
Expected Previous Year 4-week 5-year Expected Previous Year 4-week 5-year
Current change week ago avg avg Current change week ago avg avg 1.500 U.S. 2 1.645 s l 1.645 1.520 0.858
2.250 10 2.325 s l 2.317 2.361 1.857
Crude oil and
petroleum prod 1,257,009 ... 1,266 1,334 1,270 1,192 9,550 ... 9,629 9,232 9,679 9,575 2.750 Australia 2 1.803 s l 1.794 1.931 1.669 15.8 14.9 81.1
Crude oil 2.750 10 2.581 t l 2.592 2.824 2.365 25.7 27.6 50.8
excluding SPR 457,143 -2,100 455 485 456 424 7,377 ... 7,571 7,442 7,639 7,732 0.000 France 2 -0.612 s l -0.621 -0.494 -0.602 -225.7 -226.6 -146.0
Gasoline 209,537 ... 213 221 215 210 405 ... 540 500 467 541
2.750 10 0.559 s l 0.554 0.735 0.495 -176.5 -176.3 -136.2
Finished gasoline 22,198 -1,800 22 26 22 34 6 ... 12 7 36 67
Reformulated 51 ... 0 0 0 0 0 ... 0 0 0 0 0.000 Germany 2 -0.758 s l -0.764 -0.691 -0.627 -240.3 -240.9 -148.5
Conventional 22,147 ... 22 26 22 34 6 ... 12 7 36 67 0.500 10 0.329 s l 0.328 0.461 0.190 -199.6 -198.9 -166.7
Blend. components 187,339 ... 191 195 193 175 399 ... 528 493 431 474
0.050 Italy 2 -0.253 t l -0.251 -0.117 -0.024 -189.8 -189.6 -88.2
Natural gas (bcf) 3,775 ... 4 4 4 4 ... ... ... ... ... ...
2.050 10 1.737 s l 1.702 2.148 1.649 -58.8 -61.5 -20.8
Kerosene-type
0.100 Japan 2 -0.206 t l -0.190 -0.139 -0.259 -185.1 -183.5 -111.7
jet fuel 40,063 ... 41 42 41 39 213 ... 248 222 215 72
Distillates 125,562 -1,200 129 149 130 126 86 ... 137 107 116 130 0.100 10 0.024 t l 0.031 0.055 -0.064 -230.1 -228.6 -192.0
Heating oil 10,294 ... 11 14 11 19 0 ... 41 24 12 37 2.750 Spain 2 -0.354 s l -0.394 -0.260 -0.217 -200.0 -203.9 -107.5
Diesel 115,268 ... 118 134 119 107 86 ... 96 83 104 92 1.450 10 1.471 s l 1.413 1.661 1.248 -90.4 -60.9
-85.4
Residual fuel oil 32,663 ... 33 39 33 39 102 ... 155 136 160 226
Other oils 293,496 ... 296 279 295 253 ... 863 604 947 754 1.750 U.K. 2 0.459 s l 0.437 0.435 0.221 -118.6 -120.8 -63.7
1,196
Net crude, petroleum 4.250 10 1.228 t l 1.234 1.369 1.133 -109.7 -108.3 -72.4
products, incl. SPR 1,926,915 ... 1,937 2,029 1,941 1,887 3,696 ... 1,951 4,342 2,668 5,644 Source: Tullett Prebon

Corporate Debt
Weekly Demand, 000s barrels per day Natural gas storage in that same company’s share price.
Expected Previous Year 4-week 5-year Billions of cubic feet; weekly totals Investment-grade spreads that tightened the most…
Current change week ago avg avg
Spread*, in basis points Stock Performance
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Total petroleum
4250
product 21,301 ... 19,184 20,191 19,909 19,678 CBL & Associates CBL 5.950 Dec. 15, ’26 442 –18 368 5.50 –2.31
Natural gas, AT&T T 5.300 Aug. 14, ’58 252 –9 247 33.44 1.12
Finished lower 48 states 3250 Marathon Oil MRO 2.800 Nov. 1, ’22 100 –8 n.a. 15.75 –2.54
t
motor gasoline 9,496 ... 9,461 9,213 9,352 9,086 Verizon Communications VZ 4.812 March 15, ’39 177 –8 171 45.46 –0.24
Kerosene-type 2250 8.000 Jan. 30, ’49 –7 –63 26.79
Bank of America BAC –61 –1.43
jet fuel 1,835 ... 1,628 1,794 1,741 1,464 t Caterpillar Financial Services CAT 2.500 Nov. 13, ’20 36 –7 n.a. … …
Distillates 4,486 ... 3,534 4,043 3,900 4,086 Five-year average 1250 Walt Disney DIS 4.125 June 1, ’44 94 –7 n.a. 101.18 –0.42
Residual fuel oil 331 ... 130 580 399 252 for each week Discovery Communications DISCA 3.950 March 20, ’28 183 –7 169 17.10 –1.33
Propane/propylene 1,322 ... 779 1,302 1,053 ... 250
Other oils 3,832 ... 3,651 3,259 3,465 ... N D J F M A M J J A S O …And spreads that widened the most
2017 Pitney Bowes PBI 4.625 March 15, ’24 425 43 359 10.80 1.31
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. VMware VMW 2.300 Aug. 21, ’20 68 26 64 120.55 0.10
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires Teva Pharmaceutical Finance IV TEVA 2.250 March 18, ’20 250 21 140 … …
Royal Bank of Scotland RBS 8.625 Aug. 15, ’49 216 20 174 7.31 0.14
Exchange-Traded Portfolios | WSJ.com/ETFresearch Arrow Electronics
Viacom
ARW
VIA
3.250
5.875
Sept. 8, ’24
Feb. 28, ’57
123
357
15
13
n.a.
335
78.66
29.70
0.28
–1.82
Closing Chg YTD Nordstrom JWN 5.000 Jan. 15, ’44 264 12 250 38.30 –0.03
Largest 100 exchange-traded funds, latest session ETF Symbol Price (%) (%)
Morgan Stanley MS 5.450 July 15, ’49 50 11 33 49.04 –0.71
SPDR DJIA Tr DIA 235.46 0.02 19.2
Wednesday, November 8, 2017 Closing Chg YTD
Closing Chg YTD ETF Symbol Price (%) (%) SPDR S&PMdCpTr
SPDR S&P 500
MDY
SPY
333.90
259.11
0.25
0.17
10.7
15.9
High-yield issues with the biggest price increases…
ETF Symbol Price (%) (%) iShMSCIEAFESC SCZ 63.11 0.11 26.6 SPDR S&P Div SDY 92.42 0.21 8.0 Bond Price as % of face value Stock Performance
AlerianMLPETF AMLP 10.84 –1.45 –14.0 iShMSCIEmgMarkets EEM 46.78 0.47 33.6 TechSelectSector XLK 64.01 0.55 32.4 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
CnsmrDiscSelSector XLY 91.92 0.11 12.9 iShMSCIEurozoneETF EZU 43.51 0.18 25.8 UtilitiesSelSector XLU 55.70 0.07 14.7
CnsStapleSelSector XLP 53.74 1.09 3.9 iShMSCIJapanETF EWJ 60.02 0.62 22.8 VanEckGoldMiner GDX 22.89 0.70 9.4 CSI Compressco CCLP 7.250 Aug. 15, ’22 92.500 1.13 91.125 5.22 7.63
iShNasdaqBiotech IBB 312.80 –0.39 17.9 VangdInfoTech VGT 166.22 0.58 36.8
DBGoldDoubleLgETN DGP 24.42 1.58 21.4
iShNatlMuniBdETF MUB 111.16 0.03 2.8 VangdSC Val VBR 128.04 0.09 5.8
Monitronics International MONINT 9.125 April 1, ’20 84.490 0.99 85.500 ... ...
DBGoldDoubleShrt DZZ 5.54 –1.00 –19.2
EnSelectSectorSPDR XLE 69.82 –0.48 –7.3
iShRussell1000Gwth IWF 131.42 0.36 25.3 VangdDivApp VIG 97.48 0.42 14.4 Genon Americas Generation GENONE 9.125 May 1, ’31 94.500 0.75 92.750 ... ...
iShRussell1000ETF IWB 144.18 0.19 15.8 VangdFTSEDevMk VEA 44.45 0.43 21.6 Kronos Acquisition Holdings KIKCN 9.000 Aug. 15, ’23 91.125 0.63 96.000 ... ...
FinSelSectorSPDR XLF 26.25 –0.49 12.9
iShRussell1000Val IWD 119.80 –0.03 6.9 VangdFTSE EM VWO 44.93 0.36 25.6
GuggS&P500EW RSP 97.10 0.12 12.1
HealthCareSelSect XLV 81.72 0.23 18.5
iShRussell2000Gwth IWO 179.69 0.48 16.7 VangdFTSE Europe VGK 58.20 0.05 21.4 NGL Energy Partners NGL 7.500 Nov. 1, ’23 101.000 0.63 99.750 12.35 –1.98
iShRussell2000ETF IWM 147.20 0.14 9.2 VangdFTSEAWxUS VEU 54.10 0.35 22.5
IndSelSectorSPDR XLI 71.86 –0.17 15.5
iShRussell2000Val IWN 122.02 –0.15 2.6 VangdGrowth VUG 138.18 0.36 24.0
Hughes Satellite Systems SATS 6.625 Aug. 1, ’26 106.000 0.63 n.a. … …
iShIntermCredBd CIU 109.66 –0.13 1.4 TPC TPCG 8.750 Dec. 15, ’20 100.000 0.60 98.125 ... ...
iShRussell3000ETF IWV 153.35 0.18 15.3 VangdHlthCr VHT 152.02 0.20 19.9
iSh1-3YCreditBond CSJ 104.96 –0.05 0.0
iShRussellMid-Cap IWR 201.30 0.17 12.5 VangdHiDiv VYM 82.90 0.22 9.4 L Brands LB 5.625 Oct. 15, ’23 107.750 0.50 107.250 47.38 0.94
iSh3-7YTreasuryBd IEI 123.07 –0.07 0.5 86.02 7.0
iShRussellMCValue IWS 0.07 VangdIntermBd BIV 84.46 –0.12 1.7
iShCoreMSCIEAFEETF IEFA 65.51 0.34 22.2 210.19 0.48 15.4
iShS&PMC400Growth IJK VangdIntrCorpBd VCIT 87.71 –0.15 2.3
iShCoreMSCIEmgMk IEMG 56.39 0.50 32.8 iShS&P500Growth IVW 150.11 0.29 23.3 VangdLC VV 118.96 0.15 16.2 …And with the biggest price decreases
iShCoreMSCITotInt IXUS 62.59 0.35 24.0 iShS&P500ValueETF IVE 109.24 –0.03 7.8 VangdMC VO 149.51 0.24 13.6
iShCoreS&P500ETF IVV 260.94 0.17 16.0 iShUSPfdStk PFF 38.33 0.18 3.0 VangdMC Val VOE 106.50 0.09 9.6 Endo Dac ENDP 6.000 July 15, ’23 72.250 –4.75 79.250 … …
iShCoreS&PMdCp IJH 183.16 0.27 10.8 iShTIPSBondETF TIP 114.23 –0.06 0.9 VangdREIT VNQ 84.75 0.50 2.7 Jones Energy Holdings JONE 6.750 April 1, ’22 78.250 –4.00 78.000 1.25 –24.24
iShCoreS&PSmCpETF IJR 73.63 0.45 7.1 iSh1-3YTreasuryBd SHY 84.18 –0.01 –0.3 VangdS&P500 VOO 238.04 0.15 15.9
iShS&PTotlUSStkMkt ITOT 59.29 0.15 15.6 iSh7-10YTreasuryBd IEF 106.41 –0.12 1.5 VangdST Bond BSV 79.48 –0.06 0.0
MEG Energy MEGCN 6.375 Jan. 30, ’23 91.469 –3.78 92.250 ... ...
iShCoreUSAggBd AGG 109.51 –0.06 1.3 iSh20+YTreasuryBd TLT 126.36 –0.22 6.1 VangdSTCpBd VCSH 79.76 –0.08 0.5 Consolidated Communications CNSL 6.500 Oct. 1, ’22 93.500 –2.80 98.250 14.90 –0.47
iShSelectDividend DVY 95.00 0.22 7.3 iShRussellMCGrowth IWP 116.84 0.39 20.0 VangdSC VB 143.09 0.21 11.0
iShEdgeMSCIMinEAFE EFAV 71.91 0.25 17.5 PIMCOEnhShMaturity MINT 101.75 ... 0.4 VangdTotalBd BND 81.83 –0.07 1.3 Iheartcommunications IHRT 10.625 March 15, ’23 68.625 –2.63 n.a. ... ...
iShEdgeMSCIMinUSA USMV 51.73 0.29 14.4 PwrShQQQ 1 QQQ 154.50 0.40 30.4 VangdTotIntlBd BNDX 55.09 –0.07 1.5 Windstream Services WIN 7.750 Oct. 1, ’21 71.920 –2.58 75.750 1.92 ...
iShGoldTr IAU 12.31 0.41 11.1 PwrShS&P500LoVol SPLV 47.06 0.28 13.2 VangdTotIntlStk VXUS 56.22 0.37 22.5
iShiBoxx$InvGrCpBd LQD 120.90 –0.13 3.2 PwrShSrLoanPtf BKLN 23.06 –0.22 –1.3 VangdTotalStk VTI 133.06 0.17 15.4
Mallinckrodt International Finance MNK 5.500 April 15, ’25 82.250 –2.50 90.000 … …
iShiBoxx$HYCpBd HYG 87.35 –0.44 0.9 SPDRBloomBarcHYBd JNK 36.75 –0.49 0.8 VangdTotlWrld VT 72.71 0.22 19.2 Hexion HXN 6.625 April 15, ’20 89.188 –2.31 89.375 ... ...
iShJPMUSDEmgBd EMB 114.60 –0.04 4.0 SPDR Gold GLD 121.63 0.35 11.0 VangdValue VTV 102.02 0.01 9.7
iShMBSETF MBB 106.83 –0.09 0.5 SchwabIntEquity SCHF 34.29 0.35 23.9 WisdTrEuropeHdg HEDJ 66.00 –0.06 15.0 *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.
iShMSCIACWIETF ACWI 70.84 0.20 19.7 SchwabUS BrdMkt SCHB 62.55 0.11 15.4 WisdTrJapanHdg DXJ 59.43 0.56 20.0 Note: Data are for the most active issue of bonds with maturities of two years or more
iShMSCI EAFE EFA 69.87 0.33 21.0 SchwabUS LC SCHX 61.91 0.18 16.2 XtrkrsMSCIEAFE DBEF 32.27 0.31 15.0 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
CreditSuisse CS 16.15 0.08 GGP GGP 21.76 -0.44 KinderMorgan KMI 18.00 -0.04 Pentair PNR 69.17 0.23 TeckRscsB TECK 21.84 0.37 AlnylamPharm ALNY 132.33 2.83 LibertyGlobal C LBTYK 28.83 -0.85
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low. CrestwoodEquity CEQP 24.00 -0.35 Knight-Swift KNX 38.91 0.33 PEP 112.00 1.53 TelecomArgentina TEO 34.16 1.51 Alphabet C GOOG 1039.85 6.52 LibertyLiLAC A LILA 22.16 0.29
Gallagher AJG 63.53 -0.18 PepsiCo
Market listed securities. Prices are composite dd-Indicates loss in the most recent s CrownCastle CCI 114.03 2.27 Gap GPS 25.67 -0.04 Kohl's KSS 40.79 0.10 PerkinElmer PKI 71.48 0.35 TelecomItalia TI 8.47 -0.14 Alphabet A GOOGL 1058.29 5.90 LibertyLiLAC C LILAK 21.96 0.20
quotations that include primary market trades four quarters. CrownHoldings CCK 59.68 -0.11 Gartner IT 118.81 1.06 KoninklijkePhil PHG 40.22 -0.66 Perrigo PRGO 81.20 0.50 TelecomItalia A TI.A 6.88 -0.17 Altaba AABA 71.16 -1.06 LibertyQVC B QVCB 21.47 -0.72
as well as trades reported by Nasdaq OMX FD-First day of trading. Cullen/Frost CFR 93.96 -1.20 Gazit-Globe GZT 9.37 -0.09 KoreaElcPwr KEP 17.27 -0.05 PetroChina PTR 71.00 -0.79 s TeledyneTech TDY 185.50 1.25 s Amazon.com AMZN 1132.88 9.71 LibertyQVC A QVCA 21.54 -0.01
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing Cummins CMI 171.38 -0.48 GeneralDynamics GD 202.62 -1.14 Kroger KR 21.85 0.54 PetroleoBrasil PBR 10.91 0.30 Teleflex TFX 259.59 -0.72 Amdocs DOX 63.27 0.32 LibertyVenturesA LVNTA 56.36 -1.08
Exchange, CBOE, National Stock Exchange, ISE standards DTE Energy DTE 113.19 0.38 GeneralElec GE 20.12 -0.09 s Kyocera KYO 71.72 0.64 PetroleoBrasilA PBR.A 10.42 0.27 TelefonicaBras VIV 15.25 0.30 Amerco UHAL 380.02 -0.13 LibertyFormOne C FWONK 37.55 -0.46
and BATS. lf-Late filing s DXC Tech DXC 96.75 4.22 GeneralMills GIS 52.24 1.27 LATAMAirlines LTM 13.46 0.21 Pfizer PFE 35.34 -0.02 Telefonica TEF 10.06 -0.05 AmericanAirlines AAL 46.37 -0.09 LibertyFormOne A FWONA 35.87 -0.52
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq s Danaher DHR 93.24 0.04 GeneralMotors GM 42.11 0.41 L Brands LB 47.38 0.44 PhilipMorris PM 103.09 0.07 TelekmIndonesia TLK 30.03 -0.40 Amgen AMGN 173.58 0.10 LibertyBraves A BATRA 22.71 0.15
companies based on market capitalization. requirements. Darden DRI 82.12 0.47 Genpact G 31.20 1.00 LG Display LPL 13.07 -0.02 Phillips66 PSX 94.55 -0.02 Tenaris TS 29.89 -0.37 AnalogDevices ADI 92.00 0.10 LibertyBraves C BATRK 22.84 0.12
Underlined quotations are those stocks with t-NYSE bankruptcy t DaVita DVA 54.34 -4.62 GenuineParts GPC 86.02 -0.41 s LINE LN 43.86 1.24 PinnacleFoods PF 54.24 0.58 s Teradyne TER 43.89 0.36 s Apple AAPL 176.24 1.43 LibertySirius C LSXMK 40.82 -0.35
large changes in volume compared with the v-Trading halted on primary market. Deere DE 134.64 -1.07 Gildan GIL 29.71 0.10 L3 Tech LLL 187.05 0.95 PinnacleWest PNW 89.79 0.07 TevaPharm TEVA 11.83 0.14 AppliedMaterials AMAT 56.92 0.45 LibertySirius A LSXMA 40.89 -0.25
issue’s average trading volume. vj-In bankruptcy or receivership or DellTechnologies DVMT 82.31 -0.17 GlaxoSmithKline GSK 36.48 0.66 LabCpAm LH 151.79 -0.60 PioneerNatRscs PXD 159.57 -2.10 Textron TXT 54.85 0.57 ArchCapital ACGL 95.45 -0.15 LincolnElectric LECO 87.22 -1.03
Boldfaced quotations highlight those issues being reorganized under the DelphiAutomotive DLPH 96.35 -0.91 GlobalPayments GPN 101.65 -2.25 LambWeston LW 52.39 0.73 PlainsAllAmPipe PAA 21.27 -0.20 ThermoFisherSci TMO 193.86 0.65 s Atlassian TEAM 52.94 1.13 LogitechIntl LOGI 36.17 -0.20
whose price changed by 5% or more if their Bankruptcy Code, or securities DeltaAir DAL 50.06 0.15 GoDaddy GDDY 48.02 -0.59 LasVegasSands LVS 67.90 0.56 PlainsGP PAGP 21.73 -0.30 ThomsonReuters TRI 44.27 -0.24 Autodesk ADSK 123.84 0.44 LogMeIn LOGM 118.50 -3.20
previous closing price was $2 or higher. assumed by such companies. DeutscheBank DB 17.04 0.36 Goldcorp GG 13.27 0.07 Lazard LAZ 47.44 1.05 PolarisIndustries PII 116.68 2.12 ThorIndustries THO 130.24 2.20 ADP ADP 112.59 -0.16 lululemon LULU 61.64 1.40
DevonEnergy DVN 40.26 -1.00 GoldmanSachs GS 241.25 1.44 Lear LEA 174.90 0.46 Potash POT 19.14 -0.03 3M MMM 229.83 -0.22 Baidu BIDU 241.18 -2.29 MKS Instrum MKSI 107.85 1.30
Diageo DEO 135.03 -0.04 Graco GGG 132.40 0.54 Leggett&Platt LEG 45.72 -0.22 s Praxair PX 149.97 1.02 Tiffany TIF 90.87 -1.48 BankofOzarks OZRK 44.00 -0.73 MarketAxess MKTX 178.75 0.74
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and DigitalRealty DLR 123.50 1.49 Grainger GWW 208.13 2.95 Leidos LDOS 62.22 -0.36 PrincipalFin PFG 68.49 -0.62 TimeWarner TWX 88.50 -6.16 Biogen BIIB 312.58 -0.99 s Marriott MAR119.98 -0.91
changes in the closing prices from 4 p.m. the previous day. DiscoverFinSvcs DFS 66.09 -0.35 GreatPlainsEner GXP 33.66 -0.05 Lennar A LEN 58.56 2.08 Procter&Gamble PG 87.58 0.60 Toll Bros TOL 46.03 0.68 BioMarinPharm BMRN 82.81 -0.96 MarvellTech MRVL 20.15 0.02
Disney DIS 101.18 -0.43 GpoAvalAcciones AVAL 8.39 0.07 s Lennar B LEN.B 49.91 1.25 Progressive PGR 50.55 0.06 Torchmark TMK 85.24 0.06 Bioverativ BIVV 54.14 0.73 s MatchGroup MTCH 29.59 2.69
Net Net DolbyLab DLB 59.36 0.33 GpFinSantandMex BSMX 8.23 0.07 LennoxIntl LII 193.20 1.55 Prologis PLD 66.72 0.19 Toro TTC 62.92 0.21 bluebirdbio BLUE 146.70 ... s MaximIntProducts MXIM 55.33 0.62
Wednesday, November 8, 2017 TorontoDomBk TD 57.60 0.12 BrighthouseFin BHF 56.29 -0.66 MelcoResorts MLCO 25.22 0.21
Stock Sym Close Chg Stock Sym Close Chg DollarGeneral DG 80.70 0.04 GrupoTelevisa TV 20.51 -0.18 LeucadiaNatl LUK 26.03 0.15 PrudentialFin PRU 112.44 0.50
Net DominionEner D 80.88 -0.51 GuidewireSoftware GWRE 80.82 0.74 s LibertyProperty LPT 44.75 0.33 Prudential PUK 48.23 -0.17 Total TOT 56.71 -0.13 Broadcom AVGO 272.40 1.08 MercadoLibre MELI 260.10 -5.53
Stock Sym Close Chg Aramark ARMK 43.33 0.08 CBRE Group CBG 41.00 0.12 Domino's DPZ 168.71 -1.39 HCA Healthcare HCA 78.86 0.94 EliLilly LLY 84.01 0.73 PublicServiceEnt PEG 50.20 0.25 TotalSystem TSS 71.99 -0.01 CA CA 32.62 0.32 MicrochipTech MCHP 92.81 1.37
ArcelorMittal MT 29.00 -0.28 CBS A CBS.A 57.29 -0.63 Donaldson DCI 47.24 -0.33 HCP HCP 26.99 -0.01 LincolnNational LNC 75.33 -0.07 PublicStorage PSA 213.19 1.70 s ToyotaMotor TM 127.98 0.52 CDK Global CDK 63.61 0.35 MicronTech MU 44.09 0.14
NYSE ArcherDaniels ADM 39.80 0.26 CBS B CBS 57.25 -0.36 DouglasEmmett DEI 39.98 -0.43 HDFC Bank HDB 95.59 0.96 LionsGate A LGF.A 29.09 -0.07 s PulteGroup PHM 30.91 0.47 TransCanada TRP 48.62 -0.34 CDW CDW 67.85 -0.50 Microsemi MSCC 54.03 0.08
Arconic ARNC 24.78 -0.30 CF Industries CF 37.78 0.89 Dover DOV 96.05 -0.11 HP HPQ 21.42 0.04 LionsGate B LGF.B 28.40 0.02 QuestDiag DGX 93.15 0.49 TransDigm TDG 284.97 1.64 CH Robinson CHRW 80.63 0.13 Microsoft MSFT 84.56 0.29
ABB ABB 26.22 -0.04 s AristaNetworks ANET 214.19 4.63 CGI Group GIB 52.13 -1.18 DowDuPont DWDP 70.81 -0.33 HSBC HSBC 48.35 0.30 s LiveNationEnt LYV 45.45 ... QuintilesIMS Q 104.72 -3.47 TransUnion TRU 53.60 0.47 CME Group CME 137.60 0.05 t Middleby MIDD 111.79 -7.26
AECOM ACM 35.80 -0.29 ArrowElec ARW 78.66 0.22 CIT Group CIT 45.44 0.27 DrPepperSnap DPS 85.61 1.13 Halliburton HAL 45.12 -0.15 LloydsBanking LYG 3.58 -0.01 RELX RENX 22.34 0.07 Travelers TRV 133.52 -0.20 CSX CSX 51.49 -0.33 Mondelez MDLZ 41.60 0.39
AES AES 10.51 ... AstraZeneca AZN 33.33 -0.28 s CMS Energy CMS 49.13 0.22 DrReddy'sLab RDY 36.24 0.33 Hanesbrands HBI 19.69 0.61 LockheedMartin LMT 315.64 2.35 RELX RELX 23.09 0.03 TurkcellIletism TKC 9.16 -0.24 CadenceDesign CDNS 44.07 -0.23 MonsterBeverage MNST 58.00 0.08
Aflac AFL 83.99 0.18 Athene ATH 49.00 -0.53 CNA Fin CNA 54.09 -0.68 s DukeEnergy DUK 89.23 -0.13 t HarleyDavidson HOG 45.51 0.73 Loews L 49.58 0.09 RPM RPM 52.03 -0.17 TurquoiseHill TRQ 3.16 -0.01 CaesarsEnt CZR 13.05 0.10 Mylan MYL 37.24 0.57
AT&T T 33.44 0.37 s AtmosEnergy ATO 89.24 0.67 CNOOC CEO 141.50 -1.76 DukeRealty DRE 29.03 0.05 Harris HRS 141.29 1.92 Lowe's LOW 78.09 0.46 RSP Permian RSPP 36.53 -0.29 Twitter TWTR 19.59 -0.07 Carlyle CG 21.50 -0.50 NXP Semi NXPI116.34 -0.32
AbbottLabs ABT 55.25 0.09 Autohome ATHM 64.60 -0.28 CPFLEnergia CPL 16.90 0.15 ENI E 34.01 -0.08 HartfordFinl HIG 55.20 -0.14 LyondellBasell LYB 105.86 -0.06 RalphLauren RL 85.43 0.43 TylerTech TYL 172.68 0.02 CboeGlobalMkts CBOE 113.42 ... Nasdaq NDAQ 72.74 0.72
AbbVie ABBV 95.71 1.75 Autoliv ALV 125.07 -0.39 CRH CRH 36.24 0.82 EOG Rscs EOG 104.33 -1.76 HealthcareAmer HTA 30.59 0.16 M&T Bank MTB 161.21 -1.67 RaymondJames RJF 84.17 0.14 s TysonFoods TSN 74.00 0.91 Celgene CELG 101.65 -0.68 NatlInstruments NATI 45.10 -0.12
s Accenture ACN 144.89 1.39 AutoZone AZO 596.03 -7.53 CVS Health CVS 68.99 0.04 EQT EQT 64.45 1.21 Heico HEI 90.82 -0.54 MGM Resorts MGM 33.06 1.60 Raytheon RTN 187.83 1.03 UBS Group UBS 16.95 0.05 CentennialRsc CDEV 20.03 -0.99 s NetApp NTAP 45.33 0.68
AcuityBrands AYI 158.27 -1.76 Avalonbay AVB 186.69 2.93 CabotOil COG 27.82 -0.02 EQT Midstream EQM 71.80 -1.19 Heico A HEI.A 77.25 -0.40 MPLX MPLX 35.17 ... RealtyIncome O 56.17 -0.05 UDR UDR 40.05 0.76 Cerner CERN 66.28 0.36 Netease NTES 314.18 7.59
Adient ADNT 77.42 -0.67 Avangrid AGR 51.15 -0.17 CamdenProperty CPT 94.22 0.13 EastmanChem EMN 90.59 -0.02 Helmerich&Payne HP 59.10 0.64 MSCI MSCI 127.10 1.12 s RedHat RHT 123.92 2.00 UGI UGI 48.03 ... CharterComms CHTR 337.90 -5.11 Netflix NFLX 196.44 0.55
t AdvanceAuto AAP 79.41 0.03 AveryDennison AVY 107.75 0.71 CampbellSoup CPB 47.16 0.93 Eaton ETN 79.05 0.38 Herbalife HLF 65.76 -0.50 Macerich MAC 58.84 0.08 RegencyCtrs REG 65.76 0.50 US Foods USFD 26.67 0.63 CheckPointSftw CHKP 105.36 0.37 s Neurocrine NBIX 74.05 -0.48
AdvSemiEngg ASX 6.20 0.06 AxaltaCoating AXTA 32.80 -0.26 CIBC CM 90.03 0.27 EatonVance EV 51.11 0.41 Hershey HSY 107.75 1.78 MacquarieInfr MIC 67.98 -0.47 RegionsFin RF 15.36 -0.11 UltraparPart UGP 23.72 0.32 ChinaLodging HTHT 127.80 -1.81 NewsCorp B NWS 14.45 0.05
Aegon AEG 5.85 -0.04 BB&T BBT 47.75 -0.48 CanNtlRlwy CNI 80.40 0.26 Ecolab ECL 130.39 -0.56 Hess HES 47.08 -0.87 MagellanMid MMP 68.60 -0.75 ReinsuranceGrp RGA 150.70 -0.34 Unilever UN 57.47 0.62 CincinnatiFin CINF 72.70 -0.17 NewsCorp A NWSA 14.14 -0.01
AerCap AER 51.98 -0.21 BCE BCE 47.67 -0.07 CanNaturalRes CNQ 36.55 0.37 s Ecopetrol EC 11.61 -0.38 HewlettPackard HPE 13.54 -0.03 MagnaIntl MGA 53.40 -0.89 RelianceSteel RS 77.19 0.31 Unilever UL 56.21 0.60 Cintas CTAS 149.61 1.74 Nordson NDSN 126.00 -0.94
Aetna AET 175.44 -1.39 BHPBilliton BHP 43.78 0.55 CanPacRlwy CP 174.37 1.99 EdisonInt EIX 80.20 0.80 Hilton HLT 72.90 0.29 Manpower MAN 125.54 0.44 RepublicServices RSG 63.88 -0.26 UnionPacific UNP 117.80 0.76 CiscoSystems CSCO 34.50 0.10 NorthernTrust NTRS 92.87 0.46
AffiliatedMgrs AMG 185.95 0.61 BHPBilliton BBL 38.85 0.48 s Canon CAJ 38.76 0.57 EdwardsLife EW 105.24 0.83 s HollyFrontier HFC 42.32 -0.01 ManulifeFin MFC 20.67 -0.09 ResMed RMD 82.19 0.05 UnitedContinental UAL 58.92 0.21 CitrixSystems CTXS 85.91 1.43 NorwegianCruise NCLH 55.56 0.20
AgilentTechs A 68.11 -0.14 BP BP 41.40 -0.08 CapitalOne COF 88.97 -1.15 EmersonElectric EMR 62.52 -0.56 HomeDepot HD 164.05 0.39 MarathonOil MRO 15.75 -0.41 RestaurantBrands QSR 65.51 -0.02 UnitedMicro UMC 2.55 0.02 s Cognex CGNX 135.39 -0.62 NVIDIA NVDA 209.16 -2.87
AgnicoEagle AEM 45.59 0.55 BRF BRFS 13.25 0.41 CardinalHealth CAH 60.99 0.72 EnbridgeEnPtrs EEP 14.51 -0.19 s HondaMotor HMC 33.64 0.11 s MarathonPetrol MPC 63.22 0.11 RiceEnergy RICE 29.13 0.48 UPS B UPS 113.13 -0.82 CognizantTech CTSH 74.38 -0.27 OReillyAuto ORLY 209.65 1.54
Agrium AGU 107.02 -0.20 BT Group BT 16.68 0.18 Carlisle CSL 110.14 0.01 Enbridge ENB 36.79 0.08 s Honeywell HON 146.86 -0.11 Markel MKL 1073.60 -8.88 RioTinto RIO 50.50 0.61 UnitedRentals URI 148.74 1.19 s Coherent COHR 297.24 31.77 OldDomFreight ODFL 120.95 -0.27
AirProducts APD 160.94 1.17 BWX Tech BWXT 60.53 0.49 CarMax KMX 73.44 0.02 Encana ECA 12.60 -0.15 HormelFoods HRL 32.15 0.65 Marsh&McLennan MMC 82.43 -0.03 RobertHalf RHI 52.74 0.31 US Bancorp USB 52.68 -0.77 Comcast A CMCSA 36.21 -0.18 ON Semi ON 21.85 0.24
t AlaskaAir ALK 62.08 -0.12 BakerHughes BHGE 32.84 -0.56 Carnival CCL 65.93 -0.45 EnelAmericas ENIA 10.70 0.09 s DR Horton DHI 45.41 0.46 MartinMarietta MLM 213.20 3.16 Rockwell ROK 193.78 -7.05 US Steel X 27.27 0.32 CommerceBcshrs CBSH 55.46 -0.64 OpenText OTEX 33.40 -0.33
s Albemarle ALB 144.58 1.45 Ball BLL 40.74 -0.31 Carnival CUK 65.74 -0.72 EnelChile ENIC 5.72 ... HostHotels HST 20.19 0.40 Masco MAS 39.13 0.05 RockwellCollins COL 134.55 -0.43 UnitedTech UTX 120.28 -0.47 CommScope COMM 33.85 -0.06 PTC PTC 65.04 -0.09
Alcoa AA 45.89 -1.08 BancoBilbaoViz BBVA 8.36 0.04 Caterpillar CAT 137.29 -1.52 EnelGenChile EOCC 26.03 0.16 HuanengPower HNP 27.68 0.57 Mastercard MA 149.97 ... RogersComm B RCI 52.34 0.09 UnitedHealth UNH 210.77 -1.93 Copart CPRT 35.90 0.15 Paccar PCAR 70.52 0.04
s AlexandriaRealEst ARE 126.23 0.17 BancodeChile BCH 91.15 -0.13 Celanese A CE 106.28 -0.58 EnergyTrfrEquity ETE 17.79 -0.91 Hubbell HUBB 123.58 -1.03 McCormick MKC 96.43 1.25 Rollins ROL 45.24 -0.13 t UniversalHealthB UHS 100.74 -0.31 s CoStarGroup CSGP 300.70 1.34 PacWestBancorp PACW 45.44 -0.03
Alibaba BABA 185.90 -2.61 BancoMacro BMA 124.36 5.14 Cemex CX 8.18 0.10 EnergyTransfer ETP 16.77 -0.57 Humana HUM 243.48-12.83 s McDonalds MCD 170.10 -0.67 RoperTech ROP 259.26 -1.09 UnumGroup UNM 52.64 -0.06 Costco COST 169.05 2.77 Paychex PAYX 64.55 0.28
Alleghany Y 580.41 -2.35 BcoSantChile BSAC 31.07 0.31 CenovusEnergy CVE 11.37 0.16 EnLinkMidPtrs ENLK 15.90 -0.21 s HuntingtonIngalls HII 251.96 18.61 McKesson MCK 140.36 3.43 RoyalBkCanada RY 79.42 0.11 VEREIT VER 8.11 0.08 Ctrip.com CTRP 45.95 0.05 PayPal PYPL 74.77 0.36
Allegion ALLE 83.43 -0.10 BancoSantander SAN 6.48 0.02 Centene CNC 93.15 -1.66 Entergy ETR 86.24 0.28 Huntsman HUN 31.55 -0.12 Medtronic MDT 77.81 -0.20 RoyalBkScotland RBS 7.31 0.01 VF VFC 69.49 0.81 CyrusOne CONE 63.23 0.83 People'sUtdFin PBCT 17.95 -0.10
Allergan AGN 175.01 2.04 BanColombia CIB 38.16 0.63 CenterPointEner CNP 29.95 ... EnterpriseProd EPD 24.90 -0.12 s HyattHotels H MRK 56.58 0.99 RoyalCaribbean RCL 128.92 -0.31 s Visa V 112.47 0.38 DISH Network DISH 48.73 -1.34 s PilgrimPride PPC 33.13 2.67
69.79 0.26 Merck
AllianceData ADS 229.61 -0.11 BankofAmerica BAC 26.79 -0.39 CentraisElBras EBR 6.55 0.12 Equifax EFX 107.20 -0.22 ICICI Bank IBN 9.34 -0.04 MetLife MET 53.02 -0.38 RoyalDutchA RDS.A 64.35 -0.19 VailResorts MTN 234.89 -0.85 DentsplySirona XRAY 64.51 0.13 Priceline PCLN1661.11 15.39
AllianceBernstein AB 24.90 -0.10 BankofMontreal BMO 77.87 0.26 CenturyLink CTL 16.26 0.04 EquityLife ELS 89.70 0.34 ING Groep ING 18.29 0.14 MettlerToledo MTD623.72 -0.86 RoyalDutchB RDS.B 66.06 -0.41 Vale VALE 10.39 0.07 DiamondbackEner FANG 110.04 -1.76 Qiagen QGEN 31.74 1.06
AlliantEnergy LNT 44.07 -0.10 BankNY Mellon BK 51.22 0.15 Chemours CC 51.01 0.01 s EquityResdntl EQR 70.37 0.81 Invesco IVZ 35.69 0.08 MichaelKors KORS 53.95 -0.69 SAP SAP 114.60 0.38 ValeroEnergy VLO 81.67 -0.16 DiscoveryComm A DISCA 17.10 -0.23 s Qorvo QRVO 80.82 2.36
AllisonTransm ALSN 43.68 -0.14 s BkNovaScotia BNS 65.80 0.27 Chevron CVX 116.67 -0.57 EssexProp ESS 258.79 3.79 IDEX IEX 128.03 0.55 MicroFocus MFGP 34.97 0.39 S&P Global SPGI 160.06 0.99 Vantiv VNTV 68.44 0.23 DiscoveryComm C DISCK 15.99 -0.22 Qualcomm QCOM 65.49 1.39
Allstate ALL 99.09 -0.09 Barclays BCS 9.44 -0.04 ChinaEastrnAir CEA 25.11 -0.36 EsteeLauder EL 123.08 0.86 IllinoisToolWks ITW 157.65 -0.18 MidAmApt MAA 105.61 0.58 SINOPECShanghai SHI 59.88 0.94 VarianMed VAR 107.60 1.13 DollarTree DLTR 93.90 0.28 RandgoldRscs GOLD 91.42 0.27
AllyFinancial ALLY 25.72 -0.74 Bard CR BCR 334.08 0.51 ChinaLifeIns LFC 17.41 0.08 EverestRe RE 228.36 1.33 Infosys INFY 14.92 0.07 MitsubishiUFJ MTU 6.68 -0.02 SK Telecom SKM 25.59 0.09 Vedanta VEDL 20.17 -0.45 E*TRADE ETFC 43.48 -0.14 RegenPharm REGN 415.17 10.78
AlticeUSA ATUS 22.80 -0.26 BarrickGold ABX 13.99 ... ChinaMobile CHL 51.08 0.33 s EversourceEner ES 64.63 0.11 Ingersoll-Rand IR 85.68 0.12 MizuhoFin MFG 3.62 ... SLGreenRealty SLG 97.04 0.58 VeevaSystems VEEV 61.88 0.61 s EXACT Sci EXAS 60.51 0.01 RossStores ROST 63.87 -0.92
Altria MO 64.59 0.28 BaxterIntl BAX 65.01 0.69 ChinaPetrol SNP 74.84 -1.82 Exelon EXC 41.32 0.05 s Ingredion INGR 131.96 1.53 MobileTeleSys MBT 11.08 -0.22 s Salesforce.com CRM 105.03 2.31 Ventas VTR 64.65 0.32 EastWestBancorp EWBC 57.33 -0.31 RoyalGold RGLD 89.21 0.16
AlumofChina ACH 19.27 -0.21 BectonDickinson BDX 221.43 0.16 ChinaSoAirlines ZNH 37.22 -0.96 ExtraSpaceSt EXR 86.01 0.33 ICE ICE 65.99 0.41 MohawkIndustries MHK 263.48 2.56 Sanofi SNY 45.88 0.30 Verizon VZ 45.46 -0.11 eBay EBAY 37.01 -0.40 Ryanair RYAAY 111.65 -0.15
Ambev ABEV 6.18 0.06 WRB 68.71 -0.32 ChinaTelecom CHA 50.23 -0.24 MolsonCoors A TAP.A 83.20 -2.65 SantanderConUSA SC 16.42 -0.20 VistraEnergy VST 18.88 -0.07 ElbitSystems ESLT 148.00 0.20 s SBA Comm SBAC 169.50 3.85
Berkley ExxonMobil XOM 83.47 -0.11 InterContinentl IHG 56.95 0.36
s Ameren AEE 62.66 -0.21 BerkHathwy A BRK.A 276676-2684.98 ChinaUnicom CHU 15.14 -0.08 MolsonCoors B TAP 79.63 0.75 Sasol SSL 30.48 0.04 s VMware VMW 120.55 0.12 ElectronicArts EA 114.15 2.45 SEI Investments SEIC 65.11 -0.02
FMC FMC 93.24 -0.27 IBM IBM 151.57 0.22
AmericaMovil AMX 17.39 -0.05 BerkHathwy B BRK.B 184.60 -1.70 Chipotle CMG 273.90 -0.60 s FactSet FDS 195.30 3.96 IntlFlavors IFF 147.53 -2.46 Monsanto MON117.38 -2.16 Scana SCG 43.23 -1.30 VornadoRealty VNO 74.24 0.27 s Equinix EQIX 492.98 4.92 Sina SINA107.61 4.61
AmericaMovil A AMOV 17.22 -0.08 BerryGlobal BERY 58.48 0.50 Chubb CB 150.10 0.30 FederalRealty FRT 128.87 0.26 IntlPaper IP 55.28 0.03 Moody's MCO 144.93 1.16 Schlumberger SLB 67.06 0.63 VoyaFinancial VOYA 41.56 -0.49 Ericsson ERIC 6.28 -0.20 SS&C Tech SSNC 40.73 0.13
AmCampus ACC 42.60 0.41 BestBuy BBY 56.55 1.42 ChunghwaTelecom CHT 34.04 0.21 FedEx FDX 220.50 -0.66 t Interpublic IPG 18.62 0.08 MorganStanley MS 49.04 -0.35 SchwabC SCHW 44.28 0.13 VulcanMaterials VMC 123.90 1.24 ErieIndemnity A ERIE 122.04 -0.41 SVB Fin SIVB 209.56 -5.50
s AEP AEP 75.52 0.33 s Bio-RadLab A BIO 266.31 4.09 Church&Dwight CHD 44.45 0.69 Ferrari RACE 112.80 -2.09 InvitationHomes INVH 23.16 -0.04 Mosaic MOS 22.64 0.08 ScottsMiracleGro SMG 98.87 -3.55 WABCO WBC 148.15 -0.92 Exelixis EXEL 26.40 -0.19 ScrippsNetworks SNI 78.85 -1.54
AmericanExpress AXP 95.13 -0.24 BlackKnight BKI 46.50 0.40 Cigna CI 200.50 -4.99 FiatChrysler FCAU 17.49 -0.38 IronMountain IRM 40.77 0.17 MotorolaSolutions MSI 92.66 0.55 SealedAir SEE 44.80 1.19 WEC Energy WEC 68.17 -0.07 Expedia EXPE 118.56 -1.05 Seagate STX 37.71 0.59
AmericanFin AFG 104.51 -0.43 SemicondctrMfg SMI 8.47 -0.17 s W.P.Carey WPC 71.32 0.10 ExpeditorsIntl EXPD 60.49 -1.55 SeattleGenetics SGEN 57.87 -0.58
BlackBerry BB 10.82 -0.01 CimarexEnergy XEC 125.34 -0.63 FibriaCelulose FBR 15.14 -0.02 IsraelChemicals ICL 4.23 0.07 NRG Energy NRG 28.02 -0.40
AmerHomes4Rent AMH 21.90 -0.01 BlackRock BLK 472.20 -1.17 72.34 -0.37 NTTDoCoMo DCM 24.79 0.12 s SempraEnergy SRE 121.03 0.51 Wabtec WAB 77.04 0.84 ExpressScripts ESRX 61.30 0.70 Shire SHPG 141.31 -3.38
Citigroup C FidelityNatlFin FNF 37.65 -0.17 ItauUnibanco ITUB 13.05 0.48 s Wal-Mart WMT 90.26
AIG AIG 61.67 -0.46 BlackstoneGroup BX 32.65 -0.39 CitizensFin CFG 37.31 -0.36 NVR 3295.47 51.28 SensataTech ST 48.56 0.46 1.31 F5Networks FFIV 121.34 1.21 SignatureBank SBNY 124.41 -2.39
FNFV Group FNFV 17.45 ... JPMorganChase JPM 97.64 -1.11 NVR
s AmerTowerREIT AMT 152.72 2.06 BoardwalkPipe BWP 14.52 -0.06 CLX 131.05 NationalGrid NGG 61.85 0.36 ServiceCorp SCI 35.55 -0.59 WasteConnections WCN 68.97 -0.17 Facebook FB 179.56 -0.69 SiriusXM SIRI 5.36 0.03
Clorox 1.35 FidelityNtlInfo FIS 91.65 1.18 JacobsEngineering JEC 61.12 0.19
s AmerWaterWorks AWK 90.24 0.24 s Boeing BA 265.57 -0.56 NatlOilwell NOV 35.02 -0.08 ServiceMaster SERV 46.82 -0.44 WasteMgt WM 81.84 0.21 Fastenal FAST 48.47 0.43 Skyworks SWKS 113.15 1.96
Coca-Cola KO 46.18 0.24 58.com WUBA 67.40 -0.04 JamesHardie JHX 14.65 -0.10 s Splunk
Amerigas APU 46.12 0.02 ServiceNow NOW 127.62 2.09 Waters WAT 196.18 -0.17 FifthThirdBncp FITB 28.30 -0.15 SPLK 71.16 3.16
BorgWarner BWA 52.19 -0.21 Coca-Cola Euro CCE 39.53 1.64 FirstAmerFin FAF 54.75 -0.62 JanusHenderson JHG 34.65 0.06 NatlRetailProp NNN 41.70 0.10 s Watsco
Ameriprise AMP 159.99 0.76 ShawComm B SJR 22.50 -0.12 WSO 165.52 -2.09 FirstSolar FSLR 61.79 0.83 Starbucks SBUX 57.91 0.69
BostonProperties BXP 124.74 0.55 Coca-Cola Femsa KOF 67.91 0.40 FirstData FDC 16.84 ... J&J JNJ 141.32 1.55 NewOrientalEduc EDU 87.14 -0.37
AmerisourceBrgn ABC 75.01 0.10 SherwinWilliams SHW 395.51 1.50 WellCareHealth WCG 202.85 0.45 Fiserv FISV 128.82 1.85 SteelDynamics STLD 37.77 0.38
BostonScientific BSX 28.10 0.14 Colgate-Palmolive CL 73.27 2.37 FirstRepBank FRC 91.97 -1.73 JohnsonControls JCI 41.00 0.01 NY CmntyBcp NYCB 12.05 -0.14
WellsFargo WFC 54.26 -0.79 Stericycle SRCL 67.10 -0.06
Ametek AME 68.05 -0.51 Braskem BAK 31.32 0.72 ColonyNorthStar CLNS 12.35 -0.01 FirstEnergy FE 33.73 0.59 s JonesLangLaSalle JLL 144.49 1.99 NewellBrands NWL 31.41 0.76 ShinhanFin SHG 43.95 -0.83 Flex FLEX 18.36 0.13
SHOP 99.40 -0.31 Welltower HCN 68.75 0.16 FlirSystems FLIR 46.99 -0.28 Symantec SYMC 29.03 0.35
Amphenol APH 87.74 0.37 Bristol-Myers BMY 62.58 0.67 Comerica CMA 76.14 -1.02 FleetCorTech FLT 175.95 -1.05 JuniperNetworks JNPR 24.79 0.29 NewfieldExpln NFX 32.28 -0.58 Shopify
SimonProperty SPG 157.03 -2.02 WestPharmSvcs WST 101.24 0.20 FTNT 39.91 0.82 Synopsys SNPS 87.07 0.16
AnadarkoPetrol APC 51.16 0.08 BritishAmTob BTI 65.11 0.22 SABESP SBS 8.95 0.22 Fluor FLR 47.62 -0.46 KAR Auction KAR 49.18 0.16 NewmontMining NEM 36.31 0.27 Fortinet
WestarEnergy WR 54.68 0.09 TD Ameritrade AMTD 48.63 0.14
Andeavor ANDV 111.14 -0.14 s BroadridgeFinl BR 90.48 3.11 ConagraBrands CAG 34.31 0.55 FomentoEconMex FMX 86.64 -0.09 KB Fin KB 51.83 0.23 NextEraEnergy NEE 154.92 -0.57 SmithAO AOS 59.57 0.07 Gaming&Leisure GLPI 37.20 0.24
t TESARO
Smith&Nephew SNN 36.73 -0.35
WestAllianceBcp WAL 54.62 0.06 Garmin GRMN 59.65 0.44 TSRO 98.44-13.64
AB InBev BUD 118.15 -0.51 BrookfieldMgt BAM 42.30 0.52 ConchoRscs CXO 145.06 -1.65 FordMotor F 12.06 -0.10 KKR KKR 19.76 -0.23 NielsenHoldings NLSN 37.54 -0.46 t WesternGasEquity WGP 37.49 -0.59 T-MobileUS TMUS 56.22 0.86
AnnalyCap NLY 11.32 0.08 BrookfieldInfr BIP 43.59 0.30 s ConocoPhillips COP 53.52 0.04 ForestCIty A FCE.A 25.06 0.07 KT KT 14.17 0.07 Nike NKE 55.76 0.61 Smucker SJM 103.38 1.61 GileadSciences GILD 73.10 -0.11
WesternGasPtrs WES 46.56 -0.66 TRowePrice TROW 93.49 -0.27
AnteroResources AR 19.49 -0.21 Brown&Brown BRO 49.70 -0.53 s ConEd ED 87.86 0.17 s Fortis FTS 37.75 0.02 KSCitySouthern KSU 105.74 -0.32 NiSource NI 27.52 0.05 Snap SNAP 12.91 -2.21 Goodyear GT 29.24 -0.35
s TakeTwoSoftware TTWO 117.65 11.26
SNA 157.33 WesternUnion WU 19.75 0.59 GRFS 23.01 -0.27
Anthem ANTM 216.87 -0.60 Brown-Forman A BF.A 56.49 0.68 ConstBrands A STZ 217.63 2.15 Fortive FTV 72.77 -0.70 Kellogg K 62.82 1.98 NobleEnergy NBL 28.43 -0.48 SnapOn -1.22 Grifols
s WestlakeChem WLK 93.95 2.33 Tesla TSLA 304.39 -1.66
Aon AON 140.87 0.66 Brown-Forman B BF.B 56.46 0.72 ContinentalRscs CLR 44.89 1.30 FortBrandsHome FBHS 64.12 -0.34 KeyCorp KEY 17.93 -0.17 Nokia NOK 5.05 ... SOQUIMICH SQM 59.82 -0.01 GpoFinGalicia GGAL 53.71 0.77
s Sony WestpacBanking WBK 25.04 0.25
HD Supply HDS 36.12 -0.22 TexasInstruments TXN 98.44 0.04
Apache APA 44.51 -0.68 BuckeyePtrs BPL 52.40 -0.72 Cooper COO 230.48 1.15 Franco-Nevada FNV 84.06 0.57 KeysightTechs KEYS 45.39 -0.02 NomuraHoldings NMR 5.97 0.13 SNE 47.47 1.46
WestRock WRK 59.34 0.39 TractorSupply TSCO 60.64 1.50
ApartmtInv AIV 45.36 0.46 Bunge BG 67.89 0.46 s Corning GLW 32.22 -0.03 FranklinRscs BEN 41.89 0.11 KilroyRealty KRC 74.19 0.17 t Nordstrom JWN 38.30 -0.01 Southern SO 51.77 0.05
s Weyerhaeuser WY 36.41
Hasbro HAS 89.01 -0.88
0.42 t HenrySchein HSIC 70.00 -1.01 Trimble TRMB 40.42 -0.06
ApolloGlobalMgmt APO 31.14 -0.26 BurlingtonStores BURL 97.51 0.23 Coty COTY 14.76 0.31 Freeport-McMoRan FCX 14.86 0.31 KimberlyClark KMB 113.23 1.30 NorfolkSouthern NSC 129.33 -0.12 SoCopper SCCO 44.39 0.37
WheatonPrecMetals WPM 21.16 ...
HOLX 39.54 0.04 21stCenturyFoxA FOXA 28.09 0.34
s AquaAmerica WTR 36.56 0.28 CBD Pao CBD 23.00 0.45 Credicorp BAP 206.43 -1.02 FreseniusMed FMS 48.68 0.09 KimcoRealty KIM 18.93 0.11 NorthropGrumman NOC 303.30 -0.01 SouthwestAirlines LUV 54.01 0.14
Whirlpool WHR 162.77 0.21
Hologic
21stCenturyFoxB FOX 27.35 0.31
Novartis NVS 82.94 0.55 SpectraEnerPtrs SEP 41.64 -1.05 JBHunt JBHT 104.36 -2.29
Williams WMB 28.38 -0.39 UltaBeauty ULTA 195.90 -2.11
NovoNordisk NVO 50.27 0.56 SpectrumBrands SPB 104.20 0.35 HuntingtonBcshs HBAN 13.29 -0.11
WilliamsPartners WPZ 36.52 -0.74 s IAC/InterActive IAC 130.84 2.20 UltimateSoftware ULTI 199.00 2.87
Nucor NUE 57.70 0.01 SpiritAeroSys SPR 82.38 -0.12
WIT 5.09 s UniversalDisplay OLED 168.70 1.13
Wipro 0.04
Borrowing Benchmarks | WSJ.com/bonds t NuSTAREnergy NS 31.52 -0.54
OGE Energy OGE 35.73 -0.11
t Sprint
Square
S 5.99
SQ 36.71
0.24
-0.05
WooriBank WF 41.69
Wyndham WYN 109.09
0.09
0.41
IdexxLab IDXX 150.07 -0.01
IHSMarkit INFO 43.93 0.50
VEON
VeriSign
VEON 3.81 0.03
VRSN 109.97 0.87
ONEOK OKE 53.10 -0.07 StanleyBlackDck SWK 165.72 0.52 INC Research INCR 57.50 -1.10 VeriskAnalytics VRSK 92.57 0.28
XPO Logistics XPO 73.55 -0.03
s IPG Photonics IPGP 221.79 0.36
OccidentalPetrol OXY 68.17 -0.58 StateStreet STT 91.13 0.85
XcelEnergy XEL 50.25 0.22 VertxPharm VRTX 147.40 -3.91
s Statoil IRSA Prop IRCP 58.00 1.65
Money Rates November 8, 2017 Och-Ziff
Olin
OZM 3.12 -0.10
OLN 36.77 0.83 Steris
STO 20.85
STE 87.69
0.09
0.38
Xerox
Xylem
XRX 29.37
XYL 66.55
0.78
-0.06
IcahnEnterprises IEP 58.12 -0.38
Viacom B VIAB 24.30 -0.48
Viacom A VIA 29.70 -0.55
t Omnicom OMC 65.60 0.08 STMicroelec STM 24.68 0.27 YPF YPF 24.81 0.09 Icon ICLR 120.70 -0.69 Vodafone VOD 28.81 -0.13
Oracle ORCL 50.54 0.05 Stryker SYK 156.46 0.24 Illumina ILMN 211.20 -0.54
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Orange ORAN 16.59 0.05 SumitomoMits SMFG 8.00 0.06
s YumBrands YUM 81.13 0.12
Incyte INCY 104.98 -3.16
WPP WPPGY 85.35 -0.17
YumChina YUMC 41.05 -0.15 WalgreensBoots WBA 68.90 0.98
guide to general levels but don’t always represent actual transactions. OrbitalATK OA 132.93 -0.02 SunCommunities SUI 93.16 0.21 s ZTO Express ZTO 17.39 0.28 Intel INTC 46.70 -0.08 s Weibo WB 108.97 9.69
Week —52-WEEK— Week —52-WEEK— Orix IX 87.37 0.12 SunLifeFinancial SLF 38.83 -0.32 ZayoGroup ZAYO 34.38 -0.08 InteractiveBrkrs IBKR 53.99 -0.10 WesternDigital WDC 87.12 1.03
Inflation Latest ago High Low Latest ago High Low Oshkosh OSK 85.05 -2.24 s SuncorEnergy SU 36.07 0.02 ZimmerBiomet ZBH 109.17 0.45 Intuit INTU 152.96 0.45 WillisTwrsWatson WLTW 160.99 -0.61
OwensCorning OC 82.45 0.23 SunTrustBanks STI 57.61 -0.47 Zoetis ZTS 69.51 1.17
s IntuitiveSurgical ISRG 392.34 1.30 Workday WDAY 110.88 2.35
Sept. index Chg From (%) PG&E PCG 55.83 -0.47 SynchronyFin SYF 32.07 -0.29 IonisPharma IONS 54.76 2.46
Treasury bill auction Six month 1.60162 1.57979 1.60162 1.24267 WynnResorts WYNN 152.79 0.60
level Aug. '17 Sept. '16
One year 1.87317 1.85594 1.87317 1.55622
PLDT
PNC Fin
PHI 32.88 -0.06
PNC 133.29 -0.80
Syngenta SYT 92.29
Sysco SYY 53.98
-0.01
1.39
NASDAQ JD.com JD 40.33 0.54
s JackHenry JKHY 113.86 1.30
Xilinx XLNX 73.62 -0.29
4 weeks 1.035 1.020 1.300 0.270 Yandex YNDX 32.72 0.14
U.S. consumer price index POSCO PKX 71.84 -0.26 TAL Education TAL 30.36 ... AGNC Invt AGNC 19.73 0.16 JazzPharma JAZZ136.40 3.58 ZebraTech ZBRA106.61 -2.70
13 weeks 1.185 1.130 1.185 0.420 Euro Libor PPG Ind PPG 116.12 -0.22 s TE Connectivity TEL 93.70 0.47 Ansys ANSS 151.48 -0.45 JetBlue JBLU 18.80 -0.12 Zillow A ZG 41.15 0.93
All items 246.819 0.53 2.2 26 weeks 1.300 1.260 1.300 0.535 PPL PPL 36.92 -0.29 Telus TU 37.09 0.32 ASML ASML 181.51 -2.01 JunoTherap JUNO 54.96 -1.02 Zillow C 41.04 1.07
One month -0.400 -0.399 -0.376 -0.405 PVH PVH 123.57 0.83 TIM Part TSU 18.30 0.78 Abiomed ABMD 196.97 -0.24 KLA Tencor KLAC 107.08 -0.42
Z
Core 252.941 0.19 1.7 ZionsBancorp ZION 44.54 -0.34
Three month -0.378 -0.378 -0.325 -0.381 PackagingCpAm PKG 111.41 0.06 TJX TJX 67.98 -0.01 ActivisionBliz ATVI 64.55 3.59 KraftHeinz KHC 79.58 1.40
Secondary market Six month -0.314 -0.322 -0.214 -0.322 PaloAltoNtwks PANW 148.46 1.77 TaiwanSemi TSM 42.43 -0.08 s AdobeSystems ADBE 184.06 3.18 LKQ LKQ 36.91 -0.06 NYSE AMER
International rates ParkHotels PK 29.29 0.04 Tapestry TPR 40.08 -1.85 AdvMicroDevices AMD 11.71 -0.34 s LamResearch LRCX 211.24 2.05
Fannie Mae One year -0.236 -0.233 -0.075 -0.238 ParkerHannifin PH 184.87 -0.60 TargaResources TRGP 43.67 -0.62 AkamaiTech AKAM 53.76 ... LamarAdvertising LAMR 76.95 -0.26 CheniereEnergy LNG 50.43 0.24
Week 52-Week ParsleyEnergy PE 27.10 -1.30 Target TGT 58.37 0.48 AlexionPharm ALXN 115.39 -2.03 LibertyBroadbandC LBRDK 87.73 -1.78 CheniereEnerPtrs CQP 28.25 -0.45
Latest High Low
30-year mortgage yields Euro interbank offered rate (Euribor) Pearson PSO 9.10 -0.02 TataMotors TTM 33.69 0.27 s AlignTech ALGN 252.74 6.28 LibertyBroadbandA LBRDA 87.09 -1.63 CheniereEnHldgs CQH 26.98 -0.16
ago
s PembinaPipeline PBA 36.27 0.44 TechnipFMC FTI 29.14 -0.15 Alkermes ALKS 48.03 0.33 LibertyGlobal A LBTYA 29.80 -0.74 ImperialOil IMO 31.56 0.22
30 days 3.428 3.490 3.865 3.132 One month -0.372 -0.371 -0.366 -0.375
Prime rates 60 days 3.448 3.517 3.899 3.163 Three month -0.329 -0.329 -0.311 -0.332
U.S. 4.25 4.25 4.25 3.50 Six month -0.276 -0.276 -0.210 -0.276
Other short-term rates -0.191 -0.187 -0.069 -0.191
Canada
Japan
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
One year
Value 52-Week
Dividend Changes Company Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Week 52-Week Latest Traded High Low
Dividend announcements from November 8. Harvest Capital Credit HCAP 11.1 .1125 M Dec29 /Dec22
Policy Rates Latest ago high low
Harvest Capital Credit HCAP 11.1 .1125 M Jan26 /Jan19
DTCC GCF Repo Index Amount Payable / IQ Enh Core Plus Bd US AGGP 1.9 .03241 M Nov13 /Nov09
Euro zone 0.00 0.00 0.00 0.00 Call money Treasury 1.159 25.302 1.366 0.244 Company Symbol Yld % New/Old Frq Record IQ Enhanced Core Bd US AGGE 1.9 .03189 M Nov13 /Nov09
Switzerland 0.50 0.50 0.50 0.50
3.00 3.00 3.00 2.25 MBS 1.180 116.070 1.506 0.257 MS Income Secs ICB 2.8 .0425 M Nov24 /Nov17
Britain 0.50 0.25 0.50 0.25 Increased TCG BDC CGBD 8.1 .37 Q Jan17 /Dec29
Australia 1.50 1.50 1.50 1.50 Commercial paper (AA financial) Open Implied Automatic Data ADP 2.2 .63 /.57 Q Jan01 /Dec08 TPG Specialty Lending TSLX 7.5 .06 Dec29 /Nov30
Settle Change Interest Rate Core-Mark Holding CORE 1.4 .10 /.09 Q Dec22 /Nov28 TPG Specialty Lending TSLX 7.5 .39 Q Jan12 /Dec15
Overnight repurchase 90 days 1.32 1.14 1.32 0.62 Emerson Electric EMR 3.1 .485 /.48 Q Dec11 /Nov17
1.19 1.38 0.15
DTCC GCF Repo Index Futures Stocks
U.S. 1.15 Huntington Ingalls Inds HII 1.1 .72 /.60 Q Dec08 /Nov24
Libor Treasury Nov 98.840 unch. 8568 1.160 Ladder Capital Cl A LADR 9.2 .315 /.30 Q Jan03 /Dec11 SPI Energy SPI 1:10 /Nov08
U.S. government rates One month 1.24606 1.24333 1.24606 0.53644 Treasury Dec 98.690 -0.005 2019 1.310 Lexington Realty Trust LXP 6.8 .1775 /.175 Q Jan16 /Dec29
Foreign
Three month 1.40981 1.38483 1.40981 0.88650 Treasury Jan 98.595 -0.005 450 1.405 MainSource Fincl Group MSFG 2.0 .18 /.17 Q Dec15 /Dec05 CS X-Links Crude Oil ETN USOI 8.2 .1735 M Nov27 /Nov21
Discount NACCO Industries Cl A NC 1.5 .165 /.06225 Q Dec15 /Dec01 CS X-Links Silver ETN SLVO 9.8 .0663 M Nov27 /Nov21
Nelnet A NNI 1.2 .16 /.14 Q Dec15 /Dec01 Innospec 1.1 .39 SA Nov27 /Nov16
1.75 1.75 1.75 1.00 Sanchez Midstream Ptrs SNMP 14.2 .4508 /.4441 Q Nov30 /Nov20
IOSP
Notes on data: Tenaris ADR TS 1.7 .26 SA /Nov21
Universal Corp UVV 4.0 .55 /.54 Q Feb05 /Jan08
Federal funds U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, Special
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary Reduced Bassett Furniture Inds BSET 1.2 .35 Dec15 /Dec01
Effective rate 1.1700 1.1700 1.2000 0.3500 widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Alcentra Capital ABDC 13.1 .25 /.34 Q Jan04 /Dec29
High 1.3125 1.3125 1.3125 0.5625 Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in Chesapeake Granite Wash CHKR 12.1 .0657 /.1003 Q Nov30 /Nov20 Suspended
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the Evertec EVTC Q Dec08 /
Low 1.0500 1.0300 1.1600 0.2500 DTCC GCF Repo Index are traded on NYSE Liffe US. Funds and investment companies
Bid 1.1600 1.1600 1.1700 0.3000 Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; CS X-Links Gold GLDI 6.7 .0501 M Nov27 /Nov21 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
Offer 1.1700 1.1700 1.1900 0.3200 General Electric Capital Corp.; Tullett Prebon Information, Ltd. Harvest Capital Credit HCAP 11.1 .1125 M Nov30 /Nov24 S2:1: stock split and ratio; SO: spin-off.

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
ColumbiaSustGlb ESGW 30.62 0.3 PwrShS&PIntlDev IDHQ 24.23 1.2 ProShrUSRlEst SRS 28.75 -1.3 iShMSCIACWIETF ACWI 70.87 0.2 TowerSemi TSEM 34.20 5.2 GreatElmCap GECC 8.76 -3.1
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and CS FI LC Grwth FLGE 216.28 0.8 PwrShRussMCGrw PXMG 40.79 1.1 ProShrUSTech REW 16.40 -1.0 iShMSCIACWIexUSETF ACWX 49.67 0.3 UniversalDisplay OLED 170.00 0.7 Gulf Resources GURE 1.35 -6.0
Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. DirexJapanBl3 JPNL 77.61 1.6 PwrShRussTop200 EQWL 51.26 0.1 ProShrUSUtil SDP 23.26 0.3 iShMSCIACxJpn AAXJ 76.59 0.5 UroGenPharma URGN 38.56 2.8 HabitRestaurants HABT 8.85 0.6
% CHG-Daily percentage change from the previous trading session. DirexSemiBl3 SOXL 164.55 1.0 PwrShRussTop200G PXLG 44.86 0.7 UBSProSh3xInvCrd WTID 17.58 2.0 iShMSCIEAFEESGOpt ESGD 67.77 0.3 VangdRuss1000Grw VONG 134.83 0.3 HarvestCapCredit HCAP 11.70 -4.0
DirexTechBull3 TECL 113.04 1.6 PwrShS&P500Down PHDG 27.19 1.4 USAA USA SC Val USVM 49.17 0.4 iShMSCIEMESGOpt ESGE 72.51 0.7 VangdTotIntlBd BNDX 55.18 -0.1 HenrySchein HSIC 68.35 -1.4
DirexUtilBl3X UTSL 32.12 2.1 PwrShS&P500LoVol SPLV 47.08 0.3 US ShortOilFd DNO 59.21 0.8 iShMSCIEmMkAsia EEMA 74.89 0.5 VicShIntlVolWtd CIL 40.16 0.4 HostessBrands TWNK 11.00 0.6
Wednesday, November 8, 2017 EmgMktInternetEcom EMQQ 38.18 0.4 PwrShS&P500xRate XRLV 32.81 0.2 Velocity3xInvCrude DWT 16.04 2.2 iShMSCIUSAESGOpt ESGU 56.87 0.3 VidentIntlEquityFd VIDI 28.00 0.4 HostessBrandsWt TWNKW 1.23 6.2
ETFMG VideoGame GAMR 47.36 2.3 ProShS&P500xEner SPXE 54.21 0.5 iShPHLXSemicond SOXX 179.05 0.3 Virtusa VRTU 44.76 16.8 Immersion IMMR 6.20 0.5
52-Wk % 52-Wk % 52-Wk %
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
ETFS PlldmShr PALL
FidelityLowVol FDLO
97.17 1.9 ProShS&P500xFin SPXN
29.62 0.3 ProShrUltraJapan EZJ
52.77 0.4
130.50 2.0
NYSE American highs - 6 JackHenry JKHY
KellyServices A KELYA
114.25 1.2 Weibo
29.17 7.5 WisdTrJapanHdgSC DXJS
WB 109.07 9.8 Innodata
45.37 0.5 InovioPharma
INOD
INO
1.05 -12.5
5.22 0.4
FidelityMSCIIT FTEC 50.46 0.5 ProShrUltraQQQ QLD 72.25 0.8 ArconicPfd ARNCp 91.25 1.7 KingtoneWrls KONE 8.00 71.5 WisdTrUSQltyDiv DGRW 39.66 0.4 iShMSCIQatarCapped QAT 14.40 -1.1
Invacare IVC 16.95 21.1 DeanFoods DF 9.01 6.2 URE 67.75 1.3 CentralSecs CET 27.23 0.7 Kulicke&Soffa KLIC 24.56 4.2 Zynga
FidelityRealEst FREL 25.16 0.3 ProShrUltraRE ZNGA 4.09 4.4 JAKKS Pacific JAKK 2.40 -5.8
NYSE highs - 123 JapanSmlCap JOF
JonesLangLaSalle JLL
13.39
146.96
0.3
1.4
elfBeauty
EXCO Res
ELF
XCO
18.52
0.77
-6.9
-35.1
FidelityMSCIUtils FUTY 36.28 ... ProShrUlSemi USD 134.39 0.5 CloughGlblDiv GLV 14.39 0.6 LGI Homes LGIH 66.13 -3.4 JaguarHealth JAGX 0.11 13.9
AT&T Nts 2066 TBB
AberdeenGrChinaFd GCH
25.40
12.45
0.2
-0.1
KenonHoldings KEN 19.55 3.9 EastmanKodakWt KODK.WS 0.02 -47.9
FT TechAlphaDEX FXL
FlexShCurrHdDM TLDH
52.31 1.3 ProShrUlTech
29.70 1.0 ProShrUltraUtil
ROM
UPW
90.46 0.9 CloughGlbEqFd GLQ
52.25 0.1 NE Realty NEN
13.96 0.7 LamResearch
75.25 1.7 LigandPharm
LRCX
LGND
211.41 1.0
148.25 0.2
Nasdaq lows - 95 LexiconPharm
LibertyTax
LXRX
TAX
8.07 -9.2
10.80 -17.0
Kyocera KYO 71.72 0.9 EtnVncFR2022 EFL 9.64 -1.4 33.88 0.7 StoneEnergyWt SGY.WS 6.84 0.6 LimelightNetworks LLNW
AberdeenJapanEqu JEQ 9.35 0.8 FlexShMDevMktxUS TLTD 68.53 0.5 RealEstSectorSPDR XLRE 5.73 1.6 ANGI Homesvcs ANGI 11.26 -3.9 LibertyTripAdvA LTRPA 7.95 2.1
LINE LN 44.16 2.9 EldoradoGold EGO 1.19 -0.8 77.72 0.5
FrankFTSECanada FLCA 25.18 0.3 SPDRMSCIACWIIMI ACIM MGPIngredients MGPI 75.72 1.4 AcaciaComms ACIA 36.41 0.3 LombardMedical EVAR 0.22 -15.9
AberdeenSingapore SGF
Accenture ACN
12.56
145.00
0.2
1.0
Lennar B LEN.B
LibertyProperty LPT
50.05
44.88
2.6
0.7
EllingtonFin
Energizer
EFC
ENR
14.76
40.64
0.3
2.3
FrankFTSEJapan FLJP
FrankFTSEJapanHdg FLJH
26.43 1.0 SPDRMSCIJapanStrat QJPN
26.39 0.8 SPDRMSCIWorldStrat QWLD
79.16 1.7
74.46 0.5
NYSE American lows - 5 MMACapitalMgmt MMAC 25.91 0.4 AcadiaHealthcare ACHC
Marriott MAR 124.34 -0.8 AethlonMedical AEMD
28.82 -0.7 magicJackVocal CALL
0.79 -6.0 MartinMidstream MMLP
5.55 -1.7
14.97 -2.3
Albemarle ALB 144.99 1.0 LiveNationEnt LYV 45.72 ... EntercomCommsWi ETMw 10.45 -0.4 1.44 -2.6 MatchGroup
FrankFTSEMexico FLMX 25.27 0.4 SPDR NYSE Tech XNTK 84.85 0.7 CanFiteBiopharm CANF MTCH 32.87 10.0 Airgain AIRG 7.31 1.2 Middleby MIDD 111.50 -6.1
AlexandriaRealEst ARE 126.88 0.1 LomaNegra LOMA 22.33 4.8 EnvisionHlthcr EVHC 24.77 -3.6 MCF 3.24 -27.2 MaximIntProducts MXIM
FrankIntlOpps FLIO 29.67 0.5 SPDRS&P500Growth SPYG 32.45 0.3 ContangoO&G 55.43 1.1 AkersBiosciences AKER 0.68 -5.9 MinervaNeurosci NERV 5.05 -5.6
AllianzGIDivIncm ACV 22.57 -0.7 MarathonPetrol MPC 63.41 0.2 EthanAllen ETH 26.45 -0.2 DXR 4.05 -1.4 MeridianBank
FrankUSLowVol FLLV 29.48 0.4 SPDRSSgAGlbAll GAL 37.69 0.3 Daxor MRBK 18.48 -1.9 AkoustisTechs AKTS 5.00 2.8 NetSolTech NTWK 3.15 -3.1
Ameren AEE 63.15 -0.3 Marcus&Millichap MMI 30.98 5.4 Evertec EVTC 13.55 1.1 12.02 -5.8 NICE
FranklinGlbEquity FLQG 30.08 0.4 SchwabFundIntLrgCo FNDF 30.57 0.3 IMPAC Mortgage IMH NICE 85.61 1.1 AlcentraCapital ABDC 7.45 -7.7 NovelionTherap NVLN 4.53 -2.3
AEP AEP 75.84 0.4 McDonalds MCD 170.92 -0.4 FT SrFR2022 FIV 9.18 -1.4 PCGpB 26.76 -1.0 NVE
GlbXLithium&Batt LIT 40.79 1.7 SchwabFundIntlSmCo FNDC 35.78 0.4 PacGE pfB NVEC 88.95 -0.4 Andersons ANDE 30.65 -9.5 NumereX NMRX 3.43 2.0
AmerTowerPfdB AMTpB 135.99 1.3 Medifast MED 71.73 14.8 FlotekIndustries FTK 4.14 -16.1 34.32 0.4
GlbXSciBetaAsiaXJ SCIX 26.47 0.6 SchwabIntEquity SCHF Nathan's NATH 93.20 0.4 AndinaAcqnIIWt ANDAW 0.04 ... ObalonTherap OBLN 7.77 -3.5
AmerTowerREIT AMT
AmerWaterWorks AWK
155.28
90.49
1.4
0.3
NewRelic NEWR
PembinaPipeline PBA
54.79
36.30
5.2
1.2
FootLocker
GNC Holdings
FL
GNC
28.42
5.61
2.2
-5.1
GlbXSciBetaJapan SCIJ 32.66 0.6 SchwabUS Div SCHD 48.90 0.3
68.82 0.3
Nasdaq highs - 124 NektarTherap NKTR 31.74 12.9 Astrotech ASTC 2.35 -8.8 OcularTherapeutix OCUL 4.70 -8.2
ApolloGlMgmtPfdA APOpA 26.45 -0.2 GSActiveBetaIntlEq GSIE 29.56 0.4 SchwabUS LC Grw SCHG 184.44 1.8
NetApp NTAP 45.50 1.5 AxonEnterprise AAXN 20.57 -6.2 OxbridgeReWt OXBRW 0.15 3.8
Penumbra PEN 114.60 9.4 GabelliGlbSmRt GGZr 0.26 -8.6
GSActiveBetaJapan GSJY 33.64 0.8 SPDR MSCI exUS CWI 38.88 0.4 AdobeSystems ADBE Neurocrine NBIX 75.98 -0.6 BlackRidgeAcqnWt BRACW 0.29 -9.4 PCM PCMI 9.70 -1.5
AquaAmerica WTR 36.60 0.8 PlanetFitness PLNT 30.20 17.4 GameStop GME 16.98 0.5 GWX 36.07 0.5 Aegion AEGN 27.19 3.2
Aquantia AQ 12.75 -4.4 GSActiveBetaUSLC GSLC 51.54 0.3 SPDR IntlSC ALGN 253.65 2.5
NuvNasd100Dyn QQQX 23.94 ... CHF Solutions CHFS 4.61 -12.7 PacBiosciCA PACB 2.66 7.3
PortlandGenElec POR 48.67 -0.1 GenesisHealthcare GEN 0.87 -10.6
GuggChinaTech CQQQ 63.28 1.2 SPDR S&P Semi XSD 73.65 1.3 AlignTech OncoSecMedical ONCS 2.55 60.0 CMSevenStarAcqn CMSS 9.60 0.2 PapaJohn's PZZA 57.32 -0.3
AristaNetworks ANET 216.00 2.2 Praxair PX 150.05 0.7 GranitePointMtg GPMT 17.02 -0.7 9.09 1.8 AltairEngg ALTR 20.38 4.4
AtmosEnergy ATO 89.25 0.8 GuggDefEqty DEF 45.59 0.4 SprottPhysPlatinum SPPP AMZN 1135.54 0.9
Otelco OTEL 11.75 3.7 CapitolFedFin CFFN 13.15 -0.2 Patterson PDCO 33.96 -2.4
Primerica PRI 99.95 12.5 HarleyDavidson HOG 44.52 1.6
GuggS&P500EWTech RYT 144.06 0.6 TechSelectSector XLK 64.02 0.5 Amazon.com PAM Transport PTSI 33.79 14.3 Cardtronics CATM 16.11 5.2 PerionNetwork PERI 0.95 -5.0
BkNovaScotia BNS 65.86 0.4 PulteGroup PHM 30.99 1.5 HighlandFROpps HFRO 15.36 -1.6 215.57 1.0 Apple AAPL 176.24 0.8
Bio-RadLab A BIO 267.80 1.6 GuggS&P500PureGr RPG 104.26 0.3 UBS FIEnhLCGrw FBGX TEAM 53.21 2.2
PennNational PENN 27.13 1.0 CarrolsRestr TAST 9.90 -2.9 ProQR Therap PRQR 3.60 -2.0
QTS Realty QTS 60.54 1.2 Interpublic IPG 18.46 0.4
GuggInsider NFO 60.95 0.4 USBrentOilFd BNO 17.34 -0.4 Atlassian Perceptron PRCP 9.95 4.2 CECO Env CECE 5.66 -33.9 ProShUltraProShQQQ SQQQ 22.26 -1.3
BlkRkCB Tr BHK 14.26 0.1 Rayonier RYN 31.47 0.2 Intrexon XON 15.40 1.5 20.35 0.2 BldrsAsia50ADS ADRA 34.69 0.5
Boeing BA 267.62 -0.2 GuggS&P500EWRlEst EWRE 28.41 0.9 VanEckAMTFrLgMun MLN CCMP 98.95 1.7
PilgrimPride PPC 33.40 8.8 Ceragon CRNT 1.76 -4.3 Radisys RSYS 0.81 -32.0
RedHat RHT 124.45 1.6 LSC Comm LKSD 13.74 -2.3
GuggS&P500Top50 XLG 184.37 0.1 VanEckGaming BJK 44.15 1.3 CabotMicro PwrShFTSEIntlLow IDLB 29.64 0.5 CleanDiesel CDTI 1.42 -10.4 RedHillBio RDHL 5.17 -29.6
BroadridgeFinl BR 91.75 3.6 StoreCapital STOR 26.35 ... LendingClub LC 4.20 -15.9 28.36 3.2 ChinaInternet CIFS 48.50 1.6
CMS Energy CMS 49.17 0.4 GuggS&PGlblWtr CGW 35.43 0.3 VanEckRareEarth REMX CDXC 5.34 -3.6
PwrShGlbWater PIO 25.48 0.6 ClearOne CLRO 6.75 -3.9 ReShapeLifesci RSLS 1.51 -8.4
Salesforce.com CRM 105.25 2.2 Mack-Cali CLI 21.18 -6.4
HullTacticalUS HTUS 28.35 0.3 VanEckSemiconduc SMH 104.40 0.2 ChromaDex PwrShIntlBuyBack IPKW 36.00 0.5 ConsldComm CNSL 14.21 -0.5 RestorationRob HAIR 6.25 -2.0
CVR Refining CVRR 13.21 1.2 SempraEnergy SRE 121.38 0.4 MedEquitiesRlty MRT 10.06 -11.7 54.00 ... CitiusPharmWt CTXRW 1.05 42.2
CalAtlantic CAA 51.52 3.4 SolarisOilfield SOI 18.42 -3.3 MedleyMgmt MDLY 5.50 4.5 IQ HedMacrTrac MCRO 26.57 0.1 VanEckUranium NLR ClearBr AC Grw CACG 26.95 0.2
PwrShQQQ 1 QQQ 154.54 0.4 Criteo CRTO 35.38 1.0 RevolutionLight RVLT 4.38 -1.7
IQHedgeMktNeut QMN 25.63 ... VangdInfoTech VGT 166.24 0.6 ProfireEnergy PFIE 2.09 1.0 CytoriTherapWt CYTXW 0.02 -39.5 RosettaGenmcs ROSG 0.61 -7.6
Canon CAJ 39.15 1.5 Sony SNE 47.59 3.2 Netshoes NETS 9.02 -4.1 44.48 0.4 Cognex CGNX 137.76 -0.5
ChimeraInvPfdA CIMpA 26.37 1.8 iPathGEMSAsia8ETN AYT 43.74 4.3 VangdFTSEDevMk VEA COHR 309.30 12.0
ProShEquRising EQRR 43.83 ... CytRx CYTR 1.71 -3.1 SabraHealthcare SBRA 19.10 -1.0
Statoil STO 20.92 0.4 NewIrelandFundRt IRLr 0.24 3.7
iShCoreDivGrowth DGRO 33.47 0.2 VangdFTSE Pac VPL 72.83 0.8 Coherent ProShUltPrQQQ TQQQ 136.05 1.3 DelMarPharm DMPI 0.79 -0.7 SearsHoldings SHLD 4.65 -6.0
ChinaFund CHN 21.76 1.4 SuncorEnergy SU 36.32 0.1 NewYorkREIT NYRT 7.25 0.3 54.15 0.4 CommVehicle CVGI 10.43 -3.3
ColonyNorthPfdJ CLNSpJ 25.61 -0.1 iShMSCIIntlDev IDEV 57.68 0.3 VangdFTSEAWxUS VEU CSGP 302.12 0.4
ProvidenceService PRSC 58.01 6.4 DifferentialBrds DFBG 0.81 5.3 SelectaBiosci SELB 9.32 -9.0
TE Connectivity TEL 93.75 0.5 Nordstrom JWN 37.79 ... VangdGrowth VUG 138.22 0.4 CoStarGroup PumaBiotech PBYI 136.90 2.0 ElPolloLoco LOCO 9.55 1.6 SteinMart SMRT 0.89 -6.9
CLSelPrTechGrFd STK 24.35 1.0 iShCoreMSCIPacific IPAC 59.94 0.6 CY 16.96 1.3
TaiwanFund TWN 21.93 0.4 NuSTAREnergy NS 31.23 -1.7 VangdMegaGrwth MGK 109.35 0.3 CypressSemi Qorvo QRVO 80.94 3.0 Energous WATT 7.02 0.3 TESARO TSRO 94.36 -12.2
ConocoPhillips COP 54.22 0.1 iShCurrHdgNikk400 HJPX 30.79 1.7 DSGX 29.70 1.0
TaroPharm TARO 128.46 14.6 OFGBancorp OFG 7.85 -1.3 VangdMCGrowth VOT 125.12 0.3 Descartes Rapid7 RPD 19.71 9.4 ENGlobal ENG 0.80 6.2 TearLab TEAR 0.59 -45.7
ConEd ED 88.08 0.2 iShCurHdgMSCIUS HAWX 27.21 0.4 EXAS 63.60 ...
TeledyneTech TDY 185.66 0.7 Omnicom OMC 65.32 0.1 VangdS&P500 Grw VOOG 134.71 0.3 EXACT Sci RedRockResorts RRR 27.31 7.0 Essendant ESND 8.79 1.0 TherapixBiosci TRPX 5.00 -1.8
Corning GLW 32.33 -0.1 iShCurHdgMSCIEAFE HSCZ 30.95 0.2 EBIX 74.55 7.3
Teradyne TER 44.04 0.8 Owens&Minor OMI 18.59 -1.0 WBITacticalLCGD WBIE 25.11 0.7 Ebix SBA Comm SBAC 170.53 2.3 FAT Brands FAT 8.00 -1.5 Travelzoo TZOO 6.48 -1.9
CostamarePfdD CMREpD 26.89 0.5 iShCurrHdMSCIJapan HEWJ 33.69 0.5 EQIX 495.35 1.0
ToyotaMotor TM 128.11 0.4 PHH PHH 11.13 -2.9 WisdTrAPxJp AXJL 69.60 0.6 Equinix ShotSpotter SSTI 19.82 13.6 FTD FTD 9.39 -5.8 TripAdvisor TRIP 29.79 4.3
CrownCastlePfdA CCIpA 1151.02 1.4 TysonFoods TSN 74.04 1.2 PQ Group PQG 15.35 2.6 iShU.S.RealEstate IYR 82.59 0.7 EsquireFinancial ESQ 16.98 2.6
WisdTrGlbXMexico XMX 28.95 0.9 Splunk SPLK 71.31 4.6 Finisar FNSR 18.18 0.9 USAutoPartsNtwk PRTS 2.25 -3.4
CCI 114.97 2.0 iShU.S.Technology IYW 164.72 0.5 49.56 -0.1
CrownCastle Visa V 112.91 0.3 PandoraMedia P 4.83 -1.8 WisdTrIntDivxFin DOO 43.61 0.4 FT CapStrength FTCS SpringBkPharm SBPH 18.70 6.7 FT SMID CapRising SDVY 19.80 -0.5 UltragenyxPharm RARE 44.45 -0.4
CubeSmart CUBE 29.37 1.5 iShEdgeMSCIIntVal IVLU 26.20 0.6 SKYY 44.38 0.9
VersumMaterials VSM 42.74 1.0 PitneyBowes PBI 10.57 1.3 WisdTrJpnCapGds DXJC 29.29 0.5 FT CloudComp SprottFocus FUND 7.96 1.0 FogodeChao FOGO 10.30 -4.9 VandaPharm VNDA 12.60 -12.4
DCT 60.74 0.5 iShEdgeMSCIMinJapn JPMV 68.14 0.4 43.18 0.9
DCT Industrial VMware VMW 121.49 0.1 PitneyBowesNt43 PBIpB 24.73 0.2 WisdTrJpnHdgQuDiv JHDG 29.60 0.9 FT DevMktsXUS FDTS StarsGroup TSG 21.20 0.2 ForwardPharma FWP 4.60 -8.9 VeecoInstr VECO 15.85 1.2
DXC 99.00 4.6 iShEdgeMSCIMultif ACWF 30.21 0.5 34.89 0.4
DXC Tech Vonage VG 9.04 1.5 PrestigeBrands PBH 41.45 -2.3 WisdTrJapanHdg DXJ 59.55 0.6 FT NasdTechDiv TDIV TakeTwoSoftware TTWO 120.62 10.6 Fossil FOSL 5.50 -17.2 Versartis VSAR 1.60 -4.3
DHR 93.36 ... iShEdgeMSCIMultUSA LRGF 31.15 0.3 59.47 1.0
Danaher W.P.Carey WPC 71.73 0.1 QwestNts2054 CTV 23.76 -3.0 WisdTrJpnHlthCare DXJH 36.38 0.4 FT JapanAlpha FJP Talend TLND 45.23 2.0 GlobalEagle ENT 1.82 -2.1 ZealandPharma ZEAL 14.52 -1.3
DukeEnergy DUK 89.68 -0.1 Wal-Mart WMT 90.42 1.5 Qwest7%Nts2056 CTAA 23.79 -3.2 iShGlobal100 IOO 91.99 0.5 78.76 0.6 FT NasdCleanEdge QCLN 20.76 ...
WisdTrJapanSC DFJ
EPAM Systems EPAM 103.44 2.2 Watsco WSO 167.94 -1.2 QwestNts2055 CTZ 22.76 -4.3 iShJPX-Nikkei400 JPXN 65.33 0.7 WisdTrUSExport 31.10 1.0 FT Nasd100Tech QTEC 73.92 0.6
WEXP
Ecopetrol
EquityResdntl
EC
EQR
12.30
70.40
-3.2
1.2
WestlakeChem WLK
Weyerhaeuser WY
94.08
36.48
2.5
1.2
QwestNts2052 CTX
QwestNts2057 CTDD
23.85
23.08
-2.4
-4.6
iShACWILowCarbon CRBN
iShMSCIBRICETF BKF
115.58 0.3 XtrkrsFTSEDevXus DEEF
44.97 0.9 XtrkrsJpnJPXNik400 JPN
29.54 0.4 FT NasdSmartphone FONE
29.53 0.8 FT NasdSemicon FTXL
52.92 1.4
31.98 0.6 IPO Scorecard
EversourceEner ES 65.01 0.2 WK 23.70 1.1 RRD 7.49 2.1 iShMSCICanadaETF EWC 29.39 0.3 XtrkrsMSCIAllChina CN 37.75 0.1 FT RiverFrDynAP RFAP 61.78 1.0
FactSet FDS 195.77 2.1
Workiva
WW Ent WWE 27.41 0.6
RR Donnelley
RiteAid RAD 1.51 -0.7 iShMSCIJapanETF EWJ 60.15 0.6 XtrkrsMSCIAWxUS DBAW 28.30 0.3 FiveBelow FIVE 58.34 1.3 Performance of IPOs, most-recent listed first
FairIsaac FICO 154.84 1.4 YumBrands YUM 81.65 0.1 RubiconProject RUBI 1.81 4.2 iShMSCIJapanSC SCJ 78.12 0.7 XtrkrsMSCIEAFE DBEF 32.33 0.3 FullHouse FLL 3.14 1.0 % Chg From % Chg From
FangHoldings SFUN 5.03 1.8 iShMSCIPacificxJp EPP 47.69 1.0 XtrkrsMSCIEM DBEM 24.41 0.3 GDSHoldings GDS 18.37 0.7
31.91 0.1
ZTO Express ZTO 17.51 1.6 SallyBeauty SBH 14.22 -6.7
iShMSCISingapore EWS 25.82 0.7 XtrkrsMSCIJapan DBJP
Company SYMBOL Wed3s Offer 1st-day Company SYMBOL Wed3s Offer 1st-day
FirstIndRlty FR Zendesk ZEN 35.89 4.1 Sprint S 5.62 4.2 44.34 0.5 GRAVITY GRVY 77.00 12.2
FlahertyPfdIncm PFD 16.34 0.8 StandardMotor SMP 40.81 -0.9 iShMSCIWorldETF URTH 86.48 0.3 GSV Capital GSVC 6.15 3.7 IPO date/Offer price close ($) price close IPO date/Offer price close ($) price close
Fortis FTS
FourCornersProp FCPT
38.06
26.25
0.1
1.1
NYSE lows - 85 Telephone&Data TDS
TimeInc. TIME
24.57
9.90
-6.7
-6.1
iShMorningstarLC JKD
iShMornLCGrowth JKE
155.88 0.2
153.31 0.3 NYSE Arca lows - 24 GladstoneCommPfA GOODP
GladstoneInvt GAIN
27.01 0.8
11.11 2.5
CBTX 28.71 10.4 ... ACM Research 5.60 ... –7.4
GlbNetLeasePfdA GNLpA 25.29 0.1 AZZ AZZ 44.70 -0.9 TownsquareMedia TSQ 7.93 -11.3 iShRussell1000Gwth IWF 131.48 0.4 AIPoweredEquity AIEQ 24.32 0.4 GlbX Robotics&AI BOTZ 24.36 0.8 CBTX Nov. 8/$26.00 ACMR Nov. 3/$5.60
GreenDot GDOT 64.88 15.7 AdvanceAuto AAP 78.81 ... US Cellular USM 32.59 -6.2 iShRussellTop200Gr IWY 71.65 0.3 AGFiQ US Neutral SIZ 19.57 -0.7 HailiangEduc HLG 36.58 14.9
GuggStratOpps GOF 21.59 0.3 AegeanMarine ANW 3.26 -7.2 Universal UVV 52.35 -7.6 iShS&P500Growth IVW 150.16 0.3 DBCrudeOilDblShrt DTO 95.23 1.1 HalozymeTherap HALO 19.23 13.4 Four Seasons Edu 9.50 –5.0 ... Aquantia 11.43 27.0 20.2
HFF HF 44.90 1.4 AlaskaAir ALK 61.36 -0.2 UniversalHealthB UHS 99.56 -0.3 iShGlobalTechETF IXN 156.23 0.5 DirexEMBdBull3X EMBU 25.23 -0.4 HamiltonLane HLNE 31.21 7.2 FEDU Nov. 8/$10.00 AQ Nov. 3/$9.00
Haemonetic HAE 55.03 5.3 AmericanRenal ARA 10.32 -5.6 Veritiv VRTV 20.35 -9.7 iShNorthAmerTech IGM 169.41 0.5 DirexSemiBear3 SOXS 14.54 -1.1 HorizNasd100 QYLD 24.50 0.1
HanoverIns THG 107.13 -0.3 AmplifySnack BETR 4.78 -15.1 VistaOutdoor VSTO 17.86 -1.1 HancockLC JHML 33.82 0.1 DirexTechBear3 TECS 7.00 -1.3 IAC/InterActive IAC 137.86 1.7 InflaRx 14.99 –0.1 ... Spero Thera 12.61 –9.9 9.7
HercHoldings HRI 57.64 15.2 AnixterIntl AXE 64.35 -2.3 VitaminShoppe VSI 2.95 -19.8 HancockUtils JHMU 29.19 1.4 FrankFTSEEurope FLEE 24.88 -0.4 IPG Photonics IPGP 224.47 0.2 IFRX Nov. 8/$15.00 SPRO Nov. 2/$14.00
HollyFrontier HFC 42.49 ... Barnes&NobleEduc BNED 4.99 0.4 VoyaPrimeRate PPR 5.06 -0.4 JPM DivRetGlEq JPGE 61.89 0.4 FrankFTSE UK FLGB 24.91 -0.3 Immucell ICCC 8.83 -3.5
HondaMotor HMC 33.75 0.3 BlkRk2022GlbIncm BGIO 9.85 -0.6 WesternGasEquity WGP 37.41 -1.5 JPM DivRetIntl JPIH 30.54 0.4 GSAccessHYCorpBd GHYB 49.83 -0.2 InfinityPropCas IPCC 104.29 -0.1 Metropolitan Bank 37.21 6.3 ... Allena Pharmaceuticals 11.58 –17.3 16.0
Honeywell HON 147.51 -0.1 Build-A-Bear BBW 7.25 -1.3 WideOpenWest WOW 12.12 -0.7 JPM DivRetIntlEq JPIN 59.93 0.3 GuggBS2025HYCpBd BSJP 24.79 -0.3 Inogen INGN 124.90 15.5
DR Horton DHI 45.78 1.0 CBL Assoc CBL 5.46 -2.3 KnowldgLdrDevWrld KLDW 32.95 0.4 ProShShortQQQ PSQ 35.90 -0.4 IntegratedDevice IDTI 33.64 1.0
MCB Nov. 8/$35.00 ALNA Nov. 2/$14.00
WorldFuelSvcs INT 26.80 -2.3
HuntingtonIngalls HII 253.44 8.0 CBL AssocPfdE CBLpE 22.15 -2.8 XeriumTech XRM 3.95 -2.7 OShFTSEAsiaPacQlty OASI 32.18 1.4 ProShShtRE REK 15.72 -0.6 IntuitiveSurgical ISRG 393.51 0.3
HyattHotels H 70.59 0.4 CNX Coal CNXC 13.25 -2.5 PwrShUsRealEst PSR 83.17 0.8 ProShUltTelecom LTL 38.40 -1.8 iSectorsPostMPT PMPT 27.23 ... Meridian Bank 17.90 5.3 –1.9 Funko 8.10 –32.5 14.6
IDACORP
Ingredion
IDA
INGR
95.25
132.20
0.5
1.2
Cabco JCP PFH PFH
Corts JC KTP KTP
11.00
11.06
-0.4
-1.0
NYSE Arca highs - 149 PwrShDBEnergy DBE
PwrShDynLC Grwth PWB
14.47 -0.3 ProShUlt3xShCrude OILD
40.59 0.1 ProShUltBloomCrd SCO
12.30 2.1 iShAsia50ETF AIA
26.70 1.5 iShCommodSelStrat COMT
66.18 0.6
37.11 ...
MRBK Nov. 7/$17.00 FNKO Nov. 2/$12.00
Insperity NSP 106.95 3.4 CustomersBancorp CUBI 25.39 -2.4 ALPS EqSecWgh EQL 67.89 0.2 PwrShFTSERAFIDevMk PDN 33.90 0.3 ProShrUS MSCI Jpn EWV 26.78 -1.5 iShCoreMSCITotInt IXUS 62.63 0.4
InterXion INXN 56.58 0.7 DaVita DVA 52.51 -7.8 AGFiQ US NeutrMom MOM 24.93 1.2 PwrShS&PEM Mom EEMO 21.43 0.4 ProShUltShtQQQ QID 13.67 -0.9 iShCoreS&PUSGrowth IUSG 52.81 0.3 Sources: WSJ Market Data Group; FactSet Research Systems
 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.
Merrill Lynch Revamps Pay for Brokers
New compensation
structure rewards
those who refer more
clients to parent bank
BY LISA BEILFUSS
Merrill Lynch is adjusting
the way it rewards its brokers
as it looks to juice more from
its current ranks while ensur-
ing wealth-management cli-
ents are referred to the parent
bank.
Bank of America Corp.’s
wealth-management arm in a
memo to advisers that was
previewed earlier Wednesday
HASSAN SARBAKHSHIAN/BLOOMBERG NEWS
Republicans last week proposed ending the tax exemption on private-activity bonds. Workers on Interstate 66 in Virginia in 2015.
Some Munis’ Tax-Free Status at Risk
BY HEATHER GILLERS
A team of private and pub-
lic officials prepared a routine
offer for investors last week:
Buy tax-exempt bonds to pay
for the widening of an inter-
state outside Washington.
But demand for the debt
swelled after Republicans un-
veiled a proposal to end the
tax-free benefits of these so-
called private-activity bonds,
says an investor who partici-
pated in the offering. Prices on
the Interstate 66 bonds have
jumped 3% since the $353 mil-
lion offering closed last Friday
morning, according to Munici-
pal Securities Rulemaking
Board data.
It didn’t take long for the
House Republican tax plan to
roil a roughly $750 billion cor-
ner of the muni-debt market.
“Over the last three trading
days, the types of bonds that
are scheduled for potential
elimination are being gobbled
up,” said John Miller, co-head
of Global Fixed Income at Nu-
veen Asset Management. “Peo-
ple are paying higher prices
with some nervousness that
these bonds will be very
scarce going forward.”
For decades, nonprofits and
certain for-profit firms have
been able to raise money the
same way that state and local
governments do: by issuing
tax-exempt bonds for projects
perceived to have a public ben-
efit. The proceeds from these
private-activity bonds—which
have averaged about $110 bil-
UBS Shifts Investment-Bank Leaders
BY DANA CIMILLUCA
UBS AG is shuffling the top
ranks of its investment bank
as the Swiss firm seeks to be-
come more nimble and im-
prove its performance in the
critical U.S. market.
As part of the restructur-
ing, UBS named Joe Reece,
Javier Oficialdegui and David
Chin to manage its corporate-
client services business in the
Americas, Europe and Asia,
respectively, according to an
internal memo seen by The
Wall Street Journal.
It also named Mike Santini,
who joined UBS a year ago
from Deutsche Bank AG, and
firm veteran Piero Novelli as
co-executive chairmen of the
global unit, which comprises
deal advisory and stock and
bond underwriting.
Ros Stephenson and Wil-
liam Vereker, currently co-
heads of the business, known
unveiled the changes to its
2018 compensation plan, intro-
ducing a bonus system that al-
lows a broker to earn up to an
additional 2% in pay if certain
growth targets are achieved.
Those thresholds include 5%
growth from a year earlier in
the amount of net new assets
and liabilities like securities-
backed loans brought in, and
at least five new affluent
households or two ultrahigh-
net-worth household clients,
people familiar with the mat-
ter said.
But to have access to the
new award program—in addi-
tion to other perks—brokers
must refer at least two cus-
Borrowing Boom
Private-activity bond issuance
$150 billion
125
100
75
50
25
0 others likely wouldn’t be
1990 ’95
Note: Data not available for 2005
Source: Internal Revenue Service
lion a year over the past de-
cade—help pay for everything
from hospitals, nursing homes
and college dorms to charter
schools, housing and highways.
Elected officials have been
contemplating ending this tax
exemption on private-activity
bonds for several years. The
current proposal states that
$40 billion in additional tax
revenue would be made avail-
able over the next decade if
the exemption were removed.
It is possible private-activity
bonds could remain tax free if
changes are made to the Re-
publican House plan as it
makes its way through Con-
gress. But now that an actual
proposal is on the table, those
who follow the municipal-bond
market are predicting that
market will shrink if the ex-
as CCS, will each become ex-
ecutive vice chairs of the in-
vestment bank, according to
the memo.
The moves are designed to
give the firm flexibility to tai-
lor its approach to each re-
gion while maintaining global
cohesion. “Each of our re-
gional CCS businesses, their
clients and cultures, are at
different stages of develop-
ment, presenting very differ-
ent priorities, opportunities
and challenges,” Andrea Orcel,
head of UBS’s investment
bank, wrote in the memo to
staff.
After suffering devastating
losses during the financial cri-
sis, UBS has returned to
health by sharpening its focus
on managing money for well-
heeled clients around the
world and streamlining its in-
vestment-banking unit.
UBS last month said its
third-quarter net profit rose
BANKING & FINANCE
tomers to other parts of Bank
of America, including its on-
line brokerage platform Merrill
Edge and its retail bank. That
means brokers who hit growth
targets without making two
client referrals would forfeit a
2% pay increase.
The referral quota itself is
unchanged from 2017. What
changes is that instead of levy-
ing a 1% pay penalty on bro-
kers who didn’t meet the re-
ferral quota this year, the bank
incentivizes the referrals.
“The focus on referrals is
strengthening over time,” said
a person familiar with the
matter.
Still, regardless of referrals,
2000 ’05 ’10 ’15
THE WALL STREET JOURNAL.
emption is gone and it will be
more difficult to attract private
investment to infrastructure.
Analysts also expect a surge
of tax-exempt borrowing by
private companies and non-
profits rushing to use the ex-
emption before it is gone.
“The whole thing is quite
shocking,” said George Fried-
lander, managing partner at
Court Street Group Research
and a municipal-market vet-
eran who has tracked tax pol-
icy since the 1980s.
There was a time when pri-
vate-activity bonds could be
used to fund any project as
long as a local-government of-
ficial approved. Congress first
established rules for private-
activity bonds in 1968, offer-
ing a specific list of approved
projects, including airports
JUSTIN TALLIS/AGENCE FRANCE PRESSE/GETTY IMAGES
The Swiss bank has sharpened its focus on managing money.
14% from a year earlier on the
back of gains in wealth man-
agement and investment
banking. CCS revenue has
risen four quarters in a row.
But UBS is still a laggard in
some areas within investment
banking, particularly in the
U.S., where for years it has
struggled to break into the
Merrill brokers who fail to
meet minimum growth tar-
gets—at least 2.5% growth in
net new assets and liabilities
and three affluent household
clients or one ultrahigh-net-
worth household—will see
their pay fall by up to 2%. Mer-
rill defines affluent households
as those with at least
$250,000 in investible assets
at Merrill Lynch; ultrahigh-
net-worth households have $10
million or more in investible
assets with the firm.
Some of the compensation
changes are designed to ad-
dress conflicts of interest that
can crop up when a broker has
an incentive to make certain
and low-income housing. In
the 1980s, Congress added
new types of private-activity
bonds and capped how much
nonprofits could issue, but the
cap was lifted in the 1990s.
The use of private-activity
bonds has attracted criticism
from some who argue that
certain borrowers shouldn’t be
able to benefit from the ex-
emption. A Congressional Bud-
get Office report in December
found that some projects fi-
nanced with private-activity
bonds “probably would take
place without a subsidy” and
worth the cost.
“We should question
whether large hospitals and
universities that take in hun-
dreds of millions of dollars in
revenues should able to bor-
row at tax-exempt rates,” said
Greg LeRoy, executive director
of Good Jobs First, a research
group on economic-develop-
ment incentives.
Others say smaller nonprof-
its such as museums or char-
ter schools might have trouble
accessing the corporate-bond
market and have to rely on
bank loans. “Or just let the
roof leak,” said Natalie Cohen,
a senior analyst with Wells
Fargo Securities.
A letter to the House Ways
and Means Committee on Mon-
day, signed by trade associa-
tions of hospitals, universities,
engineers, airports, bond law-
yers and public officials, said
ending the tax exemption would
“undermine vital projects.”
top tier.
UBS isn’t currently in the
top 10 in the M&A league ta-
ble in the U.S., the biggest fee
pool, according to Dealogic.
Officials hope that the
moves, coupled with a new
push to selectively hire top
talent, will inject new energy
into the business.
Thursday, November 9, 2017 | B11
recommendations. In prior
years, Merrill Lynch had an
award program that was
hitched to the sales of particu-
lar products. The 2018 formula
doesn’t incentivize one type of
product, from credit cards to
securities-backed loans, over
another, said people familiar
with the matter.
“The market is moving to a
fiduciary standard,” one per-
son familiar with the matter
said, “so ensuring potential
conflicts are minimized is part
and parcel.”
The compensation changes
at Merrill also come at a time
when brokerage ranks are
shrinking and recruiting is
Tax-Plan Change
Unlikely to Burden
Buyout Companies
BY MIRIAM GOTTFRIED
An amendment late Monday
to the tax bill winding its way
through the House of Repre-
sentatives appears to fulfill
President Donald Trump’s
promise to close the carried-
interest loophole private-eq-
uity firms enjoy while also
preserving many of the bene-
fits they derive from it.
Since his days on the cam-
paign trail, Mr. Trump has
made repeated pledges to tax
investment gains known as
carried interest as ordinary in-
come, which would do away
with a rule allowing invest-
ment managers to pay a lower
rate on a substantial portion
of their compensation. Pri-
vate-equity firms have pushed
back, arguing that paying the
lower long-term capital-gains
rate affords them an incentive
to take investment risks that
benefit the economy.
Monday’s changes to the
bill by House Ways and Means
Committee Chairman Kevin
Brady (R., Texas) would ex-
tend the period over which
firms must hold an asset be-
fore it is eligible for the long-
term capital-gains rate to
three years from one. While
that may hurt some hedge
funds, private-equity firms,
which tend to hold assets for
longer, would be largely unaf-
fected.
The top rate on long-term
capital gains held more than a
year is 20%, an amount that
wouldn’t change under the
House bill. A 3.8% tax on net
investment income also typi-
cally applies.
“I don’t see this stopping
private equity,” said Andrew
Kreisberg, a tax attorney with
White & Case LLP. Republican
lawmakers are “clearly stick-
ing to their line of wanting to
incentivize long-term invest-
ment.”
FINANCE WATCH
GOLDMAN SACHS
Firm Chooses New
Managing Directors
Goldman Sachs Group Inc.
named 509 managing directors,
the last steppingstone to a spot
in its elite partnership.
It is a bigger class than the
425 promoted two years ago,
according to an announcement
by the firm on Wednesday.
Women make up 24%, about
even with the 2015 class, as
Goldman works on evening out
a gender imbalance within the
firm’s upper ranks.
Only about 15% of Goldman’s
roughly 450 partners are
women.
Newly minted managing di-
rectors gain access to leadership
training and Goldman invest-
ment funds that have been huge
moneymakers for the firm and
its top employees. They also can
take advantage of Goldman’s pri-
vate-wealth advisory network.
This year’s crop of managing
directors includes citizens of
nearly 50 countries. One in five
started as a Goldman summer
intern, and they have spent on
average 10 years at the firm.
Forty-four percent are millenni-
als.
The largest chunk, 130, are in
Goldman’s trading arm, where
revenue has fallen. Fifty-two
work in technology as coders
and engineers. Eight come from
the firm’s nascent consumer and
stagnant across the industry.
Competition from robo advis-
ers, discount brokerages and
registered investment advisers
is also heating up as firms
across the wealth-management
industry vie for new clients.
“The market opportunity is
huge,” head of Merrill Lynch
Wealth Management Andy
Sieg said in a memorandum
announcing the 2018 pay
changes to the firm’s force of
about 15,000 brokers.
A person familiar with the
matter said the firm expects
growth-award costs to be
“greatly offset” by the growth
they are designed to encour-
age.
The American Investment
Council, the private-equity in-
dustry’s main trade group in
Washington, is still publicly
opposed to any changes to the
treatment of carried interest,
arguing such a move “discour-
ages investment and jeopar-
dizes economic growth.”
Privately, however, many
industry participants are
breathing a sigh of relief, as
they doubt that the proposed
extension of the holding re-
quirement, from one year to
Proposal tightens
loophole on carried
interest but leaves
some wiggle room.
three, would have much of an
effect on firms’ willingness to
do deals.
Those deals have proved
enormously lucrative, with
private-equity firms consis-
tently notching double-digit-
percentage annual investment
gains.
Venture-capital firms,
which also tend to have a lon-
ger investment period, are
also unlikely to be affected,
law firm Akin Gump Strauss
Hauer & Feld LLP said in a
note to clients Tuesday.
The bigger concern for the
private-equity industry re-
mains the tax bill’s proposal to
limit businesses’ ability to de-
duct interest, with a cap of
30% of earnings before inter-
est, taxes, depreciation and
amortization.
But other aspects of the
House effort would benefit
buyout shops, particularly a
move to lower corporate tax
rates.
—Richard Rubin
contributed to this article.
commercial banking operations.
Goldman names managing direc-
tors and partners in alternate
years.
—Liz Hoffman
COMERICA
Chief Accountant
To Take CFO Reins
Comerica Inc.’s chief financial
officer is retiring and the bank
will promote a high-ranking ac-
counting officer to the position,
the Dallas-based company said.
Muneera Carr, an executive
vice president and Comerica’s
chief accounting officer, will take
over as chief financial officer on
Jan. 23. Ms. Carr, 49 years old,
will succeed David Duprey. Mr.
Duprey became CFO in May
2016 after nine years as an ex-
ecutive vice president and gen-
eral auditor.
Mr. Duprey, 60, said he has
always planned to retire by age
60. When he took the position,
he committed to Chief Executive
Ralph Babb that he would re-
main with the company until its
overhaul plan was well under
way, he said. The program
launched last year.
Ms. Carr has helped imple-
ment various aspects of the
cost-cutting program in her cur-
rent role, the company said. She
will be paid a base salary of
$500,000, according to a com-
pany filing.
—Cara Lombardo
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
B12 | Thursday, November 9, 2017
Edging Higher
The yield on the 10-year
U.S. Treasury note crept up
Wednesday after several
sessions of declines.
2.33%
2.32
2.31
2.30
9 10 11 noon 1
Source: Thomson Reuters
THE WALL STREET JOURNAL.
Treasury
Auction
Helps Push
Up Yields
BY SAM GOLDFARB
U.S. government bond
prices edged lower Wednesday
as an auction of
CREDIT 10-year notes
MARKETS showed there
are limits to in-
vestors’ recent
appetite for Treasurys.
The yield on the benchmark
10-year Treasury note settled
at 2.325%, compared with
2.309% Tuesday.
Yields, which rise when
bond prices fall, were stable
for much of the morning but
ticked higher about an hour
before the 1 p.m. auction, sug-
gesting traders needed higher
yields to get involved.
Volatility in the bond
market could be
limited by a dearth
of economic data.
After the earlier selling, the
$23 billion auction drew
strong demand, but the 10-
year yield held on to its gains.
That ended a four-day
streak of yield declines
spurred by several factors,
including signs that as the
Federal Reserve starts to
scale back bond purchases,
the Treasury Department
won’t sell as much long-term
debt as some investors had
expected.
Investors have also grown
more skeptical about the
chances of Congress passing
tax cuts. That has helped boost
Treasurys, as tax cuts could
prompt more bond issuance
and inflation—both negatives
for long-term Treasury debt.
Investors are “waiting on
the tax proposals to see what
the details” are, said Larry
Milstein, head of government
and agency trading at R.W.
Pressprich & Co.
Wednesday’s sale of 10-year
notes followed a $24 billion
sale of three-year notes Tues-
day. A $15 billion auction of
30-year bonds is on tap Thurs-
day. Yields frequently creep
higher heading into auctions
but were late to do so this
week.
Volatility in the bond mar-
ket could be limited this week
by a dearth of economic data.
Jobs numbers released Nov.
3 continued to show muted in-
flation pressures, as average
hourly earnings for workers
slipped from the previous
month.
The consumer-price index
and retail-sales data are sched-
uled to be released Nov. 15,
marking the next major events
on the economic calendar.
Despite persistently soft in-
flation, Federal Reserve offi-
cials have strongly signaled
that they plan to raise interest
rates in December in what
would be the third increase of
the year. That has softened de-
mand for short-term securi-
ties, which are especially sen-
sitive to changes in interest
rates.
AUCTION RESULTS
Here are the results of Wednesday's Treasury
auction. All bids are awarded at a single price at the
market-clearing yield. Rates are determined by the
difference between that price and the face value.
10-YEAR NOTES
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Interest rate
Bids at clearing yield accepted
Cusip number
The notes, dated Nov. 15, 2017, mature on Nov. 15,
2027.
Venezuela Debt Battle Heats Up
Bond default insurance
holders ask to be paid,
saying PdVSA didn’t
pay $1.1 billion in time
BY JULIE WERNAU
Holders of Venezuelan-bond
default insurance are trying to
collect, contending that the
state-owned oil company
failed to make a recent pay-
ment.
2 3 Investors with this insur-
ance, known as a credit-de-
fault swap, are making a case
that there has been a “failure
to pay credit event,” accord-
ing to a Wednesday filing to
the International Swaps and
Derivatives Association.
ISDA, an organization of par-
ticipants in the derivatives
market, determines if these
insurance payments should
be made.
Firms that sold the CDS con-
tracts could be on the hook for
about $250 million if ISDA rules
that oil company Petróleos de
Venezuela SA missed the Nov.
2 payment and the grace period
that ended Tuesday.
That would mark the first
time during the country’s cur-
rent economic crisis that in-
vestors holding this insurance
would get paid because Vene-
zuela missed a debt payment.
While bondholders have
been bracing for a Venezuelan
default for months, there are
signs that the cash-strapped
government is running out of
options. The country has
about $142 billion in debt out-
standing, according to
Moody’s Investors Service.
The government has only
about $10 billion in reserves,
analysts say.
Recent U.S. sanctions
against Venezuela have made
it harder for the government
Apple is now the first U.S. company to reach a market value of $900 billion after its stock rose 0.8% Wednesday. Customers line up ahead of the iPhone X launch.
Earnings Continue to Drive Stocks to Records
BY AMRITH RAMKUMAR
AND RIVA GOLD
Major U.S. stock indexes
posted another trifecta of re-
cords.
Many investors say solid
profit growth and a U.S. econ-
omy that is
WEDNESDAY’S picking up
MARKETS s t e a m
s h o u l d
continue
supporting major indexes.
“The fundamental backdrop
is pretty good,” said Mark
Heppenstall, chief investment
officer at Penn Mutual Asset
Management. “Investors are
Proxy-Process Review Urged
BY DAVE MICHAELS
NEW YORK—The country’s
top securities regulator urged
a review of how shareholders
weigh in on public companies’
executive pay proposals,
board nominees and conten-
tious issues raised by activist
investors.
Securities and Exchange
$59,734,467,000 Commission Chairman Jay
$25,796,784,000
$31,145,600
Clayton told a New York legal
$0 conference Wednesday that re-
99.431569
(2.314%)
tail-investor participation in
2.250% such elections is so low that it
94.01%
9128283F5
“may be a signal that our proxy
process is too cumbersome and
needs updating.” Mr. Clayton,
MARKETS
to tap outside sources of capi-
tal, or even engage in restruc-
turing talks with U.S. investors
who might be violating those
sanctions by negotiating with
the government.
Venezuelan President Nico-
lás Maduro pledged last week
to make the principal payment
of $1.1 billion to PdVSA bond-
holders that was due Nov. 2.
But some investors and an-
alysts said there is no evi-
dence that the oil company
has made that payment, and
Mr. Maduro has said he is
seeking to restructure the
country’s remaining debt.
PdVSA and Venezuela’s gov-
ernment didn’t respond to re-
quests for comment.
In another sign that inves-
tors are worried that Venezu-
ela is edging closer to de-
fault, the cost to insure
against a debt default in Ven-
ezuela rose to an all-time
high Wednesday.
The credit-default-swap
market was indicating a 91.3%
probability of default in Vene-
zuela by the end of 2018, com-
pared with a 75% probability
last week, according to invest-
ment bank Bulltick Capital.
“Spikes of this type happen
when the market expects a de-
fault,” said Juan I. Sosa, co-
chairman of Portfolio Re-
sources Group Inc. in Miami.
“People using this insurance
are now so certain that it’s go-
ing to happen that they are
willing to pay twice as much
as they were a week ago.”
On Tuesday, more than 200
investors, including large hold-
ers of Venezuelan debt, took
part in a phone call arranged
by Bank of America Merrill
Lynch with attorneys to dis-
cuss their options, according
to a person on the call.
One bondholder said the
presence of U.S. sanctions is
an obstacle to restructuring
looking beyond any of the po-
tential bumps in the road at
this point.”
The S&P 500 rose 3.74
points, or 0.1%, to 2594.38 af-
ter snapping a five-session
winning streak Tuesday. The
Dow Jones Industrial Average
advanced 6.13 points, or less
than 0.1%, to 23563.36 in a
seventh straight session of
gains, and the Nasdaq Com-
posite climbed 21.34 points, or
0.3%, to 6789.12.
Roughly 87% of S&P 500
companies have reported
third-quarter results as of
Wednesday’s market close,
with about three-quarters of
who took over the commission
in May, said he would seek pub-
lic input on how to overhaul
the proxy-voting system.
Mr. Clayton, a political in-
dependent, called out one par-
ticular weapon in the proxy
tool kit: shareholder propos-
als. Under SEC rules, share-
holders who own at least
$2,000 worth of company
stock can submit corporate-
governance proposals for a
vote. Stock-exchange operator
Nasdaq Inc. and many public
companies say that low
threshold allows dissident
shareholders and critics to im-
pose proposals on the entire
The cost to insure against a Venezuelan default hit a record. Long lines form at a Caracas bus stop.
talks. Even if there were a
payout in the CDS market, he
said he thought bondholders
who could push for a wide-
spread default were unlikely to
do so if the funds that were
due last week arrive in bank
accounts Wednesday.
If it is determined that Pd-
VSA failed to make its recent
bond payment, holders of at
least a quarter of those bonds
can declare a default and ac-
celerate the bonds, which
would trigger cross-default
provisions in $28 billion of
PdVSA bonds, said Stuart Cul-
verhouse, head of macro and
fixed-income research at the
specialist frontier and emerg-
ing markets investment bank,
Exotix Capital.
“It is up to holders to de-
cide what to do. It is possible
they don’t choose to acceler-
ate,” Mr. Culverhouse said.
them beating earnings expec-
tations, according to FactSet.
Per share earnings at the
firms have grown by about
6.4% in the third quarter from
a year earlier.
“That’s a deceleration from
what we’ve had, but for 2018,
I don’t think people are back-
ing off what we project,” said
Jeremy Bryan, a portfolio
manager at Gradient Invest-
ments.
Apple hit another mile-
stone, becoming the first U.S.
company ever to reach a mar-
ket value of $900 billion after
the company reported its best
quarterly growth in two years
investor base.
“Shareholder proposals can
gain traction and lead to corpo-
rate governance changes that
better track the long-term inter-
ests of Main Street investors,”
Mr. Clayton said at the annual
Institute on Securities Regula-
tion event. “They also create
costs, including out-of-pocket
costs and the use of board and
management time that other-
wise could be devoted to opera-
tion of the company itself.”
Votes on shareholder pro-
posals are only advisory, yet
companies have long resented
small shareholders’ ability to
draw attention to pet issues.
* ***
Off the Charts
Surging premiums on credit default swaps on Venezuelan bonds show
investors expect a default soon.
The cost to insure against a default in the next year as percentage
of notional value:
150%
125
100
75
50
25
0
J F M A
Source: Bloomberg data via Bulltick Capital Markets
last week.
Shares rose $1.43, or 0.8%,
to a record high of $176.24
Wednesday.
Shares of Snap fell 2.21, or
15%, to 12.91 after its latest re-
sults fell short of expectations
late Tuesday. Its loss more
than tripled, as quarter-over-
quarter growth in daily active
users of social-media app
Snapchat was the slowest
since the company started re-
porting the metric. Snap dis-
closed Wednesday that Chi-
nese tech giant Tencent
Holdings bought a 12% stake.
Bank shares continued to
lag behind, hit by a shrinking
Bitcoin Dodges Split That
Threatened Surging Price
BY PAUL VIGNA
Backers of bitcoin appear to
have avoided a brewing civil
war that could have led to a
major split of the digital cur-
rency and endangered its
heady gains so far this year.
The detente pushed bitcoin
prices to a record Wednesday
of $7,879. Although the price
fell back somewhat in trading
later in the day, bitcoin is up
656% since the start of this
year.
On Wednesday, a group of
businesses proposing a new
version of bitcoin’s software
THE WALL STREET JOURNAL.
FEDERICO PARRA/AGENCE FRANCE-PRESSE/GETTY IMAGES
PdVSA bonds
Venezuelan bonds
M J J A S O N
THE WALL STREET JOURNAL.
MICHAEL SHORT/BLOOMBERG NEWS
gap between short- and long-
dated bond yields. The S&P
500 financial sector fell 0.6%.
Banks earn money on the dif-
ference between what they
pay on deposits and what they
charge to lend money.
Earlier, the Stoxx Europe
600 declined less than 0.1%.
At midday Thursday,
Japan’s Nikkei Stock Average
was up almost 2% and topped
23000 for the first time in de-
cades amid continued strong
corporate results and a weak-
ening yen. At the same time,
Hong Kong’s Hang Seng Index
was up 1% and Australia’s S&P
ASX 200 was up` 0.4%.
backed off their plans to re-
lease it. This software would
have roughly doubled the net-
work’s processing capacity, or
the number of bitcoin transac-
tions it can handle. It also
would have led to the creation
of a new kind of bitcoin.
The move, meant to increase
bitcoin’s attractiveness as a
payment system, was opposed
by a group of bitcoin’s main
software developers. While
their opposition began over
technical issues, it centered on
who would control bitcoin,
which was created as a decen-
tralized, autonomous network.
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.
Treasurys Feel Pull of German Gravity
Aggressive stimulus
Rare Terrain
efforts in Europe push The spread between 10-year U.S. and German government bond yields has widened recently...
overseas investors to Yield on 10-year U.S. Treasury note German bond
U.S., helping cap yields 2.5%
BY SAM GOLDFARB
AND DANIEL KRUGER
The yield on 10-year Trea-
sury notes is falling again, and
some analysts are pointing to
a familiar nemesis: German
debt.
For years now, German gov-
ernment bond yields, along
with European sovereign
yields in general, have exerted
a gravitational pull on the
Treasury market. Slow post-
crisis growth and aggressive
monetary stimulus have led to
ultralow yields in Europe.
That, in turn, has pushed over-
seas investors to buy U.S. gov-
ernment bonds for the rela-
tively substantial income they
offer compared with European
sovereign debt, helping cap
Treasury yields.
This month’s decline in
Treasury yields serves as a re-
minder that it could be diffi-
cult to escape that dynamic,
investors and analysts say.
Low Treasury yields have
ripple effects across the U.S.
economy. They help bring
down borrowing costs for in-
dividuals and businesses, tend
to weigh on the dollar and
help bolster stocks by making
them look more attractive to
yield-seeking investors.
The yield on the 10-year
Treasury note settled Wednes-
day at 2.325%, down from a
recent high of 2.452% on Oct.
26. Yields fall when bond
prices rise.
When the European Central
Bank signaled at the end of
October that it would continue
its bond-buying program deep
into next year, German bond
yields fell sharply. Treasury
yields, however, rose initially
as U.S. investors remained fo-
cused on the potential for tax
cuts and interest-rate in-
Email: heard@wsj.com
Tencent Finds Surprise Windfall
Chinese tech giant Ten-
cent Holdings has just found
a company worth billions of
dollars in its bottom drawer.
The hope for investors is
there are more where that
came from.
Shares of China Litera-
ture, an online books com-
pany controlled by Tencent,
as much as doubled on their
first day of trading Wednes-
day, valuing the company at
more than $12 billion. The
IPO has drawn a crowd at-
tracted by a relatively rare
tech-sector float in Hong
Kong and the Tencent brand
name. The retail portion of
the deal was about 625 times
oversubscribed.
After the pop, China Liter-
ature is valued at about 200
times its expected earnings
this year, much higher than
Tencent’s already punchy 51
times.
That also means Tencent’s
53% stake in the company, to
which most analysts hadn’t
previously ascribed any
value, is now worth about
$6.5 billion.
Another bonus could be
coming soon: Sogou, a
Investors’ Obsession With Growth Leads Only to Tech
Investors are demanding
growth from companies, and
those that don’t deliver are
getting hammered. But
growth is an increasingly
hard achievement these days,
so investors are rushing into
the one sector that is deliv-
ering big numbers: tech.
The third quarter was
good for U.S. companies,
though not as good as the
first half of the year. Earn-
ings for companies in the
S&P 500 were up 8% from a
year earlier, according to
the latest Thomson Reuters
I/B/E/S estimate. That com-
pared with a gain of 12.3%
in the second quarter and of
15.3% in the first.
The slowdown was no sur-
2.0
1.5
1.0
0.5
0 The eurozone economy,
–0.5
2016
Yield differential between 10-year Treasury note and 10-year German bond
2.4 percentage points
1.4
...reflecting bets that the Federal Reserve will tighten monetary
policy at a faster pace than the European Central Bank...
Effective federal-funds rate
1.25%
1.00
0.75
0.50
0.25
0 serve, both central banks have
–0.25
–0.50
2010 ’11
At the same time, there have
been signs that the eurozone
economy is catching up to the U.S.
Real GDP growth
*Projection
Note: Euro area inflation excludes food, energy, alcohol and tobacco. U.S. inflation from the Personal Consumption Expenditures Index, excluding food and energy
Sources: Ryan ALM (U.S. Treasury yield); Thomson Reuters (German bond); Federal Reserve Bank of New York (policy rates); European Central
Bank (policy rates); Federal Reserve Bank of St. Louis (U.S. inflation); Eurostat (eurozone inflation); IMF World Economic Outlook (growth)
creases at home.
That pushed the gap be-
tween the 10-year Treasury
yield and 10-year German
bond yield above 2 percentage
points, rare territory that
some see as unsustainable.
The spread between the two
bonds stayed below 2 percent-
age points for 27 years until
HEARD ON THE STREET
Sound of Music
Number of paid subscribers
60 million
40
20
0
Tidal Napster
Source: Bernstein
search-engine company in
which Tencent owns a 44%
stake, starts trading in New
York on Thursday, hoping to
raise up to $670 million, in-
cluding an overallotment op-
tion. At the high end of the
price range, Sogou would be
valued at about $5 billion, or
about 70 times its historic
earnings, higher than 32
times for China’s market
leader Baidu.
What else is in Tencent’s
sock drawer? Tencent Music
Fading
Change in S&P 500 earnings
from a year earlier
20%
10
0
–10
2014 ’15 ’16
Source: Thomson Reuters I/B/E/S
prise. The easy comparisons
with the beginning of 2016
are over. Rising labor costs,
against a backdrop of low in-
flation that has made it diffi-
cult to raise prices, are put-
ting pressure on margins.
MARKETS
ECB deposit rate
’12 ’13 ’14 ’15 ’16 ’17
3%
2 aggressively than investors
1
0 U.S. Euro area
2013 ’14
President Donald Trump’s
election last November. Even
then, its stay above that
threshold lasted just several
months.
On Wednesday, the gap, or
spread, between the 10-year
Treasury yield and 10-year
German bond was down to
1.99 percentage points from
FINANCIAL ANALYSIS & COMMENTARY
Deezer Tencent Apple Spotify
Music
THE WALL STREET JOURNAL.
Entertainment, its Spotify-
like music service, which has
more than a 75% share of
China’s digital-music market
according to Bernstein, could
be the next to come to mar-
ket.
Tencent doesn’t break out
separate financials for the
business, which faces chal-
lenges in China, where music
piracy is rampant. Still, an
IPO to raise funds for more
original content such as live
music shows could make
That leaves tech as the
gravity-defying standout.
Earnings for technology com-
panies in the S&P 500 were
an estimated 23% above their
year-earlier level, and over
90% of the companies that
have reported so far beat ex-
pectations. Tech shares shot
higher as a result. S&P 500
tech stocks are up 9.3% this
quarter versus a gain of 2.8%
’17
for the overall index.
The demand for earnings
growth and the rush into
tech stocks, which defies the
belief that all investors are
indexing, has left a trail of
destruction in its wake. Tech
stocks that didn’t deliver
were hit, with shares of Ju-
niper Networks down 6.1%
’17
...and that Congress could pass tax cuts that would boost U.S.
growth and inflation.
Core euro area inflation rate
2.00%
1.75
1.50
1.25
1.00
0.75
0.50
2014 ’15
’15
2.05 points on Oct. 27.
A widening spread between
Treasury yields and German
bond yields is always going to
be difficult to sustain because
“the more the spread widens,
the more buying you see com-
ing into our market” from
overseas, said Donald Ellen-
berger, head of multisector
sense.
Similarly, Tencent’s video
service could be worth float-
ing. Just like Netflix, Ten-
cent has poured billions into
this business to make its
own original programming.
Having a separate listing for
the video unit would create a
new funding source for this
cash-draining operation.
For sure, it seems unlikely
Tencent would ever do that
for a core business like its
phenomenally successful so-
cial-media app WeChat.
What the China Literature
IPO has shown is that Ten-
cent can create billions of
dollars of value for itself and
other investors simply by
floating peripheral busi-
nesses—even if they have yet
to generate much in terms of
earnings.
Tencent is betting its
magic will work on Snap,
whose slowing growth disap-
pointed investors on Tues-
day. Hours later, Tencent
said it bought 12% of the so-
cial-media company. No luck
so far: Snap’s shares fell
nearly 15% on Wednesday.
—Jacky Wong
and Symantec falling 9.1%
after earnings. Onetime IPO
darling Snap Inc. was down
more than 14% on Wednes-
day following its disappoint-
ing results. Nontech stocks
such as Under Armour,
down 24% after it reported
last week, were hit harder.
What is surprising is the
shift is hardly visible in the
overall market. The S&P 500
barely shook during earnings
season. Through Wednesday,
the index went 46 consecu-
tive days without a decline of
0.50% or greater, the longest
streak since 1968, according
to the Dow Jones Market
Data Group.
The need for growth ex-
plains the rise in capital
Thursday, November 9, 2017 | B13
Core U.S. inflation rate
’16 ’17
’16 ’17*
THE WALL STREET JOURNAL.
strategies at Federated Inves-
tors Inc.
Mike Swell, co-manager of
the Goldman Sachs Strategic
Income Fund, said his portfo-
lio profited in recent months
from a bet that the gap be-
tween Treasury yields and
German yields would expand.
The fund, however, has un-
OVERHEARD
The price was the highest
ever paid for a commercial
building, but did the Chinese
Communist Party-backed firm
that paid $5 billion for the
Hong Kong skyscraper known
as The Center get ripped off?
The iconic office tower fa-
mous for a certain super-
hero’s high altitude acrobatics
in “The Dark Knight,” is 80
stories tall according to the
Hong Kong Tourism Board.
But in reality, it is only 73
stories high.
The gap isn’t the result of
any dastardly supervillain
heist, but is actually related
to a quirk of the Chinese lan-
guage: The number “four”
sounds uncomfortably like
“death,” leading to skyscrap-
ers across China mysteriously
missing their fourth, 14th, and
especially 44th floors. Unsur-
prisingly, renters aren’t eager
to pay for a spot on the
“death-death” floor.
Presumably any party cad-
res—even accounting for the
bracing effect of their newly
fortified Red Boat Spirit—
won’t be eager to lodge there
either.
spending among companies
this year, as investors
changed their preference
from the safety of stock buy-
backs and dividends to earn-
ings growth.
There are pluses to that.
The economy will probably
benefit from companies be-
ing a bit less tightfisted, and
businesses that sell capital
equipment and the like do
better when the focus turns
to growth. But with interest
rates rising, valuations high
and an increasingly narrow
group of companies able to
satisfy investor demands for
growth, the concern is what
will happen to the overall
market when growth really
slows. —Justin Lahart
wound that trade in recent
weeks and would consider bet-
ting on a narrower spread if
the gap gets any wider.
Driving the fund’s original
trade was the idea that the
U.S. was further along in its
economic recovery than Eu-
rope, while the Continent re-
mained committed to mone-
tary stimulus, he said. At this
point, though, there are signs
that the eurozone economy is
catching up with the U.S.
which has had a rockier recov-
ery from the financial crisis
than the U.S., is expected to
expand 2.1% this year, accord-
ing to the latest report from
the International Monetary
Fund, just a shade below the
projected U.S. growth rate of
2.2%.
Overall, there is “much
more convergence versus di-
vergence” among economies,
making it risky to hold Ger-
man government bonds at cur-
rent prices, Mr. Swell said.
Bets on government bonds
are hardly free from risk.
While inflation has remained
persistently below targets set
by the ECB and Federal Re-
expressed confidence that
prices will rise. The U.S.’s bud-
get deficit could push up rates
faster than in Germany, which
has a surplus. The Fed could
also raise interest rates more
forecast. Rising inflation eats
away at the purchasing power
of bonds’ fixed returns.
Still, NatWest Securities
strategists recommend inves-
tors sell five-year German
debt and buy five-year Trea-
surys because they say the
rise in U.S. yields may have
been overdone.
Combining a bet on falling
Treasury yields with one on
rising German yields offers in-
vestors a hedge should global
bond yields take a collective
move higher, said Brian
Daingerfield, a NatWest strat-
egist.
WSJ.com/Heard
A Setback
For Online
Lenders
Lenders should be judged
not on how rapidly they
grow during good times, but
how they perform in periods
like today when consumer
defaults are ticking up. On
that basis, LendingClub
looks unprepared and inves-
tors are right to be skeptical
of the online lender.
Following a sales-prac-
tices scandal that felled its
founder and chief executive
last year, LendingClub took a
full year to restore trust
with investors and return to
a growth path. Now, worries
about the quality of its loans
are sinking the stock again.
Shares plunged 16% Wednes-
day after the company low-
ered its full-year earnings
forecast slightly.
LendingClub said loans to
certain borrowers at the low
end of the prime credit spec-
trum “are not currently
meeting our expectations.” It
will limit these loans, which
account for around 3% of to-
tal loans, and temporarily
halt their sale to investors
while tightening criteria for
these borrowers.
LendingClub itself is on
the hook for only a small
part of the credit losses—it
originates credit-card refi-
nancing and other loans and
then sells them on to inves-
tors. But if losses are higher
than expected, loan buyers
won’t be happy.
Chief Executive Scott San-
born cited a new environ-
ment in which rising con-
sumer indebtedness is
leading to credit losses de-
spite a strong economy.
The past two years have
been a series of disappoint-
ments for online players that
were supposed to disrupt the
lending landscape. Investors
are now saying they fear
more disappointments to
come.
—Aaron Back
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
B14 | Thursday, November 9, 2017 THE WALL STREET JOURNAL.

Whisky Advocate's
th
20ar!
Ye
The Leading Whisky Festival in North America

New York Marriott Marquis | Thursday, Nov. 16

Join Us For the
20th Anniversary Celebration
• Taste from a selection of more than 400
whiskies from around the world
• Meet the distillers and master blenders who
make them
• Enjoy a gourmet buffet all evening
• Learn from the best. Attend the FREE
seminars conducted by master distillers and
brand ambassadors

VIP
tickets still
available!
Order Tickets at WhiskyFest.com

Cigar Aficionado's
22 nd
Year!
THE WEEKEND FOR CIGAR LOVERS

The Mirage | Friday, Nov. 17-Sunday, Nov. 19

Join Us For a Big Smoke Night or
Make it a Weekend
• Two Big Smoke Evenings to choose from:
Friday, Nov. 17 and Saturday, Nov. 18
• Collect more than 35 cigars from some of the
biggest names in the cigar business
• Enjoy seminars with Cigar Aficionado editors and
renowned cigarmakers, including a tasting of
three of the top cigars of 2016 Yes,
you ca
n
smoke
!

VIP
tickets still
available!
Order Tickets at LasVegasBigSmoke.com
M. SHANKEN COMMUNICATIONS, INC.