For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
DJIA 23377.24 À 28.50 0.1%
What’s
News
Business & Finance
C ME aims to launch a fu-
tures contract based on
bitcoin by the end of the
year, a move that would
mark a big step in the evolu-
tion of the digital currency. A1
 Senators pressed officials
from Twitter, Facebook and
Google to explain why they
didn’t recognize Russia-
linked accounts earlier. B1
 The Dow climbed 4.3% in
October, outperforming both
the S&P 500 and the Nasdaq,
as a global economic pickup
lifted blue-chip firms. B1
 The S&P 500 edged up
Tuesday, aided by food-com-
pany shares. The Dow added
28.50 points to 23377.24. B16
 Samsung shook up its
senior ranks, looking to ad-
dress concerns about a lead-
ership vacuum at the firm. B1
 Tesla is having to wrestle
with mounting signs of labor
unrest as it cranks up pro-
duction on the Model 3. B1
 Rockwell Automation
has rejected a takeover bid
by Emerson Electric valued
at roughly $27.5 billion. B3
 Federal trade officials are
recommending that the U.S.
impose a tariff of up to 35%
on imported solar panels. B3
 The eurozone economy
slowed slightly last quarter
and the inflation rate fell. A6
 Aetna said profit rose,
while revenue fell. The in-
surer declined to address a
report of talks with CVS. B6
 BP said it would restart
share buybacks after report-
ing healthy earnings. B6
 Carlyle’s earnings surged
on strong growth in per-
formance-based fees. B15
World-Wide
 A truck mowed down pe-
destrians and cyclists on a
Manhattan bike path, killing
eight people and injuring at
least a dozen, in what offi-
cials called a terror attack.
The driver was identified as
a 29-year-old man originally
from Uzbekistan. A1, A4-5
 The House GOP tax plan
will preserve a top individ-
ual rate of 39.6%. Party lead-
ers are delaying the release
of the bill by a day to iron
out unresolved issues. A1
 Large groups of Americans
are uncertain about the GOP
plan or are skeptical about
its merits, a poll found. A2
 Papadopoulos’s plea deal
indicates he was discussing
acquiring emails from Rus-
sian contacts well before the
public was aware Democrats’
systems had been hacked. A2
 Catalonia’s ousted leader
said he would respect the re-
sult of regional elections called
by Spain’s government. A6
 The lawmaker who heads
the House financial-services
panel, Texas Republican
Hensarling, plans to retire. A3
 U.S. aircraft carriers may
remain near the Korean Pen-
insula for maneuvers during
Trump’s Asia visit. A7
 U.S. Treasury officials
urged Persian Gulf coun-
tries to clamp down harder
on ties to North Korea. A7
 Islamic State claimed
responsibility for a deadly
attack in Kabul by a boy
suicide bomber. A6
 Thousands displaced by
Harvey remain in temporary
housing. Losses are esti-
mated at $73.5 billion. A3
CONTENTS
Business News...... B3
Crossword.............. A12
Earnings..................... B6
Heard on Street.. B17
Life & Arts......... A9-11
Markets............. B16-17
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
* * * * * *
NASDAQ 6727.67 À 0.4%
BEBETO MATTHEWS/ASSOCIATED PRESS; ST. CHARLES COUNTY DEPARTMENT OF CORRECTIONS/ZUMA PRESS (SAIPOV)
STOXX 600 395.22 À 0.3%
A New York Police Department officer stood next to a body on Tuesday after a truck driver careened down a Hudson River bike path on the west side of Lower Manhattan.
Terror Rampage in New York
Driver mows down cyclists, pedestrians, killing eight and wounding several, in city’s deadliest attack since 9/11
Eight people were killed
and at least a dozen injured on
Tuesday when a truck mowed
down pedestrians and cyclists
on a lower Manhattan bike
path in what officials said was
a “cowardly act of terror,” the
deadliest attack in New York
City since Sept. 11, 2001.
By Melanie Grayce
West, Mara Gay,
Zolan Kanno-Youngs
and Kate King
The driver shouted “God is
great” in Arabic when he got
out of his truck and was con-
fronted by police, a law-en-
forcement official said.
He was identified by offi-
cials as Sayfullo Saipov, a 29-
year-old from Tampa, Fla.,
who came to the U.S. in 2010
and is originally from Uzbeki-
stan. He is in custody at a lo-
cal hospital after he was shot
in the abdomen by an officer,
police said.
A law-enforcement official
Dow Displays Industrial Strength
The Dow Jones Industrial Average raced past its peers in October, as
a pickup in economic growth around the world boosted shares of blue-
chip companies that sell everything from bulldozers to airplanes. B1
The Dow’s lead over the S&P 500 in 2017 is the biggest since 2011
7.5 pct. points
5.0
2.5
0 Siobhan Hughes
-2.5
-5.0
-7.5
2000 ’05
Note: Positive indicates Dow outperformed S&P 500; negative, underperformed.
Through Oct. 31 of each year.
Source: WSJ Market Data Group
Bitcoin Futures Plan
Signals New Respect
BY ALEXANDER OSIPOVICH
Bitcoin is moving from the
margins of the financial world
closer to its center.
CME Group Inc., the world’s
biggest exchange group, said
Tuesday it aims to launch a fu-
tures contract based on bit-
coin by the end of the year.
The plan, subject to regulatory
approval, would be a big step
forward in the evolution of the
digital currency.
Opinion.............. A13-15 Futures are a way for trad-
Property Report.... B8-10
Sports........................ A12 ers to bet on whether the
Technology............... B4 price of a commodity, such as
U.S. News............. A2-5 oil or gold, will rise or fall. In-
Weather................... A12
World News. A6-7,16
troducing a U.S. futures con-
tract based on bitcoin would
enable Wall Street banks and
> trading firms to protect them-
selves against price swings in
the digital currency. It could
also provide retail investors
with an easier way to trade
bitcoin.
Bitcoin was conceived in
WEDNESDAY, NOVEMBER 1, 2017 ~ VOL. CCLXX NO. 104
10-YR. TREAS. À unch , yield 2.374%
said police found handwritten
notes near the truck saying
that the suspect carried out
the attack in the name of ISIS.
The terror unfolded shortly
after 3 p.m., when the suspect
drove a flatbed pickup truck
rented from Home Depot for
nearly a mile along a pictur-
esque stretch of a bike path
along the Hudson River, leav-
ing behind mangled bikes and
bodies.
The carnage ended at an
intersection in Tribeca near
the World Trade Center,
where the truck smashed into
a small school bus. Then the
suspect exited his truck,
brandishing a paintball gun
and pellet gun before being
shot by a New York Police De-
partment officer.
“This was an act of terror,”
New York City Mayor Bill de
Blasio said at a news confer-
ence. “A particularly cowardly
act of terror aimed at innocent
civilians.”
Since the 2001 attack on
2017 3.26
’10 ’15
THE WALL STREET JOURNAL.
2008 by an anonymous cre-
ator known as Satoshi Naka-
moto. It is a purely digital cur-
rency, or “cryptocurrency”—
essentially, strings of ones and
zeros flitting around in cyber-
space—designed to act as an
alternative to government-
backed currencies.
Many officials and bankers
around the world, including
J.P. Morgan Chase Chief Exec-
utive James Dimon, have been
reluctant to embrace bitcoin.
Its reputation has been tar-
nished by an association with
money laundering and other
illicit activity, while volatility
and uncertainty over its legal
status have kept the digital
currency trading in the shad-
ows of global markets for
years.
CME’s plan to bring bitcoin
to the futures market offers a
stamp of approval from a fi-
nancial giant at a time when
Please see TRADE page A7
WSJ.com HHHH $4.00
OIL $54.38 À $0.23 GOLD $1,267.00 g $7.10 EURO $1.1648 YEN 113.64
port by the U.S. Government dence that Tuesday’s incident
Accountability Office. The was part of a wider plot. He
number of fatalities caused by directed state agencies to in-
domestic violent extremists crease security at high-profile
has ranged from one to 49 in a locations around the state, in-
given year, according to the cluding subways, bridges and
GAO report. airports, though NYPD offi-
Many of the incidents have cials said there was no infor-
involved lone-wolf attackers mation to suggest that there
inspired by Islamic State, al- was a continuing threat.
lowing the terror group to be- Asked if the suspect had pre-
come an international threat viously been on authorities’ ra-
Suspect Sayfullo Saipov, without always directing at- dar, a law-enforcement official
above, in an undated photo tacks itself. familiar with the investigation
President Donald Trump said, “An associate was and is
Attack in NYC said in a Twitter message
Tuesday: “In NYC, looks like
known to authorities,” but de-
clined to provide further details.
 Halloween parade goes on another attack by a very sick The suspect worked as a
with tighter security..... A4 and deranged person.” driver for Uber Technologies
 New focus on threat from Later, he indicated there Inc., the ride-hailing company
Central Asia ...................... A5 could be changes to U.S. immi- confirmed.
gration policy. “I have just or- “We are horrified by this
dered Homeland Security to senseless act of violence,” an
the World Trade Center, there step up our already Extreme Uber spokeswoman said. “Our
have been 23 incidents of radi- Vetting Program,” he said in a hearts are with the victims and
cal Islamist-motivated attacks tweet Tuesday evening. “Being their families. We have reached
that have resulted in 119 fatali- politically correct is fine, but out to law enforcement to pro-
ties, through the Orlando, Fla., not for this!” vide our full assistance.”
nightclub shooting in June New York Gov. Andrew The city’s fire commis-
2016, according to an April re- Cuomo said there was no evi- Please see ATTACK page A4
GOP Tax Plan Won’t Cut
Rate for Highest Earners
WASHINGTON—The House porate tax rate to 20%, and it remain on schedule to take ac-
Republican tax plan will pre- delays a planned repeal of the tion and approve a bill at our
serve a top individual tax rate estate tax, the people said. committee beginning next
of 39.6%, according to people Those are among the details week,” House Ways and Means
House Speaker Paul Ryan (R., Committee Chairman Kevin
By Richard Rubin, Wis.) shared with conservative Brady (R., Texas), the bill’s
groups in advance of the plan’s chief author, said Tuesday
and Kristina Peterson release. night, citing consultations with
House Republicans had President Donald Trump and
familiar with the matter, planned to release the bill House leaders.
though party leaders are delay- Wednesday but delayed it until The contours of the plan—
ing its release by a day to iron Thursday to finish technical lower tax rates, a bigger stan-
out unresolved issues. work on the legislation, circu- dard deduction, fewer targeted
The plan for the top rate late ideas among rank-and-file tax incentives and a net tax cut
marks a retreat for Republicans members and address thorny of $1.5 trillion over a decade—
on a question that has spurred issues such as how to treat de- have been clear for weeks.
intense debate in Washington: ductions for state and local What happens next is the un-
How will a tax overhaul treat taxes. Party leaders want to re- veiling of all of the particulars,
the most affluent Americans? peal the deduction, but that has which will get picked apart by
Republicans last year had been sparked a rebellion from law- Democrats and lobbyists, and
discussing a top rate of 33%, makers in high-tax states like perhaps by some Republicans
and then moved to 35% earlier
this year. But they left them-
selves open to the possibility of
New York and New Jersey and
set off a scramble for compro-
mise, centered on keeping the
Please see PLAN page A2
 Poll finds skepticism,
keeping it unchanged or lower- deduction for property taxes. uncertainty on tax bill.......... A2
ing it by some smaller amount. “We are pleased with the  GOP Rep. Hensarling to retire
The plan also drops the cor- progress we are making and we from Congress........................... A3
To the Worsening Troubles
At Sears, Add Skittish Suppliers
Manufacturers demand quicker payment and some pare back shipments
BY SUZANNE KAPNER Schwinn bicycles and Allstate insurance. Now,
bleeding cash and losing shoppers, the 124-
Shoppers hunting for this holiday season’s year-old firm is scrambling to keep suppliers—
hot toy, the L.O.L. Surprise, may have trouble the lifeblood of any retail chain—from bolting.
finding it at Sears or Kmart stores. Worried To guarantee shipments from LG Electron-
about the financial health of the retail chains, ics Inc. and Samsung Electronics Co., Sears is
the company that makes the toy, a ball that paying them cash up front for some goods,
children unwrap to reveal small dolls, has re- said people familiar with the matter. Levi
duced shipments to Sears Holdings Corp. Strauss & Co. has stopped supplying women’s
“We cut their credit line and shortened pay- jeans to the chain, said another person. At Clo-
ment terms,” said Isaac Larian, chief executive rox Co., “We have certainly adjusted our pay-
of toy maker MGA Entertainment Inc. “If they ment terms,” said CEO Benno Dorer.
pay one day late, we will cut them off.” A monthslong feud between Sears and
Sears once dominated American retailing Whirlpool Corp. burst into the open last week
and helped build famous brands, including when the sides couldn’t agree on terms to
Whirlpool appliances, Craftsman tools, Please see SEARS page A8
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 | Wednesday, November 1, 2017 * *** THE WALL STREET JOURNAL.

Papadopoulos Sought Clinton Emails Early
BY SHANE HARRIS
Former Trump campaign ad-
viser George Papadopoulos was
discussing the possibility of ac-
quiring stolen emails from Rus-
sian contacts well before the
public was aware that Demo-
cratic Party systems had been
hacked, his plea deal with the
government indicates.
That disclosure, combined
with press accounts and state-
ments from current and former
U.S. officials, suggests Trump
campaign supporters were en-
gaged in multiple lines of effort
in the spring and summer of
2016 to obtain “dirt” about
then-candidate Donald Trump’s
rival, Hillary Clinton, including
emails Russian hackers claimed
to have obtained about her.
White House special counsel
Ty Cobb said Tuesday that Mr.
Papadopoulos’s role in the cam-
paign, and his outreach efforts
to Russia described in his plea
agreement, were exaggerated.
“The press can hyperventi-
late all it wants with regard to
Papadopoulos, and they’ve
turned him into everything but
Batman,” Mr. Cobb said. “But at
the end of the day, he’s going to
be as memorable as Mr. Papa-
giorgio from [the 1997 movie]
‘Vegas Vacation.’”
Mr. Trump has said there
was no collusion between his
campaign and Russia, an asser-
tion he repeated Tuesday. The
president also minimized Mr.
Papadopoulos’s role in his cam-
paign, saying in a tweet, “Few
people knew the young, low
U.S. NEWS
level volunteer named George,
who has already proven to be a
liar.”
But at least two other Trump
aides or allies were engaged in
similar efforts as Mr. Papado-
poulos, at approximately the
same time, according to current
and former U.S. officials.
Mr. Papadopoulos was appar-
ently among the first people to
get a hint that the Russians had
undertaken an effort to steal
and release emails that would
harm Mrs. Clinton’s campaign. A
30-year-old energy expert with
no political experience before he
joined the Trump team in spring
2016, Mr. Papadopoulos was liv-
ing in London when Sam Clovis,
a senior Trump adviser, tapped
him to join a panel of foreign-
policy advisers.
Based on a March 6 conver-
sation with Mr. Clovis, Mr. Papa-
dopoulos “understood that a
principal foreign-policy focus of
the campaign was an improved
U.S. relationship with Russia,”
his plea agreement says. A law-
yer for Mr. Clovis, Victoria
Toensing, denied that he told
Mr. Papadopoulos this was a
policy goal, but said Mr. Clovis
appreciated the advice of volun-
teer advisers.
While traveling in Italy on
March 14, Mr. Papadopoulos
met a London-based professor
who took great interest when he
found that Mr. Papadopouolos
worked for the Trump cam-
paign, the plea agreement says.
Joseph Mifsud, an honorary
director of the London Academy
of Diplomacy, told the British
newspaper the Daily Telegraph
on Tuesday that he was the pro-
fessor described in the plea
agreement. Mr. Mifsud, a native
of Malta, denied any wrongdo-
ing in his interactions with Mr.
Papadopoulos, telling the news-
paper that he “had a clear con-
science.”
Mr. Papadopoulos believed
he had met someone with “sub-
stantial connections with Rus-
sian government officials,”
which Mr. Papadopoulos
“thought could increase his im-
portance as a policy advisor to
the campaign,” according to his
plea agreement.
Thus began a relationship
that led to further contacts be-
tween Mr. Papadopoulos and
other Russians, including people
who claimed to know influential
figures in the Russian foreign
ministry.
He remained involved with
the Trump team through the in-
auguration. Then, on Jan. 27,
2017, Federal Bureau of Investi-
gation agents investigating elec-
tion interference by Russia ap-
proached him and asked about
his relationship with Mr. Mifsud.
Mr. Papadopoulos now ad-
mits he lied when he told the
FBI he met the professor and
first learned about the Russian
information on Mrs. Clinton be-
fore joining the Trump cam-
paign. In fact, he said, he was
already aboard and pursuing
contacts with Russia on the
campaign’s behalf.
 Tech giants come under fire
in the Senate.............................. B1

The Tax Plan Cometh

Many Americans are unpersuaded that their tax bill would fall under
a GOP plan, but large numbers remain undecided.
PLAN GOP Tax Bill Would Affect Trump
And Clinton Voters Differently
Continued from Page One
If President Trump’s tax plan became law do you believe that you would:
wary of removing long-loved
The House tax plan bill is set to be released this week and the changes it will bring to
Pay more Pay same Pay less Don’t know the tax code, if it becomes law, are likely to vary across the country. A full accounting
in taxes in taxes in taxes enough tax breaks.
Total 25% 21% 14% 40%
“Stay tuned,” Mr. Brady told of any effects won’t be possible until the GOP announces tax rates and tax brackets.
reporters on Tuesday. “You’ll But some of the most popular breaks believed to be on the chopping block are most
Republicans 9 29 24 38 know the details very soon.”
Independents 23 19 14 44 Republicans, eager to push
heavily used by high-income areas that typically vote for Democrats.
Democrats the bill through the House by
40 16 7 38 Taxes and the political divide
Poor/Working class 27 18 8 48 Thanksgiving and onto Mr.
Trump’s desk this year, are pre- The Wall Street Journal analyzed county-level tax Solid-Clinton counties, primarily centered around
Middle class 25 24 16 34 paring an aggressive sales job, return data for 2015, the most recent year available, large metro areas, account for about 40 million tax
Upper class 22 21 22 35 bolstered by outside conserva- in three types of places: counties that President filers, while the more widely spread solid-Trump
tive groups and the White Donald Trump won convincingly, those that Hillary counties are home to about 32 million. Nearly eight
Note: Numbers rounded
House and built around the Clinton won convincingly and those that voted for million tax filers live in the Obama counties that
Source: WSJ/NBC News telephone poll of 900 adults
conducted Oct. 23–26; margin of error +/-3.27 pct. pts. THE WALL STREET JOURNAL. case that the tax cuts will boost Mr. Trump after twice voting for President Barack flipped to Trump counties. These political divisions
the economy. Obama. This analysis includes 2,219 of the nation’s reveal numerous contrasts among individual
3,111 counties (and doesn’t count Alaska, where tax returns.

Poll Finds Skepticism, “The overall bill, it is a win-

ner, and that’s why I’m ex-
cited,” said House Majority
Leader Kevin McCarthy (R., Ca-
county-level election results aren’t available).
Solid Democratic Solid Republican Trump pickups

Uncertainty on Taxes lif.).

Tax treatment for the
wealthy is among the hottest
Clinton victory of 25
percentage points or more
Trump victory of 25
percentage points or more
Trump victory in ’16;
Obama victory in ’08 and ’12

BY PETER NICHOLAS The survey suggested Mr. issues. Democrats have

The debate in Congress over
revamping the tax code begins
with large groups of Ameri-
cans not knowing much about
the Republican plan or skepti-
cal about its merits, a new
Wall Street Journal/NBC News
survey finds.
House Republicans are set
to release their tax pro-
posal this week, adding detail
to the broad outlines that
President Donald Trump and
legislative allies have put for-
ward to date.
In the new survey, 25% of
Americans rated the tax plan
promoted by Mr. Trump a
“good idea,” compared with
35% who deemed it a bad one.
Some 40% had no opinion or
weren’t sure.
In promoting the plan, Mr.
Trump has cast it as a boon to
middle-class households. Speak-
ing at the White House on
Tuesday, he called the plan “a
tax bill for middle class; it’s a
tax bill for jobs.”
Democratic critics have ar-
gued that it is aimed primarily
at the wealthiest households.
Trump and the GOP have work
to do to make their case. Some
46% of those polled said they
expected to pay more in taxes
or about the same if the plan
became law, including 25%
who said they would pay more.
By contrast, 14% said they
expected that they would pay
less in taxes if the plan were
enacted. Four in 10 respon-
dents said they didn’t know
enough to have an opinion.
“They’re starting off with
very mushy numbers and a
long way to go to compel and
convince people of the merits
of the plan,” said Bill McIn-
turff, a Republican pollster
who conducted the survey
with Democrat Fred Yang.
Another Republican argu-
ment for a tax overhaul is
that it would lift the economy
by lowering corporate tax
rates in ways that would trig-
ger job growth and wage in-
creases.
The poll was conducted Oct.
23-26 and included 900 adults.
The margin of error was plus
or minus 3.27 percentage
points.
slammed Republicans for plan-
ning a giveaway to the highest
earners. The plan to keep a top
rate of 39.6%—though possibly
for a smaller segment of the
population than currently faces
it—and to move slowly toward
estate-tax repeal shows the
GOP is approaching rates for
the wealthy cautiously.
The party also faces compet-
ing priorities and is con-
strained by concerns about
budget deficits. Mr. Trump has
said he wants the overhaul to
be focused on cuts for middle-
income households.
The Republican retreat on
high-end individual tax rates
means some high-income wage
earners could face higher fed-
eral tax bills, particularly if
they live in high-tax states and
are thus no longer able to de-
duct their state income taxes,
as the plan will suggest.
Democrats point to the sig-
nificant benefits that remain in
the plan for many high-income
and wealthy households, in-
cluding what is likely to be a
higher income threshold for the
top rate and repeal of the es-
tate tax. Importantly, the plan
is expected to include a lower
rate for much business income
reported on individual tax re-
turns, which means less income
will face the 39.6% tax rate.
“The GOP will give the
wealthiest one percent tax
breaks worth trillions of dol-
lars, but Republicans want to
force millions of hard working
American families to pay more
in taxes,” House Minority
Leader Nancy Pelosi (D., Calif.)
said in a statement Tuesday.
Mr. Brady and committee
members have kept the details
closely guarded, and precious
few bits have emerged beyond
the outline that congressional
Republicans and the Trump ad-
ministration released in late
September. That has stoked
frustration and nervousness
among Republicans.
Among the important pieces
Tax returns in 2015
40 million 32.5 million 7.8 million
Average income $79,939
reported: $55,822 $59,462
State/local tax deductions Mortgage interest and
Republicans have been talking charitable donation deductions
about repealing the deduction for
state and local taxes, which tend Nearly doubling the standard deduction would erode the
to be higher in Democratic- benefit of the deductions for mortgage interest and charitable
controlled places. They have the contributions. Use of those breaks is concentrated in coastal
most to lose. The GOP's proposal areas with high-income households.
to keep a deduction for property
taxes may change this calculation. Mortgage interest deduction Charitable contribution deduction
% OF RETURNS AVG. AMOUNT
32.5% $16,934 21.7% $10,173 26.9% $7,039
23.3% $7,879 17.2% $7,019 18.7% $5,928
27.5% $11,049 20.6% $7,070 22.5% $4,094
Nationally: 29.7% $12,432 Nationally: 21.6% $8,608 Nationally: 24.6% $5,930
Child tax credit Earned income credit
The child tax credit is expected to rise—by an An outline of the GOP plan provided no
undetermined amount—in the GOP plans. That details on the fate of this credit, which is
credit is more evenly distributed across the claimed by low-income filers at nearly equal
country. But it is rates in Democratic
AVG. AVG.
most frequently % OF RETURNS AMOUNT
and Republican % OF RETURNS AMOUNT
claimed in strongholds.
Trump-friendly 12.9% $1,109 19.9% $2,461
pockets of Utah and 16.8% $1,279 19.6% $2,423
Arizona, where more
14.3% $1,246 16.9% $2,295
than one-quarter of
taxpayers use it. Nationally: 14.9% $1,207 Nationally: 18.8% $3,047
Note: Child tax credit figures don’t include the expected higher credit.
Sources: Internal Revenue Service (tax returns, rates); David Leip’s Atlas of Presidential Elections (election results).
Max Rust and Richard Rubin/THE WALL STREET JOURNAL.
still unknown are new rules for lion over a decade, but the bud- cut is important to Mr. Trump,
the overseas income of U.S. get they wrote allows for only who pushed back on Tuesday
companies, the income cutoffs $1.5 trillion. They are looking against reports that Republicans
for individual tax brackets, the for ways to reduce the cost of would cut the 35% rate three
size of the child tax credit and their plans, either by phasing points at a time for five years.
which rules apply to a 25% tax in tax cuts or repealing some “We’re not looking for that,
rate for businesses such as tax breaks. They also need to no. We’re not looking for that,”
partnerships that pay taxes prevent the tax plan from in- Mr. Trump said before a meet-
through their owners’ individ- creasing budget deficits after ing with business trade-group
ual tax returns. Hundreds of the first decade if they want to leaders at the White House.
other details wait under the avoid a 60-vote threshold in “Some people have mentioned
surface. the Senate that would require that. Hopefully not.”
The Republicans’ rate-cut Democratic votes. —Rebecca Ballhaus
goals total more than $5 tril- The immediate corporate tax contributed to this article.

CORRECTIONS  AMPLIFICATIONS THE WALL STREET JOURNAL

(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)

Joseph DeSimone, founder
of Carbon Inc., is still a professor
at the University of North Caro-
lina. An article in the November/
December issue of The Future of
Everything magazine about a
partnership between Adidas AG
and Carbon, a 3-D-printing
startup, incorrectly said he had
left the school. Also, the 3-D
printer Carbon uses for its new
printing process is called the
M2. The article and a photo cap-
tion incorrectly referred to it as
the SpeedCell, which is the name
of the whole system, including
the software that runs the M2.
J.C. Penney Co.’s current
fiscal year ends Feb. 3. A Busi-
ness News article on Saturday
about the department-store
chain cutting its earnings out-
look incorrectly said the com-
pany’s fiscal year ends Jan. 28.
The first name of Sean
Smith, an information manage-
ment officer who died in the
2012 attack on a U.S. diplo-
matic compound in Benghazi,
Libya, was incorrectly given as
Steven in a World News article
on Tuesday about the capture
of a suspect.
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THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A3

U.S. NEWS

Harvey’s Toll
Still Growing
Months Later
Thousands without
homes after August
storm, which caused
$73.5 billion in losses
BY TAWNELL D. HOBBS
HOUSTON—This region has
spokeswoman for the Harris
County Engineering Depart-
ment. “This is the long haul.”
Texas employment fell in
the wake of the storm, with
about 4,400 jobs lost in Sep-
tember, mostly in leisure and
hospitality businesses—a 0.4%
decline from August, after
months of steady growth, ac-

STUART VILLANUEVA/ASSOCIATED PRESS

cleared enough post-flood de-
bris from its neighborhoods to
fill 700 Olympic-size pools.
But two months after Hurri-
cane Harvey swept across
Texas, tens of thousands of
people are still living in tem-
porary housing and some
schools remain closed.
Moody’s Analytics esti-
mates that Harvey caused
$73.5 billion in economic
loss—making it the second-
costliest natural disaster in
U.S. history after Hurricane
Katrina. The estimate includes
costs for destruction of prop-
erty and loss of output due to
lost productivity.
Most of that damage was
sustained in Harris County,
Texas, which includes the
heavily populated Greater
Houston area. While the ma-
jority of businesses are back
up and running, city and
county officials say the recov-
ery from personal loss pres-
ents a bigger challenge that
could drag on for years.
As of mid-October, almost
61,500 people displaced by
Harvey were living in hotel
rooms paid for by the Federal
Emergency Management
Agency. The displaced occu-
pied almost 22,000 rooms
across 37 states, mostly
in Harris County. Red Cross-
affiliated shelters housed 530
victims in Texas last week.
“This is nothing that’s go-
ing to be over anytime soon,”
said Dimetra K. Hamilton,
cording to the Federal Reserve
Bank of Dallas. But the bank
expects figures to rebound in
October and the hurricane’s
effect on 2017 employment
growth to be minimal.
Nationally, economic
growth remained strong de-
spite Harvey and the more re-
cent Hurricane Irma in Flor-
ida. Gross domestic product Daniel Brown surveys his damaged house in Friendswood, Texas. He and his family, including special-needs children, fled before the storm.
expanded at a 3% annual rate
in the third quarter, compared FEMA estimates that about mode. The Houston Indepen-
with 3.1% annual growth in the $5.07 billion in federal funding Costly Catastrophes dent School District has six
second quarter, according to has already been provided for The biggest economic losses from natural disasters in the U.S., schools closed due to damage.
the Commerce Department. Harvey-related expenses such in billions The district estimates repairs
The hurricanes likely sup- as temporary housing, home will run to $78 million, but of-
pressed business activity such repairs or replacements, Na- Hurricane Katrina (2005) ficials expect that to increase.
as oil-and-gas extraction in tional Flood Insurance Pro- Hurricane Harvey* (2017) Harmony Public Schools,
Texas and agricultural produc- gram payouts, and low-inter- Superstorm Sandy (2012) Texas’ largest charter school
tion in Florida. But they likely est loans for businesses, network, reopened its 19
Hurricane Maria* (2017)
boosted other types of activ- renters and homeowners. Houston-area schools on
ity, such as emergency ser- City and county officials are Hurricane Irma* (2017) Sept. 11, after closing them
vices and repair efforts. The also dipping into local funds. Hurricane Andrew (1992) Destruction for two weeks due to Harvey’s
Commerce Department said “it Houston projects its out-of- Los Angeles earthquake (1994) Lost output destruction.
is not possible to estimate the pocket costs will reach about Hurricane Ike (2008) Teachers and staff in-
overall impact of Hurricanes $1 billion. Hurricane Hugo (1989) creased their home visits to
Harvey and Irma on 2017 Houston Mayor Sylvester check on students during the
San Francisco earthquake (1989)
third-quarter GDP.” Turner and Harris County closures and have continued
Harvey made landfall Aug. Judge Ed Emmett set up the $0 billion 50 100 150 their visits since reopening
25, bringing high winds and 4 Hurricane Harvey Relief Fund Note: Figures are inflation-adjusted. *Estimates as of Oct. 27. the schools.
feet of rainfall in some areas, for victims, raising about $80 Source: Moody's Analytics THE WALL STREET JOURNAL. During one check, school
and submerging up to 30% of million, a spokesman for the officials found Jessica Villago-
Harris County. The storm was mayor said. house with about 4 feet of wa- In total, the lift and repairs to mez, 25, and her three chil-
blamed for the deaths of 88 The final count of homes ter. It was the third major his home are expected to cost dren living in squalor in tem-
people, with five other deaths damaged by Harvey is still un- flood since 2006 for his one- around $780,000. An addi- porary housing after being
under review, according to known, but Harris County offi- story, 4,200-square-foot home tional $350,000 will be cov- moved from their flooded
preliminary results from the cials say more than 136,000 in the Meyerland area of ered by the National Flood In- apartment. Ms. Villagomez
Texas Department of State county structures flooded. southwest Houston, close to a surance Program. was working part time and
Health Services. Houston resident Frank In- bayou prone to flooding. Mr. Inselbuch, who expects broke. The school offered her
Texas Gov. Greg Abbott selbuch was already in the pro- Mr. Inselbuch’s home is to pay about $100,000 himself, a full-time cafeteria job.
projects the state will need be- cess of having his home raised now lifted about 5 feet, 8 said moving wasn’t an option. “We had lost everything,”
tween $150 billion to $180 bil- under a federal program when inches higher, paid for in part Southeast Texas school sys- Ms. Villagomez said. “I’m
lion in federal aid to recover. Harvey struck, flooding his by a federal grant of $330,000. tems also remain in recovery thankful for everybody.”

Hensarling Homeownership Rate Rises in a Tight Market

Won’t Run BY LAURA KUSISTO prices remain relatively af-
fordable. The homeownership

For House The homeownership rate

inched up in the past several
months to the highest level
rate there climbed to 69.1%
from 68% in the second quar-
ter. The other parts of the

Seat Again since 2014, as more U.S.

BY ANDREW ACKERMAN
WASHINGTON—Rep. Jeb
Hensarling of Texas, the head
of a House panel responsible
for overseeing Wall Street and
financial regulators, said he is
retiring from Congress at the
end of 2018.
As a conservative Republi-
households are finding a way
to buy homes despite limited
country, where prices are in-
creasing much more quickly,
saw their homeownership
supply and rising prices. rates remain flat.
The homeownership rate There are additional indica-
climbed to 63.9% in the third tions in Tuesday’s report that
quarter, up from 63.7% in the households are shifting to
second quarter and 63.5% a owning from renting. The
year earlier, the Census Bu- number of owner households
reau said Tuesday. increased by 755,000 from a
The increase isn’t consid- year earlier, while the number
ered statistically significant, of renter households declined
but it marks the second con- by 348,000, according to the
SWAYNE B. HALL/ASSOCIATED PRESS

can and chairman of the House
Financial Services Committee,
he has pushed to cut the size
of government. Many of his
top policy goals have lan-
guished, in part because of a
lack of Democratic support in
the Senate. Those goals in-
cluded a broad rollback of the
2010 Dodd-Frank financial-
overhaul law and phasing out
government-controlled mort-
gage companies Fannie Mae
and Freddie Mac.
“Although service in Con-
gress remains the greatest
privilege of my life, I never in-
tended to make it a lifetime
commitment, and I have al-
ready stayed far longer than I
had originally planned,” said
Mr. Hensarling, 60 years old.
Mr. Hensarling’s tenure as
chief of the financial services
panel was due to end in early
2019 because of GOP term lim-
its for committee chairmen.
He was first elected to the
House in 2002.
Some of the House Republi-
cans expected to make a bid
for the post include Reps.
Blaine Luetkemeyer of Mis-
souri, Sean Duffy of Wiscon-
sin, Bill Huizenga of Michigan
and Ed Royce of California, ac-
cording to House GOP aides.
Other members of the fi-
secutive quarterly gain, which Census.
suggests upward momentum. That nonetheless suggests
Home sales have been sluggish that overall household forma-
in recent months, while price tion is fairly weak, with just
gains are continuing to accel- over 400,000 households
erate, raising concerns that formed in the third quarter.
demand is shrinking. The sharp decline in the
“We’re moving in the right number of renter households
direction in terms of trying to is a worrying development for
get renters into homes,” said Inventories of new and existing single-family homes are about 20% below the long-term average. apartment-building landlords
Svenja Gudell, chief economist given that a flood of new
at Zillow, a housing-data com- culty of finding an affordably toric norm of around 65% and fordable.” rental supply has been hitting
pany. “We’re seeing some priced home to buy. Current the high of more than 69% The S&P CoreLogic Case- the market this year. More is
movement but not as much as inventory levels of both new reached during the bubble Shiller National Home Price expected to become available
you would expect given other and existing single-family years leading up to the 2008 Index, which covers the entire into 2018.
indications in the market,” homes are about 20% below crash. nation, rose 6.1% in the 12 Economists said they have
such as strong job growth and the long-term average. “It’s struggling to break months ended in August—the seen some falloff in demand
low mortgage rates. The homeownership rate out,” said Lawrence Yun, chief biggest annual increase since for apartments mainly because
This release also indicates touched a 50-year low in the economist at the National As- June 2014. much of the new supply is tar-
demand for homes remains second quarter of 2016 and sociation of Realtors. “The The increase in the home- geted toward the high end and
strong and buyers aren’t being has since increased fitfully. It first-time buyers are getting ownership rate was strongest there is a limited pool of rent-
entirely deterred by the diffi- remains well below the his- priced out. Housing is unaf- in the Midwest, where home ers who can afford those.
Hedge-Fund Founder Gives University $125 Million
BY BEN LEUBSDORF be called the Kenneth C. Grif- free-market champions like and boost resources for faculty
fin Department of Economics. Milton Friedman, is one of the members as well as undergrad-
The University of Chicago’s Mr. Griffin, who graduated nation’s leading hubs of eco- uates and graduate students. It
economics department will be from Harvard University, lives nomic research and thought. also will pay for a “research
renamed for billionaire hedge- in Chicago and became a Uni- Economics is the most popular incubator that will fund econo-
fund manager Kenneth Griffin, versity of Chicago trustee in major and six current Chicago mists across the campus who
who will give $125 million to 2014. He said in a statement the professors are Nobel laureates we feel are good long bets” but
the university. university “has transformed our in economics including this whose research wouldn’t nec-
The Citadel LLC founder understanding of economics” year’s winner, behavioral essarily attract funding from
and chief executive’s gift, to be and its faculty and students economist Richard Thaler. more-traditional sources such
DAVID PAUL MORRIS/BLOOMBERG NEWS

nancial-services panel, includ-
ing Rep. Frank Lucas of Okla-
homa and Rep. Patrick
McHenry of North Carolina,
could throw their hats into the
ring for the post, according to
congressional aides.
Mr. Hensarling’s Dallas-area
district is heavily Republican.
President Donald Trump won
62.5% of the vote in the 2016
election.
announced Wednesday, will be
used to pay for more econom-
ics professors, expanded fi-
nancial aid for students and
creation of a research incuba-
tor, among other things.
“You need resources to take
long bets,” said John List, the
Kenneth C. Griffin distin-
guished service professor of
The economics department will economics at the university
be named for Kenneth Griffin. and chairman of what will now
“have challenged the status quo
to produce pioneering research
and path-breaking ideas.”
He added: “The culture of
rigorous questioning and open
discourse at the University of
Chicago has opened minds to
ideas that have changed the
world.”
The university, namesake of
the Chicago school of econom-
ics and long associated with
The intended gift, coming as government agencies and
from the Kenneth C. Griffin foundations, he said.
Charitable Fund, will be the An example of such re-
second-largest in the private search, he said, would be the
university’s history. In 2008, groundbreaking work on social
investor David Booth donated problems by the late Chicago
$300 million to the business economist Gary Becker, who
school, which was renamed started in the 1950s outside
the University of Chicago the mainstream but ended up
Booth School of Business. birthing a “core line of think-
Mr. List said the gift will ex- ing” in economics. Mr. Becker
pand the department’s size won the Nobel Prize in 1992.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A4 | Wednesday, November 1, 2017
Parade Goes On With Tighter Security
BY CHARLES PASSY
New York City’s Halloween
parade went on Tuesday night
with beefed-up security after
the terrorist attack in lower
Manhattan.
The 44-year-old event in
Greenwich Village draws as
many as two million annually.
It’s known for its outrageous
and colorful costumes.
“We’ve added more re-
sources, more police officers,
heavy weapons teams [and]
blocker vehicles on the
street leading to the [pa-
rade] route,” said Carlos
Gomez, the New York Police
Department’s chief of de-
partment.
Mr. Gomez added that
heavy weapons teams were
also “being deployed
throughout the city at key,
iconic locations.”
Paradegoers said they felt
safer knowing there was such
a strong police presence.
“I had to be here,” said
Janet Jones, an East Orange,
N.J., resident who has been
coming to the parade for more
than two decades. Ms. Jones
ATTACK
Continued from Page One
sioner, Daniel Nigro, said the
deaths and serious injuries
were caused by the truck,
rather than the paintball or
pellet guns. Mr. Nigro said six
of the eight people killed in
the attack were male and were
pronounced dead at the scene,
and two more were pro-
nounced dead at a hospital.
Among the dead were five
friends visiting New York City
from Rosario, Argentina, ac-
cording to a statement posted
on the Twitter account of the
Ministry of Foreign Affairs of
Argentina. Another member
of the group remains in New-
York-Presby terian/Lower
Manhattan Hospital, accord-
ing to the statement.
In a tweet, Didier Reynders,
the deputy prime minister and
foreign affairs minister for
Belgium, confirmed that one
of the victims was from Bel-
gium. Three other Belgians
were hospitalized, he said.
Stuyvesant High School and
the Borough of Manhattan
Community College are among
the schools located in the
area; most were temporarily
locked down until the scene
was secured in the early eve-
ning, just hours ahead of the
city’s popular Halloween pa-
rade, which attracts thousands
to the west side of Manhattan
not far from where the inci-
dent occurred.
Mr. de Blasio said at the
news conference that the city
would deploy additional offi-
cers Tuesday evening and in
the days ahead, including
heavy-weapon teams and sand
Among the dead were
five friends who were
visiting New York
City from Argentina.
trucks that are used to block
vehicles.
“This is a tragedy of the
greatest magnitude,” NYPD
Commissioner James O’Neill
said.
The police officer who shot
the driver was identified by a
city council member as Officer
Ryan Nash. “Here’s the hero
cop the world should be talk-
ing about,” Councilman Joe
Borelli, a Staten Island Repub-
lican, said on Twitter.
A senior law-enforcement
official said the driver en-
tered New York City via the
George Washington Bridge,
more than 10 miles from the
attack site.
Over the past two years,
Mr. O’Neill said, police have
made efforts to prevent vehi-
cle attacks such as the ones
that occurred in France and
Germany. Mr. O’Neill said
there are 148 truck-rental lo-
cations in the area and the
NYPD has done extensive out-
reach to those businesses to
help prevent attacks.
John Miller, deputy com-
missioner of the NYPD’s coun-
terterrorism and intelligence
unit, said in June that there
have been about 25 terrorist
plots against New York City
since the attacks on Sept. 11,
2001, most of which were
thwarted. Common targets in-
Police provided more resources to maintain security for New York’s Halloween Parade, a 44-year-old tradition in the city.
came dressed for the occasion,
sporting a ghoulish outfit with
a zombie-meets-housewife
theme.
In addition to the city’s
Eight people were killed when a truck was driven onto a bike path, above; investigators inspect the truck, below; first responders aid a woman who was injured, bottom.
cluded Times Square, the
Brooklyn Bridge and John F.
Kennedy International Airport,
he said.
The lower Manhattan
neighborhood was swarmed
with police and trick-or-treat-
ers late in the afternoon. Many
children were in costume with
their parents. Police blocked
off the West Side Highway
south of 14th Street and ush-
ered pedestrians away from
the scene. Traffic in the area
was at a standstill.
Witnesses described a cha-
otic scene Tuesday afternoon
as people struggled to figure
out the source and nature of
the threat.
Ezequiel Gonzalez said he
was walking west on Cham-
bers Street toward the West
Side Highway when a commo-
tion and other pedestrians
urged him to stand back. The
18-year-old Columbia Univer-
sity freshman said he saw a
P W L C 10 11
TERROR IN NEW YORK CITY
efforts, Gov. Andrew Cuomo
directed the state police, Na-
tional Guard, Port Authority
of New York and New Jersey,
and other government agen-
truck with a large dent and a
white sheet in the street that
he believed was a body bag.
Tawhid Kabir, a 20-year-old
student at the Borough of
Manhattan Community Col-
lege, said he witnessed the fi-
nal moments when the suspect
was shot by police.
“He was scared, and he was
just running randomly in the
street with the two guns,” said
Mr. Kabir of the suspect and
the imitation weapons police
later said he was carrying.
“When I heard the shot, then I
saw him down on the ground.”
Mr. Cuomo told New York-
ers to go on living their lives.
“We’re not going to let
them win,” he said at the
briefing. “Live your life and
don’t let them change or deter
us in any manner or form.”
—Leslie Brody,
Mike Vilensky
and Shelby Holliday
contributed to this article.
12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ******
cies, to increase security and precautionary and not based
personnel at bridges, tunnels, on any intelligence about ter-
public-transit systems and ror threats.
other crowded areas. His of- Mr. Cuomo, who marched in
fice said the measures are the Halloween Parade with
Sequence of Events
At 3:05 p.m. the driver of a
rented Home Depot truck
enters the bike pedestrian
path along West Street at
West Houston Street.
Traveling south on the
path, the driver strikes
multiple people, killing at
least eight.
The truck collides with a
school bus at Chambers
Street. The driver gets out
holding a paintball gun and
a pellet gun.
A nearby police officer fires
at the driver, hitting him in
the stomach. The driver is
later taken into custody.
Source: NYPD (events); Google Earth (image)
THE WALL STREET JOURNAL.
Mayor Bill de Blasio, also di-
rected the One World Trade
Center spires to be lit in red,
white and blue.
Still, some Halloween revel-
ers said it was hard to look
past the somber happenings
earlier in the day.
Lucy Sexton, a dance-the-
ater artist who was passing
out candy in front of a Chelsea
building, said that while trick-
or-treaters were keeping her
busy, the mood felt different
HOLLY PICKETT FOR THE WALL STREET JOURNAL
this Halloween.
“It seems a little subdued,”
she said.
Looking beyond Halloween,
the city appears ready to go
about its business. For exam-
ple, the New York City Mara-
thon, slated for this Sunday, is
still set to take place.
Officials with New York
Road Runners, the organiza-
tion that produces the mara-
thon, said in a statement that
“we have extensive safety and
security measures in place,
both visible and behind the
scenes.”
—Mike Vilensky
and Zolan Kanno-Youngs
contributed to this article.
CRAIG RUTTLE/ASSOCIATED PRESS, DON EMMERT/AGENCE FRANCE-PRESSE/GETTY IMAGES, BRENDAN MCDERMID/REUTERS
W. Houston
St.
West St.
Ch
am
be
rs
St.
THE WALL STREET JOURNAL.
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. * * * * * * Wednesday, November 1, 2017 | A5

TERROR IN NEW YORK CITY

Trump
Calls
Central Asia Seen as Terror Source
BY JESSICA DONATI has been favored in recent ter-

Attacker AND PAUL SONNE

WASHINGTON—Tuesday’s
What We Know
About the Suspect
rorist attacks. Foreign terror-
ist organizations have urged
such attacks in the past and as

‘Very Sick’ attack in New York has accen-

BY JESSICA DONATI
President Donald Trump
initially tweeted in response
to the incident in New York:
“Looks like another attack by
a very sick and deranged per-
son. Law enforcement is fol-
lowing this closely. NOT IN
THE U.S.A.!”
An hour later, Mr. Trump
appeared to link the attack to
the extremist group Islamic
State, tweeting, “We must not
allow ISIS to return, or enter,
our country after defeating
them in the Middle East and
elsewhere. Enough!”
Still later in the evening,
Mr. Trump tweeted that he
had ordered the Department
of Homeland Security “to step
up our already Extreme Vet-
ting Program.”
White House press secre-
tary Sarah Huckabee Sanders
said Mr. Trump had been
briefed on the New York inci-
dent by White House Chief of
Staff John Kelly.
No group immediately
claimed responsibility for the
attack, although a law-enforce-
ment official said police found
notes near the suspect’s truck
saying that the attack was car-
ried out in the name of ISIS.
The SITE Intelligence
Group, which monitors and
tracks radical groups online,
reported Monday that a pro-
Islamic State French media
group had called on lone wolf
jihadists to carry out attacks
on Halloween.
Foreign terror organiza-
tions have urged such attacks
in the past, and as early as
2010 the al Qaeda magazine
“Inspire” advocated using
heavy vehicles such as trucks
to run down civilians. The act-
ing secretary of homeland se-
curity, Elaine Duke, said the
department was closely moni-
toring the “apparent act of
terrorism.”
tuated the growing threat pre-
sented by jihadi-inspired ter-
rorism from Central Asia, the
onetime Soviet region between
Russia and China where little
economic opportunity and less
political freedom have com-
bined to drive young men to-
ward radicalism.
Officials identified the sus-
pect who allegedly mowed a
truck through a Manhattan
bike path, killing at least eight
people and injuring a dozen
others, as Sayfullo Saipov, a
29-year-old man of Uzbek ori-
gin.
Mr. Saipov, in custody at a
local hospital after being shot
in the abdomen by a police of-
ficer, came to the U.S. in 2010
and is originally from Uzbeki-
stan, officials said. A law-en-
forcement official said police
found handwritten notes near
the truck saying that the sus-
pect carried out the attack in
the name of the Islamic State
extremist group.
The FBI didn’t immediately
comment on whether the Uz-
bek national, who was a resi-
dent of Florida, was previously
known to authorities.
Uzbekistan has a history of
Islamist militancy, centering
primarily on the Islamic Move-
ment of Uzbekistan, which has
splintered since its founding in
the late 1990s, with resulting
offshoots allying with the Tali-
ban, al Qaeda and Islamic
State.
A 2015 report by the Inter-
national Crisis Group warned
that growing numbers of Cen-
tral Asians were traveling to
the Middle East to support or
fight for Islamic State,
“prompted in part by political
marginalization and bleak eco-
nomic prospects that charac-
terize their post-Soviet re-
gion.”
The report said ethnic Uz-
beks were most numerous
among the Central Asians
fighting with Islamic State.
The report estimated that
Suspect Sayfullo Saipov is seen running in a video taken at the
scene of the New York terrorist attack.
2,000 to 4,000 Central Asians
in total had joined the Sunni
Muslim extremist group.
Now, as defeated Islamic
State fighters begin to file out
of Syria and Iraq, Uzbek na-
tionals pose an added risk in
many parts of the world. They
have been linked to a handful
of terrorist cases in recent
years, including in recent in-
cidents in Sweden and Russia.
They also had been targeted
in counterterrorism operations
in the U.S. In 2015 federal
prosecutors in New York
charged a number of Uzbeks
living in Brooklyn with con-
spiring to join or aid Islamic
State. The arrests were the re-
sult of an investigation that
began after one of them
posted to an Uzbek-language
website that called for visitors
to join the extremist group.
Uzbekistan isn’t among the
11 countries targeted by the
Trump administration’s immi-
Uzbek nationals have
been linked to a
handful of terrorist
cases in recent years.
gration policy that focuses on
citizens of countries deemed
to pose a high risk to U.S. na-
tional security and welfare.
None of the countries on the
SAYFULLO SAIPOV
Age: 29
Background: Originally from
Uzbekistan, he came to the
U.S. in 2010. He has lived in
Tampa Bay, Fla., according to
law-enforcement officials.
Public records indicate he
also lived in Paterson, N.J.;
Stow, Ohio; Cincinnati; and
Fort Myers, Fla.
He worked as a driver for
Uber Technologies Inc., the
company confirmed. An Uber
spokeswoman said the com-
pany had offered its assis-
tance to law enforcement.
Kobiljon Matkarov, who
said he was an acquaintance
of Mr. Saipov, said they met
about five years ago in Fort
Meyers. Mr. Matkarov said he
was stunned to learn that Mr.
Saipov allegedly carried out
the New York attack.
“I’m confused,” Mr. Mat-
karov said. “He’s a good per-
son.”
Mr. Saipov was taken into
custody after he was shot in
the abdomen by a police offi-
cer. He underwent surgery at
a local hospital.
—Joseph De Avila
list belong to the Central
Asian region.
The U.S. Department of
Homeland Security didn’t im-
mediately respond to a request
for comment on whether Tues-
day’s attack was likely to influ-
ence further iterations of the
travel ban, but President Don-
ald Trump indicated changes
are possible.
“I have just ordered Home-
land Security to step up our
already Extreme Vetting Pro-
gram,” he said in a Twitter
message Tuesday evening.
“Being politically correct is
fine, but not for this!”
The particular attack cho-
sen by the suspect—driving a
truck through an area crowded
by pedestrians and cyclists—
early as 2010, the al Qaeda
magazine “Inspire” advocated
using heavy vehicles like
pickup trucks to run down ci-
vilians.
Seamus Hughes, the deputy
director of George Washington
University’s Program on Ex-
tremism said all the signs
pointed to a jihadist inspired
attack, especially as hopes
fade for a promised Islamic ca-
liphate.
“The attacks take a more
urgent need as they lose more
and more physical space and a
set of supporters that are ro-
manticizing the loss of the ca-
liphate,” he said
A photo of Mr. Saipov circu-
lating on social media showed
a dark haired male sporting an
Islamic-style Sunnah beard.
Other attacks linked to Cen-
tral Asian militants this year
have taken place in Sweden,
Russia and Turkey.
In April this year, a 39-year
Uzbek national drove a truck
into a crowd in the Swedish
capital of Stockholm. The
driver was known to the police
for failing to report for his de-
portation. The Uzbek govern-
ment linked him to Islamic
State.
The same month, Russian
authorities identified an eth-
nic Uzbek citizen of Russia,
who was born in Kyrgyzstan,
as the perpetrator of a bomb-
ing on the St. Petersburg
metro that killed at least 14
people. Authorities said he
died in the attack.
Months earlier, Turkish au-
thorities identified an Uzbek
national as the gunman who
opened fire on Istanbul’s Reina
nightclub, killing at least 39
people.
Islamic State claimed re-
sponsibility for the attack.
Turkish authorities also said
Central Asians from Uzbeki-
stan and Kyrgyzstan were
among the assailants in a 2016
attack on Istanbul’s airport,
which left more than 40 peo-
ple dead.

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better than the market.*

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© 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6046
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A6 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL.

WORLD NEWS
Ousted Catalan Leader Accepts Spain Vote
Head of secession immediate prison for the for-
mer Catalan leaders if they
movement vows to didn’t appear before the court
abide by elections when ordered to do so.
If Catalan leaders are found
organized by Madrid guilty of sedition, they could
face up to 15 years in prison. If
BY VALENTINA POP they are found guilty of rebel-
lion, they could face up to 30
BRUSSELS—Carles Puigde- years in prison.
mont, the embattled leader of When asked how long he
Catalonia’s independence move- and his former colleagues
ment, said he would respect might remain in Belgium, Mr.
the result of regional elections Puigdemont said that “if we
called by the Spanish govern- have an immediate guarantee
ment, marking a possible turn- of a just treatment...we will re-
ing point in the separatists’ turn immediately.”
drive for secession. Madrid’s temporary takeover
At a press conference Tues- has been relatively seamless
day in Brussels, Mr. Puigdemont and central government offi-
said he decided to travel to Bel- cials seemed pleasantly sur-
gium to avoid being subjected prised by the easy transition.
to an unfair trial back home. Fears that Madrid would meet
Mr. Puigdemont showed up Catalan resistance or civil dis-
in the city with several ousted obedience haven’t materialized.
ministers from his govern- Spain’s Prime Minister Mari-

ment, including the former in-
terior minister and health
minister, as Spanish prosecu-
tors said they were seeking to
charge him and 19 former gov-
ernment and parliament offi-
cials with rebellion, sedition
and misappropriation of funds.
The fate of the Catalonian
leader and his region has been
in question since its parlia-
ment declared independence
on Friday and Spain’s central
government seized temporary
control in response, removing
him and about 150 separatist-
allied officials, including the
regional police chief.
Despite his defiant stance in
Belgium, Mr. Puigdemont’s
agreement that pro-indepen-
dence parties should partici-
pate in regional elections
shows that separatists are
shifting into campaign mode
rather than prioritizing the
construction of a republic.
There had been doubts
about whether separatist par-
ties would take part because
the Dec. 21 vote was called by
a central government whose
authority many of them said
they no longer recognized. Mr.
Puigdemont’s party—one of a
number of Catalan separatists
Carles Puigdemont said at a press conference in Brussels that he decided to travel to Belgium to avoid an unfair trial back home.
Region’s Diplomats
Took Fight Abroad
BARCELONA—Carles Puig-
demont’s bid to draw interna-
tional support for the indepen-
dence movement is part of a
longstanding separatist policy
to promote their cause.
Catalonia has maintained
delegations to at least 11
countries, including Belgium,
where its spacious embassy
groups—said Monday it would
participate.
“We totally agree that voting
is the way to solve problems,
not jailing politicians or citizens
or threatening civil servants,”
he said. The vote “is a challenge
we face with all our strength.”
Mr. Puigdemont’s appear-
ance in Belgium raised specula-
sits next to EU institutions. Its
Public Diplomacy Council of Cat-
alonia, known as Diplocat, has
regularly placed articles in for-
eign newspapers and organized
conferences at foreign universi-
ties promoting independence.
This lobbying has been a ma-
jor irritant to Madrid. José Manuel
García-Margallo, who served as
Spain’s foreign minister for five
years until November 2016, said
he had made it a priority to coun-
teract Catalonia’s efforts.
Mr. García-Margallo said he
tion he would request asylum,
but he said he has no plans to
do so. Instead, he and the other
former officials were seeking
“to reveal to the world the se-
rious democratic deficit that
exists in the Spanish state,” as
well as Catalonia’s “right to
self-determination,” he said.
“We don’t want to escape
had given his diplomats “very con-
crete instructions so that they
would go out immediately to op-
pose any type of offensive.”
Spanish envoys, for example,
have regularly appeared at Diplo-
cat events to argue against the
Catalan case for independence.
Catalonia’s representatives
abroad have played a “distinct lob-
bying role, promoting economic in-
terests but also trying to frame
the political narratives” about their
efforts at independence, says Erik
Jones, a professor of European
justice,” he said. “We have to
face the serious injustice the
Spanish government is con-
fronting us with.”
Madrid officials say that
Mr. Puigdemont’s appearance
in Belgium was meant to dis-
tract from his repeated
breaching of the constitution,
and that Spain’s judiciary will
YVES HERMAN/REUTERS
ano Rajoy’s strategy is for the
central government to main-
tain a low profile in the day-to-
day running of Catalonia, those
officials said, and hand back
control to Catalan officials as
soon as a new government is
formed after the elections, re-
gardless of whether separatist
studies at the Johns Hopkins or pro-union parties win the
School of Advanced International vote. If separatist parties win a
Studies. majority of seats in the re-
Mr. García-Margallo said he gional parliament, that would
had devoted particular attention keep the independence of Cata-
to the Baltic States, Canada and lonia on the table for the fore-
the Vatican, making frequent seeable future.
trips there to discuss the matter. “Madrid is taking away
Catalan nationalists have ex- [Catalonia’s] autonomy and
pressed admiration for the Baltic giving it back quicker than
states—Latvia, Lithuania and Es- anyone anticipated,” wrote an-
tonia—and have looked to their alysts at Brown Brothers Har-
successful breaks from the So- riman in a note Tuesday.
viet Union in 1991 as a model. One recent poll shows a
—Francis X. Rocca slim majority of Catalans sup-
port remaining part of Spain.
Belgian Prime Minister
afford him and other former Charles Michel said his govern-
Catalan officials a fair trial. ment didn’t invite Mr. Puigde-
For the moment, Mr. Puig- mont to Brussels, noting that
demont is free to travel out- he is free to travel within the
side Spain. A judge set a hear- passport-free Schengen area.
ing for Mr. Puigdemont and 13 —Laurence Norman
other former Catalan govern- in Brussels and Jeannette
ment leaders for Thursday and Neumann and Marina Force
Friday in Madrid. The prose- in Barcelona contributed
cutor asked the judge to order to this article.

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THE WALL STREET JOURNAL. NY Wednesday, November 1, 2017 | A6A

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THE WALL STREET JOURNAL.
WORLD WATCH
JAPAN
Central Bank Keeps
Yield Target at Zero
The Bank of Japan lowered
its price forecasts again Tuesday
and stuck to its ultra-easy mon-
etary policy.
The central bank voted 8-1 to
keep its target for 10-year Japa-
nese government bond yields at
around zero and its short-term
deposit rate at minus 0.1%.
“Because inflation is still far
away from the bank’s 2% target,
I don’t think it’s necessary at
this point to hold specific discus-
sions” about raising rates, BOJ
Gov. Haruhiko Kuroda said at a
news conference.
—Megumi Fujikawa
MEXICO
GDP Contracted
In the Third Quarter
The country’s economic out-
put declined in the third quarter,
its first contraction in 17 quar-
ters as a series of natural disas-
ters had a negative impact on
services and brought about fur-
ther declines in oil production.
Gross domestic product, a
broad measure of output in
goods and services, was down
0.2% seasonally adjusted from
the second quarter, and rose
1.6% unadjusted from the year-
earlier period, the National Sta-
tistics Institute said Tuesday.
The decline from the second
quarter—which translates into an
annualized drop of 0.8%—was
led by a 0.5% contraction in in-
dustrial output. Services slipped
0.1% and agricultural production
rose 0.5%. —Anthony Harrup
CANADA
Economic Output
Shrank in August
Gross domestic product de-
clined 0.1% in August to 1.74 tril-
lion Canadian dollars (US$1.36
trillion), Statistics Canada said
Tuesday.
Market expectations were for
GDP growth of 0.1%, according
to economists at Royal Bank of
Canada.
On a one-year basis, Cana-
dian economic output climbed by
a respectable 3.5%.
—Paul Vieira
TRADE
Continued from Page One
the digital currency’s support-
ers say it is gaining respecta-
bility.
“It is a legitimization of bit-
coin as an asset class,” said
Daniel Masters, chairman of
the Global Advisors group of
companies, which runs a bit-
coin hedge fund and exchange-
traded notes linked to digital
currencies.
The move is nonetheless
risky for CME, which could
face embarrassment if the bit-
coin market implodes, as
some skeptics predict will
eventually happen. There is
no guarantee that its bitcoin
initiative will succeed. Many
new futures contracts intro-
duced by exchanges fail to
take off.
Still, CME’s plan sent the
price of bitcoin surging. After
the exchange’s announcement
Tuesday, the digital currency’s
price rose above $6,400 for
the first time, up more than
4% for the day, according to
CoinDesk. It has more than
quintupled so far this year.
Listing bitcoin futures on
CME or another U.S. exchange
would make it easier to trade
the digital currency by allow-
ing market participants to bet
on whether its price will fall,
something that’s currently dif-
ficult to do.
Futures allow “long” inves-
tors, who think the price of a
commodity will rise, to match
their bets against “shorts,”
who expect a price drop. In-
troducing bitcoin futures could
help smooth out some of bit-
coin’s wild price swings, trad-
ers say, because it would give
bitcoin pessimists more op-
portunity to express their
views in the marketplace.
“When you make the mar-
ket more even-sided—to make
it as easy to short as to go
long—I think the biggest effect
you get is a decrease in vola-
tility,” said Mr. Masters, of
Global Advisors.
The recent price run-up,
along with dozens of launches
of digital currency-focused
hedge funds in the past year,
has sparked interest from Wall
Street. Goldman Sachs Group
Inc. has said it is considering
U.S. Weighs Asia Military Exercise
Three U.S. aircraft carriers
are scheduled to be traveling
near the Korean Peninsula
soon, and the military may de-
cide to keep them in the area
for maneuvers that would co-
incide with President Donald
Trump’s coming visit to Asia,
U.S. defense officials said.
It would be the first mili-
By Jonathan Cheng in
Seoul and Nancy A.
Youssef in Washington
tary exercise involving three
U.S. carriers in the area since
2007, officials said, sending a
potent message to North Ko-
rea at a time of rising tensions
over Pyongyang’s nuclear-
weapons program.
Tensions in the region are
already heightened. North Ko-
rea warned on Monday that
the U.S. is “pushing the situa-
tion to the point of the worst
explosion by massively amass-
ing ultramodern, nuclear-war
hardware of all varieties in and
around the Korean Peninsula.”
Mr. Trump leaves at the
end of the week for a two-
week trip that will take him to
South Korea, Japan, China,
Vietnam and the Philippines.
White House officials say the
trip is the longest trip to the
continent by any U.S. presi-
dent in more than two de-
cades.
Much of the trip will re-
volve around the threat posed
Gulf Nations Are Urged to Pressure Pyongyang
Trump administration offi-
cials, eager to choke off North
Korea’s global networks, have
By Ian Talley in Doha,
Qatar, and Nicolas
Parasie in Riyadh,
Saudi Arabia
in recent days urged Persian
Gulf countries to clamp down
harder on the nuclear-armed
state’s ties to the region.
In three days of high-level
talks in the United Arab Emir-
FROM PAGE ONE
High Rise
How many dollars
one bitcoin buys
$7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
J F M A M J J A S O
Source: Coindesk
THE WALL STREET JOURNAL.
starting a trading operation
for bitcoin and other crypto-
currencies.
The value of all bitcoins in
existence recently surpassed
$100 billion and now stands at
$106.9 billion, according to
coinmarketcap.com. By com-
parison, the market capitaliza-
tion of Goldman Sachs is $93.8
billion.
Other big players remain
skeptical. Mr. Dimon said in
September that he viewed bit-
coin as a “fraud” that “will
eventually blow up.” South
Korea and China are among
the countries that have tight-
The value of all
bitcoins in existence
recently surpassed
$100 billion.
ened regulations around digi-
tal currencies in recent
months.
But most market partici-
pants say banks would be
more likely to trade or make
markets in bitcoin if a futures
contract takes off. That’s be-
cause shorting bitcoin can
help a financial institution in-
sure against a price drop. A
cryptocurrency trading desk at
a bank could turn to the fu-
tures market when it wanted
to reduce the risk of its bitcoin
holdings.
Futures could also pave the
way for retail investors to get
more involved in the digital
currency, especially after the
The Japan-based USS Ronald Reagan just completed a visit to South Korea, including Busan, above.
by North Korea. Mr. Trump
will call on the international
community to maximize pres-
sure on North Korea during a
speech to the South Korean
general assembly, although he
won’t visit the demilitarized
zone in South Korea, because
of time constraints, a senior
administration official said.
In China, Mr. Trump will
meet Chinese President Xi Jin-
ping to seek greater Chinese
pressure on North Korea and
ates and Qatar, U.S. Treasury
officials pushed regional lead-
ers to tighten financial over-
sight and reduce the number
of North Korean laborers
working in the region, many of
whom are employed in the
construction industry.
“We had very productive dis-
cussions about that and their
willingness to work on that,”
U.S. Treasury Secretary Steven
Mnuchin said in an interview.
Mr. Mnuchin’s weeklong
tour of the region was focused
Securities and Exchange Com-
mission earlier this year re-
jected efforts to launch the
first exchange-traded fund
based on bitcoin.
Trading the virtual cur-
rency can currently be logisti-
cally tricky. Since U.S. broker-
ages generally don’t offer a
way to trade digital currency,
people who want to buy or sell
it need to set up accounts di-
rectly with a bitcoin exchange.
There are dozens of such ex-
changes around the world,
many of them small and
lightly regulated.
But if a major U.S. exchange
launches futures tied to bit-
coin, investing in the digital
currency would become simi-
lar to trading commodities,
with investors able to use pop-
ular retail brokerages.
Bitcoin futures could also
become the basis for an ETF
linked to the digital currency,
in much the same way that
the United States Oil Fund,
the world’s largest crude oil
ETF, is built out of oil futures
rather than physical barrels
of oil.
CME traces its history back
to 1848, when the first futures
markets formed in Chicago to
allow farmers and grain buy-
ers a way to trade agricultural
commodities. It now runs a
huge array of markets, from
oil and gas futures to financial
contracts tied to interest
rates.
Tuesday’s announcement
sets off a horse race between
CME and its smaller crosstown
rival, Cboe Global Markets
Inc., to see which exchange
operator can launch bitcoin fu-
tures first. Cboe said in Au-
gust it was planning to launch
bitcoin futures by the end of
2017 or early 2018, pending
regulatory approvals. A Cboe
spokeswoman declined to
comment.
Both CME and Cboe are
regulated by the Commodity
Futures Trading Commission,
which would need to sign off
on the launch of any bitcoin
futures contract.
The CFTC has lately been
friendlier to bitcoin than the
SEC. In July, the CFTC granted
a startup called LedgerX ap-
proval to clear bitcoin options,
making it the first U.S. feder-
ally regulated platform of its
kind.
WORLD NEWS
to “rebalance the U.S.-China
economic relations,” the offi-
cial said.
The three U.S. aircraft car-
riers all are in or headed to-
ward the Western Pacific
mainly because of scheduling
overlaps, officials said.
The USS Ronald Reagan,
based in Japan, just completed
a visit to South Korea. The
USS Nimitz, which deployed to
the Persian Gulf on June 1, is
currently conducting a port
primarily on improving coop-
eration to fight terror financ-
ing and ratcheting up diplo-
matic pressure on Iran. But
tightening the screws on
North Korea is also a priority
for the administration, and the
Treasury Department has kept
an eye on Pyongyang’s ties to
the region.
In September, President
Donald Trump authorized the
Treasury Department to impose
new sanctions on banks, com-
panies and individuals that help
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Wednesday, November 1, 2017 | A7
The last time three carrier
groups were in the region be-
cause of scheduling was in
2011, officials said.
The officials said that while
the convergence of the ships
wasn’t timed to Mr. Trump’s
visit to Asia, which begins this
weekend, they are considering
“taking advantage of the op-
portunity” and scheduling an
exercise.
U.S. defense officials said a
decision on whether to con-
duct an exercise would likely
be made at “the last minute.”
Military officials acknowl-
edge that it is rare to have
JEON HEON-KY/EPA/SHUTTERSTOCK
three of the U.S.’s 11 nuclear-
powered aircraft carriers in
one region of the world at the
same time, but should not be
taken as a sign of an impend-
ing military confrontation.
“It’s not that it’s a pure co-
incidence, but it doesn’t mean
that we’re about to attack,”
one official said.
Pyongyang warned on Mon-
visit in Sri Lanka and will day that it was keeping a close
travel through the Pacific on eye on the influx of U.S. mili-
its way back to its home port tary assets.
on the U.S. West Coast. “The U.S. military action
The USS Theodore Roose- getting all the more hysteric
velt will replace the Nimitz in compels the DPRK to take ac-
the Middle East and currently tion,” it added, using the acro-
is en route. It left its home nym for its formal name, the
port in San Diego on Oct. 6, Democratic People’s Republic
and, like the Nimitz, must of Korea.
travel through the region to —Michael C. Bender
reach the Middle East. The and Gordon Lubold
USS Theodore Roosevelt is in Washington
currently near Guam. contributed to this article.
fund the regime in Pyongyang. reans, analysts said laborers
The North Korean labor and diplomats are often also
contingent in the Gulf, which used to carry cash, gold and
analysts say consists of be- jewels through financial hubs
tween 5,000 and 10,000 work- in the Middle East.
ers, is a source of hard cur- North Korea has said such
rency for Pyongyang. They are allegations, which have also
part of a global workforce that been documented in United
helps fund Kim Jong Un’s nu- Nations reports, are fabricated.
clear and ballistic-missile pro- The Trump administration
grams, according to defectors, and Japanese officials have
U.S. officials and analysts. urged Gulf states in recent
In addition to the money weeks to stop using North Ko-
generated from the contracted rean labor and comply with
work performed by North Ko- U.N. sanctions on Pyongyang.
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A8 | Wednesday, November 1, 2017
Now Coming to a Backyard Near You: Weird Chickens
In some flocks, ‘boutique’ breeds that lay blue eggs, look like basketballs are climbing the pecking order
BY ANUPREETA DAS
New Yorkers Eve Tetzlaff and
Brian Phillips keep 85 chickens
on their 61-acre farm in the Po-
cono mountains. Not all of them
look like typical chickens.
There’s the rooster Jesus,
with feet nearly as big as a
man’s hand. Jesus stands over 2
feet tall and has a chest like a
“muscle man,” Ms. Tetzlaff said.
His full name is Jesus That’s a
Big Chicken.
Lucrezia Borgia, named after
a 15th-century Roman beauty,
has a white crest that falls
somewhere between a mohawk
EVE TETZLAFF
and a bouffant. There is a trio of
Polish chickens named Zsa Zsa,
Eva and Magda, after the Hun-
garian-American Gabor sisters.
And there are three all-black
Swedish chickens: a rooster
called Mac Daddy, as well as
two hens named Ruby Woo and
Lady Danger, after lipsticks sold
by MAC Cosmetics, the Estée
Lauder Cos. unit with an all-
black dress code where Ms. Tet-
zlaff works.
“Chickens are beautiful, and I
never knew that,” said Ms. Tet-
zlaff. Visitors to their Pennsyl-
vania farm are amazed to learn
the birds are all just varieties of
chicken, she adds.
Yes, backyard chicken coops
have long been a thing. That’s
why people are moving on to
specialty breeds of all shapes
and sizes that sport outlandish
plumage, lay colorful eggs or
have appealing personalities.
“Boutique” chicken companies
are scouring the world for un-
SEARS
Continued from Page One
keep their century-old partner-
ship going. Earlier in 2017,
Sears sued two longtime manu-
facturers of its Craftsman tools
to keep them shipping mer-
chandise to stores.
The supplier turmoil is the
sharpest sign yet of Sears’s de-
cline. It has lost more than
$10.4 billion since 2011. Annual
sales over that period have col-
lapsed to $22.14 billion from
$41.57 billion as the company
has spun off divisions, closed
hundreds of stores and at-
tracted fewer shoppers to its
1,250 remaining Sears and
Kmart locations.
Employee ranks, above
300,000 a decade ago, have
dropped by more than half.
Sears is looking to lease out
part of its headquarters space,
and some amenities that once
dotted the six-building campus,
including a bank branch and op-
tical shop, have closed.
Though Sears is slashing
costs, credit analysts say it
needs to raise about $1.5 billion
a year to fund its operations. On
Monday, S&P Global Ratings
downgraded Sears’s debt fur-
ther into junk territory, on con-
cerns the firm could find it hard
to repay or refinance $1 billion
in loans coming due next year.
Analysts say Sears still has
assets to sell to keep it afloat.
And as long as it continues to
pay on time, suppliers are un-
likely to abandon it. Many say
they want Sears to stay in busi-
ness but have taken the harder
position on payment terms to
Sears needs to raise
$1.5 billion a year to
fund its operations,
credit analysts say.
protect themselves.
A Sears spokesman said the
company has taken a number of
steps “to remain a viable com-
petitor,” including closing un-
profitable stores, negotiating
“with vendors to reduce their
risk in doing business with us,”
investing in its customer-loyalty
program and reducing costs.
The spokesman, Chris Brath-
waite, added that “inaccurate
assertions and negative specu-
lation about Sears and its fu-
ture” have “had a very detri-
mental impact on the company
through mere repetition.” He
didn’t reply to specific ques-
tions, including about MGA, LG,
Samsung and Levi Strauss.
After this article published
on WSJ.com, Sears said it con-
tinues to have strong relation-
ships with thousands of ven-
dors. “Any changes to our
agreements over the years have
been part of the normal discus-
sions between retailers and
Magda, Eva and Zsa Zsa, three Polish chickens named after the Gabor sisters; Eve Tetzlaff holding the rooster Jesus, a Liège Fighter.
usual types, creating new hy-
brids or promoting heritage
American breeds.
Silkies have fluffy plumage
like Big Bird and blue earlobes.
Polish Frizzles are nicknamed
“pine cone” chickens because
they resemble giant ones. Co-
chins look somewhat like feath-
ered basketballs.
“It’s like orchids or tape mea-
sures or any other weird thing
that people collect,” says Paul
Bradshaw, whose Greenfire
Farms, in Havana, Fla., supplies
what he calls the “ultra-exotic
premium chicken market.”
As commercial chicken pro-
duction took off in the U.S. in
the 1950s, the number of so-
called heritage breeds dwindled
in favor of a few fast-growing
hybrids, which usually have
vendors,” it said in a blog post.
At the center of the storm is
Edward S. Lampert, the 55-
year-old financier who rescued
Kmart from bankruptcy and
then combined it with Sears,
Roebuck & Co. in 2005. Partly
through his hedge fund, ESL In-
vestments Inc., in which he is
the primary investor, the money
manager turned CEO is also
Sears’s largest shareholder, with
54%. Through ESL, he also over-
sees a big creditor, holding just
under half Sears’s $3.5 billion
or so in long-term debt.
Sears has been selling real
estate and brands to raise cash
and Mr. Lampert has pumped in
money through short-term
loans from his hedge fund.
In weekly management
meetings, Mr. Lampert pushes
executives to drive harder bar-
gains with suppliers, arguing
that the vendors need Sears as
much as it needs them, people
familiar with the matter said.
“There have been examples
of parties we do business with
trying to take advantage of neg-
ative rumors about Sears to
make themselves a better
deal—a deal that is unilaterally
in their interest,” Mr. Lampert,
who declined to be interviewed,
wrote in a May blog post. “In
such a case, we will not simply
roll over and be taken advan-
tage of.”
Spin Cycle
Sears no longer has the clout
to play hardball. In 2002, it ac-
counted for a fifth of Whirl-
pool’s revenue. That was down
to 3% of Whirlpool’s sales in a
recent tally.
In the negotiations this year,
Whirlpool wanted to reduce its
exposure even further by lower-
ing the amount of goods it
ships to Sears and raising
prices, according to people fa-
miliar with the discussions.
When the sides couldn’t agree,
Whirlpool executives told their
Sears counterparts in May they
would stop shipping products.
In October, Sears notified em-
ployees it would no longer
carry Whirlpool, Maytag and
other brands made by the man-
ufacturer, according to an inter-
nal Sears memo.
“It’s not a whole lot” of busi-
ness, Whirlpool CEO Marc
Bitzer told analysts.
Electrolux AB was once so
beholden to its largest customer
it paid for Sears executives to
fly business class to Asia on fac-
tory visits, even though its own
executives flew coach, a person
familiar with the arrangement
said. In recent years, Electrolux
has minimized its exposure to
Sears by courting other chains,
such as Home Depot Inc. and
Lowe’s Cos., the person said.
“There is a significant sort of
reshaping of the North Ameri-
can retail landscape, and that
requires us to focus a lot on the
right channels,” Electrolux CEO
Jonas Samuelson said in April.
“We see no viable path for
Sears to succeed as a retailer,”
IN DEPTH
i i
white or reddish feathers and
lay white or brown eggs.
But chickens, like dogs, have
“wildly varying looks, as be-
tween a chihuahua and a New-
foundland,” says Mr. Bradshaw.
He says his typical customer is a
woman between 35 and 65
years old, “with a college de-
gree, quite a bit of disposable
income, who likes to garden.”
Rare chickens are like folk art,
he says. Customers see them as
embodiments of a simpler time.
When Mr. Bradshaw first im-
ported an Indonesian breed
called Ayam Cemani, three years
ago, a breeding pair sold for
about $5,000. These chickens
have black feathers, beaks,
combs, tongues, skin, organs,
bones and meat, but lay white
or cream-colored eggs.
Long Decline
Sears was struggling before Edward Lampert engineered a merger
with Kmart in 2005, but losses have worsened in recent years.
$2 billion
Net income
0 selling all manner of goods to
–2
–4
1985 ’90
Sears Holdings' share price surged after the Sears-Kmart merger but
has tumbled in recent years.
$150
120
Sears Holdings
90
Kmart (post bankruptcy)
60
Sears, Roebuck
30
0
1972 ’80
Once one of the biggest U.S.
employers, Sears today has less
than half the workers it did a
decade ago.
400 thousand employees
300
200
100
0 0 Sears full-line stores
2006 ’10
*Sears store count excludes auto centers, other specialty stores, repair and delivery services.
Sources: Thomson Reuters (net income); FactSet (stocks); the company (employees, stores)
A Sears in El Paso, Texas, about 1940, when business was good.
said Bill Dreher, a financial ana-
lyst with Susquehanna Financial
Group LLC, one of the few who
still follow the company on Wall
Street. “I’m concerned that the
vendors are starting to lose pa-
tience, because that is what put
Kmart in bankruptcy in 2002.”
To keep products flowing,
Sears is paying vendors in one
month, on average, compared
with two months for Target
i
He also sells Liège Fighter
chickens such as Jesus, which
can cost as much as $199 for a
day-old chick. Another tall
breed, the Shamo, which costs
$59 and is originally from Asia,
is “like having your own pet ve-
lociraptor.” By contrast, day-old
chicks of more common breeds
cost just a few dollars.
Texas farmer David Bailey
breeds thoroughbred horses,
but he began breeding chickens
on the side, to help preserve ge-
netic diversity. In the process,
he discovered chickens have
“big personality… they expect to
be picked up and petted.”
One of his best sellers is the
Swedish Olandsk dwarf chicken,
roughly the size of a grapefruit,
which lays white eggs “the size
of a teaspoon.” City dwellers like
’95 2000 ’05 ’10
’90 2000 ’10
Over the last decade, Sears has
closed half its Kmart locations
and a quarter of its full-line
Sears stores*.
2,500 stores
2,000
1,500
1,000 Kmart stores
500
’15 2006 ’10
THE WALL STREET JOURNAL.
Corp., Mr. Dreher said. The
shorter payment terms tie up
working capital, forcing Sears
to borrow more and making it
harder for the retailer to carry
the right levels of merchandise
at the right time of year.
There might have been no
Sears at all if Richard Sears, a
19th-century railway agent,
hadn’t received a shipment of
watches from a local jeweler
THE WALL STREET JOURNAL.
BRIAN PHILLIPS
their size and will often bring
them indoors at night, he said.
Backyard efforts have helped
improve the status of breeds
that could otherwise have be-
come extinct, according to the
Livestock Conservancy. The
nonprofit’s conservation priority
list includes 53 heritage chicken
breeds, drawn mostly from a list
the American Poultry Associa-
tion began defining in 1873.
About 38 of those breeds are
endangered, said Jeannette Be-
ranger, a senior program man-
ager at the conservancy. She
clucked at the notion of keeping
chickens as pets: “That’s not a
career for a chicken.” Instead,
she suggests backyard flocks be
put to work, as egg-layers, meat
providers or for pest control.
Kelly Pietro, a 39-year-old
who didn’t want them. He sold
them to station agents up and
down the line and then teamed
up with Alvah Roebuck, a
watchmaker. The two formed
Sears, Roebuck in 1893.
Thanks to Mr. Sears’s flair
for copy writing, their new
mail-order company was soon
rural America, including a
“Stradivarius model” violin for
$6.10, men’s suits for $9.95 and
$1,000 kit houses, making luxu-
ries once the province of the
city rich available to a wide
swath of the population.
Sears was one of the earliest
’15 and biggest customers of
Schwinn bicycles; in the 1920s
it bailed out the appliance
maker that became Whirlpool.
As rural people began mov-
ing to cities, Sears began open-
ing large stores, which by the
arrival of the post-World War II
boom were filled with washing
machines, lawn mowers, televi-
sion sets and other accouter-
ments of middle-class life.
Socks and Stocks
By the end of the ’60s,
Sears’s annual sales were just
shy of 1% of the nation’s gross
domestic product with the
breadth of an Amazon.com Inc.
It operated Sears Auto Centers,
owned the Kenmore, Craftsman
and DieHard-battery brands,
and had a financial-services
unit that by the ’80s included
Allstate Insurance Co., the Dean
Witter brokerage, Coldwell
Banker real estate and Discover
credit card. Sears no longer
owns any but the auto centers,
Kenmore and DieHard.
Sears was an early internet
mover, forming the Prodigy on-
line service with International
Business Machines Corp. “The
issue really isn’t success or fail-
ure,” Sears then-chairman Ed-
ward Brennan said in 1989, ac-
’15 cording to the “The Attention
Merchants,” a book about me-
dia and marketing. “It’s really a
question of how big a success
we’re going to be.” Beneath that
bravado, Sears was already in
decline, facing competition
from the likes of Wal-Mart
Stores Inc. and Home Depot.
Mr. Lampert, who started
his hedge fund in 1988 at age
25, took control of Kmart in
FOTOSEARCH/GETTY IMAGES
2003 out of bankruptcy and
then used its stock to acquire
Sears. He had some early suc-
cess when he raised prices and
reduced marketing costs, a
counterintuitive strategy that
boosted profits, said a former
senior executive. That led him
to believe he could run a chain
better than traditional retail ex-
ecutives, the person said.
His unconventional approach
included minimal investment on
store upgrades. Instead, Sears
has spent $6 billion repurchas-
ing shares since 2005, at prices
as high as $180 a share. The
stock now hovers around $6.
The result is stores sometimes
missing chunks of flooring and
with empty shelves.
mother of two in Monroe,
Conn., acquired a brood of
seven unusual chickens two-
and-a-half years ago as a birth-
day present. To get the perfect
combination of birds, Ms. Pietro
created a spreadsheet that listed
her and her husband’s favorite
birds, the color of their feath-
ers and eggs, ranked their docil-
ity and whether they laid eggs
in winter. Her flock includes
Speckley, a dark brown Speckled
Sussex chicken with bluish dots,
and Ollie, who lays olive eggs.
“It felt like old-school stock
trading,” Ms. Pietro said. Her
flock produces as many as seven
eggs a day. When the family car
pulls up, the chickens will come
up to the driveway to greet the
Pietros, she said.
Traci Torres, chief “eggsecu-
tive” officer of My-
petchicken.com, says her com-
pany focuses on breeding
chickens that will lay blue,
green, chocolate-colored or
speckled eggs, all the rage
around Easter. She said custom-
ers are willing to wait twice as
long and pay nearly twice as
much for unusual birds or egg
layers. She also crossbreeds
chickens and is planning a “pro-
fusely feathered” one for next
year with feathered feet and a
cheek tuft, nicknamed the Yeti.
“There are people who go
out to their backyard with a
glass of wine, feed their chick-
ens mealworms … the chickens
will fall asleep in their laps,”
said Ms. Torres. “Chickens are a
really nice antidote to today’s
technology-heavy culture.”
“The stores are creepy,” said
shopper Chris Angelos, with
few customers, a limited selec-
tion and whole sections closed
off in the cavernous location
near her home in Gurnee, Ill.
The 69-year-old said she shops
there anyway because it lets her
avoid crowds and park near the
front door.
In a 2007 letter to investors,
Mr. Lampert explained his strat-
egy this way: “Unless we be-
lieve we will receive an ade-
quate return on investment, we
will not spend money on capital
expenditures to build new
stores or upgrade our existing
base simply because our com-
petitors do.”
Ten years later, after break-
ing off pieces such as Craftsman
and the Canadian division,
which filed for bankruptcy in
June and is being liquidated,
Mr. Lampert is undeterred. In
October his hedge fund lent
Sears another $140 million,
bringing its total borrowings
from ESL to roughly $1.6 billion.
“People have often asked me
why I am still committed to the
company and why I continue to
invest a significant amount of
my own money in its ‘transfor-
mation,’” Mr. Lampert wrote in
a May blog post. “The answer is
that I firmly believe we will
succeed.”
Mr. Lampert keeps his own
counsel. He doesn’t go to Sears
headquarters more than a cou-
ple of times a year, people who
have worked with him say. In-
stead, executives make quar-
terly treks to Florida, where Mr.
Lampert lives on the exclusive
Indian Creek Island in a $42
million home.
The CEO—who was kid-
napped for money in 2003 and
held in a Days Inn motel room
in Connecticut for 28 hours—
rarely visits stores and has
urged executives to adopt a
similar policy, arguing they can
collect more data more quickly
by connecting with store man-
agers over videoconferences,
former executives say.
In recent years, middlemen
known as factors have stopped
providing vendors with insur-
ance on payments for their
shipments to Sears. Many sup-
pliers, even big ones that don’t
use factors, have pushed to
shorten payment terms to cut
their risk.
When LG’s contract came up
for review in 2015, the compa-
nies worked out new terms over
nine months. Under the final
deal, Sears would pay LG cash
upfront before receiving some
goods, said people familiar with
the situation. In return, Sears
gets a small discount.
MGA, when it renegotiated
its contract last year, cut in half
the amount of time Sears has to
pay, to 30 days.
“We want them to stay in
business,” said Mr. Larian, the
supplier’s CEO. “But not at risk
to MGA.”
—Andrew Tangel, Theo
Francis and Jim Oberman
contributed to this article.
 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
GREATER NEW YORK
New Jersey Sues Drugmaker Over Opioids
Purdue Pharma is
accused of deceptively
pushing OxyContin as
safe for long-term use
BY KATE KING
AND SARA RANDAZZO
New Jersey and Alaska have
sued Purdue Pharma LP, alleg-
ing in separate lawsuits that
the drugmaker used deceptive
marketing tactics to push pre-
scriptions of opioid painkill-
ers, fueling an addiction crisis
and costing the states millions
of dollars.
Joining a growing list of
New York Boogie Ban’s Days Are Numbered
JOHN LENT/ASSOCIATED PRESS
FOOTLOOSE: Showgirls cut a rug at a New York nightclub in 1944. The City Council voted Tuesday to repeal a 91-year-old law that
barred dancing at most city nightspots. Critics said the so-called cabaret law began as a racist attempt to police Harlem jazz clubs.
Brooklyn Building Tapped for Seniors
BY PETER GRANT
A Florida-based private-eq-
uity firm has purchased a
high-profile Brooklyn Heights
apartment building from the
Jehovah’s Witnesses for about
$200 million with plans to
convert it into luxury senior
housing.
Executives at Kayne Ander-
son Real Estate Advisors, of
Boca Raton, Fla., said they will
spend another $100 million or
so to turn 21 Clark St. into a
facility for people 65 years and
older. Renamed the Watermark
at Brooklyn Heights, the 16-
story building will include
about 300 units, 75,000 square
feet of common space and
amenities such as a swimming
pool, spa and several dining
Woolgathering Divas Take Center Stage at Met’s New Opera
BY CHARLES PASSY
Forget the star soprano of
the moment. At the Metropoli-
tan Opera, the reigning divas
are three sheep.
The animals make a memo-
rable appearance in
Thomas Adès’s “The Extermi-
nating Angel,” a contemporary
opera that received its North
American premiere at the Met
last week. The work is based
cosmograph daytona
* * * *
states and municipalities, New
Jersey Attorney General Chris-
topher Porrino and Alaska At-
torney General Jahna Linde-
muth said Purdue Pharma
employed aggressive and mis-
leading sales tactics that are
directly linked to the wide-
spread opioid and heroin ad-
diction crisis.
Last year, New Jersey re-
ported more than 2,000 over-
dose deaths, and the large ma-
jority were opioid related, Mr.
Porrino’s office said.
“When people ask ‘How did
we get here, how did we get to
an epidemic in New Jersey at
this level?’ I think part of the
answer lies in the complaint
rooms.
Watermark expects to rent
apartments to seniors with a
wide range of needs—from
those just looking for a place
to reside, to others who need
medical care for such prob-
lems as memory loss.
“There is an urban clientele
that absolutely wants to be in
high-end senior housing and is
not looking to relocate,” said
Al Rabil, chief executive of
Kayne Anderson Real Estate.
Other developers have simi-
lar projects. A venture of Well-
tower Inc., a real-estate invest-
ment trust, and Houston-based
Hines is building a project in
Midtown. There is also a proj-
ect in the works for the Upper
East Side by Maplewood Se-
nior Living and Omega Health-
on the surrealist film by Luis
Buñuel about a group of elite
partygoers trapped inside a
home.
The sheep, seen on stage as
the audience enters the the-
ater, are key to the opera’s
strange, unsettling nature. At
the onset, it is unclear why the
animals are there—and as the
work progresses, they figure
into the plot in only a small
way. But their mere presence
OYSTER PERPETUAL
NY
we filed today,” Mr. Porrino
said in a release.
Alaska, with a far smaller
population, said it had 96 opi-
oid-related overdose deaths in
2016, and that the number of
such overdoses is climbing.
Treatment programs across
Alaska report that more than
half—and up to 90%—of their
heroin-addicted patients
started with prescription pain-
killers, according to the state’s
lawsuit.
New Jersey’s lawsuit, filed
Tuesday in Superior Court in
Essex County, alleges that Pur-
due played down the risk of
addiction posed by its opioid
drugs, particularly OxyContin,
care Investors Inc.
Analysts said demand is ex-
pected to be high for luxury
senior housing in coming
years, as baby boomers grow
older. But they warned that
developers could overreact
and build too much supply.
“We’re on the cusp of see-
ing a golden moment for de-
mand,” said Michael Knott, an
analyst with Green Street Ad-
visors.
Kayne Anderson executives
said it is too early to predict
how much they will charge for
apartments. But experts said
that high-end senior rentals in
New York range from about
$7,000 a month for a studio to
$10,000 a month for a two-
bedroom unit, when no special
care is provided. With special
almost ensures this isn’t your
typical night at the opera.
“We are trying to set up an
atmosphere,” said Tom Cairns,
director of the Met production.
Not that it is so easy for an
opera company to secure a
sheep, let alone a trio of them.
For the task, the Met turned
to All-Tame Animals Inc., a
New York-based company that
is a talent agency for all kinds
of creatures.
and deceptively marketed the
medication as safe for long-
term use. The company re-
quired its New Jersey sales
representatives to visit seven
or eight doctors a day, five
days a week, and saddled them
with sales quotas for OxyCon-
tin ranging from 500 to 700
prescriptions a month, accord-
ing to the lawsuit.
Mr. Porrino said the state
interviewed “dozens and doz-
ens of people, including people
who worked for Purdue” in its
investigation to understand
the specifics of Purdue’s busi-
ness in New Jersey.
A spokesman for Purdue
Pharma said the company de-
care, prices can be as high as
$20,000 a month.
The Jehovah’s Witnesses
have been steadily selling
properties in Brooklyn Heights
in recent years, taking advan-
tage of rising values.
Kayne Anderson, which has
about $6 billion worth of as-
sets under management, spe-
cializes in senior and student
housing, and medical office
buildings.
Mr. Rabil noted that a wide
range of demographic trends
is likely going to boost de-
mand for senior housing in the
future. “Eleven thousand
Americans are turning 65 ev-
ery day,” he said.
Watermark is slated to open
in about two years, Kayne An-
derson executives said.
Over the years, All-Tame
Animals has provided the Met
with everything from dogs to
donkeys for several produc-
tions. The company sourced
the Met’s sheep from an up-
state New York farm, though
All-Tame Animals keeps the
trio closer to the Met on per-
formance nights to minimize
any stress.
Tending to the sheep has its
challenges, said All-Tame Ani-
rolex
Wednesday, November 1, 2017 | A8A
nies the allegations.
“We are deeply troubled by
the opioid crisis and we are
dedicated to being part of the
solution,” the spokesman said
in a statement. “We must bal-
ance patient access to FDA-ap-
proved medicines, while work-
ing collaboratively to solve
this public health challenge,”
he said, referring to the Food
and Drug Administration.
Alaska said in its lawsuit,
filed Monday in state court in
Anchorage, that through its
marketing, “Purdue trans-
formed medical thinking about
opioids,” persuading doctors
that the addiction risk is mod-
est and outweighed by the
Trial Puts Mayor
On the Defensive
BY THOMAS MACMILLAN
A defense lawyer in a closely
watched federal corruption trial
sought Tuesday to discredit a
former real-estate developer
who has made waves in recent
days by testifying he bought in-
fluence in the mayor’s office.
Jona Rechnitz, 34 years old,
a former New York real-estate
developer, took the stand
again Tuesday in Manhattan
federal court in the trial of Nor-
man Seabrook and Murray Hu-
berfeld, both 57, who face fraud
and conspiracy charges.
Prosecutors say Mr. Sea-
brook, former head of the cor-
rection officers union, received
$60,000 in an $820 Salvatore
Ferragamo bag in exchange for
investing $20 million of the
union’s money in a hedge fund
run by Mr. Huberfeld.
Much of the testimony so far
in the trial has focused not on
wrongdoing by the defendants,
but by Mr. Rechnitz, who said
he acted as an intermediary be-
tween the two men and has
himself pleaded guilty to a con-
spiracy charge.
Mr. Rechnitz is also at the
center of a sprawling federal
corruption probe that unfolded
in the city last year, touching
the police department and City
Hall, as well as the correction
officers’ union.
No wrongdoing was found in
the mayor’s office. Two high-
ranking police officers have
Jona Rechnitz, left, at Madison Square Garden in 2012, testified
he was able to buy influence in the NYPD and the mayor’s office.
mals President Nancy No-
vograd. As herd animals, they
are best grouped together, she
added. A sheep that is left
alone is a sheep likely to regis-
ter a noisy protest—not ex-
actly music to an operagoer’s
ears.
There is also the matter of
the sheep’s droppings. To do
the necessary cleanup, Ms. No-
vograd has two trainers, in
costume, stay with the sheep
oyster perpetual, cosmograph and daytona
are ® trademarks.
drugs’ benefits. The lawsuit
claims prescription-drug use in
the state has been linked to
homicides, assaults, home-in-
vasion theft, prostitution and
other crimes.
Purdue, a Connecticut-based
company, also has been sued
by nine other states, including
Louisiana, Mississippi, Mis-
souri, New Hampshire, New
Mexico, Ohio, Oklahoma, South
Carolina, and Washington.
New Jersey also has filed
suit against Insys Therapeutics
Inc., alleging it pushed the
painkiller Subsys for wide-
spread use despite having FDA
approval to only market the
drug to cancer patients.
pleaded not guilty in a case
that emerged from the probe.
The NYPD has declined to com-
ment on Mr. Rechnitz’s testi-
mony.
Since he began testify-
ing Thursday that he was able
to buy influence in the police
department and the mayor’s of-
fice with well-placed gifts and
campaign contributions, Mr.
Rechnitz’s stories have sent rip-
ples through the city.
Mayor Bill de Blasio, who is
poised to win re-election next
week, has been forced to ad-
dress the testimony, calling Mr.
Rechnitz a liar. The mayor’s
spokesman denied Mr. de Blasio
traded in political favors.
Mr. Rechnitz testified Tues-
day that he was able to buy
“access and influence” with
campaign contributions to the
mayor, including regular phone
and email contact with Mr. de
Blasio as well as in-person
meetings.
Defense attorney Henry Ma-
zurek challenged Mr. Rechnitz
about his supposed sway in
City Hall, questioning him
about a failure to successfully
call in favors on three occa-
sions. “Your special access to
the mayor did not result in any-
thing that a normal citizen
wouldn’t be able to accom-
plish,” Mr. Mazurek said.
“I don’t agree with that,” Mr.
Rechnitz said. He said he se-
cured other favors that haven't
come up in the trial.
CHRIS TROTMAN/GETTY IMAGES
on stage. The Met even pro-
vides the trainers with a spiffy
bucket, Ms. Novograd notes,
so not to ruin the visuals with
a cheap, plastic receptacle.
Animal-rights activists have
long protested the use of ani-
mals for entertainment. But
Ms. Novograd said hers are
properly cared for and happy
to take part in productions.
“I’m not going to yank a
sheep on stage,” she added.
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
A8B | Wednesday, November 1, 2017 NY * *** THE WALL STREET JOURNAL.

GREATER NEW YORK

METRO MONEY | By Anne Kadet

The Maestros of an Iconic Water Tank Towns Fret

David Hoch-
hauser some-
times wonders
Over State
Budget Cuts
whether his
business—
building those
anachronistic wooden water
tanks dotting the city sky-
line—isn’t a bit like staying in BY HEATHER GILLERS ciding whether to change their
the video-rental game. ratings. The cities include
After all, the technology Many cities in Connecticut Bridgeport, New Haven, New
behind the tanks providing are reconsidering their spend- London and Waterbury.
drinking water and fire pro- ing decisions as they prepare to The cuts are less severe than
CAITLIN OCHS FOR THE WALL STREET JOURNAL (2)

tection to the 10,000-odd fill new funding gaps following what Mr. Malloy had originally
New York City buildings more a two-year, $41 billion state proposed, and no Connecticut
than six stories tall hasn’t budget agreement that will re- town will have its state aid cut
changed much since the fam- duce their state aid. by more than 5%. But most
ily business, Isseks Brothers The budget, which was small towns have already had
Inc., launched in Manhattan signed by Gov. Dannel Malloy their state funding drop or re-
in 1890. on Tuesday, provided the state’s main flat over the past decade
“Am I missing the big pic- capital of Hartford with $40 while the cost of services has
ture?” he asks. “Is this going million designed to help that increased, said Betsy Gara, ex-
to be over and I’ll be left city avoid bankruptcy. But it left ecutive director of Connecticut
scratching my head?” other cities with at least $30 Council of Small Towns.
But while many imagine million per year less than the “It has made it more difficult
the towers are no longer op- previous budget, according to a to provide services without re-
erative, they are—like a fleet The wooden water tower, an iconic fixture on top of New York buildings, hasn’t changed much in partial tally of cuts by the Con- lying on property-tax increases,”
of rooftop zombies—largely more than a century. Below, a spire that is attached to the top of towers made by Rosenwach Tank. necticut Conference of Munici-
functional. palities.
The city’s construction wood-tank outfit is the The road that runs past town
boom has increased demand, Rosenwach Tank division of hall in Beacon Falls has cracks
Some municipalities
Mr. Hochhauser says. And the Rosenwach Group, also a and bumps. But plans to repave will likely have to
due to fire regulations requir- longtime family operation. it will likely have to wait an-
ing more water, their size has Based in Astoria, Queens, the other year because of a
reduce services or
grown. company’s workshop is in $200,000 reduction in funds. increase taxes.
“The tanks are getting big- Summit, N.J. “It’s probably been more
ger and bigger and bigger “Paris has the Eiffel Tower, than two decades since the last
and more and more and Pisa has the Leaning Tower, time it was refurbished,” said
more!” he notes. and New York has the Beacon Falls First Selectman Ms. Gara said. A lack of signifi-
And more buildings are de- Rosenwach Water Tower,” the Christopher Bielik. cant commercial development
manding multiple tanks. A company proclaims. Before lawmakers reached a in many areas has left some
current project on West 57th Online, artisans hawk wa- deal last week, Connecticut was Connecticut towns particularly
Street in Manhattan, for ex- ter-tower posters, coffee one of just a few states in the dependent on homeowners to
ample, requires 11 tanks. mugs, earrings, pendants, silk U.S. without a package of spend- raise revenue, she said.
The construction of a ties and planters. For a time, ing and taxes for the current fis- Nearly half of the Connecti-
wooden water tower is quite a Brooklyn furniture maker cal year. It is home to one of the cut municipalities rated by
a feat: It looks like a barn offered pricey tables and wealthiest populations in the Moody’s Investors Service have
raising, only it’s done with a workers about a day to re- day in dental school,” he re- desks fashioned from re- U.S. but has been struggling already had their credit affected
crew on a tiny steel platform place an old silo. calls. “It didn’t go well.” claimed water-tower wood. with a way to afford mounting by the state budget crisis. A
25 feet above the roof. The profession takes years It’s just as well. A one-day- Rosenwach hoped to capi- debt and pension obligations. state fiscal crisis can force local
You can’t fit a water tower to master, Mr. Hochhauser build tank, which typically talize on the craze with an Less money from the state borrowing costs higher.
in an elevator, so the struc- says. The workers, who often holds 3,500 to 40,000 gallons, online store featuring T- means some local governments Some cities and towns have
ture’s hundred-odd parts— stay with Isseks Brothers for fetches $35,000 to $75,000, shirts, hoodies and tote bags will likely have to resort to ser- already taken action to account
planks of yellow or red cedar decades, mainly hail from the Mr. Hochhauser says. These emblazoned with the com- vice cuts or tax increases. One for less money from the state.
harvested in British Colum- Caribbean island of Saint Vin- days, his company is building pany’s water-tower logo, “We major ratings firm, S&P Global The 8,200-person town of
bia—are cut and numbered in cent. There’s no such thing as two to three towers in New Tank New York.” Ratings, said Friday that “weak Brooklyn raised taxes in June in
advance, then hauled to the water-tower school. Water York City every week, he Alas, unlike sales of actual credit conditions across local anticipation of cuts.
roof. They fit together like a tank providers say they must adds. towers, the line has yet to governments…could persist for In Madison, where state edu-
jigsaw puzzle. train their own workers in- The city’s natural water take off. “The store has not some time” due to reduced cation aid fell from nearly
Construction employs the house. pressure can push water up been well received,” Andrew amounts of state aid and a stag- $450,000 to about $420,000,
same techniques used to Mr. Hochhauser runs the to the first six floors. Beyond Rosenwach, the company’s nant statewide economy. according to the Connecticut
make whiskey caskets, ex- company with his brother that, it must be pumped and president, laments. “It has The ratings firm last month Conference of Municipalities
plains Mr. Hochhauser, whose and sister. It’s been the fam- stored in tanks above the turned out to be a tankless placed nine Connecticut mu- analysis, First Selectman Tom
company also makes bourbon ily business for four genera- roof so that pressure is sup- effort.” nicipalities and one school dis- Banisch said the town’s short-
barrels. The average tower tions. He says he’s never plied by gravity. trict on negative watch, mean- term solution will be to dip into
lasts 30 years. It takes six done anything else. “I spent a The city’s other major anne.kadet@wsj.com ing they have a 50% chance of its general fund. In the long
a downgrade. S&P Global Rat- term, he said, he hopes to ex-
ings on Friday said it is wait- pand the town’s property-tax

Bard Launches Free ‘Microcollege’ in Brooklyn ing to see how those govern-
ments address aid reductions
in the new budget before de-
base.
“We’re being killed by a thou-
sand cuts,” Mr. Banisch said.
BY LESLIE BRODY free for students, and aims to son. “Everyone in higher edu- which the punch line is some-

GREATER NEW YORK WATCH

attract talented low-income
The maximum-security in- applicants who haven’t sought
mates who beat a Harvard Col- degrees due to the price tag or
lege team in a debate two personal hardships. The exper-
years ago put a national spot-
light on the prisoners’ ambi-
iment aims to find ways to
make college possible for peo-
tious college program, the ple who are often discouraged,
Bard Prison Initiative. excluded or underestimated.
Now Bard College is launch- “The way we go about col-
cation has to be more imagi-
native and daring in thinking
outside conventional ideas
about how to locate and en-
gage students.”
Mr. Kenner, who also runs
the Bard Prison Initiative, said
the Brooklyn program was in-
spired partly by his frustration
thing about a captive audience.”
The new microcollege is
modeled on the prison pro-
gram: Bard faculty will teach
small seminars leading to a
two-year associate degree in
Keeping Them on Their Toes
liberal arts, with the hope that
students will go on to get
bachelor’s degrees elsewhere.
TIMOTHY A. CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGES

ing a new satellite in another lege access in the U.S. is a cat- that so many people were sur- Organizers plan to open
site that bucks tradition: the astrophic failure,” said Max prised by the intellectual power “Bard at Brooklyn Public Li-
Brooklyn Public Library in Kenner, vice president for in- of prison inmates. “Everyone brary” in January with 16 stu-
Prospect Heights. stitutional initiatives at Bard was amazed,” he said. “We dents from the borough, and
The “microcollege” will be College in Annandale-on-Hud- were subject to many jokes in grow to about 64 over time.

BIG NIGHT: Dresden Semperoper Ballet dancers held a dance

rehearsal before the opening Tuesday of ‘5’ at the Joyce Theater.

MENENDEZ TRIAL NEW JERSEY

Closing Arguments
Expected This Week
Attorneys in the bribery trial
of U.S. Sen. Bob Menendez gath-
ered Tuesday to hash out the le-
gal instructions the judge is to
give to the jury before delibera-
tions, a crucial phase of the trial
in light of a recent Supreme
Court decision that has already
prompted the overturning of sev-
eral public corruption convictions.
After eight weeks of testi-
mony, jurors could hear closing
arguments from both sides on
Wednesday or Thursday.
Mr. Menendez, a New Jersey
Democrat, is charged with taking
gifts from a wealthy donor be-
tween 2006 and 2013 in ex-
change for political influence, in-
cluding lobbying government
officials on behalf of the donor’s
business interests. The donor,
Florida eye doctor Salomon Mel-
gen, also is on trial.
The two men have denied
any bribery arrangement and
ROBERTO COIN BOUTIQUE
say the gifts are an outgrowth
Westfield World Trade Center of their longtime friendship.
Oculus | Main Level C2 Before jurors hear closing ar-
New York, NY | 212.287.1299 guments, they will be instructed
by U.S. District Judge William
POIS MOI COLLECTION | robertocoin.com Walls on the specifics of the law.
—Associated Press
Ex-Coach Charged
With Diverting Funds
A former Rutgers University
men’s basketball coach diverted
thousands of dollars of public
money from a New Jersey park
system to a nonprofit he con-
trolled and gave him and his
family benefits including free
concert tickets, according to an
indictment unsealed Tuesday.
Kevin Bannon’s attorney, John
Furlong, said he is “supremely
confident” he will prevail at trial
after he was charged with re-
ceiving unauthorized benefits for
himself and others while leading
the Mercer County Park Commis-
sion.
Mr. Bannon coached at Rut-
gers from 1997 through 2001,
when he was fired after reports
surfaced that he forced his play-
ers to strip their clothes off if
they missed shots during free-
throw shooting contests.
The indictment alleges Mr.
Bannon ran the nonprofit Friends
of Mercer County Parks on
county time with county employ-
ees and used several schemes to
divert funds. The Park Commis-
sion is a semiautonomous public
agency funded by the county.
—Associated Press
 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.
The Online Bazaar for Looted Art
A flood of stolen art objects from the Middle East is showing up on Amazon, eBay, Facebook and WhatsApp
BY GEORGI KANTCHEV
EARLIER THIS YEAR, Stephennie
Mulder was in her office at the
University of Texas at Austin when
she received a Facebook message
from Yemen with pictures of gold
coins and an ancient tomb.
“I found the treasure in my
towns,” read the message from Ah-
med Bakil Al Marhabi, who was a
stranger to Ms. Mulder.
Ms. Mulder, an art history pro-
fessor, suspected immediately that
Mr. Al Marhabi was offering her
looted antiquities, part of the
growing flood now being peddled
on social networks, messaging
apps and online marketplaces like
eBay and Amazon.
“Sending me pictures of a
tomb... is pretty gutsy,” said Ms.
Mulder, who believes she was tar-
geted because of her participation
in antiquities groups on Facebook.
Criminals have for years sold il-
legal goods online. But the growth
of social networks and e-commerce
platforms, coupled with the recent
industrial-scale looting by Islamic
State across the Middle East, has
brought a stream of stolen antiqui-
ties online, often being offered to
unsuspecting buyers, according to
ILLUSTRATION: ROB WILSON
U.S. and European security officials,
antiquities experts and documents
seen by The Wall Street Journal.
Law enforcement officials say
the online outlets have become a
vexing challenge as they battle a
wave of looting that is stripping
heritage sites of ancient artifacts.
Revenue from the sales is often
used to finance various types of
terrorist and criminal groups that
also use the trade to launder other
illicit income including drug and
weapons trafficking, U.S. and Euro-
pean government officials say.
“ISIL has been exploiting the po-
tential of social media more and
more frequently so as to cut out
the middleman and sell artifacts
directly to buyers,” the European
Commission said in a July report,
using an acronym for Islamic State.
Every day there are at least
100,000 antiquities for sale online,
valued at over $10 million, esti-
mates Neil Brodie, senior research
fellow in Endangered Archaeology
at the University of Oxford. After
researching antiquities offerings at
leading online marketplaces, Mr.
Brodie estimates that up to 80% of
the objects offered have no legal
provenance, meaning they are
most likely looted or fake. Other
authorities say Mr. Brodie’s esti-
mates sound accurate.
“Internet sales platforms up-
grade the difficulty of the investi-
gations,” said Alberto Rodao Mar-
tín, an officer at the criminal
intelligence unit of Spain’s Civil
Guard police agency. “Now looters
in Spain send packages of ancient
coins directly to collectors in the
U.S. We’re overwhelmed.”
Facebook, Amazon, eBay and
What’sApp all say they have ex-
plicit policies prohibiting the post-
ing of stolen objects and mostly
HERCULE POIROT GETS A MODERN MAKEOVER
Kenneth Branagh as
Poirot in ‘Murder on the
Orient Express.’
20TH CENTURY FOX
LIFE&ARTS
rely on reports of stolen material.
Facebook says when content is re-
ported as stolen, the company re-
moves it from the site.
Amazon says those who don’t
follow its guidelines are subject to
action, including removing their
account. Amazon removed an ad
for an ancient Roman coin and two
others after the Journal contacted
the company about the origin of
the objects earlier in October.
In recent years, eBay has agreed
to provide the customs service in
countries where it operates with
contacts of sellers of suspicious
items, according to an anti-terror-
ism official familiar with eBay’s
practices. The company took the
action after Western counter-ter-
rorism officials expressed concern
that looted antiquities might be
ending up on the site. “We have
zero tolerance for illicit items like
looted antiquities,” said Wolfgang
Weber, global head of regulatory
policy at eBay.
Scrutiny by the European Com-
mission and U.S. officials over the
online antiquities trade is likely to
add to pressure on social media, e-
commerce and messaging apps.
They are already being scrutinized
by European and U.S. lawmakers
for divisive political messages and
extremist content. That has led the
companies to look at ways to bet-
ter police their content.
In a Facebook exchange with the
Journal, the man who identified
himself as Mr. Al Marhabi in the
ANTIQUITIES
A Facebook message, below, from a
man in Yemen offering gold coins and
other objects. An ad for ‘freshly dug’
Ancient Roman coins on Amazon,
right, was taken down after the
Journal contacted the company.
exchange with Ms. Mulder, said he
found the trove last year near a
farm in Yemen. Mr. Al Marhabi,
who said he was a law student, de-
clined to comment on the legality
of his offer.
The Facebook spokesman de-
clined to comment on specific
postings. The Foreign ministry in
Yemen didn’t respond to a request
for comment.
Experts warn the prevalence of
looted offerings today—and the
limited online policing—means am-
ateur collectors could easily end up
buying looted artifacts online.
Tim Haines, 53, an amateur an-
tique collector in Worcestershire,
England, says he received a Face-
book message from a stranger who
MOVIES
Wednesday, November 1, 2017 | A9
identified himself as Salah Abdo in
Egypt in August. Mr. Abdo was of-
fering a large, 55-pound stone pha-
raoh’s head for £22,000 ($29,000)
and various ushabti, a type of Egyp-
tian funerary figurine. Mr. Haines, a
staff member for a British politician,
began messaging with Mr. Abdo.
The head “belongs in the Egyp-
tian Museum if it is genuine,” Mr.
Haines wrote, according to a copy
of the message.
“No. I don’t work with this. This
is from our land,” Mr. Abdo wrote
back. The head is from the “back
of Karnak Temple. If you inter-
ested we give good price.”
In Egypt, all artifacts uncovered
after 1983 are the property of the
government. Most countries have
similar laws. Mr. Abdo didn’t re-
spond to requests for comment.
The Egyptian Supreme Council of
Antiquities didn’t respond to a re-
quest for comment.
Mr. Haines didn’t buy the ob-
jects because, he says, they were
BY TOBIAS GREY
IT TOOK NINE MONTHS of in-
depth mustache analysis to arrive
at the right kind of whiskers for
the latest screen incarnation of Ag-
atha Christie’s Belgian detective
Hercule Poirot. “In terms of real
estate on the face what we wanted
was to give Poirot more of a truf-
fle-hound, energetic sort of qual-
ity,” says Kenneth Branagh.
The Northern Irish star and di-
rector of “Murder on the Orient
Express,” out in the U.S. on Nov.
10, wanted to portray a more vigor-
ous and danger-courting man than
any previous incarnation. “As I
pored through Christie’s other
books, that seemed to be legiti-
mized by Poirot’s history in the
Belgian army and the Belgian po-
lice force,” he says.
Mr. Branagh’s discussions with
Christie’s only grandson, Matthew
Prichard, who oversees the crime
writer’s literary estate, confirmed
he was heading in the right direc-
tion. They also established how
much Christie’s own personality
expensive and he suspected they
were stolen. He says that amateur
collectors have to be extremely at-
tentive to provenance these days.
“There’s a lot of illicit material out
there now,” he said. He didn’t re-
port the case to Facebook.
There have been no publicly
documented cases of antiquities
looted by Islamic State landing in
the U.S., but security officials and
art experts suggest a flood of arti-
facts they believe are from conflict
zones being marketed online. Arti-
facts looted in Syria and Iraq are
already moving underground and
may not surface for decades, law-
enforcement officials say.
Between 2010 and 2015, a study
by Ute Wartenberg Kagan, executive
director of the American Numis-
matic Society, found a “significant
surge” on the global market in the
number of coins minted in the
reigns of Zenobia, a third-century
queen of the Syria-based Palmyrene
Please see LOOT page A11
bled into Poirot. “It takes a little to
get away from the image that
Christie has for many of a surro-
gate Miss Marple—a bepearled, be-
cardiganed, tweedy dame,” Mr.
Branagh says. “But from talking to
Matthew, she was a fierier and
fiercer character than that.” A
scene from the new film in which
Poirot stands atop the recently de-
railed Orient Express pays homage
to Christie’s own history as the
first English woman to surf upright
in Hawaii in 1922.
“Murder on the Orient Express,”
first published in the U.S. in 1934,
became Christie’s eighth detective
novel to feature Poirot. It takes
place aboard the luxurious Orient
Express as it travels through Eu-
rope. When a murder is committed,
Poirot is persuaded to solve a case
in which all of the passengers are
suspects. The novel was originally
filmed for the screen by Sidney Lu-
met in 1974 with the English actor
Albert Finney as Poirot. It has
since been adapted for television in
the recently ended, long-running
British series “Agatha Christie’s
Please see POIROT page A11
A10 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL.

LIFE & ARTS

MY RIDE | By A.J. Baime

A Ferrari Saleswoman’s 35-MPH Escape

Colleen Sheehan, 25, a Ferrari
saleswoman from Costa Mesa, Ca-
lif., on her 1930 BMW 3/15 DA2
Cabriolet, as told to A.J. Baime.
In 2000, when I was 8 years old,
my father took possession of the
BMW you see here as part of a
business deal. The car had be-
longed to the owner of a famous
fast-food chain, and my father
thought it would be cute to give it
to my twin brother Mick and I.
With a lot of help from my dad, we
fixed the car up.
In 2003, we took it to the Peb-
ble Beach Concours d’Elegance
(the most prestigious classic car
show in the country). It placed
third in its class, and at 11 years As a Ferrari salesperson, I am
old, I became one of the youngest often driving cars that can shoot
people ever to drive onto the Peb- past 100 mph with ease. Driving a
ble Beach Concours podium. That 1930 BMW is even more thrilling
ignited a motoring passion that because it is such a change of
has never left me. pace. The car has a roughly 750-cc

TED7 FOR THE WALL STREET JOURNAL

BMW was founded in 1916 as an
airplane engine manufacturer in
Germany. The company started
building motorcycles during the
1920s and completed its first car
in 1929. We believe our 1930 car is
the oldest original-bodied BMW in
this country. We have taken the
vehicle to numerous car shows and
BMW events, and we have never
found or heard of an older BMW
with its original body in the U.S.
These cars are rare today be-
cause so many were destroyed
during WWII. The story we have
been told is that our car was used
by German doctors during the war,
and it survived. At some point, it
found its way to the U.S.
four-cylinder, with three speeds
and 15 horsepower. (That’s where
the 3/15 in the name comes from.)
Top speed is 35 mph, and that’s
if you’re going downhill with a
tailwind. Due to the 1930 suspen-
sion and steering, keeping the car
in its lane is a mission in itself. Ev-
ery bump moves the car, so you
sort of bounce down the road.
My favorite thing to do with the Colleen Sheehan of Costa Mesa, Calif., in period dress with her 1930 BMW 3/15 DA2 Cabriolet. Ms. Sheehan believes
BMW is to take it to brunch on a this car is the oldest original-bodied BMW in the U.S. The car with its top down, bottom left.
weekend and sit outside, so I can
watch the reactions people have
when they see it. It sparks joy and
curiosity everywhere it goes.
Contact A.J. Baime at
Facebook.com/ajbaime.

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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A11

LIFE & ARTS

POIROT
Continued from page A9
Hercule Poirot” starring
David Suchet.
The filmmakers’ aim
with the new version was
to tease out a more
rounded Poirot, one who
can find joy in simple
things, such as reading the
novels of Charles Dickens
or enjoying a good dessert. Poirot interpreted by British
“I think one of the actors Charles Laughton,
things that we can take above, and David Suchet.
most pride in with the film
is that perhaps for the first
time Poirot has an arc,”
FROM TOP: JACKIE LEE YOUNG; NETFLIX

says the movie’s American

screenwriter, Michael
Green. This meant showing
a Poirot who is less inde-
fatigably himself all the
time. “He isn’t yet the per-
fect version of himself,”
Mr. Green says. “He still
has lessons to learn that
are going to make him an
even more accomplished
MUSIC REVIEW | By Jim Fusilli detective in his subsequent
investigations.”
In the past, Poirot has play was to ensure there

Sounds of the Upside-Down tended to be portrayed as

A retro-flavored soundtrack brings the universe of ‘Stranger Things 2’ to life
THE COURAGEOUS, hyper-
vigilant, supremely loyal
kids of the Netflix series
“Stranger Things” are back
in “Stranger Things 2,” as
are the ruthless monsters
from the upside-down and
the villainous scientists of
Hawkins National Labora-
tory. And so, too, is the mu-
sic of Kyle Dixon and Mi-
chael Stein, who composed
the original score for the
nine-part series that was re-
leased on Friday. Once
again, the duo—members of
Survive, an electronic quar-
tet from Austin, Texas—have
created a series of cues and
themes that do what a great
score should: illuminate
character, ratchet tension
and foreshadow events.
They do so entirely through
electronic sounds, most, but
not all, of which are based
on the synthesized music of
the mid-1980s.
has a taste for Billie Holiday.
In an example of the kind of
winking commentary in
which the series delights,
her yearning “You Better Go
Now” plays discreetly as the
vodka-soaked Bauman
nudges two hesitant teens
into spending the night to-
gether. Preference in music
is a cornerstone of identity
dominant influence in 1980s
film. But the “Stranger
Things 2” score is also close
kin to the music of Survive,
which, across its three al-
bums, has created a body of
work that shares a template
with synthesized scores for
’80s horror and sci-fi films.
Composed and performed by
Messrs. Dixon and Stein
a detective with supreme
confidence in his capacity
to crack a case. Previous
incarnations weren’t
weighed down by the kind
of moral doubts that assail
Michael Stein and Kyle Dixon, Mr. Branagh’s version. The
above, and Millie Bobby Brown emphasis was also on a
as Eleven, left. more sedentary detective,
keeping with Christie’s in-
that clarify character and struction at the beginning
bridge the emotional subtext of “Murder on the Orient
of scenes across the season. Express” that “to solve a
One motif, which deploys a case, a man just has to lie
popcorn-like synth, reoccurs back in a chair and think.”
when characters discover in- Mr. Branagh’s incarna-
formation that drives them tion of Poirot’s character is
to action. Booming drums, also the first to be in-
generated on synths, enter vested with a sentimental
repeatedly. When I spoke by side. In the film, Poirot
phone on Saturday with the keeps a framed photograph
duo, Mr. Dixon said the big of a woman called Kather-
drum sound was its take on ine, to which he turns
how Hans Zimmer empha- when his confidence is
sizes propulsive action in down. “In the stories,
his scores. Poirot once fell for a Rus-
While the “Stranger sian woman called Vera
Things 2” music is rooted in Rossakoff, which inspired
the ’80s, some sounds are us to come up with Kather-
generated with new soft- ine,” Mr. Branagh says.
ware and synths. “Music can “The mystery of this
become a distraction if it’s woman is something we
too throwback,” said Mr. might enjoy considering
Dixon. “The audiences can should there be another
FROM TOP: GENERAL PHOTOGRAPHIC AGENCY/GETTY IMAGES; EVERETT COLLECTION (2)
was diversity of race and
age across the murder sus-
pects Poirot encounters on
the Orient Express.
Mr. Green amalgamated
the characters of a doctor
and a British army colonel
in a new character: Dr. Ar-
buthnot, portrayed by Les-
lie Odom Jr., is an African-
American doctor with a
military background. “Mak-
ing the character black al-
lowed him to have a story
of how he became a doctor
in a time when few people
of his race were given the
privilege,” Mr. Green says.
The new film, which like
the novel is set in the
1930s, immediately estab-
lishes Poirot’s bona fides
as a world famous detec-
tive by way of an introduc-
tory case involving the
theft of a precious jewel.
“The opening of the novel
had a presumption that
people reading it already
knew all about the charac-
ter,” Mr. Green says. The
screenwriter wasn’t pre-
pared to take the gamble.
“In America, everyone re-
members Agatha Christie

As fans of the series
know, music plays a dual
role in the “Stranger
Things” universe. The obvi-
ous one is conveyed by the
pre-existing recorded tracks
selected by Nora Felder, the
series’ music supervisor,
that not only confirm the
time period—late 1984 this
time around—but comment
on the characters’ personali-
ties. When Billy Hargrove,
the comically overblown
bully with a mullet, roars
into view in his black Ca-
maro, he’s accompanied by
comically overblown music
like Ted Nugent’s “Wango
Tango.” Parents and their
peers tend to favor sappy
tunes, though the conspir-
acy theorist Murray Bauman
and self-confidence. “Who
would you rather be friends
with? Bowie or Kenny Rog-
ers?” asks the brooding Jon-
athan Byers, who, comfort-
ing his bullied brother, Will,
reminds him that it’s much
cooler to be a misfit than a
conformist. (Spotify users
can access playlists for each
of the series’ main charac-
ters, a nice treat and a way
to stay in touch until the
third season rolls around.)
As they did in season 1,
Messrs. Dixon and Stein em-
ploy synthesized orchestral
and percussion sounds that
recall the film music of Van-
gelis, who scored 1982’s
“Blade Runner,” and Tanger-
ine Dream, the German col-
lective whose scores were a
with band mates Mark Don-
ica and Adam Jones, Sur-
vive’s textured, deliberately
retro-minded music is dark,
threatening and relentless
yet laced with a trace of
hope—which is what
“Stranger Things 2” re-
quired in its score.
But in “Stranger Things
2,” the duo goes beyond
what they do in the band, as
heard on the soundtrack al-
bum for season two, out
now on the Lakeshore label.
“The First Lie” is a moving,
soft-pop love theme that
might have appealed to mid-
’80s teens, while “Presump-
tuous” is bright but bitter-
sweet—styles not in the
Survive lexicon. Addition-
ally, the two develop themes
feel the directors’ intent. It movie.” but not everyone remem-
can become too kitschy.” Mr. Green’s own goal bers Hercule Poirot as well
Mr. Stein added, “If it’s when writing the screen- as they should,” he says.
familiar, it’s not scary. If it’s
ambiguous, it is.”
With the “Stranger
Things 2” score, Messrs.
Dixon and Stein once again
heighten terror and under-
score the intelligence and fi-
delity of young friends who
challenge not only murder-
ous monsters but the roiling
emotions of the early teen
years. Whether applied sub-
tly or stepping out to con-
front the audience, the duo’s
smart, sympathetic music
helps make “Stranger Things
2” a triumph.
Mr. Fusilli is the Journal’s
rock and pop music critic. Peter Ustinov as Poirot in 1978’s ‘Death on the Nile.’

Alberto Rodao Martin, an port from law enforcement

officer of Spain’s Civil Guard
police agency in Madrid.
While e-commerce sites
GEORGI KANTCHEV/THE WALL STREET JOURNAL
or another source about a THE MOST COMFORTABLE
potentially illicit object, it
starts its own investigation, OFFICE CHAIR ON EARTH
Mr. Weber said. That typi-

BORN FROM THE MIND OF KEN OKUYAMA, DESIGNER

have been an important sales
channel for the antiquities
market for years, the looting
trade has increased recently,
security experts say, often in
full sight.
On Amazon, third-party
sellers have advertised ‘un-
cleaned coins’, a tell-tale sign
that they might have been re-
cently excavated. Experts re-
fer to such coins as having
‘desert patina,’ a mineral de-
cally involves contacting the
OF THE FERRARI ENZO AND MASERATI BIRDCAGE
seller, asking for the ob-
ject’s provenance and work-
ing with law enforcement
and experts to verify it. De-
pending on the outcome of SAVE
the investigation, eBay
could remove the listing,
$1000
Mr. Weber said.
Law enforcement has also
had to adapt. Last year, Mr.
Martín’s team at Spain’s Civil
Guard spotted two ads for

LOOT started to trade antiquities

Continued from page A9
Empire, and her son. That
surge coincides with the start
of the Syrian civil war in 2011
and the rise of various terror
groups that have been active
in the country.
That is “something that
most coin collectors and
many dealers in the U.S. are
largely unaware of,” Ms.
Wartenberg Kagan says in
the study.
The trade of potentially
looted antiquities is flourish-
ing across a range of popular
online platforms, social net-
works and messaging apps.
Syrian antiquities expert
Muhamed Hajj al-Hassan
says he often receives pic-
tures of looted objects put
up for sale by officials he be-
lieves are from ISIS on the
encrypted messaging system
WhatsApp. A Syrian na-
tional, Mr. al-Hassan says he
in 2015 after being contacted
by a top official of Islamic
State who sought his archae-
ological expertise to find
Western buyers. He has
since denounced the group
and declines to say if he is
actively trading.
This summer, a Syrian
trader posted a silver pen-
dant dating from the second
millennium B.C. and antique
Jewish coins dating from the
first century A.D. in a Whats-
App group for antiquities
traders that Mr. al-Hassan
belongs to. The trader said
he was ready to smuggle the
goods into Turkey if he
found serious buyers, Mr. al-
Hassan said.
A spokeswoman for
WhatsApp didn’t comment
on specific messages but
pointed to the company’s
terms of service, which pro-
hibit its use for content in-
fringing property rights and
other illegal activity.
posit similar to rust that of-
ten adheres to metal objects
as they decay.
A recent advertisement on
Amazon offering “One Un-
cleaned Ancient Roman Coin”
for $14.99 depicted dozens of
coins covered by such dirt.
“Freshly dug,” the ad read.
“These coins are straight
from the Metal Detector.”
“This stuff is certainly il-
legally looted and smug-
gled,” said Nathan T. Elkins,
associate professor of art
history at Baylor University
in Texas, referring to these
coins and other similar ads
he saw on Amazon. Amazon
said it removed the Roman
coin ad and two others after
the Journal contacted the
company.
Mr. Weber of eBay said he
has “learned so much about
antiquities in recent years” in
his work with law enforce-
ment and archaeologists for
more than a decade.
When eBay receives a re-
Roman amphora for sale on a
local Spanish e-commerce
site for €2,500 and €300, re-
spectively.
“It’s been a week since I
took it out of the sea,” one of
the ads said. That note gave
away its illicit nature “quite
stupidly,” Mr. Martín said.
An undercover agent con-
tacted the seller over
WhatsApp and arranged to
meet her in a shopping mall
in Malaga, on Spain’s Medi-
terranean coast. When the
seller came with a duffel
bag containing three Roman
amphora, she was charged Visionary design and engineering have come together to
and the objects seized, ac- produce a chair so ergonomically perfect, so completely
cording to a police report re-imagined, that it exists in a category all its own.
seen by the Journal. This is no mere office chair.
“Not long ago, our job in-
volved watching looters This is Vaya®
with sniper binoculars in the
bushes,” Mr. Martín said.
“Now we’re looking at on-
line ads.”
—Benoit Faucon and 888-233-6933 | positiveposture.com/vayachair
Valentina Pop contributed to
this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A12 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL.

SPORTS
TENNIS | By Jason Gay

Roger Federer Is Still Rocking

Hey! Roger Federer was on Fed a pristine 4-0 record over Rafa in 2017).
the phone. “I wish I could have chased [No. 1] more—
“For the most part, this has my only regret is that I couldn’t have chased
been a dream, a fairy tale,” he Roger Federer’s 2017 record is 49-4. it more at Cincinnati and the U.S. Open. That
told me. The tennis giant was was a pity—but Rafa played a full schedule,
calling from Switzerland, where and he deserves it. I’m OK with that.”
he’d won his hometown tournament in Basel He now had another Basel title, and that
for the eighth time, escaping his friendly felt good. Federer’s relationship to the tour-
nemesis, Juan Martin del Potro, in a roller nament stretches back to his childhood,
coaster three-set match. when he worked as a ball boy.
“Both of us were a little tired and up and “For me, it was all about being close to the
down,” Federer said. “I think I had a little top players, seeing all their rackets, how they
more gas in the tank at the end.” would behave during matches,” Federer said.
We are close to the end of what has been a At the time, one of his favorite players was
staggering 2017 for Federer. After shutting the South African Wayne Ferreira. He remem-
himself down the second half of last year to bered “going all the way up in the stands and
recover from injuries, Federer was a shock supporting Wayne…screaming from the top
winner at January’s Australian Open—and edge of the stadium.” (Later, Federer would
charged on to have a spectacular comeback become Ferreira’s doubles partner.)
campaign. In July, Federer delivered an eighth I asked Federer about the Laver Cup—the
Wimbledon title, adding to his record of 19 Ryder Cup-style team tennis competition he
major tournament men’s singles titles. He helped launch this September in Prague,
currently sits at No. 2 in the world rankings. which moves on to Chicago in 2018. Nobody
Federer’s 2017 record to date? 49-4. I be- really knew quite what to expect out of this

FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES

lieve the word is: Yowza. idea—but it turned out to be a delight, espe-
Can we hit pause for a second and ac- cially when Federer and Nadal paired up for
knowledge how nutbonkers this is? The doubles for the first time ever.
Federer Revival gets my vote for one of the “I am honestly over the moon with it,”
best sports stories of the year. How quickly Federer said. “Chicago is going to be so
we’ve all forgotten that long stretch in the cool. I can’t wait.”
middle of this decade in which Federer re- There’s one last goal on the horizon: a
mained among the game’s top players good performance at the ATP World Tour fi-
but…couldn’t…quite…get those Slams. nals in London in mid-November. “If I finish
There were heartbreakers and upsets and the season strong, and playing well at the
a lot of talk that he might not get another World Tour final, I’ll be so happy, regardless
one. The consensus was that Federer was of the ranking,” he said.
still good, but he was vulnerable, in his sun- Federer already sounded plenty happy. I
set. The mood was a little melancholy—we’d asked him if, at any point during this season,
never see Full Fed again. he considered walking away from the game.
This year, he’s roared back to take those After all, he’d written a perfect last chap-
two Slams along with five more singles ing up and winging it is not on the menu. “It’s in a tough spot in the calendar for ter, if he chose to end it.
wins. Sure: struggles and injuries for Novak He opted to skip the clay court season, a me,” he said. “Basel is an emotional tourna- “People asked me about it [after Wimble-
Djokovic and Andy Murray cleared a path, decision that deprived Roland Garros, but ment for me, and I always feel very drained. don], I was like ‘Yeah, I guess you’re right, it
but anyone who’s been watching knows that looked wise when he played with fresh legs My body needs a rest as well. could have been a cool exit,’” he acknowledged.
the Federer we’ve witnessed in 2017 is a re- at Wimbledon. He’s decided to skip an up- He sounded unfazed about letting go of “But it doesn’t need to end in a fairy tale
animated force: fluid, physical, and freshly coming tournament in Paris, a choice that the chase for No. 1. every time. I am happy playing, and we’ll
dangerous with a bigger-racketed backhand. will surely disappoint his French fans—and “Ever since Rafa won the U.S. Open, I see how it’s going to be. I was never scared
He’s 36 and playing 26. It’s full-on ba- effectively hand the year-end World No. 1 knew it was going to be very, very difficult,” of the end. The body and the mind will tell
nanas, a rewrite of the history books. ranking to his rival Rafael Nadal. he said. After Nadal played well on the me when it’s enough.”
At the same time, age and the need for It wasn’t an easy call, Federer said. But tour’s Asian swing, it became harder, even as “For the moment, I feel good,” Roger
recovery have made Federer careful. Show- this is what he needs to do now. Federer won their final in Shanghai (giving Federer said, not yet ready for a goodbye.

FOOTBALL missing—a frenetic bonanza of headline-

stealing moves, which has always been a

THE NFL’S TRADING FRENZY

hallmark moment during the NBA and MLB
calendars.
Since August, there have been more
trades than during the same months over
for yet another decade, to the San Francisco the last 10 years, according to Stats LLC.
BY ANDREW BEATON
49ers for a second-round pick. Many of these trades over the last few
There are long-term ramifications not months weren’t trivial minutia, either.
YOU’RE FORGIVEN if you had no earthly only in New England and San Francisco, but They involved some of the best players
idea that the NFL’s trade deadline was Tues- also across the entire league where there going to some of the best teams. The Los
day, even if you’re the biggest football fan in could be shifts in the market for the Angeles Rams got wide receiver Sammy
TRASK SMITH/CSM/ZUMA PRESS

the world. It’s typically a footnote on the league’s most important position. The 49ers Watkins before the season started from the
calendar, a forgettable snore. were a quarterback-needy team with gobs of Buffalo Bills. And the Arizona Cardinals
Then this year’s trading season went salary cap room—setting them up as a logi- nabbed Adrian Peterson from the New Or-
more berserk than anything in recent his- cal bidder for potential free agent Kirk leans Saints just a couple of weeks ago.
tory. Concluding with a handful of deadline Cousins, who could command a record-set- Part of this wave can be attributed to
deals, these moves upended this year’s play- ting contract and used to work with current teams having more cap room than ever and
off picture and potentially the landscape of 49ers coach Kyle Shanahan in Washington. more flexibility to add players during the
the sport for years to come. The Garoppolo deal wasn’t the only middle of the season. But that’s not the only
The trade with the biggest fallout may blockbuster. Two playoff contenders made Patriots traded Jimmy Garoppolo to the 49ers. reason.
have been the one that seemingly came out major acquisitions: The Philadelphia Eagles “It’s part of the new generation of gen-
of nowhere: The New England Patriots send- acquired Pro Bowl running back Jay Ajayi with a star tackle from the Houston Texans, eral managers in the league,” said former
ing prized quarterback Jimmy Garoppolo, from the Miami Dolphins for a fourth-round Duane Brown. NFL executive Mark Dominik, who added
long seen as Tom Brady’s heir apparent with pick. And the Seattle Seahawks shored up This deadline was just the boiling point trading season gets “more exciting every
the potential to extend the team’s dynasty one of the NFL’s shakiest offensive lines for something the league has typically been year.”

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.
d t
Edmonton 20s <0 1 2 3 4 5 6 7 8 9 10 11 12 13 58 Seated on 25 Stratford’s river
30s
Vancouve
Vancouver Calgary
Calgary
0s 14 15 16 59 Web banners, 26 Facilitate in
40s 40s 10s often felony
Seattle 30s ip
Winnipeg 17 18 19
20s 60 It’s said to have 27 Craving
P d
Portland
60s t
Montreal 30s 20 21 22 a long arm
Helena Bismarckk A t
Augusta 28 Abatements
ttawa
Ottawa 40s
Eugene 50s g
Billings 50s 23 24 25 61 “Huh-uh” 29 Bring to bear
30s pls //St. Pau
Mpls./St. P
Paul T t
Toronto A ban
b y
Albany t
Boston 50s
i
Boise Pierre 26 27 28 29 Down 32 Meets by chance
rtford
Hartford 60s
oux FFalls
Sioux ll 40s k
Milwaukee Detroit
t l
Buffalo 1 Put in the
60s New Yorkk
ew Y 30 31 32 33 34
Reno 60s es Moines Chic
Ch g
Chicago Clevel d
Cleveland 70s
overhead bin 33 Stepped down
Salt Lake City
Lake Cit
C Che
h y
Cheyenne 50s Des Ph
hil d lph
hi
Philadelphia
Pit b h
Pittsburgh 80s
Sacramento h
Omaha p g
Springfield di p
Indianapolis 60s 35 36 37
2 Margarita 34 A bit risqué
Denver hington
hi gton D.C.
Washington DC 90s
an Francisco
San Top k
Topeka Kansas Charles
h
Charleston 38 39 40 garnish 36 A smattering of
City h
Richmond d 100+
Las 70s C d
Colorado
70s h
Wichita St.. LLou
Louis LLouisville
Lou
70s Ve g
Vegas p
Springs
gh 70s
Raleigh 41 42 3 The United 37 Dollars for
Los A
Angel
Angeles 50s h ill
Nashville Charlotte
C h l tt States, in a quarters
Santaa F
Fe Mem
Memphis phi
80s Ph
Phoenix Alb q q
Albuquerque Oklahoma
kl ma City C b
Columbia 43 44 45 46 familiar pledge
San Diego LLittlee Rockk Atl t
Atlanta Warm Rain 39 Fanatic’s follower
T c
Tucson Birmingham
h 47 48 49 50 51 4 Angry kids throw
Ft. Worth D ll
Dallas Jack k
Jackson 40 Potential pickle,
El P
Paso
Cold T-storms them
80s bil
Mobile Jacksonville 52 53 54 55 for short
10s
A ti
Austin
Houston Stationary 5 Cylinder part
20s ew Orleans
New l d
Orlando Snow 56 57 58 41 Thieves’ take
80s an Antonio
San Tampa 6 Not for
30s Showers Flurries 59 60 61 42 Make harmless
Honolulu
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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
THE WALL STREET JOURNAL.
Trump and the ‘Russia Racket’
The Trump
d o s s i e r
claims were
never exactly
plausible.
Russian intel-
ligence, to
BUSINESS
WORLD the first oppo
re s e a rc h e r
By Holman W.
who came
Jenkins, Jr.
along offer-
ing to pay for
drinks, would expose its deep-
est secrets?
The claims were so obvi-
ously self-serving to those
promoting them. They smelled
so much like Russian disinfor-
mation, if there was a Russian
source at all. As far as any re-
porter has been able to ascer-
tain, Christopher Steele might
have made it all up in his Lon-
don office.
David Corn of Mother
Jones, one of the few report-
ers to surface the Steele alle-
gations before Election Day, in
a piece last week claimed Mr.
Steele approached him “fright-
ened” and “worried” about a
Trump presidency.
No, he may have told Mr.
Corn this, but Mr. Corn
doesn’t know what was in Mr.
Steele’s mind.
Mr. Corn dramatically de-
scribes Mr. Steele as stepping
out of the shadows reluc-
tantly, impelled by his terrible
knowledge. Uh-huh. For all
Mr. Corn knew at the time,
Mr. Steele and confederates
were shopping their wares all
over town (as in fact they
were).
Mr. Corn proceeds to berate
the rest of the media for its el-
ementary skepticism last fall,
A Bipartisan Plan to Cut Corporate Taxes
I wonder if
Republicans
on the House
Ways and
Means Com-
mittee are in-
POLITICS terested in a
bipartisan
& IDEAS
plan that re-
By William
duces the cor-
A. Galston
porate tax rate
to 15%, makes
the code more progressive,
doesn’t deepen the deficit, and
is carefully scored?
Last year, Eric Toder from
the Tax Policy Center, an out-
fit many Republicans don’t
like, and Alan Viard from the
American Enterprise Institute,
an outfit many Republicans do
like, presented such a pro-
posal. The current code, say
Messrs. Toder and Viard, is
outdated because it has failed
to adjust to four major
changes in the economic and
policy environment: “(1) the
increased globalization of eco-
nomic activity, (2) corporate
tax rate reductions in other
countries and their shifts to
territorial tax systems, (3) the
increased share of business
assets in the form of intangi-
ble property, and (4) the in-
creased share of economic ac-
tivity in the United States not
subject to the corporate in-
come tax.”
In agreement with most tax
experts, Messrs. Toder and Vi-
ard believe that the current
corporate code has given U.S.
multinational corporations
strong incentives to accumu-
late as much as $2.4 trillion in
profits overseas. In addition,
That Emoji Burger Is High in Phatic
By Tunku Varadarajan
G
oogle’s CEO, Sundar Pi-
chai, has much on his
plate right now as Con-
gress takes a grumpy look at
his company’s role in enabling
Muscovite malefactors to sway
the 2016 elections. Yet Mr. Pi-
chai found time Sunday to an-
nounce that he’d “drop every-
thing” to address another very
Trump-era crisis. A media ana-
lyst with too much free time
tweeted that he’d noticed
Google’s burger emoji has its
cheese layer in quite the
wrong place.
Google puts the cheese be-
tween the lower bun and the
beef patty, which, as any grill-
master worth his char will tell
you, is eccentric. The cheese
should be atop the patty for
the best-textured melt.
Mr. Pichai, a lifelong vege-
tarian, may not be the ideal ar-
biter in these matters. But in
truth, the episode is less about
the paradigmatic American
burger than the manner in
then ends with a fundraising
appeal for Mother Jones.
Here’s a similarly tenden-
tious example from this week.
Harry Litman, a former Clin-
ton Justice Department offi-
cial, begins his Monday New
York Times op-ed by claiming
the press “buried” the guilty
plea of George Papadopoulos,
a “close” Trump adviser.
The news wasn’t “buried”
and Mr. Papadopoulos wasn’t
“close.” Mr. Litman is honest
about only one thing. Anyone
who rises in public visibility
will be besieged by opportun-
ists. Mr. Papadopoulos, a per-
son of considerable youth and
little accomplishment, pleaded
guilty to one count of lying to
the FBI. His lies, by the Muel-
ler task force’s description,
concerned only the timing of
approaches by persons claim-
ing ties to Russia after Mr. Pa-
padopoulos’s name appeared
on a throwaway list of cam-
paign advisers.
Notice that the particulars
of his case actually belie the
theory of meaningful Trump-
Russia collusion.
But Mr. Litman is a bit of
an opportunist himself, willing
to inflate the case’s signifi-
cance in ways he knows are
disingenuous to get his name
before a Times audience.
Sean Keeley of the Ameri-
can Interest magazine has
written about the emergence
of a “Russian interference
racket.” The term is apt.
Movie star Morgan Freeman
thunders in an online video,
“America has been attacked.
We are at war.” All too obvious,
though, the new group he’s
U.S.-based multinationals find
it easy and profitable to trans-
fer ownership of their intangi-
ble assets to their overseas af-
filiates while crediting the
earnings on these assets to ju-
risdictions with tax rates
lower than ours.
Even if the U.S. economy
were closed to international
trade and investment, Messrs.
Toder and Viard add, the cur-
rent corporate tax code still
would be structurally flawed.
For example, it penalizes eq-
uity-funded corporate invest-
ment relative to debt-financed
investment. Debt-financed in-
vestments are taxed only at
the individual level (as are in-
vestments by pass-through
entities), while equity-fi-
nanced investment is taxed at
the corporate level as well.
Moreover, dividends are taxed
when they are received, while
capital gains are taxed only
when realized, and in some
circumstances not at all.
To alleviate these prob-
lems Messrs. Toder and Viard
propose some fundamental
reforms. They would elimi-
nate the current tiered cor-
porate tax system, with its
top rate of 35%, replacing it
with a flat tax of 15%. They
would also scratch the corpo-
rate alternative minimum tax.
These changes, they demon-
strate, would dramatically
improve the incentives for
both Americans and foreign-
ers to invest in the United
States.
To avoid massive revenue
losses to the Treasury, they
would shift most of the tax
which emojis have become a
staple of our lives. In the past
year alone, two academic
books have been published on
the phenomenon. “The Semiot-
ics of Emoji” (by Marcel
Danesi) and “The Emoji Code”
(by Vyvyan Evans) seek to tell
us how the “visual language”
of smiley faces, hearts and
thumbs-up is changing the way
we communicate.
Google’s CEO tries
to figure out who
moved his cheese.
“Emoji” is, perhaps, the
most widely used Japanese
word in English among people
under 30. Even for older An-
glophones it gives other great
Japanese loan-words—tsu-
nami, karaoke, haiku—a run for
their yen. Contrary to wide-
spread belief, emoji isn’t a
semiliterate distortion of an
English word; it’s Japanese for
OPINION
fronting for, the Committee to
Investigate Russia, created by
Hollywood producer and meat-
head actor Rob Reiner, cares
about Russia only to the extent
it can be used to whip the
Trump administration.
Mark Zuckerberg was right
when he described as “crazy”
the idea that Russia, amid a
deluge of ignored social-media
How a rival power
became the American
political class’s land
of opportunism.
postings, influenced the elec-
tion. He has been personally
corrected by Barack Obama on
his duty to uphold the Demo-
cratic narrative.
Here’s a question about all
this: Has vile, self-interested
partisanship brought us so
low that we are all basically
doing Russia’s work in dis-
crediting U.S. politics?
Or is Russia, after all, a bit
of a joke, a former superpower
sinking in its own corruption
and depravity, such that we
are uninhibited in exploiting it
for domestic advantage?
Donald Trump looks more
and more like a latecomer,
with his flippant, irresponsible
invitation to the Kremlin to
hack Hillary’s emails.
Don Jr., with his “I love it”
response to proffered Russia
dirt on Mrs. Clinton, stands
out now mainly as the one
person from whom better
shouldn’t have been expected.
burden to shareholders. Their
proposal would tax dividends
and capital gains at ordinary
income rates. And to eliminate
the imbalance between divi-
dends, taxed when received,
and capital gains, taxed only
when realized, they would
move to a mark-to-market
system, with prices averaged
(“smoothed”) over a number
of years to reduce high vola-
tility. To reduce administra-
tive costs and disproportion-
ate compliance burdens, they
would exempt small-asset
holders from mark-to-market
taxation.
How to reduce the
rate to a flat 15%
without widening
the budget deficit.
To avoid double taxation,
shareholders would receive a
tax credit reflecting their
share of taxes paid at the cor-
porate level. This would pre-
vent the windfall gains that
tax-exempt organizations and
retirement funds would other-
wise enjoy under this ap-
proach. In addition, the au-
thors work through the
complex transition issues that
real-world tax-writing com-
mittees must address. It would
be easy to turn their proposal
into legislation.
Americans would benefit in
several ways. A substantial
portion of multinationals’ prof-
its stashed overseas would be
“picture-character.” It just hap-
pens to be a convenient near-
homonym for “emotion.”
One might argue that the
scholars cited above are sub-
jecting emojis to too much scru-
tiny. Mr. Evans cites six core lin-
guistic functions that emojis
perform. These are, in his
words: substitution, reinforce-
ment, contradiction, meta-com-
ment, emphasis, and discourse
management. Mr. Danesi, for
his part, emphasizes the
“phatic” function of emojis, by
which he means that they play a
big role in small talk. He speaks
of “emoji competence,” which is
the ability “to intersperse emoji
images into a written text in or-
der to imprint a positive emo-
tional tone into it or to main-
tain phatic communion with the
interlocutors.”
Put simply, these academics
say emojis help us avoid con-
flict and add a dash of humor
and flavor to increasingly terse
online communication. They
also urge us to push back
against lingual Luddites who
The Clinton campaign and
Democratic Party, we now
learn, were spreading money
in Moscow watering holes as
early as June 2016 for trash
talk about Mr. Trump. From
the book “Shattered,” we learn
how seamlessly her staff later
fluffed up a narrative about
Russia stealing the election to
distract from their own gross
blunders.
Mr. Trump wasn’t to our
taste in presidential candi-
dates, which runs toward the
conventional. His outsider-
hood brings real costs. Mr.
Trump, without deep GOP ties,
brought aboard Paul Manafort,
who had long since given up
domestic politics in favor of
influence peddling in lucrative
but sketchy venues abroad.
But all this is beside the
point. Whoever voted for Mr.
Trump could not miss his
clarion contempt for the ex-
isting political class. His vot-
ers, at the same time, did not
mistake him for a policy ex-
pert. In some sense, their
vote was a vote of confidence
in the system—our institu-
tions and, yes, our existing
political class—to accept Mr.
Trump as the people’s tribune
and guide his actions in a suc-
cessful direction.
And it may still happen. Mr.
Trump may yet ride his econ-
omy to re-election. The elites
may yet have to reconcile
themselves to the fact that
he’s their only path to getting
things done.
If so, all this will come be-
cause elites continue to give
his voters ammunition to feed
their contempt.
available for domestic pur-
poses. Foreign holders of cap-
ital would be more likely to
invest in the United States.
Many distortions in the cur-
rent code would be reduced
or eliminated, allowing eco-
nomic fundamentals rather
than tax advantages to shape
individual decisions. A por-
tion of the gains from the rate
cut (Messrs. Toder and Viard
do not specify the share)
would go to income from la-
bor. Taxpayers in the top 1%
would see a modest increase
in their tax burden while ev-
eryone else would enjoy a
modest decrease.
Evaluated on a static basis,
the proposal would slightly re-
duce corporate tax receipts. But
because corporations would al-
most certainly shift a portion
of their profits from formerly
lower-tax jurisdiction back to
the United States, broadening
the tax base, receipts would in-
crease from an estimated $28
billion in 2018 to $51 billion in
2025, reducing the deficit rela-
tive to current law.
In their proposal, Messrs.
Toder and Viard leave most
corporate tax preferences as
they are. This has a political
advantage they do not men-
tion: They can slash the cor-
porate tax rate without at-
tacking the most fiercely
protected provisions of the
current code or widening the
budget deficit, which is pro-
jected under current law to
add $10 trillion to the debt
over the next decade.
Congressional Republicans,
the ball is in your court.
argue, in Mr. Evans’s words,
that emojis are “a step back-
wards to the dark ages of illit-
eracy.” But I have yet to read a
coherent critique disputing the
idea that emojis are a conve-
nient way of replenishing some
of the nuance that has been lost
by the depletion of our more
conventional vocabularies.
Besides, as Columbia Uni-
versity linguistics professor
John McWhorter said in a re-
cent TED talk, Western ped-
ants have been complaining
about the impoverishment of
language since about the year
63, the first recorded instance
of Roman lingua-fogeyism. (I
suspect the ancient Greeks
were at it, too.)
So, let us leave Mr. Pichai to
resolve the placement of cheese
on Google’s emoji burger with-
out further delay. That done, he
can get back to the business of
our beef with Russia.
Mr. Varadarajan is a fellow
in journalism at Stanford Uni-
versity’s Hoover Institution.
Wednesday, November 1, 2017 | A13
BOOKSHELF | By Joshua Rubenstein
The Turn
To Tyranny
Stalin: Waiting for Hitler, 1929-1941
By Stephen Kotkin
(Penguin Press, 1,154 pages, $40)
I
n the aftermath of Lenin’s death in January 1924,
Joseph Stalin—already secretary-general of the
Communist Party—emerged as the outright leader of
the Soviet Union. “Right through 1927,” Stephen Kotkin
notes, Stalin “had not appeared to be a sociopath in the
eyes of those who worked most closely with him.” But by
1929-30, he “was exhibiting an intense dark side.” Mr.
Kotkin’s “Stalin: Waiting for Hitler, 1929-1941,” the second
volume of a planned three-volume biography, tracks the
Soviet leader’s transformation during these crucial years.
“Impatient with dictatorship,” Mr. Kotkin says, Stalin set
out to forge “a despotism in mass bloodshed.”
The three central episodes of Mr. Kotkin’s narrative, all
from the 1930s, are indeed violent and catastrophic, if in dif-
ferent ways: the forced collectivization of Soviet agriculture;
the atrocities of the Great
Terror, when Stalin “arrested
and murdered immense num-
bers of loyal people”; and the
rise of Adolf Hitler, the man
who would become Stalin’s ally
and then, as Mr. Kotkin puts it,
his “principal nemesis.” In each
case, as Mr. Kotkin shows,
Stalin’s personal character—a
combination of ruthlessness and
paranoia—played a key role in
the unfolding of events.
Forced collectivization was the
linchpin of Stalin’s first Five-Year
Plan. With the peasants living mostly on
small-scale plots, he compelled millions of
households to move onto collective farms and sought to
turn many peasants into the industrial workers who would
build the factories and electric stations needed for crash
industrialization. To enforce his plan, he set draconian
quotas for the confiscation of “surplus” food and violently
repressed millions of so-called kulaks (supposedly better-
off peasants), whom he wanted to exterminate as a class.
The consequent famine killed more than five million
people in Ukraine, Kazakhstan and Russia’s North Caucasus
region. Scholars continue to debate whether the famine in
Ukraine, which killed some 3.5 million, was a deliberate aim
of Stalin’s policies—intended to destroy Ukraine’s national
spirit and culture—or the unforeseen result of his war on
the peasantry. Although Mr. Kotkin argues that the famine
was “not intentional,” his book makes it clear that Stalin
was well aware of widespread starvation and that he
responded with remarkable cruelty, sealing Ukraine’s
borders to make escape impossible. The Kremlin allowed
the famine to deepen, accepting a high number of victims
rather than ameliorate its most calamitous effects.
Another crisis erupted after the assassination of the
Leningrad party chief Sergei Kirov in December 1934.
Although many historians, including Robert Conquest and
Amy Knight, have argued that Stalin almost certainly
orchestrated the crime, Mr. Kotkin accepts the current
scholarly consensus that Stalin was not behind Kirov’s
murder and that Leonid Nikolayev, a disaffected young
worker, carried it out on his own.
We may never know what degree of personal
obsession, political calculation and ideological
zeal drove Stalin to kill and persecute so many.
There is no debate, however, over how Stalin exploited
the murder. He had always insisted that the country “was
honeycombed with wreckers,” as Mr. Kotkin writes, and beset
by conspiracies to subvert Bolshevik rule. In the wake of
Kirov’s death, Stalin first accused thousands of Communist
Party figures of engaging in a conspiracy to kill Kirov and
then expanded the purge to encompass tens of thousands of
military commanders, state-security personnel and party
officials, including leaders of the revolution like Nikolai
Bukharin, Lev Kamenev and Grigory Zinoviev. Mr. Kotkin
argues that Stalin carried out the purge to “smash his inner
circle” and avenge elements within the party that had
opposed collectivization, but he doesn’t provide sufficient
documentation to buttress the claim. Stalin probably
regarded army and state-security officers as the only force
that could dislodge him.
With the purges under way, Stalin embarked on the
Great Terror, a wave of violence that killed more than
800,000 people in the space of 16 months. Among those
targeted were the members of ethnic groups—Poles,
Koreans, Germans—whom Stalin regarded as unreliable
elements, a fifth column that could threaten the regime in
case of war. As with all great crimes, we may never truly
know what degree of personal obsession, political
calculation and ideological fanaticism drove Stalin to order
the execution and imprisonment of so many.
While Mr. Kotkin discusses foreign-policy developments
throughout the book, including the establishment of
diplomatic relations with the United States in 1933 and
Soviet intervention in the Spanish Civil War in 1936, the
final chapters of “Waiting for Hitler” focus on the 1939
Non-Aggression Pact with Nazi Germany. Within days of its
signing, the Wehrmacht invaded Poland from the west, and
the Red Army soon occupied Poland from the east. It was
the pact that created a common border between Germany
and the Soviet Union, a miscalculation by Stalin that
proved to be nearly fatal to his regime.
For the next two years, while cooperating with Germany,
Stalin tried in vain to fathom Hitler’s intentions. Mr. Kotkin
provides a nearly day-by-day account of diplomatic
maneuvers involving the Soviet Union, Germany, England
and France, along with urgent intelligence reports sent to
the Kremlin beginning in August 1940 arguing that Hitler
was planning an attack on the Soviet Union. It is here that
Stalin’s paranoia proved momentously damaging. No
Moscow intelligence chief, aware that several of his prede-
cessors had been executed, would dare contradict Stalin
when he insisted that Hitler could be trusted. The reckoning
came on June 22, 1941: Stalin’s disregard of the warnings
left his country unprepared for the German attack, the point
at which Mr. Kotkin’s third volume will presumably begin.
There have been many other biographies of Stalin, but
none matches the range of information and analysis that
animates Mr. Kotkin’s ambitious project. “Waiting for
Hitler” is biography and history on a grand scale—equal in
scope to the enormity of the events it describes.
Mr. Rubenstein is the author of “The Last Days of Stalin.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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A14 | Wednesday, November 1, 2017 * * THE WALL STREET JOURNAL.

OPINION
REVIEW & OUTLOOK LETTERS TO THE EDITOR

Tax Credit Bidding War Congress Makes It Harder to Stop Pill Mills

W
hen House Republicans roll out come level at which the credit phases out, but The premise of your editorial “A Bi- distributor of drugs must be given an
their tax reform details this week, sending more money to folks who earn partisan Drug Cartel?” (Oct. 25) seems opportunity to submit a corrective ac-
to be that legitimate patients are being tion plan, and this plan must be sub-
one thing to watch is the trade-off $250,000 a year won’t survive the political
subjected to a lack of access to drugs mitted not less than 30 days after an
between tax credits and process, and the credit will they need to mitigate pain. But there is order is issued. This is then submitted
lower tax rates. The more tax The Rubio-Lee child inevitably be phased out as no reference in the bill passed by Con- to a labyrinthine bureaucratic process
credits they include, the less tax credit will sap income rises to avoid subsi- gress to any findings that any patients which would take months or years to
growth and reform they’ll be dizing the affluent. The re- anywhere have been denied access to complete while a “pill mill” operation
able to afford. growth from tax reform. sult is that a worker who medications because of a suspension continues.
The GOP tax blueprint re- picks up more hours or finds order issued by the Drug Enforcement This is what sophisticated lobbyists
leased earlier this fall called a better job must consider Administration. You only cite the Car- do. They draft language that is appar-
for an unspecified expansion of the child tax what he loses in credits. These notorious in- dinal Health case, which the U.S. attor- ently in the public interest, but in
credit, which now is $1,000 a child. But Sena- fra-marginal tax cliffs are already steep thanks ney in Florida referred to as “Florida’s practice serves only the interests of
tors Marco Rubio and Mike Lee are demanding to the earned-income tax credit. pill mill crisis,” and resulted in Cardi- their clients.
nal agreeing to a settlement of $44 ROBERT HARKEY
that the credit “be at least doubled” and apply When Congress is done the credit will also
million for that case and a similar case Atlanta
against payroll taxes. This would be bad tax be fully refundable, meaning that it will be a in New York.
policy and politics. cash transfer, like food stamps, even for those Congress added a requirement that The cited change in the Controlled
Tax credits for kids—what’s not to like? who pay no taxes. Mr. Lee often laments the there be “a substantial likelihood of an Substances Act didn’t occur until April
The answer is obvious if you step back and rise of bad cultural habits, plenty of which immediate threat that death, serious 2016, whereas opioid deaths rose from
consider the purpose of a tax code. The goal have been fueled by work disincentives in the bodily harm or abuse of a controlled 3,785 in 2000 to over 34,000 in 2015,
should be to raise the money needed to fund welfare state. substance will occur in the absence of so the change couldn’t be responsible
the government with the least amount of eco- A far more efficient way to assist lower-in- an immediate suspension of the regis- for the opioid epidemic.
nomic distortion. come taxpayers is to increase the standard de- tration.” In practice it means that the The use of ISOs by the DEA declined
The simplest system is also the fairest and duction. This doesn’t favor one kind of behav- distributor’s lawyers have a new from 65 in 2011 to eight in 2016. Opioid
the most efficient. Politicians who want to ior (having children) over another and it means to avoid the suspension. The deaths skyrocketed. It became harder
original purpose of the law was to al- for DEA agents to get ISOs and more
promote social policies can do so via spending doesn’t carry the same damaging disincentive low quick action in the broad interest people died. With cumulative opioid
or regulation, but when they lace the tax code effects on work. The GOP blueprint consoli- of public health and safety. By adding deaths since 2002 century at 287,000
with special favors they force tax rates higher dates two current standard deductions and specific requirements, the burden on and rising, the change in legislation
and reduce economic growth. To benefit from the personal exemption to create a $12,000 the DEA is much more difficult, and couldn’t have come at a worse time.
these tax favors, Americans must also behave standard deduction for individuals, with a the original purpose of the law is es- STEVEN MARTIN
in ways that politicians require—like buying $24,000 deduction for married individuals fil- sentially gutted. Richardson, Texas
a Tesla—but are not the best for the economy. ing jointly. Today, before an immediate suspen- Mr. Martin is a retired DEA supervi-
The point of reform is to return to the first Expanding the standard deduction also sion order (ISO) can be issued, the sory special agent.
tax principles of raising money with the least avoids the rigmarole of applying credits
amount of political meddling. against payroll taxes, which defies the princi-
The child tax credit is a form of income re- ple of simplicity. That families are paying too The Acid-Rain Playbook Worked Beneficially
distribution—a special favor for some taxpay- much for entitlement programs or in payroll Rupert Darwall has a valid point matter and water from 10 to more
ers that costs the Treasury a bundle in fore- taxes is an argument for reforming Medicare about the political difficulties in as- than a 1,000 times more acidic with
gone revenue. In 2012 the credit cost more or cutting taxes—not creating a new tax com- sessing or attenuating the effects of negative consequences for living sys-
than $56 billion, according to the Joint Com- plication that will join the mortgage-interest changes in world-wide climate (“Cli- tems. The effects of these byproducts
mittee on Taxation. The $2,500 credit Messrs. deduction as politically untouchable. mate Alarmists Use the Acid-Rain of fossil-fuel use in power generation
Rubio and Lee have favored would cost more Republicans should note that Democrats Playbook,” op-ed, Oct. 26). However, were extremely well documented and
than $170 billion annually, according to the are already lining up to outbid the GOP on the he attempts to demean the real severe throughout Europe and North
Tax Foundation, with no revenue feedback size of child credits. Senators Michael Bennet problems of acidification of the envi- America. Any “hysteria” was likely a
from higher growth. and Sherrod Brown want to triple the credit ronment that resulted from the un- result of media representations, not
That’s more than $1.5 trillion over a de- to $3,000 for children ages 6-18 and make it regulated burning of “dirty” fossil the workings of science. Nature is
fuel and the successes of reasoned deaf and blind to human logic and
cade—roughly the equivalent of a 15-point re- $3,600 for five and younger. They see this is
regulations. consensus.
duction in the corporate tax rate. The money a way to redistribute income and soak up all It is uncontestable that the burn- The 2011 National Acid Precipita-
would be better deployed in financing lower the revenue room in the budget so tax rates ing (oxidation) of organic matter with tion Assessment Program Report to
tax rates on capital and labor, which spur in- have to stay higher. The Rubio-Lee Republi- relatively high amounts of sulfur and Congress clearly states that reason-
vestment and risk-taking. Evidence shows that cans are playing into their hands. nitrogen produce heat, SOx and NOx able regulations have been successful
gains from a corporate rate cut flow to work- No one doubts that raising children is ex- along with COx and water among in reducing emissions of SO2 and NOx
ers in higher wages. The redistributionist pensive, but the best way to help parents is other more minor compounds. The from power generation. As a result of
right is pitting “corporations” against parents, with the prosperity that creates opportunity acidic oxides of sulfur, nitrogen and these reductions, air quality has im-
but how do they think people with children and lifts incomes. If Republicans can’t spur carbon all produce more acidic water proved, providing significant human
earn income? faster growth, a $2,500 check to some families when dissolved. SOx and NOx are far health benefits, and acid deposition
more acidic than carbon dioxide. In has decreased to the extent that
The child credit also discourages work. The won’t convince voters to send the GOP back
fact, as he states, natural water is some acid-sensitive areas are begin-
GOP’s framework suggests increasing the in- to Washington in 2018. slightly acidic due to carbon dioxide, ning to show signs of recovery.
but the effects of SOx and NOx can JAMES S. FALCONE JR., PH.D.

The Terror in Tribeca and have made rain, snow, particulate Deerfield Beach, Fla.

T
error came back to New York City Tues- with people, is vulnerable, and New York City
day. After killing at least eight people especially so. Tourists come to the city by the
and injuring nearly a score with a millions in no small part because virtually every
Banning Surgery for the Obese and Smokers
truck, a man jumped out yell- corner of the city teems with Laura Donnelly writes in London’s gery and our concern is we will only
ing, as always, “Allahu Akbar The truck as murder life at all hours. Its endlessly Oct. 17 Daily Telegraph (“Notable & see the situation worsen as the im-
Quotable,” Oct. 23) about Britain’s pact of NHS England’s decision to de-
(God is great).” weapon comes distinct neighborhoods are its
National Health Service’s proposal to prioritize the 18-week waiting time
What this attack had in own best show. Tribeca, where “ban patients from surgery indefi- target takes hold.” The U.K.’s Office
common with similar truck to New York City. this attack happened, is one of nitely unless they lose weight or quit for Budget Responsibility reports that
murders in Europe is that it them. smoking.” Studies in the U.S. have the planned NHS funding falls far
happened in a place normally Most New Yorkers regard shown surgery in the morbidly obese short of what will be needed.
filled with everyday life. Almost a mile north it as a small miracle that terrorism’s success in and smoker groups have worse out- It appears that the NHS is having
of the World Trade Center, the bike path is usu- the city has been minimal. Of course, it’s not a comes. On the administrative (fund- major problems and trying to fix
ally filled with walkers, cyclists, joggers and miracle. Protecting the city’s sprawling tab- ing) side, instituting such a plan them with Band-Aids. I’m sure we will
skateboarders. leaux falls to the New York City Police Depart- would decrease total patients in sur- find out soon if this plan to delay sur-
Suddenly it was strewn with broken bodies, ment, and it must be noted that its record in the gical queue, improving statistics. gery for smokers and the obese leads
as this year in Las Ramblas in Barcelona, Lon- years following 9/11 has been stellar. However, this is only one of the NHS’s to a smaller queue for surgery. It
problems. won’t fix funding, understaffing and
don Bridge and Stockholm, and in 2016 on Bas- The NYPD’s anti-terrorism unit is a model
In the June 10 Telegraph she said: delays in other areas of care.
tille Day in Nice and at a Berlin Christmas mar- of relentless vigilance and cooperation with se- “The statistics show that 3.78 million MICHAEL P. CARTER, M.D.
ket. History will remember Islamic State and its curity agencies in the U.S. and in Europe. Vigi- patients are now waiting for NHS Savannah, Ga.
offshoots and long-distance recruits mainly for lance and cooperation are the two indispens- treatment—a rise of more than 50%
their homicidal cowardice. able tools in ensuring that the terrorist’s world since 2012.” Ms. Donnelly cited the Who will be deemed culpable if the
Any large city, its streets and sidewalks filled remains abnormal. president of the Royal College of Sur- patient who is obese or a smoker ex-
geons who said, “Too many patients pires during the waiting interim?
are waiting excessively long for sur- DEE TEZELLI
The Press Loves Fusion GPS Seattle

O
ne reason so few Americans trust the tigators and even fought a subpoena. Stocks Displace the Cards
Washington press corps is its pattern One of the dirty little secrets in Washington
Why Did the Talc Suit Get
Bob Greene’s “When Ballpark Fan
of groupthink that denigrates anyone is that Fusion is a longtime source for journal- Favorites Strike Out” (op-ed, Oct. 24)
So Far in the First Place?
who breaks from the conven- ists, planting political hits reassures me that, at 72 years old, I Regarding your editorial “A Tal-
tional wisdom. A classic case Politico fails to disclose that Fusion is paid by third am not the only one who has bought cum Powder Tort Blowout” (Oct.
is the criticism heaped upon that one of our critics parties to dig up. Now the baseball cards after all these years. I 27): I am heartened by the reversal
these columns after we raised press corps is defending its was hoping for an Aaron Judge card of the insane $417 million jury ver-
questions last week about has worked for Fusion. meal ticket, often without re- to leave to my heirs but, alas, it dict against, of all things, baby pow-
special counsel Robert Muel- porting honestly about Fusion wasn’t to be. I’ll just have to continue der. But since the lawsuit was based
ler’s ability to fairly investi- and how it works. relying on the stock market for entirely on bogus legal theories and
gate the FBI’s handling of the Christopher One example is the story by someone growth potential. junk science, why didn’t the original
RAY HACKINSON trial judge throw it out before trial,
Steele dossier. named Jason Schwartz in Politico on Monday
Ozone Park, N.Y. on summary judgment, instead of
The Beltway boys have lined up in unison to that attacked us for our Mueller editorial. This wasting taxpayer resources on an
register their outrage that anyone would dare media enforcer quoted Neil King, identifying
question Mr. Mueller or Fusion GPS, the oppo him as a former WSJ editor who slammed our CORRECTIONS unnecessary trial?
MARK PULLIAM
research shop that hired Mr. Steele to dig up work and said “I don’t know a single WSJ Austin, Texas
dirt on Donald Trump in 2016. This is the same alum who’s not agog at where that edit page The student population of the San
herd of independent minds who treated former is heading.” Perhaps Mr. King is agog because Antonio Independent School District
FBI Director James Comey as St. Jim while he Axios reported in January that he had joined is 91% Hispanic and 6% African-Amer- Pepper ...
prosecuted people they didn’t like. . . . Fusion GPS. ican, and more than 90% are eligible
for free or reduced-price lunches.
And Salt
We warned when Barack Obama nominated So Politico quotes an employee of Fusion to
him that Mr. Comey had a history of self-serv- attack The Wall Street Journal for criticizing These figures were misstated in the THE WALL STREET JOURNAL
Oct. 28 Cross Country column, “Char-
ing prosecutorial decisions. Only after his polit- Fusion. Even better, Mr. Schwartz didn’t tell his
ter and Traditional Schools Find a
ical interventions damaged Hillary Clinton did readers that Mr. King has worked for Fusion. Common Purpose in Texas.”
the idolators open their eyes to Mr. Comey’s Mr. Schwartz also failed to point out that Mr. i i i
methods. Now the same crowd wants to nomi- King’s wife, Shailagh Murray, also a former An Oct. 23 cultural commentary on
nate Mr. Mueller for secular sainthood, but Journal reporter, worked in the Obama White Dizzy Gillespie, “Dizzy Gillespie: Seri-
count us out of the protectorate. Mr. Mueller House. Perhaps Mr. Schwartz understands that ous and Showy,” included an image of
deserves as much scrutiny as anyone else in the this kind of political incestuousness is so rou- one of his trumpets belonging to the
governing class—especially given the amount tine in Washington that even to mention it Smithsonian, but it was not the same
of unchecked power he wields. would get him drummed out of the club. instrument mentioned in the article.
Our other sin against media decorum has The Trump Presidency has been disorienting
been asking questions about the role played by for many people, as their antipathy causes them Letters intended for publication should
Fusion GPS in the 2016 campaign. We learned to lose sight of basic principles and standards. be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
last week that Democrats financed Fusion, which This includes many in the press corps. If report- or emailed to wsj.ltrs@wsj.com. Please
then paid Mr. Steele to come up with his dossier ers want to know why Donald Trump finds too include your city and state. All letters
that included dubious information about Trump- many willing believers for his false anti-media are subject to editing, and unpublished “It’s that Silicon Valley foundation –
Russia ties. Fusion tried to keep the names of tirades, they might consider the dishonest re- letters can be neither acknowledged nor they want to know if we’ll match our
returned.
its paymasters secret from Congressional inves- porting of the kind practiced here by Politico. grandson’s $100 million donation.”
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.
It’s Time to Bust the Online Trusts
By Luther Lowe
T
his week some of Amer-
ica’s most beloved internet
companies will follow the
footsteps of Big Tobacco
and Wall Street in a
dreaded rite of passage: the Capitol
Hill perp walk. The top lawyers for
Google, Facebook and Twitter will try
their best to explain to the Senate In-
telligence Committee how misinfor-
mation spread through their plat-
forms in the months leading up to the
2016 election.
They are also likely to argue that
the best response to their platforms’
negligence is not government regula-
tion. If Google and Facebook are
lucky, the result will be the passage
of the bipartisan Honest Ads Act,
Anticompetitive practices
by Google and Facebook
made foreign election
interference possible.
which would merely require buyers of
online political advertisements to re-
veal their identities. This is a neces-
sary move to increase transparency,
but it is not sufficient to protect the
electorate from manipulation.
Focusing on the narrow question
of online advertising will only dis-
tract lawmakers from the true prob-
lem: In the absence of rigorous anti-
trust enforcement, the consumer
internet has become too concentrated
in a few dominant companies, creat-
ing easy targets for bad actors.
There is a reason Congress did not
have to investigate foreign meddling
after the 2008 or 2012 elections.
Resist the Temptation to Politicize Sex Scandals
Back in 1999, I went
to see the Kevin
Spacey film “Ameri-
can Beauty” twice,
but I only saw it
once.
On the first at-
UPWARD
tempt, I made it to
MOBILITY
By Jason L.
my seat just in time
for the coming at-
Riley
tractions, only to
notice a large gray
rat scurrying up a carpeted wall a
few feet away from my head. I
tapped my date on the shoulder, and
we made our way to the lobby,
where I told a manager what I’d
seen. She listened without expres-
sion, apologized and gave us a re-
fund. Clearly, we weren’t the first
people to inform her that the theater
had an infestation problem.
On Monday Mr. Spacey became
the latest Hollywood figure in re-
cent weeks to be accused of sexual
assault, and by this point the public
is probably as shocked as that the-
ater manager. Even Mr. Spacey’s if-
I-did-it-I-was-drunk defense had a
familiar ring. Mel Gibson blamed
his anti-Semitic rants on alcohol. If
Mr. Spacey is to be believed, too
The Deception Behind Those In-Network Health ‘Discounts’
By Keith Lemer
H
ere’s a strange paradox:
Health-care costs have in-
creased by an unsustainable
rate of about 8.5% each year over the
past decade, according to PwC’s
Health Research Institute. Already,
the average employer-based family
health insurance plans costs more
than $18,000 annually.
But Medicare spending has been
relatively stable. Over the past three
years, the program’s payouts to hospi-
tals have increased by only 1% to 3% a
year, roughly even with inflation. The
prices paid for some core services,
such as ambulance transportation,
have actually gone down.
To see what’s happening, we can
start by pulling back the curtain on
how preferred provider organizations
do business. A PPO is a network of
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
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Editor in Chief
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Back then the internet was still a di-
verse, decentralized network. Anyone
could create a website or blog to sat-
isfy the demand for popular or niche
content. This older form of online
community building has largely been
supplanted by tools provided by the
dominant players. Facebook Groups
allows people to create communities
without requiring much technical
skill. It does, however, require a Face-
book account, meaning participants
have no choice but to share their
identity and their data. Today, many
internet services are inaccessible un-
less you have joined Facebook’s “com-
munity” of two billion users.
Google used to be the engine that
drove the open web. In a 2004 inter-
view, co-founder Larry Page de-
nounced powerful intermediaries on
the internet, saying that “we want
you to come to Google and quickly
find what you want. Then we’re
happy to send you to the other sites.
In fact, that’s the point. The portal
strategy tries to own all of the
information.”
Over time, Google’s philosophy
shifted in the opposite direction, mak-
ing the internet less open and plural-
istic than even a few years ago. Now
people are nudged to stay on
Google.com. The company has com-
mitted to presenting a single “an-
swer” to every inquiry, even ones that
are subjective opinions based on
sparse Google-owned content, like
“best pediatrician NYC.” The result
has been a decline of traffic to swaths
of the web.
Facebook’s walled garden is even
more stringent, requiring all third-
party content accessed from its app
to run through its frame. As web ac-
tivity is drawn within the confines of
these two tech giants, so is the reve-
nue that follows.
much liquor also makes grown men
throw themselves on top of 14-year-
old boys. Some claim the sex scan-
dals that have bedeviled the Catho-
lic Church stem from sexual
repression among the clergy, so
what explains similar shenanigans
in libertine Tinseltown?
It’s been speculated that “Subur-
bicon,” a new film directed by
George Clooney and starring Matt
Damon, tanked at the box office over
the weekend because moviegoers
wanted to punish the two men for
perhaps knowing more about Harvey
Weinstein’s lecherous behavior than
they’ve let on. Maybe so, but it’s
hard to believe that a nation that
put Donald Trump, warts and all, in
the White House would use guilt by
association to punish two of Holly-
wood’s biggest stars. Besides, the
movie opened to mediocre reviews—
The Journal’s Joe Morgenstern
called it “not only unfunny, a bad
sign for a black comedy, but deep-
dyed dislikable.” Maybe the critics
were right.
Because our national conversa-
tions have become so hyper-politi-
cized, there’s a temptation to view
these recent sex scandals through a
preferred health-care providers such
as doctors and hospitals, typically as-
sembled by an insurance carrier. In
theory, the insurer can save money
for its customers by persuading pro-
viders in the network to discount
their services in exchange for driving
volume to their facilities.
UnitedHealthcare Choice Plus, for
instance, boasts that its PPO—a net-
work of more than 780,000 profes-
sionals—cuts the cost of typical doc-
tor visits by 52%, while saving 69% on
MRIs. Pull back the curtain, and you’ll
see these discounts are an accounting
trick. To allow PPOs to advertise big
discounts, providers simply inflate
their billed charges on a whole range
of services and treatments.
Don’t insurers have a natural in-
centive to keep provider prices
down, even if they don’t end up pay-
ing the list price?
Robert Thomson
Chief Executive Officer, News Corp
William Lewis
Chief Executive Officer and Publisher
DOW JONES MANAGEMENT:
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OPERATING EXECUTIVES:
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Jonathan Wright, International
DJ Media Group:
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Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
OPINION
Of every new dollar spent in online
advertising last year, Google and
Facebook captured 99 cents. Yet nei-
ther company has ever faced serious
antitrust scrutiny in the U.S. A fleet-
ing opportunity to foster competition
came in 2011, when the Federal Trade
Commission opened an investigation
into Google’s conduct. But the FTC
closed the case in 2013 without tak-
ing meaningful action.
Regulators ostensibly decided to
settle after being persuaded the mar-
ketplace was adequately competitive,
but the assumptions baked into their
conclusion have not aged well. When
the investigation was begun in 2011,
smartphones were a nascent product
and Google’s market share of internet
search was 66%. Today, most search
traffic has migrated to smartphones—
nearly 4 in 5 Americans own one—
where Google has 97% market share.
The economics have also changed
for internet startups hoping to rein-
vent the web. Early-stage capital has
partisan lens, whether they involve
entertainers like Mr. Spacey or me-
dia figures like Bill O’Reilly. And
many of us, including the accused,
have given in to temptation. Mr.
Weinstein initially attempted to turn
The left’s excuses for
Bill Clinton’s predatory
behavior greased the
skids for Donald Trump.
an apology to his victims into a con-
demnation of Mr. Trump, even
though the past 30 years of the
movie mogul’s life appear to have
been one long lived-out Trump “Ac-
cess Hollywood” tape.
But as more victims feel comfort-
able coming forward, the accusa-
tions are tainting individuals of ev-
ery political stripe: progressive
magazine publishers, liberal literary
critics, left-wing political journalists,
as well as conservative cable news
personalities. Political preferences
don’t seem to correlate very neatly
with personal behavior.
In fact, no—at least not since the
Affordable Care Act took effect. That
law established a “medical loss ra-
tio,” which requires insurers cover-
ing individuals and small businesses
to spend at least 80 cents of every
premium dollar on medical expenses.
Only 20 cents can go toward admin-
istrative costs and profit. (For insur-
ers offering large group plans, the
MLR rises to 85%.)
If a provider raises the cost of a
blood test or medical procedure, in-
surers can charge higher premiums,
while also boosting the value of their
20% share. Insurers can make more
money only if they lower their ad-
ministrative expenses or charge
higher premiums.
In this way, the MLR rule encour-
ages insurers to ignore providers’ ar-
tificial price hikes. Insurers can con-
tinue to attract customers with the
promise of steep discounts through
their PPO plans—and providers can
continue to ratchet up their prices.
By hoodwinking their customers,
both insurers and providers make
Notable & Quotable: Church
Mark Tooley writing about George
Washington’s church in Alexandria,
Va., which is removing a plaque hon-
oring Washington:
This kind of church invariably at-
tracts a demographic that is nearly all
middle and upper class, educated, so-
cially liberal urban white people.
Churches that stress their welcome-
welcome-welcome message of inclu-
sion over a firm orthodox theological
message typically are, whether realiz-
ing it or not, actually welcoming some
and discouraging others. In my visits
to Christ Church I have noticed the
Wednesday, November 1, 2017 | A15
CHAD CROWE
dried up, dropping more than 40%
since 2015, as investors have become
pessimistic that any new Googles
and Facebooks will ever be capable
of disrupting the deeply entrenched
incumbents.
The internet has turned into a pair
of walled gardens, offering econo-
mies of scale for attackers. Ad dollars
from Google products like YouTube
and AdSense provide economic in-
centives to “content farms” that ped-
dle misleading or outright false news.
Russia Today, Moscow’s official Eng-
lish-language television network, is a
“premium partner” on YouTube, enti-
tling it to higher shares of revenue
from advertisements sold by Google.
A quick estimate—multiplying stan-
dard rates of revenue-sharing by RT’s
view counts—suggests Google could
be sending the Russians seven-figure
annual payouts. Facebook has already
identified at least $100,000 spent by
Russians on its platform to influence
voters. Paid ads have the ability to
How did we get to this point? Ann
Althouse, the University of Wiscon-
sin Law School professor emerita
and prolific blogger, has offered an
explanation as plausible as any, and
she contends that it has a lot to do
with political expediency. “My hy-
pothesis is that liberals—including
nearly everyone in the entertainment
business—suppressed concern about
sexual harassment to help Bill Clin-
ton,” she wrote in an October blog
post. “Giving him cover gave cover
to other powerful men, and the cause
of women’s equality in the workplace
was set back 20 years.” She added:
“Are these allegations coming out
now because Hillary Clinton lost the
election and the time for covering
for Bill Clinton is over at long last?”
Good question.
If Ms. Althouse is right, Mr. Clin-
ton’s predatory behavior—and the
left’s response to it—didn’t just
make Mr. Weinstein’s antics more
acceptable than they otherwise
might have been. The former presi-
dent also greased the skids for
someone like Donald Trump. Post-
Clinton, a presidential candidate’s
character became much more of a
secondary consideration for voters.
more money. Since insurance costs
are merely a derivative of health-care
costs, the result has been a steady
rise in insurance costs for millions of
working families.
ObamaCare’s medical loss
ratio creates incentives
for insurers and providers
to hoodwink customers.
For employers caught in this price
spiral, there is a way out: partial or
full self-insurance. When businesses
self-insure, they pay employee health
claims directly. That creates an in-
centive for businesses to question—
and push back on—providers’ price
increases. Self-insuring businesses
can strengthen their leverage by us-
ing “reference-based pricing,” which
caps payments for “shoppable”—non-
emergency—services at the average
price in a local market. Members who
well-dressed congregation is not very
diverse. Removing the Washington
and [Robert E.] Lee plaques will not
likely expand its demographic.
On Christmas Eve I almost always
arrive early at Christ Church and sit
in the Washington family box. FDR
and Churchill with Eleanor sat there
on New Years’ Day 1942 and heard
the sermon regret America’s sinful
isolationism before Pearl Harbor
while praying for victory against
Nazi and Japanese militarist aggres-
sion. Churchill wept as the congrega-
tion sang The Battle Hymn of the
Republic.
amplify the virality of the fake con-
tent. This suggests a feedback loop
optimized for mischief: monetize on
Google, and spend the proceeds to
propagandize on Facebook.
Policy makers can solve this prob-
lem by compelling large information
firms to embrace interoperability. In-
stead of trying to own everything,
Google could power its local searches
with services like TripAdvisor, Zoc-
Doc and Yelp. This would dilute
Google’s position as an advertising
monopoly and help smaller players to
compete. Facebook could allow users
to export their full social graph,
which would allow them to bargain
for better terms from new social
startups. Such efforts would diffuse
information once again across the
web, ensuring that future attempts at
malfeasance cannot scale.
For the most egregious examples of
anticompetitive conduct by a domi-
nant internet firm, antitrust enforcers
should fight to spin off newer business
lines that leverage the legacy platform.
If regulators find that Facebook is us-
ing its social data to foreclose compet-
ing messaging apps, they should con-
sider structurally separating the
company’s social and messaging func-
tions. Instead of steering users to its
house products, Google should rely on
its merit-based algorithms to power
services like local search.
Requiring transparency for politi-
cal advertising online is a good step,
but it isn’t enough. Until the struc-
tural problems in the technology
markets are addressed, American
voters will continue to consume in-
formation from a pair of barrels—
Google and Facebook—in which we
are much easier to shoot.
Mr. Lowe is vice president of pub-
lic policy at Yelp.
This is one reason so many were
willing to look past Mr. Trump’s
misbehavior on the campaign trail
and are still willing to give him a
pass today.
A Gallup poll released Monday
put Mr. Trump’s approval rating at
just 33%, and a Wall Street Journal/
NBC News survey from last week put
his approval rating at 38%. In both
polls, those are all-time lows for the
president. Yet more than 8 in 10 GOP
voters continue to approve of Mr.
Trump’s job performance, which is
why his Republican detractors in
Congress, such as Sens. Jeff Flake
and Bob Corker, are so few and far
between. Their critiques of the pres-
ident are apt, but they’re not what
the GOP faithful want to hear.
Continuing fallout from Special
Counsel Robert Mueller’s Russia
probe obviously could change the
president’s fortunes for the worse,
while successful tax-reform legisla-
tion might change them for the bet-
ter. But right now, Republican voters
are standing by their deeply flawed
president. And to anyone who wants
to harp on those flaws, they have a
ready response: Compared with
whom?
use providers with prices below the
limit receive full coverage. If they use
a provider that charges more than
the limit, they pay the difference out-
of-pocket.
This setup creates a strong in-
centive to control costs: Patients
have a reason to shop around for
the best value, while providers are
pressured to keep their prices below
the cap. The most expensive doctor
is not always the doctor with the
best outcomes.
That’s what happened when the
California Public Employees’ Retire-
ment System adopted a reference-
pricing approach a few years ago.
The agency had noticed that provider
charges for hip and knee replace-
ments varied from $15,000 to
$110,000. In 2010, Calpers established
a reference price of $30,000 for the
procedures. Predictably, patients
flocked to providers charging that
price or less and shunned higher-cost
facilities. Over the next couple of
years, the number of California hos-
pitals charging below $30,000 for a
hip replacement jumped by more
than 50%. In the first year Calpers
saved an estimated $2.8 million on
joint replacements.
What worked for Calpers can
work just as effectively for small and
midsize businesses. Today’s medical
inflation is exactly what one would
expect from health policies that re-
ward insurers and providers for rais-
ing prices. Employers shouldn’t ac-
cept this status quo. By self-insuring
and setting their own reference-
based reimbursement, businesses
can sidestep the traditional insur-
ance model that continues to bleed
them dry.
Mr. Lemer is CEO of The WellNet
Healthcare Plan, a health-care ser-
vices company.
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 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL.

WORLD NEWS

Beijing’s New Mao Is a Party of One China’s

Economy
Appears
To Slow
Chinese economic activity
CHINA’S WORLD showed evidence of softness in
By Andrew Browne October, cooling from a more
than five-year high reported
ahead of the Communist Party
SHANGHAI—Communist congress.
systems show no mercy to The official manufacturing
political losers. purchasing managers index, a
Liu Shaoqi, one of Mao’s gauge of China’s factory activ-
designated successors, died on ity, fell to 51.6 in October from
a prison floor in his own filth. 52.4 in September, data
Another, Lin Biao, perished in showed Tuesday. The reading
a plane crash fleeing China. was below the median forecast
Power transfers are how of 51.8 by economists polled
one-party systems threaten by The Wall Street Journal.
to come un- Tuesday’s data, an early
stuck. High- peek at the economy’s perfor-
level battles mance in October, came as in-
ANDY WONG/ASSOCIATED PRESS

roiled Deng terest rates in the bond mar-

Xiaoping’s ket rose across the board this
reign, too. week, adding pressure on
The urbane companies already struggling
Zhao Ziyang, ousted as Com- to service their debt.
munist Party chief for en- Chinese stocks remained
couraging pro-democracy lower after a significant de-
protesters in Tiananmen cline Monday, with shares hit
Square in 1989, spent the Pedestrians walked by a poster of President Xi Jinping on a street in Beijing last week, during the Communist Party congress. by liquidity concerns. Follow-
rest of his days under virtual ing Tuesday’s data, China’s
house arrest in Beijing. Xi proposes to build China array in the U.S. and Europe. nomic model. Its accomplish- sively in artificial intelligence bond market saw a rebound in
Eventually, Deng hit on an into a modern socialist coun- Some China watchers spec- ments are impressive. and quantum computing. prices, which move inversely
alternative to winner-take-all try by 2035 and a super- ulate that Mr. Xi may feel a Yet the true test is to to yields, reflecting the mar-

T
contests: collective leader- power on a par with the U.S. successor at his shoulder will come. Apart from a handful his could be one way ket’s expectations that softer
ship, along with term limits. by midcentury, the centenary slow him in a historic oppor- of oil-rich emirates, not a its new Mao hopes to economic growth could lead to
The party got a new lease on of the People’s Republic. tunity to return China to its single country has broken overcome what he an easing in monetary policy.
life. Deng’s signal innovation central place in the world. Of out of the so-called middle- calls his country’s principal Ahead of the party congress

O
allowed China to focus its ne-man rule has been
energies on getting rich. a recipe for instability
By abandoning the first since Stalin’s day. Yet
part of Deng’s formula, and in a measure of the self-
calling into question the sec- doubt that grips Western de-
ond, Xi Jinping has pitched mocracies today, a congress
Chinese elite politics into a most notable for wrenching
potentially precarious un- the country backward has
known. been interpreted in some
For the first time in several corners as a triumphal com-
decades, the succession ques- ing-of-age for the party, even
tion is up in the air; the just- a warning of the West’s im-
concluded 19th Party Congress pending eclipse.
failed to appoint a next-in-line “China is marching toward
to Mr. Xi. its perception of its global
Will he stay on as leader- destiny,” writes Kevin Rudd,
for-life? Nobody can say, al- the former Australian prime
though now that his minister. “It has a strategy.
“thought” is embedded in the The West has none.”
party charter alongside Mao’s China’s confidence has
he is politically untouchable. been building in tandem
On this fragile basis, Mr. with deepening political dis-
course, he can anoint one at
One-man rule has
been a recipe for
instability since
Stalin’s day.
any time; the Politburo is
packed with his supporters.
So far, Mr. Xi hasn’t trum-
peted this retro-Maoist polit-
ical setup as something for
others to follow. In his
speech to the congress,
though, he did suggest that
developing countries would
be wise to adopt China’s eco-
income trap and achieved
rich-nation status without
adopting some form of politi-
cal pluralism.
South Korea and Taiwan
are two examples of econo-
mies that took off at a simi-
lar trajectory to China’s un-
der strongman rule, but
made the final ascent to
prosperity as democracies.
Mr. Xi’s big bet is that he
can personally lead the break-
through without strong insti-
tutions, checks and balances
and, crucially, without orderly
and predictable arrangements
to hand over power.
Perhaps Mr. Xi is setting
store in technology to sup-
plant collective wisdom at the
top. China is investing mas-
“contradiction”: After years
of breakneck growth, the de-
sire for a better life collides
with the realities of wide in-
come gaps, an inadequate so-
cial safety net and environ-
mental ruin.
Mr. Xi has neither Deng’s
revolutionary credentials nor
Mao’s charisma. He is pow-
erful but not yet loved.
Meanwhile, the burden of
delivering national rejuvena-
tion now rests upon Mr. Xi’s
shoulders. That reality threat-
ens to make his rule a brittle
one. And Deng would be dis-
mayed: Whether Mr. Xi hands
over the reins or dies in office,
like Mao, the prospect of a
chaotic battle for supreme
leadership looms again.
concluded last week, economic
activity had risen, boosted by
external demand and stimulus
measures. Higher commodity
prices also supported business
sentiment; in October, that op-
timism faded somewhat.
Officials attributed the slow-
down to the Golden Week holi-
day, which disrupted produc-
tion and curbed orders, but
economists say rising borrow-
ing costs and waning effects of
government support for eco-
nomic growth may have
started to weigh on businesses.
“September’s spike was a real
surprise and [October’s] pull-
back seems to be more like a
normal reading,” said Tommy
Xie, an economist at OCBC.
—Liyan Qi

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2575.26 À 0.09% S&P FIN g 0.28%
Tech Giants Under Fire in Senate
Twitter, Facebook,
Google officials
pressed on accounts
linked to Russia
BY BYRON TAU
AND DEEPA SEETHARAMAN
WASHINGTON—Senators
pressed representatives from
three technology giants to ex-
plain why they didn’t recog-
nize Russia-linked accounts
earlier, as the officials struck
a contrite tone about the role
their services played in stok-
ing political tensions during
the 2016 campaign
Facebook Inc., Alphabet
Inc.’s Google and Twitter Inc.
were summoned in front of a
subcommittee of the Senate
Judiciary Committee on Tues-
day, where officials told mem-
bers of Congress that they
Dow
Surpasses
S&P,
Nasdaq
BY AKANE OTANI
The Dow Jones Industrial
Average raced past its peers in
October, as a pickup in eco-
nomic growth around the
world boosted shares of blue-
chip companies that sell every-
thing from bulldozers to air-
planes.
The Dow industrials rose
4.3% in October, while the S&P
500 gained 2.2% and the Nas-
daq Composite added 3.6%. The
Dow outperformed the S&P
500 by the largest margin in
any month since November
2008.
The reason for the diver-
gence, analysts and investors
say, is that the 121-year-old
Dow industrials are packed
with large multinational com-
panies reaping benefits as the
world’s major economies grow
in sync for the first time in a
decade. The economic up-
swing, combined with a
weaker U.S. dollar and re-
bounding commodities prices,
have helped Dow components
post quarterly profits that
have so far outshone results in
the broader S&P 500 index of
large U.S. companies.
As of Tuesday’s close, with
more than two-thirds of the
Dow industrials’ components
having reported results for the
latest quarter, the index was
on track to post earnings
growth of 6.3% from the year-
earlier period, according to
FactSet, which combines ac-
tual earnings with analysts’ es-
timates for those yet to report.
The S&P 500’s expected
earnings-growth rate is 4.7%,
according to FactSet. If the
Dow holds its lead, it would
mark the third straight quarter
that it reported higher earn-
ings growth than the S&P 500.
“With the upturn in the
global economy, the upturn in
growth—that’s all been help-
ing fuel a stealth rally in in-
dustrials that people may not
have appreciated,” said Matt
Watson, portfolio manager at
James Investment Research,
which has $6 billion in assets
under management.
Because the Dow industri-
als are price-weighted and
count just 30 components—
compared with the S&P 500,
which has 500 companies
that are weighted by market
capitalization—individual
stocks can exert outsize influ-
ence on the Dow industrials’
overall performance. For in-
stance, Boeing Co., which is
the priciest stock in the blue-
chip index at $258 a share,
accounts for most of the in-
dex’s gain this year. The S&P
500 is dominated by tech
companies such as Apple,
which has a market value of
more than $800 billion.
Indeed, this year’s stock-
market gains have been broad.
A streak of strong earnings re-
ports from technology compa-
Please see DOW page B16
TECHNOLOGY: GOOGLE’S WAYMO EDGES NEARER TO DRIVERLESS MINIVANS B4
* * * **
S&P IT À 0.39%
were actively developing bet-
ter policies for how to curb
foreign activity on their plat-
forms and ensure that foreign
governments, terrorists and
criminals aren’t able to abuse
social media for nefarious
purposes.
The officials also faced
questions about voter-sup-
pression efforts and whether
Silicon Valley can or should
police speech.
The tech companies empha-
sized that only a fraction of
the total political content that
appeared on their platforms
had any links to foreign gov-
ernments, particularly Russia,
which the U.S. intelligence
community determined in Jan-
uary ran a campaign of hack-
ing and disinformation aimed
at influencing the 2016 presi-
dential election. They prom-
ised to take more responsibil-
ity for policing political
As Tesla cranks up production of the Model 3 sedan, it faces mounting signs of labor unrest. Its Fremont, Calif., plant in early 2015.
Under Pressure
Tesla shares are doing well despite mounting losses and pressure to meet production goals.
Share price
$400
350
300
250
200
150
2016 ’17
*Includes the Model S, Model X and Model 3 †Consensus estimates
Tesla Hits Labor Discord on Model 3
BY TIM HIGGINS
In early 2016, a crisis un-
folded at Tesla Inc.’s electric-
car factory. The company’s new
Model X sport-utility vehicles
were stacking up in the repair
yard with misaligned parts.
Tesla took the unusual step
of placing more than a dozen
INSIDE
TARIFFS FOR
SOLAR PANELS
ON HORIZON
TRADE, B3
CHINA’S MOVES
RIPPLE ACROSS
THE GLOBE
PROPERTY REPORT, B8
THE WALL STREET JOURNAL.
DJ TRANS g 0.45% WSJ $ IDX À 0.10%
Colin Stretch says Facebook missed signals on the Russian ads.
content on their platforms in
the future.
But the tech giants also dis-
closed that millions of users
saw either paid or free elec-
tion-related content during
and after last year’s election
Quarterly profit/loss
$50 million
0 officer, the company said
–50
–100
–150
–200
–250
–300
–350
2014 ’15
Sources: S&P Capital IQ (profit/loss); FactSet (shares; deliveries)
workers at the end of the as-
sembly line to whack doors
and side panels into shape
with rubber hammers, accord-
ing to people familiar with the
matter. The company suffered
months of delays as it learned
to build the Model X, leading
to long hours and injuries as
factory workers rushed to
iPhone X’s FaceID Looks Hard to Fool
BY JOANNA STERN
I have very
few com-
plaints about
the iPhone X’s
facial-scan-
ning technol-
ogy—other than it failed to
alert me to the piece of let-
tuce I had stuck in my teeth
for nearly half a day.
It recognizes me in the
dark, and also when I put on
my sunglasses and take off
my makeup. Although it does
struggle to recognize me
with my Groucho mustache
and eyebrows on. (It’s a joke,
Apple!)
As you’ve likely heard, Ap-
ple’s new iPhone X no longer
has a home button with a
TouchID fingerprint sensor.
Instead now there’s FaceID, a
complex system of cameras
and sensors that turns your
face into the password.
It’s the biggest difference
between the much-hyped
iPhone X and the many for-
gettable iPhones of the past
LIBOR 3M 1.381
across the platforms. Mem-
bers of Congress peppered
tech executives, especially
Facebook General Counsel Co-
lin Stretch, with questions
about their policies toward
hate speech and terrorism, ad-
’16
meet lofty goals, say people
familiar with the effort.
Chief Executive Elon Musk
has said Tesla fixed the quality
and design problems and im-
proved safety at the Fremont,
Calif., factory. But as Tesla
cranks up production on the
Model 3 sedan, it is having to
wrestle with mounting signs
Joanna Stern tried to trick the iPhone X’s facial-recognition system with a silicone mask of herself.
few years.
That’s why I decided to
spend my first 24 hours with
the X testing only the new
facial-recognition features.
Apple gave most review-
ers the devices only on
Monday. A full review of the
phone, with extensive bat-
tery and camera testing, is
coming soon.
You’d be surprised how
Wednesday, November 1, 2017 | B1
NIKKEI (Midday) 22324.64 À 1.42% See more at WSJMarkets.com
Samsung
Reworks
targeting capabilities and how
they manage their role in po-
litical discourse in the U.S. as
well as in developing coun-
tries like Myanmar.
Its Top
In his written remarks, Mr.
Stretch of Facebook described
the Russian-created posts and
Echelon
ads as “deeply disturbing— BY EUN-YOUNG JEONG
CHIP SOMODEVILLA/GETTY IMAGES
seemingly intended to amplify AND TIMOTHY W. MARTIN
societal divisions and pit
groups of people against each SEOUL—Samsung Electron-
other.” ics Co. shook up its senior
Several senators appeared ranks in a move that replaces
irked by the amount of time it all of its co-chief executives
took tech companies to detect and strips its board chairman
and disclose the extent of the of any executive role for the
Russian activity on their plat- first time, as the technology gi-
forms. Sen. Patrick Leahy (D., ant looks to address concerns
Vt.) noted that there remained about a leadership vacuum.
many pages on Facebook that On the same day that it de-
appeared similar to those cre- livered another quarter of re-
ated by the Internet Research cord profit, the South Korean
Agency, a pro-Kremlin group company on Tuesday ap-
that bought ads on Facebook pointed new heads of its three
during a two-year period that main business lines: mobile,
Please see SENATE page B4 electronics components and
consumer electronics.
The new co-CEO appointees
are Kim Ki-nam, 59 years old,
for components, Kim Hyun-
suk, 56, for consumer elec-
tronics, and Koh Dong-jin, 56,
for the mobile division.
Samsung is facing a leader-
ship crisis with its elderly
chairman incapacitated, his
son and de facto company
leader Lee Jae-yong in prison
and the conglomerate’s one-
time powerful strategy group
disbanded. Mr. Lee was con-
victed in August for bribing
DAVID BUTOW/CORBIS/GETTY IMAGES
South Korea’s former presi-
dent. He has appealed the de-
cision and is undergoing a
trial in a higher court.
Samsung, the world’s larg-
est maker of smartphones,
memory chips and televisions,
also said it plans to separate
the roles of board chairman
and CEO. Both roles were pre-
viously held by co-CEO Kwon
Oh-hyun, whose surprise res-
ignation in October triggered
Tuesday’s shuffle.
The board chairmanship
Number of vehicles delivered* will be assumed in March by
100 thousand
Lee Sang-hoon, who is step-
ping down as chief financial
80 Tuesday.
Mr. Kwon, in announcing
60 his departure last month,
called for a fresh start for the
40 company, saying Samsung is
“hard-pressed to find new
growth areas right now.” The
20 new division heads are leaders
“well suited to accelerate the
0 estimates† pace of innovation and ad-
’17 2016 ’17 ’18 dress the demands of the con-
nected world,” Mr. Kwon said
THE WALL STREET JOURNAL. Tuesday, adding that they had
“proven track records.”
Skeptics argued that while
the executive shuffle rein-
forces the company’s
strengths, it appeared to fall
of labor unrest that could dis- short of addressing Mr. Kwon’s
turb the Silicon Valley com- call to seek new growth op-
pany’s effort to build its first portunities.
electric car for the masses. Like their predecessors,
Several workers say the Messrs. Kim, Kim and Koh
quality and design issues stem- have spent more than two de-
ming from the Model X assem- Please see LEADERS page B2
bly have left them tired and
worried about strenuous work-  Heard on the Street: Samsung
Please see TESLA page B2 needs to push revamp........ B17
DREW EVANS/THE WALL STREET JOURNAL
many faces you can stick in First, you register your face
front of a phone in a day. I in the FaceID interface by
devised a series of tests to doing two sets of awkward
gauge the everyday—and not head rolls. That information
so everyday—uses of the bio- is stored in a secure location
metric identity technology.
Spoiler: Beware of adorable
on the phone itself. It is
never sent to Apple’s servers.
8-year-old identical triplets. Once FaceID is set up, all
Everyday Usage
you have to do is look down
at your phone to unlock it.
I’ve quickly gotten used to You know it’s unlocked when
unlocking with a glance. Please see STERN page B4
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B2 | Wednesday, November 1, 2017 * *** THE WALL STREET JOURNAL.

INDEX TO BUSINESSES BUSINESS & FINANCE

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

A
Adidas ......................... B6
Aetna............B6,B16,B17
Airbus..........................B3
Alphabet ................ B1,B4
Amazon.com........A8,B16
Anbang Insurance Group
.....................................B8
Antarctica Capital.......B8
Anthem ....................... B6
A.P. Moller-Maersk.....B2
Apple...............B1,B4,B16
B J
BlackRock..................B15
Blackstone Group ....... B8
Blue Apron Holdings
...................................B17
Boeing....................B1,B3
BP................................B6
Burberry Group...........B3
C Lannett........................B3
ESL Investments........A8
Evergreen Line............B2
Exxon Mobil................B6
F
Principal Financial Group
.....................................B8
Prodigy........................A8
Q
New Megaships Cloud Recovery
BY COSTAS PARIS
Facebook.........B1,B4,B16 Qualcomm.................B16
Franklin Resources ... B15 Container shipping is
R
emerging from a painful six-
G RealReal....................B17
Greenland Holdings....B8 Rockwell Automation year slump, but a glut of ton-
I ............................. B3,B16 nage that will hit the water
Ryanair Holdings ........ B6 over the next two years
Intel...........................B16
InterPark ..................... B8 S threatens to derail the nascent
recovery.
Samsung Electronics
........................A1,B1,B17 In recent months, Mediter-
J.C. Penney ................. A2
Sanofi........................B17 ranean Shipping Co. and
K Sears Holdings ........... A1 CMA-CGM SA have each an-
Kellogg.................B6,B16 SL Green Realty..........B8 nounced orders for 11 mega-
Kilroy Realty...............B8 SolarWorld Americas . B3 vessels. Together, with exist-
Kmart..........................A1 Sony.............................B6 ing plans by Asian giants such
L Space Exploration as Cosco Shipping Holdings
Technologies...........B17 Co. and Evergreen Line, the
St. Modwen Properties moves mean dozens of these
LG Electronics.............A1

Carlyle Group............B15
Caterpillar ................. B16
Chevron ....................... B6
Citadel.........................A3
CMA-CGM....................B2
CME Group..................A1
Cosco Shipping Holdings
.....................................B2
CVS Health..........B6,B17
D Microsoft...................B16
Dalian Wanda Group
............................. B8,B10
Dandong Port Group.B15
Dean Witter................A8
Discover ...................... A8
E P
Emcure Pharmaceuticals
.....................................B3
Emerson Electric.B3,B16
Endo International......B3
INDEX TO PEOPLE
A H
Athey, James............B16
B Hopper, Abigail Ross..B3
Bailey, Christopher.....B3
Bergman, David..........B6
Bertelsen, Chris........B16
Bertolini, Mark T........B6
Brzezniak, Kacper.....B17
C Skorney, Brian .......... B17
Campion, Andrew ..... B16
Coppens, Tim..............B6
Coppola, Art................B8
D L
Dankert, Chris.............B3
Dawson, Jan................B4
Dziczek, Kristin...........B2
F Moret, Blake...............B3
Farr, David...................B3
Fulks, Kip .................... B6
Logicor.........................B8
M 2020.
Macerich......................B8
Mastercard................B15
MediaTek...................B16
Mediterranean Shipping
.....................................B2
MGA Entertainment...A1
Mondelez International
...................................B16
Mylan...........................B3
N V
Nike......................B6,B16
Palantir Technologies
...................................B17
Pfizer...........................B6
PGC Capital.................B8
Heymann, Nicholas.....B3
J
Jae-yong, Lee..............B1
K stand to benefit. The big play-
Kim Hyun-suk.............B1
Kim, Ki-nam................B1
Koh, Dong-jin..............B1
Kontopoulos, Yianos.B17
Krafcik, John...............B4
Kwon, Oh-hyun...........B1
LeBas, Guy................B16
Lee, Sang-hoon....B1,B17
M-P
Murphy, Alan .............. B2
Musk, Elon...........B1,B17
...................................B10
vessels will be delivered by
Suniva..........................B3
T The ships—as tall as the
Tesla............................B1 Empire State Building if
Teva Pharmaceutical .. B3 turned upright—can move
3M ............................. B16 20,000 containers each and
TPG RE Finance Trust B8
will sail between Asia and Eu-
Twitter ........................ B1
rope, where operators often
U undercut each other, pushing
Uber Technologies .... B17 rates below break-even levels.
Under Armour......B6,B16 “The gap between supply
Urbplan......................B15 and demand is closing, but
there is still tonnage coming
Voyager Therapeutics in, so the problem is not going
...................................B17 away,” said Alan Murphy, chief
W executive of SeaIntel Maritime
Waymo........................B4 Analysis.
Whirlpool .................... A1 Shipping analyst Alphaliner
WPP.............................B6 said shipping demand would
have to grow by 8% annually for
the overhang to be cleared next
year. If growth is a more realis-
tic 5%, overcapacity will extend
into 2020—as long as there are
Plank, Kevin................B6 no new orders on top of what is
Powell, Jerome.........B16 already on the books.
Pruess, Ben.................B6 Shipowners say rising de-
R mand will absorb the new ca-
pacity and those with the big-
Rayner, Paul..............B17
gest and most efficient ships
Read, Ian.....................B6
Ritter, Jay.................B17
ers moved to renew their
S fleets on the back of low steel
prices and cheap financing
Skou, Soren.................B2 over the past four years.
Stretch, Colin..............B1 “We see solid global growth
in the U.S., Europe and China,
U
which is good news for ship-
Umpleby, Jim............B16 ping,” said Soren Skou, chief
W executive of A.P. Moller-
Wainwright, Julie.....B17 Maersk A/S, which operates
Maersk Line, the world’s big-
Watson, Matt.............B1
gest shipping company.
Wilhelm, Harald..........B3
“We also see a turnaround
Y in energy-dependent countries
Youngkin, Glenn........B15 like Brazil and Russia, where
A Cosco ship being loaded at a port in Pakistan. The operator is getting 17 new vessels next year.
Falling Freight Cost
Ship glut hits freight rates despite rising demand.
Asia-U.S. West Coast
2015
Source: Braemar ACM Shipbroking
economies are no longer con-
tracting.”
Recovery expectations are
also reflected in strong volume
growth at major ports across
the globe. Chinese ports han-
dled an average 10% more
cargo in the three months to
September and West Coast
gateway Long Beach, Calif.,
handled a record 2.1 million
containers over the same pe-
riod, up 16% year-to-year.
Maersk’s Mr. Skou expects
capacity growth to be more
disciplined over the next de-
cade, with only about six
global operators controlling
the market while smaller play-
Asia-U.S. East Coast Asia-Europe
2016 2017
THE WALL STREET JOURNAL.
ers have minimal impact on
freight pricing. The shipping
ranks have thinned after a
downturn in global trade led
to price wars among carriers
on major trade lanes and an
unprecedented consolidation
in which the top 20 container
lines narrowed to 11.
The remaining players have
formed three global alliances
that have allowed them to cut
billions in annual costs by co-
ordinating cargo and sailing
larger vessels. Drewry Ship-
ping Consultants Ltd. esti-
mates that container lines are
set to report a combined $6
billion in operating profit this
CAREN FIROUZ/REUTERS
year. The world’s top 20 oper-
ators incurred roughly $5 bil-
lion in losses last year.
More than 60 megaships
are on order, with Cosco, the
world’s fourth-biggest player,
getting 17 next year and Ever-
green 11 by 2019. MSC and
CMA CGM, the second- and
third-biggest operators, will
get their deliveries starting in
the second half of 2019. Cosco
said this week it will raise $1.9
billion through a private place-
ment to finance the new ships.
Rates have come up
strongly since the depths of
the crisis in the first quarter
of 2016 when they hovered at
around $300 per box in the
benchmark Asia-Europe loop,
compared with $783 now.
However, after a strong
start this year, rates in the
third week of October were
down sharply across the
board, according to Freightos,
an online freight marketplace.
Asia-Europe rates fell 16%
year-to-year, trans-Pacific
rates were down 29% and Asia
to the U.S. East Coast declined
29%. Ship owners say anything
below $1,400 on the Asia-Eu-
rope route is unsustainable in
the long term.
—Paul Page
contributed to this article.

LEADERS the executive shuffle and the

company’s quarterly results,
closing up 1.9% on Tuesday at
ing its dominance in memory-
chip technology. He was also
at one time CEO of display-
Samsung’s unique system of
three co-CEOs remained in-
tact. The system, introduced
Continued from the prior page a record. making affiliate Samsung Dis- in 2013, was created in part to
cades at Samsung, gradually Samsung’s decision to make play Co. assure competitors—who in
rising through the ranks in the Lee Sang-hoon chairman of the Kim Hyun-suk, who will some cases source key compo-
business areas that they will board will strengthen decision oversee televisions and home nents from Samsung—that
be leading. making, Mr. Park said. He also appliances as head of con- each unit was independent
SEONGJOON CHO/BLOOMBERG NEWS

“It’s hard to see how Sam- noted that the board would sumer electronics, joined Sam- from the other.
sung will identify new growth take on some of the functions sung in 1992 and built his ca- The personnel announce-
areas with these appoint- previously performed by the reer in the company’s visual- ments came hours after Sam-
ments,” said Park Ju-gun, head Samsung conglomerate’s con- display business. sung delivered a record quar-
of CEO Score, a Seoul-based trol tower, which he said Mr. Koh, mobile’s new chief terly profit for the second
corporate research firm. should improve transparency executive, was already one of time this year amid strong de-
He added, however, that since any board decisions the company’s highest-profile mand for its electronics com-
Samsung may have sought to would have to be publicized. figures as the presenter of ponents. The Suwon, South
reassure shareholders given The conglomerate’s Future Samsung’s flagship smart- Korea-based company said
the leadership vacuum at the Strategy Group was criticized Lee Jae-yong’s imprisonment left a void at the top of Samsung. phones at splashy events. He third-quarter net profit rose to
very top. “Maintaining the sta- for its opacity and lack of ac- was also the one to bow in 11.19 trillion South Korean won
tus quo may be the way to go countability to shareholders. political scandal that took ponents chief responsible for public apology during last ($9.95 billion) from 4.54 tril-
at times of risk,” Mr. Park said. Samsung dismantled it this down South Korea’s former Samsung’s most lucrative year’s recall of fire-prone Gal- lion won a year earlier. Reve-
Samsung shares rose fol- year amid an outcry over its president. business, is credited within axy Note 7 smartphones. nue climbed 30% to 62.05 tril-
lowing the announcement of involvement in a wide-ranging Kim Ki-nam, the new com- the company with strengthen- Despite Tuesday’s shake-up, lion won.

TESLA filing complaints against the

company with the National La-
bor Relations Board, claiming
Tesla harassed workers trying
ter for Automotive Research in
Ann Arbor, Mich.
Signs of trouble for the
Model X began in 2015 when,
ary to Mr. Musk laying out
complaints as part of a union
organizing effort. Mr. Moran
complained of unsafe working
Continued from the prior page to unionize. An administrative just weeks ahead of produc- conditions and said the com-
ing conditions re-emerging as judge expects to hear the com- tion, Tesla changed the SUV’s pany was forcing overtime,
the company falls behind in plaint in November. Tesla has signature feature: rear passen- claims Tesla says aren’t correct.
meeting Mr. Musk’s ambitious denied wrongdoing, saying the ger doors that opened upward Tesla recorded 8.8 injuries
goal of producing 5,000 cars a effort was motivated “only to using a hydraulic system. Tesla per 100 workers in 2015,
week by year’s end. generate headlines.” said the supplier had difficulty higher than the industry aver-
Tesla made just 260 Model The union last Wednesday building the complicated door, age of 6.7, according to an
3 cars during the third quar- filed another complaint, say- so it switched to a more tradi- analysis by Worksafe using
ter, missing its projection of ing Tesla fired some workers tional engineering solution. company data. Tesla’s injury
more than 1,500. The factory’s in October because they were Adding to the complica- rate last year was 8.1; an in-
body shop wasn’t ready at the union activists. Tesla said the tions, in early 2016 Tesla man- dustrywide comparison isn’t
start of production in July and workers were laid off because agers realized the vehicles’ yet available.
workers were hand-making of performance. frames were flexing too much In May, Tesla said the re-
portions of the car as recently The labor discord raises during the build process, cordable incident rate dropped
as September, The Wall Street questions whether the factory throwing the parts out of to 4.6 during the first quarter,
Journal reported. alignment, according to people ahead of Model 3 production.
Mr. Musk, who acknowl- who worked on the Model X. The company also said it

260
edged Tesla has entered “pro- With quarterly production employs an ergonomics team to
duction hell,” will likely speak targets looming, Tesla manag- address repetitive labor in the
about Model 3 production ers required longer hours and design of making the Model 3.
Wednesday when the company weekend work. One hourly People who worked on the
reports quarterly results. Model 3 cars made in third quarter, worker recalled working 13 Model X say injuries likely mul-
In a statement, Tesla reiter- short of projection of over 1,500 straight days. “They went by tiplied during the nine-month
ated that the Model 3 is easier with carts and dollies full of production ramp-up because
and safer to build than the Red Bull and threw them out Tesla’s design team didn’t factor
Model X. “The challenge is to everybody,” he said. “It felt in enough of the effects of re-
fine-tuning the bring-up of will struggle with the demands like we literally lived there.” petitive labor. For example,
certain automated production of a leader whose vision of Unlike traditional unionized Tesla designed middle-row seats
processes. However, this will Tesla is as much a software factories that schedule over- to appear like they rested on a
ultimately result in higher vol- company as it is an auto time in advance, Tesla’s work- pedestal, requiring dozens of ex-
umes and even safer produc- maker, one that bucks tradition week could change with little tra bolts. Those bolts kept strip-
tion for our employees.” and draws its strength and cre- notice, workers said. Several ping, so workers had to crawl
The production ramp-up has ativity from Silicon Valley. of them said they feared los- into the vehicle to twist each
stirred the United Automobile Mr. Musk has proven doubt- ing their jobs if they didn’t one by hand, these people said.
Workers union, which since ers wrong by creating a cov- work the overtime. Tesla built a flawless version
last fall has rented an office eted luxury brand with electric To address workers’ con- of the Model X in April of last
about a mile from Tesla’s fac- cars. But at $35,000, the Model cerns, Tesla said it added a year and celebrated the mile-
tory and has spent thousands 3 will test whether Tesla’s third shift in the fourth quar- stone at about 3 a.m., Mr. Musk
of dollars to put organizers in manufacturing prowess can ter of last year, reducing over- said. He later acknowledged that
a local hotel, according to produce vehicles at a projected time by more than 60%. Tesla went too far with the
union records and a person fa- rate of a half-million a year. Workers, meanwhile, said Model X. “We got overconfident
miliar with the matter. “If there ever was an open- they noticed a change in irregu- and created something great
The UAW also hired a pub- ing [for the union], this is it,” lar overtime this year after that probably will never be made
lic-relations firm that special- said Kristin Dziczek, a long- hourly worker Jose Moran again and perhaps should not
izes in politics and joined in time labor analyst at the Cen- wrote an open letter in Febru- be,” he told shareholders in June.
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.
Equipment Maker
Rejects New Offer
From Emerson
Rockwell Automation Inc.
has rejected a takeover bid by
Emerson Electric Co. worth
roughly $27.5 billion, spurning
By Andrew Tangel,
Dana Cimilluca
and Bob Tita
a deal that would combine
two big U.S. makers of ma-
chines and software used in
manufacturing.
The latest half-cash, half-
stock bid by Emerson, a St.
Louis-based industrial con-
glomerate, came in early Octo-
ber and was valued at $215 a
share, according to Rockwell.
The Milwaukee-based maker of
industrial equipment said it
also rejected an Emerson bid in
August valued at $200 a share.
Rockwell Chief Executive
Blake Moret said in a state-
ment the company’s board and
management are “confident in
the company’s strategic direc-
tion and our ability to continue
delivering superior levels of
growth and value creation.”
An Emerson spokes-
man confirmed the com-
pany’s attempt to acquire
Rockwell but declined to
comment further.
Rockwell shares rose 7.4% to
$200.82 on Tuesday. Emerson’s
Elusive Quarry
Rockwell Automation’s shares are up on news of Emerson’s interest.
Percentage change in share price since May 1, 2017
Aug. 2: Rockwell Oct. 10: Emerson
30% receives $200 increases offer
per share offer to $215 per
25
from Emerson. share.
20
15
10
5 Emerson
0 actions to take.
–5
J J
Source: FactSet
States to Widen Generics Suit
BY PETER LOFTUS
Officials in multiple U.S.
states are seeking to substan-
tially expand a lawsuit accus-
ing generic-drug companies of
colluding to fix prices, includ-
ing new allegations that high-
ranking executives at two
companies were directly in-
volved.
Attorneys general in 45
states plus the District of Co-
lumbia and Puerto Rico filed a
motion in federal court in
Philadelphia on Tuesday pro-
posing to add several more
generic-drug companies as de-
fendants in the lawsuit and to
expand the number of drugs
at issue to 15 from two.
The attorneys general, in-
cluding Connecticut’s George
Jepsen, originally filed a law-
suit in December against six
companies, including Heritage
Pharmaceuticals Inc. and units
of Mylan NV and Teva Phar-
maceutical Industries Ltd.
BURBERRY GROUP
Creative Director
Leaves Luxury Brand
Burberry Group PLC is part-
ing ways with Christopher Bai-
ley, who over 16 years as cre-
ative chief, helped turn the
company from a fusty trench-
coat maker to one of the world’s
most-recognized luxury brands.
Mr. Bailey struggled to right
Christopher Bailey helped make Burberry a top luxury brand.
NY Wednesday, November 1, 2017 | B3
BUSINESS NEWS
stock fell 4.3%.
It wasn’t immediately clear
what might be Emerson’s next
step. Now that the bids have
become public, Rockwell may
feel shareholder pressure to
engage in negotiations.
Rockwell was skeptical of
the large amount of Emerson’s
stock, according to people fa-
miliar with the matter. It also
has concerns about Emerson’s
NATI HARNIK/ASSOCIATED PRESS
management and its record
with mergers and acquisitions,
the people said.
One of the people described
Rockwell’s view of Emerson’s
bid as: “They need us. We re-
ally don’t really need them.”
Emerson’s automation busi-
ness is largely focused on The trade issue has divided the solar industry, with panel Installers saying tariffs would hurt U.S. consumers and blunt demand.
Solar-Panel Tariffs Loom
chemicals, cement, oil and nat-
ural-gas installations and other
materials produced in outdoor
facilities. Its business portfolio
also includes hardware such as
industrial valves and kitchen
garbage disposals. U.S. trade officials lay tioned the ITC for a tariff on commissioners’ recommenda- executive of the Solar Energy
Rockwell has generally spe- imported solar cells, the com- tions “simply will not fix the Industries Association, a trade
cialized in developing equip- out measures against ponent of a solar panel that problem the ITC itself has iden- group that has opposed the pe-
ment and software used to low-price imports converts sunlight to electricity tified, and with it, we’ll see tition, said she was heartened
make products such as cars, and which both companies very shortly the extinction of that the ITC recommendations
electronics and food. Rockwell decried by local makers make. Suniva and SolarWorld what remains of this manufac- fell short of what the compa-
has increasingly been focused had also sought either a floor turing sector, and the jobs of nies had requested, but still
on what it calls the “connected BY ERIN AILWORTH price on solar modules or a American workers.” sees them as being “intensely
enterprise,” using software to quota on imported cells and SolarWorld said it believes harmful” to the broader U.S.
link manufacturing to data Federal trade officials are modules in order to help do- the remedies the companies solar industry.
across a company’s operations. recommending that the Trump mestic manufacturers compete have proposed remain the best “We remain committed to
administration impose an im- against the imports, mostly option for solar manufacturers. working with all parties to find
port tariff of up to 35% on solar coming from Asia. “We look forward to President a solution that supports domes-
panels to protect U.S. solar On Tuesday, a majority of Trump establishing remedies tic cell and panel manufactur-
manufacturers from low-price the four trade commissioners that will place this industry ing without cratering demand
imports that have undercut the recommended the president back on a path of robust for American-produced solar
companies’ ability to compete. implement tariffs on imported growth,” the company said. energy,” she said.
Oct. 31: Rockwell confirms it
Members of the U.S. Interna- solar panels and cells. But the The case has divided the so- Suniva brought its petition
rejected Emerson’s latest bid.
tional Trade Commission out- size of the tariffs varied, and lar industry. While some panel under a rarely used provision
Rockwell
lined their various recommen- fell short of both the 25 cents a makers say they need protec- of U.S. trade law—Section 201
dations Tuesday, which also watt tariff that Suniva and So- tion, panel installers and others of the U.S. Trade Act of 1974—
included import quotas. They larWorld had requested on cells in the solar industry counter that allows an industry to seek
must now send them to the and the 32 cents requested for that a tariff would raise prices broad protection from a surge
White House, which has until panels. One commissioner rec- for consumers and hurt de- of imports if that surge has
January to decide what, if any, ommended selling licenses for mand for solar arrays that were caused the industry serious in-
imports that would restrict the made more affordable by cheap jury. Mr. Trump campaigned on
The recommendations after influx of solar products. imports. Both sides have a promise to be more aggres-
two embattled solar-panel mak- Suniva said it is grateful the claimed thousands of American sive in using U.S. trade laws.
A S O ers, Suniva Inc. and Solar- ITC sees the need for solar- jobs are on the line. —Jacob M. Schlesinger
THE WALL STREET JOURNAL. World Americas Inc., peti- trade protections but thinks the Abigail Ross Hopper, chief contributed to this article.
The original lawsuit alleged A Novartis spokesman de-
that the companies conspired clined to immediately com-
to manipulate prices for doxy- ment, and officials for the
cycline hyclate, an antibiotic, other companies couldn’t im-
and glyburide, used to treat mediately be reached to com-
diabetes. ment.
Mylan and Teva said they The attorneys general want
knew of no evidence of to name as individual defen-
wrongdoing, and Heritage said dants Mylan President Rajiv
it fired two executives last Malik and Satish Mehta, chief
year after an internal investi- executive and managing direc-
gation found serious miscon- tor of Emcure. Their request
duct related to the allega- is subject to approval by the
tions. judge in the case.
Now, the state attorneys Mylan said in a news re-
general have asked a federal lease it has been investigating
judge for permission to add 12 the allegations and has “found
companies or corporate enti- no evidence of price fixing on
ties as defendants in the the part of Mylan or its em-
price-fixing allegations, in- ployees.” The company said it
cluding Novartis AG’s Sandoz has “deep faith in the integ-
unit, Endo International rity” of Mr. Malik, “and stands
PLC’s Par Pharmaceuticals behind him fully.” Mylan said
unit, Lannett Co., and Emcure the company and Mr. Malik
Pharmaceuticals Ltd., the intend to defend themselves
parent company of Heritage.
An Endo spokeswoman said
the company would defend it-
vigorously.
Neither Emcure nor Mr.
Mehta could be reached to
THAN YOU EVER THOUGHT POSSIBLE
self against the states’ claims. comment.
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B4 | Wednesday, November 1, 2017 NY THE WALL STREET JOURNAL.

TECHNOLOGY WSJ.com/Tech

Apple Cultivates iPhone X Reviews SENATE overly negative.

In departure from
“Unless Apple felt like there
prior launches, early would be some bad elements
access is limited to in the reviews, why would you
hold back?” Mr. Dawson asked.
small core testing group “Why would you be selective
about who gets it first?
BY TRIPP MICKLE The unusual approach comes
in an iPhone release year
Apple Inc. departed from marked by anomalies. For the
its traditional preview strat- first time, Apple released a trio
egy for what it bills as its of new handsets at its big fall
most important new iPhone in launch event—the iPhone 8, 8
years, prioritizing early access Plus and X. It also increased
to the iPhone X for YouTube prices on its suite of new
personalities and celebrities phones and staggered the
over most technology colum- launch, with the iPhone 8 hitting
nists who traditionally review stores Sept. 22 and the iPhone X
Continued from page B1
included the U.S. election.
Sen. Al Franken (D., Minn.)
highlighted that those Rus-
sian-backed actors purchased
Facebook ads in rubles. “How
could you not connect those
two dots?” he asked. Mr.
Stretch responded: “It’s a sig-
nal we should have been alert
to and in hindsight, one we
missed.”
On Tuesday, the companies
promised that they understood
their civic responsibilities to
ensure that hateful, mislead-
ing, false or propagandistic
content is better policed. Face-
book has 10,000 people work-

its new products.
Apple provided the iPhone X
to a small number of traditional
testers for about a week, while
limiting most others, The Wall
Street Journal included, to a
single day with the device be-
fore reviews could be pub-
lished. About a half-dozen per-
sonalities on Alphabet Inc.’s
YouTube video service were
granted time with the device
before its release.
The company seeded the
iPhone X to at least three in-
fluencers with different audi-
ences: actor Mindy Kaling,
who shared her thoughts with
Glamour; 12-year-old devel-
oper Alex Knoll, who showed
off the device on Ellen DeGe-
neres’s television show; and
political journalist Mike Allen,
who included insights from his
tech-savvy nephew in Axios’s
morning newsletter.
Traditional publications and
The latest iPhone got less testing than most predecessors before reviews could be published.
tech outlets that in past years
received review models for a
week of testing were given the
iPhone X fewer than 24 hours
before, resulting in crash re-
views and first-impression
takes from USA Today, the
Washington Post, the Verge
and others.
In the U.S., BuzzFeed, Tech-
Crunch and Mashable were
given a week with the iPhone X,
as were the Telegraph and the
Independent in the U.K. The de-
vice also was given for a week to
outlets in Japan, China, Austra-
lia and other countries. Steven
Levy, among the handful of peo-
ple to test the first-ever iPhone,
THOMAS PETER/REUTERS
hitting stores six weeks later. ing on safety and security and
The iPhone X arguably is plans to double that figure by
the most important iPhone in the end of 2018, Mr. Stretch
a decade. Apple billed the de- said. Twitter for the first time
vice as the smartphone of the revealed the reach of Russian-
future, and investor anticipa- linked content, acknowledging
tion of strong sales has helped that there were about 288 mil-
send the company’s stock up lion automated, election-re-
spent a week with the iPhone X the device, they said. more than 50% over the past lated tweets from accounts
and posted his “first look” im- Crash reviewers largely year. Its success has taken on tied to Russia between Sept. 1
pressions on Backchannel, part echoed those sentiments, add- increasing importance amid and Nov. 15, 2016.
of Wired Media Group, a day be- ing the caveat that they could lackluster sales for the iPhone Facebook in prepared testi-
fore most other publications. discover issues after they 8 and 8 Plus. mony estimated that 126 mil-
The change in strategy spend more time with the de- At $999, the iPhone X is the lion people on Facebook saw
meant the iPhone X, which vice. Most pledged full reviews highest-priced major smart- Russian-backed content from
hits stores Friday, got less for later in the week. phone to date. It is expected a single pro-Kremlin firm
testing than most of its prede- The review strategy is “un- to be in limited supply after called the Internet Research
cessors before reviews could usual,” said Jan Dawson, an production issues over the Agency,
be published. The handful of analyst with Jackdaw Re- summer delayed manufactur- The hearing featured some
reviewers who received the search. “It’s possible Apple ing by at least a month. Ad- prominent examples of the
device for a week largely wanted some reviews out vanced preorders began last Russian-created content, with
praised its full-screen display, early and those would be the week, and early demand Sen. Chris Coons (D., Del.) dis-
facial-recognition system and more enthusiastic ones.” quickly pushed shipment times playing two images of ads run
smaller physical size. Remov- He said YouTube reviewers for the device to five to six by Facebook pages created by
ing the physical home button tend to be more positive when weeks from the day of an or- Internet Research Agency.
meant people would have to given early access to devices, der—more than double the One was an anti-Hillary
adjust to how they operated and that most reviews aren’t wait for last year’s iPhone 7. Clinton ad from a page called
“Heart of Texas,” which said
she was “despised by the

STERN face to my face, I pasted it on a

big Popsicle stick, I even tried
holding a photo on my iPhone
7 up to the new iPhone X.
Sculptor, a New York business
that helps artists learn to
make prosthetics and masks.
Last week, I went to his
eyes have to be open for
FaceID to work. Thus, we cut
creepy eyes out of the mold.
My mission really was im-
Kormac and Kevin were able
to unlock the phone.
You don’t have to use
FaceID; you can rely on a
overwhelming majority of
American veterans.”
The second ad came from a
page “Being Patriotic” for an
Continued from page B1 While the Galaxy Note 8 office and had a bunch of possible: FaceID knew it was pass code, if you prefer. Oct. 2, 2016, event called
you see the small padlock was fooled more than once goop (technically, silicone somebody’s face, but it wasn’t Important to note: Apple “Miners for Trump.”
open on the lock screen. with the paper cutout, none molding compound and plas- duped into thinking it was me. says children under 13 may Sens. Dianne Feinstein of
Swipe up and you’re in. of this made the X flinch. ter) applied to my face to also change the probability, California and Amy Klobuchar
It’s much faster than I antic- If the X recognizes a face create a mold. Twins and Triplets mainly over time, as their fa- of Minnesota asked about
ipated, largely because you can but it isn’t yours, the lock On Monday, I returned According to Apple, the cial features develop and voter-suppression efforts,
begin to swipe while it reads icon will jiggle. with my colleague Denise chances that a random person change faster than an adult’s. pointing to tweets that falsely
your face. It clocks in at under It makes sense that a and the iPhone X. could look at your iPhone X Fraternal twins—or siblings claimed that people could
a second in most instances. photo didn’t work. Apple’s We applied some makeup and unlock it is one in a mil- who really look alike—might “vote by text.”
But there are some hold- sophisticated system uses to my mask and Marc fit it lion, but the chances are a lot not fool FaceID. I had Pamela Twitter removed the tweets
ups: You must give your phone two cameras and projected to Denise’s face. greater for identical twins or Weinsaft and her twin, Meryl spreading “vote-by-text” mis-
some attention with your eyes. infrared dots to measure the While the mask lacked my similar-looking siblings. Cooper, register their faces, information because the com-
It won’t recognize a profile depth of your face. smooth skin, eyes and other So while your roommate and neither was able to un- pany deemed it illegal voter
view. A few other things I You know what has parts that make me look like can’t break in, it’s possible lock the other’s phone. suppression, Twitter’s acting
found during my testing: depth? A mask, a real theat- a living human, the shape— that your womb-mate can. Bottom line: FaceID is se- general counsel, Sean Edgett,
rical mask. down to the contours of my I found that to be the case cure, fast, reliable and very said.
Photos and Masks Yes, I made a silicone cheek and my nose—ap- with the help of adorable 8- easy to use. But even if it is —Georgia Wells,
I tried hard to get a photo mask of my face. peared to be a carbon copy. year-old identical triplets. Halloween, you’ll be headed Michelle Hackman
to unlock the X. Well, I didn’t; it was created One thing I discovered After Declan Lyons regis- for trouble if you go trying and Douglas MacMillan
I taped a cutout photo of my by Marc Fields at Compleat during mask testing: Your tered his face, his brothers to clone yourself. contributed to this article.

Waymo Starts to Get ‘Close’

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CAREERS CAREERS CAREERS

To Fully Driverless Minivans
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During the demonstration, charge: the onboard computer.
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. Wednesday, November 1, 2017 | B5

an open letter
to ADP shareholders
ADP has a long and proud history of putting the needs of our clients at the center of
everything we do. For 68 years, our focus has been on reliability, breadth of solutions
and quality of service as a leader and innovator in Human Capital Management (HCM).
Our relentless focus on the needs of our clients has resulted in strong value creation for
you, our shareholders, as well as for our other stakeholders.

Every payday, we deliver on our commitment to our 700,000 clients around the globe,
including more than 70% of the Fortune 500, and the 1 in 6 American workers and
approximately 14 million international workers that we pay.

We are a client-centric organization that is deeply involved with both technology and
services. Over the past five years, we have taken decisive actions to position ADP for
sustainable growth and success in the HCM industry by developing a complete suite
of cloud-based solutions, investing to grow and scale our industry-leading Human
Resource Business Process Outsourcing solutions, and leveraging our worldwide
presence to provide truly global HCM solutions. We are the #1 provider of cloud-based
HCM solutions with the #1 mobile HCM app, exceeding 12 million users, and we are #1
in financial data services on the FORTUNE World’s Most Admired Companies® 2017 list.

And our work doesn’t stop there. We continue to build on ADP’s strengths to anticipate
and deliver on all of our clients’ HCM needs. We are investing more than $800 million
annually in innovation, streamlining our operations, and attracting top technology talent
to achieve our ambitious goals.

We are motivated to do what we do best: create value for our clients, partners,
shareholders and associates, and deliver returns in excess of both the market and
our industry peers. We believe we are well positioned to continue our strong track of
performance, sustainable value creation, and return of capital through dividends and
share repurchases, building on 42 consecutive years of annual increases in the dividend.
We are proud of our position as a global leader — and we are more confident than ever
that the future is bright for ADP.

At our Annual Meeting on November 7, ADP shareholders face an important decision

that will directly impact the value of their investment and the future of ADP. Please vote
to re-elect ADP’s 10 highly qualified directors on the WHITE proxy card to support ADP
as we continue delivering on our commitments to our shareholders, clients, associates,
partners, and the 40 million workers who depend on our services. Thank you.

Your vote is important, no matter how many or how few shares you own. Vote today
online, by phone or by mail by following the directions on the WHITE proxy card. For
additional information on the 2017 Annual Meeting of Stockholders, visit VoteADP.com.
If you have questions, or need assistance in voting your shares, please contact: Innisfree
M&A Incorporated; call toll-free: (877) 750-0510 or call collect: (212) 750-5833.

Carlos A. Rodriguez John P. Jones

President and Chief Chairman of
Executive Officer the Board

ADP, the ADP logo and ADP A more human resource are registered trademarks of ADP, LLC.
All other marks are the property of their respective owners. Copyright © 2017 ADP, LLC.
From FORTUNE Magazine, March 1, 2017 © 2017 Time Inc. FORTUNE and The World’s
Most Admired Companies are registered trademarks of Time Inc. and are used under
license. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or
services of, ADP, LLC.
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
B6 | Wednesday, November 1, 2017
Under Armour lowered its full-year financial forecast. Its shares are down 57% this year.
Under Armour’s Sales Streak Ends
Sportswear company
reports quarterly
decline for first time;
CEO promises a ‘reset’
BY SARA GERMANO
Under Armour Inc. re-
ported its first ever quarterly
sales decline since going pub-
lic in 2005 and cut its growth
forecasts, sending shares tum-
bling on Tuesday as the re-
sults fueled fears the once-fast
growing brand’s best years are
behind it.
Under Armour founder and
Chief Executive Kevin Plank
conceded the sportswear com-
pany had been “a bit braggish”
about accomplishments in the
past. He said its problems
were a result of troubles in its
home U.S. market as well as
complications from fast
growth in recent years.
On a conference call, Mr.
BP Signals
Optimism
With New
Buybacks
BY SARAH KENT
LONDON—BP PLC on Tues-
day said it would restart its
share buyback program after
posting healthy third-quarter
earnings, the latest signal that
the oil industry has found its
footing amid a modest crude-
price recovery.
The U.K. oil giant said its
strengthened financial posi-
tion allowed it to begin a
share repurchase program in
the final three months of 2017,
though it didn’t put a value on
future buybacks. With Brent
crude, the international
benchmark, trending over $60
a barrel for the first time
since 2015, BP’s move ranks
among the first actions show-
ing big oil companies are
healthy enough to sweeten the
pot for investors who had
soured on the sector.
BP hasn’t had a share buy-
back program since oil prices
crashed in 2014, falling from
over $114 a barrel to less than
$28 a barrel in early 2016.
Other companies like Exxon
Mobil Corp. and Chevron
Corp. have also moved away
from the practice while they
grappled with the oil-price
slump.
BP said it could restart buy-
backs because it had driven its
costs so low that it can gener-
ate enough cash to cover its
spending commitments and
dividend at $49 a barrel. In-
vestors are increasingly look-
ing at this break-even metric
for signs big oil companies
have succeeded in shifting
their financial frameworks to
operate profitably at lower oil
prices.
“We’re confident we can bal-
ance the books at $50 next
year, and even manage as low
as $45. That’s what gave us the
confidence to raise the idea of
buybacks with the board,”
Chief Financial Officer Brian
Gilvary said in an interview.
Overall, BP’s replacement
cost profit—a number similar
to the net income that U.S.
companies report—was $1.4
billion in the third quarter,
down slightly from $1.7 billion
in the same period a year ear-
lier. But its underlying finan-
cials were strong, sending its
intraday share price to highs
not seen since three years ago,
when oil prices were over $100
a barrel. BP shares closed up
1.7% Tuesday in London.
THE WALL STREET JOURNAL.
EARNINGS
Slowing Down Aetna’s
Profit
Under Armour’s sales and shares are in retreat.
Sales, change from previous year Share price
Rises;Firm
50% $40
3Q 2017
$1.41 billion
40 35
▼4.5%
30 30 StaysMum
20
10
25
20
Tuesday
$12.52
▼24%
AboutCVS
BY ANNA WILDE MATHEWS
STEVE MARCUS/REUTERS
AND ALLISON PRANG
0 15
Aetna Inc. posted increased
–10 10 profit but a decline in revenue
for its latest quarter as the in-
2011 ’12 ’13 ’14 ’15 ’16 ’17 2016 ’17
surer highlighted moves to re-
Sources: S&P Capital IQ (sales); FactSet (shares) THE WALL STREET JOURNAL. position its offerings and set
itself up for long-term growth.
During a call with analysts
to discuss earnings, Aetna ex-
ecutives declined to address a
report in The Wall Street
Journal that CVS Health Corp.
Plank said 2017 “is a reset for wear brand. profit fell 58% to $54.2 million Unlike rivals Nike Inc. and was in talks to purchase the
our business and our brand as The Under Armour spokes- as sales declined 4.5% to $1.41 Adidas AG, the company does company for over $66 billion.
we try to operate as a bigger woman said that UAS would billion from the year-earlier the vast majority of its sales Chief Executive Mark T.
company.” now be integrated across cate- period. Analysts polled by in apparel, rather than foot- Bertolini said the company
The company is implement- gories such as running, FactSet had expected earnings wear, and in North America won’t “comment on rumors or
ing several changes, including women’s and basketball, in- of $84 million and revenue of versus globally, making it sus- speculation.” He did, however,
stopping making wearable fit- stead of as a stand-alone seg- $1.48 billion. ceptible to increased competi- say that Aetna aims to an-
ness trackers and instead fo- ment, and that creative direc- Under Armour’s finance tion in the U.S. nounce its plans for its phar-
cusing on improving software tor Tim Coppens will be chief David Bergman said sales Executives said that Under macy-benefit contract with
through its suite of apps. An launching a spring/summer in the home market of North Armour would work internally CVS by the middle of next
Under Armour spokeswoman 2018 line. Future editions of America would decline at a to reorient its sales plan to be year, and that CVS’s agree-
said the company would con- UAS, which now stands for Un- “high-single-digit” rate for more direct-to-consumer, a ment to service the new phar-
tinue to sell its UA Health der Armour Sportstyle will be 2017, underscoring the chal- move that follows similar ef- macy-benefit manager being
Band, UA Scale and UA Heart codesigned by celebrity collab- lenges in the sportswear mar- forts by rivals as the U.S. launched by Anthem Inc. is
Rate devices through the re- orators, including the rapper ket. Third-quarter North wholesale sportswear business “not a problem for us.” The
mainder of the year. On Tues- A$AP Rocky. America sales fell 12%. has slowed. existing Aetna contract with
day afternoon, the devices Mr. Pruess didn’t respond The sportswear maker Some analysts took a grim CVS goes through 2022, but
were on sale on Under Ar- to a request to comment. brought on a new president view of the results, particu- Aetna has the ability to opt
mour’s website for between Under Armour shares fell and chief operating officer in larly the revenue decline. “It out at the start of 2020.
38% and 66% off. 24% Tuesday to $12.52, down June, announced layoffs and seems [Under Armour] is by Mr. Bertolini also said
Meanwhile, Under Armour’s 57% this year. restructuring in August. Kip definition not a growth com- Aetna is poised to resume
president of sport fashion, Ben Earlier this year, the com- Fulks, the company’s co- pany,” wrote Nomura Instinet sales of short-term health in-
Pruess, has left the company. pany snapped its streak of 26 founder and widely seen as analyst Simeon Siegel. surance if the Trump adminis-
Mr. Pruess co-led the design straight quarters of sales ris- Mr. Plank’s top deputy, left on Under Armour lowered its tration removes a cap limiting
and launch of its high-end line, ing by 20% or more. Since its sabbatical last month. The full-year financial forecast, ex- such plans to three months’
then known as Under Armour fourth quarter of 2016, reve- Wall Street Journal reported pecting net revenue growth in duration, a move encouraged
Sportswear, or UAS, in a bid to nue growth has sputtered. that the company is consider- the low single digits and oper- by a recent executive order.
garner more fashion credibil- For the three months ended ing exiting some categories, ating income of between zero Mr. Bertolini also played up
ity for the traditional sports- in September, Under Armour’s including tennis. and $10 million. Aetna’s long-term growth tra-
jectory as a stand-alone com-
pany, despite several moves
Pfizer Lifts Revenue, Halting Slide
that would be blows to its rev-
enue in 2018. Aetna’s contin-
ued retreat from the Afford-
BY AUSTEN HUFFORD
AND JONATHAN D. ROCKOFF
billion in annual losses the
company had been confronting
fell 20% to $308 million as
wholesalers began destocking
full-year revenue between
$52.4 billion and $53.1 billion,
able Care Act exchanges, the
sale of its life and disability
business, and some pullbacks
Pfizer Inc. revenue rose in
its latest quarter as the drug-
in recent years.
“You get this nice inflection
where you have two major
the drug in advance of ex-
pected generic competition
starting in December, the com-
compared with $52 billion and
$54 billion previously. It ex-
pects adjusted earnings per
in Medicaid will affect revenue
next year, the company said.
Looking forward, Mr. Berto-
maker says it has turned a
corner and expects more prod-
uct launches in the next sev-
positive trends,” Chief Finan-
cial Officer Frank D’Amelio
said in an interview.
pany said.
For the third quarter, Pfizer
reported net income of $2.84
share between $2.58 and
$2.62, up from an earlier fore-
cast of $2.54 and $2.60.
lini emphasized Aetna’s
growth in Medicare, including
its performance in the federal
eral years combined with Pfizer, based in New York, billion, or 47 cents a share, In February, the company
fewer drug-exclusivity losses. had posted three consecutive compared with $1.36 billion, completed the sale of its
Chief Executive Ian Read quarters with revenue declines or 22 cents a share, a year global infusion-therapy assets,
said in an interview Tuesday until the third quarter. The earlier, though Pfizer said known as Hospira Infusion
The insurer’s revenue
that the company is develop- company said revenue rose much of the favorable impact Systems, for about $1 billion. dropped as fewer
ing 15 drugs that could be ap- 0.9% in the most recent quar- was because of one-time items Pfizer said in October that
proved for sale by regulators ter to $13.17 billion. such as the sale of an infusion- it was exploring a sale or
people were on the
by 2022, and each could have Cancer-drug Ibrance and pump business. On an adjusted spinoff of its consumer-health firm’s ACA plans.
sales surpassing $1 billion. blood-thinner Eliquis notched basis, earnings were 67 cents business, which makes Advil
Meanwhile, Pfizer expects among the quarter’s biggest a share, up from 61 cents. cough and cold medicines,
about $2 billion in sales losses sales gains, while Pfizer said it Shares in the company fell Centrum vitamins and other
because of patent expiries and had begun to feel the impact slightly. over-the-counter products. program’s quality rankings,
generic competition during from a coming exclusivity ex- Pfizer cut its revenue out- The business had $829 million and investments Aetna is mak-
each of the next few years, piration for male-impotence look for the year but raised its in third-quarter sales, up 4% ing in data analytics. Aetna
compared with the roughly $5 pill Viagra. Sales of the drug profit guidance. It now expects from a year earlier. also said it is looking for
growth in Medicaid over the
EARNINGS WATCH
long term.
Aetna has said it is exiting
the ACA exchanges next year,
but Mr. Bertolini said that if
WPP the business “gets right and
stable, we’ll look at reconsid-
Ad Giant Reduces ering on how we get in.”
Forecast Again Aetna on Tuesday again
raised its profit forecast for
WPP PLC cut its annual sales 2017, predicting adjusted earn-
forecast for the third time this ings per share of $9.75. The
year, as the world’s largest ad- company previously estimated
vertising company struggles to per share earnings between
boost revenue at a time when $9.45 and $9.55.
previously big-spending con- Total adjusted revenue at
sumer-goods firms are ratchet- Aetna declined 5% to $14.95
ing down marketing spend. billion in the third quarter, as
The London-listed company on fewer people were on the com-
Tuesday said it now expects sales pany’s ACA plans and from the
growth excluding currency swings temporary suspension of the
and acquisitions to come in ACA health-insurance tax.
“broadly flat” for the year and also Analysts were expecting
HANNAH MCKAY/REUTERS
lowered its profit-margin guid- revenue of $15.13 billion.
ance. WPP initially targeted 2% Aetna posted net income of
growth for 2017 before cutting its $838 million for the third
forecast to 0-1% two months ago quarter, a 39% increase from a
in a move that sent shock waves year earlier. On an adjusted
through the marketing industry. basis, net income rose 11% to
Overall, comparable net sales Irish carrier Ryanair said scheduling problems affecting thousands of flights hurt its quarterly profit. $814 million. Adjusted earn-
fell 1.1% in the three months to ings per share increased to
Sept. 30, compared with a fall of staff. More than 700,000 passen- its 71-year history, a milestone KELLOGG $2.45, beating analysts’ esti-
0.5% in the first half. The com- gers were affected. reflecting a comeback. mates of $2.09 a share. In the
pany reported a 1.1% rise in turn- The Irish carrier said net For the fiscal year ending in
Growth Overseas prior-year quarter, the com-
over for the period to £3.65 bil- profit fell 1.8% to €895.4 million March, Sony now anticipates an Offsets Woes in U.S. pany earned $2.07 on an ad-
lion ($4.81 billion), as the Brexit- ($1.1 billion) in the busy July- operating profit of ¥630 billion justed per share basis.
weakened pound meant its September season, dented by ($5.56 billion) on ¥8.5 trillion in Kellogg Co. reported a sur-
earnings overseas were boosted €25 million in compensation revenue, revising its previous prise improvement in sales as
when converted into sterling. costs for passengers. Sales rose forecast of ¥500 billion in profit growth abroad offset continuing Aetna Earnings
WPP didn’t break out profit to €2.52 billion from €2.44 billion on ¥8.3 trillion in revenue. The trouble in the U.S. for longstand- Net income, quarterly
figures for its third quarter. a year earlier. figure, if reached, would blow ing brands like Special K cereal. $1.2 billion
—Nick Kostov Despite the disruption’s costs, past the record set in fiscal Kellogg’s overall sales rose
and a promise to pilots to boost 1997. about 0.6% in the third quarter,
RYANAIR HOLDINGS pay, Ryanair held to its target The revision came as Sony and comparable sales fell 0.8%,
0.8
full-year earnings target of €1.4 delivered a better-than-expected a narrower year-over-year de-
Carrier Sticks billion to €1.45 billion. second-quarter operating profit cline than in the first two quar-
To Guidance —Robert Wall Tuesday of ¥204.2 billion that ters of 2017. Profit rose 9.4%
0.4
was boosted by image sensors per share when adjusted for
Ryanair Holdings PLC sought SONY used in smartphones and the one-time events, topping analyst
to draw a line under weeks of mobile game “Fate/Grand Order.” expectations.
flight cancellations and pilot strife, Outlook for Year Chief Executive Kazuo Hirai “Across the globe, I see more 0
reporting a slight drop in net profit Aims for Milestone has made all of Sony’s electron- opportunities than I do chal-
from costs linked to the disruption ics businesses profitable. Sony lenges,” said Chief Executive
but sticking to full-year guidance. A key smartphone compo- has shifted its focus on renewed Steven Cahillane, who joined the –0.4
Ryanair in September and Oc- nent and a niche mobile game growth, with Mr. Hirai emphasiz- company about a month ago. 2015 2016 2017
tober canceled thousands of flights are guiding Sony Corp. toward ing a recurring revenue model. —Annie Gasparro Source: S&P Capital IQ
because of problems in scheduling the highest fiscal-year profit in —Takashi Mochizuki and Imani Moise THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL. NY Wednesday, November 1, 2017 | B7

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and Milpo, leader in Peru, Nexa has born: a global company made by people who
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B8 | Wednesday, November 1, 2017
INTERNATIONAL PROPERTY REPORT
Beijing’s Moves Ripple Across the Globe
Capital controls grow
tighter on investment
in commercial sector;
U.S. appears to slow
BY DOMINIQUE FONG
AND ESTHER FUNG
China’s controls on capital
outflow are putting a chill on
some global commercial real-
estate markets.
Since late 2016, policy mak-
ers in Beijing have been tight-
ening restrictions on overseas
investments and scrutinizing
some of the country’s most
ambitious deal makers, voicing
concerns that deals in certain
sectors were disguises for cap-
ital flight into havens.
In August, China’s powerful
State Council announced that
property investments abroad
were “restricted,” along with
deals in hotels, movie studios
and sports teams. The direc-
tive called for a move away
from “irrational” projects,
widely seen by real-estate ana-
lysts and brokers as a criti-
cism of the large foreign real-
estate investments made by
Chinese firms in recent years.
At the recent Communist
Party congress, where Presi-
dent Xi Jinping solidified his
control, officials reiterated
concerns about systemic risks
stemming from ill-considered
purchases abroad.
Outbound capital from
China into foreign properties
and development sites reached
a record $36.8 billion in 2016,
according to data firm Real
Capital Analytics. Volume for
the first three quarters of this
year was $19.7 billion. In the
U.S. real-estate market, capital
from China slowed to $5.1 bil-
lion in the same nine-month
period, down from a total of
$14.8 billion in 2016, said Real
Capital. These are deals that
are $10 million and greater.
The drop in foreign invest-
ments comes as commercial
real-estate markets in the U.S.
and Europe show signs of
slowing growth and years of
rising prices. Sales volume is
down in most major cities.
Real-estate executives and
lawyers in the U.S. said there
could be premature sales of
Chinese-led American projects.
Greenland Holdings Group,
a China state-owned property
PLOTS & PLOYS
BLACKSTONE
Assets Are Acquired
From Principal Unit
Blackstone Group LP pur-
chased a 4 million-square-foot
portfolio of warehouses, distribu-
tion centers and other industrial
property in a $500 million deal
that shows that the love affair
between the private-equity giant
and the hot logistics sector con-
tinues, people familiar with the
matter said.
Blackstone purchased the
property in Southern California
from Principal Real Estate Inves-
tors, the real-estate investment
arm of Des Moines-based Princi-
pal Financial Group, people said.
Blackstone has been a major
player in the logistics center
since the early years of the
post-2008 recovery, amassing
huge portfolios of property in
Europe and the U.S. Values of
distribution centers and ware-
houses have been rising steadily
as the economy strengthened
and demand has increased from
e-commerce companies.
—Peter Grant
MACERICH
Talks Held on Sale
Of Los Angeles Mall
Mall landlord Macerich Co.
said it was talking to possible
buyers of its Westside Pavilion,
a 755,000-square-foot mall in
west Los Angeles that had been
suffering from weaker occu-
pancy rates. The talks are with
potential buyers that might have
another use for the space.
No deal is imminent, but Art
Coppola, chief executive officer
at Macerich, said during the
third-quarter earnings call Tues-
day that the company has re-
ceived interest from a number
of possible buyers.
Mr. Coppola predicted Macer-
ich will no longer own the asset
within a year.
—Esther Fung
Construction in London, including the ‘Walkie Talkie’ building, which was bought this year by a Hong-Kong based company bucking a trend in overseas investments.
Capital Constrained
Chinese outbound capital
into properties, development
sites and portfolios
$10 million or greater
$40 billion
30
Global
20 U.S.
10
0 continue to be active in over-
2008 ’10 ’12 ’14
*Through 3Q
Source: Real Capital Analytics
THE WALL STREET JOURNAL.
developer with projects in Los
Angeles, New York and San
Francisco, is considering sell-
ing part of its 42-acre water-
front development site in south
San Francisco to Kilroy Realty
Corp., according to people fa-
miliar with the matter. Green-
land, alongside three other eq-
uity partners, purchased the
project in August 2016.
Greenland USA said its
strategy has long included a
CIC Keeps Buying Overseas Despite Curbs
BY PETER GRANT
AND LINGLING WEI
Late last year when the Chi-
nese government enacted mea-
sures to curb outbound invest-
ment, the restricted list
specifically included real estate.
But you would never know
it by looking at the foreign in-
vestments of China Invest-
ment Corp., the country’s sov-
ereign-wealth fund. Officials at
CIC, which has more than $200
billion of overseas assets, say
the government’s tightened
capital controls have had no
impact on the fund’s ability to
invest overseas—in property or
any other investment—because
that is the fund’s mandate.
Indeed, CIC is the buyer in
Europe’s biggest real-estate
deal so far in 2017: the €12.25
billion ($14.3 billion) purchase
of Logicor, one of the Conti-
nent’s largest logistics compa-
nies, from Blackstone Group
LP. That deal is expected to
close this year.
CIC this year also joined a
consortium led by TIAA Pri-
vate Investments and Antarc-
tica Capital to purchase In-
terPark, one of North
America’s largest owners of
parking facilities, used by
more than 16 million cars an-
nually. CIC also reported in a
July regulatory filing that it
has a 15.5% stake in real-estate
finance firm TPG RE Finance
Trust Inc., created by private-
equity firm TPG.
CIC’s continuing invest-
ments in real estate underscore
the likelihood that Chinese in-
vestors will continue to play a
major role in global real estate
despite recent concerns raised
by the government about out-
bound investment. Those con-
cerns are causing a short-term
reduction in Chinese deals and
the departure from the stage
by certain players that are get-
ting extra scrutiny, such as Da-
lian Wanda Group and An-
China
willingness to work with local
developers. “China’s capital
controls will have a certain
impact on immature compa-
nies, but it doesn’t mean it
will restrict or affect the de-
velopment path of companies
that have international per-
spective and core competen-
cies,” it said in a statement.
Investors that follow strict
mandates approved by the
Chinese government, such as
the sovereign-wealth fund
Chinese Investment Corp.,
’16 ’17* seas real-estate markets. CIC
bought a warehouse portfolio
in Europe from Blackstone
Group LP for €12.25 billion
($14 billion) in June. And
property investments in line
with Beijing’s foreign policy
initiatives, such as the “One
Belt One Road” program to re-
vive the ancient Silk Road
trading routes, have been
given the green light.
Real-estate companies
based in Hong Kong also ap-
pear to be less affected. Com-
panies based in Hong Kong
this year bought two high-pro-
file London buildings, nick-
CIC’s purchases, such as a stake in 1221 Sixth Ave. in New York, draw little public attention.
bang Insurance Group Co.
But approved players such
as CIC are expected to remain
active. “Ultimately China does
encourage foreign investment,
and it recognizes if Chinese
companies are to participate in
the global investment platform,
they must invest overseas,
whether it’s mergers and acqui-
sitions or real estate,” said Su-
sheela Rivers, head of the Asian
real-estate practice for law firm
DLA Piper, in an email.
CIC’s deal activity also
demonstrates the kind of real-
estate transactions that are
looked on favorably by Chi-
nese authorities. Unlike many
of the flashy deals pursued by
companies such as Anbang
and Wanda, most of CIC’s
deals have attracted little if
any public attention.
For example, CIC bought a
49% stake in a 50-story office
building named One New York
Plaza in New York’s financial
named the “Cheesegrater” and
“Walkie Talkie.”
But government policies
have pushed some of the coun-
try’s most highflying conglom-
erates, like Dalian Wanda
Group and Anbang Insurance
Group, to throttle back.
“One thing that’s concerned
the regulators, these rich en-
trepreneurs were leveraged to
the hilt, using investors’
money, using [People’s Repub-
lic of China] banks’ money,
and leaving all the risk to the
PRC investors and PRC banks,”
said Howard Zhang, a Beijing-
based partner at law firm Da-
vis Polk & Wardwell LLP.
“There’s a strong sentiment
among the regulators, as well
as among the general rank and
file who resent how rich these
people have become.”
It now takes longer to get
cross-border deals approved.
Chinese government approval
of such transactions usu-
ally takes at least three to
six months but now may be
delayed, Mr. Zhang said.
Hotel investments also have
dropped off. Chinese investors
remain wary of drawing the
district last year from Brook-
field Property Partners LP, ac-
cording to people familiar
with the matter. Brookfield,
which disclosed the deal but
not the identity of the buyer,
said the transaction valued the
property at about $1.4 billion.
Similarly, late last year the
Canada Pension Plan Invest-
ment Board announced that it
had sold a 45% stake in the of-
fice building at 1221 Sixth
Ave. in New York to “a global
institutional investor” for
$1.03 billion. That investor
was CIC, which was advised by
Invesco Real Estate, which
also co-invested a small
amount of capital alongside
CIC, according to a person fa-
miliar with the matter.
CIC’s purchase of Logicor
has been one of the fund’s
most high-profile and high-
priced deals. But the logistics
company, which has a portfolio
of 146.4 million square feet in
THE WALL STREET JOURNAL.
TOLGA AKMEN/AFP/GETTY IMAGES
kind of government scrutiny vestments in logistics, senior
that befell Wu Xiaohui, chair- care projects, health care and
man of Anbang, who made data centers have surged.
headlines after scooping up PGC Capital, a Shanghai-
Manhattan’s Waldorf Astoria based boutique investment
hotel in 2014 for $1.95 bil- bank, has invested around
lion. Mr. Wu was detained in £500 million ($658 million) in
June by authorities who are U.K. property since 2015. The
investigating corruption. His firm is redeveloping a former
whereabouts is unknown. Birmingham car dealership
To assuage concerns from into apartments. It is also eye-
foreign contractors and part- ing a land purchase in Warsaw
ners, some Chinese compa- to potentially build a complex
nies have made public state- of 3,000 housing units and
ments about their offshore high-end hotels to develop a
funds or their ability to raise new town.
money through U.S. dollar Denise Li, founder and chief
bond issuances. executive of PGC Capital, said
But increasingly, firms are that because the com-
toeing the party line. “Inves- pany’s planned projects include
tors with capital already out- infrastructure construction,
side of China will continue to they support Beijing’s One Belt
show strong interests allocat- One Road program to build Chi-
ing capital to U.S. real es- nese-backed ports, railways and
tate…though those in this cat- pipelines in dozens of countries
egory, even ostensively private from Europe and Africa to
companies, are progressively China. PGC Capital also says it
less free to ignore what goes helps Chinese state-owned com-
on in China,” said Andrew panies find overseas invest-
Levy, senior counsel at law ments for the same purpose.
firm DLA Piper. “It very much follows the
Companies have taken notice guiding opinions of the One
of Beijing’s list of “encouraged” Belt One Road initiative,” Ms.
overseas investments, and in- Li said.
Green Realty Corp., according
to a person familiar with the
matter.
SL Green confirmed in Oc-
tober that it is in negotiations
to sell a stake in the building
but it didn’t identify the buyer.
It isn’t CIC, according to a per-
son familiar with the matter.
CIC views property, among
other long-term assets such as
infrastructure, as an asset
class that can generate steady
cash flows for the fund amid a
slowly rebounding global
economy. Still, property re-
MICHAEL BUCHER/THE WALL STREET JOURNAL
mains a relatively minor asset
class for the fund.
CIC includes its property
investments in a broad cate-
gory that it calls “alternative
assets.” That category repre-
sented 37.24% of CIC’s total
overseas assets as of the end
of last year.
The real-estate section of
the 2016 report said: “We in-
vested in several high quality
and resilient core assets in
major real-estate markets in
17 countries, is considered to the world that could generate
be a mainstream real-estate stable long term return.”
asset that was fairly priced. The fund’s increased focus
Logistics is one of the hot- on foreign real estate also
test sectors in commercial comes as CIC is ratcheting up
property partly because of in- its direct-investment efforts as
creasing demand from e-com- opposed to relying on outside
merce companies. It is also a fund firms to manage its money.
politically acceptable sector in As it looks to beef up its
China, since it supports Bei- real-estate investments over-
jing’s “Belt and Road” pro- seas, the fund has had a par-
gram to build infrastructure ticular focus on the U.S. In
across Eurasia and swaths of May, CIC opened a New York
Africa. While the strong de- office, replacing what had
mand growth the European been its only overseas repre-
market has seen in recent sentative office, in Toronto.
years “is unsustainable,” re- But in recent months, Wash-
cent demand levels are “likely ington appears to be taking a
to be maintained,” according tougher approach toward acqui-
to a recent report by Green sitions of U.S. companies by
Street Advisors. Chinese firms. CIC officials have
CIC also hasn’t chased deals complained about what they say
the fund feels are overpriced. is an unfair review process by
For example, this year CIC was the Committee on Foreign In-
among the bidders considering vestment in the U.S. and called
buying a 49% stake in the New on U.S. authorities to improve
York office building at 1515 the transparency of the process
Broadway being sold by SL and avoid protectionism.
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B10 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL.

INTERNATIONAL PROPERTY REPORT | CHINA

Wanda Feels the Squeeze

BY PETER GRANT
Home Buyers Work
Around Controls
AND WAYNE MA
BY EMILY NONKO in the 12-month period ended
China’s Dalian Wanda March with a $31.7 billion
Group made its latest splash Global commercial real-es- share of the $153 billion in to-
in the London real-estate mar- tate participants keen to know tal sales, according to a report
ket this year by cutting a deal the impact of Beijing’s capital by the National Association of
to buy its second site in a 57- controls might not need to Realtors. In the previous 12-
acre redevelopment project look much further than the month period, the tally was
scheduled to open later this cat-and-mouse game that is $27.3 billion, the report said.
year. being played in the residential In Australia, about 90% of
But it wasn’t to be. Wanda’s markets for years. foreign demand is from China
plans for the Nine Elms proj- Chinese individuals have and there is little sign of it
ect near the new U.S. Embassy long faced limits to overseas ebbing, according to an Octo-
have become a victim of the investments equal to about ber report by Credit Suisse.
Chinese government’s controls $50,000. But for years, Chi- “There are now 1.6 million
on money flowing out of the nese home buyers have been U.S. dollar millionaires in
nation amid concern that a figuring out ways to work China,” the report said. “We
LUKE MACGREGOR/BLOOMBERG NEWS

flight of capital could shake around these restrictions. As a think these individuals domi-
confidence in China’s economy result, they have become a nate the buying of Aussie
and potentially weaken the major buying force in the U.S., property.”
yuan. U.K., Australia, Canada and Many people familiar with
Wanda did close on its deal other major global markets. the restrictions say they don’t
to purchase a 10.2-acre site To be sure, the Chinese affect China’s wealthiest,
from St. Modwen Properties government from time to time many of whom already hold
PLC for £470 million ($620.7 has tightened restrictions to diversified assets outside the
million). But just a few days curb outflows and often these country and have moved
later, Wanda was replaced in crackdowns have had short- enough money out of China,
the driver’s seat by another Prepping for construction at London’s Nine Elms Square, in which Wanda has transferred ownership. term effects on deal activity
Chinese group, including com- in global markets. Indeed,
peting developers Guangzhou ties and CC Land, haven’t of Jared Kushner, the son-in- for a £700 million develop- new regulations that went
R&F Properties Co. and CC made similar investments and, law of President Donald ment with twin towers, includ- into effect is year have had a
Chinese have faced
Land Holdings Ltd. therefore, haven’t seen the Trump who also is a White ing residential, office and re- damping effect on some mar- limits on investments
Dalian Wanda’s exit from same targets on their backs in House senior adviser, accord- tail space as well as a five-star kets, brokers in numerous U.S.
the deal is an example of the the recent government crack- ing to people familiar with the Wanda hotel. Work on that and European cities report.
abroad equal to
highflying real-estate and en- down on foreign investments. matter. site, named One Nine Elms, Starting late last year, the roughly $50,000.
tertainment company’s global Other companies that have In 2016, Wanda paid $3.5 has begun. Chinese government began im-
contraction. The company, come under scrutiny include billion for Hollywood produc- Wanda cut its deal to buy posing new capital controls on
controlled by Chinese billion- closely held HNA Group Co., tion company Legendary En- the second Nine Elms site in overseas commercial property
aire Wang Jianlin, also was which this year purchased a tertainment. The company’s June. But in August the com- investment. Institutional in- often to accounts in Hong
forced to sell other real-estate Park Avenue office tower in real-estate division has proj- pany said it had “transferred vestors wary of getting caught Kong or Singapore, to con-
and entertainment assets val- Manhattan for $2.21 billion. ects under way in major cities, its ownership of the Nine Elms in the crosshairs of officials in tinue buying overseas.
ued at about $16 billion in- But HNA has been bedeviled including London, Chicago, Square project to a third com- Beijing have become more se- Still, other brokers—espe-
cluding debt as it came under by questions of who owns the Sydney and Los Angeles, ac- pany.” lective in their investments cially those who deal with
scrutiny from regulators. company and how funds move cording to its website. China observers say they and are steering clear of lower priced properties—say-
Mr. Wang couldn’t be within the group’s labyrinthine Chinese officials began im- saw no sign from the Commu- splashy deals. ing the most recent intensifi-
reached to comment. However, structure. In July, it unveiled a posing controls on what they nist Party’s weeklong congress But market participants say cation of restrictions are hav-
he recently praised Chinese new ownership structure in an called “irrational” overseas in- last month that the govern- these slowdowns typically ing an impact.
President Xi Jinping’s opening effort to answer those ques- vestments in late 2016. A few ment planned to ease up on don’t last. “People will find Mark McLaughlin, chief ex-
speech at the Communist tions. months later, Wanda’s efforts companies that aren’t con- alternatives,” said Dehlan ecutive of Pacific Union Inter-
Party congress. Meanwhile, Anbang Insur- to purchase Dick Clark Produc- forming with its broader for- Gwo, a member of Realogics national Inc., said that across
The stumble of Dalian ance Group Co., which pur- tions, which produces the eign investment strategy. Sotheby’s International Re- California, sales volume from
Wanda illustrates the vulnera- chased the Waldorf Astoria Golden Globes, was stymied by “I would think that they’ll alty’s Asia Services Group, in a mainland Chinese buyers in
bility of real-estate companies hotel in New York in 2015 for the company’s inability to be paying even more attention recent report. “I think we will the first half of 2017 is 50%
that have strayed away from $1.95 billion, also has slowed move money out of China. to anything looking like a get- see more and more creative less than the prior year. His
their original businesses and down due to government pres- Wanda made its first in- rich-quick scheme,” said Mar- ways to move money out of firm, he said, has started
made big, flashy investments sure. In the spring, it backed vestment in the Nine Elms re- shall Meyer, professor emeri- the mainland.” searching for “the next inter-
or paid what many perceived out of a plan to develop a $7.5 development project in the tus at the University of Chinese buyers remained national buyer,” kicking off
to be top dollar. Others, like billion tower in Midtown Man- Wandsworth section of Lon- Pennsylvania’s Wharton the top foreign buyer of resi- digital marketing campaigns in
Hong Kong-listed R&F Proper- hattan with the family don in 2013, purchasing a site School. dential real estate in the U.S. cities such as Mumbai.

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THE WALL STREET JOURNAL. * * Wednesday, November 1, 2017 | B11

BIGGEST 1,000 STOCKS

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
The following explanations apply to NYSE, NYSE s-New 52-week high. Ecopetrol EC 11.09 0.10 ING Groep ING 18.52 -0.03 MotorolaSolutions MSI 90.54 0.17 s RoyalDutchB RDS.B 65.36 0.94 Unilever UN 57.96 1.03 CDW CDW 70.00 0.69
Arca, NYSE MKT and Nasdaq Stock Market listed t-New 52-week low. EdisonInt EIX 79.95 0.36 Invesco IVZ 35.79 -0.25 NRG Energy NRG 25.00 0.02 s SAP SAP 114.20 0.40 Unilever UL 56.65 1.13 CH Robinson CHRW 78.53 0.18
securities. Prices are composite quotations that dd-Indicates loss in the most recent four EdwardsLife EW 102.23 0.60 IDEX IEX 128.21 0.25 NTTDoCoMo DCM 24.31 0.04 S&P Global SPGI 156.47 0.22 UnionPacific UNP 115.79 -0.58 CME Group CME 137.17 1.06
include primary market trades as well as trades quarters. EmersonElectric EMR 64.46 -2.88 IllinoisToolWks ITW 156.52 -0.83 s NVR NVR 3281.37 41.37 SINOPECShanghai SHI 60.50 -0.27 UnitedContinental UAL 58.48 -0.56 CSX CSX 50.43 -1.17
reported by Nasdaq OMX BXSM (formerly FD-First day of trading. EnbridgeEnPtrs EEP 15.08 0.06 Infosys INFY 14.85 0.16 NationalGrid NGG 61.05 0.28 SK Telecom SKM 26.14 0.63 UnitedMicro UMC 2.60 0.01 CadenceDesign CDNS 43.16 0.26
Boston), Chicago Stock Exchange, CBOE, National h-Does not meet continued listing Enbridge ENB 38.46 -0.12 Ingersoll-Rand IR 88.60 -0.28 NatlOilwell NOV 34.19 -0.09 SLGreenRealty SLG 95.68 1.15 UPS B UPS 117.53 -0.56 Carlyle CG 22.05 -0.45
Stock Exchange, ISE and BATS. standards ECA 11.70 0.42 NatlRetailProp NNN 40.18 ... s Salesforce.com CRM 102.34 UnitedRentals URI 141.48 -2.11 s CboeGlobalMkts CBOE 113.06 1.20
Encana Ingredion INGR 125.35 0.84 1.64
The list comprises the 1,000 largest companies lf-Late filing NewOrientalEduc EDU 83.24 0.49
EnelAmericas ENIA 10.60 0.01 ICE ICE 66.10 0.84 Sanofi SNY 47.28 -0.15 US Bancorp USB 54.38 0.12 Celgene CELG 100.97 ...
based on market capitalization. q-Temporary exemption from Nasdaq
Underlined quotations are those stocks with requirements. EnelChile ENIC 5.89 -0.04 InterContinentl IHG 55.59 0.20 NY CmntyBcp NYCB 12.56 0.02 s SantanderConUSA SC 16.64 -0.05 US Steel X 25.32 -1.14 Cerner CERN 67.52 1.06
large changes in volume compared with the t-NYSE bankruptcy EnelGenChile EOCC 25.90 -1.07 IBM IBM 154.06 -0.30 NewellBrands NWL 40.78 0.32 Sasol SSL 29.11 0.26 UnitedTech UTX 119.76 -0.07 CharterComms CHTR 334.17 10.19
issue’s average trading volume. v-Trading halted on primary market. EnergyTrfrEquity ETE 17.75 0.06 IntlFlavors IFF 147.42 0.65 NewfieldExpln NFX 30.79 0.70 t Scana SCG 43.14 -2.77 UnitedHealth UNH 210.22 0.83 CheckPointSftw CHKP 117.71 1.22
Boldfaced quotations highlight those issues vj-In bankruptcy or receivership or being EnergyTransfer ETP 17.41 0.11 IntlPaper IP 57.27 0.08 NewmontMining NEM 36.16 -0.07 Schlumberger SLB 64.00 -0.11 UniversalHealthB UHS 102.70 0.42 ChinaLodging HTHT 133.89 5.23
whose price changed by 5% or more if their reorganized under the Bankruptcy Code, Entergy ETR 86.26 -0.13 Interpublic IPG 19.25 -0.06 NextEraEnergy NEE 155.07 -0.29 SchwabC SCHW 44.84 -0.01 UnumGroup UNM 52.04 -0.36 CincinnatiFin CINF 70.17 -0.24
previous closing price was $2 or higher. or securities assumed by such companies. EnterpriseProd EPD 24.50 -0.30 InvitationHomes INVH 22.57 -0.30 NielsenHoldings NLSN 37.07 -0.59 ScottsMiracleGro SMG 99.62 0.81 VEREIT VER 7.89 0.07 Cintas CTAS 149.04 -0.18
Equifax EFX 108.53 -0.48 IronMountain IRM 40.00 -0.11 Nike NKE 54.99 -0.28 SealedAir SEE 44.23 0.13 VF VFC 69.65 -0.26 CiscoSystems CSCO 34.15 0.11
EquityLife ELS 88.48 0.72 IsraelChemicals ICL 4.17 0.02 NiSource NI 26.37 0.12 SemicondctrMfg SMI 7.59 0.30 Visa V 109.98 -0.06 CitrixSystems CTXS 82.61 0.22
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and EquityResdntl EQR 67.26 0.24 NobleEnergy NBL 27.87 -0.40 VailResorts MTN 229.02 2.65 s CGNX 123.15 -0.51
changes in the closing prices from 4 p.m. the previous day. ItauUnibanco ITUB 12.81 -0.32 SempraEnergy SRE 117.50 0.05 Cognex
EssexProp ESS 262.43 1.63 JPMorganChase JPM 100.61 -0.80 Nokia NOK 4.89 0.07 SensataTech ST 48.91 0.08 Vale VALE 9.79 -0.03 s CognizantTech CTSH 75.67 0.16
EsteeLauder EL 111.81 0.96 JacobsEngineering JEC 58.21 -0.25 NomuraHoldings NMR 5.64 -0.12 ServiceCorp SCI 35.46 0.21 s ValeroEnergy VLO 78.89 0.49 Coherent COHR 262.71 4.79
Tuesday, October 31, 2017 Net Net EverestRe RE 237.45 -1.67 JamesHardie JHX 15.39 ... t Nordstrom JWN 39.65 -0.35 ServiceMaster SERV 47.11 2.86 Vantiv VNTV 70.00 0.77 Comcast A CMCSA 36.03 -0.47
Net Stock Sym Close Chg Stock Sym Close Chg EversourceEner ES 62.64 0.15 JanusHenderson JHG 34.75 0.04 NorfolkSouthern NSC 131.42 -1.38 ServiceNow NOW 126.37 1.32 VarianMed VAR 104.19 0.67 CommerceBcshrs CBSH 58.16 0.53
Stock Sym Close Chg s Exelon EXC 40.21 -0.03 J&J JNJ 139.41 -0.59 NorthropGrumman NOC 295.53 -0.84 ShawComm B SJR 22.84 0.26 Vedanta VEDL 20.60 -0.40 CommScope COMM 32.14 0.14
BB&T BBT 49.24 0.13 CenovusEnergy CVE 9.72 0.06 ExtraSpaceSt EXR 81.59 0.50 41.39 -0.75 Novartis NVS 82.58 0.84 VeevaSystems VEEV 60.94 1.19 Copart CPRT 36.29 0.25
JohnsonControls JCI SherwinWilliams SHW 395.15 0.90
BCE BCE 46.16 -0.31 Centene CNC 93.67 -0.14 ExxonMobil XOM 83.35 -0.19 NovoNordisk NVO 49.79 -0.07 VTR 62.75 -0.50 CoStarGroup CSGP 295.75 1.25
NYSE BHPBilliton BHP 40.98 0.19 CenterPointEner CNP 29.58 0.11 FMC 92.86 0.51
JonesLangLaSalle JLL 129.49 2.85
NUE 57.83 -0.64
ShinhanFin SHG 45.27 -0.52 Ventas
COST 161.08 0.85
FMC JuniperNetworks JNPR 24.83 -0.09 Nucor Shopify SHOP 99.49 -9.87 Verizon VZ 47.87 0.04 Costco
s ABB ABB 26.13 0.75 BHPBilliton BBL 36.32 0.30 CentraisElBras EBR 6.71 -0.08 FactSet FDS 189.87 1.75 KAR Auction KAR 47.33 0.42 NuSTAREnergy NS 33.30 -0.65 VistraEnergy VST 19.44 0.87 Ctrip.com CTRP 47.89 0.88
SimonProperty SPG 155.33 -2.41
t AES AES 10.63 0.01 s BP BP 40.67 1.05 CenturyLink CTL 18.99 0.59 t FederalRealty FRT 120.52 -0.46 OGE Energy OGE 36.84 -0.06 VMW 119.69 -0.24 DISH Network DISH 48.54 0.15
KB Fin KB 52.51 -0.09 SmithAO AOS 59.20 0.02 VMware
AFL 83.89 0.06 BRF BRFS 13.47 0.10 Chemours CC 56.61 -0.38 FedEx FDX 225.81 -1.91 KKR 20.05 ONEOK OKE 54.27 0.23 VornadoRealty VNO 74.86 2.48 DentsplySirona XRAY 61.07 -0.21
Aflac KKR ... Smith&Nephew SNN 38.26 0.25
33.65 0.11 BT Group BT 17.51 -0.05 Chevron CVX 115.89 1.50 s Ferrari RACE 119.68 2.50 14.39 0.21 OccidentalPetrol OXY 64.57 -0.39 VoyaFinancial VOYA 40.16 -0.17 DiamondbackEner FANG 107.16 0.96
AT&T T KT KT Smucker SJM 106.05 4.14
AbbottLabs ABT 54.23 -0.06 BWX Tech BWXT 59.92 -0.34 ChinaEastrnAir CEA 25.48 -0.27 FiatChrysler FCAU 17.35 0.10 KSCitySouthern KSU 104.22 -0.75 Och-Ziff OZM 3.80 -0.09 VulcanMaterials VMC 121.75 -0.22 DiscoveryComm B DISCB 23.65 -0.35
Snap SNAP 15.34 -0.34
ABBV 90.25 -0.71 BakerHughes BHGE 31.43 -0.07 ChinaLifeIns LFC 16.67 0.07 FibriaCelulose FBR 15.94 0.21 s Olin OLN 36.53 0.80 WBC 147.57 1.18 t DiscoveryComm A DISCA 18.88 -0.10
AbbVie Kellogg K 62.53 3.66 SnapOn SNA 157.78 0.69 WABCO
ACN 142.36 -0.93 Ball BLL 42.93 0.29 ChinaMobile CHL 50.45 0.13 s FidelityNatlFin FNF 37.42 0.27 t OmegaHealthcare OHI 28.86 -2.11 WEC Energy WEC 67.39 -0.08 t DiscoveryComm C DISCK 17.81 -0.12
Accenture KeyCorp KEY 18.25 0.02 SOQUIMICH SQM 59.74 -0.05
AcuityBrands AYI 167.20 1.72 BancoBilbaoViz BBVA 8.74 0.13 ChinaPetrol SNP 73.64 -0.29 FNFV Group FNFV 17.25 0.05 s t Omnicom OMC 67.19 -0.33 WPC 68.15 -0.23 DollarTree DLTR 91.25 -0.19
KeysightTechs KEYS 44.67 0.42 s Sony SNE 43.41 4.56 W.P.Carey
ADNT 84.36 0.86
BancodeChile BCH 92.12 -0.45 ChinaSoAirlines ZNH 36.98 -0.54 FidelityNtlInfo FIS 92.76 -3.31 Oracle ORCL 50.90 0.22 WAB 76.50 -0.06 E*TRADE ETFC 43.59 0.12
Adient KilroyRealty KRC 71.23 0.93 Southern SO 52.20 0.11 Wabtec
AdvanceAuto AAP 81.74 -0.26 BancoMacro BMA 125.92 -1.34 ChinaTelecom CHA 50.37 0.32 58.com WUBA 67.17 2.38 Orange ORAN 16.40 -0.01 WMT 87.31 0.36 EastWestBancorp EWBC 59.84 -0.30
KimberlyClark KMB 112.51 1.24 SoCopper SCCO 42.95 0.18 Wal-Mart
6.16 0.01
BcoSantChile BSAC 31.28 -0.33 ChinaUnicom CHU 14.13 -0.10 s FirstAmerFin FAF 54.42 1.25 OrbitalATK OA 132.93 -0.07 WasteConnections WCN 70.67 -0.41 eBay EBAY 37.64 0.64
AdvSemiEngg ASX KimcoRealty KIM 18.16 -0.27 SouthwestAirlines LUV 53.86 -0.87
BancoSantander SAN 6.74 0.01 t Chipotle CMG 271.90 3.20 FirstData FDC 17.81 0.01 Orix IX 85.82 -0.35 WM 82.17 0.30 ElbitSystems ESLT 148.62 1.71
Aegon AEG 5.87 0.04 KinderMorgan KMI 18.11 0.01 SpectraEnerPtrs SEP 43.12 0.33 WasteMgt
s AerCap BanColombia CIB 37.75 -0.28 Chubb CB 150.82 -2.07 FirstRepBank FRC 97.40 -0.08 s Oshkosh OSK 91.56 1.99 WAT 196.05 -0.17 ElectronicArts EA 119.60 2.02
AER 52.64 0.12 Knight-Swift KNX 41.45 0.46 SpectrumBrands SPB 109.92 1.80 Waters
BankofAmerica BAC 27.39 -0.21 ChunghwaTelecom CHT 34.02 0.08 FirstEnergy FE 32.95 0.28 s OwensCorning OC 82.69 1.20 WSO 166.57 1.34 Equinix EQIX 463.50 3.77
Aetna AET 170.03 -1.20 Kohl's KSS 41.76 0.26 s SpiritAeroSys SPR 80.10 -0.31 Watsco
BankofMontreal BMO 76.61 -0.67 Church&Dwight CHD 45.17 0.36 FleetCorTech FLT 165.27 1.57 PG&E PCG 57.77 0.50 69.90 0.24 Ericsson ERIC 6.25 0.07
AffiliatedMgrs AMG 186.50 1.00 KoninklijkePhil PHG 40.79 0.53 Sprint S 6.54 0.20 Wayfair W
BankNY Mellon BK 51.45 -0.20 Cigna CI 197.22 -0.50 Flowserve FLS 44.07 0.19 PLDT PHI 33.06 0.40 s WellCareHealth WCG 197.74 16.56 Exelixis EXEL 24.79 -1.29
AgilentTechs A 68.03 0.54 KoreaElcPwr KEP 17.62 0.14 s Square SQ 37.19 1.44
BkNovaScotia BNS 64.52 -0.09 CimarexEnergy XEC 116.93 -0.21 Fluor FLR 43.09 0.10 PNC Fin PNC 136.79 -0.37 WellsFargo WFC 56.14 0.29 Expedia EXPE 124.66 4.45
AgnicoEagle AEM 44.63 -0.60 Kroger KR 20.70 0.06 StanleyBlackDck SWK 161.55 -0.08
Barclays BCS 9.84 0.18 Citigroup C 73.50 -0.28 FomentoEconMex FMX 87.75 -0.59 POSCO PKX 72.98 -0.50 HCN 66.96 -0.25 ExpeditorsIntl EXPD 58.38 -0.19
Agrium AGU 108.92 0.57 Kyocera KYO 66.80 -2.45 StateStreet STT 92.00 -1.29 Welltower
Bard CR BCR 327.07 0.20 CitizensFin CFG 38.01 0.11 FordMotor F 12.27 0.17 PPG Ind PPG 116.24 0.08 WestPharmSvcs WST 101.40 0.05 ExpressScripts ESRX 61.29 -0.06
AirProducts APD 159.43 -0.52 LATAMAirlines LTM 13.58 -0.06 Statoil STO 20.31 -0.23
BarrickGold ABX 14.45 -0.24 Clorox CLX 126.53 1.21 ForestCIty A FCE.A 24.63 0.12 PPL PPL 37.56 0.07 WestarEnergy WR 53.48 0.05 F5Networks FFIV 121.27 1.64
AlaskaAir ALK 66.03 -0.43 L Brands LB 43.04 0.21 s Steris STE 93.33 1.20
BaxterIntl BAX 64.47 -0.10 Coca-Cola KO 45.98 0.12 Fortis FTS 36.83 -0.16 PVH PVH 126.81 -0.55 WestAllianceBcp WAL 55.80 0.02 s Facebook FB 180.06 0.19
Albemarle ALB 140.89 1.38 LG Display LPL 12.99 ... STMicroelec STM 23.57 0.02
BectonDickinson BDX 208.67 0.02 Coca-Cola Euro CCE 40.86 0.51 Fortive FTV 72.26 -0.20 PackagingCpAm PKG 116.27 0.70 WesternGasEquity WGP 39.55 0.54 Fastenal FAST 46.97 0.18
Alcoa AA 47.78 0.36 LINE LN 41.51 -0.29 Stryker SYK 154.87 -0.50
Berkley WRB 68.58 -0.17 Coca-Cola Femsa KOF 68.44 0.05 FortBrandsHome FBHS 66.06 -0.09 PaloAltoNtwks PANW 147.20 -0.37 WesternGasPtrs WES 47.89 0.29 FifthThirdBncp FITB 28.90 -0.11
AlexandriaRealEst ARE 123.96 2.24 L3 Tech LLL 187.18 -0.59 SumitomoMits SMFG 8.06 -0.08
BerkHathwy A BRK.A 280470-1470.00 Colgate-Palmolive CL 70.45 1.25 Franco-Nevada FNV 79.44 -0.50 ParkHotels PK 28.79 0.63 WesternUnion WU 19.86 0.14 FirstSolar FSLR 54.82 -5.61
s Alibaba BABA 184.89 3.31 LabCpAm LH 153.71 -0.46 SunCommunities SUI 90.26 0.26
BerkHathwy B BRK.B 186.94 -0.91 t ColonyNorthStar CLNS 12.28 -0.19 FranklinRscs BEN 42.13 -0.41 ParkerHannifin PH 182.61 0.67 WestlakeChem WLK 84.91 FISV 129.43 -0.02
Alleghany Y 566.22 1.26 s LambWeston LW 50.99 0.61 SunLifeFinancial SLF 38.93 -0.05 -0.72 Fiserv
BerryGlobal BERY 59.45 -0.35 Comerica CMA 78.57 -0.25 Freeport-McMoRan FCX 13.98 0.04 ParsleyEnergy PE 26.60 0.87 WestpacBanking WBK 25.38 -0.23 s Flex FLEX 17.80 -0.07
Allegion ALLE 83.39 1.42
BBY 55.98 0.60 LasVegasSands LVS 63.38 1.92 SuncorEnergy SU 33.96 0.10
BestBuy SABESP SBS 9.12 -0.01 FreseniusMed FMS 48.38 -0.04 Pearson PSO 9.28 -0.10 WRK 61.33 1.01 FlirSystems FLIR 46.82 0.07
Allergan AGN 177.23 -1.41 Bio-RadLab A BIO 219.79 0.78 ConagraBrands CAG 34.16 0.63 Lazard LAZ 47.54 0.16 SunTrustBanks STI 60.21 -0.14 WestRock
t GGP GGP 19.46 -0.49 PembinaPipeline PBA 33.07 -0.01 s Weyerhaeuser WY 35.91 0.30 Fortinet FTNT 39.41 -0.09
AllianceData ADS 223.73 -0.74 45.35 -0.60 ConchoRscs CXO 134.21 1.41 Lear LEA 175.59 2.30 SynchronyFin SYF 32.62 0.02
BlackKnight BKI s Gallagher AJG 63.33 0.59 Pentair PNR 70.46 0.36 WheatonPrecMetals WPM 20.74 -0.47 Gaming&Leisure GLPI 36.54 0.38
AllianceBernstein AB 25.85 -0.25 10.94 -0.15 ConocoPhillips COP 51.15 -0.24 Leggett&Platt LEG 47.26 0.06 Syngenta SYT 92.25 0.13
AlliantEnergy LNT 43.26 0.08
BlackBerry BB Gap GPS 25.99 -0.09 PepsiCo PEP 110.23 0.58 Whirlpool WHR 163.93 2.27 s Garmin GRMN 56.61 0.12
BlackRock BLK 470.83 -1.46 ConEd 86.05 0.15 Leidos LDOS 62.52 0.58 Sysco SYY 55.62 0.93
s AllisonTransm ALSN 42.49
ED Gartner IT 125.31 0.93 PerkinElmer PKI 72.32 0.49 Williams WMB 28.50 -0.04 GileadSciences GILD 74.96 -1.03
0.19 BlackstoneGroup BX 33.29 0.24 s ConstBrands A STZ 219.09 6.09 Lennar A LEN 55.67 -0.01 TAL Education TAL 27.50 0.32
Gazit-Globe GZT 9.42 -0.10 Perrigo PRGO 80.99 -2.71 WilliamsPartners WPZ 37.04 -0.29 Goodyear GT 30.59 -0.43
Allstate ALL 93.86 -0.21 BoardwalkPipe BWP 14.02 -0.18 s ConstBrands B STZ.B 218.59 5.07 Lennar B LEN.B 47.95 0.29 s TE Connectivity TEL 90.97 1.47
GeneralDynamics GD 202.98 -3.19 PetroChina PTR 65.50 -0.10 Wipro WIT 5.36 0.12 s Grifols GRFS 23.65 1.20
AllyFinancial ALLY 26.13 0.02 BA 257.98 -1.27 ContinentalRscs CLR 40.71 0.26 LennoxIntl LII 191.13 -0.01 Telus TU 36.22 -0.30
Boeing t GeneralElec GE 20.16 -0.25 PetroleoBrasil PBR 10.65 0.05 WooriBank WF 43.90 -1.00 HD Supply HDS 35.39 0.14
AlticeUSA ATUS 23.68 0.16 BorgWarner BWA 52.72 0.33 COO 240.26 -2.49 LeucadiaNatl LUK 25.30 -0.02 Ternium TX 31.01 -0.65
Cooper GeneralMills GIS 51.92 1.26 PetroleoBrasilA PBR.A 10.25 0.01 Wyndham WYN 106.85 1.11 Hasbro HAS 92.59 -2.31
Altria MO 64.22 0.17 BostonProperties BXP 121.18 0.37 GLW 31.31 0.05 Level3Comms LVLT 53.63 0.93 TIM Part TSU 18.44 0.36
Corning GeneralMotors GM 42.98 -0.39 Pfizer PFE 35.06 -0.09 XPO Logistics XPO 69.35 0.30 HenrySchein HSIC 78.60 0.90
AlumofChina ACH 19.92 0.72 BostonScientific BSX 28.14 -0.02 COTY 15.40 0.43 LibertyProperty LPT 42.88 0.07 TJX TJX 69.80 0.45
Coty Genpact G 30.45 0.25 PhilipMorris PM 104.64 -0.06 XcelEnergy XEL 49.52 0.23 Hologic HOLX 37.85 0.64
Ambev ABEV 6.33 -0.02 Braskem BAK 31.97 -0.59 BAP 209.44 -0.25 EliLilly LLY 81.94 -0.71 s TableauSoftware DATA 81.09 1.56
Credicorp GenuineParts GPC 88.23 0.19 Phillips66 PSX 91.08 0.06 XRX 30.31 0.08 JBHunt JBHT 106.39 1.13
s Ameren AEE 61.99 0.16 Bristol-Myers BMY 61.66 0.82 15.72 -0.20 LincolnNational LNC 75.78 -0.62 TaiwanSemi TSM 42.33 0.20 Xerox
CreditSuisse CS Gerdau GGB 3.31 -0.06 PinnacleFoods PF 54.42 0.76 s Xylem XYL 66.53 1.89 HuntingtonBcshs HBAN 13.80 0.03
AmericaMovil AMX 17.12 0.14 64.40 -0.22 CrestwoodEquity CEQP 25.00 1.20 LionsGate A LGF.A 29.02 -0.03 TargaResources TRGP 41.50 0.21
BritishAmTob BTI Gildan GIL 30.60 -0.45 PinnacleWest PNW 87.71 0.18 YPF YPF 24.56 0.09 s IAC/InterActive IAC 129.05 1.82
AmericaMovil A AMOV 16.86 0.10 s BroadridgeFinl BR 85.92 0.28 CrownCastle CCI 107.08 0.97 LionsGate B LGF.B 27.66 ... Target TGT 59.04 -0.51
GlaxoSmithKline GSK 36.43 -0.26 PioneerNatRscs PXD 149.67 3.41 YumBrands YUM 74.45 -0.51 IdexxLab IDXX 166.17 1.76
AEP AEP 74.41 0.24 BrookfieldMgt BAM 41.94 -0.08 CrownHoldings CCK 60.17 0.90 s s LiveNationEnt LYV 43.78 0.67 TataMotors TTM 32.76 -0.57
GlobalPayments GPN 103.95 2.07 PlainsAllAmPipe PAA 19.97 0.19 YumChina YUMC 40.35 -0.08 IHSMarkit INFO 42.61 0.16
AmericanExpress AXP 95.52 0.45 BrookfieldInfr BIP 42.37 -0.10 Cullen/Frost CFR 98.50 -0.49 s LloydsBanking LYG 3.69 0.01 TechnipFMC FTI 27.39 0.35
GoDaddy GDDY 46.70 0.38 PlainsGP PAGP 20.40 0.20 ZTO Express ZTO 15.99 0.06 INC Research INCR 57.15 0.45
AmericanFin AFG 105.49 0.13 Brown&Brown BRO 49.84 0.35 CMI 176.88 -3.47 LockheedMartin LMT 308.16 -0.47 TeckRscsB TECK 20.44 -0.32
Cummins Goldcorp GG 13.06 -0.32 PolarisIndustries PII 118.43 1.18 ZayoGroup ZAYO 36.06 0.23 s IPG Photonics IPGP 212.91 5.29
AIG AIG 64.61 -0.17 Brown-Forman A BF.A 57.33 1.50 DTE Energy DTE 110.46 0.12 Loews L 49.51 0.05 POT 19.47 0.16 TelecomArgentina TEO 32.61 0.04
GoldmanSachs GS 242.48 1.59 Potash ZimmerBiomet ZBH 121.62 0.27 IRSA Prop IRCP 56.00 ...
AmerTowerREIT AMT 143.67 0.80 Brown-Forman B BF.B 57.02 1.31 DXC 91.52 0.34 Lowe's LOW 79.95 0.54 PX 146.12 -1.33 TelecomItalia TI 8.61 -0.04
DXC Tech Graco GGG 131.79 1.04 Praxair Zoetis ZTS 63.82 0.58 IcahnEnterprises IEP 55.19 0.06
AmerWaterWorks AWK 87.76 ... BuckeyePtrs BPL 53.11 0.90 s DHR 92.27 0.46 LyondellBasell LYB 103.53 -2.47 PrincipalFin PFG 65.85 -0.67 TelecomItalia A TI.A 7.11 0.10
Danaher Grainger GWW 197.70 -1.69 Icon ICLR 118.86 0.24
Amerigas APU 45.25 0.21 Bunge BG 68.78 -0.49 DRI 82.27 -0.50 GreatPlainsEner GXP 32.83 -0.02 M&T Bank MTB 166.77 -0.13 86.34 0.07 s TeledyneTech TDY 169.96 1.08
Ameriprise AMP 156.54 -1.76 BurlingtonStores BURL 93.89 4.89
Darden
DVA 60.74 -0.33 MGM Resorts MGM 31.35 0.78
Procter&Gamble PG
Teleflex TFX 236.98 0.22
NASDAQ Illumina ILMN 205.19 1.38
DaVita GpoAvalAcciones AVAL 8.32 -0.05 Progressive PGR 48.65 -0.01 Incyte INCY 113.25 -0.99
AmerisourceBrgn ABC 76.95 0.02 CBD 23.23 -0.18 DE 132.88 0.58 MPLX MPLX 35.26 -0.04 TelefonicaBras VIV 15.40 0.08 AGNC 20.13 -0.18
CBD Pao Deere GpFinSantandMex BSMX 8.42 -0.06 Prologis PLD 64.58 0.50 AGNC Invt s Intel INTC 45.49 1.12
Ametek AME 67.49 -0.14 CBRE Group CBG 39.32 0.08 DellTechnologies DVMT 82.77 -0.38 21.89 -0.45 MSCI MSCI 117.36 -0.29 PrudentialFin PRU 110.46 -1.14 Telefonica TEF 10.41 0.14 s Ansys ANSS 136.71 0.91 s
GrupoTelevisa TV InteractiveBrkrs IBKR 54.02 0.84
Amphenol APH 87.00 1.24 CBS A CBS.A 56.91 -0.58 DelphiAutomotive DLPH 99.38 1.13 GuidewireSoftware GWRE 79.98 2.58 Macerich MAC 54.60 -1.10 PUK 49.03 0.28 TelekmIndonesia TLK 30.04 0.04 s ASML ASML 180.75 2.82
Prudential Intuit INTU 151.02 -0.43
AnadarkoPetrol APC 49.37 0.68 CBS B CBS 56.12 ... DeltaAir DAL 50.03 -0.30 HCA Healthcare HCA 75.65 -0.53 MacquarieInfr MIC 69.55 -0.41 s PublicServiceEnt PEG 49.20 -0.35 Tenaris TS 27.25 0.14 s Abiomed ABMD 192.92 13.44 IntuitiveSurgical ISRG 375.36 -0.73
Andeavor ANDV 106.24 1.32 s CF Industries CF 37.98 0.61 DeutscheBank DB 16.27 0.01 HCP HCP 25.84 0.24 t Macy's M 18.76 -0.08 PublicStorage PSA 207.25 -1.50 s Teradyne TER 42.89 0.20 ActivisionBliz ATVI 65.49 0.19 IonisPharma IONS 57.11 -1.20
AB InBev BUD 122.78 1.97 CGI Group GIB 53.14 -0.64 DevonEnergy DVN 36.90 0.90 HDFC Bank HDB 92.30 1.62 MagellanMid MMP 68.71 -0.06 s PulteGroup PHM 30.23 0.44 TevaPharm TEVA 13.80 0.25 AdobeSystems ADBE 175.16 -0.87 JD.com JD 37.52 0.10
AnnalyCap NLY 11.46 -0.10 CIT Group CIT 46.62 -0.45 Diageo DEO 137.01 0.45 HPQ 21.55 0.16 MagnaIntl MGA 54.55 0.09 QuantaServices PWR 37.73 -0.33 Textron TXT 52.74 0.14 AkamaiTech AKAM 52.25 -0.21
HP JackHenry JKHY 110.13 -0.41
AnteroResources AR 19.40 0.44 CMS Energy CMS 48.37 0.57 DigitalRealty DLR 118.44 0.85 HSBC 48.77 0.03 Manpower MAN 123.28 1.43 t 24.90 2.71 ThermoFisherSci TMO 193.83 1.81 AlexionPharm ALXN 119.66 -8.15
HSBC Qudian QD JazzPharma JAZZ 141.53 5.22
Anthem ANTM 209.21 -0.25 s CNA Fin CNA 54.13 0.57 DiscoverFinSvcs DFS 66.53 0.02 Halliburton HAL 42.74 -0.19 ManulifeFin MFC 20.10 -0.12 QuestDiag DGX 93.78 ... ThomsonReuters TRI 46.84 -0.18 AlignTech ALGN 238.98 3.41 JetBlue JBLU 19.15 0.21
Aon AON 143.43 0.34 s CNOOC CEO 136.70 2.40 Disney DIS 97.81 -0.23 Hanesbrands HBI 22.50 -0.16 MarathonOil MRO 14.22 0.06 s QuintilesIMS Q 108.10 0.93 s ThorIndustries THO 136.22 1.54 Alkermes ALKS 48.76 -0.13 KLA Tencor KLAC 108.89 1.54
Apache APA 41.37 0.56 CPFLEnergia CPL 16.75 0.05 DolbyLab DLB 57.94 0.26 HarleyDavidson HOG 47.34 0.14 s MarathonPetrol MPC 59.74 0.68 s RELX RENX 22.60 0.19 3M MMM 230.19 -0.83 AlnylamPharm ALNY 121.84 -1.12 KraftHeinz KHC 77.33 2.06
ApartmtInv AIV 43.98 -0.22 CRH CRH 37.52 0.23 DollarGeneral DG 80.84 -0.39 s Harris HRS 139.32 3.68 Markel MKL 1084.30 -12.72 s RELX RELX 23.39 0.18 Tiffany TIF 93.62 0.07 Alphabet A GOOGL 1033.04 -0.09 s LKQ LKQ 37.69 1.17
ApolloGlobalMgmt APO 31.58 0.13 CVS Health CVS 68.53 0.08 s DominionEner D 81.14 -0.34 HartfordFinl HIG 55.05 -0.13 Marsh&McLennan MMC 80.93 0.31 RPM RPM 53.33 0.15 TimeWarner TWX 98.29 -0.20 Alphabet C GOOG 1016.64 -0.47 s LamResearch LRCX 208.57 2.37
AquaAmerica WTR 35.48 0.06 s CabotOil COG 27.70 0.51 Domino's DPZ 183.00 1.30 HealthcareAmer HTA 30.05 0.16 MartinMarietta MLM 216.85 -1.01 RalphLauren RL 89.43 -2.38 s Toll Bros TOL 46.04 0.53 s Altaba AABA 70.12 1.26 LamarAdvertising LAMR 70.44 0.66
s Aramark ARMK 43.69 0.23 CamdenProperty CPT 91.24 0.15 Donaldson DCI 47.21 -0.17 Heico HEI 90.68 0.10 Masco MAS 39.82 0.33 RaymondJames RJF 84.78 -0.23 Torchmark TMK 84.13 -0.39 Amazon.com AMZN 1105.28 -5.57 LibertyBroadbandA LBRDA 86.21 1.67
ArcelorMittal MT 28.60 -0.31 CampbellSoup CPB 47.37 1.01 DouglasEmmett DEI 39.79 0.21 Heico A HEI.A 76.10 0.20 s Mastercard MA 148.77 -0.18 Raytheon RTN 180.20 0.62 Toro TTC 62.85 0.35 Amdocs DOX 65.10 0.14 LibertyBroadbandC LBRDK 87.29 1.75
t ArcherDaniels ADM 40.87 -1.94 CIBC CM 88.05 -0.55 Dover DOV 95.49 -0.36 Helmerich&Payne HP 54.31 0.49 McCormick MKC 99.53 1.55 RealtyIncome O 53.67 -0.29 TorontoDomBk TD 56.85 0.05 Amerco UHAL 392.64 -2.73 LibertyGlobal A LBTYA 30.85 -0.08
Arconic ARNC 25.12 0.34 CanNtlRlwy CNI 80.49 -0.72 DowDuPont DWDP 72.31 0.63 Herbalife HLF 72.62 0.33 McCormickVtg MKC.V 99.78 2.62 RedHat RHT 120.83 -0.27 s Total TOT 55.72 0.21 AmericanAirlines AAL 46.82 -0.43 LibertyGlobal C LBTYK 29.89 -0.22
s AristaNetworks ANET 199.89 3.73 CanNaturalRes CNQ 34.90 0.10 DrPepperSnap DPS 85.66 0.61 Hershey HSY 106.18 1.45 McDonalds MCD 166.91 0.68 RegencyCtrs REG 61.55 -0.69 s TotalSystem TSS 72.05 1.07 Amgen AMGN 175.22 0.63 LibertyLiLAC A LILA 21.72 0.51
ArrowElec ARW 83.59 0.38 CanPacRlwy CP 173.44 -1.30 DrReddy'sLab RDY 36.37 0.22 Hess HES 44.16 0.50 McKesson MCK 137.88 2.86 RegionsFin RF 15.48 -0.12 ToyotaMotor TM 124.00 -0.39 AnalogDevices ADI 91.30 -0.02 LibertyLiLAC C LILAK 22.00 0.51
AstraZeneca AZN 34.50 0.73 s Canon CAJ 37.75 0.26 s DukeEnergy DUK 88.31 0.20 HewlettPackard HPE 13.92 -0.06 Medtronic MDT 80.52 -0.01 ReinsuranceGrp RGA 149.38 -1.23 TransCanada TRP 47.48 -0.16 s Apple AAPL 169.04 2.32 LibertyQVC A QVCA 22.72 0.40
Athene ATH 52.13 -0.81 CapitalOne COF 92.18 -0.25 DukeRealty DRE 28.48 0.10 Hilton HLT 72.28 -0.37 Merck MRK 55.09 0.38 RepublicServices RSG 65.07 -0.43 TransDigm TDG 277.50 0.30 AppliedMaterials AMAT 56.43 0.53 LibertyVenturesA LVNTA 56.96 1.56
AtmosEnergy ATO 87.24 0.30 t CardinalHealth CAH 61.90 0.20 ENI E 32.65 0.44 s HollyFrontier HFC 36.95 0.04 MetLife MET 53.58 -0.39 ResMed RMD 84.18 1.19 TransUnion TRU 52.49 0.02 ArchCapital ACGL 99.64 -0.19 LibertyFormOne A FWONA 36.40 -0.51
Autohome ATHM 57.51 0.54 Carlisle CSL 109.83 -0.66 EOG Rscs EOG 99.87 0.34 HomeDepot HD 165.78 0.47 s MettlerToledo MTD 682.63 7.41 RestaurantBrands QSR 64.59 -0.01 Travelers TRV 132.45 -0.17 Atlassian TEAM 48.37 0.06 LibertyFormOne C FWONK 38.14 -0.54
Autoliv ALV 124.86 1.85 CarMax KMX 75.10 0.15 EQT EQT 62.54 0.59 HondaMotor HMC 31.09 -0.01 MichaelKors KORS 48.81 0.01 RiceEnergy RICE 28.35 0.31 TurkcellIletism TKC 9.39 -0.01 s Autodesk ADSK 124.96 1.05 LibertyBraves A BATRA 23.48 -0.43
AutoZone AZO 589.50 -0.65 Carnival CCL 66.39 0.37 EQT Midstream EQM 73.06 0.68 Honeywell HON 144.16 -0.48 s MicroFocus MFGP 34.93 0.65 RioTinto RIO 47.93 0.60 TurquoiseHill TRQ 3.07 0.02 ADP ADP 116.26 -0.72 LibertyBraves C BATRK 23.61 -0.36
Avalonbay AVB 181.33 -0.56 Carnival CUK 66.74 0.39 EastmanChem EMN 90.81 -1.01 HormelFoods HRL 31.16 1.01 MidAmApt MAA 102.35 0.36 RobertHalf RHI 51.77 0.77 Twitter TWTR 20.62 -0.63 Baidu BIDU 243.94 7.52 LibertySirius A LSXMA 41.71 -0.39
s Avangrid AGR 51.73 0.90 Caterpillar CAT 135.80 -0.69 Eaton ETN 80.02 0.79 DR Horton DHI 44.21 -0.10 MitsubishiUFJ MTU 6.79 -0.07 s Rockwell ROK 200.82 13.82 TylerTech TYL 177.29 0.81 BankofOzarks OZRK 46.62 0.12 LibertySirius C LSXMK 41.65 -0.38
s AveryDennison AVY 106.17 0.85 Celanese A CE 104.31 -0.53 EatonVance EV 50.47 0.37 HostHotels HST 19.56 0.26 MizuhoFin MFG 3.67 -0.01 s RockwellCollins COL 135.60 -0.09 s TysonFoods TSN 72.91 1.44 Biogen BIIB 311.66 -4.14 LincolnElectric LECO 91.67 1.12
AxaltaCoating AXTA 33.25 0.82 Cemex CX 8.11 0.07 Ecolab ECL 130.66 -0.26 HuanengPower HNP 26.60 0.25 MobileTeleSys MBT 10.61 0.05 RogersComm B RCI 51.90 -0.92 UBS Group UBS 17.01 0.09 BioMarinPharm BMRN 82.09 0.12 LogitechIntl LOGI 35.83 0.85
Hubbell HUBB 125.82 0.70 MohawkIndustries MHK 261.76 -1.20 Rollins ROL 43.91 0.68 UDR UDR 38.79 0.23 Bioverativ BIVV 56.50 0.66 LogMeIn LOGM 121.05 0.50
Humana HUM 255.35 -0.31 MolsonCoors B TAP 80.87 1.92 s RoperTech ROP 258.17 1.12 UGI UGI 47.86 -0.25 bluebirdbio BLUE 139.10 -2.50 lululemon LULU 61.51 -0.21
HuntingtonIngalls HII 232.83 0.68 Monsanto MON 121.10 -0.09 RoyalBkCanada RY 78.15 -0.58 US Foods USFD 27.28 0.29 BrighthouseFin BHF 62.18 -0.28 s MKS Instrum MKSI 108.65 3.10
BANKRATE.COM® MMA, Savings and CDs s Huntsman
HyattHotels H
HUN 32.02
62.66
0.66
-0.05
Moody's
MorganStanley MS
MCO 142.41 -0.57
50.00 -0.46
RoyalBkScotland RBS
RoyalCaribbean RCL 123.77
7.59 0.01
1.78
UltraparPart UGP 23.89
t UnderArmour A UAA 12.52
-0.09
-3.89
s Broadcom
CA
AVGO 263.91
CA 32.38
2.68
0.06 s
MarketAxess MKTX 174.00
Marriott MAR 119.48
0.95
0.96
ICICI Bank IBN 9.15 0.11 Mosaic MOS 22.34 1.49 s RoyalDutchA RDS.A 63.03 0.84 t UnderArmour C UA 11.53 -3.21 CDK Global CDK 63.56 -2.80 Continued on Page B12
Average Yields of Major Banks Tuesday, October 31, 2017
Type MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR
National average
Savings 0.11 0.07 0.07 0.13 0.21 0.36 0.48 0.47 0.95 ADVERTISEMENT
Jumbos 0.21 0.07 0.08 0.14 0.23 0.39 0.53 0.50 1.00
Weekly change
Savings
Jumbos
0.00
0.01
0.00
0.00
0.00
0.00
0.01
0.01
0.02
0.02
0.02
0.02
0.02
0.04
0.02
0.03
0.05
0.05
Business Real Estate & Auctions
To advertise: 800-366-3975 or WSJ.com/classifieds

Consumer Savings Rates AUCTIONS TEXAS

Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of fed-
erally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,  !! "!#$
not an indication of financial strength or weakness. Information is believed to be reliable, but not
 
 
guaranteed.     


High yield savings



   
 
   

Bank/rank Yield Bank/rank Yield   ! " 

Phone number Minimum (%) Phone number Minimum (%) # $  %
 
""& ' #
Money market and savings account
DollarSavingsDirect /4 $1 1.50
Six-month CD
CD Bank /4 $10,000 1.40
(  )
 *
+  ,
 

  ,' 
&%! %(!" - 
/+01 & 2#&&3
(866) 395-8693 (888) 201-8185 
 


CIT Bank /4
(855) 462-2652
$100 1.35 First Internet Bank of Indiana /4 $1,000
(888) 873-3424
1.37 ''
  '" - +  . /+
    
 /+ '0 '
! " ((&& ! (!  *
Barclays /4 $0 1.30 M.Y. Safra Bank, FSB /4 $5,000 1.37 % 
&   #

(888) 720-8756 (212) 652-7200 ! 1 * 2 $ 
$  #
44 "!! !!/ %&!"/
5 
One-month CD One-year CD ' 
() 

EH National Bank /2 $0 0.81 CD Bank /4 $10,000 1.75 
*+,,+* --- %
)
(888) 392-5265 (888) 201-8185 - )./   /   
M.Y. Safra Bank, FSB /4 $5,000 0.30 ableBanking,adivisionofNortheastBank/4 $1,000 1.70 - (
0  /  '( 
' 1
(212) 652-7200 (888) 426-2253
CALIFORNIA
VirtualBank /4 $10,000 0.15 EverBank /3 $5,000 1.68 -

(
+
  *2 (/ 1  

(877) 998-2265 (855) 228-6755

Two-month CD Two-year CD - 3*  3(  , .
 3(( 

VirtualBank /4 $10,000 0.15 Goldwater Bank /3 $5,000 1.85 - 4  5 1  6  7 / 5  #89.  
(877) 998-2265 (480) 281-8200
Applied Bank /5 $1,000 0.05 CD Bank /4 $10,000 1.85 - 
   : 
*
; .$
(800) 616-4605 (888) 201-8185
 




First Internet Bank of Indiana /4 $1,000 1.85 
  - ,1 5 < (   / /
(888) 873-3424 


   !
Three-month CD Five-year CD


CD Bank /4
(888) 201-8185
$10,000 1.15 Goldman Sachs Bank USA /5
(855) 730-7283
$500 2.40

  
        !"# $"%&! '(!
M.Y. Safra Bank, FSB /4
(212) 652-7200
$5,000 1.10 Barclays /4
(888) 720-8756
$0 2.35  

 
!!  & )% * +!, - .* %(!" * !,
EverBank /3 $5,000 1.01 EverBank /3 $5,000 2.35
(855) 228-6755 (855) 228-6755
MASSACHUSETTS
 
   
 
 
   
    !  "#$$%#
High yield jumbos - Minimum is $100,000 & 
 '      '  (   )%   (   * +
*    , * 
Money market and savings account Six-month CD
 
ableBanking,adivisionofNortheastBank/4 1.30 First Internet Bank of Indiana /4 1.37

  
(877) 505-1933
M.Y. Safra Bank, FSB /4 1.26
(888) 873-3424
M.Y. Safra Bank, FSB /4 1.37
 !"
(212) 652-7200 (212) 652-7200
BBVA Compass /3 1.25 VirtualBank /4 1.36 #$ % HAWAII
NOTABLE
(800) COMPASS (877) 998-2265
 # $%&'(''#
One-month CD One-year CD
EH National Bank /2
(888) 392-5265
0.81 ableBanking,adivisionofNortheastBank/4
(888) 426-2253
1.70 ) *+,
 , COMMERCIAL
M.Y. Safra Bank, FSB /4 0.30 EverBank /3 1.68 ) ( ' * 
PROPERTIES
(212) 652-7200 (855) 228-6755
USAA /5 0.22 First Internet Bank of Indiana /4 1.66 + EVERY WEDNESDAY
(800) 583-8295 (888) 873-3424

&


- ,
Two-month CD Two-year CD
VirtualBank /4 0.15 First Internet Bank of Indiana /4 1.85
(877) 998-2265 (888) 873-3424
Applied Bank /5 0.05 EverBank /3 1.82



 
 LIST YOUR
(800) 616-4605 (855) 228-6755 
  PROPERTY TODAY
Citizens Trust Bank /4 0.01 VirtualBank /4 1.81
 


      

#$  %
& ' (
%
(404) 659-5959 (877) 998-2265
 

Three-month CD Five-year CD   



 (800) 366-3975
Luana Savings Bank /4 1.10 Synchrony Bank /5 2.35   sales.realestate@wsj.com
(800) 666-2012 (800) 903-8154      !"
M.Y. Safra Bank, FSB /4 1.10 EverBank /3 2.35 For more information visit:
(212) 652-7200 (855) 228-6755 wsj.com/classifieds
EverBank /3 1.01 First Internet Bank of Indiana /4 2.32
(855) 228-6755 (888) 873-3424

 
       
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to




earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per 
  © 2017 Dow Jones & Company, Inc.
month, three (3) of which may be checks. Rates are subject to change.   
    ! "
All Rights Reserved.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.com
B12 | Wednesday, November 1, 2017 NY * * THE WALL STREET JOURNAL.

NEW HIGHS AND LOWS

ADVERTISEMENT
52-Wk % 52-Wk % 52-Wk %

Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE 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.
Stock Sym Hi/Lo Chg Stock
iPathPBLivestock LSTK
iShAggrAllocation AOA
iShGrwthAllocation AOR
47.38 1.2 PIMCO DynMultIn MFDX
54.44 0.2 PwrShCleantch PZD
45.32 0.1 PwrShDynBldg&Con PKB
Sym Hi/Lo Chg Stock
26.20 0.3 VanEckIndiaSC
43.15 0.8 VanEckSemiconduc SMH
33.29 0.8 VangdInfoTech
SCIF

VGT
Sym Hi/Lo Chg
62.85
101.94
163.61
0.9
1.0
0.4
Tuesday, October 31, 2017 iShMSCIIntlDev IDEV 57.46 0.6 PwrShDynMkt PWC 93.97 0.8 VangdSC Grwth VBK 156.53 0.8
52-Wk % 52-Wk % 52-Wk % iShCoreMSCIPacific IPAC 58.63 -0.1 PwrShDynSemicon PSI 54.26 1.3 VangdFTSEDevMk VEA 44.22 0.5
iShModAllocation AOM 38.23 0.1 PwrShDynSoftware PSJ 65.86 0.8 VangdFTSE Pac VPL 71.18 0.5
Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg
BANKRUPTCIES iShCurHdgMSCIACWI HACW 28.80 1.1 PwrShEuropeCurr FXEU 24.26 0.9 VangdGrowth VUG 136.71 0.3
KornFerry KFY 42.34 3.0 BlueCapReins BCRH 12.85 1.9 iShCurHdgMSCIUS HAWX 26.88 0.4 PwrShDynLC Grwth PWB 40.42 0.5 VangdMegaGrwth MGK 108.03 0.2

  
  

     

    
NYSE highs - 172 LambWeston LW
LYV
51.56
43.88
1.2
1.6
BrixmorProp BRX
BBW
17.23 -2.9
7.80 -3.7
iShCurrHdgMSCICda HEWC 26.49 0.3 PwrShDevMkt xUS PXF 44.87 0.5 VangdS&P400Grwth IVOG
VB
129.97
143.82
0.7
0.7
LiveNationEnt Build-A-Bear iShCurHdgMSCIEAFE HSCZ 30.73 0.7 PwrShIndia PIN 25.65 0.6 VangdSC
   ABB ABB 26.29 3.0

  MDC Holdings MDC 37.14 1.4 CapsteadMtg CMO 8.81 -1.5 iShCurHdMSCIEurozn HEZU 30.95 0.5 PwrShJapanCurr FXJP 30.94 1.6 VangdTotlWrld VT 72.29 0.3
    !" # $$% AberdeenJapanEqu JEQ 9.21 -0.1 25.20 1.0
 
      MGIC Investment MTG 14.43 0.1 CardinalHealth CAH 60.69 0.3 iShCurrHdMSCIJapan HEWJ 32.82 0.9 PwrShRussMCGrw PXMG 40.29 0.7 WBITacticalSMGD WBIA
  AdvanSix ASIX 46.51 4.4 35.24 5.9
 &'( )*'') MI Homes MHO 33.60 1.5 Celestica CLS 10.01 -3.8 iShU.S.Technology IYW 161.91 0.5 PwrShRussTop200G PXLG 44.26 0.5 WilshireMicroCap WMCR
AerCap AER 53.30 0.2 EUSC 31.29 0.3

  


  
 
 


 MarathonPetrol MPC 60.16 1.2 Chipotle CMG 264.90 1.2 iShEdgeMSCIIntlMom IMTM 30.80 0.3 PwrShS&P500Mom SPMO 33.30 0.2 WisdTrEuropeHdgSM
AlbanyIntl AIN 60.85 6.9 27.02 0.6

  

 
 

 
    Mastercard MA 152.00 -0.1 CircorIntl CIR 43.50 -2.8 iShEdgeMSCIIntVal IVLU 25.95 0.3 PwrShWldrClean PBW 24.79 0.5 WisdTrIndiaEarn EPI
Alibaba BABA 185.12 1.8 IHDG 31.63 0.6
    
    &+ ," , )
* -  ) )
* - Materion MTRN 51.85 0.9 ColonyNorthStar CLNS 12.13 -1.5 iShEdgeMSCIMinJapn JPMV 66.75 0.2 ProShS&P500xEner SPXE 53.94 0.2 WisdTrIntlHdgQual
AlleghenyTechs ATI 25.62 2.8

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- ? 4*' 8  +' ADVERTISE TODAY by 30-50% -- this year. Earn more than $500,000?
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.9 G 824 )  ';+'' -' CpInc r 10.34 +0.03 11.1 MCapVal 30.97 +0.05 6.6 InPrSeIn 10.49 ... 2.0
previously reserved for the mega-wealthy now at your
4   -')'/)- 8 .9 G - (800) 366-3975 fingertips. No obligation. No gimmicks. Don’t wait till it’s ADVERTISE TODAY DivIntl 41.39 +0.13 24.3 N Horiz 55.59 +0.32 28.4 InstIdx 234.80 +0.23 16.9
I5 824 +)  )'4)  $() '8 GroCo 182.23 +0.43 33.2 N Inc 9.50 ... 3.6 InstPlus 234.82 +0.23 16.9
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text "TaxCut" to (323) 870-1040 InvGB 7.93 ... 3.5 R2020 23.20 +0.04 13.7 MidCpInst 40.80 +0.16 14.5
@wsj.com (800) 366-3975 InvGrBd 11.28 -0.01 3.9 R2025 17.89 +0.03 15.4 MidCpIstPl 201.24 +0.79 14.5
sales.mart@wsj.com LowP r 52.74 +0.12 15.1 R2030 26.35 +0.04 17.0 SmCapInst 68.75 +0.46 12.3
$1,000,000 YEARLY-$5000 DAILY LowPriStkK r 52.70 +0.12 15.2 R2035 19.26 +0.03 18.2 STIGradeInst 10.69 ... 2.4
THEMART For more information FDA & Medicare Approved For more information visit:
MagIn
OTC
105.60 +0.21
108.22 +0.51
22.4 R2040
35.8 Value
27.68 +0.05
38.61 -0.03
19.3 TotBdInst
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10.77 ...
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ADVERTISE TODAY visit wsj.com/classifieds Medical Equipment/Device. wsj.com/classifieds Puritn 23.15 +0.03
SrsEmrgMkt 21.35 +0.10
16.0 PRIMECAP Odyssey Fds
36.0 Growth r 35.64 +0.28
TotBdInstPl 10.77
24.4 TotIntBdIdxInst 32.88 -0.01
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(800) 366-3975 Extremely Large Passive Income. SrsGroCoRetail 17.90 +0.04 34.0 Principal Investors TotIntlInstIdx r 119.77 +0.41 24.0
sales.mart@wsj.com SrsIntlGrw 16.22 +0.03 26.7 DivIntlInst NA ... NA TotItlInstPlId r 119.79 +0.40 24.0
© 2017 Dow Jones & Company, Inc. Locations and Financing Available © 2017 Dow Jones & Company, Inc. SrsIntlVal 10.86 +0.02 18.6 Prudential Cl Z & I TotStInst 64.43 +0.13 16.4
© 2017 Dow Jones & Company, Inc.
All Rights Reserved. All Rights Reserved. Call Sean Kelly 800-284-9060 All Rights Reserved. TotalBond 10.67 -0.01 3.8 TRBdZ NA ... NA ValueInst 39.65 -0.02 11.5
Fidelity Selects Schwab Funds Western Asset
Biotech r 219.04 -1.21 25.8 S&P Sel 40.23 +0.04 16.9 CorePlusBdI NA ... NA
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B13

MARKETS DIGEST
EQUITIES

Dow Jones Industrial Average S&P 500 Index Nasdaq Composite Index
Last Year ago Last Year ago Last Year ago
23377.24 s 28.50, or 0.12% Trailing P/E ratio 21.14 19.71 2575.26 s 2.43, or 0.09% Trailing P/E ratio 24.16 24.31 6727.67 s 28.71, or 0.43% Trailing P/E ratio * 26.00 24.09
High, low, open and close for each P/E estimate * 19.54 17.19 High, low, open and close for each P/E estimate * 19.49 18.02 High, low, open and close for each P/E estimate * 21.55 19.35
trading day of the past three months. Dividend yield 2.20 2.61 trading day of the past three months. Dividend yield 1.92 2.16 trading day of the past three months. Dividend yield 1.07 1.21
All-time high 23441.76, 10/24/17 All-time high: 2581.07, 10/27/17 All-time high: 6727.67, 10/31/17

Current divisor 0.14523396877348

23500 2570 6700
Session high
DOWN UP 23000 2540 6600
t

Session open Close

Close Open
t

22500 2510 6500

Session low

22000 2480 6400

21500 2450 6300

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

21000 2420 6200

Bars measure the point change from session's open

20500 2390 6100
July Aug. Sept. Oct. July Aug. Sept. Oct. July Aug. Sept. Oct.
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* 957,935,808 12,949,219
Industrial Average 23406.35 23334.39 23377.24 28.50 0.12 23441.76 17888.28 29.6 18.3 10.4 share price of $2 and minimum after-hours volume of 5,000 shares. Adv. volume* 528,403,825 5,698,001
Transportation Avg 9819.06 9756.01 9758.47 -44.23 -0.45 10038.13 8008.38 21.9 7.9 3.7 Most-active issues in late trading Decl. volume* 418,632,681 6,933,054
Utility Average 755.00 750.28 753.20 0.75 0.10 754.80 625.44 13.5 14.2 8.1 Volume After Hours Issues traded 3,067 333
Company Symbol (000) Last Net chg % chg High Low Advances 1,855 164
Total Stock Market 26721.43 26643.61 26687.97 51.68 0.19 26743.96 21514.15 22.5 14.7 8.3
iShares MSCI Emg Markets EEM 16,855.3 46.28 … unch. 46.30 45.93 Declines 1,105 144
Barron's 400 692.30 686.59 690.87 5.62 0.82 691.56 521.59 30.5 14.8 8.8
SPDR S&P 500 SPY 16,718.4 257.09 -0.06 -0.02 257.33 256.85 Unchanged 107 25
Nasdaq Stock Market iShares MSCI Intl Dev IDEV 10,770.9 57.11 -0.35 -0.61 57.11 57.11 New highs 172 3
Nasdaq Composite 6737.75 6705.79 6727.67 28.71 0.43 6727.67 5046.37 30.5 25.0 13.3 iSh Core MSCI Europe IEUR 7,562.2 49.90 0.11 0.22 49.90 49.79 New lows 55 7
Nasdaq 100 6258.42 6229.15 20.97 6248.56 4660.46 28.5 Closing tick 80 6
6248.56 0.34 31.1 14.5 iSh Core MSCI Pacific IPAC 4,428.9 58.29 -0.15 -0.25 58.56 58.29
Closing Arms† 1.43 1.49
VanEck Vectors Gold Miner GDX 2,563.6 22.55 0.07 0.31 22.56 22.45
Standard & Poor's Block trades* 7,513 130
Micron Technology MU 2,553.1 44.26 -0.05 -0.11 44.40 43.00
500 Index 2578.29 2572.15 2575.26 2.43 0.09 2581.07 2085.18 22.0 15.0 8.5 Nasdaq NYSE Arca
Verizon Communications VZ 2,279.5 47.87 … unch. 47.95 47.80
MidCap 400 1837.79 1827.61 1835.10 9.67 0.53 1839.12 1476.68 22.8 10.5 9.0 Total volume*2,020,170,652 209,025,806
SmallCap 600 914.73 904.48 912.04 8.56 0.95 918.72 703.64 28.0 8.8 10.3 Percentage gainers… Adv. volume*1,288,384,000 129,376,908
Decl. volume* 692,238,028 78,108,619
Other Indexes Black Box BBOX 5.1 3.45 0.35 11.13 3.45 3.10
Issues traded 3,078 1,302
Russell 2000 1506.78 1491.44 1502.53 11.64 0.78 1512.09 1156.89 27.6 10.7 8.6 Big 5 Sporting Goods BGFV 158.3 7.00 0.65 10.24 7.40 6.15
Advances 1,884 887
NYSE Composite 12358.76 12322.45 12341.02 21.55 0.17 12430.52 10289.35 18.5 11.6 4.4 Westport Fuel Systems WPRT 46.4 3.80 0.34 9.83 3.90 3.60 Declines 1,055 385
Value Line 543.18 539.55 542.26 2.71 0.50 545.98 455.65 17.4 7.1 3.2 Qualys Inc. QLYS 25.4 57.50 4.60 8.70 57.70 52.90 Unchanged 139 30
NYSE Arca Biotech 4145.96 4082.80 4103.24 -13.10 -0.32 4304.77 2834.14 37.7 33.4 6.9
B&G Foods BGS 76.2 34.50 2.70 8.49 35.75 31.80 New highs 183 163
New lows 59 23
NYSE Arca Pharma 535.60 532.32 533.64 0.15 0.03 560.52 463.78 12.4 10.8 0.2 ...And losers
Closing tick 544 11
KBW Bank 102.31 101.42 101.45 -0.31 -0.31 102.23 73.36 36.2 10.5 12.0 Envision Healthcare EVHC 950.0 30.50 -12.10 -28.40 44.00 29.32 Closing Arms† 0.96 1.52
PHLX§ Gold/Silver 81.96 80.89 81.20 -1.17 -1.42 96.72 73.03 -9.1 3.0 7.8 3D Systems DDD 985.2 10.50 -1.88 -15.19 12.43 9.86 Block trades* 7,629 1,226
PHLX§ Oil Service 132.84 130.58 132.38 1.06 0.81 192.66 117.79 -12.6 -28.0 -19.0 Wabash National WNC 40.7 20.25 -2.25 -10.00 22.53 19.90 * Primary market NYSE, NYSE American NYSE Arca only.
PHLX§ Semiconductor 1279.32 1265.18 1275.61 9.69 0.77 1275.61 802.88 56.3 40.7 25.8 Sturm Ruger RGR 11.3 45.25 -4.30 -8.68 49.56 41.01 †(TRIN) A comparison of the number of advancing and declining
CBOE Volatility 10.37 9.90 -0.32 22.51 9.19 -45.2 -27.5 -10.1 issues with the volume of shares rising and falling. An
10.18 -3.05 Marinus Pharmaceuticals MRNS 26.9 5.10 -0.44 -7.94 5.45 5.10 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 2959.93 –2.46 –0.08 16.9 Stemline Therapeutics STML 13.65 3.10 29.38 14.60 5.50 18.2 Libbey LBY 6.84 -2.32 -25.33 20.76 6.12 -56.8
DJ Global Index 384.17 0.61 0.16 17.8 Apptio Cl A APTI 24.25 5.16 27.03 24.50 10.77 27.0 Under Armour A UAA 12.52 -3.89 -23.71 33.45 12.48 -59.0
DJ Global ex U.S. 258.92 0.42 0.16 21.0 Trex Co TREX 109.45 22.34 25.65 112.39 50.81 105.5 Under Armour Cl C UA 11.53 -3.21 -21.78 29.53 11.40 -54.8
Americas DJ Americas 619.32 0.67 0.11 14.6 Harmonic HLIT 3.70 0.75 25.42 6.18 2.80 -26.0 AK Steel AKS 4.59 -1.26 -21.54 11.39 4.58 -10.2
Brazil Sao Paulo Bovespa 74308.49 –491.84 –0.66 23.4 MarineMax HZO 18.55 3.35 22.04 23.65 13.80 12.8 Nautilus NLS 13.00 -3.30 -20.25 19.80 12.40 -23.8
Canada S&P/TSX Comp 16025.59 22.81 0.14 4.8 QuinStreet QNST 8.90 1.53 20.76 9.38 2.61 196.7 Applied DNA Sciences APDN 2.13 -0.40 -15.81 3.45 0.90 -21.1
Mexico S&P/BMV IPC 48625.53 –229.74 –0.47 6.5 Sunesis Pharmaceuticals SNSS 2.56 0.41 19.07 4.45 1.82 -30.2 Oxford Immunotec Global OXFD 13.22 -2.46 -15.69 19.51 12.68 -3.2
Chile Santiago IPSA 4240.31 –15.62 –0.37 31.6 VolitionRX VNRX 2.92 0.45 18.22 5.45 2.08 -32.9 Sanmina SANM 32.73 -6.08 -15.66 42.95 26.95 16.5
0.33 Mustang Bio MBIO 11.75 1.76 17.62 13.35 8.22 ... Calyxt CLXT 20.48 -3.46 -14.45 31.89 9.26 ...
EMEA Stoxx Europe 600 395.22 1.31 9.4
0.25 Helios Matheson Analy HMNY 10.62 1.59 17.61 38.86 2.20 71.3 Chicago Bridge Iron CBI 13.94 -2.24 -13.84 36.56 9.55 -56.0
Eurozone Euro Stoxx 397.81 1.01 13.6
Belgium Bel-20 4096.38 17.70 0.43 13.6 Avenue Therapeutics ATXI 5.32 0.78 17.18 8.58 3.92 ... Lannett Co LCI 19.90 -3.15 -13.67 27.90 14.90 -12.7
France CAC 40 5503.29 9.66 0.18 13.2 Independence Contract ICD 3.24 0.44 15.71 7.30 2.72 -19.0 HTG Molecular Diagnostics HTGM 2.24 -0.34 -13.18 13.25 1.20 0.9
Germany DAX 13229.57 … Closed 15.2 Sterling Construction STRL 17.85 2.40 15.53 18.48 6.13 178.0 John B Sanfilippo Son JBSS 58.85 -8.55 -12.69 74.69 56.26 -4.0
Israel Tel Aviv 1438.61 –2.88 –0.20 –2.2 Simpson Manufacturing SSD 55.74 7.11 14.62 59.71 39.82 30.0 Barnes Noble Education BNED 5.45 -0.74 -11.95 13.15 5.03 -40.0
0.18 18.5 TrueBlue TBI 27.10 3.35 14.11 28.70 16.65 55.7 Lumber Liquidators LL 30.78 -3.99 -11.48 41.33 14.02 102.8
Italy FTSE MIB 22793.69 40.80
Netherlands AEX 553.38 3.92 0.71 14.5
Russia RTS Index 1113.41 –10.64 –0.95 –3.4 Most Active Stocks Volume Movers Ranked by change from 65-day average*
Spain IBEX 35 10523.50 77.50 0.74 12.5
0.56 Volume % chg from Latest Session 52-Week Volume % chg from Latest Session 52-Week
Sweden SX All Share 597.16 3.31 11.7 Company Symbol (000) 65-day avg Close % chg High Low Company Symbol (000) 65-day avg Close % chg High Low
Switzerland Swiss Market 9242.18 66.68 0.73 12.4
General Electric GE 96,545 84.7 20.16 -1.22 32.38 20.05 iShares MSCI Intl Dev IDEV 1,325 7272 57.46 0.65 57.46 50.71
U.K. FTSE 100 7493.08 5.27 0.07 4.9
AK Steel AKS 92,333 528.6 4.59 -21.54 11.39 4.58 Bison Capital Acquisition BCAC 576 4818 9.85 0.51 9.90 9.73
Asia-Pacific Advanced Micro Devices AMD 78,105 35.5 10.99 0.87 15.65 6.22 Guggenheim Frontier Mkts FRN 617 2084 14.35 -1.24 15.09 11.40
Australia S&P/ASX 200 5909.00 –10.10 –0.17 4.3 Micron Technology MU 59,342 84.7 44.31 6.39 44.57 16.45 iSh Core Total USD Bd Mkt IUSB 1,944 2072 51.06 0.04 51.57 49.81
China Shanghai Composite 3393.34 3.00 0.09 9.3 Bank of America BAC 49,182 -24.4 27.39 -0.76 27.98 16.28 Fidelity MSCI Con Staples FSTA 966 1786 31.96 0.76 34.49 30.10
Hong Kong Hang Seng 28245.54 –90.65 –0.32 28.4 iShares MSCI Emg Markets EEM 46,042 -5.0 46.28 0.94 46.82 33.94 PowerShares Dyn Software PSJ 124 1765 65.77 0.79 65.86 45.76
India S&P BSE Sensex 33213.13 –53.03 –0.16 24.7 Intel INTC 45,507 91.6 45.49 2.52 45.80 33.23 KraneShs MSCI China Env KGRN 132 1544 25.50 -0.27 26.14 25.16
Japan Nikkei Stock Avg 22011.61 –0.06 –.0003 15.2 Under Armour A UAA 45,307 848.6 12.52 -23.71 33.45 12.48 Adv Accelerator Appl ADR AAAP 6,564 1500 81.00 0.62 81.17 23.50
Singapore Straits Times 3374.08 –1.89 –0.06 17.1 SPDR S&P 500 SPY 42,706 -33.4 257.15 0.16 257.89 208.38 Stemline Therapeutics STML 3,057 1493 13.65 29.38 14.60 5.50
South Korea Kospi 2523.43 21.50 0.86 24.5 Ford Motor F 40,323 13.2 12.27 1.40 13.27 10.47 iSh Core MSCI Pacific IPAC 669 1476 58.44 -0.07 58.63 48.77
Taiwan Weighted 10793.80 36.93 0.34 16.6 * 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
Tues YTDchg
in US$ per US$ (%) Country/currency
Tues YTDchg
in US$ per US$ (%)
U.S. consumer rates Selected rates notes and bonds major U.S. trading partners
Americas Thailand baht .03009 33.230 –7.2
A consumer rate against its 30-year mortgage, Rate Vietnam dong .00004403 22710 –0.3
3.75% Argentina peso .0567 17.6340 11.1
benchmark over the past year 10% Brazil real .3056 3.2727 0.5 Europe
Bankrate.com avg†: 3.94%
3.00 WSJ Dollar index Canada dollar .7759 1.2888 –4.1 Czech Rep. koruna .04539 22.033 –14.2
Accelin Loans LLC 3.75% 5 s
s Chile peso .001571 636.50 Denmark krone .1565 6.3896 –9.6
–5.0
4.00% Kaneohe, HI 206-855-6323 Euro
t 2.25 0 Colombia peso .0003289 3040.14 1.3 Euro area euro 1.1648 .8586 –9.7
Accelin Loans LLC 3.75% Ecuador US dollar 1 1 unch Hungary forint .003740 267.39 –9.1
Tuesday
t

30-year fixed-rate 3.00 1.50 Mexico peso .0522 19.1463 –7.7 Iceland krona .009482 105.46 –6.6
Bend, OR 541-410-6086 –5
mortgage Peru new sol .3079 3.248 –3.1 Norway krone .1224 8.1687 –5.5
2.00 CedarRapidsBankandTrustCompany 3.75% 0.75 –10 Uruguay peso .03427 29.1800 –0.6 Poland zloty .2748 3.6397 –13.1
t s
Cedar Rapids, IA 319-862-2728 One year ago
t

Yen Venezuela b. fuerte .094418 10.5913 6.0 Russia ruble .01714 58.344 –4.8
10-year Treasury 1.00 0.00 –15
Fortune Financial, Inc. 3.75% Asia-Pacific Sweden krona .1194 8.3774 –8.0
note yield 1 3 6 1 2 3 5 710 30
Englewood, CO 2016 2017 Switzerland franc 1.0023 .9977 –2.1
303-706-0920 Australian dollar .7655 1.3063 –5.9
0.00 month(s) years Turkey lira .2637 3.7920 7.6
Garden State Home Loans 3.75% China yuan .1507 6.6357 –4.5
N D J FMAM J J A S O maturity Ukraine hryvnia .0372 26.8600 –0.8
Hong Kong dollar .1282 7.8012 0.6
2016 2017 Cherry Hill, NJ 609-216-7912 UK pound 1.3283 .7528 –7.1
India rupee .01546 64.688 –4.8
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Middle East/Africa
Indonesia rupiah .0000737 13563 0.3
Yield/Rate (%) 52-Week Range (%) 3-yr chg Japan yen .008800 113.64 –2.9 Bahrain dinar 2.6518 .3771 –0.02
Interest rate Last (l)Week ago Low 0 2 4 6 8 High (pct pts)
Kazakhstan tenge .002985 334.96 0.4 Egypt pound .0566 17.6545 –2.6
Federal-funds rate target 1.00-1.25 1.00-1.25 0.25 l 1.25 1.00 Corporate Borrowing Rates and Yields Macau pataca .1246 8.0240 1.4 Israel shekel .2840 3.5210 –8.5
Malaysia ringgit .2363 4.2316 –5.7 Kuwait dinar 3.3052 .3026 –1.0
Prime rate* 4.25 4.25 3.50 l 4.25 1.00 Yield (%) 52-Week Total Return (%)
Bond total return index Close Last Week ago High Low 52-wk 3-yr New Zealand dollar .6846 1.4607 1.2 Oman sul rial 2.5980 .3849 –0.01
Libor, 3-month 1.38 1.37 0.88 l 1.38 1.15 Pakistan rupee .00949 105.325 0.9 Qatar rial .2632 3.800 4.4
Money market, annual yield 0.32 0.35 0.26 l 0.36 -0.10 Treasury, Ryan ALM 1458.107 2.132 2.151 2.237 1.482 –1.387 1.975 Philippines peso .0194 51.596 4.0 Saudi Arabia riyal .2667 3.7502 –0.01
Five-year CD, annual yield 1.47 1.46 1.19 l 1.47 -0.06 10-yr Treasury, Ryan ALM 1730.066 2.374 2.406 2.609 1.783 1.850 1.818 Singapore dollar .7338 1.3628 –5.8 South Africa rand .0708 14.1289 3.2
30-year mortgage, fixed† 3.94 3.93 3.61 l 4.33 -0.12 South Korea won .0008941 1118.42 –7.4
DJ Corporate 379.899 3.040 3.046 3.390 2.730 2.992 3.974 Close Net Chg % Chg YTD%Chg
Sri Lanka rupee .0065096 153.62 3.5
15-year mortgage, fixed† 3.24 3.23 2.85 l 3.50 0.03 Aggregate, Barclays Capital 1939.110 2.600 2.620 2.790 2.100 0.876 2.390 Taiwan dollar .03315 30.168 –7.0 WSJ Dollar Index 87.62 0.09 0.10 –5.72
Jumbo mortgages, $424,100-plus† 4.29 4.31 4.23 l 4.88 -0.06 High Yield 100, Merrill Lynch n.a. n.a. 5.059 n.a. n.a. n.a. n.a. Sources: Tullett Prebon, WSJ Market Data Group
Five-year adj mortgage (ARM)† 3.47 3.57 3.13 l 4.03 -0.30
Fixed-Rate MBS, Barclays 1984.240 2.860 2.900 3.120 2.270 0.441 2.073
New-car loan, 48-month 3.02 3.02 2.85 l 3.36 -0.22
HELOC, $30,000 5.19 5.17 4.57 l 5.30 0.74
Muni Master, Merrill n.a. n.a. 1.920 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 EMBI Global, J.P. Morgan n.a. n.a. 5.470 n.a. n.a. n.a. n.a. Commodities Tuesday 52-Week YTD
banks.† Excludes closing costs. Pricing trends on someClose
raw materials, or commodities
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Net chg % Chg High Low % Chg % chg

DJ Commodity 600.73 0.04 0.01 600.73 527.06 12.38 5.90

Get real-time U.S. stock quotes and track most-active Track the Markets 187.56 0.01 195.14 0.94 -2.57

WSJ
TR/CC CRB Index 0.03 166.50
stocks, new highs/lows and mutual funds. Plus, Compare the performance of selected global stock Crude oil, $ per barrel 54.38 0.23 0.42 54.45 42.53 16.52 1.23
deeper money-flows data and email delivery of key indexes, bond ETFs, currencies and commodities at Natural gas, $/MMBtu 2.896 -0.070 -2.36 3.93 2.56 -0.21 -22.23
.COM WSJ.com/TrackTheMarkets
stock-market data. Available free at WSJMarkets.com Gold, $ per troy oz. 1267.00 -7.10 -0.56 1346.00 1127.80 -1.51 10.17
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B14 | Wednesday, November 1, 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 Cocoa (ICE-US)-10 metric tons; $ per ton. Dec .8856 .8871 .8810 .8814 –.0041 262,845
Agriculture Futures Dec 2,118 2,120 2,090 2,094 –24 88,851 Canadian Dollar (CME)-CAD 100,000; $ per CAD
Contract Open March'18 2,108 2,111 2,083 2,089 –22 107,290 Nov .7793 .7794 .7746 .7756 –.0037 1,301
Open High hi lo Low Settle Chg interest Corn (CBT)-5,000 bu.; cents per bu. Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec .7799 .7802 .7746 .7758 –.0036 154,058
Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 348.00 348.75 345.50 345.75 –3.00 759,768 Dec 125.10 125.70 124.15 125.10 –.80 116,926 British Pound (CME)-£62,500; $ per £
Nov 3.1000 3.1035 3.0850 3.0920 –0.0100 2,215 March'18 362.00 362.75 359.25 359.50 –3.25 339,510 March'18 129.00 129.30 127.75 128.60 –.85 66,036 Nov 1.3213 1.3289 1.3208 1.3289 .0082 1,016
Dec 3.1075 3.1370 3.0925 3.1010 –0.0110 158,202 Oats (CBT)-5,000 bu.; cents per bu. Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Dec 1.3223 1.3307 1.3209 1.3301 .0082 177,826
Gold (CMX)-100 troy oz.; $ per troy oz. Dec 264.00 267.00 257.00 264.75 1.50 4,943 March 14.65 14.79 14.59 14.74 .01 429,334 Swiss Franc (CME)-CHF 125,000; $ per CHF
Nov 1273.10 1274.60 1266.10 1267.00 –7.10 610 March'18 268.75 270.00 263.25 269.25 1.25 2,333 May 14.71 14.84 14.65 14.82 .03 135,370 Dec 1.0081 1.0084 1.0036 1.0051 –.0030 71,667
Dec 1277.60 1279.10 1268.30 1270.50 –7.20 382,729 Soybeans (CBT)-5,000 bu.; cents per bu. Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March'18 1.0120 1.0157 1.0105 1.0119 –.0030 167
Nov 972.75 977.50 971.00 973.75 1.00 17,783 March 27.29 27.29 27.29 27.20 –.09 2,744 Australian Dollar (CME)-AUD 100,000; $ per AUD
Feb'18 1281.30 1282.40 1272.80 1274.70 –7.20 84,741
Jan'18 984.50 988.50 982.00 984.75 .25 311,694 Cotton (ICE-US)-50,000 lbs.; cents per lb. Nov .7696 .7696 .7642 .7654 –.0028 1,213
April 1284.30 1285.20 1277.10 1278.60 –7.10 16,398 68.71 68.91 68.11 68.38 –.26 107,439
Soybean Meal (CBT)-100 tons; $ per ton. Dec Dec .7684 .7694 .7636 .7652 –.0027 129,358
June 1288.40 1290.50 1280.50 1282.50 –7.10 14,290 March'18 68.60 68.79 68.07 68.34 –.24 83,031
Dec 312.50 314.20 311.20 311.80 –.50 130,843 Jan'18 .7690 .7690 .7638 .7650 –.0028 631
Dec 1300.80 1300.80 1292.60 1294.70 –7.00 10,470 Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Jan'18 314.40 316.10 313.30 313.80 –.50 95,950 Feb .7659 .7664 t .7621 .7649 –.0027 526
Palladium (NYM) - 50 troy oz.; $ per troy oz. Soybean Oil (CBT)-60,000 lbs.; cents per lb. Nov 157.30 158.65 154.30 156.25 –.55 244 March .7686 .7689 .7634 .7647 –.0027 764
Dec 961.55 979.80 961.45 979.15 16.50 28,917 Dec 34.68 34.79 34.48 34.75 .07 150,977 Jan'18 154.65 157.00 153.10 154.50 –.15 5,931 June .7648 .7648 .7648 .7644 –.0026 243
March'18 959.00 972.05 957.60 971.00 16.35 4,288 Jan'18 34.84 34.95 34.65 34.92 .08 102,062 Mexican Peso (CME)-MXN 500,000; $ per MXN
Platinum (NYM)-50 troy oz.; $ per troy oz. Rough Rice (CBT)-2,000 cwt.; $ per cwt. Interest Rate Futures Dec .05157 .05190 .05143 .05180 .00033 176,308
Nov 914.40 917.20 914.00 915.80 –3.10 17 Nov 1145.00 1145.00 1123.50 1129.00 –16.00 1,232 Treasury Bonds (CBT)-$100,000; pts 32nds of 100% March'18 .05074 .05112 .05069 .05102 .00032 620
Jan'18 922.30 927.70 916.80 919.60 –3.10 70,116 Jan'18 1176.00 1178.00 1151.00 1159.50 –17.00 8,691 Dec 152-090 152-190 152-030 152-150 3.0 729,116 Euro (CME)-€125,000; $ per €
Silver (CMX)-5,000 troy oz.; $ per troy oz. Wheat (CBT)-5,000 bu.; cents per bu. March'18 151-050 151-130 150-310 151-100 3.0 5,744 Nov 1.1650 1.1666 1.1635 1.1660 .0012 5,359
Nov 16.795 16.795 16.650 16.645 –0.157 593 Dec 425.00 426.25 t 416.25 418.50 –6.25 279,130 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 1.1680 1.1692 1.1652 1.1681 .0012 423,384
Dec 16.865 16.910 16.645 16.693 –0.154 140,830 March'18 443.25 444.50 t 433.75 436.00 –7.00 121,079 Dec 125-000 125-035 124-280 124-300 –2.5 3,213,820
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Wheat (KC)-5,000 bu.; cents per bu. March'18 124-215 124-235 124-175 124-195 –2.0 21,463 Index Futures
Dec 54.08 54.85 53.93 54.38 0.23 585,325 Dec 422.00 423.75 t 413.50 416.50 –5.25 152,780 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec 117-080 117-097 117-045 117-060 –2.2 3,064,630 Mini DJ Industrial Average (CBT)-$5 x index
Jan'18 54.29 55.05 54.15 54.59 0.22 328,329 July'18 473.00 473.75 t 463.25 466.25 –6.00 30,938
March'18 116-317 116-317 116-315 116-307 –2.0 23,993 Dec 23290 23352 23269 23325 34 158,763
Feb 54.43 55.14 54.26 54.69 0.21 127,951 Wheat (MPLS)-5,000 bu.; cents per bu. March'18 23279 23339 23263 23317 38 1,647
Dec 617.75 619.50 612.00 612.75 –5.75 34,894 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
March 54.46 55.15 54.30 54.72 0.19 254,702 Dec 107-230 107-235 107-212 107-217 –1.2 1,632,980 S&P 500 Index (CME)-$250 x index
June 54.14 54.73 54.04 54.36 0.10 212,913 March'18 631.00 632.50 626.25 626.75 –4.50 25,328
Dec 2567.20 2575.00 2567.00 2572.70 4.40 58,430
Cattle-Feeder (CME)-50,000 lbs.; cents per lb. March'18 107-170 107-170 107-162 107-165 –1.2 7,709
Dec 52.94 53.34 52.86 53.00 –0.04 270,792 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Mini S&P 500 (CME)-$50 x index
Nov 158.500 160.050 157.925 159.425 1.100 10,786
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Oct 98.845 98.848 98.845 98.845 … 231,699 Dec 2568.00 2575.50 2566.75 2572.75 4.50 3,124,388
Jan'18 157.200 160.300 s 157.150 159.575 2.225 26,726 March'18 2567.50 2575.25 2567.50 2573.00 4.50 67,215
Nov 1.8793 1.8896 s 1.8673 1.8845 .0068 3,824 Jan'18 98.630 98.635 98.625 98.630 –.005 347,464
Dec 1.8767 1.8896 s 1.8657 1.8805 .0043 139,987
Cattle-Live (CME)-40,000 lbs.; cents per lb. 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Mini S&P Midcap 400 (CME)-$100 x index
Oct 119.800 121.000 118.525 120.500 .925 121 1823.50 1837.20 1823.00 1833.90 9.10 92,750
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Dec 100.953 100.984 100.859 100.938 .031 29,068 Dec
Dec 123.225 125.900 s 122.900 125.625 2.225 133,525 1 Month Libor (CME)-$3,000,000; pts of 100% Mini Nasdaq 100 (CME)-$20 x index
Nov 1.7663 1.7841 s 1.7525 1.7796 .0155 7,109
Hogs-Lean (CME)-40,000 lbs.; cents per lb. Nov ... ... ... 98.7500 … 928 Dec 6221.8 6258.8 s 6219.3 6249.8 25.5 269,811
Dec 1.7150 1.7493 s 1.7012 1.7325 .0193 158,391 Dec 65.625 68.175 s 65.425 68.000 2.825 107,789
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec ... ... ... 98.5675 … 2,264 March'18 6233.5 6271.0 s 6232.8 6262.8 25.3 1,679
Feb'18 71.375 73.175 s 71.200 73.000 1.950 57,362 Eurodollar (CME)-$1,000,000; pts of 100% Mini Russell 2000 (ICE-US)-$100 x index
Dec 2.988 3.005 t 2.882 2.896 –.070 310,739 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Nov 98.5900 98.5900 98.5875 98.5875 –.0025 99,885 Dec 1491.20 1508.00 1490.40 1502.80 9.90 65,918
Jan'18 3.125 3.133 t 3.016 3.026 –.074 211,055 Nov 452.20 458.40 s 452.20 458.40 10.00 1,690 Dec 98.4900 98.4950 98.4850 98.4900 … 1,733,340 Mini Russell 1000 (ICE-US)-$100 x index
Feb 3.118 3.134 t 3.020 3.030 –.073 83,033 Jan'18 439.30 448.00 s 439.30 444.00 5.30 4,468 March'18 98.3550 98.3600 98.3450 98.3500 –.0100 1,277,101 Dec 1426.00 1427.00 1424.20 1425.90 2.80 271
March 3.081 3.096 t 2.988 3.000 –.066 170,563 Milk (CME)-200,000 lbs., cents per lb. Dec 98.0900 98.0950 98.0650 98.0750 –.0100 1,573,341 U.S. Dollar Index (ICE-US)-$1,000 x index
April 2.914 2.924 2.851 2.862 –.046 124,824 Oct 16.72 16.73 16.71 16.72 .01 3,818 Dec 94.37 94.60 94.35 94.43 –.02 47,866
May 2.898 2.907 2.840 2.851 –.042 79,837 Nov 16.52 16.70 16.49 16.58 .04 4,591 Currency Futures March'18 94.08 94.29 94.08 94.14 –.02 2,158
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Nov .8850 .8856 .8797 .8801 –.0041 2,811 Source: SIX Financial Information
Cash Prices | WSJ.com/commodities Tuesday, October 31, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future Bonds | WSJ.com/bonds
months.
Tuesday Tuesday Tuesday Tracking Bond Benchmarks
(U.S.$ equivalent) 16.8200 SoybeanMeal,Cent IL,rail,ton48%-u 308.30 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
Energy
Coins,wholesale $1,000 face-a 12614 Soybeans,No.1 yllw IL-bp,u 9.3150
highs and lows for different types of bonds
Propane,tet,Mont Belvieu-g 0.9708 Other metals Wheat,Spring14%-pro Mnpls-u 7.4275
Total Total
Butane,normal,Mont Belvieu-g 1.0521 Wheat,No.2 soft red,St.Louis-bp,u 4.1300
LBMA Platinum Price PM *918.0 return YTD total Yield (%) return YTD total Yield (%)
NaturalGas,HenryHub-i 2.770 Wheat - Hard - KC (USDA) $ per bu-u 3.4850 close return (%) Index Latest Low High close return (%) Index Latest Low High
NaturalGas,TranscoZone3-i 2.720
Platinum,Engelhard industrial 920.0 Wheat,No.1soft white,Portld,OR-u 5.2425
NaturalGas,TranscoZone6NY-i 2.640 Platinum,Engelhard fabricated 1020.0 Broad Market Bloomberg Barclays Mortgage-Backed Bloomberg Barclays
Palladium,Engelhard industrial 981.0
Food
NaturalGas,PanhandleEast-i 2.470 1984.24 2.2 Mortgage-Backed 2.860 2.270 3.120
Palladium,Engelhard fabricated 1081.0 Beef,carcass equiv. index 1939.11 3.2 U.S. Aggregate 2.600 2.100 2.790
NaturalGas,Opal-i 2.590
NaturalGas,MarcellusNE PA-i 0.920 Aluminum, LME, $ per metric ton *2143.0 choice 1-3,600-900 lbs.-u 184.32 U.S. Corporate Indexes Bloomberg Barclays 1954.45 1.8 Ginnie Mae (GNMA) 2.810 2.170 3.090
NaturalGas,HaynesvilleN.LA-i 2.630 Copper,Comex spot 3.0920 select 1-3,600-900 lbs.-u 172.91
2779.73 5.6 U.S. Corporate 3.150 2.950 3.520 1162.93 2.3 Fannie mae (FNMA) 2.880 2.300 3.120
Coal,C.Aplc.,12500Btu,1.2SO2-r,w 57.850 Iron Ore, 62% Fe CFR China-s 58.4 Broilers, National comp wghtd-u,w 0.8481
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w 11.750 Shredded Scrap, US Midwest-s,w 286 Butter,AA Chicago 2.2500 2622.96 4.0 Intermediate 2.700 2.360 3.010 1790.80 2.4 Freddie Mac (FHLMC) 2.890 2.310 3.130
Steel, HRC USA, FOB Midwest Mill-s 619 Cheddar cheese,bbl,Chicago 173.25
Metals 3843.29 9.3 Long term 4.150 4.110 4.710 n.a. n.a. Muni Master n.a. n.a. n.a.
Cheddar cheese,blk,Chicago 176.00
Fibers and Textiles
Gold, per troy oz Milk,Nonfat dry,Chicago lb. 73.25 567.41 4.2 Double-A-rated 2.630 2.290 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a.
Burlap,10-oz,40-inch NY yd-n,w 0.6100 Cocoa,Ivory Coast-w 2344
Engelhard industrial 1274.81 6.3 n.a. n.a. 12-22 year n.a. n.a. n.a.
Cotton,1 1/16 std lw-mdMphs-u 0.6788 Coffee,Brazilian,Comp 1.2495 717.92 Triple-B-rated 3.440 3.320 3.870
Engelhard fabricated 1370.42
Cotlook 'A' Index-t *79.10 Coffee,Colombian, NY 1.4420 High Yield Bonds Merrill Lynch n.a. n.a. 22-plus year n.a. n.a. n.a.
Handy & Harman base 1270.15
Hides,hvy native steers piece fob-u n.a. Eggs,large white,Chicago-u 0.8950
Handy & Harman fabricated 1409.87 n.a. n.a. High Yield Constrained n.a. n.a. n.a. Global Government J.P. Morgan†
Wool,64s,staple,Terr del-u,w n.a. Flour,hard winter KC 15.35
LBMA Gold Price AM *1272.75
Hams,17-20 lbs,Mid-US fob-u 0.78 n.a. n.a. Triple-C-rated n.a. n.a. n.a. 543.31 1.2 Global Government 1.440 1.080 1.560
LBMA Gold Price PM *1272.00 Grains and Feeds Hogs,Iowa-So. Minnesota-u 66.68
Krugerrand,wholesale-e 1320.59 n.a. n.a. High Yield 100 n.a. n.a. n.a. 755.79 0.3 Canada 2.020 1.390 2.190
Barley,top-quality Mnpls-u n.a. Pork bellies,12-14 lb MidUS-u 1.1766
Maple Leaf-e 1333.29
Bran,wheat middlings, KC-u 71 Pork loins,13-19 lb MidUS-u 0.9307 n.a. Global High Yield Constrained n.a. n.a. n.a. n.a. n.a. EMU§ n.a. n.a. n.a.
American Eagle-e 1333.29 n.a.
Corn,No. 2 yellow,Cent IL-bp,u 3.1300 Steers,Tex.-Okla. Choice-u n.a.
Mexican peso-e 1539.00 n.a. Europe High Yield Constrained n.a. n.a. n.a. 712.74 0.9 France 0.810 0.540 1.210
Corn gluten feed,Midwest-u,w 93.2 Steers,feeder,Okla. City-u,w 165.75 n.a.
Austria crown-e 1247.66 Corn gluten meal,Midwest-u,w 473.0
Austria phil-e 1333.29 Fats and Oils U.S Agency Bloomberg Barclays 510.25 -0.8 Germany 0.430 0.170 0.620
Cottonseed meal-u,w 230
Silver, troy oz. Hominy feed,Cent IL-u,w 88 Corn oil,crude wet/dry mill-u,w 34.5500 1638.92 2.1 U.S Agency 1.970 1.330 2.010 287.48 -0.2 Japan 0.420 0.170 0.460
Engelhard industrial 16.7800 Meat-bonemeal,50% pro Mnpls-u,w 220 Grease,choice white,Chicago-h 0.2300
Engelhard fabricated 20.1360 1466.36 1.4 10-20 years 1.810 1.140 1.840 562.92 -0.6 Netherlands 0.550 0.290 0.760
Oats,No.2 milling,Mnpls-u 2.9475 Lard,Chicago-u 0.3600
Handy & Harman base 16.6750 Rice, 5% Broken White, Thailand-l,w 372.00 Soybean oil,crude;Centl IL-u 0.3338 3348.32 7.1 20-plus years 2.960 2.670 3.460 914.77 0.1 U.K. 1.640 1.340 1.790
Handy & Harman fabricated 20.8440 Rice, Long Grain Milled, No. 2 AR-u,w 24.00 Tallow,bleach;Chicago-h 0.2500
LBMA spot price £12.7200 Sorghum,(Milo) No.2 Gulf-u 7.7363 2457.05 4.8 Yankee 2.810 2.470 3.090 n.a. n.a. Emerging Markets ** n.a. n.a. n.a.
Tallow,edible,Chicago-u n.a.
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds
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; ** EMBI Global Index Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
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
as of 10/30
Source: WSJ Market Data Group
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
Borrowing Benchmarks | WSJ.com/bonds selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/ Spread Under/Over U.S. Treasurys, in basis points
Money Rates October 31, 2017 Coupon (%) Maturity, in years
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous Month ago Year ago Latest Prev Year ago
1.500 U.S. 2 1.592 s l 1.576 1.483 0.845
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
2.250 10 2.375 s l 2.371 2.333 1.826
guide to general levels but don’t always represent actual transactions.
2.750 Australia 2 1.833 t l 1.859 1.965 1.652 24.1 28.4 80.7
Week —52-WEEK— Week —52-WEEK— 2.750 10 2.678 t 2.741 2.847 2.353 37.0 52.7
Inflation Latest ago High Low Latest ago High Low
l 30.3
Sept. index Chg From (%)
Switzerland 0.50 0.50 0.50 0.50
0.000 France 2 -0.595 s l -0.602 -0.482 -0.584 -218.6 -217.8 -142.8
level Aug. '17 Sept. '16 Treasury bill auction
Britain 0.25 0.25 0.25 0.25 2.750 10 0.627 t l 0.635 0.748 0.470 -174.8 -173.6 -135.5
Australia 1.50 1.50 1.50 1.50 4 weeks 1.020 1.005 1.300 0.240
U.S. consumer price index 0.000 Germany 2 -0.750 s l -0.752 -0.686 -0.621 -234.1 -232.8 -146.6
13 weeks 1.130 1.105 1.180 0.350
All items 246.819 0.53 2.2 Overnight repurchase 26 weeks 1.260 1.245 1.260 0.500 0.500 10 0.367 t l 0.368 0.466 0.166 -200.8 -200.2 -165.9
Core 252.941 0.19 1.7
U.S. 1.24 1.13 1.38 0.15
0.050 Italy 2 -0.201 s l -0.210 -0.123 0.004 -179.3 -178.6 -84.1
International rates Secondary market
U.S. government rates 2.050 10 1.828 t l 1.842 2.116 1.612 -54.7 -52.9 -21.3
Week 52-Week Fannie Mae
Latest High Low
Discount 0.100 Japan 2 -0.160 t l -0.152 -0.115 -0.242 -175.2 -172.8 -108.6
ago 30-year mortgage yields
1.75 1.75 1.75 1.00 0.100 10 0.069 t l 0.071 0.065 -0.052 -230.7 -229.9 -187.8
Prime rates 30 days 3.466 3.487 3.865 3.031
Federal funds 60 days 3.486 3.513 3.899 3.063 2.750 Spain 2 -0.365 s l -0.371 -0.323 -0.155 -195.7 -194.6 -100.0
U.S. 4.25 4.25 4.25 3.50
Canada 3.20 3.20 3.20 2.70 Effective rate 1.1100 1.1700 1.2000 0.3500 1.450 10 1.467 t l 1.491 1.607 1.222 -90.8 -87.9 -60.4
Japan 1.475 1.475 1.475 1.475 High 1.3125 1.3125 1.3125 0.5625 Other short-term rates
1.750 U.K. 2 0.461 s l 0.454 0.456 0.263 -113.1 -112.2 -58.2
Low 1.0300 1.0000 1.1600 0.2500 Week 52-Week
Policy Rates Bid 1.0700 1.1600 1.1700 0.3000 Latest ago high low 4.250 10 1.334 t l 1.337 1.362 1.145 -104.1 -103.4 -68.1
Euro zone 0.00 0.00 0.00 0.00 Offer 1.0800 1.1700 1.1900 0.3200 Source: Tullett Prebon
Call money
3.00 3.00 3.00 2.25 Corporate Debt
Exchange-Traded Portfolios | WSJ.com/ETFresearch Commercial paper (AA financial) in that same company’s share price.
Largest 100 exchange-traded funds, latest session 90 days 1.26 1.28 1.31 0.62 Investment-grade spreads that tightened the most…
Spread*, in basis points Stock Performance
Tuesday, October 31, 2017 Closing Chg YTD Libor Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
ETF Symbol Price (%) (%)
Closing Chg YTD One month 1.24333 1.23955 1.24333 0.53044 Bank of America BAC 8.000 Jan. 30, ’49 –107 –47 –98 27.39 –0.76
ETF Symbol Price (%) (%) iShS&P500ValueETF IVE 109.15 0.10 7.7 Three month 1.38122 1.37064 1.38122 0.87567 AT&T T 3.800 March 15, ’22 56 –23 77 33.65 0.33
AlerianMLPETF AMLP 10.72 –0.19 –14.9 iShUSPfdStk PFF 38.49 0.21 3.4
iShTIPSBondETF TIP 113.80 0.04 0.6
Six month 1.57511 1.56444 1.57511 1.24267 Kinder Morgan KMI 5.000 Feb. 15, ’21 53 –17 n.a. 18.11 0.06
CnsmrDiscSelSector XLY 91.99 0.01 13.0
CnsStapleSelSector XLP 53.09 0.84 2.7 iSh1-3YTreasuryBd SHY 84.30 –0.06 –0.2 One year 1.84844 1.83456 1.84844 1.55622 Mosaic MOS 5.625 Nov. 15, ’43 235 –10 243 22.34 7.15
DBGoldDoubleLgETN DGP 23.94 –1.48 19.0 iSh7-10YTreasuryBd IEF 106.16 –0.07 1.3 Royal Bank of Scotland RBS 8.000 Aug. 10, ’49 278 –10 304 7.59 0.13
iSh20+YTreasuryBd TLT 124.46 0.03 4.5 Euro Libor
DBGoldDoubleShrt DZZ 5.65 1.05 –17.6 CVS Health CVS 4.750 Dec. 1, ’22 71 –9 70 68.53 0.12
EnSelectSectorSPDR XLE 67.91 0.33 –9.8 iShRussellMCGrowth IWP 116.39 0.55 19.5 One month -0.399 -0.405 -0.376 -0.405
PIMCOEnhShMaturity MINT 101.85 –0.02 0.5
FedEx FDX 4.400 Jan. 15, ’47 114 –9 129 225.81 –0.84
FinSelSectorSPDR XLF 26.60 –0.26 14.4 Three month -0.379 -0.379 -0.322 -0.381
GuggS&P500EW RSP 96.58 0.19 11.5 PwrShQQQ 1 QQQ 152.15 0.38 28.4 Bank of Nova Scotia BNS 2.350 Oct. 21, ’20 44 –8 42 64.52 –0.14
PwrShS&P500LoVol SPLV 46.53 ... 11.9 Six month -0.322 -0.317 -0.212 -0.322
81.11 –0.18 17.7
HealthCareSelSect
IndSelSectorSPDR
XLV
XLI 71.53 –0.40 15.0 PwrShSrLoanPtf BKLN 23.12 –0.09 –1.0 One year -0.233 -0.226 -0.071 -0.233 …And spreads that widened the most
SPDRBloomBarcHYBd JNK 37.24 0.05 2.2
iShIntermCredBd CIU 109.92 –0.08 1.6 Macy's Retail Holdings M 6.700 July 15, ’34 390 30 n.a. … …
iSh1-3YCreditBond 105.25 –0.01 0.3 SPDR Gold GLD 120.67 –0.38 10.1 Euro interbank offered rate (Euribor)
CSJ
SchwabIntEquity SCHF 34.08 0.44 23.1
JPMorgan Chase JPM 7.900 April 30, ’49 –69 26 –114 100.61 –0.79
iSh3-7YTreasuryBd IEI 123.12 –0.09 0.5 One month -0.372 -0.372 -0.366 -0.375
SchwabUS BrdMkt SCHB 62.23 0.18 14.9 Omega Healthcare Investors OHI 4.500 April 1, ’27 225 19 n.a. 28.86 –6.81
iShCoreMSCIEAFEETF IEFA 65.25 0.40 21.7
SchwabUS LC SCHX 61.42 0.08 15.3 Three month -0.331 -0.330 -0.311 -0.332 Mylan NV MYL 5.250 June 15, ’46 205 15 181 35.71 –6.62
iShCoreMSCIEmgMk IEMG 55.78 0.85 31.4
iShCoreMSCITotInt IXUS 62.19 0.48 23.2
SPDR DJIA Tr DIA 233.63 0.13 18.3 Six month -0.276 -0.274 -0.210 -0.276 ABN Amro Bank ABNANV 4.800 April 18, ’26 145 11 n.a. ... ...
SPDR S&PMdCpTr MDY 333.62 0.53 10.6
iShCoreS&P500ETF IVV 258.81 0.11 15.0 One year -0.185 -0.183 -0.069 -0.185 Celgene CELG 5.000 Aug. 15, ’45 153 11 130 100.97 ...
SPDR S&P 500 SPY 257.15 0.16 15.0
iShCoreS&PMdCp IJH 182.96 0.51 10.7
SPDR S&P Div SDY 92.48 ... 8.1 Value 52-Week Time Warner TWX 4.850 July 15, ’45 195 11 174 98.29 –0.20
iShCoreS&PSmCpETF IJR 74.86 1.00 8.9
TechSelectSector XLK 62.95 0.43 30.2 Latest Traded High Low Qualcomm QCOM 4.300 May 20, ’47 136 9 124 51.01 –6.68
iShS&PTotlUSStkMkt ITOT 58.92 0.19 14.9
UtilitiesSelSector XLU 55.12 0.11 13.5
109.47 –0.06 1.3
iShCoreUSAggBd
iShSelectDividend
AGG
DVY 94.75 0.15 7.0
VanEckGoldMiner GDX 22.48 –1.23 7.5 DTCC GCF Repo Index High-yield issues with the biggest price increases…
VangdInfoTech VGT 163.23 0.44 34.3 Treasury 1.215 25.300 1.366 0.244 Bond Price as % of face value Stock Performance
iShEdgeMSCIMinEAFE EFAV 71.78 0.28 17.2
VangdSC Val VBR 128.89 0.51 6.5 Issuer Symbol Coupon (%) Maturity Current One-day change Last week Close ($) % chg
iShEdgeMSCIMinUSA USMV 51.32 0.10 13.5 MBS 1.239 110.300 1.506 0.257
VangdDivApp VIG 96.78 –0.04 13.6
iShGoldTr IAU 12.21 –0.41 10.2 Mattel MAT 6.200 Oct. 1, ’40 98.575 3.45 n.a. 14.12 –9.37
VangdFTSEDevMk VEA 44.18 0.45 20.9 Open Implied
iShiBoxx$InvGrCpBd LQD 121.14 –0.14 3.4
VangdFTSE EM VWO 44.63 0.56 24.7 Settle Change Interest Rate Sprint Capital S 6.875 Nov. 15, ’28 107.375 1.94 111.250 … …
iShiBoxx$HYCpBd HYG 88.47 0.02 2.2
iShJPMUSDEmgBd EMB 116.25 0.09 5.5
VangdFTSE Europe VGK 58.60 0.50 22.2 Parker Drilling PKD 7.500 Aug. 1, ’20 91.500 1.50 n.a. 1.05 0.96
VangdFTSEAWxUS VEU 53.74 0.43 21.6 DTCC GCF Repo Index Futures
iShMBSETF MBB 106.91 –0.03 0.5 Windstream Services WIN 7.750 Oct. 15, ’20 90.000 1.50 85.500 1.88 3.87
VangdGrowth VUG 136.59 0.31 22.5
iShMSCIACWIETF ACWI 70.30 0.31 18.8 VangdHlthCr VHT 151.14 0.05 19.2
Treasury Oct 98.852 -0.003 4427 1.148 Frontier Communications FTR 11.000 Sept. 15, ’25 85.938 1.44 83.250 12.11 1.94
iShMSCIBrazilCap EWZ 40.17 0.02 20.5 VangdHiDiv VYM 82.48 0.02 8.9 Treasury Nov 98.850 unch. 7953 1.150 Weatherford International WFT 6.500 Aug. 1, ’36 83.500 1.28 85.000 3.47 6.12
iShMSCI EAFE EFA 69.63 0.42 20.6 VangdIntermBd BIV 84.49 –0.11 1.7 Treasury Dec 98.715 0.005 1991 1.285 Jones Energy Holdings JONE 9.250 March 15, ’23 80.500 1.25 77.000 1.28 4.92
iShMSCIEAFESC SCZ 63.04 0.59 26.5 VangdIntrCorpBd VCIT 87.95 –0.09 2.6
iShMSCIEmgMarkets EEM 46.28 0.94 32.2
Community Health Systems CYH 7.125 July 15, ’20 87.250 1.13 89.250 5.90 0.85
VangdLC VV 118.12 0.14 15.4
iShMSCIEurozoneETF EZU 43.83 0.53 26.7 Notes on data:
iShMSCIJapanETF EWJ 58.65 0.43 20.0
VangdMC
VangdMC Val
VO
VOE
149.13
106.50
0.43
0.33
13.3
9.6 U.S. prime rate is the base rate on corporate
…And with the biggest price decreases
iShNasdaqBiotech IBB 314.18 –0.78 18.4 VangdREIT VNQ 82.20 –0.01 –0.4 loans posted by at least 70% of the 10 largest First Quantum Minerals FMCN 7.250 April 1, ’23 103.000 –3.00 106.125 ... ...
iShNatlMuniBdETF MUB 110.76 –0.03 2.4 U.S. banks, and is effective June 15, 2017. Other
VangdS&P500 VOO 236.13 0.11 15.0
prime rates aren’t directly comparable; lending
Spectrum Management Holding TWC 4.500 Sept. 15, ’42 91.724 –2.92 94.375 ... ...
iShRussell1000Gwth IWF 129.96 0.26 23.9 VangdST Bond BSV 79.69 –0.04 0.3
practices vary widely by location; Discount rate Murray Energy MURREN 11.250 April 15, ’21 54.750 –2.50 60.000 ... ...
iShRussell1000ETF IWB 143.11 0.11 15.0 VangdSTCpBd VCSH 80.04 0.01 0.8
iShRussell1000Val IWD 119.39 0.04 6.6 VangdSC VB 143.53 0.69 11.3
is effective June 15, 2017. DTCC GCF Repo Index Freeport–McMoran FCX 5.400 Nov. 14, ’34 97.500 –2.25 98.000 13.98 0.29
is Depository Trust & Clearing Corp.'s weighted
iShRussell2000Gwth IWO 181.60 1.03 18.0 VangdTotalBd BND 81.77 –0.06 1.2 average for overnight trades in applicable Avis Budget Car Rental CAR 5.500 April 1, ’23 100.320 –1.68 102.250 … …
iShRussell2000ETF IWM 149.26 0.71 10.7 VangdTotIntlBd BNDX 54.88 –0.02 1.1 CUSIPs. Value traded is in billions of U.S. dollars. United States Steel X 6.875 Aug. 15, ’25 102.250 –1.63 103.875 25.32 –4.31
iShRussell2000Val IWN 124.18 0.52 4.4 VangdTotIntlStk VXUS 55.84 0.47 21.7 Federal-funds rates are Tullett Prebon rates as
of 5:30 p.m. ET. Futures on the DTCC GCF Repo Endo Finance ENDP 5.375 Jan. 15, ’23 80.125 –1.13 83.375 … …
iShRussell3000ETF IWV 152.51 0.22 14.7 VangdTotalStk VTI 132.33 0.20 14.8
iShRussellMid-Cap IWR 200.32 0.34 12.0 VangdTotlWrld VT 72.21 0.32 18.4
Index are traded on NYSE Liffe US. Vine Oil & Gas VRI 8.750 April 15, ’23 97.570 –0.93 99.210 ... ...
iShRussellMCValue IWS 85.64 0.22 6.5 VangdValue VTV 101.65 –0.05 9.3
Sources: Federal Reserve; Bureau of Labor
Statistics; DTCC; SIX Financial Information; *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.
iShS&PMC400Growth IJK 209.13 0.60 14.8 WisdTrEuropeHdg HEDJ 66.41 0.73 15.7
General Electric Capital Corp.; Tullett Prebon Note: Data are for the most active issue of bonds with maturities of two years or more
iShS&P500Growth IVW 148.14 0.11 21.6 WisdTrJapanHdg DXJ 58.07 0.75 17.2 Information, Ltd. Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
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THE WALL STREET JOURNAL. * * Wednesday, November 1, 2017 | B15

MONEY & INVESTING

Carlyle’s Funds Deliver in Strong Market

Performance-based closely watched performance progress on its goal to raise buyout funds appreciated 3.3% when things are going well,” consolidated into its results
measure that reflects changes $100 billion in new capital in the quarter, while KKR & Mr. Rubenstein said. “We have since 2013. The firm recorded
fees drive profit; firm in the value of the firm’s hold- over the next few years. Car- Co.’s private-equity portfolio the good fortune to have indi- a $26 million hit to economic
also reports progress ings, rose to $192.3 million, or lyle raised $7.1 billion in the gained 3.9%. The S&P 500 in- viduals who are ready to suc- net income related to Urbplan,
56 cents a share, from $69.7 third quarter and said 2017 dex rose 4%. ceed us.” including a tax benefit.
in fundraising effort million, or 21 cents a share, a could be the best fundraising Distributable income, the As of Sept. 30, Carlyle had “We are giving our new
year earlier. The latest result year in its history. slice of profits available for $174.4 billion in assets under CEOs a clean slate,” Mr. Con-
BY MIRIAM GOTTFRIED topped the 51-cent average es- The firm said the fourth payout to shareholders, rose to management, up from $169.1 way said of the efforts to re-
timate of analysts in a FactSet quarter was shaping up to be 75 cents a share from 66 cents billion a year earlier and solve outstanding issues that
Carlyle Group LP posted a poll. particularly strong, having a year earlier. Carlyle said it $169.8 billion in the second have been weighing on Car-
third-quarter profit as the pri- Private-equity managers are raised more capital in October would pay a 56-cent dividend, quarter. Fee-earning assets un- lyle’s results for years.
vate-equity firm benefited benefiting from strong global than during the entire third up from 50 cents a year earlier. der management declined, pri- Third-quarter results also
from strong growth in fees it markets and an appetite quarter. Last week, Carlyle named marily because of $5 billion of included a $25 million benefit
collects based on the perfor- among institutions for high- But the quest for new capi- Glenn Youngkin and Kewsong outflows from Carlyle’s now- as the company reversed a re-
mance of its funds. return investments, which ex- tal comes at a cost, as Carlyle Lee to the position of co-CEO. shuttered hedge-fund platform. serve related to the resolution
For the quarter, the Wash- tends to credit and real estate. said fundraising expenses The two will succeed co- The firm also moved to of litigation around Carlyle
ington asset manager reported Carlyle’s fee-related earnings would weigh on fourth-quarter founders David Rubenstein clean up the last of some old Capital Corp., a failed finan-
earnings of $44.6 million, or more than tripled, thanks in results. and William Conway, who will messes during the quarter. In cial-crisis era bond fund. In-
43 cents a share. In the year- part to insurance recoveries Shares of the firm slipped be promoted to senior board addition to the insurance it re- vestors had sued Carlyle, al-
earlier quarter, Carlyle posted related to commodities. Per- 2% to $22.05 on Tuesday. positions alongside the firm’s covered from the closure of its leging it didn’t do enough to
a slim profit of $800,000, or a formance fees climbed by 33% Carlyle’s private-equity third co-founder Daniel D’An- commodities business, Carlyle save the fund. But a judge in
loss of 2 cents a share on a di- as Carlyle invested more of funds appreciated 4% during iello. disposed of its ownership stake Guernsey, where the fund was
luted basis. the money in its funds. the third quarter. Among its “In our view, the best time in Brazilian residential devel- incorporated, ruled on Sept. 4
Economic net income, a The firm is also making peers, Blackstone Group LP’s to bring in new leadership is oper Urbplan, which had been in Carlyle’s favor.

FINANCE WATCH
MASTERCARD FRANKLIN TEMPLETON
Revenue, Profit Beat Low-Cost Foreign
Analysts’ Estimates ETFs Are Launched
Mastercard Inc. reported its Franklin Templeton Invest-
highest revenue jump of the ments, a unit of Franklin Re-
year due to a mix of increased sources Inc., announced the
consumer spending, market- launch of 16 ultralow-cost for-
share gains against smaller net- eign stock exchange-traded
works abroad and the continuing funds that will undercut the
shift of payments from cash to management fees of nearly ev-
cards. ery rival product on the mar-
Third-quarter revenue rose ket.
18% from a year earlier to $3.4 The new, market-cap
billion. Analysts polled by Thom- weighted ETFs will go toe to
son Reuters expected revenue to toe with entrenched rivals
rise to $3.28 billion. Profit in- from BlackRock Inc. and other
creased 21% to $1.43 billion, or players, the latest example of
$1.34 a share, from $1.18 billion, hypercompetitive pricing to
or $1.08 a share, a year earlier. lure assets into new ETFs. The
Analysts expected Mastercard to ETFs will begin trading Nov. 6.
earn $1.23 a share. Franklin’s new ETFs will
The company also reported lower the bar significantly on
higher expenses and raised its what investors pay to own
expense guidance for 2017. Mas- baskets of stocks from a vari-
REUTERS

tercard expects operating ex- ety of regions and countries

pense growth to be at the top from Australia to Mexico.
Coal imported from North Korea in 2010 at Dandong port in northeast China, a region whose resource-heavy economy has struggled. end of the high single-digit-per- A dozen of the new prod-
centage range. That compared ucts, including the Franklin

Chinese Port Manager Defaults

with high single-digit guidance FTSE Japan ETF, will carry an
at its investor day on Sept. 7. expense ratio of 0.09% a year,
In the third quarter, operating or $9 for every $10,000 in-
expenses rose 20% from a year vested. That compares with
A port-management com- the country in 2010 and so from a rebound in coal and in bonds, according to its half- ago because of acquisitions and the 0.48% expense ratio that
pany in northeast China de- hasn’t been affected by the re- steel prices that buoyed the year statement issued in Au- continued investments in new comes with the $17.4 billion
faulted on $150 million in strictions. bottom lines of some compa- gust. It had a 76% debt-to-asset payment technology and other iShares MSCI Japan ETF.
bonds, as highly leveraged “Dandong Group’s problems nies, but analysts say Beijing ratio as of last year. initiatives. Four Franklin ETFs linked to
reflect the lackluster state of also have shown a preference A fixture on lists of China’s Mastercard disclosed sepa- indexes in Brazil, China, Mexico
By Chao Deng in Beijing the whole Chinese economy for orchestrating rescues to wealthiest people, Mr. Wang rately Tuesday that a potential and Taiwan will cost investors
and James T. Areddy and the northeast region,” said fend off defaults. has run into trouble with au- regulatory fine looms. The com- 0.19%, significantly cheaper
in Shanghai Shen Meng, director at Beijing- Asked if authorities would thorities in recent years. He pany said potential fines tied to than the largest ETFs in each
based investment bank Chan- step in to help, a Dandong Port was one of several dozen depu- European Commission objections category.
businesses get squeezed by son & Co. representative said “we’ve al- ties from Liaoning province ex- to its inter-regional interchange Single-country ETFs are
Beijing’s campaign to weed out Defaults, still rare in China, ways worked with the local pelled from China’s legislative fees could exceed $1 billion, widely used tools for macro
risks in the financial system. are expected to increase fol- government” and declined to body last year in a vote-buying “based upon recent interactions” portfolio managers and other
Dandong Port Group Co., lowing the recently completed give details. scandal. Mastercard has had with the asset allocators who aim to
which is controlled by Chinese Communist Party congress, In the U.S., donations he has commission. capture broader regions rather
construction magnate Wang which handed President Xi Jin- made have been scrutinized. —AnnaMaria Andriotis than pick out individual stocks.
Wenliang, told bondholders ping a second five-year term His construction business, Ri- and Cara Lombardo —Chris Dieterich
that it was unable to repay part and endorsed his broad pro-
Dandong Port Group lin Enterprises, for instance,
of 1 billion yuan in bonds due gram to make China a rich is controlled by gave $1 million to $5 million to
Monday. The company cited world power. To that end, Mr. the Clinton Foundation since
“heavy interest-bearing debt Xi emphasized that the govern-
construction magnate its founding, according to re-
burdens and high short-term ment would sustain a push be- Wang Wenliang. cords published by the organi-
payment pressure” and said it gun this year to reduce high zation co-founded by former
is working with underwriters levels of debt that might pose a presidential candidate Hillary
to repay the investors. risk to the financial system. Clinton. A spokeswoman for
The port that Dandong man- Money is increasingly tight Dandong Port’s one billion Mr. Wang put his total dona-
ages is located at the mouth of for Chinese companies as yuan in bonds, issued in 2014, tions to the foundation at
the Yalu River on the border banks respond to government carried a coupon rate of 5.86% around $2 million.
with North Korea. It has ex- calls to more closely scrutinize in annualized interest. Though Also last year, The Wall
panded energetically in recent borrowers’ business plans and the company made the 58.6 Street Journal reported the
QILAI SHEN/BLOOMBERG NEWS

years to handle soybean im- authorities crack down on risk- million yuan in interest due Federal Bureau of Investigation
ports from the U.S. and coal ier financing plays. Monday, it couldn’t meet pay- had examined a $120,000 dona-
from Mongolia, even as much Chinese firms have de- ment of principal on the bonds, tion by a U.S. business owned
of northeast China’s resource- faulted on 35 bond payments whose investors exercised an by Mr. Wang to Virginia Gov.
heavy economy struggled. In- this year, compared with 78 option to sell them to the com- Terry McAuliffe.
ternational sanctions on North last year and 23 in 2015, ac- pany early. There is no indication that
Korea have crimped trade, but cording to data from Shanghai The company has more than any of the donations was illegal.
a company representative said Wind Information Co. 40 billion yuan in unpaid debt, —Liyan Qi and Grace Zhu
the port halted business with The easing stems in part including several billion yuan contributed to this article. A Mastercard ad in China. The company reported higher expenses.

New Highs and Lows | WSJ.com/newhighs Stock

52-Wk %
Sym Hi/Lo Chg Stock
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Continued From Page B12 52-Wk % 52-Wk % FT MC GrwthAlpha FNY 38.16 1.0 iShIndia50ETF INDY 36.17 0.5 NuvNasd100Dyn QQQX 23.65 0.7 RBB Bancorp RBB 25.32 2.0 ZebraTech ZBRA 117.44 5.0 FlexPharma FLKS 2.68 -1.4
52-Wk % Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg FT MCGrAlpDX FAD 63.84 1.0 iShMSCIACWIETF ACWI 70.36 0.3 NVIDIA NVDA 207.89 1.5 ROBOGlblRobotics ROBO 40.73 1.4 ForwardPharma FWP 5.07 -3.7
Stock Sym Hi/Lo Chg ASML ASML 180.97 1.6 CSX-LinksCrudeOil USOI 25.94 0.6
FT NasdCleanEdge QCLN
FT Nasd100Tech QTEC
20.49 1.0 iShMSCIEAFEESGOpt
73.01 0.8 iShPHLXSemicond
ESGD
SOXX
67.50 0.4 ON Semi
173.22 0.8 Orbotech
ON
ORBK
21.37 1.7 Rambus
45.16 1.3 SBA Comm
RMBS
SBAC
14.77 1.7
159.14 4.7
Nasdaq lows - 59 Fred's
GuarantyBcshrs
FRED
GNTY
4.39
28.16
-3.5
-0.5
Abiomed ABMD 193.95 7.5 Cree 37.43 4.0 2.27 -7.5
ProShrUSSemi SSG 10.44 -1.4 CREE FT NasdSemicon FTXL 31.44 1.6 KuraOncology KURA 15.70 3.7 OrganicsETF ORG 32.39 1.6 SelectiveIns SIGI 60.20 2.3 ADMA Biologics ADMA IconixBrand ICON 1.53 -11.4
AdamasPharm ADMS 24.88 4.4 DataIO DAIO 13.10 4.3 AcadiaHealthcare ACHC 30.69 0.1
ProShrUSTech REW 16.94 -1.0 FT RBA AmerInd AIRR 26.95 1.2 LGI Homes LGIH 60.48 2.2 OrthofixIntl OFIX 54.33 7.8 Semtech SMTC 41.40 3.1 InsysTherap INSY 4.10 -10.3
AdvAcceltrApp AAAP 81.17 0.6 Datawatch DWCH 12.65 5.0 Aceto ACET 9.88 -0.7
ProShsVIXMTFut VIXM 23.05 -0.8 FT RiverFrDynAP RFAP 60.43 0.3 LKQ LKQ 37.72 3.2 PTC PTC 66.95 0.4 SiliconLab SLAB 95.20 1.6 JMU JMU 0.95 -5.6
Altaba AABA 70.27 1.8 DavisWorldwide DWLD 25.19 0.8 AchieveLifeSci ACHV 1.46 -4.4
TeucriumWheatFund WEAT 6.14 -1.1 FT RiverFrDynDev RFDI 64.28 0.5 LamResearch LRCX 210.09 1.1 Park-Ohio PKOH 47.50 3.2 SilvercrestAsset SAMG 16.30 1.9 LombardMedical EVAR 0.26 -21.6
AmerSoftware AMSWA 12.54 0.6 DraperOakwoodRt DOTAR 0.46 -7.0 AduroBiotech ADRO 7.95 -3.6
UBSProSh3xInvCrd WTID 21.13 -1.3 FT SKoreaAlpha FKO 28.12 2.7 LeggMasonUSDivCore UDBI 31.16 1.0 PatrickIndustries PATK 96.25 0.1 SinovacBiotech SVA 7.29 1.8 NetSolTech NTWK 3.20 -3.0
Apple AAPL 169.65 1.4 Dunkin' DNKN 60.66 ... AlcentraCapital ABDC 9.24 -2.7
US NatGas UNG 5.92 -2.4 FT TotalUSMkt TUSA 31.83 1.2 LendingTree TREE 274.40 1.3 Paylocity PCTY 53.49 3.5 Skyworks SWKS 114.80 1.7 NovelionTherap NVLN 4.70 -3.9
Apptio APTI 24.50 27.0 EXACT Sci EXAS 57.95 9.8 AppliedGenetic AGTC 3.40 -8.1
VelocityShares3xLg UGAZ 8.31 -7.6 Flex FLEX 18.04 -0.4 Littelfuse LFUS 212.54 -0.5 PaymentDataSys PYDS 2.93 80.2 SolarEdgeTech SEDG 33.35 0.9 NuCana NCNA 11.03 -9.1
Autodesk ADSK 125.01 0.8 Ebix EBIX 68.20 1.7 ArgosTherap ARGS 0.14 0.7
Velocity3xInvCrude DWT 19.35 -1.8 FlexShUSQualLC QLC 32.06 0.3 MAM Software MAMS 9.42 4.4 PayPal PYPL 72.74 2.0 SterlingCnstr STRL 18.48 15.5 ParkerVision PRKR 1.40 -3.3
AveXis AVXS 107.02 -0.8 eHealth EHTH 26.29 1.9 AzurRxBioPharma AZRX 2.80 1.0
FormFactor FORM 18.43 1.1 MGPIngredients MGPI 68.43 2.1 PennNational PENN 26.11 2.5 SunHydraulics SNHY 57.79 2.0 IPDN 2.59 -8.9
AxoGen AXGN 20.75 2.0 ElectroScientific BancFst pf BANFP 26.05 -2.1 ProfDiversity
NYSE American highs - 3 Bio-Techne TECH 131.51 6.0
EnantaPharma
ESIO
ENTA
18.10 3.1
50.87 0.2
Garmin GRMN
GlbXInternetThings SNSR
57.09 0.2 MKS Instrum
20.00 0.5 Marriott
MKSI
MAR
110.60 2.9 PilgrimPride
119.91 0.8 PinnacleEnt
PPC
PNK
31.97 2.2 TPIComposites
26.03 1.0 TabulaRasaHlth
TPIC
TRHC
26.00 4.9
BedBath
29.55 9.4 Big5SportingGoods
BBBY 19.52 -0.2 ProShUltraProShQQQ SQQQ
RMGN
23.22
1.36
-1.1
-3.2
Ashford AINC 75.85 8.2 BoingoWireless WIFI 23.49 4.1 BGFV 6.25 -9.9 RMG Networks
EntegraFin ENFC 27.85 0.6 Grifols GRFS 23.69 5.3 MatchGroup MTCH 27.02 2.0 PointerTel PNTR 18.95 4.4 TakeTwoSoftware TTWO 110.86 0.9 BorqsTechnologies BRQS ROIC 17.87 -1.3
CentralSecs CET 26.90 0.4 Broadcom AVGO 266.70 1.0 4.00 -8.0 RetailOppor
Entegris ENTG 33.05 2.2 H&E Equipment HEES 33.14 0.9 MazorRobotics MZOR 65.97 7.5 PwrShDWAMom DWLV 30.58 0.6 TechTarget TTGT 12.51 1.1 BroadwindEnergy BWEN SHLDW 1.00 -12.1
LadenburgThalmann LTS 3.07 4.4
Brooks Auto BRKS 34.54 2.9 2.69 -3.7 SearsHoldingsWt
EsquireFinancial ESQ 16.86 2.8 HeritageCommerce HTBK 15.41 1.9 Medpace MEDP 39.64 5.3 PwrShDWA Mom PDP 50.85 0.6 TexasRoadhouse TXRH 53.61 -0.8 CapitalaFinance CPTA SHOS 1.55 -6.1
CabotMicro CCMP 97.97 1.7 8.32 -1.9 SearsHometown
FARO Tech FARO 52.65 1.2 HorizDAXGermany DAX 31.55 0.8 MelcoResorts MLCO 25.32 6.9 PwrShDWATactical DWTR 28.38 1.7 TowerSemi TSEM 33.30 1.9 Check-Cap SNOA 4.22 0.5
1.25 -9.8 SonomaPharm
NYSE American lows - 7 CambridgeBncp
CanterburyPark
CATC
CPHC
74.00 4.2
13.05 0.8
Facebook FB 180.80 0.1 IAC/InterActive IAC 129.28 1.4 MercerIntl MERC 14.85 3.2 PwrShDynConDis PEZ 48.81 1.3 UtdCmntyBcp UCBA 21.10 2.7 ChinaCeramics
CHEK
CCCL 1.25 ... SonusNetworks SONS 7.74 -7.0
CavcoIndustries CVCO 157.70 2.0 FidelityNasdComp ONEQ 264.97 0.4 II-VI IIVI 46.50 2.0 MicrochipTech MCHP 95.69 -0.4 PwrShDynHlthcr PTH 69.70 1.8 UniversalDisplay OLED 149.85 5.7 DHX Media VV DHXM 3.00 8.2 SummerInfant SUMR 1.61 -4.7
Cohen COHN 9.83 -0.2
CboeGlobalMkts CBOE 113.38 1.1 FirstBancshares FBMS 32.13 2.1 IPG Photonics IPGP 219.64 2.5 MicronTech MU 44.57 6.4 PwrShDynIndls PRN 60.90 1.6 UniversalForest UFPI 113.57 4.0 DareBioscience DARE 2.37 -3.8 Teligent TLGT 5.56 -2.2
ComstockMining LODE 0.11 -7.7
Cellectis CLLS 35.07 2.9 FT APxJapan FPA 34.87 0.9 IXYS IXYS 24.96 -0.2 Mimecast MIME 32.00 2.5 PwrShDynTech PTF 53.71 1.5 UTStarcom UTSI 3.20 0.6 DarioHealth DRIO 1.58 3.5 Travelzoo TZOO 6.70 -3.6
GoldStandrdVntr GSV 1.29 -2.9
ChinaInternet CIFS 43.30 0.2 FT CloudComp SKYY 43.90 0.3 IntegratedDevice IDTI 32.34 7.2 MonolithicPower MPWR 122.17 1.4 PwrShQQQ 1 QQQ 152.37 0.4 VangdRuss1000Grw VONG 133.48 0.2 DianaContainer DCIX 0.32 -28.9 Trevena TRVN 1.38 3.4
IntlTowerHill THM 0.40 -5.4
Cimpress CMPR 109.92 0.1 FT DorseyDyn5 FVC 25.29 0.2 Intel INTC 45.80 2.5 MonsterBeverage MNST 58.54 1.9 PwrShS&P SmInds PSCI 62.56 2.1 WintrustFin Wt WTFCW 58.34 6.7 DigitalAlly DGLY 1.75 -1.4 trivago TRVG 7.25 -1.5
Libbey LBY 6.12 -25.3
CogentComm CCOI 53.95 2.9 FT DorseyFoc5 FV 27.15 0.3 IntelliaTherap NTLA 33.34 8.9 NV5Global NVEE 58.95 0.3 PwrShS&P InfTech PSCT 81.54 0.6 WintrustFin WTFC 81.74 1.6 DiscoveryComm A DISCA 18.60 -0.5 VantageEnerA VEAC 9.68 -0.5
TelInstrElec TIK 2.90 -3.3
Cognex CGNX 129.89 -0.4 FT NasdTechDiv TDIV 34.35 0.4 InteractiveBrkrs IBKR 54.16 1.6 Nathan's NATH 81.40 1.9 PrincipalUSSCMulti PSC 30.48 1.4 WisdTrGermanyHdg DXGE 32.70 0.5 DiscoveryComm C DISCK 17.56 -0.7 VS2xVIXMedTerm TVIZ 10.66 -1.4
US Antimony UAMY 0.21 -4.6
CognizantTech CTSH 76.51 0.2 FTEurozoneAlpha FEUZ 43.44 -0.7 iSectorsPostMPT PMPT 27.01 0.7 NationalVision EYE 29.39 2.7 ProShEquRising EQRR 43.31 2.3 WisdTrJapanHdgSC DXJS 44.76 1.1 DragonVictory LYL 6.65 -1.0 Versartis VSAR 1.70 -4.0

Nasdaq highs - 183 Cohu

ColumbusMcKinn
COHU
CMCO
26.17 3.0 FT GlblAgri
41.50 9.0 FT JapanAlpha
FTAG
FJP
27.71 0.4
57.51 0.5
iShAsia50ETF AIA
iShCommodSelStrat COMT
64.70 0.9 NewaterTech
36.04 0.2 NovaMeasuring
NEWA
NVMI
14.87 -4.5 ProShUltPrQQQ
31.69 2.3 PumaBiotech
TQQQ
PBYI
130.55 1.1 Workday
131.00 -0.6 Xilinx
WDAY
XLNX
111.83 2.4 Egalet
73.90 0.9 ElbitImaging
EGLT
EMITF
0.97 -2.0 Viacom A
2.40 0.3 Vivus
VIA
VVUS
29.40
0.64
-0.8
5.6
Ansys ANSS 137.05 0.7 Corvel CRVL 61.20 2.5 FT MC CoreAlpha FNX 63.47 0.7 iShCurrHdMSCIGrmny HEWG 29.51 0.4 Novanta NOVT 47.80 1.8 QuinStreet QNST 9.38 20.8 Xunlei XNET 10.13 -1.0 Essendant ESND 9.25 -1.2 WestmorelandCoal WLB 1.68 -12.8

Dividend Changes
Dividend announcements from October 31.
Amount Payable / Amount Payable / Amount Payable / Amount Payable /
Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record Company Symbol Yld % New/Old Frq Record
Initial Delaware Invest Ntl Muni VFL 4.5 .05 M Nov24 /Nov09 Wells Fargo Multi-Sector ERC 9.9 .10772 M Dec01 /Nov15
Increased Wells Fargo Utilities Fd ERH 6.8 .075 M Dec01 /Nov15
Franklin Lib Int Muni Opp FLMI .01557 Nov06 /Nov01 Dreyfus Municipal Income DMF 5.5 .041 M Nov30 /Nov14
Alliance Holdings GP AHGP 10.6 .735 /.73 Q Nov17 /Nov09 Dreyfus Strat Muni Bond DSM 5.9 .0415 M Nov30 /Nov14
Nuveen EM Debt 2022 JEMD .0435 Dec01 /Nov15 Foreign
Alliance Resource Ptrs ARLP 10.3 .505 /.50 Q Nov14 /Nov07 RPX RPXC .05 Dec05 /Nov20 Dreyfus Strategic Munis LEO 5.9 .043 M Nov30 /Nov14 Allergan AGN 1.6 .70 Q Dec15 /Nov17
Brixmor Property Group BRX 6.3 .275 /.26 Q Jan16 /Jan04 Franklin Liberty Invt Grd FLCO 3.3 .06873 M Nov06 /Nov01
Chase Corp CCF 0.7 .80 /.70 A Dec06 /Nov09
Funds and investment companies Special
DE Enhncd Glbl Div Inco DEX 5.4 .0525 M Nov24 /Nov09 Franklin Liberty Mun Bd FLMB 1.5 .03148 M Nov06 /Nov01
Cognex CGNX 0.3 .09 /.085 Q Dec01 /Nov17 AH Belo A AHC 6.6 .14 Dec01 /Nov09
Delaware Grp Div & Income DDF 4.5 .04 M Nov24 /Nov09 Franklin Short Dur US FTSD 2.4 .19498 M Nov06 /Nov01
Mercury General MCY 4.5 .625 /.6225 Q Dec28 /Dec14 Delaware Invest Colo VCF 4.5 .055 M Nov24 /Nov09 Vanguard Tax-Exempt Bd VTEB 1.9 .08 M Nov06 /Nov02 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
North Eur Oil Royalty Tr NRT 13.2 .22 /.20 Q Nov29 /Nov17 Delaware Invest Minn VMM 3.7 .0425 M Nov24 /Nov09 Wells Fargo Incm Opps Fd EAD 8.0 .05641 M Dec01 /Nov15 S2:1: stock split and ratio; SO: spin-off.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B16 | Wednesday, November 1, 2017
Treasurys
Hit Pause
As Fed
Assembles
BY GUNJAN BANERJI
U.S. government bonds held
steady Tuesday as the Federal
Reserve’s two-day policy
meeting kicked off.
The yield on the benchmark
10-year Treasury note closed
at 2.374%, the
CREDIT same level as
MARKETS Monday, notch-
ing a second
consecutive
monthly gain. The yield on
Treasurys maturing in two
years rose to 1.592% from
1.580%, also capping a second-
straight monthly climb.
Yields moved in a narrow
range Tuesday as the widely
watched central bank meeting
began.
Officials are likely to leave
short-term interest rates un-
changed this week, gearing up
to consider another rate rise
at the next scheduled meeting
in December.
“We’re hitting a little bit of
a pause button,” said Guy
LeBas, chief fixed-income
strategist at Janney Montgom-
ery Scott.
Investors also have been
watching for clues about who
President Donald Trump in-
tends to pick as the next Fed-
eral Reserve chairman. Re-
ports in recent days that the
president was leaning toward
Fed governor Jerome Powell
have sparked some buying, as
Mr. Powell appears less ag-
gressive about raising rates
than some other contenders
and could adopt a similar ap-
proach to Chairwoman Janet
Yellen, some investors said.
Recent economic data have
painted an optimistic picture
of the economy. A gauge of
consumer confidence rose
near a 17-year high in October,
according to the Conference
Board. A measure of wages
and benefits for workers,
known as the employment-
cost index, rose a seasonally
adjusted 0.7% in July through
September, the Labor Depart-
ment said Tuesday, in line
with what economists sur-
veyed by The Wall Street Jour-
nal had expected.
Still, signs have lingered
that inflation remains lower
than Federal Reserve officials
would like, despite economic
growth.
Dollar Rises
Ahead of
Fed Nominee
BY DANIEL KRUGER
The U.S. dollar edged
higher Tuesday, wrapping up
its largest monthly advance
since November 2016 as con-
sumer confidence rose and in-
vestors awaited President
Donald Trump’s announce-
ment about the next head of
the Federal
CURRIENCIES Reserve.
The Wall
Street Jour-
nal Dollar Index, which mea-
sures the U.S. currency
against a basket of 16 others,
gained 0.1% to 87.62. The in-
dex has risen for two consecu-
tive months, gaining 2.2% in
that time.
The dollar’s current price
reflects a 70% probability that
Mr. Trump will choose Fed
governor Jerome Powell, who
has worked as an investment
banker for Carlyle Group, ac-
cording to Greg Anderson, a
currency strategist at BMO
Capital Markets. The market is
pricing in roughly 30% odds
that former Fed governor
Kevin Warsh or Stanford eco-
nomics professor John Taylor
could be selected, he said.
The currency would likely
weaken should Mr. Powell be
tapped for the job, because he
is perceived as being less ag-
gressive in tightening mone-
tary policy than other candi-
dates, while it could rise if
either alternative is selected,
Mr. Anderson said.
“Trump has been known to
surprise us,” Mr. Anderson
said.
The central bank is meeting
Tuesday and Wednesday to
discuss interest rates. Fed offi-
cials said last month that they
expect to raise interest rates
once more this year.
Shares of Mondelez, which makes Oreos and Wheat Thins, rose 5.4% after the company reported higher sales and profit. A Mondelez plant in Ukraine.
S&P 500 Feasts on Food Stocks
BY MICHAEL WURSTHORN
Shares of Mondelez Inter-
national, Kellogg and other
food companies helped the S&P
500 edge higher Tuesday, as
the index notched its biggest
monthly gain since February.
Corporate earnings contin-
ued to dictate the market’s
biggest moves, with companies
generally being
TUESDAY’S rewarded by
MARKETS investors when
they beat ex-
pectations for
the most recent quarter. More
than half of S&P 500 compa-
nies already have released re-
sults, and another big batch is
scheduled to report this week,
including Facebook on
Wednesday and Apple on
Thursday.
“If Apple looks pretty good
after their earnings, it will lift
the market higher,” said Chris
Bertelsen, chief investment of-
ficer of Aviance Capital Part-
ners, an investment firm with
$2.2 billion in assets under
management. He expects in-
dexes to grind higher through
the rest of this year on earn-
ings and data that continue to
paint an upbeat picture of the
economy. “After that, I’d be
DOW
Continued from page B1
nies has boosted shares of
newer internet companies such
as Amazon.com Inc. and stal-
warts such as Microsoft Corp.
and Intel Corp. in recent ses-
sions. The Nasdaq Composite,
which has a heavy weighting of
tech stocks, posted its 62nd re-
cord close of the year Tues-
day—tying 1980 for the most
closing highs in a calendar year.
Still, if the forces that have
disproportionately benefited
large U.S. exporters through-
out the year reverse course,
similar to what happened in
the fall of 2015 and in early
2016, stocks could come under
pressure. Back then, investors
grew increasingly concerned
that China’s economy was
slowing drastically, sending
the Dow industrials tumbling
nearly 600 points in a day and
oil prices to multiyear lows.
But this year’s pickup in
global economic growth has
been notable, investors and an-
alysts say, because of its
breadth and synchronization
across regions. All 45 coun-
tries tracked by the Organiza-
tion for Economic Cooperation
and Development are on track
to post economic growth this
year—a feat last accomplished
in 2007.
The gains, spreading from
the U.S. to Germany to areas
that had been laggards in recent
years, such as Greece and Bra-
zil, have been a boon to multi-
national firms, which have
noted increased demand for
their products this earnings
season.
Shares of Dow component
3M Co., the maker of products
including Post-it Notes, Scotch
tape and ACE bandages, have
risen 29% this year as the firm’s
sales have grown across the
Americas, Europe and Asia,
among other regions. Industrial
giant Caterpillar Inc., another
member of the Dow, has
* *** THE WALL STREET JOURNAL.
MARKETS
VINCENT MUNDY/BLOOMBERG NEWS
Shares of the food company closely follow President Don-
Throwback rose 3.66, or 6.2%, to 62.53. ald Trump’s announcement of
The Nasdaq Composite tied the 1980 record for 2017
Those gains led the S&P a Federal Reserve chairman,
the number of closing highs in a calendar year. 62 records 500’s consumer-staples group which is expected this week.
0.8% higher. The Journal reported in recent
60 records Not all corporate results days that Mr. Trump was likely
were upbeat. Under Armour to nominate Federal Reserve
50 shares slid 3.89, or 24%, to governor Jerome Powell,
12.52, after the athletic-wear though the president hadn’t
maker reported its first-ever made a formal decision and
40 quarterly sales decline and cut could still change his mind.
its growth forecasts. Health in- Elsewhere, the Stoxx Europe
30 surer Aetna fell 1.20, or 0.7%, 600 rose 0.3% and ended the
to 170.03, after it reported a month 1.8% higher.
decline in revenue and raised Japan’s Nikkei Stock Average
20
its profit forecast for the year. was mostly unchanged after
Chip maker Qualcomm de- falling as much as 0.8% earlier
10 clined 3.65, or 6.7%, to 51.01, in the session. The Nikkei ended
after The Wall Street Journal October 8.1% higher, its stron-
reported late Monday that Ap- gest month in two years. Early
0
ple was considering using only Wednesday, it was up 1.2%.
1971 ’75 ’80 ’85 ’90 ’95 2000 ’05 ’10 ’15 chips from Intel and possibly —Riva Gold
Source: WSJ Market Data Group THE WALL STREET JOURNAL. MediaTek in its iPhones and contributed to this article.
iPads. Shares of Intel were up
surprised if they moved points, or 0.4%, to 6727.67, tying 1.12, or 2.5%, to 45.49, while
higher.” its 1980 feat of hitting 62 re- MediaTek rose 8, or 2.4%, to AUCTION RESULTS
Here are the results of Tuesday's Treasury auction.
The S&P 500 gained 2.43 cord closes in a calendar year. 342.50 in Taiwan. All bids are awarded at a single price at the market-
clearing yield. Rates are determined by the difference
points, or 0.1%, to 2575.26, Shares of Mondelez, the Rockwell Automation between that price and the face value.
putting its monthly gain at maker of Oreo cookies, Wheat surged 13.82, or 7.4%, to FOUR-WEEK BILLS
2.2%. It was the broad index’s Thins crackers and Trident 200.82, after the Journal re- Applications $149,315,993,600
seventh straight month of ad- gum, gained $2.13, or 5.4%, to ported the manufacturing-soft- Accepted bids $50,000,401,100
" noncompetitively $541,606,600
vances, its longest streak since $41.43, after the company re- ware maker rebuffed Emerson " foreign noncompetitively $0
May 2013. ported rising sales and a higher Electric’s takeover bid. Shares Auction price (rate) 99.920667
(1.020%)
The Dow Jones Industrial profit. Kellogg, meanwhile, beat of Emerson fell 2.88, or 4.3%, Coupon equivalent 1.035%
Average added 28.50 points, or sales and profit expectations, to 64.46. Bids at clearing yield accepted 58.49%
0.1%, to 23377.24, while the helped by sales of its Pop-Tarts Aside from corporate news, Cusip number 912796ME6
Nasdaq Composite rose 28.71 and Eggo waffles products. investors said they planned to The bills, dated Nov. 2, 2017, mature on Nov. 30, 2017.
Banner Month for the Blue Chips
A series of strong earnings reports against a backdrop of improving global growth helped the Cut in U.S.
Output
Dow Jones Industrial Average rise further than the S&P 500 in October.
Dow Jones Industrial Average
5% 4.3%
4
Performance for October
S&P 500
Buoys Oil
Prices
3 2.2%
Record closes
2
BY SARAH MCFARLANE
1 AND ALISON SIDER
0 Oil prices continued to hit
October 6 13 20 27 31 new multimonth highs Tues-
day as a lower-than-expected
In October, the Dow industrials outperformed the S&P 500 by Five stocks accounted for U.S. production figure helped
the largest margin in any month since November 2008. roughly half of the Dow breathe new life into a rally.
industrials’ point gain in October. U.S. crude futures rose for
4 percentage points a fourth straight day, gain-
3M
3
ing 23 cents, or 0.41%, to
140 points $54.38 a
2 Apple COMMODITIES barrel on
103 the New
1 York Mer-
UnitedHealth Group cantile Exchange—the high-
0
99 est since February. Brent,
–1 the global benchmark, rose
Caterpillar
–2
47 cents, or 0.77%, to $61.37
76
a barrel on ICE Futures Eu-
–3 Monthly McDonald’s rope, hitting another one-
2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 70 year high.
Oil prices surged in Octo-
Source: FactSet THE WALL STREET JOURNAL. ber, with Brent rising around
8% in the past four weeks to
jumped 46%, buoyed by rising losses in recent weeks, as the ness can last. a more than two-year high
demand globally for bulldozers, passing of budget plans in The currency has crept on Monday, supported by in-
excavators and other heavy ma- Congress renewed some inves- higher in recent sessions, creased talk that members of
chinery. tors’ hopes that lawmakers which analysts and investors the Organization of the Pe-
“We’re seeing broad-based would push through corporate- attribute in part to a recent troleum Exporting Countries
sales increases across a num- tax cuts, company officials run of upbeat U.S. data that and other producers, includ-
ber of industries in all re- have said the currency’s weak- could bolster the case for the ing Russia, would extend
gions,” said Jim Umpleby, ness relative to its peers could Federal Reserve to tighten production cuts beyond an
chief executive of Caterpillar, boost profits by making their monetary policy, signs of prog- end date of March 2018.
on the company’s third-quar- products cheaper for buyers ress on Republicans’ tax over- On Tuesday, prices got a
ter earnings call Oct. 24. outside the U.S. haul and weakness in the euro. jolt after the U.S. Energy In-
As of Tuesday, S&P 500 The WSJ Dollar Index, a “I’m still astounded as to how formation Administration re-
companies that receive more measure of the dollar against a the dollar has behaved this ported that U.S. crude out-
than half of their revenue from basket of 16 other currencies, year,” said James Athey, senior put edged down in August,
overseas were posting earn- has fallen 5.7% in 2017. investment manager at Aber- falling slightly to 9.203 mil-
ings growth of 12.9% for the “We are seeing a bit of fa- deen Standard Investments, lion barrels a day from 9.234
third quarter from the year- vorable impact on our real dol- which has around $758 billion in million barrels a day in July.
earlier period, according to lar growth from the recent assets under management. With The final August figure
FactSet, outpacing the 4.2% dollar weakening,” said An- the Fed signaling it remains on was lower than what the
earnings-growth rate for do- drew Campion, chief financial track to keep raising interest EIA’s weekly data would
mestic companies. officer at Nike Inc., on an rates, and U.S. economic data have predicted, indicating
A weaker dollar also has earnings call in September. largely solid lately, the currency that U.S. producers haven’t
helped. While the U.S. cur- Some still question how looks “very cheap” relative to its been pumping as much oil as
rency has pared some of its much longer the dollar’s weak- peers, Mr. Athey said. some thought.
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. Wednesday, November 1, 2017 | B17

MARKETS
Investors Brace for a Rise in U.K. Rates
BY MIKE BIRD Union, the currency market

The Bank of England is ex-

pected to raise interest rates
for the first time in a decade
Thursday, and investors are
trying to size up what that
means across different markets.
What the nine-member
monetary-policy committee
says about the future of inter-
est rates could move markets
sharply, even if the central
bank does what is expected,
like the European Central
Bank did in October.
“We could see quite big
swings [in markets] this week
depending on how they com-
municate the rate hike,” said
Kacper Brzezniak, U.K. fixed-in-
come portfolio manager at Alli-
anz Global Investors. “You’ve
Currencies have borne
the brunt of shifting
expectations for rates,
political developments.
already got a lot of uncertainty
about what comes next.”
The overnight index swap
curve—a key measure of future
interest-rate expectations—has
risen to account for the higher
rates predicted. However, it is
pricing in only one more rate
increase in the next five years
than it was on Sept. 13, immedi-
ately before the BOE hinted that
a rate rise would come soon.
Investors are split over
what guidance the bank will of-
fer on the future path of policy.
“We’re not in the ‘one and
done’ camp,” said Paul Rayner,
head of government bonds at
Royal London Asset Manage-
ment. “We think it’d be very
odd if we don’t see a hike on
Thursday, followed by some
sort of signal that they’d be
happy pricing another rate
hike by the end of next year.”
Since the U.K.’s June 2016
vote to leave the European
has borne the brunt of shifting
expectations for interest rates
Ready for a Rise
and political developments. Markets have already begun reacting to the Bank of England rate increase that is expected on Thursday.
Roughly as many speculators
are now betting on a fall in the 1.2%
pound as on a rise, according to Expected U.K. interest rates
Overnight index
data from the U.S. Commodity have moved higher...
1.0 swap curve on
Futures Trading Commission. The sterling overnight index Oct. 30, 2017
As recently as April, there were swap curve, one measure of
0.8 Overnight index
over 100,000 more long than interest-rate expectations,
short speculative contracts on swap curve on
indicates that the Bank of
0.6 Sept. 13, 2017
sterling—meaning more bear- England will still raise rates
ish bets on the currency. very slowly.
If the U.K. central bank sur- 0.4
prises markets by holding
rates at current levels, some 0.2
analysts believe positioning
could shift back, causing ster-
ling to decline sharply again. 0
BNP Paribas analysts expect 2018 ’19 ’20 ’21
the central bank won’t raise …while U.S. speculators have vacated bets that the pound will fall.
interest rates Thursday and
forecast the pound will fall Four-week rolling net long/short noncommercial contracts on the British pound
back to around $1.25 by the 0 contracts
end of March 2018.
U.K. government bonds, or
–20,000
gilts, are also priced for a rate
increase. Two-year yields
climbed sharply in September, –40,000
back to similar levels recorded
just before the EU referendum. –60,000
Even so, analysts at Barclays
regard U.K. government bonds Negative numbers are bets
as more overpriced than any –80,000
that the pound will fall.
other European market, citing
the possibility of a disorderly –100,000
British exit from the EU. 2015 ’16 ’17
U.K. equities have largely
followed sterling since the EU Gilt yields are back to levels seen before the EU referendum... …and the weaker pound has helped boost share prices.
referendum. Companies in the
FTSE 100 make less than a 2.0% 20%
third of their total revenues in
the U.K., according to data 10-year Two-year Change since 2015
provider FactSet. That means
that when the pound sells off, 1.5 10
the share prices of the compa-
nies—denominated in ster-
ling—are prone to rise.
However, “weaker sterling 1.0 0 FTSE 100
will likely fail to support U.K. Sterling effective
equities in the period ahead,” exchange-rate index
said Yianos Kontopoulos,
global head of macro strategy 0.5 –10
at UBS, citing a tipping point
at which depreciation causes
faster inflation and further
rate increases and stops bene- 0 –20
fiting the FTSE 100. “Too
2016 ’17 2016 ’17
much cumulative depreciation
raises uncertainty,” he added. Sources: Bank of England (interest rates); FactSet (contracts, indexes); Tradeweb (yields) THE WALL STREET JOURNAL.

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

CVS’s Deal Samsung Needs to Push Revamp OVERHEARD

For Aetna Samsung Electronics’ year and double them next Timing is everything on

Gets Pricier leaders are passing the ba-

Long-term investors tend
not to put much weight on
daily share-price moves. CVS
Health shareholders don’t
have that luxury.
CVS recently made an of-
fer valued at about $66 bil-
lion to acquire health insurer
Aetna. Aetna, which re-
ported solid earnings on
Tuesday, didn’t address the
offer on a conference call
with analysts.
The approach from CVS
makes good strategic sense.
Diversification into health
insurance is a logical way to
repel competitive threats.
The trouble is that swallow-
ing a company of Aetna’s
heft will be a challenge. CVS
boasts an investment-grade
credit rating and a fairly
strong balance sheet, but an
all-cash offer appears un-
likely because CVS had about
$25 billion in net debt at the
end of June. That number is
understated because it
doesn’t include certain lease
obligations.
CVS probably needs to use
its stock to help get the deal
done, yet its shares have
weakened. They are down
about 15% over the past
month and about 6% since
news of the Aetna offer
broke. That makes things
tougher. Assuming a $66 bil-
lion offer of half cash and
stock, CVS would have had
to issue about 412 million
shares at the $80 stock price
it hit a month ago. That
would increase the current
share count by about 40%.
But the share count in-
creases by about 50% at the
current stock price.
A stock-price threshold
exists where the deal eventu-
ally won’t be attractive to
pursue. This is one situation
in which investors of all time
horizons will want to watch
price movements carefully.
—Charley Grant
ton on to the younger gener-
ation, while returning more
cash to shareholders. Hope-
fully, this is the beginning of
the end for the technology
giant’s old-fashioned corpo-
rate governance ways.
Samsung said Tuesday
that it plans to separate the
role of chief executive and
board chairman for the first
time. It is retaining its
slightly odd practice of hav-
ing three co-chief executives,
each running different parts
of the company, but now
none of them will be chair-
man. Instead, the company’s
chief financial officer, Lee
Sang-hoon, will step up to
head the board.
Moreover, each of the
three current co-chief execu-
tives will be replaced by
younger managers. The hope
is that this fresh blood will
revitalize the company,
which has been embroiled in
a leadership crisis ever since
its de facto leader, Lee Jae-
As Startups Stay Private, Questions Arise Over Valuations
There are lots of good
reasons for startups to stay
private, and no one knows
that better than Julie Wain-
wright.
She is the founder of Re-
alReal, a successful closely
held online retailer that has
gone through seven rounds
of funding. Ms. Wainwright
was also the CEO of
Pets.com, which shut down
when the cash ran out in No-
vember 2000, seven months
after going public.
The flood of cash into
startups has allowed compa-
nies to stay private for far
longer than in the past. On
the positive side, companies
have more time to develop
and grow. But the lack of a
public market valuation also
raises the question of
whether many companies are
Fully Charged
Net cash at Samsung Electronics
80 trillion Korean won
70
60
50
40
30
20
10
0 gest corporations, are a big
3Q 2011 ’12 ’13
Note: 1 trillion Korean won = $895 million
Source: the company; S&P Global Market Intelligence
yong, was convicted in Au-
gust of bribery.
Separating the chairman
and chief executive is a
good, albeit small, step to-
ward better corporate gover-
nance. More can be done. In
particular, Samsung’s board
could use more independent
directors that might better
represent external share-
holders, especially foreign
Old Tech
Median age of technology
company initial public offerings
15 years
10
5
0
1990 ’95 2000 ’05
Source: Jay Ritter
worth the $1 billion-plus val-
ues private investors have
attached to them.
A lot of richly valued
startups are so old that say-
ing they need time to de-
velop and grow is a bit of a
joke. Ride-hailing service
Uber Technologies, which is
valued at $68 billion, has
’14 ’15 ’16 ’17
THE WALL STREET JOURNAL.
investors, who together now
own more than half of the
company. Samsung’s crop of
independent directors are all
Korean men, including a for-
mer bank CEO and a public-
health professor.
In another move toward
better governance, Samsung
is also promising much
higher dividends; the plan is
to increase them by 20% this
been around for over eight
years. Big-data analysis firm
Palantir Technologies, val-
ued at $20 billion, is 13
years old. Space Exploration
Technologies, the Elon
Musk-led rocket maker val-
ued at $21 billion, is 15 years
old.
It was different in the dot-
com era. Then, companies
had fewer funding rounds
’10 ’15 and went public quickly. The
371 technology companies
that had initial public offer-
ings in 1999 had a median
age of four years, according
to data compiled by Univer-
sity of Florida finance pro-
fessor Jay Ritter, versus a
median age of 10.5 years for
2016’s 20 tech IPOs.
The rush was part of what
created problems later. Once
companies went public, it
year. The implication is that
Samsung has scrapped its
policy of keeping an unnec-
essarily large cash buffer of
65 trillion to 70 trillion won
($58 billion to $62 billion).
Samsung also could try
harder to slim down its net-
work of cross-shareholdings.
The company owns stakes in
a shipbuilder and a hotel
chain among other assets.
Such cross-shareholdings,
common among Korea’s big-
factor that has long dragged
down their valuations. Sam-
sung, for example, is the
world’s biggest chip maker,
yet trades with an enterprise
value of just 3.8 times its ex-
pected earnings before inter-
est, taxes, depreciation and
amortization. Apple, by con-
trast, trades at about 10
times.
As Samsung upgrades its
technology, it needs to keep
upgrading its corporate
structure, too.
—Jacky Wong
wasn’t easy for them to raise
more cash. RealReal is a
study in contrasts with Ms.
Wainwright’s former busi-
ness. The San Francisco-
based online upscale-goods
reseller has been able to get
the cash it needs to fund six
years of operations.
What hasn’t changed, she
says, is that private-market
valuations may not reflect
the valuations companies
carry in the public markets.
(Unlike many of its peers,
RealReal has remained mum
on its valuation.)
Multiple funding rounds,
each at a higher valuation,
can exacerbate the problem,
widening the gap between
private-market belief and
public-market reality. In the
private market, pessimists
sit out funding rounds, leav-
Wall Street, even for those
who analyze stocks rather
than trade them.
Brian Skorney, biotechnol-
ogy analyst at Robert W.
Baird, initiated coverage on
Voyager Therapeutics
on Monday with a “buy” rat-
ing and $31 price target just
moments after the stock
closed at $22.73. The happy
mood was short-lived. Voy-
ager announced that Sanofi
had declined to exercise its
option to acquire commercial
rights to its experimental
drug for Parkinson’s disease
right after Mr. Skorney’s note
was published. Voyager’s
shares plunged.
Mr. Skorney may yet be
vindicated, and the bad luck
hasn’t squashed his sense of
humor. In response to an
email asking if he would
rather have released his note
on Tuesday, Mr. Skorney re-
plied, “Nope, it came out at
the right time. Just really bad
timing.”
ing optimists to do the buy-
ing; in the public market, the
pessimists could sell or short
the shares, driving down the
share price.
With all that money riding
on them, companies may be
scared to go public during
less-than-perfect market
conditions, worried that they
will end up like food com-
pany Blue Apron Holdings.
It was valued at $2 billion
before going public this June
and now has a market capi-
talization of less than $1 bil-
lion.
Yet right now, with the
U.S. economy in the ninth
year of an economic expan-
sion and the stock market
clocking fresh highs, is the
perfect time to go public.
What are they waiting for?
—Justin Lahart
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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B18 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL.

Fellow ADP Shareholder:

Pershing Square made a $2.3 billion investment in ADP because we believe it is a good business that
can be substantially improved. In an evolving industry, ADP must adapt quickly to avoid losing ground
to more innovative competitors. ADP’s current plan calls for more of the same. If elected, our plan is to
increase efficiency, improve customer service, and invest in technology to help ADP reach its
full potential and greatly enhance value for all shareholders.

All three independent proxy advisory firms support Pershing

Square’s views and the election of Bill Ackman to ADP’s board

Glass Lewis & Co. Institutional Shareholder Egan-Jones

Services

“ Upon a successful implemen-

tation of Pershing Square’s plan…
we believe ADP would likely deliver
“ Ackman would bring a strong
superior financial performance and
significantly greater shareholder value.
We recommend that shareholders
understanding of the company, with
the resources and analytical ability
that his firm has demonstrated while
digging deeply into ADP’s business,
asking valid questions, presenting
“ We believe that Pershing
Square’s nominees will reinforce
the Board and management in
addressing operational inefficiencies,
strengthen corporate governance
and unlock ADP’s potential in order

”
vote FOR all nominees on the GOLD detailed data, and proposing solutions. to maximize shareholder value.
His real estate background could also

”
proxy card.
be helpful at this point in the com-
pany’s life cycle, given ADP’s ongoing

”
initiatives to rationalize its footprint.

Vote GOLD to help ADP achieve its full potential

ADP shareholders have an opportunity to vote for transformational change at ADP by electing
three highly-qualified and experienced directors. Help ADP reach its full potential and enhance value
for all stakeholders by voting today FOR The Nominees for ADP’s Transformation by using the
GOLD Proxy Card or GOLD Voting Instruction Form.

Vote

Learn more about our plan to transform ADP during a public

webcast for shareholders on Wednesday, November 1, 2017,
at 10:00 AM EDT at www.ADPascending.com.