The Wall Street Journal - 13 06 2018

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What’s AT&T Beats U.S. in Antitrust Fight

News Judge backs $80 billion
Time Warner deal as
ment that could rewrite the
media landscape and set the
stage for more deals.
Gates Open
Up next, a possible
would suppress competition in
the pay-TV industry.
At one point waving his 172-
usual political cast.
The decision, in one of the
biggest antitrust cases in de-
media companies eye Other companies had been Comcast move on Fox... A6 page opinion in the air, Judge cades, is a milestone victory
Business & Finance waiting to see how the AT&T AT&T CEO took big risk in Leon declared: “The court has for AT&T as it looks to reposi-
wave of consolidation case turned out, including antitrust case................... A6 now spoken and the defen- tion itself in a rapidly evolv-
T&T can proceed with Comcast Corp., which has Heard on the Street: Open dants have won.” ing media landscape. Its deal
A its acquisition of Time
Warner without any condi-
BY BRENT KENDALL
AND DREW FITZGERALD
been planning a bid to buy the
bulk of 21st Century Fox Inc.’s
line for M&A ................... B16 The moment provided a fi-
nal act of drama in a case that
for Time Warner, now valued
at roughly $80 billion, has
tions, a federal judge ruled, assets. The decision will give carried the highest stakes for been pending since October
marking a historic defeat for WASHINGTON—A federal ammunition to Comcast as it all-stock deal with 21st Cen- the two companies, their lead- 2016.
the Justice Department. A1 judge ruled Tuesday that AT&T argues to Fox and its share- tury Fox, announced in De- ers and the Trump administra- Underlining the magnitude
The ruling paves a clear Inc. can proceed with its holders that a tie-up between cember. tion’s antitrust enforcement. of AT&T’s victory, Judge Leon
path for Comcast to bid for blockbuster acquisition of the companies could with- U.S. District Judge Richard President Donald Trump was took the unusual step of urg-
Fox assets and could trigger Time Warner Inc., without any stand a regulatory review. A Leon told a packed courtroom direct in opposing the deal, ing the Justice Department to
a round of deal making by conditions, marking a historic Comcast offer would disrupt that the department hadn’t both before and after taking let the companies close their
smaller media companies. A6 defeat for the Justice Depart- Walt Disney Co.’s $52.4 billion proved its case that the deal office, giving the case an un- Please turn to page A6
Tesla plans to cut about 9%

of its workforce in an effort
to deliver a profit as it ramps
up Model 3 production. A1
A recent divergence in
Tricky Path Ahead After North Korea Summit
economic fortunes looks set to SINGAPORE—President Don-
keep the Fed and ECB on dif- ald Trump launched a high-
ferent interest-rate tracks for stakes diplomatic effort to rid
many months to come. A2, B1 North Korea of its nuclear weap-
Powell is considering hold- ons, betting that a friendlier ap-
ing a press conference after proach with North Korea’s Kim
every Fed policy meeting. A2 Jong Un—including a surprise
promise to halt military exer-
AstraZeneca and Lilly cises with South Korea—would
scrapped trials of an experi- work better than intimidation.
mental Alzheimer’s drug,
saying the treatment wasn’t By Michael R. Gordon,
working as well as hoped. B1 Jonathan Cheng
Revolve is preparing for and Michael C. Bender
an IPO that is expected to
value the online clothing re- With the task ahead to make
tailer at over $1 billion. B1 the agreement concrete, Secre-
tary of State Mike Pompeo is
U.S. stocks showed lit- scheduled to travel to Seoul on
tle reaction to the Korea Wednesday for talks with South
summit, but the AT&T rul- Korean and Japanese officials,
ing spurred after-hours followed by a trip to China. The
JONATHAN ERNST/REUTERS
moves in media shares. B16 decision to cancel the exercises,
Merrill will pay $15.7 mil- the refining of the timetables
lion to settle claims that for denuclearization and possi-
traders lied about prices they ble future sanction relief are ex-
paid for mortgage bonds. B14 pected to be on the agenda.
North Korea said Wednesday
Facebook is cracking that Mr. Trump had told Mr.
down on e-commerce sites Kim he intended to halt U.S.- President Trump, who departed Singapore on Tuesday, pledged big changes would come from his summit with the North Korean leader.
with a new feature that lets South Korea military exercises
users leave feedback. B4
World-Wide
and lift sanctions against the
North, suggesting through its
state media that Mr. Trump had
explicitly acceded to two long-
The Gamble of the Trump-Kim Embrace
standing North Korean demands BY GERALD F. SEIB so many others have failed: North Korean leader but a show in Pyongyang.
Trump launched a high- during bilateral talks at their “This is a much different time, wholly different one prepared The second calculation is
stakes diplomatic effort to rid summit meeting a day earlier. Midway through the press and this is a much different to shift his country’s strategic that it is possible to turn the
North Korea of its nuclear The North Korean report also conference after his summit president,” Mr. Trump said. goal away from a quest for usual process of reaching sig-
weapons, betting that a quoted Mr. Trump as crediting meeting with North Korean As that suggests, the pros- more powerful arms into a nificant international agree-
friendlier approach with Kim, Mr. Kim’s “proactive peace-lov- leader Kim pects for turning Tuesday’s quest for a more powerful ments on its head. Normally,
including a surprise promise ing measures” for having cre- ANALYSIS Jong Un, Presi- vague agreement into lasting economy. leaders have their subordi-
to halt military exercises with ated the atmosphere of peace dent Donald change on the Korean Penin- The gamble, in short, is nates carefully work out de-
Seoul, would work better Please turn to page A10 Trump offered sula hinge on two new factors that this is a different time tails of big deals beforehand,
than intimidation. A1, A10-11 his basic argument for why in the equation. The first is because the young Mr. Kim ensuring that their countries
The president said Canadi- More coverage of the this effort at diplomacy with the calculation that Mr. Kim rather than his father or are in agreement before the
ans would pay a price for coun- Singapore summit.......... A10-11 Pyongyang will succeed where represents not just a younger grandfather is running the Please turn to page A10
tering the U.S. on trade, while
his aides sought to tamp down
Trump Aide Says ‘Hell’ Was Too Hot
tensions between the allies. A4
House Republicans will
hold votes next week on two
Tesla to Cut Workforce by 9%
bills to protect Dreamers,
Speaker Ryan’s office said. A4 In Bid for Sustainable Profit
Senior GOP senators sig-
BY TIM HIGGINS
PAUL MORSE FOR THE WALL STREET JOURNAL
naled that Trump was unlikely Model 3 compact sedan. past 12 months amid Tesla’s
to block an effort to derail a In a memo to employees, Mr. struggles to crank up vehicle
deal to save China’s ZTE. A4 Tesla Inc. on Tuesday said it Musk said the job cuts are production.
will cut about 9% of its work- mostly aimed at salaried staff The Silicon Valley auto
The U.S. military is pro- force in an effort to deliver its and won’t affect production maker, which hasn’t turned an
viding its Gulf allies with in- first profit during a make-or- workers assembling the com- annual profit in its 15-year his-
telligence to fine-tune a list break period of building a pany’s vehicles. “This will not tory, is facing heightened scru-
of airstrike targets in Yemen’s mass-market electric car. affect our ability to reach tiny from analysts and inves-
most important port. A7 The layoffs of about 3,500 Model 3 production targets in tors after starting assembly of
Eight people, including employees come as Chief Exec- the coming months,” he wrote. the Model 3 last July and miss-
five Russians, were charged utive Elon Musk reorganizes Tesla investors welcomed ing several production mile-
by the U.S. with helping Tesla’s management structure the news on Tuesday, sending stones that would have enabled
ship jet fuel to Syria. A4 to make it flatter, and as the the company’s shares up more it to generate free cash flow. CANADIAN IRE: Trump trade adviser Peter Navarro apologized
company tries to ramp up pro- than 3% to $342.77. The stock Mr. Musk has promised to fi- Tuesday at an event of The Wall Street Journal CFO Network for
Britain’s May narrowly duction of the all-electric has fallen about 8.8% over the Please turn to page A8 a comment about Canadian Prime Minister Justin Trudeau. A4
escaped a bruising Brexit
defeat in Parliament. A8
Rep. Sanford of South
INSIDE
NS Competitive About Meditation?
Salesforce.
Carolina conceded in his Re-
publican primary election
Tuesday, defeated by a chal-
Relax, Everyone Else Is, Too
#1 CRM.
lenger backed by Trump. A3 i i i
Hundreds of migrants Hard-chargers descend on ancient

whose boat was denied en-
try to Italy will be ferried to ppractice, tweaking quest for inner peace
Spain by Italian vessels. A9 Ranked #1 for CRM Applications based on
Kudlow is expected to IDC 2017 Market Share Revenue Worldwide.
make a swift recovery B LLEN GAMERMAN
L waiting for the 10 minutes to
be over to see if my streak 19.6%
from a heart attack. A2
Th
This week, Alan Stein Jr. was alive,” he said. Thanks to
hit his
h 325th straight day the app’s built-in grace period,
JOURNAL REPORT
medi
meditating—a streak he is his frantic attempt counted to-
Hot startups tendi
tending with the mindfulness ward his total. He was, in the
of a m
monk. words of the mindful on social
in hot sectors Th
The 42-year-old media, #Grateful. 7.1%
Tech Companies perfo
performance coach Type-A people
from Gaithersburg, are descending on 6.5%
to Watch, R1-6
Md., has kept his the ancient prac-
4.0%
recor
record using the tice of meditation
CONTENTS Opinion.............. A19-21 Head
Headspace app, de- and tweaking the
Business News B3,8-9 Singapore Summit A10-11 3.2%
Crossword.............. A13 Sports................ A15-18 spite early-morning quest for inner
Heard on Street. B16 Technology............... B4 flight
flights and travel peace to suit their
Journal Report.. R1-6 U.S. News............. A2-6 acros
across time zones. hard-charging 2013 2014 2015 2016 2017
WORLD CUP
Life & Arts...... A12-14 Weather................... A13
Markets............. B15-16 World News........ A7-9
On a recent work needs—racking up
Source: IDC, Worldwide Semiannual
trip to Atlanta, he streaks and broad-
PREVIEW
Software Tracker, April 2018.
remembered to Winning meditation casting their run-
> meditate only just ning tallies to the
after the clock struck mid- world. The result, for some:
The matches to watch, night. Worried he’d blown his Meditation has never been
the missing Americans record, he closed his eyes and more stressful. salesforce.com/number1CRM
quickly tried to meditate on In one online group, mem-
s 2018 Dow Jones & Company, Inc.
All Rights Reserved
and the two stars who the hotel bed for 10 minutes. bers regularly check a leader-
CRM Applications market includes the following IDC-defined functional markets: Sales, Customer Service, Contact
Center, and Marketing Applications. © 2018 salesforce.com, inc. All rights reserved. Salesforce.com is a registered
trademark of salesforce.com, inc., as are other names and marks.
still rule. A15-18 “The whole time I’m just Please turn to page A8
РЕЛИЗ ПОДГОТОВИЛА ГРУППА "What's News" VK.COM/WSNWS
A2 | Wednesday, June 13, 2018 THE WALL STREET JOURNAL.
U.S. NEWS
U.S., Europe Rate Gap to Widen
Central banks in the U.S. eurozone growth that appears quantitative easing, which is
U.S. WATCH
U.S. GOVERNMENT
and Europe are both expected to have continued through the Separate Ways credited with supporting the Budget Deficit Grew
to move this week to unwind spring, as well as the risks The U.S. and Europe have been diverging on their key policy rates. region’s economic recovery. In Fiscal Year to Date
stimulus policies adopted since posed by international trade But analysts say that move
6%
the global financial crisis a de- spats, higher oil prices and po- is probably necessary because The U.S. government’s budget
cade ago. litical turbulence in the bloc’s 5 U.S. the ECB is approaching the deficit widened in the first eight
No. 3 economy, Italy. limits of what it can buy under months of the fiscal year, re-
Eurozone
By David Harrison in The gap between the two 4 rules aimed at limiting the im- flecting lower revenue from cor-
Washington and Tom central banks’ key policy rates pact on markets, and ensuring porate taxes and ramped-up
Fairless in Frankfurt is expected to widen to about 3 3 the program doesn’t finance government spending.
percentage points by the end eurozone governments. The deficit, or the difference
2
But the likely steps mask a of next year, from about 2 per- Some investors had until re- between the amount of money
recent divergence in the for- centage points today, accord- 1 cently expected the ECB to the federal government spent
tunes of the world’s top two ing to forecasts by Fed officials start raising rates this year, and what it took in, totaled
economic blocs, which looks and investors. 0 but most now don’t see a first $532.24 billion in October
set to keep the central banks That would be the biggest increase until late next year. through May, the Treasury De-
on different interest-rate gap since late 2008, when the –1 A political crisis in Italy last partment said Tuesday. That
tracks for many months to Fed cut its short-term interest 2007 ’10 ’13 ’16 month sent bond markets was 23% more than the deficit
come. rates far below those of the swinging wildly and raised of $432.85 billion during the
Note: Since Dec. 2008, the Federal Reserve publishes a target range rather than a single rate.
The Federal Reserve is ECB as it reacted to the sub- Eurozone rate is the deposit rate fears that the new government same period a year earlier.
likely to raise short-term inter- prime crisis. Sources: Federal Reserve Bank of St. Louis, could push the country out of Tuesday’s report showed the
est rates Wednesday and pen- “With some uptick in politi- Bank of England, European Central Bank THE WALL STREET JOURNAL. the eurozone. Rising oil prices federal budget deficit was
cil in more increases in coming cal uncertainty, and inflation and the threat of trade wars $146.80 billion in May, 66%
years, to keep the U.S. econ- still below target in the euro the U.S. after outpacing its years, and inflation has have also raised concern in Eu- wider than the same month a
omy from overheating. area and Japan, monetary poli- trans-Atlantic counterpart reached the Fed’s 2% target af- rope and around the world. year earlier. Government revenue
The European Central Bank cies among the advanced econ- over the past two years. ter undershooting it for much The U.S., by contrast has fell 10% last month compared
could signal on Thursday it omies look likely to be diver- The American economy, of the past six years. been better insulated, partly with a year earlier, while spend-
won’t start raising rates for gent for some time,” said fanned by the recent tax cuts, In the 19-nation eurozone, because its economy is less re- ing grew 11%.
some time even as it moves to Federal Reserve governor Lael could grow by more than a 4% where second-quarter growth liant on trade and because it is Corporate income taxes from
phase out its €2.5 trillion Brainard last month. annual rate in the second is expected to be about 2%, the one of the world’s top oil pro- October through May were
($2.95 trillion) bond-buying That reflects different eco- quarter, according to Atlanta ECB has signaled it could an- ducers. about 25% lower than the first
program. nomic fortunes: The eurozone Fed projections, the fastest nounce as soon as this week eight months of fiscal 2017, pull-
ECB officials are pondering economy currently appears to since 2014. Unemployment hit plans to phase out its bond- No market taper tantrum ing down revenue.
the causes of a slowdown in be growing at half the speed of 3.8% in May, the lowest in 18 purchase program, known as over the ECB............................... B1 Over the same period, individ-
ual income-tax collection rose.
Much of this period reflected the
Fed Weighs Increasing Press-Conference Frequency months before a tax cut passed
in late December took effect. In-
dividual income taxes fell to
$92.5 billion in May from $104
BY NICK TIMIRAOS to determine how high to raise billion a year earlier.
borrowing costs to keep the Meanwhile, spending in the
Federal Reserve Chairman economy on an even keel. first eight months of the fiscal
Jerome Powell is considering Mr. Powell generally won year increased from a year ear-
holding a press conference af- solid reviews for his first press lier for military programs, Home-
ter every policy meeting conference in March, during land Security, Medicare and
rather than every other meet- which he breezed through Medicaid.
ing, and his appear- questions at a rapid pace. His —Sarah Chaney
ance Wednesday could help answers were direct but pro-
him decide whether it would vided fewer clues about how ECONOMY
be worth the trouble. he was approaching particular
At issue for the Fed: Since decisions than those of his Consumer Prices
beginning press conferences in predecessor, Janet Yellen. Accelerated in May
2011, the central bank has Mr. Powell doesn’t want any
fallen into the pattern of mak- change in the process to be U.S. consumer prices last
ing major policy changes only misread as a signal of plans to month notched the heftiest an-
at meetings followed by a raise rates more aggressively. nual growth since the beginning
CAROLYN KASTER/ASSOCIATED PRESS
news conference. “I would want to think very of 2012, a further sign that price
The tactic has helped the Fed carefully about it and make pressures in the economy are
communicate policy changes in sure that no one would take solidifying.
more detail than its heavily more frequent press confer- The consumer-price index,
scrutinized, jargon-filled post- ences as a signal of the path of which gauges what Americans
meeting statements. But the policy,” he said in March. pay for goods like lettuce and
practice has lulled markets into Former Fed Chairman Ben toys and services like haircuts,
thinking the central bank won’t Bernanke instituted press con- rose a seasonally adjusted 0.2%
act between press conferences. ferences as part of his broader in May from the prior month,
“We’ve evolved to a place Fed Chairman Jerome Powell generally won solid reviews for his first press conference in March. campaign to make the central the Labor Department said
where the market only thinks bank more transparent. Making Tuesday. Prices rose 2.8% last
we’ll move if there’s a press To fix the problem, the Fed meeting. “It’s important that benchmark federal-funds rate press conferences more routine month from the prior year, the
conference,” Atlanta Fed Presi- could raise interest rates at a the market believes that we to a range between 1.75% and would give Mr. Powell a chance strongest reading since February
dent Raphael Bostic said in an meeting without a press con- could potentially move at any 2%. The central bank is entering to assert his voice over other 2012, when inflation was 2.9%.
interview this year. This is “a ference, said Mr. Bostic. Or it meeting that we have,” he said. a delicate policy phase because Fed officials who give speeches Tuesday’s report came before
sign that what we’re doing right could send Mr. Powell out to The Fed is set to announce as the economic expansion and interviews in between Federal Reserve officials start a
now isn’t working.” face reporters after every Wednesday it will raise its ages, it becomes more difficult scheduled meetings. two-day meeting in which they
are expected to raise rates to
keep inflation under control.
A ‘Speedy’ Remains of Soldier Killed in Somalia Are Brought Home —Sharon Nunn
WASHINGTON
Recovery Sen. Paul Didn’t Talk
To Neighbor for Years
Is Predicted Sen. Rand Paul says he
For Kudlow hadn’t spoken for years to a
neighbor who said in court docu-
BY PETER NICHOLAS ments that he lost his temper
AND NICK TIMIRAOS and attacked the senator after a
problem with yard debris in their
WASHINGTON—The White Kentucky subdivision.
House and friends of Larry A statement from Sen. Paul’s
Kudlow said Tuesday he was office Tuesday said he “had no
expected to make a swift re- conversations or discussions with
covery from his heart attack the attacker” in the last decade.
and resume work soon as The neighbor, Rene Boucher, is
President Donald Trump’s top facing a 21-month sentence for
economic adviser. assaulting a member of Con-
Mr. Kudlow, 70 years, was gress. Dr. Boucher said in a sen-
hospitalized Monday after tencing memorandum that he
what the White House called a lost his temper on the day of the
“very mild heart attack.” Nov. 3 attack. Dr. Boucher said
In a statement Tuesday, Sen. Paul repeatedly stacked yard
White House press secretary debris near their property line.
Sarah Sanders said Mr. Kud- Dr. Boucher said he spoke with
CLIFF OWEN/ASSOCIATED PRESS
low remained at Walter Reed members of the homeowner’s as-

National Military Medical Cen- sociation about the issue, but a
ter as a standard precaution. Paul spokesman says the senator
“His doctors expect Larry will didn’t hear from the association.
make a full and speedy recov- Sen. Paul’s statement said
ery,” she said. “any description of this attack
“Everything we’re hearing that implies a ‘yard dispute’ jus-
is the news is good,” Kevin tifies such violence and misses
Hassett, chairman of the presi- ULTIMATE SACRIFICE: The body of Staff Sgt. Alexander W. Conrad of Chandler, Ariz., was moved at Dover Air Force Base in Delaware the point.”
dent’s Council of Economic Tuesday. Sgt. Conrad, 26, died of injuries from enemy indirect fire while supporting Operation Octave Shield, according to the Pentagon. —Associated Press
Advisers, said at a Wall Street
Journal CFO conference in
Washington.
Walter Reed hospital de-
CORRECTIONS AMPLIFICATIONS THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
clined to comment.
Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036
Arthur Laffer, an economist The last name of Good while premiums for a tradi- through April 20 and esti- Published daily except Sundays and general legal holidays.
and longtime friend of Mr. Party member Murat Agirel tional long-term-care policy mates for the remaining firms. Periodicals postage paid at New York, N.Y., and other mailing offices.
Kudlow, spoke to him on the was misspelled as Agirdir in a are subject to potential in- A footnote incorrectly said 86 Postmaster: Send address changes to The Wall Street Journal,
phone Monday after Mr. Kud- World News article Tuesday creases. The graphic incor- companies already had re- 200 Burnett Rd., Chicopee, MA 01020.
low was admitted to Walter about candidates challenging rectly reversed the informa- ported. 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
Reed. “He told me, ‘I’m just President Recep Tayyip Erdo- tion. the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order.
fine, Art,’ ” Mr. Laffer said. gan in Turkey’s June 24 snap The U-2 spy plane first be- Only publication of an advertisement shall constitute final acceptance of the advertiser’s order.
“Larry doesn’t bull----” on that election. A chart of analysts’ first- came operational in 1956 un- Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
stuff. When he says he’s fine, quarter earnings-growth esti- der the aegis of the Central In-
he means it.” The type of hybrid long- mates for S&P 500 companies telligence Agency, and Air NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
Stephen Moore, who with term-care insurance policy accompanying an April 23 Force U-2 operations began By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
Mr. Kudlow advised Mr. Trump shown in a graphic with an Ex- Markets article about earnings the following year. A U.S. By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat
during the 2016 campaign, change article Saturday about season contained results of News article Friday about the
said in an interview: “He’s go- long-term-care insurance has the 85 companies that had re- U-2 incorrectly said it became REPRINTS & LICENSING
ing to be fine. How he adjusts premiums that don’t increase, ported quarterly earnings operational in 1957. By email: customreprints@dowjones.com; By phone: 1-800-843-0008
his schedule to recuperate,
that has yet to be determined. Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS
He’ll be back on the job.” 888-410-2667.
THE WALL STREET JOURNAL. * * * * * * Wednesday, June 13, 2018 | A3
U.S. NEWS
Voters Head to the Polls in Five States
ANDREW HARRER/BLOOMBERG NEWS
PRIMARY DAY: Voters filled out ballots at a polling location on Tuesday in Lebanon Church, Va. Primaries also were held in four other
states, including Nevada, Maine, North Dakota and South Carolina, and there were two special legislative elections in Wisconsin.
GOP Incumbent Defeated

President endorsed " . . .T H E M O S T F L E X I B L E O F T H E
opponent of lawmaker U.S. JET MEMBERSHIP PROGRAMS"
from South Carolina Conklin & de Decker
in a tweet on Tuesday
GRACE BEAHM ALFORD/THE POST AND COURIER/ASSOCIATED PRESS
BY JANET HOOK
AND REID J. EPSTEIN
Rep. Mark Sanford of South

Carolina lost his Republican
primary election Tuesday, de-
feated by a challenger backed
by President Donald Trump
who accused him of being dis-
loyal to the president.
State Rep. Katie Arrington,
who was declared the winner
by the Associated Press in the
Charleston-based district, had F LY
portrayed Mr. Sanford as a
Trump adversary because he
had been openly critical of WITHOUT
some of the president’s poli- Rep. Mark Sanford after voting Tuesday in a primary for his seat. He lost to state Rep. Katie Arrington.
cies and provocative state-
ments. political career. Tuesday. Mr. Cunningham Mr. McMaster was endorsed LIMITS
Mr. Trump weighed in di- “I’ve always been a realist filmed an ad last year during in turn by Mr. Trump, most re-
rectly in the primary race and at this point, based on the the total eclipse, saying that cently in a tweet this past
Tuesday afternoon—just numbers I see, I think that I Mr. Trump was a darkness fall- weekend.
three hours before the state’s will end up losing this elec- ing on democracy. Mr. McMaster is headed to J e t C a r d by Air Partner
polls closed—with an en- tion,” Mr. Sanford said. When Mr. Trump tweeted a June 26 runoff with Mr.
dorsement of Ms. Arrington Mr. Sanford’s defeat came his endorsement of Ms. Ar- Warren, a political newcomer The worldwide private jet program
in a Twitter message that at- the same night that, in Vir- rington over Mr. Sanford late who self-financed his cam-
that’s all about you. With 100%
tacked Mr. Sanford. ginia, GOP primary voters se- Tuesday, Mr. Cunningham re- paign, and says he is more
“Mark Sanford has been lected Trump ally Corey sponded, “Shame that neither similar to Mr. Trump, as an fully refundable flight credit,
very unhelpful to me in my Stewart as their Senate nomi- will be in Congress next year. outsider with a business back- no blackout dates, flight hours
campaign to [Make America nee over a candidate favored See you in D.C.” ground. that never expire and the ability to
Great Again],’’ he tweeted. by the GOP establishment. The five-way South Carolina At Mr. Stewart’s victory a p p l y f u n d s t o o n - d e m a n d c h a r t e r.
“He is MIA and nothing but Together, the two primary re- GOP primary for governor is party in Virginia he called Mr.
trouble.” sults were a sign of how thor- headed to a runoff between in- Trump, for whom he worked
In an appearance late Tues- oughly the president has cumbent Henry McMaster and as Virginia state coordinator, Call us now 888 - 359 - 4349
day before supporters in come to dominate the Repub- 39-year-old entrepreneur John the “greatest president” of the Or visit www.airpartner.com/wj
Charleston, flanked by his four lican Party. Warren. last century.
adult sons, Mr. Sanford gave a Ms. Arrington will face Mr. McMaster is a fixture in Mr. Stewart will face Demo-
speech thanking his family, Democrat Joe Cunningham, a state politics and was among cratic Sen. Tim Kaine in No-
and acknowledging he was lawyer and yoga-studio owner the first elected officials to en- vember. Air Partner is not an air carrier. It acts as agents for its
customers in arranging flights operated by air carriers
likely not to carry an election in Charleston, who carried his dorse Mr. Trump in the state’s —Valerie Bauerlein under FAR Part 135 (or foreign equivalent).
for the first time in his 25-year infant son with him to vote 2016 primary. contributed to this article.
Seattle Reverses on Tax

To Help the Homeless
AMERICAN SPIRIT
BY NOUR MALAS housing is a human right!”
An antitax campaign backed
The Seattle City Council by major Seattle companies,
voted to repeal a newly passed
per-employee tax on big com-
including Amazon.com Inc., to
put the measure to voters in a SWISS PRECISION
panies designed to raise funds referendum in November had
for homeless services, a sur- gathered enough signatures by
prise move that came after Tuesday—more than double
fierce opposition from the the number needed, said John
business community and Murray, an antitax campaign
growing public debate. spokesman. City council mem-
The council passed the levy bers said that prompted them
unanimously less than a to move pre-emptively to re-
month ago. On Tuesday, seven peal the tax to avoid a long
out of nine council members and costly political fight.
voted to repeal it in a special The Seattle tax passed May
meeting which the council un- 14 would have, starting next
usually opened up to the pub- year, levied $275 per employee
lic, bringing arguments from on companies with more than
all sides. $20 million in annual revenue,
Housing advocates who sup- or about 3% of Seattle-based
ported the tax to raise money businesses, according to the
to build more affordable City Council. It was projected
homes said they felt betrayed to raise about $47 million a
by their representatives. Busi- year, to be spent on afford-
ness owners who praised the able-housing and homeless
council for its U-turn said they services.
supported efforts to help the That version passed after
homeless but a new tax wasn’t pressure from businesses re-
the right approach. duced what had been a pro-
“This is a defining day in posed $500-per-employee tax.
the city of Seattle,” said Coun- Amazon, Seattle’s biggest em-
KHAKI AVIATION X-WIND
cil member Lorena González ployer, had slammed the tax. AUTOMATIC
before voting in favor of the On Tuesday, the company
repeal, which she character- called the repeal vote “the
ized as a move forced by the right decision for the region’s
business community. Council economic prosperity.” Amazon
members strained to voice Vice President Drew Herdener
their votes over pro-tax pro- said in a statement the com-
testers, who carried signs pany was committed to being SHOP.HAMILTONWATCH.COM
reading “Tax Amazon.” and a part of the solution to end
chanted “We are ready to fight, homelessness in Seattle.
A4 | Wednesday, June 13, 2018 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ***** THE WALL STREET JOURNAL.
U.S. NEWS
GOP Sets
Votes on
Immigrant
Measures
BY SIOBHAN HUGHES
AND NATALIE ANDREWS
WASHINGTON—House Re-
publicans next week will hold
votes on legislation to protect
young immigrants brought to
the U.S. as minors and living
in the U.S. without authoriza-
tion, the office of Speaker
Paul Ryan (R., Wis.) said
Tuesday.
The planned votes were part
of a deal that allowed House
GOP leaders to stave off an up-
rising from centrist Republi-
cans aimed at forcing votes on
J. SCOTT APPLEWHITE/ASSOCIATED PRESS
a series of immigration mea-

sures, including new protec-
tions for the “Dreamers.”
Party leaders had ratcheted
up negotiations to avert a
vote on bills supported
mostly by Democrats, which
they fear will infuriate their
base of loyal GOP voters.
Tuesday’s deal buys GOP law-
makers at least another
Alex Azar, secretary of the Department of Health and Human Services, prepares to testify before Capitol Hill about the administration’s plan to combat high drug prices. month for negotiations.
Lawmakers Scrutinize Drug Plan

Centrist Republicans who
had formed a coalition with
House Democrats fell short of
collecting the final two signa-
tures needed to advance a pro-
cedural motion called a dis-
Trump official says Mr. Azar said in testimony prices” in two weeks. ance Tuesday to make it easier istration’s proposals omit key charge petition. The petition
before the Senate health com- Sen. Elizabeth Warren (D., for drug companies to provide steps that would lower costs, had 216 signatures, short of
some companies are mittee that companies are Mass.) said she and Sen. Tina insurers and other payers with such as allowing the importa- the 218 needed to trigger a
considering price cuts; working with industry middle- Smith (D., Minn.) had sent let- economic information about tion of lower-cost prescription quartet of immigration votes
men, including pharmacy-bene- ters to several large drugmak- their drugs, including those drugs. later this month.
Democrats have doubts fit managers, to make sure ers—including AbbVie, Glaxo- that aren’t yet approved. Sen. Patty Murray (D., The bipartisan coalition
“they’re not discriminated SmithKline and Johnson & Drug companies said this Wash.) called the proposal a could still collect the last two
BY STEPHANIE ARMOUR against” for cutting their prices. Johnson—asking if they have guidance will make it easier “big nothing-burger.” signatures, but any votes
AND PETER LOFTUS Middlemen currently have an lowered prices. None has cut for them and insurers to enter The administration’s 39-page wouldn’t come to the House
incentive to provide more fa- list prices, according to a into so-called value-based con- blueprint contains dozens of floor until late July at the ear-
Health and Human Services vorable coverage to drugs with statement from the senators, tracts in which the price of a initiatives to change govern- liest.
Secretary Alex Azar touted on higher list prices, he said. and one company, Novartis AG, drug is more closely tied to ment rules the administration The night marked a come-
Tuesday the administration’s The secretary didn’t iden- said “we do have some planned how well it works for patients. contends have allowed drug- from-behind victory for Mr.
plan to combat high drug tify any of the companies that price increases later this year,” Mr. Azar also urged Congress makers and pharmacy-benefit Ryan, whose grip on the House
prices, saying several drug were considering such price according to a copy of a letter to take action to ban gag clauses managers to game the system. GOP has weakened since he
companies are looking at “sub- cuts. President Donald Trump from the company that the that prevent pharmacists from The plan moves to increase re- said he would leave Congress
stantial and material” price said in late May that drug senators posted online. telling consumers about lower- bates and discounts for Medi- in January.
cuts, while Democrats said the companies would announce The Food and Drug Admin- priced drug options. care enrollees and provides —Kristina Peterson
plan would accomplish little. “voluntary massive drops in istration also released guid- Democrats said the admin- other incentives to lower prices. contributed to this article.
Senators Move U.S. Files

Charges
To Kill ZTE Deal Over Syria
BY SIOBHAN HUGHES Leader Chuck Schumer (D., N.Y.)
AND KATE O’KEEFFE
WASHINGTON—ZTE Corp.
and Chris Van Hollen (D., Md.).
The Senate is expected to
pass the defense bill this week.
Sanctions
once again appeared to teeter The measure would then move BY ARUNA VISWANATHA
on the brink of demise Tuesday to a conference committee with
as senior Republican senators the House, which has already WASHINGTON—Eight peo-
signaled that President Donald passed its own version of the ple, including five Russian
Trump was unlikely to block a defense authorization bill that businessmen from a company
congressional effort to derail a doesn’t address the China deal. with ties to the Russian mili-
deal he brokered to resuscitate Both chambers must pass iden- tary, were charged here Tues-
the Chinese telecommunica- tical bills before they can be day on allegations they helped
tions giant. sent to Mr. Trump. ship jet fuel to Syria, in viola-
The president hasn’t issued On Monday, Mr. Cotton pre- tion of U.S. sanctions.
CHIP SOMODEVILLA/GETTY IMAGES
tweets urging Republicans to dicted that Mr. Trump wouldn’t In an indictment handed up
stand down, and lawmakers de- use his veto power to reject the Trump trade adviser Peter Navarro apologized for insulting Canadian Prime Minister Justin Trudeau. Tuesday by a federal grand
tect no backlash building defense bill over the ZTE lan- jury, five employees at Russian
within Congress against the
move to unravel the White
House agreement.
“I don’t think the president
guage. Mr. Cotton, who speaks
regularly to Mr. Trump, de-
clined to say whether the presi-
dent had given him a personal
Trump Says Trade Spat to Cost freight forwarding company
Sovfracht and three Syrian
men who allegedly worked with
them, were charged with vio-
cares about ZTE,” Sen. Bob
Corker (R., Tenn.) told report-
ers. “Someone told me that he
guarantee. “I don’t reveal my
private conversations with the
president,” Mr. Cotton said.
Canadians ‘a Lot of Money’ lating U.S. sanctions on Syria
and Crimea.
Sovfracht was barred by the
gave [GOP lawmakers] a wink In a Tuesday interview, Mr. WASHINGTON—President American Free Trade Agree- was inappropriate,” he said at U.S. Treasury Department in
and a nod and told them he Van Hollen said: “If the presi- Donald Trump said Canadians ment. The conflict sharpened an event of The Wall Street September 2016 from access to
didn’t care. I don’t know if dent’s backing down, that’s a would pay a price for countering last week, in the days after the Journal CFO Network. the U.S. financial system with-
that’s true or not, but I think he good thing for the country.” the U.S. on trade, while his aides U.S. imposed tariffs on steel Kevin Hassett, chairman of out a special license over its al-
did what he did for the Chinese The fight over ZTE between and aluminum from Canada and the White House Council of leged involvement in Russia’s
leader but he doesn’t really Trump administration officials By Vivian Salama in the European Union. Canada re- Economic Advisers, said at the role in a crisis in Ukraine.
care what Congress does.” and lawmakers began last Washington and Paul sponded by imposing retalia- same event: “What people The company is close to the
Representatives for the month. Just weeks after the Vieira in Ottawa tory tariffs on a range of U.S. need to do at this moment is Russian military, and its alleged
White House, the Commerce Commerce Department had products, including toilet paper, take a step back, take a deep front company was nominated
Department and ZTE didn’t im- banned U.S. companies from sought to tamp down tensions orange juice and whiskey, effec- breath.” as the general agent of the Rus-
mediately comment. selling to ZTE, as punishment between the allies after a dust- tive on July 1—Canada Day. A spokeswoman for Mr. sian naval fleet, according to a
Mr. Trump had spent the for ZTE’s failure to honor an up with Prime Minister Justin The Toronto-based C.D. Trudeau declined to comment September 2016 email the al-
previous week in closed-door earlier U.S. agreement to re- Trudeau over the weekend. Howe Institute said Tuesday on Mr. Navarro’s apology. Early leged front company sent to an-
meetings trying to sell Senate solve the firm’s sanctions viola- U.S. officials have been its research indicated that Tuesday, when asked about at- other firm, the indictment said.
Republicans on the deal, which tions, Mr. Trump suggested he hammering the Canadian among major economies, “Can- tacks from the president and “The defendants allegedly
coincided with his effort to was considering reversing the leader for declaring Saturday his top advisers, Mr. Trudeau conspired to defy our sanctions
build goodwill with Chinese penalty. He tweeted May 13 that after meeting with Mr. Trump said he was “focused on de- against Syria and Crimea, en-
President Xi Jinping ahead of he and Mr. Xi were “working and other world leaders that fending jobs for Canadians and dangering both American inter-
this week’s talks with North Ko- together to give massive Chi- Canadians “will not be pushed
Mr. Trump’s latest supporting Canadian workers.” ests in the region as well as
rea about denuclearization. And nese phone company, ZTE, a around” by the U.S. Mr. Trump comments suggested So far, the attacks on Mr. our foreign policy and national
in a briefing late on Monday way to get back into business, saw the statement as a slight Trudeau appear to have given security at home,” John Dem-
with GOP senators, Commerce fast.” He added: “Too many jobs after concluding what he con-
the U.S.-Canada him a lift at home. In a rare ers, who runs the Justice De-
Secretary Wilbur Ross again in China lost. Commerce De- sidered friendly meetings. dispute could simmer. show of political unity, the coun- partment’s national security di-
tried to get lawmakers to drop partment has been instructed “I think that Justin proba- try’s Parliament unanimously vision, said.
their resistance to the ZTE to get it done!” bly didn’t know that Air Force endorsed a motion condemning A representative for Sov-
agreement. The tweet incensed many One has about 20 televisions, the attacks from Trump aides fracht couldn’t immediately be
But on Monday night, the members of Congress, as well and I see the television,” Mr. ada suffers the largest nega- and the administration’s metals reached for comment. The de-
Senate added language that as intelligence and military offi- Trump said Tuesday after con- tive impact” from the U.S. tariffs, which the U.S. justified fendants aren’t in custody and
would undo the deal to a must- cials, who moved swiftly to de- cluding his summit with North steel and aluminum tariffs. on national-security grounds. are believed to be overseas.
pass National Defense Authori- nounce any prospect of a re- Korean leader Kim Jong Un in The think tank said the tariffs Some of Mr. Trudeau’s politi- The U.S. attorney’s office in
zation Act bill. The accord had prieve through a series of Singapore. “He’s giving a news would lead to 6,000 job losses cal foes have come to Canada’s Washington filed a civil case in
sought to save ZTE by allowing legislative actions and an ag- conference about how he will in Canada and shave $8 billion defense, among them Stephen September 2016 to seize $2.5
it to resume buying compo- gressive public campaign. not be pushed around by the Canadian dollars ($6.15 billion) Harper, the former Conservative million in funds held at two U.S.
nents from U.S. suppliers de- But despite widespread bi- United States. And I say, ‘push off its annual economic output. prime minister whom Mr. banks, alleging that the funds
spite the fact that it had broken partisan opposition, Mr. Trump him around? We just shook Mr. Trump’s top trade ad- Trudeau defeated in 2015. “I were illicit payments that were
an earlier settlement with the and the Commerce Department hands.’ It was very friendly.” viser, Peter Navarro, who on don’t understand the obsession part of a Sovfracht scheme to
Commerce Department over on Thursday struck a new deal “That’s going to cost a lot Sunday said there was “a spe- with trade relations over Can- ship Russian fuel to Syria.
sanctions-busting sales to with ZTE, which requires the of money for the people of cial place in hell” for world ada,” Mr. Harper told Fox Busi- After that case was filed,
North Korea and Iran. company to pay a $1 billion Canada,” Mr. Trump said. leaders who “stab [Mr. Trump] ness Sunday. “Canada is the sin- the employees used another
The amendment to reverse fine, replace its entire board of Mr. Trump’s latest comments in the back on the way out the gle biggest purchaser of U.S. front company, Maritime As-
Mr. Trump’s rescue of ZTE was directors and senior leadership suggested the U.S.-Canada spat door,” apologized Tuesday for goods and services in the world.” sistance LLC, to circumvent
backed by a group of senators team and fund a team of U.S. could simmer for a while, po- his remarks, which he ac- the U.S. sanctions and make
including Tom Cotton (R., Ark.), compliance officers to monitor tentially hanging over discus- knowledged referred to Mr. See video of Navarro’s payments in U.S. dollars, the
Marco Rubio (R., Fla.), Minority the company for 10 years. sions to rewrite the North Trudeau. “I used language that apology at on.wsj.com/navarro indictment said.
THE WALL STREET JOURNAL. Wednesday, June 13, 2018 | A5
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WORLD NEWS
U.S. Expands Its Role in Yemen Fighting
Pentagon gives allies
intelligence to refine Some Lawmakers
list of targets in key Oppose U.A.E. Plan
port city of Hodeidah To Attack Port City
BY DION NISSENBAUM Opposition to the United

Arab Emirates’ plans for a
WASHINGTON—The U.S. military assault on, and sei-
military is providing its Gulf zure of, Yemen’s Red Sea port
allies with intelligence to fine- of Hodeidah is rising in
tune their list of airstrike tar- Washington.
gets in Yemen’s most impor- The Trump administration
tant port, one sign of the views the fight in Yemen as a
Trump administration’s deep- key battle in its effort to
ening role in a looming assault combat Iran’s expanding influ-
that the United Nations says ence across the Middle East.
could trigger a massive hu- U.S. and United Nations offi-
manitarian crisis. cials say that Iran has pro-
While the U.N. is working vided the Houthi fighters in
furiously to broker a deal to Yemen with ballistic missiles
avert a United Arab Emirates they have used to repeatedly
assault on a Red Sea port, the to target neighboring Saudi
U.S. is helping the Gulf nation Arabia—an accusation that
develop a list of targets meant Tehran denies.
NAJEEB ALMAHBOOBI/EPA/SHUTTERSTOCK
to be off limits for airstrikes, But Republican and Dem-

American military officials ocratic lawmakers have circu-
said Tuesday. lated letters of concern about
“The intent is to minimize the U.A.E.’s plans.
the number of civilian casual- U.S. lawmakers have un-
ties and the harm to critical successfully tried to cut off
infrastructure,” said one U.S. American support for the war
military official. in Yemen because of con-
The expanded U.S. military cerns about American culpa-
help comes as the Trump ad- bility in airstrikes that the
ministration is giving the U.N. estimates have already
U.A.E. cautious backing for its Sudanese forces fighting alongside the Saudi-led coalition in Yemen gathered on Tuesday near the port city of Hodeidah. killed more than 4,000 civil-
developing efforts to seize the ians.
port of Hodeidah from Iranian- military planning. The U.N. they have tempered their ob- “We expect all parties to The Pentagon chief has voiced Hodeidah is Yemen’s
backed Houthi forces. and aid groups were scram- jections in recent days. honor their commitments to concerns that a protracted as- fourth-largest city and is
Hodeidah serves as the bling to get their international One U.S. official said that work with the U.N. Office of sault on the port could worsen home to more than 400,000
main gateway for three-quar- staff out of the port as the Washington was giving the the Special Envoy of the Sec- the humanitarian crisis and un- people.
ters of the humanitarian and U.A.E. has indicated that a U.A.E. a “blinking yellow light” retary General for Yemen on dercut American counterterror- In the House, lawmakers
commercial goods flowing into military offensive could begin of caution. this issue, support a political ism operations in Yemen, where were gathering signatures for
Yemen, where most of the as soon as this week. On Monday, Secretary of process to resolve this con- elite U.S. forces work alongside a letter that urges Defense
population relies on interna- Mr. Griffiths has warned that State Mike Pompeo and De- flict, ensure humanitarian ac- their U.A.E. counterparts to tar- Secretary Jim Mattis to do all
tional aid. any assault on the port could be fense Secretary Jim Mattis of- cess to the Yemeni people, and get Islamic militants. he can to forestall an attack.
The U.N. has warned that an a death knell for his nascent at- fered qualified support for the map a stable political future The U.S. provides the Saudi- “We urge you to use all
assault on the port could trig- tempts to broker a deal. U.A.E. as the U.S. dropped its for Yemen,” he said. led coalition with modest sup- available means to avert a
ger a broad humanitarian crisis, Initially, the U.A.E. assured appeal for a de-escalation and Mr. Mattis told Pentagon port for the fight in Yemen. U.S. catastrophic military assault
derail new efforts to broker a the U.S. and United Kingdom instead turned its focus to- reporters on Monday that he pilots carry out midair refueling on Yemen’s major port city of
peace deal and leave as many that it wouldn’t target the port ward ensuring that an ex- backed that view. operations for coalition war- Hodeidah by the Saudi-led co-
as 250,000 people dead. without support from both pected assault doesn’t make Mr. Mattis has privately ex- planes that use American-made alition, and to present Con-
Martin Griffiths, the U.N. Western allies. But that changed things worse for Yemen. pressed reservations about the weapons to carry out airstrikes gress with immediate clarifi-
special envoy for Yemen, has over the weekend when the Mr. Pompeo said he had looming operation, according to in Yemen. The U.S. shares lim- cation regarding the full
been working to broker a last- U.A.E. said its forces near the made clear to Emirati leaders the people familiar with the ited intelligence with the Saudi- scope of the U.S. military in-
minute agreement for the U.N. port had come under attack. the U.S. “desire to address their talks, but others in the Trump led coalition, including informa- volvement in that conflict,”
to manage the port, according Top Trump administration security concerns while pre- administration see the U.A.E. tion used to pinpoint hospitals, said a copy of the letter re-
to people familiar with the officials have expressed strong serving the free flow of human- military moves as a chance to mosques, U.N. offices and other viewed by The Wall Street
talks, but the U.A.E. appeared concerns about the U.A.E.’s ef- itarian aid and lifesaving com- give the Gulf nation more bar- locations meant to be off-limits Journal.
to be moving forward with its forts to target the port, but mercial imports.” gaining power in peace talks. for airstrikes.
VIETNAM NEWS AGENCY/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Vietnamese lawmakers on Tuesday voted to require web firms to store user data in the country.
Vietnam Tightens Web Grip

With New Cybersecurity Law
BY JAMES HOOKWAY Twitter Inc. The group has Chi Minh City, Hanoi and other
warned that the measures cities said they were worried
Vietnam’s plans to vigor- could deter investment and that companies from Viet-
ously police the internet took undermine local businesses nam’s historic rival, China,
a step forward when it ad- that have profited from a would use the proposals to get
opted a cybersecurity law that boom in social media in recent a foothold in the country.
requires internet companies years In some areas, cars were
such as Facebook and Google The U.S. Embassy in Hanoi, torched outside police sta-
to store their Vietnam-based
users’ data on servers in the
meanwhile, warned last week
that the law “might not be
tions. The government pledged
to review the plans. $ 75
country. consistent with Vietnam’s in- Some of the demonstrators
Critics say the new law
could make it easier for au-
ternational trade commit-
ments,” notably with the
had also railed against the cy-
bersecurity law, but there was
OFF
thorities in the one-party com- World Trade Organization. little prospect of Vietnam’s
munist state to track down Tuesday’s vote at the Na- government relenting on that CODE: AIR6E
critics online. Legislation measure. Offer Ends 07/15/2018
passed by the National Assem- Late last year, Hanoi intro-

bly also requires internet com- duced a new 10,000-strong cy-
panies to open offices in the
Critics say the ber unit called Force 47 to pa-
country, which they have been measure could make trol the web to counter what it
hesitant to do, in addition to described as any “wrongful
removing content within 24
it easier to track opinions” about the govern-
hours at the government’s re- down online critics. ment.
quest. The country has increased
Last year, China enacted a the penalties for anyone using
law requiring that cloud data Facebook as a platform to at-
from China-based consumers tional Assembly, which is tack the government.
be stored in the country, widely regarded as a rubber In November, a young blog-
sparking worries about pri- stamp for the government, ger was given a seven-year
vacy. And Vietnam has steadily was conducted amid strict se- prison sentence for “spreading “With the Molekule running, I wake up rested and
increased scrutiny of what is curity, with police placing bar- propaganda against the state.” clear-headed, with no congestion.”
posted online as Facebook’s ricades at the roads leading to Another, Nguyen Ngoc Nhu - Michael Rockwell
reach has grown. the building. Quynh, has begun a hunger
Both Facebook Inc. and Vietnam has seen a surge in strike against her treatment in
Google, owned by Alphabet protests in recent days over prison, according to her One of Time Magazine’s 25 best inventions of 2017
Inc., have long flagged their plans to allow foreign compa- mother. Ms. Quynh was sen-
opposition to the law through nies 99-year land leases at tenced to 10 years in June last Molekule.com
the Asia Internet Coalition, strategic sites. Many of the year for protesting the gov-
which also includes companies thousands of demonstrators ernment’s inaction on environ-
such as Apple Inc., Yahoo and who took to the streets of Ho mental issues.
WORLD NEWS WORLD WATCH
U.K. Leader Dodges a Brexit Loss

GREECE
Deal Is Reached on
‘North Macedonia’
Vote limits Parliament’s on withdrawal was reached. Greece and Macedonia agreed
In a concession to the reb- to rename the Balkan country
FROM TOP: PARLIAMENTARY RECORDING UNIT/AFP/GETTY IMAGES; STEFAN ROSSEAU/PA/ZUMA

say in negotiations els, ministers signaled they “North Macedonia” in a break-
with the European will consider his proposals through that could end a bitter
for inclusion in the final leg- 27-year-old dispute and pave the
Union, vindicating May islation—a step that could way for expansion of the North
reduce the risk of a disor- Atlantic Treaty Organization and
BY JASON DOUGLAS derly exit. the European Union.
AND STEPHEN FIDLER A defeat for Mrs. May The deal, reached between
would have injected a fresh Greek Prime Minister Alexis
LONDON—British Prime dose of uncertainty into the Tsipras and his Macedonian
Minister Theresa May nar- process of untangling the counterpart Zoran Zaev, calls for
rowly escaped a bruising par- U.K. from the EU. Greece to lift its longstanding
liamentary defeat on Tuesday The U.K. is scheduled to veto over NATO and EU mem-
over her Brexit strategy, see- leave the EU in March next bership talks with its neighbor.
ing off a challenge that year and multiple aspects of The accord must be ratified
would have given lawmakers the divorce agreement and by referendum in Macedonia and
a much greater say over ne- the U.K.’s future relationship by both countries’ parliaments.
gotiations with Brussels. to the bloc have yet to be Nationalists in both countries
Yet deep divisions remain agreed. Mrs. May’s cabinet is oppose any compromise and
in London over the terms of split over whether to seek could derail it. Messrs. Zaev and
Britain’s withdrawal from the close ties or opt for a more- Tsipras are to sign their accord
European Union, with several decisive break. on Saturday at Lake Prespa on
tricky issues still unresolved The parliamentary pitfalls the countries’ border.
almost two years after voters for Mrs. May haven't yet —Nektaria Stamouli
chose to exit from the EU in passed. Lawmakers are due and Marcus Walker
a referendum. Brexit minister David Davis spoke in the debate in the Commons. Below, a reprieved Theresa May. to vote Wednesday on legis-
Mrs. May is scheduled to lative amendments that CONGO
discuss progress with fellow May’s ruling Conservatives— would oblige the government
European leaders at a sum- who inflicted a defeat on the to seek closer ties with the Court Orders Release
mit in Brussels later this government in a similar vote EU on customs than it says it Of Ex-Vice President
month. in December—mostly fell into wants, though analysts ex-
Lawmakers on Tuesday line after senior officials pect her to see off that chal- International Criminal Court
were asked to consider an pledged to listen more lenge, too. judges ordered the interim re-
amendment to the govern- closely to their concerns that The political drama was lease of former Democratic Re-
ment’s flagship Brexit legisla- Parliament doesn’t have a big heightened earlier Tuesday public of Congo Vice President
tion that would have given enough role in the Brexit when a junior minister in Jean-Pierre Bemba days after he
Parliament the power to re- process. Mrs. May’s administration re- won an appeal of his conviction
ject whatever Brexit agree- Chief among those con- signed from his post, citing on charges of war crimes and
ment Mrs. May strikes with cerns is what happens if Mrs. unease over the govern- crimes against humanity.
Brussels and dictate fresh May comes back from negoti- ment’s Brexit strategy. Mr. Bemba’s 18-year sentence
terms for renewed negotia- ations empty-handed. The Phillip Lee, a junior minis- was overturned Friday, but he had
tions. rebels, led by former attor- ter in the Justice Department remained in custody because he
Mrs. May’s victory was ney general Dominic Grieve, who supported remaining in is awaiting sentencing in another
slim—324 lawmakers voted want to prevent the U.K. the EU during the 2016 refer- case in which he was convicted of
down the proposition, with crashing out of the EU with- endum, said the departure, as interfering with witnesses.
298 voting in favor—and out a deal. currently pursued, would Meanwhile, President Joseph
came only after her govern- Mr. Grieve on Tuesday damage businesses in his dis- Kabila won’t seek a third term in
ment made concessions to majority in an election last Ministers had argued the suggested an alternative trict, west of London, and December elections because of
rebels from her own Conser- year. She has held on to amendment would have se- amendment to the legislation that he couldn’t allay the constitutional limits that prevent
vative Party. The narrow power thanks to the support verely weakened the U.K.’s that would give Parliament fears of the people in his him from running again, Prime
margin reflects the loss of of a small group of lawmak- hand in negotiations with extra powers in the event constituency about the out- Minister Bruno Tshibala said.
Mrs. May’s parliamentary ers from Northern Ireland. Brussels. Rebels in Mrs. that no political agreement come. —Associated Press
FROM PAGE ONE

Tesla to ital expenditures this year to
less than $3 billion from $3.4
billion last year. Its loss attrib-
evolved rapidly over the past
several years, which has re-
sulted in some duplication of
Cut 9% of utable to common shareholders

in the first quarter was $710
million, the fifth consecutive
roles and some job functions
that, while they made sense in
the past, are difficult to justify
Workforce quarter of record losses.

Tesla said the latest work-
force cuts are affecting all de-
today,” Mr. Musk said in his
memo.
He added: “We are also con-
Continued from Page One partments except production tinuing to flatten our manage-
nally reach the goal of making workers. They come as Tesla ment structure to help us com-
5,000 Model 3 sedans a week prepares to launch other vehi- municate better, eliminate
by the end of June—a rate that cles over the coming years. Mr. bureaucracy and move faster.”
BRIAN MOLYNEAUX FOR THE WALL STREET JOURNAL
if maintained would allow the Musk has said he expects to re- Under a flat management
company to show a profit in veal the Model Y compact structure, employees work for
the third and fourth quarters, sport-utility vehicle in March, top leaders with few layers of
he has said. ahead of production planned to managers in between.
“What drives us is our mis- start in the first half of 2020. Mr. Musk has already taken
sion to accelerate the world’s He also has said production of command of several significant
transition to sustainable, clean the company’s tractor-trailer roles at the company, includ-
energy, but we will never truck and new sports car, the ing oversight of vehicle pro-
achieve that mission unless we Roadster, will be in 2020. duction from Mr. Field in
eventually demonstrate that we “Cutting your way to profit- April, and the sales and ser-
can be sustainably profitable,” ability as you try to grow and vices divisions in February fol-
Mr. Musk wrote in the email to launch vehicles is very diffi- lowing the departure of Jon
employees Tuesday. “That is a cult,” Dave Sullivan, an analyst McNeill as Tesla’s president of
valid and fair criticism of for AutoPacific Inc., said. “It The job cuts are mostly aimed at salaried staff and won’t affect production workers. global sales.
Tesla’s history to date.” seems like a strange time to cut His moves are being closely
Mr. Musk made similar com- unless you have promises about to market, and from companies of absence. Tesla has lost sev- gressive hiring pace through tracked both by short sellers
ments in May after burning profitability for Q3 and your working to develop competing eral other high-profile execu- the first months of 2018, hit- betting the company will fail
through more cash in the first revenue can’t support current self-driving car technology. On tives since the beginning of ting a total of about 40,000, ac- to turn into a major automo-
quarter than analysts had ex- staffing levels.” Twitter, Mr. Musk acknowl- 2017, including the chief finan- cording to a person familiar tive player, and by supporters
pected. At the time, he also re- “Cutting heads will likely edged that he was losing good cial officer, who has been re- with the effort. who believe in his vision of a
iterated statements that he only lead to more delays, more people. “I think they will find placed. Tesla had previously indi- future where electric-powered
didn’t want to raise more stress and lower morale,” Mr. new jobs quickly,” he said. The auto maker finished cated that it finished 2017 with cars are driven by computers.
cash—even as several analysts Sullivan said. In May, Mr. Musk told work- 2017 with about 37,500 employ- more than 9,000 production- The latter group has won out
said Tesla will have to do so. Tesla is facing increased ers he planned to change the ees, a sharp increase from pre- line workers—but that was be- so far, pushing Tesla’s market
The company finished the competition from traditional management structure of the vious years as it expanded its fore a hiring spree to make up value to over $50 billion, rival-
first quarter with $2.7 billion in auto makers, such as Porsche company following the abrupt ambitions and acquired Solar- for failed efforts to automate ing that of General Motors Co.,
cash on hand. Tesla announced and Jaguar, which are racing to decision by Tesla’s chief engi- City Corp., the solar-panel the Model 3 assembly line. which sells far more vehicles
it was paring back planned cap- bring their own all-electric cars neer, Doug Field, to take a leave maker. Tesla continued an ag- “Tesla has grown and and is profitable.
Meditation ple.”
Desperate to maintain
streaks that can surpass 1,000
Headspace co-founder and for-
mer Buddhist monk Andy Pud-
dicombe, calling this group a
“I’m fairly certain that there
is no precedent for this in tradi-
tional Buddhist practice,” said
Grows days, some driven spiritual voy-

agers have started looking for
new ways to protect their re-
small minority. “My hope is
that 99% of members are using
it not because they just want to
Benjamin Brose, associate pro-
fessor of Chinese religions at
the University of Michigan.
Competitive cords. On Headspace, the app

counts any session completed in
an eight-hour period as its own
reach a higher number. It’s
more about our intention and
our relationship with the run
“Many monks meditate every
day for decades, and I have
never heard of anyone keeping
day. Pointing this out, a user on streak rather than the run track.”
Continued from Page One Facebook suggested logging streak itself.” Pavlok, which sells wearable
GETTY IMAGES/ISTOCK
board to see who has meditated three days in one by meditating Mr. Puddicombe said his electronic shocking devices to
the most days in a row. A habit- at 4 a.m., 2 p.m. and 11 p.m. training at a Tibetan monastery help people change their behav-
tracking website charges the On Mindful Makers, a private in northern India featured ior, suggests meditation as one
credit cards of meditators if online group of roughly 250 streak-like exercises to foster of the top uses for its wrist-
they miss their sessions too of- meditators, members can check accountability. He recalled writ- bands, which cost $145 to
ten. One company is pitching the streak rankings daily. Robin ing down the number of times $245.
meditators on a wristband that Koppensteiner was in second Some meditators try to keep streaks going as long as possible. he completed certain mantras Nicholas Rozier, Pavlok’s 37-
reminds them to practice and, if place with 71 days at the start or visualizations every day. year-old director of operations
they don’t, gives them a mild of this week. Members are Some people are using goal- The guidelines for what Streaks are big business for based in Moscow, Idaho, said he
electric shock. trusted to report their own tracking services like Bee- counts toward a meditation Headspace and Calm, which sell cranks his device to 100% to re-
Streaks are rampant on apps meditation updates. minder, which charges fees streak can be loose; the compa- access to audio-guided medita- mind himself to meditate at 7
such as Headspace and Calm, “I have to admit I check ev- when users don’t stick to new nies allow a broad swath of tions and other features for a.m. for 10 minutes six days a
which are designed to log and ery day to see if I’m still in habits, including meditation. mindfulness exercises to qualify. $12.99 a month, or less depend- week. If he fails to log a session,
display the consecutive days a number two or if I’ve gone up Michael Merchant, a 29- Among them: a Headspace ses- ing on the package. Headspace which he self-reports, he gets
user has meditated or practiced to number one,” said the 29- year-old San Francisco tech en- sion on eating mindfully and a and Calm report roughly 30 two zaps of 450 volts of elec-
mindfulness. Meditation, which year-old author from Vienna, trepreneur, found the site help- bedtime story on Calm read by million and 26 million down- tricity on the inside of his left
can mean different things to Austria. ful about five years ago even actor Jerome Flynn, who plays loads of their apps, respectively. wrist. He said it feels like a bee
different people, is a more fo- For him to rise, current though he “felt so much shame” the deadly fighter Bronn on At Calm, Mr. Acton Smith sting.
cused state than mindfulness, streak leader Jason Leow must when he lost $810 after repeat- “Game of Thrones.” said, purists on staff don’t want Ultimately, all streaks are
which is a state of calm atten- fall. Mr. Leow, a 39-year-old de- edly failing to practice mindful- To maintain their records, bedtime stories to count toward made to be broken.
tion to the present. sign consultant from Singapore, ness an hour a day. He could some people just let the audio the tally since some users won’t Amanda Bralley, a 37-year-
“There’s something deep in posted a tally of 88 days this have logged false data but de- for an app’s meditation session even be awake for them. old mother from Alpharetta,
the human psyche about want- week, a record for the group. cided to come clean. play on their phones while Headspace, which added its Ga., messed up her 18-day med-
ing to compete and keep a He said he wouldn’t mind being “It’s weird to admit, but it they’re, say, watching TV. streak counter at customers’ re- itation run while focused on her
streak going,” said Calm co- dethroned. “We’re all winners was kind of cathartic,” said Mr. “People have said, ‘I don’t quest in 2014, soon will give us- teenage daughter. “Today is
founder Michael Acton Smith. when we meditate together,” he Merchant. “I’ve paid for my want to lose my streak...I put it ers the option to hide the tally #Day1 again,” she wrote on
“It really helps motivate peo- said. screw-up. Literally.” on, but I didn’t meditate,’ ” said if it creates too much pressure. Twitter. “Namaste y’all.”
THE WALL STREET JOURNAL. NY Wednesday, June 13, 2018 | A9
WORLD NEWS
Man Is
Charged
Italy to Ferry 500 Migrants to Spain
BY GIOVANNI LEGORANO
In Nobel ROME—Hundreds of mi-

grants whose boat was denied
Scandal entry to Italy will be trans-

ported to Spain by Italian
Coast Guard and Navy vessels,
BY DAVID GAUTHIER-VILLARS a possible resolution to an in-
cident the new Italian govern-
Swedish prosecutors filed ment has used to highlight its
rape charges against a French- tough stance on migration.
man at the center of a The 629 migrants were
monthslong sexual scandal picked up off the coast of Libya
that led the institution that last weekend by a boat run by
awards the Nobel Prize for Lit- migrant-aid group SOS Medi-
erature to cancel this year’s terranee, but the Italian gov-
award. ernment on Sunday refused to
Jean-Claude Arnault, a pho- allow the vessel to dock. That
KENNY KARPOV/SOS MEDITERRANEE/ASSOCIATED PRESS

tographer and cultural figure left the migrants stranded un-
in Sweden, was charged with til Spain offered to take them,
raping a woman twice in although it wasn’t clear how
Stockholm in 2011, a prosecu- they would get there.
tor said Tuesday, citing “ro- Italian officials said Tuesday
bust and sufficient” evidence. that two ships operated by the
Mr. Arnault has denied the Coast Guard and Navy would
accusations. His lawyer, Björn take 500 of the migrants to the
Hurtig, didn’t respond to mes- Spanish port of Valencia. The
sages requesting comment. rest will be taken by the aid
The scandal erupted last vessel, which has received food
year when 18 women accused and supplies from Italian au-
the photographer of sexual as- thorities.
sault and harassment between Italy’s new government, a
1996 and 2017, leading Swed- coalition between the anties- Stranded migrants aboard an Italian coast guard vessel. Officials said ships would take 500 of the migrants to the Spanish port of Valencia.
ish prosecutors to investigate. tablishment 5 Star Movement
The Swedish Academy, and the hard-right League, has grants from Africa and the urged Malta to take the mi- medical emergencies. The ple.”
which awards the literature pledged to halt mass migration Middle East and to deport half grants, but the small nation United Nations is supply- The Italian government’s
prize, was drawn into the to the country. a million migrants now on Ital- shrugged off the request, saying staff to assist the minors position has won popular sup-
scandal because it was financ- The new interior minister is ian soil. ing it wasn’t its responsibility. on the boat. port at home, with the League
ing events at Mr. Arnault’s cul- Matteo Salvini, head of the As such, Rome views Spain’s The Italian Coast Guard said “Teams relieved that solu- getting a strong showing in lo-
tural club, and because his League, who has become a ris- offer to take the migrants as a it estimates the boats will take tion starts to be found,” SOS cal elections on Sunday. The
wife, Swedish poet Katarina ing star in Italy for his tough victory, as it has been pressing four days to reach Valencia. Mediterranee said on Twitter. party’s support in nationwide
Frostenson, sat on the acad- stance on migration. The new Europe to more equitably Italian authorities said doctors “However, results are unneces- opinion polls has risen
emy’s jury. government promises to stem share the burden of seaborne will be on the Coast Guard ship sary prolongation of time at to 27% from the 17% it won in
The academy stopped fund- the flow of undocumented mi- migration. Italy had earlier to give assistance in case of sea for already vulnerable peo- March parliamentary elections.
ing the club, but disagreement
emerged among jury members
over whether Ms. Frostenson,
a co-owner of the club, should
be removed.
Court Affirms Guilt of King’s Brother-in-Law
Several members, including BY JEANNETTE NEUMANN a member of the royal family to dozens stemming from Spain’s ruption ruling tied to the prop-
Ms. Frostenson, left the acad- orchestrate a kickback scheme property boom years, when erty boom to oust the former
emy, but a question remained as MADRID—A top Spanish tied to public contracts. banks financed a construction prime minister and install its
to whether jury members knew court upheld most of a graft The judges dismissed a lower binge that collapsed in 2008 af- own leader as premier.
JOAN LLADO/ASSOCIATED PRESS

about the accusations before conviction against the king of court decision convicting Mr. ter a decade of overbuilding. The investigation into Mr.
they became public last year. Spain’s brother-in-law in a Urdangarín of falsifying docu- Court rulings and investiga- Urdangarín’s finances ensnared
Citing findings by a law case that has tarnished the ments, lowering his prison sen- tions show members of the po- his wife, Princess Cristina, ex-
firm it hired to conduct an in- monarchy’s image. tence by several months to five litical and business establish- posing the monarchy to criti-
dependent investigation, the The Supreme Court ruled on years and 10 months. ment seized on the surge in real cism that the country’s elites
academy has said “unaccept- appeal a ruling that Iñaki Ur- Mr. Urdangarín, an Olympic estate spending to inflate con- were using their positions to
able behavior in the form of dangarín, the husband of Prin- handball medalist turned busi- struction contracts, for in- profit. In an attempt to shield
unwanted intimacy had indeed cess Cristina de Borbón, was nessman, can appeal to another stance, and then illegally profit the monarchy, King Felipe
taken place, but the knowledge guilty of misuse of public funds, top court. from kickback schemes. stripped his sister and brother- Iñaki Urdangarín can appeal his
was not widely spread in the influence peddling and tax The case against King Felipe Earlier in June, the center- in-law of their titles of Duchess conviction on graft charges to
academy.” fraud for using his standing as VI’s brother-in-law is one of left Socialist Party used a cor- and Duke of Palma in 2015. another top court in Spain.
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A10 | Wednesday, June 13, 2018 * ***** THE WALL STREET JOURNAL.
THE SINGAPORE SUMMIT
After Offenses, a Charm Offensive

BY CHUN HAN WONG
White
House
SINGAPORE—As President
Donald Trump and North Ko-
Assures
rean leader Kim Jong Un exuded
mutual warmth during a Tues-
day summit, with beaming
On Drills
smiles and breezy back-patting, BY BEN KESLING
months of distant bickering dis- AND MICHAEL R. GORDON
solved in close-up bonhomie.
Over the past year, the two The White House said Tues-
leaders traded taunts, insults day that the U.S. military would
and war threats as Washington continue to train with its South
pressed Pyongyang to give up Korean counterparts and con-
nuclear weapons. duct military drills—but not
Though both men started large-scale, joint exercises—in a
KEVIN LIM/THE STRAITS TIMES/GETTY IMAGES
playing nice as they prepared clarification of an offer by Pres-

to meet for the first time, ten- ident Donald Trump to North
sions kept simmering as Mr. Korea’s leader Kim Jong Un.
Trump swung between cancel- The clarification, coming
ing and restoring plans for the while Mr. Trump was still fly-
Singapore summit at the 11th ing back from his summit with
hour. Mr. Kim in Singapore, was is-
Then, on Tuesday, summit sued by a White House official
stagecraft signaled a tilt toward after Vice President Mike
full-on diplomatic niceties, por- Pence spent much of the day
traying the septuagenarian meeting with lawmakers who
president and the 30-something sought to understand what the
dictator as equals in the glare of After trading taunts, insults and war threats over the past year, President Donald Trump and North Korean leader Kim Jong Un president had promised.
the global limelight. turned chummy in Singapore, conducting their negotiations at the Capella Hotel on Tuesday with a casual demeanor. Mr. Trump said at a Tuesday
The proceedings started with news conference in Singapore
a red-carpet handshake just af- that for the duration of talks,
ter 9 a.m., against a backdrop of he was stopping U.S. “war
KEVIN LIM/THE STRAITS TIMES/AFP/GETTY IMAGES
U.S. and North Korean flags. As games,” which he said were

the two leaders approached “tremendously expensive” and
each other from opposite ends provocative to North Korea.
of a hotel walkway, Mr. Trump The offer wasn’t part of the
reached out first for a hand- joint statement between
ANTHONY WALLACE/PRESS POOL
shake. Messrs. Trump and Kim, and

Grasping hands for roughly was criticized by some lawmak-
13 seconds, they exchanged ers for giving away too much.
pleasantries while Mr. Trump Mr. Pence met in closed ses-
briefly placed his left hand on sion with GOP lawmakers, and
Mr. Kim’s right arm. Both men some later said he told them
appeared relaxed as they chat- that “regular readiness train-
ted, smiling broadly at times. ing and training exchanges”
Their casual demeanor con- would continue, according to a
tinued as they retreated away told Mr. Trump, through a two luxury cars—a Mercedes mony, where Messrs. Trump and qualities. Twitter message by Sen. Cory
from the cameras for a private translator. “Many people in the and a Maybach—for this sum- Kim signed a joint declaration By the president’s reckoning, Gardner (R., Colo.).
chat, seated on wooden chairs world will think of this as a mit, peered inside Mr. Trump’s on denuclearizing North Korea, since Mr. Kim ascended to Late Tuesday, a White House
with cushions and separated by scene from a fantasy…science armored limousine. In a mo- the two leaders exchanged a power in North Korea, he has official clarified Mr. Pence’s
a small flower-topped table. fiction movie.” ment captured by television firm handshake and put their “run it, run it tough,” a feat that comments, saying: “The VP was
Just before journalists left Emerging from a working cameras, Mr. Trump gestured to hands on each other’s backs. Mr. Trump said only one in asked about force readiness
the room, the two leaders shook lunch, the two leaders strolled a Secret Service agent to open a Even after parting ways with 10,000 people would be capable and said that while the semian-
hands, and Mr. Trump flashed a through a hotel garden, briefly rear passenger door of his presi- his North Korean counterpart, of. nual war games would cease—
thumbs-up at Mr. Kim. unaccompanied by aides or dential ride, allowing Mr. Kim a Mr. Trump kept up the charm The president said Mr. Kim assuming parameters of the
“I think the entire world is translators. quick glimpse. offensive by expressing admira- was making “a first bold step to- deal are met—regular readi-
watching this moment,” Mr. Kim Mr. Kim, who brought along At the end of a signing cere- tion for Mr. Kim’s leadership ward a brighter future.” ness training would continue.”
Tricky Path Document Offers

China and Russia were quick
to suggest that sanctions on
and disrespectful, the president
said, to pursue the “war games”
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
North Korea be relaxed as nego- even though defense officials

New Relations and
Ahead After Security Guarantees
tiations progress which, if that
were to happen, could ease eco-
nomic pressure on North Korea
have said they are needed to
maintain training for an ever-ro-
tating staff of U.S. and Korean
Agreement Q: WHAT’S IN THE AGREE-

MENT THE TWO LEADERS
before any tangible progress on
the process for denuclearization
has been made.
military who participate.
The move appeared to sur-
prise many at the Pentagon and
Continued from Page One SIGNED? Prime Minister Shinzo Abe of South Korean officials. Mr.
this year—not the president’s A: The two leaders committed to Japan, after talking by phone Trump’s critics accused him of
“maximum pressure” campaign establishing “new U.S.-DPRK rela- with Mr. Trump, called the making a major concession be-
against Pyongyang—and said tions in accordance with the desire meeting a success but said it fore winning anything concrete
the two leaders accepted each of the peoples of the two coun- needed to be followed by swift from Mr. Kim.
other’s invitations to visit their tries” for peace and prosperity. action. “We will seek full imple- South Korea’s Defense Minis-
respective countries. President Donald Trump mentation of U.N. Security try said it was trying to deter-
The report, published early committed to providing unspec- tary exercises with South Korea. than anybody could have ex- Council resolutions based on the mine the meaning of Mr.
Wednesday, put a distinctly ified “security guarantees” to He also said Mr. Kim had pected—top of the line,” Mr. success of this historic meet- Trump’s remarks, and a senior
North Korean spin on the meet- North Korea, and North Korean agreed to destroy a missile-en- Trump said. He lauded Mr. Kim ing,” he said late Tuesday. South Korean national-security
ing between the two leaders, leader Kim Jong Un reaffirmed gine testing site. as “a very worthy, very smart While Mr. Trump said the official said “nothing has
the first between a sitting U.S. his “unwavering commitment negotiator” and a “very tal- economic sanctions will re- changed” on the exercises.
president and a leader of North to complete denuclearization.” Q: WHAT WAS THE MOOD? ented man” who loves his main, he said that a key link in Voicing concern, Japan’s de-
Korea. The report also quoted They said they would “join A: Chummy, at least as far as country. the sanctions chain—North fense minister Itsunori Onodera
Mr. Kim as saying that, if the their efforts” to establish “a Mr. Trump was concerned. The Korea’s border with China— said Wednesday that the exer-
U.S. were to take “genuine mea- lasting and stable peace re- two men shook hands for 13 Q: WHAT’S NEXT? had weakened recently, refer- cises play an important role in
sures for building trust,” then gime” on the Korean Peninsula. seconds in front of the cam- A: Mr. Trump said the two men ring to administration charges preserving peace in East Asia.
the North could reciprocate in a eras, Mr. Trump patted Mr. Kim would meet again “many that China’s enforcement of A White House official said
“commensurate” fashion—a Q: WHAT ELSE DID THEY on the back, and he emerged times,” and said he would invite sanctions has eased, which Tuesday that the U.S. military
clear suggestion that U.S. con- COMMIT TO? effusive about his counterpart. Mr. Kim to the White House. Beijing denies. would continue to train with its
cessions would have to come A: Mr. Trump later told report- “We had a really fantastic The U.S. president said he ex- “I think, over the last two South Korean counterparts and
before any North Korean move. ers the U.S. would cease “tre- meeting, a lot of progress, re- pected they would have a “ter- months, the border is more conduct military drills—but not
Tuesday’s agreement, which mendously expensive” joint mili- ally very positive. I think better rific relationship.” open than it was when we first large-scale, joint exercises.
Mr. Trump described as “very started,” Mr. Trump said. “But The clarification, coming
comprehensive” after decades of that is what it is.” while Mr. Trump was still flying
failed U.S. efforts, provided al- “We’re prepared to start a summit that he was open to vis- Trump and Kim signed Tuesday Mr. Trump, taking a step out- back from Singapore, was issued
most no particulars on how to new history and we’re ready to iting Pyongyang and was ready didn’t set deadlines for action. side the formal U.S.-North Ko- after Vice President Mike Pence
come to a denuclearization that write a new chapter between to welcome Mr. Kim to the Still to be answered are when rean agreement, said he would spent much of the day meeting
was complete, verifiable and ir- our nations,” Mr. Trump said. White House. Mr. Pompeo and North Korea will turn over its stop U.S. and South Korean mili- with lawmakers who sought to
reversible—oft-stated U.S. goals. As a result of these talks, Mr. national security adviser John nuclear weapons, how the U.S. tary exercises—an important understand what the president
Mr. Trump said he would main- Kim said, “the world will see a Bolton plan to meet next week, will verify that step, when puni- signal for deterrence for South had promised.
tain economic sanctions but major change.” possibly with their North Ko- tive economic sanctions will be Korea and a constant irritant for A Pentagon spokeswoman
would stop the “war games” Mr. Trump, who described rean counterparts, to discuss lifted and what type of U.S. se- the North—while negotiations said Defense Secretary Jim Mat-
with South Korea as negotia- Tuesday’s talks as honest, direct next steps, the president said. curity guarantees will be offered are under way. tis had been consulted on the
tions with the North continue. and productive, said after the The document Messrs. to Pyongyang. It would be inappropriate move and was behind it.
SINGAPORE MINISTRY OF COMMUNICATIONS AND INFORMATION/REUTERS
Gamble of judged is the Iran nuclear

agreement negotiated under
former President Barack
should be wary of sitting
down with “two-bit dictators,”
but added that doing so was
Kim legitimacy and interna-
tional recognition up front. He
also gave up something by an-
never before shown in letting
the world look inside its most
sensitive operations. Eventu-
Summit Obama—one that Mr. Trump

has belittled and discarded
despite some detailed verifica-
necessary “once North Korea
had nuclear weapons” and the
missiles to carry them.
nouncing that the U.S. will
stop holding joint military ex-
ercises with South Korea
ally, the process also will re-
quire agreement on issues
ranging far from nuclear mat-
Embrace tion provisions.

The Iran precedent, as well
as the uncertainty ahead,
Still, the one indisputable
accomplishment of Tuesday’s
meeting is that it took the U.S.
while diplomacy plays out, re-
moving an irritant and grant-
ing a favor to North Korea.
ters. Though the two leaders
agreed to a framework for
peace between their countries,
Continued from Page One prompted cautious reac- and North Korea off a path to- Implicitly, Mr. Trump is also they didn’t agree to a plan to
leaders personally expose tions—and even some rum- ward war, which they seemed giving up, for now, military formally end the Korean War.
their reputations and run the blings of unease—from Mr. to be walking just a few threats against North Korea. That is a tricky process that
risks that come with shaking Trump’s allies on the right. months ago, and Mr. Trump’s Yet it is also important to will involve protecting the in-
hands on a big world stage. Senate Majority Leader Mitch friends and foes alike cheered remember that Mr. Trump terests of South Korea and
This time, Mr. Trump is do- McConnell hailed “a historic that. “It was a welcome im- didn’t give up the most pow- Japan as well the U.S.
ing the opposite. The Trump- first step in an important ne- provement to see the two of erful card he holds: He didn’t The diplomacy ahead will
Kim handshake happened at gotiation.” But in a statement, them having a dialogue rather agree to roll back any eco- have to take into account the
the outset, and it is to be fol- he also pointedly said he than engaging in name calling Kim Jong Un got no immediate nomic sanctions on North Ko- wishes of the biggest party
lowed later by agreement on backed the American goal of and saber rattling,” said Dem- relief from economic sanctions. rea. That is the prize Mr. Kim not in the room in Singapore:
the tough details. There is no “‘complete, verifiable and irre- ocratic Sen. Chuck Schumer. is seeking above all others, China. The Chinese are un-
agreement yet on how to ver- versible denuclearization of The scene that unfolded at personal relationship is key. and it hasn’t been provided. doubtedly pleased that Mr.
ify the North Korean promise the Korean Peninsula,” and the summit in Singapore That proposition will be That will leave the U.S. Trump talked Tuesday of po-
to “denuclearize,” how to cautioned: “If North Korea spoke loudly to Mr. Trump’s tested in coming months and with significant leverage in tentially withdrawing Ameri-
make that agreement irrevers- does not prove willing to fol- belief in his own ability to size Mr. Trump suggested a couple the negotiations ahead. If his- can troops in South Korea,
ible, or when the U.S. will lift low through, we and our allies up other leaders and then of times on Tuesday that it tory is a guide, Washington but they also will insist on
economic sanctions. Those are must be prepared to restore move them in his direction in will take six months to figure will need that leverage be- being dealt into the diplo-
the key elements of an actual the policy of maximum pres- personal negotiations. An in- out whether the effort will cause the path from the matic process that lies
deal, and they have been left sure.” ternational agreement on nu- succeed. Meanwhile, he in- framework signed by Messrs. ahead—and they have the
for the underlings to resolve Similarly, GOP Sen. Tom clear arms isn’t a real estate sisted, “we haven’t given up Trump and Kim to a full, de- ability to disrupt it if they
going forward. Cotton, a vociferous critic of deal, but Mr. Trump has sug- anything.” tailed agreement will be long aren’t happy.
As Mr. Trump well knows, the Iran nuclear deal, told gested in this case that he That isn’t quite true. Mr. and difficult. In sum, the war clouds
the standard against which conservative radio host Hugh doesn’t see the dynamic as so Trump gave up one of his It will require a degree of have dissipated. The weather
any such final deal will be Hewitt that generally the U.S. different. In each case, the strongest cards by giving Mr. openness North Korea has ahead is hard to predict.
THE WALL STREET JOURNAL. * * * * * * Wednesday, June 13, 2018 | A11
THE SINGAPORE SUMMIT
U.S. Deal Tests Ties With Asian Allies

South Korea, Japan
Flashpoints
try to assess Trump’s President Trump said he would end joint military drills with South
plan to scrap military Korea, a source of security for allies and tension for their neighbors.
exercises in the region 200 miles
R U SS I A
200 km
BY NIHARIKA MANDHANA
CHINA
SINGAPORE—President
Donald Trump and North Ko-
rean leader Kim Jong Un de-
clared the “opening up of a NORTH
new future” for their countries U.S. allies hosting
KO R E A American troops
after talks on Tuesday. But
their agreement also raised
new and complex questions for SOUTH
Washington’s regional allies, KO R E A
ISSEI KATO/REUTERS
J A PA N
chiefly Japan and South Korea.
In a joint statement, Mr.
Trump “committed to provide
security guarantees” to North
Korea, a key subject of con-
cern for the U.S.’s partners The governments of Japanese Prime Minister Shinzo Abe, above right, and South Korean President Moon U.S. military bases
and one with potentially far- Jae-in, below center, are assessing President Trump’s plan to end war games around the Korean Peninsula.
reaching consequences for South Korea
Asia’s security landscape. South Korea appeared unaware of Mr. Trump’s plans to end the
The document didn’t give de- exercises. He also said he would like to eventually bring home the
tails of what was promised, but 28,500 U.S. troops based there.
Mr. Trump said in a press con-
Japan
ference later that military exer-
Tokyo has pressed the U.S. to stick to a hard line until North Korea
cises with South Korea would
be canceled, in a conciliatory completely denuclearizes, which could take years.
move to Pyongyang that breaks China
with longstanding U.S. policy. China had already suggested the U.S. end the drills in tandem
BAE JAE-MAN/YONHAP/ASSOCIATED PRESS
“Under the circumstances with North Korean steps to lower tensions, and praised
when we are negotiating a Tuesday's agreement.
very comprehensive, complete
deal, I think it’s inappropriate North Korea
to have war games,” Mr. Past U.S. military exercises with South Korea elicited virulent
Trump said. He described the protests and threats from North Korea.
exercises as “provocative” and
Russia
“tremendously expensive.”
Russia praised the U.S. move to end war games, saying it was
South Korea’s Defense Min-
necessary to ease tensions on the peninsula, Reuters reported.
istry appeared unaware of Mr.
Trump’s decision and on Tues- THE WALL STREET JOURNAL.
day said it was still trying to
determine the exact meaning “The amount of money we current negotiations, but Talks over North Korea’s however, left most of the tough clearization and security as-
of his remarks. spend on that is incredible,” Mr. stressed that he ultimately nuclear disarmament are being negotiations for future talks. surances,” Mr. Wi said.
Japan’s defense minister Trump said. “South Korea con- wanted to “get our soldiers seen as a test of Washington’s Wi Sung-lac, Seoul’s former U.S. officials have sought to
expressed concern Wednesday. tributes, but not 100%, which is out.” He added: “I’d like to be commitment to its Asian allies. envoy on nuclear issues and a allay concerns in recent weeks
“U.S.-South Korea exercises certainly a subject we have to able to bring them home.” Leif-Eric Easley, a professor visiting professor at Seoul Na- and said that a drawdown of
and the U.S. military presence talk to them about also.” Japan and South Korea at Ewha University in Seoul, tional University, said South U.S. troops in South Korea
in South Korea have an impor- Fumio Ota, a retired Japa- weren’t participants in Tues- said Tuesday’s deal will raise Korean officials would have to would depend on negotiations
tant role in the peace and se- nese admiral and member of a day’s talks. The two have de- concerns in Tokyo about the re- drill into the question of between Seoul and Washington.
curity of East Asia,” Defense foreign-policy think tank in To- pended on the Trump adminis- duction of military exercises and “what would be given by Mr. A troop withdrawal “would
Minister Itsunori Onodera told kyo, said Mr. Trump had “con- tration to protect their interests. a loosening of sanctions aimed Trump to Kim Jong Un in ex- serve the North Koreans very
reporters in Tokyo. ceded too much to North Ko- Mr. Trump has upended U.S. at Pyongyang “while leaving in change for denuclearization.” well in terms of their security
Mr. Trump articulated a rea” without extracting foreign policy, antagonizing place North Korea’s current ca- Of particular concern, Mr. concerns, it would serve the
transactional approach to U.S. “concrete commitments” from the country’s closest partners pabilities that threaten Japan.” Wi said, were U.S. “security Chinese in terms of pushing
security partnerships, speak- Pyongyang on denuclearization. and raising questions about Mr. Onodera said Tues- assurances” to Pyongyang, out American influence in the
ing at length about the ex- “Military exercises are a Washington’s reliability as an day that “we definitely which would affect America’s region, but it would deeply
penses involved in flying U.S. very strong bargaining chip and ally. Last week, the U.S. refused shouldn’t let down our guard military presence in the re- concern the Japanese,” said
combat aircraft from Guam to a way to pressure North Ko- to endorse the final communi- until we can confirm that spe- gion, from the future of U.S. Stephen R. Nagy, a senior as-
South Korea “to practice and rea,” Mr. Ota said. “Mr. Trump qué of the Group of Seven in- cific actions have been taken.” forces based in South Korea to sociate professor in the De-
drop bombs all over the place should not have given it up.” dustrial nations summit and Mr. Trump appeared up- the deployment of U.S. aircraft partment of Politics and Inter-
and go back to Guam,” playing Mr. Trump said a draw- Mr. Trump lashed out at Cana- beat and said the process of de- carriers and nuclear subma- national Studies at the
down the strategic signifi- down of U.S. troops based in dian Prime Minister Justin nuclearization was “going to go rines. “The heart of the game International Christian Univer-
cance of the collaboration. South Korea wasn’t a part of Trudeau over trade differences. very quickly.” The document, is the exchange between denu- sity in Tokyo.
Student’s Parents Lawmakers Await More Details

Hope for ‘Something BY JESSICA DONATI
AND BYRON TAU
Positive’ From Death WASHINGTON—Republi-

can members of Congress re-
acted to President Donald
BY JON KAMP son’s death. Trump’s meeting with North
They have said their son Korea’s leader Kim Jong Un
TOM WILLIAMS/CQ ROLL CALL/NEWSCOM/ZUMA PRESS
The parents of Otto Warm- was “brutally tortured and with cautious optimism, say-
bier, the American college stu- murdered” while in North Ko- ing they supported the goals
dent who died nearly a year rean captivity for more than a outlined in the joint communi-
ago following his imprison- year. qué the two signed after the
ment in North Korea, Mr. Trump has also said summit, but noted that it
said they hoped his death their son was “tortured be- lacked detail and was only a
would lead to “something pos- yond belief.” starting point for negotiations.
itive,” as the U.S. pursues di- Mr. Warmbier died in June Democrats also noted the
plomacy aimed at nuclear dis- 2017 at age 22, shortly after lack of specifics in the two-
armament in the secretive returning home to Ohio in a page statement, which reas-
country. coma. serted North Korea’s commit-
President Donald Trump, He had been detained at ment to denuclearization in
speaking after Tues- Pyongyang’s airport in Janu- exchange for unspecified U.S.
day’s summit meeting with ary 2016 as he was preparing security assurances, saying the
North Korean leader Kim to leave the country after a summit had legitimized a bru- Sen. Lisa Murkowski, standing, said the meeting was significant but noted the statement was vague.
Jong Un, said Mr. Warmbier’s tour. tal regime and failed to make
death had been a catalyst He was initially sentenced progress on the nuclear issue. bility on the peninsula. vague promises that do not sion” in agreeing to halt joint
that helped make the talks to 15 years of hard labor after They also criticized Mr. Sen. Tom Cotton (R., Ark.) approach a clear and compre- military exercises with South
possible. The president also the North Koreans said he al- Trump’s decision to unilater- said he believed the “proof of hensive pathway to denuclear- Korea. He said a scorecard at
cited his friendship with the legedly defaced a political ally suspend military exercises the pudding will be in the eat- ization and nonproliferation.” this stage of the game would
family. poster. with South Korea without con- ing,” saying the next large- Sen. Brian Schatz of Hawaii, show the North Koreans “way
“Otto did not die in vain,” His parents’ lawsuit, filed in sulting with Seoul. scale joint military exercise which is believed to be within ahead on points” for having
Mr. Trump said. “He had a lot federal court in April, said “Only time will tell if North wasn’t scheduled until spring range of North Korea’s missiles, been treated as equals in ne-
to do with us being here to- doctors concluded his brain Korea is serious this time, and of 2019. said the president’s positive gotiations on the world stage.
day.” was severely damaged because in the meantime we must con- “I suspect by that point, comments about the North Ko- Robert Einhorn, a former
Mr. Warmbier’s parents of a lack of blood flow and tinue to apply maximum eco- we’ll have, well before that rean leader reflected an “abdi- U.S. negotiator on North Ko-
said in a statement issued by that he was beyond recovery. nomic pressure,” said House point, actually, we’ll know cation of American leadership,” rea’s missile programs and
their attorneys: “We appreci- The exact cause of his inju- Speaker Paul Ryan (R., Wis.), whether Kim Jong Un is seri- calling them “embarrassing.” special adviser on nuclear is-
ate President Trump’s recent ries during his detention re- referring to the sanctions ous about these commitments,” “What did we get? Do we sues to the Obama administra-
comments about our fam- main unclear. His parents are framework the U.S. and allies he said. “I believe that Donald get something later? Because tion, said calling off war
ily. We are proud of Otto and seeking damages to be deter- have imposed on North Korea. Trump is going to continue the it looks like [Mr. Kim] got all games with South Korea might
miss him. Hopefully some- mined by the court. Sen. Lisa Murkowski, an campaign of maximum pres- the stuff. Does our stuff get make sense, but it should have
thing positive can come from The lawsuit said North Ko- Alaska Republican, said that sure, and he will not grant one- announced in a few months?” been planned with Seoul.
this.” rea falsely claimed Mr. Warm- “while the joint statement is sided unilateral concessions.” Mr. Schatz, a Democrat, wrote Victor Cha, who helped
Mr. Warmbier’s parents, bier contracted botulism and short on details, the signifi- Senate Minority Leader on Twitter shortly after the oversee North Korea policy in
Fred and Cindy Warmbier, are that he then was given a cance of the meeting cannot Chuck Schumer (D., N.Y.) and President George W. Bush’s
suing North Korea over their sleeping pill. be understated.” other Democrats expressed second term and is now a
Several other Republicans doubt that the meeting would Georgetown University profes-
played down Mr. Trump’s an- lead to any concrete results.
Republicans and sor, said the meeting was just
nouncement he would cancel “What the United States has Democrats alike said a first step on a long road
joint military exercises with gained is vague and unverifi- ahead, and previous negotia-
South Korea. able at best. What North Korea
the two-page tions had gone further.
“I don’t think canceling a has gained, however, is tangi- statement was vague. “This is the bare bones of
war game is going to matter ble and lasting,” Mr. Schumer an agreement on denucleariza-
over the arc of time,” Sen. Lind- said on the Senate floor. “Pres- tion. On paper the commit-
sey Graham of South Carolina, ident Trump has granted a ment is less than we have got
a senior Republican on the Sen- brutal and repressive dictator- summit concluded. before in 2005 and 1994,
SHANNON STAPLETON/REUTERS
ate Armed Services Committee, ship the international legiti- Away from Capitol Hill, vet- though this time it comes
told NBC. “The one thing that I macy it has long craved.” erans of the Washington for- from the leader directly,” Mr.
would violently disagree with is House Minority Leader eign-policy establishment had Cha told The Wall Street Jour-
removing our troops.” Nancy Pelosi (D., Calif.) said a range of opinions. nal. “Success will be deter-
Mr. Graham noted that two Mr. Trump had inappropri- Former National Security mined by Pompeo’s ability to
previous Korean peace sum- ately elevated North Korea to Agency and Central Intelli- put some meat on the bones.
mits—in 2000 and 2007— the equal of the U.S. “The gence Agency director Michael Otherwise it’s just a photo op.”
failed to end nuclear-weapons president handed Kim Jong Un Hayden said the U.S. had made —Louise Radnofsky
Cindy and Fred Warmbier, parents of Otto Warmbier testing or secure lasting sta- concessions in exchange for a “pretty significant conces- contributed to this article.
LIFE&ARTS
ARTS
From Wreckage to Reunion

Dozens of Hagenbeck- Nearly half of its roughly 15,000
BY JOHN JURGENSEN
Wallace Circus seasonal workers are foreign. But
performers and one-third of the industry’s visa re-
Forest Park, Ill. workers were killed in quests went unfilled last year.
DURING THE EARLY hours of a 1918 train crash, Some things that carnivals com-
June 22, 1918, a locomotive with a above. The Circus Hall pete with are relatively new—casi-
sleeping engineer at its controls of Fame in Peru, Ind., nos, Netflix, smartphone apps—but
plowed into the back of a circus brought a 100-year- the core challenges haven’t
train near Gary, Ind., smashing old wagon, left, to the changed drastically.
through cars filled with sleeping centennial, where “We’re not that much different
passengers and sparking a fire Father John than farmers and ranchers. We’re
that spread through the wreckage. Vakulskas Jr., below seasonal, we depend on the
Eighty-six men, women and right, was among weather, and all our money comes
children were killed, and more the attendees. At in a short amount of time,” says
than 120 were injured. The dead Woodlawn Memorial Guy Leavitt, current president of
CLOCKWISE FROM TOP LEFT: RICHARD J. REYNOLDS III COLLECTION; THE HAMMOND PUBLIC LIBRARY OF HAMMOND, INDIANA; DAVID KASNIC FOR THE WALL STREET JOURNAL (3)
included a lion tamer, strongmen, Park, below left, a the Showmen’s League.
a trapeze artist and clowns, along plot called Showmen’s Mr. Leavitt’s children represent
with workers who set up and Rest is meant as a the third generation of his family
broke down the traveling Hagen- final home for to work for Ray Cammack Shows,
beck-Wallace Circus, one of the entertainers. a carnival operator started in 1961
biggest in the U.S. at the time. by his father-in-law.
Though it remains one of the The arcana of their industry
most deadly railroad disasters in unites “show people” almost as
U.S. history, the train wreck is also In the cemetery, much as the family ties. Mr. Drew,
remembered for what happened plaques commem- who operates Drew Exposition, a
next. It spurred other circuses to orate the victims, traveling amusement park based in
send performers that helped some with nick- Augusta, Ga., was so enamored of
Hagenbeck-Wallace put on shows names or circus a ferris wheel made for the 1962
scheduled as soon as two days af- duties. “Baldy” World’s Fair that he put an illus-
ter the crash. The tragedy also ral- lies next to “4 tration of it on his company’s let-
lied a fraternal order of entertain- Horse Driver.” terhead before he bought one.
ers, the Showmen’s League of Dozens are anony- “My mouth would drop open to
America, that continues to pre- mous, bearing look at that machine,” said Mr.
serve traditions of outdoor show only a number and Drew, 72 years old, whose company
business and honor its dead. “Unknown Male” began with one carousel purchased
“We’re all traveling people. or “Unknown Fe- by his mother and father in 1948.
That’s the thread,” says Jimmy male.” The Showmen’s League has
Drew, who furnishes rides to fairs At a podium be- about 1,100 members, down from a
in 10 states. Of the kinship with side a live circus peak of about 1,500. These days it
the 1918 circus casualties, he says, band and a cen- puts more of a priority on grant-
“we have to remember who we tury-old gilded ing college scholarships and other
were to know where we’re going.” horse cart, Father John Vakulskas The Showmen’s League straddles visas. Carnivals and circuses rely services, but it still offers a burial
Showmen’s League members, Jr. led a prayer as League mem- two worlds. Consider its headquar- heavily on these seasonal employ- ground. There are many plots re-
many of them operators of family- bers laid out a flowered wagon ters. Eight years ago it bought a ees to run each summer. maining at Showmen’s Rest.
owned carnivals that travel the wheel with a missing spoke, a building in Chicago’s former meat- “It’s extremely hard to get good At the cemetery, Mr. Johnson
country, gathered last month at symbol of loss. packing district, Fulton Market, labor that will travel, pass a drug pointed out the plot he bought for
Woodlawn Memorial Park in this Mr. Vakulskas is a Catholic which soon took off as one of the test, a criminal background check himself. It is steps away from the
Chicago suburb to mark the cen- priest who travels the country city’s trendiest neighborhoods. The and only work six months,” says Bill graves of the Hagenbeck-Wallace
tennial of the wreck. In a coinci- ministering to the carnival com- group’s airy office, where a large Johnson, a former Showmen’s wreck victims and right next to
dence that forever linked the 105- munity—blessing rides, leading painting of its first president, Buf- League president and the owner of that of his late mentor, Bill Knight.
year-old group to the disaster, the masses, baptizing the children of falo Bill Cody, greets visitors, is Fantasy Amusement Company, a 33- Mr. Knight brought Mr. Johnson
Showmen’s League bought a ceme- itinerant workers. He wore a stole across the street from a Google of- year-old amusement park that oper- into the business, hiring him at
tery plot shortly before the wreck. embroidered with a carousel fice and near some of Chicago’s hot- ates around Illinois and Indiana. age 12 to pick up balls on the milk-
It named the plot Showmen’s horse, a ferris wheel and other test restaurants and bars. There are an estimated 250 or- bottle game and later manage a
Rest, intending it as a final home emblems of traveling shows. When members assemble, they ganized carnivals in the U.S., part dart game for a cut of the profits.
for entertainers, many of whom Afterward, he spoke of linger- are just as likely to talk about new of a broader mobile amusement in- “I’ll be honored to be close to
were rootless. That June, however, ing misperceptions about carnival rides, games and food trailers as dustry generating an annual $3.15 him,” Mr. Johnson said. “Hopefully
the League offered it as a mass workers and why they take of- business concerns, especially the billion in revenue, according to in- we’ll see each other again some-
grave for those who died in the fense at “carny.” “It’s a pejora- federal cap on the number of non- dustry trade group the Outdoor day and cut a few jackpots,” carni-
Hagenbeck-Wallace wreck. tive,” he said. agricultural guest workers granted Amusement Business Association. val lingo for swapping stories.
MY RIDE | By A.J. Baime
A CLASSIC DATSUN Z GETS A HOLLYWOOD ENDING

John Naveira of Burbank, Calif.,
an executive vice president at Sony
Pictures, on his 1972 Datsun 240Z,
as told to A.J. Baime.
At work, my parking spot is at
the bottom of a 94-foot tall rain-
bow sculpture in Culver City. The
rainbow is a nod to “The Wizard
of Oz,” which was filmed on what
is now the Sony Pictures lot in
the late 1930s. When I park my
240Z there everyone can see it,
and the symbolism is obvious. It is
like a pot of gold at the end of
the rainbow.
DAVID WALTER BANKS FOR THE WALL STREET JOURNAL
It was 2012 when my son came

home and told me he saw a Dat-
sun 240Z for sale three blocks
away. The Z has always been an
important car for me, but I had
never owned one. When I was in
junior high, a neighbor parked her
red Z next to my mother’s Chevy
Impala, and I fell in love with that
car. My wife once owned a 280Z,
and both of her brothers have
owned 240Zs.
I took a look at this car in my
neighborhood, snapped photos and
John Naveira stands with his 1972 Datsun 240Z in his work parking spot, in front of a 94-foot tall rainbow sculpture near the Sony Pictures lot. Please turn to page A14
LIFE & ARTS

EXHIBITION REVIEW
The Man Who Made Vienna Modern

BY A. J. GOLDMANN
Vienna
ONE HUNDRED YEARS ago, as
World War I drew to a close and
the Austro-Hungarian Empire
breathed its last, Viennese Mod-
ernism lost four of its main propo-
nents, Gustav Klimt, Egon Schiele,
Koloman Moser and Otto Wagner.
Of these luminaries, it was
Wagner, a bold and uncompromis-
ing architect and urban planner,
who left the most indelible mark
on the fabric of this city. His
greatest works, many of which
line these streets, are marked by
their creator’s inimitable gift for
uniting elegance, sophistication Gottlieb Theodor Kempf von
and utility. In the Austrian Postal Hartenkampf’s ‘Portrait Otto Wagner’
Savings Bank (Österreichische (1896), below
Postsparkasse), completed in 1912,
a futuristic fusion of marble, alu-
minum and glass that is perhaps
his most celebrated building, Wag-
ner created a Gesamtkunstwerk
for the modern age whose every
detail (down to the furniture that
Wagner designed) expressed the
belief that a life spent in “interi-
ors executed in the styles of
past centuries” was an “artistic
absurdity.”
“The only possible point of de-
parture for our artistic creation is
modern life,” Wagner insisted in
1895. Striving for a “harmonization
of art and purpose,” he achieved a
WIEN MUSEUM (3)

revolutionary synthesis of design,
material and function that not only
helped define the architecture of
his age, but had a world-wide im-
pact on urban planning. One of Wagner’s subway pavilions at Karlsplatz, above, and his ‘View of the City Museum on Karlsplatz’ (1907), top
On the centenary of his death,
Vienna is honoring Wagner with
two ambitious and insightful ex- Academy of Fine Arts in 1894, he ar- despite his famous aversion for the ment to the Machine Age. Alumi- such a city, his thinking about infi-
hibits. Though independently cu- gued that “The realism of our time sort of modernist ornament that num is the defining material, from nite urban expansion can easily be
rated, they demand to be seen in must penetrate the work of art.” Wagner often employed, admired the nearly 17,000 caps that punctu- applied to Asia’s megalopolises.
conversation with each other. Carl E. Schorske, in his ground- the elder architect. Learning about ate the marble and granite façade The exhibit also discusses Wag-
The first and more immediately breaking “Fin-de-Siècle Vienna: Poli- the projects that never came to to the statuesque vents prominently ner’s lasting influence as a teacher.
satisfying is at Wien Museum tics and Culture” (1980), called pass, it’s easy to share Loos’s bitter- displayed in the atrium-like ca- At the Academy of Fine Arts, he
Karlsplatz, Vienna’s city museum. Wagner’s buildings and projects ness. Then again, what Wagner did shier’s hall, a sleek and airy marvel taught a generation of the multi-
It takes us on a tour of the archi- that responded to the changing so- manage to achieve in Vienna is of iron, glass and light. ethnic empire’s most brilliant
tect’s major projects and commis- cial rhythms and psychological nothing short of breathtaking. Wagner’s aluminum vent, its minds. Along with the celebrated
sions—including many that were problems and necessities of modern Wagner’s grandest accomplish- function aestheticized, is a fore- Josef Hoffmann, his pupils in-
never realized—with a combina- life “functional futurism.” ment is arguably Am Steinhof, the runner of the revolutionary exte- cluded the pioneering Czech mod-
tion of thoroughness and elegance. In 1897, Wagner found common psychiatric hospital in the western rior Renzo Piano designed for the ernist Josef Gočár and the vision-
The exhibit is a coup for the ground with the Vienna Secession part of the city built between 1903 Pompidou Center in Paris. This is ary Hungarian István Medgyaszay,
Wien Museum, an excellent and and its anti-traditional aims. This and 1907. Much of Wagner’s one of the constructive connec- who transmitted Wagner’s philoso-
unfairly neglected venue in this can be seen in the sinuous and flo- thought about the form and functions made in “Post-Otto Wagner: phy throughout Mitteleuropa.
museum-saturated city. This loca- ral Art Nouveau details in many of tion of the modern metropolis From the Postal Savings Bank to A full immersion in the Wagner
tion can also boast a special con- Wagner’s projects from the turn of comes together on the generously Post-Modernism,” a sprawling universe, as presented in these
nection to Wagner, who spent a the century, including the largest appointed sanatorium grounds, show at the Austrian Museum of shows and reflected in the city he
decade drafting plans for a City commission of his career, the Vi- which contain 60 pavilions laid Applied Arts/Contemporary Art ushered into the modern age, un-
Museum on Karlsplatz. His bold enna Metropolitan Railway, for out in a grid. At its peak stands that examines the global impact of derscores Schorske’s assessment
designs (thwarted by conservative which Wagner designed 42 via- the Church of St. Leopold, with Wagner’s work. It makes clever, that Wagner “hammered out ideas
officials) are presented in great ducts, 78 bridges, 15 tunnels and stunning stained glass by Moser persuasive comparisons between of urban life and form whose influ-
detail in the show’s largest gal- 36 stations. While many of the gate and angels with golden wings be- designs by the Viennese master ence is still at work among us.”
lery. A handsome 500-plus-page buildings for the elevated subway neath a gilded-iron cupola. At the and architectural visionaries from
exhibit publication also doubles as lines saw the light of day, only two opening, a journalist quipped, “Is Le Corbusier to Robert Venturi and Otto Wagner
the first complete catalogue of his ornate pavilions for the unit not a beautiful irony of fate that Denise Scott Brown, and discusses Wien Museum Karlsplatz, through Oct. 7
raisonné of Wagner’s realized and derground lines—in white marble the first sensible Secessionist Wagner’s theoretical plans for the
unrealized projects and designs. festooned with green iron and building in Vienna has been built “unlimited city,” the elastic me- Post-Otto Wagner: From the Postal
Wagner rebelled against the his- gold—at Karlsplatz were realized. for the insane?” tropolis of the future, laid out in Savings Bank to Post-Modernism
toricism that had held sway over “Browsing through his life’s Back in the heart of Vienna, the an unsentimental grid, that he con- Austrian Museum of Applied Arts/
liberal Vienna and had inspired its work, you might weep tears at rage Postal Savings Bank was the only sidered the logical outcome of Contemporary Art, through Sept. 30
most remarkable architectural at these magnificent ideas never re- chance that Wagner ever got to modernism and industrialization.
achievement, the Ringstrasse alized and at the designs chosen transform the historicist character Though Wagner was wrong to pre- Mr. Goldmann writes about
Boulevard. In a speech given at the above his,” wrote Adolf Loos, who, of the Ringstrasse. It is a monu- dict that Vienna would become European arts and culture.
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.
Edmonton
d t 60s 40s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 5 Minute 36 Avoid like the
50s
50s 6 Pieces of eight? plague
Vancouver
Vancouve Calgary 70s 50s 0s 14 15 16
60s 60s 10s 37 Tent for rent, say
17 18 7 “Filthy” gain
Winnipeg
ip
60s Seattle 20s
8 Expression of 38 Performer’s
P
Por d
Portland Montreal 30s 19 20
concession verve
Helena
l 80s
50s Bismarckk 40s 39 Unremarkable
70s Billings 60s Ottawa 70s Augusta
A g t 21 22 23 24 25 26 27 9 Place of high
Eugene
g 60s
p s /St. Paul
pls
Mpls./St. Albany
A bany
b
ban 50s elev.
i
Boise Pierre Toronto
T t
Boston
28 29 30 42 Fed. ID
80s 80s rtford
Hartford 60s
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Milwaukee t
Detroit Buffalo 10 Book jacket 43 Stands
90s Sioux Falls
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New Yorkk 70s 31 32 33 34
100s Reno 90s Salt Lake
Lake City
C
City Des Chi
es Moines Chicago Clev d
Cleveland 80s Philadelphia feature, often uncomfortably
Cheyenne Ph
hil d lph
hi 80s
Sacramento
Omaha h Indianapolis
Indianapo
p Pit b h
Pittsburgh 35 36 37 38 39 11 Williams of close to
Denver 80s Kansas shington
hington D.C.
h
Washington DC
90s
an Francisco
San i 70s Topeka City Springfield
p g Richmond
h d 40 41 42 “Game of 44 “Ugh, that’s
Charles
Ch
h l t
Charleston 100+
70s Las 100s Colorado
C d h
Wichita St.. Louis L
Lo
Louisville Raleigh
l i gh
h
Thrones” awful!”
Ve
Vegas Springs
p 43 44 45 46 47
A
Ange
Los Angeles Ch l tt
Ch
Charlotte 12 Bikini Atoll trials
45 Precocious
Santaa Fe
F phi Nashville
Memphis h ill 90s
Ph
Phoenix Albuquerque
Ab q q Oklahoma
kl oma City
C
City
48 49 50 51 52
13 Early explorer of swimmers
San Diego 100s A
Atlanta Columbia
C l bbi Warm Rain
Little Rockk the southeastern 46
Tucson
T c
D ll
Dallas Birmingham 53 54 55 “Shoo!”
Ft. Worth Cold T-storms U.S.
P
El Paso 90s Jackson
Jack
Mobile
bil Jacksonville 56 57 58 59 60 61 62 47 Spot
30s A ti
Austin 90s
16 Montreal Mrs.
40s t
Houston Stationary Snow 50 Jag or Buc
w Orleans
l l d
Orlando 63 64
50s
New
Tampa
18 Stud setting
80s San
an Antonio
80s 51 Omit
60s Showers Flurries 65 66 67 21 Reunion
A h g
Anchorage
Honolulu
l l Miami phonetically
60s 70s greeting
Ice 52 Digit associated
GETTIN’ PIGGY WITH IT | 22 ___ about with the starts of
By Samuel A. Donaldson (roughly)
U.S. Forecasts City
Today Tomorrow
Hi Lo W Hi Lo W City Hi
Today Tomorrow
Lo W Hi Lo W
this puzzle’s five
longest answers
s...sunny; pc... partly cloudy; c...cloudy; sh...showers; 23 Soup served with
Omaha 84 67 pc 93 74 t Frankfurt 69 51 pc 75 57 pc Across 28 Tech company 49 Just in time
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice sushi 54 Have creditors
Orlando 91 72 t 91 73 t Geneva 65 52 sh 71 54 pc 1 Words before that sells 53 Good name for
Today Tomorrow Philadelphia 83 66 pc 83 62 s Havana 87 73 t 86 73 t ClearPath 24 F’s enharmonic
City Hi Lo W Hi Lo W a hike a mechanic 57 Networking
Phoenix 110 86 pc 107 83 s Hong Kong 85 79 r 85 80 sh mainframes
Anchorage 64 50 pc 67 52 s Pittsburgh 81 57 t 79 55 s Istanbul 82 69 s 84 70 s 7 Trunk offshoot 25 Course pro? connections
55 One that gets a
Atlanta 87 71 t 88 72 pc Portland, Maine 75 60 sh 75 52 pc Jakarta 93 78 t 91 76 t 29 “With luck!” scoop 26 Strong desire, 58 Midsummer baby
Austin 96 73 pc 95 74 pc Portland, Ore. 67 52 sh 69 52 pc Jerusalem 74 64 t 81 62 s 11 “The Lighter
Baltimore 85 65 pc 83 60 s Sacramento 98 56 s 92 54 s Johannesburg 62 38 s 63 41 s Side of...” 31 “My word!” 56 Nightgown with “the” 59 Target of some
Boise 91 55 s 76 53 s St. Louis 86 66 t 88 71 pc London 72 57 pc 71 52 sh magazine student walkout
Madrid 78 53 pc 80 57 s 32 Not quite wearer of poem 30 Short breaks
Boston 76 66 sh 80 57 s Salt Lake City 97 73 s 94 64 s
Burlington 78 61 c 68 49 sh San Francisco 74 56 pc 70 55 pc Manila 85 79 r 87 79 t 14 “Be right bug-free 63 Desperation signs
32 Watson’s creator
Charlotte 88 71 pc 92 70 pc Santa Fe 94 64 pc 89 58 pc Melbourne 57 47 sh 56 48 r there” 60 Floors in a ring
Chicago 81 60 s 82 62 pc Seattle 66 52 r 67 52 pc Mexico City 70 59 t 71 58 t 35 Deli creations 64 Clue heading 33 Called before
Cleveland 82 61 pc 80 59 s Sioux Falls 80 59 s 87 72 t Milan 77 61 t 81 63 t 15 Frisbee sport 40 Ended the same 61 Believer
Dallas 95 77 pc 96 77 pc Wash., D.C. 87 70 pc 84 64 s Moscow 66 46 pc 65 43 pc 65 Ave. 34 Where dreams
Denver 92 60 pc 95 61 s Mumbai 90 85 t 91 82 t 17 Laissez-faire way intersectors are made? 62 Scrollwork shape
systems
Detroit
Honolulu
83 60 pc 83 59 s
87 75 pc 88 75 pc
International Paris
Rio de Janeiro
65
86
52 pc 69 56 pc
68 pc 75 68 sh
41 Hit show 66 Pretty miffed
Previous Puzzle’s Solution
Houston 94 76 s 91 76 pc Today Tomorrow Riyadh 106 80 s 106 79 s 19 Verges on designations
67 Dough raisers E L A T E S T U B S H A S
Indianapolis 86 58 pc 83 63 pc City Hi Lo W Hi Lo W Rome 75 61 t 76 62 t 20 Seller of 43 Dice R E G A N A I S L E A R E
Kansas City 82 64 pc 90 71 s Amsterdam 64 55 c 67 54 r San Juan 90 79 s 90 77 s Down S M A L L S C R E E N R E X
Las Vegas 107 82 s 106 81 s Athens 91 72 s 92 71 s Seoul 80 66 pc 82 62 c Aerotype 46 Banded E M I L I A E R A G D A Y
gasoline in 1 That guy A N E S T S C R O D
Little Rock 90 70 t 90 73 pc Baghdad 106 81 s 109 82 pc Shanghai 92 70 c 85 71 pc metamorphic S T O WS H E A R T S
Los Angeles 84 63 s 83 63 s Bangkok 91 79 sh 90 79 t Singapore 87 80 t 89 80 pc the 1930s rock 2 Italian article F I S T R A C E B L I M P
Miami 85 77 pc 86 76 t Beijing 82 63 t 87 67 s Sydney 67 52 c 67 54 s I N A H I G H T E A V E E
Milwaukee 78 59 s 77 61 pc Berlin 67 53 pc 74 57 pc Taipei City 89 78 c 83 75 r 21 Back track? 48 Unwanted 3 Black goo A C C R A E M T S P E N D
Minneapolis 80 60 s 82 67 pc Brussels 67 50 pc 68 53 r Tokyo 77 66 c 76 66 pc T A K E I N O U T T A
Toronto 81 57 t 76 54 s
27 Hirsute TV basement 4 Disapproving L E R O I A R I A S
Nashville 88 71 t 90 70 c Buenos Aires 52 38 pc 51 36 pc S T U D S C H D I N N E R
New Orleans 90 73 pc 88 75 pc Dubai 104 89 s 104 89 s Vancouver 65 52 r 65 52 pc cousin dweller sound W O N A H E A D O F T I M E
New York City 79 68 c 82 61 s Dublin 67 55 pc 66 47 pc Warsaw 74 59 pc 76 59 pc A R C N E U R O L E T I N
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
Oklahoma City 88 69 pc 92 70 s Edinburgh 63 56 pc 60 49 pc Zurich 62 48 sh 72 52 pc N O H A S P E N E R A S E

A14 | Wednesday, June 13, 2018 * *** THE WALL STREET JOURNAL.
LIFE & ARTS
FOOD | By Ellen Byron
The Great Egg
FROM TOP: GETTY IMAGES/ISTOCK PHOTO; KATE GORMLEY (2)

Shell Game
Government advice on whether eggs are healthy sometimes
contradicts nutrition experts
ARE EGGS GOOD for you or not? each day, one for breakfast and one
It’s never been more confusing hard-boiled and sliced over a salad
for consumers to answer that at lunch. “When I eat eggs, they
seemingly simple question. Vilified make me feel so much fuller, it
for years for their high cholesterol keeps me from snacking and gives
content, eggs more recently have me energy,” she says.
broken back into dietary fashion. Egg brand Pete and Gerry’s Or-
Nutrition experts today are touting ganics is putting the health debate
eggs’ high levels of protein, essen- to the test, hoping to win the gov-
tial vitamins and nutrients like ernment’s blessing to label eggs
brain-booster choline. “healthy.”
Government guidelines some- “Eggs are among the most af-
times contradict nutrition experts’ fordable sources of protein and
advice as they play catch up with also have significant amounts of
the latest scientific findings. Di- other nutrients, including vitamin
etary advice from the U.S. depart- D and choline,” says a citizen’s pe-
ments of agriculture and health tition filed in April by CEO Mr.
and human services includes eggs Laflamme.
as part of a healthy diet, but also Americans are eating more eggs, but government guidelines on their healthiness can be confusing. The FDA, which has a broader
says cholesterol intake should be review underway of its definition
as low as possible. And the Food of “healthy” foods, acknowledged it
and Drug Administration says that As the health debate swirls, late last year added eggs to the research firm. Chilaquiles, a Mexi- received Mr. Laflamme’s petition.
eggs are too high in total fat, satu- Americans craving high-protein foods its members can eat without can dish that includes eggs, torti- “As the agency considers how to
rated fat and cholesterol to be la- foods are gobbling up more eggs. tracking. “It’s a high-quality pro- llas and salsa or mole, were listed modernize the definition and crite-
beled “healthy” by food marketers. Americans ate about 276 eggs per tein and good for satiety,” says on 10% of brunch menus in 2017, ria for use of the term ‘healthy’ in
It’s such a scrambled issue that person last year, up from 253 in Gary Foster, the company’s chief nearly double the percentage that food labeling, we are actively re-
one egg brand is petitioning for an 2000, according to the USDA’s per scientific officer. Members consis- listed it in 2007, Datassential says. viewing a large body of informa-
official government reassessment capita “disappearance” of eggs, a tently name eggs as their favorite Eggs on burgers now appear on tion and analyses,” a spokeswoman
of eggs. “There’s so much new sci- metric used to estimate long-term food on the untracked list, he says. 15% of menus, and pizzas topped said in a statement.
ence out there about eggs, it’s time consumption trends. “Eggs don’t feel so ‘diety,’” he says, with egg are listed on 11%. Mr. Laflamme’s petition was in-
for the FDA to get with the pro- Eggs can be a good source of noting that members are unlikely Instagram mentions of #eggs spired by one filed in 2015 by Kind
gram,” says Jesse Laflamme, chief protein and other nutrients, says to overeat eggs, unlike the tempta- number nearly 10 million. Johan LLC, a maker of fruit-and-nut bars,
executive of Pete and Gerry’s Or- Alice Lichtenstein, a member of the tion with cookies or donuts. Engman, owner of Breakfast Repub- which had campaigned for change
ganics, who filed a citizen’s peti- advisory committee for the govern- They’re also becoming more lic, a chain of seven restaurants in after it received a warning letter
tion urging the agency to rethink ment dietary guidelines who also fashionable. “Eggs have always the San Diego area, recalls trying to by the agency to stop using the
its ban on calling eggs “healthy.” serves as a spokeswoman for the been a restaurant and home figure out how to spruce up a tradi- term “healthy” on its packaging.
Eggs’ bad rap stems from their American Heart Association and a kitchen workhorse, but they have tional Mexican sandwich, mindful of Kind asserted that the FDA should
high cholesterol: One large egg professor of nutrition science and garnered new levels of respect,” how many of his patrons like to modify its criteria, in part because
yolk has 186 milligrams. U.S. guide- policy at Tufts University. But she David Sprinkle, publisher and re- post photos of their meals on social nuts, a main ingredient in many of
lines used to advise people to limit cautions that Americans should search director of market-research media. “We decided we needed to its snacks, naturally have more fat
dietary cholesterol to 300 milli- make sure they’re not also eating firm Packaged Facts wrote in a re- add eggs to make it look better,” he than the FDA standard allows. The
grams a day. The current advice re- more accompaniments like bacon, port last month, highlighting the says, ultimately serving it with the company noted that avocados,
moves that cap, after studies sausage and buttered toast. “You rising profiles of deviled eggs, frit- top bun pushed to the side so that salmon and eggs are also generally
showed that the cholesterol in food have to look at the whole consump- tatas and meringues in restaurants. two sunny side-up eggs sit atop the considered to be good for you, but
didn’t raise blood cholesterol levels tion pattern,” Dr. Lichtenstein says. Some 36% of restaurant brunch sandwich. don’t meet the FDA’s standard of
significantly. But the guidelines Eggs have gotten the blessing of menus offered eggs Benedict last Kate Gormley, a pharmaceutical “healthy.” In 2016, the FDA re-
still advise cholesterol intake be weight-loss company Weight year, up from 30% in 2007, accord- saleswoman in Richmond, Va., usu- scinded its demand that Kind re-
kept as low as possible. Watchers International Inc., which ing to Datassential, a food-trend ally eats two pasture-raised eggs move “healthy” from its wrappers.
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SPORTS
WORLD CUP 2018
CLOCKWISE FROM TOP: ILLUSTRATION BY MITCH O’CONNELL; ANDREY RUDAKOV/BLOOMBERG NEWS; MIKHAIL KLIMENTYEV/ASSOCIATED PRESS; GETTY IMAGES
Top row, Argentina’s Lionel Messi and Portugal’s Cristiano Ronaldo. Bottom row, Uruguay’s Luis Suárez, France’s Paul Pogba, Brazil’s Neymar, and England’s Harry Kane.
Messi, Ronaldo Banners on display

in Moscow. Below,
Russian President
Vladimir Putin.
Still Rule
The pinnacle of the game still belongs to a pair of cranky
geniuses who have never won the World Cup
they will both play in—Messi will be 34 in
BY JOSHUA ROBINSON AND
2022 and Ronaldo 37—it’s worth asking,
JONATHAN CLEGG
why hasn’t anyone else come along?
Plenty of players have aspired to join
them, but no one has been able to stay
FOUR YEARS is an eternity in the time there for more than a season or two. The
warp of international soccer. likes of Uruguay striker Luis Suárez, Brazil
In the time since the 2014 World Cup in playmaker Neymar and, lately, Egypt for-
How the World Cup

Brazil, whatever you thought you knew ward Mohammed Salah, all would concede
about the international game has aged that Messi and Ronaldo operate on a higher
worse than your iPhone 4. plane. World soccer is suffering from a tal-
The Netherlands, which came within a ent bottleneck.
Landed in Russia
penalty shootout of reaching the final, How this happened is down to every-
didn’t even make thing from the eco-
the field of 32 nomics of modern
teams for Russia. soccer to evolu-
Tournament main- tions in tactics and
stays Italy, Chile conditioning. But
and Cameroon also more than any- The value of the Russian ruble has fallen
BY JOSHUA ROBINSON
failed to make the thing, what ex- by half since 2010, amid a wider economic
grade this time plains Ronaldo and slowdown for the country. Its foreign policy
around—as did a Messi’s extended WORLD SOCCER has spent much of the means that it has fewer friends around the
plucky soccer up- reign over world past decade grappling with the fallout of world than a bear at a picnic. And on the
start known as the soccer is someone evening in Zurich in December 2010. sporting front, Russia has been embar-
U.S. Even the wun- thing that no one That was the night that disgraced FIFA rassed repeatedly by allegations of system-
derkind who scored else in the game’s president Sepp Blatter ripped open an enve- atic state-sponsored doping by its athletes,
the dramatic win- 150-year history lope to reveal that the World Cup racist behavior by its fans, and
ning goal for Ger- has been able to would be held in Russia in 2018. violent assaults by homegrown
many was left off match: uncanny That was the night, Blatter often hooligans.
their roster for this timing. says, when everything changed. “It’s something that we cannot
tournament. Russian Matryoshka dolls of Cristiano Ronaldo After bursting Since that night, when FIFA and do not underestimate,” FIFA
Only one thing and Lionel Messi are seen at a shop. on the scene in the also awarded the 2022 tourna- president Gianni Infantino said.
has remained stub- 2000s, their ca- ment to Qatar, several of Blatter’s He hopes, however, that his first
bornly unchanged, seemingly immune to reers coincided with the infiltration of per- Zurich guests have become defen- World Cup in charge since taking
the passing of time: The pinnacle of the formance metrics and high-level sports sci- dants in New York courtrooms, in- over from Blatter, will go
game still belongs to a pair of cranky ge- ence into the hidebound world of mates of federal prisons and, oc- smoothly once the games were
niuses who have never won the World Cup, international soccer. Combined with their casionally, tenants in foreign underway.
Lionel Messi and Cristiano Ronaldo. dedication to fitness (see: abs, Cristiano), cemeteries. But on Thursday, the “As soon as it kicks off, the fo-
“To compare players with Cristiano, that has allowed them to sidestep serious broadest consequence of that December cus will be on the pitch,” he said.
Messi, they’re in a different orbit, a differ- injury and extend their peaks into their 30s. night will kick in, affecting more than 700 That’s not necessarily good news for Rus-
ent stratosphere,” Real Madrid and Spain Some of the best players from earlier players, millions of traveling supporters, sia either, because right now, the Russian
defender Sergio Ramos said. generations saw their heydays cut short by and over a billion fans watching worldwide: soccer team is dreadful. The host nation has
They have been the best two players in alcohol (Paul Gascoigne), drugs (Diego Mar- The Russia World Cup is actually happening. tumbled to No. 70 in the world for the first
the world for a decade. Their preeminence adona), a penchant for the nightlife (Ron- “We will gift you with a real celebration time, making it the lowest-ranked team at
has been recognized over and over by fans, aldinho)--or in the case of Northern Ire- filled with sporting passion and strong its own party. Though it faces relatively soft
coaches, players and the people in shiny land’s George Best, all of the above. But emotions,” Russian President Vladimir Putin opposition in the opener here on Thursday,
suits who hand out the awards. The last Ronaldo and Messi have long followed com- said in a video welcome message last week. 67th-ranked Saudi Arabia, victory in that
time a player not named Messi or Ronaldo paratively abstemious lifestyles. Putin, who is more of a hockey fan than a petrodollar showdown is far from certain.
won the Ballon d’Or award for the game’s “For Ronaldo, there is only football,” says soccer man, hoped in 2010 that this world- The only people who aren’t fretting over it
top player was back in 2007. Carlo Ancelotti, who coached the Portuguese class extravaganza would at least become a might be Russia’s own players.
Their run of unchallenged dominance from 2013 to 2015. “When Real Madrid ar- showcase for his nation’s strength and “As soon as the Russian championship
also raises a puzzling question. Ahead of rives back from a road game, it is often 1 wealth. But the reality is that the interim ended,” said the country’s top striker, Fedor
what is almost certainly the last World Cup Please turn to page A18 has brought only world-class headaches. Smolov, “I turned off all the sports news.”
WORLD CUP 2018
How the
MAYBE YOU’RE HERE for Iceland, the many knock-down, drag-out fights between could face Germany as early as the round of
smallest nation ever to make it to the World heavyweights, that’s by design. Under FIFA’s 16, should one of them fail to win its respec-
Cup. Maybe you’re here for Panama, who new seeding system, most of the big boys tive group.
32 Teams
qualified at the expense of the U.S. Or maybe were kept apart in the draw. That means the Of course, this tournament is also notable
you’re here for Brazil, because Brazil is al- knockout rounds should be wild. for the teams that won’t be there, including
ways here. With few obvious stumbling blocks for the Italy, the Netherlands, and the U.S. But few
No matter who you are rooting for, you favorites in Russia—namely Spain, Germany, will be sparing any thoughts for them in
Stack Up
are guaranteed to see all 32 teams stick France, and Brazil—all of the heavy-hitters Russia. Here’s a look at the 32 teams that
around for at least half the tournament, be- should make it to at least the third week of did make the cut.
cause everyone plays at least three games. the tournament. And then, anything can hap- —Joshua Robinson, Jonathan Clegg,
Now, if the group stage seems to lack pen. France could meet Argentina or Brazil Andrew Beaton
Group A Group B
Russia (FIFA ranking 70) Portugal (4)

Russia is the worst-ranked team in the tournament, sitting at No. 70 Portugal wasn’t a popular winner when it con-
in the FIFA world rankings. Its squad is among the oldest with an av- quered the Euros two years ago. It played un-
erage age of nearly 29 and only two of its players are based outside the dis- imaginative, stultifying soccer and didn’t win a single
tinctly mediocre Russian league. Luckily for the hosts, they landed in the game in regulation until the semifinal stage. But somehow, it
weakest group at the World Cup--but even that could prove less hospitable worked. Two years later, the team is no more exciting. But Cris-
than January in Siberia. Igor Akindeez tiano Ronaldo is coming off a third straight Champions League ti-
tle with Real Madrid and looking to cap his career with the one
Saudi Arabia (67) title that has eluded him. Joao Moutinho
Saudi Arabia’s biggest distinction at this World Cup?
Not being the lowest-ranked team. That distinction Spain (10)
belongs to Russia, the side it will play against in the tourna- Spain still relies on stalwarts like Sergio Ramos and Gerard
ment’s less-than-glittering opener—- No. 67 in the world vs. Pique from their dominant run from 2008 to 2012, but has
No. 70. Still, the Saudis haven’t won any of their past nine also mixed in a collection of players who have blossomed since then,
World Cup games. The man hoping to end that streak is the such as Manchester City’s David Silva. Question marks remain over
Argentine-born manager Juan Antonio Pizzi, who took over who can hold down a spot as the team’s permanent striker, but
last fall after failing to lead Chile to World Cup. with so much attacking talent in the lineup, it may not matter.
Egypt (45) Morocco (41)

There is more to Egypt than Mohamed Salah, the 26- Morocco might be the most international team in Russia, consisting pri-
year-old forward who scored 43 goals for Liverpool this marily of sons of the Moroccan diaspora. Of the 23 men in the squad,
season. At least that’s what Egyptian fans have been telling eight hail from France, compared to just six born within Morocco’s borders. There
themselves ever since he dislocated his shoulder in the Champi- are another five players from the Netherlands, two from Spain, one from Belgium
ons League final. Salah hopes to recover in time to play, though and one from Canada—and that’s without taking into account Morocco’s French
it’s going to be close. The supporting cast around him is defen- manager, Hervé Renard. Lumped in a group with Spain and Portugal, Morocco
sively solid, but it needs its fleet-footed striker to be truly danger- will take all the help it can get, no matter where it’s from. Hakim Ziyech
ous on the break.
Iran (37)
Uruguay (14) Carlos Queiroz, the Portuguese manager of the Iran national
Uruguay seems to have a knack for courting controversy at team, hasn’t always had the easiest time handling one of the
World Cups—specifically through star striker Luis Suárez . In world’s most reclusive nations. In 2015, he briefly quit after fall-
2010, he made one of the most important saves of the tournament by ing out with the national soccer federation, only to be rein-
blocking a goal-bound shot with his hand (despite not being a goalkeeper). stated. But sticking around has proved worthwhile. By lean-
And in 2014, he drew a months-long ban for biting an Italian defender ing on players of Iranian heritage from around the world, he
(though he maintains he simply fell on him teeth-first). Still, Suarez re- has improbably turned the country into a World Cup
mains what makes Uruguay tick. Under the guidance of manager Oscar regular, guiding it to a second straight edition of
“El Maestro” Tabarez, Uruguay should cruise into the knockout rounds. the tournament.
Group C Group D
France (7) Argentina (5)

France is, as ever, the World Cup’s moody artist. Capable of winning You may have heard that Argentina is led by a diminutive
the whole thing or flaming out in a cloud of Gauloise smoke, Les forward named Lionel Messi. That alone is enough to make it
Bleus have their most talented squad since they lifted the trophy in 1998, a World Cup contender. Throw in top-class attacking talent like strikers
anchored by the likes of Antoine Griezmann and Paul Pogba. The Sergio Agüero and Gonzalo Higuain, a strong World Cup pedigree
weakest part of the team might be its defensive-minded man- that includes two triumphs and an appearance in the final last time out,
ager, the 1998 World Cup-winning midfielder Didier Deschamps. and it seems like Argentina should have one hand on the trophy. Yet a
He was at the helm for France’s run to the final of the 2016 European Cham- history of spectacular chokes—and an aging back line means that even
pionship, an overtime loss to Portugal. Messi may struggle to drag this team beyond the quarterfinals.
Australia (36) Iceland (22)

During their run of four consecutive World Cup appearances, The tiny Nordic nation has made some serious
the Socceroos played pretty much the same way. They were noise in world soccer in recent years—and we’re
physically strong, defensively solid, but with little ambition on the of- not just talking about the awesome war chant they perform
fensive end. Former manager Ange Postecoglou instilled a more attack- during matches. Iceland shocked England in the 2016 Euro-
ing style of play. It won Australia admirers, but didn’t win enough pean Championship. Then, they finished ahead of Croatia during qualifying to reach the World
games. So Postecoglou was replaced by Bert van Marwijk, a Cup, becoming the smallest country ever to play in the tournament. But how will they fare when
man whose claim to fame is turning the freewheeling Dutch the surprise factor begins to fade?
into a pragmatic, defense-first team.
Croatia (20)
Peru (11) Croatia fields an experienced squad headlined by a handful of
Long a head-scratcher in international soccer, Peru boasted a world-class players. Unfortunately, most of them happen to
large population, a decent pedigree and arguably the sharpest play the same position. Playmakers Luka Modric , Ivan Rakitic, Mateo
jerseys in the game—white with a single diagonal red stripe—but hadn’t Kovacic and Marcelo Brozovic would walk into most midfields in Rus-
reached the World Cup since 1982. That finally changed when Peru saw off sia, but finding a way to incorporate them into a single lineup has
New Zealand in a home-and-home playoff last November, becoming the fi- been an ongoing headache for coach Zlatko Dalic.
nal country to qualify for Russia. A doping suspension for star striker Paolo
Guerrero was recently put on hold freeing him to play in the tournament. Nigeria (48)
For years, Nigeria’s presence at a World Cup
Denmark (12) guaranteed fireworks. With a bunch of ab-
Danish hopes at this World Cup revolve around the perfor- surdly talented attacking players and precious little interest in
mances of its playmaking midfielder Christian Eriksen . playing defense, the Super Eagles thrilled fans across the globe.
The Tottenham Hotspur star has the talent to lift an entire Sadly, this year’s Nigeria team isn’t likely to win over any neu-
team—provided Denmark’s defense stays as solid as it was trals. With a squad notably lacking in creativity and still prone
during qualifying. The Danes’ group is wide open, too, and to defensive blunders on the back end, Nigeria looks no closer to
their sights could be on the round of 16 in their first ending a record of never advancing past the round of 16.
World Cup appearance since 2010.
The Venues
PLAYERS: REUTERS (2), ZUMA PRESS (6), GETTY IMAGES (4), ASSOCIATED PRESS (4): STADIUMS: ASSOCIATED PRESS, ZUMA PRESS (2), GETTY IMAGES (3)
Fisht Stadium, Sochi - Cap. 48,000 Ekaterinburg Arena, Ekaterinburg - Cap. 35,000 Kazan Arena, Kazan - Cap. 45,000
JUNE 14 JUNE 15 JUNE 16 JUNE 17 JUNE 18 JUNE 19 JUNE 20

Group Match
Schedules Thursday Friday Saturday Sunday Monday Tuesday Wednesday
The eight four-team Group A Group A Group C Group E Group F Group H Group B
groups play from June Russia vs. Saudi Egypt vs. Uruguay France vs. Australia Costa Rica vs. Serbia Sweden vs. Colombia vs. Japan Portugal vs. Morocco
14-28, with the top Arabia Ekaterinburg Kazan Samara South Korea Saransk Moscow
two teams in each Moscow 8 a.m. 6 a.m 8 a.m. Nizhny Novgorod 8 a.m. 8 a.m.
advancing to the 11 a.m. Group B Group D Group F 8 a.m. Group H Group A
knockout stage. The
round of 16 runs (All times are Morocco vs. Iran Argentina vs. Iceland Germany vs. Mexico Group G Poland vs. Senegal Uruguay vs.
from June 30 to Eastern.) St. Petersburg Moscow Moscow Belgium vs. Panama Moscow Saudi Arabia
July 3, quarterfinals 11 a.m. 9 a.m. 11 a.m. Sochi 11 a.m. Rostov-On-Don
are July 6 and 7 Group B Group C Group E 11 a.m. Group A 11 a.m.
and semifinals are Portugal vs. Spain Peru vs. Denmark Brazil vs. Switzerland Group G Russia vs. Egypt Group B
July 10 and 11.
The final is on Sochi Saransk Rostov-On-Don Tunisia vs. England St. Petersburg Iran vs. Spain
July 15 at Zabivaka 2 p.m. 12 p.m. 2 p.m. Volgograd 2 p.m. Kazan
Luzhniki The official Group D 2 p.m 2 p.m.
Stadium in 2018 World Croatia vs. Nigeria
Moscow. Cup mascot Kaliningrad
3 p.m.
THE WALL STREET JOURNAL. * * Wednesday, June 13, 2018 | A17
WORLD CUP 2018
Who to Root for?

YOU MAY HAVE heard hollandaise sauce on a hot
by now: The U.S., amaz- dog. But fear not: You may
ingly, did not make the not be able to root for
2018 World Cup. This America, but you can root
prompted an existential for the next best thing. The
crisis for American soccer, the firing of two separate managers— Wall Street Journal analyzed the 32 World Cup countries in a
and months of pointing and laughing from the rest of the world. wide array of factors, from geopolitics to economics to beer
But the World Cup is happening anyway. And as the tourna- swilling—all with one question in mind: Which country is the
ment kicks off Thursday, this presents a quandary for bummed most American? Users can pick their categories to see which
out U.S. soccer fans: Who the heck to root for? country is more American in every game.
The idea of rooting for anybody but America is like slathering Try it at wsj.com/worldcup2018
Group E Group F
Brazil (2) Germany (1)

Brazil’s finish four years ago was utterly agonizing: playing in its The reigning-champ Germans are the favorite
home country, it lost superstar Neymar Junior — and then got yet again. But this time they look different.
walloped 7-1 by Germany in the semifinals. This was a country so eager to Are they better? Mainstays from past squads are gone,
move past that loss it sent stars—including Neymar—to win gold at the 2016 though there is still an array of familiar talent from Thomas
Olympics, an event soccer behemoths typically turn their noses at. Neymar is Muller to Mesut Ozil. Still, the player that should define
back this go around in the starring role, with a complement of studs forming whether this team can go all the way is a newcomer. Forward
arguably the world’s most talented team. And they know there’s only one Timo Werner is just 22 years old and doesn’t have the interna-
way to exorcise the 2014 debacle: win the whole thing. tional recognition of his peers. But he could determine whether
Joachim Low becomes just the second manager to win multiple
Switzerland (6) World Cups. Torri Kroos
Xherdan Shaqiri has been Switzerland’s budding star for nearly a
decade. He made the 2010 World Cup roster as an 18-year-old. He Mexico (15)
netted a hat trick in 2014. And he’s still only 26 years old. The Not long ago, in 2012, a young Mexican team took gold at the Olympics. It was a mo-
winger will again lead a team that has been respectable in re- ment of hope: That, when those players fully developed, Mexico could be a dangerous
cent years but never quite dangerous. Manager Vladimir Pet- player in the World Cup. Players from that same team are now veterans in what could be their
kovic will rely on Shaqiri, and newly minted Arsenal defender last go around in this tournament. This is one of the Cup’s most experienced squads, led by
Stephan Lichtsteiner, as this team tries to take the next step. Javier “Chicharito” Hernandez. Mexico dominated during qualifying, but now it’s stuck in arguably
the tournament’s toughest group where making it to the knockout rounds could be a struggle.
Costa Rica (23)
Giant slayers are fan favorites at the World Cup. And don’t for- Sweden (24)
get Costa Rica’s ability to assume that role. In 2014, Los Ticos No, Zlatan Ibrahimovic is not on the roster. And this country moving forward
reached the quarterfinal after winning a group with Uruguay, Italy and without its all-time leading scorer is the best way to understand how Sweden
England. And this small Central American country has the talent to will look at this tournament. This is a team founded on its defense, which was stingy
surprise again. Joel Campbell has immense potential up top. Keylor throughout qualifying and took the team to its first World Cup since 2006, capped
Navas plays keeper for the reigning European champions, Real Ma- off by back-to-back shutouts against Italy in a playoff. But they’ll need to score, and
drid. So even if they struggle to score, they can make their that’s still the question, so manager Janne Andersson will need to tap the abilities of
opponents do the same. Bryan Ruiz those like Emil Forsberg to try and fill Ibrahimovic’s shoes.
Serbia (34) South Korea (57)

Serbia is the enigma of this World Cup. Its recent results—failing There was a bright spot from South Korea’s uninspiring performance in 2014:
to qualify in 2014, finishing last in its group in 2010—are nothing Son Heung-Min. Since then, Son has evolved from a budding young player into
but poor. Its play in qualifying was so shaky that the country sacked its a bonafide, Premier League threat on the attack, which he has displayed next to England’s
manager. But this is also a squad bustling with talent from top European Harry Kane at Tottenham. Son, 25 years old, is indicative of this entire team that is littered
clubs. The likes of Dusan Tadic, Sergej Milinkovic-Savic and Nemanja Matic with younger players who are beginning to hit their strides. Yet the hopes for this team to
form a team with far more potential than its recent performance would advance depend on the performance of one player, perhaps more than any other team, with
suggest. That puts the pressure on manager Mladen Krstajic to get questions about how much attack South Korea can generate beyond Son.
this team, finally, into form.
Group G Group H
Belgium (3)
Possibly the most talented squad, certainly the most Poland (8)
combustible. Belgium boasts some of the finest players If you like scoring, just tune into Poland. This team scores a
from the English Premier League—Chelsea playmaker Eden lot of goals. It gives up plenty of them, too. The man re-
Hazard, Manchester United striker Romelu Lukaku, Manchester sponsible for more of those than anybody in the country’s history,
City midfielder Kevin de Bruyne—but has failed to live up to ex- Robert Lewandowski , is again leading the charge. At 29 years
pectations since reaching the World Cup quarterfinals in 2014. old, he remains a world-class striker for Bayern Munich and has
Belgium lost to Wales at the same stage at the 2016 European Champion- the ability to carry this team to a surprising win or two—as long
ship amid reports of locker-room flareups. Head coach Roberto Martinez as his teammates aren’t a complete sieve in the back.
has focused on team cohesion since taking over in 2016, but has been criti-
cized for his lack of tactical acumen—by some of his own players. Senegal (27)
Senegal’s recent history—it hasn’t made a
Panama (55) World Cup sine 2002—may seem to indicate
The government declared a national holiday when Panama qualified for that simply making it to Russia is an accomplishment.
the World Cup (at the expense of the U.S.) and if that suggests this is But this is a side dreaming for more with a wealth of elite
a team just happy to be going to Russia, that’s probably not inaccurate. Panama faces players that could even make some European countries
Belgium in its opener, then England in its second game. At which point, it will likely be blush. Winger Sadio Mane is a good bet to find the net
heading home. Working to keep Panama around a little longer is experienced coach at least a couple times, a knack he showed at Liver-
Hernan Dario Gomez, who previously led Colombia and Ecuador to the World Cup and pool. In the back, defender Kalidou Koulibaly was one
becomes only the second coach to manage three different countries at the tournament. of the best in Italy for Napoli.
Tunisia (21) Colombia (16)

Tunisia will be making its fifth World Cup appearance in Russia, but if that sug- Surprise contenders at the 2014 World Cup,
gests a team of seasoned tournament operators, the reality is a little differ- Colombia lit up the early stages with their swash-
ent. It has just won just a single World Cup game in that period, and hasn’t made it to buckling style and scored one of the finest goals in tournament
the tournament in 12 years. The loss of playmaker Youssef Msakni to a knee injury in history when star player James Rodriguez smashed home a
April further dampens Tunisian hopes of reaching the knockout rounds, but with an thunderbolt against Uruguay in the round of 16. Colombia even-
opening game against England, an upset can’t be totally discounted. tually went out to Brazil but had chances to win that quarterfinal
and could be primed for another deep run with James pulling the
England (12) strings..
Inventor of the game, a former World Cup winner and, more recently, the
punchline of international soccer. England recorded its worst World Cup perfor- Japan (61)
mance ever in 2014 when it was eliminated inside five days. That shame lasted all of This Japan squad will probably seem familiar. That’s because it
two years until the European Championships, where it was knocked out by Iceland in is. Midfielders Keisuke Honda and Shinji Kagawa, along with at-
what amounted to a new low for English soccer. Head coach Gareth Southgate has jetti- tacker Shini Okazaki combine to make this one of the World Cup’s most
soned many of the players involved in those calamities and England has some promising experienced sides. The problem with that is that this trio has an average
young stars—with Harry Kane and Raheem Sterling . But England hasn’t won a knock- age of over 30, raising questions about if the team is past its prime—an
out match in international play since 2002 and a quarterfinal spot looks like the ceiling. issue raised after a number of shaky qualifying performances.
Volgograd Arena, Volgograd - Cap. 45,000 Saint Petersburg Stadium, St. Petersburg - Cap. 67,000 Luzhniki Stadium, Moscow - Cap. 80,000
JUNE 21 JUNE 22 JUNE 23 JUNE 24 JUNE 25 JUNE 26 JUNE 27 JUNE 28

Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday
Group C Group E Group G Group G Group A Group C Group F Group H
Denmark vs. Australia Brazil vs. Costa Rica Belgium vs. Tunisia England vs. Panama Uruguay vs. Russia Australia vs. Peru South Korea vs. Japan vs. Poland
Samara St. Petersburg Moscow Nizhny Novgorod Samara Sochi Germany Volgograd
8 a.m. 8 a.m. 8 a.m. 8 a.m. 10 a.m. 10 a.m. Kazan - 10 a.m. 10 a.m.
Group C Group D Group F Group H Group A Group C Group F Group H
France vs. Peru Nigeria vs. Iceland South Korea vs. Japan vs. Senegal Saudi Arabia vs. Egypt Denmark vs. France Mexico vs. Sweden Senegal vs. Colombia
Ekaterinburg Volgograd Mexico Ekaterinburg Volgograd Moscow Ekaterinburg Samara
11 a.m. 11 a.m. Rostov-On-Don 11 a.m. 10 a.m. 10 a.m. 10 a.m. 10 a.m.
Group D Group E 11 a.m. Group H Group B Group D Group E Group G
Argentina vs. Croatia Serbia vs. Group F Poland vs. Colombia Spain vs. Morocco Nigeria vs. Argentina Serbia vs. Brazil Panama vs. Tunisia
Nizhny Novgorod Switzerland Germany vs. Sweden Kazan Kaliningrad St. Petersburg Moscow - 2 p.m. Saransk
2 p.m. Kaliningrad Sochi 2 p.m. 2 p.m. 2 p.m. Group E 2 p.m.
2 p.m. 2 p.m. Group B Group D Switzerland vs. Group G
The official Iran vs. Portugal Iceland vs. Croatia Costa Rica England vs. Belgium
2018 World Saransk Rostov-On-Don Nizhny Novgorod Kaliningrad
Cup ball 2 p.m. 2 p.m. 2 p.m 2 p.m.
WORLD CUP 2018
Messi and Competitions like the Champi-

ons League have turned into
something like the NBA, a stage
that can be completely taken
Ronaldo over by a few outstanding indi-

viduals. That only amplifies the
value of Messi and Ronaldo.
Their play is made up of count-
Continued from page A15 less brilliant things, none easier
a.m. or 2 a.m. The players are to understand than goals.
tired, they get in their cars and Ronaldo has scored more than
they go home. But Ronaldo does 50 goals in six consecutive years.
not go home. At 1 a.m. or 2 a.m., Messi has topped 50 club goals
Ronaldo goes to the ice bath.” in five different seasons. You
(T-B) KATHY WILLENS/ASSOCIATED PRESS; KHALED DESOUKI/AFP/GETTY IMAGES
That professionalism left don’t need to understand the nu-

Messi and Ronaldo prepared for ances of the offside rule to know
an era in which the number of those numbers are ridiculous.
games the world’s top stars are For all of their success, how-
expected to play has skyrocketed. ever, the World Cup has still
In 16 seasons as a pro, for in- eluded them both.
stance, Ronaldo has played 250 Ronaldo has at least tasted in-
more club games than former ternational glory. Portugal won
Dutch great Johan Cruyff the 2016 European Champion-
amassed over his 20-year career. ship, despite his limping off a
Messi and Ronaldo have used quarter of the way through the
that experience to adapt their ge- final. “I had already won every-
nius on the fly. They are playing thing with clubs,” he said that
as effectively as they were a de- night. “I lacked something with
cade ago, but they aren’t playing the national team.”
in the same way. Messi would kill for that
As Messi became a more cen- much. He has represented Argen-
tral figure for club and country, tina in three Copa America finals
he literally came to occupy a and one World Cup final and lost
more central position on the all of them. He said recently that
field, starting out as a winger on he would happily trade one of
THE FANS | By Jason Gay the right side, moving up front in the nine La Liga titles he has
A Cup With It All,

the middle of his career, and fi- won with Barcelona for a single
nally dropping into a central international trophy.
playmaker position when Suárez The irony is that the same fac-
joined Barcelona in 2014. tors that have propelled Messi
Ronaldo’s evolution has been and Ronaldo to such heights in
similar, but arguably more dra- club soccer are key reasons why
Just Not U.S.

matic. He, too, started out on the they have never won the World
wing, before moving inside, Cup. The volume and intensity of
where he used his pace and their club schedules—where they
shooting ability to terrorize de- score all those goals and lift all
fenses. Now, at 33, his days of those trophies—leaves them fraz-
tearing up and down the field at zled whenever the World Cup
breakneck speed are over and he rolls around.
The World Cup is Above, fans watch the opening game has remade his game for a third This eats away at them con-
here—but the United of the 2014 World Cup from a bar in time. Cristiano Ronaldo 3.0 is a stantly. Messi was so distraught
States is not, having Brooklyn, N.Y. Left, Egypt’s Mo Salah. penalty-box finisher. after losing the 2016 Copa Amer-
failed to qualify. Are “At 30 years old, no one ica that he briefly quit the na-
you still pumped? be an optimist. thought he could change his tional team. “It hurts me more
Is it tacky to put it I think we’re going to learn a game,” said Leonel Pontes, Ron- than to anyone else,” he said
so bluntly? Is it overly American? lot about soccer in the U.S. in the aldo’s youth coach at Sporting Lis- then, “not being able to be cham-
Parochial? Do I sound like I’m next month. I really do. There’s bon. “But he changed his game.” pion with Argentina.”
wearing a bald eagle hat? Is it now a whole generation in this
just, you know…rude? country that has grown up famil-
Maybe! Even the casual sports iar with the international game.
fan knows that, with or without Technology has made it easy to
the United States men’s team, soc- follow world-class play. You prob-
cer’s every-four-years global com- ably saw how nutso many of your
petition is the most popular and fellow Americans got a couple of
watched athletic event on the weeks ago for that wild Champi-
planet. (Yes, even more so than ons League final between Liver-
the NBA Draft.) To not take the pool and Real Madrid. I can’t walk
World Cup seriously—or worse, to down my street without passing a
ignore it altogether—is to declare half-dozen kids in Messi jerseys.
yourself in 2018 an unserious Major League Soccer continues to
sports fan, because there is no grow and bolster the domestic
bigger sports spectacle, with game. And let’s not forget our ha-
greater stakes, than this. bitually tail-kicking United States
And I am counting SEC college ence, too—like the built-from-the- women’s team, the winners of
football, if you’re wondering. ground-up Sochi Olympics before three women’s World Cups, in-
Just because Team USA won’t it, this World Cup, spread across cluding the most recent in 2015.
be there when play begins in Rus- 11 Russian cities, from Kaliningrad To be very clear: the whole
sia on June 14 doesn’t mean it to Ekaterinburg, is a pageant to ‘Can Soccer Thrive in America?’
can’t be a sublime World Cup, or the Vladimir Putin era. question is kaput. It’s thriving.
that it won’t feature the tradi- It’s a really big deal. But... The traditional borders are com-
tional heavies or the sport’s great- Yes, it stinks the U.S. is not in ing down or are crumbling alto-
est talent (and isn’t like the U.S. it! What do you want me to say? gether.
was going to run away with the Am I supposed to pretend that it’s I won’t claim it doesn’t hurt
trophy, anyway). Germany, Argen- perfectly alright that the Ameri- that the U.S. men didn’t make it.
tina, Spain, France…Iceland (Hurra can men have failed to make it for Those stateside soccer bars were
Iceland!)…England, France, Bel- the first time since 1990? Espe- really rocking in 2014! Likewise, I
gium, Mexico…Messi, Ronaldo, cially after the U.S. men produced can’t ignore FIFA’s ignominious
Neymar, Mo Salah (Mo such tingly thrills in recent Cups history and the long shadow of
Salah!)…they’re all in. (Italy also in South Africa and Brazil, reach- corruption that has followed the
missed out, alas.) ing the round-of-16 both times? World Cup. The next cup, Qatar
You may have already picked a It’s a bummer, big time. But if 2022, is already awash in human
new team to root for. Maybe it’s it’s a bummer for me and you, rights controversies. Reform is
not a new team—maybe it’s a na- what about the stateside people badly needed.
tional team your family has al- who bought plane tickets and But you’ll see over the next
ways rooted for. Ours is a nation sewed American flag overalls? four weeks: this event is still
of immigrants, after all. What about those Fox television crazy, still worthwhile, still good
IMAGO/ZUMA PRESS
There will be heroes and vil- executives, bidding big money for for brilliant moments that reach
lains, upsets and predictable routs, the U.S. rights—and not having a around the globe like no other
climaxing at the final at Luzhniki local outfit that can be counted on sporting event on earth. Those
Stadium in Moscow on the third to goose ratings? bars are still going to be rocking.
Sunday in July. You gotta figure Look: it’s easy to be a crank or It’s the World Cup, people. Let’s
you-know-who will be in the audi- Chicken Little. Today I prefer to do this. Lionel Messi, front, and Cristiano Ronaldo during a match in 2014.
THE COUNT
FROM EKATERINBURG TO ST. PETERSBURG TO KALININGRAD

There’s a consequence to hold-
ing the World Cup in the largest
Across Russia With Love
country on earth: the travel isn’t ex- Estimates on how far every team will have to travel during the group stage:
St. Pete
St ters
rsbu
burg
rg
actly light. TEAM BASE CAMP TOT. MILES TEAM BASE CAMP TOT. MILES
This year’s World Cup in Russia Ekater
aterrin
inbuurgg Egypt Grozny 5,288 Morocco St. Petersburg 2,671
Nizhniy
will take place in 11 cities, from Kali- Nov
Novgorod Nigeria Essentuki 4,286 France Kazan 2,649
ningrad in the west to Ekaterinburg, Kaliningrad Mos
Moscow
Kazan Poland Sochi 3,990 Ireland Moscow 2,580
which is east of the Ural Mountains. Denmark Anapa 3,852 Costa Rica Samara 2,340
If your knowledge of Russian geog- Saransk
ns
Samara South Korea St. Petersburg 3,806 Belgium Sochi 2,326
raphy is based on the board game RUSSIA
Risk, none of the host cities stretch POLAND Switzerland Tolyatti 3,760 Germany Moscow 2,134
as far east as Yakutsk or Kam- Brazil Sochi 3,737 Portugal Sochi 2,008
chatka. KA Z A K H STA N
Saudi Arabia St. Petersburg 3,657 Iran St. Petersburg 1,993
And no team will have to criss- England St. Petersburg 3.554 Japan Saransk 1804
cross Russia like Egypt. This is part Peru Moscow 3,242 Panama Sochi 1,783
bad luck and part design by the ROMANIA Sweden Gelendzhik 3,205 Mexico Moscow 1,476
Egyptians. Each country chooses a
Croatia Leningrad 3,015 Tunisia Volgograd 1,452
base and training ground, and Egypt
set up its camp in Grozny, the capi- Spain Krasnodar 2,969 Russia Moscow 1,320
tal city of Chechnya. That’s between Bla ck Se a Serbia Kaliningrad 2,963 Australia Kazan 1,310
the Black Sea and Caspian Sea, Uruguay Nizhny 2,898 Argentina Moscow 887
closer to the borders with Azerbai- TURKEY Senegal Kaluga 2,680 Colombia Saransk 761
jan and Georgia than it is to any of Source: Google Maps. Note: Based off distance between cities. Calculations include trip from base camp
the cities where the World Cup will THE WALL STREET JOURNAL. (general area in which team is located) to game and back; camp to game to and back; and camp to game 3.
be played.
With games in Ekaterinburg, Cairo than it is to Saint Petersburg. more than 3,000 miles. If you worry where they are going to play. Ten zan—where the Colombians play
Saint Petersburg and Volgograd— Egypt’s tally is an outlier, roughly about how these long trips could affect teams, including reigning world cham- their second game.
and trips back to Grozny in between 1,000 miles more than any other team one of the favorites, Brazil should be on pion Germany, have set up camp in the It turns out, Colombia will have
games—the Egyptians could expect in the tournament. Still, the average your radar: The Brazilians will go about Moscow area. to do less traveling around Russia
to travel approximately 5,300 miles team will travel 2,700 miles between 3,700 miles, more than any of the The team with the easiest itiner- than the Russians, who still have an
during the group stage. For some cities and their base camps during the other tournament favorites. ary? Colombia is stationed in the Tatar- easy go of it—logging just 1,300
perspective: Grozny is closer to group stage, with 12 squads going Other countries are stationed right stan Republic, and its capital city is Ka- miles. —Andrew Beaton
THE WALL STREET JOURNAL. * * NY Wednesday, June 13, 2018 | A18A
GREATER NEW YORK

Former State Lawmaker Admits to Fraud
Pamela Harris Prosecutors said this included when applying for funding from “These documents I filed with
falsely telling the Federal Emer- the New York City Council. Her FEMA were false, and I knew
pocketed money
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL

gency Management Agency that nonprofit received the funding, that at the time,” Ms. Harris
earmarked for victims she had been forced out of her she said, her voice shaking. told the judge.
home after the storm and col- However, she appropriated She then pressured her sis-
of superstorm Sandy lecting $25,000 in payments. the money. “I didn’t return the ter to lie to investigators, she
In the indictment, prosecu- sum to the city,” she told U.S. said. Her sister couldn’t be
BY CORINNE RAMEY tors said she used the funds to Magistrate Judge Robert Levy, reached for comment.
pay her mortgage, shop at Vic- adding that she instead wrote a Judge Levy set Ms. Harris’s
Former New York state As- toria’s Secret and Kohl’s, and check to her personal account. sentencing for Sept. 26. Under
semblywoman Pamela Harris buy tickets for a cruise with her Ms. Harris also said that af- federal sentencing guidelines,
pleaded guilty to fraud charges husband. ter Sandy, she applied for fed- she faces up to 30 years in
Tuesday, admitting she pock- Her trial had been scheduled eral funding, claiming she had prison on the most serious
eted city and federal funding for July. been forced to leave her home. count.
intended for vulnerable chil- Ms. Harris, 57 years old, “I falsely represented to She had previously worked
dren and superstorm Sandy vic- served in the Assembly from FEMA that I was living for for New York City’s Department
tims. late 2015 through April, when Pamela Harris left federal court in Brooklyn on Tuesday after about a year with my twin sis- of Correction. Since resigning,
Ms. Harris, a Democrat, was she resigned. She represented pleading guilty to fraud charges, She will be sentenced Sept. 26. ter at her home in Staten Is- Ms. Harris has held a part-time
indicted in January and accused neighborhoods in southern land,” Ms. Harris said, her voice catering job, court papers say.
of defrauding government Brooklyn including Bay Ridge, Tuesday, Ms. Harris pleaded rector of a youth-and-commu- cracking. Ms. Harris’s lawyers said in a
agencies out of tens of thou- Coney Island and Dyker guilty to four counts of the 11- nity nonprofit called Coney Is- She submitted falsified re- statement that she “admitted
sands of dollars from November Heights. count indictment. She said that land Generation Gap, she ceipts, a fake lease and signed her guilt in an effort to move
2012 through January 2017. In Brooklyn federal court on while working as executive di- submitted false documents her twin sister’s name, she said. on with her life.”
Ex-Governor Is Rebuilding Image After Prison City Allots

BY JOSEPH DE AVILA Millions
NEW HAVEN, Conn.—For-
mer Gov. John Rowland, once
a rising star in the Republican
For Senior
Party, is back home in Con-
necticut after serving a second
prison term for public corrup-
Housing
tion. BY KATIE HONAN
“It’s been a humiliating ex-
perience for me,” the 61-year- New York City has commit-
old said in his first interview ted $500 million to build thou-
since being released. But it has sands of affordable apartments
also “been a good experience for low-income senior citizens
in that it gives me a chance to on vacant public-housing land,
refocus myself to be a better a move advocates say would
person, to contribute to soci- help reduce the wait list for
ety in a different way.” apartments.
MONICA JORGE FOR THE WALL STREET JOURNAL
Mr. Rowland, whose down- The plan, first pushed in the

fall was one of many that con- proposed new budget by New
tributed to the state’s nick- York City Council Speaker
name “Corrupticut,” was Corey Johnson, will construct
sentenced in 2015 to 30 new apartment buildings on
months for attempting to con- lawns, parking lots and unused
ceal his paid role in a congres- land at New York City Housing
sional campaign from the Fed- Authority developments.
eral Election Commission. He “If you can get seniors living
served about 20 months in now in two-, three-bedroom
federal custody in prisons in apartments in NYCHA to move
New York and Pennsylvania into new apartments, you make
and halfway houses in Con- Former Connecticut Gov. John Rowland said he is refocusing his life to be a better person after two stints in prison for corruption. room for folks who are on the
necticut. waiting list,” said the Rev. Da-
He returned in May to his driving under the influence. in Fairfield, Conn. “Because he being paid for political advice, ecutive of Prison Fellowship, vid Brawley, pastor at St. Paul
Middlebury, Conn., home, He was given six months pro- felt so confident, and because prosecutors said. said Mr. Rowland has a unique Community Baptist Church in
where he lives with his wife, bation for the DUI, and the he was so brash, it was quite Mr. Rowland, who pleaded set of experiences that made Brooklyn’s East New York sec-
Patricia Rowland. gun-possession charge was possible that he felt that he not guilty, was convicted on him a good fit for his organi- tion and member of the Metro
Mr. Rowland said he is dismissed. was untouchable.” one count of conspiracy, two zation: a background in fund- Industrial Areas Foundation.
ready to close that chapter in “One of our sayings is that After his first prison sen- counts of falsifying records, raising and a record of incar- There are 207,000 families
his life and start a new career: ‘It takes what it takes,’ ” Mr. tence, Mr. Rowland began re- two charges of causing false ceration. Mr. Ackerman noted on the wait list for public
helping inmates turn their DeRoche said. “For John, it habilitating his image. He statements and two counts of that about 25% of his field housing, and addressing that
lives around. Prison Fellow- took twice—we pray, just worked on economic develop- making illegal campaign con- staff that works with inmates number could help reduce
ship, a Christian organization twice—to go through the sys- ment in his hometown of Wa- tributions. have criminal records. homelessness, Mr. Brawley
that provides re-entry services tem, for him to really be look- terbury. He also hosted a polit- His second corruption scan- “The path of restoration said. There are currently more
and other programs to inmates ing at his life differently, as he ical talk-radio show. dal stunned Connecticut’s po- doesn’t necessarily happen than 58,700 people living in
and operates in 76 prisons does now.” litical community. overnight,” Mr. Ackerman said. shelters across the city, accord-
across the U.S., hired him to Mr. Rowland launched his “I think it was a matter of Mr. Rowland is “a man who ing to the latest data.
lead fundraising efforts in the political career in 1981 as a him thinking he could get understood the mistakes he Mayor Bill de Blasio, a Dem-
Northeast. state legislator. He went on to
He hopes to assist away with it,” said Edward made and that he was pre- ocrat, said the funds will help
He started in May and he serve three terms in Congress families affected by Marcus, former chairman of pared to own those mistakes in his quest to create a fairer
said he hopes to assist families starting at the age of 27. A Connecticut’s Democratic and move forward.” New York. “Fairness means all
affected by incarceration by cocky and popular politician,
incarceration by Party. “Despite all the politics Mr. Rowland acknowledged the good people of the city can
sharing his own story and em- he later set his eyes on the sharing his own story. of it all, you have to feel sorry that he has let his ego get the actually afford to live in their
phasizing the importance of governor’s mansion. He was for him as a human being. He best of him in the past. He own city,” Mr. de Blasio said
faith. elected to three terms. had all these possibilities, and added he would have done Tuesday.
Craig DeRoche, the group’s Mr. Rowland resigned in the he just blew it.” things differently after his Housing activists have asked
senior vice president of advo- middle of his third term as Mr. Rowland, however, was Mr. Rowland said he has first prison sentence. for $2 billion from the city,
cacy and public policy, first governor and pleaded guilty to unable to resist politics. Fed- come to terms with his second “I would just stay away which they said could build
connected with Mr. Rowland a conspiracy charge for taking eral prosecutors said he ap- conviction. When asked if he from politics. It’s my drug of 15,000 apartments for seniors.
when he was providing the bribes from state contractors. proached congressional candi- still maintains his innocence, choice sometimes,” Mr. Row- The initial $500 million will
former governor with peer He spent 10 months in prison. dates, offering off-the-books he said: “Well, sure. I mean land said. “It’s intoxicating, build a few thousand resi-
support. Mr. DeRoche, a for- “It was a remarkable fall,” political advice. In 2011, he the process is such that you and it’s exciting. But there are dences. Activists vowed to
mer speaker of the House in said Gary Rose, chairman of signed a contract to work for a fight to protect yourself and times when you have to walk fight for more money.
Michigan, was arrested in the department of govern- congressional candidate’s hus- protect your rights. But you away from it and have to de- The city’s $89.15 billion bud-
2010 for possession of a fire- ment, politics and global stud- band in his nursing-home accept the result.” cide to do something different get will be voted on this week
arm while intoxicated and ies at Sacred Heart University business. But actually, he was James Ackerman, chief ex- and better with your life.” by the City Council.
“With First Republic, we get a

real person who can address our
needs immediately.”
A L I G N E D PA RT N E R S
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GREATER NEW YORK

METRO MONEY | By Anne Kadet
GREATER NEW
Farm Program Cultivates Opportunity YORK WATCH
NEW JERSEY
At age 24,
Paul Philpott AG Calls for a Halt
wasn’t exactly Of ‘Ghost Gun’ Sales
riding high.
He’d just quit New Jersey’s attorney gen-
a job at Wal- eral on Tuesday demanded that
mart and moved back in with firearms companies stop mar-
his parents in the projects. So keting and selling untraceable
while he had no clue what to weapons, or ghost guns.
expect, he was happy to The weapons are illegal in
check out a job-training pro- New Jersey, Attorney General
gram suggested by his Gurbir Grewal said in a letter to
mother. the unidentified companies, and
Green City Force, it turned the state will sue the gun mak-
out, was offering work on ers if they persist.
small farms located on pub- Mr. Grewel demanded they
lic-housing developments stop selling and advertising as-
around New York City. Mr. sault weapons to New Jersey
Philpott was not impressed. residents that are unregistered
KELLYANN PETRY FOR THE WALL STREET JOURNAL
“You’re going to farm in and lack a serial number.

the hood?” he recalls think- The letter comes just a day
ing after meeting a recruiter. before Democratic Gov. Phil
“I don’t think that’s going to Murphy said he plans to sign a
work!” half-dozen bills aimed at tight-
Eighteen months after ening the state’s already strict
graduating from the program, laws.
Mr. Philpott is running his —Associated Press
own hydroponic farm busi-
ness out of a shipping con- CONNECTICUT
tainer in a Brooklyn parking
lot. Educators Weigh
“Farming in the city is Response to Veto
nothing I’d ever thought I’d Paul Philpott prepares kale from his Brooklyn hydroponic farm business to be packaged and distributed to high-end restaurants.
say I’d do,” he says. Connecticut teachers, superin-
The 40-foot container, in Williamsburg, Brooklyn, would go to bottles and bot- coveted spot in the entrepre- block ask if he’s dealing, he tendents and state education of-
with its metal walls and pink says he’s not a big fan of hy- tles.” neurship program at Square tells them the cash in his wal- ficials are debating next steps
LEDs, looks more like a lab droponic crops, but Mr. Phil- Green City Force, a non- Roots, the urban farm incuba- let is from his business. “I for student discipline following
than a farm. There’s no dirt. pott’s greens are exceptional. profit that recruits young tor currently hosting his busi- pull out my Instagram and the governor’s veto of a bill that
A programmed system dis- “The kale has spice to it,” he adults from the city’s 15 high- ness. show them the farm,” he says. sought to set new standards for
penses a nutrient cocktail, says. est-crime public-housing de- Not all his peers fared so Brandee McHale, president suspensions.
controls water flow and mon- Mr. Philpott says that developments, offered Mr. Phil- well. Among the 24 trainees of Citi Foundation, which fo- The bill aimed to help protect
itors the temperature. Rows spite growing up in public pott a spot in its 10-month in his cohort, only 16 gradu- cuses on economic opportu- teachers from injury by remov-
of kale, chard and romaine housing, he enjoyed a shel- Urban Farm Corps program. ated. This year, 28 of 40 nity, says the foundation doing children who are acting out
grow on sliding columns sus- tered childhood. “My mom Earning a $1,200 monthly made it to the finish line, the nated $1 million to Green City in violent ways.
pended from the ceiling. was extremely protective,” he stipend, Mr. Philpott learned nonprofit says. Force because it’s not just an- Democratic Gov. Dannel Malloy
Mr. Philpott is not a big says. the basics of farming and But these graduates have other job-training program— said he vetoed the bill because it
greens guy. Lettuce, he says, But then he attended high tending a produce stand, dis- enjoyed a 95% job-placement participants contribute to would have a disproportionate
is best served atop a burger: school far from home, and tributing free vegetables at a rate, in occupations ranging their community and become impact on students of color and
“If I’m really bored, I’ll eat a fell in with the wrong crowd. housing project in Red Hook, from landscaping to working role models. “It has a multi- students with disabilities.
salad.” “I can’t lie,” he says. “I did a Brooklyn. as a chef’s assistant. plier effect,” she says. At a hearing Tuesday hosted
But the profits on these lot of dumb things.” Early on, he aimed for a It’s a fine accomplishment Mr. Philpott’s stint with by the Connecticut Commission
nutrient-dense greens are lu- There was a lot of drinking spot on the infrastructure considering the 75% unem- Square Roots will end in Oc- on Women, Children and Seniors,
crative. While growing costs and fighting. “I hung around team and initiated projects ployment rate among young tober. What’s next? “I have no Bristol teacher David Hayes said
are astronomical—$10 to $15 people who went stealing and like repairing a dilapidated adults in city public housing. idea,” he says. the measure would have helped
a pound—high-end restau- robbing places,” he says. greenhouse. “I stepped up Mr. Philpott says the expe- But it’s a happy dilemma, clear up misunderstandings
rants pay double, says Mr. He didn’t graduate from and showed I know what I’m rience gave him a new iden- he adds, induced by the skills among some administrators over
Philpott. high school until he was 20, doing,” he says. tity as a community leader. he’s learned and contacts he’s when it is appropriate to sus-
“It’s very crazy,” he says. and things went downhill He soon joined the team When he’s not tending crops made: “The weird thing is, pend a student.
“But we have very premium from there. “I’d be on the building new farms at public- these days, he’s giving tours, now I have so many opportu- The Connecticut Education As-
ingredients, and grow it and streets getting drunk all day housing complexes in Harlem supervising apprentices and nities, I don’t know which I sociation, the state’s largest teach-
deliver it to you directly.” with my friends,” he says. and Canarsie, Brooklyn. volunteering at a community want to do.” ers union, urged lawmakers to try
Customer Patrick Connolly, “Especially if I lost my job. By the time he finished in garden in the Bronx. to override the governor’s veto.
chef-owner of Rider, a bistro The week after, my check early 2017, he had landed a When younger guys on the Anne.Kadet@wsj.com —Associated Press
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OPINION
On Big Media, the Court Speaks BOOKSHELF | By James Rosen
In our jokey
times, it is
perhaps fit-
AT&T may be the nation’s
“biggest” TV distributor, but
85% of its customers are sub-
with T-Mobile as well as the
Murdoch family’s apparent
plan to sell big parts of 21st
Mr. Trump himself tweets or
fails to tweet. Will he ac-
knowledge Tuesday’s ruling
Standing By
ting that the
entire media
and technol-
ogy sector
scribers to its DirecTV satel-
lite business, which everyone
agrees is becoming obsolete
in a world where a two-way
Century Fox to either Disney
or Comcast.
On the other hand, the court
now having decided against
or at least leave it un-
denounced? Or will he use the
occasion to renew his claim
that the AT&T merger repre-
To Stand By
BUSINESS
WORLD had
waiting on
been connection is necessary for
video streaming. And the idea
the Justice Department, the
Trump administration might
sents “too much concentra-
tion of power in the hands of
First in Line
By Holman W.
the outcome that control of Time Warner be expected to revert to stan- too few” and is “an example By Kate Andersen Brower
Jenkins, Jr.
of a Justice channels like CNN and TBS dard GOP permissiveness on of the power structure I’m (Harper, 336 pages, $28.99)
‘I
Department would be like owning a cure antitrust, a development that fighting”?
antitrust suit that never for cancer was silly on its would be very welcome right Mr. Trump may have the only saw Eisenhower alone,” Richard Nixon lamented
should have been brought in face and belied by the data last word here, not Judge in 1969, “about six times in the whole deal.” This
the first place. We refer, natu- pouring in from the real Leon, not even the Justice De- dismal recollection exemplifies the tendency of former
rally, to the department’s law- world where customers are But the real question partment’s Mr. Delrahim, who vice presidents to remember their tenures with frustration,
suit opposing the merger of fleeing traditional cable in must decide whether to pursue not elation. Kate Andersen Brower probes this institutional
AT&T and Time Warner, which droves. media moguls will ask an unpromising appeal. A disharmony in “First in Line: Presidents, Vice Presidents, and
Judge Richard Leon so handily To cover its exposed hind- themselves: Is Donald Trump tweet that calls for re- the Pursuit of Power,” an intimate, compulsively readable
rejected in his much-awaited quarters, the department put newed regulatory vigilance account of the dynamics that have shaped—and sometimes
decision Tuesday in favor of forward a little-noticed sec- Trump listening? against the president’s media destroyed—relations at the top of the American political
the two companies. ond argument. It asserted an enemies may leave the peanut hierarchy since World War II.
Indeed, the case probably expansive reading of the 1914 gallery CEOs who were wishing A former White House correspondent and now a CNN
would not have been brought Clayton Antitrust Act that now by shareholders and man- for Tuesday’s outcome feeling analyst, Ms. Brower knows the terrain and has secured
if Donald Trump had not would make the modern econ- agements. Megadeals are in like they snatched defeat from interviews with all six living former VPs, though not the
spontaneously and inappropri- omy impossible if accepted. the air as media companies the jaws of victory. incumbent. Their insights,
ately denounced the deal dur- Justice essentially argued adapt to a marketplace being Then again, Mr. Trump’s along with Ms. Brower’s
ing the 2016 campaign. It that even a 0.1% possibility transformed by high-speed preference for Fox News over instinct for the telling anecdote,
would not have brought, too, that a merger might raise broadband. Ditto in the health- CNN has been noted by many make “First in Line” a valuable
if his subsequently appointed prices by 0.1% could be reason care marketplace, where big analysts. Rich Greenfield, of addition to the literature of the
antitrust chief, Makan Delra- enough for a judge to reject it deals like the one uniting BTIG Research, has been par- modern presidency.
him, had not been on record under the law. Aetna and CVS have been ticularly insistent that any Though Ms. Brower’s source
being generically critical of The case was idiotic, and broached to cope with rapid deal by the Murdoch family notes make it difficult to tell
negotiated consent decrees, yet it hung over the entire in- changes in technology and (who also control this news- which details are previously
which his agency had in the dustry as a signal of what regulation. paper) to sell their Fox enter- undisclosed, some seem newsy:
past imposed on big-media might be expected from the Don’t be misled by much of tainment assets will fly Bill Clinton offering not to run
deals to mollify critics without unpredictable and woolly the antitrust thumb-sucking through regardless of who the for president if Al Gore sought
resorting to an unpersuasive Trump administration in a Judge Leon’s decision will call buyer might be. the 1992 Democratic nomination;
and high-risk lawsuit. slew of deals coming down the forth. Tuesday’s ruling was Maybe so, though how Mr. the written agreement governing
Voilà. Mr. Delrahim boxed pike. Let’s not over-intellectu- less important for any prece- Trump sees his interests the Obama-Biden work flow (e.g.,
himself into a corner. An un- alize this: If a court had sided dents it invokes than for what from day to day is not always “all printed words that go to BO go
persuasive lawsuit was his with the Justice Department it says about the incentives easy for outsiders to make to JRB”); the disclosure that Mike Pence
only non-embarrassing way in a case involving CNN’s par- guiding Trumpian regulators sense of. One thing is certain: consults Joe Biden frequently.
forward given his own and his ent company, Trump trust- in the frenzy of deals that are Mr. Trump’s perceptions of We also learn new details about historical episodes.
president’s statements. Unfor- busters would be tempted to about to turn business-chan- friend and foe in the media Before Jimmy Carter used a prime-time Oval Office address,
tunately the lawsuit he filed play the same antibusiness, nel pundits into overexcited business will remain an irre- in July 1979, to scold the American people for “a crisis of
lacked another important in- populist card against a bunch Pekingese. sistible talking point when confidence”—the infamous “malaise” speech—Walter
gredient: any grounding in of proposed deals. These in- Still, the matter may re- possible media deals are be- Mondale advised against it. “Some people around the
reason. clude Sprint’s pending tie-up main not fully settled until ing evaluated. president,” Mr. Mondale says, convinced Mr. Carter that “our
political problems were basically emotional problems. . . . I
couldn’t go for that.”
The Fracturing of the Jewish People Ms. Brower also illuminates the quiet internecine struggle
for influence that pitted Mr. Gore against first lady Hillary
Clinton—a rivalry so fierce that the two took separate
Jerusalem can accept Jews as equal citi- In that sense, Israel fulfills Eighty percent of American planes, carbon footprints be damned, to Nelson Mandela’s
“Israel is the zens, as George Washington the Zionist goal of the “nega- Jews but only 49% of Israeli inaugural. Asked by the author about his working
home of all promised in his famous letter tion of the exile.” This is con- Jews favor allowing Conserva- relationship with Mrs. Clinton, Mr. Gore “declined to answer
Jews,” Prime to the Touro Synagogue. sistent with the existence of tive and Reform as well as Or- and said facetiously he thought the interview might have to
Minister Ben- For most American Jews, permanent Jewish communi- thodox rabbis to officiate at Is- be cut short.”
jamin Netan- the U.S. isn’t a temporary ties outside the state of Israel. raeli weddings, divorces and America’s newest former vice president, Ms. Brower
POLITICS yahu declared resting place interrupting The end of exile as an unchosen conversions. And 73% of reports, displayed in the White House a “surprisingly sharp
in his address ceaseless wandering; it is political condition doesn’t American Jews but only 42% temper that he quickly turned on members of his staff.” Mr.
& IDEAS
to the Ameri- their permanent home. When mean the end of the diaspora of Israeli Jews support both Biden is also said to be “laying the groundwork for a 2020
By William
can Jewish they say “Next year in Jerusa- as a voluntary condition. sexes praying together at the presidential run.” As for the current vice president, Ms.
A. Galston
Committee lem!” at the end of each Pass- The emergence of two per- Western Wall rather than the Brower portrays Mr. Pence as pious but insincere, an operator
Global Forum over Seder, they don’t mean it manent poles of Jewish life— strict separation required by who “perfected his aw-shucks, folksy modesty” and
in Jerusalem last weekend. literally. one in Israel and one in the Orthodox Judaism. “calculated approach to political life” in Indiana, where he
“Every Jew should feel at What if they are wrong and diaspora—offers new possibili- Underlying these policy dif- served as governor. When the coarse “Access Hollywood” tape
home in Israel.” There is a lot the pessimists are right? What ties but also presents new ferences is a deep jurisdic- surfaced during the 2016 presidential run and Donald Trump
of history packed into these if the marchers in Charlottes- challenges. The challenges are tional dispute. Although both telephoned the Pences to apologize, the governor and his wife
terse sentences, and just as ville chanting “the Jews will underscored by an American American and Israeli Jews be- initially refused to take the call, Ms. Brower writes. Their
much controversy. not replace us” are the harbin- Jewish Committee survey re- lieve that they are part of one eventual decision to stand by the GOP nominee, she says,
The assertion that Israel is gers of a momentous shift leased as its conference con- people, and that they benefit showed “their joint ambition overruling their concerns.”
the home, not just a home, for from civic nationalism to white vened in Jerusalem. from one another’s strength,
all Jews is the core of classical Christian identity as the basis they are divided by citizen-
Zionism. It implies that no of the American polity? ship. Relying on the idea of The experience of vice presidents in the
other country can be a home, This is where the existence Israel has become a shared peoplehood, 53% of postwar years has included rivalry, neglect and
even if the Jews living there of Israel becomes a transfor- red state while U.S. American Jews believe that it
think it is. The Jews of Andalu- mative fact. A poem by Robert is appropriate for them to in- even, at times, a true spirit of partnership.
sia thought they were at Frost contains a thought-pro- Jews remain blue. fluence Israeli security issues.
home—until Christian rulers voking line: “Home is where, Speaking as citizens of a sov-
arrived and expelled them in when you have to go there, ereign state, 68% of Israelis This is uncharitable. Ms. Brower had already told us that
the 15th century. The Jews of they have to take you in.” Is- In effect, Israeli Jews are a disagree. the Pences had sized up Mr. Trump’s strengths and
Germany thought they were rael is the only country that red state while American Jews When Israeli policy princi- weaknesses unflinchingly and believed, as devout Christians,
fully German until a regime de- guarantees immediate entry are a blue state. Seventy-seven pally affects Israeli citizens, that Mr. Pence’s ascension to the ticket represented a calling
fined by murderous hatred of and citizenship to every Jew percent of Israeli Jews ap- noncitizens may offer advice from God. So why credit ambition rather than a sense of
all Jews came to power. who knocks on its door. This is prove of President Trump’s but cannot demand influence duty as the prime factor in the couple’s decision making?
But today, for the first time the sense in which Israel is the handling of relations between on the outcome. But when Is- “First in Line” properly traces the empowered vice
since the Talmudic era, there home for all Jews. the U.S. and Israel, compared rael acts as the guardian of the presidencies of recent years to Carter-Mondale, the first
are two strong, self-confident It is also why Israel means with only 34% of American patrimony of the entire Jewish administration in which the chief executive treated the vice
centers of Jewish life. One of the end of Jewish exile. For Jews. Eighty-five percent of Is- people, as it surely does with president as a true partner. In a Fox News interview in March
them embodies the Zionist two millennia, Jews faced a raeli Jews, but only 46% of the Western Wall, it has a 2017, Mr. Pence told me that he sees his boss daily and
proposition; the other rejects terrible choice between perse- American Jews, back Mr. greater responsibility to weigh confides his views in conversation rather than writing, even
it outright. American Jews, the cution and statelessness, as Trump’s decision to recognize the views of the wider Jewish as he takes notes to record Mr. Trump’s flurries of ideas. Yet
largest diaspora population, when the SS St. Louis, Jerusalem as Israel’s capital community. Because security Ms. Brower places Trump-Pence in the same category as Ike-
don’t believe they are living in crammed with Jewish refu- and move the embassy there. issues occupy a gray zone in Nixon and LBJ-Humphrey, power relationships in which the
exile, or even in danger. Amer- gees, wandered from port to Fifty-nine percent of American this continuum, Jews in and presidents neglected, even abused, their understudies.
ica is different, they insist. To port in 1939 looking for a Jews would support disman- outside Israel will continue to Alas, numerous problems plague the prose in “First in
the extent that America rests country that would accept its tling at least some settlements debate not only the substance Line,” the most serious of which is narrative incoherence.
on civic principles rather than passengers. The creation of as part of a final settlement of these issues but also their Obama-Biden marked the rare instance when the principals’
ethnic or religious identity, its Israel gave Jews a third with the Palestinians; only 39% respective claims to a stake in interpersonal dynamic improved over time, Ms. Brower
liberal democratic institutions choice. of Israeli Jews would do so. their resolution. asserts, only to report later that “eventually, [Obama’s] West
Wing stopped letting [Biden] go anywhere near Congress.”
In her treatment of Sarah Palin, John McCain’s running mate
A Major League Pension Error in 2008, Ms. Brower relates the conventional wisdom that
vice-presidential nominees “cannot help their candidate get
elected, but they can certainly hurt,” and she later quotes
By Mike Stenhouse years of roster duty. The new 2011 to provide retirees who They are in their 80s now. Dick Cheney saying: “You’ve got to remember, no one is
I
standards cover me, but my played between 1947 and 1979 What will they get by on when voting for vice president.” Midway between those passages,
will soon start receiving a dad and other living ex-big with a “stipend” based on they reach their 90s? however, Ms. Brower insists “there was no denying that
pension from Major League leaguers from his era aren’t their roster time. Allowing for This situation can only be Johnson helped Kennedy win the South.” Elsewhere Ms.
Baseball. Yet my dad, who covered. a sizable New York City in- rectified if the Players Associ- Brower writes: “If Cheney was Darth Vader in the White
racked up more active-roster While it isn’t standard for come-tax bite, my dad’s sti- ation chooses to stand up for House, ruthlessly seeking power and using American
time in the big leagues, is in- nonvested employees to be pend comes to about $5,500 a its own retirees. The league military forces to upend the sovereignty of foreign nations,
eligible for a pension. The retroactively included in a year. The gesture was wel- has enjoyed 15 consecutive that was fine with Bush.” This is history as caricature.
league should change that this pension system, it also isn’t come, but inadequate. years of rising revenue, thanks And clichés proliferate. Joe Kennedy was “incredibly
year. unprecedented. Major League Consider the incongruity: A to skyrocketing income from wealthy,” LBJ was “consumed by the quagmire of the
Before 1980, a ballplayer Baseball has previously ex- more recent retiree than my the sale of digital and televi- Vietnam War,” and the Clinton-Gore relationship was
needed four years of big- tended pension status to other dad, who might have pitched sion media rights. Last year “nothing short of Shakespearean.” Twelve of 15 chapters,
league service to be eligible only a handful of career in- Major League Baseball pulled counting the prologue and epilogue, open with similarly
for pension status. The nings, qualifies for a full penin more than $10 billion for weak-sounding constructions, like “The Trumps were
post-1980 collective-bargain- Baseball should do sion and lifetime health-care the first time. It’s safe to say hunkered down at their golf club” or “Donald Rumsfeld . . .
ing agreement allowed eligi- right by those who coverage. That retiree’s the national pastime is in was summoned to Nixon’s penthouse.” My favorite: “Walter
bility for a lifelong pension af- spouse will receive his pension good financial shape. Mondale was having lunch.” I’m hooked!
ter only 43 game days on a played before 1980. when he dies. When my dad, It’s getting late in the game “First in Line” inevitably reminds us that, in the last century,
Major League roster. The cur- who pitched almost 400 ca- for this dwindling cohort of re- five vice presidents moved up due to death or scandal. For this
rent minimum benefit is reer innings, eventually passes tirees, who gave the best years reason, the chief duty of the vice president, particularly in
$34,000 a year; the maximum groups of former players. In on, his stipend goes with him. of their lives to the game we the nuclear age, is not attending funerals or presiding over
is $220,000. the late 1990s the league cre- My mother won’t receive a all love. They only want the the Senate but meeting the most basic human requirement
In the 1980s, I played parts ated a pension plan for one- nickel. pension they feel they have of self-preservation. Franklin Roosevelt understood this in
of five seasons with the Mon- time Negro Leaguers and other Many former players from earned. Baseball can afford to 1944, when the Manhattan Project was nearing its objective
treal Expos, Minnesota Twins veterans who retired before my father’s era who don’t have be generous to them. and he advised ticket mate Harry Truman—with whom FDR
and Boston Red Sox, accumu- 1947—the year the pension pensions have suffered bank- would meet privately only twice in the 82 days of his fourth
lating 2½ years of roster sta- fund was established. ruptcy or home foreclosure. Mr. Stenhouse was a Major term—against the use of airplanes for campaign travel. “One
tus. My dad, who started the Recognizing that guys like Some are so poor they can’t af- League Baseball player from of us,” Roosevelt said, “has to stay alive.”
1962 All-Star Game as a rookie my dad had drawn the short ford health insurance. My par- 1982-86 and is CEO of the
pitcher for the Washington straw, the organization and ents’ personally invested re- Rhode Island Center for Free- Mr. Rosen, a former chief Washington correspondent for Fox
Senators, accumulated three the players union agreed in tirement funds are dwindling. dom and Prosperity. News, is the author of “Cheney One on One,” among other books.
OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR
Promises, Nuclear Promises Quarterly Guidance Versus the Long Term
D
onald Trump and Kim Jong Un both re- Asked how the dismantling will be verified, Regarding Jamie Dimon and War- Messrs. Buffett and Dimon allege
ceived what they most wanted from Mr. Trump said “it’s going to be achieved by ren E. Buffett’s “Short-Termism Is that guidance on a quarterly basis
Harming the Economy” (op-ed, June hurts the underlying economy and
their one-day summit in Singapore on having a lot of people there, and as we develop
7): While there is pressure from quar- yet they provide no evidence for
Tuesday: Images of the two a certain trust. And we think terly earnings, the amount spent on that statement. Corporate earnings
men shaking hands, talking Trump says he can tell we have done that.” But the compliance costs, financial reporting have been growing, employment
across the table and getting
along famously. Whether this
Kim has changed, but two sides announced no de-
tails on which sites inspectors
as well as other regulations have hin- numbers are better and GDP has
dered innovative companies from go- been increasing. It is hard to allege
photo-op summitry achieved the evidence is scant. would be allowed to see or ing public on the stock exchange. that the U.S. economy has suffered;
anything beyond the bonho- when. While the authors speak mountains it is much easier to say that these
mie is a lot less clear. If the past is a guide, all of of truth, their suggestions don’t solve forecasts are to blame for a whole
In Mr. Trump’s telling, his willingness to en- this will be subject to painful and perhaps end- the problem. host of factors.
gage in personal diplomacy has persuaded the less negotiation, and the North will insist on MARK ZASHIN What information do investors
young Kim to abandon the nuclear-weapons concessions from the U.S. at every stage. Having Short Hills, N.J.
need on an interim basis to gauge
how a company is doing in fulfilling
program that he and his forbears have spent de- committed to talks, Mr. Trump will be under
Managers and investors would do its business goal for a given year?
cades building. Mr. Trump gave Kim the legiti- pressure to make more concessions lest Kim well to appreciate what Mr. Buffett Some metrics will have to be pro-
macy of equal billing on the world stage, but the walk away. proved running Berkshire Hathaway vided in advance of the actual quar-
risk was worth the gamble and has paid off in Mr. Trump made the first large and unilat- the past 54 years: Managers can terly release of numbers, otherwise in
an historic change of heart. eral concession Tuesday when he cancelled train their shareholders. Berkshire a great many cases investors will be
“Chairman Kim and I just signed a joint what he called U.S.-South Korean “war games.” has never engaged in short-term be- looking at results for a given quarter
statement in which he reaffirmed his ‘unwaver- The exercises are a North Korean bugbear, and havior, whether quarterly earnings and not know if a business is on
ing commitment to complete denuclearization Mr. Trump even adopted the North’s language guidance or otherwise, and today course.
of the Korean Peninsula,’” Mr. Trump told the in calling them “very provocative.” But their vi- boasts a unique shareholder group Managements make detailed fore-
press after the summit. “We also agreed to vig- tal purpose is to maintain readiness in case of that trades far less, holds far longer casts on a quarterly basis for their
orous negotiations to implement the agreement an attack from the North, and his announce- and has enjoyed far greater returns boards and lenders, but somehow
than any peer. even watered-down versions of this
as soon as possible. And he [Kim] wants to do ment startled U.S. allies. Restarting the exer- PROF. LAWRENCE A. CUNNINGHAM data, due to confidentiality reasons,
that. This isn’t the past. This isn’t another ad- cises is possible, but the price could be an end George Washington University should not be presented to equity in-
ministration that never got it started and there- to the talks. Washington vestors. Sounds like management
fore never got it done.” Mr. Trump said U.S. sanctions will remain in would prefer not to have its feet held
In this telling, the two leaders have mapped place amid negotiations, but lifting them will Of course having to have your feet to the fire every so often.
out a non-nuclear future, Mr. Kim has agreed be a prime negotiating target for the North. held to the fire isn’t the most desir- STEVE KAUFMAN
to a radical change in policy, and all that’s left China was quick on Tuesday to call for sanc- able thing. Why would anyone won- New York
is for the two sides to work out the details. tions relief, and Mr. Trump said Beijing has al- der why CEOs would like to see quar-
Peace is at hand. ready eased enforcement “over the last couple terly guidance done away with? I Decades ago as a young executive, I
i i i of months, but that’s okay.” Okay? Does he want agree with the authors’ statement met John Mars of Mars Inc. The com-
that investors are entitled to get fi- pany had made a very large invest-
Yet everything hangs on those details, not the sanctions in place or not?
nancial and operating metrics on a ment in a global expansion that was
on the promises, which North Korea has made Amid all the smiles and handshakes, no one more frequent than annual basis so costing a lot with no end in my lim-
and reneged on many times. And there is little should forget that Kim rules North Korea as a they can gauge how the business is ited sight. When I gamely inquired
in the joint communique or in North Korean vast penal colony. It is also the regime that kid- doing on an interim basis. But with- why, Mr. Mars replied: “I am not do-
statements to demonstrate that Kim has com- napped and killed American Otto Warmbier. Mr. out prior guidance as to where those ing it for me. I am not doing it for my
mitted to do what Mr. Trump claims. Trump at least acknowledged the Warmbier goal posts are being set, the same children. I am doing it for my grand-
The communique itself is a terse and general family, though his surmise that Otto’s death volatility and gyration in stock prices children.” Lesson learned.
statement promising to “contribute to peace changed the political dynamics in the North that they see being caused by quar- JOHN RUFFLEY
and prosperity on the Korean Peninsula.” In re- seems fanciful. terly earnings forecasts is as likely. Summit, N.J.
turn for Kim’s commitment to denuclearize, the Perhaps guaranteeing Kim’s survival in
statement says, “President Trump committed power is necessary to eliminate his nuclear
to provide security guarantees” to the North. threat to the U.S. mainland. But there is no ex-
There are no details about timing or process or cuse for a nuclear deal that doesn’t entirely Taiwan Is Not a Part of the People’s Republic
specific goals. Asked at his press conference eliminate the program—with on-demand in- Regarding “Avoiding Apologies to specting local culture and sensitivity,
about the lack of details, Mr. Trump said “we spections everywhere. This is what Mr. Trump China” (Business News, June 4): It they seem to have only China’s sensi-
didn’t have time.” is insisting for Iran, and he can’t adopt a lesser must be stressed that Taiwan is not, tivity in mind. The truth is, they are
The danger for Mr. Trump is that he is now standard on North Korea. nor has it ever been, part of the Peo- thinking only of the sheer scale of
committed to the same open-ended negotiating Donald Trump’s diplomacy is transactional ple’s Republic of China. This is the the Chinese market. Yet one
process that trapped his predecessors. The and personal, so the test of this summit will be reality that China refuses to face up shouldn’t forget that China is still a
President claimed at his press conference that whether his gut instinct is right about Kim’s to while pressuring the world to ac- totalitarian regime. Kowtowing to
Kim had vowed to dismantle a missile site, but commitments. We hope it is, but we’ll believe cept its false claim. China puts democratic values at risk
that may be the same site the North is already it when Americans are packing and hauling The consultants quoted in the arti- and will have a grave effect on the
cle suggest that companies refer to liberal international order. The
dismantling. away the missiles and enriched uranium. the usage of China’s territories used global community should reject
by international organizations such China’s intimidation tactics and its
Tariffs and the Tax Cut as the United Nations. The problem
here is that China is using the very
false narrative. International compa-
nies will do well to note that caving
M
false claim it pushes onto the multi- in to China’s coercion now will only
ore than a few conservative intellec- or a household making at most about $70,000 national companies to obstruct the invite more.
tuals have warmed to Donald Trump’s a year in adjusted gross income. The Tax Foun- democratic nation of Taiwan from BRIAN SU
trade protectionism because it sup- dation says auto tariffs could erase nearly 30% participating in these organizations. Taipei Economic and Cultural Office
posedly helps blue-collar Americans. But what of that family’s after-tax income bump. Ditto for When companies talk about re- New York
if his tariffs do the opposite? the third quintile, or a family earning no more
Erica York at the Tax Foundation crunched than $43,000 a year.
some numbers recently showing that Mr. Tariffs are inherently regressive because Dumbing Down New York’s Public Schools
Trump’s proposal for a 25% tariff on imported low-income Americans spend more of their in- Regarding your editorial “Pro- lowering standards. I believe these
cars, trucks and parts could eliminate half of the come on household goods. Commerce Secretary gressive Education Today” (June 7): changes could interfere with a sys-
income gains from tax reform for millions of Wilbur Ross has argued that no one will notice I am a rising freshman at Stuyve- tem that in my experience is fair
Americans. Those in the lowest income quintile price increases—what’s a few cents more for a sant High School. I have been fol- and accessible. When I studied for
could lose 49% of their tax gains. Say for ease of can of soup? But people in Mr. Ross’s income lowing your coverage on the the entrance exam, also known as
calculation that these folks received a $100 after- strata are not the Trump base. changes New York Mayor Bill de the SHSAT, I had no tutor and took
tax bonus from changes like the doubled stan- The Commerce Department is still looking Blasio plans to make to the admis- no course explaining the study pro-
dard deduction. After auto tariffs that would be at whether a muffler is a national security sions process for Stuyvesant and the cess. I simply reviewed the Kaplan
whittled down to $51, Ms. York notes. threat under Section 232 of the Trade Expan- other specialized high schools by Exam Prep book that I got at my lo-
cal public library after reaching out
The tariffs shave gains in all income brack- sion Act of 1962. President Trump should aban-
to the coordinator of the free
ets, but no one is hurt more than the poor and don the idea lest Americans wonder if they re- The Disabilities Act Often SHSAT prep courses offered there. I
middle class. Take the fourth income quintile, ally benefitted from that tax cut. was accepted to Stuyvesant High
Overshoots Intended Mark School without paying for a tutor or
Don Wagstaff and Paul Hale (Let- course. I don’t believe that my case
Justice’s Antitrust Humiliation ters, June 6) ask different versions is exceptional.
W
of the same rhetorical question re- What feels the most gratifying is
ell, that was a rout. Federal Judge other vertically integrated companies. garding accommodating the disabled knowing that each student in my
Richard Leon on Tuesday gave the Government lawyers relied heavily on testi- after college. Both make the point class was admitted on the exact
Justice Department a much-needed mony by a University of California, Berkeley pro- that changing metrics or providing same standards. I believe that any
kick in the shins by greenlight- fessor, but several economists customized work environments can- reforms must maintain this level
Judge Leon blows away disputed his models and Judge not be continued in the workplace. playing field.
ing AT&T’s merger with Time They are wrong. JENNA ROBERTS
Warner without conditions.
President Trump’s antitrust
the federal case against Leon said he largely agreed
with their critiques.
The Americans With Disabilities New York
Act is one of the best ever examples
chief Makan Delrahim should AT&T-Time Warner. The government also cited of the law of unintended conse- With Mayor de Blasio so intent on
reflect long and hard on how expert testimony from AT&T quences. No one would argue diversity, rather than quality, I sug-
the government so misjudged competitors. But “in the final against maximizing job opportuni- gest he start with the makeup of the
the law and the media marketplace. analysis, the bulk of the third-party competitor ties for disabled individuals. The New York Yankees and see the reac-
The Justice Department last November sued testimony proferred by the Government was statute, however, has been abused tion of the team’s management and
to block the $85 billion deal on the dubious speculative, based on unproven assumptions or resulting in exactly the types of ac- the fans. Certainly the percentage of
theory that the combined company would hinder unsupported—or even contradicted—by the Gov- commodation decried by Messrs. non-Hispanic European-Americans
Wagstaff and Hale. and Asian-Americans on the team
competition by forcing competitors to pay hun- ernment’s own evidence,” Judge Leon noted.
If the accommodations described doesn’t reflect their proportion of
dreds of millions of dollars more per year for To significantly increase market share, AT&T in the letters are “reasonable” and the population of the city.
Time Warner’s “indispensable” programming. would have to withhold content from most com- wouldn’t pose “undue hardship,” NELSON MARANS
If rivals refused, AT&T could supposedly with- petitors, which would reduce Time Warner’s $31 employers are required to provide New York
hold its content and grab rivals’ customers. billion in annual advertising and subscription them. Employers are presented with
The theory ignores the “tectonic changes” in revenue. This would be self-defeating. A major requests every day to accommodate
the media and broadband markets, as Judge goal of the merger is to monetize customer data employees who claim they cannot Pepper ...
Leon explained in his 172-page analysis. “Generic as YouTube and Facebook do. work with a certain supervisor,
statements that vertical integration ‘can’” lead Judge Leon also pointed out that Comcast’s can’t handle the case load or have
And Salt
to “‘an unfair advantage over its rivals’ do not acquisition of NBCUniversal in 2011 did not to take a break 15 minutes every THE WALL STREET JOURNAL
come close to answering the question before the cause content prices to increase. And Justice hour. Often employers provide
seemingly absurd accommodations,
Court,” he added. couldn’t explain why or how conditions imposed
not because the statute compels
Lo, video subscriptions are declining while TV on that merger failed to prevent anti-competi- them to do so, but because the cost
ad revenues have plateaued. Consumers are “cut- tive conduct. Thus, the government “failed to of lawsuits alleging failure to ac-
ting the cord” from cable and buying cheaper al- meet its burden to show that the proposed commodate is quantifiable, while
ternatives over the web. Facebook and Google’s merger is likely to substantially lessen competi- the diminution in productivity from
digital ad platforms have surpassed TV advertis- tion,” Judge Leon concluded. “overaccommodating” is more diffi-
ing in revenue. Google’s YouTube boasts 1.8 bil- Justice could have accepted AT&T’s offer to cult to measure.
lion registered monthly viewers, which is 72 arbitrate content fees, yet it refused to settle for MICHAEL H. LEB
times as many as AT&T’s TV subscribers. anything short of divestiture of Turner Broad- Pasadena, Calif.
The last time Justice went to court to stop casting. Bad call. President Trump famously op-
a vertical merger was 1977, and it lost. Unlike posed the merger during the 2016 campaign, but Letters intended for publication should
with horizontal mergers between direct com- hostility to CNN isn’t a legal argument. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
petitors, the government must prove that a ver- Judge Leon has wisely refused to stay his rul- or emailed to wsj.ltrs@wsj.com. Please
tical deal would reduce choice and harm con- ing if the government appeals since Justice has include your city and state. All letters
sumers. Yet Justice couldn’t show how a already delayed the deal’s closing by 18 months. are subject to editing, and unpublished
combined AT&T-Time Warner would pose any Mr. Delrahim should avoid another humiliation letters can be neither acknowledged nor “When it sounds too good to be true,
returned.
more of a threat to competition than these by conceding defeat and walking away. get the auditors involved early.”
OPINION
Don’t Be Who Unraveled the New World Order?

So Sure the By David M. Smick drug, with potentially negative side
E
Gig Is Up uropean Council President
Donald Tusk recently said
effects, without a long-term plan for
the patient’s health.
The U.S. economy—the patient—
that Donald Trump’s ap- has an amazing ability to innovate
By Liya Palagashvili proach to trade, climate and reinvent. A long-term plan is
D
change and the Iran nu- necessary to preserve and protect
ata confirm the “gig econ- clear deal is undermining “the rules- these unique strengths in today’s
omy” is taking off—or do based international order.” This is increasingly lawless world. Espe-
they? A 2017 Upwork study absurd. The global order began un- cially since the values of free and
found that 36% of the labor force raveling long before Mr. Trump’s de- open economies, fair play and the
engaged in some form of contract but on the world stage. rule of law are increasingly out of
or freelance work in 2017. In 2015 Start in 1989. That remarkable fashion.
the Mercatus Center counted 1099- year saw the fall of the Berlin Wall, Tariffs are a poor substitute for
MISC and W-2 tax forms, which re- the collapse of the socialist model, strategic planning about the future
GETTY IMAGES/ISTOCK
port contractor and employee in- and the rise of globalization. By the of the global economy. Instead of
come, respectively. The number of early 1990s, China, India, Eastern tariffs, the U.S. should form a “val-
W-2s declined 3.5% between 2000 Europe and a host of commodity- ues coalition of the willing.” This
and 2014, while the 1099-MISC producing countries had joined the group of nations would agree to a
count grew 22% (albeit from a much global capitalist club. tougher order that demands more
smaller base). That was the beginning of the so- transparency, accountability and fair
But then the Bureau of Labor Sta- called Washington Consensus—a play, along with fewer tariffs and
tistics weighed in. Its Contingent new global order based on deregu- the U.S. dollar, eschewed consump- with reckless bank leveraging, other barriers to economic entry.
and Alternative Employment Ar- lating market access, liberalizing tion and refashioned their econo- helped set the stage for the financial This would be backed by the rule of
rangements survey, released last capital and trade flows, encouraging mies as large export platforms. The crisis. In 2009 British Prime Minis- law.
week, caused a flurry of clickbait domestic competition, fortifying the global ocean of excess savings grew ter Gordon Brown declared, “The old Not all economies would make the
headlines like “Everything we rule of law, and reducing taxes, debt larger. Washington Consensus is over.” cut. Europe is a mixed bag. After the
thought we knew about the gig and market subsidies. By 1995, the But the story went downhill from This global order still had cre- Brexit vote, German policy makers
economy is wrong” and “Gig econ- leaders of this new world order es- there. Many members of this new or- ated unprecedented wealth, helping immediately feared that with Britain
omy jobs aren’t really taking over tablished the World Trade Organiza- der, including China, failed to deliver to raise a billion people out of pov- out of the European Union, Berlin
America’s workforce.” tion, which China joined six years erty. But it also had led to wealth would be isolated. It would have to
later. inequality, flat real wages, and an fight off Brussels’ mercantilist, anti-
Much of the world initially em- It wasn’t Trump. The international financial system free-market technocrats without an-
Contract work has fallen as braced the Washington Consensus.
global economic consensus hugely out of balance. Central other large country as an ally.
Countries became more productive, banks injected tens of trillions of In China and other mercantilist
a share of employment, a which lowered real wage costs glob- began falling apart years dollars of liquidity, trying to pro- economies, production bears no rela-
BLS study finds. But there ally. Global trade grew at more than
before he entered politics. tect asset prices based on an order tion to market demand, the definition
twice the rate of global economic that no longer existed. of the word “contract” is the begin-
are reasons to doubt it. output. Soon an ocean of excess sav- It eventually became clear that the ning of negotiations, and cyberwar-
ings began to swirl around a newly original vision of a new global eco- fare is simply part of business. Those
liberalized international financial on their promises. They created ob- nomic order was only a romanticized countries should be treated sepa-
But there are reasons to doubt system, a lot of it directed to U.S. as- stacles, invented hardship scenarios dream. Many nations took part in the rately as such.
the BLS survey, which was last con- sets. Long-term U.S. interest rates and developed loopholes to avoid global system—but not to liberalize The world has changed since
ducted in 2005. The new survey dropped to abnormal lows. Financial their commitments. In some cases, their economies or make them more 1989. The global order is gone. It is
found that as a percentage of all risk became underpriced. Equity they engaged in outright intellec- transparent and accessible. They time to build a new one.
workers, those in alternative em- markets boomed. tual-property theft, currency manip- came to game the system.
ployment arrangements—including Even the Asian crisis of the late ulation and cyberwarfare. The great In response, the Trump adminis- Mr. Smick is founder, chairman
contract, freelance and on-call 1990s failed to end the party. Indeed, vision suddenly blurred. tration has offered some one-off tar- and CEO of the Washington global
work—was lower in 2017 (10.1%) many countries learned and grew By 2007 the world-wide under- iffs. But this is like a doctor writing macroeconomic market advisory firm
than in 2005 (10.7%). from it. They tied their currencies to pricing of financial risk, combined out a prescription for an aggressive Johnson Smick International Inc.
Does this mean that the gig econ-
omy is shrinking? Not necessarily—
for three reasons. First, the BLS sur-
vey measures only workers whose
primary job is a contractor or free-
The Attack on Educational Excellence
lancer. Thus, for example, 69% of New York Mayor Bill school in Washingtonian magazine groups isn’t clear. Deciding which standardized tests. A spokeswoman
Uber drivers are not considered in de Blasio stands 6½ noted that administrators are under groups deserve special treatment is for Success Academy told me by
the BLS study because they also feet tall but still constant pressure from outsiders to also problematic. Schools today that email that the acceptance rate for
have payroll jobs. Studies by Up- managed to come up increase the number of black and La- are considered “too Asian” were in Success applicants at the city’s elite
work, McKinsey Global Institute and short last week. The tino students by watering down the times past branded “too white” or schools this year was more than
MBO Partners all account for sec- progressive Demo- selection criteria. “too Jewish.” double that of black and Latino stu-
ondary work and report a signifi- crat wanted to elimi- In the upside-down thinking of af- Mr. de Blasio and his fellow edu- dents citywide, and “there were
UPWARD
cantly higher proportion of freelanc-
MOBILITY nate the entrance firmative-action advocates, academi- cation egalitarians also conveniently three Success middle schools whose
ers and contractors. exam for the city’s cally rigorous schools should be more ignore the ample evidence of minor- students of color were three to four
By Jason L.
Second, the BLS statistic is a ra- eight elite public focused on achieving racial balance ity academic success because it un- times as likely to gain admission.”
Riley
tio of workers in alternative em- high schools to en- and less focused on maintaining high dermines their argument that the This year, Success Academy gradu-
ployment arrangements to the total sure that more black standards. Asian displays of academic problem is the exam requirement, ated its first high-school class, and
number of people employed. That and Hispanic students were admit- excellence therefore become problem- all of its members are college-bound.
can be misleading. As the work- ted. State lawmakers, citing opposi- atic. Asians are somehow to blame These students didn’t need someone
force grows, the denominator in- tion from Asian families, blocked the for outperforming others, and they Schools considered ‘too to make school admissions tests less
creases so that the ratio goes move. Good for them. are to be punished for the historical Asian’ were once branded rigorous. They needed educators and
down. In fact, total employment The number of available slots at injustices that blacks suffered at the education-policy makers who be-
grew more than 10% between these schools is fixed, and last year hands of whites. This is what happens ‘too white’ or ‘too Jewish.’ lieved in them.
2005-17. Alternative employment, Asian students were awarded 52.5% when you try to reconcile what is ir- Similarly, Mr. de Blasio doesn’t
as measured by the BLS, grew only of them, according to the city’s De- reconcilable: group preferences on need to overhaul admissions at high-
slightly less quickly. partment of Education. By contrast, the one hand and equal treatment of not poor exam preparation. But if the performance schools to boost per-
Third, the BLS data may have a whites comprised 28% of the total, individuals on the other. mayor is genuinely concerned with centages of minority students. In-
sampling bias, because the survey is while Latinos and blacks were 6.5% But Mr. de Blasio’s decision to call increasing the number of black and stead, he could give successful
conducted as an in-person or live and 3.8%, respectively. You’ll find for an end to the test, instead of call- brown students matriculating at top charter schools, private schools and
telephone interview. Unadjusted dif- similarly lopsided racial and ethnic ing for better test preparation, is high schools like Bronx Science and parochial schools more access to un-
ferences in traits of contractors and results in other large cities—Boston, also revealing. What he and other Stuyvesant, he ought to pay a visit to derprivileged students—something
gig workers, such as working longer Chicago, Philadelphia—where black critics of selective schools are saying one of New York’s high-achieving he has resisted out of fealty to
hours, affects whether they are likely and Latino students are under- is that these low-income black and public charter schools. teachers union leaders who vehe-
to be absent or missed during the represented in academically selective Latino kids will never measure up, so Success Academy, for example, mently oppose school choice. Here’s
survey, and can lead to undercover- public high schools while whites and we must stop trying to measure operates 46 public charter schools in an idea: Leave the best schools
age of that type of worker. Asians are overrepresented. them. The mayor and his allies seem New York. They serve more than alone, and make sure the next mayor
A notable study by economists Asian families in particular fear to have given up on the very stu- 15,000 students, the vast majority of cares less about union support and
Lawrence Katz and Alan Krueger that replacing an objective test with dents they claim to be helping. How, whom are poor and black or Latino. more about the 47,800 children now
used the same questions as the BLS what amounts to a racial quota sys- exactly, you help one group by hold- Success students regularly shellac sitting on New York’s charter school
survey, but worked with a different tem would come at the expense of ing it to lower standards than other their peers in the city and state on waiting list.
sample population (the RAND Amer- Asian children. Given that other
ican Life Panel) and used an internet schools and programs for high-
survey. It found that alternative em-
ployment arrangements as a
worker’s primary form of employ-
achieving students around the coun-
try are being pressed to become
more “diverse,” those concerns are
Godspeed to AT&T-Time Warner
ment grew more than 50% between understandable. By Michael D. Smith million households use a subscrip- asked readers to imagine, policy
2005 to 2015, when they collected After the Montgomery County And Rahul Telang tion streaming service at least once makers might decide they need to
W
their data. school district in Maryland changed a month. AT&T–Time Warner wants regulate Silicon Valley the same
It would at least be hasty to con- admissions standards for gifted-and- hen the Justice Department a piece of this growing market. way that the steel, rail and tele-
clude that alternative employment talented programs—by broadening filed suit last year to block The problem is that breaking in phone industries were in the 20th
arrangements declined between the definition of “gifted,” among the merger of AT&T and isn’t easy. Readers of The Wall Street century.
2005 to 2017. And more important, other adjustments—black and Latino Time Warner, its argument hinged Journal may remember an article Given the dominance of Silicon
the BLS data are not an accurate de- acceptance rates ticked up while on seemingly reasonable fears of a last month titled “Tech’s Titans Tip- Valley’s internet giants, it makes no
scription or measure of gig-economy Asian admissions fell. Thomas Jeffer- monopoly. On Tuesday a federal dis- toe Toward Monopoly.” Its author, sense to prevent AT&T and Time
work, since they exclude most work- son High School for Science and trict court disagreed. “The govern- technology columnist Christopher Warner from merging. These com-
ers engaged in this type of work Technology is an elite magnet school ment has failed to meet its burden,” Mims, explained that the unique panies aren’t trying to join forces
through supplementary income. in Northern Virginia that also uses Judge Richard Leon ruled, “to es- because they want to take control
an entrance exam. The school’s ac- tablish that the proposed ‘transac- of a dying industry; they want to
Ms. Palagashvili is an economics ceptance rate matches Georgetown tion is likely to lessen competition The $85 billion merger be allowed to compete in a new
professor at State University of New University’s (just 17%) and its stu- substantially.’ ” one.
York-Purchase and a research fellow dent body last year was 2.2% Latino, This is great news for the enter- isn’t aimed at dominating Judge Leon’s decision was wise.
at the Classical Liberal Institute at 1.5% black and nearly two-thirds tainment industry—and for anybody cable TV. It’s an attempt The focus for courts and antitrust
NYU Law. Asian. A 2017 profile of the high worried about genuine monopolies. agencies today should be to ensure
Here’s why: In bringing the suit, the to take on Silicon Valley. healthy competition in the new en-
Justice Department’s antitrust chief, tertainment landscape. With any
Makan Delrahim, argued that AT&T– luck, AT&T and Time Warner will
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Time Warner would quickly domi- characteristics of digital markets shortly be integrating content cre-
Rupert Murdoch Robert Thomson nate the market for cable television, have allowed a small number of in- ation and distribution. Other compa-
Executive Chairman, News Corp Chief Executive Officer, News Corp
allowing the combined behemoth to ternet giants—among them Amazon, nies, including Disney, probably will
Matt Murray William Lewis
Editor in Chief Chief Executive Officer and Publisher
raise prices at will. That sounds bad, Google, Netflix and Facebook—to follow suit. That will give them lever-
Karen Miller Pensiero, Managing Editor DOW JONES MANAGEMENT:
right? Nobody wants that. dominate their industries and fore- age to compete against the tech gi-
Mark Musgrave, Chief People Officer; But think about it for a minute. stall entry by competitors. ants that are fast becoming the dom-
Jason Anders, Chief News Editor; Thorold Barker,
Europe; Elena Cherney, Coverage Planning;
Edward Roussel, Chief Innovation Officer; Is this merger really about cable These companies have put seri- inant entertainment players.
Anna Sedgley, Chief Operating Officer
Andrew Dowell, Asia; Neal Lipschutz, Standards; TV? That market is shrinking. Last ous money into customer connec- We have no idea who will ulti-
OPERATING EXECUTIVES: year only 79% of American house-
Meg Marco, Digital Content Strategy;
Ramin Beheshti, Product & Technology;
tions, data analytics and back-end mately win this battle for the future
Alex Martin, Writing; Michael W. Miller, Features
& Weekend; Shazna Nessa, Visuals; Kenneth Breen, Commercial; holds paid for cable or satellite sub- systems, and these investments of America’s living rooms. But we
Rajiv Pant, Technology; Ann Podd, News Jason P. Conti, General Counsel; scriptions, down from 84% in 2014 scale very well. Netflix has pene- do know one thing for certain: In a
Tracy Corrigan, Chief Strategy Officer; and from a peak of 88% in 2010.
Production; Matthew Rose, Enterprise;
Frank Filippo, Print Products & Services;
trated more than half of U.S. house- market with more choices, custom-
Michael Siconolfi, Investigations;
Nikki Waller, Live Journalism; Steve Grycuk, Customer Service; Would AT&T and Time Warner re- holds. Google and Facebook control ers will win.
Stephen Wisnefski, Professional News; Kristin Heitmann, Chief Commercial Officer; ally ink an $85 billion deal merely almost three-quarters of online ad-
Nancy McNeill, Advertising & Corporate Sales; to gain control of a business in ob-
Carla Zanoni, Audience & Analytics
Christina Van Tassell, Chief Financial Officer;
vertising. Amazon does nearly half Messrs. Smith and Telang are
Gerard Baker, Editor at Large vious decline? of all online retail sales. These are professors of information systems
Suzi Watford, Chief Marketing Officer;
Paul A. Gigot, Editor of the Editorial Page; Jonathan Wright, International Of course not. This merger is astonishing numbers. at Carnegie Mellon University,
Daniel Henninger, Deputy Editor, Editorial Page DJ Media Group: Almar Latour, Publisher about something else. It’s about Now that these tech giants have where they co-direct the Initiative
WALL STREET JOURNAL MANAGEMENT: Professional Information Business:
Joseph B. Vincent, Operations; Christopher Lloyd, Head; where all of those former cable established their downstream power for Digital Entertainment Analytics.
Larry L. Hoffman, Production Ingrid Verschuren, Deputy Head subscribers are going: online. Be- in the distribution business, they They are co-authors of “Streaming,
EDITORIAL AND CORPORATE HEADQUARTERS: tween 2013 and 2017, the number are beginning to amass upstream Sharing, Stealing: Big Data and the
1211 Avenue of the Americas, New York, N.Y., 10036 of streaming-only households in power by getting into the content- Future of Entertainment” (MIT
Telephone 1-800-DOWJONES
the U.S. tripled. Today nearly 200 creation business. Soon, Mr. Mims Press, 2016).
COLD FOAM
CASCARA
COLD BREW
A OUD OF ELVTY
C F
M E
S TH OLD BRW
At participating stores. While supplies last.

© 2018 Starbucks Corporation. All rights reserved.
TECHNOLOGY: FACEBOOK PROMISES TOUGHER STANDARDS ON ADVERTISERS B4
BUSINESS & FINANCE

© 2018 Dow Jones & Company. All Rights Reserved. * * * ** THE WALL STREET JOURNAL. Wednesday, June 13, 2018 | B1
S&P 2786.85 À 0.17% S&P FIN g 0.33% S&P IT À 0.58% DJ TRANS À 0.31% WSJ $ IDX À 0.31% LIBOR 3M 2.336 NIKKEI (MIdday) 22934.58 À 0.25% See more at WSJMarkets.com
Foreign Banks Hit a Great Wall Costly Condition

Total U.S. spending for health
care, long-term care and hospice
for people with Alzheimer’s or
other dementias
Beijing’s vow to open pledge to ease foreign owner- panies would need to apply quarters, these people said. curities regulator didn’t re-
ship caps on domestic securi- under their global units—as JPMorgan Chase & Co. has spond to requests for com- $300 billion
up access comes with ties firms to 51% from 49%, in opposed to smaller regional made the application using its ment.
250
a catch, as regulators part to cool trade tensions entities—potentially leaving Hong Kong-based Asia entity. Domestic firms are also re-
with the U.S. The catch: those wider businesses on the One month later, the securities quired to meet the threshold.
affix onerous demands China’s securities regulator is hook for losses or missteps in regulator still hasn’t formally Industry groups and people fa- 200
requiring that majority owners China, according to people accepted it. miliar with the government’s 150
BY CHAO DENG have at least 100 billion yuan with knowledge of the matter. Overall, the requirement ef- thinking said that by setting
AND LINGLING WEI (about $15.6 billion) in net as- Goldman Sachs Group Inc. fectively amounts to a new the bar high the government 100
sets. and Morgan Stanley, which barrier limiting the foreign hopes that only the fittest
BEIJING—China’s promise The threshold is so high hold minority stakes in securi- firms’ participation in the companies will pass. 50
to liberalize access to its rap- that only a handful of foreign ties firms in China, are assess- market, according to the peo- “The direction China is go-
idly evolving securities mar- securities firms currently op- ing the potential risks posed ple and business groups. “It’s ing for is to level the playing 0
kets comes with a new hurdle erating in the China market by the asset-value require- among the highest in the field,” said Lyndon Chao, head 2010 ’12 ’14 ’16 ’18*
for Wall Street firms, leaving can meet it, according to the ment, according to the people. world,” said Jacob Parker, vice of equities at Asifma. The reg- *Estimate
them uncertain about meeting Asia Securities Industry and Japan’s Nomura Holdings Inc. president of China operations ulator is trying to put off sub- Source: Alzheimer's Association
hefty asset requirements to do Financial Markets Association, and Switzerland’s UBS Group at the U.S.-China Business par domestic applicants and THE WALL STREET JOURNAL.
business in the world’s sec- or Asifma, a Hong Kong-based AG have applied to set up ma- Council. “This is delaying the “foreign players are just
ond-largest economy.
China’s leadership made a
industry group.
To do so, though, the com-
jority-owned joint ventures in
China using their global head-
submission of applications.”
Press officials at China’s se-
caught in the thick of it, just
Please turn to page B14 Alzheimer’s
HEARD ON THE
STREET | By Stephen
From the sovereign debt crisis of 2010-2012 to the recent political turmoil in Italy, Treatment
eurozone bonds have fluctuated wildly in recent years.
Wilmot and Aaron Back
5 percentage points Euro Stoxx 50
Scrapped in
Grocers Are 4
Italy’s 10-year bond yield
premium over Germany
Volatility Index
35
Big Blow
Squeezed 3
30
25
BY PREETIKA RANA
AND PETER LOFTUS
On Nearly 2
20
15
AstraZeneca PLC and Eli
Lilly & Co. on Tuesday
scrapped two late-stage trials
All Sides 1 10
5
of an experimental Alzhei-
mer’s drug they were co-de-
veloping, the latest blow in
The next top players in the long quest to find a break-
the grocery business may 0 0 through for the memory-rob-
feel more like survivors than 2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 2018 bing disorder.
winners. The companies said the de-
The industry is trying to 5% July 26, 2012 Dec. 8, 2016 cision was taken after an inde-
ECB President Mario Draghi The ECB says it would European stock indexes
keep up with rapidly chang- pendent data-monitoring com-
says the ECB will do ‘whatever extend its asset purchases, FTSE MIB
ing consumer tastes. But new it takes’ to save the euro. but at a slower pace. mittee concluded that trials
competition, ranging from 4 FTSE 100 associated with lanabecestat,
15%
European discounters like Stoxx Europe 600 the experimental drug,
Aldi to Amazon.com’s Whole Germany DAX wouldn’t achieve their original
Jan. 22, 2015 May 29, 2018 10
Foods, will leave even the 3 The ECB announces a A sharp reaction to an Italian goals. The companies said the
best-positioned supermar- bond-buying stimulus. political crisis sends Italian treatment wasn’t working as
kets struggling for growth. bond yields spiraling higher. 5 well as they had hoped and
The big losers will be re- 2 that ending the trials wasn’t a
gional chains, which account 0 result of any safety concerns.
for the bulk of sales in the Yield on Germany’s An AstraZeneca spokesman
U.S.’s highly fractured super- 1 said the two will continue to
market industry. Already this
10-year bond –5
jointly pursue an early-stage
year chains like Tops Mar- trial of another experimental
kets and Southeastern Gro- 0 –10 Alzheimer’s drug. Lilly sepa-
cers, the owner of Winn- 2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 2018 rately has other Alzheimer’s
Dixie and Bi-Lo, have filed compounds in clinical trials,
for bankruptcy. Sources: Thomson Reuters (yield premium, German 10-year yield, Volatility Index); FactSet (stock indexes) THE WALL STREET JOURNAL. according to a company
Aldi and fellow German spokeswoman.
No Market Taper Tantrum Over ECB

discounter Lidl have wreaked Current treatments for Alz-
havoc across Europe. In the heimer’s can alleviate symp-
U.K., where Tesco used to be toms, but don’t slow the condi-
so dominant locals called it tion’s underlying progression.
“Tescopoly,” the discounters BY CHRISTOPHER WHITTALL bond-buying program as soon balance correct. That could set phrase credited with keeping The brain disease affects an
defeated both Warren Buffett as Thursday. His job of com- up a potential volatile day of the common currency together estimated five million Ameri-
and Walmart. Mr. Buffett fa- A major global central bank municating the withdrawal of trading should he stray from during the then-raging sover- cans, and tens of millions glob-
mously called his $2.3 billion is set to wind up its massive stimulus comes at a delicate the expected course. eign-debt crisis. ally, but has been tough for the
investment in Tesco a “huge bond-buying program. The last moment. The Federal Reserve If for instance, Mr. Draghi But his track record isn’t drug industry to crack because
mistake” and Walmart sold time that happened—the Fed- is expected to make an inter- in his press conference talks flawless. In late 2015, the euro scientists don’t fully under-
its struggling U.K. chain ear- eral Reserve’s 2013 taper— est-rate move on Wednesday. about the challenges in Italy rocketed and stock markets stand what causes it.
lier this year. global markets convulsed for Trade tensions between Eu- “in a very blasé fashion…you’d sank after the ECB announced Pfizer Inc. in January said
The same discounters, months. rope and the U.S. are high, re- expect that to lead to a further measures that fell short of it would stop trying to dis-
which cut prices by focusing This time, in the case of the gional growth is slowing and, wobble in the market and a many investors’ expectations. cover new drugs for Alzhei-
on a limited range of mainly European Central Bank, mar- notably, Italian politics have loss of confidence,” said Mark But in general, the ECB has mer’s and Parkinson’s disease.
private-label products, now kets are digesting the news set investors on edge in the Dowding, a senior portfolio avoided roiling markets. Axovant Sciences Ltd. and
have their sights on the U.S. just fine—for now. But the eurozone. manager at BlueBay Asset Last week, Peter Praet, the Biogen Inc. have also reported
Aldi has committed roughly backdrop implies a tricky road Based on the relative stabil- Management. ECB’s chief economist, laid the disappointing results from
$5 billion to upgrading and ahead. ity of the euro and German Investors view Mr. Draghi groundwork for Thursday’s Alzheimer’s research.
expanding its stores. It wants ECB President Mario Draghi government bond yields, in- as a skilled communicator, fa- meeting by signaling that the Lanabecestat is known as a
2,500 locations by 2022, up is expected to signal further vestors seem to be betting mous for his 2012 declaration bank would decide whether it BACE inhibitor, aimed to pre-
from roughly 1,700 now, ex- trims to the central bank’s that Mr. Draghi will get the to do “whatever it takes,” a Please turn to page B15 Please turn to page B2
cluding the almost 500
Trader Joe’s stores owned by
an Aldi sister company. Lidl
is much further behind, hav-
ing opened its first U.S.
INSIDE Online Retailer Revolve Preps IPO
stores last June.
The most likely victims of BY MAUREEN FARRELL tar retailer BJ’s Wholesale
their expansion aren’t Wal- Club publicly filed for an IPO
ARAYA DIAZ/GETTY IMAGES FOR FLAUNT MAGAZINE
mart and Kroger, the top Revolve, the Los Angeles- last month.
two chains in the U.S., but based online clothing retailer, Revolve, founded in 2003, is
the smaller chains that still is preparing for an initial pub- part of a cohort of companies
dominate U.S. food retail. In lic offering of stock in late that have stayed private for
the U.K., the top four chains 2018, according to people fa- more than a decade and are
account for almost two- miliar with the company’s seeking to tap what has been
thirds of grocery sales; in the plans. seen as a hospitable IPO mar-
U.S. the figure is 42%. The retailer, known for sell- ket.
Walmart and Kroger have
the resources to fight back.
FORD ATTRACTS ing designer brands through
its website, last week met with
Revolve’s growth strategy
has been bolstered by retain-
But they had grown by tak- BRAINS WITH bankers who came to pitch for ing and collaborating with so-
ing market share from
smaller players, which will
AI STARTUP roles underwriting the com-
pany’s IPO, the people said.
called influencers, the social-
media stars courted by
be harder with Aldi and Lidl The deal is expected to value fashion, beauty and luxury Apparel seller Revolve co-hosted a Los Angeles event in February.
trying to expand. AUTOS, B2 Revolve well in excess of $1 brands for their large numbers
In an interview, Kroger billion, they added. of internet followers, to show-
Chief Financial Officer Mi- Should it move forward case the brands and offerings Stepping Out
chael Schlotman said the with an IPO this year, Revolve sold on its website. U.S.-listed IPO volume is on pace for one of the busiest years
chain can compete on more could seek to capitalize on in- U.S. IPO activity has on record.
than price, citing its pre- vestors’ excitement over an- ramped up this year, with 88
pared foods and in-store res- other online retailer, Stitch deals listing on U.S. exchanges $60 billion
taurants, online ordering and Fix, which in its brief life as a raising more than $29 billion, 2018: $29.34 billion
50
in-store pickup system and public company so far has de- according to Dealogic.
customer-loyalty programs. bunked worries over whether That dollar volume is up 40
“We started competing online retailers can success- 25% from the same time last
against Walmart in 1992,” he fully compete against Ama- year, which was already ele- 30
said. “There’s always been zon.com Inc. Stitch Fix, which vated well above 2016’s levels.
people out there competing
mainly on price, offsetting
PAY FOR NEW selects and ships outfits for
more than two million clients
In addition to Revolve, tech
companies Eventbrite and Up-
20
selection and experience.” LAWYERS HITS and made its debut in Novem- work, also founded more than 10
A key growth opportunity
for U.S. chains is private-la-
$190,000 ber 2017, is trading 65% above
its $15 IPO price.
a decade ago, have taken steps
toward initial public offerings 0
bel brands, which account for Retail and e-commerce IPOs that are expected later this 1995 ’97 ’99 2001 ’03 ’05 ’07 ’09 ’11 ’13 ’15 ’17
only around 15% of packaged LAW, B8 have been relatively rare in re- year, The Wall Street Journal Note: Volumes are year to date
Please turn to page B2 cent years. The brick-and-mor- has reported. Source: Dealogic THE WALL STREET JOURNAL.
B2 | Wednesday, June 13, 2018 * *** 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-B
Abiomed....................B15
Adyen.....................B2,R6
General Motors ..... B2,R5
Glencore ...................... B2
Goldman Sachs Group B1
Proskauer Rose...........B8
Prudential Financial....B6
RealPage ..................... B6
Tech Firm
Aldi..............................B1
Alibaba Group.............B4
Alphabet................A6,B2
Guess?.........................B3
H-K
Hon Hai Precision.....B16
Red Hat.......................B9
Revolve........................B1
S-T
Adyen
Amazon.com...B1,B16,R5
AMC Entertainment.B16
AMC Networks...........A6
Ant Financial Services
Hyundai Cement.......B15
Hyundai Engineering &
Construction...........B15
Iqvia Holdings.............B3
Sachem Head..............B8
Sephora.......................B2
Southeastern Grocers B1
Sovfracht .................... A4
Tees Up
Group.......................B16
Argo AI........................B2
AstraZeneca................B1
AT&T...............A1,A6,B16
Johnson & Johnson
............................... B2,B3
JPMorgan Chase.........B1
Katanga Mining..........B2
S&P Global................B14
Spotify Technology.....B2
Starwood Capital........B6
Stitch ..................... B1,R6
Big IPO
Automatic Data Kraft Heinz ................. B2 Sunny Optical BY MAUREEN FARRELL
Processing.................B8 Kroger..........................B1 Technology Group...B15 AND PETER RUDEGEAIR
Axovant Sciences ....... B1 L-M Tencent Holdings........B4
Biogen ......................... B1 Tesco............................B1
LaSalle Hotel .............. B6 Netherlands-based Adyen
Blackstone Group ....... B6 Lidl...............................B1 Tesla............................A1
Block.one...................B14 Lionsgate.............A6,B16 Time Warner..A1,A6,B16 BV, which facilitates payments
Busan Industrial.......B15 Lockheed Martin.......B16 Tops Markets..............B1 for companies including hot
C-D Merck...........................B2 Tory Burch...................B2 technology firms such as Uber
Casper..........................B2 Milbank, Tweed, Hadley Toyota Motor..............B2
Twitter ...................... B16 Technologies Inc., is set to go
CBS.................A6,B3,B16 & McCloy...................B8
Charter ...................... B16 Morgan Stanley.....B1,B6 21st Century Fox public this week in what would
Ciena............................B9 Mosaic.........................B9 ........................A1,A6,B16 be the largest technology IPO
Comcast ......... A1,A6,B16 N-O U-V in Europe this year.
Contemporary Amperex Namkwang Engineering Uber Technologies ...... B2 In a sign of the robust de-
ARGO
Technology..............B16 & Construction........B15 UBS Group.............B1,B6
Credit Suisse Group ... B3 Univision
mand for its shares, Adyen
Netflix ............ A6,B2,B16
DCT Industrial Trust...B6 News Corp.................B16 Communications.......A6 Staffing at Argo AI has risen sharply following Ford’s $1 billion commitment to the Pittsburgh firm. priced its initial public offering
D.E. Shaw Group.........B8 Nintendo......................B4 Upwork Global ............ B1 at €240 ($282.82) a share, the
Discovery .................... A6 Nippon Prologis .......... B6 Verizon Communications
Ford’s Driverless Hopes

high end of its initial expected
Dunkin' Brands Group B9 Nissan Motor..............B2 ...................................B16
range. The IPO raised roughly
E-G Nomura Holdings........B1 Viacom.................A6,B16
Northrop Grumman..B16 W-Z €849 million, excluding an un-
Education Realty Trust
.....................................B6 Nuveen........................B6 Walmart......................B1 derwriter’s allotment on the
Oaktee.........................B6
Are Riding on Startup

Eli Lilly ........................B1 Walsin Technology....B15 Euronext Amsterdam stock ex-
Epic Games ................. B4 P-R Walt Disney...A1,A6,B16 change. The deal values the
Eventbrite ................... B1 Pebblebrook Hotel......B6 Waymo........................B2
Facebook................A6,B4 Winston & Strawn......B8
company at €7.1 billion.
Penthouse Global........B3
Ford Motor.............B2,R5 Pershing Square ......... B8 Xiaomi.......................B16 Adyen, which is set to start
Gecamines...................B2 Pfizer...........................B1 ZTE..............................A4 BY CHRISTINA ROGERS sity, Massachusetts Institute of trading Wednesday under the
Car Chase Technology and the University symbol ADYEN, is also set to be
INDEX TO PEOPLE PITTSBURGH—In the auto

industry’s war for tech talent,
Ford Motor Co. made an un-
Vehicle makers pushing into
automated driving are jostling for
of Michigan. Nissan Motor
Corp. is working with National
Aeronautics and Space Admin-
one of the largest tech debuts in
the history of the Amsterdam
exchange, according to Dealogic.
high-tech talent.
A-B Gibbs, Ker..................B14 Munk, Alfonso............B6 usual $1 billion bet last year to istration engineers to develop Adyen’s software allows tech
Abuelsamid, Sam........B2 Gray, Jonathan............B6 Musk, Elon..................A1 Employees Openings
Grossman, Jeff ........... B8 Parker, Jacob...............B1
fund an artificial-intelligence robotic-vehicle technology. giants such as Netflix Inc. and
Ackman, William ........ B8 company in Pittsburgh with Ford’s partnership with Spotify Technology SA and re-
Bewkes, Jeff...............A6 H -K Parsons, Jay................B6 Cruise Automation
Bousbib, Ari................B3 Hatheway, Larry.......B16
Phil Owens..................B6 fewer than a dozen employees. Self-driving car firm bought by General Argo is unique: The auto maker tailers such as Tory Burch and
Ponvert, Renny...........B8 The aim was to build exper- Motors in 2016 didn’t acquire the startup out- Sephora to accept payments
Burton, Sean...............B6 Holland, Kelly..............B3
Rander, Peter..............B2
C-D Isaacs, Stefan...........B15
Rodriguez, Carlos........B8 tise in automated driving by right, choosing instead to be- both online and offline in doz-
Jaspon, Kate...............B9 740
Campbell, David........B16 P-S offering job recruits a poten- come its client and financial ens of countries and currencies
Jhaveri, Ketan.............B8 138
Chao, Lyndon...............B1 Khoman, Ehsan.........B15 Salesky, Bryan............B2 tially lucrative perk that Dear- backer. Argo’s task is to de- through a single platform.
Choi, Paul..................B15 King, Stephen ............. B3 Schuijff, Arnout..........B2 born, Mich., car maker couldn’t Argo AI velop a so-called “virtual driver Some investors see Adyen
Cooper, Kyle..............B15 Shander, Eric...............B9 otherwise provide: an equity Artificial-intelligence startup backed system,” which consists of sen- as a way to indirectly get expo-
Demos, David............B14
L-M
Siegmund, Jan............B8 stake for new hires in a fast- by Ford since 2017 sors, software and hardware, sure to a slate of some of the
Dowding, Mark............B1 Larimer, Dan ............. B14
Stephenson, Randall..A6
Leon, Richard.......A1,B16 growing startup. and then work with Ford engi- fastest-growing private tech
E-G Litvak, Jesse.............B14 W-Z 330
Edelman, Scott...........B8 Ma, Jack....................B16 Winograd, Eric..........B15
The company, Argo AI, has 50 neers to integrate it into a new companies that are Adyen’s cli-
Epps, Sarah.................B4 Marciano, Paul............B3 Zhu, Chaoping...........B14 since grown to about 330 em- driverless-vehicle design. ents, including online retailer
Gannon, Kevin.............B6 Moylan, Jim................B9 Zuckerberg, Mark ....... B4 ployees, in part by luring away Toyota Research Institute Ford likely won’t be first to Casper Inc. and ride-hailing
software engineers and robot- Robotics and automated-driving market with a self-driving car, companies Uber and Grab Inc.,
center established in 2016
ics researchers from Apple Inc., said Sam Abuelsamid, an ana- which is based in Singapore.
Grocers Top Shelf

Market share of top four U.S.
Uber Technologies Inc. and
other tech companies. Ford,
which holds a majority stake in
87
300 lyst with Navigant Research.
Alphabet Inc.’s autonomous-
car unit, Waymo, plans to start
Adyen was founded in 2006
by Pieter van der Does, now 49
years old, and Arnout Schuijff,
Feel the supermarket chains

40%
the company, is banking on
Argo to help it catch up in the
race to build driverless cars.
Note: Figures as of June
Sources: the companies (employees);
Glassdoor (openings)
THE WALL STREET JOURNAL.
a robot-taxi service in the U.S.
later this year. “But they’re
making the right moves to put
50, who previously sold a pay-
ments startup to Royal Bank of
Scotland Group PLC.
Squeeze 30
20
“Every employee is an
owner,” said Argo Chief Execu-
tive Bryan Salesky. “They’re
to match the high pay and eq-
uity offered by Silicon Valley.
together a business model
that’s going to be commercially
feasible,” Mr. Abuelsamid said.
Last year, it processed $122
billion in payments, up 61%
from 2016, reaping fees of
Continued from page B1 able to benefit from the upside That has forced car makers and Argo’s Mr. Salesky, who for- about 0.2% of its transaction
food and household products, 10 being created in a direct way. their suppliers to get more cre- merly served as a director of volume.
compared with over 40% in That can’t be offered with a ative to recruit workers. hardware development with In addition to choosing Am-
0
the U.K, according to Nielsen. large company where the stock General Motors Co. com- Google’s self-driving car pro- sterdam, an unconventional
Margins on these private-la- 1992 2000 ’10 goes up and down with earn- mitted roughly $1 billion two gram, said he started Argo in venue, for its listing, Adyen is
bel goods are several per- Source: Department of Agriculture ings.” years ago to buy Cruise Auto- 2016 with Peter Rander, the an unconventional tech startup
centage points higher than THE WALL STREET JOURNAL. Ford aims to start selling a mation, a driverless-technology company’s president, to work for several reasons. It has been
on other goods, Mr. Schlot- fully autonomous car for com- startup in San Francisco that more closely with auto makers. profitable since 2011 and has
man said. Kroger’s private-la- such as organic groceries mercial use in 2021. Argo is had only 40 employees at the Argo benefits from its prox- barely spent any of the $266
bel sales are up 40% over six and prepared foods. also working on an autono- time. With GM’s backing, imity to Pittsburgh’s Carnegie million in venture capital it has
years and now account for The losers in the grocery mous-driving system that they Cruise has expanded to 740 Mellon University, which has raised on operating expenses,
almost 30% of unit sales. business will be consumer can eventually sell to other employees, making it a key re- one of the world’s top robotics according to people familiar
Among the most promis- brands like Kraft Heinz, companies, too. cruiting hub in Silicon Valley. research institutions. Messrs. with the matter. All proceeds
ing private labels is Whole which are hurt by private-la- As cars become more high- Last month, the unit attracted Salesky and Rander were both are going to existing investors
Foods’ 365 brand, which Am- bel goods, and smaller tech, auto makers are scram- a $2.25 billion investment from researchers there, and many of looking to sell some of their
azon has tried to expand on- chains, hurt by the discount- bling to hire workers with ex- Japan’s SoftBank Group Corp. Argo’s recent hires have come shares. Also, Adyen obtained a
line. If Amazon can expand ers. Big supermarket groups pertise in fields such as Toyota Motor Corp. in 2016 from a group of scientists that Dutch banking license last year.
Whole Foods’ private label should do better, but it will robotics, computer science and created a robotics and autono- Uber poached from Carnegie Morgan Stanley and JPMor-
broadly, the impact will be be hard to match past machine learning. But they are mous-driving research institute Mellon three years ago to build gan Chase & Co. are the lead
felt in high-margin products growth rates. often at a disadvantage, unable affiliated with Stanford Univer- its own driverless-car program. underwriters on the IPO.
Glencore Settles Congo Mining Dispute

BY SCOTT PATTERSON known as KCC, for its failure to
resolve the capital deficiency.
Swiss mining giant Glen- Katanga Mining owns 75% Tortoise MLP Fund, Inc.
core PLC unveiled a $5.6 bil- of KCC, which operates a giant Transferable Rights Offering for Shares of Common Stock
DIANA ZEYNEB ALHINDAWI FOR THE WALL STREET JOURNAL
lion restructuring of its trou- copper and cobalt mine in NYSE Symbol “NTG”
NYSE Rights Symbol “NTG RT”
bled Congo copper company, Congo’s southeastern copper Ex-date is June 18, 2018
Katanga Mining Ltd., resolv- belt. Gecamines owns the re- Record date is June 19, 2018
ing a dispute with Congo’s maining stake. Glencore owns Last trading day for rights is July 17, 2018*
state-run mining company 86% of Katanga Mining. Offer expires July 18, 2018*
*Unless extended
about a debt load it has built Glencore said Gecamines
up over the past decade. will receive a one-time pay-
Glencore said Katanga Min- ment of $150 million to re-
For more information and a prospectus, contact:
ing will issue $5.6 billion in solve a number of “historical
stock, which it will use to re- commercial disputes.” Glen-
tire debt. The company had core will also waive a $285
been saddled with $9.2 billion million payment Gecamines
in high-interest debt, most of had agreed to make several
which is owed to Glencore. years ago. Gecamines has Call Toll-Free: +1-866 751-6315
The move is the latest in a agreed to withdraw from its
saga involving Katanga Min- The Swiss firm unveiled a $5.6 billion restructuring of Katanga Mining. lawsuit, Glencore said.
ing, one of Glencore’s flagship Glencore has faced numer- Dealer Manager
Congolese copper mines. 2015 to revamp its infrastruc- ated a shortfall in capital that ous headaches involving Ka-
The operation has been ture and boost production. violated Congolese law. tanga Mining. In November,
plagued with spills and power Along the way, Katanga Min- In April, Gecamines brought it shuffled Katanga’s board
outages as it struggled to meet ing ran up a staggering debt Katanga Mining to court in after an internal review
production targets. Glencore sus- that Congo’s state-run mining Congo, seeking to dissolve its found weaknesses in controls
pended operations at Katanga in company, Gecamines, said cre- Kamoto Copper Co. subsidiary, over financial reporting.
June 13, 2018
Alzheimer’s Other drugs targeting amy-

loid in different ways also
have failed to help patients in
earlier this year.
Merck and other companies
have also focused drug devel-
Labs, said in the joint state-
ment with AstraZeneca.
Indianapolis-based Lilly
An investment in Tortoise MLP Fund, Inc. (the “Company”), a non-diversified,
closed-end management investment company, is subject to investment risk,
including the possible loss of the entire principal amount invested. Investment
return and the value of stock will fluctuate. The rights offering is subject
Treatment trials over the past decade, in-

cluding those developed by
Lilly, Pfizer and Johnson &
opment on a different protein,
tau, that forms twisted pro-
teins in the brains of Alzhei-
joined forces with the U.K.’s
AstraZeneca to co-develop
lanabecestat in 2014. Lilly was
to certain risks, including economic dilution and voting dilution.
All of the costs of the rights offering, including offering expenses and sales load,
will be borne by the Company and indirectly by all of its Common Stockholders,
Scrapped Johnson. The mounting set-

backs of amyloid-targeting
drugs have raised doubts
mer’s patients.
Companies continue to look
because the need is high and a
responsible for the two tri-
als—one for patients with
early Alzheimer’s and the
including those who do not exercise their rights. The rights are transferable and
are expected to be admitted for trading on the NYSE during the course of the
offer; however, there can be no assurance that a market for the rights will develop.
Investors should carefully consider the Company’s investment objectives and

Continued from page B1 about that approach. breakthrough could potentially other for those suffering a policies, risks, and charges and expenses before investing. The Company’s
vent an enzyme from produc- Some companies have stuck reap big commercial rewards. milder form of the disease— prospectus, which contains this and other information about the Company, when
available, can be obtained, by calling the phone number listed above. An
ing the sticky substance with the amyloid hypothesis Lilly, which has spent three while AstraZeneca agreed to investor should carefully read the Company’s prospectus before investing.This
known as amyloid that builds but have tested such drugs in decades trying to find a block- take on manufacturing. More communication is not an offer to sell these securities and is not soliciting
an offer to buy these securities, nor shall there be any sale of these securities in
up in the brains of Alzheimer’s earlier stages of the disease, buster and in 2016 shelved an than 3,000 patients were en- any state where the offer, solicitation or sale is not permitted.
patients. Many drugmakers on the belief that the older amyloid-targeting compound it rolled across the trials, which
have pursued the theory that failed trials had patients spent $1 billion developing, were expected to conclude as UBS Securities LLC is acting as dealer manager for the rights offering. In the U.S.,
securities underwriting, trading, and brokerage activities and M&A advisory
targeting amyloid could slow whose disease was too ad- said it was committed to fur- early as next year, the Astra- activities are provided by UBS Securities LLC, a registered broker / dealer that is
or halt the progression of Alz- vanced to be helped. But the ther research despite the lat- Zeneca spokesman said. Fol- a wholly owned subsidiary of UBS AG, a member of the New York Stock
Exchange and other principal exchanges, and a member of SIPC.
heimer’s. But another BACE in- Merck drug also failed to help est setback. low-on studies would have
hibitor, from Merck & Co., patients with an earlier-stage “We won’t give up on find- lasted until 2021.
© UBS 2018. All rights reserved.
failed last year in a clinical form of the disease known as ing a solution for Alzheimer’s On Tuesday, shares of both
trial of patients with mild to prodromal Alzhiemer’s, in a patients,” Daniel Skovronsky, Lilly and AstraZeneca traded
moderate Alzheimer’s. separate study that was halted president of Lilly Research down less than 1%.
THE WALL STREET JOURNAL. * * * * Wednesday, June 13, 2018 | B3
BUSINESS NEWS
Iqvia CEO Led Peers Pay Prescription

Top-paid pharmaceutical and life-sciences CEOs include chiefs at a mix of biotech and traditional
drugmakers, as well as instrument and software makers for the industry.
In Pay at $38 Million

Highest-paid pharmaceutical CEOs
SHAREHOLDER
CEO/COMPANY TOTAL PAY RETURN
Ari Bousbib
IQVIA Holdings $38.0 million s 28.7 %
Ari Bousbib was tops tive, Ari Bousbib, $38 million. cial circumstances around the Brenton L. Saunders
32.8 t 21.1
J&J, the largest U.S. pharma- appointment of our CEO as Allergan
in pharmaceutical ceutical company by revenue, the CEO of the new company Alex Gorsky
29.8 s 24.4
industry last year as paid its CEO, Alex Gorsky, that resulted from the Johnson & Johnson
$29.8 million in 2017. J&J had merger,” an Iqvia spokesman
head of data processor about $76 billion in revenue in said. Much of the chief’s com-
Ian C. Read
Pfizer
27.9 s 15.7
2017; Iqvia’s was about $8 bil- pensation is tied to the com-
BY PATRICK THOMAS lion. pany’s performance, he said.
Leonard S. Schleifer
Regeneron 26.5 s 2.4
The two companies deliv- Mr. Bousbib, 56 years old,
Iqvia Holdings Inc. is ered similar shareholder gains joined IMS Health in 2010 af-
Richard A. Gonzalez
AbbVie
22.6 s 60.1
hardly a household name, but last year. J&J’s stock-price ap- ter spending 14 years in exec-
its boss made more last year preciation plus dividends re- utive roles at industrial con-
Marc N. Casper
Thermo Fisher Scientific
22.3 s 35.0
than the chief executive of turned 24.4% to investors, glomerate United
Johnson & Johnson—or any while the smaller company re- Technologies Inc. In 2015, IMS
Giovanni Caforio
Bristol-Myers Squibb
18.7 s 7.8
other big pharmaceutical or turned 28.7%. increased his pay to more
biotech company. Mr. Bousbib’s 2017 pay in- than $34 million from about
Howard W. Robin
Nektar Therapeutics
18.1 s 386.7
Iqvia doesn’t have some cluded a one-time retention $25 million. Kenneth C. Frazier
Merck
17.6 t 1.5
blockbuster drug or cutting- equity award valued at about The company said in its
edge genetic treatment. It is a $20 million following an Octo- 2015 regulatory filings that Notes: Industry groups defined by Standard & Poor's. Shareholder return reflects 1-year total shareholder return through the month-end
data company that collects ber 2016 merger between IMS Mr. Bousbib might be an at- closest to each company's fiscal-year end.
prescription sales, medical Health, a data company where tractive job candidate for Sources: MyLogIQ LLC (pay); Institutional Shareholder Services (performance) THE WALL STREET JOURNAL.
claims and other patient re- he was CEO, and Quintiles, other companies, which con-
cords, and analyzes that infor- which assisted pharmaceutical tributed to his increased com- overall median of $12.1 million about 22% compared with 19% companies, which includes
mation for drugmakers, insur- companies with clinical trials. pensation, along with his perfor CEOs at all S&P 500 com- overall, according to perfor- data providers like Iqvia as
ance companies and The combined company was formance as CEO. panies, according to a Wall mance data from ISS Analyt- well as instrument suppliers
governments. It also provides renamed Iqvia. The median CEO pay in Street Journal analysis of pay ics. such as Mettler-Toledo Inter-
testing services to drug com- “The special one-time re- 2017 for 25 pharmaceutical, data from MyLogIQ LLC. The Journal analysis used national Inc.
panies. tention equity grant vests biotechnology and life-science Median overall shareholder Standard & Poor’s industry The Journal’s analysis ex-
Last year, the Durham, N.C., over four years and was executives in the S&P 500 was returns for companies in group for pharmaceutical, bio- cludes CEOs who changed jobs
company paid its chief execu- awarded to recognize the spe- $16.08 million, above the these medical sectors were technology and life-sciences or served less than a full year.
Stephen King Spawns App to Suggest Books for Certain Tastes

BY JEFFREY A. TRACHTENBERG That productivity made it launched “Stephen King Li- cians, the mentalists or the rithm that links the results of
easier for Scribner, an im- brary,” a free, voice-activated scientists?” the seven questions to one of
It could be the opening to a print of CBS Corp.’s Simon & app available on Amazon Al- The questions are intended the 11 lists.
Stephen King short story: A Schuster Inc. publishing arm, exa and Google Assistant to help the app in discerning “All of the books were given
voice-activated device that to choose him for the proj- smart speakers, smartphones, users’ taste in different genres thematic tags by Scribner, and
sounds suspiciously like “The ect. tablets and other voice-en- across Mr. King’s body of we then created an algorithm
Twilight Zone” narrator Rod “We began to talk about abled devices. work. so that the potential answers
Serling asks seven questions voice-activation technology What follows is a splash At the end, the program to every question linked back
EVAN AGOSTINI/INVISION/ASP
and then spits out the names late last year, with the aim of of eerie music and the voice provides five or six titles cho- to some element of a Stephen
of five or six books written by creating a reading list tailored of narrator Jeremy Bobb, sen from a total pool of 56 King book,” said Skilled Cre-
Mr. King it says will suit your to a person’s specific likes and who asks seven seemingly Stephen King books picked by ative Chief Executive Brandon
tastes. dislikes,” said Roz Lippel, unrelated questions such as: Scribner editors. Kaplan.
At a time when publishers Scribner’s associate publisher. “Imagine an apocalyptic There is currently no As for Mr. King, the author
are increasingly concerned “We wanted to find a way to world. You have to belong to shopping experience in the pronounced himself a bit per-
about how consumers will dis- introduce Stephen King to new one of three groups to sur- app. plexed by this latest marketing
cover authors and newly pub- readers and entice longtime vive. Your options are: the The books, including some venture.
lished books, Mr. King’s pub- Author Stephen King fans.” magicians, who are masters not published by Scribner, “The technology has out-
lisher, Scribner, is betting that Mr. King has sold more of illusion; the mentalists, were put into 11 lists by Scrib- raced my ability to compre-
a bit of tech wizardry will than 50 books since his first than 350 million books world- who spin a web of gripping ner editors. hend,” he said, via email.
spark sales of the author’s novel, “Carrie,” was pub- wide throughout his career, mind games; or the scien- Skilled Creative, an emerg- Scribner “told me all about it,
thrillers, science-fiction and lished in 1974, according to according to Scribner execu- tists, who are creating cut- ing-technology creative and I’m like, ‘OK, sounds good,
fantasy books. longtime agent Chuck Ver- tives. ting-edge technology. Do you agency that is based in Man- whatever, knock yourselves
Mr. King has written more rill. The company on Monday create ties with the magi- hattan, then created an algo- out.’ ”
BUSINESS WATCH
GUESS CREDIT SUISSE GROUP PENTHOUSE GLOBAL MEDIA
Executive Chairman Bank Wins Ruling Magazine’s Publisher
Resigns After Inquiry In New York Suit Has a Sale Accord
Guess Inc. co-founder Paul The New York Court of Ap- WGCZ Ltd., an owner of adult
Marciano has resigned as execu- peals handed Credit Suisse websites, has an agreement to
tive chairman and will leave the Group AG a major victory in a fi- purchase the assets of Pent-
company next year after an in- nancial crisis-era lawsuit regard- house’s bankrupt publisher out
ternal investigation determined ing its underwriting of residential of bankruptcy for $11.2 million.
he exercised “poor judgment” in mortgage-backed securities. The sale, which must be ap-
some situations involving mod- In a 4-to-1 ruling Tuesday, the proved by a judge, is anticipated
els and photographers. court said the New York attor- to close Friday, court papers say.
The company and Mr. Mar- ney general’s office was late in The deal with the Czech Re-
ciano, who hasn’t admitted pursuing claims under the Mar- public-based company marks the
wrongdoing, have reached settle- tin Act, a law used to police se- second time Penthouse has
ments with five people totaling curities fraud. The office argued changed hands in two years.
$500,000 to resolve allegations that the law had a six-year stat- Kelly Holland, the owner and
of inappropriate conduct from ute of limitations. Two lower chief executive officer of the
the Guess executive, a securities courts agreed, but the appeals magazine’s publisher, Penthouse
filing said Tuesday. court ruled that it is three years. Global Media Inc., acquired the
An internal investigation, the The initial complaint filed in magazine in February 2016 in a
company said Tuesday, found in- 2012 by former Attorney Gen- transaction that was financed
stances in which Mr. Marciano eral Eric Schneiderman claimed with a $6 million high-interest
placed himself in situations “in that the firm had deceived in- loan. The company sought chap-
which plausible allegations of vestors in 2006 and 2007 re- ter 11 protection less than two
improper conduct could, and did, garding its risk evaluations of years later. A court-appointed
arise.” In some cases, Guess mortgage loans underlying the trustee was later installed.
said, no conclusion could be securities. As a result, investors Ms. Holland and lawyers rep-
reached because people either
declined to be interviewed or
provided insufficient information.
suffered $11.2 billion in losses,
the suit claimed. Credit Suisse
has denied the allegations.
resenting the trustee didn’t im-
mediately return messages
Tuesday seeking comment.
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B4 | Wednesday, June 13, 2018 THE WALL STREET JOURNAL.
TECHNOLOGY WSJ.com/Tech
Facebook to Take
A Harder Line on
E-Commerce Ads
BY KHADEEJA SAFDAR rived weeks later from China.
Facebook said it has already
Facebook Inc. said it would started warning hundreds of
crack down on e-commerce e-commerce sites that have re-
businesses that flood users’ ceived a high volume of nega-
feeds with ads for products tive feedback. Among those
that are unsatisfactory or notified were the types of
don’t arrive on time. businesses mentioned in the
The social-media giant is Journal article.
rolling out a new feature that To leave feedback, users
lets people leave feedback must click on their recent ad
JILLIAN KITCHENER/REUTERS
about their shopping experi- activity to find the new tool

ence after viewing a Facebook that lets shoppers specify
ad. The company said it is whether they are satisfied or
warning businesses that re- dissatisfied with an adver-
ceive a high volume of nega- tiser’s product quality, ship-
tive feedback to give them a ping speed or customer ser-
chance to address the griev- vice. Facebook shares with
The videogame’s popularity was credited with boosting sales of headsets that players wear so they can chat with each other. ances. If feedback doesn’t im- advertisers the feedback, but
‘Fortnite’ Joins the Switch

prove over time, Facebook will not the identity of the people
reduce the number of adver- giving it.
tisement that businesses can Facebook said it is also pro-
deliver and could eventually viding tips to businesses that
ban them from the platform.
“There are some companies
Combat-survival game biggest games outside of those for crossplay with its console was even credited with giving that are just bad actors and
The company warns it
the Japanese videogame rivals. A Sony representative a boost to sales of headsets we have no tolerance for that,”
builds on wild success maker develops itself. “Fort- didn’t say whether the com- that players wear so they can said Sarah Epps, a product will cut the number of
with its addition to nite” was created by Epic pany would consider connect- chat with each other while marketing director at Face-
ads or eventually ban
Games Inc. ing with other consoles, but building forts and hunting book. “As soon as we can de-
Nintendo’s console The game’s appearance on said that it listens to custom- down enemies. tect those companies, we en- firms from platform.
the Switch will mark its sweep ers and already offers cross- The game’s impact on the force against them, but for
BY SARAH E. NEEDLEMAN of all major game-playing de- play with computers and mo- broader videogame industry companies that do want to im-
vices. “Fortnite” is already bile devices. goes beyond just its spread to prove, we want to give them
LOS ANGELES—The biggest available for Sony Corp.’s Play- “Fortnite” combines “Mine- every major device. It can also that opportunity.” are receiving negative feed-
game of the year is coming to Station 4 and Microsoft craft”-style building with a be traced to Activision Bliz- The announcement comes back, such as telling them to
the hottest console right now. Corp.’s Xbox One, the Switch’s mode known as battle royale, zard Inc.’s announcement last about three weeks after The set more realistic expectations
Nintendo Co. is bringing main competitors, as well as a last-man-standing take on month that it is adding a bat- Wall Street Journal published about shipping times or pro-
the combat-survival game for personal computers and the traditional shooter game. tle-royale mode to its next an article about online store- vide more transparency
“Fortnite” to the Switch, se- mobile devices. It was an almost immediate “Call of Duty” game. Elec- fronts that have been using around the return policy.
curing the most talked-about “It’s vitally important for draw for gamers. It didn’t hurt tronic Arts Inc. said Saturday Facebook ads to profit from The company said it would
game as the company hopes to game publishers to have the that Epic released the battle- that it was planning to do the products listed on online mar- immediately ban businesses
carry strong sales for its vid- widest possible hardware royale mode free of charge. same for the company’s “Bat- ketplaces such as Alibaba that it considers obvious
eogame console through the reach for as long as possible,” “You could never build a tlefield” franchise. Group Holding Ltd.’s AliEx- scammers.
machine’s second year. said Lewis Ward, an analyst at business plan intended to get The spread of “Fortnite” press. The entrepreneurs be- Facebook has come under
Nintendo announced the research firm IDC. as many users as ‘Fortnite’ could help raise the game’s hind these storefronts mark scrutiny about lax oversight of
news Tuesday during its pre- A key draw for “Fortnite” is has,” said Cowen & Co. analyst budding profile in competitive up the products and transfer its platform after Cambridge
sentation at the annual E3 vid- that it lets some gamers using Doug Creutz. gaming, or esports. Epic, shopper details to an AliEx- Analytica, a research firm with
eogame expo here. “Fortnite,” different devices to play to- The game is a “freak of na- which is 40%-owned by Ten- press seller, for instance, ties to President Donald
which analysts estimate has gether, a feature known as ture,” he added. cent Holdings Ltd. of China, which ships the goods to the Trump’s 2016 campaign, im-
about 50 million players, crossplay. Last month alone, “Fort- announced in May plans to customer. The storefront bills properly obtained the data of
landed on the Switch Tuesday. Switch gamers will be able nite” generated an estimated dole out $100 million in prize the customer, betting shop- millions of Facebook users.
The move is a coup for Nin- to join with people using an $296 million in revenue money for “Fortnite” competi- pers won’t stumble on AliEx- The incident sparked an in-
tendo, whose previous con- Xbox One, PC, Macintosh and mainly from sales of virtual tions during the game’s press or other sites charging vestigation by the Federal
sole—the Wii U—was roundly mobile devices. goods and other so-called mi- 2018-2019 season, an amount less for the same items. Trade Commission and has led
criticized for a spotty lineup As with efforts recently in- crotransactions, according to that far eclipses other prize Shoppers have complained to congressional appearances
of games through its five-year volving other games, Sony re- SuperData Research. pools for major videogame about misleading marketing by Chief Executive Officer
run, including a dearth of the mains the holdout in allowing “Fortnite” is so popular, it contests. and low-quality goods that ar- Mark Zuckerberg.
THE WALL STREET JOURNAL. Wednesday, June 13, 2018 | B5
Midcap companies
are old enough
to know what
they’re doing.
And young enough
to do it.
MDY invests in growth-hungry, midcap powerhouses
that offer immediate potential but are grown-up enough
not to be a flash in the pan. And it’s beaten 82% of the
Morningstar U.S. Mid-Cap Blend Category over the last
3, 5 and 10 years. spdrs.com/MDY
MDY is one of the many first-to-market ETFs from
State Street Global Advisors.
MDY THE
MIGHTY
MIDCAP
Source: Morningstar as of 3/31/18. Based on funds in the Morningstar Mid-Cap Blend Category (oldest share class). Rankings are based on returns after taxes that are net of all fees, maximum federal tax
rate (39.6%) and applicable sales loads. Rankings reflecting lower tax rates may have resulted in less favorable results for exchange traded funds due to their tax efficiency. Universe: 111 funds for 10 years,
131 funds for 5 years, and 145 funds for 3 years. MDY’s 1 year peer group percentile is 32% (54 of 177 funds). Past performance is no guarantee of future results.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETF’s net asset value. ETF shares may not readily trade in all market conditions.
Brokerage commissions and ETF expenses will reduce returns.
Investments in mid-sized companies may involve greater risks than those in larger, better known companies, but may be less volatile than investments in smaller companies.
©2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted
to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
SPDR® S&P MidCap 400® ETF Trust, a unit investment trust, is listed on NYSE Arca, Inc.
SPDR®, S&P and S&P MidCap 400 are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”) and have been licensed for use by State Street Corporation.
No financial product offered by State Street or its affiliates is sponsored, endorsed, sold or promoted by S&P.
ALPS Distributors, Inc. (fund distributor); State Street Global Advisors Funds Distributors, LLC (marketing agent).
State Street Global Advisors and its affiliates have not taken into consideration the circumstances of any particular investor in producing this material and are not making an investment recommendation
or acting in fiduciary capacity in connection with the provision of the information contained herein.
Before investing, consider the funds’ investment objectives, risks, charges and expenses.
To obtain a prospectus or summary prospectus, which contains this and other information,
call 1.866.787.2257 or visit www.spdrs.com. Read it carefully.
2052632.1.1.NA.RTL Not FDIC Insured • No Bank Guarantee • May Lose Value
THE PROPERTY REPORT

Prudential Sets Heart on San Francisco
Firm’s property arm ment officer for PGIM Real Es-
tate.
sees opportunity in PGIM also is looking at in-
the apartment market vesting in other assets that
CityView develops along the
with stake purchase West Coast in places such as
the East Bay in the San Fran-
BY LAURA KUSISTO cisco area and Koreatown in
Los Angeles.
The real-estate investment The San Francisco market is
arm of Prudential Financial facing headwinds from new
Inc. is buying a 50% stake in a supply and frustration among
$500 million rental apartment tenant advocates with how far
portfolio in the San Francisco rents have risen. Investors in
Bay Area, its largest-ever mul- California are weighing the
tifamily purchase on the West risks that voters in November
Coast. will decide to repeal a law that
PGIM Real Estate is buying would allow municipalities to
the stake in roughly 750 apart- expand rent control to newer
ments concentrated in and buildings, such as the ones in
around San Francisco, joining this portfolio.
with the developer and man- Some investors have been
ager of the properties, Los An- selling properties, fearing the
geles-based CityView. The impact on the market.
seller is a public pension fund, While most parts of the Bay
the Los Angeles County Em- Area have seen little new de-
ployee Retirement Association, velopment, there have been a
which will continue to own the few areas, such as SoMa near
remaining 50% stake. the city’s financial district,
Several times during the where developers have been
years following the recession, able to push through projects.
annual rent growth rates in There are some 11,000 units
the San Francisco Bay Area under construction in the Bay
multifamily market were in Area.
the double-digit percentages “A lot of people panicked
in some parts of the region. when we got a lot more supply
CITYVIEW
The market began to cool in than typical and job growth
2016. There were even some slowed down a bit,” said Jay
cases of rents falling in San The rental market in the San Francisco Bay Area has stabilized after a period in which prices cooled. The CityView ArcLight. Parsons, a vice president at
Francisco. RealPage. “Some sanity has
Today, the market is stabi- under $2,700 a month, up mained strong in apartment cause of the high barriers to lio were developed from 2012 been restored a bit in San
lizing, albeit with rents at high 2.5% from one year ago, ac- markets throughout the coun- development in prime loca- to 2017. Francisco.”
levels. Bay Area pricing has in- cording to real-estate software try, even though across the tions in San Francisco and sur- “If you were to try to build Sean Burton, chief execu-
creased 52% since the begin- and analytics firm RealPage. U.S. rent growth is slowing rounding suburbs like Menlo these assets, these markets tive of CityView, said all of the
ning of 2010. That increase is roughly in and vacancy rates are rising. Park and Berkeley, where the are hard to find development buildings are virtually fully
An average apartment in line with inflation. PGIM executives say they buildings are located. opportunities,” said Alfonso leased because they are well
the Bay Area rents for just Investor appetite has re- saw a unique opportunity be- The buildings in the portfo- Munk, Americas chief invest- located.
Blackstone Triples Down

BY PETER GRANT had falsified financial results because fees are generally
to cover up accounting errors. lower and stock market liquid-
Blackstone Group LP is tri- Fundraising by nontraded ity—the ability to buy and sell
pling the fundraising goal for REIT sponsors fell to $4.5 bil- a security easily at or near a
the nontraded real-estate in- lion in 2016 from $19.6 billion stated price—is a big advan-
vestment trust it launched last in 2013, according to Stanger. tage.
year, breathing new life into When Blackstone entered “If you’re not going to give
an industry that hit the skids the picture, it immediately at- the liquidity and have a fee
about four years ago following tracted attention because of load that’s potentially higher,
a flurry of bad publicity. its strong record with institu- how do you provide a return
In a new registration state- tional investors. Last year, profile that’s more attractive
ment filed Tuesday with the BREIT raised 45% of the $3.8 than the REIT space?” said
Securities and Exchange Com- billion raised by the top 10 Phil Owens, managing director
mission, Blackstone Real Es- sponsors, according to of Green Street Advisors’ con-
tate Income Trust said it Stanger. sulting unit. “That’s a question
planned to raise an additional As of the end of the April we haven’t gotten answered.”
$10 billion on top of the $5 this year, the top 10 sponsors But Mr. Owens also said
billion the trust said it would had raised $3.5 billion. Black- Blackstone’s current fundrais-
LASALLE HOTEL PROPERTIES
raise in its initial filing. The stone accounted for 67% of ing strength gives it an edge
new registration is necessary that, Stanger said. over traded REITs when it
because BREIT has been sell- “We want to bring every- comes to bidding on proper-
ing shares at such a high rate thing we’ve done in the insti- ties because many REIT shares
the first $5 billion would likely tutional world for individual have been trading at large dis-
be all sold out before the end investors,” said Jonathan counts to the private market
of 2018. Gray, president of Blackstone values of their underlying as-
A bidding war has emerged for LaSalle Hotel Properties, which owns this property, L’Auberge Del Mar. The trust has used the pro- Group, on a video on BREIT’s sets. That makes it difficult for
ceeds, plus debt, to purchase website. the traded REITs to raise fresh
Buyers Cherry-Pick REITs assets valued at $8 billion, in-

cluding over 100 properties,
mostly rental apartment build-
ings and industrial real estate,
Other firms with big insti-
tutional followings—including
Starwood Capital Group LLC,
Oaktree Capital Management
capital by selling stock, he
said.
Blackstone’s fee structure is
different than the earlier class
BY ESTHER FUNG quisitions totaled $16.4 billion. concerns about higher interest throughout the U.S. LP and Nuveen LLC, an affili- of nontraded REITs that came
A few of the REITs with the rates. In 2017, the total returns BREIT “is in the catbird ate of London-based TH Real under fire. The highest up-
The mergers-and-acquisi- strongest balance sheets also of the FTSE Nareit All Equity seat at the moment,” said Estate—have all indicated front fee, charged by sales
tion bug has hit the real-estate are shopping around. For ex- REITs index reached 8.7%, Kevin Gannon, a managing di- plans to launch nontraded forces at firms like UBS Group
investment trust industry, the ample, San Francisco-based while total returns for the S&P rector at Robert A. Stanger & REITs of their own, according AG and Morgan Stanley, is
long-anticipated result of the REIT Prologis Inc., the largest 500 rose 21.8%. Co., an investment bank that to Stanger. 3.5%. Blackstone’s manage-
discounts that REIT stocks owner of industrial space in the But the intensifying M&A specializes in nontraded Critics of nontraded REITs ment fee is 1.25%. Blackstone
have been trading at compared U.S., made an all-stock offer for binge has started to change REITs. remain vocal. They maintain also gets an incentive fee of
with the private-market valua- DCT Industrial Trust in April. that. Total returns in the FTSE Nontraded REITs are simi- that investing in traded REITs 12.5% of BREIT’s profit. But
tions of their properties. Industrial real estate has Nareit All Equity Index outper- lar to traded REITs in that remains a better option for that only kicks in after inves-
But the private and public been among the strongest-per- formed the S&P 500 for the they raise money from the small and large investors alike tors receive a profit of 5%.
companies that have been in forming property types in re- third straight month in May, public to invest in office build-
the buying mode haven’t been cent years thanks to the e- reaching 3.5% compared with ings, warehouses, stores and
fixated on the REITs that are commerce revolution, which is the S&P 500’s 2.4%. other commercial property. Breaking Away
trading at the steepest dis- increasing demand for ware- Some of the buyers in the They also both offer attractive Market share for nontraded REIT sponsors
counts. Rather, in many cases, houses and distribution space. M&A trend have been willing dividends. For example, BREIT
2018 through April 2017
they are looking for targets “REITs that benefit from an to bet on property types that has been paying a 5% annual
that own the kind of property advantageous cost of capital typically suffer most during a rate. 67.1%
most likely to weather a down- have lately become somewhat recession, like hotels. Indeed, The big difference between Blackstone Group
turn, well aware that a bull more active on acquisitions, one of the hottest takeover nontraded and traded REITs is 44.7%
market in commercial real es- likely seeing an open window battles is over LaSalle Hotel that nontraded REITs aren’t 6.2
tate is in its ninth year. in choppy conditions,” said Properties, which owns 41 ho- bought and sold in the stock Black Creek Group
In other cases, buyers are tels across seven states. Peb- market. Rather, investors typi- 4.5
simply going after the blebrook Hotel Trust, another cally hold them for a long time
5.6
REITs that are among the lead- lodging REIT, on Mon- and cash out—either at a
ing owners of certain property
Eight deals for REITs day raised its offer for LaSalle profit or a loss—when the
Griffin Capital
8.1
types, such as skilled nursing totaling $16.5 billion, in a bidding war with Black- company does an initial public
5.2
facilities. Buyers can do this stone Group LP. offering, gets acquired or goes
partly because the world is
excluding debt, were Pebblebrook, is offering through some other disposi-
CIM Group
6.5
awash these days in private announced since April. about $4.17 billion for LaSalle tion of assets known as a li-
equity and debt capital. in cash and stock, implying a quidity event. 3.6
Carter/Validus Advisors
“High-quality companies merger price of $37.80 a share, Nontraded REITs rose in 9.2
with high-quality growth num- sweetening its bid for the third popularity as the U.S. economy
bers aren’t usually targets for real-estate research firm Green time since it first made an of- recovered from the 2008 fi- Source: Robert A. Stanger & Co. THE WALL STREET JOURNAL.
takeouts,” said Matthew Wer- Street Advisors. fer in March that valued the nancial crisis. With interest
ner, managing director at Chil- Student housing is one of company at $29.95 a share. rates low and the stock market
ton Capital Management the property types that is con- The LaSalle board initially scary, investors liked them for
LLC. “But with high-quality sidered to be a defensive play, dismissed Pebblebrook’s offer their relatively high dividends
companies trading at signifi- as enrollment in colleges are and then agreed to a $3.7 bil- and low volatility.
cant discounts to net asset expected to stay steady. One of lion, $33.50 a share bid by Blackstone, which has
value at a time of record pri- the target companies in this Blackstone last month. The mostly been known as an in-
vate capital looking for a sector is Memphis, Tenn.- board has said it would consider vestor of institutional capital,
home, even the best companies based Education Realty Pebblebrook’s revised offer. entered the nontraded REIT
are vulnerable to takeouts.” Trust, which owns and man- Other pending deals include market in 2017, when the in-
Since April, there have been ages more than 44,000 beds at Welltower Inc.’s $2 billion offer dustry was struggling to re-
eight announced deals for 53 universities in 24 states. A to buy Quality Care Properties cover from bad publicity and
REITs totaling $16.5 billion, ex- number of private-equity firms Inc., which owns skilled nursing criticism over poor disclosure
cluding debt, according to data are in talks to buy that REIT, and assisted-living proper- and upfront fees that could be
from Dealogic, up from two according to people familiar ties. Quality Care on Tues- as high as 15%.
announced deals totaling $4.4 with the matter. day said another party made an Particularly painful was the
HYATT
billion in this year’s first REIT shares have been slug- acquisition proposal that could 2014 disclosure of Nicholas
quarter. In the fourth quarter gish for the past two years due lead to a “superior offer,” but Schorsch’s American Realty The private-equity firm now wants to raise a total of $15 billion
last year, announced REIT ac- to slowing income growth and didn’t give details on pricing. Capital Partners Inc. that it for the nontraded real-estate investment trust it launched in 2017.

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BUSINESS NEWS
New Lawyers Get $190,000 ADP CFO Steps Down

Amid Activist Scrutiny
Milbank sets pace
BY CARA LOMBARDO recent performance, including
on starting salaries AND MARIA ARMENTAL accelerated bookings and im-
for elite students, proved business retention. His
Automatic Data Process- Pershing Square Capital
but rivals hang back ing Inc.’s finance chief plans to Management LP, which owns
resign, the payroll-processing about 7.2% of ADP, including
BY SARA RANDAZZO company said Tuesday, a de- derivatives, hasn’t called for
parture that comes as the firm Mr. Siegmund’s departure.
Competition for the most faces scrutiny from a trio of Two other activist hedge
elite law students is ratcheting activist investors. funds, D.E. Shaw Group and
up, with several national law Jan Siegmund will remain Sachem Head Capital Man-
firms boosting starting sala- in the role while ADP looks for agement, also have built
ries for new law school gradu- a replacement, Chief Executive stakes in the firm. The Wall
ates to $190,000 in recent Carlos Rodriguez said during a Street Journal reported in May
days. meeting with investors Tues- that the investors hadn’t de-
CAITLIN OCHS FOR THE WALL STREET JOURNAL
But whether the raises will day. He said Mr. Siegmund had cided whether to push for
lead to an across-the-board been planning to leave for a changes at the company, citing
pay bump—as they have his- while, but the company had people familiar with the mat-
torically—is an open question. “successfully convinced him ter, but had separately met
Compared with past rounds of for some period of time now with ADP management.
pay hikes, fewer firms have to stick around, because of all Research firm Management
rushed to match the pace set the exciting things we have CV last year criticized Mr.
last week by New York firm going on.” Ackman’s proxy fight as mis-
Milbank, Tweed, Hadley & Mr. Siegmund joined ADP in guided but noted it raised
McCloy LLP. 1999 and was tapped as fi- some valid points. It said ADP
Milbank lawyers in their nance chief in November 2012. should change its CFO.
first eight years of practice ADP executives on Tuesday Mr. Siegmund, the research
will get raises of between 4.8% Not every firm has rushed to match Milbank’s lead, with some wary of angering their clients. outlined plans to increase
and 6.4% this year. Associates margins and accelerate the
at the top of the scale will Many midmarket firms uni- their most junior lawyers at rollout of their newest plat-
make $330,000 a year. formly raised salaries in 2016 All Together Now between around $500 and forms. The company, which of-
Executives on
Milbank’s move comes two to match those of the most Large law firms tend to raise $600 an hour, according to fers human-resources software Tuesday outlined
years after the last widespread elite Wall Street firms, despite Bodhala, a market intelligence that handles such tasks as
raise for junior lawyer pay, profitability that makes the
salaries in line with their
firm. payroll processing and time-
plans to increase the
competitors.
which set incoming salaries at business case behind raising
Standard first-year law firm
“I hear again and again, keeping, said it expects to company’s margins.
$180,000. That increase was salaries vary widely. Average damn those associate salaries, reach its target for adjusted
associate pay
the first of its breadth in annual profits-per-partner in that is why our rates go up ev- earnings before interest and
nearly a decade, and quickly the nation’s top 100 firms $200,000 ery year,” said Ketan Jhaveri, tax margin of between 21% and
became the new standard. range from $460,000 to $5.7 Bodhala’s co-founder. Rising 22% a year ahead of schedule. firm wrote, “is an ADP lifer
Law firms typically raise million, according to the 150,000 partner compensation also Shares closed up 4% at (like CEO Rodriguez) and is
salaries in line with their American Lawyer. plays a large role in rates, Mr. $139.30. unlikely to be able to exact the
100,000
peers, citing the need to stay “I think it was hard for Jhaveri said, but clients often As it tries to jump-start hard cost cuts and restructur-
competitive when hiring from some firms to swallow the focus on the junior lawyer pay. growth, ADP has been facing ing steps that would materi-
50,000
law school campuses. [2016] increase. It will be even Milbank’s chairman, Scott increased pressure from activ- ally shrink ADP’s cost base and
So far, firms to follow Mil- harder to swallow this in- Edelman, said the raise follows ist investors including William improve operating margins.”
0
bank on raises include Cra- crease,” said Grover Cleveland, several months of discussions Ackman. Renny Ponvert, Manage-
vath, Swaine & Moore LLP, a consultant who trains new 2000 2010 at the management level. Reve- Last year, the company de- ment CV’s research director,
Simpson Thacher & Bartlett lawyers. Source: the firms nue and profits have been ris- feated Mr. Ackman in a heated said in an interview that Mr.
LLP, Proskauer Rose LLP and In addition to the impact on THE WALL STREET JOURNAL. ing, he said, and “we want to proxy fight. Mr. Ackman had Rodriguez needs a counterbal-
Winston & Strawn LLP. profits, some firms may fear send the message to our associ- accused ADP of falling behind ance to help him run the com-
Simpson Thacher and Cra- angering clients, who have be- Jeff Grossman, the managing ates that they’re valued here.” technology-heavy startups and pany, rather than someone
vath sweetened the deal by come more sensitive to hourly director for Wells Fargo Private Only a minority of law said its margins were “vastly who “just works for him as a
doling out summer bonuses of rates and the appearance of Bank’s Legal Specialty Group. school graduates land at firms below their potential.” At the clerical CFO.”
between $5,000 and $25,000 subsidizing hefty lawyer sala- Law firms usually absorb paying top dollar. But law heart of ADP’s problems, he ADP declined to comment
on top of the raises. Cravath ries. the cost by raising rates 3% to firms compete fiercely to hire charged, was an “insular, bu- on Management CV’s criticism,
told associates it will pay Two years ago, the salary 5% each year, even as clients that slice of students. “We’re reaucratic and staid corporate but the company has repeat-
more than Milbank to several raises for associates cost big push back on paying for inex- only interested in the top of culture.” edly defended its executives.
classes at the high end of the firms between $6 million and perienced lawyers. New York the law school population gen- Since then, Mr. Ackman has —Bowdeya Tweh
scale, topping out at $340,000. $14 million a year, according to law firms list billing rates for erally,” said Mr. Edelman. said he is encouraged by ADP’s contributed to this article.
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THE WALL STREET JOURNAL. NY Wednesday, June 13, 2018 | B9
BUSINESS NEWS
Updated Accounting Rules Reverberate

Some companies About 380 companies in the Kate Jaspon again walked
stock index have reported un- stakeholders through the new
adjust operations der the new rules as of June 8, math during an analyst and in-
to comply with new and 294 companies in the investor day in February.
dex disclosed an impact on fi- Dunkin’ now records its
revenue regulations nancial statements from franchise fees over the term of
adopting the standard, accord- the related license, among
LIAM RICHARDS/THE CANADIAN PRESS/ASSOCIATED PRESS

BY TATYANA SHUMSKY ing to Audit Analytics. other changes. Previously,
Finance teams spent Dunkin’ recognized franchise
New accounting rules are months rewriting accounting fees up front, either when a
prompting some corporate fi- processes and procedures and new restaurant was opened or
nance chiefs to change how preparing new financial state- when a renewal agreement be-
they do business. ments to comply with the new came effective.
More than half of the S&P rules. Roughly one in five pub- “Given the sweeping
500 companies disclosed some lic companies surveyed by changes to revenue accounting
impact on their accounting PricewaterhouseCoopers LLP rules, we felt it was important
policies since December, when said they spent or expected to to educate our investment
new rules unified how compa- spend $1 million or more on community on the impacts to
nies account for revenue from this effort. our financial results early in
sales and services. The change, Software-service provider the process and with great
which was in the works for Red Hat previously would tai- transparency,” Ms. Jaspon said
more than a decade, replaces lor the price for its subscrip- in a written statement.
previously disparate, industry- tion bundles for each cus- A Mosaic potash mine. The fertilizer maker is revising business practices in light of the new rules. But other companies are
specific rules and aligns U.S. tomer. Now, the Raleigh, N.C., opting to adjust operating
standards closer to interna- company will have uniform lion during its fourth quarter, when it switches over to the plans to pass title to its cus- practices, where possible,
tional guidelines. pricing and discounts for cli- and 81% of them included mul- new rules in November, said tomers sooner so it can record rather than disrupt the pat-
For finance chiefs of some ents of its open-source soft- tiple technologies, he said. CFO Jim Moylan. revenue on the equipment tern of revenue investors have
companies, including Red Hat ware, said Chief Financial Offi- Some companies expect the “We are certainly talking first and later book the reve- come to expect.
Inc., Ciena Corp. and Mosaic cer Eric Shander. The new new rules to accelerate reve- about how we will restructure nue on the service as it de- Fertilizer maker Mosaic
Co., adopting the new reve- reporting rules require compa- nue, while others say the tim- our contracts in a way to get ploys that equipment, Mr. changed some of its arrange-
nue-recognition standard from nies to more thoroughly ac- ing of when they can record access to that favorable ac- Moylan said. ments and systems to ensure
the Financial Accounting Stan- count for the cost of sales, revenue as earned will be de- counting,” Mr. Moylan said. Other companies doubled that revenue could be re-
dards Board means adjusting such as discounts. layed, even though their un- In the past, Ciena would down on explaining the ac- corded when control of its
their business operations to be “We’re being much more derlying business remains un- sell and install its internet- counting changes to investors. products—potash and phos-
in line with the new account- prescriptive on where you’re changed. networking equipment but Dunkin’ Brands Group Inc. phate—transferred to the cus-
ing framework, which is more placing the discount,” Mr. Telecommunications net- only pass title and control to held a special call with ana- tomer. “The policy changes did
focused on contracts and when Shander said. “It will be more working-equipment maker the customer when everything lysts and investors last Octo- not affect our business eco-
goods and services are deliv- standardized.” The company Ciena expects to recognize was deployed. Under the new ber to discuss pending reve- nomics,” said a spokesman for
ered to customers. closed 169 deals over $1 mil- some of its revenue sooner accounting rules, the company nue accounting changes. CFO Mosaic.
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AUCTIONS
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MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
25320.73 t 1.58, or 0.01% Trailing P/E ratio 24.90 20.76 2786.85 s 4.85, or 0.17% Trailing P/E ratio * 24.59 24.15 7703.79 s 43.87, or 0.57% Trailing P/E ratio * 25.83 26.75
High, low, open and close for each P/E estimate * 16.57 18.02 High, low, open and close for each P/E estimate * 17.29 18.97 High, low, open and close for each P/E estimate * 20.92 21.78
trading day of the past three months. Dividend yield 2.15 2.32 trading day of the past three months. Dividend yield 1.89 1.95 trading day of the past three months. Dividend yield 0.95 1.08
All-time high 26616.71, 01/26/18 All-time high 2872.87, 01/26/18 All-time high: 7703.79, 06/12/18
Session high
Current divisor 0.14523396877348
DOWN UP 26000 2800 7800
t
Session open Close

65-day moving average
Close Open
t
25500 2750 7600

Session low
25000 2700 7400
24500 2650 7200
24000 2600 7000

6800
23500 2550
Bars measure the point change from session's open

6600
23000 2500
Mar. Apr. May June
Mar. Apr. May June Mar. Apr. May June
*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* 831,148,752 9,513,747
Industrial Average 25364.37 25247.04 25320.73 -1.58 -0.01 26616.71 21287.03 18.7 2.4 12.3 share price of $2 and minimum after-hours volume of 50,000 shares. Adv. volume* 432,260,397 2,944,030
Transportation Avg 11128.35 11026.77 11088.93 34.20 0.31 11373.38 9021.12 17.3 4.5 9.6 Most-active issues in late trading Decl. volume* 370,509,288 6,374,191
Utility Average 666.30 656.63 665.65 8.72 1.33 774.47 647.90 -8.1 -8.0 5.9 Volume After Hours Issues traded 3,077 321
Company Symbol (000) Last Net chg % chg High Low Advances 1,464 134
Total Stock Market 29068.02 28947.84 29031.24 64.41 0.22 29630.47 24958.26 14.8 4.9 9.8
AT&T T 23,929.4 33.49 -0.86 -2.50 35.12 33.01 Declines 1,481 160
Barron's 400 759.74 755.52 758.12 1.30 0.17 758.12 629.56 16.5 6.6 9.5
Time Warner TWX 15,214.8 100.40 4.18 4.34 101.75 95.77 Unchanged 132 27
Nasdaq Stock Market SPDR S&P 500 SPY 9,755.3 279.00 0.08 0.03 279.37 278.53 New highs 129 7
Nasdaq Composite 7708.25 7669.53 7703.79 43.87 0.57 7703.79 6089.46 23.8 11.6 15.1 Comcast Cl A CMCSA 6,658.4 31.28 -1.10 -3.40 32.50 30.78 New lows 29 8
7214.49 7173.76 40.70 Closing tick 3 3
Nasdaq 100 7209.18 0.57 7210.08 5596.96 25.3 12.7 17.4 JPMorgan Chase JPM 4,922.8 110.14 -0.05 -0.05 110.47 109.95
Closing Arms† 0.84 1.53
Ford Motor F 4,573.4 12.11 ... unch. 12.11 12.07
S&P Block trades* 6,464 97
21st Century Fox Cl A FOXA 4,206.6 43.45 2.91 7.18 43.70 40.52
500 Index 2789.80 2778.78 2786.85 4.85 0.17 2872.87 2409.75 14.2 4.2 10.0 Nasdaq NYSE Arca
Education Realty Trust EDR 2,774.7 40.09 ... unch. 40.10 40.09
MidCap 400 2008.97 1997.59 2003.97 3.07 0.15 2003.97 1691.67 13.3 5.4 9.4 Total volume*1,983,915,849 182,332,885
SmallCap 600 1045.09 1038.51 1041.95 0.87 0.08 1041.95 817.25 20.3 11.3 12.8 Percentage gainers… Adv. volume*1,350,803,260 69,796,043
Decl. volume* 583,120,781 109,841,650
Other Indexes Enphase Energy ENPH 1,273.7 5.83 1.33 29.56 6.25 4.50
Issues traded 3,099 1,323
Russell 2000 1686.37 1674.94 1682.30 7.62 0.46 1682.30 1356.90 18.0 9.6 10.0 21st Century Fox Cl A FOXA 4,206.6 43.45 2.91 7.18 43.70 40.52
Advances 1,595 602
NYSE Composite 12877.23 12822.93 12844.71 -12.25 -0.10 13637.02 11696.28 8.9 0.3 5.3 21st Century Fox Cl B FOX 670.3 43.05 2.66 6.59 43.95 40.36 Declines 1,344 692
Value Line 584.83 581.84 583.53 1.51 0.26 589.69 503.24 10.6 3.8 4.5 Pivotal Software PVTL 363.8 22.40 1.19 5.61 23.75 21.21 Unchanged 160 29
NYSE Arca Biotech 4927.07 4857.33 4910.23 54.96 1.13 4939.86 3678.37 33.5 16.3 6.4
Express Scripts Holding ESRX 646.6 83.39 4.22 5.33 83.90 79.15 New highs 208 111
New lows 31 18
NYSE Arca Pharma 535.26 532.82 533.46 -1.10 -0.21 593.12 514.66 1.2 -2.1 -2.9 ...And losers
Closing tick 115 63
KBW Bank 110.13 108.55 109.10 -0.22 -0.20 116.52 89.71 15.7 2.2 11.4 H&R Block HRB 2,323.5 23.79 -5.81 -19.63 30.75 23.52 Closing Arms† 0.51 1.20
PHLX§ Gold/Silver 83.91 83.11 83.82 0.19 0.22 93.26 76.42 -0.6 -1.7 8.0 Comcast Cl A CMCSA 6,658.4 31.28 -1.10 -3.40 32.50 30.78 Block trades* 8,189 1,307
PHLX§ Oil Service 157.45 154.41 155.03 -1.64 -1.05 170.18 117.79 9.5 3.7 -9.6 AT&T T 23,929.4 33.49 -0.86 -2.50 35.12 33.01 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1417.46 1404.18 1416.37 7.38 0.52 1445.90 1020.51 29.8 13.0 25.6 Ventas VTR 90.1 53.96 -1.22 -2.21 55.18 53.96 †(TRIN) A comparison of the number of advancing and declining
Cboe Volatility 12.60 11.88 -0.01 37.32 9.14 11.8 issues with the volume of shares rising and falling. An
12.34 -0.08 18.4 -3.6 Brighthouse Financial BHF 62.2 45.14 -0.90 -1.95 46.22 45.14 Arms of less than 1 indicates buying demand; above 1
Nasdaq PHLX 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 3071.46 –3.22 –0.10 –0.5 Galmed Pharmaceuticals GLMD 17.59 10.59 151.29 27.06 3.61 240.9 Heat Biologics HTBX 2.12 -0.48 -18.46 7.89 1.09 -67.0
DJ Global Index 403.85 0.27 0.07 1.7 RH RH 155.00 36.27 30.55 164.49 44.00 196.9 Axovant Sciences AXON 4.10 -0.91 -18.16 27.98 1.02 -81.8
DJ Global ex U.S. 263.50 –0.20 –0.07 –1.2 AGM Group Holdings AGMH 13.39 3.13 30.51 14.99 5.01 ... SITO Mobile SITO 3.13 -0.61 -16.31 8.60 2.68 -8.5
Americas DJ Americas 666.22 1.33 0.20 3.7 Lands' End LE 29.90 6.40 27.23 31.15 10.55 84.0 Xunlei ADR XNET 13.45 -2.23 -14.22 27.00 3.11 289.9
Brazil Sao Paulo Bovespa 72754.13 446.36 0.62 –4.8 NII Holdings NIHD 2.92 0.54 22.69 3.35 0.22 317.0 OpGen OPGN 2.47 -0.33 -11.79 19.50 1.62 -85.9
Canada S&P/TSX Comp 16288.98 25.69 0.16 0.5 Sage Therapeutics SAGE 175.76 28.83 19.62 195.97 59.57 124.3 Griffon GFF 20.25 -2.65 -11.57 24.50 17.45 -13.3
Mexico S&P/BMV IPC 46660.75 359.61 0.78 –5.5 NanoVibronix NAOV 5.00 0.76 17.92 5.00 3.68 ... BioHiTech Global BHTG 4.68 -0.59 -11.20 9.50 2.60 53.4
Chile Santiago IPSA 4104.36 16.79 0.41 –2.5 Dave Buster's Ent PLAY 55.82 7.99 16.70 70.15 37.85 -19.6 Cocrystal Pharma COCP 2.56 -0.31 -10.80 6.58 0.17 ...
Correvio Pharma CORV 3.49 0.49 16.33 4.84 1.29 -10.7 Sesen Bio SESN 2.24 -0.27 -10.76 3.50 0.63 54.5
EMEA Stoxx Europe 600 387.53 –0.41 –0.11 –0.4
Xenon Pharmaceuticals XENE 8.00 1.10 15.94 8.30 2.10 102.5 OncoCyte OCX 2.55 -0.30 -10.53 7.64 1.10 -51.4
Eurozone Euro Stoxx 387.56 –0.23 –0.06 0.5
Belgium Bel-20 3816.79 2.51 0.07 –4.0 Rent-A-Center RCII 12.52 1.62 14.86 13.89 7.22 -0.3 RF Industries RFIL 7.50 -0.85 -10.18 8.95 1.60 328.6
Denmark OMX Copenhagen 891.25 –0.44 –0.05 –3.9 Foresight Autonomous ADR FRSX 3.34 0.43 14.72 11.70 2.44 ... GRAVITY ADR GRVY 67.32 -7.52 -10.05 108.97 13.18 262.1
France CAC 40 5453.37 –20.54 –0.38 2.7 Blink Charging BLNK 6.22 0.75 13.71 33.70 1.28 -28.9 LSB Industries LXU 4.86 -0.54 -10.00 11.71 4.85 -55.5
Germany DAX 12842.30 –0.61 –0.005 –0.6 Conatus Pharmaceuticals CNAT 5.03 0.60 13.54 7.95 3.22 0.6 PolarityTE COOL 25.17 -2.72 -9.75 33.22 15.21 48.4
1.9 Kandi Technologies Group KNDI 4.63 0.53 12.80 9.90 3.50 12.8 Arcadia Biosciences RKDA 9.06 -0.96 -9.58 66.56 3.60 -32.4
Israel Tel Aviv 1538.61 –0.54 –0.04
Italy FTSE MIB 22119.76 33.56 0.15 1.2
Netherlands AEX 563.01 –1.83 –0.32 3.4
Most Active Stocks Volume Movers Ranked by change from 65-day average*
Russia RTS Index 1142.02 … Closed –1.1 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
South Africa FTSE/JSE All-Share 58207.82 61.72 0.11 –2.2
Spain IBEX 35 9914.40 16.10 0.16 –1.3 Advanced Micro Devices AMD 66,188 12.8 15.85 0.76 15.97 9.04 Galmed Pharmaceuticals GLMD 16,348 35289 17.59 151.29 27.06 3.61
Sweden OMX Stockholm 580.44 –0.83 –0.14 2.0 SPDR S&P 500 SPY 62,541 -29.1 278.92 0.13 286.63 239.96 Jernigan Capital JCAP 2,207 2319 19.01 -6.26 24.89 15.90
Switzerland Swiss Market 8640.80 17.26 0.20 –7.9 iShares MSCI Emg Markets EEM 56,765 -12.9 46.21 -0.26 52.08 40.90 Steel Partners Holdings SPLP 231 1873 17.00 -1.16 20.70 16.65
Turkey BIST 100 95306.98 –1354.38 –1.40 –17.4 Finl Select Sector SPDR XLF 54,753 -1.7 27.95 -0.25 30.33 23.79 Pensare Acquisition WRLS 701 1644 9.87 ... 10.17 7.75
0.2
Twitter TWTR 50,810 71.4 43.49 5.00 44.33 15.67 Insight Select Incm Fd INSI 329 1461 18.30 0.38 21.10 18.04
U.K. FTSE 100 7703.81 –33.62 –0.43
U.K. FTSE 250 21241.64 –77.13 –0.36 2.5 Bank of America BAC 48,079 -28.5 29.90 -0.53 33.05 22.73 RH RH 13,934 1436 155.00 30.55 164.49 44.00
Ford Motor F 46,765 19.1 12.11 0.67 13.48 10.14 Flagstar Bancorp FBC 3,040 1162 35.17 -0.34 40.06 29.61
Asia-Pacific
Micron Technology MU 41,036 -29.3 60.55 -1.37 64.66 26.85 Invsc DWA Healthcare Mom PTH 212 1154 90.68 2.20 91.05 55.81
Australia S&P/ASX 200 6054.40 9.20 0.15 –0.2
General Electric GE 39,792 -42.6 13.98 ... 29.16 12.73 WisdomTree Emerg CurrencyCEW 70 1038 18.84 -0.37 20.09 18.47
China Shanghai Composite 3079.80 27.02 0.89 –6.9
Chesapeake Energy CHK 39,771 2.3 4.81 -2.24 5.29 2.53 DFB Hlthcr Acquisitions DFBH 305 961 9.70 ... 9.70 9.70
Hong Kong Hang Seng 31103.06 39.36 0.13 4.0
* Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
India S&P BSE Sensex 35692.52 209.05 0.59 4.8 5,000 shares =Has traded fewer than 65 days
Japan Nikkei Stock Avg 22878.35 74.31 0.33 0.5
Singapore Straits Times 3430.69 –11.00 –0.32 0.8 Track the Markets
South Korea Kospi 2468.83 –1.32 –0.05 0.1 Compare the performance of selected CURRENCIES & COMMODITIES
Taiwan TAIEX 11144.79 –4.44 –0.04 4.7 global stock indexes, bond ETFs,
Thailand SET 1727.29 4.18 0.24 –1.5
currencies and commodities at Currencies
WSJ.com/TrackTheMarkets
Sources: SIX Financial Information; WSJ Market Data Group
U.S.-dollar foreign-exchange rates in late New York trading
US$vs, US$vs,
Tues YTDchg Tues YTDchg
CREDIT MARKETS Country/currency in US$ per US$ (%) Country/currency
Vietnam dong
in US$ per US$ (%)
.00004383 22814 0.5
Americas
Europe
Argentina peso .0388 25.7405 38.4
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race Brazil real .2688 3.7204 12.3
Czech Rep. koruna .04572 21.873 2.8
.1576 6.3438 2.2
U.S. consumer rates Selected rates and
Yield toRates
maturity of current bills, Yen, euro vs. dollar; dollar vs. Canada dollar .7684 1.3015 3.5
Denmark krone
Euro area euro 1.1745 .8515 2.2
notes and bonds major U.S. trading partners Chile peso .001570 637.10 3.5
Hungary forint .003674 272.16 5.1
A consumer rate against its New car loan Ecuador US dollar 1 1 unch
Iceland krona .009397 106.42 2.8
benchmark over the past year Mexico peso .0483 20.7158 5.3
3.75% 15% Norway krone .1242 8.0525 –1.9
Bankrate.com avg†: 4.18% Uruguay peso .03196 31.2900 8.6
Poland zloty .2743 3.6452 4.8
Lake Elmo Bank 1.99% 3.00 Venezuela b. fuerte .00001379900.0001 772489.0
10 Russia ruble .01585 63.093 9.4
4.50% Lake Elmo, MN 651-777-8365 Tuesday Euro Asia-Pacific
s
t
Sweden krona .1157 8.6464 5.6
2.25 5 Australian dollar .7572 1.3207 3.1
t TrustCo Bank 2.37% Switzerland franc 1.0133 .9869 1.3
4.00 Yen China yuan .1562 6.4035 –1.5 Turkey lira .2176 4.5955 21.1
s
Prime rate Orlando, FL 407-422-7129 1.50 0 Hong Kong dollar .1274 7.8472 0.4 Ukraine hryvnia .0383 26.0905 –7.3
3.50 Think Mutual Bank 2.49% t
0.75 India rupee .01482 67.480 5.7 UK pound 1.3370 .7479 1.1
–5 Indonesia rupiah .0000718 13930 3.3
Rochester, NY 800-288-3425 One year ago WSJ Dollar index Middle East/Africa
s
t 3.00 0.00 Japan yen .009060 110.38 –2.1 Bahrain dinar 2.6486 .3776 0.1
Cambridge Savings Bank 2.69% –10
New car loan Kazakhstan tenge .002989 334.55 0.6 Egypt pound .0560 17.8625 0.5
Cambridge, MA 888-418-5626 1 3 6 1 2 3 5 710 30 2017 2018
2.50 Macau pataca .1237 8.0819 0.4 Israel shekel .2786 3.5899 3.2
Farmers State Bank 2.90% month(s) years Malaysia ringgit .2507 3.9895 –1.8
J A S O N D J FMAM J Kuwait dinar 3.3594 .2977 –1.2
Waterloo, IA 877-FSB-1879 maturity New Zealand dollar .7006 1.4273 1.2 Oman sul rial 2.5973 .3850 0.02
2017 2018
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Pakistan rupee .00865 115.600 4.5 Qatar rial .2746 3.641 –0.2
Yield/Rate (%) 52-Week Range (%) 3-yr chg Philippines peso .0189 53.047 6.2 Saudi Arabia riyal .2667 3.7502 –0.01
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Corporate Borrowing Rates and Yields Singapore dollar .7479 1.3370 –0.01 South Africa rand .0750 13.3251 7.8
Federal-funds rate target 1.50-1.75 1.50-1.75 0.75 l 1.50 1.50 South Korea won .0009243 1081.85 1.4
Yield (%) 52-Week Total Return (%) Close Net Chg % Chg YTD%Chg
Bond total return index Close Last Week ago High Low 52-wk 3-yr Sri Lanka rupee .0062692 159.51 3.9
Prime rate* 4.75 4.75 4.00 l 4.75 1.50 WSJ Dollar Index 87.27 0.27 0.31 1.50
Taiwan dollar .03347 29.877 0.7
Libor, 3-month 2.34 2.32 1.25 l 2.37 2.05 Treasury, Ryan ALM 1430.289 2.831 2.788 2.945 1.818 –1.873 1.048 Thailand baht .03115 32.100 –1.5 Sources: Tullett Prebon, WSJ Market Data Group
Money market, annual yield 0.47 0.47 0.25 l 0.47 0.12 10-yr Treasury, Ryan ALM 1666.944 2.959 2.917 3.109 2.058 –4.294 0.288
Five-year CD, annual yield 1.72 1.71 1.38 l 1.72 0.26 DJ Corporate 369.136 3.918 3.869 3.995 2.879 –1.087 2.977 Commodities Tuesday 52-Week YTD
30-year mortgage, fixed† 4.62 4.54 3.73 l 4.69 0.44 Aggregate, Barclays Capital 1902.650 3.350 3.310 3.430 2.380 –0.995 1.615 Pricing trends on someClose
raw materials, or commodities
Net chg % Chg High Low % Chg % chg
15-year mortgage, fixed† 4.10 4.01 2.99 l 4.14 0.75
High Yield 100, Merrill Lynch 2872.580 5.866 5.979 6.319 4.948 1.855 3.922 DJ Commodity 655.40 2.03 0.31 667.35 532.01 19.60 4.80
Jumbo mortgages, $424,100-plus† 4.80 4.74 4.21 l 4.96 0.40
Fixed-Rate MBS, Barclays 1956.610 3.500 3.450 3.580 2.660 –0.800 1.320 TR/CC CRB Index 200.14 0.75 0.38 206.38 166.50 13.83 3.24
Five-year adj mortgage (ARM)† 4.47 4.38 3.22 l 4.78 0.77
Muni Master, Merrill 519.729 2.473 2.473 2.653 1.736 0.658 2.463 Crude oil, $ per barrel 66.36 0.26 0.39 72.24 42.53 42.83 9.83
New-car loan, 48-month 4.18 4.13 2.85 l 4.28 1.18
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 765.176 6.677 6.523 6.677 5.279 –3.123 4.372 Natural gas, $/MMBtu 2.939 -0.01 -0.34 3.63 2.55 -0.91 -0.47
banks.† Excludes closing costs. Gold, $ per troy oz. 1295.10 -3.80 -0.29 1362.40 1208.60 2.31 -0.86
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
Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com
COMMODITIES WSJ.com/commodities
Futures Contracts Open

Contract
High hilo Low Settle Chg
Open
interest
Cash Prices Tuesday, June 12, 2018
Metal & Petroleum Futures July 117.05 117.95 116.75 117.35 .25 67,729 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
Contract Open
Sept 119.05 120.05 118.85 119.50 .30 110,865 separate from the futures price on an exchange, which reflects what the commodity might be worth in future
Sugar-World (ICE-US)-112,000 lbs.; cents per lb. months.
Open High hi lo Low Settle Chg interest
July 12.38 12.55 12.22 12.35 … 234,013
Copper-High (CMX)-25,000 lbs.; $ per lb. Oct 12.65 12.85 12.55 12.67 .03 386,608 Tuesday Tuesday Tuesday
June 3.2400 3.2400 3.2400 3.2425 –0.0080 1,226 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. LBMA spot price *£12.5500 SoybeanMeal,Cent IL,rail,ton48%-u 363.00
July 3.2525 3.2685 3.2335 3.2495 –0.0075 111,652 Sept 26.00 26.00 26.00 25.70 –.26 2,923
Energy (U.S.$ equivalent) *16.7600 Soybeans,No.1 yllw IL-bp,u 9.1900
Gold (CMX)-100 troy oz.; $ per troy oz. Nov 26.00 26.00 26.00 25.93 –.03 1,374 Propane,tet,Mont Belvieu-g 0.8885 Coins,wholesale $1,000 face-a 12428 Wheat,Spring14%-pro Mnpls-u 7.4500
June 1297.80 1298.10 1292.70 1295.10 –3.80 1,089 Cotton (ICE-US)-50,000 lbs.; cents per lb. Butane,normal,Mont Belvieu-g 1.0463 Other metals Wheat,No.2 soft red,St.Louis-bp,u 5.4650
Aug 1304.50 1304.80 1296.30 1299.40 –3.80 320,690 July 95.19 95.85 94.67 95.21 .46 64,088 2.920 Wheat - Hard - KC (USDA) $ per bu-u 5.5100
NaturalGas,HenryHub-i LBMA Platinum Price PM *906.0
Oct 1309.50 1309.50 1302.90 1305.50 –3.80 11,821 Dec 91.68 93.19 91.20 92.90 1.22 184,011 Wheat,No.1soft white,Portld,OR-u 6.0400
NaturalGas,TranscoZone3-i 2.850 Platinum,Engelhard industrial 910.0
Dec 1317.20 1317.20 1308.80 1311.90 –3.80 83,712 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. NaturalGas,TranscoZone6NY-i 2.840 Platinum,Engelhard fabricated 1010.0 Food
Feb'19 1320.50 1321.10 1315.70 1318.40 –3.80 13,504 July 156.85 157.45 154.00 154.30 –2.70 9,459 NaturalGas,PanhandleEast-i 2.420 Palladium,Engelhard industrial 1030.0
Dec ... ... ... 1351.80 –3.70 4,204 Sept 158.60 159.00 156.10 156.25 –2.50 5,522 NaturalGas,Opal-i 2.470 Palladium,Engelhard fabricated 1130.0 Beef,carcass equiv. index
Palladium (NYM) - 50 troy oz.; $ per troy oz. 2.090 choice 1-3,600-900 lbs.-u 194.74
June 1029.00 1029.50 1029.00 1027.60 –1.20 72 Interest Rate Futures NaturalGas,MarcellusNE PA-i Aluminum, LME, $ per metric ton *2300.0
NaturalGas,HaynesvilleN.LA-i 2.720 Copper,Comex spot 3.2425 select 1-3,600-900 lbs.-u 172.49
Sept 1017.40 1018.70 1012.50 1015.30 –1.20 23,391 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Broilers, National comp wghtd-u,w 1.2100
Dec 1011.70 1014.10 1009.00 1011.00 –1.30 633
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 64.150 Iron Ore, 62% Fe CFR China-s n.a.
June 143-210 143-270 143-070 143-240 3.0 9,737 Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 12.400 Shredded Scrap, US Midwest-s,m n.a. Butter,AA Chicago 2.3700
Platinum (NYM)-50 troy oz.; $ per troy oz. Sept 142-270 143-000 142-120 142-290 3.0 794,175 Cheddar cheese,bbl,Chicago 154.00
905.10 910.70 899.40 901.50 –4.90 64,416
Steel, HRC USA, FOB Midwest Mill-s n.a.
July Treasury Notes (CBT)-$100,000; pts 32nds of 100% Metals Cheddar cheese,blk,Chicago 164.00
Oct 910.30 915.40 904.30 906.20 –5.00 20,412 June 119-245 119-265 119-180 119-235 –1.0 32,218 Fibers and Textiles Milk,Nonfat dry,Chicago lb. 78.75
Silver (CMX)-5,000 troy oz.; $ per troy oz. Sept 119-140 119-175 119-075 119-130 –1.0 3,380,050 Gold, per troy oz Cocoa,Ivory Coast-w n.a.
July 16.960 16.980 16.775 16.891 –0.061 133,090 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Engelhard industrial 1297.85 Burlap,10-oz,40-inch NY yd-n,w 0.5675 Coffee,Brazilian,Comp 1.1484
Dec 17.120 17.180 16.995 17.098 –0.061 30,256 June 113-172 113-180 113-132 113-160 –1.0 48,804 Engelhard fabricated 1395.19 Cotton,1 1/16 std lw-mdMphs-u 0.9421 Coffee,Colombian, NY 1.3836
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Sept 113-087 113-105 113-042 113-070 –1.2 3,702,684 Handy & Harman base 1298.65 Cotlook 'A' Index-t *101.35 Eggs,large white,Chicago-u 0.7850
July 66.07 66.69 65.87 66.36 0.26 286,575 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Handy & Harman fabricated 1441.50 Hides,hvy native steers piece fob-u n.a. Flour,hard winter KC 17.10
Aug 65.99 66.52 65.80 66.28 0.25 334,551 June 106-017 106-020 106-005 106-012 –.5 12,622 LBMA Gold Price AM *1299.20 Wool,64s,staple,Terr del-u,w n.a. Hams,17-20 lbs,Mid-US fob-u n.a.
Sept 65.73 66.30 65.50 65.98 0.24 224,632 Sept 105-280 105-282 105-262 105-272 –.2 1,776,607 LBMA Gold Price PM *1298.25 Hogs,Iowa-So. Minnesota-u 74.76
Oct 65.40 65.87 65.10 65.58 0.22 186,196
Grains and Feeds Pork bellies,12-14 lb MidUS-u 1.4325
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Krugerrand,wholesale-e 1347.42
Dec 64.88 65.43 64.66 65.16 0.19 291,441 June 98.178 98.180 98.175 98.178 … 154,066 Barley,top-quality Mnpls-u n.a. Pork loins,13-19 lb MidUS-u 1.0405
Maple Leaf-e 1360.38
Dec'19 61.77 62.08 61.37 61.76 –0.01 185,458 July 98.085 98.090 98.080 98.085 … 251,457 Bran,wheat middlings, KC-u,w 77 Steers,Tex.-Okla. Choice-u n.a.
American Eagle-e 1360.38 Steers,feeder,Okla. City-u,w 165.75
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Corn,No. 2 yellow,Cent IL-bp,u 3.4550
2.1619 2.1817 2.1471 2.1618 .0011 95,333
Mexican peso-e 1570.10
July June 92.859 92.984 92.844 92.969 .031 24,072 Corn gluten feed,Midwest-u,w 124.2 Fats and Oils
2.1648 2.1847 2.1497 2.1644 –.0004 80,873
Austria crown-e 1272.95
Aug Sept 94.828 94.969 94.813 94.953 .031 15,886 Corn gluten meal,Midwest-u,w 463.5
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Austria phil-e 1360.38 30.1000
1 Month Libor (CME)-$3,000,000; pts of 100% Cottonseed meal-u,w 260 Corn oil,crude wet/dry mill-u,w
July 2.1052 2.1171 2.0778 2.0899 –.0150 112,686 June 97.9175 97.9175 97.9175 97.9200 –.0025 6,893 Silver, troy oz. Hominy feed,Cent IL-u,w 106 Grease,choice white,Chicago-h 0.2600
Aug 2.0931 2.1055 2.0675 2.0789 –.0142 96,030 Eurodollar (CME)-$1,000,000; pts of 100% Engelhard industrial 16.8600 Meat-bonemeal,50% pro Mnpls-u,w 293 Lard,Chicago-u n.a.
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. June 97.6525 97.6550 97.6450 97.6475 –.0050 1,349,920 Engelhard fabricated 20.2320 Oats,No.2 milling,Mnpls-u 2.8975 Soybean oil,crude;Centl IL-u 0.2840
July 2.956 2.988 2.917 2.939 –.010 197,256 Dec 97.3400 97.3450 97.3250 97.3350 –.0050 1,938,181 Handy & Harman base 16.9150 Rice, Long Grain Milled, No. 2 AR-u,w 25.75 Tallow,bleach;Chicago-h 0.2675
Aug 2.947 2.974 2.912 2.929 –.012 151,891 June'19 97.1200 97.1250 97.0950 97.1100 –.0050 1,361,241 Handy & Harman fabricated 21.1440 Sorghum,(Milo) No.2 Gulf-u 7.7813 Tallow,edible,Chicago-u n.a.
Sept 2.919 2.943 2.886 2.902 –.009 144,376 Dec 96.9950 97.0050 96.9700 96.9850 –.0050 1,841,253
Oct 2.931 2.954 2.899 2.917 –.006 159,236
Jan'19 3.165 3.185 3.139 3.158 –.004 109,246
Currency Futures 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;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 6/11
March 3.052 3.059 3.011 3.034 … 113,288 Japanese Yen (CME)-¥12,500,000; $ per 100¥ Source: WSJ Market Data Group
June .9091 .9092 .9053 .9067 –.0027 125,755
Agriculture Futures Sept .9149 .9150 .9111 .9124 –.0028 38,701
Corn (CBT)-5,000 bu.; cents per bu. Canadian Dollar (CME)-CAD 100,000; $ per CAD
July
Dec
368.00
389.25
379.50
400.00
367.25
388.50
377.50
398.25
10.25 566,301
10.00 594,274
June
Sept
.7702
.7716
.7706
.7719
.7675
.7689
.7683 –.0019 106,426
.7697 –.0019 40,458
Bonds | WSJ.com/bonds
Oats (CBT)-5,000 bu.; cents per bu. British Pound (CME)-£62,500; $ per £
July 242.25 244.00 240.50 242.25 –.25 2,403 June 1.3382 1.3429 1.3345 1.3379 –.0005 189,951 Tracking Bond Benchmarks
Dec 246.50 251.50 244.50 251.25 3.50 1,892 Sept 1.3439 1.3484 1.3402 1.3436 –.0005 59,195
Soybeans (CBT)-5,000 bu.; cents per bu. Swiss Franc (CME)-CHF 125,000; $ per CHF Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
July 956.50 963.25 t 952.00 954.00 .25 311,919 June 1.0152 1.0178 1.0122 1.0147 –.0011 83,357 highs and lows for different types of bonds
Nov 977.00 983.50 972.00 974.50 .75 313,462 Sept 1.0233 1.0259 1.0203 1.0227 –.0012 14,424 Total Total
Soybean Meal (CBT)-100 tons; $ per ton. Australian Dollar (CME)-AUD 100,000; $ per AUD return YTD total Yield (%) return YTD total Yield (%)
July 351.60 356.60 351.50 353.50 2.30 138,560 June .7607 .7624 .7566 .7571 –.0034 115,399 close return (%) Index Latest Low High close return (%) Index Latest Low High
Dec 355.70 360.00 355.60 357.80 2.90 139,602 July .7601 .7623 .7573 .7572 –.0035 503
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Aug .7594 .7617 .7575 .7573 –.0035 243 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
July 30.60 t
30.73 30.02 30.05 –.53 157,274 Sept .7613 .7628 .7570 .7575 –.0034 18,278
Dec 31.29 t
31.42 30.82 30.85 –.44 161,552 Dec .7600 .7630 .7580 .7582 –.0035 456 1902.65 -2.1 U.S. Aggregate 3.350 2.380 3.430 1956.61 -1.6 Mortgage-Backed 3.500 2.660 3.580
Rough Rice (CBT)-2,000 cwt.; $ per cwt. Mexican Peso (CME)-MXN 500,000; $ per MXN
June .04851 .04868 t .04820 .04826 –.00028 168,449 U.S. Corporate Indexes Bloomberg Barclays 1925.05 -1.5 Ginnie Mae (GNMA) 3.460 2.630 3.540
July 1171.00 1196.00 1129.00 1192.50 28.50 6,175
1067.00 1067.00 t 1030.00 1058.50 –5.50 4,215 Sept .04780 .04797 t .04747 .04754 –.00028 47,799 1146.94 -1.6 Fannie mae (FNMA) 3.510 2.670 3.590
Sept 2702.90 -3.4 U.S. Corporate 4.010 3.030 4.070
Wheat (CBT)-5,000 bu.; cents per bu. Euro (CME)-€125,000; $ per €
July 514.75 538.25 510.25 534.50 20.00 157,417 June 1.1786 1.1815 1.1738 1.1755 –.0038 419,380 2572.06 -1.8 Intermediate 3.710 2.530 3.760 1766.09 -1.7 Freddie Mac (FHLMC) 3.530 2.680 3.610
Sept 531.50 553.50 526.50 550.00 19.25 148,709 Sept 1.1871 1.1896 1.1820 1.1836 –.0040 144,575
Wheat (KC)-5,000 bu.; cents per bu. 3670.54 -6.7 Long term 4.670 3.990 4.750 519.73 -0.5 Muni Master 2.473 1.736 2.653
Index Futures
July 535.50 555.50 530.50 553.50 18.75 95,447 361.55 -1.1 7-12 year 2.559 1.744 2.702
Sept 550.25 570.00 546.25 568.00 18.00 91,469 Mini DJ Industrial Average (CBT)-$5 x index 554.27 -2.4 Double-A-rated 3.440 2.470 3.500
Wheat (MPLS)-5,000 bu.; cents per bu. June 25317 25385 25239 25296 –33 61,821 -0.9
696.56 -3.4 Triple-B-rated 4.310 3.340 4.370 408.40 12-22 year 2.868 2.213 3.004
July 589.75 597.50 588.00 592.50 2.75 19,811 Sept 25341 25404 25258 25315 –33 55,318
Sept 603.50 609.25 600.00 604.50 3.00 18,449 S&P 500 Index (CME)-$250 x index High Yield Bonds Merrill Lynch 396.01 -1.1 22-plus year 3.256 2.716 3.411
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. June 2787.50 2788.50 2781.50 2783.90 0.90 93,072
Sept 2788.70 2793.50 2782.80 2788.20 1.40 36,702 419.50 0.5 High Yield Constrained 6.234 5.373 6.417 Global Government J.P. Morgan†
Aug 145.650 146.500 144.500 145.800 –.150 23,908
147.250 147.800 146.000 146.950 –.625 6,446 Mini S&P 500 (CME)-$50 x index -0.9
Oct
June 2781.25 2789.75 2778.50 2784.00 1.00 1,541,905 434.96 3.5 Triple-C-rated 9.726 9.607 11.091 539.02 Global Government 1.660 1.300 1.680
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Sept 2785.00 2794.00 2782.25 2788.25 1.50 1,809,743 754.12 -0.1 Canada 2.250 1.610 2.450
June 108.700 109.000 108.050 108.525 –.125 11,450 2872.58 0.4 High Yield 100 5.866 4.948 6.319
Aug 104.175 104.800 103.250 104.300 .125 154,782 Mini S&P Midcap 400 (CME)-$100 x index
Hogs-Lean (CME)-40,000 lbs.; cents per lb. June 2002.10 2009.40 s 1997.80 2004.30 3.10 28,781 376.94 -0.5 Global High Yield Constrained 5.934 4.934 6.001 367.61 -0.8 EMU§ 1.332 0.956 1.362
Sept 2005.80 2014.60 s 2002.70 2009.30 3.30 70,237
June 80.500 80.650 80.075 80.525 .375 10,886
Mini Nasdaq 100 (CME)-$20 x index 303.62 -0.9 Europe High Yield Constrained 3.308 1.897 3.387 710.29 -0.03 France 0.940 0.690 1.040
Aug 75.750 77.675 75.100 77.525 1.975 62,659
June 7165.0 7216.5 7155.5 7199.5 29.3 143,366
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. U.S Agency Bloomberg Barclays 508.62 0.2 Germany 0.540 0.330 0.740
Sept 7192.5 7242.5 7181.0 7226.3 30.3 148,285
July 572.00 573.70 569.60 569.60 –10.00 4,364
Sept 555.80 557.00 552.50 552.50 –10.00 1,499
Mini Russell 2000 (ICE-US)-$100 x index 1623.30 -0.9 U.S Agency 2.810 1.690 2.870 290.12 0.5 Japan 0.380 0.350 0.460
June 1674.40 1686.70 s 1672.10 1681.40 5.30 9,364
Milk (CME)-200,000 lbs., cents per lb. Mini Russell 1000 (ICE-US)-$100 x index
June 15.41 15.44 15.38 15.40 –.03 3,623 1456.17 -0.4 10-20 years 2.710 1.510 2.760 561.52 0.2 Netherlands 0.640 0.460 0.830
June 1549.80 1549.80 1547.60 1547.20 1.30 84
July 15.90 15.95 15.82 15.83 –.07 3,858
U.S. Dollar Index (ICE-US)-$1,000 x index 3270.31 -3.4 20-plus years 3.390 2.730 3.550 922.90 -0.9 U.K. 1.650 1.340 1.830
Cocoa (ICE-US)-10 metric tons; $ per ton. June 93.68 93.92 93.46 93.80 .24 33,708
July 2,373 2,420 2,347 2,413 41 27,911
Sept 93.28 93.52 93.05 93.41 .24 11,519 2398.19 -2.6 Yankee 3.740 2.610 3.740 765.18 -5.3 Emerging Markets ** 6.677 5.279 6.677
Sept 2,410 2,456 2,392 2,444 36 97,461
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Source: SIX Financial Information *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
BANKRATE.COM® MMA, Savings and CDs Exchange-Traded

Portfolios Global Government Bonds: Mapping Yields
Average Yields of Major Banks Tuesday, June 12, 2018
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR Largest 100 exchange-traded
funds, latest session selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
National average
Savings 0.17 0.07 0.08 0.19 0.26 0.46 0.64 0.60 1.12 Tuesday, June 12, 2018 Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l)-2 -1 0 1 2 3 4 Previous Month ago Year ago Latest Prev Year ago
Jumbos 0.32 0.08 0.08 0.21 0.28 0.50 0.70 0.67 1.20 Closing Chg YTD
Weekly change ETF Symbol Price (%) (%) 2.500 U.S. 2 2.553 s l 2.516 2.539 1.359
Savings 0.00 0.00 0.00 0.00 0.00 -0.01 -0.02 0.01 0.00 AlerianMLPETF AMLP 10.66 0.28 –1.2 2.875 10 2.957 s l 2.954 2.970 2.214
CnsmrDiscSelSector XLY 110.89 0.48 12.4
Jumbos 0.00 0.00 0.00 0.00 0.00 -0.01 -0.01 0.00 -0.01 4.500 Australia 2 2.078 t l 2.086 2.018 1.612 -43.0 25.2
CnsStapleSelSector XLP 51.35 0.20 –9.7 -47.5
EnSelectSectorSPDR XLE 76.71 –0.76 6.2
FinSelSectorSPDR XLF 27.95 –0.25 0.1 2.250 10 2.816 s l 2.786 2.793 2.402 -14.1 -16.8 18.8
Consumer Savings Rates FT DJ Internet FDN 140.27 1.09 27.7
0.000 France 2 -0.493 s l -0.514 -0.496 -0.515 -304.6 -303.0 -187.4
HealthCareSelSect XLV 85.15 –0.06 3.0
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed- IndSelSectorSPDR XLI 76.51 –0.10 1.1 0.750 10 0.830 t l 0.848 0.794 0.607 -212.6 -210.6 -160.6
erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter InvscQQQI QQQ 175.83 0.53 12.9
of 2014 from federal regulators. 5: most desirable performance; NR: institution is too new to rate, InvscS&P500EW RSP 104.54 0.29 3.5 0.000 Germany 2 -0.620 s l -0.635 -0.581 -0.756 -317.3 -315.1 -211.5
not an indication of financial strength or weakness. Information is believed to be reliable, but not InvscSrLoan BKLN 23.08 0.04 0.2
guaranteed. iSh1-3YCreditBond CSJ 103.59 0.01 –0.9 0.500 10 0.493 t l 0.495 0.561 0.250 -246.3 -245.9 -196.4
iSh3-7YTreasuryBd IEI 119.40 –0.05 –2.3
High yield savings iShCoreMSCIEAFE IEFA 66.56 –0.69 0.7 0.350 Italy 2 1.012 t l 1.090 -0.277 -0.266 -154.1 -142.6 -162.6
iShCoreMSCIEmgMk IEMG 56.10 –0.18 –1.4
Bank/rank Yield Bank/rank Yield iShCoreMSCITotInt IXUS 63.22 –0.44 0.2 2.000 10 2.864 s l 2.847 1.881 2.017 -9.2 -10.7 -19.7
Phone number Minimum (%) Phone number Minimum (%) iShCoreS&P500 IVV 280.89 0.14 4.5
iShCoreS&P MC IJH 200.64 0.14 5.7 0.100 Japan 2 -0.131 t l -0.130 -0.134 -0.111 -268.4 -264.6 -147.0
Money market and savings account Six-month CD 85.74 0.11 11.6
iShCoreS&P SC IJR 0.100 10 0.050 s l 0.045 0.046 0.059 -290.7 -290.9 -215.5
VirtualBank /4 $100 2.01 First Internet Bank of Indiana /4 $1,000 1.97 iShS&PTotlUSStkMkt ITOT 64.29 0.19 5.2
(877) 998-2265 (888) 873-3424 iShCoreUSAggBd AGG 105.67 0.03 –3.3 1.400 Spain 2 -0.274 t l -0.268 -0.329 -0.301 -282.7 -278.4 -166.1
iShSelectDividend DVY 99.00 0.26 0.4
CIT Bank /5 $100 1.85 AloStar, a division of State Bank /4 $1,000 1.90
iShEdgeMSCIMinEAFE EFAV 73.95 –0.27 1.3 1.400 10 1.439 t l 1.439 1.285 1.433 -151.8 -151.5 -78.1
(855) 462-2652 (877) 738-6391 iShEdgeMSCIMinUSA USMV 53.73 0.19 1.8
DollarSavingsDirect /5 $1 1.80 CD Bank /4 $10,000 1.90 iShEdgeMSCIUSAMom MTUM 113.90 0.28 10.4 2.000 U.K. 2 0.749 s l 0.746 0.796 0.073 -180.4 -177.1 -128.6
(866) 395-8693 (888) 201-8185 iShFloatingRateBd FLOT 50.93 ... 0.2
iShGoldTr IAU 12.43 –0.32 –0.6 4.250 10 1.402 t l 1.408 1.441 0.966 -155.5 -154.6 -124.7
One-month CD One-year CD iShiBoxx$InvGrCpBd LQD 114.40 0.01 –5.9
Source: Tullett Prebon
EH National Bank /4 $0 0.83 VirtualBank /4 $10,000 2.35 iShiBoxx$HYCpBd HYG 85.89 0.08 –1.6
(888) 392-5265 (877) 998-2265 iShJPMUSDEmgBd EMB 107.03 –0.42 –7.8
M.Y. Safra Bank, FSB /NR $5,000 0.30 TAB Bank /5 $1,000 2.33
iShMBSETF
iShMSCI ACWI
MBB
ACWI
103.49
74.09
0.08 –2.9
–0.13 2.8
Corporate Debt
(212) 652-7200 (800) 837-4136 iShMSCIBrazil EWZ 34.16 1.07 –15.6 Price moves by a company's debt in the credit markets sometimes mirror and sometimes anticipate, moves in
Mount McKinley Bank /5 $5,000 0.15 First Internet Bank of Indiana /4 $1,000 2.32 iShMSCI EAFE EFA 70.41 –0.64 0.1 that same company’s share price.
(907) 452-1751 (888) 873-3424 iShMSCI EAFE SC SCZ 66.16 –0.44 2.6
Two-month CD Two-year CD
iShMSCIEmgMarkets EEM 46.21 –0.26 –1.9 Investment-grade spreads that tightened the most…
iShMSCIEurozone EZU 43.56 –0.66 0.4
Spread*, in basis points Stock Performance
VirtualBank /4 $10,000 0.15 First Internet Bank of Indiana /4 $1,000 2.58 iShMSCIJapan EWJ 60.65 –0.62 1.2
Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
(877) 998-2265 (888) 873-3424 iShNasdaqBiotech IBB 110.91 0.85 3.9
iShNatlMuniBd MUB 108.75 –0.01 –1.8 Societe Generale S.A. SOCGEN 6.000 Jan. 27, ’49 305 –27 327 ... ...
Applied Bank /5 $1,000 0.05 M.Y. Safra Bank, FSB /NR $5,000 2.56 iShRussell1000Gwth IWF 147.66 0.41 9.6
(800) 616-4605 (212) 652-7200 iShRussell1000 IWB 155.70 0.16 4.8 Anthem ANTM 4.101 March 1, ’28 116 –26 139 231.68 –0.28
VirtualBank /4 $10,000 2.55 iShRussell1000Val IWD 124.08 –0.05 –0.2 Deutsche Bank AG DB 3.150 Jan. 22, ’21 168 –16 159 11.41 –0.17
(877) 998-2265 iShRussell2000Gwth IWO 210.49 0.90 12.7 Bank of Nova Scotia* BNS 2.350 Oct. 21, ’20 56 –11 66 58.15 –0.46
iShRussell2000 IWM 167.53 0.46 9.9
Three-month CD Five-year CD iShRussell2000Val IWN 134.19 –0.11 6.7 HSBC Holdings HSBC 6.000 May 22, ’49 350 –11 343 49.26 –0.06
$10,000 1.60 M.Y. Safra Bank, FSB /NR $5,000 3.06 iShRussell3000 IWV 166.24 0.20 5.1
CD Bank /4 Intesa Sanpaolo SpA ISPIM 5.710 Jan. 15, ’26 400 –10 392 ... ...
iShRussellMid-Cap IWR 217.70 0.43 4.6
(888) 201-8185 (212) 652-7200 Illinois Tool Works ITW 3.500 March 1, ’24 53 –10 n.a. 149.94 0.51
iShRussellMCValue IWS 90.01 0.25 1.0
First Internet Bank of Indiana /4 $1,000 1.56 First Internet Bank of Indiana /4 $1,000 3.04 iShS&PMC400Growth IJK 232.60 0.24 7.8 Banco Santander S.A. SANTAN 3.848 April 12, ’23 144 –10 146 ... ...
(888) 873-3424 (888) 873-3424 iShS&P500Growth IVW 167.62 0.35 9.7
M.Y. Safra Bank, FSB /NR $5,000 1.55 Synchrony Bank /5 $2,000 2.85 iShS&P500Value
iShUSPfdStk
IVE
PFF
113.07
37.49
–0.11 –1.0
–0.08 –1.5
…And spreads that widened the most
(212) 652-7200 (800) 903-8154
iShShortTreaBd SHV 110.31 ... 0.1 Pfizer PFE 3.000 June 15, ’23 50 16 47 36.30 ...
iShTIPSBondETF 111.82 –0.08 –2.0
High yield jumbos - Minimum is $100,000 iSh1-3YTreasuryBd
TIP
SHY 83.21 –0.05 –0.8 Domtar UFS 6.250 Sept. 1, ’42 320 11 n.a. 49.04 –0.26
Money market and savings account Six-month CD iSh7-10YTreasuryBd IEF 101.55 –0.06 –3.8 General Electric GE 5.000 Jan. 21, ’49 232 10 240 13.98 ...
iShRussellMCGrowth IWP 131.68 0.63 9.2
PIMCOEnhShMaturity MINT 101.45 –0.02 –0.1
United Parcel Service UPS 2.500 April 1, ’23 52 10 51 118.34 1.28
VirtualBank /4 2.01 First Internet Bank of Indiana /4 1.97
SPDR BlmBarcHYBd JNK 35.85 0.11 –2.4 Boston Scientific 3.850 May 15, ’25 114 9 n.a. 33.84 –1.40
(877) 998-2265 (888) 873-3424 BSX
SPDR Gold GLD 122.82 –0.33 –0.7
ableBanking,adivisionofNortheastBank/5 1.70 Luana Savings Bank /5 1.96 SchwabIntEquity SCHF 34.11 –0.61 0.1 Colgate–Palmolive CL 2.250 Nov. 15, ’22 25 8 n.a. 63.73 –0.03
(877) 505-1933 (800) 666-2012 SchwabUS BrdMkt SCHB 67.88 0.21 5.2 Morgan Stanley MS 4.875 Nov. 1, ’22 112 8 105 51.32 –0.89
BankDirect /4 1.51 MyeBanc,ADivisionofBACFloridaBank/4 1.85 SchwabUS Div SCHD 51.01 0.06 –0.3
Prudential Financial PRU 5.625 June 15, ’43 164 8 161 99.76 –1.07
(877) 839-2737 (855) 512-0989 SchwabUS LC SCHX 66.86 0.19 4.8
SchwabUS SC SCHA 75.69 0.36 8.5
One-month CD One-year CD SPDR DJIA Tr DIA 253.30 –0.04 2.4 High-yield issues with the biggest price increases…
EH National Bank /4 0.85 VirtualBank /4 2.35 SPDR S&PMdCpTr MDY 365.14 0.14 5.7 Bond Price as % of face value Stock Performance
SPDR S&P 500 SPY 278.92 0.13 4.5 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
(888) 392-5265 (877) 998-2265 SPDR S&P Div SDY 94.31 0.21 –0.2
M.Y. Safra Bank, FSB /NR 0.30 First Internet Bank of Indiana /4 2.32 TechSelectSector XLK 72.11 0.49 12.8 Endo Dac* ENDP 6.000 July 15, ’23 81.063 1.81 73.750 … …
(212) 652-7200 (888) 873-3424 UtilitiesSelSector XLU 49.15 1.15 –6.7
USAA /NR 0.22 Colorado Federal Savings Bank /4 2.30 VanEckGoldMiner GDX 22.49 –0.27 –3.2 Frontier Communications FTR 11.000 Sept. 15, ’25 83.000 1.75 81.000 7.77 5.28
(800) 583-8295 (877) 484-2372 VangdInfoTech VGT 189.12 0.67 14.8 Ultra Resources UPL 6.875 April 15, ’22 73.563 1.69 69.500 … …
VangdSC Val VBR 139.51 –0.02 5.1
American Tire Distributors ATD 10.250 March 1, ’22 52.500 1.50 n.a. ... ...
Two-month CD Two-year CD VangdSC Grwth VBK 180.58 0.92 12.3
VirtualBank /4 0.15 First Internet Bank of Indiana /4 2.58 VangdDivApp VIG 104.71 –0.03 2.6 Altice Luxembourg S.A. ATCNA 7.625 Feb. 15, ’25 91.375 1.38 89.772 ... ...
VangdFTSEDevMk VEA 44.86 –0.62 ...
(877) 998-2265 (888) 873-3424 VangdFTSE EM VWO 45.01 –0.07 –2.0
Jones Energy Holdings JONE 6.750 April 1, ’22 61.125 1.13 n.a. … …
Applied Bank /5 0.05 M.Y. Safra Bank, FSB /NR 2.56 VangdFTSE Europe VGK 58.94 –0.61 –0.4 Murray Energy MURREN 11.250 April 15, ’21 58.280 1.03 56.875 ... ...
(800) 616-4605 (212) 652-7200 VangdFinls VFH 70.87 –0.46 1.2
Rent–A–Center RCII 6.625 Nov. 15, ’20 99.250 1.00 98.500 12.52 14.86
Citizens Trust Bank /4 0.01 VirtualBank /4 2.55 VangdFTSEAWxUS VEU 54.37 –0.44 –0.6
VangdGrowth VUG 153.72 0.45 9.3
(404) 659-5959 (877) 998-2265
VangdHiDiv VYM 85.95 –0.05 0.4 …And with the biggest price decreases
Three-month CD Five-year CD VangdIntermBd BIV 80.53 –0.02 –3.9
Intelsat Luxembourg S.A. INTEL 7.750 June 1, ’21 92.500 –2.50 83.000 ... ...
VangdIntrCorpBd VCIT 83.24 –0.04 –4.7
Luana Savings Bank /5 1.81 M.Y. Safra Bank, FSB /NR 3.06
(800) 666-2012 (212) 652-7200
VangdLC VV 128.35 0.18 4.7 Genworth Fincl GNW 6.500 June 15, ’34 89.725 –1.53 79.500 4.74 –1.66
VangdMC VO 161.95 0.47 4.6
First Internet Bank of Indiana /4 1.56 First Internet Bank of Indiana /4 3.04 VangdMC Val VOE 112.93 0.20 1.2
Sanchez Energy SN 6.125 Jan. 15, ’23 65.000 –0.83 64.970 4.15 –1.66
(888) 873-3424 (888) 873-3424 VangdRealEst VNQ 80.56 0.60 –2.9 Adient Global Holdings ADNT 4.875 Aug. 15, ’26 90.500 –0.75 92.000 … …
M.Y. Safra Bank, FSB /NR 1.55 Synchrony Bank /5 2.85 VangdS&P500 VOO 256.33 0.17 4.5
VangdST Bond BSV 78.06 –0.01 –1.3 First Quantum Minerals FMCN 7.250 April 1, ’23 99.625 –0.63 100.500 ... ...
(212) 652-7200 (800) 903-8154 VangdSTCpBd VCSH 77.97 0.01 –1.7 Neiman Marcus NMG 8.000 Oct. 15, ’21 70.188 –0.56 73.500 ... ...
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields VangdSC VB 159.99 0.39 8.2
VangdTotalBd BND 78.79 –0.01 –3.4
Tenneco TEN 5.000 July 15, ’26 92.000 –0.50 92.750 46.31 –0.24
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
VangdTotIntlBd BNDX 54.16 0.11 –0.4 Blue Racer Midstream BLURAC 6.125 Nov. 15, ’22 102.000 –0.46 102.000 ... ...
VangdTotIntlStk VXUS 56.70 –0.42 –0.2
month, three (3) of which may be checks. Rates are subject to change. VangdTotalStk VTI 144.42 0.21 5.2 *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.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408 VangdTotlWrld VT 76.12 –0.10 2.5 Note: Data are for the most active issue of bonds with maturities of two years or more
Internet: www.bankrate.com VangdValue VTV 107.08 –0.12 0.7 Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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. s CSX s Tiffany
CSX 66.75 -0.53 Cullen/Frost CFR 114.20 -1.22 F5Networks FFIV 177.57 0.63 IntlFlavors IFF 124.43 -1.13 MohawkInds MHK 213.95 2.99 RedHat RHT 173.01 2.78 TIF 135.97 2.38
NYSE Arca, NYSE American and Nasdaq Stock t-New 52-week low.
CVS Health CVS 66.35 -0.59 Cummins CMI 143.59 -0.97 FMC FMC 89.87 0.98 IntlPaper IP 58.66 -0.35 MolsonCoors B TAP 66.09 1.42 RegencyCtrs REG 60.42 1.10 TimeWarner TWX 96.22 0.05
Market listed securities. Prices are composite dd-Indicates loss in the most recent
CabotOil COG 23.59 0.05 CypressSemi CY 17.36 0.22 Facebook FB 192.40 0.86 Interpublic IPG 23.46 -0.13 Momo MOMO 52.98 0.12 RegenPharm REGN 309.53 -2.42 Toll Bros TOL 40.72 0.59
quotations that include primary market trades four quarters.
CadenceDesign CDNS 44.51 0.26 FactSet FDS 210.69 0.99 Intuit INTU 207.49 1.13 Mondelez MDLZ 40.43 0.20 RegionsFin RF 18.95 0.08 Torchmark TMK 84.62 -1.06
as well as trades reported by Nasdaq BX FD-First day of trading. D E F
CaesarsEnt CZR 11.93 -0.02 Fastenal FAST 53.48 0.64 s IntuitiveSurgical ISRG 494.92 4.21 MonsterBev MNST 56.18 0.11 ReinsGrp RGA 148.03 -1.84 Toro TTC 63.61 -0.12
(formerly Boston), Chicago Stock Exchange, h-Does not meet continued listing
CamdenProperty CPT 90.97 0.35 FederalRealty FRT 122.30 1.51 InvitatHomes INVH 22.15 0.01 Moody's MCO 178.05 0.23 RelianceSteel RS 95.05 -0.48 TorontoDomBk TD 58.17 0.22
Cboe, NYSE National and Nasdaq ISE. standards DCT Industrial DCT 66.35 ... s RepublicSvcs RSG 69.41 0.69
CampbellSoup CPB 35.13 0.30 FedEx FDX 265.53 3.56 s iQIYI IQ 34.52 0.01 MorganStanley MS 51.32 -0.46 Total TOT 60.89 -1.49
The list comprises the 1,000 largest lf-Late filing DISH Network DISH 32.38 0.26 s ResMed
CIBC CM 88.53 -0.02 Ferrari RACE 140.64 1.56 IronMountain IRM 35.00 0.36 Mosaic MOS 29.47 0.03 RMD 106.95 0.39 TotalSystem TSS 88.44 1.93
companies based on market capitalization. q-Temporary exemption from Nasdaq DTE Energy DTE 96.49 1.79 MotorolaSol MSI 113.28 0.77
CanNtlRlwy CNI 83.20 -0.15 FiatChrysler FCAU 21.11 -0.18 IsraelChemicals ICL 4.81 0.05 RestaurantBrands QSR 60.41 1.28 ToyotaMotor TM 134.55 -2.60
Underlined quotations are those stocks with requirements. DXC Tech DXC 84.69 -0.21 MurphyOil MUR 33.24 -1.24
CanNaturalRes CNQ 33.07 -0.23 FibriaCelulose FBR 19.35 0.24 ItauUnibanco ITUB 10.79 -0.01 RioTinto RIO 58.77 -0.33 TractorSupply TSCO 75.78 -0.14
large changes in volume compared with the t-NYSE bankruptcy s CanPacRlwy CP 194.04 Danaher DHR 103.16 -0.08 Mylan MYL 41.86 0.09
0.19 FidNatlFin FNF 37.91 0.12 RobertHalf RHI 69.40 0.57 TransCanada TRP 41.88 -0.49
v-Trading halted on primary market.
issue’s average trading volume.
vj-In bankruptcy or receivership or Canon CAJ 33.94 -0.29
Darden
DaVita
DRI 92.83
DVA 71.76
0.52
-0.35
s FidNatlInfo FIS 107.17 1.31 J K L NICE NICE 107.70 0.96 Rockwell ROK 180.21 1.76 TransDigm TDG 343.01 1.01
CapitalOne COF 96.27 0.01 FifthThirdBncp FITB 31.28 -0.14 NRG Energy NRG 33.51 0.85 RockwellCollins COL 138.42 -0.53 Transocean RIG 12.43 -0.43
Boldfaced quotations highlight those issues being reorganized under the Deere DE 157.59 0.91
CardinalHealth CAH 53.55 -0.26 58.com WUBA 80.72 1.99 JD.com JD 41.47 1.83 NVR NVR 3210.21 48.98 RogersComm B RCI 47.42 -0.17 TransUnion TRU 71.70 0.76
whose price changed by 5% or more if their Bankruptcy Code, or securities DellTechs DVMT 86.71 -0.93
Carlisle CSL 110.51 0.06 51job JOBS 109.33 1.13 JPMorganChase JPM 110.19 -0.64 NXP Semi NXPI 115.25 -3.04 Rollins ROL 52.79 0.55 Travelers TRV 129.58 -0.92
previous closing price was $2 or higher. assumed by such companies. DeltaAir DAL 54.55 -0.34 s FirstData JackHenry JKHY 129.56 0.51 Nasdaq NDAQ 95.32 0.21
Carlyle CG 22.45 -0.25 FDC 21.05 0.57 RoperTech ROP 286.33 0.80 Trimble TRMB 34.58 0.11
DentsplySirona XRAY 44.18 0.78
CarMax KMX 73.85 0.03 FirstHorizonNatl FHN 19.17 0.07 JacobsEngg JEC 66.18 -0.14 NationalGrid NGG 56.15 0.62 RossStores ROST 85.71 0.15 s TripAdvisor TRIP 58.29 1.18
DeutscheBank DB 11.41 -0.02 JamesHardie JHX 17.05 -0.35 NatlOilwell NOV 42.27 0.11
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and Carnival CCL 62.17 1.03
DevonEnergy DVN 41.93 -0.34
FirstRepBank FRC 101.33 -0.37 RoyalBkCanada RY 76.88 -0.06 21stCenturyFoxA FOXA 40.54 0.41
changes in the closing prices from 4 p.m. the previous day. Carnival CUK 62.63 0.80 FirstEnergy FE 33.32 0.35 JanusHenderson JHG 32.15 0.04 NatlRetailProp NNN 42.30 0.39 RoyalBkScotland RBS 7.18 -0.15 21stCenturyFoxB FOX 40.39 0.47
s DexCom DXCM 98.78 3.77 JazzPharma JAZZ 175.36 -2.57
Caterpillar CAT 157.49 1.19 Fiserv FISV 75.85 0.72 NektarTherap NKTR 53.56 0.54 RoyalCaribbean RCL 105.70 2.02 s Twitter TWTR 43.49 2.07
Diageo DEO 147.10 -0.68
CboeGlobalMkts CBOE 105.60 0.68 FleetCorTech FLT 204.98 2.17 JefferiesFin JEF 23.12 0.02 s NetApp NTAP 76.17 0.58 RoyalDutchA RDS.A 68.86 -1.53 TylerTech TYL 236.27 4.09
Tuesday, June 12, 2018 Net Net DiamondbkEner FANG 118.88 5.05
Celanese A CE 116.03 -1.03 Flex FLEX 14.06 -0.11 JetBlue JBLU 18.94 -0.14 Netease NTES 257.44 4.24 RoyalDutchB RDS.B 72.60 -1.20 TysonFoods TSN 71.48 -0.51
Stock Sym Close Chg Stock Sym Close Chg DigitalRealty DLR 108.76 -0.53
Net Celgene CELG 77.47 -0.86 FlirSystems FLIR 54.26 -0.58 J&J JNJ 122.54 -0.12 Netflix NFLX 363.83 2.38 RoyalGold RGLD 92.35 1.00 UBS Group UBS 15.88 -0.03
Stock Sym Close Chg DiscoverFinSvcs DFS 75.31 0.04 JohnsonControls JCI 35.19 0.10 s Neurocrine NBIX 101.07 1.91
AIG AIG 54.56 -0.57 BankofMontreal BMO 78.08 -0.19 Cemex CX 6.12 -0.07 Fluor FLR 49.82 -0.51 Ryanair RYAAY 118.43 0.22 UDR UDR 37.30 0.05
DiscoveryB DISCB 27.25 1.25
AmerTowerREIT AMT 141.14 1.50 BankNY Mellon BK 57.67 -0.03 CenovusEnergy CVE 9.81 -0.10 FomentoEconMex FMX 83.93 0.88 JonesLang JLL 170.95 0.97 NewOrientalEduc EDU 106.27 0.87 s SAP SAP 120.19 0.18 UGI UGI 49.28 0.71
A B C AmerWaterWorks AWK 79.48 1.13 BkNovaScotia BNS 58.15 -0.27 s Centene CNC 123.71 1.77
DiscoveryA DISCA 24.02
DiscoveryC DISCK 22.82
0.13
0.19
FootLocker FL 57.94 -0.07 JuniperNetworks JNPR 27.87 0.09 NewResidInvt NRZ 18.16 -0.02 s S&P Global SPGI 207.49 0.07 US Foods USFD 36.82 -0.15
Ameriprise AMP 146.87 -0.59 BankofOzarks OZRK 48.94 -0.27 CenterPointEner CNP 25.91 0.69 FordMotor F 12.11 0.08 KAR Auction KAR 55.15 ... NewellBrands NWL 26.32 0.73 SBA Comm SBAC 160.75 2.66 s USG USG 43.23 0.19
Disney DIS 104.33 -0.02
ABB ABB 23.35 ... AmerisourceBrgn ABC 88.04 0.76 Barclays BCS 10.80 -0.14 CenturyLink CTL 17.95 0.10 s DocuSign DOCU 61.82
s Fortinet FTNT 64.11 0.86 KB Fin KB 51.98 -0.82 NewfieldExpln NFX 29.88 -0.22 SEI Investments SEIC 66.48 -0.16 s UbiquitiNetworks UBNT 86.28 -0.48
2.28
ADT ADT 8.29 0.32 Ametek AME 75.85 0.23 BarrickGold ABX 13.16 -0.04 Cerner CERN 60.66 -0.05 Fortis FTS 31.23 ... KKR KKR 23.24 -0.02 NewmontMin NEM 38.79 0.22 Sina SINA 94.15 1.05 UltaBeauty ULTA 248.29 -3.55
AES AES 13.04 0.21 DolbyLab DLB 64.14 -0.23 KLA Tencor KLAC 113.59 1.12 NewsCorp A NWSA 16.00 0.13
Amgen AMGN 185.07 0.46 s BaxterIntl BAX 75.35 0.16 CharterComms CHTR 290.98 7.92 DollarGeneral DG 96.68 0.76
Fortive FTV 78.29 -0.08 SINOPEC SHI 71.28 0.78 UltSoftware ULTI 270.15 5.29
Aflac AFL 45.74 -0.01 Amphenol APH 90.87 0.15 BectonDicknsn BDX 233.64 1.07 CheckPoint CHKP 100.88 1.55 FortBrandsHome FBHS 57.99 0.17 KT KT 14.25 0.24 NewsCorp B NWS 16.40 0.20 SK Telecom SKM 25.18 0.43 UltraparPart UGP 13.68 0.30
AGNC Invt AGNC 18.91 -0.05 DollarTree DLTR 86.59 2.64 KSCitySouthern KSU 110.37 0.30 NextEraEnergy NEE 157.41 2.01
AnadarkoPetrol APC 71.35 -0.08 BeiGene BGNE 198.65 -1.33 Chemours CC 50.08 -0.93 DominionEner D 64.89 1.68
Franco-Nevada FNV 70.35 -0.04 SLGreenRealty SLG 97.45 -0.08 UnderArmour A UAA 24.00 -0.10
ANGI Homesvcs ANGI 15.95 0.25 AnalogDevices ADI 102.02 0.63 Berkley WRB 77.00 -0.97 CheniereEnergy LNG 64.85 -0.93 s Domino's FranklinRscs BEN 34.06 -0.24 Kellogg K 65.71 0.26 NielsenHoldings NLSN 31.46 0.15 SS&C Tech SSNC 52.62 0.65 UnderArmour C UA 22.13 -0.04
s Ansys ANSS 175.96 2.97 DPZ 273.20 3.43 KeyCorp KEY 20.64 0.08 Nike NKE 74.29 -0.30
Andeavor ANDV 139.31 -3.56 BerkHathwy B BRK.B 195.27 -0.06 CheniereEnerPtrs CQP 35.87 0.13 Donaldson DCI 48.65 0.11
FreeportMcM FCX 17.86 -0.33 SVB Fin SIVB 320.14 -0.97 Unilever UN 56.08 0.06
ASML ASML 209.34 -0.52 AndeavorLog ANDX 44.58 -0.10 BerkHathwy A BRK.A 293005235.00 CheniereEnHldgs CQH 29.98 -0.05 DouglasEmmett DEI 39.01 FreseniusMed FMS 50.92 -0.11 KeysightTechs KEYS 61.60 -0.09 NiSource NI 23.73 0.46 s Sabre SABR 26.22 0.23 Unilever UL 55.77 0.14
AT&T T 34.35 0.17 0.56 KilroyRealty KRC 76.76 0.24 NobleEnergy NBL 34.28 -0.05
AB InBev BUD 97.65 0.72 BerryGlobal BERY 47.79 0.04 Chevron CVX 127.08 -0.48 Dover DOV 78.63 -0.37
SageTherap SAGE 175.76 28.83 UnionPacific UNP 146.10 -0.01
AbbottLabs ABT 62.92 -0.21 AnnalyCap NLY 10.52 -0.05 BestBuy BBY 74.05 0.41 ChinaEastrnAir CEA 43.32 0.99 DowDuPont DWDP 69.78 0.29
G H I KimberlyClark KMB 103.53 -0.11 Nokia NOK 5.93 0.03 s Salesforce.com CRM 136.26 2.28 UnitedContinental UAL 72.39 0.24
AbbVie ABBV 98.91 -0.86 AnteroResources AR 19.99 0.40 s Bio-Techne TECH 162.19 1.27 ChinaLifeIns LFC 14.25 0.11 KimcoRealty KIM 16.73 0.23 NomuraHoldings NMR 5.16 -0.04 Sanofi SNY 38.59 -0.69 s UnitedMicro UMC 2.90 0.05
s Abiomed ABMD 430.85 12.64 DrPepperSnap DPS 120.79 0.20 GGP GGP 20.92 0.13 KinderMorgan KMI 16.93 -0.22 Nordson NDSN 131.64 -0.71
Anthem ANTM 231.68 -0.65 s Bio-RadLab A BIO 300.79 -0.21 ChinaLodging HTHT 48.67 0.95 Dropbox DBX 30.83 0.73 SantanderCons SC 18.93 0.10 UPS B UPS 118.34 1.49
Accenture ACN 162.84 0.09 Gallagher AJG 66.37 -0.87 Knight-Swift KNX 41.30 -0.02 Nordstrom JWN 52.93 0.67 SareptaTherap SRPT 98.76 0.74 UnitedRentals URI 169.80 1.87
Aon AON 141.87 -0.77 Biogen BIIB 306.19 -0.49 ChinaMobile CHL 45.84 0.14 DukeEnergy DUK 72.48 0.36
ActivisionBliz ATVI 75.94 0.94 Gaming&Leisure GLPI 35.58 0.48 s Kohl's KSS 78.32 0.73 s NorfolkSouthern NSC 156.28 0.16 Sasol SSL 37.04 -0.53 US Bancorp USB 51.23 -0.22
Apache APA 42.76 -1.84 BioMarinPharm BMRN 90.00 0.21 ChinaPetrol SNP 95.36 -0.43 DukeRealty DRE 28.76 0.22
s AdobeSystems ADBE 252.59 1.59 Gap GPS 32.93 0.18 KoninklijkePhil PHG 42.83 -0.07 NorthernTrust NTRS 106.73 0.23 Schlumberger SLB 68.60 -1.27 US Steel X 37.58 0.50
ApartmtInv AIV 41.63 0.18 BlackKnight BKI 52.30 0.35 ChinaSoAirlines ZNH 56.29 1.35 ENI E 36.63 -0.25
s AdvanceAuto AAP 133.64 0.91 GardnerDenver GDI 29.45 -0.38 KoreaElcPwr KEP 16.22 0.07 NorthropGrum NOC 329.35 -5.01 SchwabC SCHW 57.31 -0.10 UnitedTech UTX 127.85 -0.32
ApolloGlbMgmt APO 32.00 -0.33 BlackBerry BB 12.33 0.26 ChinaTelecom CHA 46.92 -0.10 EOG Rscs EOG 118.47 0.46
AdvMicroDevices AMD 15.85 0.12 Garmin GRMN 62.37 0.11 KraftHeinz KHC 60.12 0.24 NorwegCruise NCLH 52.73 0.46 Seagate STX 57.10 -0.84 UnitedHealth UNH 253.58 -0.20
Apple AAPL 192.28 1.05 BlackRock BLK 547.11 -1.95 ChinaUnicom CHU 13.17 0.08 EPAM Systems EPAM 127.58 1.64
Aegon AEG 6.34 -0.07 Gartner IT 138.47 1.31 Kroger KR 25.69 0.15 Novartis NVS 75.84 0.04 SealedAir SEE 44.30 0.07 UniversalHealthB UHS 116.01 -0.73
ApplMaterials AMAT 50.86 0.97 Blackstone BX 32.82 -0.08 Chipotle CMG 466.30 -0.34 EQT EQT 55.50 1.28
AerCap AER 55.05 0.14 GeneralDynamics GD 198.50 -3.20 Kyocera KYO 59.31 -0.14 NovoNordisk NVO 44.29 -0.54 s SeattleGenetics SGEN 69.21 2.47
s Aptiv APTV 101.97 0.15 BlockHR HRB 29.60 0.22 Chubb CB 132.32 -0.68 E*TRADE ETFC 64.52 0.04 UnumGroup UNM 39.13 -0.24
Aetna AET 180.68 -1.38 GeneralElec GE 13.98 ... LATAMAirlines LTM 11.85 0.06 Nucor NUE 67.07 -0.01 SemicondctrMfg SMI 6.90 0.13 VEREIT VER 7.25 0.05
Aramark ARMK 39.35 0.51 bluebirdbio BLUE 184.75 4.85 ChunghwaTel CHT 36.62 -0.02 s EXACT Sci EXAS 66.72 1.87
AffiliatedMgrs AMG 162.18 -1.58 GeneralMills GIS 44.52 0.10 L Brands LB 36.52 -0.42 s Nutanix NTNX 60.65 4.29 SempraEnergy SRE 117.13 -0.06 VF VFC 84.47 1.16
ArcelorMittal MT 33.22 -0.57 Boeing BA 370.62 -0.32 Church&Dwight CHD 49.69 0.84 EastWestBncp EWBC 70.87 -0.47
AgilentTechs A 66.32 0.19 GeneralMotors GM 44.18 -0.67 LG Display LPL 10.41 -0.01 Nutrien NTR 52.69 -0.04 ServiceCorp SCI 36.50 -0.11 VICI Prop VICI 20.60 0.07
ArchCapital ACGL 83.14 -0.34 BookingHldgs BKNG 2132.00 7.71 Cigna CI 178.82 -2.13 EastmanChem EMN 109.47 0.07
AgnicoEagle AEM 45.57 0.46 s Gentex GNTX 25.18 0.15 LINE LN 39.63 2.15 NVIDIA NVDA 262.58 1.96
ArcherDaniels ADM 45.10 -0.41 BoozAllen BAH 45.07 0.29 CimarexEnergy XEC 89.88 2.63 Eaton ETN 80.41 -0.40 ServiceMaster SERV 58.77 0.25 Visa V 134.86 0.95
AirProducts APD 168.00 -0.44 GenuineParts GPC 95.07 -0.25 LKQ LKQ 32.74 0.03 ServiceNow NOW 181.84 1.76 VailResorts MTN 279.50 7.51
Arconic ARNC 18.00 -0.16 BorgWarner BWA 49.11 -1.17 CincinnatiFin CINF 70.06 -0.47
s AkamaiTech AKAM 80.57 1.31 AristaNetworks ANET 274.64 2.96 BostonProps BXP 122.07 -0.24 s Cintas CTAS 192.30 1.78
EatonVance EV 55.78
eBay EBAY 40.45
-0.54
-0.04
Gerdau GGB 3.89 0.08 LPL Financial LPLA 70.44 -0.14 O P Q ShawComm B SJR 21.16 0.28 Vale VALE 13.96 0.27
AlaskaAir ALK 62.28 -0.59 Gildan GIL 28.83 -0.01 L3 Tech LLL 201.65 -0.65 SherwinWilliams SHW 402.44 3.92 s ValeantPharm VRX 26.60 0.14
ArrowElec ARW 78.33 0.13 BostonSci BSX 33.84 -0.48 CiscoSystems CSCO 43.94 0.25 Ecolab ECL 145.05 -0.25
Albemarle ALB 95.74 0.37 s AspenTech AZPN 98.36 1.09 Braskem BAK 22.75 -0.23 Citigroup C 67.61 -0.50
GileadSciences GILD 71.68 -0.15 LabCpAm LH 188.98 0.03 OGE Energy OGE 33.80 0.56 ShinhanFin SHG 43.67 -0.58 ValeroEnergy VLO 118.02 -2.55
Ecopetrol EC 21.05 -0.23 s
Alcoa AA 49.29 -0.63 AstraZeneca AZN 36.16 -0.21 s BrightHorizons BFAM 108.09 0.65 CitizensFin CFG 42.21 0.36
GSK GSK 41.20 0.01 LamResearch LRCX 186.93 3.22 ONEOK OKE 69.24 0.22
Shire SHPG 160.50 0.02 VarianMed VAR 122.34 0.56
EdisonInt EIX 59.53 0.59
AlexandriaRlEst ARE 126.82 1.55 AthenaHealth ATHN 158.38 CitrixSystems CTXS106.61 -0.50
s GlobalPayments GPN 118.46 1.63 LamarAdv LAMR 73.31 0.87 OReillyAuto ORLY 284.78 ...
Shopify SHOP 165.24 5.00 Vedanta VEDL 14.54 -0.05
-0.11 Bristol-Myers BMY 53.13 0.01 s EdwardsLife EW 148.52 2.25 GoDaddy GDDY 73.13 0.99 LambWeston LW 65.69 OccidentalPetrol OXY 84.93 -1.22
AlexionPharm ALXN 117.58 0.88 Athene ATH 45.32 -0.90 BritishAmTob BTI 49.30 -1.07 Clorox CLX 127.61 -0.31 0.33 SignatureBank SBNY 125.77 -1.34 VeevaSystems VEEV 81.02 1.37
ElectronicArts EA 139.78 0.62 Goldcorp GG 14.26 0.04 s LasVegasSands LVS 80.29 s OldDomFreight ODFL 163.21 1.52
Alibaba BABA 209.08 3.38 Atlassian TEAM 66.21 1.86 Broadcom AVGO 261.43 0.60 Coca-Cola KO 44.41 0.28 1.16 SimonProperty SPG 166.15 1.05 Ventas VTR 55.18 0.27
EmersonElec EMR 73.21 0.03 GoldmanSachs GS 232.63 -1.46 Lazard OldRepublic ORI 21.11 -0.20
s AlignTech ALGN 354.25 5.81 AtmosEnergy ATO 85.31 0.70 BroadridgeFinl BR 116.23 -1.09 Coca-Cola Euro CCE 38.79 0.34 Enbridge ENB 32.46 0.20
LAZ 52.81 -0.24 s SiriusXM SIRI 7.27 0.05 s VeriSign VRSN 139.91 2.01
Goodyear GT 25.16 -0.22 Lear OmegaHealthcare OHI 31.21 0.40
Alkermes ALKS 49.78 0.75 Autodesk ADSK 137.36 1.39 BrookfieldMgt BAM 41.49 0.05 Coca-Cola Femsa KOF 58.61 0.37 Encana ECA 12.91 0.13
LEA 201.90 -2.20
Omnicom OMC 75.58 0.49 s SixFlags SIX 72.03 0.87 s VeriskAnalytics VRSK 109.43 0.49
Alleghany Y 586.95 -6.06 Graco GGG 46.96 -0.57 Leidos LDOS 61.88 0.29 Skyworks SWKS 100.88 1.22 Verizon VZ 48.81 -0.49
Autohome ATHM 115.76 1.34 BrookfieldInfr BIP 38.01 0.23 Cognex CGNX 46.48 0.06 s EncompassHealth EHC 66.63 -0.30 ON Semi ON 25.11 0.01
Allegion ALLE 82.17 0.91 GrafTechIntl EAF 20.23 0.10 Lennar A LEN 54.68 0.98
Autoliv ALV 158.98 -0.74 s Brown&Brown BRO 28.44 -0.15 CognizantTech CTSH 78.25 1.28 EnelAmericas ENIA 9.40 0.01 s OpenText OTEX 36.13 0.30 SmithAO AOS 65.24 0.77 VertxPharm VRTX 150.99 2.36
Allergan Grainger GWW 318.77 2.60 Lennar B LEN.B 43.63 0.85
AGN 170.96 -0.08 s ADP ADP 139.30 5.22 Brown-Forman B BF.B 52.77 0.63 ColgatePalm CL 63.73 -0.02 EnelChile ENIC 5.30 -0.08 Oracle ORCL 48.45 0.26 Smith&Nephew SNN 36.44 -0.36 Viacom B VIAB 28.29 0.01
AllianceData ADS 224.53 2.34 Grifols GRFS 24.68 0.11 LennoxIntl LII 212.38 1.76 Smucker SJM 105.90 -0.27 Viacom A VIA 33.30 0.35
AutoZone AZO 687.54 -2.47 Brown-Forman A BF.A 52.15 1.73 ColumbiaSportswr COLM 92.62 0.61 EnelGenChile EOCC 21.39 -0.19 Orange ORAN 17.36 -0.16
AlliantEnergy LNT 39.05 0.67 GrubHub GRUB 112.82 5.25 LibertyBroadbandC LBRDK 74.99 1.09 Snap SNAP 13.42 0.25 Vipshop VIPS 11.33 -0.44
Avalonbay AVB 168.52 1.91 Brunswick BC 68.44 -0.17 Comcast A CMCSA 32.38 0.38 Energen EGN 64.21 1.23 Orix IX 84.80 -1.05
Allstate ALL 93.50 -0.12 GpoAvalAcc AVAL 8.60 -0.09 LibertyBroadbandA LBRDA 74.82 1.23 SnapOn SNA 158.55 0.66 VistraEnergy VST 24.20 0.11
Avangrid AGR 50.14 0.46 BuckeyePtrs BPL 37.36 -0.02 Comerica CMA 95.77 1.06 EnergyTransferEq ETE 17.76 -0.13 OwensCorning OC 66.03 0.99
AllyFinancial ALLY 26.77 0.06 GpoFinGalicia GGAL 47.00 -2.25 LibertyGlobal C LBTYK 29.07 0.31 SOQUIMICH SQM 50.60 -0.88 VMware VMW 148.27 -1.03
AveryDennison AVY 107.41 -0.30 Bunge BG 69.69 ... CommerceBcshrs CBSH 65.39 -0.55 EnergyTransfer ETP 19.56 0.09 PG&E PCG 39.29 -0.47
AlnylamPharm ALNY 105.91 5.86 GrupoTelevisa TV 17.38 0.10 LibertyGlobal A LBTYA 30.14 0.41 Sony SNE 49.85 -0.65 Vodafone VOD 25.26 -0.09
AxaltaCoating AXTA 31.53 -0.11 BurlingtonStrs BURL 156.43 0.42 ConagraBrands CAG 37.70 0.04 EnLinkMidPtrs ENLK 17.06 0.12 PNC Fin PNC 147.19 0.16
Alphabet C GOOG 1139.32 9.33 Guidewire GWRE 92.12 2.57 LibertyFormOne A FWONA 31.40 0.62 Southern SO 43.44 0.60 VornadoRealty VNO 72.70 0.02
BB&T BBT 54.00 -0.20 CA CA 36.86 0.46 ConchoRscs CXO 133.86 4.23 Entergy ETR 76.98 0.93 POSCO PKX 84.37 -1.63
Alphabet A GOOGL 1148.19 7.29 HCA Healthcare HCA 106.31 -0.13 LibertyFormOne C FWONK 32.67 0.67 SoCopper SCCO 51.14 -0.18 VoyaFinancial VOYA 53.06 -0.24
BCE BCE 42.53 0.09 CBD Pao CBD 20.74 0.02 ConocoPhillips COP 69.43 -1.06 EnterpriseProd EPD 29.37 -0.15 PPG Ind PPG 103.53 -0.40
s Altaba HCP HCP 24.27 0.09 LibertyBraves A BATRA 25.76 0.12
AABA 81.62 0.93 BHPBilliton BHP 51.14 -0.69 s CBRE Group CBRE 48.74 0.20 t ConEd ED 72.48 1.09 Equifax EFX 124.65 0.21 PPL PPL 26.14 0.44 SouthwestAir LUV 50.97 -0.01 VulcanMatls VMC 130.97 0.71
HDFC Bank HDB 104.65 1.00 LibertyBraves C BATRK 25.88 0.17 SpectraEnerPtrs SEP 31.92 0.22
AlticeUSA ATUS 17.70 -0.20 BHPBilliton BBL 46.57 -0.77 CBS A CBS.A 52.68 0.38 ConstBrands A STZ 229.71 3.62 Equinix EQIX 405.33 1.10 PTC PTC 93.52 1.67
Altria MO 57.88 -0.37 BOK Fin BOKF 102.63 -0.67 CBS B CBS 52.38 0.39 ConstBrands B STZ.B230.00 2.61 Equinor EQNR 26.81 -0.36
HD Supply HDS 43.23 0.27 LibertySirius C LSXMK 46.16
HP HPQ 23.62 -0.25 LibertySirius A LSXMA 45.90
0.30
PVH PVH 166.21 -0.29 SpiritAeroSys SPR 89.37 -0.03 W X Y Z
AlumofChina ACH 13.07 -0.29 BP BP 46.12 -1.00 CDK Global CDK 65.35 0.26 ContinentalRscs CLR 65.10 -0.68 EquityLife ELS 92.20 0.20 0.21
Paccar PCAR 65.20 -0.40 s Splunk SPLK 118.40 1.33
HSBC HSBC 49.26 -0.03 LibertyProperty LPT 44.89 0.06 s Spotify SPOT 170.23 -2.14 WABCO WBC 125.38 0.13
Amazon.com AMZN 1698.75 9.63 BT Group BT 14.00 0.03 CDW CDW 84.41 -0.20 Cooper COO 228.00 6.03 EquityResdntl EQR 64.21 0.17 s PackagingCpAm PKG 123.61 -0.17
HUYA HUYA 36.22 -0.17 EliLilly LLY 85.49 -0.37 PacWestBancorp PACW 54.87 -0.26 Sprint S 5.31 0.05 WEC Energy WEC 59.33 0.73
Ambev ABEV 5.05 -0.03 BWX Tech BWXT 66.79 -0.78 CF Industries CF 43.55 0.48 Copart CPRT 57.61 0.04 EssexProp ESS 238.63 -0.65 Halliburton HAL 47.86 ... LincolnElectric LECO 93.57 0.63 PagSeguroDig PAGS 31.30 -0.49 s Square SQ 63.21 1.92 WEX WEX 189.42 2.26
Amdocs DOX 69.17 0.20 Baidu BIDU 267.42 -2.36 CGI Group GIB 62.21 0.13 Corning GLW 28.60 -0.24 s EsteeLauder EL 157.09 2.04 Hanesbrands HBI 20.92 0.42 LincolnNational LNC 69.10 W.P.Carey WPC 67.14 0.35
Amerco UHAL 353.02 1.70 BakerHughes BHGE 34.54 0.39 CH Robinson CHRW 90.83 2.15 s CoStar CSGP 410.95 5.70 EverestRe RE 227.29 -1.19 -0.30 PaloAltoNtwks PANW 207.42 8.71 StanleyBlackDck SWK 144.49 0.07
HarleyDavidson HOG 43.35 0.58 LiveNationEnt LYV 46.18 0.07 ParkHotels PK 30.69 -0.27 WPP WPP 83.48 0.30
Ameren AEE 56.06 0.77 Ball BLL 37.82 0.01 CIT Group CIT 51.73 -0.26 s Costco COST 204.88 0.38 Evergy EVRG 52.25 0.68 Starbucks SBUX 56.48 ...
Harris HRS 152.36 -1.87 LloydsBanking LYG 3.40 ... ParkerHannifin PH 174.17 -0.33 StateStreet STT 99.42 -0.82 WPX Energy WPX 18.14 -0.07
AmericaMovil A AMOV 15.37 0.12 BancoBilbaoViz BBVA 7.23 -0.07 CME Group CME 170.22 -0.41 Coty COTY 14.23 0.13 EversourceEner ES 53.68 0.81 HartfordFinl HIG 53.00 0.14 LockheedMartin LMT 315.16 s Wabtec
-4.14 ParsleyEnergy PE 28.63 0.73 SteelDynamics STLD 49.78 -0.39 WAB 102.97 0.18
AmericaMovil AMX 15.39 0.10 BancodeChile BCH 94.92 -0.35 CMS Energy CMS 43.30 0.67 Credicorp BAP 231.22 2.44 Exelon EXC 40.49 0.56 Hasbro HAS 91.21 0.78 Loews L 49.78 -0.25 Paychex s Steris STE 106.06 -0.76 WalgreensBoots WBA 63.70 -0.36
AmerAirlines AAL 43.41 -0.75 BcoSantChile BSAC 31.64 -0.24 CNA Fin CNA 47.99 -0.10 CreditAcceptance CACC 365.15 -0.74 Expedia EXPE 124.39 0.77 Heico HEI 94.73 -1.01 s LogitechIntl LOGI 44.99 PAYX 69.45 1.31
0.23 PaycomSoftware PAYC 110.45 3.81 STMicroelec STM 25.05 -0.10 Walmart WMT 84.10 -0.20
AEP AEP 63.57 0.64 BcoSantMex BSMX 6.94 0.02 CNH Indl CNHI 11.88 0.01 CreditSuisse CS 15.78 -0.09 s ExpeditorsIntl EXPD 78.03 0.99 Heico A HEI.A 77.25 -1.10 Lowe's LOW 100.50 ... PayPal Stryker SYK 162.54 -7.24 WasteConnections WCN 76.64 0.13
AmerExpress AXP 100.73 -0.47 BancoSantander SAN 5.64 -0.09 CNOOC CEO 172.47 0.67 CrownCastle CCI 104.68 1.35 ExpressScripts ESRX 79.17 -0.40 Helm&Payne HP 65.61 ... lululemon PYPL 85.02 1.13 WasteMgt WM 83.90 0.34
AmericanFin AFG 109.80 -1.31 BanColombia CIB 47.09 0.65 CPFLEnergia CPL 11.90 0.08 CrownHoldings CCK 45.53 0.38 ExtraSpaceSt EXR 98.43 0.57 LULU 124.96 2.59 Pearson PSO 11.93 0.01 SumitomoMits SMFG 8.26 -0.07
HenrySchein HSIC 72.97 0.17 LyondellBasell LYB 117.67 0.14 PembinaPipeline PBA 34.40 -0.34 SunComms SUI 96.22 0.04 Waters WAT 208.95 2.29
AmHomes4Rent AMH 21.14 0.23 BankofAmerica BAC 29.90 -0.16 CRH CRH 38.11 -0.21 Ctrip.com CTRP 50.31 0.84 ExxonMobil XOM 82.42 -0.68 Hershey HSY 93.38 0.97 Watsco WSO 191.35 2.98
Pentair PNR 44.16 -0.73 SunLifeFinancial SLF 41.86 -0.53
Hess HES 60.47 -1.33 M N People'sUtdFin PBCT 19.00 -0.07 SuncorEnergy SU 40.17 -1.32 s Wayfair W 108.14 4.17
HewlettPackard HPE 15.79 -0.12 Weibo WB 105.89 2.05
Borrowing Benchmarks | WSJ.com/bonds Hexcel
Hill-Rom
HXL 69.98 -3.28 M&T Bank MTB 175.16
HRC 93.20 -0.38 MGM Resorts MGM 31.64
-0.62 PepsiCo PEP 104.48 1.27
0.05 PerkinElmer PKI 79.39 0.44
SunTrustBanks STI 70.13 -0.02
Symantec SYMC 21.43 0.23
SynchronyFin SYF 35.30 0.04
s WellCareHealth WCG 239.40
WellsFargo WFC 55.38
2.15
-0.13
Hilton HLT 83.81 -0.18 MPLX MPLX 35.98 -0.23 Perrigo PRGO 74.04 0.56 Welltower WELL 58.31 0.01
Synopsys SNPS 90.79 0.20
HollyFrontier HFC 72.88 -3.40 s MSCI MSCI 169.74 3.25 PetroChina PTR 82.05 -0.37 WestPharmSvcs WST 98.37 1.10
SynovusFin SNV 56.29 -0.17
Money Rates June 12, 2018 Hologic HOLX 38.78 0.34 Macerich
HomeDepot HD 201.31 1.67 Macy's
MAC 57.83
M 39.97
0.82 PetroleoBrasil PBR 9.78 -0.10
0.22 PetroleoBrasilA PBR.A 8.30 0.05
Sysco SYY 66.22 -0.19 WestAllianceBcp WAL 62.71
WesternDigital WDC 82.12
0.24
-0.88
HondaMotor HMC 32.16 -0.51 MadisonSquGarden MSG 276.29 Pfizer PFE 36.30 ...
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Honeywell HON 152.26 0.39 MagellanMid MMP 70.77
0.78
-0.05 PhilipMorris PM 80.32 -0.15
T U V WesternGasEquity WGP 37.53
WesternGasPtrs WES 52.19
-0.17
-0.06
HormelFoods HRL 36.36 -0.25 MagnaIntl MGA 65.01 -1.05 Phillips66 PSX 115.55 -1.47 s TAL Education TAL 45.65 -0.22 WesternUnion WU 21.10 0.21
guide to general levels but don’t always represent actual transactions. DR Horton DHI 44.92 0.87 Manpower MAN 92.54 0.53 PinnacleFoods PF 64.10 0.21 TD Ameritrade AMTD 60.52 -1.01 WestlakeChem WLK 114.51 -1.33
Week —52-WEEK— Week —52-WEEK— HostHotels HST 21.46 -0.11 ManulifeFin MFC 19.07 -0.05 PinnacleWest PNW 74.58 1.02 TE Connectivity TEL 97.49 0.29 t WestpacBanking WBK 20.91
Inflation Latest ago High Low Latest ago High Low HowardHughes HHC 137.69 0.67 MarathonOil MRO 21.36 -0.11 PioneerNatRscs PXD 192.95 1.41 Telus TU 35.29 -0.03 WestRock WRK 61.82
-0.36
0.38
May index Chg From (%) HuanengPower HNP 29.28 0.14 MarathonPetrol MPC 75.46 -2.31 PlainsAllAmPipe PAA 25.51 0.21 Ternium TX 37.20 0.05 Weyerhaeuser WY 38.36 0.44
level April '18 May '17 Treasury bill auction Six month 2.49875 2.47963 2.52375 1.42322 Hubbell HUBB 112.44 0.35 Markel MKL 1108.71 -9.84 PlainsGP PAGP 25.53 0.23 TIM Part TSU 17.18 0.09 WheatonPrecMet WPM 22.17 0.04
One year 2.76469 2.73888 2.78031 1.69511 s Humana HUM 305.91 4.42 MarketAxess MKTX 215.47 -2.67 PolarisIndustries PII 127.67 0.28 s TJX TJX 95.42 0.41 Whirlpool WHR 151.64 0.96
4 weeks 1.790 1.780 1.790 0.850 JBHunt JBHT 130.82 0.56 Marriott MAR 139.86 0.72 Pool POOL 150.29 0.81 T-MobileUS TMUS
58.09 0.10 Williams WMB 26.73 -0.02
U.S. consumer price index -0.71 Praxair PX 161.34 0.77
13 weeks 1.910 1.910 1.910 0.990 Euro Libor HuntingtonBcshs HBAN 15.59 0.03 Marsh&McLen MMC 81.70 TRowePrice TROW 126.24 0.38 WilliamsPartners WPZ 40.42 0.05
All items 251.588 0.42 2.8 HuntingIngalls HII 221.79 -4.02 MartinMarietta MLM 230.29 0.58 PrincipalFin PFG 56.76 -0.60 TableauSftwr DATA 101.17 1.29 WillisTowers WLTW 157.27 -0.24
26 weeks 2.075 2.070 2.080 1.100 One month -0.401 -0.407 -0.397 -0.420 Huntsman HUN 32.56 -0.02 MarvellTech MRVL 21.61 0.24 Procter&Gamble PG 77.24 -0.29 TaiwanSemi TSM 39.20 0.44 Wipro
Core 257.469 0.17 2.2 WIT 4.92 0.13
Three month -0.350 -0.351 -0.350 -0.389 HyattHotels H 82.92 -0.60 Masco MAS 38.87 0.16 Progressive PGR 61.92 -0.82 TakeTwoSoftware TTWO 114.70 1.38 WooriBank WF 47.57 0.86
Secondary market Six month -0.305 -0.309 -0.295 -0.339 IAC/InterActive IAC 160.50 2.95 Mastercard MA 200.13 1.64
Prologis PLD 65.51 0.03
Tapestry TPR 45.82 -0.49 Workday WDAY 126.59 3.35
International rates ICICI Bank IBN 8.56 0.01 MatchGroup MTCH 43.38 1.30
Proofpoint PFPT 125.63 4.18
TargaResources TRGP 48.78 -1.86 Worldpay WP 83.92 2.21
Fannie Mae One year -0.228 -0.232 -0.180 -0.263 s ICU Medical ICUI 304.65 14.40 Mattel MAT 17.61 0.39
PrudentialFin PRU 99.76 -1.08
s Target TGT 79.07 0.01 WyndhamDest WYND 48.19 -0.40
s Prudential PUK 49.77 -0.49
Week 52-Week IdexxLab IDXX 222.34 1.27 MaximIntProducts MXIM 60.86 0.10
PublicServiceEnt PEG 51.93 1.12
TataMotors TTM 22.79 0.02 WynnResorts WYNN 179.39 -1.43
Latest High Low
30-year mortgage yields Euro interbank offered rate (Euribor) IHSMarkit INFO 50.60 -0.09 McCormick MKC 105.18 0.01 TechnipFMC FTI 32.77 -0.06 XL Group XL 56.31 -0.09
ago PublicStorage PSA 215.92 1.28
30 days 4.251 4.179 4.344 3.253 One month -0.371 -0.371 -0.366 -0.374 ING Groep ING 15.12 -0.10 McDonalds MCD 166.73 0.24 TeckRscsB TECK 29.31 -0.26 s XPO Logistics XPO 114.18 2.67
PulteGroup PHM 32.98 0.72
Invesco IVZ 27.96 0.03 McKesson MCK 145.54 0.33
s Qiagen TelecomArgentina TEO 22.80 -0.22 XcelEnergy XEL 42.58 0.45
Prime rates 60 days 4.278 4.206 4.371 3.281 Three month -0.321 -0.322 -0.321 -0.332 IPG Photonics IPGP 244.28 -1.06 Medtronic MDT 86.69 0.10
QGEN 37.22 0.07
TelecomItalia A TI.A 7.25 0.07 Xerox XRX 27.73 -0.39
Six month -0.267 -0.269 -0.267 -0.279 Qorvo QRVO 80.73 0.90
U.S. 4.75 4.75 4.75 4.00 IQVIA IQV 104.95 0.78 MelcoResorts MLCO 30.51 0.15 TelecomItalia TI 8.14 0.01 Xilinx XLNX 70.00 0.28
Qualcomm QCOM 59.79 -0.14
Canada 3.45 3.45 3.45 2.70
Other short-term rates One year -0.181 -0.182 -0.149 -0.194 IcahnEnterprises IEP 72.43 1.19 MercadoLibre MELI 301.14 3.41
QuestDiag DGX 111.01 -0.64
TeledyneTech TDY 208.90 -0.97 Xylem XYL 71.39 -0.43
s Icon ICLR 133.18 -0.79 Merck MRK 62.44 0.11 Teleflex TFX 284.87 0.98 YPF YPF 17.72 -0.27
QurateRetailB QRTEB 21.64 0.38
Japan 1.475 1.475 1.475 1.475 Value 52-Week IDEX IEX 143.23 -0.16 Methanex MEOH 71.15 -0.15
QurateRetailA QRTEA 21.79 -0.03
Ericsson ERIC 7.44 0.16 YY YY 114.84 1.77
Week 52-Week IllinoisToolWks ITW 149.94 0.76 MetLife MET 47.49 -0.11 TelefonicaBras VIV 12.21 0.01 Yandex YNDX 36.47 1.48
Latest Traded High Low
Policy Rates Latest ago high low s Illumina ILMN 292.07 7.94 MettlerToledo MTD 595.14
ImperialOil IMO 32.91 -0.38 MichaelKors KORS 68.13
2.86
1.78
R S Telefonica TEF 9.04 0.06
TelekmIndonesia TLK 26.69 0.25
YumBrands YUM 83.23
YumChina YUMC 42.04
0.12
0.31
Euro zone 0.00 0.00 0.00 0.00 DTCC GCF Repo Index
Call money Incyte INCY 70.58 1.22 MicroFocus MFGP 18.11 0.03 RELX RENX 22.24 -0.17 Tenaris TS 36.64 -0.41 ZTO Express ZTO 21.49 0.10
Switzerland 0.50 0.50 0.50 0.50 Treasury 1.762 25.400 2.068 1.008 s Infosys INFY 19.00 0.25 MicrochipTech MCHP 102.69 0.29 RELX RELX 22.82 -0.22 Teradyne TER 39.09 0.07 ZayoGroup ZAYO 36.52 -0.02
0.50 0.50 0.25 3.50 3.50 3.50 2.75 MBS 1.762 106.910 1.971 1.030 Ingersoll-Rand IR 92.43 -0.60 MicronTech MU 60.55 -0.84 RPM RPM 51.11 -0.06 Tesla TSLA342.77 10.67 ZebraTech ZBRA 160.94 2.16
Britain 0.50
Ingredion INGR 113.06 0.04 Microsoft MSFT 101.31 0.26 RSP Permian RSPP 42.56 1.29 TevaPharm TEVA 24.02 0.83 Zendesk ZEN 58.26 1.37
Australia 1.50 1.50 1.50 1.50 Commercial paper (AA financial) Open Implied Intel INTC 54.82 0.30 MidAmApt MAA 97.09 0.79 RalphLauren RL 142.90 0.87 TexasInstruments TXN 115.41 0.13 s Zillow C Z 64.34 1.69
Settle Change Interest Rate InteractiveBrkrs IBKR 72.06 0.96 Middleby MIDD 104.72 0.72 RandgoldRscs GOLD 78.71 0.11 Textron TXT 68.10 -0.80 s Zillow A ZG 64.21 1.86
Overnight repurchase 90 days 2.20 2.19 2.31 1.10 ICE ICE 75.44 0.11 MitsubishiUFJ MUFG 6.09 -0.10 RaymondJames RJF 99.56 -0.13 ThermoFisherSci TMO 217.95 0.61 ZimmerBiomet ZBH 114.15 -0.06
U.S. 1.73 1.79 2.18 1.01
DTCC GCF Repo Index Futures InterContinentl IHG 66.24 -0.59 MizuhoFin MFG 3.54 -0.01 Raytheon RTN 206.61 -5.95 ThomsonReuters TRI 40.77 -0.23 ZionsBancorp ZION 56.35 -0.22
Libor Treasury Jun 98.058 0.005 869 1.943
IBM IBM 146.87 0.29 MobileTeleSys MBT 9.51 0.03 RealtyIncome O 53.97 0.58 3M MMM 204.92 -0.20 Zoetis ZTS 87.15 0.09
U.S. government rates One month 2.05725 2.02454 2.05725 1.15889 Treasury Jly 97.960 0.010 581 2.040
Three month 2.33563 2.31919 2.36906 1.24556 Treasury Aug 97.960 unch. 1274 2.040
Discount Dividend Changes
2.25 2.25 2.25 1.50 Notes on data:
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, Dividend announcements from June 12.
Federal funds and is effective March 22, 2018. Other prime rates aren’t directly comparable; lending practices vary Amount Payable / Amount Payable /
Effective rate 1.7300 1.7300 1.7400 0.9300 widely by location; Discount rate is effective March 22, 2018. DTCC GCF Repo Index is Depository Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
High 1.9500 1.9500 1.9500 1.0625 Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the Increased Foreign
Low 1.6700 1.6700 1.7100 0.9000 DTCC GCF Repo Index are traded on NYSE Liffe US.
Bid 1.6800 1.6800 1.7200 0.9000 FedEx FDX 1.0 .65 /.50 Q Jul09 /Jun25 Dr Reddy’s Labs ADR RDY 1.0 .29661 /Jul16
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Offer 1.7100 1.7100 1.7400 0.9300 Tullett Prebon Information, Ltd.
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; 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 Stock
52-Wk %
Sym Hi/Lo Chg
Domino's DPZ 273.62 1.3 HMN Fin HMNF 19.75 2.3 MakeMyTrip MMYT 41.70 -2.2 Perma-PipeIntl PPIH 9.90 2.2 SimulationsPlus SLP 20.60 1.0 UrbanOutfitters URBN 48.10 1.9 Bladex BLX 25.31 1.5
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE Ducommun DCO 35.89 -0.5 HMS Holdings HMSY 22.73 0.6 MedallionFin MFIN 5.86 2.3 Pluralsight PS 29.00 -3.2 SiriusXM SIRI 7.35 0.7 ValeantPharm VRX 27.01 0.5 BaringtonHilcoRt BHACR 0.11 -8.3
American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low EXACT Sci EXAS 68.10 2.9 HUYA HUYA 37.61 -0.5 Medifast MED 158.67 3.2 PointsIntl PCOM 15.07 2.7 SiteOneLandscape SITE 89.21 2.2 VectoIQAcqnUn VTIQU 10.10 0.3 BlueCapReins BCRH 9.55 -4.4
in the latest session. % CHG-Daily percentage change from the previous trading session. EdwardsLife EW 149.17 1.5 HalyardHealth HYH 59.77 0.9 MerchantsBancorp MBIN 29.15 2.0 ProteonTherap PRTO 2.90 7.8 SixFlags SIX 72.12 1.2 VectoIQAcqnWt VTIQW 0.56 6.0 BrighthouseFin BHF 45.86 -1.5
EldoradoResorts ERI 46.45 5.9 HoustonWire HWCC 9.32 5.8 MerLynCapTr I MERpK 26.54 0.5 ProtoLabs PRLB 132.00 2.6 SonicAutomotive SAH 22.95 -0.2 VerintSystems VRNT 45.40 1.0 CalitheraBiosci CALA 4.70 -3.6
EloxxPharm ELOX 21.50 8.1 Huami HMI 15.09 -8.2 IndxPlus 03-1 IPB 29.00 1.8 PureStorage PSTG 25.29 1.4 SpiritRealtyCap SRC 8.07 1.6 VeriSign VRSN 140.01 1.5 CaseysGenStores CASY 90.42 0.3
Tuesday, June 12, 2018 EncompassHealth EHC 67.05 -0.4 Humana HUM 306.32 1.5 ModernMediaWt MMDMW 0.88 22.8 QAD B QADB 43.91 -2.6 Splunk SPLK 119.83 1.1 VeriskAnalytics VRSK 109.60 0.4 ConEd ED 71.12 1.5
52-Wk % 52-Wk % 52-Wk % Endocyte ECYT 15.45 3.3 ICU Medical ICUI 304.77 5.0 ModernMediaRt MMDMR 0.55 10.0 Q2Holdings QTWO 62.50 4.7 Spotify SPOT 175.93 -1.2 VikingTherap VKTX 11.34 -3.7 DixieGroup DXYN 2.30 -1.1
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg EnovaIntl ENVA 36.15 0.4 IdexxLab IDXX 223.88 0.6 MolinaHealthcare MOH 96.16 4.8 Qiagen QGEN 37.48 0.2 Square SQ 64.08 3.1 VikingTheraWt VKTXW 9.59 -4.1 ENDRA LifeSci NDRA 1.55 -5.3
Entegris ENTG 39.10 2.0 IEC Elec IEC 6.70 2.6 MongoDB MDB 57.35 4.4 Qualys QLYS 88.90 3.7 Stamps.com STMP 273.04 2.0 Virtusa VRTU 54.06 2.3 EchoStar SATS 45.55 -1.6
Baozun BZUN 67.41 3.0 Ceragon CRNT 4.09 8.1 EsquireFinancial ESQ 27.00 -1.5 IF Bancorp IROQ 22.49 5.4 MonolithicPower MPWR 140.20 1.7 Quidel QDEL 66.39 2.4 StarsGroup TSG 38.35 4.0 Vonage VG 12.05 4.1 EyegatePharmWt EYEGW 0.02 ...
Highs BaxterIntl
BayCom
BAX
BCML
75.62
25.99
0.2
2.5
Chegg
Cintas
CHGG
CTAS
29.55
192.77
0.4
0.9
EsteeLauder EL 157.64 1.3 Icon ICLR 135.35 -0.6 Morningstar MORN 131.22 1.0 RBB Bancorp RBB 32.74 2.2 Steris STE 107.62 -0.7 WD-40 WDFC 148.15 ... Ferroglobe
Globalstar
GSM
GSAT
9.89 -2.0
0.47 -5.7
AAR AIR 48.50 1.4 Everbridge EVBG 51.19 4.1 Illumina ILMN 292.45 2.8 MorphoSys MOR 28.44 1.2 RH RH 164.49 30.5 Strats Allst GJT GJT 21.79 0.3 WRBerkleyDeb58 WRBpE 25.10 0.4
Bio-Techne TECH 162.55 0.8 Cision CISN 16.78 1.8 ExpeditorsIntl EXPD 78.16 1.3 Immersion IMMR 17.20 0.3 NF EnergySaving NFEC 5.29 -0.6 Radware RDWR 24.35 1.4 SunCokeEnergy SXC 14.14 2.9 GoldStandrdVntr GSV 1.16 -10.6
Ansys ANSS 176.12 1.7 Wabtec WAB 104.21 0.2
Bio-RadLab A BIO 304.36 -0.1 CivistaBcshrs CIVB 25.71 -0.6 FidNatlInfo FIS 107.20 1.2 Infosys INFY 19.06 1.3 NVE NVEC 115.49 3.7 RedLionHotels RLH 12.00 1.3 SunRun RUN 13.97 6.7 iBio IBIO 1.19 -9.8
Abiomed ABMD 432.38 3.0 Wayfair W 109.74 4.0
BlackLine BL 47.78 6.6 CoffeeHolding JVA 5.65 3.2 FirstChoiceBncp FCBP 29.68 1.6 100.00 1.6 2.33 1.3 69.67 1.0 33.81 0.1 IntecPharma NTEC 4.33 ...
AdobeSystems ADBE 254.80 0.6 Insulet PODD NakedBrand NAKD RepublicSvcs RSG Syntel SYNT WeightWatchers WTW 93.92 5.6
BlueLinx BXC 46.42 -2.4 Cohbar CWBR 10.44 12.8 KeyCorpPfdE KEYpI 26.63 0.3
AdvanceAuto AAP 134.75 0.7 FirstData FDC 21.39 2.8 IntegraLifeSci IART 66.24 0.5 NatlStorage NSA 30.04 1.0 ResMed RMD 107.45 0.4 Systemax SYX 37.54 0.7 WellCareHealth WCG 240.70 0.9
BostonBeer SAM 274.70 3.7 CommVaultSystems CVLT 71.70 2.6 KingswayFin KFS 2.95 -7.4
AegonCapSec AEH AEH 26.37 0.2 FirstUnited FUNC 23.75 4.2 Intricon IIN 40.20 1.8 NavigatorsGroup NAVG 61.74 -2.2 RitchieBros RBA 36.00 -0.2 TAL Education TAL 47.63 -0.5 Wendy's WEN 18.01 0.3
BrightHorizons BFAM 108.40 0.6 Conduent CNDT 20.91 0.3 LSB Inds LXU 4.85 -10.0
AegonCapSec AED AED 26.60 0.4 FirsthandTechVal SVVC 14.59 3.1 IntuitiveSurgical ISRG 496.23 0.9 Neogen NEOG 79.00 0.8 RockyBrands RCKY 30.15 3.0 TJX TJX 95.91 0.4 Wiley B JW.B 69.87 1.6
BrinkerIntl EAT 49.51 1.7 ContinentalBldg CBPX 32.10 0.6 LeggMason LM 35.96 -3.0
Agilysys AGYS 14.75 1.7 Fitbit FIT 7.79 4.3 iQIYI IQ 35.95 ... NeoGenomics NEO 13.15 0.3 SAP SAP 120.79 0.1 TabulaRasaHlth TRHC 59.11 7.3 Wiley A JW.A 70.90 2.8
Brown&Brown BRO 28.64 -0.5 Cooper-Standard CPS 140.69 1.9 MabVaxTherap MBVX 0.85 -4.4
AgreeRealty ADC 54.13 0.9 FiveBelow FIVE 103.08 0.6 KMG Chem KMG 79.35 12.4 NetApp NTAP 76.68 0.8 S&P Global SPGI 208.81 ... TactileSystems TCMD 52.69 0.5 WolverineWwide WWW 36.10 1.3
Buckle BKE 28.80 1.2 CoreLogic CLGX 55.49 1.4 MeiraGTx MGTX 14.00 -2.9
AkamaiTech AKAM 80.70 1.7 Five9 FIVN 39.02 -0.4 KennedyWilson KW 21.05 0.7 Neurocrine NBIX 102.83 1.9 SB Financial SBFG 19.95 0.3 TandemDiabetes TNDM 17.81 8.4 XPO Logistics XPO 114.43 2.4 NCS Multistage NCSM 13.01 1.4
AlignTech ALGN 355.98 1.7 CAS MedSys CASM 1.88 3.9 CostamarePfdE CMREpE 25.56 0.6 Fortinet FTNT 64.15 1.4 KindredBiosci KIN 10.70 3.9 NewMediaInvt NEWM 18.19 0.4 SP Plus SP 42.75 -2.1 Target TGT 79.59 ... Xcerra XCRA 14.49 0.6 NaturalGasSvcs NGS 22.30 -1.1
Altaba AABA 82.20 1.2 CBIZ CBZ 21.75 1.2 CoStar CSGP 415.69 1.4 Fossil FOSL 29.29 1.5 Kohl's KSS 79.92 0.9 NorfolkSouthern NSC 158.58 0.1 SPS Commerce SPSC 77.85 0.8 Teladoc TDOC 58.15 3.7 XenonPharms XENE 8.30 15.9 NemauraMedical NMRD 2.56 -8.2
Alteryx AYX 41.47 0.5 CBRE Group CBRE 48.85 0.4 Costco COST 205.08 0.2 Freshpet FRPT 24.65 1.9 KrystalBiotech KRYS 14.96 -5.9 NorthernOil&Gas NOG 3.00 -1.4 SPX SPXC 37.78 1.1 TexasRoadhouse TXRH 65.17 2.1 Yext YEXT 18.86 1.0 NewGold NGD 2.09 -0.5
AngioDynamics ANGO 21.69 0.6 CBTX CBTX 33.45 1.0 CoupaSoftware COUP 62.50 3.0 GalmedPharm GLMD 27.06 151.3 LHC Group LHCG 80.46 0.4 Nutanix NTNX 61.45 7.6 Sabre SABR 26.34 0.9 Tiffany TIF 136.87 1.8 Zillow A ZG 64.82 3.0 OxbridgeReWt OXBRW 0.02 -24.5
Apptio APTI 35.31 3.3 CMSevenStarAcqn CMSS 9.90 0.1 CousinsProperties CUZ 9.88 0.6 GeneralFin GFN 11.40 -3.1 LadenburgThalPf LTSpA 25.90 1.1 Nuvectra NVTR 21.79 4.1 Saia SAIA 87.05 0.9 TopBuild BLD 87.21 1.6 Zillow C Z 65.03 2.7 ParkCity PCYG 6.90 -1.4
Aptiv APTV 102.46 0.1 CSX CSX 67.69 -0.8 CovenantTranspt CVTI 34.22 3.6 Gentex GNTX 25.38 0.6 Lands'End LE 31.15 27.2 ONEOK OKE 69.84 0.3 SailPointTechs SAIL 28.67 2.2 TradeDesk TTD 91.80 2.2 Zuora ZUO 33.08 -8.0 RegulusTherap RGLS 0.61 -1.5
AptoseBiosci APTO 4.39 -6.5 CAE CAE 21.50 0.9 CPI Aero CVU 11.75 0.9 GeoPark GPRK 19.32 4.6 LasVegasSands LVS 80.90 1.5 OldDomFreight ODFL 164.10 0.9 Salesforce.com CRM 137.50 1.7 TravelportWorldwd TVPT 18.75 0.9 RockyMtnChoc RMCF 10.76 -0.2
ArborRealty ABR
ArborRealtyPfdA ABRpA
9.90
26.23
1.3
1.6
CallawayGolf ELY
Camtek CAMT
20.29
8.74
0.3
0.5
Cree
Crocs
CREE
CROX
50.44
19.54
1.5
2.8
GigCapital
GladstoneInvt GAIN
GIG.U 10.58 0.7
11.84 -0.1
LeisureAcqnUn LACQU
LivaNova LIVN
10.03
103.40
0.1
3.5
OriginBancorp OBNK
OrionEngCarbons OEC
41.69
32.95
2.6
2.0
SandRidgeMS SDT
SandRidgeMS II SDR
2.05
1.84
8.5
2.2
TridentAcqns TDACU
TripAdvisor TRIP
10.14
58.80
0.3
2.1
Lows SITO Mobile SITO
SpiritofTexas STXB
2.68 -16.3
20.49 -0.8
ArcBest ARCB 50.45 -0.1 CanadaGoose GOOS 45.07 2.9 CyberArkSoftware CYBR 65.65 1.3 GlobalPayments GPN 119.35 1.4 LivePerson LPSN 22.85 1.3 PCConnection CNXN 32.00 -0.2 Sea SE 17.19 3.3 TurningPoint TPB 30.96 4.0 ALJ Regional ALJJ 1.49 -1.9 SuperCom SPCB 1.82 -1.6
AspenTech AZPN 98.89 1.1 CanPacRlwy CP 194.97 0.1 CypressEnergy CELP 8.50 10.3 GoodTimesRest GTIM 4.05 -5.0 LogitechIntl LOGI 45.08 0.5 PJT Partners PJT 57.95 -0.4 SeacoastBkgFL SBCF 32.69 2.9 Twilio TWLO 60.14 3.2 Agenus AGEN 2.81 -1.4 TransWorldEnt TWMC 0.80 -7.8
AtlasAir AAWW 75.29 ... Carbonite CARB 40.95 2.5 DeckersOutdoor DECK 122.21 -0.4 GooseheadIns GSHD 23.38 8.0 LonestarRscs LONE 8.18 5.7 PQ Group PQG 18.02 -1.4 SeaSpine SPNE 13.84 0.8 Twitter TWTR 44.33 5.0 AlioGold ALO 1.45 -2.0 VectoIQAcqn VTIQ 9.56 -0.2
AuburnNatlBncp AUBN 50.00 4.1 Carvana CVNA 39.48 5.9 DexCom DXCM 101.50 4.0 Grainger GWW 322.34 0.8 Luminex LMNX 30.33 0.7 PRA Group PRAA 41.20 -1.2 SeattleGenetics SGEN 69.71 3.7 USG USG 43.28 0.4 Argan AGX 36.20 -3.1 Veoneer VNEw 40.50 -3.6
ADP ADP 139.45 3.9 Centene CNC 123.78 1.5 Dillard's DDS 97.14 2.1 GreenDot GDOT 78.13 0.7 MRC Global MRC 21.43 0.1 PTC Therap PTCT 38.52 ... Senseonics SENS 4.02 4.5 UbiquitiNetworks UBNT 87.46 -0.6 AurynResources AUG 1.07 -1.8 WestpacBanking WBK 20.88 -1.7
BEST BSTI 13.54 -2.5 CentralGarden CENT 44.16 0.4 DocuSign DOCU 63.35 3.8 GreentreeHospital GHG 25.10 2.4 MSCI MSCI 169.82 2.0 PennVirginia PVAC 81.60 -0.1 SimpsonMfg SSD 67.32 0.3 UnitedMicro UMC 2.91 1.8 AvonProducts AVP 1.54 -1.9 ZK Intl ZKIN 5.70 -2.1
Mutual Funds Data provided by

Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret Fund
Net YTD
NAV Chg %Ret
ExtMktIdxPrem r67.41 +0.29 8.7 SrsIntlVal 10.55 -0.06 -1.3 CorePlusBd 8.03 ... -1.8 Income 11.97 ... -1.2 IntlEqIdxInst 20.26 -0.09 0.4 TotIntlAdmIdx r 30.46 -0.09 0.1 WellsI 26.28 -0.02 -1.9
Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. IntlIdxPrem r 43.26 -0.19 0.3 TotalBond 10.32 -0.01 -1.9 Lazard Instl PIMCO Funds Instl Tweedy Browne Fds TotStAdml 70.29 +0.16 5.8 Welltn 41.95 -0.04 0.4
SAIUSLgCpIndxFd15.02 +0.03 5.2 First Eagle Funds EmgMktEq 18.50 -0.02 -7.6 IncomeFd 11.97 ... -1.2 GblValue 29.11 -0.03 2.2 TxMIn r 14.43 -0.05 0.5 WndsrII 38.41 -0.06 1.5
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e TMktIdxF r 80.49 +0.18 5.8 Lord Abbett A VANGUARD ADMIRAL VANGUARD INDEX FDS
GlbA 59.60 -0.10 0.9 Price Funds ValAdml 41.77 -0.03 1.4
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, TMktIdxPrem ShtDurIncmA p 4.18 -0.01 ... BlChip
80.48 +0.18 5.8 FPA Funds 110.93 +0.40 15.2 500Adml 258.29 +0.45 5.1 WdsrllAdml 68.17 -0.12 1.6 500 258.24 +0.45 5.1
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r USBdIdxInstPrem11.20 ... -2.2 FPACres 35.12 -0.02 1.2 Lord Abbett F EqInc 33.53 -0.04 0.9 BalAdml 35.45 +0.04 2.6 WellsIAdml 63.67 -0.04 -1.9 ExtndIstPl 226.81 +1.00 8.8
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not ShtDurIncm 4.18
Fidelity Advisor I FrankTemp/Frank Adv ... 0.1 EqIndex 75.04 +0.13 5.0 CAITAdml 11.61 ... -0.2 WelltnAdml 72.46 -0.06 0.4 SmValAdml 59.93 +0.01 5.6
available due to incomplete price, performance or cost data. NE-Not released by Lipper; NwInsghtI 34.49 +0.13 10.0 IncomeAdv 2.31 ... 0.5 Metropolitan West Growth 70.47 +0.32 12.5 CapOpAdml r167.58 +0.54 9.1 WndsrAdml 81.19 -0.02 2.8 TotBd2 10.36 ... -2.2
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Fidelity Freedom TotRetBd 10.35 ... -1.9 HelSci EMAdmr 37.61 +0.05 -1.3 VANGUARD FDS TotIntl 18.21 -0.05 0.1
FrankTemp/Franklin A 77.08 +0.73 9.6
FF2020 16.44 +0.01 1.7 CA TF A p 7.29 ... -0.9 TotRetBdI 10.35 +0.01 -1.8 InstlCapG 42.41 +0.17 14.9 EqIncAdml 78.17 -0.08 0.8 DivdGro 27.32 ... 4.1 TotSt 70.25 +0.15 5.7
Tuesday, June 12, 2018 FF2025 14.36 +0.02 2.0 IncomeA p 2.33 ... 0.5 TRBdPlan 9.74 ... -1.8 IntlStk 18.86 -0.02 1.0 ExplrAdml 101.68 +0.67 15.0 INSTTRF2020 22.84 ... 1.4 VANGUARD INSTL FDS
FF2030 18.04 +0.02 2.5 RisDv A p 62.62 -0.09 2.6 MFS Funds Class I IntlValEq 14.82 -0.05 -2.0 ExtndAdml 91.91 +0.41 8.8 INSTTRF2025 23.26 ... 1.7 BalInst 35.46 +0.05 2.7
Net YTD Net YTD Net YTD Freedom2020 K 16.42 +0.01 ValueI
Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret
1.7 FrankTemp/Franklin C 40.10 -0.05 -1.3 MCapVal 31.76 +0.05 4.5 GNMAAdml 10.19 +0.01 -1.3 INSTTRF2030 23.61 +0.01 2.1 DevMktsIndInst 14.45 -0.05 0.5
Freedom2025 K 14.34 +0.02 2.0 Income C t 2.36 ... 0.2 MFS Funds Instl MidCap 94.41 +0.50 8.5 GrwthAdml 79.12 +0.38 9.6 INSTTRF2035 23.95 +0.01 2.5 DevMktsInxInst 22.58 -0.09 0.5
American Century Inv Baird Funds US CoreEq1 24.07 +0.04 5.9 Freedom2030 K 18.02 +0.02 IntlEq
2.6 FrankTemp/Temp A 25.75 -0.04 1.1 N Inc 9.16 -0.01 -2.2 HlthCareAdml r 86.86 +0.14 2.8 INSTTRF2040 24.29 +0.01 2.8 ExtndInst 91.90 +0.40 8.8
Ultra 49.31 +0.30 13.6 AggBdInst 10.51 ... -2.3 US CoreEq2 22.63 +0.02 5.1 Freedom2035 K 15.30 +0.02 3.2 17.5 HYCorAdml r 5.74 ... -0.7 GrwthInst 79.13 +0.38 9.6
Oakmark Funds Invest
GlBond A p 11.64 +0.02 -0.7 NHoriz 61.76 +0.98 INSTTRF2045 24.52 +0.01 3.0
American Funds Cl A CorBdInst 10.85 ... -2.2 US Small 38.71 +0.02 7.9 Freedom2040 K 10.76 +0.02 3.4 EqtyInc r 32.60 -0.03 1.3 InfProAd 25.26 -0.02 -1.0 InPrSeIn 10.29 -0.01 -1.0
Growth A p 27.38 -0.01 0.4 OverS SF r 11.48 -0.05 1.5 INSTTRF2050 24.54 +0.01 3.0
AmcpA p 34.66 +0.07 10.1 BlackRock Funds A US SmCpVal 40.95 -0.12 8.0 Fidelity Invest Oakmark 87.90 +0.02 4.2 IntlGrAdml 103.54 +0.04 8.3 InstIdx 254.93 +0.45 5.1
AMutlA p 41.40 -0.04 1.9 GlblAlloc p 19.73 -0.01 0.2 US TgdVal 26.56 -0.06 6.9
FrankTemp/Temp Adv R2020 22.94 +0.01 1.8 IntlVal 39.57 -0.11 -0.8
Balanc 24.75 +0.05 4.6 OakmrkInt 27.76 -0.01 -2.8 ITBondAdml 10.90 -0.01 -2.9 InstPlus 254.95 +0.45 5.1
BalA p 27.54 +0.02 1.8 BlackRock Funds Inst USLgVa 39.56 -0.05 1.6 GlBondAdv p 11.60 +0.02 -0.6 R2025 17.99 +0.01 2.3 LifeCon 20.01 ... 0.6
BluCh 101.09 +0.75 15.2 Old Westbury Fds ITIGradeAdml 9.37 -0.01 -2.5 InstTStPlus 62.49 +0.14 5.8
BondA p 12.50 ... -2.1 EqtyDivd 22.99 -0.08 1.4 Dodge & Cox Contra 135.00 +0.64 12.0
Harbor Funds
LrgCpStr 15.01 +0.02 3.8
R2030 26.64 +0.02 2.8
LTGradeAdml 9.72 ... -6.7 LifeGro 34.53 +0.01 2.6 MidCpInst 44.31 +0.23 5.0
CapIBA p 61.19 -0.07 -1.8 GlblAlloc 19.86 -0.01 0.3 Balanced 106.43 -0.01 1.1 ContraK 134.97 +0.64 12.0
CapApInst 79.88 +0.53 15.0 Oppenheimer Y R2035 19.57 +0.01 3.2 MidCpAdml 200.57 +1.02 5.1 LifeMod 27.57 ... 1.6 MidCpIstPl 218.52 +1.11 5.1
CapWGrA 52.66 -0.09 3.4 StratIncOpptyIns 9.79 ... -0.2 GblStock 13.70 -0.02 -1.2 CpInc r 10.17 +0.02 1.9 IntlInst r 68.12 -0.16 0.9 DevMktY 44.37 +0.07 3.3 R2040 28.20 +0.02 3.5 MorgAdml 101.68 +0.50 12.1 PrmcpCor 28.31 +0.03 5.2 SmCapInst 76.64 +0.33 8.6
EupacA p 57.30 -0.06 1.9 Bridge Builder Trust Income 13.42 ... -1.6 DivIntl 40.24 -0.06 0.5 Harding Loevner IntGrowY 44.57 -0.07 2.2 Value 37.42 -0.07 0.3 MuHYAdml 11.22 -0.01 -0.2 SelValu r 30.60 +0.03 -2.1 SmCapIstPl 221.21 +0.95 8.6
FdInvA p 64.64 +0.06 4.2 CoreBond 9.84 ... -2.0 Intl Stk 44.36 -0.11 -4.2 GroCo 206.83 +2.15 15.8 IntlEq NA ... NA Parnassus Fds PRIMECAP Odyssey Fds MuIntAdml 13.88 ... -0.5 STAR 27.53 +0.02 2.7 STIGradeInst 10.45 ... -0.5
GwthA p 54.77 +0.19 10.6 Del Invest Instl Stock 206.57 -0.01 3.0 GrowCoK 206.88 +2.15 15.8 Invesco Funds A ParnEqFd 44.54 +0.09 4.8 AggGrowth r 51.23 +0.35 15.6 MuLTAdml 11.40 ... -0.8 TgtRe2015 15.46 ... 0.8 TotBdInst 10.39 ... -2.2
HI TrA p 10.19 +0.01 0.9 Value 22.32 -0.04 4.4 DoubleLine Funds InvGB 7.67 ... -2.2 EqIncA 11.01 -0.02 0.8 PGIM Funds Cl Z Growth r 42.31 +0.27 13.6 MuLtdAdml 10.84 ... 0.4 TgtRe2020 31.81 ... 1.4 TotBdInst2 10.36 ... -2.2
ICAA p 41.60 -0.03 3.4 Dimensional Fds CoreFxdIncmI NA ... NA InvGrBd 10.90 ... -1.9 John Hancock Class 1 TotalReturnBond 14.01 ... -2.6 Stock r 33.27 +0.04 4.3 MuShtAdml 15.72 ... 0.7 TgtRe2025 18.81 ... 1.7 TotBdInstPl 10.39 ... -2.2
IncoA p 23.26 +0.01 0.2 5GlbFxdInc 10.85 ... -0.2 TotRetBdI 10.40 ... -0.7 LowP r 56.36 -0.06 3.4 LSGwth 16.56 +0.01 3.0 PIMCO Fds Instl Principal Investors PrmcpAdml r145.69 +0.18 9.0 TgtRe2030 34.33 ... 2.1 TotIntBdIdxInst 32.56 +0.01 0.4
N PerA p 46.31 +0.05 7.3 EmgMktVa 31.11 -0.03 -0.4 Edgewood Growth Instituti MagIn 108.24 +0.20 8.5 John Hancock Instl AllAsset 11.99 -0.01 -0.8 DivIntlInst 13.91 -0.06 0.1 RealEstatAdml114.14 +0.68 -2.0 TgtRe2035 21.19 ... 2.4 TotIntlInstIdx r121.82 -0.36 0.1
NEcoA p 50.04 +0.11 12.1 EmMktCorEq 22.73 ... -2.1 EdgewoodGrInst 34.21 +0.17 15.7 OTC 12.67 +0.10 15.3 DispValMCI 23.77 +0.01 2.0 ShortT 9.88 ... 1.0 Schwab Funds SmCapAdml 76.64 +0.33 8.6 TgtRe2040 36.78 +0.01 2.8 TotItlInstPlId r121.85 -0.35 0.1
NwWrldA 67.96 +0.11 1.6 IntlCoreEq 14.65 -0.07 0.8 Fidelity Puritn 24.44 +0.02 4.7 JPMorgan Funds TotRt 9.94 ... -2.1 S&P Sel 43.30 +0.07 5.1 STBondAdml 10.23 -0.01 -0.6 TgtRe2045 23.17 ... 3.0 TotStInst 70.30 +0.16 5.8
SmCpA p 60.33 +0.33 8.1 IntlVal 20.35 -0.15 -0.5 500IdxInst 97.72 +0.17 5.1 SrsEmrgMkt 21.06 +0.10 -1.6 MdCpVal L 41.03 +0.18 1.9 PIMCO Funds A TIAA/CREF Funds STIGradeAdml 10.45 ... -0.6 TgtRe2050 37.29 +0.01 3.0 ValueInst 41.77 -0.03 1.4
TxExA p 12.80 -0.01 -0.6 IntSmCo 21.63 -0.06 1.7 500IdxInstPrem 97.72 +0.17 5.1 SrsGroCoRetail 19.34 +0.21 16.3 JPMorgan R Class IncomeFd 11.97 ... -1.3 BdIdxInst 10.46 ... -2.2 TotBdAdml 10.39 ... -2.2 TgtRetInc 13.56 ... 0.4 Western Asset
WshA p 47.23 +0.01 3.9 IntSmVa 22.64 -0.12 -1.4 500IdxPrem 97.72 +0.17 5.1 SrsIntlGrw 16.56 ... 2.5 CoreBond 11.24 -0.01 -1.9 PIMCO Funds I2 EqIdxInst 20.78 +0.05 5.8 TotIntBdIdxAdm 21.70 ... 0.4 TotIntBdIxInv 10.85 ... 0.4 CorePlusBdI 11.30 -0.01 -3.2
BANKING & FINANCE
At Platform Launch, Discord on Agenda

Block.one pulls in $4 Block.one couldn’t be affiliation, when possible. Investors pumped some $4 communities that operate in ception more,” asked one par-
reached for comment. The tense call in some ways billion into EOS in a sale of groups. ticipant, Aaron, “a ~0.002% in-
billion for EOS project Since the Friday call, EOS’s wasn’t unusual. There have digital tokens that ended this The biggest disagreement crease in initial supply vs an
but developers bicker tokens have fallen roughly been far more caustic fights month. In a promotional video Friday involved the platform’s indeterminate delay in the
20%, cutting $4 billion off its among bitcoin’s proponents for its initial coin offering, need for RAM, or random ac- launch of EOS?”
over range of details market value, currently at over the years. But EOS’s Dan Larimer, Block.one’s chief cess memory. The way EOS Without resolving that de-
about $10 billion. messy launch shows just how technology officer, called EOS works, all the resources a debate, the group moved on to
BY PAUL VIGNA The platform technically difficult it is to build a plat- a “blockchain technology that veloper needs to run it are voting over whether to launch
launched on Saturday after the form for millions of users can support real-world use purchased with EOS tokens, the software at all. At times,
Software company volunteers smoothed over when you take its develop- cases serving millions of us- including the RAM needed to participants were confused
Block.one raised $4 billion for their differences during a sec- ment out of the hands of a ers.” boot up the program. The about what topic they were
its EOS project from investors ond meeting Friday, broadcast guiding leader. platform’s first user, who voting on, and where. Some
on the promise that the block- publicly on YouTube. The plat- EOS is a network that al- would be randomly chosen users were voting within a
chain platform could change form isn’t yet available for lows developers to build and from among the group, would module inside Zoom, the vid-
the way the internet works. public use. host applications. It is similar
Some developers need to make an in-network eoconferencing service hosting
But infighting among the soft- Participants wrangled over to Google’s Android, but be- threatened to launch purchase of RAM before the the call, while others were
ware’s fragmented developers issues big and small, from cause it is based on the con- network was operational. casting votes on messaging
shows it still has a way to go philosophical questions to cepts behind blockchain, a
competing versions Some participants sug- site Telegram.
before the platform lives up to technical arcana. software protocol designed to of the software. gested taking advantage of a “For crying out loud we
the hype. At one point, some threat- run on a network of linked small window dubbed “god wasted more time talking
More than 200 volunteer ened to break off and launch computers, there is no central mode” to create new tokens about how to vote than vot-
developers working to launch competing versions of the authority. that could be used to “gift” ing,” said a participant named
EOS spent a fraught three software. EOS isn’t alone in this Much of the trouble stems the RAM to the first user. Oth- David, according to the call
hours on a conference call Fri- “We’ve spent too long ca- quest. Messaging app Tele- from Block.one’s hands-off ap- ers worried that creating transcript.
day arguing about issues re- tering to consensus. Those gram, another digital-token proach to development of the these new tokens—an esti- At the second meeting on
lated to the platform’s launch. who are ready should go,” said project called Tezos, and even platform. While the company mated 19,000, valued at about Friday, the group spent about
A transcript of the call was Greg from a developer group the second-largest cryptocur- designed and released the $260,000—would look like an hour debating before vot-
posted on the social-media called EOSsxsw, according to rency project, Ethereum, are software, it has said that it these insiders were essentially ing unanimously to launch the
site Reddit, and two partici- the call transcript. Partici- all striving to build what has won’t control it. Instead, de- printing money for them- network, agreeing to issue the
pants confirmed its validity to pants generally were identi- been called a “world com- velopment has been left to selves. extra tokens needed for the
The Wall Street Journal. fied by first name and group puter.” dozens of individuals and “What damages public per- initial user’s RAM.
Beijing War on Debt Doesn’t Move Default Rate Merrill

BY SHEN HONG Settles
SHANGHAI—Beijing’s de-
termination to tame China’s
soaring debt levels has won
Bond Case
plaudits from bullish observ-
ers who believe the govern-
ment is finally tackling its key
With SEC
economic problem. BY DAVE MICHAELS
Why, then, has there been
so little stress in the country’s WASHINGTON—Bank of
bond market? America Merrill Lynch will pay
Defaults on Chinese bonds $15.7 million to settle claims
might appear to have risen that its traders lied about how
sharply this year, in volume much they paid to acquire
terms. A total of 13 issuers mortgage bonds, allowing the
have defaulted on a combined bank to charge a higher price
20.2 billion yuan ($3.1 billion) to clients buying securities.
worth of corporate bonds in The sanction includes $10.5
China’s domestic market in million that must be returned
2018, up 41% from the same to customers and a $5.2 mil-
period last year, when 11 issu- lion civil penalty, the Securi-
ers had defaulted. ties and Exchange Commission
Yet default levels remain said Tuesday. In some cases,
trivial at just 0.08% of the to- the SEC said, Merrill’s traders
tal $4 trillion of corporate also failed to disclose that
bonds outstanding in China. their markups “bore no rea-
LI HE/XINHUA/ZUMA PRESS
Absent a major financial cri- sonable relationship to the

sis, the corporate-debt default prevailing market prices.”
rate is typically around 2% The bank neither admitted
globally, according to Ivan nor denied the SEC’s claims.
Chung, a Hong Kong-based The settlement is the latest
analyst at Moody’s Investors example of the government’s
Service. battle with Wall Street over
The low default rate has Downtown Beijing. In an effort to cut debt levels, China has raised key short-term interest rates several times in the past year. brokers accused of lying about
participants in China’s bond the prices they paid to obtain
market, now more open than employers, Mr. Zhu said. the country’s generous credit- curred domestically this year bonds. A U.S. appeals court
ever before to foreign inves- Paying Up The authorities have also rating system, are now 3.67 have in part resulted from last month tossed out the con-
tors, wondering when the pain Difference between the yield stepped in with more sweep- percentage points above those Beijing’s efforts to clamp viction of former Jefferies
from Beijing’s war on debt of five-year corporate* and ing action when there are on corresponding Chinese down on shadow banking. Group LLC trader Jesse Litvak,
will hit—and just how com- government debt in China broader signs of market government bonds, the widest Many companies in China, who was accused of cheating
mitted the government is to stress, as in January when gap in two years. The gap, particularly in the private sec- customers out of $2 million by
tackling the problem. 4.0 percentage points Chinese government-bond known as the credit spread, tor, have long had limited ac- inflating prices he said he paid
In an effort to lower debt prices fell to a three-year low. measures the extra return cess to traditional bank loans, for residential mortgage-
levels, Beijing has raised key 3.5 The central bank cut the that investors demand for in- with major banks preferring backed bonds.
short-term interest rates sev- amount of cash it requires vesting in risky corporate to lend to state-owned compa- Mr. Litvak’s long-running
eral times in the past year to banks to hold with it in re- bonds versus buying relatively nies. Instead they have relied criminal case became a symbol
push up borrowing costs. It 3.0 serve, unleashing around 450 safe government debt. on obtaining loans from out- of a government crackdown on
has also cracked down on billion yuan of liquidity into Part of the reason this side the formal banking sys- Wall Street practices and led
shadow banking as well as on 2.5 the market. year’s defaults have grabbed tem. to changes at many dealers,
various forms of short-term Market participants expect more attention is that some of The volume of trust loans, from mandatory training to
debt issued between banks to the central bank to ease finan- the issuers—from a shoe and a key form of shadow banking heightened surveillance of
deter speculative, leveraged 2.0 cial conditions further later garment maker to a new en- in China, shrank year over traders. But the Justice De-
bets that have amplified risk 2016 ’17 ’18 this year, if China’s pace of ergy equipment manufac- year in March and April, the partment found it difficult to
in the bond and stock mar- *AA-minus rated economic growth slows and turer—were listed companies. first such falls since Novem- convince juries that lying by
kets. Source: Wind Info bond defaults pick up. How- In previous years, nearly all the ber 2015. bond dealers was a crime. Mr.
China’s total debt could THE WALL STREET JOURNAL. ever, if the authorities yield to firms that failed to repay bond It isn’t just in China’s do- Litvak’s attorneys compared
reach nearly 250% of its gross pressure on the bond market investors were privately held. mestic bond market where jit- his techniques with those of
domestic product by the end hai-based economist at J.P. and bail out failing companies, Among the 13 issuers that ters are increasing. In late used-car salesmen, whose ten-
of this year, according to S&P Morgan Asset Management. “they could end up concealing have defaulted this year, four May, China Energy Reserve & dency to bluff is well recog-
Global Ratings, up from 170% “The government is focused the risk again and kicking the are listed companies, com- Chemicals Group, a Beijing- nized by customers.
in 2012. Corporate debt ac- on maintaining stability, fi- can down the road,” Mr. Zhu pared with just one out of 11 based conglomerate, failed to On the same day that Mr.
counts for just under half the nancially and socially.” said. in the same period last year. repay investors the principal Litvak prevailed, a federal jury
total. In the past, Beijing has of- There have been some indi- Still, “the total amount [of amount of a $350 million in Connecticut acquitted David
“The reason why the bond ten leaned on banks and local cations of heightened market defaults] involved remains bond, the first default on dol- Demos, a former managing di-
default rate remains quite low governments to extend a life- nerves. Yields on five-year very small and I don’t think lar-denominated Chinese cor- rector at Cantor Fitzgerald &
in China is still because of line to struggling state-owned corporate bonds with a rating there’s panic in the market,” porate bonds this year. Co. Mr. Demos also had been
government intervention,” enterprises, and even private of AA-minus, the equivalent of said Moody’s Mr. Chung. —Manju Dalal accused of overstating prices
said Zhu Chaoping, a Shang- companies if they are large junk bonds in China, thanks to The defaults that have oc- contributed to this article. he paid to coax clients to pay
him more.
In the civil case that the
Foreign on several billions of dollars in

each other’s goods this year.
The White House has said it
Rising Tide
use their global entities and
they don’t want too many
firms coming in,” said an ad-
SEC settled Tuesday, the regu-
lator accused Merrill’s traders
of similar conduct, sometimes
Banks Hit
Revenue earned by global and Chinese investment banks
would move forward with ad- from Asian clients, excluding Japan and Australia viser to the securities regula- inflating or deflating what
ditional tariffs on $50 billion tor. Even if firms tick all they paid by significant
of Chinese products shortly af- $12 billion boxes, the adviser suggested amounts.
Great Wall ter June 15, and Beijing has

vowed to retaliate in kind.
In attempts to defuse the
10
that U.S. ones may be at a dis-
advantage, since ownership
approval is “a political deci-
In one example cited by the
SEC, a Merrill trader allegedly
misled a bond seller about
tensions with Washington, 8 sion up in the air with the on- how much another bank client
Continued from page B1 President Xi Jinping and other going trade war.” was willing to pay for the
kind of as collateral damage,” Chinese leaders and senior of- Even with ownership, op- bond.
6
he said. ficials have over the past nine portunities may be limited for The maneuver allowed Mer-
The asset requirement adds months discussed easing ac- foreign firms. China’s capital rill to get the bond for a lower
to skepticism among foreign cess to the financial sector. 4 markets are still developing, price from the seller and im-
Other
businesses and Western gov- Brokerages, banks and driven by individual investors, mediately unload about $15
ernments, which say China’s credit-rating services are 2 Chinese banks offering less upside for Wall million of it at a profit of
government frequently offers among the areas Beijing has Street banks that cater to in- $386,042, the SEC said.
wider access to foreign firms offered to liberalize. Chinese stitutional investors. Margins The SEC also said Merrill
0
only to undo the promises regulators issued draft rules for investment banking are Lynch failed to supervise the
with burdensome rules or last week that, if adopted, 2006 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18* thinning globally, including in accused traders because the
other barriers. would scrap a 20% ceiling for *Data for 2018 are as of Tuesday. China. Chinese domestic firms bank’s policies weren’t reason-
Those complaints have in a foreigner holding a domestic Source: Dealogic THE WALL STREET JOURNAL. have also built a stronghold on ably designed to prevent or
part fueled the Trump admin- bank. investment banking and sales detect the wrongdoing. The al-
istration’s criticism that Bei- Global credit-ratings firms Trump and Mr. Xi a year ago. set-value requirement on own- and trading, with key relation- legations covered a period
jing unfairly skews business are still waiting after Chinese So far, none of the three major ership is also higher than that ships with state-owned firms. from 2009 to 2012.
rules to favor its companies, officials promised immediate credit raters—S&P Global Inc., in domestic insurance and “This is like closing the barn A spokesman for the bank
contributing to the U.S.’s $375 market access as part of a Moody’s Investors Service and commercial banking, according door after the animals have all said Merrill has improved its
billion trade deficit with quick “100-day” market-open- Fitch Ratings—have received to Mr. Parker, with the U.S.- left,” said Ker Gibbs, chairman procedures since that time and
China. Washington and Beijing ing package made after a sum- licenses to operate in China. China Business Council. of the American Chamber of addressed the problems raised
have already increased tariffs mit between President Donald For securities firms, the as- “They want foreigners to Commerce in Shanghai. by regulators.
MARKETS
Treasurys
Steady
After CPI,
Summit
BY AKANE OTANI
U.S. Treasurys stalled

Tuesday after a historic sum-
mit between North Korea and
the U.S. and data on con-
sumer prices failed to drive
swings in the bond market.
The yield on the bench-
SEONGJOON CHO/BLOOMBERG NEWS

mark 10-year U.S. Treasury
note settled at 2.959%, un-
changed from Monday.
Yields, which rise as bond
prices fall, initially climbed
after North Korea’s Kim Jong
Un and President Donald
Trump signed
CREDIT an agreement
MARKETS saying North South Korea’s Han River. Busan Industrial’s shares started surging a day before North Korean leader Kim Jong Un visited the South.
South Korean Stocks Get a Lift

Korea would
pursue “com-
plete denuclearization of the
Korean Peninsula”—although
the two leaders provided few
details for how that would
proceed. Shares of tiny turer, which sports a market Its shares started surging on other construction-related day, after the Singapore sum-
Bond yields then gradually cap of just $174 million, ac- April 26, a day before Kim stocks have taken off since the mit between President Donald
drifted back to the flatline manufacturer Busan cording to FactSet, has soared Jong Un became the first inter-Korean summit in late Trump and Mr. Kim, Busan In-
over the rest of the trading Industrial surge 498% by 498% this year. The overall North Korean leader to set April. dustrial shares dropped 10%.
session as investors largely index has risen 0.05%. foot in the South since the Ko- Busan Industrial’s rally The shares of many of its
shrugged off the Labor De- on year, tops on Kospi Busan is one of many infra- rean War. Two weeks later, puts it ahead of the biggest peers also fell. The Kospi in-
partment’s latest release on structure stocks that Korean the stock had quadrupled in year-to-date gainers in other dex slipped 0.1% Tuesday.
consumer prices. BY SAUMYA VAISHAMPAYAN investors, mostly retail, have value. By June 1, at its peak, major indexes through Tues- Mr. Choi from CLSA said
The consumer-price index, AND STEVEN RUSSOLILLO embraced as they search for the stock was up nearly 700% day. Sunny Optical Technol- the recent rally prompted him
which measures what Ameri- companies that will benefit for the year. ogy Group Co. shares rose to cut his ratings on some of
cans pay for everything from Whoever says investors from the potential opening up Its rally since April 26 73% this year, making it the the infrastructure companies
used cars to newspapers, rose aren’t excited about the pros- of North Korea, said Paul alone exceeds the stock’s gain best 2018 performer in Hong he covers. That includes
a seasonally adjusted 0.2% in pect of thawing relations be- Choi, head of research for Ko- during the prior 10 years, ac- Kong’s Hang Seng Index. The Hyundai Engineering & Con-
May from the previous month tween North Korea and the rea at brokerage CLSA. cording to FactSet data. biggest winner in Taiwan’s struction Co., which is up
and 2.8% year over year—in world hasn’t been looking at Other big year-to-date win- A representative for Busan Taiex this year is Walsin 92% this year.
line with the expectations of South Korean construction ners in South Korea’s stock Industrial wasn’t available for Technology Corp., which has “After all, nothing has been
a group of economists sur- stocks. market include Hyundai Ce- comment. surged 288%. Further away, decided” on North Korea, he
veyed by The Wall Street A small company called ment Co., which makes con- South Korean President medical-device company said. “Even if we think of a
Journal. Investors had been Busan Industrial Co. has be- struction materials and has Moon Jae-in has been pushing Abiomed Inc. shares have pretty bullish scenario, we
closely watching for signs come the best performer in rallied 383%. Shares of Namk- plans to connect the North gained the most in the S&P think a lot of it is already
that inflation, a threat to South Korea’s benchmark Ko- wang Engineering & Con- and South Korean economies, 500, up 123% this year. priced into the [infrastruc-
government bonds because it spi index this year—and one struction Co. have risen 297%. including opening air, road Investors bidding up shares ture] related stocks,” he
chips away at the value of of the biggest gainers in all of They all fell on Tuesday. and rail links that would re- of South Korean construction added.
their fixed payments, is accel- Asia. The South Korean con- Busan Industrial’s recent quire major construction ef- companies may have gotten —Yun-hwan Chae
erating, struction-materials manufac- rally stands out from the rest. forts. Like Busan Industrial, ahead of themselves. On Tues- contributed to this article.
“Over the medium term, it
seems clear that inflationary
Steady Demand Gives Boost to U.S. Crude

pressures are rising but that
the rise remains gradual
rather than abrupt,” wrote
Eric Winograd, senior econo-
mist at AB, in an email. The BY CHRISTOPHER ALESSI
latest CPI print should nei- AND BENJAMIN PARKIN Roller Coaster
ther sway the Federal Re- U.S. crude-oil price Tuesday
serve, which will wrap up a Oil prices rose in the U.S.
two-day policy meeting after a monthly report from $66.60 a barrel
Wednesday, nor change inves- OPEC showed solid demand
tors’ views on the path of in- alongside higher output.
flation, Mr. Winograd added. The Organization of the Pe- 66.40
troleum Exporting Countries
said on Tuesday that it
AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions. pumped 35,000 extra barrels a
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
day in May 66.20
between that price and the face value. COMMODITIES from a
FOUR-WEEK BILLS month ear-
Applications $117,621,275,500 lier, to av-
AHMED JADALLAH/REUTERS
Accepted bids $35,000,150,500

erage 31.87 million barrels a 66.00
" noncompetitively $808,894,200 $66.36
" foreign noncompetitively $100,000,000 day. Higher output was driven
Auction price (rate) 99.860778
(1.790%) by the group’s de facto leader, s0.4%
Coupon equivalent 1.817% Saudi Arabia, which pumped
Bids at clearing yield accepted 24.75% 65.80
Cusip number 912796PQ6 85,500 more barrels a day, but
The bills, dated June 14, 2018, mature on July 12, 2018. partly offset by production 9 10 11 noon 1 2
29-YEAR, 11-MONTH BONDS outages in Nigeria, Venezuela Source:CQG
Applications $33,318,151,000 and Libya. Higher OPEC oil output in May was driven by Saudi Arabia, which pumped 85,500 more barrels a day. THE WALL STREET JOURNAL.
Accepted bids $14,000,008,100
" noncompetitively $7,069,000
However, OPEC kept its
" foreign noncompetitively $0 world oil-demand forecasts non-OPEC supply for this year duction caps at a meeting next have risen too much, leading Wednesday of the Interna-
Auction price (rate) 100.481809 largely unchanged at a growth by 130,000 barrels a day, to week, after more than a year to weakening demand and a tional Energy Agency’s
(3.100%)
Interest rate 3.125% rate of 1.65 million barrels a 59.75 million barrels a day, of holding back output by slowdown in the global econ- monthly oil-market report, as
Bids at clearing yield accepted 81.29% day, meaning demand should largely as a result of burgeon- roughly 1.8 million barrels a omy,” according to Ehsan Kho- well as data on U.S. petroleum
Cusip number 912810SC3
The bonds, dated June 15, 2018, mature on May 15,
stand at 98.85 million barrels ing U.S. shale-oil production. day. man, head of research for the inventories from the Energy
2048. a day this year. The group predicts total U.S. The coordinated production Middle East at MUFG Bank Information Administration
“The overall supply and de- crude output will rise in 2018 cuts, set to expire at the end Ltd. for the week ended June 8.
mand fundamentals look by more than double the rate of this year, helped boost Traders also pointed to The American Petroleum
last year, to average a record prices by more than 40%. But Institute, an industry group,
Dollar Gains pretty good globally,” said
Kyle Cooper, a consultant for
ION Energy. “Global produc-
10.51 million barrels a day.
Mr. Cooper said prices had
geopolitical risks to supply in
Iran and Venezuela, two OPEC
seeming progress at talks be-
tween U.S. and North Korean
leaders as a positive signal for
said late Tuesday that its own
data showed crude-oil invento-
As Rate Rise tion is not soaring, even as
U.S. production never ceases
fallen far enough from three-
year highs reached in May to
members, prompted the Sau-
dis and Russians to reconsider
the global economy and, by
extension, crude demand.
ries rose by 833,000 barrels,
according to a market partici-
Is Expected to astound and amaze.”

Oil for July delivery ad-
vanced 0.4%, to $66.36 a bar-
satisfy traders who had bet on
lower prices. That in turn cre-
ated room for a bounce as
the output curbs in recent
weeks.
“The geopolitical risks
President Donald Trump
and North Korean leader Kim
Jong Un pledged to work to-
pant, with gasoline stocks ris-
ing by 2.3 million barrels and
distillate inventories by 2.1
BY IRA IOSEBASHVILI rel, on the New York Mercan- some of them cashed in, he which remained front and cen- ward the denuclearization of million barrels.
tile Exchange. Brent crude, the said. ter for most of May have now the Korean Peninsula and to Gasoline futures for July
The dollar rose as investors global benchmark, fell 0.8%, to Enthusiasm over oil’s rally been superseded by a policy begin negotiations at the earli- delivery fell 0.7%, to $2.0899 a
awaited the conclusion $75.88 a barrel, on ICE Futures has waned in recent weeks as shift by OPEC+, wherein they est possible date. gallon, while July diesel rose
Wednesday of the Federal Re- Europe. traders speculate that OPEC are deliberating to revive out- The oil market is also look- less than 0.1%, to $2.1618 a
serve’s two-day monetary pol- OPEC raised its forecast for and its allies may raise pro- put on concerns that prices ing ahead to the release gallon.
icy meeting.
The WSJ Dollar Index,
which measures the U.S. cur-
rency against a basket of 16
others, rose 0.3% to 87.27.
Markets so on the back of the eurozone
economy growing at its fastest
rate in a decade the previous
The other backdrop: Growth
isn’t as robust as it was in
January. After booming in
Investors know full well
that the ECB taper is coming,
said John Taylor, a portfolio
is a big disconnect,” said Mr.
Taylor. He thinks Germany’s
10-year yield will rise toward
Most market participants
expect the Fed to raise rates
Wednesday. Investors also will
Take ECB year.
This time around, the back-
drop is less salubrious. In It-
2017, the eurozone’s economy
has slowed this year. A related
worry is an escalating trade
manager at AllianceBernstein.
But, he said, “people are not
willing to start selling almost
1% by the end of the year.
At around 0.5%, Germany’s
10-year-bond yield is still by
be trying to determine
whether the central bank plans In Stride aly, the eurozone’s third-larg-
est economy, concerns that a
until the ECB has spent their
last penny.”
far the lowest among the
Group of 10 industrialized
0.5%
to accelerate the pace of its new antiestablishment govern- That has meant the spread countries apart from Japan,
rate increases this year. Expec- ment in Rome could crash the in interest rates between Trea- where the central bank is pin-
tations of higher rates tend to Continued from page B1 country out of the eurozone surys and German government ning yields at around 0%. That
make the dollar more attrac- would scale back its bond-buy- have convulsed local bond bonds, considered the bench- compares with nearly 3% in
tive to yield-seeking investors. ing program further. The ECB markets in recent weeks in a The current yield on Germany’s mark in the eurozone, has the U.S., 1.4% in the U.K. and
Robust consumer-price data is currently set to buy €30 bil- way reminiscent of the re- 10-year-bond stayed historically wide, re- 2.3% in Canada.
reported Tuesday argues for lion ($35 billion) of govern- gion’s sovereign-debt crisis. flecting the ECB’s still-easy That German yields haven’t
the Fed to signal an increasing ment and corporate debt a The Euro Stoxx 50 Volatility money policies and the Fed’s already moved higher is testa-
risk of two more rate increases month at least until the end of Index, Europe’s “fear gauge,” tightening policy. ment to the sway that the
this year, analysts at Common- September. rose to a two-month high in war with the U.S. after Wash- Some are predicting that as ECB’s buying still holds over
wealth Foreign Exchange There are uncertainties late May, according to Thom- ington placed tariffs on Euro- the ECB tapers, that spread markets.
wrote in a note to clients. about whether it keeps the son Reuters, while the cost of pean steel and aluminum and will shrink, as will the end of “It’s somewhat psychologi-
“Such a scenario would program open-ended while contracts that protect against the European Union promised the decadelong bull run in cal,” said Stefan Isaacs, a port-
likely keep the dollar broadly cutting back monthly pur- swings in the euro also surged. retaliatory measures. German government bonds, folio manager at M&G Invest-
supported,” the note said. chases or announces a hard Italian bonds rallied this Investors have remained known as bunds, one of the ments, who is also betting
In emerging markets, the end date for purchases alto- week after the country’s new sanguine about the ECB’s biggest overall beneficiaries of against German bonds. “Any-
dollar was up 1.6% against the gether. finance minister told local me- plans, with many unwilling to the ECB’s buying. one who has [bet against]
Turkish lira and up 1.2% When the ECB last cut its dia the government is commit- make big bets that the with- “If you look at where bund bunds for a significant period
against the South African rand bond buying in January to €30 ted to staying in the euro. But drawal of stimulus will lead to yields are trading versus any- of time in the last 10 years has
in late New York trading. billion from €60 billion, it did yields remain elevated. much higher bond yields. thing else in the globe, there lost money.”
B16 | Wednesday, June 13, 2018 * *** THE WALL STREET JOURNAL.
MARKETS
U.S. Stocks Move Past North Korea Talks
BY MICHAEL WURSTHORN Shares of some defense companies declined following the 0.8% concrete follow-up,” said Larry
AND RIVA GOLD Hatheway, chief economist and
summit between the U.S. and North Korea. After-hours head of investment solutions
Stocks showed little reac- trading action picked up for media stocks after at GAM Holding.
tion to a landmark summit be- Nasdaq Composite Fewer than 5% of fund man-
tween President Donald Trump a federal judge allowed AT&T's acquisition of 0.6 agers surveyed by Bank of
and North Korean leader Kim Time Warner to proceed. America Merrill Lynch in June
Jong Un Tuesday, but inves- viewed North Korea as the big-
tors traded sharply after hours gest tail risk for markets, far
on a federal judge’s go-ahead 0.4 behind a trade war or a hawk-
for AT&T Inc.’s planned acqui- ish policy error from the Fed
sition of Time Warner Inc. S&P 500 or ECB.
Just after the Dow Jones On Tuesday, investors stuck
Industrial Average closed to a strategy that has worked
down 1.58 points, or less than 0.2 throughout much of the rally
0.1%, at 25320.73, U.S. District over the last decade: buying
Judge Richard Leon an- shares of technology compa-
nounced his decision, rejecting nies. Tech firms in the S&P
the Justice Department’s alle- 0 500 gained 0.6%, as shares of
gations that the deal would Twitter jumped $2.07, or 5%,
suppress competition in the to $43.49 after a JPMorgan
pay-TV industry. The ruling Dow industrials Chase analyst raised the so-
caused shares of several big cial-media stock’s price target.
media companies to swing, Monday Tuesday –0.2 Defense stocks struggled af-
with investors expecting far- ter Mr. Trump said he would
reaching impacts on deal-mak- halt joint military exercises
ing activity that could reshape South Korea’s Kospi Composite Japan’s Nikkei Stock Average Hong Kong’s Hang Seng with South Korea as long as
the industry landscape. 2480 23000 31300 talks remain productive with
AT&T shares fell 1.8% in af- North Korea. Shares of Lock-
ter-hours trading as of 5 p.m. 2475 heed Martin and Northrop
22900 31200
ET, while Time Warner added 2470 Grumman fell more than 1%.
nearly 5%. Comcast, which has 2465 22800 31100 Yields on 10-year U.S. Trea-
been planning a bid to buy the surys settled at 2.959%, little
bulk of 21st Century Fox’s as- 2460 changed from a day earlier.
22700 31000
sets that could disrupt Walt 2455 The Fed began its two-day
Disney’s roughly $52 billion policy meeting in Washington
2450 22600 30900
deal, declined 2.9%. Any offer on Tuesday, and investors
from Comcast could raise simi- Sun. Mon. Tues. Sun. Mon. Tues. Sun. Mon. Tues. largely expect officials to raise
lar concerns with the Justice the benchmark short-term in-
Yield on the 10-year Treasury note Share-price performance Change in after-hours trading*
Department. Disney shares slid terest rate by another quarter
1.4% and Fox rose 4.3%. Fox 2.98% 0% percentage point at its conclu-
and Wall Street Journal parent Time Warner 4.9% sion. On Thursday, the ECB
News Corp share common 2.97 –1 Lockheed Martin will announce its own policy
Fox 4.3
ownership. decision, which could include
The ruling came after a day 2.96 –2 Northrop Grumman DISH 2.1 details on how it plans to
in which several analysts said wind down its bond-buying
investors were reluctant to 2.95 –3 –1.4 Walt Disney program.
make major moves before Raytheon Elsewhere, the Stoxx Eu-
other big decisions: announce-
–1.8 AT&T
rope 600 declined 0.1% after
2.94 –4
ments from the Federal Re- Sun. Mon. Tues. 10 11 noon 1 2 3 4 –2.9 Comcast *As of 5 p.m. giving up earlier gains to
serve and European Central match the muted index move-
Bank this week that could Source: FactSet THE WALL STREET JOURNAL. ments in other stock-market
shape the next leg of the regions.
global economic recovery that sory firm that oversees $4.2 while the Nasdaq Composite and North Korean leader Kim generally were difficult to Early Wednesday, shares of
began in the wake of the fi- billion. “I’m keeping an eye on gained 43.87 points, or 0.6%, Jong Un in Singapore that price. South Korean companies,
nancial crisis 10 years earlier. inflation and interest rates to 7703.79 to close at a new ended with a vague commit- “It may be an interesting which generate roughly half
“Investors don’t like sur- that are relative to that. Sur- record. ment to denuclearize the Ko- historic moment, but it’s only their revenue abroad, were
prises,” said David Campbell, a prises with either of those can Meanwhile, the stock mar- rean Peninsula. Analysts a modest step in removing down less than 0.1%, while
principal with Bingham, Os- throw things off a bit.” ket appeared to have little re- largely said the outcome of the that tail risk—markets are tak- Japan’s Nikkei was up 0.3%
born & Scarborough, a San The S&P 500 rose 4.85 action to the day of talks be- talks remained unclear and ing it somewhat skeptically and Hong Kong’s Hang Seng
Francisco-based financial advi- points, or 0.2%, to 2786.85, tween President Donald Trump that North Korean risks more and want to see much more was down 0.5%.
Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard
AT&T Call Clears Way for M&A OVERHEARD Riskier Debt

Shows Path
As long as the big tech is Hollywood talent away from The showman in chief just
Dethroned by Netflix
the enemy, companies are
pretty much free to buy, sell
and trade assets to keep
Market value of leading media companies
the incumbents.
Any wave of deal making
risks going out of control.
got one-upped by a pancake
house.
An early Tuesday perusal
To Growth
from falling behind. A federal Time Warner, after all, was of Google Trends gave a Is it risk on or risk off?
Netflix
judge said as much when he one half of one of the worst snapshot of what was on the This year has seen a string
approved AT&T’s $85.4 bil- Disney mergers in history when minds of the world’s citizens of trades on riskier bonds
lion acquisition of Time combined with AOL at the leading up to the nuclear blow up, from emerging
Comcast
Warner. top of the tech bubble. Com- summit between U.S. Presi- markets to Italy. But the
Judge Richard Leon isn’t Time Warner cast shares fell after the de- dent Donald Trump and high-yield market is sending
wrong that Silicon Valley gi- Fox
cision as investors worried it North Korean leader Kim the opposite message: that
ants like Netflix, Apple and would overpay for the Fox Jong Un. In South Korea, for growth is here to stay.
Amazon.com pose real Charter 2018 assets to beat out Disney, example, a four-letter acro- High-yield corporate
threats to media companies. CBS 2014 which has offered $52.5 bil- nym led the list on June 12, bonds are outperforming
For investors, this means lion in stock. CVID, which stands for “com- other fixed-income securi-
a wave of deals in which Viacom CBS and Viacom, whose plete, verifiable, irreversible ties, and perhaps surpris-
companies will invoke $0 billion 50 100 150 recent merger talks have denuclearization”—a stated ingly, it is the riskiest bonds
threats from tech giants as Note: 2018 data is year to date been complicated by quarrels U.S. demand going into the posting the biggest returns.
excuses to spend billions os- Source: FactSet THE WALL STREET JOURNAL. and lawsuits, may feel re- summit, though perhaps not Triple-C-rated global
tensibly to fight back. The newed pressure to consoli- after. bonds—those most exposed
first example could come is now diminished. Leon is adapting to the date. That doesn’t necessar- But in the U.S., the sum- to the risk of default—have
quickly when Comcast de- If Judge Leon had to make times. Netflix, which had a ily mean with each other. mit didn’t even make it into returned 3.5% so far in 2018,
cides how much to bid for this ruling even just a few market value of around $20.6 Now that vertical deal mak- the top 20 search queries on according to ICE BofAML in-
assets owned by 21st Cen- years ago, the outcome billion in 2014, is now worth ing has been blessed, Veri- Monday, when the meeting dexes.
tury Fox, which has agreed would probably have been $158.5 billion, surpassing the zon or Charter Communica- began in U.S. time zones. The Meanwhile, the overall
to sell them to Walt Disney. different. In 2011, he was re- market value of all the legacy tions could seek to acquire No. 1 search was for another spread between global high-
The Justice Department, luctant to approve Comcast’s media companies. Amazon CBS. Other assets like Lions acronym, IHOb, a publicity yield bonds and Treasurys,
which opposed the AT&T- acquisition of NBCUniversal, and Apple, which both have Gate or AMC could get stunt by International House at 3.66 percentage points,
Time Warner deal on the a similar merging of distribu- market caps bigger than ev- snapped up, too. Cash-rich of Pancakes. The chain is has rarely been tighter since
grounds that it would lead to tion channels with media ery major media company tech companies could also adding several hamburgers to the global financial crisis. In
fewer choices and higher content. The deal went combined, pose a similar join the party. its menu. the cornerstone U.S. market,
prices for consumers, will through only after Comcast problem. Though media isn’t Judge Leon made a well- As far as public interest the spread has modestly
have a tough time trying to agreed to strict conditions to their core business, both are reasoned decision. Media goes, Mr. Trump’s nuclear tightened this year.
stop the frenzy. The Justice protect consumers. spending billions to create CEOs may not do the same. deal was a nothingburger. That matters because
Department’s antitrust vigor The ruling suggests Judge original content, drawing top —Elizabeth Winkler high-yield corporate bonds
should be among the assets
most sensitive to any deteri-
Xiaomi’s IPO Receives a Vital Helping Hand From Home oration in the growth out-
look or tightening in finan-
cial conditions. The key risk
Forget Chinese stocks year’s earnings, excluding worth $74 billion—already funds worth a total of 300 for investors is of defaults
joining MSCI’s indexes: A Homeward Bound one-time items. But the deal bigger than its Taiwan-listed billion yuan ($47 billion) to that lead to permanent loss
bigger opening-up is taking Market values for China’s largest will be easier to pull off with parent’s $51 billion, even invest in them. of capital.
place in Chinese markets— technology companies the help of mainland Chinese though FII’s revenue last All of this could help Xi- However, defaults are low
for the country’s own tech- Alibaba investors. year was only one-third of aomi out of a hole: The com- and investors seem to be-
nology giants. Tencent Thanks to capital controls, its parent’s. pany has faced serious ques- lieve that picture will per-
Smartphone maker Xi- Ant Financial* piles of cash are trapped in- China’s leader in car bat- tions about its valuation sist.
aomi is set to be the first Baidu side China with few invest- teries, Contemporary Am- since its IPO process Standard & Poor’s said in
one to test this out. Didi Chuxing* ment options beyond the perex Technology, has launched, with expectations May it expects the default
Xiaomi*
The company could raise Meituan Dianping* country’s stock markets, gained 58% in just two days already lowered way below rate in the U.S., the biggest
up to half of the $10 billion JD.com where sky-high valuations since its IPO in Shenzhen. initial hopes that it could be high-yield market, to decline
it is hoping for in an initial $0 billion 300 600 are commonplace. Newly listed stocks in worth about $100 billion. to 2.5% by March 2019 from
public offering this summer *Reported valuations for private companies This is especially true for China return on average It is good news too for 3.4% in March of this year.
by issuing depositary re- Source: FactSet, staff reports companies with strong brand 200% one month after their other Chinese unicorns plan- For now, the resilience in
ceipts in Shanghai—a new recognition like Xiaomi. Fox- debut, according to Goldman ning to list, including Jack high-yield markets is a sign
market mechanism designed overseas expansion and for conn Industrial Internet, a Sachs. Ma’s Ant Financial, cur- that global growth is still on
by Beijing to lure its big its existing foreign share- subsidiary of Taiwanese There is a pot of cash rently valued at $150 billion track and that upsets in Italy
technology firms to list at holders to cash out. iPhone assembler Hon Hai standing by to snap up these after a $14 billion private and emerging markets can
home. Xiaomi’s targeted valua- Precision, has gained 74% Chinese depositary receipts fundraising round. For Chi- be contained.
Xiaomi’s Hong Kong list- tion of about $75 billion since making its debut in too: Chinese regulators have nese tech stocks, home is This canary in the coal
ing will still take place, al- looks pricey, valuing it at Shanghai last Friday. recently approved six lead- where the heart is. mine is still singing.
lowing it to raise capital for more than 100 times last The company is now ing asset managers to launch —Jacky Wong —Richard Barley
JOURNAL REPORT
© 2018 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Wednesday, June 13, 2018 | R1
Hot Startups in Hot Sectors

Three industries—AI, blockchain and cybersecurity—dominate the 2018 list
whose work is tied to blockchain.
Highest on the list among six com-
panies working with AI is Spoke, No.
7, whose formal name is Townsend
A Conversation
Street Labs Inc. It was formed in
2016 and is based in San Francisco.
With...
Bitglass focuses on securing a
company’s data when it is used with
so-called cloud applications like
Salesforce, Microsoft Office 365 and
Amazon Web Services. The prior en-
trepreneurial work of co-founder and
Chief Executive Nat Kausik helped lift
the company to the top of the list.
Before co-founding Bitglass in 2013,
Mr. Kausik was a founder of Arcot
Systems Inc., a payments-security
company, in 1997. In 2010, Arcot was NAT KAUSIK
sold to CA Technologies. In 2000, Mr. CEO and Co-Founder, Bitglass
Kausik co-founded a network-secu-
rity company called FineGround Net- Q: What is the company’s big-
works that five years later was sold gest challenge to continued
to Cisco Systems Inc. growth?
The Journal analysis rewards com- A: “The biggest challenge is
panies for having founders who cre- distribution. There are so many
ated or helped run other startups; markets world-wide, and we
they could draw on past experience in can’t go into all of these alone,”
developing their business. Roger Lee, he says. Bitglass is creating dis-
VIKTOR KOEN
a general partner at Battery Ventures tribution agreements. For the

in Menlo Park, Calif., says past expe- U.S. government market, for in-
rience is especially relevant if the en- stance, it works with defense
trepreneur has previously launched a contractors that have existing
The Journal 25 isn’t a ranking of publications and attendees of Jour- successful business in a similar mar- relationships.
BY DAVE PETTIT
every company working in the hot nal technology conferences. Survey ket, with the same team.
corners of tech. Nor does it consist participants were asked to identify Many of the most successful in- Q: Can you share a tip that
ARTIFICIAL INTELLIGENCE, block- of companies with billion-dollar val- young companies that are innova- vestments by Foundation Capital are helped you as an entrepreneur?
chain, cybersecurity. uations; far from it. Rather, the list tive, growing fast and expected to in companies created by repeat en- A: Larger companies tend to go
Startups working in these hot ar- spotlights young com- continue to grow fast. trepreneurs. “We love them because for safer hires. Smaller compa-
eas of the technology industry take panies—all founded Only those with valua- they bring a level of focus and disci- nies should take a chance on
more than half of the spots on this since the start of tions of $50 million to pline,” Mr. Moldow says. “There is finding outliers who have a
year’s Wall Street Journal listing of
25 technology companies to watch.
2013—that have at-
tracted the attention
Tech $500 million were con-
sidered for the list.
much more intellectual honesty. If
they are screwing up, they are the
chance to wildly outperform.
“As an entrepreneur, if you hire
The list identifies startups that show of the tech community, Companies From there, a data first ones to say ‘We need help.’ A lot for the variance and weed out
toWatch
signs of becoming emerging leaders and cash from ven- analysis was conducted of first-time entrepreneurs think our the weak performers, you tend
in the tech industry. ture-capital investors. to assess the experi- expectation is that they are infalli- to outperform as a company,”
“Those three make a lot of sense,” These are companies ence of the companies’ ble…and that leads to bad decisions.” he says.
says Charles Moldow, a general part-
ner at Foundation Capital, a venture-
that have expanded
their workforces and,
2018 founders, the invest-
ments the companies Who’s on board? Q: What was your worst day at
capital firm in Palo Alto, Calif. in some cases, have prominent back- have attracted, the prior success of The value that investors bring to the office?
“These are the areas we are most fo- ers and founders with prior entre- their biggest investors, the growth startups is another component of A: “A time when a system went
cused on,” he says. preneurial success. of their workforces, and the buzz the analysis. Credit is given to com- down. It happened when I was
Artificial intelligence has bene- Outside of the three predominant they have begun to generate in tradi- panies for having on their boards on a plane to Singapore,” he
fited from advances in processing technology fields, companies on the tional and social media. Equal firms that have made sizable VC in- says. When he landed, he
power and analysis that are opening list include those working in areas weight was assigned to these five vestments overall and that have in- learned a supplier’s software
myriad new ways to create products. such as health care, financial ser- criteria to calculate overall scores vested in companies that have later problem caused an outage that
Meanwhile, growing attention to vices, education, and business solu- for the companies. gone public or been sold. Credit also affected a large customer.
cryptocurrencies has helped per- tions such as drones. From all of that, the top 25 com- is given for the number of investors
suade a crop of highly skilled entre- Tech Companies to Watch starts panies emerged. the startups have and the amount of Q: What was your best day at
preneurs to work on putting the un- with a survey of technology-industry money the companies have raised. the office?
derlying blockchain technology to watchers. Nominations were taken in Top of the list This analysis used data from Dow A: “In early 2016, we won our
various uses. an online survey conducted by the At the head of the list is Bitglass Jones VentureSource. first Fortune 50 customer,” he
As for the third: “Cybersecurity Harris Poll among executives and Inc., a Campbell, Calif., cybersecurity For instance, Spoke, which devel- says. “That was a big stamp of
should be a perennial anchor on the others who make technology pur- company formed in 2013. No. 2 is oped a chatbot for businesses to re- approval that made a big differ-
list,” Mr. Moldow says. “So long as chasing decisions for businesses, as Blockstream Corp., based in Mon- spond to employee queries on hu- ence to us.”
there are black hats, there will need well as a survey that included read- treal, which is four years old and man-resource, IT and other issues,
to be white hats.” ers of certain Wall Street Journal one of five startups on the list Please turn to the next page
How Individual Investors Can INSIDE
Get a Piece of Startups Top 25 Tech

Companies to Watch
Among the options: angel groups and online platforms The full rankings, from
Bitglass to Keybase
R4
tate service Opendoor,
BY TOMIO GERON Where Are They Now?
which went on to raise
$310 million from big in- A look at some of the companies
YOU DON’T have to be a vestors. on last year’s list—and what their
Silicon Valley venture One catch: AngelList is stories tell us about the current
capitalist to invest in the only available to accred- state of startups
hot new technology start- ited investors, generally R5
ups. defined as having an an-
Individuals interested nual income of $200,000
in startups can invest for two years or having a
through angel groups or net worth of more than $1
online platforms for million.
early-stage investors like On its site, AngelList
AngelList, at angel.co, offers funds managed by
and Propel(x), at pro- the company’s executives
pelx.com. Or they can in- that provide exposure to a
vest in later-stage, but range of startups. Inves-
still young, companies tors don’t have any say in
through publicly traded which companies are fi-
funds that hold stakes in nanced through these so- New Funds Focus on Diversity
companies already backed called Access Funds. But Startups led by women and
by venture capitalists. another option on the site people of color often struggle for
SELMAN DESIGN
Investing in fledgling gives them choices. New funding. How to change that?
companies can bring re- investors can essentially R5
turns that are hard to follow an experienced in-
find when buying stock in dividual investor in two Success Strategies of
publicly traded compa- ways: by choosing to in- Rising VC Firms
nies. And it can be a thrill. “You put savings an investor is depending prospective members to visit meet- vest in all the same deals as the ex- Index Ventures and Lightspeed
can’t discount how psychologically on for retirement. ings to get to know and evaluate the perienced investor, through a small have invested in several
interesting and intoxicating it is” for For individuals who want a piece groups. fund, or by choosing to back only companies on the WSJ list
many people to get involved in start- of the action, angel groups are an Many investors instead have some of the companies the experi- R6
ups, says Semil Shah, who invested option that’s growing in popularity. flocked to online platforms, because enced investor is funding.
through AngelList before going on to They offer the inexperienced inves- of the wide access to startups they The minimum to invest in the
become a venture capitalist at two tor a way to learn from more-sea- offer. next AngelList Access Fund is ex-
firms, Haystack Fund and Lightspeed soned hands about the language of AngelList has provided a platform pected to be $100,000. The minimum
Venture Partners. “It’s an exciting investing as well as how to pick for $800 million invested in more to invest in individual deals is as low
thing to be around people doing new prospects. Some angel groups pool than 2,000 startups, which went on as $1,000, though many lead inves-
things.” investor contributions in a fund and to raise $7.4 billion in venture capi- tors won’t accept checks smaller
But those opportunities come the group decides which startups to tal. An average of 100 companies a than $5,000.
with a huge caveat: Investing in back with that money. Other groups month raise money on the platform, For a minimum $3,000 invest-
technology startups is high-risk, par- give members the option to back in- according to San Francisco-based ment, San Francisco-based Propel(x)
ticularly for people who aren’t famil- dividual companies. AngelList. Fast-growing startups matches investors with startups fo-
iar with the volatile tech scene. An- The Angel Capital Association of- that have raised capital through An- cused on so-called “deep tech” ad-
gel investors, experts warn, fers a list of its member groups on gelList include the dog-walking app vances that hinge on scientific dis- Tales From the Startup World
shouldn’t invest money they can’t af- its website, angelcapitalassocia- Wag, which later raised $319 million coveries or some type of engineering Rand Fishkin on hiring and more
ford to lose. This isn’t the place to tion.org. Angel groups often invite from venture investors, and real-es- Please turn to the next page R6
R2 | Wednesday, June 13, 2018 THE WALL STREET JOURNAL.
JOURNAL REPORT | TECH COMPANIES TO WATCH
Hot Startups in Hot Sectors

who is based in San Francisco and is Finding investors is quickest in
a general partner at venture capital- the earliest stages of a company, says
firm Canaan. “You want a board with Mr. Kausik, the CEO of Bitglass and
a good set of skills and a good set of repeat entrepreneur. The company
Continued from the prior page companies raised $223.8 billion in to- says Yinglian Xie, chief executive perspectives. [Entrepreneurs who] raised $10 million in its first round in
benefited from having on its board tal investments in 2017, up from $165 and co-founder of DataVisor Inc., focus on just getting a check at the 2013 and, to date, has attracted $80
representatives from firms such as billion in 2016, based on major coun- the No. 16 company on the Tech highest possible valuation…are tak- million in investments. “In the first
Accel Partners and Greylock Part- tries and regions reported upon by Companies to Watch list. The Moun- ing a shortsighted view of what it round of funding, we had only 10
ners. Blockstream, the blockchain Dow Jones VentureSource. Through tain View, Calif., company, which takes to build a great company.” slides and pitched them to a handful
company, benefited from having the first quarter of 2018, these start- uses machine learning to identify Mr. Lee of Battery Ventures says, of investors—and we got a commit-
among its investors Khosla Ventures ups raised $63.7 billion. fraud, has raised more than $50 mil- “Ultimately there has to be a level of ment from two of them,” he says.
and Innovation Endeavors, a firm lion from investors including Se- respect and mutual understanding “All babies are attractive.”
that includes as a founding partner Ready cash quoia Capital China. about the partnership. It’s easier to
Eric Schmidt, the former chairman “If you look at the capital mar- Entrepreneurs should focus on get divorced than it is to get rid of Staffing issues
of Alphabet Inc. kets, it’s a relatively good time to finding investors who can offer skills your investor. You are going to be Recruiting, hiring and retaining
Startups looking for funding are find money. You just need a few key that complement the expertise of the stuck with this person for the dura- workers can be tougher. Blythe Mas-
finding a receptive market. VC-backed partners who can work with you,” management team, says Rich Boyle, tion of the company.” ters, CEO of Digital Asset Holdings,
says hiring is challenging for tech
entrepreneurs, whose companies are
growing rapidly and whose job can-
A Conversation With… didates are widely courted.

Even though New York-based Dig-
ital Asset works in the realm of
blockchain, prospective employees
are in demand from companies in a
host of hot areas, including artificial
intelligence, robotics, quantum com-
puting and mobile technology, Ms.
Masters says. Digital Asset, No. 11 on
the list, has 150 employees in six lo-
cations globally.
Competition for employees based
on compensation is difficult for com-
BLYTHE MASTERS BRICE NKENGSA YINGLIAN XIE panies outside of Silicon Valley, says
CEO, Digital Asset Holdings Director of Engineering and CEO and Co-Founder, DataVisor Tom Blomfield, CEO and co-founder
Co-Founder of Andela Inc. of Monzo Bank Ltd., which runs a
Q: What is the company’s biggest challenge to Q: What is the company’s biggest challenge to mobile-phone-focused bank in the
continued growth? Q: What is the company’s biggest challenge to continued growth? U.K. and is No. 14 on the Journal 25.
A: “Talent acquisition and management is a continued growth? A: Explaining new technologies to potential cus- He has found that in London pro-
challenge and also an opportunity,” she says. A: “As we grow, sufficiently communicating tomers can be difficult, particularly when it spective employees see less opportu-
There is an insufficient number of college grad- the ‘why’ behind executive decisions is increas- comes to advances in a topic like machine learn- nity in stock options than do people
uates entering the jobs pipeline with necessary ingly difficult. We are over 1,000 Andelans ing. “It takes a lot of education to the market to in the U.S.
science, technology, engineering and math skills. strong across four countries.… Internal com- let them know there are new ways to tackle “If you come from a bank to work
That is particularly the case for women and it munications have become integral to our rapid problems,” she says. for us, you are taking a pay cut,” Mr.
affects workplace diversity. scaling.” Blomfield says. “We currently are a
Q: Can you share a tip that helped you as an loss-making company. We can’t com-
Q: Can you share a tip that helped you as an Q: Can you share a tip that helped you as an entrepreneur? pete on pure cash.” To address this
entrepreneur? entrepreneur? A: “A startup is a hard journey, with a lot of issue, as part of its most recent
A: “It’s all about focus,” she says. The tempta- A: “Shut up and listen.” ups and down, because we are creating things fundraising Monzo sold equity val-
tion, when you discover a technology that has from nothing,” she says. “Be very focused on ued at £11 million ($14.8 million)
myriad uses, is to try to do too many things. Q: What was your worst day at the office? the objectives you want.” Having a strong part- owned by employees. Those who
“Having absolutely ruthless concentration on re- A: “Generally, my lowest days come on days ner as a co-founder is also crucial. were at the company from its early
maining focused has been the most important where we make tough decisions that affect days were able to convert up to 10%
learning experience for me.” many people or communicating bad news, such Q: What was your worst day at the office? of their equity into cash.
as an office theft or a beloved employee transi- A: As an entrepreneur, you are exposed to re- Mr. Boyle of Canaan says startups
Q: What was your worst day at the office? tioning to a new organization. There are never jections—from job candidates, investors and need to maintain discipline in spend-
A: “We like to keep the work environment light the right words, so those days are quite diffi- potential customers. “The worst day would be ing on hiring and in otherwise man-
and enjoyable,” she says. “We allow dogs in cult.” when a customer tells us that something isn’t aging their growth. “It is easy to
the office. I was giving a presentation to a going right,” she says. raise money right now, and the
large group of businesses when one of my two Q: What was your best day at the office? problem is that it becomes easy to
dogs decided to join me on stage and produce A: “Mark Zuckerberg’s visit to Andela Nigeria Q: What was your best day at the office? build up the cost structure of your
something.” put us on the map—the feeling of reaffirmation A: “The first time seeing that we have demon- company,” he says. “The risk for
that starting Andela was all worth it.” strated our technology is useful to a customer,” companies is to get loose and to lose
Q: What was your best day at the office? she says. The company won its first contract, focus, and that kills startups.”
A: It was the day when, after 2½ years of with a Chinese social-media platform called
work, the Australian stock exchange said it Momo that at the time had 80 million users, Mr. Pettit is a Wall Street Journal
would use the company’s technology. shortly after launch in 2014. editor in New York. He can be
reached at dave.pettit@wsj.com.
ment and have big money be- member not only that invest-
Individual hind them, but that also
means the potential payoff is
ing in high-technology start-
ups is inherently risky, but
Continued from the prior page smaller than what an investor also that such investments
breakthrough. For each poten- could hope for if an angel bet mostly are illiquid. People in-
tial deal, Propel(x) provides an pays off. vesting in individual compa-
independent panel of experts A closed-end fund called nies, rather than funds, should
who can answer investors’ the SharesPost 100 Fund diversify with at least 10 to 12
( s h a r e s p o s t . c o m /s h a r e - investments because of the
spost-100-fund) has invested high failure rate of startups,
in companies such as Uber, says Marianne Hudson, execu-
LAGUNA BEACH, CA | NOV 12–14, 2018 VENTURE CAPITAL Pinterest and SoFi. The fund’s
minimum to invest is $2,500.
tive director at the Angel Cap-
ital Association.
In-depth news, analysis GSV Capital Corp., with no “Know that half to 70% of
and interactives minimum investment, is an in- your investments you will prob-
vestment fund that trades on ably lose,” Ms. Hudson says.
UPGRADE
Subscribe at wsj.com/pro/ the Nasdaq and invests in pri- Indeed, newcomers espe-
venturecapital vate companies such as Palan- cially should invest only an
tir, Lyft and Coursera. It held amount they can afford to
Spotify and Dropbox, two lose, says Kevin Laws, chief
questions to help them vet the startups that recently had ini- executive officer at AngelList.
YOUR NETWORK:
startup. tial public offerings of shares. “We see a lot of angel inves-
“There’s an information- GSV, at gsvcap.com, seeks out tors burn out their entire allo-
asymmetry gap in private companies that are about two cation in six months,” he says.
markets,” says Swati to three years away from be-
JOIN TOP TECH LEADERS

Chaturvedi, co-founder and ing sold or going public, says Mr. Geron is a Wall Street
chief executive at Propel(x). fund founder Michael Moe. Journal reporter in San
“There’s no research, unlike in Whatever route an investor Francisco. He can be reached
FOR THREE DAYS OF INSIGHT the public markets.” The ex-
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takes, it’s important to re- at tomio.geron@wsj.com.
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Technology Companies to Watch

The Wall Street Journal spotlights 25 emerging leaders in hot corners of the tech industry
Methodology | See a summary of the methodology on page R5. For more detail, go to to wsj.com/techlist.
1. BITGLASS INC. 2. BLOCKSTREAM CORP. 3. ANDELA INC. > 4. VIRTA HEALTH CORP.
WEBSITE: bitglass.com WEBSITE: blockstream.com WEBSITE: andela.com WEBSITE: virtahealth.com
LOCATION: Campbell, Calif. LOCATION: Montreal LOCATION: New York LOCATION: San Francisco
FOUNDED: 2013 FOUNDED: 2014 FOUNDED: 2014 FOUNDED: 2014
FOUNDERS: Anoop Bhattacharjya, Chris FOUNDERS: Dr. Adam Back, Matt Corallo, FOUNDERS: Iyinoluwa Aboyeji, Ian FOUNDERS: Sami Inkinen, Stephen
Chan, Anurag Kahol, Nat Kausik Alexander Fowler, Mark Friedenbach, Carnevale, Nadayar Enegesi, Jeremy Phinney, Jeff Volek
DESCRIPTION: A cybersecurity provider Francesca Hall, Austin Hill, Greg Johnson, Brice Nkengsa, Christina Sass DESCRIPTION: Developing an online
that protects a company’s systems Maxwell, Erik Svenson, Jorge Timon, DESCRIPTION: Recruits software treatment plan for Type 2 diabetes.
from vulnerabilities associated with Jonathan Wilkins, Dr. Pieter Wuille developers in Africa and places them Virtual coaches help provide personal-
using cloud-based applications such as DESCRIPTION: Creating ways to handle to work remotely from Africa with ized diet plans. Physicians oversee the
Salesforce and Amazon Web Services, bitcoin micropayments and a technology companies, mostly in the U.S. plans remotely.
including security when using personal called sidechain that offers firms more INVESTORS INCLUDE: Chan Zuckerberg INVESTORS INCLUDE: Allen & Co., Crean-
and mobile devices. flexibility handling bitcoin transfers. Initiative, Founder Collective, Frontier dum, Founders Fund LLC, Great Oaks
INVESTORS: Future Fund Management Working with Intercontinental Exchange. Tech Ventures, GV, Melo7 Tech Partners Venture Capital LLC, Obvious Ventures
Agency, New Enterprise Associates INVESTORS INCLUDE: AME Cloud LLC, Omidyar Network Commons LLC, Management LLC, Playground Global
Inc., Norwest Venture Partners, SingTel Ventures, AXA Strategic Ventures, Block- Peak Venture Partners LLC, Rothenberg LLC, Rock Health, SciFi VC, Uprising,
Innov8 Pte. Ltd. chain Capital LLC, Innovation Endeavors, Ventures, Salesforce Ventures, Spark Venrock
TOTAL FUNDING: $80.03 million Khosla Ventures, Mosaic Ventures, Reid Capital, SparkLabs Global Ventures, TOTAL FUNDING: $75 million
EMPLOYEES: 104 Hoffman Susa Ventures, TLcom Capital LLP EMPLOYEES: 101
TOTAL FUNDING: $77.5 million TOTAL FUNDING: $78 million
EMPLOYEES: 50 EMPLOYEES: 1,038
5. EERO INC. > 6. R3 7. SPOKE 8. EXABEAM INC.

WEBSITE: eero.com WEBSITE: r3.com WEBSITE: askspoke.com WEBSITE: exabeam.com
LOCATION: San Francisco LOCATION: New York LOCATION: San Francisco LOCATION: San Mateo, Calif.
FOUNDERS: Nate Hardison, Amos FOUNDERS: Jesse Edwards, Todd FOUNDERS: David Kaneda, Pratyus FOUNDERS: Sylvain Gil, Domingo
Schallich, Nick Weaver McDonald, David E. Rutter Patnaik, Jay Srinivasan Mihovilovic, Nir Polak
DESCRIPTION: Sells a Wi-Fi system that DESCRIPTION: Developed a blockchain- DESCRIPTION: Provides chatbot for DESCRIPTION: Offers cybersecurity
eliminates dead spots and increases based platform to allow financial companies to respond to employee products that manage log-file data
performance around your home by institutions and other businesses to queries via Slack, email, text and web- and analyze it to identify risks and
placing units in multiple places, rather manage secure transactions directly sites. Used for human resources, IT suspicious activity, as well as assist
than using a single router. between parties. Has lost some early and other office management. Formal companies in responding to security
INVESTORS: AME Cloud Ventures, First partners such as Goldman Sachs. name is Townsend Street Labs Inc. incidents.
Round Capital, Great Oaks Venture Denied published report it is running INVESTORS: Accel Partners, Felicis INVESTORS: Aspect Ventures, Cisco In-
Capital LLC, Homebrew Ventures, low on cash. Ventures, Greylock Partners, Index vestments, Icon Ventures, Lightspeed
Index Ventures, Initialized Capital, Men- INVESTORS INCLUDE: Intel Capital along Ventures, Red Dog Capital LLC, Spider Venture Partners, Norwest Venture
lo Ventures, Playground Global LLC, with several large banks including Bank Capital, Webb Investment Network Partners, Shlomo Kramer
Redpoint Ventures, Shasta Ventures of America, Barclays Bank PLC, Deut- TOTAL FUNDING: $28 million TOTAL FUNDING: $65 miilion
Management LLC, StartX, Trae Vassal- sche Bank AG and HSBC Investments EMPLOYEES: 25 EMPLOYEES: 203
lo - Defy VC TOTAL FUNDING: $107 million
TOTAL FUNDING: $90 million EMPLOYEES: 180
EMPLOYEES: 120
9. SPARKCOGNITION INC. 10. STASH FINANCIAL INC. 11. DIGITAL ASSET HOLDINGS 12. BRAVE SOFTWARE INC. 13. ABRA
WEBSITE: sparkcognition.com WEBSITE: stashinvest.com WEBSITE: digitalasset.com WEBSITE: brave.com WEBSITE: abra.com
LOCATION: Austin, Texas LOCATION: New York LOCATION: New York LOCATION: San Francisco LOCATION: Mountain View, Calif.
FOUNDED: 2013 FOUNDED: 2015 FOUNDED: 2014 FOUNDED: 2015 FOUNDED: 2014
FOUNDER: Amir Husain FOUNDERS: Brandon Krieg, Ed Robinson, FOUNDERS: Sunil Hirani, Don R. Wilson FOUNDERS: Brian Bondy, Brendan Eich FOUNDERS: Bill Barhydt, James D.
DESCRIPTION: Utilizes machine learning David Ronick DESCRIPTION: Developed blockchain DESCRIPTION: Offers a web browser de- Robinson
to analyze data for uses such as DESCRIPTION: Offers a mobile app that technology to securely process transac- signed to improve privacy and includes DESCRIPTION: Created a mobile app
managing maintenance and making allows users to invest in select ETFs tions for financial institutions. Working a blockchain-based ad platform through to invest in 25 cryptocurrencies and
decisions about work flows and costs. and stocks. Users can make small, on financial “infrastructure,” such as which revenue is split with publishers. 50 traditional currencies. Users fund
Focuses on industries including energy, regular investments without commis- trade clearing and settlement for Aus- Note: Has a partnership with Dow a “wallet,” track prices and make
utilities, defense and finance. sions; accounts with small balances tralia’s main stock exchange. Jones, publisher of The Wall Street exchanges between currencies. Formal
INVESTORS: Alameda Ventures, Boeing pay a $1 per month fee. INVESTORS INCLUDE: ABN AMRO Bank Journal. name is Plutus Financial Inc.
HorizonX Ventures, Brevan Howard In- INVESTORS: Breyer Capital, Coatue NV, Accenture LLP, ASX Ltd., BNP INVESTORS: Digital Currency Group Inc., INVESTORS INCLUDE: AngelList LLC,
vestments Holding Ltd., CME Ventures Management LLC, Entree Capital, Paribas SA, Citi, CME Ventures LLC, Foundation Capital, Founders Fund LLC, First Round Capital, IGNIA Partners,
LLC, Invenergy LLC, JC2 Ventures, MSD Goodwater Capital, Union Square Goldman Sachs Group Inc., International Pantera Capital Management, Propel Hippeau Ventures, Liberty City Ven-
Capital LP, The Entrepreneurs’ Fund, Ventures, Valar Ventures Management Business Machines Corp., J.P. Morgan Venture Partners tures, MESA Ventures, Nyca Partners
Verizon Ventures LLC Securities LLC, PNC Financial Services TOTAL FUNDING: $43 million LLC, Operative Capital, Pantera Capital
TOTAL FUNDING: $72.5 million TOTAL FUNDING: $116.75 million Group, Santander InnoVentures EMPLOYEES: 60 Management and RRE Ventures LLC
EMPLOYEES: 237 EMPLOYEES: 133 TOTAL FUNDING: $100 million TOTAL FUNDING: $37 million
EMPLOYEES: 150 EMPLOYEES: 50
14. MONZO BANK LTD. 15. KESPRY INC. > 16. DATAVISOR INC. 17. FOURKITES INC.
WEBSITE: monzo.com WEBSITE: kespry.com WEBSITE: datavisor.com WEBSITE: fourkites.com
LOCATION: London LOCATION: Menlo Park, Calif. LOCATION: Mountain View, Calif. LOCATION: Chicago
FOUNDERS: Jason Bates, Tom Blomfield, FOUNDERS: Paul Doersch, Nathan FOUNDERS: Yinglian Xie, Fang Yu FOUNDERS: Arun Chandrasekaran,
Gary Dolman, Jonas Huckestein, Paul Hall-Snyder, Ben Stabler DESCRIPTION: Utilizes machine learning Mathew Elenjickal
Rippon DESCRIPTION: Created a platform that to help protect against fraud, analyzing DESCRIPTION: Developed a supply-chain
DESCRIPTION: Offers bank services to gathers data using drones and analyzes factors such as user behaviors and monitoring system that integrates with
U.K. residents using accounts managed it for industries such as mining, insur- locations to identify suspicious activi- sensors and internet-connected devices
on a mobile app. Users can spend ance and construction. Uses include ties. Designed for financial companies, to track the location and temperature
money using a bank card and can inspections and inventory and operation e-commerce, social platforms and of shipments, and uses predictive anal-
transfer money to others electronically, management. mobile apps. ysis to estimate arrival times.
including via Bluetooth. INVESTORS: ABB Technology Ventures, INVESTORS: Genesis Capital, GSR Ven- INVESTORS: August Capital Master
INVESTORS: Crowdfunding, Goodwa- Cisco Investments, DCM Ventures, tures, New Enterprise Associates Inc., Management Co., Bain Capital Ven-
ter Capital, Orange Digital Ventures, G2VP LLC, H. Barton Asset Manage- Sequoia Capital China tures, Bluestein & Associates, Harvard
Passion Capital Investments LLP, Stripe ment, Lightspeed Venture Partners, TOTAL FUNDING: $54.5 (excluding one Business School Angels, Hyde Park
Inc., Thrive Capital Rothenberg Ventures, Shell Technology round whose value wasn’t publicly Angels, Hyde Park Venture Partners,
TOTAL FUNDING: $136.45 million Ventures BV, s28 Capital, Wilson Sonsi- disclosed) Otter Consulting
EMPLOYEES: 309 ni Goodrich EMPLOYEES: 81 TOTAL FUNDING: $50.9 million
TOTAL FUNDING: $61.4 million EMPLOYEES: 230
EMPLOYEES: 104
18. NAUTO INC. 19. BABYLON HOLDINGS LTD. 20. BOWERY FARMING INC. > 21. AIROBOTICS LTD.
WEBSITE: nauto.com WEBSITE: babylonhealth.com WEBSITE: boweryfarming.com WEBSITE: airoboticsdrones.com
LOCATION: Palo Alto, Calif. LOCATION: London LOCATION: New York LOCATION: Petah Tikva, Israel
FOUNDERS: Stefan Heck, Frederick Soo FOUNDER: Ali Parsa FOUNDERS: Irving Fain, Brian Falther, FOUNDERS: Meir Kliner, Ran Krauss
DESCRIPTION: Produces a camera and DESCRIPTION: Provides health care David Golden DESCRIPTION: Provides drones and
software system that assesses how service that connects patients with DESCRIPTION: Operates indoor produce software for uses including security
drivers interact with the vehicle and doctors via video or voice, using an farms that use monitoring systems, monitoring; facility and emergency
the road. Used to monitor commercial app. System is available in the U.K. and automation and machine learning inspections; surveying; and inventory
fleets and in developing technology for Rwanda. Targets China, the U.S. and to control the growing environment. measurement. Used in mining and
autonomous vehicles. Middle East for expansion. Operations are in the New York area. other industrial settings.
INVESTORS: Allianz Capital Partners, INVESTORS: BXR Global Investment INVESTORS INCLUDE: Box Group LLC, INVESTORS: BlueRun Ventures, Charles
Sources: the companies, Dow Jones VentureSource, Dow Jones Factiva, Harris Poll, CrowdTangle, investment firms
BMW i Ventures, Draper Nexus Ven- Group, Hoxton Ventures, Kinnevik AB, First Round Capital, Flybridge Capital River Ventures, Microsoft Ventures,
tures, General Motors Venture Group, NNS Holdings, Vostok New Ventures Partners, General Catalyst Partners, OurCrowd, Upwest Labs, Charlotte
Greylock Partners, Index Ventures, Ltd., Nassef Sawiris GGV Capital, GV, Homebrew Ventures, Matityahu, David Roux, Eldad Matitya-
Playground Global LLC, Softbank Group TOTAL FUNDING: $85 million Lerer Hippeau Ventures, RRE Ventures hu, Noam Bardin, Raul Cesan, Richard
Corp., Toyota AI Ventures LLC EMPLOYEES: 347 LLC, SV Angel Woolridge, Stephen Dattels, Yuda
TOTAL FUNDING: $171 million TOTAL FUNDING: $27.5 million Doron
EMPLOYEES: Confidential (figure EMPLOYEES: 38 TOTAL FUNDING: $71 million
provided for data analysis) EMPLOYEES: 250
22. FREENOME HOLDINGS INC. > 23. CLAROTY LTD. 24. DESCARTES LABS INC. 25. KEYBASE INC.
WEBSITE: freenome.com WEBSITE: claroty.com WEBSITE: descarteslabs.com WEBSITE: keybase.io
LOCATION: South San Francisco, Calif. LOCATION: New York LOCATION: Santa Fe, N.M. LOCATION: New York
FOUNDERS: Riley Ennis, Gabriel Otte, FOUNDERS: Galina Antova, Benny Porat, FOUNDERS: Steven Brumby, Rick FOUNDERS: Chris Coyne, Max Krohn
Charles Roberts Amir Zilberstein Chartrand, Mark Johnson, Tim Kelton, DESCRIPTION: Provides technology to en-
DESCRIPTION: Developing artificial DESCRIPTION: Provides cybersecurity Mark Mathis, Adam Smith, Mike crypt chat, file sharing and collaboration
intelligence that would analyze blood to to industries including electric power, Warren, Brendt Wohlberg on software code. Offers a security app
detect early-stage cancer and improve chemicals, oil and gas, transportation DESCRIPTION: Creating a platform to for mobile phones and computers that
oncology treatments. One of several and water. Services include monitoring store and analyze continually updating allows secure communications among
companies working in this area. industrial control systems and securing satellite data for uses such as pre- groups of users.
INVESTORS INCLUDE: Allen & Co., AME remote systems access. dicting supply and demand for things INVESTORS: Andreessen Horowitz
Cloud Ventures, Andreessen Horowitz, INVESTORS INCLUDE: Bessemer Venture including agricultural products. TOTAL FUNDING: $10.8 million
Charles River Ventures, DCVC Man- Partners, Innovation Endeavors, INVESTORS INCLUDE: Angel Investors,
EMPLOYEES: 20
agement Co., Founders Fund LLC, GV, Next47, NightDragon Security, Team8, Cargill Inc., Correlation Ventures, Cross-
Innovation Endeavors, Polaris Partners, Temasek link Capital, Cultivian Sandbox Venture
Section 32, s28 Capital, Third Kind TOTAL FUNDING: $93 million (includes Partners, DCVC Management Co.,
Venture Capital, Verily Life Sciences $60 million investment closed June 1; G-Bar Ventures, March Capital Partners
LLC, Anne Wojcicki not included in analysis) GP LLC
TOTAL FUNDING: $77.6 million EMPLOYEES: 83 TOTAL FUNDING: $38.42 million
EMPLOYEES: 70 EMPLOYEES: 70
THE WALL STREET JOURNAL. Wednesday, June 13, 2018 | R5
WHERE ARE THEY NOW? An Eventful Year

What the past 12 months have
brought for some of last year’s
A look at some of the companies on last year’s list—and what Tech Companies to Watch
(place on 2017 list shown)
their stories tell us about the current state of startups
2 Collective Health Inc.
Raised $110 million in a deal that
Abloy for an undisclosed sum. brings its total equity raised to
BY HEATHER MACK
The deal will help Assa Abloy, $259 million
which owns the Yale lock
LAST YEAR’S names on The brand, expand in the U.S. 3 August Home Inc.
Wall Street Journal list of Established companies also Acquired by Swedish lock
Tech Companies to Watch continue to hunt for startup specialist Assa Abloy for an
have turned out to be, well, acquisitions that provide other undisclosed sum
worth watch- types of security. Germany’s
ing. In partic- Continental AG, the maker of 7 Ring Inc.
ular, their premium tires and other tech- Acquired by Amazon.com for
fates say a lot about the nology for autos, agreed to ac- more than $1 billion
trends that are affecting many quire Israeli startup Argus Cy-
tech startups these days. ber Security, No. 24 on the 10 Lemonade Inc.
Among those trends: Journal’s list, for about $400 Raised a $120 million financing
RING
Home security is hot. million. The acquisition of Ar- Amazon bought Ring for more than $1 billion—one of several round with SoftBank Group Corp.
Car makers are evolving gus, which makes products to 2017 Tech Companies to Watch acquired in the past year. and others
with the help of startups. protect vehicles from cyberse-
Investors are pouring curity threats associated with a ride-hailing app. At No. 21 on form allows self-insured em- raised more than $174 million 12 Doctor on Demand Inc.
money into new ways of deliv- onboard electronics and com- the Journal’s list last year, Via ployers and their employees to in venture capital. But it closed Saw its share price drop in a
ering consumer services from munications systems, gives Transportation had previously manage their health, vision nearly half of its private round with private investors
renters’ insurance to health- Continental a foothold in the raised some $137 million from and dental plans. schools in November, saying
care platforms. But the health expanding and competitive investors. The Daimler backing But while investment in they didn’t appear to be sus- 13 AltSchool
and education markets remain driverless-car sector, where and expanded partnership en- health-care startups is at an all- tainable financially in the long Closed nearly half of its private
difficult for newcomers. such systems are crucial. ables the startup to get into time high, they still grapple term. The company’s technol- schools
One of the clearest signs re- Intense competition in an- European ride sharing. with the reality of growing ogy provides a platform for
cently that the home-security other growth market, online Japan’s SoftBank Group within a complex, highly regu- teachers to create curricula 21 Via Transportation Inc.
market is booming was Ama- financial services, spurred the has written a flurry of hefty lated industry. Collective Health and compiles data on students Partnership with Daimler AG
zon.com Inc.’s purchase of acquisition by Navient Corp., checks for startups in recent is one of the few health-care to help teachers personalize includes a $200 million
Ring—a maker of video-con- a servicer of student debt pay- months, including the $100 startups expected by industry their lessons. AltSchool started investment by the auto maker
nected doorbells that allow ments, of Earnest Inc., No. 17 million it invested in cyberse- veterans to launch a public of- out by opening schools based
people to remotely see and on the Journal’s list, for $155 curity startup Cybereason fering in the near future. on the technology but now is 24 Argus Cyber Security Ltd.
communicate with people vis- million. San Francisco-based Inc., No. 14 on the Journal’s Telemedicine startup Doc- selling the technology to exist- Acquired by German auto-parts
iting their property—in a deal Earnest makes personal loans list, in a deal that valued the tor on Demand Inc., the Jour- ing schools. giant Continental AG for a
valued at more than $1 billion. and refinances student loans. Boston-based company at nal’s No. 12 tech company to Hollar Inc., the e-commerce reported $400 million
Ring, based in Santa Monica, about $1 billion. Cybereason’s watch last year, saw its share dollar store that was No. 1 on
Calif., was No. 7 on last year’s Big funding technology uses machine price drop in its latest round the Tech Companies to Watch Source: WSJ reporting
Tech Companies to Watch list. Aside from acquisitions, big learning to recognize threats of financing. Chief Executive list last year, has expanded its THE WALL STREET JOURNAL.
The acquisition, completed in rounds of venture-capital fund- as they enter a company’s Hill Ferguson cited the opera- operations. The company in-
April, was one of Amazon’s ing for some of the companies computer network, so they can tional costs of the San Fran- creased the number of prod- that with this fundraising, we
largest, second only to its on last year’s list reflect inves- be addressed quickly. cisco-based company’s shift to ucts it sells by launching a won’t have to do another one.
roughly $13.5 billion purchase tors’ interest in startups in- an enterprise model—selling marketplace that allows third- This will get us to profitability
of Whole Foods last year. volved in expanding markets Tough businesses its service to companies, party merchants to sell via in 18 to 20 months.” The com-
Ring wasn’t the only home- including ride sharing, cyberse- The growing market for health plans and provider net- Hollar, and it raised $35 mil- pany has reduced its work-
security company acquired curity and health-care services. consumer services in health works rather than directly to lion from investors in Decem- force, in part by introducing
since appearing on last year’s Daimler AG joined competi- care and insurance is driving consumers—as a reason for ber. Hollar had $35 million in robotics to its order-fulfill-
list. August Home Inc., a San tors Ford Motor Co. and Gen- some big venture investments, the decline in value. sales last year, more than dou- ment process, he says.
Francisco-based maker of inter- eral Motors Co. in jumping such as the $110 million fund- Like health care, education ble the 2016 total, says David
net-connected locks and door- into ride-sharing services with ing of Collective Health Inc., has been tough for disruptive Yeom, a co-founder. Ms. Mack is a Wall Street
bell cameras, No. 3 on the Jour- its investment of $200 million the No. 2 company on last entrepreneurs to reshape. Edu- “We aren’t profitable, but Journal reporter in San
nal’s list last year, was bought in New York-based startup Via year’s Journal list. The San cation startup AltSchool Inc., we are on that path,” Mr. Francisco. Email her at
by Swedish lock company Assa Transportation Inc., maker of Francisco-based online plat- No. 13 on last year’s list, has Yeom says. “Our expectation is heather.mack@wsj.com.
New Venture Funds Put Focus on Diversity

Startups founded by women and people of color rule, a quarter of Precursor’s
portfolio companies must have
seekers from nontraditional
backgrounds with employers.
color and women.
Still, there has been some
tend to struggle for funding. What can change that? a female founder, and another
quarter must have at least one
But she struggled.
“I was losing a lot of the
progress. The persistent spot-
light on the tech industry’s
person of color. people I was in front of” be- overall lack of diversity and a
cause they couldn’t relate to string of sexual-harassment
No more waiting her, she says. Her sense was scandals have prompted several
Some investors have nar- that her alma maters checked top venture-capital firms to
rowed their focus even more. the right box but that the po- start changing. Over the past
In May, Backstage Capital an- tential investors she met with year, at least half a dozen
nounced a $36 million fund couldn’t identify with her in firms, including Benchmark
that will invest solely in black the way they might see a youn- and Union Square Ventures,
female entrepreneurs, writing ger version of themselves in have added a woman to their
$1 million checks at a time. white male entrepreneurs. partner ranks for the first time.
As of November 2017, 34 Unable to find any venture And groups like Founders for
black women had raised $1 capital, Mr. Jimenez eventu- Change, whose membership
million or more in venture ally raised $515,000 from 2014 has ballooned to more than 700
funding for their startups since to 2017 from angel investors, startup founders since it
2009, according to ProjectDi- grants and others. The com- formed in March, are keeping
ane, a research initiative con- pany is still in business, and up the pressure on VC firms to
MARK KAUZLARICH/BLOOMBERG NEWS
ducted by DigitalUndivided, an she is preparing to try again diversify their ranks. In a

Atlanta-based startup accelera- for venture funding. pledge, the group’s members
tor that focuses on black and say the diversity of a VC firm
Hispanic entrepreneurs. In Hurdles and progress will be an “important consider-
comparison, PitchBook says Melinda Gates, co-chair of ation” when they decide who to
there were 5,447 U.S.-based the Bill and Melinda Gates accept money from.
startups that raised $1 million Foundation, says venture capi- Then there are the smaller
or more in 2017 alone. Num- talists who overlook women firms, like Backstage, Plexo and
bers like those disappoint Ar- and people of color are hurting others that have emerged in re-
lan Hamilton, founding and themselves. “They’re missing cent years, formed specifically
Arlan Hamilton’s Backstage Capital firm has a $36 million fund for black women entrepreneurs. managing partner of Los Ange- valuable opportunities and to fund those the venture in-
les-based Backstage. leaving money on the table,” dustry has largely neglected.
fortable giving this person a to judge a company on. “Things just weren’t mov- says Ms. Gates. She says her Others, like Jyoti Bansal, co-
BY YOREE KOH
check?” says Charles Hudson, That’s a problem for women ing fast enough,” she says. investment and incubation founder of the $160 million
founding partner of Precursor and people of color, Mr. Hud- “We can’t just be expected to company, Pivotal Ventures, fo- seed fund Unusual Ventures,
AS VENTURE capitalists try to Ventures, a $15.3 million fund son says, because venture cap- sit around and wait for other cuses on diversity in its invest- are simply determined to be
find the next Facebook, they based in San Francisco that in- italists most often are white people to understand us.” ments in startups and in acting open to all potential invest-
may unconsciously be scan- vests in companies just starting men, and people tend to be Black women “are going to as a limited partner in venture ments. “We are completely ag-
ning for someone who looks out, at the so-called pre-seed most comfortable with people go on to do what venture capi- funds led by women. nostic to what your background
like Mark Zuckerberg—male stage. This is especially the who are the most like them. tal was made for—to innovate One hurdle to be cleared for is,” says Mr. Bansal. “If you
and white. case in early fundraising According to funding-data and scale,” Ms. Hamilton says. things to change: The rarity of look like Mark Zuckerberg and
“So much of venture capital rounds, he says, where there provider Crunchbase, women ”I want to be financially part of high-profile tech success sto- you have a great idea, we wel-
is about comfort. Am I com- are few, if any, business metrics accounted for just 9% of U.S.- that so I can get their return.” ries from a founder who isn’t come you. If you don’t look like
based venture-capital partners Backstage also plans to a white male has reinforced Mark Zuckerberg and you’re
at the end of last year, and a start to raise $100 million by the idea among venture capi- not a white guy who went to
Funding and Gender 2015 analysis of more than the end of 2020 to fund found- talists that what they’ve been Harvard, we still welcome you.”
Venture capital raised in the U.S. by: 200 firms by then Venrock ers of other underrepresented doing is working, says Lo
Vice President Richard Kerby backgrounds, she says. Toney, founder of Plexo Capi- Ms. Koh is a Wall Street
$90 billion found that black investors tal, a new $50 million fund Journal reporter in San
made up 1.5% of the venture- Credentials fail that will be a limited partner Francisco. Email her at
80 capital industry. Yscaira Jimenez’s frustra- in seed funds run by people of yoree.koh@wsj.com.
Startups with
That may be part of the rea- tion in trying to raise money in
all male founders
son more than $68 billion in the early days of her company
70 Startups with male venture funds went to startups was typical for female entre-
and female founders founded by men in 2017, versus preneurs. She discovered that HOW THE LIST WAS COMPILED
60 Startups with $14.2 billion that went to com- having attended the type of
all female founders panies started by at least one elite college that many venture The Tech Companies to Watch list is based on nominations
woman, according to Pitch- capitalists graduated from— from technology watchers, and a data analysis of nominees
50 Book Data Inc., which tracks usually a major plus in an in- in these areas: founders’ experience, investor track record,
venture-capital dollars. Similar dustry where such connections
amount of venture capital raised, growth of workforce, and
40 recent data based on ethnicity can be the key to gaining ac-
or race isn’t available. cess to investors—wasn’t a buzz about the company. These five factors were given an
The tendency for people to surefire path to funding. equal weighting. Companies were included in the data analy-
30 be more comfortable with oth- Ms. Jimenez thought a mas- sis only if they were founded from 2013 to present and had a
ers who are most like them ter’s degree in business admin- valuation of $50 million to $500 million. Data sources in-
20 becomes less of an issue in istration from the Massachu- clude the companies, Dow Jones VentureSource, Dow Jones
funding when a company gets setts Institute of Technology Factiva and CrowdTangle. Nominations were based on an on-
bigger, Mr. Hudson says, but and an undergraduate degree line survey conducted by the Harris Poll among company ex-
10 many women and people of from Columbia University
ecutives and others who make technology purchasing deci-
color don’t get to that stage would give her the academic
because they’ve been over- credentials for fundraising to sions for businesses, as well as a survey of readers of certain
0
looked earlier on. Precursor go “fast and big” when she Wall Street Journal publications and attendees of Journal
2007 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18
Ventures is among those that started seeking outside inves- technology conferences. See the full methodology at
Note: Figures reflect angel/seed, early VC and later VC funding;
numbers for 2018 are through May 21. are trying to give those people tors in 2014 for her startup, wsj.com/techlist.
Source: PitchBook Data Inc. THE WALL STREET JOURNAL. a better shot at funding. As a LaborX, which matches job
Success Strategies of Rising VC Firms

Index Ventures and Lightspeed Venture Lightspeed part-
Ravi Mhatre of
Partners have invested in several Lightspeed Venture
ners, he says, evaluate
every prospect to de-
companies on the WSJ list Partners looks for termine whether a
“company can really
BY KATIE ROOF
Spoke, which has developed a chatbot entrepreneurs with become iconic and
for companies to handle employee IT dominant in its space.”
and human-resources requests. In ad-
‘a vision about how They look for a grow-
STARTUPS MAY have high rates of dition, Index has invested in Hollar to fundamentally ing customer base and
failure, but some venture-capital Inc., an online dollar store that was a trajectory that puts
firms have a knack for picking win- No. 1 on last year’s list.
create a new market it on a path to becom-
ners. Lightspeed Venture Partners, or meaningfully ing the market leader.
Silicon Valley mainstays like Se- Menlo Park, Calif., has stakes in two And as many
quoia Capital, Benchmark and Accel companies in this year’s Journal 25:
change it.’ startup investors are
have long commanded reputations Exabeam Inc., for security analytics; quick to point out, it is
for producing top- and Kespry Inc., an industrial drone not just about the
tier investment re- company. And it also has invested in business idea, but the personal qual-
turns over the Hollar and another company from ities of the founders. Mr. Mhatre
course of decades. Now several other last year’s list, Branch Metrics Inc., says Lightspeed spends time “trying
firms are making their way into the which helps businesses with mobile to really understand the people we
upper echelons of venture capital. app technology. should believe in and get behind.”
One of those is Index Ventures, Lightspeed has notched some no- Mike Volpi, a general partner at
based in London and San Francisco, table exits lately as well. Former Index Ventures, says the best entre-
which in recent weeks has seen sev- Lightspeed portfolio companies Nu- preneurs “have the personality to be
eral of its portfolio companies get ac- tanix Inc., Stitch Fix Inc. and Snap able to overcome long odds.” The
quired, go public or announce plans Inc. are a few of the names that most successful founders, he adds,
to go public. For one, digital-pay- went public in the past two years. are good at recruiting, leading,
ments processor Adyen BV has said Lightspeed also backed MuleSoft learning and have “a strong sense of
it is gearing up for an initial public Inc., which went public in 2017 only self-determination.”
offering in Amsterdam this month. to be acquired a year later by Sales- And the best investors provide
Index Ventures also invested in Drop- force.com Inc. for $6.5 billion. And their portfolio companies with much
box Inc. and Zuora Inc. long before there was AppDynamics Inc., which more than just a check. Venture capi-
their recent IPOs; as well as iZettle was bought by Cisco Systems Inc. for talists “have to help them through
LIGHTSPEED VENTURE PARTNERS

AB, which was acquired by PayPal $3.7 billion just hours before its im- their journey,” says Mr. Volpi. This
Holdings Inc. in May for $2.2 billion. pending public debut. can include finding and hiring the
Three of Index’s portfolio compa- Ravi Mhatre, a Lightspeed co- right executive team or “helping the
nies are on this year’s Tech Compa- founder and managing director, says company provide product market fit.”
nies to Watch list: Eero Inc., a high- he looks for entrepreneurs with “a
speed home Wi-Fi system; Nauto Inc., vision about how to fundamentally Ms. Roof is a Wall Street Journal
which makes systems to assess how create a new market or meaningfully reporter in San Francisco. She can
drivers interact with the road; and change it.” be reached at katie.roof@wsj.com.
Tales From the Startup World

ings. Which is wonderful. I’m something big. But a lot of growth or to pay dividends.
very grateful for that. But it’s founders could have gener- It also does not give voting
real different than the eight- ated wealth for themselves, rights or create a board of di-
figure number. I did not have their families and their em- rectors or give investors the
MR. FISHKIN: Maturity and the money to bootstrap this ployees. Moz’s team at that ability to replace the CEO.
experience are both missing. next company. time was small. A lot of those The plan is to grow slowly
There’s also a tremendous people would have made half and profitably over time
amount of perspective that WSJ: You still regret passing a million dollars or more. rather than seek fast growth.
startups miss out on by hav- up a $25 million offer from I have my fingers crossed
ing this monoculture. They’re marketing software company WSJ: What are you doing dif- that if this company can do
mostly white and Asian men HubSpot to buy Moz in 2011. ferently at SparkToro? well, other people can look at
from mostly middle- and up- Why do you caution busi- MR. FISHKIN: One of the big- this structure and say, “Oh
per-class families who are nesses against passing up gest things is just setting it wait. You can do that? Like,
between 20 and 35 years old. those early offers? up so that I can maintain you’re allowed to do that?”
Startups miss out on making MR. FISHKIN: There’s a men- long-term control. I put to-
things for broader groups, tality that gets amplified in gether an unusual structure Ms. Feintzeig is a Wall
because it turns out mono- Silicon Valley that founders for our investment round. It Street Journal reporter in
cultures are poor at consider- are selling out too early and allows the business to choose New York. Email her at
ing people who are not them. you should try to go for whether to reinvest in rachel.feintzeig@wsj.com.
KRISTINA KEYSER
WSJ: Why did you decide to

give up the Moz CEO role?
MR. FISHKIN: At the time I
was suffering from depres-
‘A business does not require funding, but it absolutely requires sion and getting feedback
customers,’ says Mr. Fishkin. from my leadership team
that that was having a really
adverse effect on the com-
BY RACHEL FEINTZEIG
Tough Hunting pany. Probably, in hindsight,
Moz’s 2009 fundraising efforts, it was the wrong decision.
IN 2001, Rand Fishkin by the numbers
dropped out of college and WSJ: Why?
joined his mother’s market- 40 MR. FISHKIN: It didn’t help
ing business. For seven years Introductory phone calls with the issues I was experi-
he was chief executive of the encing. And I had not con-
company, which eventually 33 sidered what should’ve been
was christened Moz and fo- First meetings a really obviously smart al-
cused on marketing software. ternative, which is to essen-
His tenure included ups 16 tially say, “Hey, I’m not step-
and downs: The company en- Second and third meetings ping out of the CEO role, but
joyed years of growth, ex- I am going to have the exec-
panded from a focus on 2 utive team report to our
search-engine optimization Partner meetings chief operating officer for at
to other marketing tools, and least the next six months,
raised $18 million in 2012 0 and I’m going to cut down
and $10 million in 2016. But Funding offers on the things that I do.”
Moz also poured time and You’re CEO, you can struc-
’ After another failed attempt
money into a software prod- ture it how you want.
uct that ultimately flopped. in 2011, Moz raised $18 million
In 2016 the company laid off in venture capital from Foundry WSJ: Is startup CEO a dream
more than a quarter of its Group and Ignition Partners job or a nightmare?
staff and refocused on SEO in 2012. MR. FISHKIN: It depends on
exclusively. Source: Rand Fishkin the person and the size of
Mr. Fishkin recently left THE WALL STREET JOURNAL. the company. For me, startup
Moz and founded a new com- CEO was a dream job from
pany, SparkToro, which it rounds of attempted fund- two employees to about 50.
says is building a software raising. I was 29 years old. I By about 90 or 100 people, it
tool that helps companies had crazy amounts of impos- became more nightmarish.
find ways to reach potential tor syndrome, freaking out
customers. He has also writ- about what am I supposed to WSJ: Why didn’t you like it
ten a book, “Lost & Founder,” wear and, “Oh my God, I as much when the company
which offers an unvarnished have acne today.” Just feel- got bigger?
look at the startup world. ing like you don’t belong and MR. FISHKIN: I really dislike
Mr. Fishkin recently spoke aren’t worthy. You’re driving when tribalism starts to
with The Wall Street Journal a rental car, you pull into form in companies. With
about what he learned while these parking lots that are your sub-50 size, people
at the helm of his first com- filled with super cars. “Oh, know your name, they give
pany. Edited excerpts follow: there’s that guy’s Lambor- you the benefit of the doubt,
ghini, and that guy’s Ferrari, they’ve worked with you
Funding vs. customers and that guy’s Bentley.” personally, you’ve probably
WSJ: What is the biggest had lunch together at least
misconception about building WSJ: What’s hard about hir- once or twice. As opposed
a startup? ing as a startup? to: “Engineering, they’re the
MR. FISHKIN: That you have to MR. FISHKIN: You sometimes worst.” I hate the work that
raise money. So many found- have a harder time seeking goes into managing that.
ers direct their efforts to out people who are willing to
building something that can work for less pay in exchange Consider that early offer
get funding rather than build- for the low odds of equity WSJ: What are the financial
ing something that can profit- turning into something. Be- realities of startup life? You
ably get customers. A busi- cause of that, many startups mentioned in the book you
ness doesn’t require funding, buy into hiring only a certain don’t own a car, for example.
but it absolutely requires cus- kind of individual. They come MR. FISHKIN: If you Google
tomers and balanced books from money already, they “Rand Fishkin net worth,”
and profitability. When you’re tend to be young, they don’t you’ll get to some website,
optimizing for fundraising as have families. You get a bit which will estimate my net
opposed to profitability, your of a monoculture as a result. worth based on the valuation
odds of success are dramati- I will not hire that way of Moz’s last round and the
cally worse. again. I don’t think those amount of stock that my wife
types of people are uniquely and I owned. That would give
WSJ: Tell me about your ap- qualified. you a very nice number,
proach to raising money at maybe an eight-figure num-
Moz. WSJ: What kind of talent do ber, which sounds really ex-
MR. FISHKIN: I did probably you think is missing in start- citing. In reality, I think we
three relatively intensive ups today? have, like, $375,000 in sav-

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