For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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DJIA 23461.94 g 101.42 0.4% NASDAQ 6750.05 g 0.6% STOXX 600 390.07 g 1.1% 10-YR. TREAS. g 5/32 , yield 2.333% OIL $57.17 À $0.36 GOLD $1,285.60 À $4.00 EURO* $1.1643 YEN* 113.32 *as of 12:18 p.m
What’s
News
Business & Finance
ome banks are shedding
S their holding-company
structure as a way to ditch
regulation by the Federal
Reserve and lower costs. A1
 Many U.S.-China deals
announced during Trump’s
summit with Xi aren’t full
contracts and may do little
to curb the trade gap. B1
 Disney disclosed new de-
tails on coming streaming
services and the Star Wars
franchise as it posted declines
in three core businesses. B1
 The SEC’s chief said initial
coin offerings in many cases
looked like securities, raising
the prospect a more aggres-
sive stance by the agency. B1
 AT&T and regulators tried
to mute tensions after dis-
agreements over the com-
pany’s proposed Time Warner
deal spilled into the open. B1
 China will give greater
access to foreign investors
in the country’s financial
sector, an official said. B6
 Outcome Health investors
said they were receiving fed-
eral subpoenas as part of a
fraud probe into the firm. B3
 Stocks fell on concerns
over the prospects for a tax
overhaul. The Dow dropped
101.42 points to 23461.94. B11
 Macy’s, Kohl’s and Nord-
strom posted mixed results,
as department stores face the
shift to online shopping. B3
 Amazon has consolidated
its physical retail and fast-
delivery operations under a
veteran Bezos lieutenant. B4
 Some on Wall Street are
crying foul over a Nasdaq
proposal they say will expose
hidden trading strategies. B10
World-Wide
 GOP tax-overhaul plans
in the House and Senate dif-
fer significantly in key areas,
leaving much to reconcile and
little time before a year-end
deadline set for passage. A1, A4
 The Trump administration
is wrestling with how closely
it should align its policies
with Saudi Arabia and how
forcefully to confront Iran. A1
 McKinsey has hired at
least eight relatives of high-
ranking Saudi officials in re-
cent years as it did consult-
ing work for the kingdom. A9
 Trump praised Xi but
pledged to tackle what he
called China’s unfair trade
practices and urged more
pressure on North Korea. A7
 Alabama’s Senate race was
rattled by allegations that
GOP nominee Moore initiated
a sexual encounter with a 14-
year-old girl decades ago. A3
 The Justice Department
is seeking to reach a plea deal
in its criminal probe of Mana-
fort’s former son-in-law. A6
 The acting DHS chief re-
buffed the wishes of the White
House when she refused to
end humanitarian protec-
tions for some immigrants. A2
 Early sign-ups and traf-
fic in the ACA’s annual
open-enrollment period ap-
pear strong, officials say. A3
 NATO has failed to meet
a U.S. goal for troops to de-
ploy in Afghanistan. A9
 The U.S. will seek Rus-
sia’s approval for 20,000
peacekeepers in Ukraine. A7
 The Texas church where a
gunman killed 26 people won’t
reopen, the pastor said. A6
CONTENTS
Business News.. B3,6
Crossword............... A11
Heard on Street. B12
Life & Arts....... A11-13
Mansion.............. M1-13
Markets............. B11-12
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * * FRIDAY, NOVEMBER 10, 2017 ~ VOL. CCLXX NO. 112
House, Senate GOP Split on Taxes
Overhaul plans diverge
on corporate, estate
and income tax, posing
hurdles for path forward
BY RICHARD RUBIN
Senate Republicans’ pro-
posal to rewrite the tax code
breaks significantly with the
one crafted by the House GOP,
confronting party leaders with
dozens of differences to recon-
cile and little time before the
year-end deadline they have
set to pass it.
The Senate plan, released
late Thursday, contrasts with
the House version in key areas,
including the timing of a cor-
porate tax-rate cut, the num-
ber of individual tax brackets,
the details of international tax
rules, and the particulars of
estate-tax changes.
Despite the differences, Re-
Trump China Visit Comes to an End...Next Stop, Vietnam
NG HAN GUAN/PRESS POOL/AFP/GETTY IMAGES
GOODBYE: Students waved U.S. and Chinese flags on Thursday after first lady Melania Trump and China’s first lady Peng Liyuan visited
their school in Beijing. President Donald Trump and China’s leader Xi Jinping head to a regional economic meeting in Vietnam Friday. A7
Snap’s Splashy IPO Stifled Its Doubters
Deal participants had concerns about revenue, competition—issues now gutting the stock price
Snap Inc. kicked off the planning for
its hotly anticipated initial public of-
fering last year with a brief address
from its co-founder, Evan Spiegel, ac-
companied by a series of nonnegotia-
ble conditions.
Snap wouldn’t provide financial
guidance on expected earnings. It
would bill itself as a camera company.
And it would sell shares with no voting
rights, leaving the co-founders with
near-total control of the company.
Present at the October 2016 meeting
Banks Shed the Fed
As Oversight Costs Rise
BY CHRISTINA REXRODE
Bank of the Ozarks wanted to
cut costs, so it ditched the Fed.
The Little Rock, Ark., bank
was regulated by the Federal
Reserve, the Federal Deposit In-
surance Corp., a state banking
agency and others. It figured
one way to reduce expenses
would be to remove a layer of
oversight.
So, the bank in June shed its
holding-company structure, an
umbrella corporation regulated
by the Fed. With that gone, the
Opinion.............. A15-17 Fed was out of the picture.
Sports....................... A14
Streetwise................. B1 “We didn’t really need to be
Technology............... B4 regulated by both,” said Chief
U.S. News......... A2-4,6 Executive George Gleason, re-
Weather................... A11
World News........ A7-9
ferring to the FDIC and the Fed.
Although the bank hasn’t de-
>
tailed the savings, it expects to
reduce administrative, account-
ing and regulatory costs.
Cutting costs holds obvious
appeal for banks at a time when
tepid economic growth, super-
low interest rates and stringent
regulation have kept profitabil-
publicans say they are confi-
dent they can prevail in cut-
ting taxes by about $1.5 trillion
over a decade, aided by an ad-
vertising blitz from business
groups and conservatives and
motivated by the political im-
perative to rack up a major
legislative victory ahead of
next year’s midterm elections.
House and Senate Republi-
cans are trying to refine and
pass their respective bills in
the next few weeks, needing to
reconcile their differences
while operating with slim ma-
jorities and working against
the backdrop of rough election
Cut and Deal
 House Republicans in high-
tax districts face hurdle... A4
 Groups spend millions to
promote bill....................... A4
 Stocks falter on worries
over tax legislation....... B11
By Corrie Driebusch,
Maureen Farrell
and Georgia Wells
near Snap’s main office in Venice, Ca-
lif., were underwriters from about a
half dozen of Wall Street’s largest
firms, who had gathered in anticipa-
tion of the biggest U.S. tech initial pub-
lic offering in years. Snap’s presenta-
tion damped some bankers’
enthusiasm. But it didn’t stop them
ity in check. But dollars and
cents aren’t the only driver of
decisions like Bank of the
Ozarks’: Changes in U.S. bank-
ing laws in recent decades have
limited the advantage of the
holding-company structure for
many firms, and the pro-busi-
ness shift in Washington has
helped embolden some bankers.
While some skeptics of the
move worry about banks shed-
ding a layer of oversight—po-
tentially enabling them to en-
gage in more risky lending or
other activities—bank execu-
tives counter that they will still
be under the scrutiny of the
FDIC.
Even some regulators back
such moves. “Banks should be
able to structure themselves in
whatever way they want,” Keith
Noreika, acting head of the Of-
fice of the Comptroller of the
Currency, one of the main fed-
eral bank regulators, told The
Wall Street Journal. “Holding-
company form is an anomaly
Please see FED page A2
defeats this week that make
some lawmakers more wary of
disturbing a restive electorate.
“We still have a lot more
work, but we’re really excited,”
said Gary Cohn, President Don-
ald Trump’s chief economic
adviser.
The Senate bill, according
to Senate Finance Committee
aides, would delay until 2019 a
cut in the corporate tax rate to
20%. It also would double the
estate-tax exemption to a max-
imum of about $11 million per
person, but it would leave the
40% tax itself in place for es-
tates above that level. The
Senate bill also sets a 38.5%
top tax rate for individuals and
preserves a seven-bracket
structure. The top rate would
start at $1 million for married
couples and $500,000 for indi-
viduals.
The House bill, by contrast,
would cut the corporate tax
Please see SENATE page A4
from pushing ahead.
Interviews with dozens of people
close to Snap’s listing, including bank-
ers, investors, analysts and current and
former Snap employees, show that
many had concerns at the time, espe-
cially about the growth prospects for
the maker of the disappearing message
app Snapchat. But, in a fever for a big
listing—and with about $98 million in
fees at stake—they allowed Snap to set
the terms. The shares listed on March
INSIDE
WHEN
ART MAKES
THE HOME
MANSION, M1
DISNEY
IS HIT BY
CABLE WOES
BUSINESS & FINANCE, B1
WSJ.com
Reconcile This
Republicans’ House and Senate tax plans both lower the corporate
rate to 20%, nearly double the standard deduction and eliminate
personal exemptions and the alternative minimum tax. But they
differ significantly in other ways.
Top individual rate
Number of individual
tax brackets
Estate tax
Corporate-rate reduction 2018
to 20% takes effect
Top pass-through rate
State/local deduction
Medical expense
deduction
Student-loan interest
deduction
Child tax credit
Sources: U.S. House and U.S. Senate
Please see SNAP page A10
Selling a House to Millennials?
Prepare to Stage a Photo Shoot
Agents enlisted to help concoct posts for
social media; Ms. Cabibbo goes airborne
BY EMILY GLAZER
Just as he was about to
close a sale, Colorado real-es-
tate broker Marvin Martinez
found himself coping with a
crisis. A beauty crisis.
His client, in her 20s, knew
the broker would post a photo
on the “Colo-
rado First Time
Home Buyer”
Facebook page,
which now has
85,000 follow-
ers.
The problem: First-home
She needed fake
eyelashes. And not just any
fake eyelashes; a specific set
she had at home.
Mr. Martinez offered to
make a trip to Walgreens but
was rebuffed. The client went
home, changed her outfit, got
her own fake lashes and about
HHHH $4.00
House bill Senate bill
39.6%
Four
38.5%
Seven
Expands exemption Expands exemption
to about $11 million a to about $11 million
person, repeals in 2025 a person
2019
25% with caveats Above 30%
Preserves for property Eliminates
tax up to $10,000
Eliminates Preserves
Eliminates Preserves
$1,600 per child $1,650 per child
THE WALL STREET JOURNAL.
Saudi
Tensions
Complicate
U.S. Policy
BY DION NISSENBAUM
WASHINGTON—The Trump
administration is wrestling
with how closely it should align
its policies with longtime ally
Saudi Arabia and how force-
fully to confront their mutual
foe Iran as tension between the
two Middle East rivals rises
sharply, current and former ad-
ministration officials said.
On Thursday, Riyadh told
Saudi citizens to immediately
leave Lebanon, escalating a
dispute over the influence of
Hezbollah, which has close ties
with Tehran. The moves came
days after Saudi Arabia shot
down what the U.S. said was
an Iranian-supplied ballistic
missile fired by Houthi rebels
in Yemen, which the kingdom
said was tantamount to an act
of war by Iran. Iran denies
that it arms the Houthis.
The White House backed
Saudi Arabia and denounced
Iran over the missile launch, and
President Donald Trump has
also thrown his support behind
Riyadh over a sweeping internal
crackdown that the kingdom
launched over the weekend.
But there are differing views
in the Trump administration
about Washington’s evolving
efforts to weaken Iran’s influ-
ence across the Middle East,
current and former Trump ad-
ministration officials said.
“There is no consensus view
within the U.S. government
over how to actually execute a
strategy against Iran,” one for-
mer Trump administration of-
ficial said. “In fact, there is
significant division about how
Please see IRAN page A9
 McKinsey hired Saudi
officials’ children...................... A9
i i i
an hour later, emerged for the
shoot, soon after signing the
papers.
“We just waited, that’s all,”
Mr. Martinez, 54 years old,
said. “What else could we do?”
As millennials buy homes in
greater numbers, new wrinkles
are emerging in an age-old
process. Gone
are the days of
popping a
champagne cork
once the pur-
chase and mort-
gage forms are
share photo signed. Today,
more first-time
buyers rush to share their
newfound status as home-
owners across social media.
That has led some to craft
elaborate photo shoots in or
outside a first home. These of-
ten feature props such as
Please see HOME page A10
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Friday, November 10, 2017
DHS Chief Resisted White House
BY ALICIA A. CALDWELL
AND LAURA MECKLER
The acting chief of the De-
partment of Homeland Secu-
rity rebuffed the wishes of the
White House this week when
she refused to end humanitar-
ian protections for immigrants
living in the U.S., people famil-
iar with the deliberations said.
At issue is the Temporary
Protected Status (TPS) program,
which gives safe harbor in the
U.S. to people from a range of
countries affected by natural di-
sasters and other strife.
Under past administrations,
programs for multiple countries
were routinely renewed. For
three Central American coun-
tries, the renewals enabled
hundreds of thousands of peo-
ple to live in the U.S. with the
government’s permission for
the better part of two decades.
White House officials were
pushing Homeland Security to
announce this week that they
were ending those protections
for Honduras and Nicaragua,
people familiar with the dis-
Hawaii Boat Wreck Becomes an Object of Curiosity—and Frustration
CALEB JONES/ASSOCIATED PRESS
OFFSHORE EYESORE: A paddler passed by the Pacific Paradise, a commercial fishing vessel that ran aground about a month ago. The fishing boat was transporting
foreign workers to Hawaii’s fishing fleet when it smashed into a shallow reef off the shores of Waikiki. Efforts to remove the boat have failed so far.
FED
Continued from Page One
throughout the world.”
Bank of the Ozarks, with
roughly $21 billion in assets, is
the biggest company in recent
years to make such a change. Its
move has stirred interest
among small banks looking to
save money at a time when loan
growth has often been hard to
come by and superlow interest
rates are squeezing profits.
BancorpSouth Bank in Tu-
pelo, Miss., completed a similar
conversion last week. “We’re
spending time, money and ef-
fort with the Fed that we really
don’t have to,” said CEO Dan
Rollins. “Keep it simple.”
Others are considering the
strategy, too. On his bank’s
earnings call last month, New
York Community Bancorp Inc.
finance chief Thomas Cangemi
said, “Do we have to stay as a
bank holding company?” Chang-
ing that, he added, could be “an
option going forward.”
“This is taking regulatory re-
lief into their own hands,” said
V. Gerard Comizio, a partner at
law firm Fried, Frank, Harris,
Shriver & Jacobson LLP, who
said he has heard from dozens
of banks interested in the tran-
sition.
It is also a way for banks to
sidestep things such as Fed-ad-
ministered stress tests, even if
they surpass a $50 billion asset
threshold that usually triggers
such oversight. Stress tests are
costly in terms of both time and
staffing.
San Francisco-based First
Republic Bank, for example, has
grown to $84 billion in assets
from $33 billion five years ago.
Although it crossed the $50 bil-
lion line, it doesn’t undergo Fed
stress testing. First Republic ex-
ecutives declined to comment
cussions said.
On Monday, the day the de-
cision was due, White House
Chief of Staff John Kelly re-
peatedly telephoned acting
Homeland Security Secretary
Elaine Duke and pressed her
to end both programs immedi-
ately, according to one of the
people. Homeland Security ad-
viser Tom Bossert pressed for
the same over the weekend,
this person said.
A White House official said
the point of Mr. Kelly’s call
was to get Ms. Duke to make a
decision, saying she was de-
laying too long.
“As with many issues, there
were a variety of views inside
the administration on a policy.
The acting secretary took those
views and advice [on] the path
forward for TPS and made her
decision based on the law,” said
Jonathan Hoffman, spokesman
for Homeland Security.
Mr. Hoffman said Mr. Kelly
was returning a call from Ms.
Duke when they discussed the
matter and that it wasn’t un-
usual for them to speak ahead
No Holds Barred
The biggest U.S. banks and thrifts operating without a holding-
company structure, by total assets at end of the third quarter
First Republic Bank
Signature Bank
Sallie Mae Bank
Bank of the Ozarks
BancorpSouth Bank
BMW Bank of North America
TowneBank
Dollar Bank Federal Savings Bank
Farmers & Merchants
Bank of Long Beach
Opus Bank
Source: S&P Global Market Intelligence
but have talked favorably about
their structure in calls with ana-
lysts and investors. “We keep it
very, very simple,” CEO James
Herbert told an industry confer-
ence in late 2015. “We don’t
even have a holding company.”
Such moves have caused
some concern that banks could
shop for more lenient regula-
tors, engaging in regulatory ar-
bitrage. Bank of the Ozarks and
other firms counter that the
FDIC isn’t a lenient regulator.
The FDIC and Federal Reserve
don’t have an official position
on holding-company changes.
New York-based Signature
Bank is another lender that
doesn’t have a holding com-
pany. Although at $41 billion in
assets it hasn’t crossed the $50
billion mark, executives note
the benefit of a streamlined
structure. “We’re so heavily reg-
ulated to begin with—why
would you add on to that?” said
Executive Vice President Eric
Howell.
Granted, banks that engage
U.S. NEWS
of a decision.
The Trump administration
had already signaled it wanted
the protections canceled as
they came up for review. Mr.
Kelly, when he was Homeland
Security secretary, offered a
limited extension of the same
protective status for Haitians
earlier this year and advised
immigrants protected by the
program to prepare to leave.
Mr. Kelly also signaled that
protections for people from
other nations were likely to end
as well.
The next round of decisions
for at least two Central Ameri-
can countries rested with his
replacement, Ms. Duke, who
refused to succumb to White
House pressure, two people fa-
miliar with the matter said.
“She’s not the most popular
person over at the White
House,” said one person famil-
iar with the debate.
The other person said, “The
White House came down on
her really hard” before and af-
ter the decisions.
Immigrant advocates re-
$84.3 billion
41.3
20.9
20.8
14.8
9.9
8.6
8.1
7.5
7.3
THE WALL STREET JOURNAL.
in certain riskier activities, such
as securities underwriting, must
have a holding company to keep
those units separate from the
one holding bank deposits. For
CORRECTIONS  AMPLIFICATIONS
Tencent Holdings Ltd. re-
ported first-half revenue of $16
billion, up 57% from a year ear-
lier, and analysts expect full-
year revenue of $35 billion. A
Page One article Thursday
about the Chinese internet
company incorrectly gave Ten-
cent’s revenue as $122 billion
and the analyst forecast as
$274 billion, which are the fig-
ures in Hong Kong dollars. It
also incorrectly said revenue
growth exceeded 60%.
Noah Holcombe, who died
in Sunday’s Texas church
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
* *** THE WALL STREET JOURNAL.
would end, but the roughly
5,000 immigrants in the U.S.
under the program would have
until January 2019 to either
ANDREAS SOLARO/AFP/GETTY IMAGES
leave the country or apply for
another immigration status if
they are eligible.
Ms. Duke concluded condi-
tions in the country were bet-
ter than they were in 1998,
when Hurricane Mitch ravaged
the region, according to a state-
ment from Homeland Security.
On Honduras, Ms. Duke
Elaine Duke kept protections. opted not to make a decision,
a move that automatically ex-
sponded to news of the White tends the program’s protec-
House pressure with alarm, tions for another six months.
saying there should be no po- Homeland Security said Ms.
litical influence over the com- Duke wanted more time to as-
ing decisions about other pro- sess conditions there.
tective programs. The new secretary will have
“Those DHS decisions to decide the fate of that pro-
should be based on the facts, gram next spring.
based on the statutes, but not A similar dynamic is at play
based on undue political inter- on decisions regarding El Sal-
ference,” said Frank Sharry, vador and Haiti, one of the
executive director of the advo- people familiar with the discus-
cacy group America’s Voice. sion said. A decision on Haiti is
On Monday, Homeland Se- due this month, and the admin-
curity announced that the pro- istration must decide on El Sal-
tected status for Nicaragua vador by early January.
instance, J.P. Morgan Chase &
Co. and Bank of America Corp.
wouldn’t be able to shed their
holding companies.
ness across state lines. Banks
today no longer need a holding
company to do so.
Other banks created holding
Also, banks without a hold- companies to get more flexibil-
ing-company structure have less ity to count various forms of
flexibility to invest in other capital toward their regulatory
companies. That could be a benchmarks. Post-financial-cri-
turnoff for those that want to sis regulatory changes curbed
buy stakes in financial-technol- that benefit.
ogy firms, said Chip MacDonald, Eliminating the holding-com-
a partner at law firm Jones Day pany structure holds other ben-
who is working with banks con- efits. A holding company gener-
sidering such a move. ally requires a separate set of
Smaller community banks financial results, its own board
also can hold higher levels of meetings and oversight of
debt if they operate under hold- transactions between the hold-
ing companies, which can help ing company and the bank.
with mergers. Plus, banks, unlike bank
A holding company is essen- holding companies, don’t file
tially a parent organization for quarterly and annual reports
a bank and its related entities, with the Securities and Ex-
and about 80% of U.S. banks change Commission. Instead
and thrifts operate under this they file with bank regulators.
structure. But in recent years, Mr. Gleason described shed-
the benefits from such an ar- ding Bank of the Ozarks’ hold-
rangement have shrunk while ing company the way he shed
regulatory costs have risen. an unused lake house:.
Many banks adopted the “I got rid of it, too,” he said.
holding-company structure in “We hadn’t used it for anything
the 1980s so they could do busi- for years.”
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
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Page One article in some edi-
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Judge Lets
States Sue
To Keep
‘Dreamers’
BY JOE PALAZZOLO
New York and 15 other
states can sue President Don-
ald Trump to prevent him
from rescinding legal protec-
tion for hundreds of thousands
of immigrants who were
brought to the U.S. illegally as
children, a federal judge in
Brooklyn ruled Thursday.
The ruling by U.S. District
Judge Nicholas Garaufis
amounted to an early victory
for the states, though it may
ultimately have little bearing
on whether their legal chal-
lenge succeeds.
The lawsuit alleges that the
president’s decision to end the
program was motivated, at
least in part, by discrimina-
tion, in violation of the U.S.
Constitution’s promise of
equal protection under the
law. Judge Garaufis’s ruling es-
tablished only that states and
the District of Columbia have
traction to bring most of their
claims.
Federal government lawyers
had argued the states would be
“incidentally” harmed, at
most, by the cancellation of
the five-year-old program,
which shields about 800,000
immigrants from deportation
and grants them work permits,
Justice Department lawyers
said in court briefs.
Judge Garaufis ruled that
the states “amply” showed
that Mr. Trump’s decision to
end the program, Deferred Ac-
tion for Childhood Arrivals,
Judge disagrees with
U.S. position that
ending DACA won’t
harm the 16 states.
would harm the states in their
capacity as employers and op-
erators of colleges and univer-
sities.
Washington state, for in-
stance, said it employed DACA
recipients and would have to
hire and train new workers if
their work authorization were
revoked.
The Justice Department
continues to maintain that an
orderly wind-down of DACA is
not judicially reviewable, an
agency spokesman said Thurs-
day. Agency lawyers had said
in court papers that the rescis-
sion of DACA amounts to a
“classic exercise of enforce-
ment discretion” and denied
any discriminatory motivation.
Attorney General Jeff Ses-
sions, who said at a September
news conference that the pro-
gram would be phased out, ar-
gued DACA wouldn’t survive a
threatened legal challenge
from Texas and others, be-
cause the Obama administra-
tion overstepped its authority.
Judge Garaufis flipped that
rationale in his ruling Thurs-
day. “Defendants offer no con-
vincing reason why states
should have standing to chal-
lenge the DACA program but
not to challenge the decision
to end that program,” Judge
Garaufis wrote.
The federal government
won some of the argument.
Judge Garaufis threw out
claims by the states that the
federal government failed to
give DACA recipients adequate
notice of the program’s de-
mise. The states are bringing
their case alongside DACA re-
cipient Martin Batalla Vidal.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. * * * * Friday, November 10, 2017 | A3

U.S. NEWS

©T&CO. 2017
Moore Faces Sex Allegation
Republican Senate
nomineedeniesclaims
ofyears-agoencounters BREAK THE ICE
TIFFANY CELEBRATION® RINGS
withteenagegirls
BY JANET HOOK
AND NATALIE ANDREWS
Alabama’s special election
for a U.S. Senate seat was rat-
tled Thursday by allegations
that Republican nominee Roy
Moore initiated a sexual en-
counter with a 14-year-old girl
several decades ago, when he
MARVIN GENTRY/REUTERS

was 32.
The allegations surfaced in a
report in the Washington Post
just one month before Alabama
voters are set to hold a special
Senate election to choose be-
tween Mr. Moore—an evangeli-
cal conservative who is a hero Alabama Republican Roy Moore, shown in September, is set to run against Democrat Doug Jones.
of the religious right—and Dem-
ocratic candidate Doug Jones. rado, chairman of the National figures—including men in the would have surfaced before
The Post article also quoted Republican Senatorial Commit- media and entertainment in- now in Mr. Moore’s long ca-
three other women who said tee, said: “The allegations dustries—has become a matter reer, including as chief justice
Mr. Moore had pursued them against Alabama Senate candi- of intense scrutiny. of the state Supreme Court.
when they were ages 16 to 18 date Roy Moore are deeply The accounts by all four Ms. Corfman couldn’t im-
and he was in his early 30s and troubling.” He added: “If these women were on the record. mediately be reached for com-
an assistant district attorney. allegations are found to be The woman who said she was ment. A family member of Ms.
Mr. Moore denied the alle- true, Roy Moore must drop out 14 when she encountered him, Corfman’s reached by phone
gations, calling it a “a political of the Alabama special Senate Leigh Corfman, described him said “the story as we know it
attack” by Democrats. Polls election.” bringing her to his house, re- is completely accurate.” He
show Mr. Moore leading in the However, Sen. John Cornyn moving most of their clothing said he had heard the account
conservative state’s race to fill (R., Texas), one of five sena- and guiding her hand to touch from her and added, “this hap- 800 843 3269 | TIFFANY.COM
the seat once held by Jeff Ses- tors who have endorsed Mr. him through his underwear. pened, this is not fake news.”
sions, who left the Senate to Moore, said he believes in a Moore campaign chairman John Bennett, deputy chief
become attorney general. “presumption of innocence un- Bill Armistead called the arti- of staff of the Alabama secre-
Several Republican sena- til proven guilty.” cle “the very definition of tary of state office, said it was
tors—including Senate Major- In a statement to the Post, fake news and intentional def- too late to drop or change a
ity Leader Mitch McConnell Mr. Moore said: “These allega- amation.” name on the ballot for the Dec.
(R., Ky.)—said if the article tions are completely false and “Judge Roy Moore has en- 12 election. Mr. Bennett said if
were true, Mr. Moore should are a desperate political attack dured the most outlandish at- the state party withdrew its
abandon his campaign. by the National Democrat tacks on any candidate in the support from Mr. Moore or if
Mr. McConnell, who sup- Party and the Washington Post modern political arena, but he withdrew as a candidate, the
ported Mr. Moore’s opponent on this campaign.” this story in today’s Washing- votes cast for his line on the
in the GOP primary, as did Senate Minority Leader ton Post alleging sexual impro- ballot wouldn’t be counted
most Senate Republicans, Chuck Schumer (D., N.Y.) de- priety takes the cake,” Mr. Ar- when the results were certified.
spoke out just hours after the clined to comment. mistead said. —Kristina Peterson
story posted. The accusations surfaced as He argued that if any of the and Byron Tau
Sen. Cory Gardner of Colo- sexual misconduct by public allegations had been true, they contributed to this article.

Health-Care Fallout Stings GOP

BY STEPHANIE ARMOUR According to an October
Sticker Shock poll by The Wall Street Journal
WASHINGTON—The Repub- Average change in premium cost on ACA marketplaces next year and NBC News, 50% of Ameri-
licans are losing their seven- for a 40-year old single individual not eligible for federal aid. cans would blame Republicans
year political advantage on if health-care costs rise and
health care, this week’s election people lose coverage, while
results suggest, a shift that af- Bronze 37% would blame Democrats.
fects everything from candi- “Trump had that executive
Silver
dates’ campaign messages to order on health care, and I
lawmakers’ policy choices to Gold
think it’s made it worse for
the level of enrollment for the us,” said Dorie Lawson, of
Affordable Care Act. 0% 10% 20% 30% 40% Sheridan, Wyo. Ms. Lawson re-
Republicans have won na- Source: Kaiser Family Foundation THE WALL STREET JOURNAL. cently learned her health in-
tional and state elections for surance premiums would jump
seven years by attacking the crats have countered that it has The Democratic wins make by 60% next year to nearly
ACA. But this week, Virginia expanded insurance to millions it more difficult for Republi- $3,000 a month, and she said
voters cited health care in exit more Americans, but many also cans to revive plans to topple she is unsure how she will pay
polls as a major reason for de- say the law has problems. the health law and could put for it.
livering the governorship to This year, GOP lawmakers pressure on some GOP law- Many of the roughly 8.7 mil- CLASSIMA Starting at
Democrat Ralph Northam, and failed to repeal the ACA after makers who have allied them- lion lower-income people who Collection $990
Maine residents voted deci- years of promising to do so, selves with President Donald receive subsidies will see their
sively to expand Medicaid. frustrating their supporters, Trump’s actions rolling back financial-assistance rise to off-
The fallout was immediate, while polls show their alterna- parts of the law. set premium increases.
as congressional Republicans tives were unpopular among Mr. Trump, for his part, has But the roughly seven mil-
deferred their plans to repeal centrists. begun pointing the finger at lion middle-income consumers Styles for Him & Her / Free Engraving
the ACA requirement that most Health care helped drive Democrats. “As usual, the who make too much to get
Americans have health insur- Democratic election wins be- ObamaCare premiums will be subsidies or are in plans that www.baume-et-mercier.com
ance. yond Virginia this week. In up (the Dems own it), but we aren’t eligible for the aid may
Sign-ups for the ACA next Washington state, Manka Dhin- will Repeal & Replace and see their premiums jump.
year appear strong, with more gra won a special election seat have great Healthcare soon af- Republicans say that is be-
than 600,000 people selecting to the state Senate while sup- ter Tax Cuts!” he tweeted re- cause the ACA isn’t working
plans through a federal web- porting the ACA, Medicaid ex- cently. and insurers are fleeing the
site, the Department of Health pansion and requiring insurers “If Republicans hadn’t got- market.
and Human Services reported to cover birth control. ten the message yet, voters Democrats say the GOP is
Thursday. This doesn’t mean Demo- made it perfectly clear last driving up premiums by under-
Republicans have long ar- crats have a clear edge on night that they reject the mining the ACA and creating
gued that the ACA, often called health care heading into the deeply harmful partisanship uncertainty.
Obamacare, limits choice, im- 2018 midterms. But it is far less we’ve seen on health care,” —Anna Wilde Mathews
poses burdensome regulations clear that Republicans have Sen. Patty Murray (D., Wash.) and Louise Radnofsky
and drives up premiums. Demo- one. said Wednesday. contributed to this article.

Pace of Sign-Ups Strong at ACA Insurers

BY ANNA WILDE MATHEWS Ohio market for CareSource, Nov. 1 through Nov. 5, Some insurers remain wor-
which sells ACA plans in four 2016—415,512 people selected ried that overall ACA-plan en-
Heading into the second states. “It doesn’t matter what plans through HealthCare.gov, rollment for 2018 will ulti-
week of the Affordable Care the story line is, it’s drawing according to publicly available mately drop, partly because of
Act’s annual open-enrollment attention to the marketplace.” federal data. steep premium increases in
period, early sign-ups and In the first four days of State ACA exchanges in many places.
traffic appear strong, accord- ACA open enrollment, which Washington, Idaho and New This year the increases are
ing to industry and govern- started Nov. 1, 601,462 people York, which are separate from being implemented in a way
ment officials, with more than selected insurance plans for HealthCare.gov, reported sig- that creates a bifurcated mar-
600,000 people selecting plans next year using the federal nificant increases in traffic on ket, because of the details of
through the federal Health- marketplace, HealthCare.gov, their sites compared with last the law and a recent Trump
Care.gov website. year. In California, sign-ups on administration action.
ACA insurers including the first day were “substan- Those who don’t get federal
Highmark Health, CareSource, tially higher than we’ve ever premium subsidies—available
Independence Blue Cross and
After initial week, had before,” said Peter V. Lee, to a person making up to
Sanford Health Plan said they enrollments under executive director of Covered roughly $48,000—might feel
were so far recording signifi- California, the state’s ACA ex- the full brunt of rate in-
cantly increased sign-ups com-
Affordable Care Act change. But, he said, “the real creases. “They may choose not
3 D AYS A U TO M AT I C
ACC I A I O - 4 5 M M

pared with last year’s enroll- are up from last year. numbers that matter” come to enroll because the plans
( R E F. 674 )

ment period. But companies later. Healthier consumers, have become too expensive,”
cautioned it wasn’t clear that who are important to the sta- said Rick Notter, an executive
the early surge will be borne bility of the insurance market, at Blue Cross Blue Shield of
out in the final enrollment according to the Trump ad- often wait to enroll. Michigan.
numbers, which likely won’t ministration. Of those, 137,322 Early ACA consumer vol- On the other side, many
be known until next year. counted as new customers, be- ume might also partly reflect people with lower incomes,
Insurers suggested the cause they won’t be in an ACA the shorter open-enrollment who are eligible for subsidies,
early influx was partly sparked plan at the end of 2017. The period this year compared can find a growing array of
by the spotlight on the ACA federal insurance exchange is with prior years, said Alexis plans for which they will pay
amid Republican efforts to re- used by 39 states. Miller, a Highmark senior vice little or nothing in premi-
700 FIFTH AVENUE & 55TH STREET.
peal or change it. “You The pace appears substan- president. Insurers have been ums. The “free” plans look like NEW YORK. TEL. 212 397 9000
couldn’t have paid for that tially faster than it was a year pressing to get consumers to “a real driver for consumers,”
kind of advertising,” said ago. In the first five days of shop early. In most states, en- said Brian Lobley, an executive
Steve Ringel, president of the last year’s open enrollment— rollment will end on Dec. 15. at Independence Blue Cross.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A4 | Friday, November 10, 2017 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

Politics Complicate GOP Tax Vote WASHINGTON

The party’s plan may
pose a burden for
House Republicans
from high-tax areas
BY KRISTINA PETERSON
AND PETER NICHOLAS
WASHINGTON—House Re-
publicans, surprised by Demo-
crats’ dominance in this week’s
elections in Virginia and New
Jersey, have pinned their hopes
of retaining the House majority
next year on passing a tax-code
overhaul. But the details of the
tax legislation could create new
political burdens for some of
the most vulnerable GOP in-
cumbents.
The tax bill hits constituents
hardest in areas of the country
that tend to have higher taxes.
These blue-leaning states also
happen to be home to many of
the 23 congressional districts
held by Republicans where
Democratic nominee Hillary
Clinton won last fall.
Those GOP incumbents are
targets for Democrats, who
need to win a net of 24 seats to
retake control of the chamber.
Democrats on Tuesday were
able to test their strategy in
Virginia’s state legislative races.
In races for the House of Dele-
gates, they targeted 17 Republi-
cans serving in state districts
Mrs. Clinton won. They de-
feated 14 of them, and picked
up one other seat. They are
awaiting recounts in two races,
putting them tantalizingly close
to regaining control of the state
House.
Now, Democrats are hoping
to repeat that performance in
next year’s midterms.
Nationally, Republicans rep-
resenting high-tax areas “are
caught between a rock and a
hard place because their base
wants them to produce a tax
bill, but what’s in that tax bill
will matter to the voters in No-
vember,” said Rep. Gerry Con-
nolly (D., Va.).
Democrats face their own
political challenges on the tax
bill. Some Democrats in dis-
tricts won last fall by Donald
Trump are likely to face constit-
uents who back the GOP tax bill.
For Republicans in high-tax
states, the two most problem-
atic components of the House
GOP tax bill are its cap on the
mortgage-interest deduction on
loans of up to $500,000, down
from the current $1 million
limit, and the elimination of the
tax deduction for state and lo-
cal income taxes. GOP leaders
want to end those tax breaks to
help offset the cost of lowering
many individual income tax
rates and the corporate tax rate.
But for more affluent con-
stituents of high-tax states, in-
cluding New York, New Jersey
and California, the changes
could leave them paying more,
even after GOP leaders agreed
to restore the property tax de-
duction up to $10,000. Those
constituents are more likely to
itemize their deductions and
own homes requiring more than
a $500,000 loan.
WIRE
the Senate version of the tax
Rock and a Hard Place bill, where the property tax de- VOTER FRAUD
House Republicans in the 23 districts that voted for Democrat Hillary duction is fully eliminated. “I
Clinton last year will vote next week on a tax bill which would cut the certainly don’t favor that,” he Panel Member Sues,
state and local income and sales tax deduction, which many of their said Thursday. Alleges Exclusion
constituents currently use. House GOP leaders can af-
ford to lose no more than 22 A member of President Don-
State District Representative Percent of returns with deduction GOP votes when the bill comes ald Trump’s commission on voter
to the floor next week if no fraud sued in federal court on
N.J. 7 Leonard Lance 53%
Democrats support it. That’s Thursday, alleging that the com-
Va. 10 Barbara Comstock 52
sharpened their pursuit of Re- mission is violating federal law
Ill. 6 Peter Roskam 49
publicans like Messrs. Katko by excluding him and others
Calif. 45 Mimi Walters 46
and Lance. from participating and refusing
Pa. 7 Pat Meehan 45
House Speaker Paul Ryan (R., to provide documents available
Pa. 6 Ryan Costello 42
Wis.) said that taken in totality, to other members.
Calif. 48 Dana Rohrabacher 42
the bill will benefit many con- The lawsuit, filed by Maine
Calif. 49 Darrell Issa 42
stituents of those competitive Secretary of State Matthew Dun-
Calif. 25 Steve Knight 42
districts, since it lowers many lap in Washington, D.C., claims vi-
Calif. 39 Ed Royce 40
rates and nearly doubles the olations of the Federal Advisory
Kansas 3 Kevin Yoder 38
standard deduction. But he ac- Committee Act. It asks the court
Colo. 6 Mike Coffman 37
Wash. 8 Dave Reichert
knowledged the decision to re- to compel the commission to
37
Calif. 10 Jeff Denham
store the property tax deduc- hand over all documents he has
30
N.Y. 24 John Katko
tion was a response to those requested, share all future docu-
30
Ariz. 2 Martha McSally
concerns. ments, include him in all commu-
29
Texas 7 John Culberson
“Hundreds of billions of dol- nications and prevent the release
28
Texas 32 Pete Sessions
lars have been added back to of any final report until he has
27
Fla. 26 Carlos Curbelo
the bill to accommodate those had a chance to review it.
26
Minn. 7 Erik Paulsen
very legitimate concerns so that “My goal in filing this lawsuit
25
Fla. 27 Ileana Ros-Lehtinen
people are benefiting,” Mr. is to bring the commission into
23
Texas 23 Will Hurd Ryan said Thursday. full compliance with FACA,
20
Calif. 21 David Valadao Still, Rep. Darrell Issa (R., which would allow me and all of
17
Calif.) came out against the bill. my fellow commissioners to ful-
Source: Tax Policy Center analysis of IRS data THE WALL STREET JOURNAL. “It has an awful lot of tax in- fill our roles as full, participating
creases on some to pay for tax members and provide a mean-
“It seems like the high-tax trict, more than 53% of tax re- cuts on others, and to me, that’s ingful report to the President
states are paying more than turns take advantage of the de- not consistent with Republican upon concluding our work,” Mr.
their fair share,” said Rep. John duction, the third highest of all values,” he said. Dunlap said in a statement.
Katko, a New York Republican congressional districts, accord- Bill Stepien, the White House Kansas Secretary of State
in a district won by Mrs. Clin- ing to the Tax Policy Center. political director, said in an in- Kris Kobach, a Republican who
ton. Mr. Katko said he is cur- “It is a matter of fundamen- terview that “2018 is around serves as co-leader of the com-
rently undecided on the tax bill. tal fairness that this be pre- the corner and some members mission, called the lawsuit “base-
Rep. Leonard Lance (R., N.J.) served. There shouldn’t be win- wonder about the pathway to a less and paranoid.” He said he
said he is opposed to the tax ner states and loser states,” majority and keeping the ma- hadn’t received any communica-
legislation because of the elimi- said Mr. Lance, whose district jority. To me, this is it.” tions, and that the commission’s
nation of the deduction for Mrs. Clinton won. Mr. Lance —Joshua Jamerson work had been stalled by eight
state and local taxes. In his dis- said he was concerned about contributed to this article. lawsuits, the unrelated arrest of
a staff member and the death
of a fellow commissioner.

Groups Spend Millions to Promote Bill

Emails seeking comment
from the office of Vice President
Mike Pence, who is chairman of
the commission, and Andrew Ko-
BY JULIE BYKOWICZ Sheldon Adelson and Joe Rick- ssack, the commission’s execu-
etts. Both backed Mr. Trump’s tive director, weren’t returned.
WASHINGTON—Republican- 2016 general-election run. —Associated Press
aligned groups are spending Freedom Partners and
tens of millions of dollars on Americans for Prosperity, two EXPORT-IMPORT BANK
advertising to sell the GOP tax of the heaviest advertisers, are
overhaul to middle-class vot- part of the network of groups White House Pushes
ers and rebut Democrats’ funded and organized by the For Its Nominee
charge that it primarily bene- Koch brothers. Officials with
fits wealthy Americans. the network say AFP and other The Trump administration is
Conservatives are looking groups in the network already pressing Senate Republicans to
to avoid a replay of their ef- have spent about $10 million support Scott Garrett, its em-
fort to repeal the Affordable on tax messaging. battled nominee to head up the
Care Act, when they were out- Another political group, Export-Import Bank, saying fail-
ALEX WONG/GETTY IMAGES, 45COMMITTEE

spent by Democratic groups
and failed to convince enough
Americans of the merits of
GOP legislation, which ulti-
mately failed in the Senate.
In a 30-second nationwide
ad on Fox News and local cable
systems targeted at President
Donald Trump’s base this
week, former Trump campaign
manager Corey Lewandowski
delivers “an urgent message to
patriots and friends.” The com-
mercial is paid for by America
First Policies, a nonprofit
group founded by Trump allies.
The tax plan “cuts middle-
class tax rates, lowers rates
for job creators and small
business and eliminates spe-
cial interest loopholes,” Mr.
Lewandowski says in the spot.
A second group, called
45Committee, is running ads
in Indiana, West Virginia and
North Dakota meant to get
voters to pressure their Demo-
cratic senators to support the
GOP plan. Voters in all three
states backed Mr. Trump in
the 2016 election.
“This is your shot,” the
West Virginia ad says, address-
ing Sen. Joe Manchin. “Do
what’s right for West Virginia
and pass tax reform today.”
White House Counselor Kellyanne Conway discusses tax overhaul Tuesday. Below, an image from a
TV commercial promoting the GOP tax bill to West Virginia voters.
Put together, four entities—
the 45Committee, American
Action Network, America First
and the network organized by
billionaires Charles and David
Koch—say they plan to spend
a minimum of $43 million on
their pro-tax-legislation cam-
paigns. Major business groups
American Action Network,
says it has spent $14 million
so far on TV, radio, direct mail
and mobile billboards and
aims to pump at least $22 mil-
lion total into the effort.
The tax legislation isn’t
without well-funded detrac-
tors. Industry groups such as
the National Association of
Realtors are spending millions
of dollars decrying parts of
the plan.
But the top two pro-tax-bill
cratic spending to back that advertisers, American Action
position in advertising. Network and Americans for
“We are being vastly out- Prosperity, have aired more
spent, no question,” said TJ than seven times as many
Helmstetter, spokesman for commercials on TV as the top
Americans for Tax Fairness, a two antitax-bill advertisers,
group that opposes the GOP Not One Penny and Citizens
congressional plan. for Responsible Tax Reform,
Analyses of the House tax according to figures provided
plan by Congress’s nonparti- to The Wall Street Journal by
san Joint Committee on Taxa- an ad-space buyer.
tion found that most house- The pro-bill side has spent
holds are likely to see lower almost $25 million on TV
such as the Business Roundta- tax bills but others would face spots while antibill groups
ble also are advertising in fa- higher taxes immediately. have put up less than $5 mil-
vor of the legislation. Deep-pocketed Republican lion, according to a Demo-
Democrat lawmakers and groups see an opportunity. Of- cratic strategist and Republi-
activists argue the GOP tax ficials with 45Committee said can strategist who both track
legislation will hurt the middle the organization will spend at ad spending on the issue.
class and is primarily designed least $10 million on tax-re- —Richard Rubin
to help the wealthy, but so far lated efforts. The group is and Natalie Andrews
there has been little Demo- funded in part by billionaires contributed to this article.
ure to confirm him would leave
the bank unable to approve sig-
nificant transactions for an in-
definite period.
Marc Short, the White House
director of legislative affairs, in
an interview said it is politically
“impossible” to get the bank
fully operational without Mr.
Garrett’s confirmation as presi-
dent. The remarks suggest the
administration may be willing to
risk a monthslong standoff with
fellow Republicans in the Senate
if they can’t advance Mr. Garrett
to the bank’s top post.
“If they want to see the bank
operational, then they can sup-
port the president’s nominees,”
Mr. Short said. “If they choose
to take down the president’s
nominees, then they will likely
have to explain why the bank is
not operational.”
At issue is the nomination of
Mr. Garrett, a New Jersey Re-
publican who spent seven terms
in the House of Representatives
before losing his re-election bid
last year. Mr. Trump nominated
him to head the Ex-Im Bank ear-
lier this year. Mr. Garrett quickly
encountered bipartisan opposi-
tion over earlier efforts to shut
the bank.
—Andrew Ackerman

SENATE manager, said Thursday’s sell-

Continued from Page One
rate immediately and repeal
the estate tax starting in 2025.
The House plan proposes a
39.6% top rate for individuals
off intensified following re-
ports that the Senate tax bill
would delay the corporate-tax-
deduction, a decision that
freed up money for other pri-
orities. The House narrows the
deduction but doesn’t com-
wealthiest Americans. And
many will have narrow, state-
focused priorities and the
clout to insist on them.
rate cut until 2019. He added pletely end it; it leaves in place Another obstacle: The Sen-
that would likely cause inves- the ability to deduct up to ate bill faces what is known as
tors to sell some of their as- $10,000 in property taxes. the Byrd Rule, a requirement
sets to lock in some of the “Senate Republicans are that the overhaul not increase
year’s gains. completely pulling the rug out deficits beyond the first 10
CHIP SOMODEVILLA/GETTY IMAGES

and a four-bracket structure.
“The House will pass its bill,
the Senate will pass its bill and
then we will get together and
reconcile the differences,
which is the legislative pro-
cess,” House Speaker Paul
Ryan (R., Wis.) told reporters
Thursday. “And that’s how this
process will continue.”
Stocks fell during the day
amid worries over the pros-
pects for a tax rewrite, and the
specter of a delay in corporate
tax relief, but pared their de-
clines later. The Dow Jones In-
dustrial Average had fallen as
much as 253 points by early
afternoon, but ended the day
down 101.42 points, or 0.4%, at
23462.94, The S&P 500 fell
0.4%, while the Nasdaq Com-
posite dropped 0.6%.
Mark Travis, chief executive
of Intrepid Capital Manage-
ment, a Milwaukee-based fund
The Senate Finance Com-
mittee is scheduled to consider
the bill next week, and the full
Senate may vote the week af-
ter Thanksgiving. Meanwhile,
House Republicans moved
their bill out of the Ways and
Means Committee Thursday,
preparing for a vote by the full
House next week.
“One thing seems clear:
There isn’t enough money to
pay for everything that each
house wants,” said Greg Val-
liere, chief global strategist at
Horizon Investments. “Some-
thing has to give—most likely
corporate tax relief, which may
not be as generous as propo-
nents expected a few weeks
ago.”
After they struggled and
failed to pass a health-care bill
and lost in state elections on
Tuesday, Republicans see the
tax bill as their best chance for
from under their colleagues years.
who represent suburban dis- The bill has rising deficits
tricts in the House,” said Sen. toward the end of the decade
Charles Schumer (D., N.Y.), and as constructed now, it
who has been fighting to pre- seems unlikely to meet the
serve the state and local tax Byrd test. Finance Committee
deduction. aides say they will need to ad-
As the debate moves ahead, just it to comply. Otherwise,
the Senate Republicans will Republicans would be unable
Senate Finance Committee Chairman Orrin Hatch (R., Utah) on operate with less flexibility to get a bill through the Senate
Thursday before a meeting at the Capitol on the Senate tax bill. than the House. The Senate fi- on a fast-track process without
nance panel has a 14-12 party needing Democratic votes.
a legislative victory while they taxes on multinational corpo- split, meaning that Republi- In other ways, the House
have full control of the Con- rations and exempting car cans need to keep all of their and Senate tax plans fall in the
gress and the White House. dealers from a limit on interest members together in the com- same framework. They each
But some of the changes they deductions. mittee. would repeal the alternative
are proposing could be liabili- Differences between the And in the full Senate, Re- minimum tax, repeal personal
ties in the swing districts they House and Senate are espe- publicans have 52 seats. They exemptions and nearly double
are defending in the House. cially evident in the debate can’t pass a bill if more than the standard deduction.
House Republicans made about the state and local tax two members of their party The Senate also would set
late changes in their bill deduction. Republican senators vote no. Some worry that the the child tax credit at $1,650,
Thursday, keeping the adop- are prepared to eliminate the plan would add too much to up from $1,600 in the House.
tion tax credit, increasing a deduction, which hits high-tax federal budget deficits. Some —Siobhan Hughes,
one-time tax on foreign prof- blue states like New York, New prioritize larger child tax cred- Kristina Peterson and
its, adding lower rates for Jersey and California hardest. its; some don’t want tax cuts Michael Wursthorn
small businesses, bumping up The Senate would repeal the that they believe favor the contributed to this article.
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THE WALL STREET JOURNAL. Friday, November 10, 2017 | A5

The future of wealth since 1818.

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A6 | Friday, November 10, 2017 * * THE WALL STREET JOURNAL.

U.S. NEWS

Church Won’t Reopen, Pastor Says Ex-Relative

BY TAWNELL D. HOBBS

SUTHERLAND SPRINGS,
Texas—The south
church where a gunman
Texas Of Manafort
Investigated
opened fire during a morning
service Sunday, killing 26 peo-
ple and injuring 20 others,
won’t reopen, the pastor of the
church said.
“There’s too many that do BY MICHAEL ROTHFELD Mr. Manafort’s indictment as
not want to go back in there,” AND KATY STECH FEREK his son-in-law, not by name.
Pastor Frank Pomeroy said Mr. Manafort’s daugh-
Wednesday night of his deci- The Justice Department is ter, Jessica, filed for divorce
sion about First Baptist Church seeking to reach a plea deal in from Mr. Yohai earlier this
in Sutherland Springs. “We its criminal investigation of year. Records show a divorce
will probably turn it into a me- Sara and Dennis Johnson Tara Elyse McNulty the former son-in-law of Paul judgment issued in August.
morial for a while. We’re play- Manafort, President Donald Mr. Manafort, his wife and
ing it day by day right now.” Trump’s onetime campaign daughter put at least $4.2 mil-
But Mr. Pomeroy refuses to chairman, according to people lion into house-flipping proj-
let his congregation be dis- familiar with the matter. ects, federal bankruptcy-court
banded because of the actions The investigation into Jef- records show. Mr. Yohai put
of the gunman. He said that frey Yohai—who hasn’t been the four properties into corpo-
services will go on—with one charged with any crime—by rate bankruptcy in December
scheduled for Sunday morning the Federal Bureau of Investi- 2016, as the lender, Genesis,
at a community center a cou- gation and U.S. attorney’s of- was moving toward foreclo-
ple of blocks from the church. fice in Los Angeles is separate sure, records show.
The service will be held a from the Washington-based In September, Mr. Yo-
week to the day after Devin probe of his former father-in- hai said in a federal-court fil-
Patrick Kelley went on a ram- law and others by special ing in Santa Ana, Calif., that
page in the rural church, firing counsel Robert Mueller, who is Mr. Manafort and associates
hundreds of rounds and me- examining Russian influence had “conspired to mislead” the
thodically executing victims, Gregory Hill Megan Hill Emily Hill on last year’s presidential elec- judge about purchase offers
including children, according tion, some of the people famil- that had materialized for the
to law-enforcement officials. iar with the situation said. properties.
The oldest killed was 77 and Mr. Manafort was accused Mr. Manafort hasn’t re-
nine were children, according by Mr. Mueller in an indict- sponded to that allegation in
to information released ment unsealed Oct. 30 with us- filings. A spokesman for Mr.
Wednesday by the Texas De- ing a network of shell compa- Manafort declined to comment
partment of Public Safety. nies in the U.S. and abroad to on those allegations.
Among the youngest was a 17- avoid taxes and launder Earlier this past summer, a
month-old girl. Law enforce- money, and with lying to in- bankruptcy judge in Santa
ment is also counting an un- vestigators and defrauding Ana cleared the way for a cor-
born child, dying with the banks on real-estate transac- porate entity partially owned
mother, on the list of 26 tions. He pleaded not guilty. by Mr. Manafort to buy two of
dead. Most of the victims were Although those charges the bankrupt properties, but
female. didn’t appear to directly relate Mr. Yohai later said in court
As to whether the church to Mr. Mueller’s investigation papers that it appeared the
building will eventually be of whether Mr. Trump’s cam- purchaser was having trouble
SHARON CORRIGAN, THE JOHNSON FAMILY; TASHA NIEMANN WIATREK(KRUEGER); SEGUIN INDEPENDENT SCHOOL DISTRICT/AP(POMERY); JIMMY STEVENS(WARDEN); DISTRIBUTED BY REUTERS(9)

torn down and rebuilt, Mr. Shani and Robert Corrigan Haley Krueger paign colluded with Russia to finding a loan. The sales failed
Pomeroy said, “It’s too soon influence the election, they
right now to tell. I want to get could be an effort to gain
through all the funerals before Mr. Manafort’s cooperation, le-
I do anything.” gal experts said.
Prosecutors seek plea
The pastor said he didn’t Last week, federal investi- deal with former son-
know when the funerals might gators working on a possible
start. Mr. Pomeroy and his plea deal reached out to
in-law tied to real-
wife, out of town on the day of Mr. Yohai’s attorney and to a estate transactions.
the shooting, lost their 14- Los Angeles-based lender, Gen-
year-old daughter in the ram- esis Capital LLC, which lent
page, along with about half of money to entities Mr. Yohai
the congregation. had created for failed house- to close by an Oct. 20 deadline,
Some fundraising cam- flipping projects in which Mr. court records said.
paigns are being held to help Manafort had also invested, Genesis was also the lender
the church and victims. One according to some of the peo- in early 2016 on a Brooklyn
GoFundMe page had raised ple. The probe has also scruti- townhouse cited by Mr. Muel-
about $93,000 as of Wednes- Crystal Holcombe Bryan Holcombe and Karla Plain Holcombe nized at least one real-estate ler in the indictment accusing
day. When asked if money deal involving Mr. Yohai in Mr. Manafort of loan fraud.
from the fundraisers would be New York, The Wall Street Mr. Manafort purchased the
used to help build a new Journal previously reported. property through a corpora-
church, Mr. Pomeroy said, It isn’t clear to what tion for nearly $3 million in
“The primary thing that we’re charges investigators want Mr. 2012 using money from an-
going to do is help those that Yohai to plead guilty. Nor other entity in Cyprus, then
have been hurt.” could it be determined took out loans from Genesis in
The church has been a vital whether Mr. Yohai would be early 2016, in part for con-
part of Sutherland Springs, charged with any wrongdoing struction at the property, ac-
drawing in the community by if no deal were reached. cording to real-estate records
hosting such events as fall fes- Aaron May, a lawyer for and the indictment.
tivals, church suppers and Mr. Yohai, said: “Mr. Yohai has Genesis got loan guarantees
Christmas parties. The unin- not been charged with any for the Brooklyn property from
corporated town is about 35 crime nor has he entered into Mr. Manafort; his wife, Kath-
miles south of San Antonio Annabelle Pomeroy Joann Ward Peggy Lynn Warden any plea agreements.” leen; Mr. Yohai; and Jes-
with a population estimated Mr. Manafort’s spokesman, sica Manafort, court records
around 400 to 500. Jason Maloni, said: show.
Vice President Mike Pence “Paul Manafort entered a plea According to the indict-
commended the community of not guilty in response to the ment, Mr. Manafort told his
for sticking together and indictment and he looks for- tax preparer that the construc-
called the shooter “a deranged ward to having these allega- tion loan would allow him to
man” during a prayer vigil tions tried before a judge.” fully pay off the mortgage on
Wednesday night at a high- Messrs. Manafort and Yo- another apartment.
school football stadium in hai worked together on real- After Genesis went to court
nearby Floresville. estate deals related to multiple to foreclose on the Brooklyn
Law-enforcement officials properties, both in Los Angeles property, Mr. Manafort ob-
won’t discuss possible motives and New York, court and real- tained loans from another
for the rampage, but have said estate records show, including bank based in Chicago, run by
the shooter was at odds with some alleged to have involved a Trump campaign ad-
his mother-in-law, who at- loan fraud, according to Mr. viser, and then settled the
tended the church but wasn’t Mueller’s indictment. foreclosure proceedings, the
there the day of the shooting. R. Scott Marshall and Karen Marshall Lula Woicinski White Mr. Yohai is referred to in Journal has reported.

Neighbor Pleads Not Guilty Cities Vie for Driverless-Car Business

In Attack on U.S. Senator BY ARIAN CAMPO-FLORES environments for testing. Oth- in Ann Arbor, a testing complex from $3 billion in 2015, accord-
ers are opening public road- called Mcity, which opened in ing to a Goldman Sachs report.
BY BYRON TAU tacker, the Pauls have had no As part of a quest to move ways to self-driving cars, with 2015, has drawn a host of auto That is expected to create
conversations with him in its economy beyond theme technicians behind the wheel, makers and suppliers, including more opportunities for suppli-
The man who allegedly at- many years,” Mr. Stafford said. parks and tourist attractions, so they can be subjected to a French maker of driverless ers of radar systems, sensors
tacked Sen. Rand Paul outside “The first ‘conversation’ with central Florida is betting on real-world conditions. shuttles, Navya. This summer, and mapping technology,
his home last week pleaded the attacker came after Sen. driverless cars. Cities are teaming up with the company announced it among other products, the re-
not guilty in a Kentucky court Paul’s ribs were broken. This Construction is under way auto makers such as General would build its first U.S. assem- port said. Even after the first
Thursday to misdemeanor as- was not a ‘fight’; it was a on a 400-acre site including a Motors Co. and technology bly plant in the Ann Arbor area. driverless cars are available to
sault charges, as the senator’s blindside, violent attack.” test track and simulated urban companies like Waymo LLC, “For us, that was just a the public—as soon as 2020,
office described the incident Kentucky state police said and rural roadways at Florida the driverless-car division of home run,” said Carrie Mor- by some projections—cities
as unprovoked and not a re- in an arrest report that Mr. Polytechnic University, outside Google parent Alphabet Inc., ton, Mcity’s deputy director. see the projects as long-term
sult of any recent dispute. Boucher came onto Mr. Paul’s Orlando, in a $100 million proj- in a bid to become key testing The market for autonomous investments, as leaders in the
Rene Boucher, 59 years old, property on Nov. 3 and at- ect. Another testing complex is centers. The goal is to convert vehicles and advanced driver- field will still need to test
was arraigned in a district tacked the senator from be- slated for the Kennedy Space the partnerships into invest- assistance systems, like auto- equipment and innovations.
court in Bowling Green, Ky., hind. Center, where companies can ments in the local economy. mated braking, is projected to In January, the U.S. Trans-
over what police say was an Mr. Paul suffered six broken subject vehicles to hazardous At the University of Michigan grow to $96 billion by 2025 portation Department named
altercation with Mr. Paul, 54, ribs, including several dis- environmental conditions such 10 pilot sites, out of a group of
in the gated community where placed fractures—a medical as flooding, smoke and fog. more than 60 applicants, as
JEFF KOWALSKY/AGENCE FRANCE-PRESSE/GETTY IMAGES

both men own homes a few term for when a bone sepa-
miles outside downtown Bowl- rates into pieces and falls out
ing Green. Mr. Boucher is due of alignment from its typical
back in court Nov. 30. position.
Doug Stafford, Mr. Paul’s Mr. Paul, a two-term GOP
chief political adviser and senator from Kentucky, wrote
strategist, said the two neigh- on his Twitter account
bors have long been estranged Wednesday that X-rays also
and described the incident as showed a pleural effusion—a
a “serious criminal matter in- condition in which fluid builds
volving serious injury” being up around the lungs.
investigated by local and fed- A lawyer for Mr. Boucher
eral authorities. said the incident was
“As to reports of a long- prompted by a “trivial” dis-
standing dispute with the at- pute between neighbors.
“We want to attract the cre-
ative class and use emergent
technologies to develop a tech
ecosystem here,” said Charles
Ramdatt, director of Orlando’s
smart-cities program.
Across the U.S., cities,
states and research institu-
tions are vying to capture
business in the rapidly grow-
ing field of driverless-vehicle
technology. Some are building
new proving grounds or ex-
panding existing ones to pro-
vide controlled and secluded
proving grounds to encourage
testing of autonomous-vehicle
technologies. Among those se-
lected were the Orlando part-
nership, which includes the
city; several universities; state
agencies; and the National
Aeronautics and Space Admin-
istration’s Kennedy Space Cen-
ter; a new testing center being
built in the Detroit area; and
an alliance between the city of
Pittsburgh and a transporta-
A Lincoln MKZ equipped with augmented-reality technology at tion institute at Pennsylvania
the Mcity Test Facility in Ann Arbor, Mich., in September. State University.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, November 10, 2017 | A7

WORLD NEWS
Trump Tries Carrots, Sticks in Xi Talks
U.S., China presidents
trade praise in Beijing, Multilateral Trade
but are likely to split Discord Jars Annual
on vision for the region Pacific Rim Summit

BEIJING—President Donald DANANG, Vietnam—

Trump blended tough talk Months of tensions over a
with chumminess at a U.S.- multilateral trading system
China summit that emphasized came to the fore Thursday in
personal rapport over prog- Vietnam, with objections from
ress on deep-seated differ- U.S. negotiators holding up a
ences, calling Xi Jinping “a joint statement at the Pacific
very special man.” Rim’s annual economic summit.
U.S. trade officials, meet-
By Jeremy Page, ing with counterparts from
Michael C. Bender nations including China, Japan
and Chun Han Wong and Russia at the Asia-Pacific
Economic Cooperation forum,
The two countries’ rivalry raised objections to language
will be more clearly on display concerning support for a mul-
as the two presidents move on tilateral trading order, among
to Vietnam on Friday and out- other issues, people with
line conflicting visions for knowledge of the talks said.
ANDY WONG/ASSOCIATED PRESS

Asia’s future to regional lead- The objections solidified

ers. Mr. Trump is promoting a the adversarial position of the
“free and open” region to U.S. in global economic talks
counter the Chinese presi- under President Donald Trump,
dent’s drive to make his coun- after Washington raised similar
try its dominant power. concerns at the G-7 and G-20
In Beijing on Thursday, Mr. meetings. Mr. Trump withdrew
Trump spoke in unusually con- the U.S. from a sweeping Pa-
ciliatory tones during joint ap- Chinese President Xi Jinping spoke at the Great Hall of the People in Beijing on Thursday as President Donald Trump looked on. cific trade deal that had been
pearances with Mr. Xi, hailing forged on the sidelines of
their “very good chemistry” Mr. Xi smiled broadly at friction between China and the to be to flatter Mr. Trump into member Asia-Pacific Economic APEC. He has voiced prefer-
while expressing hope for some of Mr. Trump’s remarks, U.S. was unavoidable but the easing up on pressure over Cooperation summit in Da ence for bilateral deals.
forceful action from Beijing. including that China wasn’t to countries should strengthen trade and North Korea and ac- Nang, Vietnam, on Friday and Australian Trade Minister
Mr. Trump blamed past U.S. blame for the trade imbalance. communication and coopera- knowledging China’s territorial Saturday. Steven Ciobo said in an inter-
administrations, rather than China posted a near $27 bil- tion in Asia-Pacific affairs. “I interests and ambitions for a In a speech to Asia-Pacific view that he respected the
Beijing, for what he described lion trade surplus with the told President Trump that the leading role on the world stage. business leaders on Friday, Mr. Trump administration’s em-
as a “very one-sided and un- U.S. in October. Pacific Ocean is big enough for For the White House, a Trump will describe a “vision phasis on bilateral trade deals.
fair” trade relationship, adding, Mr. Trump did include both China and the U.S.,” he strong personal relationship for a free and open Indo-Pa- “But [Australia] will also pur-
“but we’ll make it fair and it’ll tougher talk in his pledge to said. with the man who now wields cific region” that stretches sue and also reinforce the
be tremendous to both of us.” tackle imbalances: “We must Neither leader took ques- supreme authority in China from the U.S. to the Indian value of the multilateral sys-
While thanking Mr. Xi for immediately address the un- tions at a joint press confer- has the potential to make it Ocean, U.S. officials said. tem, and that’s what we seek
his recent efforts to restrict fair trade practices that drive ence. easier to manage bilateral ten- Mr. Xi is expected to use his to have incorporated in any
trade and banking ties with this deficit,” he said. “We re- “It appears Trump opted to sions while standing up for speech to the same forum to statement,” he said.
North Korea, he urged further ally have to look at access, publicly play down U.S.-China Washington’s own economic press the image of China as The standoff was the lat-
steps to press Pyongyang to forced technology transfer and differences, praise the Chinese and security interests in Asia. the new champion of global est tension point positioning
halt its nuclear-weapons pro- the theft of intellectual prop- people for what they have The two sides unveiled free trade, and to encourage the U.S. as a vocal critic of
gram. “China can fix this prob- erty, which just by and of it- achieved, and give Xi Jinping business deals they valued at other countries to participate the international trade and
lem easily and quickly,” he said. self is costing the United face,” said Bonnie Glaser, an more than $250 billion, but in his plan for wide-ranging economic order after years of
“You know one thing about States and its government at expert on China at the Center many were already in the mak- trade and transport links. pursuing multilateral deals.
your president: If he works on least $300 billion a year.” for Strategic and International ing or not actual contracts. —Ben Otto
it hard, it will happen. There’s Mr. Xi kept his own state- Studies in Washington. The leaders now take their  U.S.-China business deals and Jake Maxwell Watts
no doubt about it.” ments more formal, saying Beijing’s strategy appeared competing agendas to the 21- come with a hitch.................... B1

U.S. Set to Lobby Russia

For Ukraine Peace Force
BY LAURENCE NORMAN under the 2015 Minsk peace throughout Donbas, Russian
AND JULIAN E. BARNES accords, obliging it to pull all and Western officials said.
troops and weapons out of Russia’s role in the Ukrainian
BRUSSELS—U.S. officials Ukraine and allow Kiev to re- conflict is the biggest obstacle
are preparing to test Moscow’s store control. to improving ties between Mos-
willingness to end the Ukraine The U.S. proposal would re- cow and Washington, Western
conflict by seeking Russia’s spond to a Russian initiative and Russian officials said. U.S.
MICHAEL FORSTER ROTHBART/ZUMA PRESS

approval for 20,000 peace- put forth at the United Na- President Donald Trump has
keepers across Ukraine’s em- tions Security Council in New said he hopes to improve ties
battled east, U.S. and Western York in September, calling for with Moscow. The two leaders
officials said. a peacekeeping mission. may meet on the sidelines of an
The U.S. is expected to raise Russia proposed that peace- economic summit in Viet-
the proposal with Russian offi- keepers protect international nam on Friday.
cials in coming days, these observers in Ukraine along the The White House didn’t re-
people said. It is driven by so-called separation line that spond to a request to com-
hopes in some Western capi- divides Kiev-controlled terri- ment.
tals, including Paris and Berlin, tory from rebel-held areas in The September peacekeep-
that Russian President Vladi- the east. The conflict in east- ing proposal “was a serious
mir Putin is seeking a way out ern Ukraine erupted in 2014 signal from the Kremlin,” said A soldier keeps watch from a shell-damaged church in Pisky, near Donetsk in eastern Ukraine.
of Moscow’s military sup- after Russia annexed Crimea Vladimir Chizhov, Russia’s am-
port to Ukrainian separatists. from Ukraine. Fighting has left bassador to the European France and Germany. Russia to letting Ukraine re- is interesting,” a U.S. official
The proposal is also part of some 10,000 dead. Union. Progress in Ukraine, he Mr. Volker has met twice store authority across its ter- said.
a larger Trump administration Western diplomats dismissed said, could improve “the with top Kremlin aide Vladis- ritory in exchange for Kiev Mr. Volker said last week he
strategy for Russia that in- Russia’s proposal because they hugely abnormal situation in lav Surkov since mid-August. holding local elections in Don- was exploring with Mr. Surkov
cludes diplomatic efforts to feared it would effectively Russian-American relations.” A third meeting is planned in bas and agreeing to greater au- how Russia’s September
force Moscow back into com- freeze the conflict, perpetuating The U.S. envoy to Ukraine, Belgrade next week. tonomy for its eastern regions. peacekeeping proposal “can be
pliance with arms-control trea- rebel control of parts of Kurt Volker, has since the Trump administration offi- Officials briefed on the U.S. developed further” to make it
ties, such as a ban on interme- Ukraine’s Donbas region. summer met with Ukrainian cials said they believe progress initiative said obstacles to a effective for controlling con-
diate missiles that Washington Mr. Putin responded posi- and Russian officials on the is best achieved by taking sev- deal with Russia on peace- tested areas, monitoring heavy
has accused Russia of violating. tively to a counterproposal Donbas conflict. Those talks eral big steps toward fulfilling keepers are formidable, but an weapons and policing the
Western capitals remain from German Chancellor An- have run parallel to formal ne- the Minsk accords instead of agreement could be reached if Ukrainian side of the border.
skeptical, however, that Russia gela Merkel that peacekeepers gotiations on the conflict, in- trying to make incremental Russia is willing to negotiate. “We are not in agreement
will fulfill its commitments be granted free access volving Ukraine, Russia, progress. Minsk committed “It is not impossible, which on this yet,” Mr. Volker said.

Europeans Brexit Turbulence Gives Rise to U.K.-U.S. Aviation Talks

Seek Answers With Brexit talks between ing post-Brexit. Whether Britain can agree to maintain trade in most other

From U.K. London and Brussels bogged

down, Britain’s best hope for
some progress preparing for
BY JASON DOUGLAS
By Robert Wall in
BRUSSELS — The U.K.’s London and Daniel
hopes of advancing to the next Michaels in Brussels
stage of Brexit talks next
month are diminishing, Euro- life after the European Union
pean Union officials warned as may come from Washington.
negotiations between the two The U.S. and U.K. recently
sides resumed here. began negotiations on a provi-
Failure to move talks this sional aviation agreement,
year onto the future trading without which
relationship would be a blow ANALYSIS no flights be-
to U.K. Prime Minister Theresa tween the coun-
May. tries would be
Chief EU Brexit negotiator permitted after March 29,
Michel Barnier said Thursday 2019, when Britain formally
it is time for Britain to clarify leaves the EU. For the roughly
its stance on the divorce is- 17 million passengers who fly
sues. The two-day round of to London’s Heathrow Airport
talks is focused on three pre- from North America annually,
liminary issues: Citizens’ that offers some relief.
rights after Brexit, preventing But for the half of those
the re-emergence of a border passengers who fly on from
between Ireland and Northern Heathrow to the rest of the
Ireland, and the amount the EU, skies look cloudier. Lon-
U.K. must pay to settle finan- don and Brussels are nowhere
cial obligations to the bloc. near a deal to keep planes fly-
A U.S. State Department
draft air-transport agreement
with the U.K., dated Oct. 31 and
reviewed by The Wall Street
Journal, calls for “open access
to markets and maximizing
benefits for consumers, airlines,
labor business and communities
on both sides of the Atlantic.”
The British Department for
Transport said it was having
“ongoing informal discus-
sions” with the U.S. but
wouldn’t comment further.
The text, if agreed, would
allow any U.S. carrier to fly
without restrictions to any
British city and grant similar
rights to U.K. airlines in the
U.S. British carriers would lose
some rights they currently en-
joy as part of the EU, such as
the potential to fly from EU
states to the U.S.
Aviation talks between the
U.S. and U.K. may offer a
model for Britain’s prepara-
tions to re-create its own trade
policy after Brexit. As a mem-
ber of the EU, Britain is forbid-
Up in the Air
Brexit puts the biggest
similar deals with the EU is one
of the biggest worries for
global companies including Jap-
market for London's
Heathrow Airport at risk. anese car makers, Australian
miners and American banks.
Passengers through September Formal talks haven’t begun be-
cause the two sides are still
Europe 24.8 million
bickering over topics the EU
says must be addressed first,
North America 13.2
including Britain’s bill on exit-
ing the bloc and citizens’ rights.
Asia/Pacific 8.5
Willie Walsh, chief execu-
tive of British Airways owner
Middle East 5.8
International Consolidated
U.K.
Airlines Group SA, recently
3.6
brushed aside the prospect of
Africa grounded planes.
2.3
Nicholas Calio, CEO of U.S.
Latin America trade group Airlines for Amer-
1.0
ica, is less calm. “There’s a
Source: Heathrow Airport Holdings huge economic imperative for
THE WALL STREET JOURNAL. the EU, as well as for the U.S.,”
he said recently in Brussels.
den from striking trade agree- Airlines are particularly
ments, so the aviation pact will frustrated by the lack of prog-
likely be an if-and-when docu- ress, and highlight the risk of
ment taking effect with Brexit, London and Brussels failing to
and only if aviation isn’t cov- agree to a deal. Air travel is
ered in a U.K.-EU deal, people outside World Trade Organiza-
familiar with the talks said. tion agreements that would
goods and services absent new
bilateral deals with the U.K.
Without aviation agreements,
British flights are forbidden
from landing in other countries.
Companies are starting to
prepare for uncertainty. Euro-
pean tour operator Thomas
Cook Group PLC has added a
clause to protect itself from
passengers’ claims in case of
Brexit-linked cancellations.
Groundings due to air-traffic
control issues are classified as
circumstances beyond airlines’
control, similar to war.
The British government has
played down concerns. “It is
inconceivable that the planes
will stop flying,” U.K. Trans-
port Secretary Chris Grayling
said recently.
Airlines start selling seats
as many as 300 days before a
departure, meaning tickets for
flights on the day after Brexit
go on sale in about eight
months. Many carriers worry
about marketing flights that
might not take off.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A8 | Friday, November 10, 2017
MARCELO LELIS/SECRETARY OF STATE FOR PUBLIC SECURITY AND SOCIAL DEFENSE/ASSOCIATED PRESS
Adam and Emily Harteau and their two daughters arriving at the airport in Belém in Brazil’s Pará state last week; right, children playing in a canoe in Porto dos Dias.
A Family’s Escape From Pirates
California couple swam river, bushwhacked through Amazon jungle to get young daughters to safety
BY PAULO TREVISANI
AND PAUL KIERNAN
PORTO DOS DIAS, Brazil—
In October 2012, Adam and
Emily Harteau, a California
couple in their early 30s, set
out on an overland journey to
the southernmost tip of South
America in their Volkswagen
Westfalia camper van. With
colorful travel photos, $16,301
raised on Kickstarter, and the
hashtag #vanlife, they drew an
army of social-media followers
intrigued by their seemingly
blissful existence.
“As we grow older, time is
punctuated by appointments
and alarm clocks, and we for-
get how to live at our own
pace,” Ms. Harteau wrote in a
photo essay published in the
New York Times’ travel sec-
tion in August, nearly five
years into what was initially
planned as a yearlong trip.
“We wanted to slow down
time again by raising a family
on the road and use their
questions about nature and
life as our curriculum. We are
world-schooling our kids.”
The Harteaus’ adventure
came to a harrowing end on
Nov. 1, when a ferry captain
U.S. Pushes Stiffer Rules for Nafta Car Makers
BY ROBBIE WHELAN
MONTERREY, Mexico—
American trade negotiators
are taking aggressive mea-
sures to close what they de-
scribe as a Mexican “back
door” through which steel and
other auto-manufacturing
components produced outside
North America are sold tariff-
free in the U.S.
The U.S. trade representa-
tive has proposed a significant
expansion of the North Ameri-
can Free Trade Agreement so-
called tracing list for auto
manufacturing, which enumer-
ates parts that require strin-
gent proof of where they were
originally made, according to
three people familiar with the
proposal.
If incorporated into a new
deal, the stiffer requirements,
laid out in a text presented at
last month’s Nafta talks in
Washington, could upend the
supply chains vehicle manu-
facturers and auto-parts sup-
pliers have established in Mex-
ico’s industrial north over the
past 25 years by making it
harder for companies to meet
requirements that the vast
majority of the components
they use originate in the U.S.,
Mexico or Canada.
President Donald Trump
has roundly criticized the $63
billion U.S. trade deficit with
Mexico, much of which stems
from automotive manufactur-
EUROPE
EU Raises Forecast
For Economic Growth
The European Union said the
eurozone was on track to post
its fastest growth rate in a de-
cade as political uncertainties
that threatened to cast a
shadow over the bloc this year
largely failed to materialize.
Driven by dimming political
turbulence that economists had
feared could hold back growth
this year, the EU’s regular fore-
cast said gross domestic product
in the 19-member eurozone
would grow by 2.2% in 2017,
plucked the couple and their
two daughters, 6-year-old Co-
lette and 3-year-old Sierra,
from a river in Pará state in
the Brazilian Amazon. They
had spent the previous three
days hiding in the jungle af-
ter pirates in a wooden canoe
ambushed the barge carrying
them upriver on their return
journey to California.
“They were very, very
scared, hungry and covered
by insect bites,” said Dinei
dos Santos, the boat’s man-
ager, who spotted them sig-
naling for help.
The couple didn’t respond
to interview requests. The
tale of their escape and sub-
sequent rescue was pieced
together from their state-
ments to police and accounts
from locals in the remote
area where they were res-
cued.
The band of a half-dozen
armed pirates surrounded
and took control of the vessel
Andorinha, or Swallow, on
Oct. 29, brought the vessel
ashore and confined the Har-
teaus and the crew in a tug-
boat. After several hours be-
ing held hostage and
intermittently threatened at
Raising the Threshold
U.S. trade negotiators are proposing raising requirements for what
portion of the parts in a Mexican-manufactured car must be sourced
in North America in order to be imported tariff-free. Most
manufacturers who meet the current requirement of 62.5% would
struggle to meet the proposed 85%.
Selection of vehicles that meet
current content requirements
Share of value from Nafta-made
components
Fiat Chrysler
Dodge Journey
Fiat 500
Ford
Fusion
Lincoln MKZ
Fiesta
General Motors
Chevrolet Silverado
GMC Sierra
Chevrolet Cruze LTD
Mazda
Mazda3
Nissan
NV200 Cargo
Sentra
Versa Sedan
Toyota
Yaris AT
Tacoma*
*At least 65% and less than 80%
Source: National Highway Traffic Safety Administration
ing, and promised to revamp
or pull out of Nafta in order to
reduce it and bring back U.S.
factory jobs.
“We are in the process of
trying to rebalance” the Nafta
trade relationship, said Robert
Lighthizer, the U.S. trade rep-
beating its expectation of 1.7% in
the previous forecast in May.
On the back of robust con-
sumer spending and a global
economic recovery, the 28-mem-
ber bloc’s GDP is seen expanding
this year by 2.3%, up from the
1.9% previously forecast. The
outlook reflects a global eco-
nomic upswing that is stoking
investments by EU companies
as political and economic uncer-
tainties dim. Centrist, pro-Euro-
pean governments kept power in
Germany, the Netherlands and
France while the European Cen-
tral Bank maintained its accom-
modative monetary policies.
—Emre Peker
WORLD NEWS
PAULO TREVISANI/THE WALL STREET JOURNAL
gunpoint, the family decided Exhausted and hungry on
to make a run for it. their fourth day in the wild,
In the middle of the night, Mr. Harteau finally pushed
as the robbers were appar- his family on the surfboard
ently busy off-loading cargo toward Mr. dos Santos’s ferry.
from the hijacked barge, Mr. He was filling out his ship’s
Harteau grabbed a survival log in the cabin as the sun
kit and his surfboard from set when he heard shouts and
the Westfalia and slipped saw hands waving frantically
into the Jacaré Grande River from the choppy waters of
with his family. the river.
Using the surfboard as a News that the Americans
were missing had surfaced
the day before, when the U.S.
Embassy notified family
After being threatened members in California. Ms.
at gunpoint, the Harteau’s father, Warren
Brandle, a family doctor in
Harteaus decided to the Sacramento area, read
make a run for it. vastly conflicting accounts of
their fate on Brazilian web-
sites, including reports that
the family had been kid-
float, the family of four swam napped and that they had
a mile and a half to the oppo- jumped into the river.
site bank of the river. From “I thought they were
there they bushwhacked dead,” said Ieda Dias, a 56-
about 6 miles over the next year-old nurse in the nearby
three days through the jungle village of Porto dos Dias,
racked by fierce thunder- where she first got word of
storms and teeming with jag- the missing family. “Nobody
uars, anacondas, caimans and swims in these waters.”
a host of venomous spiders The Harteaus were taken
and snakes. They hid from to the river town of Breves,
passersby, fearing they might where they spent nearly 24
have ties to the pirates. hours in a local hospital. Mr.
Nissan Motor Co. and others,
must prove that 62.5% of the
value of components in their
vehicles originate in one of the
three Nafta countries.
In addition, auto-parts
firms must prove that several
dozen priority parts used in
engines and transmissions are
manufactured in North Amer-
Current Proposed ica.
minimum minimum
The U.S. has proposed
62.5% 85% raising the regional content
requirement to 85% and
89% wants to expand the tracing
71 list to include steel, leather
and fabric used in seat cush-
85 ions—essentially “all the
85
75 components of a car,” accord-
ing to a person familiar with
the U.S. negotiating team’s
94
94 position.
76 General Motors and Fiat
Chrysler declined to comment,
75 and Ford didn’t respond to a
request to comment.
75 The Alliance of Automobile
75 Manufacturers, a trade group
75 of car makers operating in the
U.S., has expressed strong op-
70 position to the proposal, say-
65 ing raising Nafta’s current rule
of origin for cars is the high-
THE WALL STREET JOURNAL. est of any trade agreement
and raising it further would
resentative, after last month’s harm rather than help the U.S.
talks. auto industry.
Under current Nafta re- “By increasing the regional
quirements, car manufacturers content requirement to 85%,
with assembly plants in Mex- mandating a U.S. domestic
ico, including General Motors content requirement of 50%
Co., Ford Motor Co., Fiat and increasing the regulatory
Chrysler Automobiles NV, burden of meeting such strict
WORLD WATCH
NIGER is committed to a thorough and
detailed investigation into the
Attack Probe Will deaths of Staff Sgt. Bryan C.
Take Until January Black, Staff Sgt. Jeremiah W.
Johnson, Staff Sgt. Dustin M.
The U.S. military won’t com- Wright, and Sgt. La David T.
plete its investigation into Johnson,” it said.
the Oct. 4 attack that killed four U.S. Army officials informed
U.S. troops in Niger until Janu- the four families about the in-
ary, military officials said, citing vestigation timeline this week,
the detailed process. the Pentagon said. Should the
Army Maj. Gen. Roger Clout- investigation extend beyond Jan-
ier, U.S. Africa Command’s chief uary, “they will be kept in-
of staff, is leading the investiga- formed,” it said.
tion team, whose work will U.S. officials have said they
stretch through the U.S., Africa believe Islamic State in the
and Europe, the department Greater Sahara was behind the
said. attack.
“The Department of Defense —Nancy A. Youssef
THE WALL STREET JOURNAL.
Harteau was treated for a
mild allergic reaction; Ms.
Harteau had sunstroke and a
leg injury from a previous
accident; and their daughters
were treated for fever, dehy-
dration, insect bites and sun-
stroke.
In an Instagram post on
Sunday, the Harteaus posed
with their olive-green surf-
board and Brazilian authori-
ties in front of a single-pro-
peller airplane.
“We couldn’t be more ec-
static to say that WE ARE
ALIVE,” the family declared
to 132,000 followers. “We
are so grateful for all of your
well wishes in these difficult
times and want to relay our
love for Brazil, which re-
mains even after the hell we
survived.”
Authorities say piracy and
drug trafficking are rampant
in the Amazon, a forest the
size of Western Europe
where roads are nearly non-
existent.
In Pará state alone, police
registered 641 pirate attacks
from 2011 through last
month, with many others
thought to have never been
reported.
requirements by expanding
the ‘tracing list,’ you will likely
see an increase in Chinese
content,” said AAM spokesman
Wade Newton. “Rather than
attempt to comply with such
stringent regulatory require-
ments, it will make more eco-
nomic sense for companies to
shift production to low-cost
countries, like China, and sim-
ply pay the 2.5% tariff to im-
port the product into the U.S.
“In that scenario, the U.S.
loses and China wins,” Mr.
Newton added.
Many auto-parts suppliers
import steel and other metals,
hardware, and electronic com-
ponents from China, South
Korea and Eastern Europe and
integrate those components
into finished products in Mex-
ican factories, permitting
parts that have been “sub-
stantially transformed” to be
considered North American in
origin.
“A lot of times you import
something from Japan or
somewhere else and paint it
here,” said Manuel Montoya,
general director of the Auto-
motive Cluster of Nuevo León,
a trade group here that repre-
sents hundreds of parts manu-
facturers.
“It’s not Mexican content,
truly, it’s just Mexican-
painted.”
—Dudley Althaus, Juan
Montes and Chester Dawson
contributed to this article.
AFTER THE WALL: Berlin Mayor Michael Mueller marked the
anniversary Thursday of the 1989 fall of the Berlin Wall.
Venezuelan
Officials
Face New
Sanctions
BY IAN TALLEY
AND JOSÉ DE CÓRDOBA
WASHINGTON—The U.S.
Treasury Department sanc-
tioned 10 current and former
Venezuelan government offi-
cials as part of the Trump ad-
ministration’s broader crack-
down on the troubled Latin
American country.
The Treasury on Thursday
accused the officials of sub-
verting democracy and said
the individuals are “associated
with undermining electoral
processes, media censorship,
or corruption in government-
administered food programs in
Venezuela.”
As President Nicolás Ma-
duro has steadily consolidated
power, the Trump administra-
tion has stepped up sanctions
pressure on Venezuela, curb-
ing access to U.S. debt mar-
kets and targeting Mr. Maduro
and his top officials.
“The U.S. will not stand
aside while the Maduro re-
gime continues to destroy
democratic order and prosper-
ity in Venezuela,” Treasury
Secretary Steven Mnuchin
said. “We will maintain our
vigorous efforts to sanction
Venezuelan government offi-
cials who are complicit in Ma-
duro’s attempts to undermine
democracy, violate human
rights, inhibit the freedom of
expression or peaceful assem-
bly, or engage in public cor-
ruption, unless they break
from Maduro’s dictatorial re-
gime.”
The Treasury designated
several top members of Vene-
zuela’s National Electoral
Board, including its vice presi-
dent, Sandra Oblitas Ruzza,
for allegedly disrupting na-
tional elections by moving
polling stations just days
ahead of recent elections.
The Treasury also targeted
senior officials in Venezuela’s
new constituent assembly, the
body Mr. Maduro is using to
rewrite the constitution. Three
top officials were named for
their alleged roles in suppress-
ing media and state censor-
ship and two officials were
designated for alleged state
corruption and drug traffick-
ing.
Venezuela’s foreign minis-
ter, Jorge Arreaza, responded
to the latest round of U.S.
sanctions in a series of posts
on his Twitter account. “These
actions form part of the sys-
tematic campaign of aggres-
sion by the government of the
U.S. against Venezuelans,” Mr.
Arreaza said. The U.S. action
“violates international law and
flagrantly flouts the principle
of non-interference in internal
affairs,” the foreign minister
said.
“These illegal actions unveil
the pretensions and imperial-
ist intentions of @realDon-
aldTrump,” he added.
The Trump administration
is hoping to squeeze Mr. Ma-
duro from power by isolating
his government and the elite
power structure that analysts
have said has profited from
proximity to the president.
Although the administra-
tion has stopped short of us-
ing its biggest sanctions
weapon against Venezuela—
banning oil imports from the
producer—its curbs on Vene-
zuelan debt have complicated
Caracas’s efforts to raise fresh
funds for a government on the
brink of default.
Many of Venezuela’s bonds
are held by U.S. investors, but
the Treasury’s curbs on debt
ban U.S. involvement in re-
structuring.
OMER MESSINGER/EPA/SHUTTERSTOCK
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, November 10, 2017 | A9

WORLD NEWS

McKinsey Hired Saudi Officials’ Children

Consultancy employed hires based on merit—and said was focused on finding people Aramco, which had paid for
its Middle East offices have who are “driven” and “want to his postgraduate studies at
at least eight relatives rejected more than 100 candi- make a difference.” He said Stanford University with the
of high-ranking Saudis dates with very influential rel- McKinsey was looking at hir- expectation he would return,
atives in the past five years. ing astrophysicists, poets and the people said.
during past few years “McKinsey is a meritocracy. journalists, in addition to Abdulaziz Alfalih referred
We hire exceptional people those with M.B.A.s. questions to McKinsey.
RIYADH, Saudi Arabia— and are confident in the ro- McKinsey’s most visible His father didn’t respond to
McKinsey & Co. has been paid bust policies and practices role in Saudi Arabia has been questions.
millions of dollars in recent that underpin our recruiting advising the Saudis on large- McKinsey has also hired

years advising Saudi Arabia’s and development both globally
government on an ambitious and locally,” the company said.
economic transformation. The Wall Street Journal un-
Over the same period, the covered no allegations by U.S.
global consultancy has hired or Saudi officials of wrongdo-
at least eight relatives of high- ing by McKinsey in its Saudi
ranking Saudi officials. hiring.
The hiring of officials’ rela-
By Justin Scheck, tives in other countries has
Bradley Hope drawn scrutiny from U.S. au-
and Summer Said thorities in the past. J.P. Mor-
gan Chase & Co. last year paid
The consulting company $264 million in criminal and
has employed, among others, civil settlements of federal
at least two children of the claims, brought under the For-
man who serves as the Saudi eign Corrupt Practices Act,
energy minister and head of that it hired unqualified rela-
the state oil company, a son of tives of Chinese officials to get
the finance minister and a son business. A Justice Depart-
of the chief executive of gov- ment official at the time called
ernment-controlled Saudi Ara- the hiring program “nothing
bian Mining Co. more than bribery by another
McKinsey has relationships name.”
that go back decades in Saudi A J.P. Morgan spokesman
Arabia, a country where gov- referred to a 2016 statement
ernment and business hierar- that the bank cooperated with
chies are often defined by federal probes and took action
family ties. The firm said it against employees.
A Saudi market. McKinsey has been advising the kingdom.
The U.S. Justice Depart-
ment established years ago
that hiring officials’ relatives
to generate business, rather
than hiring an applicant for
his or her ability to fill a
needed position, can be de-
fined as bribery under the
FCPA.
McKinsey said the officials’
sons and daughters that it has
employed “are distinctively
qualified and were hired solely
on the basis of their academic
credentials, abilities and per-
formance in a rigorous multi-
ple-round assessment pro-
cess.” McKinsey added that
they had an average grade
FAISAL AL NASSER/REUTERS
scale plans to wean the king-
dom off oil. Since 2015, senior
McKinsey executives have
been strategizing with minis-
ters and Crown Prince Mo-
hammed bin Salman’s staff on
matters including plans for a
stock sale in state-owned
Saudi Arabian Oil Co., or
point average of “A,” and sev- Aramco—potentially the
eral had offers from other world’s biggest-ever public of-
leading global firms. fering—that is intended to
McKinsey has a record of fund the diversification of the
hiring people around the economy.
world with international edu- During that time, McKinsey
cation and work experience; in has employed at least two
Saudi Arabia as in other devel- children of Khalid al-Falih, the
oping countries, it is most of- energy minister and Aramco
ten the political elite who send chairman.
their children abroad to gain Mr. Falih’s son, Abdulaziz,
such experience. still works for the firm; when
Describing McKinsey’s hir- he was hired in 2015 his father
ing practices in a 2013 Journal told associates that he had
interview, Dominic Barton, nothing to do with his son get-
McKinsey’s managing director, ting the job, according to peo-
said the firm looked beyond ple close to him. He told the
its potential employees’ aca- associates that his son should
demic accomplishments and have continued working with
two children of a central bank
chief who resigned in 2016 and
became a royal court adviser
and director of a state-owned
chemicals giant; the daughter
of a former culture minister;
and a prince whose father was
a military adviser and is now
ambassador to Jordan.
Two of the hires were sum-
mer associates.
None of the officials or
their offspring agreed to com-
ment for this article.
At least four of the hires re-
main at McKinsey.
Hiring Saudis is important
for foreign firms in the king-
dom to appeal to local clients
in the public and private sec-
tors, according to people who
have worked in consulting
here, and as McKinsey became
a go-to adviser for Saudi com-
panies and the government, it
looked for Saudi talent, people
familiar with the consultancy
said.

IRAN U.A.E. Asks Banks

For Information
ican efforts to contain Iran
and forge a new Israeli-Pales-
tinian peace deal.
Jared Kushner, Mr. Trump’s
Continued from Page One On Saudi Detainees son-in-law and his special ad-
to approach things.” viser on Middle East peace
Some at the State Depart- talks, flew to Riyadh late last
ment and in the U.S. military The United Arab Emirates’ month for unannounced meet-
have raised concerns about tak- central bank asked financial ings with Saudi Crown Prince
ing steps that could antagonize firms operating in the country Mohammed bin Salman. The
Iran, while others at the White to provide information on two met for extended talks that
House and National Security several individuals detained in were focused on the subject of
Council have argued for tougher Saudi Arabia as part of a Israeli-Palestinian peace, the
steps, the former official said. government-led corruption in- White House said. They didn’t
Mr. Trump unveiled a new vestigation there. discuss anything about the
strategy in October for coun- The request, a copy of then-looming internal crack-
tering Iranian influence that which was seen by The Wall down, one U.S. official said.
imposed new economic sanc- Street Journal, is the first Some U.S. officials said the
tions on the country’s elite mil- sign that the fallout from the Saudis gave the Trump admin-
itary branch. The strategy envi- Saudi crackdown is spreading istration no forewarning of
sions closer coordination with beyond the kingdom’s bor- their plans for sweeping arrests
Saudi Arabia, Israel and other ders. or any discussions with Mr.
Middle East allies to clamp In a circular dated Nov. 7, Hariri before his resignation.
HUSSEIN MALLA/ASSOCIATED PRESS

down on Iranian support for the central bank asked the Andrew Exum, who served
Hezbollah, and sets the stage firms to share financial infor- as deputy assistant defense
for withdrawing from former mation on transfers and with- secretary for Middle East policy
President Barack Obama’s sig- drawals from accounts held in the Obama administration,
nature nuclear deal with Teh- by 19 individuals. said Mr. Hariri’s decision to
ran if significant changes aren’t The central bank didn’t step aside could help marginal-
made. Last month, Mr. Trump say why it wanted the infor- ize Hezbollah in the short-term,
declined to certify that Iran mation. but it may end up stoking sec-
was complying with its obliga- —Nicolas Parasie tarian resentment in Lebanon.
tions under the deal. Workers in Beirut on Thursday hung a poster of Saad Hariri with the words ‘We are all Saad.’ Mr. Exum said the most
The administration is weigh- pressing concern is the intro-
ing a proposal to list Iran’s Is- leaders are looking for the U.S. Trump administration as it culate and things could escalate came days after Lebanese duction of new weaponry from
lamic Revolutionary Guard to take more-aggressive steps tries to balance competing in- and draw us into a conflict?” Prime Minister Saad Hariri, Iran into Yemen, which has
Corps as a terrorist organiza- against Iran. terests in the Middle East. the former administration offi- who was backed by Riyadh, raised the prospect of further
tion, U.S. officials said, but Yet some current and for- Secretary of State Rex Til- cial said. “The question for resigned during a visit to military escalation that could
there are concerns from U.S. mer administration officials lerson moved swiftly to try to Saudis is: What happens if you Saudi Arabia. Hezbollah was threaten vital shipping routes in
military officials that taking voiced concerns that Riyadh’s resolve the feud between a engage in hostilities that esca- part of the coalition govern- the region. “I’m not sure folks in
that step could trigger deadly approach could draw the U.S. Saudi-led bloc of countries and late? How and when would that ment led by Mr. Hariri. Iran have thought through the
blowback from Iranian proxies into an unpredictable, pro- Qatar, which is home to a base draw the U.S. into it?” the offi- Trump administration offi- strategic implications of bring-
in Iraq and Syria, where they tracted conflict with Iran. that hosts a U.S. command cen- cial said. cials have developed an espe- ing antiship cruise missiles into
could directly target U.S. forces. They point to Saudi Arabia’s ter. However, Mr. Trump took The Trump administration cially close relationship with that part of the globe,” he said.
The new strategy was wel- moves to isolate Qatar this Riyadh’s side in the dispute. didn’t immediately react to the Saudi leaders, who are ex- —Margherita Stancati
comed in Jerusalem and Ri- year, which has become an un- “How do you respond to a Saudi move to ask its citizens pected to be pivotal players in and Michael C. Bender
yadh, where Israeli and Saudi resolved headache for the situation where you can miscal- to leave Lebanon. The move the success or failure of Amer- contributed to this article.

NATO Misses U.S. Goal

On Afghan Troop Rise
U.S. allies in Europe on counterterrorism and other
said they would provide more U.S. missions. Other allies and
troops to train soldiers and partners have roughly 6,600
police in Afghanistan as its troops there, a number set to
government tries to stem an grow to about 7,300 when the
escalating insurgency, but the additional troops arrive.
number fell short of U.S. ex- Allied diplomats say they
pectations. hope that European contribu-
tions will increase in the
SYRIAN CENTRAL MILITARY MEDIA/ASSOCIATED PRESS

By Julian E. Barnes in months to come.

Brussels and Craig Mr. Trump in August an-
Nelson in Kabul nounced a “fight to win”
strategy to help Afghanistan’s
The U.S. and North Atlantic security forces, force the Tali-
Treaty Organization officials ban to the negotiating table,
had hoped they could secure and prevent the country from
up to 1,500 additional forces, becoming a staging ground for
but are settling for roughly armed Islamic groups to carry
700 troops for now, according out attacks abroad.
to allied diplomats. NATO and He authorized the Pentagon
U.S. officials declined to an- to raise troop levels based on
nounce specific numbers. military needs. He said he
The number of allied con- wouldn’t provide a “blank
tributions is likely to cause check” for U.S. support for the A video image from the government-controlled Syrian Central Military Media shows firing on militant positions on the Iraq-Syria border.
consternation in Washington. Afghan government but also
President Donald Trump has
pushed NATO allies to spend
more on defense and increase
said he wouldn’t set a timeta-
ble or specify benchmarks to
end U.S. military involvement.
ISIS Ousted From Last Urban Redoubt in Syria
counterterrorism efforts, Since the start of the year, BY NOUR ALAKRAA swath of Syria and neighbor- terrorist threat, inspiring at- that came together to fight the
which officials have said the Taliban have increased the AND ISABEL COLES ing Iraq. The town, which is tacks including a recent deadly terror group are prioritizing
means contributions to the Af- territory they control or have located in oil-rich Deir Ezzour Halloween truck-ramming in their own conflicting agendas.
ghanistan mission. influence over, according to the The Syrian government and province, had been used by New York and a string of as- Syrian President Bashar al-
NATO Secretary-General Jens U.S. authority on reconstruc- its allies claimed victory over the group to store and develop saults across Europe. Assad recently hinted that af-
Stoltenberg said the process tion there. Kabul suffers regular Islamic State in its last urban weapons and train fighters. The Syrian army, backed by ter Islamic State he might seek
wasn’t complete, but he hoped militant attacks, most re- stronghold in the country on In recent months, the group Russian air forces and Shiite to regain territory from the
that next year the alliance force cently on Tuesday, when two Thursday, pushing remnants of has been routed from most of militias supported by Iran, sur- U.S.-backed Syrian Democratic
would be about half troops suspected Islamic State gunmen the group into the desert strad- its onetime strongholds in- rounded Albukamal from two Forces, which control more
from outside the U.S. “We still disguised in police uniforms at- dling the border with Iraq. cluding its de facto capitals of sides early Wednesday before than a quarter of the country
have some gaps we will con- tacked a Pashto-language tele- The loss of the border town Raqqa and Mosul by an array retaking the town, according including Raqqa.
tinue to work on,” he said. vision station, leaving at least of Albukamal comes during of forces, some backed by a to the U.K.-based Syrian Ob- In Iraq, the government
The U.S. has roughly 14,000 one person dead and dozens of the twilight of the so-called U.S.-led international coalition servatory for Human Rights. mobilized troops against its
troops in Afghanistan, with others wounded. caliphate, or religious empire, and others by Russia and Iran. As the threat of Islamic former Kurdish allies last
most assigned to the NATO —Ehsanullah Amiri in Kabul Islamic State declared in 2014 Though it has lost territory, State recedes in Syria and month after they held a refer-
mission and the rest working contributed to this article. that once spanned a vast it has also remained a global Iraq, the different factions endum on independence.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10 | Friday, November 10, 2017
SNAP
Continued from Page One
2 and soared 44% on the first
day of trading.
Eight months later, after a
third weak quarterly earnings
report in a row, Snap shares
are wallowing more than 25%
below their offering price.
On Tuesday, Snap reported
its quarterly loss had more
than tripled, sending shares
down 18% over the following
two days. Its previous two
quarterly reports had also
made clear revenue wasn’t
meeting expectations, user
growth was slowing amid
fierce competition from Face-
book Inc. and a high-profile
product launch had fizzled.
Investors and bankers had
hoped Snap would thrive as a
public company and awaken
what had been a largely dor-
mant tech IPO market. Instead,
the company’s struggles have
further strengthened the im-
pulse for highly valued start-
ups to opt for private capital.
After the earnings report on
Tuesday, Mr. Spiegel said in a
conference call with analysts
that Snap would overhaul the
Snapchat app. He also ac-
knowledged he misjudged de-
mand for Spectacles, the video-
recording sunglasses that had
a buzzy launch a year ago.
Snap said it recorded $39.9
million in charges in the quar-
ter, primarily because of excess
Spectacles inventory.
On Wednesday, Snap dis-
closed that Chinese internet gi-
ant Tencent Holdings Ltd. had
recently bought a 12% stake,
adding to an earlier stake and
becoming one of its largest
shareholders.
Mr. Spiegel has been upbeat
about the company and its IPO
recently, saying that going
public was the right thing for
Snap at the time. He also said
he has learned some lessons.
“I think one of the things I
did underestimate was how
much more important commu-
nication becomes,” he said last
month during the Vanity Fair
New Establishment Summit in
Beverly Hills. “When you go
public, you need to explain to a
huge new investor base how
your business works.”
Competition was fierce for
the Snap deal. Morgan Stanley
won the lead underwriting
job—tech banker Michael
Grimes rented an apartment
near Snap’s main office.
Goldman Sachs Group Inc.
also secured a top spot, along
with J.P. Morgan Chase & Co.,
Deutsche Bank AG, Barclays
PLC, Credit Suisse Group AG
and Allen & Co.
Hungry for fees
Stock-underwriting activity
was in the doldrums in 2016—
money raised by U.S. IPOs was
the lowest since 2003, accord-
ing to Dealogic—and banks
were hungry for fees. The last
high-profile technology offer-
ing had been Chinese e-com-
merce giant Alibaba Group
Holding Ltd.’s U.S. listing in
2014.
Many of the fastest-growing
tech startups are remaining
unlisted, putting them out of
reach for the average investor.
At least 160 venture-backed
companies in the private mar-
ket are valued at more than $1
billion, compared with 45 at
HOME
Continued from Page One
“First Home” signs or heart-
shaped hand poses around
new keys. Others are captured
dancing in their bedrooms or
giving piggyback rides through
the front door.
Real-estate agents are tak-
ing note, and playing along.
People 36 and younger, or the
millennial generation, were
the largest group of home
buyers, at 34%, from July 2015
until June 2016, according to a
National Association of Real-
tors report. And roughly two-
thirds of those buyers were
also rookies, according to the
March report, the most recent
generational data available.
Joey Cabibbo and his now-
wife, Morgan, were so excited
about their new home they
posted a photo of themselves
on Instagram sitting on their
front lawn with the “SOLD”
sign “before we even got the
keys,” Ms. Cabibbo said.
A few days later—after gar-
nering around 100 likes and
more than a dozen com-
ments—they did a photo shoot
with photographer friend
Dawn Richardson around their
newly built home in Boerne,
Sean Stiefel of the Navy Capital Opportunities Fund worried before the IPO about Snap’s competition but wanted to be part of the deal.
the start of 2014, according to
Dow Jones VentureSource.
Investors viewed Snap’s of-
fering as a chance to get into a
young and promising company.
Founded in 2012, Snapchat was
one of the most popular apps
in the U.S.; it now has about
178 million global daily users.
It makes money from advertis-
ers who pay to reach its cov-
eted audience of young people.
In 2013, the company re-
buffed an acquisition offer
from Facebook worth about $3
billion, eventually turning the
giant into a potentially lethal
competitor. In August 2016,
Facebook launched Instagram
Stories, a product similar to a
Snapchat feature that lets us-
ers create a series of videos
and images that disappear af-
ter 24 hours. The product now
has more than 300 million
daily active users, surpassing
Snap.
The Facebook launch coin-
In a fever for a big
stock listing, bankers
allowed Snap to set
the IPO terms.
cided with a slowdown in
Snap’s user growth. The IPO
filing said user growth had
slipped to 7% in 2016’s third
quarter, compared with 17% in
the second quarter. On Tues-
day, Snap reported user
growth in the most recent
quarter had fallen to 2.9%.
Ahead of the IPO, concerns
had been growing about the
lack of information on how
Snap would defend against
competition.
At a company all-hands
meeting in January, a Snap
employee said the company
would reach a saturation point
in the U.S., according to a per-
son present at the gathering in
an airplane hangar in Santa
Monica, Calif. The employee
wanted to know about the
company’s growth strategy
overseas, since Facebook was
imitating many of Snap’s fea-
tures and signing up droves of
users in Asia and India, the
Texas. Pretty soon Mr.
Cabibbo was flinging Ms.
Cabibbo over his shoulders in
their driveway. Then he gave
her a piggyback ride in front
of their wooden garage door
and stone three-arch entry
area.
In October, it was Ms. Rich-
ardson’s turn in front of the
lens. When she and her hus-
band bought their first home,
she had one of the photogra-
phers she works with docu-
ment the event.
Despite 95-degree Texas
weather, Ms. Richardson
donned a gray sweater and
dark blue skinny jeans. Never
mind the heat. “I wanted that
cozy feel,” she said.
“AHH!! #Adulting,” she
wrote on her blog when post-
ing the pics.
Although they are inten-
tionally sharing news of their
purchase, some buyers are
surprised by the attention
they get.
Home buyer Nicole Salas,
28, her husband Jay, 27, and
their younger son posed for
pictures with a custom toolbox
at the title-insurance company
where their closing took place.
After their real-estate agent
posted the photo in July, 550
people liked it. “I noticed a lot
of people had commented, so I
IN DEPTH
person said.
Mr. Spiegel’s response: Peo-
ple feel more free to express
themselves on networks of
close friends, according to a
person familiar with the meet-
ing.
The CEO has dismissed
ideas that rely heavily on data,
according to people who have
worked with him. He prefers to
study the experience of users
for cues on revisions and new
features, some of the people
said.
On Feb. 2, Snap filed with
the Securities and Exchange
Commission. In its paperwork,
the company listed Instagram
Stories as a potential risk to its
business. It said revenue was
$404.5 million in 2016, up
nearly sevenfold from a year
earlier, but said its growth in
daily active users was slowing.
Three weeks later, several
hundred analysts and portfolio
managers crowded into a ball-
room of New York City’s Man-
darin Oriental hotel to hear ex-
ecutives pitch the IPO and
answer questions. Mr. Grimes,
the Morgan Stanley banker, in-
troduced Mr. Spiegel as a
“once-in-a-generation” founder,
according to people present.
Some people who attended
the lunch said they wanted to
hear from Mr. Spiegel on many
of their pressing business
questions, including the com-
pany’s plans for generating ad-
vertising revenue, but that
chief strategy officer Imran
Khan generally fielded them.
Investors said Mr. Spiegel
focused on his vision instead of
the numbers, and that their
questions were answered with
generalities.
Sean Stiefel, manager of the
Navy Capital Opportunities
Fund, was among those at the
Mandarin hotel. Mr. Stiefel
said he had some concerns
about the company—top of his
mind was that when he went
home at night he found himself
checking too many social-me-
dia platforms, including Face-
book, Instagram, Twitter and
LinkedIn, as well as Snapchat.
He said he worried about how
Snap would be able to keep up.
Still, Mr. Stiefel didn’t want
to miss out on the investment.
When he called his Goldman
was like ‘Do these people
know us?’” Ms. Salas said.
Blair Pomeroy and her hus-
band, Matt, had a photo shoot
in 2015 showcasing their new
home in Florence, Ky.
One of her favorite photos
came from an idea she spotted
on Pinterest. Before the couple
posed for pictures in their
bedroom—pre-furniture—
they tested a paint sample by
drawing an outline of a house.
She added “home sweet
home” above the painting and
three hearts coming out of the
fake chimney. The couple later
used the photo for their
housewarming-party invita-
tions.
Not all the attention is pos-
itive. Some of the pictures
posted by HomeSmart Realty
Group in Greenwood Village,
Colo., have been labeled “fake
news” by other Facebook us-
ers. Their beef: They can’t be-
lieve so many millennials are
buying their first home.
“Its [a] scam people,” one
person commented in late Oc-
tober. Another wrote on a
first-time homebuyer’s post: “I
don’t understand how some-
thing like this could be a home
for a first-time buyer. This is
something you would really
have to work for. Unless you’re
related to daddy mcbigbucks.”
Disappearing Value
Snap's share price has tumbled as user
and revenue growth have weakened.
$30
1 2
20
IPO price: $17
10
0 nue and profit, while Amazon
M A M J
1 March 2
44% increase on
first day of trading
2 May 10
1Q report shows
slow user growth
3 July 10
Shares fall below IPO price
Source: FactSet
Sachs banker to tell him he
wanted to buy shares in the
deal, he added half-jokingly
that his order was good “for
the first two price-range in-
creases”—expecting the offer-
ing to have so much demand
that the initial price would
ratchet up.
“People love the space, and
it isn’t like there’s a new en-
trant every quarter or every
year even,” he said in February.
A major concern was Snap’s
plan to sell shares that carried
no voting rights, according to
investors and bankers who at-
tended roadshow events. Mr.
Spiegel and co-founder Bobby
Murphy would retain roughly
90% of voting control once the
company went public.
One banker involved in the
IPO said he thought the lack of
voting shares and other deci-
sions could imperil the com-
pany’s standing with investors,
possibly hurting its stock price.
Joey Cabibbo and now-wife, Morgan, at their new home in Texas.
Past clients have then com-
mented that, yes, they did in-
deed buy their home and
sometimes post additional
photos as proof.
While the purchases may be
real, what people post is
sometimes an altered reality.
About three years ago, pho-
tographer Jennie Simison did
a first-home photo shoot in
San Antonio.
The buyers wanted to get
the raw look of their new
3 4 5
J A S O
4 July 31
S&P faults multiple-class
share structure
5 Aug. 10
2Q report shows
loss quadrupled
6 Nov. 7
3Q report shows weak
revenue, slow user growth
THE WALL STREET JOURNAL.
But he said he didn’t articulate
that to Snap’s executives for
fear of jeopardizing his spot on
the prized deal.
The lack of voting shares
translates to an “unaccount-
able management team,” Mi-
chael Pachter, an analyst who
covers the company for Wed-
bush Securities, said last
month. “If investors don’t like
the direction a company is tak-
ing, they can’t do anything
about it.”
Index provider S&P Dow
Jones Indices said July 31 it
would bar newcomers with
multiple classes of shares from
some of its indexes over con-
cerns about investors getting
limited or no voting rights.
That means Snap won’t be eli-
gible to be included in the
benchmark S&P 500, which a
company of its market cap
could have expected to be in-
cluded in as soon as 12 months
after its IPO if it reported
home, so they just had camp-
ing chairs in the house. But
the front of the house, which
had yet to be landscaped, was
too raw. So Ms. Simison
photo-shopped grass onto the
area where their lawn should
have been, and onto their
neighbor’s, too.
In Colorado Springs, Colo.,
Maria Hernandez’s husband,
Domingo, wasn’t able to make
the final walk-through of the
home they were buying. No
THE WALL STREET JOURNAL.
steady profits. That means its
stock price won’t benefit from
the forced buying from the
popular index funds that track
it.
Camera company
Some advisers to Snap
ahead of the listing also pri-
vately questioned the com-
pany’s decision to describe it-
self in the IPO filing as a
camera company, versus a so-
cial-media company. They said
that might imply to investors
that the company was going to
focus on hardware, such as
Spectacles, rather than the
Snapchat app.
Snap priced the shares at
$17 apiece. On March 2, Snap’s
MICHAEL BUCHER/THE WALL STREET JOURNAL
first day of trading, the stock
closed at $24.48, the biggest
one-day pop for a U.S.-listed
IPO that raised at least $1 bil-
lion in more than two years,
according to Dealogic.
Shares remained buoyant
until May. Snap’s first quar-
terly report showed user
growth slowed to 5%, sending
shares tumbling 20%. By early
July, shares had fallen below
the IPO price and have never
recovered, including two big
swoons when S&P faulted the
multiple classes of shares and
when Snap released a second
quarterly report of disappoint-
ing earnings in August.
“I can’t remember another
6
time when a company gave as
little direction as Snap did,”
said Sam Kemp, senior internet
research analyst at Piper Jaf-
fray & Co., which wasn’t in-
volved in the IPO. He initiated
coverage on Snap in March at
$23 a share, but has since low-
ered his price target to $12.50.
Mr. Kemp said he covers
other tech companies that give
limited guidance, such as Face-
book and Amazon.com Inc.
Facebook, for example, gives
regular guidance on operating
and capital expenses rather
than annual guidance for reve-
N releases its outlook for revenue
and operating income, but
doesn’t forecast earnings per
share.
But those companies “are
extremely established” and
have demonstrated their ability
to make money, he said. “Snap
came in and immediately…tried
to be one of those companies
without having a defined track
record.”
In 2012, Facebook’s stock
closed below its IPO price of
$38 a share on its second day
of trading and failed to return
to that level for more than a
year. Early on, the social net-
work faced questions about the
utility of its ads, as well as pri-
vacy issues and concerns about
its strategy in mobile devices.
But the company went on to
dominate the online advertis-
ing market along with Google
parent Alphabet Inc., with its
growing market share driving
its stock higher. These days,
the stock trades at around
$180.
In late September, Morgan
Stanley CEO James Gorman
said he would encourage inves-
tors to focus more on Snap’s
business than its stock price.
“Stop worrying about how the
price trades for a few weeks,”
he said at The Wall Street
Journal’s Future of Finance
event. Instead, he said he fo-
cuses on the long term. What
the company has done so far is
“extraordinary,” he said.
matter. Ms. Hernandez Face-
Timed her husband as she
walked through the house.
Later that day, she posed
with a toolbox in front of the
house—and her husband’s im-
age on the phone next to her.
The picture got 273 likes.
However people react to
the pictures, real-estate agents
have discovered they are good
for business. Corey Maurice
Gilmore, an associate broker
at Capstone Realty in Hunts-
ville, Ala., said social media
has a “huge role” with first-
DAWN ELIZABETH STUDIOS
time home buyers he works
with.
“It’s kind of like a domino
effect: I see a lot of people, a
lot of circles of friends, buy
houses around the same pe-
riod of time...because they are
seeing their friends make
home purchases,” he said.
He’s also learned some new
tricks of the trade. More than
a year ago, Mr. Gilmore photo-
graphed a couple who bought
a house in Madison, Ala. The
wife quickly texted him: “I
hate those pictures,” she
wrote, begging him not to post
them on Facebook.
Mr. Gilmore said he now
takes at least 10 pictures of
new home buyers, making sure
they will have plenty to
choose from.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * NY Friday, November 10, 2017 | A10A

PAID ADVERTISEMENT

Chinese President Xi Jinping hosts

Chinese initiatives
the 22nd Asia-Pacific Economic
Cooperation (APEC) Economic
Leaders' Meeting at the Yanqi Lake
International Convention Center

steer aPeC toward

in the northern suburb of Beijing,
capital of China, Nov. 11, 2014.
(XINHUA/LAN HONggUANg)

Close CooPeration

Leaders of 21 Pacific Rim economies are set to renew their endeavors to advance reional interation and fore stroner
partnerships at the upcomin Asia-Pacific Economic Cooperation (APEC) meetin in Da Nan, Vietnam. Initiatives that
emphasize the concepts of openness, cooperation and sharin in lobal economic overnance are steerin APEC members
toward achievin their development oals and expandin mutually beneficial cooperation.

LEADING ECONOMIC
INTEGRATION
An expression of China’s steady
pursuit of lobalization, the Free
Trade Area of the Asia-Pacific
(FTAAP) has been envisioned as a
major instrument for ensurin an
open economy in the reion amid
worries over trade protectionism
and lack of rowth momentum.
Hailed as “a strateic initia-
tive critical for the lon term
prosperity of Asia-Pacific” by
Chinese President Xi Jinpin in
his keynote speech at the APEC
CEO Summit in Lima last year, the
FTAAP has been ainin momen-
tum. The approval at the APEC
Economic Leaders’ Summit last
year of a collective study on the
trade bloc was first substantive
step toward its eventual realiza-
tion.
“We need to stick to our aenda
and take more effective action to
realize the FTAAP at an early date;
brinin about an Asia-Pacific
economy with reater openness,”
Xi stressed.
By encompassin all 21 APEC
economies throuh trade liber-
alization, the FTAAP, once estab-
lished, will become the world’s
larest free trade zone, coverin
57 percent of the lobal economy
and nearly half of world trade.
“The FTAAP is hihly inclusive
and embraces economies at dif-
ferent levels of development. It will
fully accommodate their devel-
opment needs and, once estab-
lished, will deliver economic ains
dwarfin any existin reional
FTAs,” said Zhan Jun, director-
eneral of the Department of
International Economic Affairs at
the Chinese Forein Ministry.
Promotin the FTAAP based
on the Trans-Pacific Partnership
(TPP) and the Reional Compre-
hensive Economic Partnership
(RCEP) is an ideal plan, iven
the TPP is at an impasse and the
RCEP faces major challenes due
to different levels of development
in its member economies, Wan
Jianyu, associate professor at
Faculty of Law of National Univer-
sity of Sinapore, opined.
The RCEP is a free trade pact
involvin the 10-member Associa-
tion of Southeast Asian Nations
(ASEAN) and six other coun-
tries—China, India, Japan, South
Korea,Australia and New Zealand.
China can conduct bilateral free
trade neotiations with countries
willin to open their markets
within the RCEP framework and
uprade existin bilateral free
trade deals to promote the forma-
tion of the RCEP, believes profes-
sor Wan.
REGIONAL CONNECTIVITY
While all 21APEC members have
demonstrated leadership in one
way or another, China has shown
stron leadership on a whole rane
of initiatives, Alan Bollard, APEC’s
executive director, told Xinhua
recently.
The APEC Connectivity Blue-
print 2015-2025, which promises
tanible action on physical, insti-
tutional and people-to-people con-
nectivity, was adopted at the 2014
APEC Leaders’ Summit meetin
in Beijin to brin APEC econo-
mies closer. As a sinificant action
plan for ’lon-term development,
the Blueprint reflects the common
aspiration of APEC members for
improved connectivity.
The China-proposed Belt and
Road Initiative has also contrib-
uted in this reard, Wu Honyin,
director of the LatinAmerica office
of the China Institute of Contem-
porary International Relations
noted.
With a focus on connectivity,
the Belt and Road Initiative has
been alined with many reional
and national development strate-
ies and produced tanible results
after bein launched in 2013. By
May 2017, China’s overall invest-
ment in Belt and Road countries
had surpassed US$50 billion.
Chinese companies had set up 56
economic and trade cooperation
zones in over 20 countries, en-
eratin some US$1.1 billion in tax
revenue and 180,000 jobs.
China has also sined coop-
eration areements with over
40 countries and international
oranizations, and established
industrial capacity cooperation
mechanisms with more than 30
countries.Between 2014 and 2016,
total trade volume between China
and other Belt and Road countries
exceeded US$3 trillion.
“It is a very bi project, which is
different from a trade areement,
as we see it as a series of infra-
structure projects and economic
connectivity schemes. The eco-
nomic connectivity part is much in
line with the APEC’s connectivity
Blueprint. It's interestin to see
what it can produce,” said Bollard.
In addition, China has played
a positive role in creatin shared
interest for reional economies
alon with its own development
plans throuh such proposals as
the Asian Infrastructure Invest-
ment Bank (AIIB) and the Silk
Road Fund. As of May 2017, the
AIIB has provided US$1.7 billion
in loans to nine projects in Belt
and Road countries, while invest-
ment from the Silk Road Fund
has amounted to US$4 billion.
All these efforts contribute to the
implementation of the United
Nations 2030 Sustainable Devel-
opment Aenda.
INNOVATION & STRUCTURAL
REFORM
Amid a slow and fraile lobal
economic recovery, reform and
innovation are heralded as a recipe
to lackluster economic rowth in
the Asia-Pacific reion.
“China’s stance is incredibly
important at this particular time.
To realize its full economic poten-
tial, it will have to make sinificant
reforms and move forward on
that,” Peter Drysdale, head of the
East Asian Bureau of Economic
Research of Australian National
University, told Xinhua.
The onoin supply-side struc-
tural reform and supportive poli-
cies for innovative entrepreneur-
ship in China have produced
a positive effect on economic
rowth. They have led to a retreat
of overcapacity, and to flourishin
hih-tech and service industries,
amon others.
China aims to boost hih-stan-
dard, shared and reen develop-
ment to make life better for its
people.
Chinese innovation offers an
inspiration for many Asia Pacific
economies, accordin to Zhon
Feiten, a research fellow on Asia-
Pacific and lobal stratey from
the Chinese Academy of Social
Science (CASS).
In Drysdale’s view,ifAPEC mem-
bers press ahead with their own
reform aendas collectively, they
will reinforce each other’ s liberal-
ization and reform prorams.
In this context, “Asian countries
must lead in lobal economic
overnance because they are the
focus of the world’ s attention.
They are the ones that have to
deliver,” said Drysdale.

Fuxing train C2001 is seen arriving at Tianjin Railway Station, Aug. 21, 2017. China's new-generation bullet trains, the Fuxing, were put into operation on the Beijing-Tianjin Intercity Railway Aug. 21. (XINHUA/YANg BAOSEN)

Paid for and prepared solely by the Xinhua News Aency, the official press aency of the People's Republic of China.
The Wall Street Journal news oranization and advertisin department were not involved in the creation of this content.
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THE WALL STREET JOURNAL.
GREATER NEW YORK
Prospect Raised of New Fare Hikes
Comptroller cites cost
of fixing the subway,
but MTA chief rejects
unplanned increases
BY PAUL BERGER
The Metropolitan Transpor-
tation Authority may have to
raise fares and tolls over and
above planned increases un-
less the agency can find new
funding sources to fix the sub-
way, the New York state comp-
troller warned in a report re-
leased Thursday.
But MTA Chairman Joe
Lhota rebuffed the notion,
calling such talk “fearmonger-
ing.”
“Funding subway repairs
will not come on the backs of
riders,” he said in a statement
to The Wall Street Journal.
Comptroller Thomas Di-
Napoli said the MTA’s finances
ANDREW GOMBERT/EPA/REX/SHUTTERSTOCK
Two police officers stood guard outside Trump Tower in August ahead of a visit to New York City by President Donald Trump.
Condo Prices Take a Hit at Trump Tower
BY JOSH BARBANEL
Condominium prices are
dropping at Trump Tower,
President Donald Trump’s
property on Fifth Avenue in
Manhattan, more than at simi-
lar buildings across the city.
The median sale price and
average price per square foot
both are down sharply since
2015, when Mr. Trump
launched his campaign for
president, and now are plumb-
ing depths last visited during
the financial crisis.
Brokers aren’t sure whether
the weakness is due more to
Trump Tower-specific issues,
such as tightened security, dem-
onstrations and antipathy to-
ward Mr. Trump, or to a slowing
luxury condo market in general
across Midtown Manhattan.
Boaz Mashiach, a principal
of the Mashiach Real Estate
Group, who is listing two adja-
cent apartments on the 42nd
floor of Trump Tower for $7.8
million, said the overall market
was “very soft right now” but
that Mr. Trump’s presidency
also could be a factor.
“Some people don’t like to
live in his building—and there
Queens Man Guilty of Killing NYPD Detective
BY ZOLAN KANNO-YOUNGS
A jury convicted a Queens
man Thursday of fatally shoot-
ing a 25-year-old New York
City police officer in the head
in 2015.
After a three-week trial, ju-
rors found Demetrius Black-
well, 37 years old, guilty of
first-degree murder in the
death of Brian Moore, and at-
tempted murder of his patrol
partner.
“At the end of the day I did
lose my son and at the end of
the day there was justice done
for his killing,” said Irene
Moore, whose son was posthu-
mously promoted to detective.
“There is a hole and a void
that will never ever be re-
filled.”
Mr. Blackwell, who faces life
* *
increasingly have been
strained by a growing backlog
of subway repair and upgrade
work, as well as rising mainte-
nance and debt-service costs.
He said budgeted toll in-
creases won’t be enough to
cover looming costs, and that
without help from New York
state and New York City “the
MTA may have to raise fares
and tolls faster than planned
to maintain, modernize and
expand the system.”
The MTA has budgeted for
toll and fare increases of 4% in
2019 and 2021, subject to MTA
board approval. The authority
runs the city’s subway system
and buses, two commuter rail-
roads and nine bridges and
tunnels. More than half of the
authority’s nearly $16 billion
in revenues come from tolls
and fares.
Subway delays increased
83% between 2013 and 2016,
according to the comptroller’s
are some people who want to
live only in his building,” he
said.
Trump Tower is now a bar-
gain because prices since 2015
have fallen to levels that are
“not indicative of the building’s
relative value,” said Gabby
Warshawer, director of re-
in prison without parole, is
scheduled for sentencing on
Dec. 12.
His attorney, David Bart, ar-
gued that because Mr. Black-
well suffered from “extreme
emotional disturbance” he
should have been charged with
manslaughter, not murder.
Detective Moore was shot
when he and his partner, Offi-
cer Erik Jansen, traveling in an
unmarked police car, pulled
alongside Mr. Blackwell on a
Queens Village street on May
2, 2015, authorities said.
After Mr. Blackwell tugged
at his waistband, authorities
said, Detective Moore asked
him if he had something on his
person. “ ‘Yeah, I got some-
thing,’ ” Mr. Blackwell replied,
according to prosecutors, be-
fore firing three shots at the
NY
report, which also said trains
are breaking down with
greater frequency, and 40% of
signals are more than 50 years
old.
Mr. Lhota this past summer
announced an $836 million
short-term plan to address
some of the most frequent
$8B
Estimated cost of second phase
of a subway-improvement plan.
causes of delays. The work
would include expediting sig-
nal repairs and launching an
aggressive track-cleaning pro-
gram to reduce fires.
He called on New York City
to fund half of the proposal.
The city refused, accusing the
search at CityRealty.com, which
provides New York City real es-
tate listings and data.
The Trump Organization,
which manages the condo at
Trump Tower, attributed price
shifts at major Trump proper-
ties to year-over-year price de-
clines in “the entire luxury
market.”
“Despite that, Trump build-
ings have continued to be a
leader in average [price per
square foot] against competi-
tors,” a Trump Organization
spokeswoman said.
During and after the cam-
paign, many observers noted
price reductions on listings at
Trump Tower, but now, a year
after Mr. Trump’s election, hard
sales data are becoming avail-
able.
In five transactions so far
this year, the average price per
square foot in Trump Tower of
about $2,100 was down 13%
from 2016 and 23% from 2015,
according to sales data com-
piled by CityRealty. That was
the lowest figure since 2009.
The median sale price of $2.2
million so far in 2017 was the
lowest since 2007.
In contrast, prices per
officers. Detective Moore was
hit twice in the head.
He was taken off life sup-
port two days after the shoot-
ing.
Mr. Bart argued that testi-
mony from witnesses revealed
different versions of Mr. Black-
well’s response. The gun found
by police contained DNA evi-
dence that linked Mr. Blackwell
to the shooting, according to
prosecutors.
“I’d like to walk up to him
and tell him, ‘Yeah, I got some-
thing for you,’ and put two bul-
lets in his head,” said Raymond
Moore, the fallen detective’s
father, on Thursday outside the
courthouse after the verdict.
“The jury fairly weighed all
the evidence offered by both
sides before concluding…that
the defendant deliberately
state of siphoning about $500
million from the MTA since
2011 to pay other state ex-
penses.
Mayor Bill de Blasio has
proposed that additional reve-
nue can be raised through a
tax on the city’s highest earn-
ers.
“The mayor’s plan to ask
the wealthiest New Yorkers to
chip in a little extra for the
subways remains the only real
proposal on the table,” said
Austin Finan, a spokesman for
Mr. de Blasio.
New York Gov. Andrew
Cuomo has expressed interest
in a vehicle congestion charge
to drive into Manhattan that
could be used to partially fund
the MTA.
Mr. Lhota, who was ap-
pointed by Mr. Cuomo, said:
“We are extremely encouraged
by the growing support for
congestion pricing and we cat-
egorically reject the idea of
square foot across Midtown
Manhattan, excluding new de-
velopments, have risen 0.3%
since 2015, while the median
price has increased 5.6%, after
rocketing higher in the wake of
the financial crisis of 2008, ac-
cording to figures from Brown
Harris Stevens.
Prices per square foot rose
at older Midtown towers such
as CitySpire on West 56th
Street, up 5.4% since 2015, and
Metropolitan Tower on West
57th Street, up 0.4%. Price per
square foot has declined 17%
at Olympic Tower, a 51-story
high-rise on Fifth Avenue near
East 52nd Street, a building
that brokers often compare
with Trump Tower a few
blocks away.
Richard Tayar, a broker at
Keller Williams NYC, who has
two listings at Trump Tower,
said many New Yorkers and
Americans were avoiding the
building while international buy-
ers were looking to buy there.
“They don’t have a very
strong problem with the presi-
dency,” he said. “They believe in
the building. It is an iconic ad-
dress. You have cachet that
other buildings might not have.”
fired a weapon at the two po-
lice officers without provoca-
tion or warning, killing one of
them,” Queens District Attor-
ney Richard Brown said in a
statement.
Three other New York Police
Department officers have been
fatally shot since the killing of
Detective Moore: Officer Ran-
dolph Holder in October 2015,
Sgt. Brian Tuozzolo in Novem-
ber 2016 and Officer Miosotis
Familia in July.
Patrick Lynch, president of
the Patrolmen’s Benevolent As-
sociation, sat in the courtroom
Thursday while the verdict was
read, along with dozens of
other law-enforcement mem-
bers. “This tragedy is not new
to New York City police offi-
cers,“ Mr. Lynch said outside
the courthouse.
Friday, November 10, 2017 | A10C
Subway delays increased 83% between 2013 and 2016, according
to a report issued by state comptroller Thomas DiNapoli’s office.
any unplanned fare increases.”
The MTA has begun draw-
ing on its reserves to finance
the subway-action plan, Mr.
DiNapoli said. He warned that
increased maintenance of sub-
way equipment could lead to
an annual rise in costs of $300
million beginning as early as
2019.
Divided Menendez
Jury Will Restart
Its Deliberations
BY THOMAS MACMILLAN
After more than three days
of deliberation in the bribery
and corruption trial of Sen.
Bob Menendez, the jury is split
and not close to a decision,
said a juror who was excused
from the panel Thursday.
The juror, Evelyn Arroyo-
Maultsby, was replaced at the
end of the day by an alternate,
fulfilling a promise from the
judge. Ms. Arroyo-Maultsby
was excused to attend a cruise
for a family wedding.
After leaving the federal
courthouse in Newark, Ms. Ar-
royo-Maultsby said she would
have voted to acquit the Dem-
ocratic senator. She said the
government was trying to
“railroad” him. “They’re just
trying to throw a good man
under the bus,” she added.
Her comments offer the first
glimpse into what has been oc-
curring this week inside the
deliberation room, where 12 ju-
rors are deciding a case that
could affect the balance of
power in the U.S. Senate.
The jury is charged with de-
termining the fate of Mr. Me-
nendez and Florida eye doctor
Salomon Melgen, his co-defen-
dant. The men are accused of
participating in a yearslong
scheme in which the doctor al-
legedly bribed the senator with
private flights, luxury vacations,
and campaign contributions in
exchange for political favors.
If convicted, Mr. Menendez
could serve prison time and be
forced to step down from his
Senate seat. The most serious
charge carries a maximum
sentence of 20 years.
Both men have pleaded not-
guilty. Their lawyers say the
government is trying to crimi-
nalize a genuine friendship.
Ms. Arroyo-Maultsby, a 61-
year-old NJ Transit payroll au-
ditor, said the prosecutors’
case didn’t convince her.
“They didn’t give me enough
to show me it was bribery.
They were friends.”
Ms. Arroyo-Maultsby said
most jurors think the defen-
dants aren’t guilty, including
three jurors who are abso-
lutely convinced. Another
Democratic Sen. Bob Menendez arrives at federal court in Newark.
FRANK FRANKLIN II/ASSOCIATED PRESS
It is unclear where the MTA
would find the funds neces-
sary to finance the second
phase of Mr. Lhota’s subway-
improvement plan, which is
designed to modernize the
system at an estimated cost of
$8 billion, Mr. DiNapoli said.
The MTA hasn’t said when
that phase would begin.
group is equally firm on the
other side, she said.
“Really, there’s three that say
that they’re guilty and they’re
not changing their mind,” she
said. “I think it’s going to be a
hung jury. I guess they might
have to do another trial.”
Judge William Walls said
last week that replacing a ju-
ror would mean the panel will
have to start deliberating
“from scratch.” But even
though jurors are supposed to
begin from square one when a
member is replaced, that can
be difficult to do in practice,
especially after the panel has
been deliberating for days, le-
gal experts said.
“That’s such a substantial
amount of time that I think it’s
going to be a real challenge to
start over,” said Valerie Hans,
a law professor at Cornell Uni-
versity.
‘They’re just trying
to throw a good man
under the bus,’ says
an excused juror.
Jurors already may have
taken sides and established ar-
guments that can be hard to
discard, she said.
“Throwing someone else
into the mix can be disorient-
ing and can be kind of frus-
trating for the jurors,” said
Andrew Ferguson, a law pro-
fessor and author of the book
“Why Jury Duty Matters.” Ju-
rors may not really be able to
clear their minds, he said.
“You can’t un-ring that bell.”
But a new juror could shake
things up and help a stuck
panel move forward, said
Thaddeus Hoffmeister, a law
professor at the University of
Dayton, who studies juries.
“The biggest thing is you get a
fresh set of eyes.”
Ms. Arroyo-Maultsby was
replaced by another woman,
leaving the jury at seven
women and five men. Jurors
will resume deliberations on
Monday.
PETER FOLEY/BLOOMBERG NEWS
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10D | Friday, November 10, 2017 NY * * THE WALL STREET JOURNAL.

GREATER NEW YORK

Rutgers Gets Soviet Art

A collector donates
17,000 works worth
$34 million to school’s
Zimmerli Art Museum
BY CHARLES PASSY

An art collector is giving

Rutgers University a trove of

CLOCKWISE FROM TOP LEFT: JOHN COPP; MCKAY IMAGING; PETER JACOBS
Soviet work valued at $34 mil-
lion, making it the largest con-
tribution in the school’s history,
Rutgers officials announced
Thursday.
Nancy Ruyle Dodge is giving
the New Jersey school’s Jane
Voorhees Zim- ademic studying the Soviet
FOOD & merli Art Mu- economic system. He and his
CULTURE seum, located on family were successful finan-
its New Bruns- cial investors, which afforded
wick campus, a him the ability to collect, ac-
collection of 17,000 works by cording to published reports.
artists from the former Soviet The Dodges became con-
Union, which broke up in the nected with Rutgers through a
early 1990s. friend and fellow art collector
Interest in such art is grow- who was a university alumnus.
ing, particularly because Rus- Moreover, Rutgers will get
sia is so much in the news a $10 million endowment gift
again and comparisons be- from the Avenir Foundation, Boris Orlov’s ‘The General’ (1982) and Vasilii Sitnikov, ‘Untitled’ (1959), left, are among the Soviet
tween life in the nation during whose president is the sister works collected by Norton Dodge and Nancy Ruyle Dodge, shown in 1991 with their dog, Jeff.
the Soviet period and life to- of the late Mr. Dodge. Rutgers
day are being drawn, museum said the money would help en- “nonconformist art” as a result. Russian cultural scene overall. republics, including Armenia, stood that goal from the time
executives said. “This material sure the Dodge collection is The Dodge collection in- Julia Tulovsky, curator of Azerbaijan, Georgia, Kazakh- the couple made its first art
is becoming more relevant,” properly maintained and made cludes more than 1,000 artists Russian and Soviet noncon- stan, Latvia, Lithuania, donation in 1991.
said Thomas Sokolowski, di- available to the public. and spans the period from the formist art at the Zimmerli, Ukraine and Uzbekistan. As a result, she said she de-
rector of the Zimmerli. The 20,000-plus works from mid 1950s to 1991, when the noted that in the 1980s, Lenin- In a statement, Ms. Dodge cided to entrust the university
The gift adds to a 1991 con- the Dodge family represent a Soviet Union collapsed. The grad (now St. Petersburg) was said the artists featured in the with the 17,000 additional
tribution from Ms. Dodge and significant window into life in works range from paintings on a particular hotbed, where the collection “had been con- works, which represent the re-
her husband, Norton Dodge, of the Soviet era, Rutgers officials canvas and panel to photo- visual arts, film and rock mu- signed to obscurity,” and her mainder of the couple’s Soviet
4,000 similar works. said. The artists who created graphs to videos. sic scenes came together. family’s aim is to honor them collection.
Mr. Dodge, who died in them were outside official gov- In some cases, the art mocks The Dodge collection also by bringing newfound atten- Rutgers is “the best and
2011, became familiar with the ernment circles and their the Communist system. But it looks beyond Russia to include tion to their work. only place for it to reside,” Ms.
art through his work as an ac- pieces often are referred to as also speaks to the vitality of the art from several former Soviet Rutgers, she said, under- Dodge said.

GREATER NEW YORK WATCH

Brooklyn Fire Leaves
WESTCHESTER COUNTY

Outgoing Executive Two Dead, Seven Hurt

Makes Airport Pick BY ZOLAN KANNO-YOUNGS FDNY Chief of Department
James Leonard said fire mar-
Just two days after he lost A fire “spread rapidly” shals were determining the
his bid for a third term, through a three-story Brook- cause of the blaze.
Westchester County Executive lyn building Thursday morn- A 58-year-old man and 56-
Rob Astorino chose a private ing, killing two residents and year-old woman were found
firm to take over operations of injuring seven others, authori- dead by firefighters on the top
the county airport, sparking a ties said. floor of the building, police
rift with his successor. The fire erupted at the said.
Mr. Astorino chose Macquarie building, which housed five Five other civilians were
Infrastructure Corp. out of a to- apartments on the top two treated for exhaustion, smoke
tal of three bidders based on the floors, at 11th Avenue and inhalation and bruises, includ-
GENE J. PUSKAR/ASSOCIATED PRESS

recommendation of a bipartisan 67th Street at 7 a.m., police ing a 4-year-old girl and a 3-
group of legislators from the said. It was upgraded to a month-old boy. Two firefight-
Westchester County Board of two-alarm fire within 10 min- ers were injured; one was
Legislators. utes. treated at a hospital for burns,
That announcement didn’t sit The blaze started on the Chief Leonard said.
well with George Latimer, a ground floor of the building, The identities of the victims
Democrat who beat Mr. Astorino, according to the Fire Depart- weren’t immediately released
a Republican, Tuesday night to ment of New York, which in- by authorities.
become county executive-elect. cluded a nail salon. The fire “spread rapidly
“To commit Westchester to a This year’s Rockefeller Center Christmas Tree was loaded onto a flatbed truck Thursday after being More than 100 firefighters from the first floor up
multiyear-deal in the waning cut from the yard of Jason Perrin in State College, Pa. The tree lighting ceremony is on Nov. 29. and emergency medical tech- throughout the building,”
days of this administration is un- nicians responded and had the Chief Leonard said. The fire
conscionable,” said Mr. Latimer, NEW JERSEY Sheila Oliver will take the helm of ROCKEFELLER CENTER blaze in the Dyker Heights burned through the building’s
who has opposed the airport pri- the Department of Community Af- neighborhood under control hallways, moved up to the top
vatization. Murphy’s No. 2 to Run fairs. The department coordinates Tree Departs for City by 8:16 a.m., officials said. floor and burst through the
If approved, Macquarie would Community Affairs state aid to towns and cities, and The Bureau of Alcohol, To- top floor windows, he said.
receive a 40-year lease and pay oversees code enforcement. Workers on Thursday cut bacco, Firearms and Explo- There were no functioning
the county $595 million over the Democratic Gov.-elect Phil Mur- The state constitution allows down the 2017 Rockefeller Center sives responded to the inci- smoke detectors in the build-
course of the lease. It would also phy says his top deputy also will the governor to appoint his top Christmas Tree, a 75-foot Norway dent, according to law- ing, according to Chief Leon-
invest $550 million in capital lead the department that played a deputy to lead a cabinet post spruce from State College, Pa. enforcement officials, and ard.
funds for airport improvements. key role in helping the state re- without the advice and consent of The tree, weighing over 12 deployed a canine team to de- “We constantly stress these
The full Board of Legislators cover from superstorm Sandy. the Senate, as is required for tons, was expected to arrive in termine whether any sub- smoke alarms; we want people
still needs to approve the deal. Mr. Murphy’s transition office other positions. New York City on Saturday. stance was used to spread the to have it,” he said. “It’s your
—Joseph De Avila said Thursday that Lt. Gov.-elect —Associated Press —Associated Press fire, such as gasoline. first line of defense.”

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THE WALL STREET JOURNAL. Friday, November 10, 2017 | A11

LIFE&ARTS
FILM

Why Hollywood Forgave Mel Gibson

With ‘Daddy’s Home 2,’ the former superstar has his biggest acting role in over a decade after a pair of off-screen offenses
in time, said to one person, in the
BY ERICH SCHWARTZEL
span of one day and doesn’t repre-
AND BEN FRITZ
sent what I truly believe or how
I’ve treated people my entire life,”
Los Angeles Mr. Gibson said in an interview
LAST SUNDAY, a little more than following the leak.
11 years after the obituary for his One year later, Jodie Foster cast
career was written, Mel Gibson him in a movie she was directing,
stepped out of a black SUV to a “The Beaver.” The drama, about a
crowd of fans screaming his name. depressed man trying to get his
Once persona non grata in Hol- life back on track with the help of
lywood for making anti-Semitic, a beaver puppet, flopped.
racist and misogynistic remarks, Direct-to-video B-movies—Hol-
Mr. Gibson walked the red carpet lywood’s equivalent of the bush
for his first starring role in a ma- leagues—were about all the actor
jor studio movie in 15 years with could do, since he was too tainted
“Daddy’s Home 2,” Paramount Pic- for a major studio to touch.
tures’ sequel to the family-friendly After director Robert Rodriguez
2015 hit. It opens Friday. cast him in the 2013 sequel “Ma-
In February, Mr. Gibson at- chete Kills,” studios in the U.S. and
tended the Academy Awards as a abroad said they didn’t want a Mel
nominee for best director for the Gibson movie.
war movie “Hacksaw Ridge.” After “There were a number of coun-
seven years without an agent, he tries where the CEOs of the com-
signed in January with Creative panies were so upset with what-
Artists Agency, a prestigious home ever he said, whether it be about
for Hollywood talent. And Warner women or Jews, they would just
Bros. considered him to direct refuse the movie,” said “Machete
“Suicide Squad 2,” a big budget Kills” producer Sergei Bespalov.
superhero sequel that’s as main- In the U.S., “Machete Kills”
stream as the movie industry gets. ended up going to the small inde-
For Mr. Gibson, the 61-year-old pendent studio Open Road Films.
star known for “Braveheart” and It grossed $8 million domestically,
CLOCKWISE FROM TOP: AFP/GETTY IMAGES; EVERETT COLLECTION; PARAMOUNT PICTURES

“The Passion of the Christ,” it’s al- less than a third of the original’s
most as if the past 11 years never gross.
happened. But Mr. Gibson’s most crucial
Such a turnaround was unfath- move in saving his career came
omable in 2006, when the actor’s Mel Gibson attended the premiere of ‘Daddy’s Home 2’ in Los Angeles. His role in the film, below left, is his biggest in last year, when he moved back be-
anti-Semitic remarks led his indus- over a decade, after a pair of scandals. In his heyday, he starred in blockbusters like ‘Lethal Weapon 2,’ below right. hind the camera. He directed
try to shun him. Superagent Ari “Hacksaw Ridge,” the World War II
Emanuel called for a boycott of the drama about a conscientious ob-
actor. jector persecuted for his beliefs.
Several major actors’, directors’ Mainstream Hollywood studios
and producers’ reputations have still wouldn’t touch the disgraced
recently cratered following allega- star. Producer Bill Mechanic said
tions of sexual harassment and as- he cobbled together a $42 million
sault. Meanwhile, Mr. Gibson— budget from sales to foreign dis-
once a pariah—is experiencing a tributors, private financiers and a
career revitalization. Sunday’s tax credit from Australia, where
premiere followed 11 years of the movie was shot.
work on the fringes of the main- “Mel was always the right guy,”
stream entertainment industry, re- Mr. Mechanic said. “Especially be-
building his reputation with what cause the movie was about for-
associates describe as a newfound giveness and acceptance.”
humility and relying on the sup- In the U.S., independent studio
port of friend Jodie Foster to help Lions Gate Entertainment Corp.
secure the “Daddy’s Home 2” role. agreed to release “Hacksaw,” but
Talent agents, stars and studio an open bottle of tequila in the car like “Lethal Weapon.” As a direc- Any goodwill the movie created only through a deal where it didn’t
chiefs are trying to discern the and a blood-alcohol rate well tor, he had even more success, was wiped out that July, when a invest any money. But when the
half-life of the radioactivity now above the legal limit, told the dep- winning best-picture and best-di- recording leaked of a phone call movie succeeded at the box office
tainting other disgraced figures—a uty: “The Jews are responsible for rector Oscars for 1995’s “Brave- between Mr. Gibson and his then- and earned Mr. Gibson his Oscar
calculation Mr. Gibson and his as- all of the wars in the world.” heart” and creating “The Passion girlfriend, Oksana Grigorieva. On nomination, he became palatable
sociates had to make time and The statements caused an up- of the Christ,” a 2004 biblical the call, Mr. Gibson says if Ms. to a wider swath of Hollywood.
again over the years. roar and Mr. Gibson immediately drama that grossed $612 million Grigorieva were “raped by a pack CAA signed Mr. Gibson in Janu-
A spokesman for Mr. Gibson lost projects. At the time, he de- world-wide. of n-----s,” she would be to blame. ary, after some internal debate.
said the actor wasn’t available for scribed the incident as “despica- Following his arrest, Mr. Gibson Mr. Gibson’s agent at William Mor- Agents felt confident Mr. Gibson
comment. ble behavior.” He pleaded no con- met with Jewish leaders and apol- ris Endeavor dropped the actor. He had redeemed himself personally
Mr. Gibson’s downfall began in test to the charge and received ogized. Hollywood would have also pleaded no contest to a and was once one of Hollywood’s
2006, when his Lexus was stopped probation. none of it. charge of misdemeanor battery of most in-demand directors, a per-
by a sheriff’s deputy for driving 87 Since his arrival in Hollywood in Mr. Gibson disappeared for a Ms. Grigorieva and was placed on son close to the agency said.
miles an hour, nearly double the the 1980s, Mr. Gibson had been a long stretch, not popping up until probation. For “Daddy’s Home 2,” Mr. Gib-
speed limit. Mr. Gibson, who had top box-office draw in franchises 2010 in “Edge of Darkness.” “It’s one terribly, awful moment Please see GIBSON page A13

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.
1 2 3 4 5 6 7 8 9 10 11 12 13 61 Magazine with PUZZLE
30s
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Calgary
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horoscopes CONTEST
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ip 40s 17 18 19 63 Sound meant to
50s 40s 20s
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30s 20 21 22
be heard by only
Montreal
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Bismarckk 40s
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A g t 23 24 25 26 27 64 Two-time World 25 •Where
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Mpls./St. Pau Toronto
T bany t
Boston Series champs of employees log
20s 28 29
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Hartford 60s the 1970s long hours?
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Detroit l
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30s 40s 80s 27 Kicked off
Sacramento Salt Lake City h
Omaha li Pitts
Indianapolis b h
Pittsburgh 35 36 37 38 39
Denver Springfield h on D.C.
Washington D.C
DC 90s Down 29 Meet events
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Charleston 40 41 42 43 44
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RESOURCE MANAGEMENT | By Matt Gaffney 8 Pitches between 47 Groundbreaking
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Today Tomorrow game. 10 Monster 50 44 of 50 current
Philadelphia 39 25 s 41 30 s Havana 83 71 pc 84 70 pc 27 ___ Sea (part of games at state governors
City Hi Lo W Hi Lo W Phoenix 85 60 pc 85 59 pc Hong Kong 83 74 pc 82 70 s Across the Arctic Ocean) halftime Thickburger chain
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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A12 | Friday, November 10, 2017 NY THE WALL STREET JOURNAL.

LIFE & ARTS

Frances McDormand as Mildred
Hayes, left, and Abbie Cornish and
Woody Harrelson, below

sign still hangs on her dead daugh-

ter’s bedroom door, but Mildred is
the dangerous one now, so it’s all
the more remarkable that Ms. Mc-
Dormand’s portrayal is infallibly
interesting and consistently buoy-
ant, even when a given moment
excludes any chance of humor.
Officer Dixon is another story. A
comic-book reader and casual brute,
he’s a mama’s boy whose crone of a
mother, played by Sandy Martin,
has a voice like a shot-clock buzzer.
All the same, Dixon has an unre-
solved soul and remains within
range of his better angels.
Every scene offers surprises, or
revelations. Welby (Caleb Landry
Jones), a front-office rep for the
company that owns the three dis-
plays, is a poster child, or billboard
20TH CENTURY FOX (2)

boy, for the First Amendment until

someone gets to him. Abercrombie
(Clarke Peters), a professional cop
brought in to shore up Ebbing’s po-
lice department, proves to be, of all
things, a pillar of probity. Wil-
loughby savors the perfec-
FILM REVIEW | By Joe Morgenstern tion of a sunny day on a riv-
erbank with his lovely wife,
Anne (Abbie Cornish), and

‘Billboards’: Signs of Life their two young children.

Samara Weaving’s Penelope,
the exceedingly young girl-
friend of Mildred’s ex-hus-

Too Vivid to Miss band, Charlie (John

‘THREE BILLBOARDS Outside
Ebbing, Missouri” expands the po-
tential of outdoor advertising, and
does the same for the movie me-
dium. The billboards convey a star-
tling expression of moral outrage.
The movie is, by turns—and some-
times simultaneously—darkly
comic, blazingly profane, flat-out
hilarious and shockingly violent,
not to mention flippant, tender, po-
etic and profound. Also diffuse, at
least at the outset; the themes take
a while to coalesce. At its core,
Martin McDonagh’s third feature is
a tale of revenge, a testament to
the power of grief and the possibil-
ity of forgiveness, and a hurtling
account of how violence begets vio-
lence, with a brief pause to ask who
actually uses the word “begets.”
Words matter here—Mr. McDon-
agh was a playwright before he
started to make films—and they
flow in an acid torrent from the lips
of Mildred Hayes, a local resident
played with glorious ferocity by
Frances McDormand. Months after
her daughter’s rape and murder, no
suspect has been found and there’s
no sign the cops are looking for one,
so Mildred rents three billboards on
a road near town and posts her own
analog version of a direct message
to the chief of police. (Ben Davis did
the fine cinematography.)
Never mind that the road is sel-
dom used since the interstate went
through. She figures someone
passing by will notice the big
black letters on blood-red back-
grounds, and she’s right; Mildred’s
billboards become the opening
salvo in her war against the chief,
Bill Willoughby, and his nitwit rac-
ist sidekick, Officer Jason Dixon.
(Since praise can get as repetitive
as disparagement, let’s stipulate
that no one in the cast is less than
superb, while Woody Harrelson, as
Willoughby, and Sam Rockwell, as
Dixon, are right up there with Ms.
McDormand in the pantheon of
unforgettable performances.)
At this point the film, set in a
fictional Ozarks town, seems to
have positioned itself shrewdly at
the junction of two contemporary
issues, female rage and empower-
ment (that counts for one), and
police misconduct. But the script
turns out to have been written
eight years ago, and Mr. McDon-
agh is the least issue-oriented of
contemporary filmmakers. He is,
on the evidence of his harshly
beautiful “In Bruges”—no need to
dwell on his unbeautiful “Seven
Psychopaths”—love-and-pain-ori-
ented, blithe-befuddlement-ori-
ented. He’s a collector of quirks, a
connoisseur of human complexity,
a disciple of redemption.
Everyone in the film has unex-
pected dimensions. To cite one ex-
ample without giving too much
away, there’s a furious confronta-
tion between Mildred and Wil-
loughby, with the two of them al-
most literally at each other’s
throats. Suddenly mortality bursts
into the scene uninvited, their an-
ger snaps, she tells him tenderly,
“I know, baby,” and you know
you’re watching people with a ca-
pacity to change, for better or
worse or somewhere in between.
In Mildred’s case the change is
much for the worse before any
hint of hope emerges. Her fury is
fueled by her grief, that’s under-
stood, yet this grim-faced, foul-
mouthed mother—Mildred’s high-
school-age son is played by Lucas
Hedges—can be stone-cold cruel in
deed as well as word. A “Danger”
Hawkes), isn’t sure of the
difference between polio
and polo. Peter Dinklage’s
James, a dwarf who takes
Mildred out to dinner, tells her in
absolute earnest that he’s “going to
go use the little boy’s room.”
Most of these people work out
their lives day by day as best they
can, within the limits of their un-
derstanding. The exception is Wil-
loughby, who, thanks to special cir-
cumstances he never sought, gets
occasional glimpses of the infinite.
It’s as if Mr. McDonagh has given
us, through his police chief, the dra-
matic counterpart of a photographic
trope that has come to be called a
god’s-eye view—the camera looking
straight down from a boom, or,
more commonly these days, from a
drone. The view in “Three Bill-
boards Outside Ebbing, Missouri” is
far from lofty, let alone godlike, but
as we watch this wonderful movie
we’re able to see who Mildred and
all the others really are, and, better
still, who they may become.

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THE WALL STREET JOURNAL. NY Friday, November 10, 2017 | A13

LIFE & ARTS

THEATER REVIEW | By Terry Teachout

Musical, Magical Misunderstanding

EL SEGUNDO POLICE DEPARTMENT/GETTY IMAGES

The charming screen-to-stage story of a police orchestra that finds itself lost comes to Broadway
New York responds in English by admitting
THE BEST MUSICAL of the year that she, too, feels “something new
has made it to Broadway. After a I didn’t notice I’ve been hoping for
successful but far too short off- / Nothing is as beautiful as some-
Broadway run at the Atlantic The- thing that you don’t expect.”
ater, “The Band’s Visit” has moved Mr. Shalhoub and Ms. Lenk play
uptown with all of its wondrous their parts with irresistibly per- Mr. Gibson during his booking at
charm and warmth intact. Directed suasive conviction—a feat all the the El Segundo (Calif.) Police
with supreme finesse by David more impressive given that Department on March 16, 2011.
Cromer and performed by the best they’re both required to speak and
cast imaginable, this small-scale
show is fine enough to fill you with
fresh hope for a genre that has
sing in thick foreign accents—and
the other members of the cast are
similarly convincing. Four mem-
GIBSON
lately been running on fumes. In an bers of the Alexandria Ceremonial Continued from page A11
era of slick, sterile, big-budget, no- Police Orchestra are real-life mu- son hadn’t been on Paramount’s
but-I-saw-the-movie commodity sicians, and their onstage playing radar for the role of an es-
musicals whose sole purpose is to is blended so subtly with that of tranged grandfather who tries
siphon cash from tourists with the marvelous pit band that you to reconcile his relationship
ruthless efficiency, “The Band’s won’t always be sure who’s doing with his son, played by Mark
Visit” shows that the great Ameri- what. Mr. Cromer’s contribution Wahlberg. But the movie’s writ-
can art form (give or take jazz) is to the proceedings is, if possible, ers, Sean Anders and John
still full of life when practiced by even more subtle: He’s staged Morris, thought Mr. Gibson was
artists who trust the taste and in- “The Band’s Visit” on a turntable perfect for the part: He was be-
telligence of their audiences. set designed by Scott Pask that lievably intimidating, rough
Adapted for the stage by Itamar wafts you from scene to scene so around the edges but still able
Moses and David Yazbek from naturally that you’ll feel as though to charm, Mr. Anders said.
Eran Kolirin’s 2007 Israeli film, you’re making your own way Before the duo approached
“The Band’s Visit” is the story of a through the streets of Bet Ha- Mr. Gibson, they looked into his
fictional occurrence that was, as tikva. The actions of the cast mir- rehabilitation efforts. Mr. Anders
MATTHEW MURPHY

one of the characters readily ad-
mits, “not very important.” The
eight members of the Alexandria
Ceremonial Police Orchestra, it
seems, have traveled to Israel from
Egypt in order to perform at an
Arab cultural center in the city of
Petah Tikva. Such, at any rate, is
their intention, but they’re side-
tracked en route by a mispro-
nounced consonant: Since there is
no “p” sound in Arabic, most Eng-
lish-speaking Egyptians automati-
cally replace that consonant with
“b.” Slightly fractured English be-
ing the lingua franca of the mod-
ern-day Middle East, the musicians
inadvertently find themselves in
Bet Hatikva, a hopelessly provin-
cial desert village whose cultural
attractions consist of two restau-
rants, a roller rink, and a concrete
“park” devoid of grass or trees.
In less knowing hands, this mis-
hap might easily have been played
for farce and nothing more. But
while “The Band’s Visit” gets plenty
of well-deserved laughs in its open-
ing scenes, Messrs. Moses and Yaz-
Tony Shalhoub, center, with the company of ‘The Band’s Visit.’
bek are hunting bigger game. We
soon discover that the members of
the Alexandria Ceremonial Police
Orchestra and the bored residents
of Bet Hatikva who spend their
days “waiting for something to
happen” all have something in
common: They long for their little
lives to be enlarged by love.
Some of the rest you can guess
for yourself, but part of what
makes “The Band’s Visit” so spe-
cial is that it steers clear of the
obvious. This is especially true
when it comes to Tewfiq (Tony
Shalhoub), the band’s conductor,
and Dina (Katrina Lenk), the di-
vorced café owner who offers to
feed him and his men and put
them up for the night. He’s rigidly
proper, she’s tart-tongued and cyn-
ical, yet they’re both frustrated ro-
mantics under the skin. That’s the
obvious part, and it is typical of
“The Band’s Visit” that it leads to
a denouement that will take you
completely by surprise.
Mr. Moses, one of our best play-
wrights, has translated the screen-
play of “The Band’s Visit” into mu-
sical-comedy terms with quiet
skill. As for Mr. Yazbek’s songs,
they’re a savory multicultural mix-
ture of Egyptian pop music, Israeli
klezmer and cool American jazz
(two of the members of the band
are Chet Baker fans), one so fresh-
sounding that you can scarcely be-
lieve they’re being sung on a
Broadway stage. His lyrics are just
as good, especially “Something Dif-
ferent,” the bilingual duet in which
Tewfiq haltingly hints in Arabic at
his feelings for Dina, to which she
ror the show’s emotions with un-
canny precision (notice, for
instance, how furiously Ms. Lenk
chops up a watermelon as she ex-
plains how she met her ex-hus-
band when she was “romantic and
young and stupid”).
Yes, “The Band’s Visit” is a bit
of a fairy tale, suggesting as it
does that the knotty travails of the
Middle East can all be undone with
a little bit of love. But this particu-
lar fairy tale is one in which it is
pure happiness to believe, at least
for the length of a night on Broad-
way, so let yourself wallow in the
sweet hopefulness of “The Band’s
Visit.” You won’t regret it.
The Band’s Visit
Ethel Barrymore Theatre, 243 W. 47th
St. ($67-$157),
212-239-6200/800-432-7250
Mr. Teachout is the Journal’s
drama critic. “Billy and Me,” his
new play, opens at Palm Beach
Dramaworks on Dec. 8. Write to
him at tteachout@wsj.com.
read an interview with Ms. Fos-
ter in which the well-regarded
actress vouched for him.
Mr. Gibson has publicly apolo-
gized for the outbursts, but
most of his career rehabilitation
efforts have occurred behind the
scenes. Mr. Anders said the out-
bursts didn’t come up with the
actor when they discussed his
“Daddy’s Home 2” hiring. “He
knows. We know,” he said.
Paramount executives en-
dorsed the idea in part because
of the success of “Hacksaw,” said
a person close to the studio.
In “Daddy’s Home 2,” Mr. Gib-
son riffs on his former Holly-
wood persona as the coarse foil
to John Lithgow’s goody-two-
shoes grandpa. Mr. Gibson’s Kurt
is a womanizer who tells dead-
prostitute jokes to children,
teaches a young girl to shoot a
rifle and offers his grandson the
following advice on what to do
after kissing a crush: “Smack her
on the caboose and tell her what
a lucky girl she is.”

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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Friday, November 10, 2017
Vegas Aims to Beat the Odds
BY DAVE CALDWELL
JUST 10 GAMES into their first
NHL season, the Vegas Golden
Knights found themselves using
their fourth goaltender, Maxime
Lagace, but not because the first
three had been overwhelmed by a
relentless barrage of pucks. The
first three goalies got hurt, a rar-
ity for any team, old or new.
“It’s like the New England Patriots
playing their fourth-string quarter-
back,” said George McPhee, the
Golden Knights’ general manager.
“It’s unusual, but it is an opportunity
to see what other players can do.”
After becoming the first team in
the 100-year history of the NHL to
win eight of their first nine games
in their inaugural season, the
Golden Knights are now enduring
some of the typical struggles of an
expansion team, with five losses in
their last six games highlighting
the team’s lack of depth.
“They’re big on defense, they’ve
got some guys who can score goals,
and they play a four-line game,”
said Pierre McGuire, an analyst for
NBC. “But they can’t afford any
more injuries. What has happened
to their goalies has been incredibly
tough and would be difficult for
any organization to overcome, let
alone an expansion team. They’re
not an overly deep team, so that
could make things untenable if
they sustain any more injuries.”
Despite the recent slump, the
Golden Knights still have a strong
chance of becoming the first NHL
expansion team to win more
games than they lose in year one.
They could also be the first expan-
sion team to make the playoffs
since the Hartford Whalers and
Edmonton Oilers, refugees from
the folded WHA, in 1980.
Vegas has been able to be com-
petitive since the 31-team NHL is
substantially deeper than it was in
2000, when the league added its last
expansion teams, the Columbus Blue
Jackets and Minnesota Wild. The
club had a bigger pool of players to
choose from, with each existing NHL
team allowed to protect one fewer
player for the expansion draft.
“I really don’t think anybody
thought we’d be 8-2 after 10
games, especially with everything
PAUL WILLIAMS/ICON SPORTSWIRE/ASSOCIATED PRESS
Seven of the eight teams in the Ivy League still have a chance to finish first.
COLLEGE FOOTBALL
AN IVY LEAGUE LOGJAM
BY ANDREW BEATON
HOW DO SEVEN schools share one
silver trophy with two handles when
they all tie for the conference title?
That, eggheads, is an Ivy League
problem.
With two weeks left in the foot-
ball season, seven of the eight
teams in the Ivy League can finish
tied for first place. That’s right.
The season would finish with a
seven-way tie for first.
There’s no tiebreaker. No cham-
pionship game. It could be seven
teams sharing one trophy. Literally.
In this scenario, the seven
teams—Columbia, Cornell, Dart-
mouth, Harvard, Penn, Princeton
and Yale—would finish tied at 4-3.
They could all raise banners and
claim to be conference champions.
Meanwhile, Brown would be 0-7.
Nothing like this has ever hap-
pened before. Two teams tied for
the Ivy League football title in
2016. Three teams tied in 2015.
But seven? Never.
“It’s wonderful,” says confer-
ence commissioner Robin Harris.
“Doesn’t that make it fun?”
This type of madness is only
conceivable because of the Ivy
League’s classic format. The confer-
ence plays a true round robin,
where all eight teams play each
other. And while Ivy League basket-
ball recently adopted a tournament
to decide its champion, there still
isn’t a conference title game or tie-
breaker mechanism in football.
Not that this seven-way tie is
Vegas Golden Knights forward Alex Tuch plays
the puck against the Montreal Canadiens.
that happened with the goaltend-
ing situation,” coach Gerard Gal-
lant said before the Golden Knights
played in New York last week. “I
like the way they are playing. I like
the way they are working. We
come into the game with no pres-
sure. We are going to work hard
and compete hard and play a good,
sound game. And when we do that,
we’ve got a chance to compete
against any team we play. So far, it
has been really fun.”
Golden Knights players say they
are motivated, in part, by trying to
prove that their former teams made
huge mistakes by leaving them un-
protected for the expansion draft or
trading them to the Knights.
“We’re mostly trying to prove
probable. But it is possible. The re-
maining eight games on the Ivy
League calendar need to break like
so for this mayhem to break loose:
This week, these results need to
happen: Dartmouth over Brown;
Penn over Harvard; Princeton over
Yale; Cornell over Columbia. Next
week: Harvard over Yale; Columbia
over Brown; Princeton over Dart-
mouth; Penn over Cornell.
According to most projection
systems, this has slightly under a
0.5% chance of actually happening,
or between 200-1 and 250-1 odds.
But this anarchy is likely
enough that it has crossed the Ivy
League’s radar. In a meeting last
week, staffers gave updates on the
title race for each fall sport.
When it turned to football, Har-
ris recalls, one said: “Well, there is
one scenario where we have a
seven-way tie for first.”
That was even before last week-
end’s games, and now it remains a
serious enough possibility that
there have to be contingency
plans. Basically, Harris has started
considering the logistical night-
mare of coordinating how the
league’s trophy would get passed
from school to school.
Not that this problem is unfamil-
iar. But usually, it’s fairly simple.
When two schools, Penn and Prince-
ton, tied last year, each got it for six
months. When three tied the year
before, it was four months a pop.
But 12 months, 52 weeks or 365
days divided by seven? Not so easy.
“Gosh,” Harris says, “can’t wait
to hear that sharing schedule.”
SPORTS
NHL
to ourselves that we belong with
the rest of the league,” said center
Oscar Lindberg, who was left un-
protected by the Rangers.
“With this group of guys, we
don’t have anybody like Patrick
Kane or Sidney Crosby,” said for-
ward Alex Tuch, who had played in
six NHL games before this season.
“There’s some good high-end tal-
ent in James Neal and David Per-
ron, but even those guys have to
play a simple, hard-nosed game.”
McPhee said he had two objec-
tives going into the first season: put
a competitive team on the ice and
pile up surplus draft picks to restock
the team in the future. The Knights
weren’t stocked with retreads and
has-beens: Only four players on the
ELLIOTT SUSPENSION IS BACK ON
BY ANDREW BEATON
DALLAS COWBOYS running back
Ezekiel Elliott will finally begin
serving a six-game suspension
this weekend after the National
Football League prevailed in a key
step of its protracted legal battle
over disciplining one of the
league’s best young players.
The league issued the suspen-
sion in August, declaring that El-
liott had violated its personal con-
duct policy after a long
investigation into multiple alleged
domestic violence incidents from
last year. The 2016 incidents were
reported to police, but Elliott was
never charged with a crime and
said he never harmed his accuser.
Elliott has remained on the
field, however, as he and the NFL
The U.S. Second Circuit
of Appeals terminated a
temporary stay on the
six-game ban.
Players Association first appealed
the suspension with the league
and then went to court to block it.
On Thursday, however, the U.S.
Second Circuit of Appeals termi-
nated a temporary stay on the sus-
pension of Elliott, effectively end-
ing the star’s effort to avoid
missing games.
The battle over Elliott’s fate has
become a source of escalating ten-
sion between Cowboys owner
Jerry Jones, who has called the
suspension unfair, and NFL com-
missioner Roger Goodell. Jones
has recently mounted an effort to
block Goodell’s impending contract
extension.
Some legal options remain for
Elliott and his team—starting with
continuing his current appeal—but
legal experts have characterized
those as longshots. Even if Elliott
were to one day prevail, it would
likely come long after the suspen-
sion has been served, resulting
roster are older than 30.
“Their success has a lot to do
with the type of character they
paid attention to when made their
selections in the expansion draft,”
McGuire said. “All of the players
that they drafted had character.
Being a part of a new franchise is
stimulating and exciting, but they
paid attention to character, which
was so smart.”
McGuire added, “[McPhee] has
done a great job identifying a
coach like Gerard Gallant and char-
acter players, and they play an ag-
gressive style at home that has led
to a great home record—they play
up-tempo, physical, and smart.”
Gallant, 54, a former left wing
from Prince Edward Island known
NFL
Ezekiel Elliott walks out of federal court in New York on Thursday.
primarily in Elliott recouping his
lost pay. The next hearing in front
of this same court that terminated
the temporary stay is scheduled
for Dec. 1, after which the Cow-
boys will have played four games.
“Elliott’s chances of avoiding
the full six-game suspension are
extremely remote at this point,”
said Gabe Feldman, a law profes-
sor at Tulane and director of the
school’s Sports Law Program.
The NFLPA declined to com-
ment. The Cowboys and Elliott’s
lawyers did not respond to imme-
diate request for comment.
If Thursday’s ruling stands, it
will strengthen Goodell’s ability to
discipline players. The NFL has in
the past been criticized for han-
dling domestic violence incidents
too softly—especially in a 2014 in-
cident involving then-Baltimore
Ravens running back Ray Rice.
In the Elliott case, however, it
THE WALL STREET JOURNAL.
ERIC BOLTE/REUTERS
as the “Turk,” was picked by
McPhee to be the team’s first head
coach because, as McPhee said,
“We wanted an experienced coach
who could bring a sense of calm to
the organization and really work
with the players.”
When the Panthers unexpect-
edly fired Gallant 22 games into
last season—after he’d led them to
a division title and their best regu-
lar-season finish in history in
2015-16—he caught a cab outside
the arena in Raleigh, N.C. Photo-
graphs of Gallant standing with his
bags at a curb went viral.
That is an example, McPhee said,
of the type of coach he wanted to
guide his young team. “He doesn’t
get ruffled,” McPhee said.
JULIE JACOBSON/ASSOCIATED PRESS
has found itself under fire for its
investigatory processes as it tried
to implement a more punitive per-
sonal conduct policy. Elliott’s legal
team charged that the NFL cherry-
picked evidence while the NFLPA
called the process “fundamentally
unfair.”
“The commissioner ran a very
fair process,” NFL spokesman Joe
Lockhart said Thursday before the
ruling was issued.
The ruling could also impact the
remainder of the NFL season, in
which the 5-3 Cowboys are playoff
contenders and Elliott is a key fac-
tor in its on-field fortunes. He led
the league in rushing yards as a
rookie a year ago, helping lead the
Cowboys to the NFC East title. He
entered Sunday’s game against the
Atlanta Falcons second league-
wide in rushing—and now figures
to sit out until Dallas has just two
games left in the regular season.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Lifting the Steele Curtain
The Steele
dossier has al-
ready become
a thing of
John le Carré-
like intrigue—
POTOMAC British spies,
K r e m l i n
WATCH
agents, legal
By Kimberley
cutouts, hid-
A. Strassel
den bank ac-
counts. What
all this obscures is the more
immediate point: The dossier
amounts to one of the dirtiest
tricks in U.S. political history. It
was perpetrated by Team Clin-
ton and yielded a vast payoff
for Hillary’s campaign.
The Democratic National
Committee and the Clinton
campaign hired the opposi-
tion-research firm Fusion GPS
in April 2016 to dig up dirt on
Donald Trump. Fusion in turn
hired former U.K. spook
Christopher Steele to assem-
ble the (now largely discred-
ited) dossier. That full dossier
of allegations wasn’t made
public until after the election,
in January 2017. And the me-
dia and Democrats continue
to peddle the line that it
played no role during the
election itself.
“Details from the dossier
were not reported before Elec-
tion Day,” ran a recent CNN
story. Hillary Clinton herself
stressed the point in a recent
“Daily Show” appearance. The
dossier, she said, is “part of
what happens in a campaign
where you get information
that may or may not be useful
and you try to make sure any-
thing you put out in the public
arena is accurate. So this thing
didn’t come out until after the
election, and it’s still being
evaluated.”
How Churches Are Helping Puerto Rico
HOUSES OF San Juan,
WORSHIP Puerto Rico
By David When Hurri-
Skeel cane Maria
hit in Sep-
tember, a thousands of people.
cadre of celebrities sprang into
action. Jennifer Lopez helped
raise more than $30 million
through a glitzy disaster relief
concert. Then she donated $1
million of her own money. Lin-
Manuel Miranda, the creator of
“Hamilton,” whipped up a new
song for charity. Such generos-
ity deserved widespread praise,
but it also overshadowed other
private relief efforts, especially
those organized by Christian
churches.
Even by American stan-
dards, Puerto Rico is a deeply
Christian place. During four
centuries of Spanish rule—
from Christopher Columbus’s
landing in 1493 to the end of
the Spanish-American War—
Catholicism was the island’s
official religion. Its influence
persists: Some 56% of Puerto
Ricans are Catholic, according
to a 2014 Pew Research Center
study.
San Juan Archbishop Ro-
berto González Nieves told me
last week that the church’s ini-
tial relief efforts—coordinated
through Caritas Puerto Rico, a
branch of Catholic Charities
International—were slow.
Many communities were un-
reachable by phone or road,
and the church’s relationship
with the Federal Emergency
Thanks for Your Service, Too
By Michael W. Brough
H
ere’s something only a
veteran can say these
days: There’s more to
service than the military.
Much of America doesn’t
believe it. By itself, the word
“service” can pertain to almost
anything, even pumping your
own gas. But add the definite
article—“the service”—and you
denote only the military kind.
It’s an indication of the wide-
spread American belief that
military service matters more
than any other kind.
During my 21 years in the
Army, leaders frequently
praised their troops for volun-
teering and referred to us as
“the 1% of citizens who serve.”
It’s an easy way to pat soldiers
on the back. While deployed in
Iraq, I often heard: “The Army
went to war, and America went
to the mall.”
That was unfair. Many civil-
ians back home tutored at-risk
kids, held down emergency-
room night shifts, or operated
domestic-violence shelters.
This is utterly untrue. In
British court documents Mr.
Steele has acknowledged he
briefed U.S. reporters about
the dossier in September 2016.
Those briefed included jour-
nalists from the New York
Times, the Washington Post,
Yahoo News and others. Mr.
Steele, by his own admission
(in an interview with Mother
Jones), also gave his dossier in
July 2016 to the FBI.
Among the dossier’s con-
tents were allegations that in
early July 2016 Carter Page,
sometimes described as a for-
eign-policy adviser to Candi-
date Trump, held a “secret”
meeting with two high-ranking
Russians connected to Presi-
dent Vladimir Putin. It even
claimed these Russians offered
to give Mr. Page a 19% share in
Russia’s state oil company in
return for a future President
Trump lifting U.S. sanctions.
This dossier allegation is ludi-
crous on its face. Mr. Page was
at most a minor figure in the
campaign and has testified un-
der oath that he never met the
two men in question or had
such a conversation.
Yet the press ran with it. On
Sept. 23, 2016, Yahoo News’s
Michael Isikoff published a
bombshell story under the
headline: “U.S. intel officials
probe ties between Trump ad-
viser and Kremlin.” Mr. Isikoff
said “U.S. officials” had “re-
ceived intelligence” about Mr.
Page and Russians, and then
went on to recite verbatim all
the unfounded dossier allega-
tions. He attributed all this to a
“well-placed Western intelli-
gence source,” making it sound
as if this info had come from
someone in government rather
than from an ex-spy-for-hire.
Management Agency was
tense. But early logistical fric-
tions have been resolved, and
Caritas has supplied food and
other emergency aid to tens of
About a third of Puerto Ri-
cans identify as Protestant.
Shortly after the U.S. acquired
the island in 1898, the major
Protestant denominations
agreed to focus their mission-
ary efforts on different parts
of Puerto Rico. To avoid com-
petition, the Presbyterian
Church was given the west,
the Baptists the center, and
the Disciples of Christ the area
around San Juan. The lines
later blurred, and recent de-
cades have seen a surge in
evangelical and Pentecostal
churches, which now comprise
roughly half of Puerto Rican
Protestants.
Like secular aid organiza-
tions, churches have been
hampered by damage to the is-
land’s infrastructure. The As-
semblies of God, a Pentecostal
denomination, lost about 50 of
its churches on the island.
Congregations on the main-
land have stepped up to help
their sister churches. This has
been a common response
across denominations.
Catholic Charities sent $1
million to Caritas shortly af-
ter Hurricane Maria, and
other Catholic relief organiza-
tions have promised funds.
The Southern Baptist Church
plans to send “between six
Seeking peace, law-enforcement
officers ventured into danger.
Pastors helped congregations
walk with God. Teachers, volun-
teer coaches, journalists, men-
tors, social workers and count-
less others made small and
large sacrifices. Some, like
There’s no military
monopoly on devotion
and self-sacrifice.
those of us in the military,
chose a vocation of service
rather than a bigger paycheck.
Others turned off the TV, and
turned themselves to their
neighborhood’s problems.
The nation honors none of
them with a national holiday. I
have on occasion eaten lunch
at a restaurant, asked for the
bill, and learned that an anon-
ymous benefactor had already
paid. I’ve never heard of that
happening for someone with-
out a uniform.
Although military service
OPINION
The Clinton campaign
jumped all over it, spinning its
own oppo research as a gov-
ernment investigation into Mr.
Trump. Jennifer Palmieri, the
campaign’s communications
director, the next day took to
television to tout the Isikoff
story and cite “U.S. intelli-
gence officials” in the same
breath as Mr. Page. Other Clin-
ton surrogates fanned out on
TV and Twitter to spread the
allegations.
The Fusion GPS
dossier was one of
the dirtiest political
tricks in U.S. history.
The Isikoff piece publicly
launched the Trump-Russia
collusion narrative—only 1½
months from the election—
and the whole dossier opera-
tion counts as one of the
greatest political stitch-ups of
all time. Most campaigns con-
tent themselves with planting
oppo research with media
sources. The Clinton campaign
commissioned a foreign ex-spy
to gin up rumors, which made
it to U.S. intelligence agencies,
and then got reporters to cite
it as government-sourced.
Mrs. Clinton now dismisses
the dossier as routine oppo re-
search, ignoring that her oper-
ation specifically engineered
the contents to be referred to
throughout the campaign as
“intelligence” or a “govern-
ment investigation.”
Making matters worse,
there may be a grain of truth
to that last claim. If the
Washington Post’s reporting
and 10 kitchens” to Puerto
Rico, with 200 to 300 volun-
teers “to operate the kitchens
and serve the meals.” The
American Baptist Church has
announced a multiyear initia-
tive, “Rebuilding, Restoring,
Renewing Puerto Rico.” Even
Calvary Chapel, a large non-
denominational evangelical
church on the mainland, coor-
dinates relief through a Calvary
Chapel church in Miami.
The media focuses
on celebrities, but the
island’s Christians are
playing a central role.
Although many church build-
ings have been destroyed, the
churches that remain are a ha-
ven for those in need. Because
the hurricane left so many
homeless, one church has shel-
tered about 500 in its base-
ment, while other churches in
the area are bringing food to
help those without homes.
Some churches, despite having
lost their roofs, are still offeringone for its readiness and zeal.
assistance to the indigent and
elderly. Many Christian commu-
nities are working with local
governments to coordinate a
response. Churches also have
become food and water distri-
bution sites, a natural role for “True Paradox: How Christian-
these well-established commu- ity Makes Sense of Our Com-
nity institutions.
entails self-sacrifice, we don’t
join out of pure altruism. For
most of us, service is high on
the list of motivations, but so
are educational opportunity,
adventure, the chance to see
the world, free health care,
and a splendid retirement
package. I spent years de-
ployed away from my family,
but my career has hardly been
an exercise in self-denial.
Defense Secretary Jim Mat-
tis recently told sailors at Na-
val Base Kitsap: “Because of
what you’re doing now, you’re
not going to be laying on a
shrink’s couch when you’re 45
years old [to] say, ‘What the
hell did I do with my life?’
Why? Because you served oth-
ers; you served something big-
ger than you.”
Just because something’s
bigger than you doesn’t mean
it’s worth serving. Think of or-
ganized crime. But service to a
worthwhile cause is something
to honor—in the military and
outside it.
A Zen story tells of Japa-
nese soldiers who, worn out
is correct, it was in the sum-
mer of 2016 that Jim Comey’s
FBI obtained a wiretap war-
rant on Mr. Page from the
Foreign Intelligence Surveil-
lance Court. If it was the dos-
sier that provoked that war-
rant, then the wrongs here
are grave. Mr. Page is suing
Yahoo News over that Isikoff
story, but he may have a bet-
ter case against the Clinton
campaign and the federal gov-
ernment if they jointly spun a
smear document into an abu-
sive investigation.
To that point, it is fair to
ask if the entire Trump-Russia
narrative—which has played a
central role in our political
discourse for a year, and is
now resulting in a special
counsel issuing unrelated in-
dictments—is based on noth-
ing more than a political
smear document. Is there any
reason to believe the FBI was
probing a Trump-Russia angle
before the dossier? Is there
any collusion allegation that
doesn’t come in some form
from the dossier?
The idea that the federal
government and a special
counsel were mobilized—that
American citizens were moni-
tored and continue to be in-
vestigated—based on a cam-
paign-funded hit document is
extraordinary. Especially
given that to this day no one
has publicly produced a single
piece of evidence to support
any of the dossier’s substan-
tive allegations about Trump
team members.
So yes, Mrs. Clinton, the
dossier—which you paid for—
was used in the election. And
we are only beginning to un-
derstand in how many ways.
Write to kim@wsj.com.
As they serve their commu-
nities in this time of need,
Christians in different denomi-
nations may also find them-
selves collaborating more than
has sometimes been the case.
A visit in February by Franklin
Graham, Billy Graham’s son,
divided the Christian commu-
nity due to his earlier remarks
defending restrictions on U.S.
immigration. Yet the churches
have more immediate prob-
lems, and they seem to be set-
ting these differences aside for
now.
Puerto Rico’s churches can’t
solve the crisis on their own.
The massive governmental re-
lief effort spearheaded by
FEMA and the Army Corps of
Engineers is essential. As are
Gov. Ricardo Rosselló, secular
aid organizations, and the ce-
lebrities. But the island’s Chris-
tians are clearly playing a cen-
tral role in the recovery.
Two thousand years ago,
St. Paul pleaded with fledg-
ling Christian churches scat-
tered across the Roman Em-
pire to send money to their
struggling brothers and sis-
ters in Jerusalem, praising
A similar urgency, and a simi-
lar opportunity for churches
to help, is unfolding in Puerto
Rico today.
Mr. Skeel is the author of
plex World” (IVP Books, 2014).
from battle, headquartered
themselves in a temple. When
the temple cook made them
simple food, one of their lead-
ers became angry. Accustomed
to special treatment, he lashed
out at the priest: “Who do you
think we are? We are soldiers,
sacrificing our lives for our
country. Why don’t you treat
us accordingly?”
The priest responded curtly.
“Who do you think we are? We
are soldiers of humanity, aiming
to save all sentient beings.”
The priest points to an im-
portant truth: Though nation
is important, it’s hardly the
only cause that makes service
worthwhile. American society
should reconsider its default
position that esteems military
service over any other kind.
Let us commit to honoring the
actions of all who serve, rather
than only the few who do so in
uniform.
Mr. Brough is a retired Army
officer, Iraq veteran, and CEO
of Brough Writing Solutions, a
communications firm.
Friday, November 10, 2017 | A15
BOOKSHELF | By Tobias Grey
A Belle Époque
Crime Spree
Ballad of the Anarchist Bandits
By John Merriman
(Nation Books, 327 pages, $28)
W
ith France adopting a new counterterrorism law last
week, it’s worth asking whether President Emmanuel
Macron has gone too far in expanding his country’s
police powers. Will we soon see a repeat of Paris’s 19th-century
“Scoundrel Laws”? If so, John Merriman would not approve.
The Scoundrel Laws were among the more draconian
reactions to terror in Paris, allowing that “anyone could be
arrested at any time for having the slightest relationship with
known anarchists, violent or not,” Mr. Merriman writes.
“Searches without cause became routine. And so did police
beatings.” It was a system that was applied selectively,
prosecuting some while sparing others for the same acts.
France’s long history of antiterrorist legislation is given a
timely appraisal in “Ballad of the Anarchist Bandits,” a riveting
history of the Bonnot Gang, the brutal band of murdering
anarchists who rattled the City of Light in the early 20th
century. Its members rejected military service and organized
religion, promoted open sexual relationships and frowned on
marriage as compromising the individual. They called their
approach “scientific”—and there certainly was a science of sorts
to their methods. “They seemed like a new and scary kind of
bandit,” Mr. Merriman writes,
“carrying out their attacks in
broad daylight, their Brownings
firing away, and escaping in fast-
moving luxury automobiles.”
The gang began its spree in
December 1911 in what became
France’s first holdup to use a get-
away car. Ernest Caby, a bank
courier who had just stepped off a
tramway near Montmartre, was
stripped of over 5,000 francs in
silver and more than 300,000 francs’
worth of securities. He was shot four
times at point-blank range, but
remarkably survived to testify against his
assailants. The gang, armed with a cache of
weapons stolen from a local gun shop, went on to commit
several more robberies, killing multiple civilians and policemen in
the process. A 100,000 franc reward was put up for their arrest.
Often better armed and better equipped than the police,
the gang members were also clumsy and brazen. Their poor
driving skills frequently resulted in car accidents, and their
lack of familiarity with firearms left at least one member
with a self-inflicted gun wound. They adopted a vegetarian
diet and refused salt, pepper, coffee, vinegar and alcohol. All
of this was front-page fodder for the Parisian newspapers,
whose obsession with the gang even relegated the sinking of
the Titanic from the page-one headlines.
In the wake of the Bonnot crime spree, the police tightened
the Scoundrel Laws, using the threat of anarchist violence to
increase the police’s powers of arrest and detention. Hundreds
of raids were carried out against known anarchists and
sympathizers. Mr. Merriman, a professor of history at Yale
University, has no sympathy for the Bonnot Gang, but denounces
the laws for its treatment of Victor Kibaltchiche—later known as
Victor Serge—a soft-spoken Russian revolutionary and writer
who emigrated to Paris in 1908 and embraced anarchism as a
way of educating workers to stand up for their individual rights.
France’s new antiterror legislation echoes
the 19th-century ‘Scoundrel Laws’ used to
crack down on the country’s anarchist threat.
Kibaltchiche emerges here as an ambiguous figure. His work as
an editor and writer for L’Anarchie, “one of the few staunchly
opposition newspapers Parisians could find,” left his views on
the Bonnot Gang open to question. Despite being a vocal critic of
their homicidal robberies, he saluted the gang in an editorial for
having “firmly decided to not squander the precious hours of
their life in servitude.” This led to Kibaltchiche’s arrest under the
Scoundrel Laws.
Mr. Merriman’s impartiality is not always evident in the
book. He describes Peter Kropotkin, the Russian philosopher
who developed many of the precepts of anarchism, as “a man
of peace.” This omits the fact that Kropotkin had endorsed
the assassination of Czar Alexander II by declaring that “a
single deed makes more propaganda in a few days than a
thousand pamphlets.” Such “propaganda by the deed” was the
subject of Mr. Merriman’s “The Dynamite Club” (2009), which
examined the anarchist bombers who terrorized Paris at the
end of the 19th century. These were the prototypes of modern
terrorism, Mr. Merriman contended, having no specific targets
but striking out blindly, causing as much damage as possible
among people enjoying themselves in public. It is a rich vein
of largely untapped history that Mr. Merriman continues to
mine for contemporary resonance here.
It’s rather curious, then, that the author omits how the
Bonnot Gang got its name. This came about when Jules
Bonnot, a work-shy and money-obsessed former mechanic,
stormed the offices of Le Petit Parisien to complain about the
newspaper’s coverage of the gang and to send a message to
the police. Brandishing a pair of Brownings, Bonnot ordered
one of the pressmen to quote him in full: “We’ll burn our last
cartridges down until they’re scorched and if they don’t dare
come looking for us, we’ll know where to find them.”
Bonnot and his pals were eventually shot down in a series
of bloody standoffs. Kibaltchiche was sentenced to five years
in prison in part for refusing to testify against other
anarchists. Mr. Merriman gives these and other proceedings a
vivid recounting. His eye for detail is particularly acute, as in
his description of the souvenir hunters who took away
wooden boards shattered by bullets and stained with the
bandits’ blood. At a time when a newspaper cost a few
centimes, Mr. Merriman writes that “Jules Bonnot’s last bed
went for five francs, the sheets for six.”
We don’t romanticize the terrorist anymore, and with good
reason. The legacy of the Bonnot Gang is not its outlaw
glamour but its impact on law enforcement. Their crime
spree spurred the French to radically increase police powers
and modernize police equipment. No analogy to the present
moment needs to be made.
Mr. Grey is a writer based in Paris.
Coming in BOOKS this weekend
Joseph Conrad and the global age • The invention of the
flapper • How World War II changed us • Sam Sacks on
historical fiction • Ida John: The Good Bohemian •
Novels from David Ignatius and Andy Weir • & more
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A16 | Friday, November 10, 2017 THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Tax Reform Momentum Even With ‘Discounts,’ Patients Come Last

C
ongress is now at the stage of tax reform moves the House bill’s noxious “bubble rate” of I assume Keith Lemer’s company ment scale secret. If we providers
where the details are messy and the po- 45.6% for certain high earners. plans to do the negotiating he sug- didn’t stretch our prices, then we
gests for us (“The Deception Behind might be asking for less than insur-
litical claims are confusing. The trick is The Senate also keeps seven tax rates, rather
Those In-Network Health ‘Dis- ers were willing to pay. If we at-
to keep your eye on the big pic- than the House’s four, but the counts,’” op-ed, Nov. 1). It makes no tempted to find out what other pro-
ture, and by that measure re- The Senate bill improves real simplification in tax reform sense to compare the needs of viders charged, we could be accused
form momentum is building. on the House on the top comes less from fewer brackets small businesses to Calpers, a $300 of colluding. If we wanted to give
House Ways and Means passed and more from how you define billion retirement system for Cali- self-paying patients a break, we ran
its reform Thursday, and Sen- rate and businesses. income. In that sense the Sen- fornia’s overpaid public employees. afoul of federal laws that prohibit
ate Republicans released re- ate bill is also simpler than cur- Most small businesses don’t have differential pricing.
form details that improve on rent law because it eliminates the time, money or connections to This disingenuous system was ex-
the House bill in important ways. many deductions and credits. self-insure or perform these kinds acerbated by ObamaCare, which gave
The biggest news is that the House and Sen- The big victory here is total repeal of the of negotiations. We don’t need Mr. insurance companies the gift of the
ate plans cut the top corporate tax rate to 20% state and local deduction, which is a subsidy for Lemer’s company to do this. We “medical loss ratio” that in turn en-
need a competitive health-insur- able health-care organizations to
from today’s 35% that is the highest in the devel- high-tax progressive states. The House carves
ance system with some actual risk charge several times more than inde-
oped world and has punished the U.S. economy. out an exception for property taxes to win the involved. pendent practitioners. Theoretically,
The rate cut will be permanent. Both chambers votes of Republicans from California and New The McCarran-Ferguson Act of higher prices may be justified by
would also convert the U.S. into a territorial sys- York, and a compromise will be negotiated in 1945 has prevented interstate com- higher costs, but in practice the
tem, which taxes income where it’s earned. conference. But note the GOP consensus that the petition in insurance and limited the marginal cost of care is really not
These are the crown jewels of this reform that state and local deduction is on death row. This formation of associations for group that much more.
should increase investment in the U.S. and in- is the price Chuck Schumer’s Democrats will pay purchases. Small businesses need to The ultimate deception may be
crease wages for workers. (See Lawrence Kot- for rejecting any reform. be able to form larger associations that payment inequality was in-
likoff nearby.) Alas, the Senate repeats the House mistake to have purchasing and negotiation cluded in the legislation to encour-
One asterisk in the Senate version is that the of increasing the child tax credit to $1,650 ($50 power. Where has Congress been? age consolidation of independent
20% rate would not begin until 2019 to “save” more than the House) from the current $1,000. President Trump has recently signed practitioners into a manageable
an executive order to have the secre- number of big provider networks.
money under the Senate’s bizarre budget rules. The Senate version is better in that it doesn’t in- tary of labor consider expanding ac- Until Congress mandates health-care
But 100% expensing for businesses would be im- clude a $300 credit for each parent, but it’s cess to Association Health Plans. pricing to be transparent and related
mediate, and expensing is more valuable against worse in that it doesn’t phase out until very high This should help to allow purchases to cost, health-care consumers will
a higher tax rate. Economists we trust say this levels of income. In other words, it’s a nearly across state lines and for groups to continue to suffer financially.
should mitigate any harm from a one-year delay. universal subsidy. The House child credits cost more easily associate for purposes of JONATHAN FOX, M.D., M.B.A.
We’d prefer the immediate cut in the House bill, some $640 billion over 10 years. purchasing health insurance. Northfield, N.J.
but a one-year delay is better than a temporary Add this to a dependent care credit and the MICHAEL P. CARTER, M.D.
rate cut that would complicate business deci- adoption credit, which is back after protests Savannah, Ga. One key point regarding refer-
sions in the future. from the cultural right. These do nothing for enced-based pricing within private
The Senate bill is a notable improvement on economic growth and prevent deeper rate cuts Thanks to Mr. Lemer for bringing employer health plans is that it
attention to the reason the Afford- opens up employees to significant
the House in its treatment of “pass-through” that allow all Americans, many of whom are par-
able Care Act will never be afford- “balance billing.” I have incorporated
businesses. These mostly smaller businesses ents, to keep more of their income. able. None of those in Congress have referenced-based pricing for my self-
now declare income on personal tax returns, and The biggest disappointment is that the Sen- addressed the harm caused by the insured clients on specific abusive
the House divorces the two with a top rate of ate won’t repeal the death tax. This is a loss for “medical loss ratio.” Insurers have high-cost procedures such as use of
25% on businesses with a complicated formula economic growth and tax fairness, and it won’t an incentive to spend more, not to an air ambulance and find that the
for what income gets what rate. The Senate in- deflect Democratic charges about tax cuts for get more for the money they spend. savings generated to the self-insured
stead expands a deduction to allow a 17.4% dis- the rich. A doubled exclusion to more than $10 This is a horrible system. Patients plan are countered with direct bal-
count against a top rate of 38.5% (down from million of estate value is nice, but the wealthy who have to pay for insurance often ance billing to the employee for tens
39.6%). The little guys thus do at least as well will still duck the tax by moving their assets into choose high deductibles and then of thousands of dollars. I obviously
as corporations, which are taxed twice, on both trusts or foundations—or sell businesses prema- don’t seek care in a timely fashion. like the concept, but Calpers is a dif-
income and dividends. turely. All of this diverts resources from the pro- Those with subsidized insurance ferent animal than a small business
have no incentive to use care wisely. in rural America where there are
The Senate’s approach is simpler, and busi- ductive economy, to the benefit of accountants
I hope Mr. Lemer’s piece is a only a few options for services.
nesses with income below the top tax rate can and lawyers. wake-up call for those writing the How do you counter this? You
write off more income. This should win support These details matter, but the larger story is ACA replacement. eliminate all preferred provider or-
from the National Federation of Independent that the Senate—the cemetery for the Republi- MICHAEL F. RAAB, M.D. ganizations (PPO) and mandate that
Businesses, whose members are often small en- can health-care bill—is joining the House with Sanibel, Fla. all health-care providers must accept
terprises. (The House added a 9% bracket to get a pro-growth reform that has a real chance to a reasonable reimbursement from
an NFIB endorsement.) Preserving the structure pass. There are still ways the GOP could trip up: During my 30 years in practice, private plans, for example, a refer-
of the personal small-business tax rate also The party must bow to the Senate’s Byrd Rule there always seemed to be a discon- ence base pricing of 150% of what
means that Congress could someday consider that bans deficits outside the 10-year budget nect between pricing and costs in Medicare would pay. Do so and the
lowering the top marginal rate on individuals to window, and Republicans can avoid that by re- delivering care. As a so-called “pre- health-care bill goes down $1 trillion
ferred provider,” we would dutifully or virtually 30% overnight. The bal-
spur more growth. pealing ObamaCare’s individual mandate and
submit annual price lists with no ob- ance-billing issue goes away, and
The Senate bill’s individual reform is both save more than $300 billion. vious relationship to actual reim- PPO gaming is eliminated.
better and worse than the House version. It’s Still, this week’s momentum suggests that the bursements. Part of the problem was JEFF L. JONES
better in that it cuts the top marginal rate at GOP is aware that its political future depends on insurance companies kept their pay- Eugene, Ore.
least a little, to 38.5% from 39.6% on income of sticking the landing on a tax reform that can lift
more than $500,00 for single filers. It also re- the economy and unleash broader prosperity.

Virginia Is for Haters Deduction Not a Big Issue for Provident States
In “Please Pass the SALT” (op-ed, benefit the great majority of Ameri-

I
f there were an award for ugliness in this tack on his rival for not supporting a bill to ban Nov. 7), Rep. Claudia Tenney worries cans who live in states with low or
“about the way this bill [the Tax no state income tax. Is it fair for Flo-
year’s election campaigns, Cristóbal Alex sanctuary cities add up to “hate.” Leave aside
Cuts and Jobs Act] erodes the de- ridians, who have no state income
would win hands down. Mr. Alex is president that Democrat Ralph Northam flip-flopped and duction for state and local taxes.” tax, to be forced to subsidize tax-
of the Latino Victory Fund, endorsed the Gillespie position That change in the tax law would and-spend New York, and to be obli-
which released a television ad The author of the ugliest on sanctuary cities. The idea gated to help New York keep in of-
featuring minority children political ad of 2017 is that an attack on a Latino fice its lawmakers who are
fleeing a sinister white man in criminal gang is an attack on Many Diverse Lives and responsible for that state’s “excruci-
a pickup truck trying to run happy because it worked. all Latinos is an insult to law- ating financial burden”?
them down. The truck bore a abiding Latinos.
Afterlives of Robert E. Lee Instead of decrying a fair and long
bumper sticker for Ed Gillespie, Mr. Alex claims that he Jay Winik’s “What John Kelly Got overdue change in the tax law, Rep.
the GOP candidate for Virginia Governor who “never intended to paint all Gillespie voters as Right About Robert E. Lee” (op-ed, Tenney ought to be pointing out to
ended up losing. Though the ad was pulled before racist,” a subtlety we missed. But he also con- Nov. 4) asks that Robert E. Lee be her constituents that those who now
viewed in the context of his time take the standard deduction, and
the election, Mr. Alex said in the Washington Post cedes what really matters: He’s proud of the ad
(1865) and place and not in the con- don’t itemize are paying a higher tax
on Thursday he’d run it again. because he says it was “undeniably effective” in text of 2017. We like to think that (along with we Floridians) so that
Mr. Alex says Mr. Gillespie’s support for not helping Mr. Northam prevail. Most of the pro- Northerners were universally opposed her state’s wealthier citizens can de-
tearing down the state’s confederate monu- gressive arbiters of political decorum who de- to slavery as a moral evil (which it duct state and local taxes. She ought
ments, his ads targeting the MS-13 gang respon- nounced Mr. Gillespie never objected to Mr. was) and were therefore an admirable to be pointing out that the $11,300
sible for several murders in Virginia and his at- Alex’s ad, so expect more in the future. people, and that the slaveholding increase in the standard deduction, a
Southerners were universally support- change that clearly favors the middle

Bromance in Beijing
ive of the institution and therefore class, will be a larger amount than
morally bankrupt racists and bigots. It that lost by most of her tax-itemiz-
can be argued, viewed in the context ing constituents. She ought to tell all

C
hina rolled out the best of Middle King- Jong Un regime; they don’t cut off the rest of of 2017, that most white Americans the citizens of her district that tax
both North and South were racists, in- law changes that favor New York
dom hospitality for Donald Trump this China’s economic lifeline to its ally. Clearly dis- cluding Lincoln and Lee. aren’t the answer to New York’s
week, while the U.S. President returned agreements between the U.S. and China per- Most Northerners of the 1860s, problem. Voting the tax-loving Al-
the flattery by gushing about sist. with the exception of a small group of bany legislators out of office is the
his “chemistry” with Presi- Xi and Trump get along Mr. Trump sent a much ardent abolitionists, were indifferent place to start.
dent Xi Jinping and calling famously, but to what clearer message to Beijing, to the “peculiar institution” of the JAMES W. HANWAY
him “a very special man.” The and the East Asia region, with South. They weren’t supportive of it, Fort Myers, Fla.
question is what will come of mutual purpose? his fine and forceful speech but had Lincoln declared in 1861 that
this bonhomie, especially Wednesday to South Korea’s the abolition of slavery was the focus Claudia, be a warrior and find oth-
from China on North Korea. National Assembly. Mr. and reason to take up arms against ers to join your cause and go to bat-
China knows how to entertain a democratic Trump hasn’t spoken often of values or moral- the South, few Northerners would tle to solve New York’s problems.
have followed his lead. Lincoln himself Please don’t count on the fiscally re-
leader with flattery and symbolism, and Mr. Xi ity in his foreign-policy speeches, but in Seoul
declared that the purpose of taking up sponsible parts of our country to
even arranged tea in the Forbidden City for the he spoke in blunt moral terms about the arms was to preserve the Union and save you; we have had it with this
U.S. President, the first foreign leader to be “prison state of North Korea” with more detail that he did not desire to abolish slav- kind of thinking. There is a reason
given that privilege. Mr. Trump more than even than any previous President. ery where it already existed. Donald Trump was elected.
most U.S. Presidents puts stock in appearances He drew a line of freedom along the demili- PAUL FRIDELL BILL YAGIELA
of respect, and the Chinese know it. tarized zone and contrasted the wealth and hu- Louisville, Ky. Farmington Hills, Mich.
Mr. Trump’s praise for Mr. Xi can be seen man dignity of the South with the depravity
as a similar calculation. He knows Mr. Xi wants with which the North treats its own people. He Most monuments of Lee are on
China to be seen as an equal to America on the said all civilized nations have an obligation to horseback in a martial pose, erected Pepper ...
world stage, and Mr. Trump is trying to con- oppose the North’s regime, “and to those na- during times of racial strife in this na-
tion. If President Trump and Mr. Kelly
And Salt
vince Mr. Xi to cooperate in stopping North Ko- tions that choose to ignore this threat, or
want to unite our country instead of THE WALL STREET JOURNAL
rea’s nuclear program. As a “deal-maker,” Mr. worse still, to enable it, the weight of this crisis
divide it, they should propose a statue
Trump also prizes his ability to size up a nego- is on your conscience.” of Lee kneeling next to the African-
tiating partner. Framing the North Korean challenge in moral American communion taker with a
Not to disdain chemistry, but it isn’t clear terms signals a new U.S. resolve. Mr. Trump is plaque describing Lee’s attempt to
the two sides made any diplomatic break- also right that the appeasement of past Presi- unite us after the war. Unfortunately
throughs. Secretary of State Rex Tillerson dents made the problem worse, and he says he his legacy has been used to divide us
stressed the positive in his post-meeting won’t repeat that mistake. Whether this strategy racially.
presser, saying “there is no disagreement on succeeds depends on how credible is his implicit JOHN C. WOODS
North Korea.” He repeated Chinese assurances threat to punish Pyongyang’s backers if they Ft. Myers, Fla.
that “they will not accept a North Korea with don’t sever ties. If his praise for Mr. Xi is inter-
nuclear weapons,” adding “there’s no space be- preted as supplication and weakness, Beijing Letters intended for publication should
tween both of our objectives.” may string the U.S. along with false assurances be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
Yet as a senior U.S. official told the Journal of cooperation as it has for decades. or emailed to wsj.ltrs@wsj.com. Please
on the presidential plane, Beijing still hasn’t We won’t know if the bromance in Beijing include your city and state. All letters
cut all financial links with North Korea that are made a difference until we see how much China are subject to editing, and unpublished
banned under United Nations sanctions. And increases the economic pressure on Pyongyang letters can be neither acknowledged nor “I used to have a plan.
returned.
U.N. sanctions only cap sales of oil to the Kim in the weeks ahead. That lasted a whopping six days.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
An Atheist
Can Respect
Prayer
By Andy Ngo
I
once attended a series of debates
between a local atheist and a pas-
tor in a suburban Portland, Ore.,
church. It was 2011, heyday of the
New Atheism movement led by men
like Richard Dawkins, Sam Harris and
the late Christopher Hitchens.
I had left Christianity only a few
years earlier and found myself anx-
ious and uncomfortable entering a
church. I stood in a corner and kept
to myself. A woman noticed my anti-
social behavior and introduced her-
self as a member of the congregation.
She welcomed me, asked about my
life, and brought me a soft drink and
pizza from the kitchen. She also in-
troduced me to her adult son, who
was equally welcoming.
A kind woman in a church
taught me that mocking
faith is a bad approach.
When I attended the next install-
ment later in the summer, I saw the
kind church woman again. As before,
she greeted me warmly. I asked about
her son, but she awkwardly declined
to answer, which I found strange.
Perhaps she could tell I was gay, I
thought. I felt a bit duped, as if the
prior nice act was just a bait-and-
switch to get me to come back to the
church. I chose not to sit near her
this time.
After the debate, she pulled me
aside to the kitchen. I thought she
was cornering me to proselytize. In-
stead, she told me her son had killed
himself a few weeks earlier: “He used
a gun.” She told me that prayers and
her faith in God had barely kept her
afloat: “It’s all I have.”
A friend of mine, a fellow atheist,
walked up. Reflecting on the debate
topic, he proceeded to mock faith, the
Bible and prayer. “None of it’s true
and it doesn’t work,” he said, un-
aware of the woman’s tragedy. She
began to shake, and tears welled in
her eyes. My friend walked away,
feeling triumphant in her silence.
I vowed never to be that type of
atheist again.
The mass shooting at the First
Baptist Church in Sutherland Springs,
Texas, left 26 worshipers dead and
20 injured. The killer was an outspo-
ken atheist who expressed anti-Chris-
tian sentiment, according to his for-
mer friends in media reports.
Soon after the news broke,
Speaker Paul Ryan tweeted: “Reports
out of Texas are devastating. The peo-
ple of Sutherland Springs need our
prayers right now.” That earned him
excoriation from, among others, polit-
ical commentator Keith Olbermann,
who instructed the speaker to “shove
your prayers up your a—,” and actor
Michael McKean, who observed:
“They were in church. They had the
prayers shot right out of them. Maybe
try something else.”
On Monday, California’s Rep. Ted
Lieu callously walked out of the House
floor during a brief moment of silence
dedicated to the victims of Sutherland
Springs, saying he refuses to be silent
after another massacre.
I don’t believe in God. I don’t be-
lieve in prayer. It is my hope to see all
myths properly relegated to history
and literature texts. Yet as worshipers
were shot to death at the First Baptist
Church, I thought about their surviv-
ing family and friends who are finding
solace and strength through prayer,
just like the mother I met years ago at
the Portland church.
I too find myself dedicating mo-
ments of silence for those who had
their lives stolen in a brazen act of
violence. I find it helps galvanize me
to act. While I call it a reflection, oth-
ers may see it as prayer. Regardless,
I want to grieve together in our com-
mon humanity, which transcends be-
lief—or nonbelief.
Mr. Ngo is a graduate student at
Portland State University.
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Tax Reform Passes the Fairness Test
By Laurence Kotlikoff
T
he GOP tax plan should
do three things. It should
expand the economy
while raising wages. It
should pay for itself. And
it should be fair.
The new plan’s business-tax pro-
visions will reduce the effective
marginal tax rate on U.S. invest-
ments dramatically, from close to
35% to under 19%. Depending on the
year in question, my global dynamic
macroeconomic model predicts a
12% to 20% expansion in the U.S.
capital stock, producing an average
$3,500 real wage increase for each
American working household. More-
over, economic growth spurred by
the business-tax cuts will raise tax
receipts enough to make the plan
revenue-neutral.
That means the plan passes the
first two tests. What about fair-
ness? Using conventional methods
for assessing fiscal fairness, govern-
ment agencies and Beltway think
tanks have declared the House bill a
giveaway to the rich. But these
methods were developed before the
advent of computer modeling and
big data. Their conclusions are un-
reliable.
Myopic conventional fairness
measures consider only the current
year’s net taxes—that is, taxes paid
minus benefits received. They ignore
net future taxes, making it impossi-
ble to account for phased-in reforms
as well as consumption and estate
taxes. Moreover, these methods un-
derstate the tax burden on the rich
who save more relative to the non-
rich and thus face higher relative
taxes in the future based on their
resulting taxable asset income.
Conventional measures also fail
to account for the roughly 5.5% rise
in pretax income I predict the tax
plan will generate. Ultimately in-
equality is about relative spending,
not relative taxes. And what we
How Europe Is Out-Trumping America
Brussels
When Donald
Trump won the
White House a
year ago this week,
it seemed as if Eu-
POLITICAL rope would be
ECONOMICS doomed to look en-
viously across the
By Joseph C.
Atlantic. Yes, envi-
Sternberg
ously. Europeans
told pollsters they
would have elected Hillary Clinton if
given the chance, but in their own
countries they kept voting for un-
orthodox outsiders—who regardless
never managed to win power, thanks
to obtuse electoral systems and suf-
focating political correctness.
A year on, and to the surprise of
many, including this columnist, the
pupil is excelling the teacher. Eu-
rope’s politicians all of a sudden are
producing the kinds of changes Amer-
ican voters wanted Mr. Trump to de-
liver, while Washington increasingly
looks like the sclerotic and neurotic
European capitals of yore.
It used to be that if you said some
country’s ruling party was refusing
to overhaul a deeply unpopular enti-
tlement program despite supposedly
having won an electoral mandate to
do so, people would think you meant
France. If you said a government
with one of the highest corporate
tax rates in the developed world was
struggling to cut them, people would
think you meant Germany. If you
As I Await a Reply, Anxiety Sets In
By Stephen Miller
T
oday I googled the name of
an old friend to see if there
was an obituary for him. I do
this occasionally when I haven’t
gotten an email from someone in a
long time—say, six months. Check-
ing obits may seem morbid, but
most of my friends are in their
70s, so it’s reasonable to assume
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OPINION
spend depends on what we earn,
not just what share of our earnings
we hand over to Uncle Sam. By
lumping together people of all ages,
conventional fairness measures
compare apples and oranges: the
young, most of whose taxes lie
ahead, and the old, most of whose
taxes have already been paid.
The usual assessments
fail to account for the way
liabilities change over a
taxpayer’s lifetime.
To correct Washington’s routine
mismeasurement of fiscal fairness,
I—along with economist Alan Auer-
bach and software specialist Darryl
Koehler—developed a tool we call
the Fiscal Analyzer. It uses data
from the Federal Reserve’s nation-
wide survey of household income
complained that a country’s leader
was little more than a flamboyant
media personality, thoughts would
turn to Italy.
Yet now those gripes are primar-
ily true of Washington. Meanwhile,
Emmanuel Macron has overhauled
France’s labor laws and slashed cor-
porate tax rates. His next target will
be the French pension system. In
the Netherlands the new govern-
ment has committed to cutting its
already competitive tax rates on
capital and corporate income, and it
will take on the pension system over
the coming year. By way of re-
minder, the last American president
to contemplate Social Security re-
form was George W. Bush more than
a decade ago, and his effort was
over before it began.
The change in Europe involves
politics as much as policy. Centrist
politicians are chipping away at the
walls of political correctness that
used to seal off some issues from de-
bate. Mark Rutte, the Dutch prime
minister, won re-election in March in
part by co-opting the saner parts of
his fringe opponent Geert Wilders’s
agenda on immigration. Mr. Rutte
signaled to voters that a mainstream
Dutch politician is now willing to
discuss the country’s struggle to as-
similate immigrants.
The transformation remains in-
complete in many places, of course.
In Germany the far-right fringe star-
tled the establishment with its strong
that one who hasn’t responded to
my email might have died. In Hun-
gary, where my wife comes from, it
is customary to send out black-
bordered death notices to the rela-
tives and friends of the deceased,
but in the U.S. there is no standard
procedure for informing people
about a death.
I suffer from what I would call
communication anxiety, meaning I
often have dark thoughts about
why I haven’t heard from someone.
I don’t necessarily assume that
death is the reason. It could be ill-
ness or dementia or depression.
Perhaps something happened to the
person’s spouse or children. Or
maybe my friend is mad at me for
some reason or has decided to put
an end to the friendship.
If you look up communication
anxiety, it refers to anxiety about
giving a speech, but I have no fear
of public speaking. Nor do I suffer
from social anxiety. I have no prob-
lem walking into a roomful of
strangers and introducing myself. I
don’t brood about being ignored or
rejected by a person I’ve just met,
so why do I brood about not getting
an email from an old friend?
I suspect that many people—not
only old people—have this kind of
communication anxiety. In E.M. For-
ster’s “Howards End,” the narrator
cryptically says “Only Connect”—
Friday, November 10, 2017 | A17
ISTOCK/GETTY IMAGES
and wealth to study remaining life-
time fiscal fairness on a cohort ba-
sis. For example, we compare the
average remaining lifetime net tax
rates of rich and poor 40-year-olds.
We calculate these tax rates by di-
viding remaining lifetime net taxes
(measured in present value) by
household resources (the present
value of future labor earnings plus
current net worth).
The Fiscal Analyzer includes
some 20 federal and state business
and personal taxes as well as trans-
fer programs, including hidden
taxes, such as Medicare Part B pre-
miums, and transfers to the poor,
such as food stamps and welfare
benefits. It also calculates inequal-
ity in remaining lifetime spending
for each cohort separately. Finally,
the Fiscal Analyzer properly weighs
all households’ future survival
paths, taking full account of all net
taxes, including estate taxes, paid
along these paths and treating the
present value of bequests as part of
showing in September’s election, in
the form of the Alternative for Ger-
many party. But one can make a few
observations about why suddenly Eu-
rope is faring better than America in
responding to the voter disaffection
that otherwise drives people to the
political edges.
While Washington is stuck
in neutral, French and
Dutch reformers are
pushing radical change.
Mr. Trump’s election, and Brit-
ain’s vote last year to leave the Eu-
ropean Union, scared Europe’s main-
stream politicians straight. Centrists
who long had ignored their fringe
challengers were warned that chal-
lengers really can win elections
nowadays, and not only in vaguely
eccentric places like Hungary.
Another explanation is that Eu-
rope’s economic and political crises
have lasted much longer and run
much deeper than America’s recent
stagnation. This has given politi-
cians more time to figure out what
to do, even as they failed for many
years to do it, while also increasing
voters’ receptiveness to radical
changes.
Witness the way successive
French governments promised to
presumably meaning don’t become
a recluse. Nowadays we have many
electronic ways of connecting with
people. But the more paths there
are, the greater the likelihood that
we will choose the wrong one. “The
plain truth is that connecting
sometimes drives people apart,”
Why isn’t he responding to
my email? Is he angry with
me? Is he even alive?
Patricia T. O’Conner and Stewart
Kellerman observe in “You Send
Me: Getting It Right When You
Write Online.”
Everyone has a story of an email
calamity. It’s so easy to click on the
wrong email address. Twice I’ve al-
most wrecked a friendship because
I mistakenly sent an email to the
wrong person. This mistake, I sus-
pect, is common. One time a
friend’s wife was upset that I hadn’t
responded to her email about her
husband’s new book, but she had
sent the message to my old address.
I didn’t know she was angry until a
mutual friend told me.
Before the electronic revolution,
if you didn’t hear from a friend
for several months it was no big
deal. Your friend would probably
the spending of the decedents. In
short, the Fiscal Analyzer assesses
fiscal progressivity and spending in-
equality based on what economics
actually says, not what politicians
are used to hearing.
I’ve run the new tax plan through
the Fiscal Analyzer assuming a 5.5%
increase in workers’ wages. The
new tax law makes little difference
to spending inequality or net tax
rates. The within-age-40-cohort
spending share of the top 1% barely
rises—to 12% from 11.9%. For those
in the bottom fifth, spending share
falls to 6.3% from 6.6%. This is a
bigger deal given this group’s eco-
nomic vulnerability. As for the mid-
dle 20%, their spending share re-
mains at 13.7%. Remaining lifetime
net tax rates are slightly lower at
the top and slightly higher at the
bottom.
Spending shares and tax rates
are important, but not as important
as the rise in earning and spending.
The Fiscal Analyzer shows a 2.2%
rise in remaining lifetime spending
for the bottom quintile followed by
increases of 5.4%, 6.3%, 6.5% and
7.2% for the next four quintiles. The
rise for the top 1% is 7.1%. The poor
don’t do as well, because they don’t
pay as much in taxes, nor do they
have much in earnings. Conse-
quently, the absolute rise in spend-
ing is far larger for the rich.
There are many steps, like lifting
the ceiling on Social Security tax-
able earnings, that could make the
reform more progressive and pro-
duce badly needed revenue. But the
new tax plan, while far from what I
and other tax specialists would de-
sign, will boost the economy, gener-
ate more revenue, maintain fair-
ness, and raise Americans’ living
standards. It’s imperfect but worth
passing.
Mr. Kotlikoff is an economist at
Boston University and president of
Economic Security Planning Inc.
make the same reforms to that
country’s labor laws, only to fail
once in office. The consensus was
born of long and miserable economic
experience. What has changed in the
past year is that a new sense of ur-
gency has arisen for mainstream
politicians to do it before voters
turn to someone else. Thank Mr.
Trump for that.
Another force at work is the vot-
ers themselves. Europeans appear to
be undergoing an epiphany as they
observe Britain’s Brexit agonies and
the Trump circus. They are discover-
ing that protest votes fail if protest
politicians prove incapable of gov-
erning once in office. Better, then, to
reward newly chastened mainstream
politicians who have a modicum of
competence to make tough but nec-
essary choices.
As a result, French voters who
otherwise flirted with the National
Front out of frustration with eco-
nomic malaise decided not to punish
Mr. Macron with brutal strikes when
he charged ahead with his reform
agenda. This enhanced electoral gno-
sis is the unheralded but crucial ele-
ment to many of Europe’s recent, if
still tentative, political successes.
Mr. Trump’s surprising win a year
ago taught Europe’s politicians one
thing, and now his political failures
are teaching European voters an-
other. The open question is whether
the American electorate is learning
the same lessons.
write a Christmas letter or get in
touch when he wanted to pay you
a visit.
Since emails give me anxiety,
maybe I should spend less time
thinking about them. But I will
never give them up. I live in North-
ern Virginia, and emails let me
keep in touch with friends as far-
flung as the island of Tasmania.
I often tell myself that the most
likely reason I haven’t heard from
someone is forgetfulness. Surely
so-and-so planned to reply, but it
slipped his mind. Unless he printed
out my email, it would be easy to
forget about it. Should I write so-
and-so a second or third time?
Should I call him? I’ve never liked
talking on the phone.
Today good news: I got an email
from one of my friends whom I
hadn’t heard from in 10 months. He
is doing OK. Within a few hours,
however, the dark thoughts had mi-
grated to another friend. Why ha-
ven’t I heard from her? Is she
dead, depressed, demented or an-
gry with me? Maybe it’s none of
the above.
Calm down. It’s only your com-
munication anxiety.
Mr. Miller’s latest book is
“Walking New York: Reflections of
American Writers from Walt Whit-
man to Teju Cole.”
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BUSINESS & FINANCE
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S&P 2584.62 g 0.38% S&P FIN g 0.34%
U.S.-China Pacts Come With Hitch Disney
Details
Many agreements in
$250 billion tally aren’t
full contracts; little
effect on trade balance
On the surface, deals worth
$12 billion for Qualcomm Inc.
to sell chips to three Chinese
smartphone brands look like a
win for America Inc. during
President Donald Trump’s visit
here.
But there is a catch to the
Qualcomm deals and many of
the other agreements involv-
ing companies such as Boeing
Co. and General Electric Co.,
announced at Mr. Trump’s
Chip Makers Zero In on Artificial-Intelligence Market
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
IDENTITY TAGS: Nvidia demonstrated a law-enforcement system that recognizes vehicles and people at a Washington technology conference earlier this month. As
sales of smartphones and PCs ease, chip makers such as Nvidia are developing processors for use in an artificial-intelligence market that is expanding dramatically. B4.
SEC Starts Talking Tough on Coin Offerings
BY DAVE MICHAELS
AND PAUL VIGNA
Securities and Exchange
Commission Chairman Jay
Clayton said initial coin offer-
ings in many cases looked like
securities, raising the prospect
the agency will take a more
aggressive stance toward this
red-hot fundraising method.
“I have yet to see an ICO
that doesn’t have a sufficient
number of hallmarks of a se-
curity,” Mr. Clayton said in an
unscripted remark delivered in
the middle of a speech at the
Institute on Securities Regula-
tion in New York Wednesday.
STREETWISE | By James Mackintosh
Opportunities Can Be
Found in Japan’s Stocks
Investors
who bought
Japanese
stocks at the
peak of Japan
fever in De-
cember 1989 are the closest
they have been in 27 years to
making their money back, at
least assuming they rein-
vested dividends. If shares in
large Japanese companies
keep rallying the way they
did as the ’80s were ending,
investors might be back in
the black in January.
Japan carries lots of les-
sons for Western investors,
about aging societies, how
hard it is for central banks to
fight entrenched deflation,
and about the scale of losses
when a proper bubble bursts.
But the main lesson from
Japanese stocks today is that
it is possible to make oodles
of money even when govern-
ment policies appear not to
TECHNOLOGY: STARTUPS HOPE TO FEAST ON LEFTOVERS B4
* * * **
S&P IT g 0.85% DJ TRANS g 1.18%
summit with President Xi Jin-
ping this week. Many in the
$250 billion haul aren’t full
contracts. Announcing them
gave both governments a big
headline number to cheer
about but, as some business
groups said, without address-
ing harder-to-resolve problems
in U.S.-China trade.
In Qualcomm’s case, the
nonbinding, intended orders
by smartphone maker Xiaomi
Corp. and the Oppo and Vivo
brands owned by Guangdong’s
BBK Electronics span over
three years and are basically
on par with existing orders,
according to a person familiar
with the deal. A Qualcomm
Mr. Clayton’s remarks sug-
gest firms using the coin of-
ferings, or ICOs, to raise cash
in the U.S. may need to regis-
ter the deals with the SEC and
provide investors with exten-
sive disclosure documents, de-
pending on how broadly they
market them. Startups that
once conducted virtually un-
regulated token sales will
likely have to consult lawyers
and other gatekeepers to ad-
vise them on how to navigate
laws and rules overseen by the
SEC.
An initial coin offering is a
method of capital raising
among cryptocurrency-related
be working that well.
When Shinzo Abe was
elected prime minister in
2012, he set out to rekindle
inflation and shake up sedate
boardrooms to put the cash
sitting on company balance
sheets to better use.
The inflation efforts ha-
ven’t delivered. So-called
core core inflation, excluding
food and energy, is at zero.
The Bank of Japan’s new pre-
ferred measure, excluding
fresh food and energy, is just
positive, nowhere near the
2% target. That is despite the
central bank buying about $3
trillion of bonds and shares
in the past five years.
It is far from obvious that
companies are paying out
significant chunks of cash,
either. Share buybacks tri-
pled from 2012 to last year,
which looked like a sign that
boards were becoming more
Please see STREET page B2
THE WALL STREET JOURNAL.
WSJ $ IDX* g 0.24% LIBOR 3M 1.413
By Eva Dou
and Yoko Kubota in
Beijing, and Trefor
Moss in Shanghai
spokeswoman declined to
comment on whether the deals
went beyond expected orders.
The biggest deal, an $83.7
billion Chinese direct-invest-
ment plan, didn’t even involve
a U.S. company: state-owned
China Energy Investment
Corp. signed a preliminary
agreement to invest in shale
gas and chemical manufactur-
ing in West Virginia. That
headline figure would be in-
vested over the course of 20
startups that has exploded in
popularity this year. In an ICO,
firms simply create and offer a
new token to investors. The
process can be as simple as
adding a few lines of code to
an existing project.
There have been more than
160 of these ICOs this year,
which have collectively raised
more than $3 billion, accord-
ing to data from research firm
CoinDesk. Before this year,
ICOs had raised a total of
about $300 million going back
to 2014.
But as the dollar totals
have risen, the questions
among regulators have risen
INSIDE
BETTER
HOLIDAYS
IN STORE?
RETAIL, B3
TAX WORRIES
WEIGH HEAVILY
ON BLUE CHIPS
THURSDAY’S MARKETS, B11
NIKKEI 22868.71 g 0.20% See more at WSJMarkets.com
years.
The second-largest figure—
$43 billion—was an estimate
of construction costs for an
Alaska natural-gas project,
with the investment break-
down between the U.S. and
Chinese companies still under
negotiation. Alaska Gasline
Development Corp. President
Keith Meyer said he expects
the pipeline to bring in $8 bil-
lion to $10 billion in revenue a
year beginning in 2024 or
2025, but that a final agree-
ment with China Petroleum &
Chemical Corp., known as Sin-
opec, will be negotiated next
year.
“The deal is politically ex-
as well.
Chinese authorities in Sep-
tember declared coin offer-
ings illegal. Hong Kong regu-
lators warned the offerings
are likely to be regulated. The
U.K.’s Financial Conduct Au-
thority said token offerings
have parallels with initial
public offerings and other
fundraising methods, and may
fall into its “regulatory pe-
rimeter.”
In July, the SEC issued a
high-profile investigative re-
port on coin offerings, con-
cluding that some of them
may meet the definition of a
security, but that it would look
Tensions Ease on Media Deal
BY DREW FITZGERALD
AND BRENT KENDALL
A day after disagreements
between AT&T Inc. and the
U.S. government over the com-
pany’s proposed takeover of
Time Warner Inc. spilled out
into the open, both sides tried
to mute tensions that threat-
ened to mar negotiations.
AT&T Chief Executive Ran-
dall Stephenson said Thursday
he had no reason to believe
that antitrust enforcers’ exam-
ination of the deal was influ-
enced by President Donald
Trump, who has criticized
Time Warner’s CNN as unfair
to him. Mr. Stephenson also
said AT&T would continue to
work toward a negotiated set-
tlement.
Meanwhile, a government
official close to the negotia-
tions said the Justice Depart-
ment believed there were
many ways to resolve its con-
cerns, and that a sale of Time
Warner’s Turner television
unit or of AT&T’s DirecTV
weren’t the only options.
After a long antitrust re-
pedient, yet its nonbinding na-
ture gives Sinopec the flexibil-
ity to quietly back away from
the deal down the line,” said
Hugo Brennan, an Asia analyst
at consulting firm Verisk Ma-
plecroft. AGDC didn’t respond
to that characterization, and
Sinopec declined to comment
on it.
In another heralded deal,
Chicago-based Boeing said it
would supply 300 aircraft,
worth about $37 billion, to
state-run aircraft-leasing com-
pany China Aviation Supplies
Holding Co.
Boeing has a backlog of
more than 1,000 orders from
Please see CHINA page B2
at each on an individual basis.
The focus of the report was
a 2016 offering called the
DAO. The commission con-
cluded the DAO tokens were a
security, but it declined to
take enforcement action
against the sponsors, opting
instead to provide guidance on
how ICO users should deal
with investor protections
written into securities laws.
In the wake of that report,
a number of firms tried to
calibrate their offerings to a
form they assumed would
keep them clear of the securi-
ties designation. Mr. Clay-
Please see ICO page B2
Breaking Up?
Regulators have raised the prospect that AT&T would have to shed
either its DirecTV business or Time Warner's Turner division.
Nine-month revenue by segment
AT&T
Business Solutions
Entertainment*
Consumer Mobility
International 6.1
Time Warner
Turner 9.0
HBO 4.7
Warner Bros 9.8
*DirecTV is part of entertainment. Source: SEC filings
view, people familiar with the
matter have said, the agency
recently raised the prospect
that the telecom giant would
have to divest itself of either
the Turner unit, which in-
cludes CNN and other cable
networks, or the satellite Di-
recTV business that AT&T
bought two years ago.
The government official
close to the negotiations said
Friday, November 10, 2017 | B1
*as of 12:18 p.m.
Streaming
Initiative
BY BEN FRITZ
Walt Disney Co. Chief Exec-
utive Robert Iger disclosed
new details on coming stream-
ing services and the Star Wars
film franchise as the company
reported declines in three of
its four core businesses for its
latest quarter.
Mr. Iger wouldn’t comment
on recent reports that Disney
pursued an acquisition of 21st
Century Fox Inc.’s entertain-
ment assets during a confer-
ence call with analysts on
Thursday.
Disney is developing new
television series based on
some of its biggest fran-
chises—“Star Wars,” “Monster
Inc.,” “High School Musical”
and Marvel—that will be car-
ried on a Netflix-style stream-
ing service set to launch in the
second half of 2019, Mr. Iger
told analysts.
Those are the first specific
programming announcements
Disney has made about the
service. By placing such pre-
mium content there, rather
than on its cable channels or
ABC network, the company is
signaling that it views the di-
rect-to-consumer offering as a
high priority.
Mr. Iger also provided some
information on pricing for the
service, saying it will be “sub-
stantially below” that of Net-
flix Inc. because it will start
with “substantially less vol-
ume.”
Mr. Iger also revealed that
an ESPN digital offering sched-
uled for next year will debut in
the spring and be called ESPN
Plus. It will be part of a rede-
signed ESPN app that includes
sports scores and highlights
along with content from the
cable network available only to
people with a pay-TV subscrip-
tion.
In addition, Mr. Iger for the
first time provided details on
the company’s plans to pro-
duce Star Wars movies beyond
a current trilogy set to end in
2019. Rian Johnson, the writer-
director of this December’s
“The Last Jedi,” is developing
“a brand new Star Wars tril-
ogy” for Disney, the CEO said.
Total television revenue,
which includes Disney’s cable
and broadcast businesses,
dropped 3% in the quarter
ended Sept. 30 to $5.47 billion
and operating income fell 12%
to $1.475 billion. Movie studio
revenue dropped 21% to $1.4
billion and operating income
declined 43% to $218 million.
The only Disney business to
grow in its fiscal fourth quar-
ter was parks and resorts.
Disney’s total revenue for
quarter fell 3% to $12.78 billion
and profit declined 1% to $1.75
billion.
Nine-month operating
income by segment
$51.0 billion $13.3 billion
38.0 4.6
23.3 7.1
–0.3
3.5
1.7
1.3
THE WALL STREET JOURNAL.
no final decision has been
made and that the department
was in ongoing conversations
with the companies.
Mr. Stephenson also said
Thursday he wouldn’t shed a
major business to win govern-
ment approval of the takeover
and that he was ready to take
the fight to court.
“We are prepared to litigate
Please see AT&T page B2
B2 | Friday, November 10, 2017
INDEX TO BUSINESSES
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A
Advanced Micro Designs
.....................................B4
Alaska Gasline
Development.............B1
Allianz ......................... B6
Alphabet.........A6,B4,B11
Amazon.com....................
B2,B3,B4,B11,B12
Apple.........................B11
Aramark ...................... B4
AT&T............................B1
B Intel......................B4,B12
Baidu ........................... B4
Banco Bilbao Vizcaya
Argentaria...............B10
Banco de Sabadell....B10
BancorpSouth Bank....A2
Bank of The Ozarks ... A1
Boeing ......................... B1
Broadcom .................... B4
C Group ........................ A7
CaixaBank..................B10
Cheniere Energy..........B2
China Petroleum &
Chemical (Sinopec
Corp.).........................B1
Chipotle Mexican GrillB4
Comcast.......................B2
D N
Darden Restaurants ... B4
DirecTV........................B1
INDEX TO PEOPLE
B H
Beyrer, Markus...........B3
Boucher, Rene.............A6
Brennan, Hugo............B1
Burges, Kolin ............ B10
C Howell, Eric.................A2
Cañete, Miguel Arias..B3
Cangemi, Thomas.......A2
Chattopadhyay, Akash
.....................................B2
Clayton, Jay ................ B1
Comizio, V. Gerard......A2
E Kimsey, Jeff..............B10
Early, Peter.................B6
Evans-Pritchard, Julian
...................................B12
F Levy, Phil.....................B2
Forrest, Kim..............B11
Freiberg, Steve ........... B6
G M
Gleason, George ......... A1
Gobbetti, Marco..........B3
Gortázar, Gonzalo.....B10
AT&T
Continued from the prior page
now” if the companies cannot
reach a negotiated settlement
with the Justice Department,
Mr. Stephenson said at the
DealBook business conference
Thursday in New York.
AT&T has argued the
roughly $80 billion cash-and-
stock deal shouldn’t raise
competitive concerns, while
consumer advocates as well as
some lawmakers and media ri-
vals have disagreed. A letter
from 11 Democratic senators to
Attorney General Jeff Sessions
in June said the deal would
give AT&T “unmatched control
STREET
Continued from the prior page
willing to address sharehold-
ers’ concerns. Yet this year,
buybacks have tumbled by
more than a quarter, accord-
ing to Goldman Sachs, even
* ***** THE WALL STREET JOURNAL.
BUSINESS & FINANCE
E-F
Equifax ........................ B6
Facebook.........B2,B4,B11
News Corp...................B6
New York Community
Bancorp.....................A2
Nissan Motor..............A8
CHINA
Fiat Chrysler...............A8
First Republic Bank....A2 Nordstrom...................B3 Continued from the prior page
Ford Motor ............ A8,B2 Nvidia...................B4,B12 unidentified buyers, many of
G-I P which are believed to be from
Procter & Gamble.......B6 China, according to aviation
General Electric .......... B1
PSA Group...................B3
General Motors intelligence company Flight-
Q-S
.................... A6,A8,B2,B3 Global, suggesting that the or-
Google ......................... B2 Qualcomm..............B1,B4
ders unveiled during Mr.
Ikea International.......B4 Sears Holdings............B3
Signature Bank...........A2 Trump’s visit may not neces-
Interactive Brokers Snap............................A1 sarily be new.
Group.......................B10 Social Finance.............B6
Intercontinental
The company didn’t re-
Sodexo.........................B4
Exchange.................B11 Sysco...........................B4 spond to questions about
International Business T-U-V whether the new Chinese or-
Machines...................B4 ders are among those previ-
International Taiwan Semiconductor
Consolidated Airlines Manufacturing........B12 ously announced.
Tencent Holdings A2,B11 Boeing typically times the
JONATHAN ERNST/REUTERS
Time Inc. ..................... B6 announcement of large Chi-
K-M Time Warner...............B1
Kohl's...................B3,B12 Toyota Motor..............B3 nese orders to coincide with
Macy's..................B3,B12 Trian Fund...................B6 important political events:
McKinsey.....................A9 21st Century Fox........B1 when Mr. Xi visited the U.S. in
Microsoft.....................B4 Under Armour.............B3
Mt. Gox ..................... B10 Volkswagen.................B3
2015, the company announced
Mythic.........................B4 W-Y-Z a Chinese order for 300 jetlin-
Walt Disney................B1
ers worth $38 billion.
Nasdaq ...................... B10 Xiaomi.........................B1 The signings included sev- U.S. and Chinese business leaders after signing agreements in Beijing on Thursday.
Netflix.............B1,B2,B11 Yacktman Asset..........B6 eral new gas-export agree-
ments, in line with the Trump which GM operates with state- Many economists and busi- 2025” industrial-policy initia-
administration’s May an- run auto maker Shanghai ness leaders say the focus on tive designed to displace for-
nouncement that it would en-
courage natural-gas export to
Auto, would import vehicles
and parts worth $2.2 billion
deals will do little to advance
Mr. Trump’s goal of curbing
eign manufacturers in a wide
range of sectors led by U.S.
China to help address the from the U.S. over the next the bilateral goods trade defi- companies, such as robotics,
Montoya, Manuel ....... A8 trade imbalance. Cheniere En- three years. cit of $347 billion that the U.S. medical equipment and driver-
Henry, Mike.................B4 Morishita, Tetsuo.....B10 ergy Inc. signed an $11 billion In a reflection of the pre- had with China last year, and less vehicles.
Herbert, James...........A2 Mulholland, Dan........B11
memorandum of understand- liminary nature of some of the which appears to be growing The U.S. trade deficit is
Hewitt, Alistair.........B11 N ing on long-term sales of liq- agreements, the two govern- even bigger this year. driven by broader macroeco-
Hodge, Doug ............... B6 Newton, Wade............A8 uefied natural gas to China ments announced few details nomic trends, such as the
Noreika, Keith.............A1 National Petroleum Corp. at the signing. The U.S. Em- shortfall of savings in the
I Notter, Rick ................ A3
Auto makers Ford Motor bassy later released informa- American economy.
Iger, Robert.................B1 P Co. and General Motors Co. tion on some deals, though
The U.S. trade The contracts announced in
J Peltz, Nelson...............B6 were also part of the deal pa- certain companies requested deficit is driven Beijing this week will “have a
Jong, Femke de...........B3 Peterffy, Thomas......B10 rade. their agreements remain pri- negligible effect on our overall
K R Ford said it had confirmed vate, according to officials.
by broader trends in trade balance, which is largely
Ringel, Steve .............. A3 plans to export nearly $10 bil- The focus on deals con- the economy. determined by savings and in-
Kuhlman, Arkadi.........B6 Rollins, Dan ................ A2 lion worth of vehicles and auto trasts with the lack of visible vestment behavior,” says Phil
L S parts to China from North progress expected during Mr. Levy, senior fellow at the Chi-
Lee, Peter V................A3 Schwartz, Henry.......B10 America over the next three Trump’s trip in negotiating cago Council on Global Affairs
Shaffer, Matthew.......B2 years. Ford said it would in- deeper structural changes that That is partly because spe- who was a trade economist in
Stephenson, Randall...B1 crease exports by 30,000 vehi- American government and cific sales agreements don’t the George W. Bush adminis-
Lobley, Brian...............A3
Lohscheller, Michael...B3 T cles in that period to meet de- business leaders have long address Chinese policies that tration.
Tavares, Carlos ........... B3 mand for imported cars from sought in gaining greater mar- aggravate American compa- —Jacob Schlesinger in
Torres, Carlos............B10 wealthy Chinese buyers. ket access to China, and in nies. Many executives fret Washington, Chun Han Wong
MacDonald, Chip.........A2
Maragos, Peter.........B10 W GM confirmed one of its lo- curbing Beijing’s ambitious more about broader issues and Yang Jie in Beijing
Miller, Alexis .............. A3 Wang, Charles.............B2 cal joint ventures, SAIC-GM, mercantilist industrial policies. such as the “Made in China contributed to this article.
of popular content and the
distribution of that content,”
which could lead to higher
prices and few choices for
could hurt media competition,
saying it “borders on comical.”
“Concentration of power is
the least problem of this in-
Justice Department’s antitrust
division during the George W.
Bush administration.
After the Time Warner deal
ICO list and trade virtual coins or
tokens offered and sold in ini-
tial coin offerings,” he said,
warning that many platforms
American consumers. dustry,” he said, pointing to was reached last fall, Mr. Del- Continued from the prior page were susceptible to manipula-
AT&T’s critics also have technology giants like Netflix, rahim, who at the time was ton’s comments suggest they tion and other fraudulent
said the telecom company Amazon.com, Google and still in private practice, said he could still be within the SEC’s practices by ICO insiders,
would have incentive to favor Facebook that have invested didn’t think the merger raised ambit if they raise funds management and better-in-
Time Warner content over heavily in entertainment and major antitrust concerns. “Just within the U.S. formed traders.
programming from other en- advertising. the sheer size of it, and the Mr. Clayton’s comments In a brief interview after
tertainment companies, and The Justice Department’s fact that it’s media, I think will came while he was discussing his speech, Mr. Clayton said
that AT&T could gain bargain- final AT&T decision will fall get a lot of attention. How- transparency and ways to de- many ICOs resemble tradi-
ing leverage when negotiating heavily on Makan Delrahim, ever, I don’t see this as a ma- ter wrongdoing. “Where opac- tional stock offerings, with the
carriage fees for Time Warner the new head of the depart- jor antitrust problem,” he said ity exists, bad behavior tends only difference being the new
channels with other pay-TV ment’s antitrust division. Be- in a television interview. to follow,” he said, touching fundraising tool involves to-
providers, including Comcast fore his confirmation in Sep- In the same interview, he on such topics as mutual-fund kens and distributed-ledger
and Dish Network. tember, Mr. Delrahim was a said the deal could raise fee disclosures, penny stocks, technology.
On Thursday, Mr. Stephen- deputy White House counsel, a “some concerns and antitrust investor education and coin “When you depart from the
son didn’t address any specific role in which he focused on issues of one distributor own- offerings. bitcoin or the ethereum, and
legal concerns the government the president’s slate of conser- ing various content, and it “There is also a distinct you get into the tokens, the
raised with him but criticized vative judicial nominees. might somehow impact other lack of information about hallmarks become pretty
the idea that a bigger AT&T He previously worked in the distributors.” many online platforms that clear,” he said.
Signs of Life
Japanese stocks have soared since Shinzo Abe’s election in 2012, and total returns
including dividends on the Topix index are approaching the 1989 bubble’s top.
ADVERTISEMENT
Legal Notices
But returns look similar to European or U.S. stocks in yen terms. To advertise: 800-366-3975 or WSJ.com/classifieds
Topix total return index (including dividends) Total returns including dividends*
NOTICE OF SALE
November 2012-November 2017 1984-92 Japan (Topix) U.S. (S&P 500) Eurozone
(Datastream†)
3000 200%  

   
 


     
as corporate-governance 2500    ! "# $%& ' %%%  ()'! '*
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T
his isn’t to say that ev- 1500
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1000
wrong. The early ex-

LEGAL
citement about boardroom Weekly data
500   

reform was justified: More 1984 1990 2000 2010 

   

NOTICES
than 80% of companies now    
have at least two indepen- *Data are through Nov. 8. †Datastream stock index      ! "#!$ %&&'&
dent directors, up from just Source: Thomson Reuters Datastream THE WALL STREET JOURNAL.    (   %%! '( 
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over half two years ago. (%! ' -
While still far below the and boosted return on equity and the old cash-hoarding Japan, though. The BOJ isn’t   %%'   ! "#!$ %&&'&
  
   
ADVERTISE TODAY
Western norm of shareholder significantly to qualify. habits die hard. likely to scrap its bond-yield         
   

friendliness, and still made There is a hopeful way to The true cynic will explain cap any time soon, and the   
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up almost exclusively of old characterize the Japanese that shares have risen merely economic outlook is bright. #&   
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men, Japanese boards are a equity boom of the past year. because the central bank’s There are signs of pay pres-
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lot better than they were. Profits have soared, and in- monetary splurge makes the sure among Japan’s armies )  
   
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' : © 2017 Dow Jones & Company, Inc.
the academics call the “pres- boost productivity when None of these three expla- vulnerable as anywhere else 0  All Rights Reserved.
tige” of being in the index wage bills are under control, nations are a reason to sell to a global setback.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. * * * * * * Friday, November 10, 2017 | B3

BUSINESS NEWS

Outcome Health’s
Investors Receive
U.S. Subpoenas
BY ROLFE WINKLER
Investors in Outcome
Health on Thursday said in a
court filing that they were re-
ceiving subpoenas from the
Justice Department as part of
a fraud investigation into the
prominent Chicago advertis-
ing startup.
The filing, submitted to the
New York State Supreme
Court in New York County,
said Goldman Sachs Group
Inc. and other investors,
drug advertising to flat
screens and tables it places in
doctors’ offices, earlier this
year raised nearly $500 mil-
lion in funding that it said in-
vestors valued the company
at $5.5 billion. Goldman Sachs
invested $100 million of cli-
ent money through its asset-
management arm.
Last month, The Wall
Street Journal reported that
some Outcome employees had
allegedly misled pharmaceuti-
cal-advertising customers.

which are suing Outcome for
allegedly defrauding them,
were receiving the subpoenas
on Thursday. The investors
also said “additional inqui-
ries” were expected from the
Securities and Exchange Com-
mission, without elaborating.
Goldman Sachs was noti-
fied by the Justice Depart-
JUSTIN LANE/EPA/SHUTTERSTOCK
Outcome charged some adver-
tisers for ad placements on
more screens than the startup
had installed, the Journal re-
ported, citing information
provided by former employ-
ees and advertisers as well as
internal documents and other
material. Shoppers at a Macy’s in New York. The department-store chain widened its profit margin in the latest quarter by controlling inventory.
Some Outcome employees

Retailers’ Results Signal

ment that it would be receiv-
ing a subpoena, a person
familiar with the matter said.
This person said the SEC told
Goldman it would soon send
also provided customers with
inflated data to measure how
well ads performed, created
documents that inaccurately
verified that ads ran on cer-

Competitive Holiday Sales

investors a formal request for
information.
Representatives of the Jus-
tice Department and SEC de-
clined to comment.
An attorney for Outcome
Health, Sanford Michelman of
Michelman & Robinson, said
Outcome Health
earlier this year
raised nearly $500
million in funding.
the company “is committed to
fully cooperating with any
government investigation.”
“The company hired for-
mer U.S. Attorney Dan Webb
of Winston & Strawn to lead
its review as soon as it
learned of these potential is-
sues with certain employees
and that internal review is
under way,” he said.
One of Outcome’s pharma-
ceutical-advertising custom-
ers also received a Justice
Department subpoena re-
questing data related to ad
campaigns, according to a
person familiar with the
matter.
The subpoena to this com-
pany requests a list of docu-
ments including those related
to locations where Outcome
said it displayed ads, infor-
mation on any possible dis-
crepancies with those loca-
tions and on refunds provided
to the company from Out-
come, and any reports show-
ing the effects of the adver-
tising, this person said.
Outcome, which streams
tain doctors’ screens, and
manipulated third-party anal-
yses showing the effective-
ness of the ads, according to
some of these people and
documents.
In response to that article,
Outcome said it “has always
upheld the highest ethical
standards” and has adopted
new policies throughout 2017
to comply with customer con-
tracts. The company put three
employees on paid leave
while Mr. Webb reviews alle-
gations of misconduct.
On Tuesday, funds man-
aged by an investment unit of
Goldman Sachs, Google par-
ent Alphabet Inc. and other
firms sued Outcome and its
founders, Rishi Shah and
Shradha Agarwal, claiming
fraud and breach of contract.
The lawsuit, which cites the
Journal article and informa-
tion gathered by the inves-
tors, alleges the founders
misled them by knowingly
providing false data and fi-
nancial reports before the
firms invested $478.5 million
beginning in March. The suit
also seeks to freeze $225 mil-
lion in funds controlled by
the founders.
Outcome on Wednesday
said that the investors’ accu-
sations were baseless and
that their effort to freeze the
funds was unfair and could fi-
nancially damage the com-
pany.
In Thursday’s filing, the in-
vestors provided information
that they allege shows Out-
come manipulated third-party
reports summarizing ad cam-
paigns to make them appear
to be more successful than
they were.
Macy’s, Nordstrom
and Kohl’s have
mixed quarter in
‘era of the consumer’
BY SUZANNE KAPNER
AND AUSTEN HUFFORD
Macy’s Inc., Kohl’s Corp.
and Nordstrom Inc. reported
mixed third-quarter results on
Thursday, underscoring the
challenges department-store
chains face as shoppers buy
more online and setting the
stage for a competitive holiday
season.
Kohl’s pointed to a strong
back-to-school season, leading
to surprise, if slight, growth in
sales at stores open at least a
year. Macy’s, meanwhile, said
it increased its gross profit
margin, thanks to efforts to
control spending on inventory.
Nordstrom swung to a profit
but reported a decline in
same-store sales, dragged
down by its department stores.
Shares of Macy’s rose 11%
on Thursday as the company’s
profit exceeded Wall Street’s
estimates. Kohl’s margins fell
short of expectations, but its
stock inched up 0.9%. Nord-
strom shares gained 4.5% be-
fore losing ground in after-
hours trading after the
company posted its results.
Kohl’s Chief Executive Kevin
Mansell said the gross-margin
decline was partly due to
higher shipping costs associ-
ated with an increase in online
Retail Shifts
Quarterly change in comparable sales from a year earlier
6%
4 clients.
2 acknowledged the challenges
0 s0.1%
–2
–4
–6
–8
2015 ’16
Note: Macy's data exclude licensed departments.
Source: the companies
orders. He added that store
traffic and sales picked up in
late October, after a lull in
September, setting the retailer
up for a strong year-end finish.
“We’re super confident as we
go into the fourth quarter,” Mr.
Mansell said.
The shift to online shopping
has hurt traditional retailers
across the board. The impact
on department stores has been
particularly sharp, since they
sell branded goods whose
prices shoppers can easily
compare online. The shakeout
has prompted chains such as
Macy’s, J.C. Penney Co. and
Sears Holdings Corp. to close
hundreds of stores, many of
them in malls that shoppers
aren’t visiting as frequently.
Kohl's
Nordstrom
t0.9%
Macy's
t4.0%
’17
THE WALL STREET JOURNAL.
Kohl’s, whose stores aren’t
located in malls, has refrained
from mass store closures and,
according to Mr. Mansell, has
picked up market share from
rivals that are pulling back. It
has also added popular ath-
letic gear from Under Armour
Inc. and partnered with Ama-
zon.com Inc. to sell its Echo
device and other products and
to accept returns for items
purchased through the online
retailer.
Macy’s has revamped its
shoe and jewelry departments,
expanded its Backstage dis-
count concept in its chain and
leased space to third parties
such as LensCrafters. But ana-
lysts say the moves haven’t
been enough.
“As much as these things
are valuable, they do not ad-
dress the fundamental issues
facing the business,” wrote
Neil Saunders, a managing di-
rector of research firm
GlobalData Retail, in a note to
Macy’s CEO Jeff Gennette
in an interview. “This is clearly
the era of the consumer,” he
said. “They are very smart.
They have more choices than
ever. We at Macy’s have to
earn our share of their wallet.”
Sales at Macy’s stores ex-
cluding recently opened or
closed locations fell 4% in the
three months to Oct. 28, ex-
tending a string of declines.
Total sales in the fiscal quarter
fell 6.1% to $5.28 billion, partly
due to store closures.
Macy’s profit more than
doubled to $36 million from
$17 million in the year-earlier
period, as the company did a
better job of controlling costs.
Kohl’s comparable sales
rose 0.1% in its fiscal third
quarter, the retailer’s first up-
tick in more than a year. Total
sales rose 0.1% from a year
earlier to $4.33 billion. Net in-
come dropped 18% to $117 mil-
lion, as gross margin narrowed
to 36.8% from 37.1%.
Sales at both chains were
hurt by the recent hurricanes
in the country and unusually
warm weather in September,
the companies said.
 Heard on the Street: Holiday
cheer from retailers..............B12

Peugeot Steers Opel Into Electric Cars THE MOST COMFORTABLE

BY WILLIAM BOSTON
RÜSSELSHEIM, Germany—
The maker of Peugeot unveiled
a restructuring plan for its
Opel and Vauxhall units aimed
at pushing into electric cars
and finally turning a profit at
the recently acquired brands
within two years.
The overhaul announced
Thursday marks the next step
in the turnaround for PSA
Group SA, which also manu-
factures the Citroën brand.
The French car maker was res-
cued from near bankruptcy in
2013 through a bailout from
the French government and
Chinese state-owned Dongfeng
Motors.
In the past three years, PSA
has become one of Europe’s
most profitable companies as
Chief Executive Carlos Tavares
has tried to build Peugeot into
a global competitor to Volks-
wagen AG, General Motors
Co. and Toyota Motor Co.
Peugeot acquired Opel and
its British unit Vauxhall from
GM in August for $2.2 billion,
after GM gave up on the com-
panies after years of losses
and failed attempts to wean
them back to health.
“Over the past 15 years this
company has lost more than
$10 billion. This company has
cut more than 30,000 jobs.
This is a fact. We face a dra-
matic situation,” Mr. Tavares
told reporters at Opel’s head-
quarters in Rüsselsheim.
If Mr. Tavares succeeds
Moving Up
European new-car sales by manufacturer, 2016
Volkswagen
PSA Group/Opel PSA Group
Renault Group
FCA Group
0 0.5
Source: European Automobile Manufacturers Association
where GM failed, the restruc-
turing could become a water-
shed for the European auto in-
dustry, which still suffers from
low profits and overcapacity
as growth in European new-
car sales slows. It could also
transform Peugeot into a po-
tent rival to Volkswagen.
The restructuring plan,
thrashed out in more than
three months of meetings, tar-
gets annual savings of €1.1 bil-
lion ($1.3 billion) and a profit
margin of 2% by 2020. By
2026, those goals are forecast
to rise to €1.7 billion in sav-
ings and a 6% profit margin.
Opel’s management doesn’t
plan to achieve the savings
through plant closures or
mass layoffs, said Opel Chief
Executive Michael Lohscheller.
He said labor costs needed to
come down, but that could be
achieved through early retire-
Opel
1.0 1.5 2.0 2.5 3.0 3.5
million vehicles
THE WALL STREET JOURNAL.
ment and other measures. He
declined to elaborate.
Mr. Tavares is aiming to
nurse Opel and Vauxhall back
to profit by accelerating plans
to shift production to the
French car maker’s technology,
allowing the larger car group
to cut costs by building Peu-
geot, Citroën, Opel and Vaux-
hall models with the same
equipment and parts.
Mr. Lohscheller said savings
would be achieved through
streamlining “just like PSA
did” that includes reducing
the number of engine groups
to four from 10 and cutting
the model technology plat-
forms to two from nine.
Opel is targeting substantial
savings in manufacturing, pur-
chasing and management,
aiming to reduce costs per car
by €700 by 2020, with the aim
of reducing the break-even
OFFICE CHAIR ON EARTH
point to the sale of 800,000
cars. The executives didn’t say BORN FROM THE MIND OF KEN OKUYAMA, DESIGNER
where break-even is now. OF THE FERRARI ENZO AND MASERATI BIRDCAGE
Producing Opel and Vaux-
hall models on Peugeot tech-
nology will help cut the num-
ber of components used by
half. Opel isn’t planning to SAVE
shut any plants, but it will re-
duce the size of its manufac-
$1000
turing operations by 25% and
will boost capacity usage in
Germany by moving produc-
tion from South Korea.
Until now, Opel has had
only one electric vehicle, the
Ampera-e. Without additional
electric-car models, Opel has
been on a trajectory to exceed
European greenhouse-gas
emission targets in 2020. Un-
der the new plan, Opel will be-
gin churning out electric and
hybrid versions of its models.
Every model Opel makes will
have an electric version by
2024. “They were able to re-
build the product planning in
a short period of time to put
the CO2 strategy back on
track,” Mr. Tavares said.
Under GM, Opel neither ex-
ported its products nor ex-
panded into other markets Visionary design and engineering have come together to
where GM was present. That produce a chair so ergonomically perfect, so completely
will also change under Peu- re-imagined, that it exists in a category all its own.
geot. Mr. Lohscheller said Opel This is no mere office chair.
has identified as many as 20
markets that the company This is Vaya®
plans to enter in the coming
years. He declined to elaborate
much, but cited Argentina,
Saudi Arabia and Taiwan.
888-233-6933 | positiveposture.com/vayachair
—Max Bernhard
contributed to this article.
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B4 | Friday, November 10, 2017
Chip Firms Flock to AI’s Promise Amazon
Broadens
Nvidia, Intel and AMD
take steps to counter
slowdown in sales of
PCs and smartphones
BY TED GREENWALD
Chip makers are racing to
develop artificial-intelligence
products to fuel growth as sales
of smartphones and personal
computers cool.
Nvidia Corp., Intel Corp.,
Advanced Micro Devices Inc.
and a raft of startups are craft-
ing new processors to tap into a
broader market for AI hardware
and software that is growing
50% a year, according to Inter-
national Data Corp.
Growth has been elusive in
some areas of the semiconduc-
tor industry, contributing to a
wave of consolidation capped
this week when networking
specialist Broadcom Ltd. bid
$105 billion for smartphone-
chip leader Qualcomm Inc. in
what would be the sector’s big-
gest deal to date.
Global spending on AI-re-
lated hardware and software
could expand to $57.6 billion in
2021 from $12 billion this year,
IDC estimates. Of that, a sizable
portion will go into data cen-
ters, which by 2020 are ex-
pected to devote a quarter of
capacity to AI-related computa-
tions, IDC projects.
In recent years, certain AI
 Heard on the Street: Nvidia
keeps raising its game........B12
Startups Serve Leftover Food to Market
BY HEATHER HADDON
Some entrepreneurs see a
business opportunity in left-
overs.
Restaurants, supermarkets
and commercial kitchens in
the U.S. waste $57 billion of
food each year, according to
ReFED, a nonprofit that works
to reduce food waste. A fur-
ther $15 billion of food is pro-
duced but never makes it off
farms.
Spoiler Alert, founded by
graduates of the Massachu-
setts Institute of Technology’s
business school, is hired to
help food manufacturers and
wholesale distributors better
manage unsold inventory and
increase donations. Sysco
Corp. the largest food distrib-
utor in North America, said
Spoiler Alert helped it redirect
roughly 700,000 pounds of
food worth about $1 million.
LeanPath of Portland, Ore.,
is helping Sodexo SA, Google
parent Alphabet Inc., IKEA,
Aramark Corp. and other
companies with commercial
kitchens track and reduce food
waste by using technologies
such as cameras and scales.
And FoodMaven, a startup
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An Nvidia technology conference in Washington this month included a virtual-reality demonstration.
techniques have become central
to the ability of, say, Ama-
zon.com Inc.’s Echo smart-
speaker to understand spoken
commands. They enable the
Nest security camera from
Google parent Alphabet Inc. to
distinguish familiar people
from strangers so it can send
an alert. They also allow Face-
book Inc. to match social-media
posts with ads most likely to in-
terest the person doing the
posting.
The biggest internet compa-
nies—Google and Facebook as
well as Amazon, International
in Colorado Springs, Colo., is
connecting suppliers with too
much turkey or lettuce with
restaurants and food-service
companies that can buy it at a
discount.
Walter Robb, who stepped
down as Whole Foods co-CEO
last year but remained on the
grocer’s board, invested in
FoodMaven and joined the
board in his first foray in the
industry since Amazon.com
Inc. bought Whole Foods in
August. “It uses the power of
markets to actually try to solve
a problem,” Mr. Robb said.
Sellers can list items on
FoodMaven’s website; the
startup helps with marketing
and logistics and takes a cut of
the sale price. Items cost as
little as half of the standard
wholesale price, with the dis-
count depending on whether
food is cosmetically damaged,
has limited time before the
sell-by date, or is up for sale
in an unusual quantity.
The company is moving
hundreds of thousands of dol-
lars worth of product a month,
a volume that is growing by
nearly 50% a month, said its
chief executive, Patrick
Bultema. He said FoodMaven,
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D E L I V E R Y
TECHNOLOGY
Business Machines Corp., Mi-
crosoft Corp. and their Chinese
counterparts—are packing their
data centers with specialized
hardware to accelerate the
training of AI software to, for
instance, translate documents.
The online giants all are ex-
ploiting an AI approach known
as deep learning that allows
software to find patterns in dig-
ital files such as imagery, re-
cordings and documents. It can
take time for such programs to
discover meaningful patterns in
training data. Internet giants
want to improve their algo-
Left to Rot
Amount of food wasted in the U.S. (2016, in millions of tons)
Homes
Farms
Supermarkets*
Restaurants
Institutional
Limited service
Manufacturers
Government
0 5
*Includes groceries and distribution centers
Source: ReFED
which has raised $2 million
since it was founded last year,
has 700 suppliers and custom-
ers in Colorado and aims to
expand nationally in the next
five years.
Whole Foods is testing the
service in its Rocky Mountain
region, listing some items on
FoodMaven’s site.
Elin Parker Ganschow,
owner of Sangres Best Grass-
Finished Beef in Colorado, is
using FoodMaven to sell more
than $15,000 of tenderloin—
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centers in the past 12 months to
roughly $1.6 billion. The growth
has driven a nearly sevenfold
increase in its stock price to
$205.32 as of Thursday’s close.
The recent optimism around
Nvidia “is what everyone in the
space has been experiencing,”
said Mike Henry, chief execu-
tive of AI-chip startup Mythic
Inc. Mr. Henry said an “explo-
sion of interest” has yielded $15
million in investments in
Mythic from venture outfits in-
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
cluding Silicon Valley firm DFJ.
Private investors have nearly
doubled their total stake in AI
hardware to $252 million this
year, according to PitchBook
Data Inc.
Nvidia’s chief rivals aren’t
standing still. Last year, Intel
bought Nervana Systems for an
undisclosed sum. The chip giant
is working with Facebook and
others to deliver Nervana-based
chips, intended to outdo Nvidia
for AI calculations, by the end
of the year.
rithms without waiting weeks Revenue in the divisions re-
to find out whether the training sponsible for server processors
panned out. and programmable chips were
The chip makers are vying to up 7% and 10%, respectively,
help them do it faster. from the prior year, Intel said in
Much of Nvidia’s 24-year his- its third-quarter earnings re-
tory was spent making high- port last month.
end graphics chips for personal Advanced Micro Devices,
computers. Lately, its wares which competes with Nvidia for
have proven faster than con- graphics in game systems, re-
ventional processors in training cently shipped its own AI-fo-
AI software. cused graphics processor line
Nvidia, which reported third- called Radeon Instinct. Baidu
quarter results Thursday that Inc. is a customer, and AMD
exceeded Wall Street’s forecasts said in its most-recent earnings
for revenue and profit, has call that other cloud providers
nearly tripled its sales to data are as well.
that they can freeze bulk items
before those dates and still
serve them fresh later.
Many big food sellers are
trying to cut waste on their
own. Kroger Co. said this sum-
mer it would eliminate food
waste at its network of super-
markets, the nation’s largest,
by 2025. In some markets,
Wal-Mart Stores Inc. sells cos-
metically imperfect potatoes
and apples for lower prices.
The nation’s largest food seller
also has agreed with other big
retailers and manufacturers to
10 15 20 25 30 introduce simpler use-by dates
million tons wasted by 2020 that will aim to re-
duce confusion that can lead
THE WALL STREET JOURNAL. consumers to throw out safe
food.
left after processing a large Large restaurant chains are
order for ground beef—that also working to cut food
she wouldn’t otherwise have waste. Food Donation Connec-
been able to market quickly tion, a Knoxville, Tenn.-based
enough. company, coordinates dona-
Manufacturers generate tions of unsold food from
best-by dates to ensure qual- companies such Darden Res-
ity; the Food and Drug Admin- taurants Inc. and Chipotle
istration says they aren’t a Mexican Grill Inc.
guide for safe use and food Darden, owner of the Olive
can safely be frozen indefi- Garden and LongHorn Steak-
nitely. Mr. Bultema said res- house chains, has donated
taurants that buy from Food- more than 100 million pounds
Maven understand that best- of food through the service
by dates are conservative, and since 2003, a spokesman said.
WSJ.com/Tech
Veteran’s
Portfolio
BY LAURA STEVENS
Amazon.com Inc. has con-
solidated its physical retail
and fast-delivery operations
under a veteran lieutenant of
Chief Executive Jeff Bezos,
said people familiar with the
matter, as it integrates its new
Whole Foods Market unit with
related businesses.
That gives Steve Kessel re-
sponsibility for Prime Now,
Amazon’s rapid-delivery oper-
ation, and AmazonFresh, its
grocery-delivery arm, in addi-
tion to Whole Foods and Ama-
zon’s physical book and conve-
nience stores, the people said.
The goal is to ease changes
Bezos lieutenant
Steve Kessel will
oversee delivery and
physical retail efforts.
across those platforms as Am-
azon tries to reinvent the way
consumers shop in stores, one
of the people said.
Mr. Kessel spent years
overseeing Amazon’s digital
strategy, including books and
music; he led the team that
developed the company’s Kin-
dle e-reader, launched roughly
a decade ago, and its Fire tab-
let in late 2011. Soon after, he
went on a sabbatical, return-
ing in 2015 and heading up an
effort to reimagine the in-
store experience.
He was placed in charge of
Whole Foods, reporting to re-
tail chief Jeff Wilke, at the
time of the $13.5 billion acqui-
sition in August, and added
Prime Now and AmazonFresh
in recent weeks, the people fa-
miliar with the matter said.
Analysts, investors and ri-
vals are watching Amazon’s ef-
forts in rapid delivery and
physical retail. Potential
changes, analysts say, include
combining supply chains of its
grocery operations and adding
fast Whole Foods deliveries.
Amazon Chief Financial Of-
ficer Brian Olsavsky hinted at
the move during a quarterly
earnings call last month. “I
think over time you’ll see
more cooperation,” he said.
Amazon has struggled in
recent years to make its gro-
cery business work. Under Mr.
Kessel, AmazonFresh was re-
cently scaled back, ending de-
livery in some ZIP Codes, ac-
cording to the people familiar
with the matter. An Amazon
spokeswoman confirmed that
service has been ended to se-
lect ZIP Codes.
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World-Class CEOs in the Rarest of Company. Each Other.

The Wall Street Journal CEO Council is an exclusive membership for chief executive officers from the world’s
largest and most influential companies collaborating on the most pressing issues in global business today.

Dennis Abboud John Forsyth James Loree Thomas Quinlan

Readerlink LLC Wellmark, Inc. Stanley Black & Decker LSC Communications, Inc.
Nicholas Akins Eric Foss Peter Lowy Karan Rai
American Electric Power Aramark Corporation Westfield Corporation ASGARD Partners
Keith Allman Simon Freakley Rob Lynch Krishnan Rajagopalan
Masco Corporation AlixPartners VSP Global Heidrick & Struggles
Mukesh Ambani Adena Friedman Elie Maalouf D. Rajkumar
Reliance Industries Limited Nasdaq, Inc. IHG Bharat Petroleum Corp Ltd.
Carl Armato Jack Fusco Kevin Mandia Nitin Rakesh
Novant Health, Inc. Cheniere Energy, Inc. FireEye, Inc. Mphasis Ltd.
Johan Aurik Ignacio Galan William Mansfield Punit Renjen
AT Kearney, Inc. Iberdrola SA MUFG Securities Americas, Inc. Deloitte
Ziv Aviram Mark Ganz Kathryn Marinello Gina Rinehart
Mobileye Cambia Health Solutions Hertz Global Holdings Hancock Prospecting Group
Mitch Barns Robert Garrett Timothy Mayopoulos Girish Rishi
Nielsen Hackensack Meridian Health Fannie Mae JDA Software
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Western & Southern Financial Group Markel Corp. Con Edison, Inc. Cisco Systems, Inc.
Dominic Barton Eli Gelman Bill McDermott Ginni Rometty
McKinsey & Company Amdocs Limited SAP SE IBM
Patrick Bass Patrick Gelsinger Karl McDonnell John Rosanvallon
thyssenkrupp North America, Inc. VMware, Inc. Strayer Education, Inc. Dassault Falcon Jet
Inga Beale Mike George Tom McGee Panu Routila
Lloyd’s of London QVC ICSC Konecranes Plc
Brendan Bechtel Eric Gernath Michael McKelvy Gisbert Rühl
Bechtel Corporation SUEZ Gilbane, Inc. KlÖckner & Co SE
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Green Plains, Inc. Air Products & Chemicals, Inc. Unum Group PwC
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Singapore Economic Development Board Brunswick Group Genworth Financial, Inc. Cravath, Swaine & Moore LLP
Marc Benioff Daniel Glaser William McMullen George Schindler
Salesforce Marsh & McLennan Companies The Kroger Co. CGI Group, Inc.
Aneel Bhusri Alex Gorsky Manoj Menda David Seaton
Workday, Inc. Johnson & Johnson RMZ Corp. Fluor Corporation
Richard Bielen CP Gurnani Fernando Mercé Jahja Setiaatmadja
Protective Life Corporation Tech Mahindra Limited Nestlé Waters, North America PT Bank Central Asia Tbk
Ståle Bjørnstad Mauricio Gutierrez Larry Merlo Charles Shaver
Cxense NRG Energy, Inc. CVS Health Axalta Coating Systems
Benjamin Breier Jim Hagedorn Chris Michalak Takumi Shibata
Kindred Healthcare, Inc. The Scotts Miracle-Gro Company Alight Solutions Nikko Asset Management
Heather Bresch John Haley Shunichi Miyanaga Keith Skeoch
Mylan Willis Towers Watson Plc Mitsubishi Heavy Industries Ltd. Standard Life
Vincent Brun Tom Hayes Matthew Moynahan Frederick Smith
Vacheron Constantin Tyson Foods, Inc. Forcepoint FedEx Corporation
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AECOM Technology Corporation United Technologies Corporation The Guardian Life Insurance Company of America Office Depot, Inc.
Gregory Cappelli Edward Heffernan Oscar Munoz Martin Sorrell
Apollo Education Group, Inc. Alliance Data Systems, Inc. United Airlines WPP plc
William Carstanjen David Holmberg Rupert Murdoch KR Sridhar
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Transnational Diversified Group Incorporated Synchrony Financial Mayo Clinic C Vijayakumar
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Mack-Cali Realty Corporation Teneo Holdings Choice Hotels Jeffrey Walker
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The Options Clearing Corporation Tenneco, Inc. CSL Behring Mark Weinberger
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Northwell Health Fortune Brands Home & Security, Inc. Walgreens Boot Alliance, Inc. Dion Weisler
HP, Inc.
Gina Drosos Daniel Knotts Yitzhak Peterburg
Signet Jewelers R.R. Donnelley & Sons Teva Pharmaceutical Industries Ltd. Elliot Weissbluth
HighTower
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HR Certifcation Institute KKR & Co LP S&P Global Jim Whitehurst
Red Hat
Richard Edelman Sarah Krevans Charles Philips
Edelman Sutter Health Infor Michael Wolf
Activate
Bilal Eksi Vinod Kumar Nicholas Pinchuk
Turkish Airlines Tata Communications Ltd. Snap-on Incorporated Mark Wrighton
Washington University in St. Louis
Hikmet Ersek Mary Laschinger Richard Plepler
The Western Union Company Veritiv Corporation Home Box Office, Inc. Jeffery Yabuki
Fiserv, Inc.
Thomas Farrell Donald Layton Anne Pramaggiore
Dominion Energy Freddie Mac ComEd Yuanqing Yang
Lenovo
Michael Farrell Claude LeBlanc Anthony Pratt
ResMed Corporation Ambac Financial Group Visy Industries Harold Yoh
Day & Zimmermann
Bradley Feldmann William Lewis Lawrence Prior
Cubic Corporation Dow Jones & Company CSRA, Inc. Xianming Zhao
ZTE Corp.
John Ferriola Jim Lico Serge Pun
Nucor Corporation Fortive SPA Myanmar
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B6 | Friday, November 10, 2017 * ***** THE WALL STREET JOURNAL.

BUSINESS & FINANCE

P&G Finds Director Search Hard China

Peltz fight highlighted
need for experience
one who both meets P&G’s crite-
ria for directors and has a back-
said it would, however, consider
adding an investor who met its
To Boost
in consumer goods,
but candidates scarce
ground in consumer products.
The company is working with
an executive-search firm and
has a few candidates in mind,
other criteria.
Stephen Yacktman, chief in-
vestment officer of Yacktman
Asset Management, a money
Foreign
BY SHARON TERLEP
she said. The lack of an industry
veteran on the board was
manager in Austin, Texas, with
a $1.3 billion P&G stake, said the Access

KAREEM ELGAZZAR/ASSOCIATED PRESS

among Mr. Peltz’s criticisms of company needs an investor on
As Procter & Gamble Co. P&G in his proxy fight. P&G said the board. “Large shareholders
executives traveled the U.S., more consumer-products expe- would be the first place you’d BY CHAO DENG
asking shareholders to vote rience on the board was “the start if you were to formulate a
against activist investor Nel- No. 1 point” made by sharehold- new board,” Mr. Yacktman said BEIJING—China will give
son Peltz’s bid to join their ers leading up to the Oct. 10 in an interview before the vote. greater access to foreign in-
board, one request kept com- shareholder vote. “That’s a voice that’s just not vestors in the country’s finan-
ing up: Add a director with ex- P&G has said it defeated Mr. represented right now.” cial sector, Zhu Guangyao, a
perience in consumer goods. Peltz by 6.15 million votes, In addition to consumer- vice finance minister,
It is proving to be a sur- about 0.2% of its shares out- goods experience, P&G is seek- said Friday.
prisingly difficult demand to Nelson Peltz, right, arriving for P&G shareholers meeting. standing, based on a prelimi- ing candidates with back- Mr. Zhu said in a briefing
fulfill, even for a consumer- nary tally. An official count is grounds in e-commerce and that China is moving to allow
goods company. Complicating the search is said. “Taking into account all expected to be complete as soon digital technology, as well as fe- foreign companies to hold 51%
P&G, still awaiting an official that many executives with con- the conflicts, it starts to whittle as next week. A Trian represen- male and minority candidates. of domestic securities, funds-
vote count in its apparent vic- sumer-products experience ei- down the list quickly.” tative declined to comment. Mr. Intuit Inc. co-founder Scott management and futures
tory over Mr. Peltz’s Trian Fund ther work for a competitor or The challenge is both a con- Peltz argued that as a major in- Cook, on the board since 2000, firms. The previous rules cap
Management, said this week are P&G veterans, which the sequence of P&G’s vast reach in vestor, he deserved consider- will step down next year when foreign investment in the sec-
that it is doubling its efforts to company is looking to avoid, the global consumer-products ation for a board seat. he reaches P&G’s 18-year term tor at 49%.
find someone who fits the bill. P&G’s general counsel, Deborah industry, and of consolidation Some other investors echoed limit. The former president of The 51% cap will be re-
It is seeking at least two new di- Majoras, said. that has shrunken the number that sentiment, but P&G decided Mexico, Ernesto Zedillo, on the moved three years after the
rectors to fill seats coming open “That is harder to do than of players. Ms. Majoras said the against specifically seeking out board since 2001, is also ap- new rules take effect, Mr. Zhu
in the next two years. most people think,” Ms. Majoras company expects to find some- a shareholder. The company proaching the limit. said, which he said would be
“very quickly.”
China also will remove caps

Time Plays Catch-Up as Print Sales Erode

for foreign investors’ stakes in
Chinese banks. Under current
rules, a single foreign investor
can hold as much as a 20%
BY CARA LOMBARDO stake in a Chinese bank, and a
group of foreign investors can
Time Inc.’s revenue slid 9% own up to 25% in a single
in its latest quarter as sales of bank.
print ads and magazine sub- Mr. Zhu said the govern-
scriptions continued to shrink ment also will allow 51% for-
and digital ad sales edged up eign ownership in Chinese life-
only slightly. insurance companies in three
The company said Thursday years and lift all restrictions
its third-quarter revenue for foreign investment in the
dropped to $679 million from sector in five years.
$750 million a year ago. That is Restrictions on foreign
less than the $693 million ana- ownership in China’s financial
lysts surveyed by Thomson industry have so far largely
Reuters expected. excluded foreigners from lu-
Time shares rose 9.5% on crative businesses such as
Thursday. trading in Chinese stocks and
The Sports Illustrated and bonds and managing money
People publisher is in the mid- for wealthy Chinese clients.
dle of a turnaround effort that China’s central-bank gover-
has involved cuts to its work- nor, Zhou Xiaochuan, indicated
force, printing schedule and in June that Beijing was work-
stable of publications. It has ing on plans to allow foreign
been overhauling its business firms greater access to the
model to focus on core brands country’s financial sector,
and expand digital offerings. which is now dominated by
Perhaps in a nod to its aspi- state-owned firms. Mr. Zhou
BEN GABBE/GETTY IMAGES FOR TIME

rations to be more diversified, said at a forum at the time

Time began providing a mea- that too much protection for
sure that identifies revenue by domestic institutions would
source. Magazine-related reve- weaken the industry and lead
nues, which fell 14% from a to financial instability.
year ago, represented 64% of So far, HSBC Holdings PLC
the company’s revenue in its has been the only foreign bank
third quarter. That is down that has won regulatory ap-
from 68% a year ago. Digital proval for a majority-owned
products, including ads, sub- Time’s revenue slid 9% in the latest quarter. The publisher is shifting its focus toward core brands and expanding digital offerings. securities joint venture in
scriptions and branded con- China. It won the approval in
tent, accounted for 24% and keen on expanding. This month, circulation and print frequency stake in Essence and its entire Excluding certain items, the June, which since has raised
grew slightly. it struck a deal with Twitter of some of its biggest titles be- U.K. portfolio. company reported a $37 million hopes among other foreign in-
The remaining revenue came Inc. to share advertising reve- ginning next year, a move that Overall for the quarter, Time profit and earnings of 36 cents vestment banks.
from so-called brand extensions nue from PeopleTV videos that peers such as Condé Nast have reported a $13 million profit, or a share, up from 31 cents in the
and other sources, including will appear on the social net- also taken. Time has said it 14 cents a share, compared with year-earlier period. Analysts
events and TV licensing, which work beginning Nov. 20. wants to sell publications in- a loss of $112 million, or $1.13 a had expected adjusted earnings
is a revenue stream Time is Meanwhile, Time will cut the cluding Sunset, Golf, a majority share, a year ago. per share of 29 cents. Sofi Reins In
Growth Plans
News Corp Revenue Rises 5%, Topping Estimates Financial-technology
startup Social Finance Inc. is
ditching some of its most am-
bitious initiatives after a
BY LUKAS I. ALPERT charges, the company re- was driven by a 3% increase in said News Corp Chief Execu- million) at News Corp Australia workplace scandal prompted
corded adjusted earnings of 7 circulation revenue—including tive Robert Thomson. in this fiscal year. the resignation of Mike Cag-
News Corp reported a 5% cents a share. an 11% boost in circulation The Wall Street Journal had Revenue in News Corp’s ney as chief executive two
increase in revenue in the News Corp—which pub- revenue at Dow Jones. Adver- 1.318 million digital subscrib- book-publishing segment rose months ago.
most recent quarter, with ev- lishes The Wall Street Journal, tising revenue for the entire ers at the end of September, 3% to $401 million, driven by SoFi is “pulling back” on
ery segment of the company the New York Post and major up 48,000 from the end of strong sales of J.D. Vance’s plans to expand into foreign
posting gains driven by posi- newspapers in the U.K. and June. But advertising revenue “Hillbilly Elegy” and Mark markets and asset manage-
tive currency fluctuations, ac- Australia—reported revenue of at Dow Jones, which publishes Manson’s “The Subtle Art of ment from its original busi-
quisitions in Australia and the $2.06 billion for the fiscal first
Revenue at the news the Journal, fell 10% in the Not Giving a F*ck.” ness of lending to young, high-
U.K. and continued growth of quarter. and information- quarter, the company said. The digital real-estate busi- income U.S. consumers,
its digital real-estate business. The results topped esti- At News UK, which pub- ness reported a 20% gain in interim CEO Tom Hutton
For the quarter ended in mates from analysts polled by
services business lishes the Times of London, revenue to $271 million. wrote in a letter to investors
September, the company re- Thomson Reuters, who had increased by 2%. Sunday Times and the Sun, ad- The company nearly dou- that was reviewed by The Wall
ported net income available to forecast adjusted earnings of 1 vertising revenue fell 9% in bled its earnings before in- Street Journal. The company’s
shareholders of $68 million, or cent a share on $1.98 billion in the quarter and circulation come, taxes, depreciation and ambitions stalled in Septem-
12 cents a share, compared revenue. revenue declined 5%, largely amortization to $249 million ber when Mr. Cagney abruptly
with a net loss of $15 million, The news and information- news unit ended the quarter due to a drop in sales of the compared with $130 million, stepped down following alle-
or 3 cents a share, in the same services business, which ac- flat, following several quarters Sun. due in part to a one-time $46 gations from former employ-
period a year earlier. counts for just under two- of declines. News Corp Chief Financial million benefit from the rever- ees that managers at SoFi en-
Excluding expenses related thirds of the company’s top “We have reason for opti- Officer Susan Panuccio said the sal of certain previously ac- gaged in or tolerated the
to the phone-hacking scandal line, reported a 2% increase in mism about the future of our company was targeting cost re- crued net liabilities related to mistreatment of women in the
in the U.K. and restructuring revenue to $1.24 billion. That premium media businesses,” ductions of A$40 million ($31 employment taxes in the U.K. workplace.—Peter Rudegeair

EQUIFAX quarter, Equifax disclosed its
systems had been breached,
Profit Slides 27% which resulted in personal infor-
In Wake of Hack mation, including names, birth
dates and Social Security num-
Equifax Inc. said third-quarter bers, of 145.5 million U.S. con-
earnings tumbled from a year sumers being compromised.
ago as costs mounted in the That prompted a series of fed-
wake of a massive hack at the eral and state investigations and
company that led customers to class-action lawsuits. Several se-
take business elsewhere. nior executives, including its for-
The credit-reporting firm re- mer chief executive, Richard
ported net income of $96.3 mil- Smith, left the company.
lion for the third quarter, down The earnings report confirms
27% from a year earlier. Earnings that the hack announced in Sep-
FINANCE WATCH
$307.7 million. PIMCO
In its filing Thursday, the
company said it believes that
Former CEO Hodge
certain of its “customers have To Retire Next Month
determined to defer new con-
tracts or projects unless and un- Pacific Investment Manage-
til we can provide assurances re- ment Co.’s Doug Hodge, the
garding our ability to prevent firm’s former chief executive
unauthorized access to our sys- who took the reins in the wake
tems and the data we maintain.” of star investor Bill Gross’s 2014
The company added that “many” exit, said he would retire from
of its customers “are requiring the bond manager in December.
security audits of our systems Mr. Hodge stepped down as
and any negative results of such CEO last year and has since
audits may cause the loss of served as a senior adviser.
GALIT RODAN/BLOOMBERG NEWS

per share were 79 cents, down tember undermined confidence customers.” Mr. Hodge worked at Pimco,
28% from the third quarter of in the company for Equifax’s The Atlanta-based company a unit of Allianz SE, for 28
2016. Revenue came in at lender clients. Revenue for its also said that it has incurred sig- years.
$834.8 million, up 4% from the U.S. Information Solutions divi- nificant costs following the He was named CEO in
year prior on a reported basis sion, which sells lenders and breach as it works on improving 2014, succeeding Mohamed El-
and 3% on a local-currency basis. other businesses consumer in- its data security and that it ex- Erian. Tensions between Mr.
Shares fell 3% in after-hours formation used for purposes pects to “incur additional signifi- Gross and his colleagues intensi-
trading before paring most of that include underwriting loan cant costs” as it takes further fied that year and by September,
the losses. applicants, among other services, steps to prevent future hacks. Pimco’s former chief executive, Doug Hodge, is retiring from the Mr. Gross was out.
In the last month of the declined 3% from a year prior to —AnnaMaria Andriotis firm in December. He has been serving as an adviser. —Justin Baer
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, November 10, 2017 | B7

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23461.94 t 101.42, or 0.43% Trailing P/E ratio 21.21 20.57 2584.62 t 9.76, or 0.38% Trailing P/E ratio 24.33 23.02 6750.05 t 39.07, or 0.58% Trailing P/E ratio * 16.10 23.75
High, low, open and close for each P/E estimate * 19.35 16.91 High, low, open and close for each P/E estimate * 19.39 17.78 High, low, open and close for each P/E estimate * 21.55 18.79
trading day of the past three months. Dividend yield 2.07 2.51 trading day of the past three months. Dividend yield 1.92 2.20 trading day of the past three months. Dividend yield 1.05 1.25
All-time high 23563.36, 11/08/17 All-time high: 2594.38, 11/08/17 All-time high: 6789.12, 11/08/17

Current divisor 0.14523396877348

23500 2580 6750
Session high
DOWN UP
t

Session open Close 23000 2550 6650

Close Open
t

22500 2520 6550

Session low

22000 2490 6450

65-day moving average

21500 2460 6350

65-day moving average 65-day moving average

21000 2430 6250

Bars measure the point change from session's open

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

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

Latest 52-Week % chg Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. Volume, Advancers, Decliners
High Low Close Net chg % chg High Low % chg YTD 3-yr. ann. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic NYSE NYSE Amer.
Dow Jones trading services, securities dealers and regional exchanges. Minimum Total volume* 880,048,459 17,368,370
Industrial Average 23516.74 23310.02 23461.94 -101.42 -0.43 23563.36 18807.88 24.7 18.7 10.1 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 397,185,853 6,900,694
Transportation Avg 9604.91 9495.89 9517.50 -113.27 -1.18 10038.13 8556.60 11.2 5.2 2.1 Most-active issues in late trading Decl. volume* 468,067,525 10,167,393
Utility Average 761.03 756.39 759.47 -0.12 -0.02 759.59 625.44 20.5 15.1 8.0 Volume After Hours Issues traded 3,062 328
Company Symbol (000) Last Net chg % chg High Low Advances 1,112 154
Total Stock Market 26755.48 26532.64 26719.10 -106.55 -0.40 26830.60 22412.62 19.2 14.8 8.1
iShares Gold Trust IAU 6,512.0 12.39 0.04 0.32 12.39 12.34 Declines 1,822 156
Barron's 400 681.04 672.91 677.94 -4.79 -0.70 691.56 557.37 21.6 12.7 8.0
VanEck Vectors Gold Miner GDX 4,625.4 22.81 ... unch. 22.85 22.79 Unchanged 128 18
Nasdaq Stock Market Principal US Mega-Cap USMC 4,050.0 25.25 0.03 0.12 25.25 25.25 New highs 73 5
Nasdaq Composite 6758.93 6687.28 6750.05 -39.07 -0.58 6789.12 5208.80 29.6 25.4 13.4 NVIDIA NVDA 4,001.5 210.48 5.16 2.51 211.97 201.57 New lows 70 11
6315.16 6248.29 Closing tick 49 28
Nasdaq 100 6312.21 -33.60 -0.53 6345.81 4702.04 33.0 29.8 14.9 SPDR S&P 500 SPY 3,962.9 258.25 0.08 0.03 258.44 257.72
Closing Arms† 0.71 1.12
Cleveland-Cliffs CLF 3,503.1 6.05 0.01 0.17 6.10 6.03
Standard & Poor's Block trades* 6,675 140
-0.38
Disney DIS 2,814.9 103.78 1.10 1.07 104.65 97.77
500 Index 2586.50 2566.33 2584.62 -9.76 2594.38 2164.20 19.2 15.4 8.4 Nasdaq NYSE Arca
PwrShrs QQQ Tr Series 1 QQQ 2,783.2 153.74 0.05 0.03 153.86 153.24
MidCap 400 1833.22 1814.98 1826.20 -9.89 -0.54 1843.36 1547.63 18.0 10.0 8.5 Total volume*2,207,967,004 295,004,396
SmallCap 600 897.54 886.07 893.16 -3.82 -0.43 918.72 762.35 17.2 6.6 9.6 Percentage gainers… Adv. volume* 821,371,794 98,616,641
Decl. volume*1,349,343,396 195,324,899
Other Indexes Omeros Corp OMER 67.9 16.00 1.91 13.56 16.20 14.08
Issues traded 3,067 1,326
Russell 2000 1481.62 1463.49 1475.02 -6.71 -0.45 1512.09 1251.61 17.8 8.7 7.9 Hertz Global Holdings HTZ 1,014.9 22.02 2.01 10.04 23.17 19.88
Advances 1,114 324
NYSE Composite 12350.70 12268.07 12339.66 -45.06 -0.36 12430.52 10652.24 15.5 11.6 4.3 Immunomedics IMMU 218.1 11.40 0.96 9.20 11.55 10.44 Declines 1,809 980
Value Line 539.39 534.66 537.90 -1.49 -0.28 545.98 480.17 12.0 6.3 2.7 Ultra Petroleum UPL 11.8 9.08 0.43 4.97 9.08 8.65 Unchanged 144 22
NYSE Arca Biotech 4136.61 4072.34 4114.44 -30.30 -0.73 4304.77 3075.02 21.5 33.8 7.9
Aptevo Therapeutics APVO 6.6 3.18 0.14 4.61 3.18 3.09 New highs 68 30
New lows 92 18
NYSE Arca Pharma 536.40 533.57 535.86 -3.09 -0.57 560.52 463.78 7.3 11.3 0.5 ...And losers
Closing tick 354 45
KBW Bank 98.83 97.05 97.99 -0.78 -0.79 102.31 81.85 19.7 6.8 10.3 Kona Grill KONA 15.2 2.10 -0.56 -20.94 2.65 2.05 Closing Arms† 1.01 0.65
PHLX§ Gold/Silver 82.51 81.53 81.88 -0.53 -0.64 96.72 73.03 -2.3 3.8 5.9 Puma Biotechnology PBYI 256.2 112.25 -14.95 -11.75 128.75 110.65 Block trades* 7,799 1,530
PHLX§ Oil Service 142.69 140.20 142.21 1.09 0.77 192.66 117.79 -10.6 -22.6 -17.0 Tutor Perini TPC 15.1 22.55 -2.75 -10.87 25.40 22.50 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1306.45 1278.69 1294.66 -26.47 -2.00 1321.13 806.09 60.6 42.8 26.6 Trade Desk Cl A TTD 488.9 53.14 -6.14 -10.36 59.28 50.00 †(TRIN) A comparison of the number of advancing and declining
12.19 9.79 0.72 16.04 9.14 -28.8 -25.2 issues with the volume of shares rising and falling. An
CBOE Volatility 10.50 7.36 -7.2 Quantum Corp QTM 24.0 4.40 -0.50 -10.20 4.93 4.30 Arms of less than 1 indicates buying demand; above 1

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

International Stock Indexes Percentage Gainers... Percentage Losers

Latest YTD
Region/Country Index Close Net chg % chg % chg Latest Session 52-Week Latest Session 52-Week
Company Symbol Close Net chg % chg High Low % chg Company Symbol Close Net chg % chg High Low % chg
World The Global Dow 2968.94 –15.77 –0.53 17.3 Otonomy OTIC 5.13 2.33 83.04 21.15 2.80 -69.9 Willbros Group WG 1.51 -1.27 -45.68 3.84 1.45 -27.1
DJ Global Index 385.40 –1.49 –0.39 18.2 Roku Cl A ROKU 29.19 10.35 54.94 29.80 15.75 ... Sequential Brands Group SQBG 1.45 -0.92 -38.82 6.15 1.44 -70.0
DJ Global ex U.S. 259.95 –0.97 –0.37 21.5 Sage Therapeutics SAGE 96.65 33.99 54.25 96.99 44.55 88.1 Kingtone Wirelessinfo ADR KONE 3.58 -2.01 -35.96 8.00 2.63 -15.0
Americas DJ Americas 621.18 –2.42 –0.39 15.0 magicJack VocalTec CALL 8.33 2.68 47.35 8.90 5.55 28.1 KBS Fashion Group KBSF 5.45 -2.77 -33.70 18.00 1.41 -4.4
Brazil Sao Paulo Bovespa 72930.69 –1432.44 –1.93 21.1 Bristow Group BRS 13.57 4.17 44.36 21.88 6.21 6.3 Meet Group MEET 2.34 -1.11 -32.17 6.45 2.30 -52.0
Canada S&P/TSX Comp 16082.09 –23.26 –0.14 5.2 Yulong Eco-Materials YECO 4.16 1.06 34.19 ... ... ... Eastman Kodak KODK 3.70 -1.50 -28.85 17.30 3.58 -74.8
Mexico S&P/BMV IPC 48713.51 –122.18 –0.25 6.7 Overstock.com OSTK 52.40 12.30 30.67 52.95 13.75 217.6 INC Research Hldgs Cl A INCR 41.15 -16.35 -28.43 61.10 40.05 -17.8
Chile Santiago IPSA 4128.89 –31.67 –0.76 28.1 Nature's Sunshine NATR 11.95 2.75 29.89 15.35 8.40 -14.0 Vista Outdoor VSTO 13.25 -5.18 -28.11 41.29 12.36 -65.1
Collegium Pharmaceutical COLL 12.71 2.68 26.72 18.02 7.37 -24.5 SenesTech SNES 2.03 -0.77 -27.50 10.69 1.50 ...
EMEA Stoxx Europe 600 390.07 –4.38 –1.11 7.9
PRA Group PRAA 34.30 6.40 22.94 42.70 25.72 11.7 Infinera INFN 6.37 -2.35 -26.92 12.50 6.34 -23.6
Eurozone Euro Stoxx 392.63 –4.36 –1.10 12.1
Belgium Bel-20 4043.49 –42.00 –1.03 12.1 CynergisTek CTEK 3.40 0.62 22.30 6.72 2.28 38.2 Alliqua BioMedical ALQA 2.27 -0.78 -25.57 8.48 2.07 -63.4
France CAC 40 5407.75 –63.68 –1.16 11.2 Party City Holdco PRTY 11.70 1.90 19.39 17.70 9.50 -19.9 Maiden Holdings MHLD 6.58 -1.83 -21.73 18.95 6.25 -56.0
Germany DAX 13182.56 –199.86 –1.49 14.8 SolarEdge Technologies SEDG 38.80 6.30 19.38 39.00 11.35 179.1 Fonar Corp FONR 25.65 -6.95 -21.32 33.90 17.20 33.9
Israel Tel Aviv 1417.35 –1.79 –0.13 –3.6 RLJ Entertainment RLJE 3.91 0.60 18.13 4.61 1.09 137.0 Ramaco Resources METC 4.76 -1.24 -20.67 14.78 4.61 ...
22641.31 17.7 Houston Wire Cable HWCC 6.15 0.90 17.14 8.05 4.70 4.2 Chefs' Warehouse CHEF 16.60 -3.75 -18.43 21.90 11.80 31.7
Italy FTSE MIB –189.99 –0.83
Netherlands AEX 550.37 –4.40 –0.79 13.9
Russia RTS Index 1161.38 11.02 0.96 0.8 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10141.10 –87.60 –0.86 8.4
Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 584.84 –7.60 –1.28 9.4 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9177.82 –88.01 –0.95 11.7
Bank of America BAC 94,126 46.8 26.49 -1.12 27.98 18.25 magicJack VocalTec CALL 5,577 6826 8.33 47.35 8.90 5.55
U.K. FTSE 100 7484.10 –45.62 –0.61 4.8
Finl Select Sector SPDR XLF 93,813 82.6 26.16 -0.34 26.93 21.08 Cadence Bancorp CADE 3,948 4014 22.14 -3.74 25.49 20.00
Asia-Pacific SPDR S&P 500 SPY 90,907 40.9 258.17 -0.36 259.35 215.22 Kingtone Wirelessinfo ADR KONE 1,032 3250 3.58 -35.96 8.00 2.63
Australia S&P/ASX 200 6049.40 33.10 0.55 6.8 Advanced Micro Devices AMD 75,486 29.1 11.12 -5.04 15.65 6.22 iSh iBonds Mar 2020 Corp IBDC 230 1719 26.19 0.08 26.40 25.90
China Shanghai Composite 3427.79 12.33 0.36 10.4 iPath S&P 500 VIX ST Fut VXX 70,094 121.0 34.00 1.40 133.08 33.11 WisTree Jpn Financials DXJF 448 1565 24.98 -1.61 25.84 20.73
Hong Kong Hang Seng 29136.57 228.97 0.79 32.4 AT&T T 69,016 126.9 34.00 1.67 43.03 32.55 James River Group Hldgs JRVR 2,037 1494 38.92 -6.69 46.20 37.26
India S&P BSE Sensex 33250.93 32.12 0.10 24.9 ProSharesUltVIXST UVXY 68,731 144.2 15.36 2.61 302.20 14.56 Flex STOXX Glb ESG Impact ESGG 84 1405 92.35 -0.22 93.10 75.73
Japan Nikkei Stock Avg 22868.71 –45.11 –0.20 19.6 Macy's Inc M 59,584 423.6 19.50 10.98 45.41 17.41 KBS Fashion Group KBSF 1,838 1276 5.45 -33.70 18.00 1.41
Singapore Straits Times 3423.91 2.66 0.08 18.9 Snap SNAP 51,532 73.0 12.38 -4.11 29.44 11.28 First Tr Tech AlphaDEX FXL 1,722 1205 51.62 -1.15 52.31 35.82
South Korea Kospi 2550.57 –1.83 –0.07 25.9 General Electric GE 49,759 -12.1 19.99 -0.65 32.38 19.63 arGEN-X ADR ARGX 312 1204 22.72 -2.13 27.25 17.33
Taiwan Weighted 10743.27 –75.72 –0.70 16.1 * Volumes of 100,000 shares or more are rounded to the nearest thousand * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
Sources: SIX Financial Information; WSJ Market Data Group 5,000 shares =Has traded fewer than 65 days

CREDIT MARKETS & CURRENCIES Currencies

U.S.-dollar foreign-exchange rates in late New York trading
Consumer Rates and Returns to Investor Benchmark
Treasury Yields
yield curve Forex Race US$vs, US$vs,
andtoRates
Yield maturity of current bills, Yen, euro vs. dollar; dollar vs. Country/currency
Thurs YTDchg
in US$ per US$ (%) Country/currency
Thurs YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .03021 33.100 –7.6
A consumer rate against its Home Equity Vietnam dong .00004403 22713 –0.3
3.75% Argentina peso .0571 17.5246 10.4
benchmark over the past year 10% Brazil real .3068 3.2590 0.1 Europe
Bankrate.com avg†: 5.06%
3.00 WSJ Dollar index Canada dollar .7877 1.2695 –5.6 Czech Rep. koruna .04560 21.930 –14.6
WaterStone Bank, SSB 1.95% 5 s s
.001585 630.80 .1565 6.3906 –9.6
Euro Chile peso –5.8 Denmark krone
Home equity loan 6.00% Wauwatosa, WI 414-258-5880 Thursday .0003323 3009.48 0.2 1.1643 .8589 –9.6
2.25 0 Colombia peso Euro area euro
t Cambridge Savings Bank 2.99% t Ecuador US dollar 1 1 unch Hungary forint .003736 267.70 –9.0
4.50 1.50 Mexico peso .0523 19.1089 –7.8 Iceland krona .009639 103.75 –8.2
Cambridge, MA 888-418-5626 –5
t

t Peru new sol .3084 3.243 –3.3 Norway krone .1229 8.1378 –5.9
3.00 City National Bank of West Virginia 2.99% One year ago 0.75 –10 Uruguay peso .03421 29.2300 –0.4 Poland zloty .2749 3.6374 –13.1
Prime rate sYen
Charleston, WV 304-925-6611 Venezuela b. fuerte .090099 11.0990 11.0 Russia ruble .01684 59.397 –3.1
1.50 0.00 –15
Third Federal S&LA 3.24% Asia-Pacific Sweden krona .1194 8.3754 –8.0
1 3 6 1 2 3 5 710 30 2017 Switzerland franc 1.0049 .9951 –2.3
Cleveland, OH 888-844-7333 Australian dollar .7666 1.3045 –6.1
0.00 month(s) years Turkey lira .2582 3.8724 9.9
Dollar Bank, a Federal Savings Bank 3.74% China yuan .1506 6.6410 –4.4
D J F MAM J J A S O N maturity Ukraine hryvnia .0375 26.6505 –1.6
Hong Kong dollar .1282 7.8000 0.6
2017 Pittsburgh, PA 800-828-5527 UK pound 1.3137 .7612 –6.0
India rupee .01535 65.155 –4.1
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000739 13528 0.02
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008825 113.32 –3.1 Bahrain dinar 2.6525 .3770 –0.05
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts) Corporate Borrowing Rates and Yields Kazakhstan tenge .003000 333.34 –0.1 Egypt pound .0566 17.6565 –2.6
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Yield (%) 52-Week Total Return (%) Macau pataca .1244 8.0383 1.5 Israel shekel .2843 3.5179 –8.6
Bond total return index Close Last Week ago High Low 52-wk 3-yr Malaysia ringgit .2385 4.1923 –6.5 Kuwait dinar 3.3019 .3029 –0.9
Prime rate* 4.25 4.25 3.50 l 4.25 1.00
New Zealand dollar .6954 1.4380 –0.4 Oman sul rial 2.5974 .3850 0.01
Libor, 3-month 1.41 1.39 0.90 l 1.41 1.18 Treasury, Ryan ALM 1462.820 2.122 2.117 2.237 1.751 1.184 2.031 Pakistan rupee .00952 105.050 0.6 Qatar rial .2611 3.830 5.2
Money market, annual yield 0.32 0.32 0.26 l 0.36 -0.10 10-yr Treasury, Ryan ALM 1735.635 2.333 2.347 2.609 2.058 0.332 1.849 Philippines peso .0195 51.274 3.4 Saudi Arabia riyal .2666 3.7515 0.02
Five-year CD, annual yield 1.49 1.47 1.19 l 1.49 -0.06 DJ Corporate 378.475 3.112 3.047 3.390 2.879 4.060 3.838 Singapore dollar .7356 1.3594 –6.1 South Africa rand .0701 14.2681 4.2
30-year mortgage, fixed† 3.85 3.95 3.73 l 4.33 -0.17 South Korea won .0008926 1120.27 –7.3
Aggregate, Barclays Capital 1942.000 2.610 2.600 2.790 2.340 2.144 2.413 Sri Lanka rupee .0065104 153.60 3.5 Close Net Chg % Chg YTD%Chg
15-year mortgage, fixed† 3.22 3.24 2.94 l 3.50 0.02
High Yield 100, Merrill Lynch 2837.836 5.560 5.233 6.448 4.948 7.967 3.787 Taiwan dollar .03310 30.207 –6.9 WSJ Dollar Index 87.63 –0.21–0.24 –5.71
Jumbo mortgages, $424,100-plus† 4.21 4.31 4.21 l 4.88 -0.09
Fixed-Rate MBS, Barclays 1987.080 2.840 2.850 3.120 2.550 1.148 2.084 Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.45 3.48 3.20 l 4.03 -0.16
Muni Master, Merrill 523.398 1.954 1.991 2.516 1.736 3.130 2.854
New-car loan, 48-month 3.02 3.01 2.85 l 3.36 -0.22
HELOC, $30,000 5.06 5.19 4.57 l 5.30 0.70 EMBI Global, J.P. Morgan n.a. n.a. 5.431 n.a. n.a. n.a. n.a. COMMODITIES
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Commodities Thursday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Net chg % Chg High Low % Chg % chg

Notice to Readers DJ Commodity 615.75 0.01 0.00 616.46 532.01 14.00 8.55
Get real-time U.S. stock quotes and track most-active 191.87 -0.01 195.14 4.66 -0.33

WSJ
TR/CC CRB Index -0.02 166.50
Due to a technical problem at the source, data for Global
stocks, new highs/lows and mutual funds. Plus, government Bonds (US issue) and Foreign exchange tables are Crude oil, $ per barrel 57.17 0.36 0.63 57.35 42.53 28.01 6.42
deeper money-flows data and email delivery of key Natural gas, $/MMBtu 3.200 0.025 0.79 3.93 2.56 21.58 -14.07
.COM as of 12:18 pm EST.
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1285.60 4.00 0.31 1346.00 1127.80 1.59 11.79
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B8 | Friday, November 10, 2017 THE WALL STREET JOURNAL.

COMMODITIES WSJ.com/commodities

Futures Contracts Open

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

Metal & Petroleum Futures Milk (CME)-200,000 lbs., cents per lb. Currency Futures
Agriculture Futures Nov 16.60 16.85 16.57 16.74 .24 4,416
Contract Open Dec 15.36 t
15.83 15.17 15.76 .48 4,445 Japanese Yen (CME)-¥12,500,000; $ per 100¥
Open High hi lo Low Settle Chg interest Corn (CBT)-5,000 bu.; cents per bu. Cocoa (ICE-US)-10 metric tons; $ per ton. Nov .8782 .8840 .8769 .8835 .0044 2,345
Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 347.50 349.75 t 340.75 341.50 –6.75 671,502 Dec .8797 .8856 .8780 .8848 .0045 278,145
Dec 2,219 2,223 2,179 2,198 –18 32,939
Nov 3.0775 3.0855 3.0770 3.0800 –0.0130 620 March'18 360.50 362.50 t 354.00 354.75 –6.50 436,908
March'18 2,196 2,198 2,169 2,185 –3 131,679
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Dec 3.0980 3.1075 3.0585 3.0860 –0.0135 131,992 Oats (CBT)-5,000 bu.; cents per bu. Nov .7855 .7886 .7855 .7891 .0032 1,254
Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec .7857 .7897 .7852 .7894 .0033 142,938
Gold (CMX)-100 troy oz.; $ per troy oz. Dec 268.75 276.75 267.00 273.00 3.50 4,223 Dec 125.55 127.40 125.00 126.40 .65 84,887
Nov 1279.70 1286.90 1279.70 1285.60 4.00 77 March'18 274.75 281.00 273.00 279.25 3.50 3,148 British Pound (CME)-£62,500; $ per £
March'18 128.90 130.75 128.45 129.80 .60 80,807 Nov 1.3126 1.3155 1.3090 1.3158 .0044 903
Dec 1282.10 1289.50 1280.50 1287.50 3.80 336,947 Soybeans (CBT)-5,000 bu.; cents per bu. Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Dec 1.3127 1.3179 1.3098 1.3170 .0044 172,125
Feb'18 1286.40 1293.80 1284.80 1291.80 3.80 131,069 Nov 988.00 994.50 974.00 975.25 –12.75 2,541 14.83 14.94 14.74 14.88 .04 405,792
April 1289.70 1297.70 1289.70 1296.00 3.80 19,239
March Swiss Franc (CME)-CHF 125,000; $ per CHF
Jan'18 998.25 1008.25 983.50 985.00 –13.50 324,879 May 14.89 14.96 14.82 14.90 –.01 139,005 Dec 1.0025 1.0101 1.0005 1.0091 .0068 80,086
June 1295.10 1301.90 1294.10 1300.30 3.90 16,992 Soybean Meal (CBT)-100 tons; $ per ton.
Dec 1307.70 1314.00 1307.70 1313.20 4.20 11,101
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March'18 1.0095 1.0171 1.0076 1.0162 .0069 227
Dec 315.20 321.90 311.40 311.80 –3.40 103,081 March 27.33 27.33 27.33 27.33 .11 2,800 Australian Dollar (CME)-AUD 100,000; $ per AUD
Palladium (NYM) - 50 troy oz.; $ per troy oz. Jan'18 317.30 323.70 313.50 313.90 –3.50 102,800 May 27.25 27.25 27.25 27.25 .15 1,808 Nov .7665 .7692 .7650 .7681 .0005 1,353
Dec 1013.90 1023.25 s 1001.85 1004.40 –11.40 30,069 .7674 .7690 .7647 .7679 .0005 119,662
Soybean Oil (CBT)-60,000 lbs.; cents per lb. Cotton (ICE-US)-50,000 lbs.; cents per lb. Dec
March'18 1007.15 1015.20 s 995.10 997.50 –10.65 6,332 Jan'18 .7682 .7688 .7646 .7677 .0005 523
Dec 35.38 35.44 35.05 35.14 –.23 124,677 Dec 68.78 69.48 68.18 68.29 –.34 75,894
June 999.30 1002.45 s 990.60 990.05 –8.60 293 Feb .7668 .7687 .7645 .7676 .0005 441
Jan'18 35.53 35.61 35.22 35.29 –.24 115,160 March'18 68.86 69.67 68.34 68.54 –.32 109,309
Platinum (NYM)-50 troy oz.; $ per troy oz. March .7657 .7684 .7643 .7675 .0005 955
Nov 928.30 928.70 928.30 937.30 2.70 4 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Orange Juice (ICE-US)-15,000 lbs.; cents per lb. June .7673 .7673 .7642 .7672 .0005 244
933.70 942.30 932.30 940.60 2.70 71,075 Nov ... ... ... 1117.50 3.50 56 Nov 161.00 161.00 161.00 161.35 .05 39
Jan'18 Mexican Peso (CME)-MXN 500,000; $ per MXN
Silver (CMX)-5,000 troy oz.; $ per troy oz. Jan'18 1141.50 1150.00 1134.50 1143.50 2.50 9,410 Jan'18 160.85 161.20 156.65 160.85 .10 6,130 Dec .05200 .05225 .05183 .05215 .00019 175,157
Nov 16.930 16.930 16.930 16.943 –0.163 7 Wheat (CBT)-5,000 bu.; cents per bu. March'18 .05126 .05145 .05108 .05137 .00019 569
Dec 17.060 17.145 16.910 16.975 –0.163 128,489 Dec 425.75 432.00 423.75 429.00 2.25 232,148 Interest Rate Futures Euro (CME)-€125,000; $ per €
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. March'18 442.75 448.00 439.75 445.00 1.25 163,574 Nov 1.1597 1.1656 1.1588 1.1649 .0051 5,259
Dec 56.85 57.53 56.69 57.17 0.36 424,295 Wheat (KC)-5,000 bu.; cents per bu. Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Dec 1.1618 1.1678 1.1609 1.1670 .0051 429,667
Jan'18 57.07 57.76 56.92 57.39 0.34 452,318 Dec 154-050 154-140 153-180 153-280 –15.0 758,380
Dec 426.25 432.75 423.25 429.00 1.50 128,582
Feb 57.25 57.93 57.11 57.56 0.34 168,497 March'18 152-300 153-090 152-150 152-230 –15.0 18,336 Index Futures
March'18 443.00 449.50 440.00 446.00 1.00 111,679
March 57.37 58.00 57.21 57.65 0.33 243,636 Wheat (MPLS)-5,000 bu.; cents per bu. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec 125-055 125-105 125-015 125-060 –2.0 3,140,058 Mini DJ Industrial Average (CBT)-$5 x index
June 57.11 57.68 56.96 57.38 0.33 229,434 Dec 642.00 658.00 641.50 648.00 4.50 33,990 Dec 23491 23535 s 23260 23416 –75 154,638
Dec 55.17 55.67 55.14 55.45 0.27 266,119 March'18 124-290 125-010 124-245 124-290 –2.0 41,937
March'18 652.00 666.00 652.00 658.00 3.50 27,916 March'18 23495 23524 s 23255 23409 –75 1,742
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% S&P 500 Index (CME)-$250 x index
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Dec 117-047 117-082 117-027 117-067 .5 3,100,976
Dec 1.9246 1.9527 s 1.9136 1.9469 .0253 109,338 Dec 2590.90 2594.00 s 2563.70 2583.90 –7.00 61,848
Nov 157.525 158.575 156.775 158.475 1.150 6,125 March'18 116-302 117-010 116-280 117-000 .5 62,627
Jan'18 1.9262 1.9555 s 1.9175 1.9490 .0239 98,739 Mini S&P 500 (CME)-$50 x index
Jan'18 156.750 157.925 155.900 157.850 .950 29,507 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Dec 2591.25 2594.50 s 2563.25 2584.00 –7.00 3,156,032
Dec 1.8272 1.8345 1.8106 1.8197 –.0016 131,525 Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 107-192 107-205 107-187 107-205 1.0 1,749,783 March'18 2591.50 2594.75 s 2563.75 2584.25 –7.25 74,411
1.7997 1.8117 1.7885 1.8015 .0047 118,336 Dec 122.475 122.875 122.000 122.475 –.450 106,693 March'18 107-147 107-160 107-142 107-160 .7 62,288
Jan'18 Mini S&P Midcap 400 (CME)-$100 x index
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Feb'18 128.175 128.650 127.650 128.525 –.050 121,775 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Dec 1836.00 1839.40 1812.80 1825.30 –10.00 93,120
Dec 3.152 3.217 3.152 3.200 .025 198,408 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Nov 98.843 98.843 98.843 98.843 … 206,899 Mini Nasdaq 100 (CME)-$20 x index
Jan'18 3.258 3.311 3.256 3.297 .025 254,788 Dec 63.575 63.900 62.625 63.175 –.375 79,955 Jan'18 98.615 98.620 t 98.610 98.620 .005 350,540 Dec 6342.3 6351.5 s 6244.8 6314.5 –27.0 275,482
Feb 3.261 3.311 3.261 3.298 .023 93,407 Feb'18 69.625 70.500 69.200 70.225 .475 76,930 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% March'18 6358.3 6366.0 s 6261.0 6330.0 –26.3 1,996
March 3.218 3.265 3.217 3.253 .022 175,572 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Dec 101.313 101.391 101.156 101.266 –.125 29,701 Mini Russell 2000 (ICE-US)-$100 x index
April 2.971 2.994 2.963 2.980 .005 122,487 Nov 461.50 465.50 457.10 462.70 .90 315 1 Month Libor (CME)-$3,000,000; pts of 100% Dec 1483.40 1485.40 1461.50 1477.30 –5.10 66,947
May 2.949 2.964 2.935 2.954 .005 83,812 Jan'18 456.00 456.70 452.50 455.40 –.40 5,450 Nov ... ... ... 98.7500 .0025 928 March'18 1470.00 1479.00 1470.00 1478.10 –5.20 80
Mini Russell 1000 (ICE-US)-$100 x index
Eurodollar (CME)-$1,000,000; pts of 100% Dec 1427.10 1431.50 1420.50 1431.70 –4.00 269
Nov 98.5775 98.5825 98.5775 98.5800 .0025 100,250 U.S. Dollar Index (ICE-US)-$1,000 x index
Cash Prices | WSJ.com/commodities Thursday, November 09, 2017
Dec 98.4600 98.4750
March'18 98.3200 98.3300
98.4600 98.4700 .0100 1,708,070
98.3150 98.3250 .0050 1,299,893
Dec
March'18
94.85
94.54
94.87
94.54
94.31
94.01
94.35
94.05
–.42 48,280
–.42 2,491
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— Dec 98.0500 98.0750 98.0450 98.0700 .0100 1,605,313 Source: SIX Financial Information
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Thursday Thursday Thursday Bonds | WSJ.com/bonds
(U.S.$ equivalent) 17.1000 SoybeanMeal,Cent IL,rail,ton48%-u 307.80
Energy Coins,wholesale $1,000 face-a 12833 Soybeans,No.1 yllw IL-bp,u 9.3450 Tracking Bond Benchmarks
Propane,tet,Mont Belvieu-g 0.9726 Other metals Wheat,Spring14%-pro Mnpls-u 7.8550
Butane,normal,Mont Belvieu-g 1.0379 LBMA Platinum Price PM *928.0 Wheat,No.2 soft red,St.Louis-bp,u 4.3750 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
NaturalGas,HenryHub-i 3.180 Platinum,Engelhard industrial 937.0 Wheat - Hard - KC (USDA) $ per bu-u 3.7900 highs and lows for different types of bonds
NaturalGas,TranscoZone3-i 3.160 Platinum,Engelhard fabricated 1037.0 Wheat,No.1soft white,Portld,OR-u 5.3050 Total Total
NaturalGas,TranscoZone6NY-i 5.670 Palladium,Engelhard industrial 1022.0 return YTD total Yield (%) return YTD total Yield (%)
Food close return (%) Index Latest Low High close return (%) Index Latest Low High
NaturalGas,PanhandleEast-i 2.920 Palladium,Engelhard fabricated 1122.0
NaturalGas,Opal-i 2.990 Aluminum, LME, $ per metric ton *2103.5 Beef,carcass equiv. index Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
NaturalGas,MarcellusNE PA-i 2.170 Copper,Comex spot 3.0800 choice 1-3,600-900 lbs.-u 192.95
NaturalGas,HaynesvilleN.LA-i 3.110 Iron Ore, 62% Fe CFR China-s 61.9 select 1-3,600-900 lbs.-u 179.49 1942.00 3.3 U.S. Aggregate 2.610 2.340 2.790 1987.08 2.3 Mortgage-Backed 2.840 2.550 3.120
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 57.850 Shredded Scrap, US Midwest-s,w n.a. Broilers, National comp wghtd-u,w 0.8635 1952.62 1.7 Ginnie Mae (GNMA) 2.800 2.470 3.090
U.S. Corporate Indexes Bloomberg Barclays
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.750 Steel, HRC USA, FOB Midwest Mill-s 615 Butter,AA Chicago 2.2225
Cheddar cheese,bbl,Chicago 175.00 2778.00 5.5 U.S. Corporate 3.200 3.030 3.520 1165.83 2.6 Fannie mae (FNMA) 2.850 2.580 3.120
Metals Fibers and Textiles Cheddar cheese,blk,Chicago 171.50
2619.51 3.8 Intermediate 2.760 2.530 3.010 1795.16 2.6 Freddie Mac (FHLMC) 2.860 2.590 3.130
Gold, per troy oz Burlap,10-oz,40-inch NY yd-n,w 0.6150 Milk,Nonfat dry,Chicago lb. 72.75
Engelhard industrial 1288.34 Cotton,1 1/16 std lw-mdMphs-u 0.6754 Cocoa,Ivory Coast-w n.a. 3846.60 9.4 Long term 4.140 4.100 4.710 523.40 4.9 Muni Master 1.954 1.736 2.516
Cotlook 'A' Index-t *79.10 Coffee,Brazilian,Comp 1.2448
Engelhard fabricated 1384.97 567.02 4.1 Double-A-rated 2.680 2.470 2.870 366.34 5.5 7-12 year 1.952 1.744 2.618
Hides,hvy native steers piece fob-u 65.500 Coffee,Colombian, NY 1.4494
Handy & Harman base 1284.80
Wool,64s,staple,Terr del-u,w n.a. Eggs,large white,Chicago-u 1.0150 717.23 6.2 Triple-B-rated 3.480 3.340 3.870 411.63 6.7 12-22 year 2.368 2.213 3.047
Handy & Harman fabricated 1426.12
Flour,hard winter KC 15.85
LBMA Gold Price AM *1282.25 Grains and Feeds High Yield Bonds Merrill Lynch 397.83 7.2 22-plus year 2.801 2.770 3.622
Hams,17-20 lbs,Mid-US fob-u 0.79
LBMA Gold Price PM *1284.00
Barley,top-quality Mnpls-u n.a. Hogs,Iowa-So. Minnesota-u 65.71 414.19 6.6 High Yield Constrained 5.827 5.373 6.858 Global Government J.P. Morgan†
Krugerrand,wholesale-e 1338.58
Bran,wheat middlings, KC-u 86 Pork bellies,12-14 lb MidUS-u n.a.
Maple Leaf-e 1351.46 414.80 7.9 Triple-C-rated 10.772 9.584 13.189 544.46 1.4 Global Government 1.420 1.240 1.560
Corn,No. 2 yellow,Cent IL-bp,u 3.1200 Pork loins,13-19 lb MidUS-u 0.8991
American Eagle-e 1351.46
Corn gluten feed,Midwest-u,w 91.0 Steers,Tex.-Okla. Choice-u 124.00 2837.84 5.8 High Yield 100 5.560 4.948 6.448 756.98 0.5 Canada 2.000 1.570 2.190
Mexican peso-e 1559.86
Corn gluten meal,Midwest-u,w 492.9 Steers,feeder,Okla. City-u,w 172.13
Austria crown-e 1264.62 376.85 7.0 Global High Yield Constrained 5.253 4.934 6.450 371.86 0.8 EMU§ 1.067 0.933 1.363
Cottonseed meal-u,w 225 Fats and Oils
Austria phil-e 1351.46
Hominy feed,Cent IL-u,w 88 307.45 7.1 Europe High Yield Constrained 2.077 1.897 3.814 712.37 0.8 France 0.810 0.710 1.210
Silver, troy oz. Meat-bonemeal,50% pro Mnpls-u,w 220 Corn oil,crude wet/dry mill-u,w 34.5000
Engelhard industrial 17.0900 Oats,No.2 milling,Mnpls-u 3.0300 Grease,choice white,Chicago-h 0.2500 U.S Agency Bloomberg Barclays 509.27 -1.0 Germany 0.450 0.210 0.620
Engelhard fabricated 20.5080 Rice, 5% Broken White, Thailand-l,w 370.00 Lard,Chicago-u n.a. 1640.68 2.2 U.S Agency 2.000 1.510 2.010 288.52 0.1 Japan 0.390 0.200 0.460
Handy & Harman base 16.9850 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Soybean oil,crude;Centl IL-u 0.3427
Handy & Harman fabricated 21.2310 Sorghum,(Milo) No.2 Gulf-u 7.5713 Tallow,bleach;Chicago-h 0.2650 1466.62 1.4 10-20 years 1.840 1.300 1.840 561.89 -0.8 Netherlands 0.580 0.360 0.760
LBMA spot price £13.0300 Tallow,edible,Chicago-u n.a.
3369.06 7.8 20-plus years 2.920 2.730 3.460 921.44 0.9 U.K. 1.580 1.340 1.790
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; 2458.03 4.8 Yankee 2.840 2.610 3.090 n.a. n.a. Emerging Markets ** n.a. n.a. n.a.
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
as of 11/8
Source: WSJ Market Data Group ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan

Global Government Bonds: Mapping Yields

Borrowing Benchmarks | WSJ.com/bonds Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Money Rates November 9, 2017
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a Country/ Yield (%) Spread Under/Over U.S. Treasurys, in basis points
Coupon (%) Maturity, in years Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
guide to general levels but don’t always represent actual transactions.
1.500 U.S. 2 1.637 t l 1.657 1.520 0.894
Week —52-WEEK— Week —52-WEEK— 2.250 10 2.324 t l 2.333 2.361 2.063
Inflation Latest ago High Low Latest ago High Low 2.750 Australia 2 1.807 s l 1.803 1.926 1.575 17.0 14.6 68.1
Sept. index Chg From (%)
level Aug. '17 Sept. '16 Britain 0.50 0.50 0.50 0.25 13 weeks 1.185 1.130 1.185 0.420 2.750 10 2.607 s l 2.581 2.830 2.232 28.3 24.9 16.9
Australia 1.50 1.50 1.50 1.50 26 weeks 1.300 1.260 1.300 0.535
0.000 France 2 -0.582 s l -0.612 -0.490 -0.615 -221.9 -226.9 -150.9
U.S. consumer price index
Overnight repurchase Secondary market 2.750 10 0.623 s l 0.559 0.720 0.521 -170.1 -177.3 -154.2
All items 246.819 0.53 2.2
U.S. 1.15 1.23 1.38 0.15 Fannie Mae 0.000 Germany 2 -0.751 s l -0.758 -0.686 -0.645 -238.8 -241.5 -153.9
Core 252.941 0.19 1.7
U.S. government rates 30-year mortgage yields 0.500 10 0.381 s l 0.329 0.449 0.206 -194.3 -200.4 -185.7
International rates 30 days 3.460 3.467 3.865 3.253
Discount 0.050 Italy 2 -0.204 s l -0.253 -0.106 -0.025 -184.2 -191.0 -91.9
60 days 3.481 3.488 3.899 3.281
Week 52-Week 1.75 1.75 1.75 1.00 2.050 10 1.814 s l 1.737 2.113 1.744 -51.0 -59.6 -31.9
Latest ago High Low Other short-term rates 0.100 Japan 2 -0.199 s l -0.206 -0.139 -0.276 -183.6 -186.3 -117.0
Federal funds
Prime rates Effective rate 1.1800 1.1700 1.2000 0.3500 Week 52-Week 0.100 10 0.029 s l 0.024 0.055 -0.074 -229.5 -230.9 -213.7
4.25 4.25 4.25 3.50 Latest ago high low
U.S. High 1.3125 1.3125 1.3125 0.5625 2.750 Spain 2 -0.321 s l -0.354 -0.284 -0.208 -195.9 -201.2 -110.2
Canada 3.20 3.20 3.20 2.70 Low 1.0500 1.0500 1.1600 0.2500 1.450 10 1.536 s l 1.471 1.673 1.257 -86.2 -80.6
Call money -78.8
Japan 1.475 1.475 1.475 1.475 Bid 1.1600 1.1600 1.1700 0.3000
3.00 3.00 3.00 2.25 1.750 U.K. 2 0.475 s l 0.459 0.419 0.218 -116.2 -119.8 -67.6
Offer 1.1800 1.1700 1.1900 0.3200
Policy Rates 4.250 10 1.265 s l 1.228 1.361 1.143 -105.9 -110.5 -91.9
Commercial paper (AA financial)
Euro zone 0.00 0.00 0.00 0.00 Treasury bill auction
90 days 1.32 1.30 1.32 0.62 Source: Tullett Prebon
Switzerland 0.50 0.50 0.50 0.50 4 weeks 1.035 1.020 1.300 0.270
Libor Corporate Debt
in that same company’s share price.
Exchange-Traded Portfolios | WSJ.com/ETFresearch One month
Three month
1.24494
1.41289
1.24212
1.39139
1.24606
1.41289
0.53817
0.90206
Investment-grade spreads that tightened the most…
Six month 1.61239 1.58907 1.61239 1.25822
Spread*, in basis points Stock Performance
Largest 100 exchange-traded funds, latest session One year 1.88178 1.86317 1.88178 1.58344 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
Thursday, November 9, 2017 Closing Chg YTD Euro Libor Macy's Retail Holdings M 4.375 Sept. 1, ’23 310 –15 289 .. …
ETF Symbol Price (%) (%)
Closing Chg YTD One month -0.399 -0.399 -0.376 -0.405 Apple AAPL 3.000 Nov. 13, ’27 59 –14 n.a. 175.88 –0.20
ETF Symbol Price (%) (%) iShUSPfdStk PFF 38.27 –0.16 2.8 Three month -0.378 -0.378 -0.325 -0.381 Citibank C 2.125 Oct. 20, ’20 40 –12 48 72.43 0.12
AlerianMLPETF AMLP 10.63 –0.05 –15.6 iShTIPSBondETF TIP 114.21 –0.02 0.9 Six month -0.314 -0.316 -0.214 -0.322
iSh1-3YTreasuryBd SHY 84.17 –0.01 –0.3
Holcim US Finance Sarl & Cie Scs HOLNVX 5.150 Sept. 12, ’23 107 –8 n.a. ... ...
CnsmrDiscSelSector XLY 92.06 0.15 13.1 One year -0.240 -0.233 -0.075 -0.240
CnsStapleSelSector XLP 53.73 –0.02 3.9 iSh7-10YTreasuryBd IEF 106.37 –0.04 1.5 Banque Federative Du Credit Mutuel S.A. BFCM 2.750 Oct. 15, ’20 54 –7 n.a. ... ...
DBGoldDoubleLgETN DGP 24.51 0.37 21.8 iSh20+YTreasuryBd TLT 126.00 –0.28 5.8 Charter Communications Operating CHTR 3.750 Feb. 15, ’28 197 –6 187 … …
Euro interbank offered rate (Euribor)
DBGoldDoubleShrt DZZ 5.50 –0.72 –19.8 iShRussellMCGrowth IWP 115.95 –0.76 19.1
PIMCOEnhShMaturity MINT 101.74 –0.01 0.4 One month -0.371 -0.372 -0.366 -0.375 KLA–Tencor KLAC 4.650 Nov. 1, ’24 76 –6 76 102.40 –4.37
EnSelectSectorSPDR XLE 70.03 0.30 –7.0
PwrShQQQ 1 QQQ 153.69 –0.52 29.7 Three month -0.329 -0.329 -0.311 -0.332 Wells Fargo Capital X WFC 5.950 Dec. 15, ’36 204 –6 n.a. … …
FinSelSectorSPDR XLF 26.16 –0.34 12.5
96.84 –0.27 11.8 PwrShS&P500LoVol SPLV 46.91 –0.32 12.8 Six month -0.276 -0.276 -0.210 -0.276
GuggS&P500EW
HealthCareSelSect
RSP
XLV 81.73 0.01 18.6 PwrShSrLoanPtf BKLN 23.05 –0.04 –1.3 One year -0.191 -0.189 -0.069 -0.191 …And spreads that widened the most
SPDRBloomBarcHYBd JNK 36.51 –0.65 0.2
IndSelSectorSPDR XLI 70.96 –1.25 14.0
Value 52-Week Pitney Bowes PBI 3.625 Sept. 15, ’20 303 39 265 10.55 –2.31
iShIntermCredBd CIU 109.63 –0.03 1.3 SPDR Gold GLD 122.13 0.41 11.4
SchwabIntEquity SCHF 34.09 –0.58 23.2 Latest Traded High Low Morgan Stanley MS 5.450 July 15, ’49 78 28 33 48.82 –0.45
iSh1-3YCreditBond CSJ 104.96 ... 0.0
123.08 0.01 0.5
SchwabUS BrdMkt SCHB 62.32 –0.37 15.0 Teva Pharmaceutical Finance Netherlands Iii TEVA 2.200 July 21, ’21 304 22 251 … …
iSh3-7YTreasuryBd IEI DTCC GCF Repo Index
iShCoreMSCIEAFEETF IEFA 65.06 –0.68 21.3
SchwabUS LC SCHX 61.67 –0.39 15.8 eBay EBAY 3.600 June 5, ’27 126 15 n.a. 35.69 –3.57
SPDR DJIA Tr DIA 234.72 –0.31 18.8 Treasury 1.204 28.802 1.366 0.244
iShCoreMSCIEmgMk IEMG 56.08 –0.55 32.1 MZ Funding MZFUND 14.000 Jan. 20, ’20 1018 15 n.a. ... ...
SPDR S&PMdCpTr MDY 332.25 –0.49 10.1 MBS 1.214 105.190 1.506 0.257
iShCoreMSCITotInt IXUS 62.23 –0.58 23.3
SPDR S&P 500 SPY 258.17 –0.36 15.5 CBL & Associates CBL 5.950 Dec. 15, ’26 453 12 368 5.83 6.00
iShCoreS&P500ETF IVV 259.99 –0.36 15.6 Open Implied
iShCoreS&PMdCp IJH 182.21 –0.52 10.2
SPDR S&P Div SDY 92.36 –0.06 7.9
Settle Change Interest Rate
Viacom VIA 4.250 Sept. 1, ’23 181 12 167 30.25 1.85
iShCoreS&PSmCpETF IJR 73.29 –0.46 6.6
TechSelectSector XLK 63.50 –0.80 31.3 Broadcom AVGO 3.875 Jan. 15, ’27 168 11 113 265.64 –2.48
UtilitiesSelSector XLU 55.77 0.13 14.8 DTCC GCF Repo Index Futures
iShS&PTotlUSStkMkt ITOT 59.03 –0.44 15.1
iShCoreUSAggBd AGG 109.43 –0.07 1.3
VanEckGoldMiner GDX 22.81 –0.35 9.0
Treasury Nov 98.830 -0.010 8594 1.170 High-yield issues with the biggest price increases…
VangdInfoTech VGT 164.74 –0.89 35.6
iShSelectDividend DVY 94.91 –0.09 7.2 Treasury Dec 98.685 -0.005 2043 1.315 Bond Price as % of face value Stock Performance
VangdSC Val VBR 127.59 –0.35 5.4
iShEdgeMSCIMinEAFE EFAV 71.70 –0.29 17.1 Treasury Jan 98.595 unch. 450 1.405 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
VangdDivApp VIG 97.06 –0.43 13.9
iShEdgeMSCIMinUSA USMV 51.63 –0.19 14.2
VangdFTSEDevMk VEA 44.15 –0.67 20.8 Kronos Acquisition Holdings KIKCN 9.000 Aug. 15, ’23 93.500 2.38 96.000 ... ...
iShGoldTr IAU 12.35 0.32 11.5
VangdFTSE EM VWO 44.76 –0.38 25.1 Weekly survey
iShiBoxx$InvGrCpBd LQD 120.58 –0.26 2.9 Endo Dac ENDP 6.000 July 15, ’23 74.500 2.25 77.870 … ...
VangdFTSE Europe VGK 57.78 –0.72 20.5 Latest Week ago Year ago
iShiBoxx$HYCpBd HYG 86.92 –0.49 0.4
VangdFTSEAWxUS VEU 53.80 –0.55 21.8
CenturyLink CTL 5.800 March 15, ’22 95.219 1.72 100.250 15.48 –4.80
iShJPMUSDEmgBd EMB 114.36 –0.21 3.8
VangdGrowth VUG 137.63 –0.40 23.5 Freddie Mac DCP Midstream Operating DCP 5.600 April 1, ’44 97.418 0.97 96.250 … …
iShMBSETF MBB 106.76 –0.07 0.4
VangdHlthCr VHT 151.99 –0.02 19.9 Hertz HTZ 5.500 Oct. 15, ’24 88.000 0.75 90.625 20.01 –4.67
iShMSCIACWIETF ACWI 70.50 –0.48 19.1 VangdHiDiv VYM 82.62 –0.34 9.0
30-year fixed 3.90 3.94 3.57
iShMSCI EAFE EFA 69.47 –0.57 20.3 15-year fixed 3.24 3.27 2.88 Genworth Financial GNW 7.200 Feb. 15, ’21 97.250 0.66 95.750 3.56 2.89
VangdIntermBd BIV 84.40 –0.07 1.6
iShMSCIEAFESC SCZ 62.54 –0.90 25.5 VangdIntrCorpBd VCIT 87.63 –0.09 2.3 Five-year ARM 3.22 3.23 2.88 Frontier Communications FTR 8.125 Oct. 1, ’18 101.370 0.62 101.875 7.96 ...
iShMSCIEmgMarkets EEM 46.49 –0.62 32.8 VangdLC VV 118.56 –0.34 15.8 Genesis Energy GEL 6.000 May 15, ’23 101.500 0.54 100.980 22.98 –0.17
iShMSCIEurozoneETF EZU 43.18 –0.76 24.8 VangdMC VO 148.88 –0.42 13.1
iShMSCIJapanETF EWJ 59.52 –0.83 21.8 VangdMC Val VOE 106.30 –0.19 9.4 Notes on data: …And with the biggest price decreases
iShNasdaqBiotech IBB 311.04 –0.56 17.2 VangdREIT VNQ 84.84 0.11 2.8 U.S. prime rate is the base rate on corporate
iShNatlMuniBdETF MUB 111.06 –0.09 2.7 VangdS&P500 VOO 237.18 –0.36 15.5 loans posted by at least 70% of the 10 largest Frontier Communications FTR 10.500 Sept. 15, ’22 71.125 –9.00 83.875 7.96 ...
iShRussell1000Gwth IWF 130.74 –0.52 24.6 VangdST Bond BSV 79.50 0.03 0.1 U.S. banks, and is effective June 15, 2017. Other CenturyLink CTL 7.600 Sept. 15, ’39 79.000 –5.63 89.750 15.48 –4.80
prime rates aren’t directly comparable; lending
iShRussell1000ETF IWB 143.65 –0.37 15.4 VangdSTCpBd VCSH 79.74 –0.03 0.5
practices vary widely by location; Discount rate Embarq EQ 7.995 June 1, ’36 90.750 –5.50 101.250 ... ...
iShRussell1000Val IWD 119.53 –0.23 6.7 142.26 10.3
VangdSC VB –0.58 is effective June 15, 2017. DTCC GCF Repo Index Level 3 Financing LVLT 5.250 March 15, ’26 97.000 –3.25 n.a. ... ...
iShRussell2000Gwth IWO 178.61 –0.60 16.0 VangdTotalBd BND 81.75 –0.10 1.2 is Depository Trust & Clearing Corp.'s weighted
iShRussell2000ETF IWM 146.68 –0.35 8.8 VangdTotIntlBd BNDX 54.91 –0.33 1.1 average for overnight trades in applicable Altice Luxembourg ATCNA 7.625 Feb. 15, ’25 104.000 –3.00 108.750 ... ...
iShRussell2000Val IWN 121.70 –0.26 2.3 VangdTotIntlStk VXUS 55.88 –0.60 21.8 CUSIPs. Value traded is in billions of U.S. dollars. K. Hovnanian Enterprises HOV 10.500 July 15, ’24 108.750 –2.50 112.000 2.36 –0.84
Federal-funds rates are Tullett Prebon rates as
iShRussell3000ETF IWV 152.76 –0.38 14.9 VangdTotalStk VTI 132.52 –0.41 14.9
of 5:30 p.m. ET. Futures on the DTCC GCF Repo
Jones Energy Holdings JONE 6.750 April 1, ’22 76.000 –2.25 77.750 1.20 –4.00
iShRussellMid-Cap IWR 200.41 –0.44 12.0 VangdTotlWrld VT 72.31 –0.55 18.5
Index are traded on NYSE Liffe US. Revlon Consumer Products REV 5.750 Feb. 15, ’21 78.063 –2.19 86.750 … …
iShRussellMCValue IWS 85.82 –0.23 6.7 VangdValue VTV 101.67 –0.34 9.3
208.58 –0.77 14.5
Sources: Federal Reserve; Bureau of Labor
iShS&PMC400Growth IJK WisdTrEuropeHdg HEDJ 65.19 –1.23 13.6 *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.
Statistics; DTCC; SIX Financial Information;
iShS&P500Growth IVW 149.36 –0.50 22.6 WisdTrJapanHdg DXJ 58.53 –1.51 18.1 General Electric Capital Corp.; Tullett Prebon Note: Data are for the most active issue of bonds with maturities of two years or more
iShS&P500ValueETF IVE 109.03 –0.19 7.5 XtrkrsMSCIEAFE DBEF 31.97 –0.93 13.9 Information, Ltd. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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THE WALL STREET JOURNAL. Friday, November 10, 2017 | B9

BIGGEST 1,000 STOCKS

Net Net Net Net Net Net Net
How to Read the Stock Tables Footnotes: Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg Stock Sym Close Chg
The following explanations apply to NYSE, s-New 52-week high.
NYSE Arca, NYSE MKT and Nasdaq Stock t-New 52-week low. GlobalPayments GPN 99.32 -2.33 Markel MKL 1076.52 2.92 RockwellCollins COL 133.49 -1.06 ThomsonReuters TRI 44.61 0.34 YPF YPF 24.11 -0.70 Ericsson ERIC 5.99 -0.29 NatlInstruments NATI 44.88 -0.22
Market listed securities. Prices are composite dd-Indicates loss in the most recent GoDaddy GDDY 47.98 -0.04 Marsh&McLennan MMC 82.93 0.50 RogersComm B RCI 52.50 0.16 ThorIndustries THO 130.00 -0.24 YumBrands YUM 79.53 -1.60 ErieIndemnity A ERIE 121.75 -0.29 s NetApp NTAP 46.30 0.97
quotations that include primary market trades four quarters. Goldcorp GG 13.38 0.11 MartinMarietta MLM 212.95 -0.25 Rollins ROL 44.72 -0.31 3M MMM 228.39 -1.44 YumChina YUMC 41.06 0.01 Exelixis EXEL 25.75 -0.65 Netease NTES 312.86 -1.32
as well as trades reported by Nasdaq OMX FD-First day of trading. GoldmanSachs GS 240.79 -0.46 Masco MAS 38.62 -0.51 RoperTech ROP 257.83 -1.43 Tiffany TIF 91.00 0.13 ZTO Express ZTO 17.47 0.08 Expedia EXPE 117.32 -1.24 Netflix NFLX 193.90 -2.54
BXSM (formerly Boston), Chicago Stock h-Does not meet continued listing Graco GGG 130.11 -2.29 Mastercard MA 149.29 -0.68 RoyalBkCanada RY 79.43 0.01 TimeWarner TWX 87.05 -1.45 ZayoGroup ZAYO 34.02 -0.36 ExpeditorsIntl EXPD 59.87 -0.62 Neurocrine NBIX 75.42 1.37
Exchange, CBOE, National Stock Exchange, ISE standards Grainger GWW 206.07 -2.06 McCormick MKC 95.51 -0.92 RoyalBkScotland RBS 7.28 -0.03 Toll Bros TOL 45.80 -0.23 ZimmerBiomet ZBH 111.84 2.67 ExpressScripts ESRX 60.75 -0.55 s NewsCorp A NWSA 14.36 0.22
and BATS. lf-Late filing GreatPlainsEner GXP 33.47 -0.19 McCormickVtg MKC.V 95.34 1.00 RoyalCaribbean RCL 126.67 -2.25 Torchmark TMK 84.50 -0.74 Zoetis ZTS 69.30 -0.21 F5Networks FFIV 120.96 -0.38 NewsCorp B NWS 14.75 0.30
The list comprises the 1,000 largest q-Temporary exemption from Nasdaq GpoAvalAcciones AVAL 8.38 -0.01 McDonalds MCD 167.00 -3.10 RoyalDutchA RDS.A 64.27 -0.08 Toro TTC 61.50 -1.42 Facebook FB 179.30 -0.26 Nordson NDSN 123.66 -2.34
companies based on market capitalization. requirements. GpFinSantandMex BSMX 8.30 0.07 McKesson MCK 140.11 -0.25 RoyalDutchB RDS.B 66.37 0.31 TorontoDomBk TD 57.57 -0.03 NASDAQ Fastenal FAST 47.54 -0.93 NorthernTrust NTRS 92.16 -0.71
Underlined quotations are those stocks with t-NYSE bankruptcy GrupoTelevisa TV 20.19 -0.32 Medtronic MDT 80.81 3.00 SAP SAP 112.64 -1.96 Total TOT 56.54 -0.17 FifthThirdBncp FITB 28.01 -0.29 NorwegianCruise NCLH 56.89 1.33
large changes in volume compared with the v-Trading halted on primary market. AGNC Invt AGNC 19.65 -0.08
GuidewireSoftware GWRE 79.31 -1.51 Merck MRK 56.21 -0.37 S&P Global SPGI 157.91 -2.15 TotalSystem TSS 72.23 0.24 FirstSolar FSLR 60.54 -1.25 NVIDIA NVDA 205.32 -3.84
issue’s average trading volume. vj-In bankruptcy or receivership or SINOPECShanghai SHI 59.10 Ansys ANSS 150.47 -1.01
HCA Healthcare HCA 79.41 0.55 MetLife MET 52.81 -0.21 -0.78 ToyotaMotor TM 125.46 -2.52 Fiserv FISV 128.88 0.06 OReillyAuto ORLY 211.09 1.44
Boldfaced quotations highlight those issues being reorganized under the SK Telecom SKM 25.43 ASML ASML 178.01 -3.50 Flex
HCP HCP 27.02 0.03 MettlerToledo MTD 626.82 3.10 -0.16 TransCanada TRP 48.67 0.05 FLEX 18.31 -0.05 OldDomFreight ODFL 119.11 -1.84
whose price changed by 5% or more if their Bankruptcy Code, or securities Abiomed ABMD 195.54 -1.43 FlirSystems FLIR 46.34 -0.65
HDFC Bank HDB 94.67 -0.92 MichaelKors KORS 54.53 0.58 SLGreenRealty SLG 98.75 1.71 TransDigm TDG 265.58-19.39 ON Semi ON 21.43 -0.42
previous closing price was $2 or higher. assumed by such companies. HP HPQ 21.34 -0.08 MicroFocus MFGP 34.52 -0.45 Salesforce.com CRM 103.60 -1.43 TransUnion TRU 53.12 -0.48
ActivisionBliz ATVI 63.31 -1.24 Fortinet FTNT 39.49 -0.42 OpenText OTEX 32.83 -0.57
Sanofi SNY 45.42 -0.46
AdobeSystems ADBE 181.92 -2.14 Gaming&Leisure GLPI 36.82 -0.38
HSBC HSBC 48.68 0.33 MidAmApt MAA 105.61 ... Travelers TRV 134.53 1.01 PTC PTC 64.66 -0.38
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and SantanderConUSA SC 16.21 -0.21 TurkcellIletism TKC 9.16 ...
AdvMicroDevices AMD 11.12 -0.59 Garmin GRMN 59.72 0.07 Paccar
Halliburton HAL 45.01 -0.11 MitsubishiUFJ MTU 6.60 -0.08 PCAR 69.42 -1.10
changes in the closing prices from 4 p.m. the previous day. Hanesbrands HBI 19.47 -0.22 MizuhoFin MFG 3.60 -0.02 Sasol SSL 30.66 0.18 TurquoiseHill TRQ 3.11 -0.05 AkamaiTech AKAM 53.85 0.09 GileadSciences GILD 73.02 -0.08 PacWestBancorp PACW 45.00 -0.44
HarleyDavidson HOG 45.85 0.34 MobileTeleSys MBT 10.92 -0.16 Scana SCG 44.60 1.37 Twitter TWTR 19.90 0.31 AlexionPharm ALXN 116.37 0.98 Goodyear GT 29.15 -0.09 Paychex PAYX 64.76 0.21
s
Net Net Harris HRS 137.56 -3.73 MohawkIndustries MHK 264.61 1.13 Schlumberger SLB 66.89 -0.17 TylerTech TYL 169.82 -2.86 AlignTech ALGN 249.63 -3.11 Grifols GRFS 23.11 0.10 PayPal PYPL 74.10 -0.67
Thursday, November 9, 2017
Stock Sym Close Chg Stock Sym Close Chg HartfordFinl HIG 55.25 0.05 MolsonCoors B TAP 80.53 0.90 SchwabC SCHW 44.00 -0.20 TysonFoods TSN 73.82 -0.18 Alkermes ALKS 48.05 0.02 GpoFinGalicia GGAL 54.32 0.61 People'sUtdFin PBCT 17.76 -0.19
Net
HealthcareAmer HTA 30.50 -0.09 Monsanto MON 117.34 -0.04 ScottsMiracleGro SMG 98.04 -0.83 UBS Group UBS 16.93 -0.02 AlnylamPharm ALNY 137.68 5.35 HD Supply HDS 35.81 -0.31 s PilgrimPride PPC 33.92 0.79
Stock Sym Close Chg Bard CR BCR 335.28 1.20 CrownCastle CCI 113.50 -0.53 Heico HEI 90.74 -0.08 Moody's MCO 143.09 -1.84 SealedAir SEE 44.77 -0.03 UDR UDR 39.83 -0.22 Alphabet C GOOG 1031.26 -8.59 Hasbro HAS 88.69 -0.32 Priceline PCLN1703.14 42.03
BarrickGold ABX 14.11 0.12 CrownHoldings CCK 59.15 -0.53 SemicondctrMfg SMI 8.76 0.29 UGI UGI 47.98 -0.05 Alphabet A GOOGL 1047.72-10.57 HenrySchein HSIC 69.66 -0.34 Qiagen
NYSE BaxterIntl BAX 65.39 0.38 Cullen/Frost CFR 93.08 -0.88
Heico A HEI.A 76.75
Helmerich&Payne HP 59.53
-0.50
0.43
MorganStanley MS 48.82
Mosaic MOS 22.50
-0.22
-0.14 s SempraEnergy SRE 121.38 0.35 US Foods USFD 26.65 -0.02 Altaba AABA 70.19 -0.97 Hologic HOLX 39.65 0.11 s Qorvo
QGEN 31.61 -0.13
QRVO 79.47 -1.35
ABB ABB 25.74 -0.48
BectonDickinson BDX 224.48 3.05 Cummins CMI 167.96 -3.42 Herbalife HLF 65.36 -0.40 MotorolaSolutions MSI 91.61 -1.05 SensataTech ST 47.91 -0.65 UltraparPart UGP 22.81 -0.91 Amazon.com AMZN 1129.13 -3.75 JBHunt JBHT 102.00 -2.36 Qualcomm QCOM 64.60 -0.89
t AES AES 10.30 -0.21
Berkley WRB 68.67 -0.04 DTE Energy DTE 113.22 0.03 Hershey HSY 107.77 0.02 NRG Energy NRG 27.82 -0.20 ServiceCorp SCI 35.38 -0.17 Unilever UN 57.33 -0.14 Amdocs DOX 62.00 -1.27 HuntingtonBcshs HBAN 13.21 -0.08
RandgoldRscs GOLD 91.17 -0.25
BerkHathwy A BRK.A 276556-120.00 DXC Tech DXC 94.63 -2.12 ServiceMaster SERV 47.17 0.35 Unilever UL 56.13 -0.08 Amerco UHAL371.36 -8.66 IAC/InterActive IAC 124.91 -5.93 RegenPharm REGN 406.21 -8.96
Aflac AFL 84.08 0.09 Hess HES 47.53 0.45 NTTDoCoMo DCM 24.80 0.01
AT&T T 34.00 0.56
BerkHathwy B BRK.B 184.49 -0.11 Danaher DHR 92.98 -0.26 HewlettPackard HPE 13.72 0.18 s NVR NVR 3300.00 4.53 ServiceNow NOW 125.55 -2.07 UnionPacific UNP 117.07 -0.73 AmericanAirlines AAL 45.77 -0.60 IdexxLab IDXX 150.19 0.12 RossStores ROST 64.57 0.70
AbbottLabs ABT 55.45 0.20
BerryGlobal BERY 58.02 -0.46 Darden DRI 82.14 0.02 Hilton HLT 72.05 -0.85 t NationalGrid NGG 60.48 -1.37 ShawComm B SJR 22.75 0.25 UnitedContinental UAL 58.39 -0.53 Amgen AMGN 174.00 0.42 IHSMarkit INFO 43.20 -0.73
RoyalGold RGLD 87.59 -1.62
AbbVie ABBV 95.89 0.18
BestBuy BBY 55.93 -0.62 DaVita DVA 55.11 0.77 HollyFrontier HFC 42.20 -0.12 NatlOilwell NOV 34.55 -0.47 SherwinWilliams SHW 387.03 -8.48 UnitedMicro UMC 2.58 0.03 AnalogDevices ADI 89.70 -2.30 t INC Research INCR 41.15-16.35 Ryanair RYAAY 111.87 0.22
s Bio-RadLab A BIO 267.27 0.96 Deere DE 131.28 -3.36 HomeDepot HD 163.27 -0.78 NatlRetailProp NNN 41.97 0.27 ShinhanFin SHG 43.56 -0.39 UPS B UPS 112.55 -0.58 Apple AAPL 175.88 -0.36 IPG Photonics IPGP 218.72 -3.07 s
SBA Comm SBAC 169.51 0.01
Accenture ACN 143.83 -1.06
AcuityBrands AYI 160.08 1.81
BlackKnight BKI 46.30 -0.20 DellTechnologies DVMT 81.88 -0.43 HondaMotor HMC 32.97 -0.67 NewOrientalEduc EDU 85.42 -1.72 Shopify SHOP 97.03 -2.37 UnitedRentals URI 145.09 -3.65 AppliedMaterials AMAT 55.48 -1.44 IRSA Prop IRCP 57.49 -0.51 SEI Investments SEIC 64.73 -0.38
Adient ADNT 76.95 -0.47
BlackBerry BB 10.76 -0.06 DelphiAutomotive DLPH 95.58 -0.77 Honeywell HON 145.44 -1.42 NY CmntyBcp NYCB 12.00 -0.05 SimonProperty SPG 161.26 4.23 US Bancorp USB 52.11 -0.57 ArchCapital ACGL 95.91 0.46 IcahnEnterprises IEP 57.94 -0.18 Sina SINA 106.79 -0.82
AdvanceAuto AAP 80.45 1.04
BlackRock BLK 466.60 -5.60 DeltaAir DAL 49.19 -0.87 HormelFoods HRL 31.95 -0.20 NewellBrands NWL 30.10 -1.31 SmithAO AOS 58.67 -0.90 US Steel X 27.10 -0.12 Atlassian TEAM 52.33 -0.61 Icon ICLR 115.36 -5.34 SS&C Tech SSNC 40.01 -0.72
AdvSemiEngg ASX 6.12 -0.08 BlackstoneGroup BX 32.43 -0.22 DeutscheBank DB 17.41 0.37 s DR Horton DHI 45.99 0.58 NewfieldExpln NFX 32.99 0.71 Smith&Nephew SNN 36.40 -0.33 UnitedTech UTX 118.37 -1.91 Autodesk ADSK 122.40 -1.44 Illumina ILMN 209.61 -1.59 SVB Fin SIVB 208.23 -1.33
s Aegon AEG 6.21 0.36
BoardwalkPipe BWP 14.58 0.06 DevonEnergy DVN 40.81 0.55 s HostHotels HST 20.00 -0.19 NewmontMining NEM 35.88 -0.43 Smucker SJM 102.60 ... UnitedHealth UNH 211.56 0.79 ADP ADP 111.97 -0.62 Incyte INCY 102.99 -1.99 ScrippsNetworks SNI 78.33 -0.52
AerCap AER 51.87 -0.11
Boeing BA 262.70 -1.45 Diageo DEO 135.36 0.33 HuanengPower HNP 28.10 0.42 NextEraEnergy NEE 155.25 0.33 Snap SNAP 12.38 -0.53 t UniversalHealthB UHS 99.79 -0.95 Baidu BIDU 240.06 -1.12 Intel INTC 46.30 -0.40 Seagate STX 37.41 -0.30
Aetna AET 172.53 -2.91
BorgWarner BWA 52.10 -0.09 DigitalRealty DLR 122.24 -1.26 Hubbell HUBB 122.99 -0.59 t NielsenHoldings NLSN 37.10 -0.44 SnapOn SNA 156.81 -0.52 UnumGroup UNM 52.53 -0.11 BankofOzarks OZRK 43.08 -0.92 InteractiveBrkrs IBKR 53.69 -0.30 SeattleGenetics SGEN 57.91 0.04
AffiliatedMgrs AMG 185.11 -0.84
BostonProperties BXP 126.01 1.27 DiscoverFinSvcs DFS 65.47 -0.62 Humana HUM 247.46 3.98 Nike NKE 56.13 0.37 SOQUIMICH SQM 57.96 -1.86 VEREIT VER 8.17 0.06 Biogen BIIB 309.96 -2.62 Intuit INTU 152.41 -0.55 Shire SHPG 140.07 -1.24
AgilentTechs A 67.47 -0.64
BostonScientific BSX 28.59 0.49 Disney DIS 102.68 1.50 HuntingtonIngalls HII 242.55 -9.41 NiSource NI 27.52 ... Sony SNE 45.89 -1.58 VF VFC 69.36 -0.13 BioMarinPharm BMRN 82.40 -0.41 IntuitiveSurgical ISRG 390.00 -2.34 SignatureBank SBNY 124.37 -0.04
Braskem BAK 30.95 -0.37 DolbyLab DLB 59.64 0.28 Southern SO 52.01 0.24 Visa V 112.14 -0.33 Bioverativ BIVV 53.67 -0.47 IonisPharma IONS 55.12 0.36
AgnicoEagle AEM 45.35 -0.24 Huntsman HUN 30.90 -0.65 NobleEnergy NBL 28.45 0.02 SiriusXM SIRI 5.31 -0.05
Agrium AGU 107.21 0.19
Bristol-Myers BMY 61.99 -0.59 DollarGeneral DG 81.91 1.21 HyattHotels H 69.20 -0.59 Nokia NOK 4.96 -0.09 SoCopper SCCO 44.09 -0.30 VailResorts MTN 232.58 -2.31 bluebirdbio BLUE 150.35 3.65 JD.com JD 39.80 -0.53 Skyworks SWKS 111.12 -2.03
AirProducts APD 160.55 -0.39
BritishAmTob BTI 64.94 -0.17 DominionEner D 81.24 0.36 ICICI Bank IBN 9.44 0.10 NomuraHoldings NMR 5.92 -0.05 SouthwestAirlines LUV 53.46 -0.55 Vale VALE 10.13 -0.26 BrighthouseFin BHF 56.50 0.21 s JackHenry JKHY 113.96 0.10 s Splunk SPLK 70.78 -0.38
BroadridgeFinl BR 87.83 -2.65 Domino's DPZ 173.21 4.50 SpectraEnerPtrs SEP 42.02 0.38 ValeroEnergy VLO 81.28 -0.39 Broadcom AVGO 265.64 -6.76 JazzPharma JAZZ 135.31 -1.09 Starbucks SBUX 57.36 -0.55
AlaskaAir ALK 62.38 0.30 ING Groep ING 18.17 -0.12 Nordstrom JWN 40.03 1.73
Albemarle ALB 140.84 -3.74 BrookfieldMgt BAM 42.04 -0.26 Donaldson DCI 46.42 -0.82 Invesco IVZ 35.50 -0.19 NorfolkSouthern NSC 127.99 -1.34 SpectrumBrands SPB 104.15 -0.05 Vantiv VNTV 68.77 0.33 CA CA 32.26 -0.36 JetBlue JBLU 18.83 0.03 SteelDynamics STLD 37.19 -0.58
BrookfieldInfr BIP 43.45 -0.14 DouglasEmmett DEI 40.08 0.10 IDEX IEX 127.29 -0.74 NorthropGrumman NOC 299.14 -4.16 SpiritAeroSys SPR 80.20 -2.18 VarianMed VAR 107.69 0.09 CDK Global CDK 63.59 -0.02 JunoTherap JUNO 54.43 -0.53 t Stericycle SRCL 64.06 -3.04
Alcoa AA 43.33 -2.56
Brown&Brown BRO 49.37 -0.33 Dover DOV 94.01 -2.04 IllinoisToolWks ITW 156.35 -1.30 Novartis NVS 82.48 -0.46 Sprint S 6.17 0.18 Vedanta VEDL 19.94 -0.23 CDW CDW 67.16 -0.69 KLA Tencor KLAC 102.40 -4.68
Symantec SYMC 28.59 -0.44
AlexandriaRealEst ARE 126.10 -0.13
Brown-Forman A BF.A 56.90 0.41 DowDuPont DWDP 70.23 -0.58 Infosys INFY 14.98 0.06 NovoNordisk NVO 49.13 -1.14 s Square SQ 37.96 1.25 VeevaSystems VEEV 60.58 -1.30 CH Robinson CHRW 80.68 0.05 KraftHeinz KHC 79.41 -0.17 Synopsys SNPS 86.90 -0.17
Alibaba BABA 185.13 -0.77
Brown-Forman B BF.B 56.77 0.31 DrPepperSnap DPS 85.69 0.08 Ingersoll-Rand IR 84.41 -1.27 Nucor NUE 56.52 -1.18 StanleyBlackDck SWK 162.85 -2.87 Ventas VTR 64.81 0.16 CME Group CME 138.04 0.44 LKQ LKQ 36.93 0.02 TD Ameritrade AMTD 48.38 -0.25
Alleghany Y 585.54 5.13
BuckeyePtrs BPL 51.65 -0.75 DrReddy'sLab RDY 35.92 -0.32 Ingredion INGR 130.02 -1.94 t NuSTAREnergy NS 31.58 0.06 StarwoodProp STWD 21.87 0.17 Verizon VZ 45.07 -0.39 CSX CSX 50.23 -1.26 LamResearch LRCX 206.29 -4.95
T-MobileUS TMUS 56.00 -0.22
Allegion ALLE 82.08 -1.35 CadenceDesign CDNS 43.55 -0.52
Bunge BG 67.60 -0.29 s DukeEnergy DUK 89.63 0.40 ICE ICE 66.20 0.21 OGE Energy OGE 35.53 -0.20 StateStreet STT 90.77 -0.36 VistraEnergy VST 18.30 -0.58 LamarAdvertising LAMR 75.40 -1.55 TRowePrice TROW 92.72 -0.77
Allergan AGN 173.00 -2.01
BurlingtonStores BURL 98.73 1.22 DukeRealty DRE 28.93 -0.10 InterContinentl IHG 56.49 -0.46 ONEOK OKE 52.99 -0.11 s Statoil STO 21.01 0.16 VMware VMW 120.97 0.42 CaesarsEnt CZR 12.70 -0.35 LibertyBroadbandA LBRDA 88.13 1.04 TakeTwoSoftware TTWO 115.16 -2.49
AllianceData ADS 227.91 -1.70
CBD Pao CBD 22.56 -0.44 ENI E 33.88 -0.13 IBM IBM 150.30 0.23 OccidentalPetrol OXY 68.70 0.53 Steris STE 88.15 0.46 VornadoRealty VNO 75.26 1.02 Carlyle CG 21.50 0.56 LibertyBroadbandC LBRDK 88.56 0.83
Tesla TSLA 302.99 -1.40
AllianceBernstein AB 24.80 -0.10
CBRE Group CBG 40.81 -0.19 EOG Rscs EOG 104.78 0.45 IntlFlavors IFF 146.74 -0.79 Och-Ziff OZM 3.18 0.06 STMicroelec STM 23.40 -1.28 VoyaFinancial VOYA 41.33 -0.23 CboeGlobalMkts CBOE 114.13 0.71 LibertyGlobal C LBTYK 28.53 -0.30 TexasInstruments TXN 97.05 -1.39
AlliantEnergy LNT 44.10 0.03
CBS A CBS.A 58.10 0.81 EQT EQT 65.91 1.49 IntlPaper IP 54.93 -0.35 Olin OLN 36.19 -0.38 Stryker SYK 156.62 0.16 VulcanMaterials VMC 124.68 0.78 Celgene CELG 102.46 0.81 LibertyGlobal A LBTYA 29.60 -0.20
TractorSupply TSCO 61.88 1.24
AllisonTransm ALSN 43.17 -0.51
CBS B CBS 58.08 0.83 EQT Midstream EQM 71.25 -0.55 Interpublic IPG 18.78 0.16 Omnicom OMC 67.28 1.68 SumitomoMits SMFG 7.91 -0.09 WABCO WBC 145.55 -2.60 Cerner CERN 65.48 -0.80 LibertyLiLAC A LILA 22.19 0.03
Trimble TRMB 40.56 0.14
Allstate ALL 98.95 -0.14
CF Industries CF 37.14 -0.64 EastmanChem EMN 89.98 -0.61 InvitationHomes INVH 23.30 0.14 Oracle ORCL 49.24 -1.30 SunCommunities SUI 92.64 -0.52 WEC Energy WEC 68.23 0.06 CharterComms CHTR 341.20 3.30 LibertyLiLAC C LILAK 22.17 0.21 21stCenturyFoxB FOX 28.13 0.78
AllyFinancial ALLY 25.50 -0.22
CGI Group GIB 52.79 0.66 Eaton ETN 77.86 -1.19 IronMountain IRM 40.63 -0.14 Orange ORAN 16.63 0.04 SunLifeFinancial SLF 39.13 0.30 s W.P.Carey WPC 71.25 -0.07 CheckPointSftw CHKP 103.63 -1.73 LibertyQVC B QVCB 22.25 0.78 21stCenturyFoxA FOXA 28.70 0.61
AlticeUSA ATUS 21.80 -1.00
CIT Group CIT 45.08 -0.20 EatonVance EV 50.65 -0.46 IsraelChemicals ICL 4.11 -0.12 OrbitalATK OA 132.75 -0.18 SuncorEnergy SU 36.13 0.06 Wabtec WAB 75.38 -1.66 ChinaLodging HTHT 126.42 -1.38 LibertyQVC A QVCA 23.27 1.73 UltaBeauty ULTA 199.19 3.29
Altria MO 64.51 -0.08
s CMS Energy CMS 49.28 0.15 Ecolab ECL 130.25 -0.14 ItauUnibanco ITUB 12.76 -0.29 Orix IX 87.43 0.06 SunTrustBanks STI 56.80 -0.81 s Wal-Mart WMT 90.30 0.04 CincinnatiFin CINF 73.10 0.40 LibertyVenturesA LVNTA 56.29 -0.07 UltimateSoftware ULTI 196.91 -2.09
AlumofChina ACH 18.54 -0.73
CNA Fin CNA 54.53 0.44 Ecopetrol EC 12.03 0.42 JPMorganChase JPM 97.63 -0.01 Oshkosh OSK 83.86 -1.19 SynchronyFin SYF 32.09 0.02 WasteConnections WCN 69.04 0.07 Cintas CTAS 145.43 -2.56 LibertyFormOne C FWONK 37.43 -0.12
UniversalDisplay OLED 169.60 0.90
Ambev ABEV 6.17 -0.01
CNOOC CEO 142.48 0.98 EdisonInt EIX 80.34 0.14 JacobsEngineering JEC 60.28 -0.84 OwensCorning OC 82.46 0.01 Syngenta SYT 92.30 0.01 WasteMgt WM 81.40 -0.44 CiscoSystems CSCO 34.05 -0.45 LibertyFormOne A FWONA 35.67 -0.20 VEON VEON 3.79 -0.02
Ameren AEE 62.82 0.16
CPFLEnergia CPL 16.92 0.02 EdwardsLife EW 104.78 -0.46 JamesHardie JHX 15.56 0.91 PG&E PCG 55.95 0.12 Sysco SYY 54.02 0.04 Waters WAT 194.97 -1.21 CitrixSystems CTXS 84.03 -1.88 LibertyBraves A BATRA 22.47 -0.24 VeriSign VRSN 109.42 -0.55
AmericaMovil AMX 17.43 0.04
CRH CRH 35.83 -0.41 EmersonElectric EMR 61.48 -1.04 JanusHenderson JHG 35.36 0.71 PLDT PHI 33.37 0.49 TAL Education TAL 30.60 0.24 Watsco WSO 164.60 -0.92 Cognex CGNX 134.35 -1.04 LibertyBraves C BATRK 22.59 -0.25
VeriskAnalytics VRSK 90.82 -1.75
AmericaMovil A AMOV 17.36 0.14
CVS Health CVS 69.02 0.03 EnbridgeEnPtrs EEP 14.50 -0.01 J&J JNJ 140.35 -0.97 PNC Fin PNC 132.55 -0.74 TE Connectivity TEL 92.92 -0.78 WellCareHealth WCG 200.66 -2.19 CognizantTech CTSH 73.94 -0.44 LibertySirius A LSXMA 40.48 -0.41 VertxPharm VRTX 148.17 0.77
AmCampus ACC 42.37 -0.23
s Telus
CabotOil COG 28.56 0.74 Enbridge ENB 36.64 -0.15 JohnsonControls JCI 38.51 -2.49 POSCO PKX 71.43 -0.41 TU 37.48 0.39 WellsFargo WFC 54.00 -0.26 Coherent COHR 296.80 -0.44 LibertySirius C LSXMK 40.46 -0.36
Viacom B VIAB 24.78 0.48
AEP AEP 75.49 0.59
s CalAtlantic CAA 52.12 0.66 Encana ECA 12.69 0.09 JonesLangLaSalle JLL 145.25 0.76 PPG Ind PPG 115.13 -0.54 TIM Part TSU 17.97 -0.33 Welltower HCN 68.28 -0.47 Comcast A CMCSA 36.56 0.35 LincolnElectric LECO 86.50 -0.72 Viacom A VIA 30.25 0.55
AmericanExpress AXP 93.75 -1.38
CamdenProperty CPT 93.91 -0.31 EnelAmericas ENIA 10.55 -0.15 JuniperNetworks JNPR 25.35 0.56 PPL PPL 36.76 -0.16
TJX TJX 69.25 1.27 WestPharmSvcs WST 101.43 0.19 CommScope COMM 34.05 0.20 LogitechIntl LOGI 35.60 -0.57 Vodafone VOD 29.67 0.86
AmericanFin AFG 105.36 0.85
CampbellSoup CPB 45.64 -1.52 EnelChile ENIC 5.72 ... KAR Auction KAR 48.34 -0.84 PVH PVH 124.87 1.30
TaiwanSemi TSM 41.64 -0.79 WestarEnergy WR 54.52 -0.16 Copart CPRT 35.62 -0.28 LogMeIn LOGM 116.05 -2.45 t WPP WPPGY 85.31 -0.04
AmerHomes4Rent AMH 21.90 ...
CIBC CM 89.98 -0.05 EnelGenChile EOCC 26.12 0.09 KB Fin KB 51.34 PackagingCpAm PKG 109.23 -2.18
Tapestry TPR 40.16 0.08 WestAllianceBcp WAL 53.67 -0.95 CoStarGroup CSGP 299.29 -1.41 lululemon LULU 64.01 2.37 WalgreensBoots WBA 69.54 0.64
AIG AIG 62.24 0.57 -0.49
CanNtlRlwy CNI 80.65 0.25 EnergyTrfrEquity ETE 17.51 -0.28 TargaResources TRGP 44.36 0.69 t WesternGasEquity WGP 37.36 -0.13 Costco COST 169.11 0.06 MKS Instrum MKSI 104.20 -3.65
s Weibo
AmerTowerREIT AMT 151.82 -0.90 KKR KKR 19.50 -0.26 PaloAltoNtwks PANW 139.00 -9.46 WB 109.29 0.32
CanNaturalRes CNQ 36.45 -0.10 EnergyTransfer ETP 16.47 -0.30 Target TGT 59.90 1.53 WesternGasPtrs WES 46.18 -0.38 Ctrip.com CTRP 45.90 -0.05 MarketAxess MKTX 174.50 -4.25 WesternDigital WDC 87.63 0.51
AmerWaterWorks AWK 89.31 -0.52 KT KT 14.23 0.06 ParkHotels PK 29.12 -0.17
CanPacRlwy CP 176.28 1.91 Entergy ETR 86.42 0.18 TataMotors TTM 33.06 -0.63 WesternUnion WU 20.08 0.33 CypressSemi CY 16.73 -0.18 Marriott MAR 118.81 -1.17 WillisTwrsWatson WLTW 161.50 0.51
Amerigas APU 44.30 -0.87 KSCitySouthern KSU 105.25 -0.49 ParkerHannifin PH 182.34 -1.87
Canon CAJ 38.54 -0.22 EnterpriseProd EPD 24.90 ... TechnipFMC FTI 29.36 0.22 s WestlakeChem WLK 93.40 -0.55 CyrusOne CONE 62.28 -0.95 MarvellTech MRVL 20.13 -0.02
Ameriprise AMP 159.05 -0.94 Kellogg K 63.28 0.46 ParsleyEnergy PE 27.19 0.09 Workday WDAY 106.15 -4.73
CapitalOne COF 88.11 -0.86 Equifax EFX 108.95 1.75 TeckRscsB TECK 21.45 -0.39 WestpacBanking WBK 25.20 0.16 DISH Network DISH 50.30 1.57 MatchGroup MTCH 28.56 -1.03 WynnResorts WYNN 153.59 0.80
AmerisourceBrgn ABC 75.27 0.26 KeyCorp KEY 17.85 -0.08 Pearson PSO 9.11 0.01
CardinalHealth CAH 60.56 -0.43 EquityLife ELS 89.80 0.10 TelecomArgentina TEO 33.25 -0.91 WestRock WRK 59.03 0.12 DentsplySirona XRAY 65.56 1.05 MaximIntProducts MXIM 53.81 -1.52 Xilinx XLNX 70.76 -2.86
Ametek AME 68.01 -0.04 KeysightTechs KEYS 44.48 -0.91 PembinaPipeline PBA 36.10 -0.17
Carlisle CSL 108.99 -1.15 s EquityResdntl EQR 69.88 -0.49 TelecomItalia TI 8.43 -0.04 Weyerhaeuser WY 36.27 -0.14 DiamondbackEner FANG 111.03 0.99 MelcoResorts MLCO 25.23 0.01 Yandex YNDX 31.92 -0.80
Amphenol APH 86.72 -1.02 KilroyRealty KRC 74.22 0.03 Pentair PNR 68.17 -1.00
CarMax KMX 72.18 -1.26 EssexProp ESS 256.95 -1.84 TelecomItalia A TI.A 6.87 -0.01 WheatonPrecMetals WPM 20.91 -0.25 DiscoveryComm B DISCB 22.25 0.25 MercadoLibre MELI 266.41 6.31 ZebraTech ZBRA 104.43 -2.18
AnadarkoPetrol APC 51.40 0.24 KimberlyClark KMB 113.29 0.06 PepsiCo PEP 111.48 -0.52
Carnival CCL 66.18 0.25 EsteeLauder EL 123.78 0.70 TeledyneTech TDY 180.33 -5.17 Whirlpool WHR 162.74 -0.03 DiscoveryComm A DISCA 17.17 0.07 MicrochipTech MCHP 90.81 -2.00 Zillow C Z
Andeavor ANDV107.00 -4.14 KimcoRealty KIM 19.07 0.14 PerkinElmer PKI 71.46 -0.02 40.38 -0.66
Carnival CUK 66.01 0.27 EverestRe RE 230.79 2.43 Teleflex TFX 257.14 -2.45 Williams WMB 28.67 0.29 DiscoveryComm C DISCK 16.10 0.11 MicronTech MU 43.50 -0.59
AB InBev BUD 118.20 0.05 KinderMorgan KMI 17.91 -0.09 Perrigo PRGO 87.99 6.79 Zillow A ZG 40.43 -0.72
Caterpillar CAT 135.34 -1.95 EversourceEner ES 64.68 0.05 TelefonicaBras VIV 15.14 -0.11 WilliamsPartners WPZ 37.54 1.02 s DollarTree DLTR 94.38 0.48 Microsemi MSCC 52.84 -1.19
AnnalyCap NLY 11.24 -0.08 Knight-Swift KNX 38.65 -0.26 PetroChina PTR 71.35 0.35 ZionsBancorp ZION 43.97 -0.57
Celanese A CE 104.93 -1.35 Exelon EXC 41.14 -0.18 Telefonica TEF 10.09 0.03 Wipro WIT 5.07 -0.02 E*TRADE ETFC 43.08 -0.40 Microsoft MSFT 84.09 -0.47
AnteroResources AR 19.77 0.28 Kohl's KSS 41.17 0.38 PetroleoBrasil PBR 10.84 -0.07
Cemex CX 8.24 0.06 ExtraSpaceSt EXR 85.45 -0.56 TelekmIndonesia TLK 30.51 0.48 WooriBank WF 42.01 0.32 EXACT Sci EXAS 59.18 -1.33 t Middleby MIDD 108.72 -3.07 NYSE AMER
Anthem ANTM 215.98 -0.89 KoninklijkePhil PHG 39.56 -0.66 PetroleoBrasilA PBR.A 10.35 -0.07
CenovusEnergy CVE 11.39 0.02 ExxonMobil XOM 83.97 0.50 Tenaris TS 30.13 0.24 Wyndham WYN 106.94 -2.15 EastWestBancorp EWBC 56.77 -0.56 Mondelez MDLZ 41.35 -0.25
Aon AON 143.46 2.59 KoreaElcPwr KEP 17.28 0.01 Pfizer PFE 35.20 0.18
Centene CNC 93.28 0.13 FMC FMC 92.16 -1.08 Teradyne TER 43.64 -0.25 XPO Logistics XPO 71.06 -2.49 eBay EBAY 35.69 -1.32 s MonsterBeverage MNST 58.68 0.68 s CheniereEnergy LNG 49.63 -0.80
Apache APA 45.24 0.73 Kroger KR 21.95 0.10 PhilipMorris PM 102.46 -0.63 s XcelEnergy XEL 50.51 0.26 ElbitSystems ESLT 146.38 -1.62 Mylan
CenterPointEner CNP 29.81 -0.14 s FactSet FDS 196.24 0.94 TevaPharm TEVA 11.85 0.02 MYL 38.08 0.84 CheniereEnerPtrs CQP 27.48 -0.77
ApartmtInv AIV 45.21 -0.15 Kyocera KYO 70.73 -0.99 Phillips66 PSX 94.42 -0.13
CentraisElBras EBR 6.35 -0.20 FederalRealty FRT 131.44 2.57 Textron TXT 54.40 -0.45 Xerox XRX 29.27 -0.10 ElectronicArts EA 111.89 -2.26 NXP Semi NXPI 115.31 -1.03 CheniereEnHldgs CQH 26.65 -0.33
ApolloGlobalMgmt APO 30.50 -0.64 LATAMAirlines LTM 13.30 -0.16 PinnacleFoods PF 53.76 -0.48
t CenturyLink CTL 15.48 -0.78 FedEx FDX 217.44 -3.06 ThermoFisherSci TMO 191.89 -1.97 Xylem XYL 66.28 -0.27 Equinix EQIX 484.86 -8.12 Nasdaq NDAQ 73.73 0.99 ImperialOil IMO 32.00 0.44
s AquaAmerica WTR 36.17 -0.39 L Brands LB 48.25 0.87 PinnacleWest PNW 89.39 -0.40
Aramark ARMK 42.75 -0.58 Chemours CC 51.11 0.10 Ferrari RACE 109.44 -3.36 LG Display LPL 13.28 0.21 PioneerNatRscs PXD 161.14 1.57
ArcelorMittal MT 28.15 -0.85 Chevron CVX 117.24 0.57 FiatChrysler FCAU 17.11 -0.38 LINE LN 43.53 -0.33 PlainsAllAmPipe PAA 21.35 0.08
ArcherDaniels ADM 39.60 -0.20 ChinaEastrnAir CEA 24.89 -0.22 FibriaCelulose FBR 16.07 0.93 L3 Tech LLL 184.76 -2.29 PlainsGP PAGP 21.65 -0.08
Arconic ARNC 24.45
s AristaNetworks ANET 213.55
-0.33
-0.64
ChinaLifeIns LFC 17.46 0.05
ChinaMobile CHL 50.98 -0.10
s FidelityNatlFin FNF 38.76
FNFV Group FNFV 17.45
1.11
...
LabCpAm LH 152.09
LambWeston LW 51.62
0.30
-0.77
PolarisIndustries PII 116.59
Potash POT 19.16
-0.09
0.02
Dividend Changes
ChinaPetrol SNP 74.87 0.03 FidelityNtlInfo FIS 92.52 0.87 LasVegasSands LVS 67.42 -0.48 s Praxair
ArrowElec ARW 78.59 -0.07
ChinaSoAirlines ZNH 37.05 -0.17 58.com WUBA 67.11 -0.29 Lazard LAZ 48.16 0.72
PX 148.46
PrincipalFin PFG 68.42
-1.51
-0.07
Dividend announcements from November 9.
AstraZeneca AZN 33.11 -0.22
Athene ATH 48.77 -0.23 ChinaTelecom CHA 49.76 -0.47 FirstAmerFin FAF 54.85 0.10 Lear LEA 174.53 -0.37 Procter&Gamble PG 87.78 0.20 Amount Payable / Amount Payable /
s AtmosEnergy ATO 89.79 0.55 ChinaUnicom CHU 15.07 -0.07 FirstData FDC 16.75 -0.09 Leggett&Platt LEG 45.88 0.16 Progressive PGR 50.64 0.09 Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
Autohome ATHM 63.15 -1.45 Chipotle CMG 275.00 1.10 FirstRepBank FRC 90.99 -0.98 Leidos LDOS 61.65 -0.57 Prologis PLD 66.48 -0.24
Autoliv ALV 123.40 -1.67 Chubb CB 151.64 1.54 s FirstEnergy FE 33.60 -0.13 s Lennar A LEN 58.93 1.37 PrudentialFin PRU 111.95 -0.49 Increased Amer Cap Senior Floating ACSF 10.9 .097 M Feb02 /Jan23
AutoZone AZO 605.97 9.94 ChunghwaTelecom CHT 33.90 -0.14 FleetCorTech FLT 177.00 1.05 s Lennar B LEN.B 49.88 0.97 Prudential PUK 48.42 0.19 Garrison Capital GARS 13.3 .28 Q Dec22 /Dec08
4.65% Fltg. Rate STRATS GJO 2.1 .0387 /.03792 M Nov15 /Nov14
Avalonbay AVB 187.47 0.78 Church&Dwight CHD 44.00 -0.45 Fluor FLR 47.05 -0.57 LennoxIntl LII 188.90 -4.30 PublicServiceEnt PEG 50.27 0.07
Avangrid AGR 50.79 -0.36 Cigna CI 197.52 -2.98 FomentoEconMex FMX 86.82 0.18 LeucadiaNatl LUK 26.06 0.03 PublicStorage PSA 211.37 -1.82
Aaron's Inc AAN 0.3 .03 /.0275 Q Jan02 /Dec13 Foreign
AveryDennison AVY 105.76 -1.99 CimarexEnergy XEC 125.76 0.42 FordMotor F 12.04 -0.02 s LibertyProperty LPT 44.74 -0.01 s PulteGroup PHM 31.07 0.16 Acadia Realty Trust AKR 3.7 .27 /.26 Q Jan12 /Dec29 Autohome ADR ATHM .76 Jan16 /Jan04
AxaltaCoating AXTA 32.08 -0.72 Citigroup C 72.43 0.09 ForestCIty A FCE.A 24.75 -0.31 EliLilly LLY 83.99 -0.02 Qudian QD 25.47 -0.54 Alon USA Partners ALDW 12.5 .43 /.35 Q Nov22 /Nov13 CABCO Tr GS Cap Fltg Rate GYB 3.6 .20764 Q Nov15 /Nov14
BB&T BBT 46.75 -0.67 CitizensFin CFG 36.81 -0.50 Fortis FTS 37.95 0.20 LincolnNational LNC 74.33 -1.00 QuestDiag DGX 93.02 -0.13 Atmos Energy ATO 2.2 .485 /.45 Q Dec11 /Nov27 Camtek CAMT 9.4 .14 Q Nov30 /Nov22
BCE BCE 47.97 0.30 Clorox CLX 130.68 -0.37 Fortive FTV 72.63 -0.14 LionsGate A LGF.A 29.30 0.21 QuintilesIMS Q 103.51 -1.21 Fidelity D&D Bancorp FDBC 2.5 .24 /.20667 Q Dec08 /Nov20
Coca-Cola KO 46.23 0.05
Cott Cp COT 1.6 .06 Q Dec08 /Nov28
BHPBilliton BHP 42.91 -0.87 FortBrandsHome FBHS 64.00 -0.12 LionsGate B LGF.B 28.38 -0.02 RELX RENX 22.38 0.04 Inter Parfums IPAR 1.9 .21 /.17 Q Jan15 /Dec29
BHPBilliton BBL 37.73 -1.12 Coca-Cola Euro CCE 39.57 0.04 Franco-Nevada FNV 84.48 0.42 LiveNationEnt LYV 44.85 -0.60 RELX RELX 23.07 -0.02 Encana ECA 0.5 .015 Q Dec29 /Dec15
BP BP 40.72 Coca-Cola Femsa KOF 68.81 0.90 FranklinRscs BEN 41.33 -0.56 LloydsBanking LYG 3.57 -0.01 RPM RPM 51.40 -0.63
Six Flags Entertainment SIX 4.3 .70 /.64 Q Dec11 /Nov30 Gerdau ADR GGB 0.8 .00924 Dec08 /Nov24
-0.08
BRF BRFS 13.17 -0.08 Colgate-Palmolive CL 72.91 -0.36 Freeport-McMoRan FCX 14.72 -0.14 LockheedMartin LMT 311.08 -4.56 RSP Permian RSPP 37.42 0.89 STRATS Dom Res Ser 05-06 GJP 3.4 .0637 /.06164 M Nov15 /Nov14 Manulife Financial MFC 3.0 .16063 Q Dec19 /Nov21
t BT Group BT 16.58 -0.10 ColonyNorthStar CLNS 12.71 0.36 FreseniusMed FMS 48.81 0.13 Loews L 49.34 -0.24 RalphLauren RL 86.30 0.87 Osisko Gold Royalties OR 1.3 .03904 Q Jan15 /Dec29
BWX Tech BWXT 60.19 -0.34 Comerica CMA 75.28 -0.86 GGP GGP 22.00 0.24 Lowe's LOW 78.08 -0.01 RaymondJames RJF 83.61 -0.56 Reduced
Pan American Silver PAAS 0.7 .025 Q Dec01 /Nov20
BakerHughes BHGE 32.74 -0.10 SABESP SBS 8.88 -0.07 Gallagher AJG 63.65 0.12 LyondellBasell LYB 104.19 -1.67 Raytheon RTN 184.94 -2.89 ECA Marcellus Trust I ECT 11.9 .073 /.10 Q Nov30 /Nov17 Sun Life Financial SLF 3.6 .35651 Q Dec29 /Nov29
Ball BLL 40.32 -0.42 ConagraBrands CAG 33.96 -0.35 Gap GPS 26.35 0.68 M&T Bank MTB 158.61 -2.60 RealtyIncome O 56.26 0.09
BancoBilbaoViz BBVA 8.35 -0.01 ConchoRscs CXO 144.43 -0.63 Gartner IT 117.34 -1.47 MGM Resorts MGM 32.75 -0.31 RedHat RHT 123.50 -0.42 Initial TIM Participacoes ADR TSU .1199 Dec01 /Nov17
BancodeChile BCH 90.49 -0.66 ConocoPhillips COP 53.53 0.01 Gazit-Globe GZT 9.35 -0.02 MPLX MPLX 34.93 -0.24 RegencyCtrs REG 66.32 0.56
BancoMacro BMA 121.03 -3.33 ConEd ED 87.66 -0.20 GeneralDynamics GD 198.87 -3.75 MSCI MSCI 127.88 0.78 RegionsFin RF 15.28 -0.08
Annaly Capital Pfd. F NLYpF .72396 Dec29 /Dec01 Special
BcoSantChile BSAC 30.85 -0.22 ConstBrands A STZ 218.13 0.50 GeneralElec GE 19.99 -0.13 Macerich MAC 62.41 4.31 ReinsuranceGrp RGA 151.02 0.32 Knight-Swift Transport KNX .06 Dec27 /Dec01 B. Riley Financial RILY 2.0 .04 Nov30 /Nov22
BancoSantander SAN 6.46 -0.02 ContinentalRscs CLR 46.32 1.43 GeneralMills GIS 51.78 -0.46 MacquarieInfr MIC 68.77 0.79 RepublicServices RSG 63.77 -0.11 Cohen & Steers CNS 2.6 1.00 Dec13 /Nov22
BanColombia CIB 38.84 0.68 Cooper COO 231.95 1.47 GeneralMotors GM 42.11 ... MagellanMid MMP 67.97 -0.63 ResMed RMD 82.72 0.53 Funds and investment companies Fidelity D&D Bancorp FDBC 2.5 .02 Dec08 /Nov20
BankofAmerica BAC 26.49 -0.30 Corning GLW 31.79 -0.43 Genpact G 31.14 -0.06 MagnaIntl MGA 52.91 -0.49 RestaurantBrands QSR 64.94 -0.57 Alerian MLP ETF AMLP 7.7 .2052 Q Nov15 /Nov10
BankofMontreal BMO 77.78 -0.09 Coty COTY 16.80 2.04 GenuineParts GPC 85.56 -0.46 Manpower MAN 123.63 -1.91 s RiceEnergy RICE 29.66 0.53 Amer Cap Senior Floating ACSF 10.9 .097 M Dec05 /Nov24 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
BankNY Mellon BK 50.82 -0.40 Credicorp BAP 208.80 2.37 Gerdau GGB 3.19 -0.06 s ManulifeFin MFC 21.67 1.00 RioTinto RIO 49.12 -1.38
s BkNovaScotia BNS 65.94 0.14 CreditSuisse CS 16.03 -0.12 Gildan GIL 29.97 0.26 MarathonOil MRO 15.78 0.03 RobertHalf RHI 52.55 -0.19
Amer Cap Senior Floating ACSF 10.9 .097 M Jan04 /Dec22 S2:1: stock split and ratio; SO: spin-off.
t Barclays BCS 9.44 ... CrestwoodEquity CEQP 23.60 -0.40 t GlaxoSmithKline GSK 35.77 -0.21 MarathonPetrol MPC 61.66 -1.56 Rockwell ROK 189.81 -3.97

Mutual Funds | WSJ.com/fundresearch Net YTD Net YTD

New Highs and Lows | WSJ.com/newhighs Stock
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
Fund
OakmrkInt
NAV Chg %Ret Fund
28.69 -0.14 26.4 MuIntAdml
NAV Chg %Ret
14.22 -0.01 4.9
UnvlSecInstr UUU 1.35 -3.5 AmTrustFinSvcs AFSI 10.86 -11.1 Explanatory Notes Data provided by Old Westbury Fds MuLTAdml 11.73 -0.02 6.3
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE Andersons ANDE 30.60 -0.1
LrgCpStr 14.91 -0.05 16.2 MuLtdAdml 10.97 ... 2.6
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
Nasdaq highs - 68 AquinoxPharm AQXP 10.68 -2.0
at least $500 million each. NAV is net asset value. Percentage performance figures
Oppenheimer Y
DevMktY 42.44
MuShtAdml 15.78
-0.25 32.7 PrmcpAdml r135.11 -0.88
... 1.4
24.1
Astrotech ASTC 2.24 -4.8
Aegion AEGN 27.48 0.3 are total returns, assuming reinvestment of all distributions and after subtracting IntGrowY 42.89 -0.36 23.7 REITAdml r 120.17 +0.09 5.6
BisonCapAcqnRt BCACR 0.26 -6.4
Thursday, November 9, 2017 AlignTech ALGN 254.19 -1.2
BlackRidgeAcqn BRACU 9.97 -0.5
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. SmCapAdml 68.17 -0.37 11.4
52-Wk % 52-Wk % 52-Wk %
AltairEngg ALTR 20.62 0.2
BlackRidgeAcqnWt BRACW 0.25 -1.7
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date P STBondAdml 10.43 ... 1.4
AxoGen AXGN 25.00 3.3 return. 3-YR%RET is trailing three-year return annualized. STIGradeAdml 10.68 ... 2.3
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg BravoBrioRestr BBRG 1.65 -8.6 Parnassus Fds
BisonCapAcqn BCACU 10.40 0.7
BroadwindEnergy BWEN 2.59 -0.9 e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e ParnEqFd 44.10 -0.22 13.2 TotBdAdml 10.78 -0.01 3.4
XcelEnergy XEL 50.57 0.5 ChinaInfoTech CNIT 1.43 4.4
CAS MedSys CASM 0.61 -15.1 and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, TotIntBdIdxAdm 21.96 -0.04 2.2
NYSE highs - 73 NYSE Arca highs - 30 ChinaRecycling CREG 6.74 195.3
CHF Solutions CHFS 4.51 -6.0 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
PIMCO Fds Instl
AllAsset ... NA TotIntlAdmIdx r 30.02 -0.15 24.3
Aegon AEG 6.21 6.2
NYSE lows - 70 CSAxela3xLgBrent UBRT 154.99 4.0
CitiusPharmWt CTXRW
CoastwayBancorp CWAY
1.25 -9.6
21.00 1.5
CUI Global CUI 2.48 -5.7 apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not TotRt
NA
10.29 -0.01 5.0 TotStAdml 64.52 -0.24 16.6
AlonUSAPartners ALDW 14.15 1.7 AES AES 10.28 -2.0 DirexChinaBl3 YINN 34.94 0.3 CapitolFedFin CFFN 13.14 -0.2 available due to incomplete price, performance or cost data. NE-Not released by Lipper; PIMCO Funds A TxMIn r 14.20 -0.08 23.4
CraftBrewAlliance BREW 19.56 8.2
ApolloGlMgmtPfdA APOpA 26.47 0.1 AZZ AZZ 44.15 -2.4 DirexRealEstBl3 DRN 24.19 0.3 Descartes DSGX 29.90 0.3
CECO Env CECE 5.40 4.4 data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. IncomeFd NA ... NA ValAdml 39.65 -0.14 11.5
AquaAmerica WTR 36.62 -1.1 Adecoagro AGRO 9.32 -4.1 FidelityRealEst FREL 25.27 0.1 Ceragon CRNT 1.70 -3.4 PIMCO Funds D WdsrllAdml 68.95 -0.27 11.7
DollarTree DLTR 95.09 0.5
AristaNetworks ANET 217.92 -0.3 AnixterIntl AXE 63.25 -1.1 FidelityMSCIUtils FUTY 36.29 ... Cherokee CHKE 1.66 -4.1 WellsIAdml 65.34 -0.14 8.2
EducDev EDUC 13.20 3.7 IncomeFd NA ... NA
ArmadaHoffler AHH 15.00 0.1 Ardagh ARD 19.84 -0.9 FrankFTSEAustralia FLAU 25.52 1.4 CleanDiesel CDTI 1.35 -5.5 Thursday, November 9, 2017 WelltnAdml 73.81 -0.20 11.5
EnsignGroup ENSG 23.96 1.1 PIMCO Funds Instl
AtmosEnergy ATO 90.39 0.6 Compugen CGEN 2.50 -7.1
AvonProducts AVP 1.89 -5.9 FrankFTSE HK FLHK 25.73 0.9 FT CanadaAlpha FCAN 25.96 0.7 Net YTD Net YTD Net YTD IncomeFd NA ... NA WndsrAdml 79.09 -0.30 15.2
BkNovaScotia BNS 65.99 0.2 BT Group BT 16.44 -0.6 GlbX FTSE SE Asia ASEA 16.40 2.3 ConsldComm CNSL 14.20 -3.8 Fund NAV Chg %Ret Fund NAV Chg %Ret Fund NAV Chg %Ret VANGUARD FDS
Five9 FIVN 27.81 1.4 PIMCO Funds P
Bio-RadLab A BIO 268.40 0.4 9.35 ... DBVTechnologies DBVT 21.84 1.6
Barclays BCS GlbXSciBetaAsiaXJ SCIX 26.51 0.1 FullHouse FLL 3.59 5.5
DelMarPharm DMPI 0.78 -3.8 A TotRetBdI 10.69 ... 3.8 CA TF A p 7.50 -0.01 5.9 IncomeP NA ... NA DivdGro 26.39 -0.06 14.4
BrookfieldDTLAPf DTLAp 30.79 -1.2 CBL AssocPfdE CBLpE 21.80 0.4 GuggChinaTech CQQQ 63.29 0.3 HlthCare r 210.03 -0.70 16.9
GRAVITY GRVY 78.82 -4.3 Fed TF A p 12.00 -0.02 3.5 Price Funds
EGLT 0.85 -2.4
CMS Energy
CalAtlantic
CMS
CAA
49.41
52.36
0.3
1.3
CNX Coal CNXC 13.15 -0.7 GuggS&P500EWRlEst EWRE 28.51 0.1 GSV Capital GSVC 6.35 -1.6
Egalet
Energous WATT 6.91 14.3
American Century Inv E IncomeA p 2.36 ... 7.0 BlChip 97.19 -0.43 33.9 INSTTRF2020 22.55 -0.06 12.0
CenturyLink CTL 14.60 -4.8
CanadaGoose GOOS 25.30 14.1
IQ AustraliaSC KROO 19.03 0.9 GladstoneInvt GAIN 11.15 -0.3
FTD FTD 8.75 2.9
Ultra 45.08 -0.17 29.2 Edgewood Growth Instituti RisDv A p 60.79 -0.30 16.5 CapApp 29.72 -0.03 13.5 INSTTRF2025 22.81 -0.07 13.4
CenturyLinkNts CTBB 21.18 ... IQ50%HdgFTSEJapan HFXJ 22.41 0.2 GoldenEnt GDEN 31.59 7.4 American Funds Cl A INSTTRF2030 23.00 -0.08 14.7
Carters CRI 102.13 1.6 Finisar FNSR 18.10 -2.4 EdgewoodGrInst 29.49 -0.13 32.8 FrankTemp/Franklin C EqInc 34.72 -0.08 11.9
Ciena CIEN 19.49 -4.5 iPathAIGCarbon GRN 10.20 -7.9
ChinaFund CHN 21.84 -1.5
Groupon GRPN 5.67 0.4
FT SMID CapRising SDVY 19.62 -0.4 AmcpA p 31.88 -0.11 18.8 Income C t 2.39 ... 6.9 EqIndex 69.49 -0.25 17.1 INSTTRF2035 23.20 -0.08 16.0
CobaltIntlEner CIE 0.47 -16.1
CLSelPrTechGrFd STK 24.58 -1.7 Volaris VLRS 9.71 -2.7
iShCurrHdgMSCIAus HAUD
iShU.S.RealEstate IYR
24.39
82.88
2.5
...
H&E Equipment HEES
HLG
34.46 0.2
39.58 10.6
ForescoutTechs FSCT 24.01 -2.4 AMutlA p 41.19 -0.10 13.5 F FrankTemp/Temp A Growth 70.16 -0.29 31.8 INSTTRF2040 23.39 -0.09 17.3
74.26 +0.08 25.7 INSTTRF2045 23.53 -0.09
HailiangEduc BalA p 27.48 -0.08 12.4 Federated Instl GlBond A p NA ... NA 17.8
Cooper-Standard CPS 119.81 1.4 CustomersBancorp CUBI 24.83 -1.3 ForwardPharma FWP 4.40 -2.4 HelSci
iShMSCICanadaETF EWC 29.45 0.2 HalozymeTherap HALO 19.37 -2.5
CorEnergyInfr CORR 37.48 -0.1 DieboldNixdorf DBD 17.77 0.3 HawaiianHoldings HA 32.40 -0.6 BondA p 12.95 -0.01 3.4 StraValDivIS 6.42 +0.01 11.8 Growth A p NA ... NA InstlCapG 39.54 -0.12 35.2 IntlVal 39.50 -0.10 24.4
iShMSCIPacificxJp EPP 47.72 ... HollysysAuto HOLI 23.44 1.7
DelekUS DK 29.16 -1.9 DoverDowns DDE 0.92 ... Hawkins HWKN 34.20 0.7 CapIBA p 63.00 -0.10 12.0 Fidelity FrankTemp/Temp Adv IntlStk 19.22 -0.09 25.7 LifeGro 33.17 -0.11 16.1
iShMSCISingapore EWS 25.88 0.1 InfinityPropCas IPCC 106.13 2.5 LifeMod 26.95 -0.08 12.7
DukeEnergy DUK 89.74 0.4 EastmanKodak KODK 3.58 -28.8
HomeBancShares HOMB 20.82 -0.5 CapWGrA 52.42 -0.17 21.4 500IdxInst 90.51 -0.32 17.4 GlBondAdv p NA ... NA IntlValEq 15.24 -0.06 19.0
iShChinaLC FXI 47.00 0.1 Intricon IIN 14.45 3.6 PrmcpCor 26.74 -0.18 20.6
EtnVncTxAdvDiv EVT 22.68 0.8 EastmanKodakWt KODK.WS 0.02 -2.8
HoughtonMifflin HMHC 9.05 -2.1 EupacA p 57.19 -0.19 29.4 500IdxInstPrem 90.51 -0.32 17.4 MCapGro 91.44 -0.51 21.3
EquityResdntl EQR 70.46 -0.7 EdgewellPersonal EPC 55.94 -3.1
KraneBoseraChinaA KBA
ProShHdgReplic HDG
34.99
45.97
0.4
-0.2
JackHenry JKHY
JensynAcqn Rt JSYNR
115.34 0.1
0.48 51.2
HudsonTech HDSN 5.70 7.8 FdInvA p 63.62 -0.35 19.1 500IdxPrem 90.51 -0.32 17.4 H MCapVal 31.35 +0.09 7.9 SelValu r 33.17 -0.13 15.3
FactSet FDS 196.57 0.5 INC Research INCR 40.05 -28.4 GwthA p 51.59 -0.24 22.7 ExtMktIdxPrem r 62.08 -0.31 13.1 Harbor Funds N Horiz 54.93 -0.32 26.8 STAR 27.18 -0.10 15.6
EldoradoGold EGO 1.17 5.8 ProShXinhuaChina25 XPP 84.00 -0.1 LigandPharm LGND 149.31 -1.5
FidelityNatlFin FNF 38.76 2.9 EnvisionHlthcr EVHC 24.62 3.8 ProShrUltraRE URE 68.18 ... MGPIngredients MGPI 75.87 0.7
Infinera INFN 6.34 -26.9 HI TrA p 10.38 -0.03 5.9 IntlIdxPrem r 43.23 -0.22 22.5 CapApInst 76.01 -0.52 34.2 N Inc 9.50 -0.01 3.7 STIGrade 10.68 ... 2.2
FirstEnergy FE 33.99 -0.4 InflaRx IFRX 14.54 0.1 ICAA p 41.25 -0.14 15.2 SAIUSLgCpIndxFd 13.87 -0.05 17.3 IntlInst r 69.82 -0.31 19.5 OverS SF r 11.37 -0.07 25.4 TgtRe2015 15.94 -0.03 9.9
Evertec EVTC 13.25 -6.3 RealEstSectorSPDR XLRE 33.97 ... MMACapitalMgmt MMAC 26.60 1.9
GeoPark GPRK 9.90 2.9
4.61 -0.8
InfoSonics IFON 1.44 -6.5 IncoA p 23.41 -0.10 10.4 TMktIdxF r 74.92 -0.29 16.6 Harding Loevner R2020 23.21 -0.06 13.7 TgtRe2020 31.63 -0.09 11.9
FirstBanCorp FBP SPDRS&PHlthCareEqp XHE 64.73 0.5 MonsterBeverage MNST 59.88 1.2
GlobusMedical GMED 35.00 7.5
FT SrFR Incm FCT 12.90 -0.6
Innodata INOD 0.90 -9.5 N PerA p 44.98 -0.25 27.3 TMktIdxPrem 74.91 -0.29 16.6 IntlEq NA ... NA R2025 17.90 -0.05 15.5
TgtRe2025 18.54 -0.06 13.4
USDieselHeatingOil UHN 18.42 1.6 Nathan's NATH 93.90 1.1
GreenDot GDOT 65.88 0.6
FT SrFR2022 FIV 9.15 0.5 NektarTherap NKTR 32.60 4.8
InovioPharma INO 4.40 -16.9
NEcoA p 47.66 -0.15 32.6 USBdIdxInstPrem 11.61 -0.01 3.3 R2030 26.37 -0.09 17.0
TgtRe2030 33.49 -0.11 14.7
VanEckRareEarth REMX 28.59 0.9
Haemonetic HAE 55.10 1.3
GabelliGlbSmRt GGZr 0.24 -5.7 VanEckUranium NLR 54.15 0.1 Neogen NEOG 82.49 0.5
iShMSCIQatarCapped QAT
iSh1-3YTreasuryBd SHY
14.25 -1.1
84.16 ...
NwWrldA 66.76 -0.07 29.8 Fidelity Advisor I I R2035 19.29 -0.06 18.4
TgtRe2035 20.57 -0.07 16.0
HanoverIns THG 107.16 0.5
GenesisHealthcare GEN 0.84 9.7 NetApp NTAP 47.20 2.1 SmCpA p 56.22 -0.22 22.3 NwInsghtI 33.37 -0.13 25.0 R2040 27.71 -0.10 19.4
TgtRe2040 35.43 -0.13 17.3
HeritageInsurance HRTG 16.98 1.7 XtrkrsMSCIAllChina CN 37.78 -0.1 LaureateEduc LAUR 11.34 -13.7 Invesco Funds A
GlaxoSmithKline GSK 35.57 -0.6 NewsCorp A NWSA 14.56 1.6 TxExA p 13.06 -0.02 5.3 Fidelity Freedom Value 38.77 -0.12 15.2
TgtRe2045 22.25 -0.09 17.8
DR Horton DHI 46.78 1.3 LifePointHealth LPNT 44.55 -0.4 EqIncA 11.27 -0.02 7.9
TgtRe2050 35.80 -0.14 17.8
HostHotels HST 20.23 -0.9
HeclaMining HL
HighlandFROpps HFRO
4.03 -9.1
15.17 0.6
NYSE Arca lows - 18 Overstock
PAM Transport PTSI
OSTK 52.95 30.7
33.94 -3.9
MartinMidstream MMLP 14.15 -4.0
WshA p 45.40 -0.18 15.1 FF2020 16.73 -0.03 13.4
J
PRIMECAP Odyssey Fds
TgtRetInc 13.59 -0.03 7.3
95.50 0.2 MaxwellTechs MXWL 4.29 -3.6 FF2025 14.47 -0.04 14.3 Growth r 35.85 -0.18 25.2
IDACORP
Invacare
IDA
IVC 17.95 4.7
JustEnergy JE 4.70 -9.1 AIPoweredEquity AIEQ 24.30 -0.2 PatriotNatlBncp PNBK 17.80 3.2
MeetGroup MEET 2.30 -32.2
B FF2030 18.12 -0.06 16.7 John Hancock Class 1 Principal Investors
TotIntBdIxInv 10.98 -0.02 2.2
NCR NCR 29.92 3.7 CSAxela3xInvBrent DBRT 60.41 -6.1 PennNational PENN 27.25 0.6 WellsI 26.97 -0.06 8.1
KB Home KBH 28.56 0.6 Middleby MIDD 108.27 -2.7 Baird Funds Freedom2020 K 16.73 -0.04 NS LSBalncd 15.96 -0.04 13.0 DivIntlInst 13.94 -0.11 26.7
NationalGrid NGG 59.64 -2.2 DirexEMBdBull3X EMBU 25.04 -0.7 Perceptron PRCP 10.13 -0.5 Welltn 42.74 -0.11 11.5
Koppers KOP 51.80 7.8 MinervaNeurosci NERV 4.95 -2.0 AggBdInst 10.90 -0.02 4.0 Freedom2025 K 14.47 -0.04 NS LSGwth 17.13 -0.06 16.5 Prudential Cl Z & I
Nautilus NLS 12.25 -1.6 DirexChinaBr3 YANG 6.09 -0.2 PilgrimPride PPC 34.08 2.4 WndsrII 38.85 -0.15 11.6
KronosWorldwide KRO 27.92 -0.3 DirexRealEstBr3 DRV 10.10 -0.4 MongoDB MDB 29.01 -2.2 CorBdInst 11.26 -0.01 4.4 Freedom2030 K 18.13 -0.05 NS John Hancock Instl TRBdZ 14.54 -0.02 5.9
NewIrelandFundRt IRLr 0.23 -10.5 ProfireEnergy PFIE 2.25 4.5 VANGUARD INDEX FDS
Lennar B LEN.B 50.75 2.0 NetSolTech NTWK 3.09 10.9 BlackRock Funds A Freedom2035 K 15.21 -0.04 NS DispValMCI 23.95 -0.12 11.6
ETRACSMthlyPay2x SMHD 17.08 1.4
Lennar A LEN 59.07 2.4
NewYorkREIT NYRT 6.65 -6.4
Entrepreneur30Fund ENTR 14.82 -0.7
ProvidenceService PRSC 58.01 -1.0
NovelionTherap NVLN 4.25 -3.7 GlblAlloc p 20.33 -0.04 11.8 Freedom2040 K 10.68 -0.04 NS JPMorgan Funds S 500 238.96 -0.84 17.3
NielsenHoldings NLSN 34.22 -1.2 Qorvo QRVO 80.96 -1.7
OFS 12.06 -0.5
ExtndIstPl 201.24 -1.00 13.1
LibertyProperty LPT 44.89 ... FrankFTSEFrance FLFR 24.93 -1.3
OFSCapital BlackRock Funds Inst Fidelity Invest MdCpVal L 39.64 -0.03 8.9 Schwab Funds
NuSTAREnergy NS 31.21 0.2 Rapid7 RPD 20.25 -0.3 SmValAdml 54.80 -0.20 6.7
LifeStorage LSI 89.56 -0.2 OPKOHealth OPK 5.35 -16.0 EqtyDivd 22.98 -0.08 12.6 S&P Sel 40.40 -0.14 17.4 TotBd2
OFGBancorp OFG 7.80 1.9 FrankFTSEGermany FLGR 25.00 -1.5 SBA Comm SBAC 170.82 ... Balanc 23.67 -0.06 14.1 JPMorgan R Class 10.74 -0.01 3.3
ManchesterUnited MANU 18.90 1.1 OptiNose OPTN 17.33 -8.7 GlblAlloc 20.46 -0.04 12.1
Owens&Minor OMI 18.53 -1.1 FrankFTSETaiwan FLTW 25.46 -0.9 SMTC SMTX 1.71 3.1 BluCh 87.71 -0.48 32.9 CoreBond 11.65 -0.01 3.7 TotIntl 17.95 -0.08 24.2
ManulifeFin MFC 21.70 4.8
PandoraMedia P 4.48 -7.4 FrankFTSE UK FLGB 24.85 -0.3 SageTherap SAGE 96.99 54.2
PCM PCMI 9.60 ... HiYldBd 7.79 -0.03 7.0 Contra 126.72 -0.69 29.6 T TotSt 64.49 -0.25 16.5
NVR NVR 3362.85 0.1
PIMCOCAMuniIII PZC 10.30 ... GSAccessHYCorpBd GHYB 49.47 -0.6 ShotSpotter SSTI 19.93 3.8
PapaJohn's PZZA 57.22 1.7
StratIncOpptyIns 9.95 ... 4.2 ContraK 126.72 -0.69 29.6 L TIAA/CREF Funds VANGUARD INSTL FDS
NorthstarRltyEur NRE 14.10 5.3 ParkerVision PRKR 1.35 -4.2
PitneyBowes PBI 10.44 -2.3 GuggBS2025HYCpBd BSJP 24.63 -0.7 SolarEdgeTech SEDG 39.00 19.4 Bridge Builder Trust CpInc r 10.25 -0.05 10.2 Lazard Instl EqIdxInst 19.34 -0.08 16.6 BalInst 34.09 -0.08 11.2
OaktreeSpecNts24 OSLE 25.26 0.2 Patterson PDCO 33.18 -0.1
PrestigeBrands PBH 40.65 -1.3 ProShShXinhuaCh25 YXI 19.36 -0.3 Splunk SPLK 71.46 -0.5 CoreBond NA ... NA DivIntl 41.44 -0.13 24.4 EmgMktEq 19.70 -0.09 24.1 IntlEqIdxInst 20.29 -0.12 22.6 DevMktsIndInst 14.22 -0.08 23.4
Penumbra PEN 116.35 2.0 Radisys RSYS 0.64 -23.0
Quantum QTM 4.81 -4.7 ProShShtRE REK 15.66 0.1 SpringBkPharm SBPH 18.89 -1.1 GroCo 182.14 -0.74 33.2 Loomis Sayles Fds Tweedy Browne Fds DevMktsInxInst 22.22 -0.12 23.4
PortlandGenElec POR
Praxair PX
48.69
150.25
0.4
-1.0 QwestNts2055 CTZ 21.37 ... ProShUltTelecom LTL 37.90 -0.6 StaarSurgical STAA 15.80 13.2
RamacoRscs
ReShapeLifesci RSLS
METC 4.61 -20.7
1.47 -2.4
D GrowCoK 182.09 -0.75 33.3 LSBondI 14.17 -0.01 6.9 GblValue 28.42 -0.10 13.5 ExtndInst 81.55 -0.40 13.1
QwestNts2051 CTW 24.20 -0.4 ProShrUSRlEst SRS 28.55 0.1 StarsGroup TSG 22.10 2.1
Primerica PRI 100.65 -1.3 RestorationRob HAIR 5.36 -9.3 Dimensional Fds InvGB 7.93 -0.01 3.6 Lord Abbett A GrwthInst 70.85 -0.26 24.7
PulteGroup PHM 31.30 0.5 QwestNts2052 CTX 22.65 -1.2 TeucriumCornFund CORN 16.95 -1.3 TechTarget TTGT 13.37 2.4
RevolutionLight RVLT 4.27 -4.6 5GlbFxdInc 11.03 -0.01 2.3 InvGrBd 11.30 -0.01 4.1 ShtDurIncmA p NA ... NA V InPrSeIn 10.54 ... 2.5
QwestNts2052 CTU 22.67 -1.7 TetraTech TTEK 50.15 -2.1
QTS Realty QTS 60.60 0.1 RXiPharmWt RXIIW 0.10 -45.0 EmgMktVa 30.38 -0.07 28.6 LowP r 52.64 -0.11 14.9 Lord Abbett F VANGUARD ADMIRAL InstIdx 235.79 -0.83 17.4
RiceEnergy RICE 29.68 1.8 QwestNts2053 CTY 20.65 -1.0 NYSE American highs - 5 USA Tech
USA Truck
USAT
USAK
6.90 3.0
16.22 5.2
SabraHealthcare SBRA 19.07 0.1 EmMktCorEq 22.51 -0.09 31.6 LowPriStkK r 52.61 -0.10 15.0 ShtDurIncm NA ... NA 500Adml 238.99 -0.84 17.4 InstPlus 235.81 -0.83 17.4
RingCentral RNG 47.95 8.9 QwestNts2054 CTV 22.56 -1.4 SalemMedia SALM 5.10 -5.4 IntlCoreEq 14.22 -0.09 24.1 MagIn 105.97 -0.47 22.8 BalAdml 34.08 -0.09 11.2 InstTStPlus 57.87 -0.22 16.6
ArconicPfd ARNCp 92.50 0.5
SempraEnergy SRE 121.70 0.3 Qwest7%Nts2056 CTAA 22.73 -0.9
CentralSecs CET 27.25 -0.1
UroGenPharma URGN
VascularBiogenics VBLT
39.00 0.2
7.70 0.7
SearsHoldings SHLD 4.53 -2.1 IntlVal 20.06 -0.08 22.5 OTC 108.70 -0.68 36.4 M CAITAdml 11.85 -0.01 5.1 MidCpInst 40.74 -0.16 14.4
SiteOneLandscape SITE 64.99 1.7 QwestNts2057 CTDD 21.73 -1.1 SelectaBiosci SELB 8.70 -3.9 IntSmCo 21.40 -0.17 25.1 Puritn
CheniereEnergy LNG 51.51 -1.6 VicShUSMultMin VSMV 26.36 0.3 23.18 -0.07 16.2 Metropolitan West CapOpAdml r154.31 -1.00 24.2 MidCpIstPl 200.93 -0.77 14.4
SixFlags SIX 65.24 0.6 RangerEnergySvcs RNGR 10.51 -5.4 SequentialBrands SQBG 1.44 -38.8 IntSmVa
LGLRtWi LGLr 0.23 -20.0 Virtusa VRTU 46.42 3.8 23.34 -0.19 23.4 SrsEmrgMkt 21.59 -0.04 37.5 TotRetBd 10.67 -0.01 2.9 EMAdmr 37.29 -0.08 27.7 SmCapInst 68.17 -0.37 11.4
Square SQ 38.01 3.4 RiteAid RAD 1.38 -5.9 SpartanNash SPTN 18.56 -13.2
TrioTech TRT 6.57 14.9 Weibo WB 110.48 0.3 US CoreEq1 21.96 -0.10 15.3 SrsGroCoRetail 17.88 -0.09 33.8 TotRetBdI 10.67 -0.01 3.2 EqIncAdml 76.28 -0.27 13.8 STIGradeInst 10.68 ... 2.3
Statoil STO 21.02 0.8 SandRidgeMS II SDR 1.26 -2.9 Stericycle SRCL 61.62 -4.5
Woodward WWD 82.94 6.2 US CoreEq2 20.81 -0.09 13.1 SrsIntlGrw 16.24 -0.05 26.9 TRBdPlan 10.04 -0.01 3.2 ExtndAdml 81.55 -0.40 13.1 TotBdInst 10.78 -0.01 3.4
Telus TU 37.63 1.1 StandardMotor SMP
SuperiorIndsIntl SUP
40.77 -0.5
13.95 1.0
NYSE American lows - 11 StericyclePfdA SRCLP 50.50 -3.6 US Small 35.69 -0.18 6.2 SrsIntlVal 10.83 -0.04 18.2 MFS Funds Class I GNMAAdml 10.51 -0.01 2.0 TotBdInst2 10.74 -0.01 3.4
Textainer
Triple-S Mgmt GTS
TGH 23.25
27.56
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12.1 TeekayLNG PfdB TGPpB 24.61 -0.1 Biotime BTX 2.19 0.4 Nasdaq lows - 92 Sunworks
TESARO
SUNW
TSRO
1.26 -2.3
89.00 -7.5
US SmCpVal 38.12 -0.15 2.4 TotalBond 10.68 -0.01 4.0 ValueI 40.40 -0.11 12.7 GrwthAdml 70.85 -0.25 24.7 TotBdInstPl 10.78 -0.01 3.4
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TritonIntl TRTN 43.85 5.3 10.57 -3.6 Tecogen TGEN 2.75 -8.3
UniversalHealthB UHS 99.09 -0.9 CanFiteBiopharm CANF 1.43 -2.7 AcaciaComms ACIA USLgVa 38.85 -0.08 12.3 Biotech r 216.30 -0.08 24.3 IntlEq 25.34 -0.15 25.1 HYCorAdml r 5.91 -0.02 6.2 TotIntlInstIdx r120.06 -0.57 24.3
Tronox TROX 28.40 0.2 35.55 -2.6 TeleNav TNAV 4.95 -5.6
TsakosEngyNavPfdE TNPpE 25.81 -0.1 VistaOutdoor VSTO 12.36 -28.1 ContangoO&G MCF 3.11 7.4 AcadiaHealthcare ACHC 28.46 -1.8 Travelzoo TZOO 6.40 -2.3
Dodge & Cox First Eagle Funds Mutual Series InfProAd 25.87 -0.01 2.5 TotItlInstPlId r120.08 -0.58 24.3
UMHPropPfdC UMHpC 28.46 -1.3 VoyaPrimeRate PPR 5.03 -0.4 Daxor DXR 4.04 ... AkoustisTechs AKTS 4.91 -0.2 TrueCar TRUE 10.16 5.1
Balanced 108.83 -0.10 8.8 GlbA 60.72 -0.18 11.9 GlbDiscA NA ... NA IntlGrAdml 94.39 -0.87 40.2 TotStInst 64.53 -0.24 16.6
WesternGasEquity WGP 36.79 -0.3 eMagin EMAN 1.75 -9.5 AlcentraCapital ABDC 7.18 -5.1 UrbanOne D 1.45 -3.3 GblStock 13.89 -0.04 16.6 FPA Funds ITBondAdml 11.43 ... 4.0 ValueInst 39.65 -0.14 11.5
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Wal-Mart WMT 90.57 ... Willbros WG 1.45 -45.7 KlondexMines KLDX 2.80 1.4 AmbacFinWt AMBCW 5.06 -23.1 VicShEMHiDivVol CEY 24.80 -0.8 Intl Stk 46.35 -0.28 21.7 FrankTemp/Frank Adv Oakmark Funds Invest LTGradeAdml 10.63 -0.04 9.5 W
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WW Ent WWE 27.46 -0.6 XeriumTech XRM 3.94 -0.5 UniqueFabricating UFAB 7.05 6.5 AmerOutdoor AOBC 12.92 -2.2 ZealandPharma ZEAL 13.91 -5.6 DoubleLine Funds FrankTemp/Franklin A Oakmark 84.68 -0.14 16.8 MuHYAdml 11.46 -0.01 7.5 CorePlusBdI NA ... NA
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B10 | Friday, November 10, 2017 * * THE WALL STREET JOURNAL.

BANKING & FINANCE

Nasdaq Proposal Has Traders Worried

Fears are that secret
Secrets Revealed
strategies could be How the Intellicator could reveal hidden trading strategies
exposed; investors
also might be harmed 1 Someone buys 10 call options on Nasdaq’s PHLX exchange—
a bet
bet that
that shar
sshares
hares
es of Com
Compan
Company
panyy Inc.
Inc. wi
willll ris
risee in
in pric
pprice.
rice.
e.

BY ALEXANDER OSIPOVICH
2 Within
Withi a minute,
i t theth Intellicator
I t lli t reveals
l that
th t the
th
Some Wall Street heavy- buyer of those call options was a big investor.
weights are crying foul over a
proposal by Nasdaq Inc. that
they say will expose hidden
CHARLES MOSTOLLER/BLOOMBERG NEWS

3 An
A algorithmic
l ith i trader
t d infers
i f that
th t th
the bi
big iinvestor
t
trading strategies, in the latest bought
bo ght th
thee 10
10 options
options as part
opti rt of a larger
l order.
ord
clash between traders and ex-
changes over Big Data.
A dispute has erupted over 4 The algo trader quickly buys shares of
Nasdaq’s plan to launch an op- Company
Company Inc.,
I expectingti them
expecting them to
th t rise
riise in
in price.
priice.
tions-data service called the
“Intellicator Analytic Tool.”
Critics say that if approved by 5 That boosts the price of call options on Company Inc. stock. The
the Securities and Exchange big investor
bi investtor must
mustt pay a higher
highher price
hi priice on the
th rest
restt off the
th order.
order.
d
Commission, the service could
enable sophisticated algorith- Some 12 billion to 14 billion digital messages a day zip through Nasdaq PHLX’s systems. Source: scenario described by Dash Financial Technologies THE WALL STREET JOURNAL.
mic traders to exploit investors.
“In the interest of fairness ing to a part of the options ket about the large investor’s an emailed response: “We transparency,” said Henry
and the investing public, this market and show whether in- Growth Business intentions. have developed these products Schwartz, president of options
initiative should be denied by vestors in that market seg- Nasdaq’s exchange-data But if the Intellicator reveals with great care and consider- data firm Trade Alert LLC.
the regulator,” Thomas Pe- ment were bullish or bearish. revenues have increased 27% a small order was initiated by a ation to ensure that they can- “But I don’t think they’re
terffy, the billionaire chairman While it wouldn’t reveal the in the past four years. big investor, others could infer not be used in a manner that overdoing it.”
and chief executive of Interac- identities of investors, the In- that the investor is about to is detrimental to the market.” The SEC has until Nov. 18 to
tive Brokers Group Inc. and tellicator could reveal the “cus- $500 million buy or sell many options, po- Nasdaq says it is actually respond to Nasdaq’s plan,
one of the pioneers of auto- tomer type” of buyers or sell- tentially affecting the price of trying to “democratize” op- though it could just decide to
mated options trading, said in ers in thinly traded markets. 400 the underlying stock. An algo- tions data, or level the playing delay a decision for months.
an email. For instance, it could show rithmic trader could quickly field between high-tech trad- Nasdaq unveiled the Intelli-
Exchanges in recent years whether a trade was initiated 300 buy or sell that stock, resulting ers and ordinary investors. cator in an August SEC filing,
have sought to boost profits by a small investor or money in a worse price for the inves- The New York exchange opera- but withdrew that filing less
200
by selling data, often reaching manager, by identifying certain tor on the options, Mr. Mara- tor consulted with dozens of than two weeks later. When it
into the torrent of electronic- traders as “professional cus- gos said. “We don’t see how its customers before unveiling filed an expanded version in
100
trading activity that rushes tomers” who place larger vol- this benefits investors in any the Intellicator and sought to September, it included the ma-
through their markets for data umes of orders each day. way,” he said. minimize the risk of exposing terial about how the Intellica-
0
to package and sell. Nasdaq said in a September A major Wall Street lobby anyone’s secrets, Mr. Kimsey tor could help reverse-engi-
Nasdaq PHLX is the second- SEC filing that, in some cases, 2012 ’13 ’14 ’15 ’16 group urged the SEC to block said in an interview. neer hidden trading strategies.
biggest U.S. options exchange. the Intellicator could be used Source: the company the Intellicator proposal in a Customer-type data is avail- Mr. Kimsey said Nasdaq added
Some 12 billion to 14 billion to “reverse-engineer” the THE WALL STREET JOURNAL. letter released Thursday. “If able elsewhere, and savvy those sections after talking to
digital messages a day zip strategies of certain kinds of this data is made publicly traders already use it, he said, the SEC. An SEC spokeswoman
through its systems, repre- firms, yielding information Technologies, an equities and available, customer trades though he added that no other declined to comment.
senting trades and other infor- “not otherwise available on options brokerage. could be adversely impacted if source releases such data as The clash comes as the ar-
mation, according to Nasdaq. the Exchange’s data feeds.” When such big investors bad actors attempt to utilize frequently as every 60 sec- cane business of exchange-data
The Intellicator—a combi- That could harm pension want to buy or sell large quan- this data to manipulate the onds, as the Intellicator would. feeds has come under growing
nation of the words intelligent funds and other institutional tities of options, their brokers market,” the group, Sifma, Some market veterans say scrutiny, drawing attention
indicator—would use that ac- investors, for whom it is criti- will often break the order into said in the letter, which was the Intellicator proposal won’t from the Treasury Department
tivity to gauge market senti- cal to get big trades done qui- chunks and execute them dated Wednesday. have as much impact as critics in a report last month.
ment. Every minute, it would etly, said Peter Maragos, chief throughout the day. The idea Jeff Kimsey, Nasdaq’s head fear. “What Nasdaq is trying —Gunjan Banerji
spit out numbers correspond- executive of Dash Financial is to avoid tipping off the mar- of global data products, said in to do is add a little more contributed to this article.

Bitcoin Tycoon
Could Profit
From a Collapse
BY KOSAKU NARIOKA
TOKYO—Creditors of the
collapsed Japanese bitcoin ex-
change Mt. Gox are on course
to miss out on the recent
surge in bitcoin prices. In-
stead, it is the exchange’s for-
mer chief executive, now on
trial for embezzlement, who
could turn a handsome profit.
That is because the claims
SANTI PALACIOS/ASSOCIATED PRESS
When a bank fails, govern-
ments and courts have well-
established procedures for re-
funding depositors and
apportioning losses if the
bank’s assets fall short. But
they have little experience
when a bitcoin exchange fails,
with both assets and liabili-
ties largely in the volatile vir-
tual currency.
For anyone who deposited

by people who deposited bit- bitcoins at Mt. Gox, “it’s a rel-

coin at Mt. Gox are calculated
based on the yen value of the
cryptocurrency at the begin-
ning of Mt. Gox liquidation
proceedings in April 2014.
Meanwhile, Mt. Gox, which is
mostly owned by a company
controlled by former chief
Pro-independence supporters in Barcelona on Wednesday. A rise in repurchase agreements indicates banks are losing depositors. Mark Karpelès, is sitting on
more than 200,000 bitcoins
atively straightforward reac-
tion to ask for your bitcoins
back if any are left,” said Tet-
suo Morishita, a professor at
Tokyo-based Sophia University
Law School. “Under current
Japanese statutes, however,
you can’t establish ownership
well for nonphysical stuff.”
Mt. Gox was once the

Catalan Crisis Squeezes Banks

worth 17 times as much today world’s largest bitcoin ex-
as they were then. change. It filed for chapter 11-
Bankruptcy-court filings style bankruptcy protection in
suggest Mt. Gox will have hun-
BY JON SINDREU lateral at a preset interest dreds of millions of dollars left
Spanish Sway rate. over after paying creditors—
Mark Karpelès said
The political turmoil that Outflows mostly money that Mt. Gox’s bank-
upended Spanish markets last stopped after that week, they ruptcy trustee has indicated he believed it unlikely
month triggered a scramble said, especially after Catalo- would belong to the collapsed
among banks to find new nia’s two flagship banks— exchange’s shareholders, with
he would end up with
sources of funding. CaixaBank SA and Banco de Mr. Karpelès’s company being any money.
Volumes in European repo Sabadell SA—said they would the biggest.
markets shot up in the weeks move their legal headquarters “When it’s all sorted out,
surrounding the Catalan inde- away from the restive region. Karpelès would pretty much
pendence referendum on Oct. About 2,200 companies have get [the] vast majority” of the February 2014 after finding
1, a vote that was declared il- followed suit since the refer- extra value, said Kolin Burges, many of its bitcoins missing. It
legal by Madrid and marred by endum, figures from the Span- a creditor who held 311 bit- subsequently said it discov-
violence as Spanish police ish College of Mercantile Reg- coins at Mt. Gox which would ered roughly a quarter of what
charged voters. isters show. be worth about $2.3 million it had lost, but it was unable
Markets for repo, or repur- In October, “Banco de Saba- today. “So that seems incredi- to draw up a recovery plan. In
chase agreements, are a linch- dell didn’t lead any extraordi- bly unfair.” April 2014, a court ordered the
pin of financial markets in the nary operation in the whole- Mr. Karpelès has denied all company to be liquidated.
developed world. They allow sale market beyond the wrongdoing in the criminal Nearly 25,000 people around
for banks and risk-hungry in- increase driven by all Spanish case. In an email, he said he the world filed claims.
vestors like hedge funds to ob- banks in aggregate,” a spokes- believed it unlikely he would In 2015, Mr. Karpelès was
tain short-term cash at cheap woman said. end up with any money. He arrested and charged with em-
rates in exchange for safe col- “We did see some move- said finding bitcoin buyers bezzlement and creation of
lateral. ments of deposits during a few would be difficult and it was unauthorized records at Mt.
The spike indicates Spanish glimpse into how political up- markets—hitting €1.14 trillion days, but really nothing mate- common for bankruptcy assets Gox. He was released pending
banks were losing retail de- heaval can affect depositors. ($1.32 trillion), from a peak of rial and things have really nor- to be sold at a fraction of their trial. At the trial’s opening
posits, a source of long-term According to transactions €646 billion in 2011. malized after that,” Banco Bil- book value. session in Tokyo District
stable funding, traders said, processed by the BrokerTec Some Spanish banks con- bao Vizcaya Argentaria SA “[I]n the case these are Court in July this year, prose-
and piling into wholesale platform operated by NEX firmed they aggressively Managing Director Carlos Tor- sold, I do not believe it would cutors said Mr. Karpelès
money markets in search of an Markets, volumes in European tapped wholesale markets in res said. realistically fetch any kind of wrongfully spent ¥340 million
alternative source. repo markets rose 30% in Oc- the week that followed the CaixaBank declined to com- value high enough to make ($3 million) of customers’
Although banks said the tober from a year earlier, fol- vote, as well as ensuring their ment, but Managing Director this an actual issue,” he said. money for his personal use
outflows were small, the issue lowing a similar rise in Sep- access to funding from the Eu- Gonzalo Gortázar said two Bitcoin prices rose to and altered the company’s
emphasizes the potential tember. The move was ropean Central Bank—euro- weeks ago that the lender suf- ¥836,761 ($7,365.85) on Thurs- books to inflate the amount of
problems for Spain’s economy concentrated in Spain and is zone banks asked for €21 bil- fered “a moderate loss of cus- day afternoon in Tokyo, com- dollars and bitcoins held by
as the standoff continues. Ma- likely explained by the Catalan lion from the ECB’s weekly tomer funds,” but it was pared with ¥50,058 at the be- customers.
drid in late October took full push for independence, NEX liquidity auction on Oct. 10, halted after the decision to ginning of the liquidation At the trial, Mr. Karpelès
control of the Catalan regional said. The day after the vote, roughly four times the usual move the legal headquarters. proceedings in April 2014. said he was innocent and re-
government and jailed local BrokerTec registered its high- uptake—largely to assuage “It really puts us in the Some lawyers say the Mt. peated his contention that the
officials. est daily volumes on record fears of large, wealthy deposi- same position at any other Gox bankruptcy is an example exchange’s collapse was
And while investors have for term repos—funding of a tors. Once a week banks can Spanish bank that is now do- of how existing laws aren’t caused by hackers. He said he
sold Catalan bank stocks, the maturity greater than one day, go to the ECB and get as much ing business in Catalonia,” Mr. yet fully adapted to issues in- regretted he was unable to
repo market offers a rare the most common in repo cash as they want against col- Gortázar said. volving virtual currencies. prevent customers’ losses.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
European
Growth
Forecasts
Hit Bonds
BY DANIEL KRUGER
U.S. government bonds set-
tled lower after forecasts for Eu-
ropean growth improved while
the Republican tax-overhaul plan
encountered potential obstacles.
The yield on the 10-year
Treasury note rose for a second
consecutive day, to 2.333% from
2.325% Wednesday. Bond yields
rise as prices fall.
Bonds trimmed early losses
after Republican aides said a
Senate tax plan
CREDIT would delay cuts
MARKETS to corporate taxes
until 2019, one
year later than
the House of Representatives’
proposal and later than the
Trump administration had
hoped for.
“If you were to delay some of
that stimulus, you could see a
drag on jobs,” said Dan Mulhol-
land, a bond trader at Crédit Ag-
ricole SA. The uncertainty about
that impact on the economy
could “dampen the trajectory”
on expectations for future Fed-
eral Reserve rate increases.
Earlier, Treasurys fell after
the European Commission re-
vised previous growth forecasts
for euro-area economies, boost-
ing its projection for economic
output this year to 2.2% and
2.1% in 2018, versus expectations
for a 1.7% increase this year and
1.8% next year. That led inves-
tors to sell European govern-
ment debt, with Treasurys fall-
ing in concert.
The Treasury also sold $15
billion of 30-year bonds Thurs-
day, after selling three-year
notes on Tuesday and 10-year
debt on Wednesday. The addi-
tional longer-term securities
move may blunt some of the
momentum that has built to-
ward a flattening of the yield
curve.
While the 10-year Treasury
yield has fallen in the past two
weeks from a recent high of
2.452%, shorter-term yields have
been pushed higher as investors
expect the Fed to continue lift-
ing interest rates at least
through next year.
Treasury Auctions
The Treasury Department will
auction $89 billion in securities
next week. Details (all with mini-
mum denominations of $100):
 Monday: $42 billion in 13-
week bills, a reopening of an is-
sue first sold on Aug. 17, 2017,
maturing Feb. 15, 2018. Cusip
number: 912796NS4.
Also, $36 billion in 26-week
bills, dated Nov. 16, 2017, matur-
ing May 17, 2018. Cusip number:
912796PG8.
Noncompetitive tenders for
both issues must be received by
11 a.m. EST Monday and com-
petitive tenders by 11:30 a.m.
 Thursday: $11 billion in
nine-year, eight-month 0.375%
Treasury inflation-protected se-
curities, a reopening of an issue
first sold on July 31, 2017, ma-
turing July 15, 2027. Cusip num-
ber: 9128282L3.
Noncompetitive tenders for
the TIPS must be received by
noon Thursday and competitive
tenders by 1 p.m.
AUCTION RESULTS
Here are the results of Thursday's Treasury auction.
All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
between that price and the face value.
Applications
30-YEAR BONDS
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Interest rate
Bids at clearing yield accepted
Cusip number
The bonds, dated Nov. 15, 2017, mature on Nov. 15,
2047.
Asian Tech Shares May Be Cheap Despite Surge
BY KENAN MACHADO
HONG KONG—Asian tech
stocks have been on a tear this
year, outpacing robust gains
made by the Nasdaq Compos-
ite Index, Amazon.com Inc.
and Apple Inc.
And yet, the sector appears
to be undervalued when com-
pared with its U.S. counter-
part.
The MSCI AC Asia Pacific
Information Technology Index,
which is made up of stocks in
12 countries from Pakistan to
Japan, was up 56% through
October, its best performance
since a rebound from the
global financial crisis in 2009.
* * * *
Shares of Alphabet, Google’s parent, fell 1% Thursday, in step with other technology stocks. A Google developers conference in Mountain View, Calif., last year.
Stocks Falter on Tax-Bill Worries
Dow falls 101.42, as
questions arise on
whether GOP can
push through overhaul
BY MICHAEL WURSTHORN
Investors’ concerns over the
prospects of a U.S. tax overhaul
dragged down stocks after the
Dow industrials had posted
seven consecutive sessions of
gains.
The blue-chip index was
down as much as 253 points
around mid-
THURSDAY’S day Thursday
MARKETS as investors
parsed devel-
opments in a
tax overhaul they have been an-
ticipating since the election of
President Donald Trump. But
major indexes pared their de-
clines in the second half of the
trading day.
The Senate plan to push
through a different tax proposal
than what the House released
last week has caused some in-
vestors to question Republicans’
ability to get a bill through to
Traders Jump Into FANG Futures
BY BEN EISEN
Investors are wading into a
new futures contract that
tracks an index of high-profile
technology companies.
Futures on the New York
Stock Exchange’s FANG+ Index
follow 10 big firms, including
Facebook, Amazon.com, Net-
flix and Google parent Alpha-
bet, often shorthanded as
FANG. On Wednesday, the first
day of trading, 418 contracts
changed hands, and on Thurs-
day more than 600 contracts
traded. All trades were in the
December contracts. Those ex-
piring in March, June and Sep-
tember of next year have yet
to trade.
Though the volume was
lower than more seasoned fu-
$35,202,372,700 tures contracts, trading grew
$16,823,982,700 steadily through the day. New
$4,884,700
$0 futures launches often have
98.969630 little to no trading at first. In-
(2.801%)
2.750% tercontinental Exchange Inc.,
39.22% NYSE’s parent company, an-
912810RZ3
nounced the new product in
September.
But on a forward price/
earnings basis, a common
measure of stock valuations,
the Asia index finished last
month at 15.9. A comparable
MSCI index of American com-
panies was at 19.6. That isn’t
surprising because over the
past five years, Asian technol-
ogy companies have carried a
lower multiple than their
peers in the U.S.
The sector has had to grap-
ple with an economic slow-
down in China, which is one
reason Asian tech stocks look
cheaper, noted Guillermo Fe-
lices, a portfolio manager at
BNP Paribas Asset Manage-
ment.
MARKETS
the White House.
Investors said Thursday’s
losses accelerated after reports
that the Senate’s proposal
would delay the corporate-tax-
rate cut until 2019.
“Some investors have been
buying in anticipation of stocks
being able to report that they
are earning more by paying
lower taxes,” said Kim Forrest, a
senior portfolio manager with
Fort Pitt Capital Group. “This
would’ve been an easy win for
corporations and investors.”
The Dow Jones Industrial Av-
erage shed 101.42 points, or
0.4%, to close at 23461.94. The
S&P 500 fell 9.76 points, or 0.4%,
to 2584.62, and the Nasdaq
Composite dropped 39.07
points, or 0.6%, to 6750.05.
Technology stocks in the S&P
500, the best-performing sector
of the year so far, fell 0.9%
Thursday. The group is still up
37% this year. Chip makers were
among the biggest decliners,
with Advanced Micro Devices
down 59 cents, or 5%, to $11.12,
and Nvidia off 3.84, or 1.8%, to
205.32. Google parent Alphabet
fell 10.57, or 1%, to 1,047.72.
The Russell 2000 index of
Torrid Tech
Shares of Facebook, Amazon, Netflix, and Google parent Alphabet,
collectively called FANG, have all risen sharply this year.
70%
60
50
40
30
20
10
0
J F M A M J
Source: WSJ Market Data Group
These futures contracts
play off of a hot trade this
year: Facebook, Amazon and
Netflix are all up more than
50% in 2017 and Alphabet is
up 32%. Apple Inc., another
index component, closed
And while Asian tech valua-
tions are historically high rela-
tive to other sectors in the re-
gion, “we are seeing earnings
going up continuously,” said
Claire Teng, executive director
at J.P. Morgan Private Bank in
Asia.
Some investors believe Chi-
nese internet company Ten-
cent Holdings Ltd. is under-
valued, even though its Hong
Kong-listed shares have dou-
bled this year, putting its mar-
ket capitalization at about
$470 billion. That puts it
within $75 billion of Amazon
and Facebook Inc.
Kevin Tam, an analyst fol-
lowing the Shenzhen-based
Selling the Winners
Shares of technology companies slumped Thursday, erasing most of
the sector’s gains for the week.
Performance since Friday, Nov. 3
1.0%
0.5
0 lower profit and saying it added
–0.5
–1.0
Monday Tuesday
Source: FactSet
small-capitalization companies
fell 0.5%, paring earlier declines.
Analysts say they have been
tracking the index as a proxy for
investors’ reactions to the tax
plan because they expect the
proposal to benefit smaller, more
domestically focused companies
rather than larger multinationals.
“There was a great deal of
Netflix
Facebook
Amazon
Alphabet
J A S O N jumping into these stocks en
THE WALL STREET JOURNAL.
above $900 billion in market
value for the first time ever on
Wednesday. ICE’s website
touts the product as a way to
“Trade the Top of Tech.”
Futures contracts can allow
investors to bet on the price of
company at Core Pacific Ya-
maichi, said Tencent’s cloud-
computing and payment oper-
ations aren’t properly valued.
Their combined revenue
nearly tripled from a year ear-
lier in the second quarter and
third-quarter earnings are due
next week. Properly valuing
those operations would give a
lift of about 10% to Tencent
shares, Mr. Tam said.
Tencent shares are trading
at 50 times this year’s pro-
jected earnings, the highest
point since early 2014, accord-
ing to data provider FactSet.
But Tencent has been logging
per-share earnings growth of
at least 40% recently, making
Friday, November 10, 2017 | B11
S&P 500
technology
sector
S&P 500
Wednesday Thursday
THE WALL STREET JOURNAL.
confidence that there was mo-
mentum behind the tax bill” last
week, said Mike Allison, a port-
folio manager with Eaton Vance.
However, the Senate Republi-
cans’ plan to release their own
proposal has “created uncer-
tainty that anything is going to
get done,” he added.
Another batch of quarterly
an asset or group of assets
down the road without putting
down as much money as actu-
ally buying the underlying se-
curities. But added leverage
can also increase losses if the
shares drop, and in some cir-
cumstances traders may owe
more money than they paid to
begin with. ICE calls the
FANG+ futures a “hedging
mechanism to quickly increase
or decrease tech exposure.”
FANG, which joined the fi-
nancial lexicon a few years
ago, has become a popular
phenomenon that extends well
beyond Wall Street in 2017.
The name has even spawned
its own offshoots.
Retail investors have been
masse, helping lift demand for
products to bet on their rise.
There is now an exchange-
traded fund with the ticker
“FNG” that bets on big tech
stocks. It has $36.6 million in
assets. Those who want to bet
on the companies could also
just buy the stocks.
such a P/E ratio reasonable.
The company’s shares have
been a big driver for Hong
Kong’s Hang Seng Index,
which is up 31% this year.
Tencent is the parent of
messaging app WeChat, web
portal QQ.com and internet li-
brary operator China Litera-
ture Ltd., whose shares surged
86% in their Hong Kong debut
Wednesday, valuing the com-
pany at more than $12 billion.
Shares of South Korea’s
Samsung Electronics Co. have
surged 56% this year after
jumping 43% in 2016. But de-
spite strong profit growth,
Samsung’s 2017 P/E ratio is
just 9.6, FactSet said.
STEPHEN LAM/REUTERS
profit reports were also contrib-
uting to individual stock moves,
with mixed results coming from
some retailers.
Macy’s rose 1.93, or 11%, to
19.50, after the retailer beat
profit estimates on lower reve-
nue. Kohl’s gained 38 cents, or
0.9%, to 41.17, after it fell short
of profit expectations even
though same-store sales rose.
Dish Network added 1.57, or
3.2%, to 50.30, after reporting a
fewer new subscribers com-
pared with a year earlier.
Elsewhere, the Stoxx Europe
600 fell 1.1%, with technology
and mining stocks among the
biggest laggards.
Japan’s Nikkei Stock Average
reversed a 2% gain to end the
session 0.2% lower, after breach-
ing 23000 for the first time
since January 1992. The mar-
ket’s shift lower came as the yen
rebounded. At the lunch break
Friday, the Nikkei was down
1.4%, while at that time, Hong
Kong’s Hang Seng Index was up
0.1% and Australia’s S&P ASX
200 was down 0.4%.
—Marina Force
contributed to this article.
Demand
For Gold
Declines
BY DAVID HODARI
The price of gold isn’t al-
ways governed by the laws of
supply and demand. For gold
bulls, that’s good news, be-
cause demand is down.
Global demand for gold
slumped to its lowest level in
eight years in the third quar-
ter, according to a report re-
leased Thursday by the World
Gold Council. Demand
dropped 9% from the year-
earlier period, after it hit a
record in the July-to-Septem-
ber quarter in 2016, the report
said.
The price of gold is still up
12% this year, underscoring
how the demand for the metal
plays less of a role than it
does for other commodities.
With gold, U.S. interest rates
and the metal’s status as a ha-
ven investment can often play
a bigger role in driving the
price higher or lower.
In the third quarter, factors
including Indian tax changes
and a booming stock market
contributed to sinking de-
mand. Moreover, buying from
gold-backed exchange-traded
funds edged up by only 19
tons, 87% less than they
bought in the year-earlier
quarter.
These funds had to compete
against a soaring stock market
with “a contained gold price
contrasting poorly against
that,” said Alistair Hewitt, the
council’s head of market intel-
ligence.
Still, central-bank demand
for gold climbed 25%, the re-
port said. Meanwhile, demand
from technological companies
rose 2% thanks to the in-
creased use of gold in chips
and wireless devices.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B12 | Friday, November 10, 2017 * * THE WALL STREET JOURNAL.

What’s a Dollar Worth? Depends Whom You Ask
MARKETS
The financial community uses a variety of methods to value currencies that can produce very
different results. Those discrepancies have wide-ranging implications for everything from
trade negotiations to the price of a latte. Below is a look at what different economists, policy
makers, and coffee drinkers tell us about the dollar's value.

The dollar’s worth is jobs overseas. In the 1990s The value of a currency can vary wildly from metric to metric.
determined each day by the and 2000s, nations such as
$5 trillion foreign exchange China intervened in financial PIIE* Organization for Economic Bank for International International Council on Foreign
market, but that hasn’t markets to weaken their Cooperation and Development† Settlements‡ Monetary Fund ** Relations††
stopped investors, academ- currencies and make their UNDERVALUED OVERVALUED
ics and policy makers from exports cheaper. The dollar -30% -20 -10 0 10 20 30
debating what the real value became more than 10% U.S. dollar
ought to be. overvalued, according to IMF Swiss franc
The financial community data, rendering U.S. exports Australian dollar
uses dozens of metrics to increasingly uncompetitive. Canadian dollar
determine how much a After this year’s slide in the British pound
currency should be worth- dollar, the currency is less Swedish krona
and which currencies to buy than 2% overvalued. Euro
and sell. These often tell China has been repeatedly Japanese yen
starkly different stories. One accused of keeping its New Zealand dollar
measure created by the currency weak to gain a Chinese yuan
Council on Foreign Relations trade advantage. A decade Mexican peso
shows the U.S. dollar is 11% ago, the currency was about Russian ruble
overvalued. Another, kept by 25% undervalued against the Brazilian real
the Peterson Institute of dollar, according to IMF Indian rupee
International Economics, in data, a dynamic that Korean won
July showed the greenback encouraged the spread of South African rand
as 5% undervalued. cheap Chinese exports. Singapore dollar
The implications of these During his campaign, Mr.
discrepancies have been Trump said he would label The U.S. dollar's overvaluation has come down this year.** Varying prices for a tall latte at Starbucks around the world
heightened lately as China a currency manipula- 40%
suggest some currencies are overvalued against the dollar
currencies have taken on tor on his first day in office. and some are undervalued.
30
increased political signifi- The U.S. hasn’t taken that 20 Overvalued City Currency Latte price in U.S. Dollars
cance. President Donald step, which economists say is
10
Trump has repeatedly in part an acknowledgment Zurich Swiss franc $5.76
0
lamented the strength of the that the Chinese currency is Hong Kong Hong Kong dollar $4.36
–10
U.S. dollar while railing no longer undervalued by Singapore Singapore dollar $4.24
against trade partners for most metrics. –20 Undervalued Beijing Chinese yuan $4.22
keeping their currencies too One widely used method –30 Shanghai Chinese yuan $4.22
Brussels Euro $4.21
weak. U.S. officials have for measuring currency 1980 ’90 2000 ’10
Beirut Lebanese pound $4.20
pushed the International values is by comparing how Dubai Emirati dirham $4.08
Monetary Fund for greater much one item would cost in After decades of undervaluation, the Chinese yuan Seoul Korean won $3.76
monitoring and for U.S. trade different countries, a theory is essentially fairly valued.** Moscow Russian ruble $3.74
deals to include provisions known as purchasing-power Riyadh Saudi riyal $3.47
150%
to punish currency manipu- parity. The Wall Street Jeddah Saudi riyal $3.47
lators. Efforts to enforce Journal compiled the price New York U.S. dollar $3.45
currency values, however, of a tall Starbucks latte from 100 Berlin Euro $3.40
Buenos Aires Argentine peso $3.28
are complicated by the 29 locations across the globe
Tokyo Japanese yen $3.26
hodgepodge of valuation to determine which curren- Bangkok Thai baht $3.17
50
metrics used by agencies cies are misaligned. Though Sydney Australian dollar $3.13
around the world. the latte prices are likely Athens Euro $3.09
U.S. policy makers have also affected by factors such 0 Kuala Lumpur Malaysian ringgit $3.08
long blamed unfair currency as country taxes, The Wall Toronto Canadian dollar $2.94
practices for the country’s Street Journal’s Latte Index London British pound $2.84
–50 Johannesburg South African rand $1.79
$500 billion annual trade broadly mirrors the results
1980 ’90 2000 ’10 Cairo Egyptian pound $1.53
deficit and the flight of U.S. of other valuation methods.
*Real effective exchange rate, through July 24 †Purchasing power parity, through Oct. 10 ‡Real effective exchange rate, through Aug. 31 **Real effective exchange rate, through Aug. 15 ††Mini Mac Index, through June 30
Note: Real effective exchange rates measure a currency against those of its trading partners, typically adjusted for inflation .
Sources: Credit Suisse (BIS, IMF); TD Securities (OECD); the organizations (PIIE, CFR); staff reports (latte prices) Reporting by Chelsey Dulaney and Ira Iosebashvili; Graphic by Nigel Chiwaya /THE WALL STREET JOURNAL.

Email: heard@wsj.com
HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY WSJ.com/Heard

Italian Banks Clean Up Their Act OVERHEARD Nvidia Keeps

Raising Its
Here’s one less thing for any provisions, was down to It’s nearly wintertime in
Fading Fears
global investors to worry
about: Italy’s once-tottering
financial system isn’t nearly
Italian banks' total bad and doubtful debts before provisions, quarterly
15% at the end of the second
quarter, according to the
most recent national data,
northern China, and you know
what that means. Snow, deli-
cious dumplings for Lunar
Chips Game
as scary as it was. €350 billion from 16.5% in the summer of New Year and choking pollu- Nvidia is playing a high-
About €300 billion ($348 300 2016. tion. stakes game these days. For-
billion) in bad and doubtful Further, Italy’s and Eu- Except maybe not. In line tunately, it continues to play
loans is still a big figure— 250 rope’s strengthening econ- with the effort to pivot China its hand well.
and almost one-third of Eu- omy means fewer good loans away from growth at all The chip maker has be-
200
rope’s total—but a banking are turning bad. Intesa this costs and toward a “wonder- come closely tied to the
cleanup through sales, 150 week said that new bad ful life” for its people de- cloud, most specifically to
higher provisions and capital loans in the third quarter clared by President Xi Jinping the sizable flow of capital
100
injections is well under way. were the lowest quarterly in- at last month’s Communist spending by major cloud-ser-
Fears that Italy’s banks could 50 flow since 2007. UniCredit Party congress, provinces vice operators that are buy-
be the source of a wider fi- also reported a big decline around Beijing are mobilizing ing up the company’s graph-
nancial panic are fading. 0 Thursday, and others have for major industrial shut- ics processors that are
Accelerating economic 2015 ’16 ’17 this month, too. downs this winter to curb specially designed to enable
growth this year and pres- Note: €1 billion=$1.16 billion Harsh standards from Eu- pollution. artificial intelligence in data
sure from European supervi- Source: Bank of Italy THE WALL STREET JOURNAL. ropean regulators on the This could have a signifi- centers. It’s still a relatively
sors have been carrot and treatment of new bad loans cant impact on the economy, small business for Nvidia,
stick for the sector, while ing €13 billion in fresh eq- Sanpaolo, Italy’s two largest might be delayed after ques- cutting overall growth but it’s expanding fast.
government-led bank rescues uity and selling €18 billion in and strongest lenders, are tions over their legal basis, by nearly half a percentage Nvidia’s sales to the data-
in the summer—after a long bad loans. It was followed by left with €105 billion of the but this doesn’t really mat- point, according to Julian Ev- center market totaled $501
wait—dialed down the risk state-backed recapitaliza- remaining pile. They will fur- ter. Italy’s banks now know ans-Pritchard, China econo- million for the fiscal third
of systemic collapse. tions or liquidations for ther cut these through sales they can clean up their act mist at Capital Economics. quarter, more than doubling
A string of midsize lend- Banca Monte dei Paschi di and workouts, and their size and have gotten the message That sounds bad, though in size year over year.
ers have launched recovery Siena, Italy’s oldest bank, means that these loans are that supervisors will find a some of the impact on That beat Wall Street’s
plans in recent months, after and two smaller but deeply now valued at just 11% and way to penalize them if they growth will be moderated as forecast for the quarter.
several of Italy’s biggest of- troubled banks from the re- 13% of total loans, respec- don’t. In another year’s time, southern and central Chinese Nvidia’s market value has
fenders were persuaded or gion near Venice. tively. much of the heavy lifting factories merrily ramp up pro- doubled this year, after hav-
pushed into dealing with The upshot of these ac- Those levels are above the ought to be done and Italian duction instead. ing tripled last year, as the
their balance sheets this tions is that €62 billion of European average of about banking will no longer be the So, Beijingers, break out company has masterfully po-
year. toxic loans is already being 5% but are much improved. threat it has been for too the eggnog. Other cities may sitioned itself at the prime
UniCredit, Italy’s biggest cut out of the sector. Mean- As a whole, the sectorwide long. have less to celebrate. slot in the market for artifi-
by assets, led the way, rais- while, UniCredit and Intesa gross bad-loan ratio, before —Paul J. Davies cial intelligence chips. It has
also made Nvidia one of the
most expensive stocks on the

Macy’s and Kohl’s Give Investors Some Reason to Cheer chip market at more than 50
times forward earnings,
which sets sky-high expecta-
Retailers are confident costs tied to this year’s hur- So it’s understandable presents. And even now, go- tions the company can’t al-
that shoppers will visit their Season’s Greetings ricanes took a bite out of that investors think this holi- ing to the mall for holiday ways meet.
stores during the holiday Kohl’s same-store sales, revenue. day shopping season, when shopping remains a tradi- Such was the case three
season. Investors who pro- change from a year earlier Investors were skeptical November and December tion. The stock market’s re- months ago, when the com-
crastinate may miss out. at first, sending Kohl’s stock count for about a quarter of action to Macy’s results, pany’s data-center sales
Macy’s and Kohl’s both 1% down sharply early Thursday department stores’ annual which were merely lousy as missed some projections and
reported third-quarter re- 0 before the shares recovered sales, will be another misera- opposed to outright horrible, sent the stock down initially.
sults Thursday. They both –1 later in the day to post a ble one. could be a sign of what’s But the data-center gain was
said business is picking up, –2 0.9% gain. Kohl’s is down From a historical perspec- coming. stronger this time, and its
and they both refused to –3 13% this year, which counts tive, it probably will be, but Both Kohl’s and Macy’s main business of selling
lower expectations for the as a good performance for a perhaps not as bad as inves- said they had seen business graphics chips used in gam-
–4 Quarterly
holidays. Those are signals retailer. tors expect. pick up in the latter half of ing PCs looks good as well.
that investors should pay at- 2015 ’16 ’17 Department stores are That matters for the October, once the effects of Nvidia is now the third
tention to. Source: FactSet among the retailers that stocks, because there has the hurricanes and unsea- most valuable chip maker on
Macy’s said same-store have been hit hardest by the long been a tendency for re- sonably warm weather the market, lagging behind
sales declined more than an- Thursday, but are still down shift toward online shopping. tail shares to outperform faded. Both retailers know only Intel and Taiwan Semi-
alysts had expected, but its by nearly half since the start High fixed costs, which are when the outlook for the the risks of being overly op- conductor Manufacturing.
earnings were better than of the year. difficult to shed when sales holiday shopping season timistic in this environment. That sets a rather high bar,
forecast, and it also reiter- Kohl’s same-store sales migrate online, and Ama- looks poor. These days, their relatively but the company has shown
ated its sales guidance for edged up, though analysts zon.com’s margin-crushing Even in a bum economy positive comments count as great proficiency thus far in
the year. expected them to decline. prices make it hard to com- (which is hardly the environ- holiday cheer. meeting and beating it.
Macy’s shares climbed 11% But its earnings fell short as pete. ment now), people still buy —Justin Lahart —Dan Gallagher
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.

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

Kim Kardashian and ‘Painting is poetry which

Kanye West sell is seen and not heard.’
Bel Air home for
$17.8 million M2 —Leonardo da Vinci

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

© 2017 Dow Jones & Company. All Rights Reserved. THE WALL STREET JOURNAL. Friday, November 10, 2017 | M1

FROM TOP: ALISSA DRAGUN FOR THE WALL STREET JOURNAL; SOTHEBY’S INTERNATIONAL REALTY
FROM THE TOP Dan Colussy completed his Venetian-style home, below, in Jupiter, Fla., in 2009. Nearly every one of the ceilings has a mural, which he had painted by a number of artists from around
the world. Mr. Colussy declined to disclose the cost of the project, but said it was several million more than the home’s $12.995 million listing price.

Buy Art First, Build Home Later

Some art lovers design their homes around permanently installed works
and accept potential risks at resale time; the 25-foot-wide cartoon frog on the garage.

Artists will work with architects, interior de-

BY LEIGH KAMPING-CARDER
signers, contractors and lighting specialists from
the early stages of a project. Window placement,
SOME HOMEOWNERS hang paintings. Todd Pic- ceiling height, furniture arrangement—all are
cus had a mural of a cartoon frog replicated on subservient to the artwork.
the side of his garage. He also hunted down, and Until the 19th century, most art was con-
commissioned, a secretive Paris-based street ceived for a specific place, such as a fresco or an
artist to adorn his house. altar painting, said Rory O’Dea, an assistant pro-
“I like to have things that no one thought of fessor at Parsons School of Design, the New
doing and can’t do,” said Mr. Piccus, 52-year-old School University. The term “site-specific art”
vice president of legal and business affairs at emerged in the 1960s, as artists rebelled against
Mattel, the toy company. the notion of art as a luxury commodity and
A small number of art lovers commission site- sought to bring art back into everyday life.
specific works that are as inseparable from their Today, site-specific artwork continues to be
homes as the staircase or the kitchen island. Please turn to page M8

HOUSE CALL | LEE CHILD INSIDE

SAVED BY THE BEATLES IN GRAY BRITAIN

The suspense novelist came of age in bleak times; today, homes in New York, Wyoming, England and France.

Lee Child, 63, is a British

author of more than 20
thriller novels featuring his
Jack Reacher character. His
latest novel is “The Midnight UNUSUAL DESIGN
Line” (Delacorte). He spoke A pyramid home in a
with Marc Myers. Berlin backyard M3

Growing up, I had a compul-

sion to show off. I was quick
to accept a dare, especially if
I was unable to find a way
out of it gracefully. So I’d of-
ten wind up doing things
BEN PHILLIPS FOR WSJ

that were ludicrous.

On a high-school ski trip
to Austria, a bunch of guys
bet I wouldn’t jump off the
chairlift heading up the
mountain. Our skis were ARCH SUPPORT
STEPHANIE DIANI FOR THE WALL STREET JOURNAL

waiting for us at the top. A London monument’s

We were about 30-feet new identity M4
above the slope when I
picked a spot where the
snow looked deep and
jumped. They paid me, but
when my teachers found out,
they made me return the
MEGAN HALEY FOR WSJ

money.
I was born James Grant in
Coventry, England, in 1954.
My first memory is all the
rubble from bombed build- LE NOVELIST Lee Child in his apartment on the Upper West Side of Manhattan, one of two homes he owns in the States.
ings, 13 years after the end of
World War II. Rebounding velopment of small houses house with wood parquet to Birmingham. My father, alent of the IRS as an auditor. SNOW DAYS
was a slow process. built for the postwar boom. floors. John, was a civil servant. He My mother, Audrey, had Southern Vermont’s
We first lived in a new de- Ours was a brick, two-family When I was 5, we moved worked for the British equiv- Please turn to page M14 luxury comeback M6
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M2 | Friday, November 10, 2017 NY THE WALL STREET JOURNAL.

PUBLIC AUCTION MANSION

PRIVATE PROPERTIES

Kim Kardashian and Kanye West

Sell Bel Air Home for $17.8 Million

MARC ANGELES/UNLIMITED STYLE; JASON MERRITT/GETTY IMAGES (INSET)

THURSDAY DECEMBER 7, 2017
ARUBA, DUTCH CARIBBEAN

On Thursday December 7, 2017, at 11 AM, at the Conference Room of the

Chamber of Commerce, Irausquin Boulevard 10, Aruba, will be auctioned in
public,ex. art 502 RV ev Code of Civil Procedure of Aruba:
A residential house locally known as
L.G. SMITH BOULEVARD 125-D
ARUBA
standing on a parcel of public land, 1865 m2 in size, situated at the L.G.
Smith Boulevard in Aruba, locally recorded as Second division section A
nr. 227.
Reality-TV star Kim Kar-
Auction notary: mr. T.R. Johnson
- No reserve price will be used for the auction. Only serious offers will be considered. dashian West and her husband,
- The auction conditions to be determined by civil law notary T.R. Johnson will be applicable. musician Kanye West, have
- A 1% commission will be paid over the highest bid in the first round of the auction if the
property is sold at the auction and the bid is accepted by the seller. sold their Bel Air home for
- Seller has the right to not accept any bid, at its sole discretion. $17.8 million, according to peo-
- The auction conditions to be determined by civil law notary T.R. Johnson will be applicable.
ple with knowledge of the deal.
The six-bedroom, eight-
bathroom home totals approxi-
mately 9,000 square feet and
For more information please visit our website: has a pool, a cabana and views
WWW.JOHNSONNOTARY.COM/AUCTIONS of the nearby canyon. It is lo-
cated in Bel Air Crest, an exclu-
sive gated community with
LUXURY REAL ESTATE DESERVES A fewer than 300 homes.
The couple bought the prop-
LUXURY AUCTION
NOVEMBER 18TH | CROZIER, VA
Previously $3.95M. Now Selling
WITHOUT RESERVE!
SAN FRANCISCO TUDOR-STYLE
MANSION SEEKS $25 MILLION
A Tudor-style home in San
Francisco’s Presidio Heights
neighborhood is on the market
for $25 million, making it one
of the most expensive proper-
ties currently on the market in
the city.
The 11,700-square-foot
erty for $9 million in January
2013, public records show.
They ripped the original Medi-
terranean-style home “down to
the studs” and installed new
glass windows, said Mr. Alt-
man. A year later, they bought
a $20 million Hidden Hills
mansion on land once owned
by Lisa Marie Presley, accord-
ing to public records.
Mr. Altman said the buyer is
Marina Acton, who said she is
a Ukrainian entrepreneur and
philanthropist who had been
railroad magnate Henry Hun-
tington, and sits on more than
a quarter of an acre of land,
according to the listing.
The seller is philanthropist
Tamara Fritz of the Fritz family
of San Francisco, according to
the listing agent, Barbara J.
based in Silicon
Valley until re-
cently. Ms. Acton,
who said she married
in August, said she would
be spending more time in Los
Angeles and wishes to begin a
new career as a singer.
Ms. Acton said she had
been touring the house with
her agent when she ran into
Ms. Kardashian. “It was a big
surprise because usually the
owners are not there when you
tour,” she said. “She explained
FORMER HAWAII HOTEL SUITE
LISTS FOR $21.995 MILLION
An oceanfront home on the
Big Island of Hawaii is seeking
$21.995 million.
On the Kohala Coast, the
northwestern edge of the is-
land that’s a focus of high-
end development, the contem-
porary-style home was the
presidential suite of the
Hapuna Beach Prince Hotel.
The home is currently under-
going a $2 million renovation
that is scheduled to be fin-
ished in January, said Kevin
Hayes, president of West
Point Investment.
Originally built in 1994, the
house is being expanded to
more than 9,200 square feet
from 8,400 square feet, said
Mr. Hayes. Seen in a rendering
every detail of
the house to me,
and showed me
the closet.”
Josh Altman of Doug-
las Elliman and his brother
Matt Altman represented both
sides of the deal. Elliman’s
Sandy Papale and Joel Good-
rich of Coldwell Banker Pre-
views International also repre-
sented Ms. Acton.
A spokesperson for the
couple wasn’t available for
comment. —Katherine Clarke
below, it will include four bed-
rooms and 5½ baths. There
are also 2,018 square feet of
outdoor living space.
The home sits right next to
the hotel at the northern end
of the development. On more
than 1½ acres with a pool, it
fronts the ocean—there is a
small beach in front of the
house at low tide, Mr. Hayes
said—and is a short walk
from the main section of
Hapuna Beach. Owners will
have access to hotel amenities
like room service.
West Point and its partner
investment firm Angelo, Gor-
don & Co. bought part of the
hotel in 2016. West Point
plans to convert 96 of the ho-
tel’s 350 rooms into 62 con-
FROM LEFT: DENNIS MAYER; MAUNA KEA LIVING (RENDERING)

home has nine bedrooms,
DECEMBER 16TH | BOCA RATON, FL eight bathrooms and a formal
dining room, as well as a wine
Previously $6.25M. Now Selling room, a deck and a media
At or Above Only $1.5M! room. There is a large four-car
garage and parking for five or
more cars in the driveway. The
800. 262.5132 property backs directly onto
PlatinumLuxuryAuctions.com
the Presidio, a national park at
VA Property listed and offered for sale by Joyner Commercial. Listing agent Jackie Noel (Lic# 0225049645). Bid calling
by licensed VA auctioneer Bob Melvin (Lic# 2907002527). FL property listed and offered for sale exclusively by Platinum the Golden Gate Bridge.
Luxury Auctions. Bid calling by Florida Real Estate Broker Trayor R. Lesnock (BK3118083). Platinum Luxury Auctions LLC is
a licensed VA Auctioneer Firm (Lic# 2908000957), VA Foreign Limited Liability Company (ID# T059020-0), licensed FL The gated property was
Real Estate Corporation (CQ1036963), and licensed FL Auction Business (AB2956) and is not performing any real estate
brokerage services where prohibited. first designed in 1910 by archi-
tect Hermann Barth for Mary
COMING SOON: KIAWAH, SOUTH CAROLINA A. Huntington, the first wife of
Callan of McGuire Real Estate.
The Fritz family bought the
property for $5.5 million in
1989, records show, and re-
modeled and expanded it in
1994. Ms. Callan said her cli-
ent is selling because her chil-
dren had grown up ad moved
out. Ms. Fritz declined to be
interviewed.
Ms. Callan shares the listing
with her son Robert Callan Jr.,
also of McGuire.
—Katherine Clarke
dominiums, Mr. Hayes said.
Mr. Hayes said the com-
pany would like to use the
home as a marketing center,
and would sell the property
for $18.995 million if a buyer
would allow West Point to
lease the property for a year.
Tomoko Matsumoto of
Hapuna Realty has the listing.
—Sarah Tilton
 See more photos of notable homes at WSJ.com/Mansion.
Email: privateproperties@wsj.com

995 Fifth Avenue, Apt. 11SN

This is a rare opportunity to own a full floor, 8,543 sq. ft.,
residence with views in 4 directions, including 70’ directly on
Central Park. This full service white glove Rosario Candela
building has just 25 residences and is situated directly across
from the world renowned Metropolitan Museum of Art. This
boutique building includes full time doorman and concierge
providing top security and service at all times. LLC ownership
and part time residency allowed as 995 Fifth Avenue functions
with condominium rules. Asking $29,750,000 WEB# 5216781

Robert M Browne Chris Kann Jennifer Ireland

Lic. Associate RE Broker Lic. RE Salesperson Lic. Associate RE Broker
(m) 917.903.3542 (m) 646.660.2105 (m) 917.669.1440
robby@corcoran.com ckk@corcoran.com jireland@corcoran.com

Equal Housing Opportunity. The Corcoran Group is a licensed

real estate broker located at 660 Madison Ave, NY, NY 10065.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Friday, November 10, 2017 | M3

MANSION
BALANCE SHEET
KEY
A Pyramid in a COSTS
Cabinetry, including
custom kitchen units

Berlin Backyard $139,000

Brickwork
A landlord fits a ‘ship in a bottle’ piece
of architecture in a corner of his property $483,000
Roof

$33,700
would make it less intrusive.
BY J.S. MARCUS Windows
The design allows for an airy in-

ULRICH KÖSTLIN, a retired phar-
maceutical executive in Berlin with
an eye for emerging art, wanted
$287,000
terior with large, bespoke windows
with reflecting glass that gives
privacy to residents. The windows
cost $287,000. Tiling
FROM TOP: SIMON MENGES; ALEXA VACHON FOR THE WALL STREET JOURNAL (3)

to create a compelling work of

residential architecture. He found
the chance in his own backyard—
literally.
The courtyard, accessed through
a multifamily rental he owns and
where his son lives, offered just
enough space—about 1/12th acre—
for the planned two-family house.
The challenge was to make the
best of the small lot without
crowding nearby apartment
blocks. His architect likened it to
“putting a ship in a bottle.”
The resulting structure is a cre-
ative, upscale, five-story town-
house. It is up against a neighbor-
ing apartment building’s firewall
and a short walk across a paved
open space from the multifamily
building. It cost $3 million.
The project has caught the at-
tention of architects beyond the
city as an efficient way to build on
such spaces. The property is lo-
cated in the rapidly gentrifying
Prenzlauer Berg district.
“I wanted to set an example of
what architecture can contribute
to city life,” Mr. Köstlin said.
Mr. Köstlin, 64 years old and a
longtime Berlin resident, bought
the property in the mid-1990s—
not long after German reunifica-
tion opened up East Berlin to in-
vestment from the West. It
consisted of the front building and
a newly vacant lot behind it. He
paid about $470,000. Mr. Köstlin
has spent the past 20 years doing
piecemeal renovation of the build-
ing, which has 10 units and a
ground-floor restaurant.
Luxury detailing sets the court-
yard townhouse apart from its
neighbors. In contrast to the plas-
ter facades and bulky balconies
nearby, the townhouse has a sculp-
tural brick facade, with a stream-
lined pyramid shape at the top.
The aim of Mr. Köstlin, a former
member of the executive board of
Bayer, was to create a few large,
luxury apartments in an up-and-
coming neighborhood. He also
wanted to minimize noise during
the construction phase, then maxi-
mize views and light for neighbors
after the building was finished.
The plan devised by his archi-
tects was to use a prefabricated
concrete core to shorten construc-
tion time, and give it a shape that
The two lower floors of the new
building comprise a 3,000-square- $35,000
foot, three-bedroom, three-bath-
Woodwork,
room rental. On the three floors
including interior
above, there is a 2,500-square-
doors and floors
foot, three-bedroom, three-bath-
room home, where Mr. Köstlin’s
daughter, Berlin pediatrician Luisa
$138,800
Köstlin, lives with her 9-year-old Electrical work
son, Moritz. They will soon be
joined by Dr. Köstlin’s fiancé, Ervin
Beta. The doctor is expecting a
$97,600
second child in December. Heating / ventilation
Mr. Köstlin worked with the
Berlin architecture office of $218,000
Barkow Leibinger, known for the
austere concrete space it designed Outdoor areas
for Berlin’s prominent Sprüth Ma-
gers gallery, which works with $106,000
FIT IN Ulrich lined windows. She says she and
Köstlin, with his her son have gravitated toward the
daughter, Luisa, level beneath, with its open-plan
and grandson kitchen and living room.
Moritz, right, in A local cabinetmaker created
the dining area of bespoke kitchens for the two units,
the home built in at a total cost of $70,000. There
the Prenzlauer are oak floors throughout.
Berg district of Her apartment’s three bedrooms
Berlin, above. Left, are on the unit’s lowest floor,
the bespoke which is the townhouse’s third
kitchen cabinets level. But a growing family has
and large window made her wonder if her top-floor
with oak wood. salon might be better used as a
Below the top master bedroom.
unit’s salon. “We would have to add a door,”
she says, of the space. “But those
such artists as German photogra- stairs are very beautiful, and it
pher Andreas Gursky and Ameri- might ruin the experience.”
can artist Cindy Sherman. Both Mr. Köstlin’s main luxury
the gallery and the townhouse in- splurge was the townhouse’s dis-
clude the studio’s signature use of tinctive brick exterior, comprised
smooth, concrete interior sur- of five colors of bespoke masonry.
faces, such as the public stairway It cost about $483,000. The
connecting the townhouse’s two colors, from pink to orange to
units, and the naked ceilings of gray, were inspired by the colors
the apartments. of the neighborhood apartment
The townhouse replaces a rear blocks. Many of these buildings
building that was once a partner date back at least a century and
to the six-story front building that have been restored during years
faces the street. Damaged during of gentrification.
World War II, it remained a ruin, The new building’s brick facade
says Mr. Köstlin, until the final was made-to-order in a factory
years of the Communist regime, outside Berlin and required on-site
when two men and a wheelbarrow construction of elaborate samples
were sent to clear it way. “It took Köstlin tried to turn the yard into site. Overall, Frank Barkow—Mr. to perfect the subtle color scheme.
a year and a half,” he recalls resi- a communal garden for tenants in Köstlin’s American-born, Berlin- The extra time and money “were
dents telling him. the front house, but found no one based architect—estimates the in- worth it,” says Mr. Köstlin, who
The new building took nearly as was willing to join in the upkeep. accessible site added as much as lives in his own restored town-
long to build, starting construction The tight courtyard was a chal- $453,000 to the budget. house in Berlin’s Mitte district.
in January 2015 and finishing up lenge. A crane parked on the street In his daughter’s unit, the top “The brick layer is quite beauti-
in July 2016. lifted materials over the top of the floor is a single, light filled, salon- ful, and it has become a trademark
After buying the property, Mr. front house onto the construction like room, with enormous oak- for the building.”

10550 SAVANNAH DRIVE

6 BEDROOMS 7 FULL AND 1 HALF BATHS $6,750,000

This architecturally distinguished home has been masterfully sited

on a double lot and enjoys breathtaking views. The well-conceived
plan features a central entry hall and two wings with distinct garden
settings. Ideal for entertaining, the voluminous entry hall looks out to
a reflecting pool and creates a natural flow between the two wings.
A phenomenal setting, exceptional architecture and thoughtful plan
creates a truly livable family home that interacts harmoniously with its
outdoor spaces.

772 388 8400 WINDSORFLORIDA.COM

M4 | Friday, November 10, 2017 NY THE WALL STREET JOURNAL.

MANSION
LIVING HISTORY

Gateway to a Royal Neighborhood

Near London’s Buckingham Palace is Admiralty Arch, a monument being remade for luxury living

ridors and offices. Strip lighting

BY RUTH BLOOMFIELD
has been inserted into corniced
ceilings, the floors are clad with
ANYONE WHO GOT UP early to carpet tiles, and many fireplaces
watch Prince William marry Kate have been boarded up.
Middleton will already know Admi- Simply creating a “model suite”
ralty Arch, the stone edifice that to indicate how Admiralty Arch
spans the street on the way in and will be styled has taken around a

FROM TOP: BEN PHILLIPS FOR THE WALL STREET JOURNAL; DERRY MOORE (2)
out of Buckingham Palace. year and required the services of
The arch, completed in 1912 in architect Michael Blair, interior de-
memory of Queen Victoria and one signer David Mlinaric, and Andrew
of London’s iconic monuments, is Damonte, an expert in historic
some half-mile from the palace buildings and furnishings.
gates. For almost 100 years it was “We have gone back to the orig-
the base for the First Sea Lord, inal drawings of the archi-
leader of the Royal Navy, and as tect…[Sir]…Aston Webb wherever
offices for the Admiralty, the possible, and we have tried to real-
navy’s top brass. ize things that he had originally
In 2011, however, the British wanted but were not achieved,
government decided the building perhaps because of budget,” said
was too large and too grand to be Mr. Damonte.
used for mere offices at a time of Examples include bespoke brass
unprecedented austerity. The arch door handles commissioned to the
was put up for sale, for a reported design of original drawings made
£75 million, or about $98 million. by Webb but never installed.
In 2015 the winning bidder was The sensibility of the model
announced as Rafael Serrano, a HISTORIC TOUCHES Admiralty Arch, completed in 1912; below, the model unit includes a statue of Winston Churchill. suite is understated British, with a
Spanish real-estate developer and clear sense of the Edwardian era.
CEO of Prime Investors Capital. He The curving corridors—painted
is reinventing the arch as a hotel drab-green, lighted with glass lan-
with 96 bedrooms and up to four terns and accented with pale gold-
residences in its north wing, where brocade curtains—lead into sitting
successive First Sea Lords had rooms with chairs and sofas
their private apartments. ranged around open fires. The
Work on digging a two-story walls are lined with silk wallpaper
basement, to house a ballroom and in taupe and beige tones, and por-
spa, will begin later this year, and traits of long-dead admirals have
the hotel is expected to open in been hung alongside contemporary
2020. Last month it was an- artwork. And if he were alive to-
nounced that the hotel in the arch day, Webb would be surprised by
will be run by Waldorf Astoria Ho- the lavish bathrooms, with hand-
tels & Resorts. £8,000 ($9,000 and $10,500) per and the National Gallery. ill, Britain’s wartime prime minis- cut and book-matched marble,
The residences haven't officially square foot. Mr. Serrano dismisses The residences will be built ter who was First Lord of the Ad- free-standing bathtubs placed be-
been put up for sale, but according these reports. within its north wing, which has miralty between 1939 and 1940. neath large windows and steam
to newspaper reports, they have Still, to achieve a top-end price, almost 20-foot ceilings, huge win- The arch was often visited by the showers.
been discreetly marketed to ultra- he will be able to use the build- dows, mahogany doors and marble novelist Ian Fleming, who worked “This is an extraordinary build-
high-net-worth buyers since last ing’s unique location as a selling fireplaces. Elaborate cornicing fea- as a naval intelligence officer dur- ing,” said Mr. Damonte. “It is
year, with the price of a 15,000- point. As well as the royal family, tures nautical motifs, particularly ing the World War II. challenging to work on, but I
square-foot apartment set at al- close neighbors include 10 Down- anchors, designed to appeal to the Restoring this historic monu- think that we will be able to bring
most $200 million, exceeding ing Street, home to the British naval top brass who lived and ment won’t be easy. it back to life, in a way which peo-
prime central London’s top real-es- prime minister. The arch is within worked in the building. Today, the interior of Admiralty ple will like and Webb would ap-
tate prices of between £7,000 and seconds of both Trafalgar Square These included Winston Church- Arch is a confusing warren of cor- prove of.”

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©2017 Engel & Völkers. All rights reserved. Each brokerage independently owned and operated. All information provided is deemed reliable but is not guaranteed and should be


                     ! "

THE WALL STREET JOURNAL.
ANDROS, BAHAMAS
Kamalame Cay. Private island residence steps from
190 ft. of secluded beachfront. With room for
expansion, and a pool, this 2 bedroom + 3 bedroom
villa sits on nearly 1.5 acres. WEB: 31082.
$1,800,000 uS. Vanessa.Ansell@SIR.com
Damianos Sohby’s Inrnaional Raly
+1 242.359.3947 | SIRbahamas.com
ROSS, CALIFORNIA
This meticulously renovated approx 6,600 sq. ft.
property is located on a gated, verdant acre of
park-like grounds. The 4 bedroom, 6 bath,
main residence + 1 bedroom separate unit offer
serene privacy and ample entertaining space.
$11,500,000. Bill Bullock and Lydia Sarkissian.
Goldn Ga Sohby’s Inrnaional Raly
+1 415.517.7720 | globalsas.com
KeY LARGO, FLORIDA
Expansive waterfront home in Ocean Reef with
spectacular wide canal views, 5 bedrooms, 6.5 baths,
den/office, media room with bar, great room with
soaring ceilings and keystone fireplace, dining room,
chef’s kitchen, and infinity edge pool and spa.
$7,250,000. Barbara.Sibley@sothebysrealty.com
Rssll Pos Sohby’s Inrnaional Raly
+1 305.367.3131 | RssllPosSIR.com
CHICAGO, ILLINOIS
Beautiful renovation of a 2,975 sq. ft. home at the Water
Tower Residences. Unsurpassed service with 24-door
staff and concierge. Access to attached, 5-star
Ritz-Carlton Hotel & Carlton Club with new spa,
exercise facility and pool. Luxury living in iconic location
just off Michigan Avenue. $2,195,000. Nancy Tassone.
Jamson Sohby’s Inrnaional Raly
+1 312.929.1560 | j amsonsir.com
WeStON, MASSACHuSettS NeW YORK, NeW YORK
Bespoke brick manor situated on 1.5 meticulously
manicured acres in the Weston Country Club
neighborhood. This custom-built 6,400 sq. ft.
5 bedroom, 5 full and 2 half bath residence boasts
rich architectural detail and design throughout.
$3,695,000. Michael L. Carucci.
Gibson Sohby’s Inrnaional Raly
+1 617.901.7600 | GibsonSohbysRaly.com
NeW YORK, NeW YORK
900 Park Avenue. This spectacular two/three bedroom
condominium is ideally positioned on the 22nd floor
and boasts unobstructed views of Central Park
and the Manhattan skyline from every room.
$6,000,000. Serena Boardman.
Sohby’s Inrnaional Raly
eas Sid Manhaan Brokrag
+1 212.606.7656 | sohbyshoms.com/00111748
WAtCH HILL, RHODe ISLAND AuStIN, texAS
With beautiful ocean and harbor views, this classic
Watch Hill shingle style cottage evokes a bygone
era of leisurely summers. 6,000 sq. ft. of living space,
9 bedrooms and 4.2 bathrooms, and a short stroll to
beaches, shopping and restaurants. $3,300,000.
Mo & Chac Sohby’s Inrnaional Raly
+1 401.315.0808 | moandchac.com
© MMXVII Sotheby’s International Realty Affiliates LLC. a Realogy Company. All Rights Reserved. Village at Maurecourt, used with permission. Sotheby’s International Realty® is a registered trademark
licensed to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Office is Independently Owned and Operated.
BAYROC, CABLe BeACH, BAHAMAS PARADISe ISLAND, BAHAMAS St. BARtH, CARIBBeAN
4,400 sq. ft. beachfront penthouse with 3 bedrooms,
3.5 baths. Onsite gym, tennis and pool. Golf,
casino, restaurants and shopping 2 minutes away.
WEB: NZZR2M. $2,995,000 uS.
Nick.Damianos@SIR.com
Damianos Sohby’s Inrnaional Raly
+1 242.376.1841 | SIRbahamas.com
SAN DIeGO, CALIFORNIA SAN DIeGO, CALIFORNIA SAN DIeGO, CALIFORNIA WOODSIDe, CALIFORNIA
A unique 3-building compound offering one of
the best views of the San Diego harbor and skyline.
Private secured entry, gorgeous, remodeled living
spaces, infinity edge pool and spa, impeccable
landscaping, beautiful courtyard and more.
$13,900,000. Eric Iantorno and Clinton Selfridge.
Pacific Sohby’s Inrnaional Raly
+1 858.232.7652 | PacificSohbysRaly.com
KeY LARGO, FLORIDA
Stunning Penthouse in private Ocean Reef community
featuring over 5,300 sq. ft. with panoramic views,
3 bedrooms, 4.5 baths, plus an additional guest suite
(optional 5th bedroom) with two full baths on the
mezzanine level. Custom details throughout.
$4,285,000. Jay.Rourke@sothebysrealty.com
Rssll Pos Sohby’s Inrnaional Raly
+1 305.367.2027 | RssllPosSIR.com
CHICAGO, ILLINOIS
This spectacular 3,000 sq. ft., 3 bedroom, 3 bath
condo in the South Loop’s premier luxury building,
The Grant, is extensively customized and features
unrivaled, panoramic city and lake views! $1,780,000
Melanie Giglio-Vakos. TeamMVP@JamesonSIR.com
Jamson Sohby’s Inrnaional Raly
+1 312.953.4998 | jamsonsir.com
1030 Fifth Avenue. The sun-flooded and impeccably
proportioned rooms of this residence is suited to
grand entertaining and gracious living. This high
floor apartment boasts glorious open exposures in
all four directions. $46,000,000. Serena Boardman.
Sohby’s Inrnaional Raly
eas Sid Manhaan Brokrag
+1 212.606.7611 | sohbyshoms.com/00111746
NeW YORK, NeW YORK
Ultra-luxury 3 bedroom contemporary condo in
beautiful Gramercy Park! This spacious high floor
home features east/south/west city exposures
and floor-to-ceiling windows throughout.
$3,750,000. Glenn Minnick.
Sohby’s Inrnaional Raly
Ws Sid Manhaan Brokrag
+1 347.512.3333 | sohbyshoms.com/1340490
The Milburn Estate offered privately for the first time,
is situated on 5 beautifully manicured acres in the hills
of Westlake overlooking Austin's gorgeous city skyline.
Park like grounds, English gardens, a stunning pool,
towering live oaks and gorgeous views from every inch
of this property. $10,000,000. Kumara Wilcoxon.
Kpr Sohby's Inrnaional Raly
+1 512.423.5035 | Milbrnesa.com
5,000 sq. ft., 4 bedroom, 4.5 bathroom home located
on the golf course within Ocean Club Estates.
Membership and access to Atlantis and One & Only
Ocean Club Resorts. WEB: NF66JZ. $2,950,000 uS.
craig.pinder@SIR.com
Damianos Sohby’s Inrnaional Raly
+1 242.457.2282 | SIRbahamas.com
English country manor in the heart of Rancho
Santa Fe with horse facilities and exquisite living
spaces. 7 bedroom suites, fitness facility, game room,
resort size pool, gardens, a pool house with kitchen,
and a 2 bedroom detached guest house. $10,788,000.
Eric Iantorno and Mary Raser.
Pacific Sohby’s Inrnaional Raly
+1 619.823.2037 | PacificSohbysRaly.com
KeY LARGO, FLORIDA
Luxurious oceanfront estate offers the ultimate
privacy, 4 bedrooms, 5 baths, 3 living levels with
over 5,000 sq. ft. of living space, elevator, 4 car garage,
and 100 ft. concrete dock with water, power, and boat
lift. $3,800,000. Gloria.Walters@sothebysrealty.com
Ocan Sohby’s Inrnaional Raly
+1 305.712.8888 | OcanSIR.com
POtOMAC, MARYLAND
Refined elegance. Designed by renowned architect
Russell Versaci and built by acclaimed Brendan
O'Neill, this Georgian home combines elegant estate
living with modern features on a magnificent
4.5 acre lot. Lee Arrowood. $4,950,000.
lee@thefleishergroup.com
ttR Sohby’s Inrnaional Raly
+1 301.967. 3344 | rsir.com
NeW YORK, NeW YORK
Instant lifestyle and glamour await in this stunning,
fully-furnished residence located in one of Fifth
Avenue's most exclusive and prestigious white-glove
co-ops. $16,900,000. Juliette Janssens/Allison Koffman.
Sohby’s Inrnaional Raly
eas Sid Manhaan Brokrag
+1 212.606.7670/606.7688
sohbyshoms.com/00110148
NeW YORK, NeW YORK
A spacious, grandly-scaled, light-filled 3 bedroom,
3 full, 1 half bathroom corner residence in a
convenient Sutton Place location. $3,195,000.
Jeremy V. Stein.
Sohby’s Inrnaional Raly
Downown Manhaan Brokrag
+1 212.431.2427 | sohbyshoms.com/0139707
AuStIN, texAS
Exquisite contemporary designed to showcase
unparalleled views of Downtown Austin and
Lady Bird Lake and provide gracious space for
entertaining. Private with beautifully landscaped
grounds. The home is host to many exclusive affairs.
$6,950,000. Kumara Wilcoxon.
Kpr Sohby’s Inrnaional Raly
+1 512.423.5035 | 1404WildCaHollow.com
St. Barth’s most spectacular estate. 9 bedrooms
including a caretaker residence. Panoramic views
including the islands of Saba and Statia and year
round sunsets. Private five bedroom main residence,
two bedroom guest house, and two pools.
€46,000,000. tom@stbarth.com
S. Barh Propris Sohby’s Inrnaional Raly
+1 508.570.4481 | sohbysraly-sbarh.com
Magnificent light-filled Italian Villa with quality
materials throughout. Panoramic views overlook a
vanishing edge pool. Gourmet kitchen, multi-purpose
room, library/office, 6 bedrooms, 6 full & 2 half
bathrooms, and more. $3,990,000-$4,690,000.
Eric Iantorno and Clinton Selfridge.
Pacific Sohby’s Inrnaional Raly
+1 858.256.7005 | PacificSohbysRaly.com
PALM BeACH, FLORIDA
Trophy Ranch 3,640± acres. Full amenity hunting
ranch, farm, corporate retreat or development
opportunity. 5 bedroom lodge with pool. Private lake,
dock and landing strip for the ultimate in convenience.
Outbuildings. Price upon request. Wally Turner.
Sohby’s Inrnaional Raly
Palm Bach Brokrag
+1 561.301.2060 | sohbyshoms.com/palmbach
ORLeANS, MASSACHuSettS NeWtON, MASSACHuSettS
Deeded beach rights on Pleasant Bay! Lovely seaside
home located on highly desired Towhee Lane.
Overlooking Deep Pond, this unique post and beam
home has 4 bedrooms, 3.5 baths, open floor plan
and a first floor master suite. $999,900.
Hardman Liberles.
oldCap Sohby’s Inrnaional Raly
+1 508.237.3996 | oldCap.com
NeW YORK, NeW YORK
This seven room condominium with dramatic
Central Park and city skyline views is a sprawling and
sun-filled home and has recently undergone a complete
high-end renovation. $12,500,000. Nikki Field and
Amanda Field Jordan. nikki.field@sothebyshomes.com
Sohby’s Inrnaional Raly
eas Sid Manhaan Brokrag
+1 212.606.7669 | sohbyshoms.com/00111711
NeW YORK, NeW YORK
This grandly-scaled, classic yet chic 7-room
corner residence sits high up on the ninth floor
of a white-glove cooperative in the heart of the
Upper East Side. $3,095,000. Jeremy V. Stein.
Sohby’s Inrnaional Raly
Downown Manhaan Brokrag
+1 212.431.2427 | sohbyshoms.com/0139755
AuStIN, texAS
A stunning Dick Clark one story contemporary built
by Ohad Sagiv on a beautifully landscaped, 2 acre lot.
Glass doors completely disappear into the walls for
gracious indoor/outdoor entertaining. 4 car garage,
beautiful pool and spa. $3,695,000. Kumara Wilcoxon.
Kpr Sohby’s Inrnaional Raly
+1 512.423.5035 | 4017VranoDr.com
Friday, November 10, 2017 | M5
LA JOLLA, CALIFORNIA
16 exclusive residences. 4 limited edition penthouses.
1 unparalleled opportunity. A prestigious location,
unrivaled panoramic views and truly exceptional
design, Muse La Jolla is a trophy property
that is incomparable. Price upon request.
Brett Dickinson and Deborah Greenspan.
Pacific Sohby’s Inrnaional Raly
+1 858.204.6226 | PacificSohbysRaly.com
Serene and private estate in the Silicon Valley's most
exclusive community. 5 bedroom main residence
+ apartment, guest cottage, pool, pool house and
two separate garages. Centrally located between
San Francisco and San Jose, offering close drives to
tech companies and venture firms. Michael Dreyfus.
Goldn Ga Sohby’s Inrnaional Raly
+1 650.796.3375 | goldngasir.com
PLANtAtION KeY, FLORIDA
Ocean front estate on 2+ acres boasting outdoor
kitchen, sparkling swimming pool/Jacuzzi, sandy
beach, tennis court, 8-car garage, open living,
gourmet kitchen, 3 guest bedrooms, and private
master suite. *Pictures Pre Irma. $6,950,000.
Nancy.Hershoff@sothebysrealty.com
Ocan Sohby’s Inrnaional Raly
+1 305.712.8888 | OcanSIR.com
Majestic home with 5 bedrooms, 7 full & 2 half baths,
and a spectacular open floor plan. Luxurious amenities
including an elevator, an in-home theater, and a wine
cellar. Outdoor patio overlooks gracefully landscaped
grounds. $6,900,000. Michael L. Carucci.
Gibson Sohby’s Inrnaional Raly
+1 617.901.7600 | GibsonSohbysRaly.com
NeW YORK, NeW YORK
New to Market! 1105 Park and 89th Street.
Mint renovated 13 into 10 room, 4 bedrooms,
5 bathrooms. Incredible closets. Great light.
Priced to sell. $6,450,000. Cathy Taub.
cathy.taub@sothebyshomes.com
Sohby’s Inrnaional Raly
eas Sid Manhaan Brokrag
+1 212.606.7772 | sohbyshoms.com/00111866
NeWPORt, RHODe ISLAND
Remarkable waterfront residence with wonderful
harbor and sunset views. 2,400 sq. ft. of living
area with double master suites, gourmet kitchen
and designer baths. Extremely private, yet within
the heart of the bustling harbor and historic
downtown. $2,295,000.
Mo & Chac Sohby’s Inrnaional Raly
+1 401.789.8899 | moandchac.com
AuStIN, texAS
A stunning remodel in Old Enfield of a classic home
captures a timeless design with modern amenities & a
floor plan that flows and lives perfectly. Hidden behind
a beautifully landscaped and gated property, you’ll find
an urban oasis with pool, waterfall & different relaxing
outdoor spaces. $2,450,000. Kumara Wilcoxon.
Kpr Sohby's Inrnaional Raly
+1 512.423.5035 | 1625Wachhill.com
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M6 | Friday, November 10, 2017
RUSTIC RESORT Gary and Mary Ellen Giulietti in the great room of their 12,000-square-foot home at Stratton Mountain Resort. They spent between $2.5 million and $3 million to build the home.
The Quest to Create the Aspen of the East
High-end resorts are leading a real-estate rebound—albeit a slow one—in Southern Vermont
BY VALERIE STIVERS
LOUIS CHENEVERT says he was
“member No. 1” at the Hermitage
Club at Haystack Mountain, New
England’s only private-club ski
mountain, which stands at 1,400
vertical feet and has 194 skiable
acres.
Mr. Chenevert, 60, the former
CEO of manufacturing conglomer-
ate United Technologies in
Farmington, Conn., built a 5,000-
square-foot, ski-in/ski-out house
on Hermitage property in 2012,
the year after the resort opened
in Vermont’s township of
Wilmington.
The house, which he describes
as “rustic, friendly and comfort-
able,” has great views of the
mountain. When his two married
daughters and four grandchildren
visit, they can spread out in the
open-plan living space. The large
kitchen means “you’re always
around kids and people,” says Mr.
Chenevert, who paid $3 million for
the land and house and lives full-
time in St. Petersburg, Fla.
Members, who pay an $85,000
initiation fee and $9,500 a year in
dues, say that thanks to good
grooming and low traffic, the Her-
mitage Club at Haystack Mountain
now rivals ski experiences found
out West—a bold claim for New
England, which calls its ice “frozen
granular” and tries to be happy
about it.
High-end developments like the
Hermitage are leading a real-estate
recovery—albeit a slow one—in
Southern Vermont. Overall, the
market for second homes hasn’t
fully rebounded to pre-2008 levels,
but it could improve as developers
open and expand resorts, as well
as upgrade ski-related amenities,
such as lifts, snow equipment and
trail systems.
Prices of luxury homes in Ver-
mont’s top ski areas are rising
twice as fast as the median price
in those areas—the opposite of
trends nationwide, where median
prices are rising faster than luxury
prices, says Danielle Hale, chief
economist at real-estate website
MOUNTAIN VIEWS A bedroom and great room, above left and center, inside Louis Chenevert’s home at the Hermitage Club at Haystack Mountain. Above right, the development’s clubhouse.
READY FOR GUESTS The rear of the Giulietti’s post-and-beam home, above. Below, a mudroom and the dining area.
Realtor.com. (News Corp, owner of
The Wall Street Journal, also oper-
ates Realtor.com under license
from the National Association of
Realtors.)
At Stratton Mountain Resort,
residents are hopeful that new
owners will invest in improve-
ments—boosting property values
at the same time.
In August, Henry Crown and
Co., owners of Aspen-Snowmass,
and KSL Capital Partners closed a
$1.5 billion deal to acquire In-
trawest Resorts, the parent com-
pany of Stratton Mountain Resort.
MANSION
THE MARKET
David Perry, president of the new
venture, which isn’t yet named,
said he plans to make upgrades on
Stratton. Also planned is a pass
product that will offer access to all
the company’s mountain resorts,
including Mammoth in California
and Deer Valley in Utah, as well as
Intrawest’s properties in Vermont,
Colorado and Canada.
But to be convincing, Stratton,
with its long lift lines, slow chairs
and intermittent gondola service
because of wind conditions, re-
quires investment. The resort’s
new owners “are going to improve
the quality of the experience and
we are really excited,” says Kevin
Moran, a real-estate broker for
Four Seasons Sotheby’s Interna-
tional Realty on Stratton.
John Sikes of Stratton Real Es-
tate says he recently sold a 4,000-
square-foot ski-in/ski-out property
on Stratton for $2.1 million. After
the deal closed, the buyer under-
took a gut renovation. “That kind
of number is one people are will-
ing to spend,” he says.
Gary Giulietti, a partner at
Lockton Cos., a privately held in-
surance-brokerage firm, spent be-
THE WALL STREET JOURNAL.
FROM TOP: JULIE BIDWELL FOR THE WALL STREET JOURNAL (4); MEGAN HALEY FOR THE WALL STREET JOURNAL (3)
tween $2.5 million and $3 million
to build a 12,000-square-foot home
at Stratton Mountain Resort in
2009, taking over a project 4 miles
from the base lodge.
“We wanted to build a house
that could house an army,” says
Mr. Giulietti, 66, who has three
children and nine grandchildren.
About 60% of the house is post-
and-beam construction, and the
design maximizes the views, he
says. On winter mornings, his fam-
ily sits in the breakfast nook to
watch the sunrise. A garage was
turned into a billiard room, and he
put in “state-of-the-art-every-
thing” in the kitchen. “We’re very
Italian in that regard—everything
centers around food,” he says.
Still, he’s aware that the market
has seen ups and downs and says
that, given his property’s size, “it
would be a tough house to sell.”
Okemo Mountain Resort, 40
minutes north of Stratton on the
edge of the Green Mountain Na-
tional Forest, is a longer commute
from metro areas than its local ri-
vals, but offers some advantages
to prospective second-home own-
ers—the village of Ludlow, which
is increasingly popular for hip
small businesses, such as Main +
Mountain, the region’s first “bou-
tique motel” and mixology lounge,
set to open in 2018.
Okemo has been family owned
and operated since 1982 and has
kept up with improving lifts, open-
ing new trails and upgrading
snow-making equipment. The re-
sort also touts a summer Adven-
ture Zone theme park.
On the horizon is a new 200
unit ski-in / ski-out residential de-
velopment called SouthFace, cur-
rently under construction on
Okemo’s south side. The project
will be completed over several
years, and four-bedroom, 3,000-
square-foot, chalet-style homes are
currently listed for $1.8 million,
says a real-estate broker for the
development, Kathy Burns, owner
of the William Raveis franchise af-
filiation serving Okemo. The devel-
opment has a lift to the main
mountain and will eventually have
a day lodge.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Friday, November 10, 2017 | M6A

New Canaan, CT
PRIVATE GATED ESTATE
$4,950,000 | Web#99185676
Barbara Gronseth 203.524.0880

Upper East Side, NYC Upper West Side, NYC

SPRAWLING 6 BR CONDO SPECTACULAR PANORAMIC VIEWS
$20,000,000 | Web#17601827 $5,100,000 | Web#16707779
Frederick & Karen Wigdor 212.381.3391/3207 Dean Feldman & Barak Dunayer 212.381.2213/2248

East Hampton, NY Hudson, NY Hoboken, NJ

ABSOLUTE PRIVACY - AMAZING SETTING ON MANSION ROW HISTORIC JEFFERSON TRUST BANK PH LOFT
$3,565,000 | Web#11360 $1,950,000 | Web#15085984 $2,470,000 | Web#17194186
William “JR” Kuneth 631.875.4200 | Edward Brody 516.449.2803 Nancy Felcetto 917.626.6755 Matt Brown & Peter Cossio 201.478.6709/6710

Greenwich, CT
GRACIOUS WATERSIDE HOME
$15,500,000 | Web#99177771
Christopher B. Finlay 203.969.5511

Upper East Side, NYC Tribeca, NYC

CLASSIC & ELEGANT RESIDENCE DUPLEX PENTHOUSE
$14,000,000 | Web#17654292 $8,975,000 | Web#16428224
Astrid Pillay 212.381.2262 Richard Orenstein 212.381.4248

Halstead Property, LLC; Halstead Brooklyn, LLC; Halstead East Hampton, LLC; Halstead Connecticut, LLC; Halstead Property New Jersey, LLC All information is from sources deemed
reliable but is subject to errors, omissions, change or price, prior sale or withdrawal without notice. No representation or guaranty is made as to accuracy of any description. All measurements and
other information should be re-confirmed by customer. All New York Yankees trademarks and copyrights are owned by the New York Yankees and used with the permission of the New York Yankees.
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M6B | Friday, November 10, 2017
David A. Lazazzera Lic. Associate R.E. Broker, Eileen Robert Lic. Associate R.E. Broker, Edward R Freiberg Lic. R.E. Salesperson, Geraldine Dayan Lic. R.E. Salesperson, James C. Farah Lic. Associate R.E. Broker, Jon M Cella Lic. R.E. Salesperson, Kyle W. Blackmon Lic. Associate R.E. Broker, Lindsay A. Barrett Lic. Associate R.E. Broker, Steve Dawson Lic. R.E. Salesperson, William D. Eichman Lic. Associate R.E. Broker. Real estate agents affiliated with Compass are independent contractor sales associates and are not employees of Compass. Equal Housing Opportunity. Compass NY THE WALL STREET JOURNAL.

Soho
Upper West Side
is a licensed real estate broker located at 90 Fifth Avenue, 3rd Fl. NY, NY 10011. All information furnished regarding property for sale or rent or regarding financing is from sources deemed reliable, but Compass makes no warranty or representation as to the accuracy thereof. All property information is presented subject to errors, omissions, price changes, changed property conditions, and withdrawal of the property from the market, without notice. To reach the Compass main office call 212.913.9058.

15 Central Park West Kyle W. Blackmon 459 West Broadway The Copley Team
$21,000,000 646.798.8898 $7,900,000 646.226.9609
3 Bed 3.5 Bath kblackmon@compass.com 3 Bed 2.5 Bath keith.copley@compass.com
Upper East Side

Cobble Hill

45 East 66th Street Eileen Robert, David A. Lazazzera 450 Henry Street Lindsay Barrett, Jim Farah
$6,250,000 917.539.7800 $6,195,000 646.663.1092
3 Bed 3 Bath eileen@compass.com 6 Bed 4.5 Bath lindsay.barrett@compass.com
Upper East Side
Midtown

160 Central Park South Steven Dawson 515 East 72nd Street Geraldine Dayan
$4,950,000 646.382.1074 $3,395,000 305.491.1870
3 Bed 3 Bath sd@compass.com 5 Bed 5 Bath geraldine.dayan@compass.com
Midtown East
Flatiron

17 East 17th Street The Freiberg-Cella Team 14 Sutton Place South Doug Eichman
$2,729,500 917.969.7084 $1,375,000 917.741.9046
2 Bed 2 Bath teamfc@compass.com 2 Bed 2 Bath doug.eichman@compass.com

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THE WALL STREET JOURNAL. NY Friday, November 10, 2017 | M7

MANSION
ANNOTATED ROOM

A Home That Takes Things Personally

Nearly everything was custom-made for the owners of a Manhattan townhouse

THE COFFEE TABLE is

the exception. Every-
thing else in this Man-
hattan living room was
custom-made for the
3
owners.
When they bought
this roughly 5,500-
square-foot townhouse,
the owners, who work
in banking, wanted it
to be comfortable yet
sophisticated. With
three children and a
dog, the décor had to
be hard-wearing.
They asked Birgit
Klein, an interior de-
signer who specializes
in luxury homes, to
oversee a gut renova- 4
tion of the three-level
property on the Upper
East Side, a project
that lasted three years.
“We spent a lot
more money on areas
meant for entertain-
ing,” says Ms. Klein,
whose studio is based
in Los Angeles, with 5
offices in New York
and London. “The
homeowners pretty
much left the design
6
1

BIRGIT KLEIN INTERIORS

decisions up to me,”
she adds, noting that
this is the third home
2
she has done for the
couple.
—Beth DeCarbo

1. Two custom Belmondo so-
fas sit perpendicular to each
other and are upholstered in
Sahco Dante Velvet and Ar-
mani Casa Davis fabric.
Price: $19,804 for the sofa;
$2,440 for the throw pillows
2. The sofas frame a wedge
and bronze coffee table, and
most of the items on the ta-
ble and elsewhere in the room
were curated by Ms. Klein.
Price: $5,610 from Scapa
Home
3. A crystal waterfall chande-
lier features clear “drop”
glass and a bronze finish.
Price: $18,720 from Serip
America
4. Storage spaces are hidden
behind mirrors in the built-in
cabinetry next to the fireplace.
“In New York, every inch
counts,” Ms. Klein says.
Price: $40,100 for the custom
cabinetry and wet bar with lac-
quered strie finish
5. An upholstered bench pro-
vides extra seating without
blocking sightlines to the din-
ing room beyond.
Price: $4,735 for the Christian
Liaigre Grume bench with stain-
less-steel frame; $495 for the
Kelly Wearstler Serpent throw
6. Grounding the space is a
silk area rug with the same
muted tones that appear
throughout the room.
Price: $15,405 for the Mehra-
ban rug in silver from the
Elan Collection

ANYONE CAN SHOW HOMES.

IT’S OUR JOB TO KNOW HOMES.

  
    
 
   

  
 
 
 
   
bhhsnyproperties.com New York Properties

212.710.1900 • contact@bhhsnyproperties.com • 590 Madison Avenue, New York, New York 10022

© 2017 BHH Affiliates, LLC. An independently operated subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate, and a franchisee of BHH Affiliates, LLC. Berkshire Hathaway HomeServices and the
Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Equal Housing Opportunity. Information not verified or guaranteed. If your home is currently listed with a
Broker, this is not intended as a solicitation.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M8 | Friday, November 10, 2017 THE WALL STREET JOURNAL.

MANSION
FROM LEFT: SOTHEBY’S INTERNATIONAL REALTY (2); ALISSA DRAGUN FOR THE WALL STREET JOURNAL

ALL DRESSED UP Dan Colussy’s home in Jupiter, Fla. He

said he and his wife spent about five years building the
house, and that the art added about a year to the project.

BUY ART FIRST, BUILD HOME LATER

Continued from page M1 about $50,000, curls around a cy-
“taken very seriously in academic lindrical hearth. Mr. Lucovsky, 56,
and critical circles,” Mr. O’Dea said. compares the work to built-in fur-
After all, a piece that can never be niture. He and his wife, Cindy,
duplicated is inherently worth more. bought the 1,200-square-foot beach
An artwork that can’t be removed, house for $5.75 million in 2008.
however, can hurt the value of the The salty air that enters
property if the artist isn’t well- through windows or doors has oxi-
known. dized part of the piece. Ms. Miro
Mr. Piccus appears immune to chooses metals and sealants—or
such concerns. “This is my forever lack thereof—based on how the
house,” he said, explaining that he client wants the piece to age.
doesn’t disclose the price he pays Dan Colussy bought two, 2-acre
for art. “The resale value is not my lots in Jupiter, Fla., in 2003 for
problem, it’s my heirs’ problem.” $2.075 million. He and his wife
Mr. Piccus bought his property spent about five years building the
in the Venice section of Los Ange- 17,279-square-foot house. Nearly
les for $1.585 million in June 2012. every one of the ceilings has a mu-
He said he knocked down two ex- ral, which he had painted by a
isting houses and spent 18 months number of artists from around the
and about $2.1 million building a world. In the library, three domes
3,000-square-foot main house and are painted with scenes that re-
a garage-and-office building. flect Mr. Colussy’s career as an
Inspired by urban neighbor- aviation and aerospace executive.
hoods in Austin and Los Angeles, In the entryway, a floor done in pi-
Mr. Piccus added outdoor stair- etre dure—a Florentine technique
cases that resemble fire escapes, of stone inlay—depicts a scene
and modeled a patio after a load- from an Italian church.
ing dock. His rarest items, how- Mr. Colussy, 86, whose heritage
ever, are two of his outdoor art- is Italian, estimates the work
works, both of which involved added a year to the project, which
years of false starts, compromises was completed in 2009. The couple
and negotiations. planned to live there for years, but
Mr. Piccus tracked down the Mr. Colussy’s wife died about 4½
brother and manager of Daniel years ago; he now wants to start
Johnston, an artist known for fresh. He has listed the home for
ERIC STRIFFLER FOR THE WALL STREET JOURNAL (3)

painting a popular mural across $12.995 million.

from the University of Texas at Mr. Colussy declined to disclose
Austin, where Mr. Piccus attended the cost of the project, but said it
law and business school. It depicts was several million more than the
a simple cartoon frog with the home’s listing price. “We pretty
caption, “Hi, How Are You.” much understood that you’re not
After much back and forth, Mr. going to get your investment back
Piccus secured permission to re- on that type of thing,” he said.
produce the work. Then he hired Site-specific artworks could
Art Mortimer, an artist who had boost a sale price if done by a fa-
painted a nearby mural. Mr. Morti- mous artist, or if the piece can
mer added his own touches, and easily be removed and sold, said
Mr. Piccus asked him to include Ben F. Tunnell III of Los Angeles-
trompe-l’œil newspaper boxes to A DIFFERENT WORLD Photographer Lisa Mazzucco in her Montauk, N.Y., home; she and her husband, Raphael, spent based BTI Appraisal. Otherwise,
honor the ones that stood in front more than a decade transforming it into a gallery-cum-nightclub of a home. they only sometimes add value,
of the original. He also almost and can lower the price if they are
doubled the size of the painting to personalized or if a buyer has to
20 by 25 feet, to optimize views pay to remove them, he said.
from the master bedroom and Sometimes the best sales strat-
kitchen. Mr. Piccus determined the egy is simply to embrace a home’s
spacing between the garage and artistic attributes. Artist and pho-
the home, in part to accommodate tographer Raphael Mazzucco and
the mural. his wife, Lisa, spent more than a
A longtime fan of street art, a decade transforming a typical Mon-
catchall for graffiti, sculptures and tauk, N.Y., beach house into a gal-
other works created in public loca- lery-cum-nightclub of a home. The
tions, usually without permission, couple paid $920,000 for the 3,500-
Mr. Piccus had also reached out to square-foot home in 2003. Over the
the artist Invader. Invader is years, they spent about $1.5 million
known for covertly installing on renovations, he said.
brightly colored mosaics from “We sort of based the whole
Space Invaders, the 1980s-era vid- house around the art,” said Mr.
eogame, on public surfaces. He Mazzucco, 52. The double-height
sells a replica of each street-based living room became a studio, with
piece, which he calls an alias, for floors covered in spider webs of
anywhere between €20,000, or paint. The walls of an infrared
about $23,000, to €200,000, or sauna are made of Mr. Mazzucco’s
about $231,000. resin artworks. An oversize square
FROM TOP: LAURE JOLIET FOR THE WALL STREET JOURNAL (2); TODD PICCUS

After three months hashing out door hiding a “secret” wing is made
a contract, Invader agreed to create of one of Mr. Mazzucco’s early
the residential commission. “I re- pieces: a 350-pound framed photo-
member having done some sketches graph of model Gisele Bündchen.
before we [agreed] and then it The couple said they recently
went fast,” Invader said in an email purchased a home in Lebanon,
via his assistant. Mr. Piccus said he Conn., and listed the Montauk
halted construction for a week. In four-bedroom for $4.35 million.
July 2014, under the cover of dark- Their listing agent and longtime
ness to maintain his anonymity, In- friend, Dylan Eckardt of Nest Seek-
vader installed the piece. ers International, played up the in-
The result is a mosaic piece of dividuality of the home, calling it
three pixelated, alien-like crea- an “asylum for creativeness.”
tures, which cannot be removed Mr. Eckardt acknowledged that
without being destroyed. a buyer could tear down the home
Mark Lucovsky hired New York- or purchase it without the art. But
based sculptor Darcy Miro to cre- the couple never considered re-
ate a sculpture for his Santa Bar- painting the walls or staging the
bara, Calif., home knowing it would furniture. “If you did that,” said
stay put. The barnacled, amoeba- PERSONAL PLAYGROUND The Los Angeles home of Mattel executive Todd Piccus includes a reproduction of a mural Ms. Mazzucco, a photographer,
shaped white bronze, which cost near the University of Texas at Austin, above left, and an installation by Invader, a secretive street artist, above right. “you’d kill this place.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. NY Friday, November 10, 2017 | M8A

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and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color,
religion, sex, handicap, familial status, or national origin. All prices are base prices, subject to change and subject to availability.
See Sales Consultant for full details. ©2017 K. Hovnanian at Port Imperial Urban Renewal VI, LLC. 110 Fieldcrest Avenue,
5th Floor, Edison, NJ 08837-3634. * Visit khov.com/nine for full details
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M8B | Friday, November 10, 2017 NY THE WALL STREET JOURNAL.

THE UPPER EAST SIDE’S MOST

VA LUA B L E A D D RESS
The Extell tradition of world-class finishes and high quality construction continues on the Upper East Side with The Kent. Gracious,
family-sized homes designed by Alexandra Champalimaud and Beyer Blinder Belle are complemented by custom oversized
windows that feature Park to River views and 10’-15’ ceiling heights. Three levels of amenities include a grand two-story lobby,
an indoor pool, private fitness center, The Sound Lounge, Camp Kent playroom, and multiple salons for entertaining.

BATHROOM 2
CL
MASTER
CL BATH

BEDROOM 2

MASTER BEDROOM

CL
BATHROOM
WIC 3

W/D

CL BEDROOM 3
CL

WINE FOYER
RE F
LIVING & DINING ROOM
R ESIDENCE 18C
KITCHEN 3 B E D R O O M S 3 B AT H R O O M S
1,959 SQF T
DW
$ 4 , 4 9 9 ,0 0 0
SO
COMMON CH A RG ES WITH 421-A
TA X A B AT E M E N T: $ 1 . 3 5 P E R S Q F T

THE SOUND LOUNGE INDOOR SWIMMING POOL CAMP KENT

O CC U PA N CY 2 0 17 | LOW CA R RY I N G COSTS
Two to Five Bedroom Condominium Residences from $2.7M
Sales Gallery Open by Appointment
1450 Lexington Avenue

2 1 2 . 9 2 2 . 9 5 9 5 • T H E K E N T N Y C .C O M

All dimensions are approximate and subject to normal construction variances and tolerances. Square footage exceeds the usable floor area and includes columns, mechanical pipe
shafts, shaftways, chaseways, conduits and other common elements. Plans and dimensions may contain minor variation from floor to floor. Units will not be offered furnished.
Furniture layouts shown are for concept only and are not coordinated with building systems. Sponsor reserves the right to make changes in accordance with the terms of the Offering
Plan. The complete offering terms are in an offering plan available from Sponsor. File No. CD15-0238. Sponsor: 95th and Third LLC. 805 Third Avenue, Seventh Floor, New York, NY
10022. All images are a combination of photography and artist renderings. Equal Housing Opportunity. Brand by Williams New York.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. NY Friday, November 10, 2017 | M9

MANSION
HOUSE TOUR

A Sportswear Maker’s Retreat

Under Armour co-founder Kip Fulks, currently on sabbatical, lists hunting property for $13.5 million

BY SARAH TILTON

“I GREW UP A MILITARY BRAT,

bouncing from base to base. The
two things I never had money for
was a hunting property and a car,”
says Kip Fulks, the co-founder of
sportswear maker Under Armour.
He says “it was love at first
sight” when he found North Fork
Lodge, a 7,150-acre property near St.
Marys, Pa., while looking for a hunt-
ing property and family getaway.
Mr. Fulks and his wife, Beth,
paid about $7.8 million for the
property in 2007, he says. Over the
years, they have put approximately
$1 million into updates, as well as
maintenance of the property and
wildlife, he says. Now, the couple,
based in Baltimore, is listing the
property for sale for $13.5 million.
Mr. Fulks, age 45, has been on
sabbatical from Under Armour
since the beginning of October—
“taking a little breath of fresh air,”
he says. He says the sabbatical will

HALL AND HALL (2)

last six months. A spokeswoman
for the company said a sabbatical
is a benefit offered to employees
with 10 or more years of service.
Several senior executives have
left Under Armour recently amid PROPERTY HUNTING The main lodge, above, is about 6,000 square feet
declining sales; at the end of Octo- and features a great room with two stone fireplaces.
ber, the company reported its first
quarterly sales decline since going history of the home. The main front lawn is a fire pit where the
public in 2005. Chief executive lodge dates back to 1921 and fea- family roasts marshmallows and
Kevin Plank told analysts that this tures a great room with two stone plays horseshoes. There is a hill-
year “is a reset for our business fireplaces built with river rock side for skiing and sledding.
and our brand as we try to operate from the property, he says. “I can’t The property is listed with Keith
as a bigger company.” tell you how many times I’ve fallen Lenard of Hall and Hall and Bill
Mr. Fulks says they are selling asleep right there,” he says. Smith of Southbound Enterprises.
because they no longer spend The lodge is about 6,000 square Mr. Fulks is selling the house
enough time at the property. “My feet and sleeps 25 people in three furnished, which is how he bought
kids are 5 and 7 so we’re in the bunk-style rooms, says Mr. Fulks. It it, down to a 1972 snowcat that he
middle of soccer and Cub Scouts has four full baths. The land in- spied on his first visit. Mr. Fulks,
and camp,” he says. Mrs. Fulks, age cludes forests, hills and creeks, as who was born in Logan, Utah, in
37, is a community volunteer and a well as a pond where the family 1972, considered the 1972 snowcat
stay-at-home mother. likes to fish for bass. The property to be an auspicious sign when he
In addition to the land, Mr. has a skeet-shooting range as well toured the property: “I said, ‘I’m
Fulks says he was attracted to the as deer and turkey hunting. On the buying this place.’ ”

121 Marina Residence 104 • $5,800,900 414 South Harbor Drive • $3,250,000 14 Sunrise Cay Drive • Price Upon Request 10 Harbour Green • $2,595,000
4 Bedrooms, 4.5 Bathrooms 5 Bedrooms, 4.5 Baths 6 Bedrooms, 6.5 Baths 3 Bedrooms, 3 Baths
Marina Views • 1311 Lake Frontage • 826 Ocean Frontage • 1033 50’ Dockage • 1112

Marina Slip HS-01 • $2,600,000

27.5 Beam
85’ Dockage • 964

ONE CLUB
many posibilitie
8 Harbour House • $1,285,000
3 Bedrooms, 4 Bathrooms N EW HO ME S • VILLAS • CO NDO MINIU MS • MARINA DO CK S • V IL L A & H O M E R ENTA L S
40’ Dockage • 1389

Interested in learning more about the simple pleasures of this unique club? There are only two ways to
experience Ocean Reef Club – as a guest of a member or through the pages of Living magazine. Go to
OceanReefClubLiving.com or call 305.367.6600 to request your free copy and our Real Estate Guide.

William H. Dickinson, Managing Broker Lic. Real Estate Broker, Ocean Reef Club Real Estate Company® is An Equal Opportunity Company, Equal Housing
Opportunity. This material is based upon information that we consider reliable, but because it has been supplied by third parties, we cannot represent
that it is accurate or complete, and it should not be relied upon as such. This offering is subject to errors, omissions, changes, including price, or
withdrawal without notice. Offer not valid in some states.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M10 | Friday, November 10, 2017 THE WALL STREET JOURNAL.

ADVERTISEMENT

KIAWAH ISLAND, SOUTH CAROLINA AUSTIN, TEXAS BOCA/DELRAY BEACH, FLORIDA

Located at the end of a private, winding driveway, bordered by tranquil Your Lakeside Farmhouse Awaits. This spacious one-story is situated Ultimate luxury at Seven Bridges – brand new estate homes in a
marshland protected as a nature preserve, the beautifully renovated home on a 1+ acre lot in a private, gated community on the Lake Travis shoreline. highly amenitized non-golf community in Boca Raton / Delray Beach area.
at 3 Grey Widgeon Lane overlooks a tidal lagoon and features open, light- Boasting 3 bedrooms plus casita, 4.5 bathrooms, exquisite pool/spa, outdoor Generous features include impact glass, granite or quartz countertops,
filled spaces. Professionally landscaped with native plants, its 3,500 square kitchen & high-tech conveniences, this home blends the comfort of the Texas gourmet kitchens and stunning 30,000 sq. ft. club. Low HOA fees, close to
feet includes 4 bedrooms and 4 ½ baths. A Kiawah Island Club Membership Hill Country with the sophistication of a custom home. world-class shopping, great schools. Experience Seven Bridges today!
is available. From the $800’s - $2 million glhomes.com/seven-bridges
$2,250,000 kiawahisland.com/real-estate $1,690,000 PeninsulaLakeTravis.com
The Peninsula at Rough Hollow
Kiawah Island Real Estate Loren Dickey GL Homes
phone: 866.312.1780 info@kiawahisland.com phone: 512.456.3756 info@PeninsulaLakeTravis.com phone: 800.875.2179

NAPLES, FLORIDA NAPLES AREA, FLORIDA DOWNTOWN ST. PETERSBURG FLORIDA

New Luxury Single-Family, Villa and Coach Homes at The Isles of
Collier Preserve! Over half the 2,400 acres are dedicated to lakes, nature
preserves and natural habitat. The Isles Club is now open and features a
clubhouse, fitness center, resort-style pool, lap pool, yoga lawn, tennis and
pickleball courts, kayak launch and 8 miles of scenic kayak, hiking and biking
trails! 5 Mins. from Downtown Naples and the Gulf beaches.
From the mid $300s to over $1 million MintoUSA.com
13 New Models Now Open! – There is a new standard of living on
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From the $300’s - $600’s glhomes.com/Valencia-bonita
Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3
blocks from the water, artfully designed townhomes now under construction
on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2
car garage, private elevator, and amazing rooftop terrace. Low HOA fees.
Walking distance to world-class restaurants, museums, shopping, parks,
marina, and Tampa Bay.
From the $800’s to $900’s www.RegentLane.com

Minto Communities GL Homes NJR Property Investments LLC

phone: 888.483.8708 phone: 800.574.9205 phone: 727.515.5556 email: natalie@njrdevelopment.com

CHARLESTON, SOUTH CAROLINA NEWPORT BEACH, CALIFORNIA MCCALL, IDAHO

76 On the Harbor Drive - Elegant and dramatic waterfront home boasting Vue Newport is collection of 27 Waterfront Villa-style homes featuring Build your dream home at Whitetail Club in McCall, Idaho. Live life on
stunning views of the Arthur Ravenel Jr. Bridge, Downtown Charleston and 2 - 3 bedrooms, 3 baths and up to 3,050 square feet. Most residences top of the world with over 2 acres of incredible valley and lake views from
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community only 10 minutes from Downtown Charleston. 5 Bedrooms, 3 Full of contemporary finishes. Additional Vue luxuries include boutique retail, bike trail system, Nordic ski trails, indoor tennis & fitness center & the
& 1 Half Bathrooms, 5,810 sq. ft. gourmet restaurants, creative office space, onsite fitness center and boat championship golf course are all outside your doorstep.
slips up to 75 feet available for lease.
$2,800,000 From the $2,350,000s VueNewport.com $604,000 WhitetailClub.com
Handsome Properties Vue Newport Whitetail Club Realty, LLC.
Debbie Fisher & Myles McLaughlin Presented by Coldwell Banker Joe Carter
phone: 843.727.6460 phone: 949.467.3418 phone: 877.634.1725 email: jcarter@whitetailclub.com

CHARLOTTESVILLE, VIRGINIA HEBER VALLEY, UTAH - PARK CITY JOHN’S ISLAND – VERO BEACH, FLORIDA
Nestled amongst the rich viticultural valleys of the Blue Ridge just 20 Overlooking the Jack Nicklaus Signature course (Golf Magazine’s One Of The Last Buildable Lots In JI, this pristine 2.36± acre homesite
minutes from the University of Virginia, this 6 bed, 8 bath, 12,000-sq-ft home “Best New Private” in 2009), 2215 Signal Peak Court is a luxurious 6,333 sf offers 188’ water frontage, unmatched views & deep water river access.
rests on a sprawling 39 acre estate boasting river frontage, private lakes, & home with 5 BRs. As the most successful private community in the Park City Located in the most renowned club community on the east coast offering
striking mountain views. Includes separate guest cottage & preferred access area, Red Ledges has great access to world class mountain, valley, water 3 miles of pristine beach, 3 championship golf courses, 17 Har-tru tennis
at the Tasting Room & Taphouse at Mount Ida Reserve. Comprehensive estate and trail activities, all just 45 minutes from a major hub airport. courts, pickleball, squash & a spectacular oceanfront Beach Club.
management available.
$2,795,000 www.TurkeyRunCville.com/Aventador $2,500,000 www.RedLedges.com $6,900,000 JohnsIslandRealEstate.com
Red Ledges Realty
The Farms of Turkey Run at Mount Ida Reserve Chris Beardsley John’s Island Real Estate Company
phone: 434.566.5562 phone: 877.733.5334 info@RedLedges.com phone: 772.231.0900 email: wj@johnsislandrealestate.com

To Advertise Call: 800-366-3975

THE WALL STREET JOURNAL. NY / NE Friday, November 10, 2017 | M11

 
       
 
  
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 M12 | Friday, November 10, 2017 NY / NE THE WALL STREET JOURNAL.

MANSION
RELATIVE VALUES

HOMES THAT ARE ACCESSIBLE TO EVERYBODY

Properties for sale in Connecticut, Colorado and Texas that comply with the Americans with Disabilities Act
FROM LEFT: VIRTUAL 203 (2); MICHAEL BRANDS (2)

MAGEN SIMS (2)

$2.95 million $6.95 million $3.79 million
Westport, Conn. Basalt, Colo. Whitehouse, Texas
Six bedrooms, seven full bathrooms, one half-bath Five bedrooms, five full baths, three half-baths Six bedrooms, four bathrooms, one half-bath

This 9,074-square-foot Federal-style home, built in 2005, is set
on 2.72 acres, with a gunite pool, a large stone patio, an irrigated
vegetable garden and a formal English garden. The home is ADA-
compliant, with wide hallways, ramps into the home, wheelchair-
accessible bathrooms and an elevator for all three floors. Outside
is a mahogany screened porch surrounded by boxwood hedges.
Agent: Leslie Clarke, William Raveis Real Estate
Located at the foot of Mount Sopris, the 7,200-square-foot, two-
story home meets ADA standards with wide doors, accessible
bathrooms and an elevator. It is designed with feng shui sensibili-
ties. Built in 2006, the home is on 35 acres, with mountain and
valley views. It has a large great room with floor-to-ceiling win-
dows, two fireplaces and a bar that opens to an outdoor space.
Agent: Doug Leibinger, the Doug Leibinger Team/Compass
The 7,210-square-foot, three-story, Tuscan-castle-inspired, 2010
house is ADA-compliant, with an elevator, wide doorways and
hallways, and wheelchair-accessible baths. It is on a 4-acre penin-
sula, with views of Lake Tyler from many rooms, a tower and a
boathouse. There is also a saltwater pool and a nanny apartment.
Agents: Crutcher & Hartley Team, Re/Max Properties
—Stacey Altherr

ADVERTISEMENT

Distinctive Properties & Estates

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

MULTI STATE OFFERINGS ARIZONA CONNECTICUT

  
 

  
  
   




 

 
 
       

 

    

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THE WALL STREET JOURNAL. NY / NE Friday, November 10, 2017 | M13

 
 

    

  





 
 
 

      
 




    
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
M14 | Friday, November 10, 2017 THE WALL STREET JOURNAL.

MANSION

SAVED BY THE BEATLES IN GRAY BRITAIN

Continued from page M1 1977, where I worked in various
worked as a clerk in the tax bu- roles, including as a writer and di-
reau. But in Britain then, if you rector.
were a woman, you had to quit When I began to moonlight as a
once you married. writer, I needed a name other than
She sort of resented that but James Grant to avoid problems.
was very much into the idea of The pen name I chose was a funny
having a family. Her resentment accident.
added to a general feeling of mar- A few years earlier, I had begun
tyrdom. dating Jane, the woman who

Our Birmingham house was
slightly older than the one in Cov-
entry, but for my parents, it felt
like a substantial achievement.
I’m the second oldest of four
boys. I was the middle of three but
then my baby brother, Andrew,
was born when I was 14.
Our house didn’t have central
heating. We had a coal burner in
the kitchen to heat up hot water.
There was an open fireplace in the
living room and dining room, and
that was it.
My older brother, Richard, and I
were constantly battling. We had a
weird hierarchy issue. As a kid, I
was mentally restless and jealous
that he was going to school before
I was.
Richard was very smart, and my
mother, an aspirational woman,
worked with him each afternoon
on his studies. I’d eavesdrop to
pick up what he was learning. He
resented that.
Music saved my life. With the
shadow of World War II still hang-
ing over England, life was gray
and exhausted. The general feeling
was that England’s magnificence
was in the past.
When I first heard the Beatles
perform on the BBC in August
1963, the music was optimistic and
fun. It brought me into the future.
For the next 10 years, being
young was fabulous. Once or twice
a week, there were great gigs in
Birmingham and terrific singles
were released. Music was every-
thing.
I also read obsessively. TV was
fairly basic and frowned upon, and
books were the only accessible
form of visual entertainment. I
read all the traditional stuff,
mostly adventures, mysteries and
war stories.
FROM TOP: LEE CHILD (2); STEPHANIE DIANI FOR THE WALL STREET JOURNAL
would become my wife. She was
American, and we soon wound up
in New York visiting her parents in
Westchester County.
One night we went into the city
by train to see a show. On our way
back, we had to sit in separate
seats. The guy next to me heard
my accent and told me he owned a
European car—Le Car by Renault.
Except he pronounced it “Lee Car.”
Later, I told Jane, and we began
using it as an inside joke for ev-
erything—lee table, lee chair and
so on.
When our daughter Ruth was
born in 1980, we called her Lee
Child. That seemed like a perfect
pen name.
PAPERBACK WRITER Lee Child, born James Grant, in the top row far right, in a 1962 class photo in Birmingham, U.K. After I was let go from Granada
Below, with his brother David holding their brother, Andrew, about 1970. Below right, Mr. Child in his New York home. in 1995, I had just seven months of
mortgage payments in the bank.
So I wrote my first novel, which
was published in 1997.
If you want to be successful as a
novelist, quit your job and give
your money away. It really focuses
your mind.
Today, Jane and I live in a four-
bedroom apartment in a building
on New York’s Central Park West
dating back to the early 1900s. We
bought it four years ago, and our
view clears the trees, allowing us
to see the seasons change.
We also have a home near St.
After high school, I was admit- Tropez, France, and a farm that’s
ted to Sheffield University and south of London. We don’t grow
studied law. Back then, unless you anything there except hay.
were a criminal or a moron, you Recently we bought a house in
could go. I did well, but I didn’t Wyoming near my brother, An-
want to be a lawyer. drew. My wife doesn’t like the city
I had become involved in the- and prefers someplace quieter.
ater. Ever since the Beatles, I loved Nearly all of the American mov-
I was a smart kid and went to per academic. It was all about the idea that you could do some- ies I saw as a kid were either
King Edward’s School, one of the Latin and Greek, and keyed to the thing and be met with a wall of Westerns or about New York glam-
best in England at the time. It had Oxford University syllabus, which happy, beaming faces. our. So no matter which of the two
been around since 1552. felt that anything after 1485 was After I graduated, I joined Gra- homes we’re in, I still feel a sense
But the work was hard and su- dangerously modern. nada Television in Manchester in of adventure.

ROMANCE. MYSTERY. INTRIGUE.

A GREAT HOME HAS MANY STORIES.

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